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WORLD AIRPORTS .COM ACW Digital is sponsored by FREIGHTERS.COM
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The weekly newspaper for air cargo professionals No. 1,181
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23 MAY 2022
Emirates Group sees strong recovery ...
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INSIDE
THE REINVENTION OF AVIANCA CARGO
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atin American-based Avianca Cargo is set for a major fleet expansion that will see it enjoy a 70% capacity increase by 2024. The carrier is making a strategic expansion with up to four A330P2F (Passenger to Freighter) being added to the airline’s fleet. Gabriel Oliva, CEO of Avianca Cargo says: “The decision to expand our fleet is a fundamental part of our transformation plan to be the preferred choice for cargo clients in the region. Supported on the fact that cargo is a long-term strategic business for Avianca Group, there are a lot of important steps that we are taking to put Avianca Cargo at the top, and this fleet expansion is crucial within our fleet and network strategy. Key pillars of our strategy are a strong network, a reliable service, and trustful long-term relationships. We are reinventing our company to be a reference in the market, supported by the need of our customers of a stronger Avianca Cargo for the long run. Avianca Cargo is not just here to stay, but to become stronger and the best business partner to customers.”
advantages.” “A simple, but thorough process based on listening to clients’ needs, looking at market trends, and all the opportunities that our region has, allowed us to build a strong business case to strengthen our company, and bring this new capacity into our region. Our clients reinforced it by telling us they needed Avianca Cargo to have a stronger foothold in the region. We are very excited about the journey we are pursuing as a team, and about all the opportunities we will be able to capture along the way with our customers.” “Colombia and Ecuador will always be a strategic priority for us. We are the preferred choice in flower transportation in Latin America, so there is no doubt we will deploy part of this new capacity to keep providing the best service, and network from these markets. Moreover, we will continue strengthening our presence from North America to South America routes where we see many opportunities for clients.”
Fleet and clients
“It is very hard to define in one single phrase everything we are doing. We are reinventing Avianca Cargo to provide our clients the best long-term partner in the region, with a committed world-class team, a clear vision, a strong focus on execution. We’ll always be very close to our customers to listen, understand, and deliver on their needs.” “I am incredibly proud and excited about what we are doing as a team, not only in what we plan to do in the future, but also in what we have accomplished so far since I joined Avianca. We are moving at a very fast pace, and we are making great progress in all forms. One thing is critical and we should never forget, and that is that the journey of Avianca Cargo will always go hand in hand with our customer’s needs, and most importantly by continuously executing on those needs.”
Avianca Cargo’s current operation is carried out with a modern fleet of six A330200Fs. The increase by 2024 will see up to four additional A330s P2F, an increase of +66% in fleet count. “We currently have the youngest, and most efficient fleet based in our region. With an average of less than ten years, this modern fleet bring to our clients even more opportunities. With the A330 freighters, Avianca Cargo seeks to keep contributing to the environment by reducing CO2 and greenhouse gas emissions.” “As Airbus said, this new-generation freighter will provide Avianca Cargo with a highly efficient operation and flexibility based on the proven and technologically advanced A330 family, and it will be the right complement to the existing A330-200F fleet, as Avianca Cargo will benefit from the family commonality
CMA CGM TAKES AIRLINE STAE ...
AIR FRANCE-KLM and freight forwarder CMA CGM have signed a partnership to combine their cargo networks, including their full freighters ... PAGE 2
AEI SIGNS UP EGYPTAIR ...
EGYPTAIR has signed a contract for an AEI B737-800SF freighter conversion with Aeronautical Engineers. .... PAGE 4
SMARTKARGO JOINS CARGO IQ ...
AIR CARGO CLOUD-BASED solutions firm SmartKargo has joined cross-stakeholder organisation Cargo iQ. ... PAGE 5
The future
MENZIES GAINS LAX CONTRACT ...
