ACW 5th December 22

KUEHNE+NAGEL RECEIVES ITS FIRST BOEING 747-8 FREIGHTER

Kuehne+Nagel has put into operation its first Boeing 747-8 freighter as part of the long-term charter agreement with Atlas Air, expanding its airfreight network. This aircraft is the third of four new Boeing 747-8 freighters Atlas Air ordered in January 2021 and is the first of two 747-8Fs Atlas Air will operate for its customer Kuehne+Nagel.

During the official ceremony at the Boeing Everett Delivery Centre, the Boeing 747-8F under the name ‘Inspire’ was handed over to Kuehne+Nagel. The freighter will support Kuehne+Nagel customers with highly reliable service, reduced transit times and minimised risks. In addition to the transpacific routings, the new service will be linked with Kuehne+Nagel Intra-Asia network to provide customers with better connectivity within the growing region of Asia Pacific.

“It is a very special moment for us to see Kuehne+Nagel 747-8F ‘Inspire’ taking off. Together with the very last 747-8F that we

named ‘Empower’, the aircraft will support our customers with reliable and flexible solutions globally, continuing the legacy of the most incredible aviation programmes in history. We are delighted to celebrate this day with our partners Atlas Air and Boeing and look forward to seeing our aircraft connecting the world,” Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, said.

“With Atlas Air taking delivery of the final 747s for its customer Kuehne+Nagel, this iconic Boeing aeroplane will continue to move cargo around the world for decades to come,” Kim Smith, Vice President and General Manager of the Boeing 747/767 Programme, said. “As we say goodbye to the ‘Queen of the Skies’, we’re proud of her legacy as an aeroplane that propelled aviation innovation and later laid the foundation of our family of freighters.

The Boeing 747-8F serves an incredibly important role in global airfreight, with technology that allows for lower fuel

consumption, higher capacity and unique noseloading capability.

“This 747-8 delivery underscores the importance of our long-term strategic partnership with Kuehne+Nagel and our commitment to support their continued growth and expansion,” John Dietrich, President and Chief Executive Officer, Atlas Air Worldwide, said. “We are very pleased to provide their first dedicated aircraft which will proudly fly in custom Kuehne+Nagel livery. The two 747-8Fs we will operate for Kuehne+Nagel will add more capacity and versatility for their network.

Atlas’ investment in these new aircraft underscores our ongoing commitment to environmental stewardship through the reduction of noise, aircraft emissions and resource consumption. With its advanced design and engines, the 747-8F offers a 16% improvement in fuel use and CO2 emissions per tonne and a 30% smaller noise footprint compared to the previous generation of aircraft.

DHL flies Western lowland gorilla to London Zoo

Third runway at Hong Kong International Airport officially commissioned

THE Third Runway at Hong Kong International Airport (HKIA) was officially commissioned on 25th November, marking a key milestone of the airport’s expansion into a Three-runway System (3RS).

gorillas.

The 5ft 4ft tall gentle giant has arrived to lead the conservation zoo’s current troop, females Mjukuu and Effie, and youngsters Alika and Gernot, in the family’s Gorilla Kingdom home – with high hopes the match-making effort will lead to a further increase to the gorilla population.

18-year-old Kiburi, who travelled from Zoo Loro Parque in Tenerife, was given the VIP treatment by DHL for the 1,903-mile door-todoor journey – travelling in a custom-built crate supported by a dedicated team of zookeepers, aircraft engineers, cargo handlers, security teams, pilots and drivers.

“Kiburi enjoyed an in-flight meal of nutritious leafy greens, snacked on leeks and a banana and had a refreshing drink of cold fruit tea during his first-class trip,” gorilla keeper Glynn Hennessy explained.

The exciting move was four years in the making. Following the sad passing of London Zoo’s male Kumbuka in 2018, ZSL London Zoo began the search for the perfect male to take his place, working with the European Endangered Species Breeding Programme (EEP) co-ordinator for Western lowland gorillas, which holds detailed records on each gorilla in the programme.

