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FOR the first time, the Kuehne+Nagel group has been included in the Fortune Global 500 list, which is compiled annually... pAGE 4
SyDNEy’S NEw GlOBAl... AUSTRALIA’S best airport terminal is coming to life with work continuing on what will be the gateway welcoming traffic from across the world to Sydney’s west... pAGE 2
Atlas Air Worldwide, a leading global provider of outsourced aircraft and aviation operating ser vices, has entered into a definitive agreement to be acquired by an in vestor group led by funds managed by affiliates of Apollo together with investment affiliates of J.F. Lehman & Company and Hill City Capital in an all-cash transaction with an enterprise valuation of approximately $5.2 billion. Under the terms of the agreement, Atlas Air Worldwide shareholders will receive $102.50 per share in cash, representing a 57% premium to the 30-day volume-weighted average trading price per share of Atlas Air Worldwide common stock as of July 29, 2022. Upon completion of the trans action, Atlas Air Worldwide will become a private ly held company and shares of Atlas Air World wide common stock will no longer be listed on the Nasdaq stock exchange. Atlas Air Worldwide will continue operating under the Atlas Air Worldwide name, be led by John Dietrich and the current executive team and maintain its global presence.“Webelieve this transaction will deliver imme diate and certain value to Atlas Air Worldwide shareholders at a substantial premium, and we are pleased to reach this agreement with the Consor tium,” said Duncan McNabb, chairman of the Atlas Air Worldwide Board of Directors. “The Board’s decision to unanimously approve this transaction follows a careful evaluation and thoughtful review of value creation opportunities for shareholders. We believe this transaction is the right next step to maximise value for our shareholders and the best path forward to accelerate the company’s ability to execute its strategic plan and achieve its long-term growth objectives.”
INSIDE IAG Cargo, the cargo division of International Air lines Group, has safely trans ported award-winning racing pigeon Bob back home after he took a 4,000-mile detour... IAG CArGO BrINGS BOB pAGE 3
SINCE the beginning of trade, there has been a need to move goods between producers and those who buy them. Where once it was a camel, river boat or donkey... SHIppErS MAkE pAGE 6
The weekly newspaper for air cargo professionals No. 1,193 15 August 2022 aircargoweek.com Follow Us: :: How to transport cats and dogs to safety during crises Page 8
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“Over our 30-year history, Atlas Air Worldwide has grown to become a global leader in airfreight, delivering high-quality services to our diverse roster of customers around the world,” said John Dietrich, president and CEO of Atlas Air World wide. “Following the closing of the sale to the Con sortium, we will seek to leverage their resources, relationships and industry expertise to build on our strong financial and operational performance. Their investment in our company demonstrates their confidence in our people and our culture as we serve the growing needs of the global supply chain.”“Atlas Air Worldwide is a market leader that con tinues to set higher standards for excellence within the airfreight industry,” said Apollo Partners An toine Munfakh and Jason Scheir and J.F. Lehman & Company partner Alex Harman on behalf of the Consortium. “With the strong market demand and long-term secular tailwinds for global air car go services, Atlas is poised to capitalise on many opportunities for continued growth as a fund portfolio company of Apollo, J.F. Lehman and Hill City. We look forward to leveraging our resources, capital and experience in the sector to support the talented Atlas team, alongside our partners in this exciting next phase.”
Atl AS A I r w O rl D w IDE tO BE ACqu I r ED By IN v ES tO r G r O up f O r $5.2 B I ll ION
Atlas Air Worldwide Holdings recorded sec ond-quarter 2022 net income of $88.3 million, compared with net income of $107.1 million in the second quarter of 2021.
