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Silk Way West Airlines Invests in New Boeing 777-8 Freighters

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Air Cargo, Archives, Global Trade Daily, News

Silk Way West Airlines Invests in New Boeing 777-8 Freighters

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Silk Way West Airlines shows no sign of slowing down its impressive record of growth, having secured a deal to offer even more cargo capacity in the future. The Azerbaijani cargo carrier signed an order with Boeing for two state-of-the-art 777-8 Freighters with options for two additional aircraft, the two companies announced today at the agreement signing ceremony in Everett, Washington. Per the agreement, aircraft deliveries are planned for 2029 and 2030.

Silk Way West Airlines is the first customer in the whole Central Asia region to order the industry’s newest, most capable and fuel-efficient twin-engine freighter. The aircraft can carry over 118 tons of structural payload with a range of over 9,200 km. With its advanced technology, new GE9X engines and composite wing design, the 777-8 offers 30 per cent greater fuel efficiency and emission levels as well as 25 per cent lower operating costs per ton. As a result, the new aircraft will also make an important contribution to the airline’s sustainability goals.

This investment will not only enable Silk Way West Airlines, which serves 40 destinations around the world, to further expand its international network and meet growing demand for cargo transport, but will also strengthen Baku as a key international cargo hub. The Azerbaijani capital has become increasingly important for the Middle Corridor linking Europe and the Western Hemisphere to Asia through the Caspian region.

Back in April 2021, the cargo airline signed a purchase agreement for five Boeing 777s, setting the course for further fleet growth. Now, the new 777-8 aircraft complement SWWA’s fleet development plans by enabling the necessary operational commonality, enhancing a long-term strategy of sustainable growth as well as allowing the Azerbaijani carrier to continuously improve service to its customers.

About Silk Way West Airlines

Founded in 2012 in Baku, at the heart of the Silk Road, Silk Way West Airlines operates hundreds of monthly flights across the globe via its fleet of 12 dedicated Boeing 747-8F and 747-400F aircraft based at Heydar Aliyev International Airport. On April 28, 2021, Silk Way West Airlines signed a strategic fleet expansion agreement with Boeing for the purchase of five state-of-the-art 777 Freighters. The airline’s annual cargo turnover exceeds 500,000 tons, while its growing route network covers over 40 destinations across Europe, the CIS, the Middle East, Central and Eastern Asia, and the Americas. South Korea’s Incheon Airport honored Silk Way West Airlines with the prestigious ‘Cargo Airline of the Year 2020’ award.

About Boeing

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future and living the company’s core values of safety, quality and integrity.

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Archives, Global Trade Daily, International Trade, News

US-EU Suspend Large Civil Aircraft Tariffs and Take Aim at China in Framework Addressing Non-Market Practices

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The United States and European Union (“EU”) announced a “cooperative framework” to address and potentially resolve their long-running dispute over large civil aircraft subsidies, also commonly known as the Boeing–Airbus or Large Civil Aircraft disputes. Originally initiated in 2004 when the U.S. filed a case at the World Trade Organization (“WTO”) against the EU alleging illegal subsidies to Airbus SE, the Large Civil Aircraft dispute is the longest running dispute at the WTO. As part of the new understanding, the U.S. and EU will suspend their respective WTO-authorized tariff countermeasures, which affected a total value of $11.5 billion in trade. The U.S.-EU’s announcement is a major step towards potentially resolving the 17-year transatlantic dispute over aircraft subsidies.

As previously reported, the initial duties occurred in October 2019 when the U.S. imposed 15 percent tariffs under Section 301 of the Trade Expansion Act of 1962 on imports of civil aircraft and aircraft parts (under the HTSUS codes 8802.40.0013, 8802.40.0015, 8802.40.0017, 8802.40.0019, and 8802.40.0021). A rate of 25 percent was adopted by the U.S. for all other listed EU-origin imports, covering agricultural products, spirits, and luxury goods among other products. The EU retaliated in November 2020 with tariffs on approximately $4 billion worth of U.S. imports, with matching rates of 15 percent for civil aircraft and aircraft parts and 25 percent for all other U.S.-origin imports, covering agricultural products and industrial and finished goods.