“We wanted to find a gorilla to lead the troop in Kumbuka’s stead, which is an important part of a healthy gorilla group’s social structure,” Glynn said. “We were excited when they suggested Kiburi – a playful but authoritative silverback who had just come of age – but we wanted to make sure, so we flew out to meet him last November and spent five days getting to know him and watching how he interacted with other

“We found him to be a calm, friendly individual and a great fit for our own gorilla family’s dynamic. He loves a lie-in in the mornings and is more active in the afternoon, which is why we spent the past few weeks installing lots of fun new climbing apparatus for him to enjoy – when he ventures out of bed!”

Kiburi will spend the next few weeks exploring the rest of his new Gorilla Kingdom home – which includes a lush private island, complete with hidden caves, giant jungle gym and a flowing stream – and slowly being introduced to his new troop, in time for their first family Christmas.

“Helping Kiburi move to London has been a huge privilege. The logistics effort behind transporting him was no mean feat but our team of experts, working closely with ZSL London Zoo and Loro Parque, went to every length to ensure his journey was safe and comfortable. Everyone at DHL is very invested in this conservation move, and we look forward to seeing Kiburi enjoying his new Gorilla Kingdom home,” Roy Hughes, EVP Network Operations & Aviation Europe at DHL Express, said.

“The 3RS will significantly increase the passenger and cargo handling capacity of HKIA. With the distinct advantages of the

in 2016, we have overcome many difficulties and challenges. The project is progressing on schedule with the new runway starting operation in July this year. I would like to express my deep gratitude to all airport colleagues for their tremendous efforts in completing the new runway, which provides fresh impetus to economic growth. The

strong support from the Motherland and our connectivity to the world, Hong Kong will maintain and enhance its status as an international aviation hub, to better dovetail with the macro strategies of the 14th FiveYear Plan and Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area,” Chan Kwok-ki, Chief Secretary for Administration, said.

“Since the construction of the 3RS started

Airport City is also developing into a new landmark. These achievements are nothing short of miracles against all odds,” Jack So, Chairman of AAHK, said.

The construction works of 3RS started in August 2016. The formation of 650 hectares of land (equivalent to 34 Victoria Parks) through reclamation was completed in around four years. The 3,800m-long runway started operation in July 2022.

ETIHAD Cargo has been awarded Centre of Excellence for Independent Validators (CEIV) Pharma recertification by the International Air Transport Association (IATA). The carrier is one of only 37 airlines to hold IATA CEIV Pharma certification globally.

The UAE’s national carrier first achieved IATA CEIV Pharma certification in 2019 in conjunction with its hub at Abu Dhabi International Airport and Etihad Airport Services Cargo. Etihad Cargo went on to become the first airline in the Middle East and only the third globally to hold the trilogy of CEIV Pharma, CEIV Fresh and CEIV Live Animals certifications.

“Etihad Cargo is proud to achieve IATA CEIV Pharma recertification following an extensive audit. This industry-wide standard ensures Etihad

Cargo’s operations and staff comply with all applicable standards, regulations and guidelines expected from pharmaceutical manufacturers. The benefits of CEIV Pharma certification extend to Etihad Cargo’s customers, who can be assured the carrier’s dedicated pharma cargo management constantly monitor and analyse the quality and safety of Etihad Cargo’s PharmaLife product performance,” Martin Drew, Senior Vice President – Global Sales & Cargo at Etihad Aviation Group, said.

“Achieving recertification and providing world-class pharmaceutical logistics solutions demonstrates Etihad Cargo’s capabilities in seamlessly transporting life-saving medicines and the latest treatments around the world from the carrier’s Abu Dhabi hub.”

A Western lowland gorilla named Kiburi made his debut at ZSL London Zoo after DHL Express flew the whopping 193kg silverback to London as part of an international breeding programme for the Critically Endangered species.

Partnerships power United Cargo

IN September, United Cargo and Emirates SkyCargo signed a landmark agreement, expanding cargo interline options and blocked space agreements. This cooperation, and others like it, are designed to provide customers with greater access to destinations globally.

By combining services with leading airlines around the world, United Cargo has achieved an interline network that can reach nearly everywhere in the world, ensuring shipments can get where they need to be in a swift manner. This has already been seen in joint venture alliances with All Nippon Airways and Lufthansa Cargo, providing shared product offerings, technology and processes to ensure customers receive high quality service from each carrier.

