Fisheries and Aquaculture
Business
November 16, 2007

Today the Provincial Government announced there will be direct flights from Gander to Iceland that will carry fresh Newfoundland and Labrador seafood cargo to various European markets.

The announcement was made at Gander International Airport by the Honourable Tom Rideout, Minister of Fisheries and Aquaculture, and the Honourable Paul Oram, Minister of Business. This important business development opportunity has been arranged by Fly Fresh Freight Inc., a private sector company with core strengths in the provision of logistics, cargo movements and market development activities. The ministers were joined by Paul Lannon of Fly Fresh Freight and Gary Vey, president and CEO of the Gander International Airport Authority.

"My department has been working with Fly Fresh Freight and various seafood producers in the province over the past year to develop an improved supply chain to Europe," said Minister Rideout. "Today, I am pleased to announce we have been successful in establishing a promising venture for a direct flight from Gander to Reykjavik, Iceland, for the delivery of fresh seafood into the European marketplace. Today is the inaugural flight from Gander for this promising new venture and we expect the results to be very positive for the province�s seafood producing sector."

There is a growing appetite for fresh seafood in many parts of the world and Europeans are already major consumers of high quality fresh seafood. One of the province�s main stumbling blocks for growing the sale of Newfoundland and Labrador seafood in European markets has been the lack of consistent and reliable transportation for the product.

Fly Fresh Freight is a joint venture of PF Collins Ltd. and Atlantis Aviation Consulting. PF Collins Ltd., a well-known, provincially-based company, is the largest international trade services provider based in Atlantic Canada.

"Our government is committed to growing business development opportunities throughout the province particularly through the establishment of a competitive infrastructure and the right investment climate for business," said Minister Oram. "PF Collins has a long history of excellent services to its customers and is fully aware of the issues involved in the movement of perishable products. Atlantis Aviation Consulting brings an extensive business and aviation network with a strategic understanding of the air cargo industry, including its decision-making processes, limitations and opportunities to this initiative."

A weekly non-stop return flight from Iceland to Gander will place seafood at a major air cargo hub that is well-positioned for distribution throughout Europe. Iceland Air will land in Gander once each week, take on the cargo of seafood and return to Iceland.

Minister Rideout said, "I knew when I visited Ostend, Belgium and Yerseke in the Netherlands in October 2006 that there were opportunities to break into those markets in a big way if we could overcome the logistical challenges. I�m so glad to report that we are developing a mechanism to overcome those challenges."

"I am very proud today to see this initiative finally come to fruition. Various groups and stakeholders have pursued this opportunity over the years and so I commend Fly Fresh Fish Inc. on its success," said the Honourable Kevin O�Brien, MHA for the district of Gander. "As MHA, I see Gander International Airport as being critical to ever-changing industries such as seafood. There is an increasing demand for high quality, fresh product around the world and Gander can play a vital role in linking to this market."

Paul Lannon of the company said, "At Fly Fresh Freight we are excited to be part of this initiative, which opens a new gateway for the Newfoundland and Labrador seafood industry. Fly Fresh Freight has received tremendous co-operation from both the Provincial Government and the Atlantic Canada Opportunities Agency in building this supply chain, as well as considerable interest from the seafood producers from this province. This new air cargo route allows those seafood producers to reach further with new products into new markets.

"Fresh seafood is of increasing importance in the global market; the success of this venture is based upon our firm belief that Newfoundland and Labrador seafood producers have the quality products and marketing vision to take advantage of this supply chain opportunity," said Mr. Lannon.

"The establishment of a scheduled cargo service has been a key part of our business plan and we have worked a great deal on this project for the last three years," said Gary Vey. "The Provincial Government has provided invaluable support in getting this off the ground. They have shared our vision of establishing Gander as a hub for perishables export from the province. Cargo represents the single greatest opportunity for sustainable revenue and the long-term economic health of the airport."

"This initiative we are announcing today will go a long way toward developing the province�s potential for marketing our seafood products in Europe. With the high value of the Canadian dollar, tapping into new markets is more important now than ever before. This is a developmental project for our industry and reflects our government�s vision of the fishery in the future. It represents the fishery that stakeholders told us they wanted during our Fishing Industry Renewal process," said Minister Rideout.

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Fly Fresh Freight Inc. has been working with the seafood industry in Newfoundland and Labrador over the past three years to develop a cool-supply-chain between the province and Europe. During that time, Icewater Seafoods has successfully shipped and marketed fresh cod to the United Kingdom and continental Europe.

Fly Fresh Freight Inc. has identified Iceland Air as the preferred carrier for this initiative as a result of the airline�s leading industry experience in shipping fresh fish products into target European markets.

Initially Fly Fresh Freight Inc. had identified Air Canada�s direct connection from St. John�s to Heathrow as a transportation method for building the fresh seafood supply chain to Europe. The cancellation of the Boeing 767 flight to Heathrow was a setback to the project, just as it was a setback to many businesses in the province. Through Fly Fresh Freight Inc. and Gander International Airport Authority, a solution was found.

During the past two years, smaller loads of 3,600 kg per week have been delivered to Europe via Air Canada and other carriers. This served to evaluate the market demand for Newfoundland and Labrador seafood, with very positive results. However, smaller loads result in a higher cost per unit of fish. The new initiative involving Iceland Air will dramatically increase cargo capacity to 32 tonnes per flight. It is expected to provide reliable service at a lower cost.

The Provincial Government has provided $32,000 in funding to Fly Fresh Freight Inc. for the development of a report on supply chain options for delivering seafood from this province to Europe. As well, $3,500 was provided to offset some market development costs for shipping fresh seafood to the United Kingdom and the Ostend Fish Auction.

Fly Fresh Freight has had discussions with a number of significant Newfoundland and Labrador processors and will also work with other provincially-based companies. Having a cargo airlift capability is an important infrastructure requirement for many businesses in this province. Oil, mining and other industries often require parts and machinery on an urgent basis. Manufacturers need a timely and economical trade lane to bring products to market.