ACW 28th November 16

The weekly newspaper for air cargo professionals Volume: 19

Issue: 47 28 November 2016

ABX Air pilots return to work after going on strike

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triking ABX Air pilots went back to work on Wednesday (23 November) night in the US following a ruling by the US District Court.

Around 250 pilots had gone on strike and around 75 flights were cancelled on 22 November as a result of the industrial action, which affected Amazon and DHL Express, as ABX Air operates flights for both.

The pilots picketed outside ABX Air’s headquarters in Wilmington and outside DHL’s North American hub at Cincinnati/Northern Kentucky International Airport on 22 November.

But the Air Transport Services Group (ATSG) pilots were ordered by Judge Timothy Black on 23 November that they must resolve differences with ABX Air through arbitration and other provisions of their labour agreement.

The judge determined disagreements with the pilots and their union, Airline Professionals Association of the International Brotherhood, Teamsters Local 1224, over work scheduling issues constitutes a “minor dispute” and must be resolved under terms of the labour agreement between ABX Air and the union.

Earlier this year, pilots at ABX Air and four other cargo carriers that fly for DHL voted with

BREXIT AND LHR DOMINATE AOA CONFERENCE GLOBAL COVERAGE DRIVES ACS AS IT TARGETS $1BN 99 per cent support to strike if it was necessary.

ABX Air president, John Starkovich said on 24 November: “I am pleased that the court continues to recognise the value to all parties from continuing to work out remaining differences in negotiations and through arbitration.”

“We intend to resume those discussions at the appropriate time and place in order to find solutions that are in the best interests of our customers, shareholders and employees,” he added.

The union says pilots went on strike because ABX Air, owned by ATSG, violated its contract by asking them to work emergency hours over the last two years because of a staffing shortage, then failed to grant them compensatory time off or allow pilots to take earned vacations.

Following the decision by the US District

Court, there were continued calls by the union for ABX Air to “address the staffing crisis” that led to the strike.

Teamsters Local 1224 executive council chairman, Rick Ziebarth said: “We do not agree with the Judge’s decision to keep us from striking, as we believe the company’s actions represent a clear violation of the status quo as outlined by Railway Labor Act.” Teamsters Local 1224 president, Dan Wells added: “ABX needs to honour our contract and restore the status quo, and then work with us to ensure there are enough pilots to get the job done.

“Pilots should not have to go on strike to get back provisions of a contract that was taken away from them just to ensure they have adequate rest and time with their families.”

AN-124 whenever and wherever they have needed them.”

Volga-Dnepr vice president for development and special projects, Dennis Gliznoutsa said the company has the advantage of the experience it gained from the end of its An-124 JV with HeavyLift Cargo Airlines in 2001, and the

subsequent growth of outsize and heavyweight cargo business in the international market. “We emerged from that JV stronger and now, 15 years later, we will do so again,” he adds.

Antonov Airlines’ UK team is to take over sales and operations of its aircraft following the news that Ruslan International will cease operations.

Dreamlifts Ltd (trading as Antonov Airlines) is managed by experts from the outsize and heavyweight cargo industry and Antonov Company said it expects a seamless transition for customers and a continuation of its service.

Antonov Company president, Oleksandr Kotsiuba explained: “Antonov Airlines’ activities are supported by Antonov Company’s in-house design and development capabilities providing unrivalled expertise for the most challenging logistic projects.”

Volga and Antonov end Ruslan International joint venture

Volga-Dnepr Airlines and Antonov Airlines are to end their Antonov AN-124-100 joint venture (JV) - Ruslan International - from 31 December 2016.

The JV was founded in 2006 to jointly market the combined AN-124-100 fleets with the aim of improving availability of the aircraft’s unique ramp loading capability.

Volga-Dnepr Group said the business collaboration with Antonov will continue for the technical aspects of airworthiness and flight safety support of the AN-124-100 fleet.

Volga-Dnepr Group vice president strategic management and charter cargo operations, Tatyana Arslanova said: “Our joint venture with Antonov Airlines has enjoyed 10 fruitful years and during this time we have been able to ensure our global customers have benefited from the unique operating capabilities of the

LOGITRANS KEEPS GROWING DESPITE TURKEY TENSION

DHL TO SPEND $185 MILLION IN THE AMERICAS

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McAllister to take over from Conner at Boeing

KEVIN McAllister (above) is to take over as Boeing Commercial Airplanes president and chief executive officer (CEO), succeeding Ray Conner.

Conner will continue as Boeing vice chairman through 2017, working closely with McAllister on the hand-off of customer, supplier, and community and government relationships. The 61-year old has been president and CEO of Commercial Airplanes since 2012 and has worked at the company for 39 years.