“I believe in partnerships but I believe in bilateral partnerships,” Jan Krems President of United Cargo, said. “The joint ventures we have with ANA oneon-one, Lufthansa one-on-one and now the interline agreement with Emirates SkyCargo one-on-one, we can really find synergies.”

Re-opening doors

International events have presented challenges for airlines, as the war in Ukraine has resulted in Russian airspace being closed. Earlier this year, United temporarily cancelled two routes between the US and India due to the situation, halting travel from San Francisco to Delhi and Newark to Mumbai. United also rerouted flights between Newark and Delhi, as well as between Chicago O’Hare and Delhi.

While United wasn’t alone in being impacted by the closure of Russian airspace, with the 36 nations being impacted, the situation inevitably had an effect on their operations, preventing passenger and cargo transportation on certain routes. By partnering with Emirates SkyCargo, United can offer their cargo customers additional routings to India and other destinations.

“It’s a great collaboration. For example, we’re currently not allowed to fly over Russia to India, so we lose a lot of payload there. But when we have additional opportunities with Emirates via Dubai into the Middle East, it opens up so many more markets,” Krems said.

Of course, the cooperation works both ways, with Emirates, and other partners, gaining access to United’s strong network throughout the US market, with the airline running 5,000 flights a day that they are able to use. “I really see a positive partnership there,” Krems added.

Future opportunities

With strong joint venture and interline agreements already in place, it’s only natural to wonder whether United is looking at further enhancing the global network of destinations it’s able to offer customers access to. However, it seems that the airline’s focus is currently on getting the most out of its existing network, rather than simply growing for the sake of it.

“Will we have more? You can have many partnerships but, if you don’t have the resource to really build it to the next level, then you better not do it,” Krems said. “We don’t have more partnerships coming up at the moment.”

No signs of any Q4 air cargo peak this year

GLOBAL air cargo volumes have remained stubbornly flat in the last two weeks after dropping in the first few days of November, with this year’s fourth quarter more of a plateau rather than the usual seasonal peak, the latest preliminary figures from WorldACD Market Data indicate.

At a time when air cargo’s annual peak season is usually in full flow, the most that can be said is that the progressive weakening trend of recent weeks and months has flattened out in terms of tonnages going into the second and third weeks of November, although the average rate saw a further slight decline.

Figures for 14th to 20th November show stable worldwide flown tonnages compared with the previous week, and a 1% drop in average prices.

Comparing the overall global market with this time last year, chargeable weight was down 17% compared with the equivalent period in 2021, despite a capacity increase of 3%. Worldwide rates are currently 24% below their levels this time last year at an average of $3.28 per kilo, despite the effects of higher fuel surcharges, but they remain significantly above preCovid levels.

Let your voice be heard at the 2023 air cargo Southeast Asia conference

At this conference, influential speakers, global industry players, policymakers, and government leaders will identify best practices, discuss emerging trends, and discuss real-life challenges. With topics ranging from digitalisation, sustainability, resource management, and volatile markets, the conference programme will address regional issues affecting the industry.

Over two days, the conference will feature more than 50 speakers sharing insights and exciting outlooks into the future of transportation, logistics and air cargo, so this is a chance for companies to get involved in the conversation and be recognised as an industry thought leader. The deadline for submissions is 8th February 2023.

“Interested in sharing your organisation’s case studies and the most innovative initiatives, solutions, and projects related to Digitalisation, Resilience, and Sustainability? Looking for a centre stage to showcase your solutions that will help businesses stay competitive, resilient, and sustainable? If the answer is yes, now is the time to capitalise on a new business opportunity that will boost your marketing efforts to reach more customers,” Messe Munchen Asia said in a press release.

“Discover the space where global decision-makers and quality buyers at all stages of their buying journey convene. Make your mark at tlacSEA 2023 conference with our suite of sponsorship options to increase your exposure and gain access to more exclusive networking experiences. This will strengthen your connections to the global market and help your business to reach new heights,” the conference organisers added.

ORGANISERS of the transport logistic and air cargo Southeast Asia Conference 2023 have invited people across the industry to share their stories, case studies or innovations to inspire others with their knowledge, as the event takes on the themes of ‘digitalisation, resilience and sustainability.’

