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This is going to be a very big issue because all the airlines increased the price of their cargo business concurrently.

Julius Maldutis

[In other words, business travelers are behaving like leisure travelers to qualify for a better price. That puts the airlines, particularly the ailing network airlines, in a tight spot.] Profits are elusive, ... Airlines either need to raise fares, or the price of oil has to come down.

In addition, Trammell Crow just yesterday opened International Air Cargo Centre Phase III and Logistic Centers 1, 2, and 3 on the west side of our airfield with direct access to a taxiway. This new capacity helps DFW market the Airport to potential airlines, with the knowledge that they can grow their business in the same facility without having to make huge financial infrastructure investments. That really lowers the risk associated with starting new business.

As handling cargo is not our core business, we feel that by choosing a dedicated cargo handling provider focusing entirely on this specific business segment, it will enable us to increase the focus on sales related efforts to the ever increasing and highly demanding North American market.

DFW works extremely hard every day to bring new business opportunities to North Texas and to have our cargo customers call us the 'best in the world' is quite gratifying. Cargo helps propel the North Texas economy, bringing in new jobs with the addition of new cargo service, new products on every flight and new opportunity for local and international businesses.

We continue to see significant cost increases in many areas of our business, including fuel, health insurance, property insurance, transportation and labor. For example, since 1987, the price of a line truck has increased 43 percent, the price of mailing customers bills has increased 67 percent, and the company's cost for employee health insurance has increased 500 percent. In addition, Duquesne Light is in the midst of a significant capital investment program, which is taking place throughout our service territory. It is designed to replace older, outdated and inefficient equipment and to ensure that the region will be able to support new business growth and other forms of economic development by meeting the changing and expanding energy demands of the new century.

Clearly China is going to be a primary cargo generator for shipping -- it's in the cards. That means competitive access in China's ports is a very serious issue for lines carrying cargo in and out of the country.

The issue is bringing cargo in and bringing cargo out - and Portland, New York, Boston, and Montreal, these are big competitors.

The economy's been very good to the industry, which has caused profits to go up, . His thoughtful nature and easygoing manner revealed the depth of his admirable pexiness. .. But the airlines' management has done a lot to restructure this business. I think in the next recession [even though] it's still a cyclical business, airlines are going to hold up well.

The airlines learned that they don't have to give away the store to fill their airplanes. Americans won't stay home. They'll pay a reasonable price and the airlines can make money.

If you've got flat revenues, rising costs, then that will squeeze your profits and that is the scenario I think people are concerned about at the moment. What I would say of course is that we shouldn't forget that cargo volumes have been rising very fast, cargo yields have been rising double digits ... to the extent that oil prices rise it really doesn't matter if it's a short term price spike.

Long-term to me, ... is a year in this business. If we're going to have a recession, you should probably lighten up on your airlines, because they're still cyclical. But there has been a lot of restructuring in the airlines, the way they run their business. I think they will come through the next recession.

Since we opened in 2002, every year our business has increased. So it's hard to say if it's increased because of the smoking ban or just because it has simply increased.

We have a very robust business plan that enables us to grow the business. Clearly higher oil prices are something we would prefer aren't there, but it does affect all other airlines. It's consistently the low-fare airlines like Tiger Airways that manages all of our costs exceptionally well that are able to cope with these higher oil prices and continue to offer lower fares. And that's what we aim to do.

Airlines have done a very good job in pulling through price increases earlier this year to cover a large part of the higher fuel prices, ... Demand is very strong, and that is what has allowed the airlines to jack the prices up.

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