Boeing chairman, president and CEO, Dennis Muilenburg said of McAllister: “He’s a passionate leader with decades of commercial aviation knowledge and experience. He knows Boeing well, shares our values and commitment to our people, and has the results-oriented operational and business experience needed to lead this vital...growing part of our company.”

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NEWSWEEK

Middle East no longer driving growth

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irfreight volumes surged by 5.9 per cent in September, according to the Airports Council International (ACI) and for once the Middle East was not the main driver of growth.

ACI says international freight grew by seven per cent compared to domestic growth of 3.3 per cent, which has helped airfreight volumes inch up by 1.8 per cent since the beginning of the year.

The association explains the strong growth in September was mainly due to a strengthening of the international freight market and the surge in demand for electronic devices coming out of Asia.

All regions observed gains in airfreight traffic for the month of September except Africa that recorded a loss of 4.2 per cent.

Europe had the highest growth (+7.6 per cent) followed by Asia-Pacific and North America with robust increases of 6.7 per cent and 5.5 per cent respectively. Latin America-Caribbean and the Middle East experienced 3.1 per cent growth in traffic.

ACI notes out of the top 20 airfreight hubs, 15 hubs reported growth of over five per cent and two saw slight losses, adding: “Because airfreight is highly concentrated, with the top 20 occu-

pying almost half of global volumes, the strong growth among the major airports increased the global growth figure. While the increase in volumes is cause for optimism, it is still too early to identify a sustained recovery.”

In Asia-Pacific, India, Korea and China were the main contributors to September’s growth, coinciding with the release and replacement of mobile devices such as the Samsung Galaxy Note 7 and iPhone 7.

In Europe, all major freight hubs showed an increase in activity.

Germany, France and the UK saw 6.6 per cent, 5.1 per cent and 6.7 per cent growth in September.

Yusen Benelux gains CEIV at Schiphol

YUSEN LOGISTICS BENELUX has received the honour of becoming the first freight forwarder at Amsterdam Airport Schiphol to receive IATA CEIV Pharma certification.

The company says it invested in staff and equipment to take its operations beyond Good Distribution Practices to International Air Transport Association Center of Excellence for Independent Validators in Pharmaceutical Logistics.

Yusen Logistics Benelux deputy general manager air freight forwarding, Etienne Vesseur says: “We are very excited as one of the first logistics companies in the Netherlands to be able to offer our customers this premium airfreight service.”

Amsterdam Airport Schiphol head of cargo, Jonas van Stekelenburg adds: “This certification represents IATA confirmation of Yusen Logistics’ proven capability to handle, store and transport medicines and other pharmaceutical products with extreme care. A well-deserved achievement.”

AVIC to start cargo carrier AVIATION INDUSTRY CORP. OF CHINA (AVIC) is set to launch a cargo carrier as it looks to gain sales of the MA600 turboprop freighter made by its subsidiary Xi’an, according to reports in China.

The new cargo venture has reportedly been granted an air operator certificate from the Civil Aviation Administration of China (CAAC). The airline is set to be based in the Chinese city of Guangzhou.

AVIC subsidiary Joy Air holds a 45 per cent stake while Guangzhou Dongling Industrial Investment has 35 per cent and Beijing Fuda Capital Management 20 per cent.

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Reports claim AVIC wants to launch the cargo carrier to promote sales of the Xi’an MA600 freighter, which made its first flight in 2012, but has yet to gain any orders.

CEIV gained by AirBridgeCargo

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irBridgeCargo Airlines (ABC) has become the first Russian airline to gain International Air Transport Association (IATA) Center of Excellence for Independent Validators (CEIV) Pharma certification at its Moscow hub.

The certificate was presented to ABC by IATA’s manager for aviation solutions at its Russia branch office, Andrey Bystrov.

ABC passed the audit within four months and gave special pharma training to 200 employees.

The carrier is the seventh airline in the world to gain the certificate, and says the CEIV Pharma certification is an important milestone for the Volga-Dnepr Group and Sheremetyevo International Airport, raising standards

for pharma shipments in Russia to a new level.

General director, Sergey Lazarev says: “We are confident that this confirmation of our competency and expertise will allow us to increase our volumes of pharma products across our international route network, including imports and exports to/from Russia. It will also help us to attract additional transit cargo via Sheremetyevo airport on the Europe-Asia trade lane.”

Volga-Dnepr Group senior vice president for sales & marketing, Robert van de Weg adds: “We have demonstrated that we have the required processes in place to meet this IATA global standard and to provide the level of quality and consistency that is so paramount to every customer shipping healthcare products.”

Sheremetyevo chief executive officer, Mikhail Vasilenko says ABC’s certification will be supported by large-scale development at the airport. A new 47,000 square metre automated cargo terminal will be commissioned in 2017.