As part of the Understanding on a cooperative framework for Large Civil Aircraft, the US and EU expressed their intention to:

-Establish a Working Group on Large Civil Aircraft led by each side’s respective Minister responsible for Trade, which will meet every 6 months or on request,

-Provide financing to large civil aircraft producers only on market terms,

-Provide R&D funding through an open and transparent process and make the results of fully government-funded R&D widely available, to the extent permitted by law,

-Not to provide R&D funding as well as specific support (such as specific tax breaks) to their own producers that would harm the other side,

-Collaborate on addressing non-market practices of third parties that may harm their respective large civil aircraft industries,

-Continue to suspend application of their countermeasures, for a period of 5 years, avoiding billions of euros in duties for importers on both sides of the Atlantic.

According to statements made by U.S. Trade Representative (“USTR”) Katherine Tai, the tariffs would remain suspended as long as the terms of the agreement are upheld and while they work on addressing issues including outstanding subsidies already paid.

The U.S.-EU cooperative framework also includes an “Annex on Cooperation on Non-Market Economies” to “more effectively address the challenge posed by non-market economies” in the civil aircraft sector. These cooperative steps include coordinating and exploring information-sharing regarding cybersecurity and other concerns, screening of inward and outward investments, and “joint analysis of non-market practices,” especially China’s, in the large civil aircraft sector. USTR Tai described the agreement as “a model we can build on for other challenges” related to “the threat from China’s non-market practices.”

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Emily Lyons is an attorney in Husch Blackwell LLP’s Washington, D.C. office.

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Air Cargo, Archives, Global Logistics, Global Trade Daily

How the Air Cargo Industry is Taking on COVID-19

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The fallout of the COVID-19 pandemic shook the aviation sector to its core. The economic crisis and travel bans and restrictions have severely hampered international transportation and the global air freight industry. Data from the International Air Transport Association (IATA) shows that global volumes and international cargo are significantly lower than in 2019.

Despite the apparent decline in numbers, the jet cargo industry is showing signs of steady recovery. It is safe to say that, from an economic point of view, airlines with cargo-diversified revenue streams are surviving and have managed to avoid the worst of the pandemic.

Adapt to Survive

The aviation industry is doing its best to adapt and ensure business survival in a changing world. Although world trade and passenger transport hit an all-time low during the main period of the pandemic, both commercial aviation and air charter sectors were able to modify their systems and services to meet the demands of the times and, of course, their clients.

We have seen passenger and private jet companies use their experience and expertise to cater to changing business requirements and emergency scenarios. From personnel repatriation to emergency evacuations — and sometimes even stepping into disrupted freight supply lines to ensure the delivery of essential goods.

Demand Response

Airline companies have shifted their focus throughout the pandemic and dedicated their efforts towards the successful transport of COVID-19 supplies and accommodating the exponential demand for essential COVID-19 commodities.

Cargo jets with climate-controlled facilities have seized business opportunities in freights that require highly regulated and temperature-controlled specifications, including the distribution of billions of COVID vaccines worldwide. In addition, airline companies are retrofitting their passenger planes for cargo to capture more specialized segments, especially those that require time urgency and delicate handlings, such as pharmaceuticals, PPEs, medical equipment, and perishables.

More and more companies are also turning to air charters for reliable transport of complex and time-critical deliveries. Compared to other methods of transport, air charters stand out as the most efficient end-to-end solution as they have access to more airfields and can be deployed in a matter of hours.

Emerging Opportunities

The pandemic has been broadly destructive for the aviation industry. Still, it has contributed to accelerating the global transition to e-commerce, which is set to benefit the cargo transportation industry for the foreseeable future.

While e-commerce was already on an uptrend even before the pandemic, it has risen faster than anticipated due to recent changes in consumer purchasing behaviors. According to data from IBM’s U.S. Retail Index, COVID-19 hastened the shift away from physical stores to digital shopping by, more or less, five years.

With people becoming more inclined to shop online, e-commerce volumes continue to rise amid the pandemic. Shipment-focused aviation services are currently taking advantage of this market shift.

Going Forward

The air cargo sector is demonstrating impressive flexibility and adaptability in handling the challenges and repercussions of COVID-19 in the industry. Still, from a vantage point, the future of global air freight service seems bright, and all set for growth.

The pandemic has opened new doors and opportunities for cargo. As the demand for specialized freight services and e-commerce rises, global trade will eventually regain its foothold. And the cargo industry will fly high again.

