To Our Readers, The way that we celebrate 35 years is to bring back all the stories and people that have populated these pages for another turn, along with newly discovered friends and colleagues. We were once a local newspaper published for the cargo people in the United States. In 1975, we were the only monthly Air Cargo News newspaper in the world. Today, as Air Cargo News FlyingTypers, we are once again alone as the oldest (and still the only E- mailed), thrice weekly, 140 issues-a-year air cargo news source. “I don’t know how you do it—to publish so often and with so much content,” is a comment we often hear. Air Cargo News FlyingTypers does it because throughout our history we have worked to forge a bond of trust between our readers and ourselves. Today we are the number one news and features air cargo publication on the planet in terms of every known metric. When someone says I read it in FlyingTypers—believe it. From our readers has come the juice that powers our desire to continue to serve air cargo. The good news is that 35 years after beginning this journey into air cargo, we are still around and Geoffrey Arend and Sabiha Arend at the remain young in our thinking with the involvement of a next generation of Air Cargo News FlyingTyp- National Historic Trust in May 1986. ers. Of course, nothing is for certain and anything can happen, but our plan is to continue as a close- to-the-industry family business, just as we have always been. It is quite hopeful and a sign of the times that we now include our daughter, Flossie, as executive editor of Air Cargo News FlyingTypers. With all the ideas and innovations, the triumphs and the challenges, Air Cargo News FlyingTypers intends to be the first air cargo publishing outfit in history to carry on from generation to generation as a family business. But let’s not get ahead of ourselves. I plan to be around at this station for a long time to come. We have exciting plans ahead and lots of ideas that will be revealed as 2010 continues and 2011 unfolds, including an entirely new and original in depth presentation of the history of air cargo delivered free of charge, without gatekeepers, that will allow readers to go interactive and share the experi- ence anywhere in the virtual world. So to you, a word of thanks for the years, the memories, and the loyalty. We are grateful for the opportunity to be a part of covering the global air cargo story.

Good wishes,

Welcome To Air Cargo News 35th Anniversary Issue n the interest of the medium and the industry Both Part One and Part Two of our Gala 35th we serve, our issue is being presented in two Anniversary Celebration will be presented and parts. published several times during upcoming months IIn Part One, we present the first of our new as an entire document, and the entire document quarterly Air Cargo News, with news and features will feature advertisements (both old and new), in our original broad newspaper format delivered with all content fully indexed for history buffs, digitally. scholars and folks who love air cargo at www. This will be a comprehensive report of what aircargonews.com beginning in a few weeks. is important now, followed by a journey back a When you look back on thirty-five years, dust- decade to 2000 in order to cover events as we ing off all the old newspaper issues dating back to reported them between 2000 and the present. 1975, what emerges is an education about what We are pleased to report that Air Cargo News was happening and what we did about it. Quarterly will appear as an in depth reader and As much as I would like to think we have some reporter of the industry four times yearly, begin- original ideas, these pages reveal that we have ning in 2011. always approached covering air cargo the same We think that by combining articles of unique way, whether in print across USA or via the virtual common interest and news value in a longer venue worldwide. format we can deliver additional material to our Air Cargo News was “a conversation” in 1975, readers, who are looking for a deeper view of although that description of what we do is much developing trends. in vogue, now that the world Internet has given FlyingTypers, the number one virtual air cargo rise to social media. publication in the world, is also featured here in But back in 1975 and 1982, we were there writ- Part One of our Gala 35th Anniversary Celebra- ing about air cargo, people, trade shows, clubs tion, as FT pioneered the new age of global instant and women in the industry in pretty much the same air cargo publications a decade ago. manner as we do today. Part Two, which will be presented shortly after, It’s exciting to be once again at the forefront will include Air Cargo News from 1975 until 2005, of air cargo publishing, at the opening of an era with stories of the people and companies that cre- that includes the ability to deliver our content via ated the modern air cargo industry. a blizzard of electronic media devices. As a special bonus, we are including an exclu- It’s amazing to think that we have created Generations at Air Cargo News Flying- sive series tracing the history of aviation from its nearly 100 video interviews, and we will continue beginnings during the dirigible and bi-plane era to innovate in order to better serve a new genera- Typers—Flossie and Geoffrey Arend. up to the jet age. tion of air cargo people. The Original

Volume 35 An American Family-Owned Air Cargo Publication Since 1975 Anniversary Issue CAll For CNS To Internationalize We l l, the ge nie is out of the bottle – D r. Otto ste pp ed on the toothpaste t ub e at this year’s CNS, and in its wake the re has b ee n e ncourag ing feedb ack f rom our reade r s, D r. Otto hims e lf, Olive r Evans, Angelo Pusate r i, Guente r Rohr mann, I saac N ijankin, and Buz Whalen, just to name a few. Wait – w e almost for got IATA; the y responded too, e x ce p t that it has b ee n b y means of a deafe ning sile nce. From an or g anizat ion not e x ac tly know n for b e ing press ret ice nt, that is rather st range.

Hav i n g g o t ten t h e b a l l rol l i n g , i t’s comp e l ling is an apparent con- t i m e to a t tem p t to su m m a r i ze, a l b e i t vergence of issues bubbling up prem a t u rely : cl e a r ly I ATA i s n o t a n d to the sur fa ce at the same time. has not b e en the focal p oint here. T he D i re c t a i r l i n e c a r go a n d for - d i s c u s s i on i s a b o ut a i r l i n e c a r go a n d warders’ representation, minus f re i g h t for w a rder re pre s en t a t ive s ex - the medd lesome and self-ser v- plor ing new ways of cooper at ion that ing serv ices and hijacking of the can best ser ve their common needs and a gen d a by or g a n i z a t i on s su ch interests, ways that w il l fall outside the as IATA, is clearly an ob je c t ive. box, leapfrogging the collective baggage An open forum for discussion is a ccumulated over the past 25 years. w hat CNS used to prov ide and I cannot p e ek into Dr. O tto’s mind that, at least on the surface, is all to e ven t r y to i n ter pre t w h a t h e h a s Mr. Evans expects - networking. b e e n t h i n k i n g ; t h e re f o re , i t’s b e s t to T hat is a ver y different take. st ick to w hat he said this past May in S ome persp e c t ive may be in his keynote spe e ch – to paraphr ase – ‘a order – C N S w a s fo u n de d i n joint air line/for warder for mulation of 1985 following the 1984 revoca- indust r y concer ns in p olit ical for ums t ion of ant it r ust immunit y for i s e s s e n t i a l .’ He s aw C N S we l l p o s i - IATA in the United States. What t ioned in such a role and suggested the t h a t m e a n t a t t h e t i m e w a s CNS unique mo del extended to other that matters gover ne d by IATA countr ies. agency resolutions were il le g al We c a n a l l rea d i n to t h i s a s mu ch from that p oint on. T he inten- o r a s l i t t l e a s we w a n t , co l o re d by tion was for CNS to be operated e ver yone’s p oint of v iew, ba ckg round, at arms’ length from IATA. This pr ior it ies and exper ience. What I find include d the prov ision of ser v ices to Pg-2 CNS-From Pg-1 elsewhere has recognized the need for a new relationship, one that is not airlines and forwarders, which were governed by IATA dictate. With the real The First Call available elsewhere within the agency, value of accreditation being questioned (Miami-May 3 2010 Exclusive)—Lufthansa Cargo executive board member, in particular the CASS framework. A by forwarders, the search for an effec- Andreas Otto, pleads for an expansion of CNS (Cargo Network Services), few other things differentiated CNS – it tive representative body has thus arisen the North American arm of IATA. worked with non-IATA airlines as well independently in both the carrier and “A joint formulation of the common concerns our industry is confronted as with non-IATA accredited agents. forwarder executive minds and it is with in political debates is essential,” the manager pointed out in his keynote What has not been news were the being expressed openly. remarks, addressing an audience of 450 delegates gathered at the 2010 CNS persistent encroachment attempts by Before alternatives can be seriously Partnership Conference held in Miami on Monday morning. IATA over time. Breaking off CNS and considered, one would indeed be well “CNS could become a kind taking it global has some history and served to determine the exact objectives of moderator and driving for depending on who tells the story, al- and results carriers and forwarders wish solving pressing topics shared legedly the forwarders would have gone to achieve. If the past is any indication by cargo airlines, forwarders and for it but the airlines were reluctant. of the future, the debate will not be truckers,” Herr Otto said. He Trying to look at the 2010 CNS easy and certainly not short. It really regretted the absence of a com- through the 1985 “arms’ length” from all depends on expectations, and there mon voice of the industry. This IATA construct, one can only conclude is hope those will be expressed clearly communicative gap could be the DOJ antitrust folks must have been and mutually agreed upon. filled by CNS, as in instances of way too busy chasing fuel surcharge The settlement mechanism could impending night flight restric- infractions of late. For example, under be provided by a number of global tions at major hubs like Frank- “Services” CNS lists: banks such as Citicorp and the cost fort, or security regulations that • CASS USA negotiated. governments and regulators are As national and regional secu- currently tightening step by step, without involvement of the industry in • Cargo2000 rity regimes are being vigorously their decision making process. • E-freight enforced in the U.S., Canada, Europe and elsewhere, the new denomination “Our industry contributes substantially to the global CASS USA Business Intelligence • is independently validated “agent and economy, but we lack political and public awareness,” That is not even a thinly veiled page accredited shipper.” Otto said, his words piercing the source of a funda- taken out of the IATA book; it is the This year, there are two milestone mental wound in the air cargo business. IATA agenda writ large. CASS and events, which may shed some light on Jo Frigger of EMO-Trans America applauded the e-freight have been driven by confer- a future direction – the TIACA-hosted manager’s remarks. “Airlines, forwarding agents and ence resolutions and as such, verboten ACF in Amsterdam in early November truckers should sit at the same table to join forces and in the USA since 1985. Contrary to and the FIATA World Congress in deliver powerful demonstration of the industry, espe- its inception, airlines, forwarders and Bangkok a month earlier. cially in Europe,” Frigger commented. This implies that GHA are now represented only on the Other than starting from scratch, IATA would have to redefine the organization’s philoso- CNS advisory board, with the Board of Jo Frigger some of the options that have been phy by treating forwarders as cargo airlines are treated. Directors consisting exclusively of IATA kicked around are variations on a “This hasn’t been the case so far,” Jo criticized. executives, essentially co-opted. Slowly, theme: Hosting CNS President Michael Vorwerk assured slowly catchy monkey. that he would bring the Otto proposal right onto IATA’s table for further Yet at least the agency agreements • A greenfield project discussion. are between airlines and forwarders • A “globalized” CNS in the US; the forwarder community • TIACA • An empowered IFCC (IATA/FIA- TA consultative council) • IATA sticking to its only man- date, which is to represent airlines or a radical governance change that would allow forwarders, GHA, GSA to vote and thus truly represent the air cargo supply chain. Tournament brackets are often seen in sports; send us your best guess for which of the five options will come out on top – and which you would most like to see on top.

“To tell the truth, I felt our stock had been overpriced for a long time.” 2 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Lufthansa Out Front & Pulling Away

Herr Otto, your airline claims expert . We want to secure this leading encompasses in particular our Western ciation, every industrialQ leadership. Where do you position and further enhance it. European neighbors and for the major- country try- Dr. Andreas Otto consider LH Cargo being a leader, ity of the forwarding agents, a use of ing to push through its own particular where does your carrier still lack a pole Considering long-term economic the German capacities that overlaps interests. position? growthQ Europe seems to fall behind national borders is taken for granted. I have already proposed – also in You’re right: Our clear aim is In- rapidly emerging markets like China, Of course our global partners are of Air Cargo News FlyingTypers - a global dustryAO Leadership and in many areas we India and some others. How is LH utmost importance to us. However, we forum based on the model of the CNS. have already reached this. Even in the Cargo coping with this challenge? concentrate by no means only on the The large resonance to this idea gives crisis year 2009 - with a huge loss - we The imbalance in the traffic big customers. Smaller and medium- me a positive feeling. Even if there is still ended up in comparison in good shape. flowsAO is no new subject. Filling airplanes sized forwarding agencies are looked- a long way to go, I think that more and Such a low loss in comparison to our out of China to Europe has never after intensively by our sales colleagues more people from our industry have competitors can be, of course, no grati- been a feat - in the other direction, it in Germany and around the globe. recognized the need. Our industry is fication to us. However in 2009, we set becomes demanding. This imbalance For every agent all booking channels simply too important to the globalized up the conditions for the record profit will certainly continue. Whether it will are open and small and medium sized national economies, that we must not in the first half of the current year. intensify is hard to say. Just this year we agents as well have full access to our allow ourselves to renounce or to delay Similarly, we want to further im- have also seen a reverse trend. Among services the implementation of such a forum. prove our quality. One thing is clear other things, the growing Chinese to us: As a premium carrier we must middle class and the countless new Forwarders constantly ask for all-in Your home base Rhein/Main is offer an exceptionally high quality- here factories in China have led to the fact ratesQ for getting higher commissions. threatenedQ either by a total night flight again also: Industry Leadership. that our freighters were also well filled How do you answer them? ban or severe restrictions for night op- from Europe to Asia. We do not hear this wish of- erations possibly indicted by Germany’s Security is an ever increasing topic Lufthansa Cargo has reacted to the ten.AO We don’t offer classic all-in rates Federal Administrative Court. inQ air freight. A selling point for LH growth markets in Asia early and today that are -using the terminology of What is Lufthansa Cargo in partner- Cargo? is positioned very well, for instance, the forwarder- rates in which all the ship with the air freight community Security is the top theme of with our share in JADE, which even in surcharges are included. We hold the doing to avoid the closing of Frankfurt thisAO decade. The security requirements the crisis year 2009 worked at a profit. transparency of single positions like and furthermore, what consequences above all in the USA have risen mark- the surcharges for security and fuel as would it have for your airline if Frank- edly since 2001. Our costs for security Your German market share fluc- important. furt has to switch off the lights between have increased tenfold since then. De- tuatesQ between 23 and 25 percent ap- The chemical and automotive late evening and early morning? mands like 100% screening had the proximately. Do you focus too much industriesQ lobby their cause very suc- Indeed, the possible night flight industry facing major challenges. For on the multinational agents and pay cessfully by speaking with one voice. banAO is a subject which is the cause of us as a company, this represents at too little attention to the local small The German and European air freight major stomach aches for us. A certain the same time, however, also an op- and medium sized forwarders or why industry doesn’t. What has to be number of night flights is vitally nec- portunity. do you fail to up this portion despite changed? essary for us in Frankfurt. But Frank- To go back to your previous ques- all efforts? It is in my opinion, not exclusively a furt is not only affected, increasingly tion: For me there is no doubt that we First and foremost: Share of problem of the air freight business, but stricter night flight regulations at other are the clear industry leader in the field marketAO is not everything for us. It is rather of the whole aviation industry. German airports also make an eco- of security. We have given our custom- above all about profitability. From We create it - as you say – because nomically viable operation for cargo ers in the USA early planning security that perspective this means that every we do not speak with one voice. The airlines more and more difficult. in complying with 100% of the screen- customer in Europe who needs access pay-off for this comes at regular in- Hence, we have founded with wide ing requirements one month before the to our capacity can have it. tervals. In Germany, for example, an support of the logistics partners and the deadline. Our security chief Harald There is no bonus for German for- absolutely counterproductive ticket tax manufacturing industry, the initiative Zielinski was, by the way, the first repre- warders or customers. Besides, how was adopted, which massively weakens “Air Cargo Needs The Night”. With this sentative of a foreign airline who earlier one looks at the market has changed: Germany as a business location. Instead we will put forth the need for fair and this year was allowed to speak on this There is no isolated view of Germany of striving together for our industry, we subject before the U.S. Congress as an anymore. The German competition observe daily the efforts of every asso- Pg-8

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 3 For Better or For Worse EC Cargo Security Regulations he European Union has of concurrent users in the database, updated its security re- access to which is restricted to gov- Tgime, replacing the previ- ernment agencies, regulated agents ous 2002-based program with one and air freight ground handlers. that became effective on April 29, How the thorny issues of user 2010. As it is with all things new, administration and error handling this has introduced new termi- evolve will eventually become a nology – “Account Consignors,” decisive factor in the successful a concept by which shippers es- implementation and ultimately, sentially designate a person who acceptance and adoption by all will be legally entitled to represent concerned participants. a company, or the person respon- Also, time will tell how freight sible for security at that firm. The from various origin countries, EU freight forwarder as the intermedi- member states versus third coun- ary between shipper and airline is tries, ends up being treated and such a “regulated agent.” handled. This essentially changes the Harmonization of U.S. and EU former “known shipper” to an security standards are on the minds “accredited or approved shipper” of cargo security managers and status, audited by a government airline executives concerned that in- agency or by an “independent compatible procedures may impact validator” nominated by the re- operations, for example shipments spective authority – for example, from the EU to South American the Luftfahrtbundesamt in Germany, EU “haulier declaration” unless the design. countries in transit via the U.S. On top which is the equivalent of the FAA in trucker has been approved as a “regu- One of the main differences in this of these security regimes, there is also the U.S. lated agent.” There is a rather imprecise respect is that secure storage as an the ICAO (International Civil Aviation Another first is the inclusion of requirement for a trucker to provide approved method is now restricted to Organization) Annex 17 – Security; and imposition on truckers (haulier, evidence that is has been “certified or “regulated agents.” Screening options, Safeguarding International Civil Avia- in EU speak)—described as “contrac- approved by an appropriate authority.” in order of priority, are: X-ray, open- tion against Acts of Unlawful Interfer- tors”—transporting freight from a Consignment must be sealed before ing and inspection by hand, opening ence. ICAO has its ‘Universal Security shipper to a “regulated agent”—a transportation. and visual inspection and a simulation Audit Program,’ which examines the freight forwarder—and/or from the The full text has been published chamber; the latter has been pioneered implementation of the provisions by forwarder to the airline or its on air- as Commission Regulation (EU) No and in use in Israel since the 1970s. states. port ground handler. This puts new 185/2010 and is aimed at “detailed Another alternative could be the use Balancing strict security mea- demands on truckers, governed by an measures for the implementation of explosive sniffing dogs. sures—sadly and starkly emphasized of the common basic standards on The “regulated agent” database has by 9/11—which have always been the aviation security.” It must be that become mandatory effective June 1, bedrock of airline service, with the free the number of words used to define 2010 and brings with it a number of and speedy flow of trade is a high wire something for the regular folk directly potentially controversial and unre- act and an ongoing industry challenge correlates with how much bureaucrats solved issues. There are some limita- of cooperation and competition. and lawyers get paid; it is a mere 55 tions regarding the maximum number Never a dull day! pages long. Comparable in general to the air cargo screening procedures in force in the U.S., the EU uses very vague language when it comes to screening; in Chapter 6.2: “the means or method Click To View most likely to detect prohibited articles shall be employed, taking into consid- Harold Zielinski eration the nature of the consignment,” and “the means or method employed Lufthansa shall be of a standard sufficient to reasonably ensure that no prohibited Chief Of Security articles are concealed in the consign- ment.” This may be deliberate from a security perspective, or by any other

Editor 1975-1987 Ansel E. Talbert Editor/Publisher Geoffrey Arend Executive Editor Flossie Arend Special Commentaries Julius Maldutis Director Of China Bureau Han Bing European Bureau Chief Heiner Siegmund th Vol. 35 35 Anniversary 2010 Correspondents Sabiha Arend • Ted Braun • Tirthankar Ghosh • Irum Khan • David TELEPHONE Advertising Manager Judy Miller Production Manager W. Arend Videographer Ralph Arend (718) 479-0716 Founded in 1975. Air Cargo News readership survey and circulation are independently audited and can be obtained by contacting [email protected]. Entire contents email: [email protected] copyright ©2010 No portions of this publication may be reproduced without written permission. All photos and written material submitted to this publication become the www.aircargonews.com property of Air Cargo News and cannot be returned.

4 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE The Global Charter Broker Your wish is our passion

“Three cheers and a tiger! Keep up the great work!”

www.lhcharter.com

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 5 There is a world champion when it comes to air cargo transfer facilities Mega Golden At DXB and it is located smack dab in the middle of Dubai International Airport. The answer to how it got to be a world champion is up a shiny new elevator to a suite of offices wherein resides the straight talking Senior Vice President Cargo Global Operations, David Gould. Dave Gould is a Tartan, someone who was once part of a band of airline people that powered legendary British Caledonian, an airline that advanced new thinking, spirit and a sense of Scotland, during a time otherwise dominated by British Airways. He is the person in air cargo high-tech, gee whiz presentations that rarely gets the recognition he deserves and truth be told he also appears to be the type who could care less. Gould has been on the scene for the past 15 years shepherding the SkyCargo terminal handling operations team that now numbers more than 800. He credits his team all the way. ]“You cannot say enough about the people that work here,” Mr. Gould insists. We think we can handle more throughput maybe even as much as half again the tonnage envisioned for the place because this team and our systems, I believe are the best in the world.”

Upon opening CMT in 2008, you ECC last year. We expect the volume million tons a year. Dubai World Central. wereQ offering as much as 1.6 million utilization to grow by about 20 percent tons annual throughput via DXB—how during the current year based on the Are plans in place to increase What is the biggest change you no- much of that capacity is currently in current trend. capacity?Q ticedQ in moving and growing from the use? former air cargo set up EK occupied at Q Is there room to grow? A Yes, we have plans to modify and DXB two years after opening CMT? A Between CMT (1.2 million) and take control of Dnata’s Freight Gate 1 in our previous facility, the ECC (0.4 mil- Yes. As mentioned above, we expect 2012, which will provide an additional We moved from an operation that lion), the combined design capacity is 20A percent growth during the current capacity of 450,000 tons a year. The wasA 100 percent manual to one that is about 1.6 million tons. We processed financial year. Given our nature of op- combined design capacity of 2 million largely automatic, which resulted in the about 1.3 million tons through CMT eration and volume composition, we tons a year is enough to last until 2020, and about 0.1 million tons through expect CMT to accommodate up to 1.5 beyond which the expansion will be in Pg-10

6 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE CONGRATULATIONS ON 35 YEARS OF SERVICE TO OUR INDUSTRY We applaud Air Cargo News for delivering the news of our industry for the past 35 years—covering the people, events and companies that have made this industry great.

Congratulations on your accomplishment!

AACargo.com ©American Airlines CargoSM is a mark of American Airlines, Inc. All rights reserved.

