Identifier
Created
Classification
Origin
09PRETORIA1135
2009-06-05 14:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Pretoria
Cable title:  

AIR CARGO TRADE GROWS AS AIRLINES EXPAND SERVICE BETWEEN

Tags:  EAIR ECON EINV ETRD SOCI SNAR SF 
pdf how-to read a cable
VZCZCXRO1743
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHSA #1135/01 1561403
ZNR UUUUU ZZH
R 051403Z JUN 09
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 8722
INFO RUCPDC/DEPT OF COMMERCE WASHINGTON DC
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHZO/AFRICAN UNION COLLECTIVE
RUEANHA/FAA NATIONAL HQ WASHDC
UNCLAS SECTION 01 OF 02 PRETORIA 001135 

SENSITIVE BUT UNCLASSIFIED
SIPDIS

DAKAR FOR FAA REP MO KEANE
FAA FOR NANCY ANGELO
DEPT FOR EEB/TRA
ROME FOR TSA REP ANTHONY GIOVANNIELLO

E.O. 12958: N/A
TAGS: EAIR ECON EINV ETRD SOCI SNAR SF
SUBJECT: AIR CARGO TRADE GROWS AS AIRLINES EXPAND SERVICE BETWEEN
U.S. AND SOUTH AFRICA

REF: A. 09 PRETORIA 333, B. 09 PRETORIA 129

This cable contains company proprietary information.

UNCLAS SECTION 01 OF 02 PRETORIA 001135

SENSITIVE BUT UNCLASSIFIED
SIPDIS

DAKAR FOR FAA REP MO KEANE
FAA FOR NANCY ANGELO
DEPT FOR EEB/TRA
ROME FOR TSA REP ANTHONY GIOVANNIELLO

E.O. 12958: N/A
TAGS: EAIR ECON EINV ETRD SOCI SNAR SF
SUBJECT: AIR CARGO TRADE GROWS AS AIRLINES EXPAND SERVICE BETWEEN
U.S. AND SOUTH AFRICA

REF: A. 09 PRETORIA 333, B. 09 PRETORIA 129

This cable contains company proprietary information.


1. (SBU) Summary. Charge La Lime hosted a lunch on May 14 for Delta
officials and representatives of the Commercial, Consular, Economic,
and Management sections of the mission. Delta Southern Africa
General Sales Manager Margaret Copeland and outsourced Cargo Manager
Anne Sanders provided an update on cargo volumes and security issues
related to Delta's South Africa operations. Copeland was pleased
with cargo volumes on its South African services and noted that
Delta has had to upgrade its aircraft to deal with baggage and cargo
demands on its new Nigeria service. She cited improvements in
baggage and cargo security measures at South African airports, but
thought there was significant room for improvement of crew screening
procedures. Increased air service between Africa and the U.S. will
allow countries in the region to take better advantage of the trade
promotion incentives provided by the U.S. (See Septel for discussion
of Delta's expansion strategy in Africa and an update on the impact
of the global economic crisis on Delta's passenger volume growth).
End Summary.


2. (U) Charge La Lime hosted a lunch on May 14 for Delta Southern
Africa General Sales Manager Margaret Copeland and Delta Cargo
Manager Ann Sanders. Representatives of the Commercial, Consular,
Economic, and Management sections of the mission also attended the
luncheon.

--------------
CARGO VOLUMES
DOING WELL
--------------


3. (SBU) Copeland was pleased with cargo volumes on Delta's
Johannesburg and Cape Town services to Atlanta. Sanders explained
that because of altitude-related weight restrictions, the flight
from Johannesburg is limited in the amount of cargo it can carry.
This is not a concern for the Cape Town flight since that starts
closer to sea-level. Delta carries some cargo for U.S. courier
services such as UPS, but that business is a small percentage of

their operations since most U.S. couriers do not have hubs in
Atlanta. Sanders said Delta was now also getting business from the
U.S. Embassy community. Delta is carrying the Embassy's
unaccompanied baggage.