MENZIES AVIATION has scored a series of wins at Los Angeles International Airport (LAX), its largest station in the Americas. ... PAGE 6
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NEWS CMA CGM takes stake in Air France-KLM and signs joint freighter deal
AIR FRANCE-KLM and freight forwarder CMA CGM have signed a partnership to combine their cargo networks, including their full freighter capacity, and for the forwarder to take a stake in the Franco-Dutch airline. The agreement, initially for ten years and which is subject to regulatory approval and consultation with employee representatives, will initially create a fleet of 10 full-freighter aircraft, along with an additional 12 aircraft on order. The fleet will comprise four CMA CGM Air Cargo freighters, along with CMA CGM’s outstanding orders for eight additional aircraft, and the six current at Air France-KLM Group based at Paris-Charles de Gaulle airport and Amsterdam Airport Schiphol, along with outstanding orders for an additional four aircraft. Two of CMA CGM’s new freighters may be operated by Air France-KLM in the future. The partnership also covers Air France-KLM’s belly capacity, including over 160 long-haul aircraft. Under the deal, CMA CGM Group will become a shareholder of Air France-KLM Group and plans to take up to 9% of Air France-KLM’s ex-post share capital. The investment could be part of the planned capital increase of Air France-KLM, as announced on 17 February. There would also be a CMA CGM board member, subject to approval at the next shareholders’ meeting on 24 May. The partnership will also leverage both partners’ global sales forces, with one customer-facing team. The partners said the move is expected to
generate significant revenue synergies including the joint design of full freighter networks and enhanced products and services mix opportunities and create more integrated and resilient supply chains. CMA CGM acquisitions in the last three years include CEVA Logistics, Ingram Micro’s Commerce & Lifecycle Services (CLS), Colis Privé and logistics company GEFCO. It created its CMA CGM Air Cargo arm, including its full freighter operations, in March 2021. Chairman and CEO of the CMA CGM Group, Rodolphe Saadé said “ the move: “Allows us to significantly accelerate the development of our air division, CMA CGM Air Cargo, which was created just over a year ago, and to position our two companies among the world’s leading players in air freight. This partnership is fully in line with CMA CGM’s strategy and its ambition to become a leader in integrated logistics, for the benefit of its customers. Through our stake in the company, Air FranceKLM will be able to count on us to support its future development.” Air France-KLM Group CEO Benjamin Smith added: “This strategic partnership leverages the complementary skills, expertise and activities of Air France-KLM and CMA CGM. It is a landmark step which will significantly strengthen and expand the Group’s position in the air cargo industry. I am also extremely pleased that this commercial partnership with CMA CGM has resulted in their decision to invest directly in the Air France-KLM Group, demonstrating a strong testimony of their belief in the future success of our Group.”
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Air France and KLM operate greenest-ever flights to Canada
AIR FRANCE and KLM say they have operated the most sustainable flights ever to Canada as part of their Sustainable Flight Challenge. Organised under SkyTeam’s Alliance Umbrella, 17 of the 19 affiliated SkyTeam airlines and their partners joined forces in the collective knowledge-generating exercise. Inspired by Great Air Race – the pioneering long-distance flight from London to Melbourne in 1934 – the Sustainable Flight Challenge is a fresh attempt to show that sustainable air travel is possible. The participating airlines made every effort to reduce their carbon footprint, including 100% paperless handling, lightweight pallets, new electric transporters and used Sustainable Aviation Fuel, which reduces lifecycle CO2 emissions by 75%. Air France kicked off the challenge on 3 May, operating an A350 from Paris Charles de Gaulle Airport to Montréal-Pierre Elliott Trudeau International Airport in Canada. KLM’s flight on 7 May, a Boeing 787-10 Dreamliner, travelled from Amsterdam to Edmonton. Both models are the latest generation of long-haul aircraft, with lighter engines, better
fuel efficiency and lower carbon emissions. KLM partnered with Edmonton International Airport (EIA) for the challenge. EIA is aiming to be the first airport in North America to go beyond net-zero standards and actually remove carbon emissions from the atmosphere. It said its Airport City Sustainability Campus makes it a global leader in environmental innovations. Air France and KLM also encouraged their customers to consider their own environmental impact during their journey, for example by using electric transport to and from the airport and using electronic air waybills (e-AWB) to reduce paper consumption. The Sustainable Flight Challenge was first proposed by KLM employees, who have been pushing for more sustainability. “The great thing about this challenge is that we’re all demonstrating that flying can be more sustainable if we do our utmost,” noted GertJan Roelands, SVP sales and distribution at Air France KLM Martinair Cargo. “By uniting efforts across the sectors that support aviation, we can catalyse, accelerate and transform the industry and meet climate goals.”
