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The weekly newspaper for air cargo professionals Volume: 21

Issue: 4

29 January 2018

ACAS screening for Middle Eastern carriers

he US Transport Security Administration (TSA) has tightened rules for air cargo coming from five Muslim-majority Middle Eastern nations. With immediate effect, under an Emergency Amendment, US-destined cargo on six carriers from seven last points-of-departure airports in five countries will be required to participate in the Air Cargo Advance Screening (ACAS) programme. The six carriers are Egypt Air, Royal Jordanian, Saudia, Qatar Airways, Emirates and Etihad. ACAS is otherwise a voluntary programme operated by US Customs and Border Protection (CBP). The TSA now requires “participating” airlines to submit a “subset of required advance air cargo data to US CBP at the earliest point practicable prior to loading of the cargo onto the aircraft destined to or transiting through the United States,” says an official. The mandated services are: Egypt Air operating out of Cairo International Airport; Royal Jordanian out of Queen Alia International Airport; Saudia out of King Abdul-Aziz International Airport and King Khalid International Airport; Qatar Airways out of Doha Interna-

tional Airport; Emirates and Etihad out of Dubai International and Abu Dhabi International airports. The five countries from where these six airlines fly were included in the earlier US Department of Homeland Security’s laptop ban. This ban was rescinded in July 2017. ACAS was designed to help improve security by providing US CBP with air cargo-related data prior to loading an aircraft at a foreign airport. It is a voluntary programme in which many airlines already participate.

The TSA’s Emergency Amendment is part of “a larger effort by TSA to raise the global aviation security baseline,” say officials. “These countries were chosen because of a demonstrated intent by terrorist groups to attack aviation from them. TSA looks at threats emanating from each country uniquely, and cannot provide specific information about those threats, but after analysing evaluated intelligence, we determined that we needed to expand the ACAS programme within each of them at this time.”

EMIRATES SkyCargo has introduced pharma corridors to offer additional protection across selected stations in its network for pharmaceutical cargo. The airline is working with ground handling partners and other stakeholders across its network in order to ensure that handling operations at these stations are uniform and comply with Emirates SkyCargo’s standards as well as either European Union Good Distribution Practices (GDP) or International Air Transport Association (IATA) Centre of Excellence for Independent Validators (CEIV) Pharma guidelines. The first 12 stations under the programme include Amsterdam, Brussels, Bengaluru, Cairo, Dublin, Dusseldorf, Hong Kong, Luxembourg, Milan, Rome, Shanghai and Singapore, with more cities are expected to be added over the course of the year. Emirates divisional senior vice president

for cargo, Nabil Sultan says: “We realised that it was essential to work with our partners on the ground at the various stations in order to ensure that pharmaceutical cargo travels under the best conditions not only through our state of the art facilities in Dubai and when onboard our modern aircraft, but right from the point the cargo gets dropped off at the origin airport

until it is collected at the destination airport.” The rollout was led by pharma specialists in the Emirates SkyCargo team working in coordination with cargo service delivery teams and ground handlers locally at stations. The team undertook a number of engagement and qualification visits in order to prepare for the rollout.

LIONS AND PENGUINS FLY TURKISH PROFESSIONAL, EXPERIENCE STAFF MAKE MILLIONS OPPORTUNITIES ARISE FOR ECS TO REINVENT ITSELF AIRWAY BILL: LAST HURRAH OR STAY OF EXECUTION?

Emirates SkyCargo creates pharma corridors across its network

787-10 cleared for take off by the FAA

THE Boeing 787-10 Dreamliner has been cleared to take to the skies for commercial service having received amended type certificate (ATC) from the US Federal Aviation Administration (FAA). The 787-10 is a stretch of the 787-9, retaining over 95 per cent of the commonality while adding seats and cargo capacity, while also improving fuel efficiency and operating economics with 25 per cent better fuel per seat and emissions than aircraft it will replace. Boeing says receiving ATC caps a successful flight test programme that began in March 2017 involving three test aircraft accumulating 900 test hours, confirming handling, systems and overall performance met internal requirements and certification standards to ensure safety of flight. Other regulatory agencies are expected to follow the FAA’s lead and certify the aircraft before entering service. 787 programme vice president and general manager, Brad Zaback says: “After years of design and testing, our team has proven the quality, safety and reliability of the newest member of the Dreamliner family and we look forward to seeing the airplane in service later this year.” Boeing has received over 170 orders for 787-10s from nine customers, with the first delivery expected in the first half of 2018.