DDC launches DGR transport for university initiative
JETTAINER and B2L are breathing new life into old unit load devices (ULDs). The robust materi als used in ULDs are being turned into fashion able shoulder bags and keychains that are now available for purchase.The bags and keychains are made out of old ULDs that are no longer suitable for aviation, so they have to be taken out of service. These items are manufactured, for instance, from original air cargo container tarpaulins and belts, making them incredibly ro bust.B2L and Jettainer have previously worked as project partners and are ramping up their co operation with this new three-year contract.“We have already upcycled more than 145 tonness of material from aviation since our company was founded 11 years ago. We look forward to expanding our portfolio and giving a second life to Jettainer’s retired ULDs. Along with the bags, we have already come up with lots of other ideas for creative and sustainable items,” Kerstin Rank, B2L’s Managing Director, noted. “The conscientious and careful use of resourc es is an integral element of our corporate phi losophy. So we are really excited that our con tainers can keep travelling around the globe, even once they are retired, thanks to upcy cling,” added Thorsten Riekert, Chief Sales Of ficer at Jettainer.
Jettainer
DRONE Delivery Canada (DDC) has an nounced the successful approval and implementation of dangerous goods transportation for the University of Brit ish Columbia (UBC) Faculty of Medicine’s ‘Remote Communities Drone Transport Initiative’ (DTI). The DTI is currently utilising the bom pany’s drone logistics solution to enable a defined two-way delivery flight route, using the Sparrow drone and its Drone Spot™ takeoff and landing zones, to trans port a variety of cargo for the benefit of the Stellat’en First Nation and the Village of Fraser Lake, located in Central Northern British Columbia, Canada. All operations will be conducted in accor dance with the Transportation of Danger ous Goods (TDG) Directorate approvals, the Canadian Aviation Regulations and Transport Canada special flight opera tions“Thiscertificates.isanother significant achievement by the organisation to be the only Re motely Piloted Aircraft System (“RPAS”) operator that has been issued a TDG Cer tificate. We’re very happy to further sup port our customer, UBC, with the flexibil ity of transporting dangerous goods via our drone solutions. This makes DDC the only RPAS operator in Canada to conduct beyond visual line of sight and dangerous goods operations simultaneously,” says Steve Magirias, CEO of DDC. “We want to thank Transport Canada for their continued support to the industry. We continue to demonstrate our leader ship and innovative approach by offering the flexibility of transporting any types of goods, including medication and lab specimens classified as dangerous goods, for our customers.”
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IAG Cargo, the cargo division of Interna tional Airlines Group, has safely trans ported award-winning racing pigeon Bob back home after he took a 4,000-mile de tour to America. In June, Bob took off from Guernsey, he was due to make the 10-hour trip home to Gateshead; however, somehow the pi geon found himself stranded in Alabama after taking a wrong turn. Luckily for Bob, and his owner Alan Todd, the Monroe County Alabama Animal Shelter took Bob in and were able to identify who the pi geon belonged to via his microchip. Over the last month, IAG Cargo and Brit ish Airways have worked together to re unite Alan and Bob – and have flown them both back home to the UK. Whilst IAG Cargo has been transporting animals ranging from dogs, to lions, to turtles since 1950 – this was the first pet pigeon that the cargo carrier has ever moved. When transporting animals, it is important to check the healthcare re quirements for pre-entry and re-entry. For example, Bob has been required to quar antine for a minimum of 30 days, a fee that has been waived by Heathrow animal Re ception Centre (HARC). Valerie Hadley, products manager at IAG Cargo said: “We are glad to have been able to reunite Bob with his owner Alan. It was an amazing and unique experience to fly out to the US to support Bob’s move back to the UK. I’ve helped fly many animals during my time at IAG Cargo. However participating in a rescue mission for a lost and subsequently found racing pigeon is a first. Although this move wasn’t one we had initially planned for, IAG Cargo’s glob al network meant we had the capacity and routes available to bring Bob safely back home.”Alan Todd, Bob’s owner commented: “I am delighted to be able to have Bob back with me in Gateshead and that wouldn’t have been possible without the help of IAG Cargo. The cargo staff haven been supportive throughout and have guided me through the process on how they will bring Bob back home.” Bob was unavailable for comment but ac cording to owner Alan “He will be treated like royalty. I will give him a nice hot bath and make sure he has his favourite seed in.”With more than 70 years’ experience in transporting live animals, IAG Cargo has a last on, first off aircraft ethos for animal transit, with a dedicated team of trained staff and animal handlers to ensure ade quate care and attention. and B2L give a second life to retired air cargo containers STILL reading a printed copy of Air Cargo Week? Consider switching to the digital subs@azurainternational.comContactversion.andsayyouwouldratherreadtheweeklypublicationonline.