Lufthansa Cargo orders ten 777 freighters LUFTHANSA GROUP has ordered ten new freighter aircraft, its biggest-ever cargo investment in its history The order comprises three current-technology Boeing 777F freighters and seven of Boeing’s next-generation all-cargo aircraft, the 777-8F freighter. The first 777F aircraft could be acquired on the used market and is expected to be added to the fleet as early as July 2022. The two new B777Fs will follow later, boosting capacity in the short to medium term. Leases for two existing Boeing 777F freighters will also be extended until 2031. Lufthansa said that the new generation Boeing 777-8Fs would offer a 4,410 nautical mile (8,167km) range and payload of 118 tonnes – 17 % more than the 777F, while fuel consumption and emissions would also be lower.
Delivery of the aircraft is expected between 2027 and 2030. The new planes will be a major boost for Lufthansa Cargo’s current freighter capacity. Its fleet currently consists of 15 Boeing 777Fs, four of them operated by AeroLogic, and two A321 freighters. Lufthansa Cargo chief executive and board chairperson, Dorothea von Boxberg, commented: “We can offer our customers significantly more capacity in the short and long term, and also ensure that we operate the most modern and efficient freighters in their class. “These major investments in Lufthansa Cargo are a sign of confidence in the future development of the airfreight market and in the role that Lufthansa Cargo will continue to play in it.”
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Wingcopter delivery drone gains FAA approval GERMAN drone delivery company Wingcopter has gained a vital Federal Aviation Administration (FAA) approval for its eVTOL delivery drones in the US. It said that the Federal Aviation Administration (FAA) had issued Special Class Airworthiness Criteria for its Wingcopter 198 US unmanned aircraft. The Airworthiness Criteria, under title 14, Code of Federal Regulations (14 CFR), § 21.17(b) must be met to have an aircraft type-certified for regular commercial operations in the US. Wingcopter says that the 198 has been engineered to meet stringent safety standards, leveraging over five years operational experience in settings ranging from the Arctic to the Middle Eastern desert and from remote islands in the South Pacific to San Diego Bay in the US. Co-founder and CEO, Tom Plümmer,
said: “We are proud to be among the first delivery drone companies worldwide to ever get their Airworthiness Criteria approved by the FAA. “This is a very important milestone for us, not only in our type certification process in the US, but also for our international expansion efforts and for achieving our vision of building highways in the sky.” Once type-certified, Wingcopter will be able to fly conventional routes through airspace and over populated areas, ultimately providing the basis for scaling commercial drone delivery operations across the US. US certification is also expected to also have a positive impact on Wingcopter’s further certification efforts such as with ANAC in Brazil or JCAB in Japan.
More airfreight protection as EU security system enters second phase THE European security system ICS for risk assessment/crisis prevention will come into force for air freight shipments from third countries into the EU in March 2023. The ICS procedure was introduced following the 9/11 terrorist attacks for the declaration of goods prior to entry into the EU. In its second phase, the EU is centralising declarations by carriers with a cargo advance information system from March 2023 for airlines and from March 2024 for seafreight. Director of customs and forwarding applications at Hamburg-based software provider Dakosy, Simon Lembke, explained: “The next-stage procedure ICS2 will bring improvements for the participants, especially with regard to competition protection.” He said: “In the future, declarations will be sent directly to the new EU system, the Shared Trader Interface (STI), and must be provided before the goods are loaded. Previously the entry declaration had to be submitted electronically no later than four hours before arrival at the customs authority where the goods first reached the borders of the EU.” Another important change, he adds, is that shipping companies or airlines need only submit basic information to the EU cargo advance information system. The additional information would be reported directly to the ICS system by freight forwarders or logistics providers, for example. This ‘multiple filing’ will provide competitive protection for operators. “Freight forwarders and logistics providers no longer need to disclose the names of their customers and their related critical data to the shipping companies or airlines in the course of the procedure,” Lembke argues. Dakosy recommends that participants in the ICS process prepare for the changeover in good time and ensure that sufficiently precise data can be provided. A standardised format called the Entry Summary Declaration (ENS) has been defined for ICS2, which does not permit any deviations. The required accuracy of the data is also becoming stricter, for example in the case of the HS code. Previously, either the goods description or at least four digits of the HS code could be provided for the entry summary declaration; in future, all six digits of the HS code must be transmitted. “For our customers, which include many major airlines and shipping companies, we already work with this format. So for them, by and large, everything remains as it is, and we will take care of the new reporting path and, if necessary, adapt interfaces. “However, we recommend checking well in advance to find out the extent to which business processes need to be updated and employees need to be trained,” he adds.