Oman Air welcomes ‘future leaders’

OMAN Air has officially inaugurated its highly anticipated Future Leaders Commercial Graduate Programme. A special induction ceremony was held for the 11 Omani graduates at the Crowne Plaza Muscat OCEC, under the auspices of His Excellency Sheikh Nasr Amer Al Hosni.

After a rigorous selection process which began in July, the candidates are now gearing up to begin their exciting two-year journey.

“Oman Air has done a wonderful job designing the Future Leaders Programme, which clearly demonstrates the extent of its interest in empowering more Omani cadres and nurturing them for various leadership and highly specialised positions in the field. Without a doubt, the 11 new graduates will constitute a new building block in the commercial aviation sector. The programme represents an integrated strategy for human resources management and an example of the constructive partnership between the Ministry of Labour and the private sector. Through such efforts, we aim to create a stimulating work environment that follows world-class standards, and ensures the achievement of the aspirations and goals of Oman’s 2040 Vision,” Sheikh Nasr Amer Al Hosni said.

Cainiao enters strategic partnership with Nestlé

CAINIAO Network has announced that it has entered a strategic partnership with Nestlé China. The partnership will focus on deepening collaboration across Nestlé’s smart supply chain and its brands such as Starbucks at Home, Hsu Fu Chi, Wyeth and Totole. Key areas include Nestlé’s B2C and B2B fulfilment businesses, digitalised supply chain and sustainability, as well as improvements to direct-to-consumer (DTC) fulfilment, logistics automation, Internet of Things (IoT) technology among others.

As part of this partnership, Cainiao and Nestlé have jointly established an automated DTC fulfilment centre in Jiangsu, China. Leveraging its expertise and experience in supply chain management and smart logistics technology, Cainiao has provided tailored

logistics solutions and introduced automated systems to enhance productivity and reduce manual operations in the facility.

“The launch of Nestlé’s DTC fulfilment centre marks a new milestone in our longstanding partnership. With a focus on long-termism, we strive to support Nestlé with holistic and sustainable supply chain services,” Wan Lin, CEO of Cainiao Network, said.

“Upholding a consumer-centric operation and business philosophy, we strive to provide consumers with ‘farm-to-table’ product offerings. Together with Cainiao, we believe we can establish an efficient, responsive and resilient supply chain with a human touch,” Tony Domingo, Senior Vice President of Supply Chain and Procurement, Nestlé Zone Greater China, added.

VIRGIN ATLANTIC CARGO LAYS OUT PLANS FOR FUTURE FREIGHTER OPERATIONS

Delivering $6.8 trillion worth of goods annually, Virgin Atlantic Cargo is one of the leading players in the global air cargo industry, moving products and fresh produce every single day to businesses and consumers around the world. Offering a range of services, including for general goods, priority items and sensitive cargo, the airline looks to move everything from machinery parts to dangerous goods and personal effects to pharmaceutical items.

Foray into freighter operations

Virgin Atlantic Cargo expanded its all-cargo network with freighter operations to Billund Airport earlier this year, using an Airbus A321F operated by Titan Airways to run a service three times per week from the Danish site to Heathrow Airport.

The move came amid strong cargo demand, with the flights, offering 28 tonnes of capacity available each flight, initially being launched on 3rd August, aiming to cater for goods that was being moved by trucks from Scandinavia.

At the time, Virgin Atlantic Cargo stated that the expansion was aimed at supporting “the airport’s ambition to grow its airfreight business and establish the cargo industry at Billund.” However, only a few months later, the airline announced that it was reducing the freighter services to Billund, with the final regular service on 2nd October.

Speaking to Air Cargo Week, Virgin Atlantic Cargo’s Managing Director Phil Wardlaw explained the airline’s actions: “There were market dynamics that actually meant it was profitable and it has been profitable for us - a significant profit. And it gave us the additional benefit of being able to protect our slot portfolio.” However, discussing the decision to swiftly cut back services, he accepted that the market was simply “not as strong as it was” when the airline initially decided to launch the regular services.

Continuing cargo-only flights

Despite the decision to reduce the freighter services, Wardlaw was clear that Virgin Atlantic Cargo will continue running cargoonly flights. “Right now, we are doing that on some of our own aircraft, where we have some availability, predominantly midweek but there is a little bit of weekend availability.”

