measure, saying it would severely disrupt its air-service business. The House passed a bill with the FedEx provision last year, but a version passed by the Senate in March excludes the measure. Mr. Rockefeller and his counterpart in the House, Rep. James Oberstar (D., Minn.), have spent months in talks to merge the bills but haven't reached agreement on a final version that could clear each chamber. Mr. Oberstar, the main proponent of the FedEx language, said this week that he and Mr. Rockefeller agreed on the broad principles of the legislation and that no differences were insurmountable. The only major obstacle to the FedEx provision, he said, was the threat of a filibuster—a procedural tactic to effectively block a vote—by Tennessee's Republican senators, Lamar Alexander and Bob Corker. FedEx is based in Memphis, Tenn.

Air cargo volumes rebounded by an annualized 26 percent in the first quarter, and shippers and cargo executives expect a strong 2010 although growth could slow in the second half, IATA said. In a snapshot of the cargo industry, whose health is seen as a barometer for the state of international trade, the International Air Transport Association said that improved cargo yields had boosted revenues by 30 to 40 percent in the first quarter. While the Icelandic volcanic ash plume caused a temporary dent, most regions are now experiencing growth at a rate of 20 percent or higher, the Geneva-based industry group found. "Considerable momentum appears to remain for the near term," its report found. International trade in goods rose at a 22 percent annual rate in the first quarter, and ocean freight has also recovered well with volumes up 20 percent and yields up 50 percent or more, IATA estimated. "All ocean transport modes now show that world trade was rising very strongly in the first quarter of 2010," it said, while stressing that large numbers of shippers chose to use air transport instead to get their goods delivered quickly. The United States, for instance, shipped around 30 percent of its exports by value using air transport from January to March, IATA estimated. "Rising oil prices have been raising the unit value of ocean trade but air cargo has nonetheless maintained its share of value due to the recent strength of volumes, as shippers have switched from ocean to air as time became more important as the economy recovered," it said.

Boeing announced that the 747-8 freighter has received expanded type inspection authorization from US FAA, a critical step toward certification that allows agency personnel to participate in test flights and collect required data. The aircraft achieved first flight in February and first delivery to launch customer Cargolux is scheduled for the fourth quarter (ATW Daily News, Feb. 9). Boeing also said yesterday that it has started fuselage assembly of the first 747-8 Intercontinental, the passenger version that is slated for first delivery in late 2011. VP and GM-747 Program Mo Yahyavi said the 747-8F "is performing well in the tests. We have demonstrated the airplane's readiness to move onto the next stage in the flight-test program through tests at a variety of speeds, altitudes and configurations." During this TIA phase of testing, "the extremes of the flight envelope are explored," the manufacturer said. "Testing conditions include operations in hot and cold weather as well as takeoffs and landings at high-altitude airports. In addition, overspeed conditions, hard landings and engine-out conditions are tested." Boeing said. It has 109 orders for the 747-8 comprising 33 for the -8I and 76 for the -8F.

Cathay Pacific received EU regulatory approval on Friday for its USD$474 million cargo joint venture with Air China to expand into the fast-growing Yangtze River Delta region in China. The Hong Kong-based airline said in February it would pay CNY852 million yuan (USD$124.8 million) for a 25 percent stake in Air China Cargo and provide an CNY817 million loan for an additional 24 percent economic interest in the venture. The venture would help the two airlines to better compete with China Eastern Airlines, which has about half of the Shanghai market after its merger with Shanghai Air. "The Commission's market investigation confirmed that competition on this market will remain strong after the transaction, notably due to the presence of many large international airline companies active on the same routes," the European Commission said in a statement.

Nippon Cargo Airlines (NCA) is putting the deep freeze on some of its cargo operations - and that's a good thing. The Japanese carrier recently signed a lease agreement