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NEWSWEEK AfA and TIACA sign MoU for new alliance

he Airforwarders Association (AfA) and The International Air Transport Association (TIACA) have signed a memorandum of understanding (MoU) to strengthen cooperation on various industry matters. The MoU is the first stage of an alliance between the organisations, which they say will enable them to strengthen cooperation on aviation matters by: shared participation in each other’s events; mutual promotion through social media; continuous consultation, conferring and cooperation; exchange of information on projected activities and relevant events of both associations; invitations for representation by each participant in the alliance at global and regional conferences; organisation of joint events; and conduction of capacity building assistance and activities. AfA executive director, Brandon Fried (pictured left) says: “We are looking forward to the future opportunities that will come from this MOU. Vladimir Zubkov [pictured right], TIACA secretary general, will attend the AfA Board meeting held during AirCargo 2018 in Austin, Texas. The AfA Board will in turn attend TIACA’s Air Cargo Forum, held in Toronto this coming October.” The AfA represents the interests of companies and individuals

operating within the US and engaged in airfreight, with members including domestic and foreign freight forwarders, air carriers, ground carriers and affiliated businesses. TIACA is a global non-profit trade association that represents all major segments of the air cargo and air logistics industry. It engages in activities to improve industry cooperation, enable the sharing of knowledge, enhance quality and efficiency, and promote education, and also aims to inform the public about developments and trends in the air cargo industry.

Houston, it’s all running smoothly

ANTONOV Airlines’ new Houston, USA office has been getting into the swing of things by transporting an outsized satellite to French Guiana. The Al Yah 3 Satellite, the first of Orbital ATK’s GEOStar-3 satellites, was accommodated in a container measuring 11.4 metres long, 4.6 metres wide and 4.1 metres high, and weighing 23 tonnes. It travelled from Washington Dulles International Airport to Cayenne, French Guiana on board one of Antonov’s seven AN-124-100s, which is capable of accommodating oversized cargo and has a payload of up to 150 tonnes. Antonov Airlines director of sales for North America, Amnon Ehrlich says: “Due to the size and weight of the cargo, we used a low-profile ramp system – specifically designed and manufactured by Antonov Company for the satellite and space transportation sector, to safely and efficiently load and offload the satellite.”

ACW REWIND

IN THIS third trip down memory lane, a new lobby group gets ready for its public debut at the 1998 TIACA Air Cargo Forum.

ACF 98 debut for cargo group Vol 1, Issue 1 1 May 1998 A FRANCE-BASED AIRLINE lobby group is set to make its public debut at next week’s TIACA forum, just a week after its first meeting. The Syndicat de Compagnies Aeriennes de Fret de France (SYCAFF) has been established to represent air cargo carrying airlines operating in the country. Lufthansa Cargo’s Ulrich Link was elected as SYCAFF president, Air France’s Philippe De Crecy was elected board secretary and Jean-Luc Py of Cathay Pacific was elected to the position of treasurer. The initial membership is around a dozen airlines, including Lufthansa, American Airlines and all-cargo operators such as FedEx and Cargolux. Membership is anticipated to all key air cargo airline players in France.

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Three more members join Pharma.Aero

harma.Aero is continuing to expand its network by welcoming Hong Kong International Airport (HKIA), AirBridgeCargo Airlines and Alha Group as its newest members. The organisation has a mission to foster collaboration among International Air Transport Association (IATA) Centre of Excellence for Independent Validators (CEIV) in Pharmaceutical Logistics certified airport communities, and improve reliability end-to-end in air transportation for pharma shippers. It has been gaining new members, and chairman, Nathan de Valck says: “The open internal dialogue, underlined by our pharma shipper members, allows us to further improve the handling of pharmaceutical shipments.” He adds: “Being CEIV Pharma Partner Airport and part of Pharma.Aero are key milestones in collaborating with industrial partners sharing our experience and building pharma corridors connecting to the fellow Pharma.Aero members.” HKIA and all cargo service providers obtained IATA CEIV Pharma in mid-2017 and ABC was the first airline in Russia to gain IATA CEIV, passing the audit in a record four months. Pharma.Aero was founded by Miami International Airport and

Brussels Airport, with Changi Airport, Sharjah International Airport and Mumbai’s Chhatrapati Shivaji Airport joining as strategic airport members. Johnson & Johnson, Pfizer and MSD are strategic pharma members, with the three new companies joining Brussels Airlines Cargo, Singapore Airlines Cargo, Expeditors, Brinks, EuroAirport Basel Mulhouse Freiburg, DHL and Montevideo Free Airport as full members. E-Cargoware, 4Advice and Envirotainer are associated members.