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About the Author

Melissa Hull is the Content Marketing Strategist for Aviation Charters, a West Trenton, New Jersey-based private aviation company that provides on-demand aircraft charter, aircraft management, and aircraft acquisition services. Aside from her passion for writing, she loves to travel and read espionage books.

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Archives, Global Trade Daily, Special Reports

Industries With the Highest Rates of Workplace Injuries

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One of the concepts that the COVID-19 pandemic brought to the forefront of the public imagination is the idea of an “essential worker.” The pandemic highlighted that many professions are critical for allowing the rest of the economy and society to function properly, especially in a time of crisis. Some essential professionals like health workers and teachers were already held in high regard, but COVID-19 put a new spotlight on workers in oft-overlooked industries like grocery, elder care, and shipping and logistics.

Of course, the reason why these professions have drawn attention is the fact that workers in these fields kept working despite higher risks of virus exposure in the course of doing their jobs. Early on in the pandemic, many people were easily able to transition to working remotely, while many others saw their jobs eliminated or hours reduced as a result of COVID-19’s economic shocks. But essential workers mostly continued working in-person, all the while confronting the greater possibility of contracting COVID-19.

These varying experiences of COVID-19 across professions reflect the larger fact that every job has different levels and types of risk inherent in the work. Professions that involve manual labor or interacting with tools and machinery tend to be among the most prone to injury and illness, but no job is perfectly safe. Fortunately, however, the U.S. has seen positive trends in reducing the number and severity of work-related injuries and illnesses in recent years.

According to data from the Bureau of Labor Statistics, the overall number of cases per 100 full-time workers has been cut nearly in half over the last two decades, from 5.0 in 2003 to 2.8 in 2019. And this is part of a much longer-running trend that began with the creation of the Occupational Safety and Health Administration in the early 1970s. When OSHA was created in 1971, the rate of injury and illness on the job was 11 per 100 workers, but that number has been on the decline ever since thanks to OSHA and other efforts to promote workplace safety.

Lower incidences of workplace injury and illness overall have come with a parallel reduction in the number of injuries and illnesses that inhibit the ability to work. In 2003, there were 1.5 cases per 100 workers that led to days away from work. That number dipped to 1.0 in 2011 and has remained at or below that level ever since.

Despite this progress overall, the risk profile across professions continues to vary, and the data suggest that these different risk levels are also closely correlated with income. In general, industries with lower median earnings tend to see more work-related illnesses or injuries, while industries with higher earnings tend to see fewer. This situation is likely to be exacerbated by COVID-19, as many essential professions or other jobs that have continued in-person also pay lower wages than the lower-risk white-collar jobs that were able to transition to virtual work.

To identify the industries with the highest rates of workplace injuries, researchers at Construction Coverage collected data from the Bureau of Labor Statistics, including each industry’s total number of cases per 100 workers, cases resulting in missed days or job transfer/restrictions, median wage, and total employment. Industries were ranked by the total number of cases per 100 workers.

Here are the industries with the highest rates of workplace injuries.

Industry
Rank
           Total  cases (per 100 workers)
Cases with days away from work (per 100 workers)
Cases with days of job transfer/restriction (per 100 workers)
Other cases (per 100 workers)
Median annual wage
Total employment
Couriers and messengers    1      8.1 3.3 2.8 2.1 $36,890 796,660
Air transportation    2      6.5 3.7 1.5 1.2 $62,480 498,830
Wood product manufacturing    3      6.1 1.8 1.7 2.6 $34,260 406,100
Performing arts, spectator sports, and related industries    4      6.0 1.4 1.9 2.7 $37,330 519,810
Nursing and residential care facilities    5      5.9 1.7 1.8 2.4 $30,370 3,351,090
Animal production and aquaculture    6      5.6 2.1 1.3 2.1 N/A N/A
Hospitals    7      5.5 1.3 0.9 3.3 $58,210 6,094,940
Crop production    8      5.3 1.4 1.6 2.2 N/A N/A
Support activities for agriculture and forestry    9      5.2 1.8 1.5 1.9 $26,430 382,330
Building material and garden equipment and supplies dealers    10      4.9 1.6 1.7 1.6 $29,830 1,311,670
Warehousing and storage    11      4.8 1.9 1.7 1.2 $36,170 1,214,230
General merchandise stores    12      4.6 1.2 1.6 1.8 $25,310 3,129,540
Fishing, hunting and trapping    13      4.6 2.3 N/A 1.5 N/A N/A
Primary metal manufacturing    14      4.4 1.2 1.5 1.7 $44,520 385,910
Beverage and tobacco product manufacturing    15      4.3 1.3 1.6 1.4 $38,680 282,110