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AEI to provide first B737-800SF conversion for Egyptair EGYPTAIR has signed a contract for an AEI B737800SF freighter conversion with Aeronautical Engineers. It will be the first AEI B737-800SF converted freighter to be owned and operated by the carrier. Egyptair currently owns three Airbus A330-200 freighters, with a capacity of 60 tons each. Its cargo operations have grown during the COVID19 period and it has started new routes to move medical items and produce. Conversion work is scheduled to start in October at AEI’s Miami conversion centre. Chairman and CEO of Egyptair Holding Company, Captain Amr Abu El-Enein, said: “This order is part of Egyptair’s cargo and passenger fleet modernisation plan. We will continue to increase the size of our fleet and open new freighter markets in the coming years to meet the growing needs of the local market in terms of exporting goods abroad.”
AEI is currently the only conversion company to have ETOPS 180 approval for the 737-800 freighter conversion. It can convert all 737-800 line number aircraft including those with Split Scimitar winglets. The AEI converted B737-800SF freighter offers a main deck payload of up to 52,700lbs. (23,904kg) and incorporates eleven full height 88” x 125” container positions, plus an additional position for an AEP/AEH. The conversion also incorporates new floor beams aft of the wing box, a large 86” x 137” main cargo door with a single vent door system. The design allows containers to be loaded into the aircraft a full 16.5” aft of the forward door jamb, giving ground operators enough room and minimising potential door and aircraft strikes. The AEI B737-800SF also includes a flexible Ancra Cargo Loading System, a rigid 9g barrier, five supernumerary seats as standard, a galley, and full lavatory.
Etihad Cargo appoints Tim Isik commercial VP
ETIHAD CARGO, the cargo and logistics arm of Etihad Aviation Group, has appointed Tim Isik as commercial vice president. Based at the carrier’s Abu Dhabi headquarters, he will oversee the carrier’s global commercial operations. Isik joins Etihad Cargo from American Airlines, where he gained over a decade of experience working within the aviation and air cargo sectors. In his new role with Etihad Cargo, Isik will oversee the development and deployment of the carrier’s sales strategy and be responsible for further growing Etihad Cargo’s strategic relationships, executing sales and marketing plans and driving team performance. Isik will lead Etihad Cargo’s commercial operations globally, supported by Latha Narayan, Etihad Cargo’s director – commercial Asia Pacific, Australasia and Indian Subcontinent, and
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Mark Faulkner, director – cargo commercial west. Isik will report to Martin Drew, senior vice president – sales and cargo. “Etihad Cargo is delighted to have Tim on the team. I am confident his knowledge and expertise will contribute to Etihad Cargo’s continued growth, enabling the carrier to further strengthen its position as the air cargo partner of choice,” said Drew. Isik said: “It’s an exciting time to be joining Etihad Cargo, following the carrier achieving a milestone year in 2021. I look forward to working closely with Martin and the rest of the team as Etihad Cargo continues its journey of growth through innovation and successfully adapting to the needs of customers and the dynamic challenges of the air cargo market.”
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ily a D The paper s w Air e N A C A I m T for o Foru Carg 2022
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SmartKargo joins the Cargo iQ organisation AIR CARGO CLOUD-BASED solutions firm SmartKargo has joined cross-stakeholder organisation Cargo iQ. SmartKargo offers a suite of scalable applications including Enterprise Resource Planning (ERP), a booking portal, and its end-to-end e-commerce shipping solution for global airlines. It joins Cargo iQ as part of a long-term objective to bring key quality enhancements to the air cargo industry. Cargo iQ, which celebrates its 25th anniversary this year, is an independent, cross-stakeholder organisation with more than 60 members worldwide, including airlines, forwarders and ground handling agents. SmartKargo CEO, Milind Tavshikar, said: “Establishing consistent quality management standards requires transparency and collaboration among supply chain partners who bring a variety of perspectives to the conversation. “We joined Cargo iQ to bring our unique experience to this important interest group and look forward to contributing as well as being inspired by our industry colleagues. “Together, we can ensure that standards of quality management evolve steadily in this industry that is so important to the world.”