NEWS WEEK WORLDNEWS

CHRIS Garton has been picked as chief operating officer (COO) for Heathrow Airport, taking up his new role in the spring. Until early 2017 he was in the equivalent role at Dubai Airport, where he played a key role in the annual passenger numbers growing from 30 million to 86 million over a nine-year period. His arrival follows news that interim COO, Derek Provan is to become the chief executive officer of AGS Airports, the operator of Aberdeen, Glasgow and Southampton airports. AERONAUTICAL Engineers (AEI) has delivered its 100th Boeing 737-400 SF freighter conversion, with the aircraft going to ASL Aviation. The aircraft is the 13th AEI 737-400 conversion to be redelivered to ASL, and it has an additional four undergoing work or scheduled for modification in 2018 at Commercial Jet’s Dothan, Alabama facility. It has space for 10 88×125” ULDs in P1 to P10 or five 88×125” and 10 61.5×88” in P1 to P10 and one 53x88x64 pallet or AEP/AEH or 60.4×61.5” AKE/LD3 or 61.5x88x56H AYY in P11.

Changi breaks the two million tonne barrier

CHANGI Airport’s cargo figures have passed the two million tonne mark for the first time with throughput growing 7.9 per cent in 2017. The Singapore airport handled 2.13 million tonnes in 2017, with registering strong growth in every month of the year, ending with a 6.4 per cent year-on-year increase in December to 188,742 tonnes. China was the top cargo market, followed by Australia, Hong Kong, the USA and India, with imports growing eight per cent, exports by 14 per cent and transhipments by four per cent. E-commerce was the largest cargo segment, with perishables in second and pharmaceuticals in third place. Changi Airport Group formalised the Pharma@Changi initiative in October 2017, where together with nine other partners from across the supply chain, they jointly pursue best practices in pharmaceutical handling and promote Changi as a trusted an reliable pharma hub. In addition, Changi became the first airport community in Asia Pacific to attain IATA CEIV Pharma certification. E-commerce also received a boost with SATS opening its eCommerce AirHub in April, enhancing Changi’s mail sorting capability to support the growing market with its state-ofthe-art automated airside eCommerce mail sortation facility.

FAA plans $54,000 hazmat fine ANOTHER year has got underway and the Federal Aviation Administration (FAA) is proposing a fine for a company accused of violating Hazardous Material Regulations. Jonesboro, Georgia-based True Value Company is facing a $54,000 fine for allegedly offering a four-litre metal container of epoxy paint to FedEx for shipment by air to Crossett, Arkansas on 10 May 2017, which was discovered to be leaking by workers at the FedEx cargo facility in Fort Worth, Texas. The FAA alleges the package was not accompanied by a shipper’s declaration of dangerous goods and was not properly classed, described, packaged, marked labelled or in the proper condition for shipment. True Value are also accused of failing to ensure hazmat employees received required training, and failed to provide emergency response information with the shipment.

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NEWSWEEK ACS helps rehome hurricane animals Lions and penguins fly Turkish

ollowing the aftermath of Hurricane Harvey, some of Texas’s animal rescue homes were left in tatters, meaning that hundreds of unfortunate pets had to be flown to new homes. One such charter transporting the cats and dogs was helped by superstar pitcher and recent World Series winner, Lance McCullers Jr. (pictured) of the Houston Astros. Air Charter Service (ACS) Americas president Richard Thompson, says: “Over the past couple of months ACS has been involved

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in several rehoming flights for pets displaced by Hurricanes Harvey, Irma and Maria, flying them to new homes in Nevada, Oregon and California. “With this one, however, the charity that had arranged the charter flight had some extra help in the form of Lance. “He is a very active ambassador for animal welfare, setting up the Lance McCullers Jr. Foundation last year. And fresh from winning the World Series, he was more than happy to come along to William P. Hobby Airport to help load the pets onto the Metroliner aircraft. From there, they flew to their exciting new abode in Los Angeles.” Thompson says: “We’re pleased to report that all 240 animals have settled in well to their new surroundings.”

TURKISH Cargo has been helping endangered species by relocating lion cubs and penguins to new homes. The sub-brand of Turkish Airlines transported 20 Humboldt Penguins, one of the 11 penguin species threatened with extinction due to climate change, from Riga, Latvia to Shanghai, China. The penguins were picked up from Riga Zoo, and flown to Shanghai via Istanbul, accompanied by Turkish Cargo’s IATA Live Animal Regulations (LAR) certificated personnel and vets, before being handed over to officers at the Public Oceanic Aquarium, one of the largest aquariums in Asia. They were not the only animals to fly with Turkish Cargo; six lion cubs flew to their new home in Bangladesh and 14 adult lions were successfully moved to China.