IAG Cargo brings Bob home
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Sydney’s new global gateway taking shape Horizon Aircraft enters into binding agreement with Astro Aerospace for reprivatisation
Horizon Aircraft will continue with rigor ous testing of its 50%-scale prototype and detailed design of a full-scale prototype as it pursues the next phases of the AFWERX HSVTOL challenge that could offer up to $35million in non-dilutive financing over the next three years.
AUSTRALIA’S new airport terminal is coming to life with work continuing on what will be the gateway welcoming traffic from across the world to Sydney’s west in only a few shortWesternyears.
AEROSPACE engineering firm Horizon Air craft has announced that it has entered into a binding agreement with its parent com pany, Astro Aerospace and several of Astro’s keyTheshareholders.dealseesAstro agree to sell 100% of the equity of Horizon to the shareholders in exchange for certain Astro public securities and a fraction of the ownership of the newly privatised Horizon Horizon, which describes itself as an “inno vative leader in hybrid electric Vertical TakeOff and Landing (VTOL) aerial vehicles,” has built a half-scale prototype of its Cavorite X5 eVTOL and expects hover flights to begin at the end of this month. “This mutually beneficial transaction will allow Horizon Aircraft to accelerate devel opment of our highly innovative Cavorite X-series eVTOL aircraft in the private sector with access to more flexible funding mech anisms. Retaining Astro as a key sharehold er and partner moving forward represents natural progression of this programme that has seen tremendous success over this last year,” Brandon Robinson, CEO of Horizon Aircraft,“Horizon’ssaid. progress has been nothing short of outstanding over the last year with several grants, a USAF contract award, and a large-scale prototype ready to fly,” said Astro CEO Bruce Bent, adding that “Astro is grateful to remain a strategic investor and partner as we collectively move towards building a better future.”
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Sydney Airport CEO Simon Hickey said the terminal is now coming to life, with the airport’s future cus tomers helping to shape what will be Australia’s new global gateway.Thiswill be the people’s airport, designed from the ground up for our customers and with our customers,” Hickey said. “This terminal will be Australia’s newest and most exciting airport experience, offering a smooth, seamless connection from Sydney to the world.” “Every element of this airport is being designed to deliv er the most seamless and reliable experience possible for customers.”Hickeysaid thousands of Australians have now signed up to the Western Sydney International Panel, regularly con tributing their opinions on different elements of the airport experience, from their dream travel destinations to the retail and dining choices they want to see in the terminal. A group of WSI Panel members, as well as some of Aus tralia’s leading airlines, were recently invited to an exclusive viewing of the airport terminal plans, projected in real-life scale at LifeSize Plans in Western Sydney, to hear their feed back on different mock-ups and options for the terminal’s detailed layout. Hickey said the terminal is being designed with the cus tomer at its heart – from passengers, airlines, airport staff and air cargo operators. “Western Sydney International (Nancy-Bird Walton) Air port will set a new benchmark for what Australians will expect when they fly and the input from the WSI Panel members is already helping to bring that to life,” Hickey said. WSI is on track to open to international, domestic and air cargo services in late 2026.
Aviator is a family member of Avia Solutions Group, providing ground handling services: from passenger and baggage handling, to de-icing, cargo and full-freight handling, to station services.
AVIATOR Airport Alliance, a full-range provider of aviation services at 15 airports across the Nordics, has supported Sichuan Airlines on their first flight after lifting Covid-19 restrictions. The companies have been in partnership since 2019, with Aviator providing the airline with full ground handling and de-icing services in Helsinki airport. The airline will operate one flight per week from Chengdu Shuangliu International Airport to Helsinki.