With regards to the Airbus A321F operated by Titan Airways, Virgin Atlantic Cargo will continue to operate it as and when the airline sees demand in the market. “What we have done is extend that contract with Titan but not on a full-time basis, so it will be much more tactical in its nature,” Wardlaw added. “Where we see the market on certain days of the week and on certain routes, then we will utilise that aircraft to continue cargo-only flyingcertainly to the end of this year.

However, as expected, despite the interest in cargo-only services and freighter operations, Virgin Atlantic’s focus will remain on being a passenger airline. “Our [cargo] network is largely determined by the passenger network. We obviously contribute to those businesses cases and we have a significant input on the businesses case on certain routes. But, I think, our core is a passenger network and will remain so for the foreseeable future,” Wardlaw said.

Changing routes

In October, after 30 years, Virgin Atlantic was forced to suspended services from Heathrow to Hong Kong, citing issues related to the closure of Russian airspace. “Significant operational complexities due to the ongoing Russian airspace closure have contributed to the commercial decision not to resume flights in March 2023 as planned, which have already been paused since December 2021,” the airline said at the time.

“It was a great route for us pre-pandemic,” Wardlaw said. “Hong Kong specifically was a very tough decision after 30 years but, with the operational complexities and the market dynamics, certainly in the short term, we didn’t see it being a good route for us.” Although operations have now ceased, Virgin Atlantic isn’t closing the door to Hong Kong completely, leaving the situation under review going forward.

“As we expand our fleet and our network across two to three years that route will remain under evaluation, as will other key Asian roots and hubs that we hopefully will move into in the coming years.”

Despite the setback in Hong Kong and the challenges around operating in Asia caused by the pandemic, Virgin Atlantic is intending to go back into Shanghai on the 1st May.” That’s our position and, as we see restrictions beginning to ease, we’re hopeful that will be the case despite the fact that we do expect Russian airspace still to be closed to us,” Wardlaw stated.

“There’s no other routes that are at risk at the moment. Actually, quite the opposite. We will be making some announcements shortly on new routes, which are kind of aligned to the new fleet acquisitions we’re making,” Wardlaw said.

Alongside the opportunities that exist in regions, such as Asia, Virgin Atlantic is looking at areas such as Turkey, where there is the potential for connectivity. “It is a very significant cargo market, so we’re looking and hopefully that will give us some additional feed,” Wardlaw explained.

“If we do see opportunities for direct flow in and out of the region, then we will keep that under evaluation. Having a GSA there ready and willing to supplement that for us is a good move,” he added, citing the recent appointment of Leisure Cargo as the airline’s new GSA in Turkey.

“There’s no other routes that are at risk at the moment. Actually, quite the opposite.”

Poland’s new transport development programme is expected to serve tens of millions of passengers from 2028, integrating air, rail, and road networks to improve the flow of passenger traffic and cargo transport through the region. The new greenfield airport named Solidarity Airport, the construction of which was initiated by the Polish government will be strategically located in the centre of the country between the capital city of Warsaw and Poland’s third largest city, Łódź.

Boosting connectivity and ease of mobility

STH rail investments include a total of 2,000 kilometres of new lines, in particular highspeed railway lines, to be built by the end od 2034. The STH Rail Programme consists of a total of 12 railway lines, including 10 “spokes” connecting various regions of Poland with Warsaw and the Solidarity Airport. The new network is expected to provide access within a maximum of 2.5 hours from most major Polish cities to the new airport and the country’s capital. What is more important, the construction of the Solidarity Transport Hub will provide much more convenience, saving travelers’ time and money. Planning a trip abroad will no longer require hours of searching for connections or using transfer hubs in nearby countries. Instead of that, travelers will be able to reach such destinations as Australia, South America or Africa directly from the center of Poland via an airport that will be connected by high-speed railway network to provinces and cities across the country. By 2060, the Solidarity Transport Hub is about to attract ca. 850 million additional passengers, according to air traffic forecasts by the International Air Transport Association (IATA). It is expected to reach 40 million passengers in 2035, 50 million in 2044 and 65 million in 2060.