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 7 U.S. Security Humdinger n June 30, an important hear- public forum situated at the highest “We directed extensive funding to ing was held by the U.S. House levels of USA government. our United States operations for the Oof Representatives in Wash- Here are some of his comments: investment in technology and the cost ington, D.C., titled “100% Air Cargo “There are several key aspects of for increased resources. Screening: Remaining Steps to Secure the 100 percent screening requirement “As our business is in the service Passenger Aircraft.” and further identifying steps towards sector, it is reliant upon our customer The Hon. Sheila Jackson-Lee (D) ‘smart security.’ base. Integral to this strategy was es- Texas, Chairwoman of the Subcom- “Based on Lufthansa Cargo’s expe- tablishing an effective communication mittee on Transportation Security and rience, TSA has done an outstanding campaign to promote awareness of the Infrastructure Protection and other job of developing and communicating mandate. lawmakers heard presentations from about the CCSP and ensuring that air “The key to this communication invited witnesses, including the TSA’s cargo stakeholders are aware of the was to ensure an understanding by our John Sammon, U.S. GAO’s Stephen pending August 1 deadline for 100 per- customers on the need for readiness. “This included various road-shows, Lord, ATA’s CEO John Meenan and cent screening of U.S. origin cargo. Lufthansa Cargo initiated and hosted public outreach seminars and webinars three air cargo industry executives, “In some cases, the confidential two security conferences in New York to address the dynamics of the regula- But in a genuine first was the re- security measures, as a result of this in 2008 and 2010, bringing together tion and the operational challenges to markable appearance of Lufthansa mandate, were not communicated with our industry partners and customers, industry. German Airlines Head of Security and sufficient notice. We are unclear about academia and U.S. government rep- “We also acknowledge TSA’s exten- Environmental Management, Harald how TSA will proceed with measures resentatives to address the increased sive efforts in developing and allowing Zielinski, to speak as featured witness relating to foreign inbound cargo. regulatory framework in the United industry to adopt a key tool for the suc- in front of these august members of “Finally, we believe more could be States. Additionally, we led two secu- cess for this mandate within the United the U.S. HOR. done to evaluate cargo screening tech- rity conferences in Germany, which States, the Certified Cargo Screening Herr Zielinski is the first foreign na- nologies and to foster the development included representatives from TSA, in Program (CCSP). tional to be invited by the U.S. Congress of applied training to support the effec- order to continue the outreach plan on “This program, although still in its to testify about air cargo security. tiveness on use of the technologies. the U.S. and EU regulatory frameworks infancy, is critical to ensure all part- It also needs to be pointed out right “Cargo security is an uncompro- and the need for harmonization of ners share in the screening effort to away that Harald delivered the goods. mised priority and purposeful invest- security measures. maintain commercial flows, close-out It’s worth recalling that in 2007, ment at Lufthansa Cargo. “A tremendous effort has been in- times and to limit facility and airport Congress mandated that the Transpor- “All of our airport stations in the corporated into our business plan to congestion. We would encourage TSA tation Security Administration must United States are equipped with self- ensure the mandate is accomplished to continue the outreach on the CCSP screen 100 percent of all cargo carried owned security equipment consisting successfully. and invigorate the program beyond by passenger planes by August 2010. of explosive trace detection equipment “It is important to highlight that August 1st, 2010. Bringing in Zielinski, the top secu- and large aperture, advanced-tech- these measures were adopted when the “We further commend TSA in rity executive from an airline that was nology x-ray systems at our gateway economic climate in 2009 was focused meeting with specialty shippers in the delivering 100 percent total screening stations. on business survival. pharmaceutical and sensitive goods to its USA air cargo product starting “When Congress passed the Imple- “I am very proud to report to you markets to encourage adopting a plan on July 1 (more than a month before menting Recommendations of the that these extensive efforts by Luf- to ensure the flow of commerce within the TSA mandate) therefore made 9/11 Commission Act of 2007 into law, thansa Cargo will allow us to achieve these markets is not impeded. good sense. mandating 100 percent cargo screen- the screening mandate in the United “Although TSA has been effective in Mr. Zielinski, who came to his ing onboard passenger aircraft in the States one month early, effective July its communication plan regarding the post as a former policeman from the United States, Lufthansa Cargo adopted 1st, 2010. 50 percent and 100 percent milestones, streets of Frankfurt (just like his father a comprehensive strategy. “Albeit a massive challenge, con- intermediary milestones for both U.S. before him), is, among other things, “This was supported immediately siderable resources, money and time and foreign origin cargo were man- one tough cop. He is plain spoken and by our executive board and senior were allocated to adopt and carry out dated without industry consultation totally dedicated to getting things right, leadership. For Lufthansa Cargo, the this strategy effectively and to ensure a and without adequate notice effective and doesn’t seem to take anything for requirement to screen 100 percent did robust business continuity plan. May 1st, 2010. granted. not simply apply to screening alone, “We commend TSA on its robust “Lufthansa Cargo had strategically Mr. Zielinski took the bull by the but also required changes to our opera- communication effort within the Unit- aligned our budgets, resource schedul- horns and was thoroughly professional, tions, resource allocation, productivity ed States to increase public awareness ing and technology delivery schedules driving home his points in this unique and processes. and understanding of the mandate. based on the initial mandates.”

Otto— from Pg-3 Also , the way we were able to navigate competitive framework conditions at through the crisis with the help of our the major German airports. It is in- employees, I view in retrospect very conceivable to uncouple the Number 1 positively. Through short-time work logistics nation from the international and other measures we structured flow of goods for several hours daily. a way which allowed us to keep the We therefore strongly call for the sup- team intact and on board. Now, with port of the industries and companies the upward trend, these colleagues are we serve. available to us and are indeed urgently needed. The most courageous deci- function for us in the form we know Leadership in even more areas. We Looking back at Lufthansa Cargo’s sion of the previous year was the rate from the passenger business. Then it want to be attractive for our customers, majorQ decisions in recent times: which increase in the crisis. From today’s was the right course of action to correct employees, as well as our shareholder, ones have proven to be on mark, which perspective, it was perhaps the most that decision and to go a new way. the Lufthansa Group. has missed? important one. Our goal is to reach this with the I think above all we have made Of course, there are always things Q Finally, where is Lufthansa Cargo greatest possible quality and flexibility. manyAO right decisions in the crisis. We which didn’t go off as planned. An ex- s in five years? I hope that in five years, on the 40th an- have reacted quickly, for example, de- ample is the foundation of the alliance AO I hope and am convinced that niversary of Air Cargo News FlyingTyp- activated airplanes to lower the costs. WOW. These concepts simply did not we will have developed our Industry ers, we can look back contentedly.

8 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE An American Saga Marches On

We asked Dave Brooks, President American Airlines Cargo some questions and here are his thoughts.

Can you describe the current con- Our luscious new Expedite TC in order to accomplish 100% screening, International mail? AIDS vaccine? ditionQ of your business, and what you (TempA Controlled) has been a real and the latent impact of cargo seeking The retail world has NO IDEA the think lies ahead? winner. This is a vertical you have to other modes. value of air cargo except for FEDEX A The recovery we saw in Q1 & 2 is grow one shipment at a time so it takes and UPS. starting to level off; Q4 will still be de- patience. But it’s already a meaningful Q In your opinion, what contributed I like CNS, IATA, and Brandon cent but not the blockbuster predicted part of our portfolio. to the success of 100% security in the Fried’s gig with the XLA group; basi- early this year. USA? Do you believe that same success cally any venue where you hear the Q Has anything in the air cargo busi- will occur in Europe and elsewhere in truth and no commercials; they are Q Has the financial crisis affected nesses’ recent past surprised you? the world? getting harder to find. your business, and if so, how have you A TSA’s CCSP. I was guessing we’d A TSA gets a nice slice of credit for modified the way you do business dur- see maybe 20% of our cargo coming in CCSP. As for the remaining inbound is- Q When not working, what else in- ing the crisis? screened. It’s more like 45%. sues, it’s going to be a block and tackling terests you? Hobbies? The recession for us meant we thing for the TSA, knocking off one A My knitting and crocheting are ditchedA activity we always wanted to If there were one thing you country at a time. It will happen more coming along very nicely. get rid of, we had to say ‘no’ to ridicu- couldQ change about the industry slow than fast. lous rates, and we stopped drinking to make it better, what would it be? Q At some point in life, everyone premium brands. The legacy work that Harmonization of security pro- Q Are air cargo industry shows worth thinks about the job they delivered: required ongoing support we stuck tocolsA across modes and countries. the cost, time and labor? If so, what do How do you rate yourself? Why? Of with. they deliver; if not, what can be done to what are you most proud? Q How has increased security de- make them better? Which air cargo or A My customers tell me we have the Q What actions have you taken to- mand impacted your business? other trade shows do you favor? most professional cargo leadership ward additional product enhancement The measurable costs are in the tens A Without air cargo, jeepers - - no Vi- team in the industry, so I can’t say and what new products and services are ofA millions of dollars. The opportunity agra, no blood cord, no cancer isotopes, enough about them. I hope I remain or will be offered? costs are in what we’ve had to set aside no tomatoes in January? smart enough to stay out of their way.

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 9 EK Mega —Terminal from Pg-6 formation flow across freeing up of staff to concentrate on the airlines, agents, GHA qualitative part of their roles. This, in and shipper IT sys- turn, led to a significant jump in our tems/databases. quality levels, which has increased to a consistent level of 99.7 percent, with What is your many days at 100 percent. absoluteQ top prior- ity right now and Describe capabilities, including what are you doing typesQ of air cargo handled today, which about it? have been impacted by CMT. Our priority is Our capability to handle tem- toA maintain the qual- peratureA sensitive shipments – ensur- ity levels achieved ing 100 percent integrity of shipment since we moved our temperature – improved significantly, operations into the CMT and to help Women in CMT are important, with special emphasis on health care Emirates SkyCargo improve its global and many play key roles in man- shipments. market share at yields better than agement, customer interface, We experienced significant growth competition. documentation, planning and in our market share both globally and special cargo support roles. in the local market. Where is the next generation of air Apart from blue collar work, Total temperature sensitive ship- cargoQ operations coming from? How we employ women in roles. Why How will the coming facilities and ments grew by about 25 percent, while does Emirates recruit and train opera- wouldn’t we? allQ cargo flights at Jebel Ali affect your the healthcare shipments experienced a tions people to staff its facilities? I am surprised you would even have CMT operations? growth of 40 percent in 2009, compared to ask that question! to 2008. Next generation cargo opera- The current DWC facilities are tionsA staff seem to come from young Sitting (or running) in the most ad- basic,A and will be useful for our sea-air As a senior cargo operations execu- technology-oriented developing na- vancedQ air cargo facility in the Middle operation and charters. We will operate tiveQ who has been involved in develop- tions. East and one of the top facilities of its an off-line service there. ment of handling, what do you think is We recruit new staff with basic cargo kind in the world, what would you next for air cargo? handling and operations exposure, who like to change (as top priority) about Can you walk us through the new will then be exposed to operations, IT the way the logistics chain connects fieldQ coming next month and how it Paperless air transport, which will systems, HSE and automation training, or does biz with you, i.e. truckers-in- will work for Sky Cargo? How does the beA driven by e-freight program imple- all specific to Emirates SkyCargo. terline, etc. cargo move back and forth, etc. mentation. And we look at attitude and enthu- Significant growth in customized so- siasm above all. I would like to see 100 percent trans- We are still working closely with lutions both for agents and shippers. parencyA and visibility of all shipment in- DWC/A Dnata to finalize plans for the Significant dependence on automat- How important are woman in the formation across our entire supply chain. next few years at the new airport. We ed IT systems for revenue/operations CMTQ and what types of jobs do they By that I mean from the production line see potential to use the facility both for optimization, seamless/transparent in- occupy? to the retail outlet – in real time. sea-air and charter operations.

Please click on images to view video 10 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE TH ALC best of ireland_234,95x311,15.indd 2 AIR CARGO NEWS OCTOBER 2010 GALA 35 ANNIVERSARY ISSUE 17.09.2010 19:04:47 Uhr11 Gabriela Dynamic At Jade Cargo

seizes the opportunity. a few women, she has made it to the She’s on home leave, but her cell phone rings She becomes Manager of Marketing top floors of management of Luf- incessantly. The calls come from China: from and Sales for Eastern China with head- thansa Cargo and on the way there quarters in Shanghai—and she brims has never “had the feeling that I wasn’t Shenzhen, the booming metropolis of the Pearl with ambition. She makes contacts accepted.” River Delta, from Shanghai, from Yantai, the with local and regional travel agen- When asked last year whether she cies, establishes contacts with Chinese wanted to switch to Jade Cargo Inter- emerging center of the high-tech industry in tour-operators and scours the German national, she saw this offer as a new the north of the country. community. Ahrens is soon the vortex opportunity. The joint venture between for the (at the time) 800 Germans in the “most professional cargo airline of Gabriela Ahrens takes it all in stride. years in Asia. Shanghai and a handful of Swiss and the world and its accent-setting Chinese What’s so special about home leave? Jade Cargo International, the cargo- Austrians. She establishes contacts, partners” is the perfect combination “to What is home, anyway, to a woman airline founded by Shenzhen Airlines initiates new business and organizes deliver the high quality to our custom- whose feet barely touch the ground they and Lufthansa Cargo in 2004, with its parties. “Everybody knew my name. ers which the Chinese market, with travel over: secondary school exams six Boeing 747-400 freighters, is again I knew Shanghai and Shanghai knew its existing hurdles, will allow.” What completed in 1979 in the Lower Saxony just the sort of challenge that Gabriela me,” she says, looking back. Gabriela Ahrens wants to say here is: town of Uelzen, with further training Ahrens loves. It is this pioneer spirit, In 1999, Ahrens switches to Lufthan- The actual international standard in there as a travel sales agent, then to this infinite pleasure in organizational sa Cargo. At that time, Stefan Lauer, the logistics supply chain is not yet ca- London to work for a German travel development, which drives her on. Her Chairman of the Executive Board and pable of being implemented 1:1 today agency, (DER), a move to Frankfurt in desire to solve problems and remove CEO and today a member of the Group in China. 1987—for love, this time. And in look- hurdles is almost like an addiction. “I executive board, placed more emphasis “In spite of this, we are on the right ing for the man of her life, she finds, on love new perspectives, changes, on the on the independence of the cargo divi- path,” says the Jade manager. In the the Main River, the job of a lifetime. job as well as in private.” She says this sion and forged plans for a pure cargo meantime, the market brings Jade She begins her career in the sales and, at the same time, her whole face flight to Shanghai. Cargo International a “big trust bonus.” department of the German Lufthansa; lights up. However, for this Luf- This opens the possibility again “to first, in the passenger business, later, This is the case dur- Changes don’t have to thansa Cargo needed its optimize our route network.” After Am- with Cargo. Cargo will become her ing her training period hurt. A great opportunity own sales organization sterdam as the main destination in Eu- greatest love. For years, Gabriela Ahrens in the travel agency, as often lies in them. on site. Who better than rope, Vienna and Istanbul have become is active in leadership positions within she becomes aware that Gabriela Ahrens and her the emerging growth centers there. Lufthansa Cargo. “my future would not be there.” It isn’t legendary reputation of knowing Jade is the only cargo airline that flies The rungs on her career ladder are much different when she is in London the town, its representatives and the directly from China to Istanbul. As of Shanghai, Hong Kong, Sydney, Singa- organizing trips from the DER office resident companies. For Ahrens, a new the winter, the frequency will be raised pore and, in the last half year, Shenzhen. for British citizens who want to visit start-up is the challenge again. She from three to four flights weekly. Starting on December 1, 2009, the the English soldiers’ cemeteries in Ger- accepts, despite the fact that, at that “Her big dream” has come true— power woman serves as Executive Vice many. “Though I had no clear picture as time, she doesn’t even know what an Jade Cargo Service to the USA with President Sales and Products for Jade to how my future would look,” she says, “airway bill” is. thrice weekly flights to Chicago, thus Cargo International. in retrospect, “I felt overwhelmingly But Ahrens is more than capable of opening the trans-Pacific traffic, As She self-reflects: “I find myself usu- that London was not far enough away, learning. There are colleagues of hers sales manager she can state contently: ally head over heels in work, but it not really a foreign country.” who maintain that she is eager to learn. “We’ve come a long way, baby.” gives me an awful lot of pleasure.” That A big chance comes in 1995; China “What I knew, I left behind me,” she says She has coped with the cultural dif- might be our first clue: when people opens itself to the west. In 1994, Luf- today. “I set out for new shores.” ferences between Germany, Australia say they’re head over heels, they aren’t thansa flies for the first time via Beijing She recognizes this and passes it on and China, as well as between Hong usually talking about work. to Shanghai. In Frankfurt, plans for to her employees: “Changes don’t have Kong, Shanghai and Shenzhen. Only So the location of her home is long- the first non-stop flight to Shanghai to hurt. A great opportunity often lies the automotive traffic in China’s large since of secondary importance. “At the are starting to ripen. Young Gabriela in them.” That is her personal credo, cities has stymied her. She drives nei- moment, the center of my life is in Asia,” Ahrens, who has “learned everything and is impressed upon her employees: ther in Shanghai nor in Shenzhen, the Gabriela tells us. “I live in the here and from scratch” in sales, is asked whether “Primarily, we should see the opportu- Jade hub. now. Everything else is a long way off.” she could picture herself building up nities in our new possibilities, not just “I don’t have to do this to myself,” One notices that, including a ‘side trip’ a sales structure in China. She doesn’t the hurdles.” says the woman with the strong nerves, to Australia, she has spent the past 15 take much time thinking about it and With this attitude, as one of just “I have enough stress.”

12 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Pole position.

We take off leading the  eld – for your competitive advantage. Because what is important to you is important to us – optimal transportation solutions and highest quality across borders and continents. www.lufthansa-cargo.com

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 13 lhc10004_anzeige_poleposisiton_aircargonews_usa_235x311.2mm.indd 1 23.09.10 12:38 High-SpeedHigh-Speed Rail:Rail: AirAir Transport’sTransport’s 2121stst CenturyCentury CompetitorCompetitor s the airline industry began to develop in the early 1920s, progressive during the 1930s. Soon after the end of the Second World War, improvements in technology, operations, and. marketing enabled powerful airlines, mainly state-sponsored in Europe, and privately airlines to compete with surface transport modes, sometimes vigor- commercial in the United States, began to challenge long-established ByBy RonRon DaviesDavies ously, but more often by a gradual process of erosion of the market. transport organizations. AOnA trans-ocean and transcontinental long-haul routes, initial penetration began In 1946, four-engined landplanes replaced the flying boats that had been considered essential for trans-Atlantic and trans-Pacific range and which were still being deployed on some Europe-Asia and Europe-Africa routes. Famous shipping lines watched the erosion of their business, to the extent that, by the 1970s, it had been super- seded. Post-war transcontinental air travel in the U.S.A. expanded dramatically, and by the same competitive force from the air, pas- senger rail travel for long journeys had all but disappeared. Over land distances as long as 400 miles, however, especially in Europe, railroads were still able to maintain a reasonable share of the total travel market. Even in the inter-war years of the 1920s and 1930s, airlines had already usurped shipping over such distances, especially in short sea crossings as, for example, England to France, where the London-Paris 220-mile cross-Channel air route had become the busiest in the world. Competition from railroads could not be strengthened by en- hanced performance. Average point-to-point speeds by express trains rose to an average of about 60 mph by the mid-1930s, but limitations of track gradients and curves ensured that faster journey times were exceptional. The world’s fastest pre-war steam-powered speed was 126 mph by a British train, and this was, significantly, over a stretch of line that was almost precisely straight and almost precisely level. American trains achieved their fastest times also on straight and level track in the midwest. The essence of intermodal competition has always been a matter of demographics. Where people are separated, there is a potential for traffic. This increases according to the origin-destination popu- lations of the city pairs involved, and decreases according to the distances between them. Competition is strongest where the volume of traffic is greatest, specifically where two large cities or urban concentrations are close together. In the United State, examples are New York-Washington, New York-Boston, Los Angeles-San Francisco, and Dallas-Houston; in Europe, London-Birmingham, London-Manchester, Paris-Brussels, Berlin-Hamburg, and Milan- Turin; and in Brazil, Rio de Janeiro-Sao Paulo. Transcending all these, however, is Japan’s 300-mile “Tokkaido” route, which separates Tokyo’s 30 million from 12 million in Osaka. But the speed of Japan’s highly-efficient but narrow-gauge railroads was limited by gradients and curves. During the 1960s, as the coun- try experienced its amazing post-war economic expansion, it was moving some 30 million passengers a year. The airlines were able to fly two million a year but airport congestion prevented much expansion. As this volume was increasing rapidly every year, Japan was facing the prospect of a national transportation gridlock. Recognizing that the existing trains could not cope with the chal- lenge, Japan took the bold step of building a new railway. Its trains would cruise at speeds well in excess of 100 mph. But possibly having studied the conditions under which previous speed records had been achieved, the planning of the line concentrated on the track. The new “Tokkaido” line had to be close to straight and level for the whole Tokyo-Osaka distance. To achieve this, long tunnels bored through mountains and hills, long viaducts carried the line across rivers and estuaries. The first new Shin Kan-sen (High Speed Train) “Bullet” trains went into service in 1964. The journey times on the Hikari trains for the 300-mile route is three hours, including stops at Nagoya and Kyoto. The dramatic improvement was not only in speed, but also in the increase in unit capacity. Each train of 16 coaches can carry 1,000 passengers. The Kodama trains stop at more stations, and add to the frequency. More recently, the nonstop Nozomi trains have cut the time to 2-1/2 hours.

14 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE High-SpeedHigh-Speed Rail:Rail: AirAir Transport’sTransport’s 2121stst CenturyCentury CompetitorCompetitor ByBy RonRon DaviesDavies

After several years, the 1964 Japanese example had reverberated throughout 500-mile route to Marseilles is now covered in three hours. the world of railroads. The lesson was learned - though the evidence had been During the next twenty years, the rest of Europe joined France. Germany there since the late 1930s - that improvements in performance depended on the started its ICE (InterCity Express) service in 1991, and when the Frankfurt- track, not the power of the locomotives, steam, electric, or diesel. High Speed Köln line opened in 2001, Lufthansa service was terminated. Spain’s AVE (Alta Rail was more than simply improved trains. It constituted a new transport mode, Velocidad Espanola) started from Madrid to Seville in 1992 and is now extended as far advanced on standard express rail as trains were from stage-coaches. And with routes to all the main cities. The network is now as large as France’s. Italy so, France, traditionally proud of its railroad system, introduced, in 1981, the also followed in 1992, from Rome to Florence, but further extension north- TGV (Train a Grande Vitesse). The first service was from Paris to Lyon, and the wards was delayed until 2009, when the segment from Florence to Bologna was Air Inter service was eroded to the extent that it was soon replaced altogether. Other TGV routes were opened to the north, west, south, and east of Paris. The Pg-16

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 15 High-Speed Rail From Pg-15 Current High-Speed Rail (HSR) Networks completed. That 79-kilometer stretch involved 72 miles of tunneling through the Apennines. In recent years, high- speed Thalys trains have extended the TGV line to Lille on to Belgium and the Netherlands. There are no airline services today from Paris to Brussels. Sweden opened its X2000 trains from Stockholm to Gothenburg and Malmo in 2000 and England finally joined the European high speed system in 2003 when Eurostar linked London with Paris in 2 hours 15 minutes in 2003. This was once the world’s busiest air route, but the airlines now carry only about one tenth of the total traffic. Elsewhere in the world, other east- ern Asia countries have joined Japan. South Korea opened its KTX (Korea Train Express) lines in 2004, Taiwan its THSR (Taiwan High Speed Rail) in 2007, thereby terminating some of the local airlines along the heavily- populated western coast of that island. China had started a route in the north as testing and calibrating line in 2003, and captivated the railroad fraternity - and shocked the airlines -late in 2009, when it opened a 600-mile route from Wuhan to Guangzhou in 3 hours. Within two years, China will have a nation-wide, 200-mph high-speed network with more mileage than the total of all the rest of the world. In Russia, Moscow and St. Petersburg Future High-Speed Rail (HSR) Networks are now linked by HSR, and in Turkey, the first segment of Ankara-Istanbul opened in 2009. All over the world, interest grows in High Speed Rail. Portugal, Switzer- land, and Poland are in the advanced stage of planning to join the expand- ing international network. In Latin America, Brazil, Argentina, and Mexico are aiming to link their capitals with their largest cities. Morocco or Egypt may be the first in Africa. In India, studies are advanced for medium- haul networks radiating from Delhi, Mumbai, Calcutta, and Chennai. Saudi Arabia will probably be next to “join the club” with high-speed lines as part of a government program to conquer the desert with a railroad network that will supplement the domestic airlines. So far, in the United States, discussions have been held and preliminary plans have outlined six obvious locales for

high speed rail. These are the Sadly, objections on the grounds of this new mode of transportation. Time northeast “Boswash” (Boston- the cost of construction have ignored was when the passenger railroads of R. E. G. Davies Washington, via New York and reference to the long-term economic the United States were the envy of the is the Curator of Philadelphia); California (San benefits for the nation as a whole. world. Amtrak still does the best it can. Air Transport at Diego-Los Angeles-San Fran- While other countries survey routes Even with an average New York-Wash- the Smithsonian cisco/Sacramento); the “Texas and construct, the United States still ington speed of a mere 88 mph, it has Inst it ut ion’s Triangle” (Dallas-Houston- seems not to understand even the eroded the traffic of what was once a National Air San Antonio); Florida (Miami- definition of High Speed Rail. trail-blazing airline shuttle service. a n d S p a c e Tampa-Orlando); Great Lakes In this country, therefore, the air- Sadly, I shall not live to see High Museum (Milwaukee-Chicago-Detroit- lines have little to fear in the near Speed Rail in the United States. The Cleveland); and the northwest future from surface competiton. Else- first line to open in the Americas will (Portland-Seattie-Vancouver). where, however, the world is embracing probably be south of the border.