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Mikko Asikainen, Safety & Compliance Manager at Aviator, commented: “We are delighted to welcome our partners Sichuan Airlines back in Helsinki. Since the beginning of the global pandemic, China was very strict in imposing restrictions to fight the spread of the virus, thus now Sichuan Airlines are returning to Helsinki airport to continue operations.”
GlobaldebutsKuehne+NagelrestrictionsonFortune’s500list
Aviator supports Sichuan Airlines on their first flight after lifting Covid-19
Dr Joerg Wolle, chairman of Kuehne+Nagel International AG, says: “Kuehne+Nagel has demonstrated an impressive strategic ability to adapt and proactively responded to the frequent changes around us. The group has proven its worth under these particular circumstances and also managed to demonstrate the essential role it plays for the society at large. The debut on the Fortune Global 500 list reflects the exciting recent development of Kuehne+Nagel as a world-leading lo gistics Group.”
FOR the first time, the Kuehne+Nagel group has been includ ed in the Fortune Global 500 list, which is compiled annually by Fortune magazine. With turnover of CHF 36,699 billion in fiscal 2021, Kuehne+Nagel ranks 396th on the list globally and 9th for Switzerland.
The Fortune Global 500 list is the most recognised ranking for the world’s largest stock-listed companies. Fortune Global 500 companies generated turnover totaling USD 37.8 trillion in 2021, more than one-third of the world’s GDP. Kuehne+Nagel is the world’s largest sea and airfreight for warder and holds significant positions in road and contract logistics. The group has built its success on implementing its strategic focus on customers, technology and people, and by surpassing its ambitious financial targets. As a result, Kueh ne+Nagel recorded a remarkably strong performance in the 2021 financial year and continued its successful course in the first half-year of 2022.
“as an advocacy organisation, GSF works on those issues creating friction in supply chains. as most shippers will work through forwarders to manage airfreight shipments some of those frictions are attenuated but generally airfreight works reliably and transparently. o f course, the past two years have been different, and hopefully unrep resentative of the future. i have highlight ed our concerns about digitalisation. the other major concern is cargo safety and the correct declaration of dangerous goods in airfreight, especially electronic goods with lithium batteries. the GSF’s membership comprises national shippers’ associations in over 25 countries.
Shipper S m ak e internatio nal trade
happenSincethebeginning
of trade, there has been a need to move goods between producers and those who buy them. Where once it was a camel, river boat or donkey that took goods to market; in the 21st century these have been overtaken by aircraft, con tainer ships, trains and trucking. the Uk-based Global Shippers’ Forum (GSF) is the global trade body that speaks up for and advises shippers and cargo own ers in the conduct of international trade. members pay an annual membership fee to support the operating costs of the organi sation.anybusiness that arranges for the import and export of their goods by land, sea or air is a shipper, notes the GSF. Shippers or ganise the flow of goods from country of manufacture or production to the country of consumption or use. they contract with shipping lines, airlines and road and railway operators to deliver their goods at pre-de termined times and places so that their customers are able to further use or sell them. Shippers typically include manufac turers, producers, retailers, wholesalers and traders buying and selling goods between countries.Shippers are responsible for the selection and management of logistics providers and ensuring that contracted arrangements are performed to agreed standards. they select providers of transport services to move their goods, usually by competitive ly tendering their expected requirements, and then oversee the performance of the successful bidder against the contracted terms, including costs, reliability and other indicators, such as safety and environmen talaperformance.ccordingtoJames hookham, director, Global Shippers Forum, the forum has been around for two decades, neatly providing a forum for shippers throughout this century. he says: “GSF was established in 2001 as an informal network of national shippers’ associations and was incorporated as a notfor-profit company in the Uk in 2011, with a governance board and financial reporting.
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Jobs displaced While a major part of logistics involves managing the stor age and warehousing of goods, it may not be really a shipper issue, notes Hookham, these facilities are often staffed to the lowest levels thanks to IT. Is this the sort of activity that might de-skill the sector?