The $85 million terminal will be able to handle up to 380,000 tonnes a year, with potential to expand to one million. Vasilenko says: “We are set on building the largest cargo hub in Europe to meet the growing market needs and create favourable conditions for long-term success of our partner airlines.”

NEWS WEEK Cathay 747-8F takes off at Brisbane

THE inaugural Cathay Pacific Cargo Boeing 747-8 Freighter has taken off from Brisbane West Wellcamp Airport.

The only scheduled cargo service into southern Queensland, landed in Hong Kong on 23 November loaded with exports including premium loin cuts from Oakey Beef Exports on the Darling Downs.

This weekly freighter will also be load-

ed with Queensland mangoes and chilled meat, which will be transported onto onward flights to markets across the globe.

The 747-8F has a cargo capacity of around 135,000 tonnes carrying 34 pallets on the main deck and 12 on the lower deck.

Cathay Pacific Southwest Pacific general manager, Nelson Chin says: “We have had an encouraging response from exporters and shippers in the southern half of Queensland as well as northern New South Wales.

“We had a good mix of fresh produce to Hong Kong and Asia and oversize cargo to the China, Vietnam, Taiwan and the UK on the first flight.”

Menzies Aviation will provide ground handling and cargo support for the freighter at Brisbane West Wellcamp.

Strong month at Brussels Airport

BRUSSELS Airport saw its cargo volumes rise year-on-year (YOY) by 6.5 per cent in October to 46,603 tonnes.

Growth was driven by the full freighter segment which surged YOY by 28.8 per cent to 17,119 tonnes. Integrator services

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saw a slight YOY decrease of 2.4 per cent to 17,878 tonnes.

Belly cargo fell YOY by 4.5 per cent to 11,606 tonnes, largely due to the departure of Jet Airways to Schiphol in March this year.

In the first 10 months of the year the gateway has handled 399,554 tonnes, a 2.3 per cent YOY fall on the 409,164 tonnes in the same period last year. Freighter traffic is up 2.2 per cent with integrator traffic up 0.7 per cent and all-cargo carriers up 4.3 per cent while belly traffic is down 13.5 per cent.

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NEWSWEEK

Logitrans Istanbul keeps growing despite tense regional situation

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he Logitrans Istanbul trade show is performing well having celebrated its 10th edition, Messe Muenchen deputy managing director, Gerhard Gerritzen (pictured) tells Air Cargo Week (ACW).

He says the show is growing, despite describing the economic and political situation in the region as “tense”. Speaking to ACW on 17 November following the first day of the event, he said he was satisfied with the visitor numbers and how the quality of visitors has improved since the first show under the EKO MMI joint venture.

He tells ACW: “Six years ago when we ran the first edition of Logitrans with EKO MMI you saw a lot of truck drivers with their families and now we have developed this fair into a B2B event without people of the public.”

In the early years of the show, the only air cargo company exhibiting had been Turkish Cargo, but says air cargo has been developing in a good way, especially in 2016.

Gerritzen says: “We are glad that we could increase the number of exhibitors and the square metres. It was not easy to convince companies to choose Istanbul as a platform for their business but

Istanbul is a big hub in all kinds of transportation.”

Istanbul is well positioned for delegates to visit, with no visa requirements for people from neighbouring countries, and the airports having extensive transport links.

MMI also organises a number of other shows around the world

including Air Cargo Europe (ACE) in Munich and Air Cargo China in Shanghai. Gerritzen says hall B1 at ACE is sold out seven months before the show, and all the major players from the industry will be attending.

MMI is also working on new shows such as in Mumbai. Gerritzen explains: “A local organiser is running a conference combined with a small exhibition. This is a small event but a major event in India and we decided to collaborate with this organiser and Messe Muenchen will be responsible for the international market.”

He says negotiations are progressing well and India is a future market, and though India is developing slowly it is developing, and it is an essential market for international companies.

MMI is also organising a show in Atlanta, Transportation Logistics America, which Gerritzen describes as the “new baby” in the Transport Logistic family. It is also a joint venture show, in partnership with London-based ITE. Gerritzen says: “We are certain that Atlanta is the best location for a Transport Logistic show because Atlanta is a big hub for air cargo and there are a lot of important industries in the region and our show will run in parallel with the MODEX show.”

Above average e-AWB rates in Turkey

THE electronic air waybill (e-AWB) penetration rate in Turkey has risen to 59 per cent, above the industry average of about 39 per cent, but there is still more to do to modernise processes, delegates at Logitrans Istanbul heard.

During the session ‘Electronic Air Waybill and e-freight systems’ on 17 November, Lufthansa Cargo general manager Turkey, Hasan Hatipoglu; Emirates Airline cargo manager Turkey, Feza Erdogan; UTIKAD board member, Arif Badur; International Air Transport Association campaign manager for Turkey, Azerbaijan and Turkmenistan, Okan Ogur; and Turkey Cargo vice president operations, Serdar Demir discussed the benefits of e-freight and what more needs to be done. The session was moderated by Qatar Airways cargo manager for Turkey, Serkan Demirkan and organised by Air Cargo Committee Turkey.