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Turkish Cargo says it takes IATA LAR regulations as a reference for the acceptance, storage and shipment processes; and strictly implements the documentation, packing, labelling and marking guidelines as described during the course of the live animal process. It also says that by ratifying the United For Wildlife Buckingham Palace Declaration to prevent illegal wildlife trade and increasing industry awareness, and has highlighted its knowledge of the live animal transportation processes and animal rights.

NEWS WEEK Special cargo boom and upgrades behind ABC growth

irBridgeCargo (ABC) Airlines continues to grow at double digit rates with cargo volumes surging 13 per cent in 2017, with special cargo performing particularly well. The airline handled more than 700,000 tonnes of cargo in 2017, which it says is due to fleet expansion, developing solutions for special cargo, and upgrading its network with new destinations and additional flights to existing ones. Temperature sensitive pharmaceuticals saw exceptional growth with growth of 150 per cent, while off-size & heavy cargo was up 33 per cent, and e-commerce by 26 per cent. The air cargo industry as a whole had a very strong year in 2017 and ABC witnessed improvements in all major markets across its network, with its performance being enhanced by the refinement and reinforcement of its sales structure, which has seen the development of a centralised sales structure complemented by regional expertise.

ABC general director, Sergey Lazarev (pictured) says that in addition to developing special cargo, fine-tuning processes and other improvements, the airline has been upgrading the quality of service, something that will continue into 2018. He explains: “Our commitment to continuous improvement

and strong customer relationships will continue to serve as a pillar for ABC’s development in 2018 and beyond.” ABC says it will focus on further enhancing special cargo, not only providing customers with a wide range of products but also offering digital solutions to make processes more transparent.

ANA to add domestic routes

ALL Nippon Airways (ANA) will add new domestic cargo routes in Japan driven by rising demand for Japanese goods from other Asian countries. It says demand for Japanese goods from the Kyushu market led to the airline deciding to open routes from Osaka/ Kansai to Kitakyushu and from Kitakyushu to Okinawa. The airline says regular freighter services from Kyushu and the cargo hub in Okinawa will continue to drive profitability on cargo routes. Kyushu is home to manufacturing industries including automobiles and semi-conductors and ANA says a regular freight service will increase visibility of this market. ANA says using the Okinawa cargo hub will allow for next morning deliveries to a number of Chinese and other Asian cities, as well as contribute to the economic development of Kyushu. Flight number NH8565 will operate five times a week, leaving Kansai at 22:00 local time, landing in Kitakyushu at 23:10, then NH8566 will depart Kitakyushu at 00:40, arriving in Okinawa at 02:30, when it starts on 4 June. ANA will also be flying from Tokyo Narita to Tianjin from 28 August five times a week. The airline will also be welcoming the first Airbus A380 to its fleet, which will also be the first in Japan, and it will also take delivery of the newest Boeing 787 model, the 787-10.

Cargojet grows internationally CARGOJET is to expand its international network with flights to Colombia and Peru, and European services to Germany from 2 February. It will operate Boeing 767-300 Freighter flights from Hamilton, Ontario to and from Bogota, Colombia and Lima, Peru, via Atlanta, Georgia on Fridays and Saturdays. The Canadian airline will also connect Hamilton with Cologne, Germany on Saturdays, with continued connectivity through the Cargojet network. Cargojet chief executive officer, Ajay K. Virmani says: “Cargojet will offer a premium air cargo service directly to global freight forwarders, interline airline partners and other users of international air cargo services. “Our recent presence in these markets has led to increased demand for our services and allows us to continue to optimise our overall freighter aircraft utilisation and expand our range of services and customer base.”

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SOUTH EAST ASIA AirAsia to capitalise on Malaysian e-commerce boom

irAsia is looking to step up its air cargo business, writes Michael Mackey. The announcement fits into a pattern of Malaysian businesses moving to capitalise on the recently set-up Digital Free Trade Zone (DFTZ), a joint venture between Kuala Lumpur and the Alibaba Group at KLIA Aeropolis. “There is a lot of belly space not just on the Airbus A320 aircraft but also the A330s. This is one way for us to optimise our revenue, to be able to put cargo or courier products in that space,” AirAsia’s chief executive officer (CEO) Aireen Omar told the NST Business website. With more than 350 routes in over 80 destinations, Aireen said the cargo business would also complement the DFTZ.

“That is the whole idea of why we feel we can grow this business even bigger, especially with the establishment of DFTZ,” Omar says. “We have a strong base in Asean (Association of South East Asian Nations). We aim to fly to bigger markets outside Asean, like China, India, Japan, South Korea and Australia.” Analysts acknowledge the opportunity but are more qualified in their assessment. “They should be able to get some of that e-commerce business into their planes,” one told Air Cargo Week. “They have a dense network in Malaysia and the region.” However the analyst, who asked not to be named, pointed out the revenue implications for AirAsia are limited by their narrowbody fleet and the airline’s focus on the passenger and ancillary businesses.