Following exponential growth in global e-commerce sales, SmartKargo saw an opportunity for airlines to adopt end-to-end integrated logistics for e-commerce parcel shipments, from online transaction to delivery to the customer’s door. The software provider launched a customisable e-commerce solution that can be bolted on to existing air cargo management systems, enabling airlines to expand their markets and earn higher rates versus traditional cargo. Airlines in Brazil, Canada, Mexico, and Norway are among the early adopters and have significantly grown their cargo revenues by shipping e-commerce products on passenger aircraft. Cargo iQ executive director, Lothar Moehle, added: “The SmartKargo team will bring a valuable perspective and important sector expertise to Cargo iQ’s ever-growing taskforce. “Diversity in specialisms among our members is key to ensuring our work brings benefits to the quality of the entire logistics chain. “In joining the Cargo iQ community, SmartKargo has shown its commitment to our shared vision to improve standardisation in the air cargo supply chain, in particular by assisting our industry and our members with their digitalisation strategies and implementations.”
Quantum-South unveils air cargo optimisation app
FREIGHT software firm Quantum-South has released an air cargo optimisation application running to optimise loading of containers and ULDs on full freighter and passenger aircraft. The optimisation takes account of complex factors including revenue, priority, centre of gravity, shear force and volume, going beyond industry standard weight and balance restrictions, it says. The solution aims to help companies improve revenue and reduce costs based on customisable parameters. It has been tested on DWave quantum computers, showing very short execution times, says the company. The Quantum-South team has been working on container load optimisation for air cargo since the Airbus Quantum Computing Challenge in 2019 where it was one of the global finalists. Airbus has identified load optimisation as one of the most challenging in the aerospace industry. Quantum-South has focused on using algorithms to address the problem, using quantum theory to run complex calculations in computers that can explore more solutions than traditional computing models. Co-founder of QuantumSouth, Dr Rafael Sotelo, said the objective was to identify an optimal selection that maximises key parameters like revenue, priority and volume while respecting restrictions, such as maximum weight and length, centre of gravity, shear, and the shape of the fuselage. Optimising the location of the centre of mass has a significant impact on fuel consumption and environmental protection, he pointed out. “Given the enormous increase in the number of possible combinations as the number of packages increases, the problem poses a serious challenge to be solved by classical means” explained Dr Sotelo. Quantum-South uses a technology called “quantum annealing” that attempts to determine an optimal solution from many potential ones.
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Menzies Aviation gains new Los Angeles business MENZIES AVIATION has scored a series of wins at Los Angeles International Airport (LAX), its largest station in the Americas. It has secured a new contract with Level, IAG’s low-cost airline, to provide full ground services at LAX. Menzies now provides complete coverage to the IAG Group of airlines at LAX, including British Airways, Iberia, Aer Lingus and, now, Level. Menzies has also been awarded a contract with Mexican cargo carrier MAS to support its daily freighter flights at LAX. It has also extended its ramp handling contract with LATAM Group and added full passenger handling to its services for its twice daily flights. EVP for Americas at Menzies Aviation, John Redmond, said: “We are proud to continue to expand our business at LAX, the largest airport on the West Coast. These new contracts demonstrate the trust and confidence airlines have in the ability of the Menzies team to provide safe, secure and consistent quality service. We look forward to providing our expertise to MAS and Level, as well as deepening our relationship with the LATAM Group.”
LATAM Cargo has a memorable Mother’s Day
LATAM Cargo says it has had a “historical” Mother’s Day season this year. During the 2022 season, the company doubled its regular capacity, transporting over 16,400 tonnes of flowers. Mother’s Day is the second peak in flower exports from Colombia and Ecuador, after Valentine’s Day LATAM Cargo’s international commercial vice president for South America, Claudio Torres, said: “We appreciate the trust our customers have placed in us by choosing us at times that are crucial for their businesses. The collaboration and planning, our robust network and our increased capacity, coupled with a service and execution of excellence, have been instrumental in consolidating our leadership in the carriage of flowers from South America.” North America and Europe are the main consumption centres for flowers. LATAM Cargo doubled its frequencies to the two regions, to 98 flights a week. For Colombia, it offered 85% more capacity to Miami, the transit destination from where flowers are distributed across North America. In Ecuador, capacity was increased by 130% to transport flowers to Miami and Amsterdam. “Our commitment to our flower grower partners is stronger than ever,” Torres continued. “Despite these times of uncertainty, we have managed to adhere to the planned schedules for our cargo aircraft. This is especially important because it gives our partners the assurance needed to project their businesses.” In early 2021, LATAM Cargo announced its fleet expansion programme for 2021-2023, which will eventually increase the number of freighter aircraft to 21. That same year the company took delivery of the first aircraft, followed by a second in March this year. In total, the company has 13 freighters, with a 14th soon to join the fleet.