Ogur says shipments can easily have 18 documents and nine stakeholders, and the processes are not well connected, and that e-freight is the solution to the problem.

He says: “It is very complex with old fash-

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ion software used and the data quality is low.

Lots of the documents are not digitised yet.

The strategy set for the industry is to modernise, processes have to be modernised.”

He admits implementing e-freight is not as easy as it looks but is essential, and e-AWBs are the start.

Ogur told delegates that e-AWBs reduced paper usage, improve efficiency and quality of data all while reducing costs for airlines and freight forwarders.

Demir spoke about why Turkish Cargo sees e-AWB and e-freight as so important.

He says: “We are trying achieve stable operations and improve the data quality, that is the main goal.”

He agrees though it has been challenging to implement, e-freight is essential. Demir says: “Information should be able to travel independently so any authority has access.

We want simplify the process.”

Hatipoglu adds that using e-AWBs can be very simple. He says: “I’ve seen how simple it is, go into bill offloading prepared data in our system, tick the box for e-AWB, that’s it. It took two minutes.”

NEWS WEEK

Brexit and Heathrow Airport decision dominate AOA conference

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he UK’s exit from the European Union (EU) and the Government’s decision to back Heathrow Airport for a third runway, dominated debate at the Airport Operators Association (AOA) annual conference on 21 November.

Delegates at the Hilton London Metropole heard from a range of speakers, including the UK Government’s Secretary of State for Transport, Chris Grayling (above left).

During a Q&A with conference moderator Natasha Kaplinsky (above right), Grayling quashed any immediate hopes held by Gatwick Airport of being given the go ahead to build a second runway soon. There had been rumours

Gatwick Airport would also be given the nod, but he seemed to put this to bed for now.

“That (a second runway at Gatwick) is a debate to look at beyond the 12 months we have and that is one for future transport secretaries,” Grayling says, but adding the “the door is never shut”.

He says he is focusing on what he is dealing with right now, which is doing all the work necessary to get a third runway built at Heathrow and expects a “decision in principle” to be finalised by this time next year when MPs are set to vote on a decision in the House of Commons.

Grayling believes expanding Heathrow is “the right decision” for the UK and the aviation

industry, as it will benefit passengers and the wider economy, paying particular focus to the fact the hub is the UK’s key port by value and growing it is vital to grow UK exports.

In light of the Brexit vote, which Grayling supported, he says expanding Heathrow is now even more important: “Britain’s future outside the EU makes the development even more important as we look to be more of a global nation.”

Grayling says it is vital the UK connects to more emerging markets in Asia and in other regions, as the UK is leaving the EU and says: “I want us to be a more globally focused nation and take more decision ourselves and be the champion of free trade and deliver better connections around the world.”

He says air service agreements will have to be updated with the likes of the US and other countries when the UK leaves the EU. The UK is set to face aviation challenges when leaving the EU and some fear it will not remain part of the EU’s single aviation market. There are calls for the UK to push for it to be decided before Brexit negotiations begin.

Delegates heard from the Airports Council International (ACI) Europe’s director general, Olivier Jankovec who warned the UK decision makers in Brussels see aviation as part of Brexit negotiations and as one of the sectors that make them up, doubting it can be decided before.

He feels Brexit negotiations will be a political discussion, which is “less transparent and with no opportunity for sector agreements”.

He says in Brexit discussions, airports favour continuity, but non-UK airlines may see opportunities for competitive advantage over UK rivals.

Jankovec sees a weaker position for the UK in Brussels following Brexit, which could undermine the EU’s liberal aviation strategy, but says ACI Europe is doing what it can. “We want the UK aviation market to remain as integrated as possible within the EU,” he says.

He feels it “wishful thinking” that the UK will remain part of the EU aviation market, and that UK airlines will be able to fly like they do now, adding in Europe times are “unprecedented” due to policy and regulatory uncertainty.

Restructuring for Lufthansa Cargo

UPS to add peak season flights to SBD

LUFTHANSA Cargo is restructuring its sales structure and by the end of 2016 it will have eight business units rather than four.

The previous areas - Europe, Africa, America and Asia/Pacific will be redefined. Sales in Germany will be unchanged and headed

by Florian Pfaff. New regions will be West Eu-

SAN Bernardino International Airport (SBD) has entered into an agreement with UPS to add flight operations in support of the peak holiday season.

UPS will operate four flights per week using Boeing 757 aircraft from SBD to Louisville, Kentucky, in December 2016.

rope (Thomas Egenolf), and North and East Europe (Annette Kreuziger). There will also be Middle East and Africa (Frank Beilner), USA and Canada (Bernhard Kindelbacher), Latin America and Caribbean (Gunnar Löhr), North and North East Asia as well as South and South East Asia (Frank Naeve).