Infrastructure issues in Myanmar urgently need to be addressed MYANMAR’s fast emerging air cargo industry is gearing up but needs to address severe infrastructure limitations. The overriding problem for the sector is the sheer lack of hardware – especially at Yangon International Airport, a nodal point for nearly all of Myanmar’s air freight. Yangon is the country’s business capital. “The air terminal is too small,” Panalpina’s country manager, Angela Lee told Air Cargo Week. For exports it has only 2,500 sq m for storage and cannot meet all the capacity demands being made of it. Worsening this its facilities are also very limited. It has just upgraded to six from four weighing machines (two big and four small) and there is no room to build pallets. Everything comes in loose from manufacturers, according to Lee. These problems are complicated by “slow Customs clearance,” and leads to the situation where trucks are kept waiting for up to eight or ten hours in peaks season, she adds. That said the industry is working hard to find remedies and is lobbying the authorities to try and get something done. “Both airlines and MIFFA (Myanmar International Freight Forwarding Association) have shared the concern with Myanmar International Airport and they are looking for a solution, but we have yet to hear from them,” says Lee. Lee is looking at air import led by medicines and pharmaceuticals as well as IT products and raw materials and spare

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parts for Myanmar’s industry. Exports will be “mainly garments” she said with some shoes and perishables. Leading the early entrants is Qatar Airways Cargo who started the first direct freighter service to Yangon, with a Doha-Yangon-Doha route served weekly with an Airbus A330 freighter, providing more than 60 tonnes of cargo capacity each way. “We are delighted to launch our eighth freighter destination for 2017, in line with our strategic expansion to our network and fleet. Since the country’s liberalisation, Myanmar has had the fastest-growing economy in the ASEAN region, and foreign investment in local trade has seen tremendous growth,” Qatar Airways’ acting chief officer cargo, Guillaume Halleux, said at commencement. Myanmar’s air freight exports and imports have risen tremendously by 87 per cent and 58 per cent in tonnes since 2014, Qatar said. Ready-made garments are the chief exports destined mainly for Europe and the United States via a stopover in Doha. The new service will also facilitate the transit of pharmaceutical imports from Europe to Myanmar through its established QR Pharma solution.

SOUTH EAST ASIA Cambodia is becoming a dedicated follower of fashion

ambodia’s air cargo sector is driven by sharply rising garment exports. Signs of Cambodia’s increasingly active air cargo sector come from a third carrier from the country, Lanmei Airlines, appointing Hong Kong’s Asia Airfreight Terminal as its cargo terminal operator. Lanmei launched a new link between Sihanoukville in Cambodia and Hong Kong using an A321. Sihanoukville is an emerging hub due to its deepwater port and designated industrial zone. This follows on similar deals with JC (Cambodia) International Airlines who operate direct services from to Phnom Penh (pictured) and Siem Reap with an A320 and Cambodia Angkor Air, the national flag carrier of the south east Asian kingdom. News which is exciting interest is the recent announcement of a new airport near the existing Phnom Penh airport. The proposed new $1.5 billion airport will have a 2,600-hectare site in Kandal province south of the capital, the official Agence Kampuchea Presse said. “(This) will be made possible through a co-investment of 90 per cent from a domestic group OCIC (Overseas Cambodia Investment Corporation) and 10 per cent from the State Secretariat of Civil Aviation,” AKP.gov.kh said. Details however are scarce but local media have reported the new facility will be able to accommodate long haul flights, a significant upgrade if true. No time line is available and China’s role, following the recent signing of a number of infrastructure co-operation deals with Cambodia, is unclear but said to be sizable. What is raising eyebrows as one source, who asked not to be named, pointed out to Air Cargo Week is the scale of the venture. Especially when put against the estimated cost. At 2,600 hectares this would be the ninth-largest airport in the world (Chicago O’Hare in the US is 2,610 hectares for comparison and Beijing Capital International in China is 2,330 hectares). More tellingly the current Phnom Penh International Airport is about 400 hectares. “Key actors have yet to work out the details and open questions remain. So it is too early to say what the implications could be, but we are keeping a close eye on the development,” the source says.

AGS starts cargo terminal operations at Don Mueang

ASIA Ground Service (AGS), a member of Triple i Logistics has started its cargo terminal and ground handling operations at the Bangkok Don Mueang International Airport (DMK). To offer its ground handling services to its customer airlines, AGS joins EzyCustoms and becomes the first ground handling agent to use this system to handle electronic Air Waybills (eAWB) data exchanges with its customer airlines. The initial service is to receive and send out eAWB messages (including master Air Waybill, house and flight manifests) through EzyCustoms for operations requirements. AGS is working with Thai Customs towards an integration into their system for the submission of advance cargo information through EzyCustoms. AGS currently handles NokScoot, Scoot Tigerair, Thai AirAsia and Thai AirAsia X. Bangkok pictured above.

