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TRANSPORTATION / LOGISTICS - September 1 to September 15, 2003

UNITED TO RESUME TRANSPACIFIC SERVICE

CHICAGO - United Airlines will restore all trans-Pacific flights this month, including those from Hong Kong, as it attempts to recover from the sharp downturn in air travel caused by SARS.

Meanwhile, the Associated Press has quoted United's chief executive, Glenn Tilton as saying that he will discuss cooperation plans with mainland Chinese airlines to help United expand into the booming mainland Chinese aviation market.

United slashed 75% of its flights in and out of Hong Kong at the peak of the SARS outbreak, said Mark Schwab, a United vice president.
 
The airline, which earns 17% of its revenue from trans-Pacific routes, has been gradually restoring its services since SARS fears eased in June, Schwab said. The airline will also resume daily flights between Hong Kong and Singapore in late October.
 
United Senior Vice President Graham Atkinson said the airline is "seeing a significant upturn in terms of business travelers' pent-up demand," but a full recovery "is only expected by the end of this year or early next year."

A code-sharing agreement with Chinese partners would allow United to put its UA flight numbers on its mainland partner's services and sell seats as if they were on United flights.

MENLO OPENS NEW OFFICE AT PORT OF MANZANILLO

REDWOOD CITY - Menlo Worldwide Forwarding has opened a new office serving the Port of Manzanillo, Mexico's busiest and largest Pacific port that strategically links Mexico to 74 countries throughout the world.

The Port of Manzanillo is 300 kilometers west of Guadalajara and services 15
states in the Republic of Mexico.  It is located next to the state of Jalisco, which has more than 130 Maquiladora plants, as well as a host of major companies representing a wide swath of industries.

In addition to the new Manzanillo office, Menlo Worldwide Forwarding is also represented in Guadalajara, Mexico City, Monterrey, Chihuahua, Aguascalientes, Leon, Veracruz, Queretaro, and Saltillo. 

Menlo recently expanded its Economy service to Tijuana/Mesa de Otay, Mexicali, Hermosillo, Nuevo Laredo, Reynosa/Matamoros, San Luis Potosi, Celaya/Guanajuato, Tlaxcala, Cuernavaca, Toluca and Puebla.

CHINA CUTS EXPRESS MAIL COSTS TO FEND OFF RIVALS
 
BEIJING - Reuters reports that China's state postal monopoly has announced a 10% cut in charges for domestic express mail in a bid to fend off foreign rivals.
 
"The price change is aimed at helping China Post win a bigger share of the market," the news agency quoted Ma Zhanhong, deputy head of the express mail service department, as saying.

According to The People's Daily in Beijing, China Post had a 70% share of the domestic express mail market.

But global courier firms such as DHL Worldwide Express and FedEx Corp. are reportedly expanding in China's booming parcel market despite bureaucratic hassles.

The country is opening up the industry as part of pledges to the World Trade Organization, but overseas firms still face curbs that protect state firms.

China Post is expected to make a profit of about $29 million this year, the paper said.

The company has said it will restructure branches in Beijing, Fujian, Shanghai, Zhejiang, Guangdong and Jiangsu and float shares in Hong Kong. The listing plan had been submitted to the State Council -- China's cabinet -- for approval. 

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