Air cargo climbs.

• Author: Tyson, Ray
• Position: Alaska air cargo industry

AIR CARGO CLIMBS

ALASKA'S AIR CARGO INDUStry ended the decade on a high plain and could soar even higher in the 1990s if Pacific Rim markets continue to strengthen. "Air cargo (expansion) for the past 10 years has been greater than passenger growth; it's continued to grow by astounding numbers," says Andy Ammann, cargo traffic supervisor for Japan Airlines (JAL).

As the major transit point for international cargo flights, in fact, Anchorage has seen its annual freight landings soar from 1980 through 1989. Cargo, much of which transits the airport on refueling flights, grew a hefty 221 percent, from 1.8 million pounds 10 years ago to 7.4 million pounds for the first 11 months of 1989.

The new U.S.-Japan bilateral route agreement, signed in November, is of particular interest to the state because of Alaska's ideal global position as an international refueling hub. "We expect many of those flights to come through Alaska," says Gina Marie Lindsey, executive director of the Alaska International Airport System.

Two Japanese carriers that refuel in Anchorage - JAL and Nippon Cargo Airlines - already are preparing to divvy up the new routes from Japan to Chicago, New York and other eastern destinations. "We're asking for four or five new flights. But we're not sure," says Nippon's Hiroshi Nagai, manager of administration and flight operations. "The bilateral agreement is going to help Anchorage a whole lot."

Of major interest to local officials is a provision in the agreement that establishes a new route for a U.S. cargo carrier. Not only does Lindsey believe United Parcel Service will win the landing rights, but she thinks UPS will select Anchorage as its hub to service Japan. "They are by no means a shooin," she says. "But they are widely considered the favorite. Their operations are expanding and their volume is increasing."

While declining to elaborate on the company's future plans for Alaska, Doug Kuelpman, UPS' public affairs manager for air operations, has acknowledged that UPS is thinking about expanding its operation here when its agreement to lease MarkAir facilities expires in 1992. As far as picking Anchorage as its transit point, should the carrier win Japanese landing rights, Kuelpman explains, "Anchorage already is our hub. We are now doing statewide distribution, and our business is growing. We just need to make sure we have enough facility for the air operation expanding through Anchorage to the Far East."

In Anchorage to dedicate Federal Express' new international package-sorting facility in October, Fred Smith, the company's founder and president, said he fully expects his competitor to expand its Far East operations in Alaska. But he added that UPS would have a tough time gaining route authority from the Japanese because "they don't give them out liberally." That was before announcement of the bilateral agreement establishing a new cargo route, however.

By far, the biggest air cargo event of 1989 was Federal Express' acquisition of Flying Tigers and the opening of a world-class package facility at Anchorage International Airport. Not only did Anchorage need a spiritual lift in the wake of a difficult economic recession, but city and state officials are optimistic other businesses looking to piggyback on Federal Express' worldwide distribution network will want to make a home in Alaska.

Federal Express had no more than begun work on its $11 million...