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Saturday, October 28, 2006

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TRANSPORTATION / LOGISTICS - March 1 to March 31, 2005

The Department of Transportation (DOT) has said it will award new US-China passenger routes opening this month and March 2006 to Continental Airlines and American Airlines. Both airlines are new entrants in the US-China market. The award gives Continental seven weekly passenger flights for rights that will become available on March 25. Continental will serve the Newark/New York-Beijing market, while seven weekly passenger flights have been awarded to American Airlines on the Chicago-Shanghai route, effective March 25, 2006. The new service routes were made possible through a bilateral aviation agreement signed in July 2004. At the same time, the DOT is also proposing to award new weekly cargo flights to four carriers already serving the market - Federal Express (FedEx), Northwest Airlines, Polar Air Cargo, and United Parcel Service (UPS). When the new flights become operational, the number of US airlines in the market and the number of flights they can operate will be nearly double current figures. The aviation agreement provides for an increase from 54 to 249 weekly flights for each country's carriers over a period of six years.  Several US carriers applied to become new entrants to the markets for passenger services and all-cargo flights in 2005 or 2006; and…
 
United Parcel Service (UPS) is in the process of acquiring Messenger Service Stolica S.A. in an effort to expand its business in Poland. UPS, the world's largest package delivery company, did not disclose terms of its purchase of Warsaw-based Stolica. Stolica offers a full range of delivery services in Poland, where it has been operating since 1993. Its 2004 sales totaled about $64 million. UPS has offered service in Poland since 1992. In 2004, the year the country joined the European Union, UPS saw a nearly 35% increase in export volume from Poland. The Atlanta-headquartered expedited air carrier said it expects to close the deal early in the second quarter of this year.

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