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GLOBAL GSSAs

Professional, experienced staff make millions

wo factors matter to Air Logistics Group (ALG) COO, Stephen Dawkins (pictured), about how the business is succeeding. The group, with 88 offices in 48 countries, makes a million dollars a day for its 156 represented airlines. At the same time, every country manager has been with ALG for more than 15 years. “I am proud that we are an employer of choice in many countries where we operate,” says Dawkins. ALG will always hire local people to man offices. Country managers are given autonomy over profit and loss, hiring and new business prospecting in their markets. The company has 247 staff worldwide. Fifty work in the UK. Dawkins, a 35-year airfreight veteran, has seen ALG prosper as structural changes in the GSA market have brought a

greater professionalism to the business of representing an airline’s cargo business. “Increasingly,” he says, “an airline’s Request For Proposal will be for a number of countries. It does not make sense for a carrier to engage an agent for just one country.” One aspect of marketing that Dawkins is keen to undertake is supporting ALG’s presence at air cargo events. “We go to every air cargo event available,” he says. “We go to raise our profile. Clients recognise us which can be humbling.” The group is looking to bolster its presence in the Asian market by expansion, says Dawkins, over the coming years. Areas where ALG presently has no activity, such as Canada and South America, remain on Dawkins’ radar as potential areas of expansion.

Buoyant and busy year for Kales THE global airfreight market experienced a very strong year, and general sales and service agents (GSSA) also benefitted from the upturn, Kales Group chief executive officer, Peter Kales (pictured) tells Air Cargo Week. He says Kales Airline Services experienced a “strong, buoyant airfreight year”, adding, “The last four months of 2017 were extremely busy, and space was tight to actually every destination you could think about”. The whole airfreight industry had been suffering from weak growth and overcapacity for some time, but this has been much less of an issue in recent times since growth took off at the end of 2016. Kales can confirm this is definitely true for his company wherever in the world you look, saying: “Africa, USA, China, Far East, Middle

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East, and even South America, rates were jumping and yields for airlines going up!” The figures back up the optimistic comments, with the Group moving over 250 million kilos of cargo and turnover of more than €300 million, which Kales says is an 18 per cent increase over the previous year. He is very positive looking into the future and believes GSSAs will remain important players in the air cargo industry. Kales says: “Despite insourcing [of sales] by airlines like AirBridgeCargo, we still feel confident that we do offer something special to airlines and freight forwarders, by being active, reachable, and professional!” Kales has high hopes for 2018, saying: “Our forecast in general is for ongoing growth of airfreight in 2018, seeing economies getting stronger and worldwide expansion is still booming.”

GLOBAL GSSAs

Opportunities arising for ECS to reinvent itself

s the airfreight industry continues to grow, ECS Group chief executive officer, Adrien Thominet (pictured) sees a great opportunity to reinvent itself. In 2017 ECS noted a “nice increase” of freight volumes, mostly driven by pharmaceuticals and e-commerce, while demand was increasing faster than capacity, which helped yields. Several indicators confirm that exports, particularly for e-commerce and consumer confidence remain positive and are holding up well. Thominet comments: “This excellent world economic recovery predicts an optimistic dash of growth in 2018.” At ECS, Thominet says: “In 2017 our managers have shown of strong involvement. This is powering for sure lot of vitality to surrender our 2018 challenges: cargo business is changing and offering a great opportunity to reinvent ourselves. “In 2018, ECS gets in step with the industry’s standards: digitalisation, compliance, new range of innovative services, social medias.” Around the world, Thominet says North America had the strongest financial performance, Europe saw double-digit growth and strong demand on Europe-Asia routes, while Asia Pacific was very strong in specific markets such as e-commerce and pharma. Asia and Latin America will be the focus areas for 2018. The GSA business represents less than 10 per cent of airfreight activity, and with business increasing each year, Thominet says there is huge potential for growth. E-commerce is also transforming the industry landscape so companies have to develop capabilities to optimise new technologies. Thominet says: “They are a real advantage to bring more specific additional services, especially in terms of transparency, visibility and promptness our customers are asking for. Airline needs are changing and we have to adapt ourselves to match them.” The three things GSAs and GSSAs need to focus on are digitalisation, integration and e-commerce, and Thominet says ECS has structured the group around the imperative of transformation in the industry. He says: “We confirmed our will to strengthen our general organisation and we hired dedicated people to lead the transformation, in terms of digitalisation also. We welcomed new talents among our company to provide best and specific services required by our customers. “Beyond the necessity of providing guarantees a GSSA must also be able to attract dedicated people, human resources and top specialists. Hence this is the way we think of 2018. A rigorous and ambitious roadmap.”