Environmental concerns Shippers do not work in a vacuum and are aware that many consumers are raising issues around food or air-miles in all modes of transport but especially aviation. Is this being re flected in their thinking? He says: “Some shippers with strong consumer-facing activ ities do factor in the environmental impact of airfreight on their supply chain emission profiles. This number will rise as more businesses commit to the achievement of corporate ‘Net-zero’ targets for the reduction of greenhouse gases, and third-party emissions (so called Scope 3 emissions) are fac tored into corporate carbon footprints? “Hopefully, this will coincide with a wider availability of Sus tainable Aviation Fuels (SAFs) to allow these emissions to be offset in an accountable and transparent way? Outlook Shippers may not rely on crystal balls but they are right ly concerned with trend spotting and direction of travel of their industries and transport generally. Hookham shares his thoughts on what matters are concerning shippers at the mo ment.Hesays: “It depends where you are in the world but right now for UK and North American shippers, I would list the following front-of-mind issues: 1) How will Peak Season 2022 play out in terms of costs, reliability and capacity, in all modes? 2) Will China-Taiwan-US tensions escalate to the point where trade is affected through closure of shipping lanes and air space? 3) What contingency should I provide in my supply chains for next year as sourcing patterns adapt to changing geopolitical situations and product availability?”
Pandemic lessons Like many across the airfreight supply chain, Hookham is cer tain that GSF’s membership has learned lessons in the last 2.5 years that they can take forward. He says: “The three lessons for us are just how interconnected humanity is by commu nications, environment and trade; that shippers found their voice as the true owners of the supply chain and found out what ‘customer service’ really meant to their suppliers and car riers; if you want things to change in international trade and transport you have to organise and work at it: market distor tions, digital benefits and low ESG scores won’t solve them selves.”Thethreats and opportunities of digitisation in the airfreight supply chain over the next few years are in the sights of the GSF, notes Hookham. He says: “Digitisation offers immense savings and efficien cies to carriers, but the benefits need to be shared with other parties to secure the necessary engagement and investment of time and money to make the switch. As is becoming clear in the ocean freight sector, this will require a change in the traditional business models and roles for the full benefits to be gained, so there will be winners and losers in that process. “Another issue is data ownership and protection. There are too few protections in place for the privacy of commercial ly-sensitive information that could be harvested from ship ping data, including names, addresses, products and vol umes. There needs to be a debate about who ‘owns’ this data and what rights do they have to act on it or sell it on to third parties. What are the liabilities in event of loss or leakage and the obligations on platform operators to report such losses?
“It’s not really a shipper issue, but generally if the job can be done by a robot then is it really a skilled job anymore? Auto mation and AI will displace jobs but the challenge for logistics businesses will be to secure the skilled people to design and operate supply chains that realise these savings. That’s where the skills shortage lays at the moment – supply chain logistics as a business function needs to attract the next generation of logistics people that will keep supply chains functioning de spite the many challenges and developments they encounter from managing world trade in real-time,” he says. “Like many new technologies the pace on drones is being set by the prospective suppliers of assets and services, rather than those that may use them. Intuitively, drones feel like a niche solution, due to the relatively small payloads and the li ability exposures. Ultimately, shippers will evaluate drones as they do any other delivery mode, on the basis of a safety case and on the average cost per delivered item. I have yet to hear of promoters of drones articulating their case in these terms.”
“If you want things to change in international trade and transport you have to organise and work at it: benefitsdistortions,marketdigitalandlowESGscoreswon’tsolvethemselves”
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“The results reflect the surging demand for air cargo capacity as global trade rebounds.”