4. (SBU) Sanders said 60 percent of the outgoing cargo volume on the
Johannesburg flight was composed of stuffed hunting trophies. The
majority of cargo on the Cape Town flight consisted of perishable
goods such as fruit, flowers, and both fresh and frozen fish.
Products such as ink bottles and wine taps (for cardboard wine
dispensers) were also transported in large quantities from Cape
Town. She noted that automotive components such as catalytic
convertors were usually sent via maritime cargo, but occasionally
Delta receives large shipments in Johannesburg for U.S. auto
manufacturers who have adjusted their inventory strategy to a
just-in-time inventory approach due to the global economic slowdown.
Textile products from Lesotho and Mauritius are also transported to
the U.S. on the Johannesburg flight.


5. (SBU) Sanders explained that the final destination for incoming
cargo on the Delta flights is for the South African market. In
comparison, most of the incoming cargo on South African Airways
(SAA) is destined for other countries in the South African
Development Community (SADC) region because of SAA's regional air
QDevelopment Community (SADC) region because of SAA's regional air
network. Major cargo shipments from the U.S. include high-end
products such as pharmaceuticals.

--------------
ADAPTING SERVICE
--------------


6. Copeland explained that Delta has already had to upgrade the
aircraft for its new direct service to Nigeria to deal with cargo
and passenger luggage demands. Shortly after launching the service,
a passenger arrived at the Delta ticket counter in Lagos with 125
suitcases. Delta had to send an additional plane to accommodate
this additional demand and charged $55,000 in excess baggage fees.
She also explained that stowaways at its hub in Dakar and other
smaller airports in Africa were a cause for concern due to the lack
of adequate fencing at these airports. The vast majority of the
stowaways died after being crushed to death in the external wheel
compartments by the contracting wheels after take-off.


PRETORIA 00001135 002 OF 002


--------------
BAGGAGE AND CARGO
SECURITY CONCERNS
--------------


7. (U) Post inquired about the status of cargo and baggage security
upgrades at the Airport Company of South Africa (ACSA),which runs
all of the international airports in the country. Copeland and
Sanders said Delta enforced a 100 percent screening policy for its
cargo, but agreed that passenger baggage theft has historically been
an area of concern at the ACSA airports. Copeland explained that
the use of subcontractors had been one of the major causes of
baggage theft and the use of shrink-wrap did not reduce theft.
Equity Aviations, which used temporary staff and subcontractors, has
lost its ACSA permit. Baggage handling companies are now required
to hire permanent staff to receive an ACSA permit, which has reduced
baggage theft.


8. (SBU) Sanders stated that drug trafficking has also been a
concern at the airports. Delta screening has found marijuana in
cargo destined for Miami. Delta notifies the South African Revenue
Service and other appropriate authorities whenever this occurs.
Sometimes the authorities let the cargo proceed to see where it
winds up in order to follow-up at the final destination. Post also
inquired about status of the additional security measures instated
after two SAA crews were detained in the UK for drug smuggling
(Reftels A and B). Copeland believed that SAA crew screening was
still inadequate to deal with the drug trafficking threat.

--------------
STATUS OF AIR
MARSHAL AGREEMENT
--------------


9. (SBU) Post informed Copeland that progress on implementation of
the Transportation Security Administration (TSA) Air Marshals
Agreement has been slow. Agreement has been reached on the text of
the memorandum of understanding. However, administrative delays at
the South African Department of Transport (DOT) have held up the
signing on the South African side. Implementation can only begin
after the DOT Director General signs the final agreement.

--------------
COMMENT
--------------


10. (U) Increased air service between Africa and the U.S. allows
countries in the region to take better advantage of the trade
incentives provided by the African Growth and Opportunities Act
(AGOA),which allows exports from the region to enter the U.S.
market virtually free of tariffs. Trade in perishable products and
manufactured products for just-in-time inventory needs is expected
to increase as a result of Delta and SAA's recent Africa-wide
service expansions and aircraft upgrades. Security will remain a
concern as air traffic and cargo movements continue to increase
between the U.S. and Africa.

LA LIME