16 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE InterInter AirportAirport ChinaChina OutwardlyOutwardly SpecialSpecial

nter Airport China 2010 just con- cluded its three-day presence at IBeijing International Exhibition Centre on September 16, the fourth time this event has been held in Beijing in its three-plus decades history. The exhibition showed state-of-the- art airport technologies, among which aviation safety related software and hardware were the focus. Exhibitors at the event included around 100 manufacturers from China, U.S.A and European countries, with those from China numbering over 30, providing ground equipment, de- icing equipment and special vehicles. Nearly 5,000 experts and managers from authorities and main airports in China attended the exhibition, slightly higher than the approximately 4,000 attendees in the past two sessions. And like the events before, dedicated forums were held as an important part of the event, inviting policy makers of China’s airport regulation and key airport managers to share their view on policy and also potential business opportunities. Mr. Wang Changyi, Deputy Direc- tor General of Airport Department of Civil Aviation Administration of China (CAAC), delivered a keynote speech on the opening day: “Overview and Preview on China’s Airport Develop- ment.” “By the end of 2009, there were 166 airports in operation in China, 33 of which are capable of serving large jets, such as Boeing 747. “Six new airports opened in 2009, while in 2010 the number was sched- uled to increase to 11. And today, 7 new airports are already put into use. “However, in terms of density, air- ports in China are still less than one fourth of that of the U.S., added by great geological imbalance across the country.” “The number of domestic airports handling over 10 million passengers a year has reached 14, with Beijing Capi- tal Airport ranked third in the world in 2009 with 65.4 million. Pg-20

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 17 The Long Distance Runner In Air Cargo

am Menen may not be much of What’s more, Emirates is not fin- have continued to steer the course and cargo industry and achieve some of our a jogger, but when the subject ished, although this may be the end of remain at the helm of a major world main goals over the next few years, such Ris impact and longevity as an the beginnings; it currently has enough cargo carrier as long as he has, longer as 100 percent paperless transactions, is airline air cargo executive, the Emirates aircraft on order to double the airline than any airline top executive in the to communicate with all the stakehold- SkyCargo Divisional Vice President fleet during the years ahead. history of the business. ers through one voice. is, among all others, the long distance So it is quite a testimony to the air- But that is exactly what happened. “I am a firm believer in the benefits line and its people that so many of the The kid from the tent alongside the of meeting your customers and part- faces we see at EK remain as constants, runway at DXB, humping and running ners face to face and look forward to despite all the growth and change tak- cargo in and out of a couple of leased-in the upcoming International Air Cargo ing place at the carrier. aircraft from Pakistan in preparation Association (TIACA) Amsterdam Air One of my earliest memories of Ram of a new airline called Emirates, is now Cargo Forum November 2-4 to provide was walking into a room and finding the senior air cargo executive who has a great platform in that regard. him huddled inside the Dubai World given his service and charity back to the “TIACA’s membership is diversified Trade Center, mulling over some papers industry and to others along the way. and we have stakeholders from all walks with his friend and long time colleague Ram Menen dresses formal—always of our industry present within the as- at Emirates Sky Cargo, Prakash Nair. in a dark suit with white shirt and tie. sociation. Dubai was hosting The International But don’t let the business uniform “It is a great platform to create one Air Cargo Association bi-annual event fool you. voice.” in 1996; the New York Yankees were Ram is approachable by anybody; We ask Ram if there were a couple winning their first World Series in 18 a down-on-the-ground kind of guy of things about air cargo that he might years. who knows a thousand air cargo areas, like to see changed. TIACA, on the brink of collapse, the best place to enjoy some delicious The response was exact and without was saved through money it made at dosa, and how to stay in touch with pause: the UAE event, and Ram Menen was the most critical area in the movement “Collaborative attitude, transpar- runner. the principal driver that matched up of freight. ency . . . visibility throughout the entire This decent, industry supportive and TIACA with Dubai. It may be hard to believe, but after a supply chain. self-effacing man has quietly become It’s doubtful that even the most generation in air cargo, Ram seemingly “Everybody to 100 percent e- one of the longest serving and most visionary precognitive could have fore- can’t wait for tomorrow and thinks freight.” prolific executives in the history of the seen the rise of Emirates Airline as both things look better every day. We wondered: How about eight days form. a world aviation power and industry Works for us. a week? Emirates SkyCargo 2010 continues as icon 16 years ago. Taking the industry view, Ram Ram thought for a split second, and a dynamic innovator, changing the play- It is even more unlikely to have Menen notes: laughed. ing field for air cargo the world over. supposed that Ram Menen would “The best way to build a better air But… he thought about it.

18 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Emo Trans Strong Foundation f Jo Frigger, CEO of EMO Trans, is ten the key to problem solving, there is USA. slowing down as he commences his no substitute for human ingenuity.” The rest of the event, Iseventh decade, he sure is showing “Our capabilities have grown to which culminated after no sign of it. include solutions for air cargo, ocean three days, was a non- This guy is the poster boy for the freight, distribution, warehousing, stop set of meetings upon self-made, straight shooting, air freight and all international transportation meetings punctuated with forwarder in the world today. needs. large social networking But Jo didn’t drop out of the sky. “EMO Trans network offices world- events, including the He has worked and thought about wide have significantly increased the opening gala held at the what it takes to be successful since he scope and coverage of our global Kennedy Center. was a little boy, more than six decades operations. The company keeps its ago in Germany. “With more than 250 offices located team on the same page Once while we were talking, Jo in over 120 countries, EMO offers through plenty of upfront recalled waiting on line with his Mom door-to-door control of each and every communication. for a forty Mark handout, which was shipment. EMO also extends its Generations—Jenni Frigger Latham & Jo Frigger. given to people in Cologne in 1948 as “In addition, we bring global vis- global culture by offering, everything lay in ruin, and the Reich- ibility through local representation and of all things, The EMO What, then, has been a surprise in marks money was worthless. knowledge of the unique characteris- Trans Cookbook. 2010? Jo considers the question and “We were unable to even purchase tics of local markets.” Published a couple of times during says, “Nothing really, except that 4,000 a loaf of bread,” he recalled. It’s worth noting as 2010 rolls along the past few years, the cookbook shows IAC’s are responsible for the safety But when times are tough, the and TIACA meets in Amsterdam, one true originality in recognizing and conduct of 100,000 truckers and their tough, it turns out, do get going. of the best meetings we attended this acknowledging the varied cultures of employees—a responsibility without “I vowed to never get on another year (and any year come to think of the EMO employees and the world the any real means of enforcement. line again,” he said. it) was the EMO Trans Global Annual company serves. “At the same time, we are severely Jo says that the experience he had Meeting in Washington, D.C. That diversity is met with a true impacted by increased cost for equip- when he was nearly 8 years old taught The first thing we noticed about hands-across-the-water menu of local ment and manpower placed on us as a him, among other things, to always the meeting was that the planning was favorite recipes from people in its far- result of the security demand.” own real estate property. thorough and exact and included plen- flung network of offices. The U.S. air cargo industry is now “Within a day after the money ty of time for EMO people from Korea, It might seem like a small thing, but at a 100 percent mandated security, hand out, the shops that were barren Australia, Germany, Chile, Canada, and for global enterprises that are often however Jo is not sure if there is 100 and empty before, opened for busi- the USA to conduct ongoing meetings impersonal, the EMO Trans Cookbook percent success. ness again with everything your heart starting right after breakfast and going offers a unified vision of the company “There is 100 percent screening. might desire.” until sundown in almost every avail- and shows what makes for a true recipe Now Europe will follow within the There is a subtle humor, a quick able space at the modern downtown for success: the ability to stay close means of their somewhat un-coor-

smile, and a rock hard toughness about Washington, D.C. Hotel. to the ground, stock your ranks with dinated actions for each country in Jo Frigger. In terms of scope and relevance, the good people, and always keep close to Europe.” He ranks high amongst the most agenda set up rivaled some bigger trade the customer. We ask Jo what change he would like interesting and successful gentlemen show organizations, although since this Taking a forward look, Jo Frigger to see take place in the industry, and of air cargo. is a company meeting, the tradition of said: “Business has increased substan- without any hesitation, Jo replies: “ EMO Trans began providing sugar coating the opening plenary is tially in 2010 and there are no signs of “Better cooperation between for- professional air freight services in traded in for straight from the shoulder a slow down right now. We have built warders and airlines and better IT Germany in 1965,” he says. “where are we now” opening addresses our market presence with careful plan- interface throughout the whole in- “Since that time, our capabilities from Jo Frigger, CEO, EMO Trans USA, ning and total customer service,” dustry.” have expanded to include virtually and Stefan Ritter, Managing Director, “The crisis, now past, has affected We wonder how Jo has lasted more every facet of worldwide shipping. EMO Trans Germany. everyone, but our results stayed very than 50 years in the air cargo busi- “Yet one thing has remained con- From out of the gate, first morning stable. Cost savings without letting ness. stant: our ongoing commitment to topics include a look at sales during people go and a very diversified global The response is typical: providing door-to-door solutions for 2010 and beyond, plus an airline view market have helped. Not being de- “After 52 years in the business, I each individual customer. delivered by Oliver Evans, MD of Swiss pendant on any bank has also been a have not worked a day in my life – it “In a business where creativity is of- Cargo and Jack Lampinski, CSM Swiss factor.” was always fun.”

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 19 InterAirport From Pg-17

“One consequence driven by the surging demand is the overload of airports. According to rough statistics of CAAC, passenger volumes at over 60 airports in China are about to or have already reached the design capacity, and expansion works are on high agenda. “This also means great business opportunities for manufacturers in the world, plus the ongoing building of new airports in the country.” Ms. Cheng Feng, Deputy Director General of Air- port Construction Dept. of China West Airport Group, introduced the group’s plan for expansion and newly- built projects and equipment importation. As the second largest airport group, state-owned China West Airport Group currently owns 12 airports in four provinces in West China, with Xi’an Xianyang Airport to be the core. “In 2009, the airports of China West Airport Group handled 19.7 million passengers, with the number at Xi’an Airport as high as 15.3 million; while in 2010, the group estimated 23 million in total, with Xi’an Airport contributing 18 million, almost fully responsible for the increase. “In the past five years, the group has invested 8 bil-

Expansion means great business opportunities for manufacturers in the world, lion RMB in airport construction and expansion; and in the next five years, the group will spend over 21 bil- lion RMB, including 7 projects devoted to building and expanding. Phase two of Xi’an airport will only need 9.2 billion RMB, expected for completion in 2012. “Phase two expansion of Xi’an airport and Xi Ning airport are currently underway; while two regional air- ports and phase three expansion of Yin Chuan Airport are now in preparation.” Taking the expansion project of Xi’an airport as an example, Ms. Chen introduced the group’s principles in the public-bidding procurement of equipment, which emphasize the product’s technology, after-sale service, are environmentally friendly and exhibit the manufacturer’s position in the industry. Mr. Ye Tao, Chief of Equipment Procurement Plan- ning & Development Department of West China’s Xinjiang Airport Group, also shared the group’s new airports investment in the coming years. Other topics discussed at the forum included airport security, presented by Mr. Dominic Yu, Senior Manager of Airport Security of Hong Kong Airport Authority, and green airport solutions by Mr. Gerhard Kleber, General Manager of Infrastructure Logistics of Siemens Limited China, etc.

20 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE India Pharma Sky High ising pharma exports from India (the $12 cold chain facilities for drug storage at airports or billion pharmaceutical industry earns 40 enhance the present ones. Another reason is the percent of its revenue from exports of constant complaints about the lack of proper cold off-patent generic drugs) have prompted chain facilities at airports from pharma producers Rthe government to take notice and move to enhance represented by the Organization of Pharmaceutical the facilities available at international airports in the Producers of India (OPPI). country. Sources in the Ministry of Chemicals and During 2009-10, the revenues of the Indian Fertilizers, the department responsible for pharma- pharmaceuticals industry went up despite the global ceuticals, pointed out to Air Cargo News FlyingTypers recession and financial crises, from US$0.32 billion that there was urgent need to either establish new turnover in 1980 to approximately US$21.26 bil-

lion in 2009-10.The country now ranks third in terms of volume of production (10 percent of global share) and 14th largest by value, according to official sources. This has led the Pharmaceutical Exports Promotion Council (Pharmexcil) to plan offices and warehouses in the U.S., Europe, Latin America and Japan to help Indian drug exporters. Drug exports are likely to show above 15 percent growth for 2009-10. The concerned ministry is believed to have identi- fied 21 airports around the country for enhancement of cold storage/chain facilities, but the first phase will see improvements at Delhi and Chennai. The work is scheduled for completion in a couple of years. While private operator GMR manages Delhi’s Indira Gandhi International Airport, the government-con- trolled Airports Authority of India (AAI) handles Chen- nai. Talks between ministry officials and the airports’ management have begun and it is believed that one of the demands placed by the airport operators is the levy- ing of a user-development fee for the space the airports would lease out for these special facilities. The ministry, sources added, have impressed upon the management of the two airports the need to rush with the construction of the facilities and ensure that each one is of world-class standards. The government has also appointed a committee to take a look at the present capacity in the 21 airports and suggest the man- ner in which the enhancement can be done. The com- mittee has stakeholders from the pharma community, the departments of health, civil aviation, the AAI and private airport operator. The OPPI, in fact, has taken up the Cold Chain Management issue at airports with the concerned government departments for over three years now. It has held discussions with major stakeholders, like the Mumbai and Delhi Airport operators, from where 80 to 90 percent of the export and import trade of phar- maceuticals take place. Among the demands of the OPPI in addition to providing cold chain facilities, were loading sheds and refrigerated vans for moving goods within the airports. The discussions were followed up with the establish- ment of four cold rooms at Mumbai. At Mumbai, where space is a major constraint, the four cold rooms for pharma products were created in the latter part of 2009. It has also gone a step further and trained staff to handle temperature-sensitive pharma products. In fact, the establishment of these rooms has sent freight forwarders sulking. Most of general freight is of the opinion that the cold chain rooms took away the prime space for general cargo. However, MIAL of- Pg-26

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 21 Driving Change For The Carriers Can you describe the current con- growth in other lines of businesses and As an industry I would like our More often than not, you are more ditionQ of your business, and what you our continued and steadfast corporate focusA to be on doing the right things conspicuousA by your absence than by think lies ahead? strategy. not just doing things right—use your your presence. We have seen consistent growth and IT investments for business analytical The shows do provide an environ- evolutionA of our community of users. What actions have you taken to- purposes and build into the fabric of ment to have informal exchanges with In order to serve our customers, de- wardQ additional product enhancement the business to drive continual perfor- friends, partners, and competitors spite the downturn, we have continued and what new products and services are mance improvement. on trends, developments, concerns, to innovate our product portfolio. We or will be offered? challenges and workable solutions for also see significant opportunities for We have made considerable invest- How has increased security de- the overall air logistics chain, in one global consolidation. mentsA in enhancing functionality as mandQ impacted your business? place. part of a truly integrated suite of cargo It has not had a significant impact Has the financial crisis affected solutions in such areas as Revenue otherA than the requirement to support What could potentially be im- yourQ business, and if so, how have you Accounting, Business Intelligence and the tracking of cargo screening across proved:Q modified the way you do business dur- Commercial Optimisation. the cargo management flow activities. Have specific and targeted network- ing the crisis? Our Global Customs Gateway prod- ingA events, supported by real thought Whilst there were temporary de- uct, is a fully configurable customs In your opinion, what contributed leadership in business performance A “hub” solution for all (upcoming) toQ the success of 100% security in the optimisation and perhaps experiences customs requirements in the European USA? from other industries. Union and Mexico. Existing relationships in the in- dustryA of all supply chain partners, Which air cargo or other trade Has anything in the air cargo busi- from shippers, to freight forwarders showsQ do you favor? nesses’Q recent past surprised you? and carriers as well as cargo screening TIACA, CNS, IATA World Cargo It has been invigorating to see the vendors. The pragmatic approach that SymposiumA and ALTA resilienceA of the business with how the went into preparations towards meet- air cargo industry has taken hands- ing the deadline of January 1, 2010 is When not working, what else in- on corrective measures during 2009 reflective of an industry that has a good terestsQ you? Hobbies? towards capacity discipline and com- handle on core operations. I try to spend as much time as I mercial measures to counter the decline canA with family and I do enjoy Tennis in business volumes. Do you believe that the same suc- and Golf. This has particularly been visible in cessQ will occur in Europe and elsewhere the industry’s ability to cope with the in the world? At some point in life, everyone James Fernandez, recession and with increased demands Yes, despite the more fragmented thinksQ about the job they delivered: Vice President from regulatory bodies, such as cargo natureA of the industry in Europe. How do you rate yourself? Why? Of Sales & Marketing screening. what are you most proud? CHAMP Cargosystems Are air cargo industry shows worth I am delighted to be part of a grow- If there were one thing you could theQ cost, time and labor? If so, what do ingA organization dedicated and focused clines in transaction volumes during changeQ about the industry to make it they deliver; if not, what can be done on supporting one industry on a global 2009, this has been compensated by better, what would it be? to make them better? basis and trying to drive change.

“We already have SPA’s in place with many major airlines, to name a few: Mr. Smith Goes All Cargo Emirates Airlines (SkyCargo) & Etihad Airlines (Crystal Cargo). fter 11 years of building a solid name D Connection. Mwanza, Kigali, Bujumbura, Juba and “D Connection has a weekly freight- reputation in the air cargo dis- D Connection, with a head office Mogadishu from the outset.” er program put in place, utilizing a Atribution business from his based in Nairobi, has been in existence As an old school air cargo guy, Lionel B737-200QC that has just returned Dubai hub in the United Arab Emirates, since 2004. Smith knows the airline game first hand back from South Africa after undergo- Lionel Smith, Managing With ownership of a and has in his possession the dream of ing an extensive C Check.” Director of Air Cargo B737-200QC registered many. Smith says: Integrators FZC (ACI), 5Y-JAP, the airline has He is both elated and certain to get “We have invested heavily into says that he is both been conducting ad- this airline thing right the first time. building a new Technical, Operations “thrilled and honored” hoc charters to various History, he points out, “is littered & Commercial Team. to further spread his East African Countries, with failures of many, who once given “As both forwarder and GSA, I know wings from the warm mainly flying into Juba/ the opportunity to get an air cargo first hand what is needed and what to Arabian airspace to the Mogadishu/Mwanza/ resource right, have forgotten the expect. cool, lucrative African Dar es Salaam for the rules and what they learned on their “Our partners will never be in the skies. past half dozen years. way up. dark about D Connection: that is our Lionel Smith is in Mr. Smith, who is “D Connection will be a neutral promise and credo. the airline business and picking up business operator and serve all its SPA partners “The team arrives with a new culture has acquired an existing to rebuild and living a & freight forwarders in a fair and trans- and business philosophy, compliment- AOC (Air Operators great dream, describes parent manner. ed by years of experience & expertise Certificate) issued by the his vision and plan this “After studying the market for the within the region. Kenyan Civil Aviation way: past 5 years, I feel the East African “We have embarked on rebrand- Authority (KCAA). “We will create a market is growing rapidly and there is a ing the existing company and we are The new venture is regular and depend- dire need for a dependable and reliable enthused and energized to take D Con- in conjunction with local partners able hub and spoke cargo concept operator to serve the market. nection to greater heights and the air and has been re-launched from the from (JKIA) Nairobi, serving destina- “We will work closely with all the ma- cargo business along for the ride with Kenyan airspace under the business tions such as Entebbe, Dar es Salaam, jor airlines that serve Nairobi-Kenya. best in class service “

22 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Delta’s Billion Dollar Baby Everybody has goals in mind with some top execu- tives clearly focused with eyes on the prize. For Neel Shah, Vice Presi- dent Delta Air Cargo the plan is to emerge in 2012 as a billion dollar business.

Can you describe the current con- ditionQ of your business, and what you think lies ahead? Both Delta Air Lines and Delta CargoA have solid plans for 2010. We are confident that we will meet all our business and financial commitments. Delta overall expects double-digit pas- senger unit revenue gains expected for the September quarter. As of July, Delta Cargo’s year-over- year CTM growth of 34% outperformed IATA by 11 points, and this is against demand more security than general impacted your business? the biggest decline in ASMs among the freight shipments. Since the recom- domestic carriers. As of August, we’ve mendationsA of the 9/11 been able to grow revenues by 49% Has anything in the air cargo busi- Commission were made YOY, which pretty much replaces the nesses’Q recent past surprised you? into law by Congress, we revenue impact we took from retiring Perhaps surprised isn’t the correct have worked very hard our freighter fleet. word,A but I have been disappointed in towards the goal of 100% the lack of momentum around com- screening. This has re- Q Has the financial crisis affected mon issues like cargo security, eFreight sulted in some very dra- your business, and if so, how have you and Cargo2000. This industry lags matic changes to how we modified the way you do business dur- behind so many others – the passenger conduct business from the ing the crisis? side of airlines in particular - in advanc- known shipper program A Certainly all companies have had to ing initiatives that make it easier for us to screening at the point make hard decisions in this economic to work together. of acceptance. climate. Within Delta, we focused on We have risen to all of aggressively curtailing capacity early in In the past, Delta was probably just these challenges and met every mile- the investment. Delta, in particular, the crisis, including the grounding of as guilty as the rest of the industry of stone along the way. We did spend focused a lot of time and energy on our freighter fleet. We have taken the not driving forward with eFreight & millions in capital and incur further customer communication. All of the position that the industry has to break Cargo2000. However, with our merger millions in operating expenses every work and cost paid off, though, as our its boom-and-bust cycle, and that is behind us, we are now dedicating a year in order to meet the mandate. We goal was to ensure that August 1st was only capable with a rational approach great deal of resource to make these are very supportive of these changes a non event. towards capacity. Within Delta, disci- initiatives a priority. They are core because as an airline, safety is our num- I think the success in Europe and plined adherence to that approach is components of our division’s business ber 1 priority and we must constantly elsewhere is directly tied to the cus- paying dividends and we are now posit- plan for 2011. evolve in order to stay a few steps ahead tomers, and how seriously they take ing industry leading financial results as of the bad guys. the mandate. Anyone who believes a corporation. Q If there were one thing you that 100% screening won’t come to could change about the industry Q In your opinion, what con- their home markets has his head in the Q What actions have you tak- to make it better, what would it be? tributed to the success of 100% se- sand. We are already screening very en toward additional product en- That depends on which industry curity in the USA? Do you believe close to 100% of inbound cargo and hancement and what new products youA are talking about. If you ask me that same success will occur in Eu- we will pursue hitting 100% in the very and services are or will be offered? what I would change about the airline rope and elsewhere in the world? near future. We do need to see greater A Our product strategy focuses on industry, I would probably advocate a I think much of the success can be cooperation between the TSA and for- specializing in specific commodities more rational approach to capacity that attributedA to the customers who had eign governments so we can get more where there is a defined, critical need, ends the boom-and-bust cycle we’ve the foresight to become CCSP compli- foreign security programs approved but only when the revenue exists to jus- ridden since deregulation. ant. Delta Cargo has been one of the by the TSA to allow for the smoother tify the cost of that specialization. For If you are talking about the air- most vocal proponents of CCSP, and in- transit of cargo. There are currently example, we’ve spent two years building freight industry, I go back to my vested to ensure customers who became many countries whose programs need and solidifying our Variation Pharma comments above. There needs to be a certified would feel no negative impacts to become “approved” to ease our way product in markets where there is a greater willingness to work on solving from the 100% screening mandate. towards 100% inbound screening of demand for cool chain products. the non-competitive infrastructure While the customers deserve a lot of cargo. Looking forward, we are focused issues in a way that is meaningful and credit, it is also worth noting that the on building our chain-of-custody useful. logistics and planning required within Are air cargo industry shows worth capabilities, with an eye towards the Delta over the last two years to get Q growth in high-value shipments that Q How has increased security demand to this point was formidable. So was Pg-30 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 23 Reto Charters A New Approach

Reto Hunziker, the likeable young manager of Luf- thansa Charter, is closing in on his first year leading the organization, having taken the MD reigns from company founder Christian Fink earlier this year. We caught up with Reto, who moved from start-up Jade Cargo in Shenzhen back to Frankfurt with some ease, wondering if things are really humming along and what is next for Lufthansa Charter? Reto used to describe his team at Jade as “my famly.” From that approach, Reto Hunziker seems to be all for the expansion of family, which looks to be growing all over the place.

You have been on the job for some personnel chances in the FRA requests. However, the someQ months now. How do you rate office. We are working on that and capacity situation is still your performance as MD Lufthansa should be able to announce these tight and it is not easy to Charter? changes soon. get NC access. We always What have you learned? check the availability of So far everything is going the way Can you describe the current the group capacity first. itA should. We initiated an internal conditionQ of your business, and what We then go to the market team, building and changing process you think lies ahead? How is business in case there is no group to clarify the responsibilities. This had, as compared to 2009 and where would capacity available. has and will have a big influence on the you like to see and expect business to people and the company culture. be by end of 2010? Has the financial crisis affected Additionally we are discussing new We made a lot of progress in various We had a good year so far and are yourQ business, and if so, how have products and industry approaches fields and are definitely on the right positiveA that the remaining year will you modified the way you do business together with Lufthansa Cargo and the path to be fit for the future. work out very well for us. However, we during the crisis? What actions have Lufthansa Cargo Group. I have learned to deal with a differ- were not able to profit from the ash as you taken toward additional product ent culture and environment again, much as everybody expected. enhancement and what new products What is the most common privately as well as in the business. The capacity available during this and services are or will be offered? misunderstandingQ about Lufthansa time was extremely low and carriers We were affected by the financial Charter? Recent word is surfacing of chang- preferred to fly the backlog first. I do crisesA in the same way as the whole Everybody thinks that we focus on esQ in personnel at Lufthansa Charter. expect a peak season from mid October industry was affected. sellingA group capacity only. That’s not Can you describe whom the new (after the Golden week) until early De- We are a very lean and mean or- the case at all; group capacity reflects people are and what you hope they cember. In my view, this will be the key ganization, so we were well prepared! only a minor share within our busi- might accomplish? peak time. We have some peak deals on We implemented and kept a strict ness model. We appointed a new GM for the hand, mainly between Asia, the Middle cost optimization program and were We are also often seen as M11 F, Americas,A Andrew Morch, who was East and EU and we are well prepared therefore able to get through the crises 744F and 777F provider. However, we working for Swissair, KLM, ABC and for the hot period mentioned above! very well. do much more and can offer each size Air Canada before. He has a good The traditional ad-hoc charter of aircraft from XXS to XXL. knowledge about the U.S. market and How is the charter market right business will be the main focus for customer base. nowQ and what are you doing to lever- the future. Has anything in the air cargo busi- The new GM appointments for age Lufthansa Group to maximize However, we started to look into nesses’Q recent past surprised you? If DXB and HKG will be announced returns with Jade, Austrian, Swiss and new segments, like small charter opera- there were one thing you could change shortly. Lufthansa? tion, as well as into year round charter about the industry to make it better, The change process will also bring A The market is ok. We get a lot of chains. what would it be?

