Despite widespread concern among shippers that full inspection of belly cargo is too costly, the U.S. Congress could pass an air cargo security bill before the July 4th recess, sources in both houses said. The final bill is expected to be a compilation of the House's HR-1, which phases in 100 percent physical inspection of cargo, and the Senate's S-4, which requires 100 percent screening of cargo carried in the bellies of U.S. airliners after three years. Shippers call the Senate version more practical and less costly to the industry. The White House opposes the screening provisions, saying the technology does not now exist to handle the level of physical inspection required without impeding the "legitimate flow of commerce." Although conferees from both Houses have yet to be appointed, there has been "pre-conferencing" among staffers and Members for over a month. The group has reached a compromise on all provisions in both bills with the exception of the major issue of screening versus inspection. "We're continuing to negotiate this issue, but it hasn't been resolved at this point," said one Senate staffer involved in the meetings.

Cargo Airport Services has acquired the Cargo Zone Group of Companies based in Montreal, Canada, with operations in Toronto and Montreal. This acquisition will add to CAS’ growing customer base, including prestigious carriers such as Korean Air, Air Transat, and Lot Polish along with freight forwarders DHL Global, Hellmann, BAX Global and Kuehne and Nagel. This partnership also brings two new services to the CAS group, local transportation and maritime services. CAS will have operations at 8 locations throughout the US and Canada, with a leading cargo handling position in most of the markets it serves. Michael Duffy, President of CAS, commented that “The Zone Companies have been providing superior handling services for many years and their commitment to customer service and strong reputation in the marketplace will fit well with CAS.” Mr. Duffy also noted that the Zone Group management will stay on board and continue to run the Canadian operations. The acquisition of the Zone Companies enables CAS to expand its presence from the Northeast and Texas where it has rapidly expanded the last year. In the last few months, CAS acquired the assets of Genesis Aircraft Support, Inc. based in Houston, Texas and added All Nippon Airways, Etihad, SilverJet, LAN Cargo, SAS, South African Airways and Qatar Airways to the customer base it services in the Northeast. CAS operates at four cargo terminals at JFK and opened for business during the last year in Newark Liberty International Airport, Washington Dulles International Airport, San Antonio Airport and Alliance Fort Worth Airport late last year.

GE Commercial Aviation Services showed increased confidence in the market for large aircraft by ordering six more Boeing 777 Freighters worth approximately $1.42 billion at list prices. The leasing company has now ordered a total of 39 aircraft in the 777 class. Fourteen of them are freighters. "We are very pleased to have finalized this order for six additional 777 aircraft," said Henry Hubschman, president and CEO of GECAS. "The 777 has proven itself to be a strong performer in the passenger market, and we believe this will also apply in the cargo segment." The 777 Freighter has a revenue payload capability of 104 metric tonnes and a range of 9,045 kilometers with a full payload and general cargo market densities, making it the longest-range twin-engine freighter. The airplane will be powered by the General Electric GE90-110B1L engine. GECAS will take delivery of the first 777 Freighter in the fourth quarter of 2008.

Menzies has been awarded a contract to provide cargo handling services to Aer Lingus at all seven of the airports to which it operates in the United States. The contract also includes cargo handling at Prague’s Ruzyne Airport. Menzies already handles Aer Lingus’s cargo business at London Heathrow. Of the airports handled by Menzies, Washington, San Francisco and Orlando will be new routes for Aer Lingus starting this summer and autumn. “We are delighted to have been awarded a regional-wide contract with Aer Lingus in the United States following on from the development of our successful relationship in the UK,” commented Craig Smyth, Managing Director, Menzies Aviation plc. Robert Bullock, head of cargo for Aer Lingus added: “We are delighted to extend our relationship with Menzies Aviation to the US. Their ability to deliver a single point of contact and consistent service was key to our decision to award them a US wide agreement.”

FedEx Corp. plans to increase its fleet of 700 aircraft by more than 100, its regional vice president of operations for Southern Europe revealed. Speaking at the Paris Air Show, Alain Chaille said the company is to increase its fleet by 105 after placing orders with U.S. aviation giant Boeing for 90 of its 757s and 15 of its 777s. The 757s will be delivered in 2008, Chaille said, while the 777s will arrive in 2009. Chaille also said the company may make further acquisitions this year, as it looks to expand its operations in Europe and Asia.