STH moves forward

Planning and preparatory work for the implementation of this largest infrastructure investment in Poland for over 70 years began in 2017. In the first half of this year alone, the investor’s variant of the Solidarity Airport was presented, along with the accompanying infrastructure. More than a dozen months ago the STH company has launched hydrogeological studies (drilling, water and soil sampling, laboratory tests) at the airport construction area. At the same time, the nature inventory was completed and the nature inventory report was finalised. Contractors have also been selected in the tender for preparatory/construction work at the airport construction site, and a number of other key tenders have been announced..

To respond to ahead needs, the STH company announced, among others, preliminary market consultations for the implementation of con struction works for railway investments. Now, the STH company conducts preparatory works (e.g., feasibility studies) at 1300 km out of 2000 km new railway lines. The whole railway part of the STH project should be completed by 2034.

Enhancing security

Even though the Solidarity Transport Hub is dedicated to civil aviation, the investment has been recognised by former commander of US ground forces in Europe General Ben Hodges for capability and capacity that “no other transport hub in Poland or elsewhere in Eastern Europe can match”. This allows to increase the security of the region by providing it with the appropriate transport capabilities to enable the smooth and efficient transfer of military units, equipment, goods, or humanitarian aid when needed. A significant advantage of STH, compared with other similar projects, is the intermodality and excellent connection of the airport with every part of the country and key European destinations.

Despite its “civilian nature”, STH is also of significant importance from the point of view of our country’s and Europe’s defence. Of course, it will not be a military base, but nevertheless an extremely important part of NATO’s eastern flank – If only because of significant increase of military mobility,” said Minister Marcin Horała Government Plenipotentiary for the Solidarity Transport Hub.

Taking care of the environment

Currently, air cargo usually arrives in Poland by landing and taking off from airports in nearby countries before making the final journey to the country by road. This means that goods reach Poland in the least eco-friendly way and customers are paying more for goods due to increased transport costs. The construction of STH will solve these problems, reducing the negative impact of transportation on the environment and reducing costs for domestic consumers.

IATA forecasts that the Solidarity Airport could gain up to 20% of market share in Central and Eastern Europe in the short term. Without it, Poland risked missing out on 35 million tonnes of cargo by 2060. Instead, it has a potential to become one of the largest cargo hubs in the region, handling 1.76 tonnes per year by 2060, according to IATA.

International cooperation

At the beginning of the summer vacations, representatives of the boards of RB Rail AS and STH met in Riga to discuss the possibilities and forms of cooperation. As a result, the both parties signed an agreement aimed at coordinating of plans, activities, and the exchanging of expertise.

Rail Baltica is a greenfield rail transport infrastructure project aimed at integrating the Baltic countries with the rest of the European rail network. It foresees the construction of a new 870 kilometre-long electrified double-track railway line through the three Baltic countries and connecting it to Poland and Finland. The width of the new railroad line will be 1435 mm (standard European gauge) and its route includes: TallinnParnava - Riga - Panevėžys - Kaunas, the Polish-Lithuanian border, and the KaunasVilnius connection.

“The countries of the Central and Eastern European region can bring unique value to the entire EU. The Solidarity Transport Hub iscommitted to developing a common railway network for our region. Signed agreement is a major step towards cross-border integration leading better connections and greater cohesion”- said Mikołaj Wild, CEO of STH.

Solidarity Transport Hub set to integrate air, rail and road transport in Poland, boost people’s mobility and improve supply chains in Europe

CATHAY PACIFIC EYES EXPANSION AFTER CHALLENGING YEARS

The last few years have posed a tricky time for a number of airlines and cargo operators, particularly those that operate in Asia but for Cathay Pacific, which calls Hong Kong home, their optimism and enthusiasm for the region hasn’t been dented.

“Cathay Pacific is a 75-year-old brand and Hong Kong has always been known as a central point,” Rajesh Menon, Regional Head of Cargo - South Asia, Middle East and Africa at Cathay Pacific Airways, said. “To be in a place where you become the carrier of choice, when it comes to cargo, Hong Kong is the ideal location for us.”

“We are proud to call Hong Kong our home because it remains a premier air cargo location,” Menon explained, highlighting how, out of the five million tonnes of cargo handled by the hub in 2020, Cathay carried 1.3 million tonnes of it.