24 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE I was surprised that the year, espe- best, networking platform. It is defi- ciallyA the first months, was developing nitely a must attend event! very well. The short recovery mode There are some limited events that from the crises was a big surprise. are important to participate in. These I would like to make our business events are very good networking plat- more reliable and less dependent on forms where you meet the key people seasonality. of our industry.

How has increased security de- How important to your business mandQ impacted your business? In areQ air cargo industry awards? your opinion, what contributed to the As long as the awards are based on success of 100% security in the USA? performanceA and not on advertising Do you believe that the same success spent they are important. will occur in Europe and elsewhere in the world? Earlier this year, Lufthansa Charter We are in line with the industry. (asQ did many other cargo companies) WeA did not felt a negative development was involved in lifting relief supplies due to increased security. Security will to Haiti. be the key in the future. USA took the What other moves has Lufthansa lead, and all others will follow. Charter made to help organizations that are recognized for their contribu- Are air cargo industry shows tions to people in need? Reto Hunziger, Manging Director Lufthansa Cargo Charter is pictured alongside worthQ the cost, time and labor? What How much emphasis can you place Heide Enfield, Head of Marketing & PR with the S-38 as backdrop on September 9 do they deliver and what can be done in utilizing Lufthansa Charter to help in Egelsbach. The S-38 flew across a route once reserved for the giant, 100-ton Boeing to make them better? What air cargo others? B314s of Pan Am in a fundraising effort to support the great Wings of Help Charity conferences do you plan to attend We recently flew some relief char- in Germany. The S-38’s route was charted all the way from Minnesota crossing during the remainder of 2010? How tersA to Pakistan, with some more flights Labrador, South Greenland, Iceland, Scotland, Faeroe Islands, London, and Brussels, productive have air cargo conferences planned. into Frankfurt (Egelsbach Airport) before continuing on to Berlin, Germany. Heide 2010 been - i.e., Brazil and CNS that We have a long standing relation- said, “Wings of Help is a great charity that is constantly at crises points everywhere you attended? ship with “Luftfahrt ohne Grenzen” in the world with special emphasis in helping children. As example, Wings has To improve upon conferences, group and support their efforts in organized and provided the movement of tons of disposable diapers to Pakistan, thereA must be more focus on current, bringing aid to children around the as unimaginably severe flooding continues to challenge every facet of life in that important topics. world. In this regard, we also sponsored country. Lufthansa Charter is proud to support Wings of Help.” As example, the issue that Dr. Otto the Sikorsky S38 happening. brought up during his speech at CNS Relief is an important topic for us and the follow up discussions that are that we take very seriously. We try to now continuing in Air Cargo News help whenever we can. Needless to FlyingTypers. say, we provide all the relief flights at We are going to be attending the base cost. TIACA show in AMS. This will be a combined Lufthansa group stand with When not working, what else LH Cargo, LH Cargo Charter, Swiss interestsQ you? Hobbies? WorldCargo, Brussels Cargo, time- I like running and biking; in gen- matters and Jade. eralA I like spending my time outside The Brazil show was an excellent enjoying nature. experience. It showed me how big the potential is in the South American At some point in life, everyone market. Everybody is focused on China thinksQ about the job they delivered: and India, however in my opinion, the How do you rate yourself? Why? Of South American market is emerging as what are you most proud? an important market.. SA-EU, SA-Asia, We have done a good job so far. WFS, THE LARGEST CARGO HANDLING NETWORK SA-US as well as the traffic within SA HoweverA it is far too early to relax will grow and will play an important – there is still a lot to do. I’m proud that role in the future. most of my people understand the new WFS is the world’s leading provider of timely, The CNS show is still one of the philosophy and the new approach. flexible, responsive and secure cargo handling services for airline customers and freight for- warders at airports around the globe.

WFS offers a full solution for passenger, aircraft, baggage and cargo handling that helps airport authorities and airlines operate more efficiently, increases passenger satisfaction and above all, improves security. WFS EUROPE Tél : +33 1 70 76 00 00

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Volker Dunkake, LH Cargo Charter, Bernd Grün, Geodis Wilson Germany, Ulrich WFS ASIA PACIFIC & MIDDLE EAST Tél : +852 2801 2980 Brenner KN Airlift, Geoffrey Arend, Air Cargo News FlyingTypers, Nils von Buxhoeveden, LH Cargo Charter, and the pilot with the plan and plane—Thomas www.wfs.aero Schrade.

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 25 What Makes A Winner? Awards Fete Air Cargo For Profit very year there are air cargo in- receives congratulating her on her creation of award schemes. This led to tions. dustry awards events at fancy bow inclusion in a new book, Best a worldwide inflation of accolades “Air cargo needs to recognize the Etie affairs around the world. that popped up like mushrooms in great job all of our people do to make There are awards for everything every corner of the planet. this industry successful. – Company of the Year, Person of the This wound up devaluing “Maybe there should be some new Year, Most Influential, Lifetime Service. those few awards that award categories to include a broader Awards will be handed out left and are based on spectrum of people and businesses. right by trade shows, industry organiza- Po e t r y thor- “For example, what would be wrong tions and publications. of [Insert Year], with selecting the best third-party cargo It all makes you wonder what’s go- for which she need only provide handling service or, for that matter, ing on, especially since the air cargo $50-100 to receive a copy. That small fee recognizing the best GSSAs? industry just had quite possibly the covers inclusion in the book as well. The “Both are daily integral forces in worst financial year on record. judge of what is the “best” poetry is the air cargo that rarely, if ever, get While the year in finance should not dispassionate, almighty dollar. respect, let alone receive give us ostrich syndrome (and thank- It’s sort of like purchasing a star, awards. fully, many of us have not stuck our which you can also do if you’re willing ough and “There are plen- heads in the sand), something rings to fork over the cash. scientific research. ty of other cate- a bit hollow when air cargo folks sit The guys on the street here in New “The best thing gories that could down to a $75-$150 a plate trade show York City call it a kickback, pure and would be for the major and and should be dinner and pat themselves on the back simple. most respected cargo carriers to considered outside whilst fellow companies face uncertain Hard working companies and peo- form a sort of informal alliance de- of the aforemen- futures and bleed money like fiscal ple in air cargo don’t need that kind of manding that the number of awards be tioned ‘narrow hemophiliacs. grief at what should be a moment of reduced to a comprehensible number, band’ of awards recipients The idea of recognizing and award- encouragement, enlightenment and let’s say, four or five per year, honoring as the industry gears up for the rest ing exemplary effort is as old as orga- reflection for a job well done. different transport and service catego- of 2010.”Another top executive in air nized business itself. But right now, Heiner Siegmund, Air Cargo News ries and items along the entire supply cargo (unnamed) thinks awards should the idea of handing out awards seems FlyingTypers European Bureau Chief, chain.” come in part from customers with some a bit over the top, if not downright who talks to air cargo people in Europe In past rants about industry awards benchmarking: inappropriate. and elsewhere more than any other we have wondered why IATA or some “Performance should be based For starters, there are too many reporter on the planet, observes: other multinational and neutral body on profitability and the views of our awards. Awards have also become mon- “By and large, there is no transpar- might not manage awards by initiating customers. eymakers, especially for publications ency as to what are the criteria for a and conducting surveys in close coop- “They should decide who is per- who are able to convince candidates great number of the awards. eration with international airfreight forming best and we should use more into buying full-blown advertising “Awards announcements go some- and transport media. analytical methods to measure perfor- programs pleading with readers, “Vote thing like: Instead IATA, while still not in the mance.” for us!” “‘Our readers have decided…’ awards loop, has acquiesced to another Another thought is that maybe air The amount of correspondence we “In most cases, nobody knows how publication’s awards shindig during cargo should skip awards altogether are seeing from otherwise sens ble, many of these readers really partici- WCS. No doubt that there is plenty of and hold a series of fund raisers to help dedicated air cargo people pleading pated in the surveys. constructing thought out there when it the legions of people worldwide who for people to vote them best airport or “In other words, the prerequisites for comes to the giving and receiving of air are being thumped to distraction by out best airlines would be laughable were the vast majority of awards are totally cargo industry awards. of control, politically driven prosecu- it not so pathetic. The offenders know nebulous. For example: A highly-placed air cargo executive tors in the U.S., EU and elsewhere as who they are. ‘Best Cargo Carrier of Europe, Best who has requested anonymity thinks air cargo is increasingly being targeted Forgetting everything else, does no Cargo Carrier of the Middle East, Out- that maybe awards committees need for alleged price fixing. one smell a scam? standing Cargo Carrier of Asia/Pacific,’ to look a little closer when they go In the meantime, there is no doubt Advertising programs, event spon- and so on. about the business of recognizing true in our minds that the air cargo awards sorships, corporate tables at galas sold “Sometimes, it is the ability to make winners: trend will continue. as part of an awards package – these the most ‘noise’ that wins the award. We think too highly of our senior It will just be a matter of what the reek of set-ups, in our humble opinion. “Between 2005 and 2008, air cargo teams and not enough of the people awards now mean for those who win My eldest daughter, a writer, likened it was growing so fast that award overkill making it happen every day at the them, considering they mean very little to the emails and letters she sometimes reduced credibility and increased the terminals, sales offices and GSA loca- in the grand scheme of things.

India Pharma From Pg-21 cargo complex with 58,000 sq meters. In the expanded complex, there will be ficials pointed out that as far as cold temperature-controlled cold storage storage for pharmaceutical products rooms with special flooring, secure is concerned, it has to be realized that storage facility for dangerous and haz- Mumbai is the capital for the pharma- ardous goods and a number of strong ceutical industry and the concerned rooms for valuable cargo. ministry had been asking for the cre- Once the infrastructure is com- ation of such a facility at the Mumbai pleted, the Drug Controller General airport for some time. of India (DCGI) will have control over At the Chennai airport, work is on the separate dedicated controlled to add an additional 26,000 sq. meters environment, called a ‘Pharma zone,’ with an automatic storage and retrieval located within the cargo premises at system (ASRS). That would provide the airports.

26 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 27 Uli Talks Tomorrow & TIACA Ulrich Ogiermann who has been CEO at Cargolux for the past eight years came out of the passenger business. But unlike some others Mr. Ogiermann switched over to air cargo, first at Lufthansa where he found an industry fairly well pop- ulated with smart, well educated people, so Uli has been moving up the industry corporate ladder ever since. He is current chairman of TIACA and has worked diligently in his tenure to bring shippers into the fold. Blackberry in hand, this execu- tive seems at this point a freight man for life.

Can you describe the current con- the quality of the screening process is Q Are air cargo industry ditionQ of your business, and what you questionable. To strengthen aviation shows worth the cost, time think lies ahead? security one should rather adopt a and labor? If so, what do I am a firm believer in long term risk-based method of cargo screen- they deliver; if not, what globalization:A this trend will prevail ing by identifying high-risk cargo and can be done to make them and there are subjecting the identified shipments to better? Which air cargo or ample oppor- 100% physical screening. other trade shows do you tunities in run- favor? ning global sup- If there were one thing you could A Air Cargo Industries ply chains. Air changeQ about the industry to make it Shows are definitely worth cargo will again better, what would it be? the cost, time and labor, become a good The biggest wish would be to devel- for instance the Air Cargo business to be opA a truly rewarding concept of gener- Forum and the Air Cargo Europe, both reading and enjoying different cultures in but there will ating “round-trip-cargo,” a product that presenting our larger platforms where from around the world. be changes. would resemble the passenger product. the air cargo industry meets and ex- But there is no such thing and we will changes ideas, discusses current and At some point in life, everyone In your have to deal with imbalances and one- important issues. thinksQ about the job they delivered: opinion,Q what way traffic as before. Jokes aside: In addition, smaller presence is rec- How do you rate yourself? Why? Of contributed to There would be a clear sequence: ommended at local air cargo events. what are you most proud? the success of 100% security in the Firstly, align the security regimes Improvements could be done in view I can look back to over 20 years of USA? Do you believe that same success worldwide to facilitate airfreight rather of the conference topics, the location contributionA to the air cargo industry will occur in Europe and elsewhere in then preventing cargo from being of the various events, and in view of in general. In 2002, I was appointed the world? transported. freight forwarder presence. President & CEO of Cargolux, achiev- With “success” is reference made to Secondly, make airfreight much Cargolux has regularly ensured ing positive results and expansion of theA relatively smooth start of the 100% more efficient with the implementation presence at the ACF and the Air Cargo the company’s worldwide services. Also cargo screening requirement (on piece of e-freight Europe, both taking place every other during the crisis year 2009, layoffs were level) for all cargo loaded on a passen- year, and is involved in the Air Freight avoided. ger aircraft in the U.S.? What do you see as the biggest Asia, plus other events promoting the I am proud of the dedication of our TSA reported days before the August challengeQ for the years to come? cool chain, the transportation of flow- staff and our overall achievements over 3 deadline that some 900 entities were To change the image of the industry ers and the transportation of live ani- the years. Cargolux today ranks no. 9 certified as CCSF (Certified Cargo toA being an environmentally-friendly mals, or events taking place at growing worldwide in f/tkm’s flown. Screening Facility) carrying out a TSA- industry that will step-by-step imple- gateways, like the Caspian Air Cargo As the current Chairman of TIACA, approved security program and obliged ment modern aircraft that are produc- Summit, to name a few. I have been given the excellent op- adhering to chain of custody require- ing less emissions, less noise and use less At most industry show, our com- portunity to follow up on trends and ments. CCSFs are authorized to ‘screen’ fuel. Last but not least: have a greater pany also positions a senior speaker on directions, as well as special issues shipments that are ultimately placed on interaction with shippers to spell out panels to bring forward our views. All of overall importance, like the latest a passenger aircraft. the advantages of airfreight in terms events are communicated within our security regulations, e-freight, and the One shall not confuse 100% screen- of time to market and capital binding organization and towards our clients, quality of air cargo handling, to name ing with 100% security. 100% security effects of a long transportation chain. to ensure the correct presence. a few, also to ensure correct industry does not exist and eliminating all risks Using airfreight is beneficial to a lot leadership. is just not possible. of businesses and delivers profitable Q When not working, what else in- Further industry guidance can be Applying 100% screening to large entries to markets which otherwise terests you? Hobbies? provided as a member of the Cargo volumes of cargo is not practical and are shut! A My hobbies are skiing and sailing, committee of IATA. 28 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE John Batten Tops Handling Can you describe the current con- enabled us to gain more revenues being asked and where a handler op- ditionQ of your business, and what you where we were charged on a kilo rate erates for two or more airlines in the think lies ahead? but equally gives the customer more same facility this can lead to different Swissport’s general business is good revenue improving the yield. The devel- processes having to be adopted. todayA and the prospects for the future opment of Shield meant we were able look encouraging. The way the industry to supply paperwork to our customers How has increased security de- is changing with more consolidation anywhere in the network if lost in the mandQ impacted your business? will have its affect on us and there are transportation process, so avoiding The increased demand has meant potential ‘win’s and losses’ that will have the need to recreate the paperwork weA have had to purchase new equip- to be managed. and send on the next available flight ment and change some processes to be- to neutralize the “Chicken Little” syn- Understanding the business, markets improving the clearance times to the come compliant, however we embrace drome. In this case it worked. Of course, and economy over the last 18 months airlines customer and improving the the additional security and see this as the fact that volumes were lower than has changed the way we do business for on-time performance. Enhancing positive to the industry. normal also helped keep things man- the better, and has highlighted the need ‘FreightTraker’ allowed us to identify ageable along the way. to innovate. Likewise, we now need to where shipments are in our warehouse In your opinion, what contributed Pushing screening further up the look at expansion in the network and and making it available to the custom- toQ the success of 100% security in the value stream through the CCSF pro- the management as the crises did high- ers improved the speed of collection USA? Do you believe that same success gram was also a key. This required the light the need for better management. and transport. This is being further will occur in Europe and elsewhere in forwarding community and other front enhanced to allow it to be interfaced the world? end stake holders to come on board. Has the financial crisis affected with the airlines systems creating more From the outset and throughout Many did so during the pilot stage and yourQ business, and if so, how have you transparency. allA of the questioning, concerns etc. it was the early adopters with critical modified the way you do business dur- In addition to looking at customer the TSA never wavered in terms of mass that created the momentum nec- ing the crisis? facing innovations we also looked at spelling out that the 100% screening essary to get the program on track. The financial crisis changed the way internal processes to improve commu- was a government mandate and that it In terms of Europe I think it will thatA we do business and modified the nication flows and avoid double entries would happen. be more difficult simply because there approach we had within the business to which cost time and money. Internally It took time – but once the industry are more moving parts. The regulatory be more pro-active with customer rela- we created two new streams ‘Business accepted that the change was going to regime is fragmented, and there is not tionships and strict control on costs. Intelligence’ and ‘Customer Relation- happen regardless, the theoretical gave the same sense of inevitability which re- The business had to adapt and in this ship Management – CRM’ to allow us way to the practical in terms of prepara- ally ended up galvanizing the industry process we put the customer first and in the U.S. to action. looked at ways we could improve the relationship, indentify ways of engaging Has anything in the air cargo busi- to save money but overall improve the nesses’Q recent past surprised you? service through better use of technol- Not really as this business has al- ogy or time as well as new products or waysA been very fluid and we have had enhancing our USP’s. to deal with the ‘peaks and troughs’ We took the approach of improv- over the years, but the amount of con- ing quality rather than reducing cost solidation and speed of airline mergers for cost sake and additionally looked is a concern. at where we get information and how One surprise is that airlines are not information on vertical markets could outsourcing facets of the business as assist us in planning for the future. quickly as I had hoped to reduce cost and variabalise the cost base. Perhaps What actions have you taken to- this will come in the next year as it can wardQ additional product enhancement lead to improved quality and reduced and what new products and services are costs. or will be offered? In terms of product enhancement Are air cargo industry shows worth weA reviewed the services we were pro- to gain market information and deal tion. A little like the change curve for an theQ cost, time and labor? If so, what do viding and looked at how these can with the customer proactively in terms addict – denials had to give way to ac- they deliver; if not, what can be done to be improved through better technol- of service and quality. ceptance which ultimately happened. make them better? Which air cargo or ogy and asked the customers how we Once this occurred the quality and other trade shows do you favor? could improve information flows and If there were one thing you could frequency of dialogue between the in- The shows need to add value to the the accuracy of information. In doing changeQ about the industry to make it dustry and TSA picked up – it became businessA and the industry. We have a lot this exercise we identified a number of better, what would it be? purposeful, not theoretical…this al- of shows but a number are niches or USP’s that we capitalized on initially The industry governance does need lowed for a certain amount of flexibility specific to a sector within the industry and then enhanced. toA be adapted as it has not amended its in dealing with certain issues as the which are relevant in a different way. The introduction of Freightscan model at the same speed the airlines implementation unfolded. It helps that The general shows can be broken have adopted change. there was the single point of contact down in to added value by way of IATA for example still talks to the with the TSA as the sole regulatory networking, presenting your services airlines only on handling and does agency charged with the implementa- at a stand or booth and the content of not fully engage the ‘handlers’ who tion. This may be an issue in Europe the guest speakers in relevance to the are working on behalf of the airlines where likely multiple regulatory agen- business and subject. when it comes to quality and other cies will be involved. The not to miss for Swissport are initiatives. The same is true with The staggered implementation of CNS in the USA, an IATA/TIACA security in the USA where the TSA 50% then 75% before the final 100% event in the world and the Munich Air engage the airlines and make it the threshold was required was effective. It Cargo event. In saying this, Swissport airlines responsibility to inform is a basic change management approach will attend a number of other events if the handler(s). Each airline has a to implement significant change in they see the opportunity to meet with slightly different take on what is manageable bite size morsels in order customers or gain new business.

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 29 Air Cargo News FlyingTypers BY FLOSSIE AREND Preservation Always In Focus During the past 35 years, Air Cargo News FlyingTypers publisher Geoffrey Arend has been recognized locally, nationally and internationally for his work in historical and aviation preservation. He is author to a dozen books, including a landmark 800-page study of 137 world airports created for Airport Council International titled, “Great Airports Worldwide.” The U.S. Department of Transportation and U.S. National Historic Trust awarded Mr. Arend its highest award “For Outstanding Contributions to Aviation & Historic Preservation” for his effort in saving The Marine Air Terminal at LaGuardia Airport in 1986. The MAT is where all international air transportation for New York City arrived and departed until 1948, when Idlewild Airport, now called JFK International Airport, opened. Pictured in 1980, Mr. Arend is seen being interviewed by Trish De Gasperis, New Jersey Public Television, in the world’s first air traffic control tower atop Building One at Newark International Airport . Earlier in 1978, Mr. Arend authored a book dedicated to saving the historic landmark, a book that is credited with saving the place from the wrecking ball. Finally, in 2001 Building One received proper funding and today, via adaptive reuse, serves as the airport manager’s headquarters at EWR.

ecently I was invited to a wed- the town of Carlisle is, quite literally, rescence took over. I knew my mother, that was cradled in the waters around ding in Boiling Springs, PA. chock-a-block with history. I couldn’t a huge milkglass aficionado, would be LaGuardia Airport, that somehow ROnthe way there, we passed turn a corner without bumping into the ashamed if I didn’t take a few pictures, wouldn’t sink despite her size. I had to through Carlisle, PA, which is home to oldest military education institution in and so with the little time I had before have her. It was on the car ride home, many things: the church where George the U.S. Army (Carlisle Barracks), or the wedding, I whipped out my camera when her wings were lying in tissues, Washington, a founding father, chose the first college of the newly formed phone and began shooting. each to its own back seat, and her body to worship; the site of one of the first United States (Dickinson College). And that’s when I saw it: A two- lay nestled on its own bed of toiletry marches in favor of the United States The Confederate Army shelled Car- foot long, Boeing 314, hanging from directly behind my seat, that I thought Constitution; the best pork chili dogs lisle during the Civil War, and Carlisle the ceiling above my head. “The Dixie of my father and his lifelong dedication in the States (otherwise known as the served as a stop on the Underground Clipper.” She was clearly old, and a little to preservation. I had bought that little “Hotchee Dog”), at the Hamilton Res- Railroad. The town is haunted with dusty, and when I asked the sales lady to plane with the same idea in mind, just taurant. Not to put too fine a point on history, and even on a quiet, sunny take her down, I could see that she was as I had bought him a Bauhaus-era it, but the “Hamilton Hotchee Dog” is Saturday afternoon, you can sense the made completely out of wood. She was Kandinsky tubular chair for Christmas a hotdog piled high with diced onions, weight of all that has transpired there. so fragile, in fact, that if I held her too last year: I know that I am saving these homemade chili, optional cheese and Before leaving the town, I stopped tightly, I could hear the cringing creak pieces when I buy them for him; I know a little mustard, and it’s so famous and in an antiques store that initially drew of balsa give under my fingertips. that once they are his, they will be for- favored that it has it’s own Facebook my eye because it stood guarded by two, I immediately thought of my father. ever preserved, because he, more than page. giant milkglass sconces. Over the last three decades, I’ve had my anyone, truly appreciates the history Carlisle is bursting with history. I found out later that those beauti- head filled with aviation information and the art of those things that most The hotel we stayed at was a little too ful pieces, along with about ten more – I’m bursting full of it, just like Car- in the modern world consider artless historical for my tastes (i.e., ramshackle inside, once hung inside the Chrysler lisle. But the Dixie Clipper has always and in desperate need of updating), but Building in New York City before fluo- stood out in my mind; a big, busty plane Pg -34

At the National Historic Trust in Washington, D.C. May 15, 1986 Secretary of T r a n s p o r t a t i o n Elizabeth Hanford Dole (right) and the Chair man of The Advisory Council on Historic Preservation Cy n t h i a G r a s s b y Baker (left) presented A i r C a r g o Ne w s FlyingTypers Publisher Geoffrey Arend the award commending our efforts in saving the Marine Air Terminal (MAT) at LaGuardia Airport in New York City.