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Emirates Group sees strong recovery THE Emirates Group said it had seen strong recovery across its businesses in its 2021-22 Annual report. Its dnata handling arm returned to profitability, with significant revenue improvements there and at the Emirates airline as they rebuilt operations cut back or curtailed by the Covid-19 pandemic. For the financial year ended 31 March 2022, Emirates Group posted a loss of AED 3.8 billion
ma cool chain infrastructure in Dubai and by March 2022, it had transported a billion doses of Covid-19 vaccines. Emirates announced a $1 billion investment in two new Boeing 777 freighters and conversion of four existing 777-300ER aircraft. With steady and strong air freight demand throughout the year, Emirates’ cargo division reported a new record revenue of AED 21.7 bil-
NEWS ECS Group goes heart and Seoul to Korea GSSA ECS Group says it has secured a strategic foothold in the fast-growing Asian market with the launch of Globe Air Cargo (GAC) Korea.
“Our ECS Group pledge is to offer the strongest Asian network with unlimited connections, and yet, until recently, Korea was missing from our extensive network. We look
The branch in Seoul is the group’s first physical representation in Korea and is seen as a key milestone in its network expansion plans in the Far East. ECS sees Korea, China and Japan as having the greatest potential in the region. Adrien Thominet, executive chairman, states: “Over the past few years, we have strongly focused on intensifying our presence in the Far East, both north and south; a highly dynamic region with a great deal of potential, and one that our key business partners such as DHL are also driving.
forward to seeing GAC Korea grow its business in this well-yielding and promising market.” CEO of Globe Air Cargo Korea, HE Shin, added: “GAC Korea is ideally located with offices both in the city and at the airport, and with our experienced team, we offer bespoke GSA services in particular to local airlines. “We see that the Korean market is keen to learn more about our ‘think local, act global’ business philosophy, which offers local business access to the global ECS Group network. There are many more GSA opportunities to be explored here.”
MNG Turkey’s Airlines hosts cancer charity Hope Cafe at head office ($1.0 billion) compared with an AED 22.1 billion ($6.0 billion) loss for last year. Group revenue was AED 66.2 billion ($18.1 billion), an increase of 86% over last year’s results. Group cash balance was AED 25.8 billion ($7.0 billion), up 30% from last year mainly due to strong demand across its core business divisions and markets, triggered by the easing of pandemic restrictions. In the second pandemic year, Emirates SkyCargo “once again put in a stellar performance,” said the report, adding: “SkyCargo contributed to 40% of the airline’s total transport revenue through its ability to respond rapidly to changing demand patterns in a distorted global marketplace.” Rebuilding its network and capacity, the cargo division “intelligently deployed its freighter fleet and belly-hold capacity, to meet customer needs”. By 30 June 2021, it had restored services to over 90% of its pre-pandemic network. During the year, SkyCargo continued to play an important role in getting Covid-19 vaccines and other medical supplies to communities around the world, and keeping trade lanes open for food supplies, e-commerce and other essential goods. In June 2021, it invested to scale up its phar-
lion ($5.9 billion), an increase of 27% over last year. Yield per freight tonne kilometre (FTKM) decreased by 3% as more cargo capacity returned to the global market, but generally remained at high levels compared to the pandemic marketplace due to steady and strong demand. Tonnage carried increased by 14% to reach 2.1 million tonnes, due to the growth in available bellyhold capacity for the entire year with the reinstatement of more passenger services. At the end of 2021-22, Emirates’ SkyCargo’s total freighter fleet stood at ten Boeing 777Fs. With growing flight and travel activity across the world, dnata’s total revenue increased by 54% to AED 8.6 billion ($2.3 billion), with international business accounting for 62% of the total. During the year, it expanded existing cargo facilities in Sydney, Australia, opened a new cargo centre at London Heathrow airport and announced a fully automated centre to be built at dnata Cargo City at Amsterdam Schiphol Airport. It also introduced the OneCargo system to digitise and automate business and operational functions at its Iraq operations, with plans to roll out the system across its global cargo network.