Mixing passenger and cargo operations

While some airlines chose to focus on pushing resources towards passenger services or cargo operations, Cathay Pacific sees great merit in mixing the two. Instead of viewing one or the other as a side project, the airline recognises that both sides complement one another and help to bolster the airline as a whole. “As far as the importance of cargo is concerned, I think it’s been equally important,” Menon stated. “We are making business happen for us when it comes to cargo and the passenger side.”

With bellyhold capacity available for cargo on passenger routes, Cathay Pacific has added more flights for travellers domestically and internationally, helping it to cater to the growing demand for cargo transportation, as e-commerce booms and countries become increasingly interconnected.

This desire to merge the two sides of the airline into one cohesive unit is reflected in the company’s four-part vision: expertise, quality, innovation and people. “These are the four differentiators [between us and our competition] that we continue to invest and develop solutions for,” Menon added.

“An airline plays a vital role to the entire economic activities of a trading hub and region. That’s why we came in and that’s why we keep on investing because Hong Kong always wanted to see that economic growth. We saw that opportunity and we expanded around it.”

Collaborative and customer-centric

The recognition of the importance of collaboration within the airline’s own operation is carried over into its work alongside other parts of the airfreight industry. Having implemented Cargo iQ’s Freight into Warehouse control (FOW) and Freight out of Warehouse control (FOW), Cathay Pacific is focused on improving the visibility and efficiency of warehouse operations.

“Freight forwarders, GSAs, the trucking companies, everyone comes together to create process that is seamless,” Menon explained. “Through CargoiQ, we will build a process which is a recommended practice that lays out the standard and process, so that everyone is aware what is expected and all the stakeholders can actually see how things are happening.”

This level of collaboration throughout the logistics chain works to ensure that all elements are coordinating efficiently but also working to improve by sharing best practices. “Being a primary member who’s always been active in cargo, we really feel that the customer has the right level of transparency and complete visibility,” Menon said.

This ability to better tailor services to what customers are looking for is crucial to Cathay Pacific’s goal of becoming the world’s most customer-centric air cargo services provider, having been recognised in the past for its highly ranked operations throughout the challenging pandemic period. “The customer chooses his level of service and knows what he can expect from that. It could be the service or the ease. We are giving quality and standards in each level.”

Shaking off the impact of the pandemic

While passenger operations were particularly affected by Covid restrictions, seeing travellers grounded due to border closures, cargo continued to be an important performer for the airline, supporting it financially during a challenging period.

“Cargo was doing the normal business because Hong Kong is known as a trading zone. That continued and we were part of the whole journey, Menon said. “Over the last two years, airline cargo was the only thing that made revenue.”

Although the airline did experience a “small slowdown” because of the strict measures imposed on Hong Kong during the pandemic period, Menon was pleased to highlight how the situation is returning to a sense of normality.

In recently released figures, Ronald Lam, Cathay Pacific’s Chief Customer and Commercial Officer, laid out how the airline’s cargo volumes are 10% less than the same time in 2021, as they are now flying fewer cargo-only passenger services. Overall, the airline is now operating at around 63% of pre-pandemic cargo flight capacity, as

of October.

“Our expanded network in Europe was a bright spot with doubledigit month-on-month growth in October as we resumed more of our passenger services. This provided our cargo customers with more options, especially for specialised shipments such as pharmaceuticals,” Lam explained.

Continued growth

Having recently opened its newest facility at the Cathay Pacific Cargo Terminal - a fully temperature-controlled area dedicated to the handling of pharmaceutical products - the airline is committed to further investment in the region.

“There’s a quality and a commitment which we can give. Customers can choose and ensure what they are going to get with that,” Menon explained. “That’s why our motto is that we need to develop so we have solutions which are very customer centric.”

The Pharma Handling Centre, for example, now provides real-time temperature monitoring, a temperature-controlled dock shelter, multiple charging points and sustainable services. It’s also connected directly to the container handling system at the airport, ensuring prompt acceptance, storage and delivery.

“We just keep on upgrading our facilities,” he added. “I know for sure that our role will be much bigger and it’ll just continue to grow.”