30 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Heaven To Air Cargo Evans

OLIVER EVANS PRESIDENT SWISSWORLD

To put it simply, I try to give as much as I receive, and I have received plenty of blessings.

Q Can you describe the current ward additional product enhancement air packages which would monitor, terests you? Hobbies? condition of your business, and what and what new products and services are and therefore prevent, any attempt to A wonderful life like the one I am you think lies ahead? or will be offered? tamper with it throughout its jour- privilegedA to have cannot be boiled A Our industry has always been A Although we specialize in serving ney, therefore eliminating the need down to a few hobbies; I embrace volatile, but the latest swings (down- care-intensive markets and require for clumsy and expensive screening it and make the most of it through wards in 2009; upwards in 2010) were a range of relevant products, we are equipment at every location, can’t they? a medley of family, life, sports, na- unprecedented. Our business has been convinced that our forwarder custom- ture, music, and friends. I am lucky in rude health since the start of the year, ers are not looking for a proliferation Q In your opinion, what contributed to live in one of the most wondrous with results 36 percent above 2009 and of off-the-shelf products, which render to the success of 100% security in the countries on Earth: Switzerland. 20 percent above target. our industry more complex and con- USA? Do you believe that same success We see unfair and disruptive new fusing. Rather, we see value in improv- will occur in Europe and elsewhere in At some point in life, everyone ruling applying different regulations ing service through customization of the world? thinksQ about the job they delivered: for screening of cargo transported by certain solutions, or the development A If we confine our assessment to the How do you rate yourself? Why? Of freighter versus belly, and increasing of specific options within a product, operational flow, then indeed, 100% what are you most proud? suggestions of overcapacity in the like the passive solution for phar- screening can be deemed a success. I guess I am far too young to have China trade. ma goods, which we are developing. However, it has created a shamefully reachedA that point. I am proud and We do not know yet how these uneven playing field whereby freighters grateful to have been able to develop will affect business in the com- Q Has anything in the air cargo busi- are given a potential advantage. While myself as a human being, to have dis- ing months, let alone next year. nesses’ recent past surprised you? the USA will hopefully redress this covered unexpected capabilities and to But the industry is warned. A The failure to galvanize the in- wrong soon, it is hoped that Europe have used my energy to help others free dustry into a more powerful con- and the rest of the world will avoid this up their own energy. Q Has the financial crisis affected certed effort for change, despite mistake and leave shippers and their To put it simply, I try to give as much your business, and if so, how have you the economic crisis of 2009 and forwarders free to choose the airline as I receive, and I have received plenty modified the way you do business dur- the looming environmental crisis. on the basis of quality and expertise, of blessings. ing the crisis? and not on the type of aircraft used. Although our business model If there were one thing you could focusesA on those specialized markets changeQ about the industry to make it Are air cargo industry shows worth that are inherently more stable and better, what would it be? theQ cost, time and labor? If so, what do actually continued to grow in 2009, Hire a bunch of google-type creative they deliver; if not, what can be done to which gained us market share as a souls,A give them creative space at airports make them better? Which air cargo or consequence, we of course suffered like and warehouses, and wait for them to other trade shows do you favor? everyone else. inspire us out of the torpor of tradi- There are too many shows, many We made some capacity adjust- tional thinking with creative solutions. ofA which are substandard. The best, ments, briefly placed our Switzerland- which bring together the top manage- based staff on shortened working How has increased security ment of all stakeholders in the industry hours, and canceled or postponed many demandQ impacted your business? from airlines to forwarders to shipper unessential projects and expenditures. Security costs have increased ten- representatives, are well worthwile. foldA since 2002. Surely, one of these Q What actions have you taken to- google-types can invent a sensor for Q When not working, what else in- AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 31 Special To Air Cargo News FlyingTypers BY JEFFREY KRIENDLER China Clipper Conquered Pacific 75 Years Ago oon after establishing the airline It was Trippe’s style to research and and launching service throughout prepare in a secretive manner before he SCentral America and the Carib- pursued his goals. This policy would bean from his South Florida base, Pan keep the competition from knowing Am’s legendary founder, Juan Trippe, where he was planning to next expand. set his sights on crossing the North At- His method in establishing a new route lantic. But he lacked the landing rights was to first obtain landing rights, sec- on both sides of the Atlantic, and his ond acquire equipment and third, bid British counterpart, Imperial Airways the maximum amount allowed on mail (British Air), lacked the aircraft tech- routes. His rivals would usually make nology to compete with Pan American lower bids on the mail route, but did Airways. The British therefore thwarted so without first establishing guarantees transatlantic negotiations, and he of ability to perform within the speci- turned his attention westward to the fied period. vast Orient. Trippe, a man of unpar- In the summer of 1931, Charles and alleled foresight, had the audacity to Ann Morrow-Lindbergh departed Long encompass the world in his master plan Island on an interesting but hazardous of creating a global air system. venture for Trippe. Their goal was to fly In 1930 he acquired a large, ter- a great circle route to the Orient diago- restrial globe, which was probably the nally across Canada to Ottawa, Hudson most conspicuous piece of furniture Bay, Baker Lake, Point Barrow, Alaska, in his office. He was pictured standing then south to Nome, across the Bering next to the globe with a piece of string Sea to Siberia’s Kamchatka Peninsula, in his hand, which he used to measure down the Japanese Island chain and distances. The globe’s axle must have finally across the Yellow Sea to main- gotten a little squeaky from constant land China. This was accomplished in rotation, because Pan American was a specially outfitted Lockheed Sirius in a continuous state of expansion in aircraft. It had two cockpits, each with the 1930s. a sliding canopy, a 600 hp engine and it

Back in 1935 when the hardstand was water, Pan American Airways Martin M130, A.K.A. “The China Clipper,” was front page news worldwide, whether it was departing Miami Dinner Key (top photo) or upon arrival in Manila Bay (left) surrounded by celebrants in small boats.

was fitted with two pontoons for water disappointing for Lindbergh. He re- landings. ported to Trippe that the route had Additionally, the pontoons were ice bound harbors, frozen terrain, gas tanks that could be filled with pervasive fog, and regions where the enough fuel to fly two thousand miles. temperature would drop to 60 degrees For greater contrast and attraction, its below zero. In order to be a viable air wings were painted a bright orange. The route during the winter, airports would Lindberghs had planned and prepared have to be brightly lit because of the for this expedition for more than a year. darkness that prevailed much of the Ann was a Smith’s College alumni and year. Aircraft would need to be outfit- a petite woman—in other words, an ted with skies for portions of the route unlikely candidate to be co-navigator and radio navigation would be vital and radio operator, but she prepared for flight operation not only across herself by learning Morse code and the tundra, but down the vast Siberian radio repair. The cost of the expedition shoreline, which was unpopulated. De- was mainly borne by the Lindberghs. The result of the survey flight was Pg -34 32 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Congratulations to Air Cargo News on 35 years of dedicated, passionate journalism!

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AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 33 my time is dedicated to my very active tional and financial performance of the Delta’s Billion Dollar Baby From Pg-23 family. I have three children, ages 6, organizations I have had the privilege the cost, time and labor? If so, what do to simplify the processes and program- 10 and 13 and they have a very hectic to lead. I would have to say that I am they deliver; if not, what can be done ming, the easier it is for sales people to schedule. So, my wife and I spend the most proud of coming to Delta in Janu- to make them better? Which air cargo show up at the show and sell. weekends driving them from one activ- ary 2008 and in the span of about 2 or other trade shows do you favor? In terms of which shows we place ity to another. When I do have some years we have turned Delta Cargo into A We debate this a lot in the Delta special emphasis on, we always make downtime, I really enjoy playing tennis a Tier 1 supplier with industry leading Cargo marketing department. My sure we are at Air Cargo, CNS, the spe- and swimming. financial performance. During this short answer is that the value of the cialty shows mentioned above, plus a time period we merged two airlines show is directly tied to how easy the few others. Also, in conjunction with At some point in life, every- together to create one global power- organizers make it for sales people and our Sky Team partners, we are always oneQ thinks about the job they de- house and we did this in a seamless way customers to do business. at TIACA, Air Cargo Europe and Air livered: How do you rate yourself? to our customers. In this industry we There are some specialty shows like Freight Asia. Why? Of what are you most proud? must form deep relationships with our PMA and the National Funeral Direc- A I will let other people rate my per- customers and I truly believe we have tor’s show that I think set the mark for Q When not working, what formance but I feel that I have really been able to accomplish this which I at- making it easy to attend. The more a else interests you? Hobbies? grown as a leader over the past several tribute as the key factor of our amazing show organizer does on the front end A When I am not working all of years, and it is reflected in the opera- turnaround.

China Clipper From Page-32 Pan American’s purchasing agent. Juan miles in area. These islets were located This monumental feat of creating Trippe directed Gledhill to write a letter 1,185 miles west of Midway Island and an air bridge across the middle of the spite his pessimism, Lindbergh thought in June 1931 to the six leading aircraft 1,510 miles east of Guam. No wonder Pacific from San Francisco to the Phil- that the route could be flown—and manufacturers, inviting them to submit it was hard to find. Captain Alvaro de lipines and Hong Kong is considered right away. designs for a new plane: “a high speed, Mendana discovered them on October one of the most important achieve- In the fall of 1931, Trippe began ne- multi-engine flying boat with a range of 20, 1568. Nothing else was heard about ments in commercial aviation. gotiations with the Soviet government 2,500 miles against 30 mile headwinds, these isolated islets for 228 years, until Not only did it expand the influence trading agency, Amtorg, for permission [that can] accommodate a crew of four Captain William Wake, for whom the of a fledging Pan American Airways, to operate an airline on Soviet territory. and carry 300 pounds of mail.” Only atoll was named in 1796, rediscovered but it amplified America’s stature and Before long, he signed a contract that two aircraft manufactures submitted them. importance in international aviation. gave him the right to cross Siberia as designs: Igor Sikorsky and Glenn L. The route of Trippe’s China Clipper Most importantly, it made the people of far as Moscow. Martin. Trippe believed in competi- lay north of the Caroline and Marshall America and Asia feel connected. Trippe agreed to train Russian pilots tion for everyone, except for himself. In Island groups and south of the North- Over six hundred people, former and build hangars along the route in November 1932, three planes from each ern Marianas. Navigating this route in Pan Am employees, aviation buffs exchange. At this point, the U.S. State manufacturer were ordered, thus pit- an airplane in the nineteen thirties was and fans of the great pioneer airline, Department intervened and told Pan ting one company against the other. like threading a needle, with Guam as will meet in San Francisco November American to discontinue any further The missing link in Trippe’s grand the eye of the needle. Trippe decided 17-20, 2010 to celebrate the 75th an- attempt to pursue this venture as the design of crossing the Pacific was a that he had no other options but to niversary of this fabled event, which U.S. government did not recognize the piece of land located between Midway cross the Pacific near its widest point. literally shrunk the globe. For informa- Soviet government (due to their refusal and Guam. The route of the China Clipper tion providing details of the program, to pay their World War I debt). Trippe spent hours in the New York went down a corridor between the please visit the website www.china-clip- The Pacific Ocean covers one third City library researching the logbooks fortified Japanese Trust territories of per.com. Everyone is welcome to pay of the world’s surface and contains of old Clipper Ships’ for that nebulous the Carolina and Marshall Island and tribute to the great pioneers who made approximately twenty-five thousand piece of information. Finally, he found the Northern Marianas. The inaugural this incredible journey possible and for Islands. It is restless, eternal, and vast what he needed. It was called Wake China Clipper flight, connecting China the later generations of Pan Am people beyond understanding. Pan American Island; composed of 3 islets, it lay 8 with Asia, was launched November 22, who brought the airline to the pinnacle needed airplanes. Frank Gledhill was feet above sea level and was 3 square 1935. of the aviation world.

Preservation In Focus From or Terminal Two at JFK.” buildings to separate the airline gates history as older nations. We are merely Page 30 Pei Cobb Freed partner, George from the main terminal, which relieved teenagers by comparison, and must and unnecessary. Miller, said, “This came as quite a passenger congestion that was just be- begin to find worth in our own history It was in those thoughts that my surprise to us, and a great disappoint- coming an issue in the 1970s; now, this in order to maintain some kind of iden- mind was drawn to a recent preserva- ment.” separation is the norm. tity; otherwise, we will be the country tion endeavor regarding Terminal Six The Winner of a national design NY Tristate DOCOCOMO is cur- of strip malls and Starbucks. at JFK. When my father heard that the competition, Terminal Six is the birth rently in talks with local organizations IM Pei-designed Terminal Six was to be mother for airport design in terms of to help save the terminal. “It would be destroyed, he immediately took action, what was to come after. You can see its a total waste of energy and money and contacting any news service that would all-glass design mimicked in airports resources to demolish a building of this listen. With coverage from the NY Daily around the world, and Pei’s use of glass scale,” said DOCOMOMO- New York News, my father made moves to justify as opposed to metal mullions was un- chair Nina Rappaport. its landmark status. precedented at the time, creating one “The exquisite ‘Light Box,’ or ‘Sun- “It represents an era of aviation,” he of the first suspended glazing systems drome,’ is one of the most important, said. “Terminal Six at JFK belongs to the in the U.S. influential creations of airport archi- people and, because of its design and Pei also incorporated an innova- tecture in the world,” said Geoffrey historical significance, to the ages.” tive drainage system that fed into the Arend, in a recent Air Cargo News Paul Goldberger, a Pulitzer prize exterior columns of the building and FlyingTypers. winner and architecture critic, said, allowed for a clear, airy feeling within What we most need now are people “I’m shocked that the building, which the terminal. like my father, people who not only see represented such an extraordinary “The transparency of the glass and the value in recycling older buildings, advance in airport terminal design, the uninterrupted ceiling are what but also the beauty inherent within would be summarily dismissed by the give the building its character,” said Pei them. For a country that is so quick Port Authority as if it were no different Cobb Freed partner Michael Flynn. to tear down and rebuild, we simply from the old (passenger) Terminal One Terminal Six was also one of the first do not have the kind of architectural 34 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE The 2000-2010 Decade In The Rearview Mirror

e blinked, and look what events since then! and its SAir Group of companies was Sabena in its wake. Who’d have thunk has gone down – the Those in quiet, faraway places must where it belonged in the minds of its it? As usual, hindsight is 20/20. dotcom bust was just be laughing their heads off at how far home country, the customers and the Following the usual wrangling gaining momentum, we’d go to avoid taking on the obvious! industry at large. It was in the midst of among stakeholders, Europe’s erstwhile WBill Clinton was U.S. president, and We still manage largest regional airline, Crossair, ac- boarding an airliner was a relatively to do business quired the rights and some of the assets straightforward affair. We have since despite all the of Swissair and, voila! Swiss was borne. succumbed to the mechanical stock- hurdles; appar- As the French say, “le roi est mort, vive ing-foot shuffle, beltless, take-out-the- ently we can. And le roi!” (The King is dead! Long live laptop routine, together with screening this despite $140 the King!) cargo on passenger aircraft—and all the a barrel oil pric- Not to be outdone, SN Brussels fol- baggage that brings about. es by June-July lowed suit, retaining and focusing on its It is hard to believe this was just 2008, followed traditional Africa business. The reincar- nine short years ago! Not to mention by 25 percent nation ended up being renamed Brus- the collective cost the “free-world” less cargo at the sels Airlines – I wish I had the brilliance has been paying for the infrastructure, end of 2008/ of the marketing consultants who came resources and inconvenience to handle Q1 2009 due to up with that one, not to mention the the security regime post 9/11. global economic fees they must have been paid! The sad In retrospect, it’s breathtaking to try downturn, which part concerns the many former employ- and take in the monumental changes resulted in revenue losses of up to 40 building its own Qualifier Alliance, only ees who weren’t accommodated in the that have rocked the industry in wave percent year-to-year. to implode ignominiously and bite the process, and we are talking about some after shockwave of unprecedented Going back to the year 2000, Swissair dust by the end of 2001, taking down Pg-6 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 35 Pg-35 At TIACA Paris, while some maintained EDI implemen- tation as critical to the future, others took what they feel is a of the most qualified and experienced more realistic view. As John Hartnett, Project Director for professionals around. Project 2000 put it, “If we spent a trillion dollars on this The former Swissair data center technology tomorrow, all that would come out is that the at Kloten Airport ended up with customer would know how poor the service really is.” EDS – remember the company that He added, “Unless you get the processes right, EDI won’t pioneered outsourcing in the airline help. The integrators have spent millions in measurement.” industry, now merely “HP-EDS.” Hartnett went on to point out the necessity for studying CARIDO, considered by many ex- the cargo process. He warned that reliable, time definite service was what the perts the best of breed, IBM TPF-based industry really needs. Technology alone will only expose, not solve, the industry’s cargo system in the world, with all the problems. thansa Cargo and Singapore Airlines hundreds of man-years of develop- Cargo. ment invested over 25 plus years, was going global, they don’t yet capture and in 2001, the same year the U.S. Cargo In 2002, JAL Cargo joined the WOW mothballed. offer all the flavors anticipated, because Sales Joint Venture was established. Alliance. It didn’t seem to get very far, So where does some of that accu- some airlines and forwarders are keen and actually in 2009 founding mem- mulated and invaluable institutional to cover all the bases and end up par- ber Lufthansa Cargo quit the WOW knowledge go, and ticipating in both Community Systems Alliance. Only time will tell whether who benefits? and proprietary facilities, such as the this has been a missed opportunity or One example is Unisys Cargo Portal Services. Clearly, a reflection of what may or may not Angelo Bernaschina, there is an added cost to do both, yet be workable as a group rather than an a cargo system walk- major carriers including Air Canada, independent airline pursuing its best ing encyclopedia and Air France (Traxon co-founder), interests. a friend, who has been American, Continental, Delta, Luf- Its dominant airline – Lufthansa working for Emirates thansa Cargo (co-founder of Traxon), It was a unique – has gradually deepened its ties with Cargo. As the famous SAS and United have joined. and interesting ap- more airlines, some by means of direct quote attributed to General MacArthur The fundamental bone of conten- proach with Joint financial control: takeover of Swiss in goes, “Old soldiers never die, they just tion evidently remains unchanged; in Venture, rather 2005, takeover of Austrian Airlines fade away.” the majority of cases, it’s still an airline than the individual in 2008, a controlling stake in bmi in It’s always the special people—per- paid utility, free for the forwarders, carrier’s sales force, 2008 and subsequent buyout in 2009, sonalities and characters who abound whether the shipment data is provided acting collectively strategic stake in Brussels Airlines in this unique line of business, and I by means of EDI or a simple e-mail. in the market. The and envisioned takeover by 2011, a want to pay tribute to them. The late The paradigm hasn’t changed much, executive heading significant investment in JetBlue in John Hartnett comes to mind, the which is a disappointment, but not Bernard Frattini the venture rotated 2008—that’s quite an appetite! distinguished and jovial former head a surprise. The result has been the among the member With OneWorld – whose members of cargo at Aer Lingus, who as project increasingly continued dominance airlines. KLM joined include Aer Lingus, American Air- director was the heart and soul of of the integrators as market leaders, in 2004 and Northwest in 2005. Of lines, British Airways, Cathay Pacific Cargo 2000. John was instrumental in a trend that solidified further during particular mention is Bernard Frattini, Airways, Finnair, Iberia, LanChile and Cargo MEDIA, the precursor to Cargo this decade. chief executive then based in Atlanta, Qantas – there is little to report since 2000 and a member of the hallowed How did airline alliances fare these who gave generously of his time and the announcement of intent, back in IATA Cargo Committee (a.k.a. the past years? We were treated to several invaluable insights and returned to 2002, to expand into other business cargo bulls). nuptials with some of the more no- AF/KL in 2006. areas, including cargo. The paradox is that had the airlines table ones including Air France/KLM Delta subsequently acquired North- Usually, it is activities such as out- implemented the Cargo-IMP stan- in 2004, AF-KL/Martinair and Delta/ west in 2008 and proceeded to dispose sourced services, ground handling and dards adopted over the years by the Northwest. We will never know how of the entire B747 freighter fleet. New IT systems where cooperation stands IATA Cargo Services Conference in many shotgun weddings there were, management and the economic down- to bring the biggest practical benefits. a uniformly consistent fashion, there but to quote Oscar Wilde, “Marriage JAL, MALEV, Mexicana and Royal would have been little work left for is the triumph of imagination over Jordanian have also joined the alliance, Cargo 2000. intelligence.” with JAL presently being the hotly What evolved based on its ‘Master SkyTeam Cargo was founded fought for between SkyTeam, respec- Operating Plan’ is the “add on” high in 2000 and included Aeroméxico tively Delta, and American for greater end CDMP (Cargo 2000 data manage- Cargo, Air France Cargo, Delta Air Japan access. JAL’s troubled financials ment platform), whose development Logistics and Korean Air Cargo. make this a fascinating courtship to contract was hotly contested by Unisys Czech Airlines and Alitalia joined watch, with an equally far-reaching and BT (then Syntegra) at the time, outcome in the offing. with the latter winning the bid. Outside the alliances, there have It is now called “Air Logistics Route been a number of remarkable ‘retire- Management Service,” or RMS for turn are logical drivers of ments’ as well as ‘births’: short, and considered a ‘must have’ such decisions. A special In the Obits - Tower Air (2000); Air feature by the major players who want cargo event was the recent Europe (Italy); Song blended back into to differentiate themselves by virtue of combination of AF-KL DL and Ted rolled back into UA. TWA their membership. Cargo and Martinair, the (2001); Emery Worldwide; Canadian Things start going global where you venerable all-cargo ‘Flying Airlines Int’l taken over by Air Canada; least expect it – case in point, the Cargo Dutchman’, with AF-KL Ansett (New Zealand & Australia); Community System concept, which, by Cargo as sole shareholder VASP(2005); Kitty Hawk (2008); definition, was developed to serve all of Martinair as of Decem- Cargo B (2009); Ocean Airlines (2008); the participants in a shipment at the lo- ber 31, 2008. Gemini Air Cargo (2008). cal level. It’s gone well beyond its initial StarAlliance, the largest In the Announcements - JetBlue scope; serious consolidation has taken airlines’ alliance, was also in 2000 (Long Beach, CA) and Etihad place among providers and “global established in 2000 with (2003). JetBlue recently discovered cargo community systems” proffering the WOW Alliance rep- cargo in no small measure because of global solutions are the norm. resenting cargo, founded It would seem though that despite by SAS Cargo Group, Luf- Pg-37 36 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Helping you put the pieces together. Integrated IT solutions for air cargo

