• Aviation Security: TSA Has Completed Key Activities Associated with Implementing Secure Flight, but Additional Actions Are Needed to Mitigate Risks. GAO-09-292, May 13, 2009 (62 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-292
• Federal Transit Administration: Progress and Challenges in Implementing and Evaluating the Job Access and Reverse Commute Program. GAO-09-496, May 21, 2009 (52 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-496
• Freight Rail Security: Actions Have Been Taken to Enhance Security, but the Federal Strategy Can Be Strengthened and Security Efforts Better Monitored. GAO-09-243, April 21, 2009 (123 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-243
• Motor Carrier Safety: Commercial Vehicle Registration Program Has Kept Unsafe Carriers from Operating, but Effectiveness Is Difficult to Measure. GAO-09-495, May 12, 2009 (37 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-495
• Responses to Questions for the Record: March 18, 2009, Hearing on ATC Modernization: Near-Term Achievable Goals. GAO-09-718R, May 20, 2009 (14 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-718R

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“Rail industry urges shorter trains off-peak to cut carbon emissions”, The Guardian, May 28, 2009

The rail industry is urging the government to run shorter trains in order to meet Britain’s climate change obligations. Removing carriages outside rush hour would conserve energy and reinforce rail’s reputation as one of the greenest modes of transport, says an industry manifesto published today. Network Rail, owner of rail infrastructure, and the Association of Train Operating Companies (Atoc) argue they can help reduce carbon dioxide emissions by 20% by 2020 by running shorter trains at off-peak times. [...]

Link: http://www.guardian.co.uk/environment/2009/may/28/railway-trains-climate-change-carbon-emissions

“Union Pacific CEO: Regulation Inflating Funding Costs” by Doug Cameron, Dow Jones Newswires, May 27, 2009

CHICAGO -(Dow Jones)- The head of Union Pacific Corp. (UNP) warned Wednesday railroads face inflated funding costs because of uncertainty about future industry regulation. James Young, chief executive, intensified his criticism of the planned reauthorization of the Transportation Act later this year, which he said could damage future industry investment. “It’s bad law,” said Young in remarks to a rail shippers conference in Chicago. [...]

Link: http://money.cnn.com/news/newsfeeds/articles/djf500/200905271341DOWJONESDJONLINE000780_FORTUNE5.htm

“Italian railways says to bid for Veolia Cargo”, Reuters.com, May 18, 2009

Italian railways Ferrovie dello Stato said on Monday it would bid for Veolia Cargo (VIE.PA), which competes on freight transport with French state-owned railway company SNCF.[...]

Link: http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLI51107520090518

“European Train Travel: Working on the Railroad”, by Bruce CROMLEY, Time.com, May 28, 2009

Europe’s railroad industry, for decades dominated by stodgy state-owned monopolies, is ready for a renaissance of its own. A looming round of deregulation is set to spark an industry restructuring, pitting existing state-owned railroads against smaller private upstarts.[...]

Link: http://www.time.com/time/magazine/article/0,9171,1901431,00.html?iid=tsmodule

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“More U.S. airports add rail service to downtown” by Roger Yu, USA TODAY, May 25, 2009

Riding the rails between downtown and the airport is becoming a reality for more U.S. travelers. With their roadways jammed with cars and shuttles, a growing number of domestic airports are building or have plans for a rail link that will connect passengers from the terminals to regional metro-rail systems, allowing road warriors and vacationers to ditch their cars. [...]

Link: http://www.usatoday.com/money/industries/travel/2009-05-25-rail-lines-airport-city-center_N.htm

“Transit Authority Feeling the Pain From a Crippled Advertising Market” by WILLIAM NEUMAN, New York Times, May 24, 2009

The worst advertising market in decades has had a devastating, and well-documented, effect on newspapers, magazines and television networks. But now another recipient of ad dollars is being hurt by the market slump at a time it can little afford it: mass transit. In recent months, a company that sells many of the ads that appear on buses and trains and in stations in New York, Boston, Minneapolis and other cities has come up short in its payments to transit agencies, citing a sharp drop in ad rates and sales. New York is among the hardest hit. [...]

Link: http://www.nytimes.com/2009/05/25/nyregion/25ads.html?_r=1&sq=transit&st=cse&scp=3&pagewanted=all

“S.F. supes push to gain more power over Muni” by Rachel Gordon, San Francisco Chronicle, May 27, 2009

San Francisco voters have made clear three times in the past decade that they want to limit political meddling when it comes to Muni. But a recent plan to cut bus service and raise fares has shown that City Hall influence is still very much part of the mix. The Board of Supervisors – using powers granted by the same voters who wanted to tame its influence – has been threatening for weeks to reject Muni’s unpopular $766 million budget plan approved last month by a mayoral panel. [...]