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The integrator expects to deliver more than 700 million packages globally between Thanksgiving and Christmas Eve, a 14 per cent increase over 2015.

UPS’s South California District president, Tom Cuce says UPS needs additional capacity to deliver for its customers.

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AIR CHARTER

Global coverage drives ACS as it targets the $1bn mark

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ir Charter Service (ACS) is seeing growth in all regions as the opening of new offices pays dividends, but it is finding some sectors a struggle, including the oil and gas (O&G)

segment.

The charter firm’s chief commercial officer (CCO), Justin Lancaster (pictured) says China, countries within the European Union and India are particularly busy, while the Far East continues to perform well in general.

He says the US has been stable, and in general ACS “could not ask for more” and this financial year has been exactly what he was looking for and he is happy with the overall progress.

Most offices he explains have showed good growth and one region he definitely sees more expansion in is Asia. However, in Lancaster’s view he does not see this happening immediately as it takes time to grow, but he forecasts in the future business will grow “massively”.

Lancaster says the UK-headquartered company has had a very positive second half of the year and if it continues at the same rate, it will put ACS in a very good position for 2017.

The air charter cargo market it seems has been fairly protected from the overall slowdown in airfreight and in his view the charter market has outstripped the general air cargo market’s performance this year.

O&G slowdown

But Lancaster says the O&G market has proven a challenge, but as it now has 20 offices and 200-plus charter brokers across the globe, it is able to weather the storm and any slowdowns in individual sectors.

Earlier this year, ACS started Australasian operations with an office in Sydney, Australia and also opened an expanded office in Los Angeles.

He says it helps that ACS is not reliant on O&G but it is ideally positioned in various regions for when it comes back, in say 2018.

Lancaster notes: “We opened Houston for O&G and they have held their own, and when O&G comes back we will still be there and ready, but so much is out of our control and is due to macro-economics and there is not much we can do about it - it is out of our hands.”

A few years ago he says O&G made up a massive “slice of the air charter pie” but the sector has taken a “drubbing” due to the plunging of oil prices around the globe, which has seen O&G projects shelved and slow to a halt.

In October, ACS sold a minority stake to Alcuin Capital Partners to help it accelerate its growth plans and is set to make acquisitions in the coming months. The investment will bring access to capital and Alcuin’s expertise in corporate acquisition strategy ACS says will be

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“invaluable” for implementing growth plans.

Although Lancaster could not reveal exact acquisition targets and plans, he says, “there comes a time when you have to look at other products” using its successful on-board courier (OBC) venture, which it launched last year, as an example of how it has expanded its offering.

The company developed its OBC division in Asia earlier in 2016 with a new dedicated team in its Hong Kong office and is set to pump further funds into the product.

He also notes: “We could look at similar things to that (OBC) where we can grow. If opportunities arise and if we can do well and it fits in with our core offering, we will look at investing.”

And Lancaster says ACS does not have any immediate plans to open more offices, but it is always open to opportunities and keeps an eye on the market, although the focus for now is on building up the ones it has.

He adds: “We are not going to rush into it and have to take our time. We normally start planning an office a long way off. It is a significant investment so we have to make sure we are making the right decision.”

Africa could be one region for another office as there are exciting opportunities in Lancaster’s opinion, but he says there continues to be logistical and infrastructure challenges.

However, he notes East and West Africa is being particularly interesting, but does not envisage North Africa as a target as the region can be easily served from say, France.

Billion dollar goal

In the last financial year from 1 February 2015 to 31 January 2016, ACS posted a 10 per cent increase in turnover of just over $480 million and gross profit reached $60.2 million, which was a 28 per cent rise on 2014, but it is on course to top that this year.

And Lancaster’s target as CCO is quite clear, turn ACS into a billion dollar company. The goal is in his view attainable if the charter firm continues the way it has been going.

Lancaster says: “The business is out there. If we could do it in five years time I would over the moon, but if we can just get there sometime I would be over the moon.

“We just need to keep doing what we are doing, building up the number of brokers and opening offices and we can get there. We have to have that goal in the company.”

AIR CHARTER Intra ME lanes boosting NeWay

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eWay Logistics’ busiest trade lanes are the intra Middle East routes with business driven by the oil and gas, military and humanitarian sectors.

The firm’s general manager, Erwin Burger says the third quarter started slower versus last year, but from September onwards it has picked up again and is now on the level of where it was last year.

He explains there has been no peak season as it has been busy with demand from the Far East, mainly China into Europe and Africa increasing, adding: “Despite all the additional scheduled freighter capacity being added on routes out of the Far East, we still see enough requests coming through for (part) charter flights.”