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AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 37 Pg-36 ing up all the oxygen in the room VP of sales, marketing, and cargo the innovative carriers have shown the Lufthansa influence and Lufthansa while sprinting from zero to hero. services and deputy CEO of Cargolux rapid growth and had great economic Consulting. (1970-1998), a founding father and success. A good example is Southwest, New business offerings and products: first Chairman of TIACA, in order to which grew at a compound rate of 12.3 “harmonize the global movement and percent by 2003 (measured from 1995) ULD handling of perishables and tempera- to become the fourth largest airline in Unitpool was originally created ture sensitive products (PTSP) to the the world in terms of passengers car- in 2001 as “GlobePool” within the benefit of the consumer and the supply ried. It serves about 50 percent more management team of Swissair Cargo, chain participants.” Other than having passengers than either Air France or where the concept of ULD Pooling for the privilege to know Robert, it’s no- Lufthansa and twice as many as Brit- the Qualiflyer Alliance was developed. table that he’s also a Seaboard World ish Airways (data from IATA 2004 and Swissport became a majority share- Airlines alumnus, a visionary and a very earlier). In contrast, many full service airlines have stagnated in terms of their traffic and gone into bankruptcy (examples include Air Canada, United, US Airways). These comparative trajec- tories imply that the parallel networks Des Vertannes of aviation services of the innovative airlines are likely to become relatively Etihad Crystal Cargo secured Des stronger and more important. They Vertannes as executive VP only to have may even go from being interesting but him depart for IATA and Geneva in marginal networks to being a major al- June 2010. ternative over the next generation. This In Asia, Tony Fernandes (right) pur- possibility might completely alter the chased AirAsia and by 2009 turned it trends in airport use and our expecta- into the world’s largest low cost carrier. holder in 2003 and was subsequently fine gentleman all around. tions of the future of airport develop- Not to be outdone, Vijay Mallya started acquired by Spanish company Ferro- Membership consists of airports, ment and airport services.” Kingfisher Airlines in 2005, which is vial in 2005. In 2007, private investors terminals, logistics companies, ground Ground handling has also gone Aviation Services Holding acquired handling organizations, dedicated through globalization—DNATA, Fra- Unitpool. equipment and technology providers, port, Swissport, WFS are a few typical The second and only other player but only three airlines. examples. Whether individual airlines is Jettainer, established in 2004 when Airlines offer dedicated product or alliances will gravitate more toward Germany’s Lufthansa Cargo teamed lines, such as ‘Variation Pharma,’ doing business with a single global with mobile asset management com- launched in 2005 by Sky Team Cargo, ground handling company, which may pany TrenStar, Inc. It is amazing that which features AC Cool (Air Canada). cover their entire network, is something not more airlines partake in ULD that remains to be seen for the next pooling, which in principle seems Significant market developments: decade. Vijay Mallya Tony Fernandes to be tailor-made to serve alliances Deutsche Post’s decision to have in particular. Australian CHEP, a DHL exit the U.S. express shipping IT Systems on its way to becoming India’s largest Brambles company, unsuccessfully market – estimates were that DHL held The past decade was marked by the private airline. pioneered the initial concept in the mid 3 percent of the U.S. ground express absence of the type of in-depth indus- In November 2001, Atlas Air World- 90’s under the leadership of Emmet market and 8 percent of the air parcel try-wide trade press coverage (not seen wide Holdings acquired Polar Air Hobbs, the former Qantas cargo boss. market. since AirTrade’s demise) on this topic. I Cargo. On the all-cargo page, in 2007 still keep a copy of Chris Pocock’s 1993 Cool Airport Developments “Airline Cargo Systems – Rotting at the Primarily as a result of the Low Cost Core” series on file. Carriers’ evolution, we have seen cas- There are developments, but there cading effects on airport development doesn’t seem to be a single dominant in terms of both passenger and cargo player in a market replete with legacy traffic. We have witnessed secondary systems, a fact the individual providers Cargolux, together with NCA became airports gaining prominence in several are likely to contest. The subject is usu- the launch customer for the B747-8 countries: Germany - Frankfurt/Hahn, ally hype infused, shrouded in secrecy freighter. Belgium - Brussels/Charleroi, Sweden and governed by big egos. That much If one were to judge based on the - Stockholm/Skavsta, U.S. - Los Ange- for what is considered a strategic tool most frequently mentioned success les/Ontario, CA and Long Beach. in good times, not to mention during story of the decade, appearing un- The following figures from “The Fu- a crisis. restrained in the trade press, Emir- ture of Secondary Airports, by Richard What emerged are new major sys- ates Airlines certainly takes the cake. de Neufville, Professor, Engineering tems, including Mercator’s SkyChain, Fueled by unbending ambition for Systems Division at MIT” serve to fur- which followed its RAPID Cargo firsts, it overshadowed and outclassed Cool Chain Association was found- ther illustrate the point: all other coverage, sometimes suck- ed in 2003 by Robert Arendal, former The same work further states: “… Pg-40

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AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 39 Pg-38 – three very different technologies and tions’ on the Unisys home page, this is to the United States during various platforms, not to mention the business what it returns: periods between 2002 and 2007”. solutions and IBS’ iCargo. SkyChain philosophy each represents. Unisys announced development of Under the plea agreements, which was initially developed with its key Having some firsthand experience its next generation LMS in 2007 to be are subject to court approval, the customer, Emirates Sky Cargo, in mind, with the latter two, I never really under- based on a J2EE platform (SkyChain six companies have agreed to pay and has since been introduced at Swiss stood how this made sense from either and iCargo are also J2EE based). the following criminal fines: EGL, World Cargo and Virgin Atlantic cargo, the provider or the customer perspec- Rollouts will be a topic for the next $4,486,120; K+N, $9,865,044; Geologis- decade. tics, $687,960; Panalpina, $11,947,845; Fuel Surcharge scandals have been a Schenker, $3,535,514; and BAX Global, hallmark of the last 3 years, with fines $19,745,927. now exceeding 2 billion dollars and the The companies have also agreed to ‘rogues’ gallery’ too long to list. cooperate with the department’s ongo- Extensive coverage has been lavished ing antitrust investigation which would on this topic and culminated with fed- seem to indicate that these investiga- eral agents’ impromptu appearances at tions are far from over. various events, appearances that clearly “The department’s investigation dampened the enthusiasm of executives uncovered six different conspiracies to attend and kept travel, especially to harming businesses and consumers in the U.S., to the absolutely minimum the United States and across the globe,” necessary. said Christine Varney, Assistant Attor- Not to be outdone, the forwarders ney General in charge of the Depart- have their own show and air cargo ment of Justice’s Antitrust Division. price fixing investigations continue as Our investigation continues in this six freight forwarders ready guilty pleas important industry.” and will pay fines totaling $50.27 mil- Meantime that Air France-KLM and lion. For their roles in several conspira- Martinair imbroglio has hundreds of cies to fix a variety of fees and charges, European companies, led by Ericsson followed by the UAE’s Midex Airlines. tive. Northwest Airlines shocked Unisys the U.S. Department of Justice said. and Philips, alleging air cargo price-fix- iCargo was implemented at NCA, by signing an agreement for it, but it These are the first charges filed as ing with the carriers facing claims of up Austrian Airlines opted for its SaaS never materialized and following the a result of the department’s antitrust to 500m Euros ($681 million). (software as a service) version and Delta merger it’s all Unisys again. investigation of the freight forwarding Air France-KLM, which has declined Kingfisher in India is another customer. In 2007, prior to the SITA/CHAMP industry. U.S. DOJ filed the charges in to comment, paid a fine of $350m for Further domestic airlines are CargoJet deal, Singapore Airlines Cargo signed U.S. District Court for the District of conspiring to fix prices for air cargo in Canada and Northern Air Cargo in up for Cargospot, which was imple- Columbia, naming six companies in- rates, following a U.S. Justice Depart- Alaska. What stands out for me is the mented at Alaska Airlines – again, cluding Houston based EGL Inc.; Swit- ment probe in 2008. It also agreed to lack of commonality among the cus- two dramatically different business zerland’s Kühne + Nagel International an $87m settlement of its civil liabilities tomers’ business. It is unclear where one models. AG (K+N); Bermuda’s Geologistics In- in the U.S. of the founding members of the “core And then there is Unisys with its ternational Management; Switzerland’s Not to worry; BA and Rolls Royce group of influence,” Air New Zealand, LMS (logistics management system) Panalpina World Transport (Holding) launched alternative fuel trials and stands with its deployment. legacy platform with an Internet facade Ltd.; Schenker AG, based in Essen, Virgin trialed a biofuel, so there is hope The SITA and CHAMP partnership, and many of this industry’s heavy- Germany; and BAX Global Inc., based this will fade as a headline-capturing which has operated as CHAMP Cargo- duty leaders—Air Canada, Air France, in Toledo Ohio. story in the future! systems since 2004 and was broadened Cathay Pacific and Lufthansa Cargo U.S. DOJ said that these companies Personally, I just hope cell phone use in 2008 by the acquisition of Cargospot, among others. Winning SAS Cargo “engaged in one or more separate never makes it into the cabin and web offers an embarrassment of riches as a customer took twenty years, and conspiracies to impose certain charges access deployment continues—I am – the legacy IBM TPF based SITA cus- was announced in 2003. The adage is or fees on customers purchasing inter- admittedly conflicted on this. Have a tomer base, the CHAMP Unisys based “a picture is worth a thousand words” national freight forwarding services for great next decade y’all, and some feed- customers and the Cargospot clients – when entering ‘airline logistics solu- cargo freight destined for air shipment back when you have a spare moment!

40 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Old Containers Never Die . . . Twenty years after Seaboard World Airways, the great New York City pioneer, all-cargo airline to the world, was bought by Flying Tigers and ceased to exist, a legendary SW ‘A’ container pops up in late Sep- tember 2000 behind the old Flying Tigers Building #262 (now FedEx) at JFK. The ‘A’ which flew aboard Delta may be investing millions SWA’s beautiful “Containership” of dollars improving its JFK cargo B747 from 1974, visiting gateways operation, but on the last day of the from Paris to Beirut, apparently is first summer of the new millennium still going strong today. Next month air cargo people were center-stage as ACN will publish a special remem- Delta Air Logistics held its yearly open brance of Seaboard World. house Employee/Customer “Apprecia- tion Day.” Gene “Gino” Barbieri, DL Manager cargo services JFK, and the entire team once again delivered freshly grilled hot dogs, hamburgers, even some fragrant bratwurst and other assorted goodies to all comers. As he heaped another plate, Gino surveyed the scene and remarked: “This is fun.”

While you were at the beach, the first A340-600 wings and tube were matched up at the Toulouse aircraft works in France. Airbus has bigger plans, you may have heard, but right now this A340-600 is the largest aircraft to come out of the European manufacturer so far.

EMO Trans has been providing international freight forwarding and global logistics services for air, land, and sea cargo since 1965. With a network that consists of more than 250 offices in over 120 countries, we offer door-to-door control of every shipment. EMO Trans has the global presence and the local knowledge to customize logistics solutions which provides a level of service that is unparalled in the industry. SUCCESS BY PERFORMANCE

[email protected] | www.emotrans.com

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 41 beautiful, expansive new air gateway terminal at Ataturk. With international air traffic expected to top 20 million by KAL Cargo JFK Opus Opens . . . Now that the name Federal Ex- 2005, the new facility built at a cost of press has been changed to FedEx (which $306 million, was delivered 8 months is what the rest of the world always ahead of schedule, in 22 months by its called the overnight package company Turkish/Austrian consortium builders. anyway) FDX (the integrator’s corpo- Turkey’s President Suleyman Demirel rate name) has been changed too. FDX greeted the first flight, a KLM jet from Corp. is now FedEx Corp. RPS which Amsterdam, Monday January 10. Federal bought a while back is renamed . . . On a Wing and a Prayer Dept.: FedEx Ground. If as the joke goes, UPS Continental said that it will quit its buys the whole mess, will the new com- three weekly flights between Honolulu pany be renamed FedUP? and Tokyo while it awaits more landing . . . Air France takes a 70% position slots. CO is getting its brains knocked at a cost of $43.5 million in Regional out head to head against four daily Ja- Outstanding air cargo facility Airlines, an operator to several Euro- pan Airlines, three daily Northwest and opening of 2000 is Korean Air pean destinations from French cities a single daily United service between Lines’ super terminal at JFK other than Paris. the two cities. International Airport in New York. . . . Ninth UPS European Business . . . Get ready for the year of the The facility capable of moving Monitor polling 1,500 executives said finance guys—always there, but never 200,000 tons per year will also serve the Skyteam partners Air that within five years, seventy-three more than when business is chal- France and Aeromexico. With lenged or when the cost of Jet-A heads percent of these executives expect to transPacific cargo projections to utilize Internet for real-time delivery of upwards. With oil prices at their high- double digit growth, KAL Cargo is now the second largest cargo airline in the business news. Right now newspapers est level in 10 years, OPEC ministers world. In 2001 KAL debuts its new facility at Inchon, Korea. Pictured are two of rule the field (58%), weekly magazines, can choose to increase production or air cargo’s greats, Ken Choi of Korean Air Cargo (left) and Brendan Furlong of (17%) and online is last at (11%), UPS extend limits due to expire March 31. China Airlines Cargo (right). said. Pressure to go up or down right now is . . . Atlas Air signed a first in his- tremendous. tory—ACMI contract with a Mainland . . . Good timing, Sir Richard Bran- States imposed a trade embargo against million) in cash and stock. Air New China operator, China Southern Air- son opening thrice weekly service Havana. Starting in April, Cuba Travel Zealand with 110 jets, 24,000 employ- lines for a B747F. between London to New Delhi offers Services based in Los Angeles will offer ees and annual turnover of about 5.8 . . . New York City accepting propos- more service on an underserved lane once weekly direct service billion Australian dollars is now the als that would replace The Port Author- segment and competition for Air India. . . . USA to fight EU rule against world’s 20th biggest airline. Singapore ity of New York and New Jersey when Those new flights also mark the end of hush-kit equipped aircraft filing a kicks it up yet another notch rolling out the agency lease on LaGuardia and JFK the last bastion of total privacy as the complaint with the International more of their mega-bucks to buy into International Airport expires in 2015 Boeing B747-400s allow passengers to Civil Aviation Organization (ICAO) Air NZ paying $70.3 million USD for or is terminated by the city. New York send and receive cellular phone calls in Montreal. an 8.3% share or about 18% more than City Mayor Giuliani said: “New York during flights. Call it cellular pollu- . . . Saudi Arabian Airlines launched Air NZ’s stock is worth. SIA is expected deserves world-class airports. Because tion-but it does seem odd that the non-stop MD11 all-cargo services to buy more from Brierly Investments of decades of neglect we are losing cleaner aircraft operate outside, the JFK-New York to Saudi Arabia. Saudi later but not anywhere near the almost passengers, we are losing business more dense, busy and unforgiving it Arabian Airlines which also expanded 49% controlling interest they wanted. and we’re losing prestige because of gets inside. The Virgin move under- its routes to include Milan, Nice, Alex- Air NZ and the government of New Port Authority management. The Port scores a general loosening of curbs on andria, Athens and Malaga said that it Zealand just could not stomach their Authority has proven time and again investment by India. Indian executives carried more passengers and cargo in national flag carrier being controlled that JFK and LaGuardia are not its are investing and raising substantial 1999 than at any time in the carrier’s 50 by another nation. Singapore Airlines priorities. In 1998 alone, approximately amounts of capital abroad. American plus year history. Saudia moved more is 56% owned by the Singapore govern- $150 million went to subsidize the New investors note that barriers are drop- than 1.4 million passengers and 270,000 ment. Singapore Airlines with a billion Jersey PATH train instead of funding ping daily. Growth of an economy, tons of air cargo. or two in cash to spend, wants the Aus- improvements for our airports,” the stagnant for the past three years and . . . Talk about a slow boat to Chi- tralian market which has been growing Mayor said. reforms taking hold from the three- na—Air Koryo is sick and tired of at an annual APR of better than 40% . . . Delta Air Lines and Air France month old coalition government led getting stiffed on its Pyongyang-to- for the past five years. are adding to that beautiful friendship by the Bharatiya Janata Party at work Macau flights with poor load factors so . . . France’s state-owned railroad with Paris, Atlanta, Cincinnati, Boston in India today. Virgin also launched the North Korean carrier is asking for called SNCF may become the first additional services and all new flights its Australian low cost airline Virgin permission to fly to Hong Kong. Good railroad to join an air alliance. SNCF to Philadelphia starting May 15. Could Blue. Virgin Blue a discounter ends the luck to them. By the time Hong Kong already has a deal with United and this be the beginning of love, brother? monopolies of Qantas and Ansett in western-type security gets finished Lufthansa as well as Air France and . . . Despite some last minute changes the down under market, although now making sure the flights are not used as American for several services from Paris in the way Boeing counts its orders, Air- Singapore Airlines has a big chunk of fronts for smuggling, terrorists, drugs, airports to various destinations. bus topped the annual order race with two out of three carriers. illicit currency runners and the like, . . . It’s official—Atlanta’s Hartsfield 476 versus Boeing’s 391 in 1999. The . . . Philippine President Joseph passengers will probably wish they ar- International Airport-ATL bumps last time Airbus beat Boeing in total Estrada broke ground for a new $500 rived by sea. Chicago’s O’Hare International Airport orders was in 1994—a year that was so million passenger handling facility at . . . Aeroport de Paris purchased 10% as world’s busiest airport with 909,840 soft—both manufacturers would rather Ninoy Aquino International Airport. of Bejing Capital International Airport take offs and landings last year versus forget. Right now the Airbus back-log The airport is named for the Philippine for $117 million. 897,290 at ORD. Other U.S. gateways in of orders is on par with Boeing’s for the patriot who was assassinated on the . . . The action is fast and fierce and order of same were DFW-867,338; LAX first time in history. Meantime Boe- airport hardstand after a flight home it’s mostly in Southeast Asia. Air New with 778,964 and DTW with 559,548. ing, maybe down, but far from out, is during the Marcos regime. The new Zealand aiming high at knocking off . . . Malaysian Air earned an inspired, expected to announce some stunning terminal is slated to open in 2004 competition for Australia’s skies, buys yet narrow $11.3 million in the nine orders for 2000 as Asia/Pacific once . . . LAX gets the nod to resume the up the rest of Ansett Australia (50%) month period ended December 31, as again is in play . first flights between California and paying Rupert Murdoch’s News Corp. the Asian comeback picked up speed. . . . Atta-boy as Istanbul opened its Cuba since 1962 when the United 670 Australian dollars (USD$424.5 Korean Air 1999 net income dipped

42 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 13% to $228 million as costs jumped, Initially the A3XX would carry 550 to $9.9 million . . . The painted tails didn’t do it. The people in three classes and would range . . . U.S. ban on smok- busto Millennium dome sponsorship in 7,650 miles linking the Dubai-based ing aboard an interna- London didn’t do it. Even the employ- airline with anywhere else in the world. tional flight has gone ees who by all measure hated this guy Although Emirates Airlines indicated from voluntary to man- with a passion did not cause the fall of that it would buy up to 10 of the su- datory. But this is an 54 year-old Robert Ayling. What put perjumbos, the project still is not a go. election year. Don’t be the controversial British Airways CEO Airbus Industrie received another boost surprised if breatha- on the unemployment line were the in its bid to build the superjumbo A3XX lyzer tests are tacked on numbers. British Airways has set some (aircraft may be numbered A380). In- the air-rage bill sure to kind of record, having gone from an ternational Lease Finance Corp. in Los wind its way through accumulated billion dollars plus profit Angeles said it intends to buy five of Congress. just a few years ago to its first full year the superjets, bringing potential launch . . . Tower Air which loss since the carrier was privatized. orders for the aircraft to 22. But as re- filed for Chapter 11, New British Airways CEO Rod Ed- ported here, previously anybody who February 29th laying off about 300 was the supersonic’s 144 seats. Many avia- dington who came to the post from thinks that this airplane will not be built still flying about 20% of its flights at tion buffs left wondering, now that the Cathay Pacific where air cargo actually has rocks in their head. That sentiment presstime. For the past eighteen months supersonic star is grounded, will there has a pulse, accounting for 25% of total was endorsed earlier in May, by no less Tower B747 jets have been periodically ever be another like it? nut, said he is going to make sure air a personage than R.E.G. Davies, curator taken off line by the carrier and stripped . . . Baghdad International Airport cargo has a seat at the table as he estab- of air transport of the Smithsonian Air of their parts, to keep what was the rest opened for private flights ten years lishes a plan for British Airways future. and Space Museum. In a speech at the of the Tower Air fleet, aloft. after it was closed because of sanctions, Whether the table will be out in the hall Wings Club, Mr. Davies who knows all . . . British Airways suspension of after Iraq’s invasion of Kuwait. There is is yet to be determined. Most of what about this stuff indicated that it is his Concorde operations ahead of Euro- still an embargo on commercial flights. will happen in the near future at BA has view that the A3XX will be built, pean regulators negative findings of Iraqi Airways has been on the ground fairly well been . . . As is the custom, the July air the aircraft’s operational procedures, since 1990. cast in stone by show in Farnborough, England was also had economic overtones. After . . . Boeing’s Current Market Outlook previous man- venue for aircraft manufacturers’ an- the Air France Concorde disaster in 2000 notes that annual world growth of agement. nouncement of new orders. Airbus Paris July 25, cut and slash BA endured air cargo will continue at 6% to 7% over . . . Peter Yap, said it netted 164 planes valued at $14.5 wholesale Concorde cancellations on the next 20 years. Boeing says that since who built China billion. Boeing announced 126 aircraft the aircraft’s only remaining scheduled 1970 the number of all cargo aircraft Airlines Cargo for $12.3 billion. commercial run New York/Paris, with plying the world’s airlanes has doubled to some promi- . . . Just how fast the new China some flights booking less than 20 of Pg-46 nence and was part of the World Trade Organization transferred to is moving can be witnessed in reports another post at that China Airlines (Taiwan) is buying Taiwan HQ, has a stake in China Cargo Airlines based left the airline. in Shanghai. CCA is owned by China . . . US Airways has sealed its labor Eastern Airlines and China Ocean Ship- pact with employees, and management ping Group, both are properties of the can proceed to turn around the fortunes Chinese Government. of an airline which has lost money for . . . As Ozires Silva, the new president the last three quarters while almost of Varig (Viacao Aerea Rio-Grandense everybody else has wracked up profits. SA) moves to reverse a $53 million dol- US Airways CEO Steve Wolf has been lar loss at the carrier last year, the new after this labor deal since he assumed chief executive brings heavy credentials command in January 1996. Wolfman to the task, having created and operated Steve has also been mentioned as in what is generally regarded as Brazil’s the running for the top spot at British greatest corporate success Embraer Airways. (Empress Brasileira de Aeronautica), Vision by Cargolux . . . German government grants a 2 the planemaker for the past 21 years. billion DM loan ($877.6 million) to But no one thinks that Varig will be a Airbus to help develop proposed 550- walk in the park. Mr. Silva told report- seat Airbus A3XX. Germany, France, ers recently: “The hostility that our Britain and Spain have “created the society has toward air transportation condition for Europe to maintain companies is palpable. To remake Varig its top position within the aviation we have to remove these obstacles.” Lasting partnerships in air cargo are only viable with an airline that invests heavily industry,” said Chancellor Gerhard . . . Speaking of Embraer, plane- in the future needs of its customers. An Schroeder. Airbus has 32 firm orders for maker raised 439.8 million reals ($244 airline that operates the newest, most economical aircraft, that values its staff the superjumbo. Earlier Britain pledged million) from new shares that will be as its most important asset and that runs $370 million USD to the project. France used to finance a new generation of the most powerful cargo management and Spain are expected to follow suit regional jets. software available. An airline that has mapped its long-term development in soon. On another front EADS posted . . . Jean-Cyril Spinetta, Air France the air freight market. third quarter sales of 5.3 billion ($4.55 CEO said that AF will join the current Cargolux Airlines billion) topping financial estimates round of consolidation: “The game in With Cargolux you gain a partner that International S.A. supports your forwarding needs today, Head Office Luxembourg given when the company went public Europe is open and of course Air France tomorrow and for many years to come. L - 2990 Luxembourg last July. will be present in this process.” An airline with a vision. Phone: (+352) 4211 3224 / 3225 / 3307 / 3925 . . . Talk about a natural. Emirates . . . For the record Libya is finally Fax: (+352) 4211 3692 Airlines word that it would love to add off the schneid. July 8th a Libyan Arab Cargolux. Email: [email protected] the A3XX to its ultra-modern fleet is Airlines Airbus A320 landed in Cairo, Cargo First. [email protected] a huge shot in the arm for Airbus as Egypt ending Libya’s eight year interna- it moves even closer to building its tional air embargo . . . Roadway Express www.cargolux.com superjumbo for all the world to see. second quarter net profit was up 29%

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 43 Airbus In- dustrie A3XXF Bill Spohrer, who is one of the . . . Ch e ck greatest air cargo executives of this out . . . 2 all time deciding to stick around although the in this business even though his drawings we’ve 0 brainchild and baby, Challenge seen depict this Air Cargo is slowly disappearing g iant cargo 0 having been purchased by UPS. lifter with “Xs” affixed to tube and tail, there is now not a shred of doubt that by mid-decade the world will welcome a new blue rib- 0 Love This picture is a one- bon winner for “queen of the skies,” replacing the old, and some feel, tired B747. A3XXF will carry more, fly further, shot reason why most and in the long run cost less to operate. What you don’t company snaps of in- hear about is that A3XXF will be the first aircraft built dustry execs are posed with a carbon fiber central wingbox. Almost half of the and about as exciting entire bird will be manufactured from advanced metallic as cold oatmeal. Could materials and carbon composites. Other firsts include be captioned, “having a flight controls both hydraulic and electrical. Speaking of wonderful time and wish hydraulics, A3XX will feature 5000psi instead of tradi- you were here,” but this tional 3,000psi—another first. Seventeen pallets on the is all business heralding upper deck, 28 M1s on the main deck, 36 LD3s or a dozen air cargo’s first alliance. pallets and a brace of LD3s down below. A3XXF can’t wait Linking hands to mark until tomorrow, ’cause it looks better everyday. the launch April 26 of the SAS Cargo, Lufthansa Cargo and Singapore Air- lines Cargo alliance, were Manuel Aragon, (from left) Head of sales having given it his best and marketing, Lufthansa shot trying to establish Cargo, Dr. Andreas Otto; General Manager, SAS Cargo, Peter Grønlund; General Manager, Singapore a working Air Cargo Airlines Cargo, Hwang Teng Aun; General Manager Lufthansa Cargo, Stefan Lauer; and trainee sales Academy in Miami, assistants, Lufthansa Cargo, Thomas Potzel and Sonja Meiringer. but thwarted in some degree by the demands of his ad-hoc group of Lew Smith, Air Transportation Marketing Associates. This guy went out and found a market nobody executives at start up, else gave a damn about and created a first-class cargo trade show every year in a different location to nevertheless comes out a big winner, boot. Seven years ago, and still today there are hundreds of small to medium-size airports who want as TIACA takes on the task, bringing a shot at the big time, attempting to secure a major carrier as just the ticket to fill up a underutilized that big organization’s money and clout facility or an ex-military base, putting some city on the skyway to greatness. So Lew put together a to a well-needed educational venture series of shows that have been held in places such as Ft. Lauderdale, Fort Wayne, Toledo and Atlantic that can affect the future of air cargo. City. This year, ATMA was in Knoxville. Next year in May 2001, St. Petersburg, Florida is the venue. In The idea of teaching the air cargo fact ATMA at last count is booked through 2006. What’s more, these ATMA affairs are well organized arts including logistics, documentation and include reasoned, complete menus of discussion topics in sessions held throughout the event. procedures for customs, electronic “Not enough commercial customers,” is the complaint but the truth be told there is not one single information for AMS, hazardous trade show anywhere in the world of air cargo that draws commercial accounts. Take a moment and shipments rules and procedures can ask yourself, which airline or other air cargo business or facility is going to expose their customers for others to cherry now find its rightful place because of pick? What ATMA is all about, is possibilities. Best of all, every small airport or port authority or supplier at the ATMA TIACA and a Manuel to change air show is with others of the same ilk as opposed to being a little tiny fish in another trade show’s big pond. Maybe Wayne cargo. County Airport or East St. Louis feel important running with the swells at TIACA but the truth is that buyers looking for eager marketing managers and good deals at underutilized destinations depend on ATMA to cover the full menu in one shot, in one place, at one time. “Get me a carrier,” is the demand as fists hit the desk! Here’s the score. Give it some time, spend some real money and bring the audience to your city then watch what hap- pens. Just ask Ft. Wayne and Ft. Lauderdale what works. And thank Lew Smith. He is an original and his show is actually better bang for the buck, and less self indulgent than any other trade show around.