Link: http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/27/BAR317PJ4U.DTL

“RTA looks into riders using cell phones instead of tickets or transit cards” by Richard Wronski, Chicago Tribune, May 26, 2009

The day may be coming when Chicago-area transit riders will use their cell phones as a ticket to ride. With a wave of their phone over a sensor, riders could board buses or trains as quick as a beep while the fare is automatically deducted from their online account. No cash, paper ticket or pass would be needed. Such fare-phones are being considered by the Regional Transportation Authority, which is already developing a revamped fare system using “smart” credit cards that would work on the CTA, Metra and Pace. [...]

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However, after a couple of months of operation, the viability of the system has been proven endangered by the cost of maintenance… Around 1,500 bikes are repaired every day and these costs are definitely not compensated by user’s fares. According to internal sources, every bike wocould cost around €2,500 to JCDecaux, whereas only €1,000 were included in the business plan and budget.

As of today, the estimates are impressive: up to 11,600 bikes vandalized, 7,800 bikes that disappeared, and more than 3,200 complaints filed by JCDecaux for theft or vandalization. These alarming figures should however be put aside the large number of daily users (78,000 in average) and the number of kilometers travelled per bike per year (estimated at 10,000 km/year!). The quality of bikes even if necessary for users to enjoy a pleasant ride is not only a matter of maintenance and people need to be conscious they have to care about the vehicle they use, as any other mean of public transportation, as if it was a train, a bus, or a subway…

References

• Article: Vandalisme : Vélib’, un service pour tous, à chacun d’en prendre soin !, Velib Newsletter : here
• Article: Le Vélib’, si populaire mais si cher, lefigaro.fr, June 24, 2008: here

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Air France should be the next carrier on the list, with the first aircraft due for expected delivery in October 2009 and revenue service on the New York JFK route for crew familiarization. (For more details, see: http://www.bolsamania.fr/analyses/analisis.php?origen=feed_cerclef.noticias&id=PARISANA03-11-2009-16-46-00.xml&isin=FR0000031122&esficha=1)

Lufthansa should join “the club” in Spring 2010. The German carrier launched a web micro-site to communicate on this major event. (For more details, see: http://a380.lufthansa.com/#en/main/faszination_fliegen/intro)

On the negative side, some carriers are reported to be in discussions with Airbus to delay future deliveries (Air France, Singapore Airlines, Emirates).
Moreover, Emirates is reported to have delivered to Airbus an extensive list of malfunctions which need to be fixed. (For more details, see: http://www.atwonline.com/news/story.html?storyID=15942)

While schedule adjustments are part of routine airline management (e.g. Emirates replacing A380s with B777 on the Dubai-New York JFK route), as well as technical teething problems (fuel leaks on Qantas aircraft), it seems that every information or rumor related to the A380 feeds the headlines of the economical press.

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A sector strongly affected by the crisis

All the constituents of the air activity are strongly affected by the economic crisis. The freight activity is the most affected, with a drop off 23,3% over one year according to IATA (International Air Transport Association, which gathered 93% of airlines statistics). The passenger traffic decreased as well, less 5,6 % in January, still according to IATA. Worse, Business classes are empty while airlines make the biggest margins on their high yield passengers.

No company avoids this crisis: profits are inevitably impacted, whatever the size, the markets, or the main region of  activity of the companies. So, Lufthansa announced a decrease of 64% of its net profit in 2008, Cathay Pacific lost 870 million Euro in 2008, and the low cost Aer Lingus announced a net 107,8 million Euro loss in 2008. Globally, IATA announced a global losses of 6 billion Euro for the industry in 2008.

A strategy: reduction of capacity

With a sector in chronic overcapacity, which used to runs with annual increases of traffic (except after September 11th, 2001 and the first war in Iraq), the sudden and unexpected fall off the traffics will probably make big damages, which will result in bankruptcies and concentrations.

Already, the companies try to adapt themselves by reducing capacities. American Airlines announced that their passenger-miles offer (ASM) is down by 6,5% this year (9% for Domestic routes, 2,5 % for the International ones), Delta Airlines wish to reduce their International offer by 10%, and Air France – KLM cut their offer by 3,4% for this Summer season compared to 2008. At the same time, the staff cuts are now common. Actually, airlines privilege “sweet” solutions like non-replacement of retirements or voluntary departures. For instance, Air France – KLM plan to decrease in 3 % its workforce, using these methods.