NeWay plans on continuing to focus on the current company set-up and any expansion Burger says will most probably not happen in the upcoming year, unless there is an immediate requirement, which would call for it.

But what is NeWay’s strategy to grow?

Burger says: “We are a small sized company,

however with a global strategy and customer reach. As for every year, so not only 2017, we will continue to maintain a close relationship with customers and at the same time increase our sales activities towards the global market.

“I am a strong believer in face-to-face meetings with a customer, or a potential new customer.

Although nowadays almost every contact is via the phone, email or other messenger communication systems, I continue to be convinced it is extremely important to go out and meet people in person.

“When I say customer, I mean freight forwarders, airlines and other charter brokers. Let us be clear that we do not work directly with any consignors or consignees, our neutral position within the market is important for our customers and we cherish this position.”

Interesting recent charters have included taking on an Antonov 32 aircraft on ACMI, which it will base in Afghanistan within the next few weeks for at least one year. Outside of its scheduled operation, the aircraft will be available for ad-hoc charters within Afghanistan, or the immediate surrounding countries.

How does Burger see the air cargo market?

“Scheduled cargo capacity, and mainly the belly cargo capacity, continues to increase as well as the competition within the charter market, but there will always be a need for charter flights and I strongly believe the need for charter flights will continue to grow steadily.

“NeWay Logistics is here for the long term and we are looking to assist and serve our customers throughout the years ahead,” Burger observes.

Cigarettes and explosives among Skyair Charter flights 2016 has not been a good year for Skyair Charter, but chief executive officer Tekin Ertemel says it has done some interesting charters.

Speaking to Air Cargo Week at the Logitrans Istanbul trade show, he said his company did more than 300 charters in 2015, some was project cargo, some for governments and some for the military.

He says: “This year it has not happened because construction companies in Turkey did not get as much business to countries such as Turkmenistan, Uzbekistan or the Middle East because of crises, which was not good for us.”

Most charters have been spare parts for the automotive industry for companies including Fiat, Toyota and Ford. Ertemel explains: “This was for small cargo, they were in trouble and couldn’t transport them by truck in time so they asked for help to bring them to factories.”

Very recently it arranged two flights to Casablanca for Philip Morris transporting 33 tonnes of cigarettes. He says: “There is not enough capacity through scheduled

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services so they came to us when the client has such a problem.”

Working with freight forwarder, Borusan Logistics, Skyair rented a Airbus A300-600 with 45 tonnes of capacity from MNG Airlines for the flight. He says a lot of firms prefer transporting valuable cargo like cigarettes by air as they are less likely to get stolen compared to when travelling by road.

Skyair gets called upon to handle some very interesting shipments, including 15 tonnes of class 1.1 explosives on an Antonov AN-12. Ertemel says Skyair had to ask for MSDS forms giving information about the goods and had to be very careful to make sure everything was packed according to dangerous goods regulations.

The product was produced in Spain but trying to find a suitable airport was challenging. He says: “No airport gave permission to do the charter out of Spain so we found Vatry Airport in France.”

Skyair had to send necessary documents to the French authorities and after two weeks the charter was given permission, so the cargo was able to fly to Turkmenistan.

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THE AMERICAS

DHL to spend $185 million in the Americas region

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HL Express says it will continue to invest in the Americas as growth in the region is meeting its expectations.

The integrator has earmarked $185 million for the rest of 2016 and into 2017 for infrastructure, technology, and people.

Besides investing in its operations in the US, DHL Express is also committing funds to support its growth plan in Mexico, Canada, Brazil, Chile and Peru.

DHL Express chief executive officer (CEO), Ken Allen (pictured) explains: “DHL Express is continuing its strong progress in the US. As part of our focus on international express shipping and our commitment to continually improving customer service, we are directing our investments toward upgrading our facilities, expanding our staff and providing them with the technology they need to enhance productivity and to be more efficient.”

DHL Express has completed a portion of the $108 million investment project at its Americas Hub, located at the Cincinnati/Northern Kentucky Airport, announced last year.

It is also spending $20 million over two years to upgrade and expand its ground fleet, adding more fuel-efficient at its New York JFK facility.

To deal with growing shipping volumes, DHL Express is applying an additional amount of nearly $60 million to expand and add facilities as well as provide technology/security upgrades and new equipment such as the new courier scanners.

It has added three new service centres in New York City, Chicago, and Seattle as well as expanded another three this year.

It upgraded its Los Angeles gateway in 2016 and plans to add a new gateway in Chicago and refurbish its JFK gateway in 2017.

DHL Express is gearing up for the e-commerce boom especially over Christmas, which it says is increasing in the region.

Americas CEO, Mike Parra says: “Going forward, we will continue to keep our focus on the last mile, leveraging technologies and solutions that provide added convenience for customers.”