Open The Door And Let ‘em In. These women and Michael Landon, site supervisor for many other females House Movers, Inc. who is transport- are lifting the entire ing the most historic airport building air cargo form. The worldwide, home of the first air traffic time is long past control tower, the 1935 administration due for these out- building at EWR. The building is being standing air cargo moved to another part of the airport and executives to be heard in some trade show format or panel discussion will be restored to its former glory, once allowing their male counterparts to sit down, shut up and listen to what again becoming the manager’s office. Air they have to say. Pictured clockwise from left are Lan Chile’s Beatriz Craft, Cargo News, alone campaigned, for the American Airlines’ Maitte Nottle, Austrian’s Traude Kohlhofer, Northwest’s saving and restoration of the building, Marie Epstein, LAX’s Lydia Kennard, Air India’s Harminder Rana and Air since 1975. Afrique’s Marie Neptune. 44 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Longtime airline pro Kevin Hatton retires as top dog at British Airways World Cargo just as a new 2 airline CEO is named. From Cathay Pacific, based in the former British 0 protectorate of Hong Kong comes Rod Eddington to head up British Airways. 0 Eddington at the top of BA, after having operated Cathay which relies Hatton 0 on air cargo for much of its bottom line, some feel, at Hate least holds out the hope of better days at BA Cargo. This may be a first. Two years ago we heralded the return of “Cargoliners,” Unfortunately, for most of recent memory, despite the legendary all-cargo aircraft to the United Airlines fleet. But now just on the eve promises, BA Cargo has operated what forwarders and of Christmas, December 24, 2000 UAL has put its remaining DC-10-30Fs on airlines alike refer to as “black holes,” largely dysfunc- the ground in what is termed an “on hold,”mode. Well, hold this! tional air cargo buildings in both New York, London That the excitement and air of anticipation of all-cargo purists did not pan and elsewhere. out financially with these beautiful birds may be the result of the money-mak- By September comes word that BA is giving away free ing brilliance of the B777 which UAL seems to be adding almost daily. There is cargo cans on some flights from New York to London. also the question of long, thin routes, the runaway cost of fuel and presumably “This is a new breed of rate cutting,” gripes a competitor. a long list, including all the usual suspects. “They know their service is the pits and now they give Kudos anyway to Jim Hartigan. The guy runs an exciting cargo program the rates away, altogether.” which is willing to at least stick its neck out and try something different. Anybody Unperturbed, British Cargo’s last missive of 2000 is who thinks that it is easy forging change at the world’s biggest ESOP airline about all the French wine the carrier handled or mis- where everybody is Jefe should think again. Right now UAL Worldwide Cargo handled as the case may have been delivered . . . is opening new transfer handling facilities all over the place, bidding farewell to 2000 with a new facility at MIA and another translucent air cargo tent opus about to go online at Newark . . .

Politicians. Especially in Florida. No, this is not about the Presidential count which agonized for better than a month, but the blatant pandering for votes that accelerated proposing Homestead as an air cargo airport in early 2000. The ex-military base has a big population surrounding the field but that will not tempt anything more than a long sigh from the integrators and other line carriers who have set up shop and counted their future as part of the multi-billion dollar, reborn Miami International Airport. OK, OK never say never. Maybe Homestead could be reborn as an origination and destination, low-cost alternative carrier airport. Now that the election is history, will, any of these politicians who must allocate funds for the airport remember where the hell the place is?

First, Fine Air buys up Arrow Air, positioning itself as the biggest air cargo carrier in Miami then the whole thing goes Talk about bad taste—Statue of Lincoln used as bust as the company enters bankruptcy in September. But Barry art work in an English weekly air cargo publication Fine who looks like a cross between Howard Hughes and Black article announcing start up of new direct flights Bart of the ‘Perils of Pauline’ movies, will not go gentle into that from Africa to the USA. Apparently lacking space good night. or pictures to back up quotes of U.S. Secretary Remember, Fine Air is the company that survived the crash of Transportation Rodney Slater, who is black, of one of its misloaded DC-8s which killed five and wiped out and airline contenders for the routes, including a mini-mall just near MIA’s main runway in 1997. Earlier this Ghana Airways of Nigeria, it was determined that year the airline was slapped with a $3.5 million “fine” and put Abraham Lincoln, “The Great Emancipator” sit- on probation by a U.S. District judge for falsifying records. As 2000 ends, Bank of ting stone-faced in Washington, D.C. could deliver a message. Imperial America ponies up $55 million to keep Fine Air aloft and apparently on-track to attitude rather than altitude—we say. occupy a large portion of MIA’s new all-cargo EasternU next year. All of this leaves critics wondering, just how many lives does this cat have? “I’m here for the rent,” Black Bart snarls. “We will seamlessly continue,” Feckless Fine declares.

Demise of the 173-year old Journal of Commerce as a daily broad-sheet newspaper ordered by its new British owners who are said to be in an all-out blitz to propel their other property Financial Times. JOC was founded by Samuel Morse in 1817, just 41 years after the Declaration of Independence was signed. Morse code remains old Sam’s other claim to fame, although come to think of it, who studies dots and dashes anymore?

Pete Cajigal Retires Sentimental Gentleman from Florida On January 31, 2000, Gentle and decent all the time the loss of our dear friend When it comes to cargo he’s and arguably the great- A real professor Maybe the chimp should be given est airport manager, for Yes, Sir! a shot at running things? Discovery over 25 years LaGuardia Just a Latin American Valentine that 75-year old TWA, one of the Airport’s George Leighton But see Pan Am’s Pete—Repeat inventors of modern commercial “Tim” Peirce. As Miami Dade’s Cargo pro aviation, might be sold for $125 Bids adieu, Say how do million or about the cost of one Keep lookin’ up new B747. You old Smoothie

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 45 Pg-43 America will average 7.1% upward said executive directors? Now increase that Building 716E MIAD is cargo home for IATA. North Atlantic thought to be in improbability by adding that right now Alitalia and Cayman Airlines. every ten years. As example, by the end the doldrums is expected to grow an African American women manage two . . . The best part of that sensational of 1970 there were about 100 pure jet average of 5.7% during the period. order by FedEx for ten new Airbus A380 all cargo aircraft in service, but by the . . . Offer You Can’t Refuse Dept.: super jumbo all-cargo aircraft is what it end of 1999 the number was about Air Canada cuts 2,000 jobs once it com- says about the quality of the European 1,700. Boeing also notes that “cargo pletes acquisition of Canadian Airlines airplanes. FedEx is not some babe in customers increasingly demand faster, International Ltd., but says there will be the wild wood when it comes to Air- more timely and more reliable service. no involuntary layoffs. bus. Right now the integrator operates Passenger jet lower hold capability is . . . Sometimes things that happen an astounding 77 A300, A310s. FedEx, limited by high passenger load factors in air cargo really make you wonder. buying this big new baby is a killer en- that leave less space for revenue cargo. Martinair-the little Dutch airline that dorsement for Airbus while Boeing is “Air cargo traffic growth should exceed could-and did, loses money for the beginning to appear out of luck trying passenger growth by more than 1% first time in its 40 plus years, Lucien to peddle its old technology B747 in anually, which will further impact this Schroder resigns and right away there Lydia Kennard Angela Gittens a “stretched once more” version. The situation. Additionally, many passenger goes the longest running, money- A380Fs will replace MD11F’s allowing aircraft already at payload and range making, family-connected airline in of the greatest airports in the world. At FedEx to cut frequency and expense limits, are resulting in even more cargo history—just like that. The Martin in Miami International Airport, is Angela while maintaining lift. Aircraft list being put on freighters.” As a result by Martinair of course is Martin Schroder. Gittens. At Los Angeles International price is $230 million a copy. Look for 2019, it is anticipated that freighters So what happened? Sources tell ACN and a parcel of other airports operated FedEx to add to the order for A380Fs. will provide as much as 44% of total air that despite the Americas being the by Los Angeles World Airports (LAWA) As we go to press, Lufthansa’s order for cargo capacity, an increase of 4% from only profitable region at Martinair, is Lydia Kennard. Two thoroughly 10 A380s, brings the order book total the current 10% share. Boeing said the carrier is operating with two heads, professional, highly qualified, totally to 76 of the new generation aircraft. that to keep up with demand, about one here and the other at AMS. Also dedicated African American women, Now that Boeing’s hammerlock as sole 130 new all-cargo aircraft will go on there is the question of TAMPA, the managing enormous commercial avia- supplier to Qantas has been smashed line each year until 2019, when the all- acquisition gone bad. North America tion enterprises. LAX last year bumped forever by the Australian airlines order cargo fleet, all things considered, have felt that Amsterdam’s interference has up its air cargo business by 5.18% to for 12 A380 super-jumbos the word added about 2,600 aircraft. The Boe- prolonged that. So what’s next? “KLM 2,249,000 tons. Miami International, goes forth that Asia/Pacific carriers, ing Report notes that better than 70% will probably absorb Martinair passen- Waiting for Godot—in this case, Bra- the prime target for the big aircraft of freighter additions will come from ger operations. Cargo which generates zil—to complete its comeback, experi- will indeed be delivered as customers modified passenger and combi aircraft. real profits is left up in the air.” enced a flat return at 1,796,411 tons of for the world’s greatest airplane. Just in New all-cargo aircraft will comprise . . . Although UAL is dumping its all- cargo (year ending November 30) down case the boys in Seattle didn’t quite get about 30% or 800 new freighters, half cargo, DC-10-30 freighters the airline a modest 1.94%. But while Lydia came the point, Qantas also ordered a baker of which will be jumbos, one-third assures its other 600 aircraft and 2,346 up through the ranks at LAX, Angela dozen A330-300’s, the great widebody will be medium-sized and 22% will be scheduled dailies are well equipped to Gittens followed a similar course, ar- that also lifts some cargo. For the record small-size freighters. Total dollar value deliver the entire cargo menu of prod- riving at MIA via Atlanta. Qantas also ordered a Boeing B747-400, up for grabs in the new freighter market ucts and services. . . . The Sixth Annual TransRus- but the truth be told, that aircraft is a between 2000 and 2019, Boeing will . . . Dubai has created the world’s sia2001 held in Moscow, as this great stop-gap acquisition to get the carrier report is about $105 billion. first Free Zone dedicated to e-com- country moves inexorably into the to its new A380 super jumbo in 2006. . . . Alliances—Air France and Alita- merce. Dubai Internet City (DIC) is world’s capitalist market. Kudos to The shape of things to come—A380 lia pilots have linked up, as both groups an outgrowth of an ambitious master- Julian King and International Trade mock up in Virgin Atlantic colors will face the prospect of an alliance between plan meant to further develop a port Exhibitions (ITE) based in London be part of six of the aircraft (six op- big brothers district which already is the best in for staying the course, forgetting the tions) ordered by Sir Richard Branson . . . Boeing will build a B747-400ER the region. DIC hubs IT, e-business odds and keeping the lines of two-way December 15th. Said Sir Richard: “We now that an accord has been reached and media offering companies 100% talk alive for the entire transportation thought about the B747X but are un- with Rolls Royce, General Electric’s foreign ownership, tax exemptions for industry as Russia springs to life after sure that it will ever be built.” Inside Pratt and Whitney division to build corporate and personal incomes and Lenin. ITE proves that given belief in its unusual profile, Virgin will feature the engines. 50-year land renewable leases. the long-term with guts and determina- health suites, 34 inch pitch in economy, . . . Deutsche Post is buying up all . . . Authorities in Paris announced tion, a trade show can grow and develop business and conference rooms, shops the shares of DHL it can get its hands approval to build a third airport to serve along with an industry. and restaurants plus private cabins on in a move to raise its shares in the the Paris area. Under consideration is . . . Virgin Cool—At Miami Inter- equipped with showers. Virgin has se- company from 25 to 75%. The move a site in Orleans (80 miles from Paris), national Airport, Virgin Atlantic Cargo lected the Rolls Royce Trent 900 engine will finish transformation of Europe’s Picardy (northeast of the capital), and which around these United States has for its order. Currently Virgin has ten biggest post office to a publicly-traded Champagne (east of Paris). earned a reputation for great third- Trent powered A340-600s on order. company and an international express . . . Alliance between Amsterdam party handling adds even more cargo . . . Boeing said that it delivered 489 giant with AEI/Danzas now part of the Schiphol Airport and Frankfurt Airport handling space and a great big cooler to aircraft last year, one shy of its goal of stable. sporting the snappy ‘mean nothing but put the big chill on perishables. Virgin 490. Through December the jetmaker . . . Passenger sound good’ name of “Pantares.” The Cargo’s transfer handling facility at had 584 orders which is about 300 more growth good... Dutch/German marriage begins with Cargo better! So the stated purpose of close coopera- said IATA Director tion between the two facilities and also Modern Marvels . . . Air Cargo general Pierre Jean- future joint marketing worldwide for News Publisher Geoffrey Arend at niot. Average pax construction and managing airport rest in ACN offices during a break growth for the next cargo and passenger operations, plus in the taping of a new episode for five years all-told an entire menu of services. “Modern Marvels” to be broadcast will average 5.6% worldwide on The History Channel. Pierre Jeanniot while air cargo will The program International Airports grow worldwide by discusses the past and future of 6.7% according to IATA predictions. world air gateways, air cargo, and TransPac cargo will lift an average of ACN involvement in the saving of 9% while South Pacific-Far East cargo . . . What do you think the odds LaGuardia Airport’s Marine Air will build at an annual uptick of about are that two of the greatest airports in Terminal and Newark International 8%. Traffic between North and South the world have African Americans as Airport’s Building 51. 46 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE the new company called Singapore Airlines Cargo Pte. will operate nine Herb Never Pulled Punches B747-400 all cargo aircraft with another Herb Kelleher stepped down from the top post at Southwest Airlines eight on order June 1, 2001. . . . If you have 600 Deutsche marks The airline business, which somehow has turned (USD$275.00) and a hankering to fly out more than its share of absolutely original execu- aboard a passenger-flying zeppelin, tives during the past 80 years with names like Trippe, Zeppelin Luftschifftechnik in Berlin Rickenbacker, Six, Daly, Yerex, Shelton, Laker, Ansett said that it will begin service this June and most recently Chowdry, can remember Herb over Lake Constance, where the first Kelleher with awe, amusement and probably a good airships flew more than 100 years ago. measure of envy. The 19 passenger airships will be filled After all you run a big company, you are not sup- with nonflammable helium instead of posed to be upfront, plain-spoken and regular, while hydrogen. Travel time across the lake Elegance and Art In the Cargo also apparently having such a good time. will be about an hour. Picture….Danzas is collecting and We recall a Wings Club annual dinner held at . . . Fuel and labor costs coupled commissioning original works of art. the ritzy Waldorf Astoria Hotel in New York, where with less business travel are blamed for According to Patrick Kaiser head of Herb dressed in formal tuxedo white tie, tails and prediction by the Air Transport Asso- Danzas corporate communications cowboy boots, delivered a speech which began with ciation (ATA) that when 2001 is tallied and head of the art committee “our musings of his life and career: up it will be a $1.5 billion loser for U.S. committee advised by art experts “I’m here to tell you that I am proud of a couple of things. flag carriers. ATA notes that losses are a decides which works are to be pur- “First, I am very good at projectile vomiting. Second, I’ve never had a first since 1994. chased from established and up and really serious venereal disease.” . . . Air China plus China Southern coming artists. Recently somebody asked Mr. Kelleher if he plans to give up smoking, and China Eastern all said, all is not so So far paintings by Matt Mulli- what with his recent bout with prostate cancer. hot in the China dream market either. can (USA) and Stephan Balkenhol The reply was: All three post losses for the first six (Germany) have been acquired and “Probably not, I don’t smoke with my prostate.” months of 2000. will be displayed in Danzas new Now, Kelleher who is 70, retires but stays on the Southwest Airlines (the . . . North of the border, Air Canada corporate headquarters. airline he founded in 1971) Board as director for a couple more years. involved in a sweeping austerity pro- “The paintings underline the But as stated at the top, we will miss Herb. gram driven by sagging business and international nature and style of He was a colorful sum-bitch. increased competition. Second quarter the company. Our strategy is future losses of $70 million see as many as oriented to provide state of the art than it had at the same time in 1999. Dubai-Dusseldorf service March. 4,000 jobs cut services as well as to develop new . . . FedEx deal with USPS for seven . . . business may be lousy or at . . . W.C. Fields once quipped, that ideas.” years will add drop boxes (at a fee) best tentative, but Air France an- he spent a month in Philadelphia one Danzas joins KLM Cargo at for the integrator at up to 10,000 nounces its fifth consecutive year of night—Well, PHL, the airport thought Schiphol which under the direction postal locations while affording USPS profits after six straight years of loss. of as little more than an emergency of former cargo chief Jacques An- a single source for most of its Express How Air France went from a leaden stop, off-line address in recent memory, cher began commissioning artists the and Priority Mail transportation. Big national flag carrier that couldn’t is now the 15th most active air cargo world over to create original works of loser is Emery ($200 million annual do anything right to today’s suc- gateway in America and still growing! art that are on display throughout USPS contract set to expire in 2004 cess is due largely to four factors. Air cargo inched up 1.2% last year to the KLM Cargo handling and office but probably sooner, sources think), Christian Blanc, Rakesh Gangwal, over 616 tons, while all told PHL gener- areas at AMS. other smaller carriers and even some Jean-Cyril Spinetta and Charles de ated more than $6.6 billion in revenue, occasionally utilized big ones. Interest- Gaulle Airport. Mr. Blanc began employing almost 20,000 people. Cen- ingly USPS can add other drop boxes the cost-cutting and turn around tral to air cargo numbers at PHL is US west—all were big combo deals with (UPS?, Danzas/AEI?, United Priority?, policies when he served as airline Airways’ utilization of the gateway for money invested, promises made and Airborne?) as soon as USPS and any CEO, Mr. Gangwal worked to help its cargo-generous A320s to several Eu- sorrowfully hearts (and heads) broken. other party can get together. FedEx formulate modern airline manage- ropean destinations via its new 100,000 Maybe that’s why American put the will move about 3.5 million pounds a ment techniques at AF, including square foot handling facility at PHL. money on the table and bought TWA day, aboard jets that are usually parked yield management when he served . . . A number of Arab airlines in- outright. At least when (if) things get awaiting their night flight to Memphis. as VP planning and development in cluding Saudi Arabian Airlines, Royal dicey for that deal down the way, all can FedEx thinks the deal will generate 1994. Mr. Spinetta “a Corsican cost- Jordanian, MEA, Kuwait Airlines, Air agree that the enemy is within. In any about $7 billion. cutter, who is expansive at the same Sudan, Egypt Air and Qatar Airlines case, entire TWA fleet is being trans- . . . Air France continues to expand time” as one source characterized the form a strategic alliance that according formed into gleaming silver birds. as other European carriers such as airline’s current CEO, settled a pilots’ to one source will allow them to “unify . . . British, Lufthansa, Swissair, British Airways contract. AF is prob- strike and took the airline public in ticketing, reservations and together al- Scandinavian and most other Euro flags ably beyond words to describe its joy 1999. CDG credited with much of low the group to formulate a uniform are scrambling to cut costs as business with the DL partnership. In less than Air France’s current success is about code of service standards.” Alliance also slides and slowdown eats away surplus three years the airline has gone from to be Europe’s number one airport, opens the door to service cooperation, of the long ago and far away years of nine U.S. destinations in 1997 to 101 bypassing Heathrow, has a brand and later to less duplication and other 1997, 98, 99 this year. Now the carrier is out hiring new fourth runway, a new passenger services,” the source added. . . . EADS Dresden converts 25 ex- as many as 5,000 workers which when terminal to go online in three years . . . Has there ever been an airline passenger A300s and A310s capable all done will mean that AF will employ and room still left to grow. Right now financial deal other than complete of uplifting up to 48 tons for Intrepid more than 60,000 people. with more than 14,000 connections buyout of one carrier by another that Aviation. First of the lot to be delivered . . . Meantime, Moody dropped Brit- per week or three times as many as has worked out? News that Sabena to the leasing company late 2002 ish Airways credit rating because the British at Heathrow and double the Belgian World Airlines and the Belgian . . . Singapore Airlines continues airline is not generating enough cash number of Lufthansa at Frankfurt, Government are ganging up and suing expansionist plans despite an ever-soft- to reduce debt. Air France with its solid Sky Team Swissair Group for about $500 million ening international market. Right now . . . Aeroflot said cargo jumped 16% partners, Delta, Korean and others is apiece because the Swiss didn’t do the the carrier is trying to raise its stake in last year to $1.1 billion while pax rose moving to become the top European right thing, is just another sad tale of Air New Zealand from 25% (the limit 11% to $818 million. So is it “DA” or airline. supposed good love in high places gone allowed for foreign ownership by New “nyet” as to whether the carrier is mak- . . . Singapore Airlines spins off its bad. Test your memory. British/USAir- Zealand) to 49%. At the same time ing any money? Only Aeroflot manage- cargo business into a separate unit, ways, Continental/SAS, KLM/North- Pg-50

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 47 Journey From Terror Escape From The World Trade Center Jim Larsen was Cargo Marketing Manager for the Port Authority Of New York & New Jersey. The story of how he got out of the doomed World Trade Center in New York, September 11, 2001 is presented here in his own write.