PRIVATE Turkish carrier MNG Airlines recently hosted a mobile cafe to raise funds for the Hope Foundation for Children with Cancer (KAÇUV). KAÇUV was established in 2000 to ensure continuity of treatment of children who are at risk due to financial problems. It started the Hope Cafe project in 2017 to provide additional income to the families of children receiving cancer treatment. Hope Café offers employment opportunities to needy families who have children with cancer. The mobile café tours Istanbul selling mothers’ homemade products and
hot and cold drinks. MNG Airlines hosted Hope Cafe in the parking area at its head office last week. General manager, Ali Sedat Özkazanc, said: “As MNG Airlines, we are a team with a very strong sense of solidarity. Having Hope Cafe with us was an event that brought our team together while creating resources for KAÇUV. “We will continue our co-operation with KAÇUV to ensure the sustainability of treatment. We want to host Hope Cafe in our facility at Istanbul Airport as soon as possible and increase our donations.”
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VIEW FROM THE MAINDECK ACW talks to Pierre Van Der Stichele, vice president, global freight at charter broker, Air Partner Has the cargo charter market increased during the pandemic? Undoubtedly, the pandemic led to some of Air Partner’s busiest years to date, but also some of our strongest. It was the most challenging environment this area of our business has ever seen, due to the high levels of demand, urgent nature of the projects, and additional logistical requirements to ensure the safety of the crews. According to the International Air Transport Association (IATA), 2020 and 2021 were some of the strongest years for the air cargo market since monitoring began in 1990 – in 2021, demand increased by 6.9%, compared to 2019 (pre-Coved levels) and 18.7% compared to 2020 .
What has been the driving factors in its growth? With supply chain disruption hampering operations across the globe, the most obvious trend in charter has been exceptionally high demand. Supply chain disruptions, a reduction in scheduled air services due to the pandemic, Brexit and higher numbers of online deliveries than ever before were all key factors driving high demand for airfreight throughout the year. We also saw demand from businesses from a much wider range of sectors for air freight than before, such as retailers, automotive, oil and gas and the energy industries, due to a reduction in availability of other transport routes such as scheduled air services and sea freight due to Covid-19. What have been the major challenges/hurdles? Throughout the pandemic, our charter and freight division supported Covid-19-related services, arranging transportation for PPE, test kits and pharmaceutical items at the start of the pandemic, before transitioning to supplies to support the vaccine rollout. This required a huge effort across the freight division, and close collaboration with our 7,000-strong global network of aircraft to deliver what we could. Are there any particular regions or niches that have been strong? One significant area of growth for Air Partner are on-board courier services (OBC), allowing clients to fly items urgently from one point to another, even delivering by hand in some cases. Rapidity is the name of the game, and we pride ourselves on being able to quote a customer with a comprehensive logistics plan within 15-20 minutes. The most common routes we have seen demand for this are between international hubs in Asia and Europe. We also see strong demand for services between US states or within Europe. Each job comes with an option of airport-to-airport pickup and delivery or door-to-door service. There are routes that are harder to navigate, but none that are impossible. We see requests from a wide range of industries. Recently, we completed several deliveries of critical spare parts to offshore oil and gas platforms, and we often see fashion goods and prototype clothing travelling from a designer’s house to a fashion show, as well as small spare parts for aircrafts for urgent repairs. The list is endless, but all deliveries are time-critical, as hours or even minutes of delays are a huge cost for our clients. What are the challenges that Air Partner and charters face compared to other operators? What challenges lie ahead? The outlook is changing daily as the situation in Ukraine continues. Undoubtedly, this is placing significant pressure on global supply chains, which is reflected in the increase in oil, energy and fuel prices globally, which in turn is driving up the prices of air freight services, which was already increasing given the ongoing disruption as we started to emerge from the pandemic. The conflict in Ukraine has also led to the closure of airspace across many routes, which is adding an average of delays up to three hours, as many flights have to run through the Middle East. We also saw the recent sanctions on all Russian carriers, including Utair, S7, Erofey, Aviastar and many more. The impact is significant because freighter capacity has already been heavily reduced by the pandemic and remains in high demand; the disappearance of additional capacity due to sanctions only exacerbates the challenges facing the air cargo industry. This continued lack of available freight capacity undoubtedly means that businesses such as Air Partner will have to be creative to manage the high levels of demand as best as they can, and provide innovative solutions for customers. For example, Air Partner can source smaller aircraft or combine activities with preighters (passenger aircraft with seats removed) where appropriate. Recent data from IATA also found that European carriers saw a 7% increase in cargo volumes and easing capacity, which was up 18.8% in January 2022, though this is still 8.1% lower than preCovid. It highlights that there is some way to go to resolve supply chain challenges.
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