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Updates on EU Air Space
4/20/2010

 * EU Transport Ministers Agree to Gradually Open Airspace

 European Union transport ministers agreed on Monday to gradually ease restrictions in place in European airspace since the Icelandic volcano started hurling ash into the atmosphere reports the “Financial Post”. A source at the presidency of the EU said an area immediately around the volcano would remain closed and that ministers had proposed the "progressive and coordinated" opening of airspace in a second zone further from the volcano. Germany's Transport Minister said Monday that complete closure of German airspace has been lifted. The minister says European countries have agreed to open airspace step by step.

 In a separate report by the “BBC”, Transport ministers said there would be a core no-fly zone, another zone open to all flights and a third "caution" zone, allowing some flights. The move came as the UK, Germany, the Netherlands, France and Belgium said they would begin to reopen airspace. Britain's air traffic control body said airspace in Scotland, parts of the north of England and Northern Ireland would reopen on Tuesday.

 Lufthansa, meanwhile, was allowed by the German aviation authority to operate 50 long-haul flights to Frankfurt, Munich and Dusseldorf. France said it would reopen Lyon airport later on Monday, before opening air corridors for flights between Paris and southern French cities, and eventually all its other airports. Some passenger flights were to be allowed to leave Schiphol Airport in Amsterdam from Monday night. Belgium said it would begin reopening the country's air space on Tuesday morning. Several European airports have already reopened - including those in Austria, Estonia, Finland, Hungary and Turkey, after authorities there decided there was no longer any risk from the ash cloud. But Italy's civil aviation authority has shut the country's northern airspace until Tuesday morning. In Spain, where all airports were open, the government offered to let Britain and other European countries use its airports as stopovers to get passengers moving again.

  

* Impacts of European Air Space Closure

 CIFFA Members should ensure that all customers are aware that the closing of European airspace is unprecedented.  When the skies are opened to flights again, everyone should expect massive backlogs of freight and several days of business ‘not as usual’.  It is expected that capacity will be severely restrained as backlogs begin to move.

 Shippers should be reminded that many airlines have stopped accepting freight.  Until there is some clarity regarding the situation, of when and how airlines will begin taking bookings and accepting cargo again, shippers should be advised to hold air cargo on their own premises.  All of the cargo at airline facilities around the world -- ‘already in the system’ must be cleared, followed by the cargo being held at freight forwarders’ facilities, followed by new bookings. It will take calm and patience to see the industry through the next several days and possibly weeks.  

 Shippers will also face increasing freight rates. Air cargo rates were already rising, particularly for export shipments out of Asia, when the volcano situation created a no fly zone across northern Europe. Higher rates will immediately impact just-in-time manufacturers who have been replenishing inventories run down during the recession since the beginning of the year.

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