The express freight firm is also investing a further $105 million in the Americas region including $12 million in Canada, adding new service centres in Calgary and Ottawa this year, as well as one in Quebec next year and a new gateway in Vancouver.

And it is ploughing $38 million into Mexico this year and 2017, in addition to its existing $160 million five-year capital investment plan already announced.

The additional funds provide 38 new outlets for a total of 500 retail service points, two new service centres this year and two more in 2017, a ground fleet upgrade and an aircraft upgrade for the domestic hub.

Brazil will see a $7.5 million injection to cover a major upgrade to the Sao Paulo domestic hub and service centre, including a head office relocation and there will be smaller investments in Peru, Chile and several Central American countries.

“These investments are a clear sign of our expectations for strong growth and of our commitment to the US and the Americas,” explains Allen. “We will continue to invest in this region,” he adds.

North and South America trade growing

NATIONAL Airlines says it has enjoyed “a meaningful improvement” in business trends in the fourth quarter and remains “optimistic for the outlook for global trade”.

The Florida-headquartered charter and scheduled service passenger and cargo airline says since the beginning of October, it has seen overall business trends improve by five to 10 per cent year-on-year, as global economies prepare for a strong holiday season and emerging markets increase trade both between each other and with developed economies.

The carrier says trade between North and South America continues to grow rapidly,

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and it has witnessed an increase in air traffic between North and South America that typifies the wider trend, it informed.

National’s president, Mark Burgess says: “National has unique traffic rights for both passenger and cargo that allow it to operate globally and therefore capitalise on pockets of international trade opportunity that many other air carriers cannot.

“Additionally, National’s impeccable reputation for on-time performance enables us to fill a void in an industry known for its lack of punctuality.”

National Air Cargo Holdings chairman and chief executive, Chris Alf adds: “We have worked hard and invested substantial resources to acquire the most coveted air traffic rights in the world.

“In a new era of presidential politics in which the dynamic of global trade may change for thousands of companies, National remains poised to continue to grow its core businesses.”

THE AMERICAS

Governments urged to unlock aviation growth

G

overnments across Latin America and the Caribbean have been urged to make unlocking the region’s aviation potential a priority by the International Air Transport Association (IATA).

The association says aviation will support 8.4 million jobs and contribute $380 billion to regional GDP by 2035 but says the region faces challenges such as capacity constraints, while warns that privatising infrastructure must be approached with caution.

IATA director general and chief executive officer, Alexandre de Juniac says: “Aviation is the business of freedom. It helps people to trade, to discover and to better their lives. A successful aviation industry generates prosperity. Despite protectionist rhetoric - which we must be robust in countering - economies need air connectivity to grow and integrate with world markets.”

He warns: “Operational costs are high. Taxes are significant.

In addition, regulations are burdensome and often not aligned with global standards. We need a strong partnership with governments that focuses on unlocking aviation’s benefits

National joins Haiti relief

to tackle these issues effectively.

“On top of that, in Latin America there is a huge opportunity for a government-industry partnership to create value by addressing the region’s many infrastructure deficiencies.”

IATA says capacity must grow in line with demand, with constraints in Bogota, Lima and Mexico City illustrating the region’s restrictions. Though plans are in place, relief is years away, and job opportunities and economic growth are being lost.

The association also warns that concessions for privatising infrastructure must be in the long-term national interest and not short-term gain for the highest bidder.

De Juniac says: “Harnessing the efficiencies of private enterprise to improve infrastructure needs iron-clad regulation to protect the users from out-of-control monopolies.”

IATA uses Chile as an example of when regulations are not strong enough, with de Juniac commenting: “Pre-funding airport expansion plans at Santiago’s airport has seen airport charges skyrocket, putting at risk the country’s air transport competitiveness and the social and economic benefits it generates.”

NATIONAL AIRLINES has joined the relief effort in Haiti providing aid for the Caribbean nation as it attempts to rebuild following Hurricane Matthew.

The charter and scheduled airline is one of a number of companies that has operated relief flights to Haiti. National has delivered nearly 200 tonnes of critical equipment to Haiti including power generators and water purification kits for those in need in difficult to reach places.

National chairman and chief executive officer, Chris Alf says: “Nearly 1.4 million people in Haiti remain in need of humanitarian assistance and 40 per cent of those are children, according to the United Nations. We are proud to be a part of these efforts to bring much needed equipment to Haitians during a critical time.”

National president, Mark Burgess adds: “Very few privately held airlines are properly equipped to move such large quantities of heavy equipment with unusual, emergency-driven lead times. National is uniquely positioned to facilitate such last-minute transport.”

ANA to operate Mexico flight ALL NIPPON AIRWAYS (ANA) will become the first airline to offer direct services between Japan and Mexico with the launch of daily Tokyo – Mexico City services.