A380: an anti-crisis aircraft

A380 is a plane which does not know the crisis. Singapore Airlines with 7 A380s and their fabulous commercial success give the proof: the load factor of their A380 exceeds 90%, while the companies aim an average rate of 75 % today! By reducing the number of flights and even increasing the capacity, the jumbo will allow to realize 15 % savings by passenger on a Paris – New York journey, according to Air Franc,e which might plan to merge its 2 late afternoon Paris – New York flights into only one operated by an A380.

Besides, all the companies which operate the plane increase market shares on the routes operated by their A380s because of the general craze it creates.

Finally, in a context of overloaded airports, like Heathrow, where the prices of slots reach peaks (e.g. 30 million Euro per pair for the last transactions), gains for a airline by cutting a daily round-trip is substantial.

However, in a context where financing is particularly hard, airlines seem to have difficulties in financing the aircraft. For example, Air France – KLM would have difficulties in obtaining the long terms loans they need to pay their whole order, and Emirates would postpone some deliveries as well.

Long-terms strategies?

Air France would announce at the end of this Summer a $20 Billion bid for the acquisition of a hundred of medium size long-haul planes (A350 or B787). There is in fact nothing new, as this order has been planned for ages. It was  postponed for various reasons, including specifications not being supplied by the manufacturers.

Planes would be delivered in 2014-2015 (first stage would be replacement of Air France A340 and KLM MD-11), a perfect timing for the company which indeed hopes that at this moment the crisis will be past, with a potential increase of fuel prices, and thus the competitive advantage of a young fleet, mechanically burning less fuel.

Finally, ordering aircraft in this period of economic slump is probably the best way for Air France to make the bill fall… Especially since the financing of those will be probably easier to settle, as usual in the sector; 20% will be to pay at signature, and the remaining 80 % on delivery.

References

• Article: Tourner autour du globe en Airbus A380, Le Figaro, Feb. 16, 2009: here
• Article: Commentaire “Questions autour de la méga-commande d’Air France-KLM”, par Vincent Lamigeon (Challenges): here
• Website: International Air Transport Association, IATA: here

Jean Plateau

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High-speed rail conference rolls into Merrillville (Northwest Indiana Times, March 18, 2009)

[...] “I really believe Indiana can emerge as a leader in rail transport,” said Dennis Hodges, Indiana High Speed Rail Association founder. “We did it once before, and we can do it again.”

But Hodges admits high speed rail has so far been a go-slow proposition in Indiana. State and local officials here are notably cool toward the idea while governors and public officials in other states already have announced plans for the high-speed rail stimulus funds.

The 10th Annual Golden Spike Seminar is scheduled to begin with an overview at 8:30 a.m. at the Radisson Hotel in Merrillville. Registration and payment will be taken at the door. [...] (Story continued here)

Seminar addresses need for speed (Northwest Indiana Times, March 20, 2009)

“High speed rail travel is flourishing just about everywhere in the world except the Midwest, the leader of a pioneering passenger rail system in France told a region gathering Thursday.

Jean-Pierre Loubinoux, chairman of SNCF International, spoke of the benefits of implementing high speed rail systems during a conference hosted by the Indiana High Speed Rail Association.” [...] (Story continued here)

SNCF “very interested” in running railway in US-paper (Reuters, March 20, 2009)

“PARIS, March 20 (Reuters) – France’s state-owned railway SNCF would be “very interested” in operating a high-speed railway network in the United States, French newspaper Les Echos reported on Thursday. In France’s experience, high-speed railway systems are most efficient when they link large cities 1,000 to 1,500 kilometres apart, Les Echos quoted SNCF International president Jean-Pierre Loubinoux as saying on the sidelines of a conference in Indiana.” [...] (Story continued here)

France’s SNCF hopes to run high speed rail in US (AFP, March 20, 2009)

“MERRILLVILLE, Indiana (AFP) — The United States is ready for a truly high-speed rail system and France’s national railway SNCF would be “very interested” in operating a network, a senior executive said Thursday. “We strongly believe that in this country, in some of the corridors, the system should logically be profitable,” SNCF International chairman Jean-Pierre Loubinoux said in an interview on the sidelines of a rail conference in Indiana.” [...] (Story continued here)

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SITL Real Time 2009

For the international and national communities of transporters of freight and logistics service providers, SITL offers a unique access to innovative products and services dedicated to procurement, distribution and the supply chain of tomorrow.

SITL is THE place to get the most relevant information about the composition and evolution of markets and the development of their networks. It enables access to all the tools required to win in competitiveness and performance in both strategic and operational matters.

SITL: linking the world of logistics

Key data for SITL Real Time

• 500 exhibitors
• 27,000 sqm of exhibition space
• 25,800 professionals
• 56 countries
• 70 media
• 250 journalists
• More than 30 conferences

Source : SITL Temps Réel 2009

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