AIA and CHAMP work together to implement new booking service AIA Cargo in partnership with Champ’s Traxon cargoWEB+ system has implemented the first stage of its new on-line booking portal service. The system enables the GSSA and its client airlines to offer a professional round the-clock customer service via the AIA website. The system is fully managed and controlled by AIA staff who decide which functions are to be offered and which clients has access to which function. The self-registration of a customer for access is fast and easy. Some of the features include: bookings, overview of products, rates and surcharges, FWB/FSU messaging, allotment and interline bookings, shipment tracking, flight schedules, routing and availability, airwaybill stock control and usage reports Initially the portal will be open for booking on Cypriot carrier Cobalt who AIA are the worldwide GSSA partner. Clients can book on all Cobalt sectors ex-Cyprus to Europe or Europe to Cyprus. The next stages will see additional AIA carriers being added to the portal.

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E-COMMERCE

Miami looks to become leading e-commerce hub

iami-Dade Aviation Department (MDAD) officials met with members of the local air cargo community to plan how to establish Miami-Dade County as a leading e-commerce hub. More than 30 local stakeholders met with the officials on 11 January for the first strategy workshop and heard presentations from e-commerce experts and participated in breakout sessions to gain a better understanding of e-commerce trends, regulations, challenges and potential collaborative opportunities. Miami is the Americas’ busiest airport for international freight, with more flights to Latin America and the Caribbean than any other US airport, putting it in a unique position to leverage the e-commerce boom responsible for $1.85 trillion in worldwide sales in 2016 – a

figure projected to double in the next four years. Market research firm eMarketer forecasts Latin America will be a strong e-commerce growth region with annual sales projected to double from $47.4 billion in 2015 to $84.8 billion in 2019. Miami-Dade County Mayor, Carlos A. Gimenez says: “I appreciate the MIA team for leading the charge to make Miami-Dade County not only the e-commerce hub of the Americas, but a global leader as well in one of the world’s largest growth industries.” Miami-Dade Aviation chief of staff, Joseph Napoli says: “As the cargo gateway of the Americas, and given our increasing trade growth with leading e-commerce regions like Asia and Europe, MIA is perfectly positioned to become an e-commerce powerhouse.

“We look forward to collaborating with our task force partners to develop and implement a strategy that capitalises on this seismic shift in

the air cargo industry.” Pictured above, moderator Dina Maloney kicking off the workshop.

Cross border shopping behind growth

MUCH of the strong recent growth in air cargo can be attributed to the boom in cross border e-commerce, U-Freight chief executive officer, Simon Wong claims. The International Air Transport Association (IATA) reported cargo demand grew 8.8 per cent in November, and Wong comments: “Whilst the fourth quarter is traditionally a strong period in air cargo, we believe that much of the growth can be attributed to the air cargo logistics associated with the boom in cross-border e-commerce activities across the planet.” Wong says that U-Freight’s background in airfreight logistics meant it was quick to see the potential logistics business that

would result from the e-commerce boom, explaining: “We have been a pioneer in developing logistics services for the e-commerce market, which resulted in us being early-qualified by China Customs and CIQ as a licensed Cross-border E-Commerce Enterprise, as well as a Cross-border E-Commerce Logistics Service Provider.” He says U-Freight has been investing in redeveloping a number of warehouses in China, South East Asia and North America to ensure they are better equipped to cater for the ever-growing e-commerce business. Wong adds: “We have also developed systems that can connect e-commerce / e-shop platforms with relevant customs authorities and, which deliver data transparency. This is something that is on offer at all of our facilities around the world that offer e-commerce logistics services.” He also says: “The e-commerce industry, led by China, is a new engine of growth for the global economy, and the value of global e-commerce transactions will only rise with increasing internet penetration and recognition.”

FedEx to launch Trade Networks structure FEDEX is realigning its speciality logistics and e-commerce solutions in a new structure under FedEx Trade Networks beginning 1 March 2018. The elements of the organisation are FedEx Custom Critical, FedEx Cross Border, FedEx Supply Chain, FedEx Trade Networks Transport & Brokerage, and a new company called FedEx Forward Depots with responsibility for Critical Inventory and

ACW 29 JANUARY 2018

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Service Parts Logistics, 3-D Printing, Repair Centre and the FedEx Packaging Lab. The organisation will be led by Richard W. Smith, who says: “This realignment under FedEx Trade Networks will allow us to offer customers the full power of our wide array of unique and competitively advantaged customised services in a way that is even more convenient and intuitive.”

