Archive for ‘Chinese factories’

17/05/2020

Lufthansa Cargo adds more flights to mainland China, ferrying urgent supplies to Europe

  • There has been strong demand for air freight services since April, when Chinese factories got back to work
  • Cargo flights have become critical in moving protective health equipment across the globe
Planes of German air carrier Lufthansa at the country’s largest airport in Frankfurt. Photo: Reuters
Planes of German air carrier Lufthansa at the country’s largest airport in Frankfurt. Photo: Reuters

German freight carrier Lufthansa Cargo is expanding in China, surpassing 100 weekly flights for the first time, and adding new flights to Shenzhen.

Peter Gerber, CEO of Europe’s largest cargo airline, said there had been heavy demand for its services, though this might cool by the peak of summer.

“At the moment, cargo demand is very, very strong,” he told the Post. “It started to get strong in April, when Chinese industries got back to work, and after that we have seen a constant, heavy demand, a real peak.”

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Global air freight capacity has been squeezed as two-thirds of the world’s aircraft have been grounded by the Covid-19 pandemic.
The collapse of air travel has practically put a stop to passenger flights, which typically carry half of all air cargo.

Since the pandemic, cargo flights have been critical in moving protective health equipment across the globe. From sending masks and other supplies to China in February, the German carrier is now taking urgent supplies from the mainland back to Europe.

Peter Gerber says Lufthansa Cargo has a high responsibility in maintaining supply chains, for both global health and world trade. Photo: Handout
Peter Gerber says Lufthansa Cargo has a high responsibility in maintaining supply chains, for both global health and world trade. Photo: Handout
“We have a high responsibility in maintaining supply chains in these unprecedented times for both global health and world trade,” Gerber said.

With the addition of Shenzhen, Lufthansa Cargo will fly to five destinations in China. It serves more than 300 destinations in 100 countries.

The cargo carrier is part of the Lufthansa Group and coordinates all the freight that goes into the passenger planes of its sibling brands, including Lufthansa, Swiss and Austrian.

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By next week, Lufthansa Cargo will be running more freight flights to China than the 72 passenger flights the group flew weekly before the pandemic to Beijing, Shanghai, Shenyang, Nanjing and Qingdao.

Lufthansa Cargo has a fleet of seven Boeing 777 Freighters (777Fs), with two new 777Fs arriving this year as part of its strategy to operate a fleet with a single aircraft type.

It also has six McDonnell Douglas-11Fs that Gerber said would still be retired as planned at the end of 2020, despite the extra demand for cargo capacity.

Its additional flights to China will make use of “preighters” – passenger aircraft flying cargo only. Gerber felt the trend of using empty passenger planes as “preighters” had peaked, pointing out that they cost the same to operate as freighters but carry only a fraction of the cargo.

Although he did not rule out future expansion, he said: “Demand will gradually come down in the next two or three months because a lot of equipment would have been shipped by then and some shipments will go on rail or ocean shipping.”

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He said some uncertainty remained over continued demand for airfreighted cargo, given the battered state of the world economy. Airlines would have to consider longer-term demand before deciding to invest more in cargo aircraft. “It depends how it looks beyond the next year,” he said.

Gerber said no decision had been taken yet on whether to convert some of the group’s orders for Boeing’s newest widebody 777X passenger aircraft into cargo planes.

He added that future plane orders would be balanced against the wider needs and spending decisions at Lufthansa Group, which is currently negotiating a government pandemic bailout package in the region of 9 billion (US$9.7 billion).

Source:SCMP

27/02/2020

Tim Cook says Apple’s first Indian store to open 2021

Apple CEO Tim CookImage copyright GETTY IMAGES

Apple’s chief executive Tim Cook said the company would open its first physical stores in India in 2021 and a online outlet later this year.

Apple had to seek special approval from the Indian government to open a store without a local partner.

The announcement was made at the company’s annual shareholders’ meeting.

Investors at the meeting also voted on a proposal that the firm should alter how it responds when governments ask it to remove apps from its marketplace.

Though the measure wasn’t approved, it failed by a slimmer margin then similar proposals in the past.

Apple’s move into India, the second largest smartphone market in the world, has been expected for some time, but the announcement of a date was new.

In 2018 India changed the laws that prevented foreign brands from opening single-brand stores in the country. Nevertheless Mr Cook said India had wanted Apple to open its store with a local partner.

Mr Cook told investors he didn’t think Apple would be a “good partner”.

“We like to do things our way,” he said.

Apple sells its products through third-party stores in India at the moment. But its sales lag competitors Samsung and Huawei.

With demand for Apple products slowing in China – even before the outbreak of Coronavirus – the firm is hoping it can spur growth in other developing markets like India.

Human rights vote

Apple investors also voted on a proposal meant to change the way the company handles requests by governments to remove applications from its App Store.

The proposal would have forced Apple to publicly commit to respecting “freedom of expression as a human right.”

The measure was tied to Apple’s removal of apps by the Chinese government, including an app that allowed protestors in Hong Kong get around China’s internet restrictions.

Supporters of the measure said Apple was complicit in Chinese human right abuses when it gave in to requests to remove these types of apps.

The measure was voted down but received nearly 40% of the vote.

Similar measures have been proposed in the past but have never received as much support.

Two shareholder advisory groups, Glass Lewis and Institutional Shareholder Services recommended voting in favour of the proposal.

Coronavirus concerns

Mr Cook also addressed the impact that coronavirus is having on Apple’s operations.

The tech giant warned investors early this month that it expected to miss its quarterly earnings estimate because of the outbreak. Many of the Chinese plants that make components for Apple products – like its iPhones and MacBook laptops- have been closed or operating at with limited capacity to reduce the spread of the disease.

The shareholders meeting also allowed investors to ask Apple executives questions about the company’s other development.

One investor asked why the company had not bought the rights to the upcoming reunion of the TV show Friends – which is slated for HBO Max.

Mr Cook said a spinoff would not be keeping with the brand of Apple TV Plus – which is focused on original content.

Source: The BBC

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