HSI’s pet relief aid work with Ukrainian refugees showed the lengths that people will go to in order to get their animals to safety,” Katherine Polak, vice president of companion animals and engagement at Humane Society International and member of the IATA Companion Animal Temporary Task Force, said. “So, we are incredibly proud to collaborate with IATA to help ensure refugees are able to take their beloved four-legged family members with them, so that no matter what the conflict or crisis, wherever in the world, pets and their people can stay together,” Polak stated. “Aviation is a critical first responder in crises situations. The humanitarian response to Russia’s invasion of Ukraine was no different. Aviation helped people flee to safety and delivered humanitarian aid, and airlines with operations on the front line of the crisis recognised the importance of helping families stay united with their pets. Airlines on the frontline of the crisis —KLM, LOT Polish Airlines and Bulgaria Air —were leaders among airlines introducing measures to help those taking refuge bring their pets with them,” Brendan Sullivan, IATA’s global head of cargo said. “The European Commission also addressed the issue by advising all EU member states to relax veterinary paperwork requirements for the dogs, cats and other companion animals travelling with refugees. Through our work with HSI we have learned from this experience and the industry will be even better prepared for future crises,” he added. Nearly nine million border crossings from Ukraine have been recorded since the start of the war and more than seven million are estimated to be internally displaced. Many Ukrainian refugees decided not to take their pets with them, or postponed their evacuation from the war zone, as they were afraid their trip to safety might be delayed at the border crossings or at airports. There are no official records on the number of pets who have crossed the borders of Ukraine since the start of the war. However, it has been estimated that more than 30,000 pets have entered Poland alone.
uk airfreight sector vital to safeguarding supply lines
how to transport cats and dogs to safety during crises
Written by aviation expert Dr Sally Dixon, the paper argues aviation will see radical change over the next century from new modes of transport, increased efficiency, and sustainability. Whilst many opportunities exist in the airfreight market, support for the radical changes that are imminent will be imperative if the UK is to play a leading role.”
Animal protection organisation Humane Society International (HSI) has collaborated with the International Air Transport Association (IATA) to publish a list of considerations for govern ments and the air transport supply chain to facilitate the safe passage of pet cats and dogs that are evac uating or taking refuge with their owners in times of crisis. The considerations are based on the IATA Live Animals Regulations publication, including making documentation more flexibile and relaxing government requirements, assessing ground storage facilities, providing clear and consistent information to pet owners and collaborating with pet shipping companies and crate manufacturers. “In times of crisis, the importance of keeping pets and people together can’t be understated. The special bond we have with our much-loved animal companions is highly important, and during conflicts and crises they provide comfort and a sense of stability for those who have been through so much.
Dr Dixon said: “The crisis deriving from the Covid-19 pandemic has stimulated rapid growth in air cargo. Unprecedented growth in e-commerce and the need for rapid deployment of PPE, vaccines, medicines, and medical equipment is driving modernisation and innovation in the sector. However, policy issues, labour and skills shortages must be addressed if the UK is to maintain its global competitiveness.”
THE Chartered Institute of Logistics and Transport (CILT) in the UK has released a briefing paper on airfreight in the UK. Produced by the Institute’s Aviation Policy Group, part of the Public Policies Committee, the paper reviews the current nature of the airfreight sector. It aims to highlight areas where policy makers in government and industry with a particular interest can assist with the progress required to support UK cargoWhilstaviation.passenger air transportation is more widely understood, the paper has been produced to help make the UK airfreight industry more visible and less impenetrable. The UK airfreight sector is vital to the functioning of the UK’s import and export markets, and in safeguarding its supply lines. Resilience in the sector is essential to the national interest. The UK is facing a skills shortage, which is affecting a number of sectors including logistics. Increasing the attractiveness of the sector to young people will be key to maintaining competitiveness, not only for aviation but for the resilience of the UK’s overseas trade, CILT Worldwidewarned.airfreight traffic, despite dipping during the Covid pandemic, has increased beyond 2019 levels. In 2021, over 66 million tonnes of air cargo were transported worldwide. IATA reported that air cargo transportation, measured in cargo tonne kilometres (CTKs), increased by 6.9% in 2021 compared to 2019 (pre-Covid levels) and 18.7% compared to 2020. Since 1990 when IATA began monitoring cargo performance, this increase is second only to the 20.6% gain in 2010.
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