The Japanese airline will use a Boeing 787-8 on the route from Tokyo’s Narita International Airport, starting on 15 February 2017.

Mexico has signed free trade agreements with more than 40 countries around the world including Japan and the US, and is increasingly being seen as an attractive manufacturing and export hub.

ANA president and chief executive officer, Osamu Shinobe says: “We are proud to be the first airline to operate direct, daily flights between Japan and Mexico to better serve the growing business and leisure demand between our two countries. We hope our flight will also contribute to a closer bilateral relationship, economic prosperity and cultural exchange.”

Mexico and Japan have been strengthening their economic ties, particularly in the automotive industry, with direct investment in Mexico from Japan increasing 2.7 times in the five years from 2010 while the number of Japanese-owned companies setting up operations in Mexico has doubled.

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BRAZIL

Challenges for Viracopos as it looks to attract routes AEROPORTOS Brazil Viracopos is making a push to expand its air cargo operations and tonnage as it looks to recover business.

In 2016, the Sao Paulo located gateway has seen a fall in tonnage on the import and export sides. Overall the gateway has seen volumes decrease roughly 20 per cent, but it still handles around 38 per cent of Brazilian air imports.

Viracopos Cargo commercial manager, Adam Cunha says: “Although we were optimistic in our plans for 2016, the economic and political factors in Brazil could not be denied and in turn impacted our expectations for the year.

“That being said, due to our commercial and operational efforts, we feel that the decrease in tonnage was minimised and our position in the marketplace remains firm in terms of market share.”

Sector performance is varied and Cunha says

pharma has been positive with past investments in infrastructure and processes bearing fruit, while the technology sector has not shown growth, but on a positive note it has not retracted in 2016.

Viracopos has already increased its cool chain capacity and is currently working towards the International Air Transport Association’s CEIV Pharma certification and is aiming to further grow pharma traffic.

Miami is the pillar trade lane for Viracopos and in addition, both Europe and Asia, due to the pharma and technological sectors, have remained firm in 2016.

Viracopos is looking to add cargo routes, and Cunha says: “While we are in talks with both types of operators, none have solidified new or additional routes thus far in 2016.

“The market is cautiously optimistic the econ-

omy is turning a corner so we hope that this will in turn reflect within these discussions.”

Cunha says a major concern is the impact belly cargo is having on freighter services, as it has more than 20 cargo airlines operating and to support them, especially in the beginning of a new frequency or route, it has put an incentive program in place to waive the landing fee charges for the first 12 to 24 months.

Viracopos has expansion plans such as developing its live cargo terminal, the building of a new distribution centre and an “Industrial City” connecting to the runway.

Cunha also explains: “The biggest challenges in Brazil are the political and economic uncertainties that have taken their toll over the last 12 months.

“Add to that the difficulty of the public agencies to accompany growth and demands of the modern marketplace without the needed resources or updated processes in place.

“This results in much higher operating costs for the importer and exporter, further complicating the choice to use airfreight as a mode of international trade.”

Brazilian carriers look for investments

THE Brazilian economy has been struggling and moving out of its worse recession in decades is proving difficult - which in turn is affecting air cargo carriers.

The government has reduced its forecast for economic growth in 2017 to one per cent from 1.6 per cent, while it also changed its prediction for 2016 to 3.5 per cent from three per cent.

Brazil’s third biggest carrier Azul Linhas Aereas Brasileiras is reportedly close to filing for regulatory clearance to launch an initial public offering after failed efforts to list shares in recent years and a listing could take place in the first two months of 2017.

Analysts say this fresh capital should help boost the company’s balance sheet as it receives widebody Airbus aircraft to add foreign routes from Brazil, a segment dominated by Gol Linhas Aereas Inteligentes and LATAM Airlines.

Azul recently started routes to Florida and Uruguay. It also began flying to Portugal after investing in the Portuguese airline TAP.

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Meanwhile, Latin American carriers also reportedly believe that joint ventures (JV) are way of the future and are crucial if they want to compete on the global stage.

Speaking in Mexico City earlier this month, LATAM chief executive, Enrique Cueto was reported as saying the carrier either gets into this model or it will be acquired, adding JVs allow airlines to cooperate more effectively. LATAM is seeking regulatory approval with American Airlines and IAG, but Brazil’s competition regulator has aired concerns over the deal.

Other Latin American carriers are also eyeing JVs. Aeromexico and Delta Air Lines have received tentative US approval for their partnership, but Aeromexico says the airlines are fighting conditions US regulators have tagged on to the agreement. Reports also claim Avianca (pictured above) is looking for a strategic partner.

How any joint ventures will air cargo remains to be seen, but making them more competitive is obviously a good thing while also giving carriers more capital to invest in their struggling freight divisions.

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