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11 22/01/2018 16:09

LOOKING AT WHAT PEOPLE IN THE AIR CARGO INDUSTRY ARE THINKING ABOUT

Airway Bill talks!

A380: Last hurrah or stay of execution?

was downing the third espresso of the morning as I read the news that Emirates had thrown the A380 a lifeline. It seems the nabobs at Emirates HQ had signed the deal that the boys in Toulouse were betting on. There are some who say that the aircraft was a showcase project financed by the long-suffering European taxpayer. What they paid for was just a larger version of an ordinary aircraft. This is because the A320 introduced fly by wire. The 787 introduced carbon fibre construction, independent oxygen supply and no bleed hydraulic systems. What did the bloated A380 introduce? Just more seats. Not only that, but these more seats were flown by more engines than needed. It’s back to the taxpayer’s pocket again. If Airbus was a normal business having to raise its own capital, the A380 would never have flown. Instead, as the industry was switching to twin-engine operations over the widest oceans, designers in Toulouse were wedded to the past. Apart from its size, the A380 is utterly conventional for its time. Other voices say that the behemoth is an elegant example of why governments should stay out of business. It was launched a decade ago at a time when the 747 was on life support and everyone was switching to long distance twins, production never topped two a month. In my opinion, the aircraft can only make sense with artificial restrictions on hub slots. It’s a niche product. Unfortunately for the lads

in Toulouse the ‘walking freight’ don’t want to use hubs any more. They now like to fly direct. Can’t blame them. In my opinion, most airlines would find it easier to buy one and a bit 777300s. Twin-engine economics and a lower break even mean more black ink rather than red ink on the balance sheet. Then there is the fact that 40 per cent of orders for the A380 have come from one airline – you guessed it, Emirates. For my fellow cargo handlers, the A380 is nothing to write home about either. I read in Air Cargo Week just before Christmas that so few airlines want this aircraft that an Irish lessor, stuck with a number on his hands, is looking to start his own airline to recoup some of his investment. In its lifetime, the 747 had many fans and can have said to have revolutionised air transport in the 1970s. Can the A380 really be said to have revolutionised anything?

Do you share Bill’s views? Let the editor know: james.graham@azurainternational. com or write to: Editor, Air Cargo Week, Robert Denholm House, Bletchingley Road, Nutfield, Surrey, RH1 4HW

Eat your heart out, Jeremy Clarkson! LONDON Heathrow-based freighter forwarder Brunel Air Cargo moved it up a gear when they handled the repatriation of a Lamborghini Aventador for its royal Kuwaiti owner from London to Kuwait. The exotic car, with a £270,000 price tag when new, was handled by the forwarder’s dedicated vehicle transportation division, says Brunel Air Cargo Services commercial director and self-confessed petrol head Mark Scanlon. He says: “We have a separate division at Brunel Air Cargo that handles vehicle relocations that was launched over a year ago. Since then we have handled numerous high value and classical cars.” Last year the forwarder roared into the industry’s fast lane when it moved one of the world’s most expensive automobiles from the US to Scotland. Readers of a nervous

disposition will be pleased to learn the car, a Ferrari 250 GTO worth than $40 million, signed by Enzo Ferrari and built especially for British racing legend Sir Stirling Moss, was handled extremely carefully by Scanlon and his team. Scanlon hired his own team of security men to talk into their sleeves for the car as it made its way across the Atlantic.

Pictured: Your pilots of the future THE Cotswold Airport Aviation Scholarship opened for 2018 applications last Monday with a closing date of Friday 30 March. Twenty applicants will be invited to an interview with the final ten selected for the programme, which runs until August. This unique industry scholarship programme has seen students starting aviation careers. The programme was founded by Cotswold Airport owner, Ronan Harvey, an ex-RAF engineer, aviation expert and successful entrepreneur, who wanted to open aviation career opportunities to young people from the local area. The scholarship programme has been significantly enhanced, with the generous addition of a sponsorship package from Gulf Aviation. Suzannah Harvey, CEO of Cotswold Airport says: “We are thrilled to be running our Aviation Scholarship programme. I would encourage any young person with an in-

terest in a career in aviation to apply for a place; not only is it a fantastic experience but it really helps the students take their first steps towards what can be a very rewarding career, whilst allowing them to build contacts and make new friends at the same time.” Students from Gloucestershire, Wiltshire, Oxfordshire, Bristol and Berkshire can apply. Applicants must be 14 to 18 years of age on August 6 2018. Applications can be submitted online at www.cotswoldairport.com.

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