 

*Incidence rates represent the number of injuries and illnesses per 100 full-time workers

For more information, a detailed methodology, and complete results, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/industries-with-highest-rates-of-workplace-injuries-2021

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Air Cargo, Archives, Global Trade Daily

Global Private Jet Predictions after COVID-19

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The global pandemic has changed the way we travel. Concerns regarding the hygiene of commercial aircraft and how crowded terminals may play a role in the transmission of the virus have taken the aviation industry by storm. Today, six months after the initial reports of coronavirus cases in the western hemisphere, there are enough trends to project how the aviation industry will behave in a post-pandemic environment. Private air charter solutions company Monarch Air Group weighs in.

Change of perception for private aviation

Before the coronavirus pandemic, the majority of the population still perceived private aviation as a luxurious means of transportation reserved only for the wealthy. With a change in travel restrictions and growing safety concerns, this segment has started to serve a new pool of travelers seeking a reliable and secure way to fly, far away from the concerns of a commercial flight. It is possible that not all of them will continue flying private when they find out commercial aviation is safe once again (whenever that might be in the future), although some of them might continue flying at least on an occasional basis. This change in perception only benefits the industry as a whole.

Turboprops have demonstrated their value

Linked to the previous topic, turboprops, as the most cost-effective option for a private flight, has been the go-to option for most new travelers in this segment. Especially for shorter routes of less than 3 hours, single and twin-engine turboprops serve as the perfect transition from commercial aviation. Passengers get to use a private terminal, they escape the crowded airports, they get to choose who they travel with, enjoy a comfortable aircraft and almost at half the price than a small jet. Turboprops like the Pilatus PC12N and the King Air 350i have demonstrated their real value as private air workhorses and will continue to do so in the foreseeable future.

Diversification as a safety net

The flexibility of private aviation has been a coveted asset worth paying for. The possibility to depart from almost any airport and to choose from thousands of different aircraft at any moment is second to none. Nevertheless, the global pandemic has demonstrated that private aviation also provides flexibility to the global travel industry, and not only to the private passenger, having served governments with repatriation flights, humanitarian missions, and cargo charters. This diversification has also allowed the different players in the industry to maintain the number of operations and flight hours, proving that the flexibility of this market goes way beyond luxury.

Carbon footprint discussion

Private aviation has been publicly scrutinized due to its carbon footprint compared to commercial aviation, even though leading private air companies have implemented programs to offset the carbon emission. While the amount of fuel burnt by a private jet is a lot less than a commercial aircraft, and therefore CO2 emitted is also a lot lower, private planes carry fewer people, sometimes even one per route, meaning they’re considerably less efficient, and the personal carbon footprint of passengers who choose to travel this way is much higher. The previous discussion has come to a standstill amidst the coronavirus pandemic (and probably will continue this way), because the main concern today is maximizing safety (avoid infection), while maintaining high levels of efficiency, something that commercial aviation cannot guarantee in the near future.

Full recovery of the market

While diversification is a great asset, the core demand of this industry is generated by business trips, sporting events, weddings, and overall leisure. Although Monarch Air Group has reported a sustainable growth in demand during the last two months, until the aforementioned events don’t regain full shape, it is hard to determine when full recovery of the market will occur, because they all depend on local restrictions.

Private aviation has passed the test imposed by COVID-19 by demonstrating its diverse pool of services, its safety and cost-efficiency, demystifying what so many commercial passengers thought before experiencing this service, positioning itself as a more approachable and accessible means of transportation. It is safe to say that private aviation will have a higher and more diverse demand than before the outbreak, fueled by new clients that have recognized that flexibility, safety, dependability, and superior customer service doesn’t necessarily mean a higher price.

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Established in 2006, Monarch Air Group is a leading provider of on-demand private jet charter, aircraft management, and long-term aircraft lease. Among Monarch’s customers are Fortune 500 corporations, leading entrepreneurs, Government agencies, and world-leading NGO’s.