Theyre off Airlines start rates rise race

APING the recent announcement by Lufthansa Cargo that it will raise its rates by 25 per cent, first reported by Air Cargo News, Air France-KLM Cargo has announced an almost identical policy.
 
Carriers have had to be extremely careful in applying new rates and the way this is done, since the DoJ launched its widespread investigation into price-fixing cartel activity in February 2006. AF-KLM announced that it would increase its rates by between 20 and 30 per cent from October.
 
The email, almost exactly duplicating the sentiments of Lufthansa Cargo’s letter to customers, said: “The results of Air France Cargo-KLM Cargo are under severe pressure given the extraordinary market conditions faced by our industry.
 
“In this economic environment, and in order to maintain our contribution to the airfreight supply chain, in terms of capacity and services, Air France Cargo-KLM Cargo is now forced to increase its freight rates by 20 to 30 percent as of early October.”
 
It will be interesting now to see which other carriers announce rate rises and how long it will take.