he morning of September 11th we would see rescue workers coming up like we were just observers. could best be described as ideal. the stairs. On the 27th floor landing we There was more shouting The sun was bright, the air was came upon a man in a wheelchair. On and more urgent calls to keep T th clear, and from the 65 floor of the each side of him stood his coworkers, moving. We went down the World Trade Center I could look across, who were apparently waiting for the escalator steps, through the through New Jersey, almost to the Po- crowd to thin out so they could begin shopping concourse and out conos in Pennsylvania. Just a few odds moving him down the staircase. We on to Church Street. and ends to take care of and I would passed him, and I thought for a mo- Being on the street was be on my way to JFK for a luncheon ment maybe we should try in some way like coming to dry land after hosted by a cargo promotion group to take him with us, but it still seemed an ocean voyage; you almost from the U.K. like there was no immediate danger and felt like you wanted to kiss The office was quiet, waiting for the that it would be best if he waited there the ground. There was no aviation department staff to filter in until help arrived. I don’t know if that time to stop, rescue workers for the start of another day. Just an- man and his loyal friends got out; I can continued to urge us on up other ordinary day. I was sitting at my only pray that they did. Fulton Street toward Broad- computer and chuckling about a joke At one point while we were descend- way. As we crossed Church that someone had sent me via e-mail ing I thought I was succumbing to the Street we finally had a chance when it hit. smoke in the stairwell. I began to get to look back and actually It wasn’t loud; there was no explo- unsteady on my feet; it was almost as see the towers. At that point sion, no thunder, just a kind of whack. if the building was swaying again but the adrenaline kicked in. Then the building began to lean over. I dismissed the thought and shortly The buildings were on fire; Things fell off the desk, furniture afterward I felt OK again. It wasn’t they looked like two candles moved, and I made my peace with God until the next day that I realized it standing in the sun. We began to head that we’ll get trampled by the crowd.” convinced that the tower was about to was the impact of the aircraft hitting North on Broadway. I stopped to talk to I pushed them up against the fence at topple. But miraculously it didn’t. It Tower Two that had made me feel that the wife of a co-worker. She also worked City Hall as we watched the dust cloud snapped back and slowly went the other unsteadiness. Soon we came to a point in Tower One and was searching the advancing. Miraculously it stopped way. Like in an earthquake, the building at which we felt fresh air coming up crowd for her husband, to no avail. “Did about a hundred feet from where we continued to shudder for what seemed from somewhere below us. Fresh air you see him?” she asked. were standing and lost momentum, a lifetime, but what in reality was most was only a few flights away. Firemen “No, but I’m sure he’s OK,” I said, settling to the ground. likely just a few seconds. There was a and policemen passed us and went up “We had plenty of time to get out, he Safe again and blocks away, I looked brief silence as debris started to stream the stairs. Everyone was telling them will be all right.” We continued North back at Tower One. It was burning and past the windows, falling to the street about the man in the wheelchair on 27. up Broadway, funny enough, I was look- there was no doubt that it was only a below. When we got to the mezzanine floor ing for a cigar store. I haven’t smoked matter of time before it too would col- An aircraft, I thought? But how rescue workers were shouting at us to in a while but I had an overwhelming lapse. I didn’t know in what direction could an aircraft collide with the build- move quickly. Why all the urgency, I urge to have a cigar. For a moment the it would fall, but between us and the ing on such a clear day? No time to thought. They seemed more panicky urge took my mind off what was hap- tower is the Woolworth building so I ponder that question, I thought, let’s get than we were. It’s all over, we are safe pening and I was preoccupied with turn to my brave little group and urge out of the building. I looked for people now, why are you shouting? finding a cigar. We had planned to go them on North. “Lets get out of here, if on my side of the building and saw no Then the first in a series of realities to the City Hall subway station to get Tower One falls and hits the Woolworth one, so I took off for the fire exit and set in. As we moved from the exit on the a train uptown but when we got to the building we will be in big trouble.” We the staircase that would lead me out West side of the mezzanine to the esca- station we were told there was no train head for Canal Street with the hopes of the building. Two women came out lators on the East side of the building service. They said we should go to 14th of getting a train that will take us away of the south side of the floor crying. I we looked out on to West street and saw street, trains would be running from from the nightmare. As we keep mov- ordered them not to use the elevators. the tremendous amount of debris at the there. I was with two co-workers and ing, I constantly try to call my wife on “Head for the stairs,” I said, “Everything West Street entrance to the building. both were not doing too well. One has a a cell phone but I can’t get through. I is OK. The building is still standing so Glass was everywhere and I thought if severe back problem and the other had want to tell her I’m all right; I also want the worst is over. Take your time, it’s anyone was out there, they were prob- forgotten her knee brace and was start- to find out if anyone has heard from my OK, we’re safe now.” ably dead or seriously wounded. ing to feel the effects of our walk. son who works in the World Financial At that point I honestly believed We turned and headed East toward We turned to look back at the tow- Center directly across the street from that was true. I also think that all the the escalators that led to the shopping ers just as Tower Two collapsed. It was the towers. My thoughts go back to the people in the stairwell thought the same concourse one floor below. At that amazing. This giant structure that last bombing of the World Trade Center thing.There was no panic, no scream- point we stepped into Hades: rescue we had come to regard as a fixture in and the fact that I couldn’t get in touch ing, no shouting. Everyone proceeded workers were shouting and urging us our every day lives crumbled before with her then either. On that occasion in an orderly manner; they kept talk- on; there was complete and utter chaos. our eyes, creating a giant dust cloud she ended up calling her niece, a wait- ing to each other, they helped those We got our first look at hell. The glass reminiscent of the films we saw of the ress in a restaurant near Wall Street, to who were having difficulty breathing partitions looking out over the WTC eruption of Mt. St Helens. Panic filled tell her that she didn’t know if I was OK. because of the smoke, or difficulty plaza were bloodstained, parts of bod- the streets as the clouds advanced up Her niece’s reply was, “He’s fine; he’s walking for whatever reason. It was ies and what appeared to be wreckage Broadway. In front of it hundreds of sitting here at the bar having a Gin and a slow walk down. We stopped every from the aircraft littered the entire people were screaming and running Tonic.” No such luck this time; I didn’t once in a while because of unknown plaza. The debris was so deep that the toward us. The only thing I could think have a chance to sit with a drink until delays below us, but all in all, the pace concrete surface of the plaza was not to do was get the two girls out of the 6:00 p.m. that night. was fairly steady. visible anywhere. Still, harsh reality had way of the crowd. “We can’t get hit with Soon there was a call on my cell As we got further and further down, not completely sunk in. It was more like any debris; the worst we will feel is dust. phone. My wife asked if I was OK and I think we all knew that at any moment we were all watching a disaster movie, But if we stay out here there is a chance told me that my son was on his way 48 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE home. He never reached his office, brought into the lobby, seated and wasn’t America. That was some islands for Grand Central with the plan that we, saw the disaster and turned around. served water and soda, and they rest out in the middle of nowhere where our my friend from the Public Theater and Thank God! Moving North, the fearless to gather the strength to continue the fleet was. Here, today was reality; a hos- I, would meet up at the station and go crew now numbered five- two going journey. An oasis in the middle of Man- tile force had made an air strike against from there. Thank you to the gentle- to the Bronx, one to Long Island, one hattan, I thank you for your hospitality the United States and had successfully man in the car, you were a true New to New Jersey and myself headed for Public Theater, and thanks to my friend destroyed two key locations. Yorker, willing to lend a hand when Westchester. As we continued it was for a hug and an understanding ear. That aside, we were back in business it was needed. I can’t say the same for obvious that the two women with Rested and on our way again, the moving toward our next goal, Grand the numerous taxicabs that passed us back and leg problems were not going group now numbered six (my friend Central Station. From there we hoped during our journey with their off duty along too well. The further we got, the joined us). When we reached 14th to get a train that would take the Bronx signs on and their cabs empty. slower we moved. We continued to get Street we found that there was no room contingent home and possibly afford My friend and I reached Grand Cen- glimpses of Tower One in the distance. at the inn: the subway was closed there some transportation to Queens for tral but found no trace of the rest of our It was still standing but we lost sight too. Next stop Grand Central. I didn’t the Long Island bound person in our group (who I later found out had made of it as we passed a fairly tall structure think the group was physically able to group. it home ok) so when a departure was that obscured our view. Then we see make it but we continued on. The next Unfortunately, the group was run- announced for a train that would take another dust cloud: One World Trade shock! Armed National Guardsmen ning out of steam very quickly; back me home to Peekskill, I opted to get on Center, my home away from home for were in the streets in front of what I pains were becoming worse and the it, hoping that the rest of my group also the past 13 years, is gone. With it went later realized was an armory off Park trauma of walking on a bad knee made some sort of connection to their many, many memories, and many co- Avenue. was obviously getting the best of the destinations. workers whose fate at that point was The realization that the roars we women. It was time to get some help. Our departure from the city was unknown to me. had been hearing in the sky were not I walked out into the middle of Park like leaving a bad dream behind. It was On we went uptown, our little crew low flying Helicopters but high flying Avenue to traffic policeman and ex- almost as though it hadn’t happened, feeling more and more the effects of fighters over our city, over New York, on plained our problem, asking him if he and as our train headed north I felt the the experience and getting weaker all a defense mission over American soil, could flag down anyone who could take comfort of finally resting away from the the time. Then, lo and behold, a banner was too much to comprehend. the women to Grand Central. He was terrible events of the day. stating the home of the Public Theater. When I was a little boy during World sympathetic and tried to flag down any That feeling overwhelmed me just I know someone who works there so I War II, I remember air raid wardens emergency vehicle heading North, but before we reached Tarrytown, when as went to the entrance, but I was told that knocking on windows at houses that of course they were on other missions we gazed out the window at the smoke no one was allowed in. “Is she here?” I had lights on. I remember the black and couldn’t divert. Finally we asked a rising from the Trade Center, we saw a asked, and all of a sudden the way is window shades that hung in our rail- gentleman in an automobile if he would man standing in a small Hudson River opened and I’m escorted to her office. road flat in Queens for years after the consider taking some passengers for the park. The flag in the park was already There I talked to the first person I had war was over. But that was only a drill, ride, which was then about 20 blocks. at half-mast, and the man was quietly spoken to all day who was not directly no one ever got to really attack America. He said of course, so we piled four of and casually watering the grass, as life involved in the disaster. Our crew is Sure, there was Pearl Harbor, but that the group into his car and they departed went on. Sky Team’s Great Adventure A new deal for air cargo as U.S. CargoSales Joint Venture debuts November 14, 2001 in Atlanta, (l to r) are, Frederick W. Reid, President and Chief Operating Officer- Delta Air Lines, Yang Ho Cho, Chairman and Chief Executive Officer- Korean Air and Jean-Cyril Spinetta, Chairman and Chief Executive Officer-Air France. Not all business this day as U.S. Cargo Sales Joint Venture launches and lunches clockwise—Tony Charaf, Senior Celebrating at the event are Jin-Hong Hong Kim, Yang Ho Cho, V.P. Delta Air Logistics, and Marc Kim, Julie Park, Bernard Frattini, Mickey Frederick Reid, Bernard Boudier, Executive Vice President, Stanley, and Eddie Haynes. At the ribbon Frattini, and Jean-Cyril Air France Cargo discuss the future. cutting, (l to r) are Tony Charaf, Jin Spinetta.

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 49 Pg-47 AF holding a 35%, up from about 12%. Once the pride of 11 countries Singapore Airlines is making a big play of Africa during an era of AF largesse, with the Tata Group for Air India. Two go it alone has demoted Air Afrique to financially challenged airlines, with insolvency. which Singapore Air along with its 49% . . . Atlas/Polar Air gets route to Hong stake in Virgin Atlantic, would compete Kong but stock continues to slide at with the rest of the ever consolidated about a quarter of its value of just a and alliance-bound commercial airline year ago. It now appears that Atlas will industry. There seems no mountain not acquire rest of Emery Worldwide, that Singapore Airlines cannot climb. grounded by FAA. Sources say with- For example the airline reports profits out much joy that anybody awaiting while everybody else is losing. What a fourth quarter bailout this year will that says, if nothing else, is Singapore see the peak season in this business Airlines must be either smart, lucky, struggle to achieve last year’s disap- blessed, or some combination of the pointing result. aforementioned. . . . Miami’s Fine Air may be in . . . UPS purchase of 78-year old Chapter 11 with an air fleet down Fritz Companies Inc. for $450 million from 34 aircraft to 15 but that has not in common stock is the first UPS stock stopped the carrier from occupying a United Cargo said that its TD Guaranteed cargo service expanded to everywhere acquisition since the IPO in 1999. Ap- new $19 million dollar cargo transfer the airline flies offering flight-specific boarding and 100% guaranteed service. parently the name Fritz will disappear. facility with a big cooler/freezer unit. United has also added Global Small Package Service (GSP) for critical time- Said UPS CEO Jim Kelly: “The unpar- Miami, the gateway that owns traffic sensitive shipments offering shortened acceptance and recovery times (one to alleled UPS freight forwarding and to Latin America has been weathering two hours) plus full service guarantees. customs brokerage business unit will the economic slowdown better than be able to offer customers single point most—emerging on the charts as top was impacted after September 11th. But the cost of U.S. Postage and about of accountability.” Founded in 1933, U.S. gateway in international cargo traffic has returned to some semblance everything else the USPS does went San Francisco-based Fritz operated 400 volumes and in the top ten worldwide of former numbers most everywhere up as UPS and FedEx handled Parcel facilities in 120 countries. Wait there is in total cargo. But a closer look shows else, but the North Atlantic. Post instead of the traditional airlines more. UPS sez, “You got the USPS? We that Miami’s numbers are supported by and USPS reported record losses? Take bought MBE! FedEx may have gained moving high density low yield flowers a wild guess who gets to pay for those access to a few thousand drop boxes in and perishables so called ‘junk cargo’ USPS losses and UPS/FedEx profits? U.S. Postal facilities across America as by some in this business. According Give up? You do dummy. the result of knocking off Emery’s con- to a published report even high-flying . . . China Airlines launched twice . . . How about Jeffrey Fegan, CEO tract to haul USPS air but UPS got 4,400 LAN Chile Cargo, which has become a weekly all-cargo flights between Tai- of DFW Airport coming out editori- locations when it bought Mail Boxes bellwether of MIA business has seen its pei-Seattle-San Francisco. The Taiwan ally in The Washington Times “Airport Etc. (MBE). FedEx may be carrying lots volumes slip about 15% this year as it flag carrier with 55 weekly all-cargo Security Gets Explosive” against the of USPS overnight and second-day but scrambles to cut costs, rates, get rid of flights in its summer schedule features Transportation Security Administra- Big Purple’s daily package count con- airplanes and move consignments to 26 weekly trans-Pacific, 11 European tion (TSA) schedule for airports to have tinues to slide down 5.8% last quarter. passenger aircraft. and 18 regional Asian flights includ- screening of all checked baggage by With strong international presence in . . . Thaksin Shinawatra, Thailand’s ing returning service to Colombo, Sri Explosive Detection Systems (EDS) in Europe, MBE is viewed as an excellent Prime Minister gets the nod for the no- Lanka plus all cargo service to Man- place by December 31st? “Good man- small business portal for UPS menu brainer when he said that Thai Airways chester, England which took off April date. Bad deadline,” said the esteemed of services, both existing and yet to be might delay its planned November IPO. 1st. Nice interactive cargo website too. Mr. Fegan. He then goes on to explain developed. Here, it looks like the MBE “The current situation and sentiment Easy in/out at chinaairlines.com then why DFW and everybody he knows at name will stand for now. is not good for Thai Airways. We need click “Cargo. CAL struggling to gain lift thirty other airports can’t install these . . . It’s official, O’Hare Airport is to to wait for everything to be very clear.” brought about when a CAL B747-200 machines which are the size of a VW get a $6 billion redo, if Chicago Mayor Right Mr. PM. You and everybody else. apparently broke up above the Taiwan Beetle without lots of architectural and Richard Daley has his way. This pro- Anyway if you have some mad money, Straits in perfect weather without even study help. Jeffrey Fegan also points posal which effectively kills the idea of Thai Government wants to disinvest a distress call May 25th 2002, killing all out that interim mandates won’t work a third Chicago Airport in Peotone 40 itself from about 206 passengers and 19 crew members either-—too expensive for temporary miles away, has even arch rivals Ameri- 93% of Thai to aboard. The disaster is the 14th for CAL solution. “We must not rush to imple- can and United Airlines in agreement. 70%. Last time since 1967 ment solutions that don’t make sense. But the popular Democratic Mayor, a we looked, Thai . . . More Power To ’Em—United It’s critical that we take a measured, Republican Governor, two mega-carri- Airways stock Airlines Cargo opened an expanded comprehensive and holistic approach ers and support from the big business was trading at new cargo transfer facility at O’Hare to aviation security.” The editorial was associations may not be enough juice, 19.25 baht (43 Airport, Chicago. “We are contributing broadcast for discussion on CSPAN, the as there remains strong opposition cents). to the economic well-being of Chicago cable talk network. Maybe twenty calls from community groups who say up- . . . Panalpina, and the Midwest.” said Roger Gibson were received and while the responses ping operations from 930,000 to 1.6 which began op- vice president cargo at United. Recently cannot be described as scientific, the million a year would also mean life erations about Mr. Gibson was named to Fortune observations from callers across the around the field would extend life the time of Lew- Magazine’s list of 50 Most Powerful U.S. were interesting. Most callers Bruno Sidler around the airport into “a living hell.” is and Clarke, Black Executives. Fortune said in part wanted more security right away, no Meantime does anybody remember “Pan-Alpine” that: “Resurrecting the reputation of matter the cost, or wait involved, while when Douglas Field opened in 1943 out of Switzerland, said the first half United Airlines subsidiary United Car- travelling or shipping cargo or travel- and was later renamed O’Hare? How saw earnings actually rise. Panalpina’s go has been Mr. Gibson”s mission.””No ling on an aircraft, shipping bags and about the volume at which everybody CEO is Bruno Sidler. The company is small task”said Fortune, “given that cargo, period. One caller noted that the complained, saying O’Hare is just too now active in 70 countries. integrators like UPS and FedEx have day after they saved those nine miners far away from the Chicago Loop? . . . Big concern for future business is made steady inroads and September 11 in Pennsylvania proves that “America . . . Air France will up its stake in North Atlantic. Traffic on this most im- has hurt business”. Congratulation Mr. has the technology to do whatever is near bankrupt Air Afrique. Talks to- portant long haul route is not coming Gibson, we say. needed to secure its airports.” Mean- ward securing $70 million would see up for anybody. Certainly every route . . . By the way did anybody notice Pg-52

50 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE But Will This Dog Hunt? As we continue on our 21st century the single outstanding thing you notice life air cargo journey, the word wow, that instinctive right away about the WOW executives, executive who truthful exclamation of admiration, joy is that this is one good looking group is a top flight or disbelief (and maybe even relief and of people. executive who congratulations) has been appropriated Not only good looking, but all four politely listens and trademarked to describe to the of these players are real smart. By the to what other world, the harmonized cargo express way all came from backgrounds other people have to services of three carriers— Singapore than air cargo. What’s more if anything say. Cargo, Lufthansa Cargo and SAS goes wrong, two of them are doctors Peter also Cargo. who can, not only make house calls, has a solid Leaders of the trio met the press but also should at least be able to make g r a s p a n d at Frankfurt (Fraport) March 14th to everyone feel better. Member of strong opinion unveil their new branding. the Executive Board Lufthansa Cargo of things. But Master of ceremonies, the great Di- AG Dr. Andreas Otto’s star at Lufthansa Peter Grøn- The beautiful people of air cargo presented WOW, a new cargo product etrich Seidl (LH), before anything else is more like a sky rocket after having lund needs no from Lufthansa, SAS and Singapore Airlines Cargo. WOW which happens, even announces that when the joined the airline in April 2000, from reality check harmonizes all three carriers’ express product, debuts at an airport conference is over there will be lunch a top position at Rhenus AG, a waste to realize that near you April 1st. Pictured (l to r) Dr. Andreas Otto, Peter Grønlund, for everyone. management company. in the world Dr. Gabriela Kroll and Teng Aun Hwang. The real question here is, will WOW His part in creating this WOW cargo of Lufthansa work? program has only sharpened Dr. Otto’s and Singapore Cargo, SAS might be a SQ cargo executive who has had to Best quote of the day came from resolve. junior partner. He is refreshingly can- deal with negative or flat growth from Mr. Teng Aun Hwang, CEO Singapore “We came together in a landmark did when he declares that SAS and its Singapore, the country. Airlines Cargo who declared out loud: way. Different people from all over the pioneering air cargo division are open Dr. Gabriela Maria Kroll definitely “Failure is not an option.” world. Strong, diverse airline cultures to offers of cooperation and business does not feel slighted or overpowered, Our favorite comment of the day with three very successful companies involvement and “exploring new pos- being the only distaff member of the came from another reporter who determined at creating something new. sibilities while continuing to develop top WOW team. Dr. Kroll puts abil- observed: “Look we are at the end or The way it has worked is quite gratify- and refine its product line.” ity, as the only criteria, she needed just finishing the worst airline business ing and gives us great confidence that Mr. Teng Aun Hwang is the first to achieve her role as LH Senior Vice cycle in 30 years and maybe in history. we can move to other cooperation’s in President of Singapore Airlines Cargo. President of strategic airline alliances. It’s hard to ask any question that is stu- the future. As example, harmonizing Incidentally all three carriers’ cargo “This is a very professional group, pid considering the state of the airline our second-day product is a natural businesses are spin-off separate op- with strong determination to make business today.” Wow, you gotta love the second step.” erations from the passenger end, which this thing work. Up and down the line, fourth estate. Peter Grønlund, Vice President SAS must be a first for an airline cargo al- everyone here is completely open to But sitting out there in the audience, Cargo, is an approachable, larger than liance. Mr. Hwang is also the first top new ideas.”

Swiss (airlines) takes off April 1 as a new intercontinen- Angelo Pusateri Retires tal airline formed of profitable Cross Air of Basel and the ashes of Swissair ”He built Virgin of Zurich. The big question is, will Cargo USA.” the new company be succesful. On From REA to Air one hand you have ex Swissair Florida to Virgin employees and on the other Cross Cargo, Angelo did Air personnel. Will either group like it his own way. each other? Uptown girl (Swissair) Pictured with the meets Joe lunch bucket (Cross Air). And what about Moritz Suter, former chair- cargo pioneer at man of Cross Air, who was forced to resign by the two large Swiss banks and Mr. an industry event ‘Hot Nestle Chocolate’ when the new airline was created. Cargo, it can be said is Bill Boesch. has been succesful all along. If Thomas M. Huchler, Vice President Americas The four shot at (right) and Jack Lampinski, Regional Manager, Eastern United States (left) opening of Newark have anything to do with it, cargo will continue to be successful. Mr. Huchler cargo facility declared, “The new airline will work well. It is right-sized now.” includes partner Alan Chambers D n a t a C a r g o ’ s and Virgin founder Freezone Logistics Richard Branson Center (FLC) recently and John Ryan, celebrated UPS 100th Vice President flight. Pictured at Virgin Cargo Sales the celebration are, and Marketing. from left: Ibrahim Jassim, Dnata Cargo’s General Manager Terminal Operations; John Tansey, UPS Country Manager; Chris Pattenden, UPS District Air Manager; Ismail Ali Al Banna, Director Dnata Airport Services; Natalia Blotskaia, Dnata Cargo’s FLC Marketing Executive; and Jean Pierre De Pauw, Senior General Manager Dnata Cargo.

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 51 Once again the event of summer 2002 at JFK was Tri-Carriers Golf Outing a cooperation between Virgin, Saudia and Finnair Cargo held at a golf course near JFK International Airport.Hosted by Saudia’s Barry Lennihan,Virgin’s John Ryan and Finnair’s Kari Tikkanen, Tri-Carriers has become an annual rite of passing and a ‘hot ticket’ in the eastern USA air cargo scene. While there may be bigger alliances and more important deals going down elsewhere, this regular event has brought together more airline and shipper types than most trade shows.Interestingly in this Summer 2002, while mostly drought conditions prevailed across the Northeast, the day that the Tri-Carriers gathered it rained.But unfettered this hearty bunch repaired to the 19th hole.

Pg-50 million during the second quarter and CGO stock has been hovering at about time Texas Rep. Kay Granger got the three bucks a share, down from about DFW pitch attached to the Home- seventeen a year ago, don’t count this land Security bill that passed the U.S. company out just yet. In the first place, House of Representatives. Next comes Atlas has a tremendous asset in its CEO a tougher nut—the U.S. Senate which Rick Shuyler. Shuyler and company must act on the measure this made a crafty acquisition fall after the summer break getting Polar and all those if the TSA mandate is to be juicy routes for a song. Rick slowed down. Until then it’s Shuyler, who gets our vote all about hearts and minds as air cargo executive of the and money year, before he joined Atlas, . . . That order for ten handled money as chief A380 all cargo jets that financial officer at TWA. FedEx announced at the Does anybody remember Farnborough Air Show is how many winters TWA in point of fact not news, Rick Shuyler went through with almost rather an expected result of no money and no hope Kari Tikkanen, a pillar of airline cargo executives in America for the past two decisions taken sometime ago. But what of survival? No, this guy is not just decades, decides to step down from his post as Area Cargo Director North America an order however you slice it! Last time good—he is great & South America for Finnair Cargo. a freighter order had wowee impact . . . As Emirates SkyCargo readies It’s said that a career is a job you’ve had too long. Kari Tikkanen worked all his was when Boeing sold five B747s to its October 1st start up of four times adult life for just over 40 years, at Finnair. Just before retiring August 31st, 2002, a Pan Am 33 years ago when Fat Albert weekly service to Osaka serving Kansai few friends got together with Kari to wish him well. Pictured seated (l to r) are Peter was launched. In a summer of flat and Airport with the first in history direct Diefenbach-NCA, Joe Luise-Austrian Airlines and Jim Erickson-North American. flatter, A380 at least holds the promise service from the Gulf, via B777-200s Standing (l to r) are Marty Kovach- retired Sabena, Kevin McGuire-Evergreen of better things to come offering 15 to 20 tons of cargo lift, those Airlines, John Ryan-Virgin Cargo, Kari Tikkanen, Ed Chism-Emirates, Gerald . . . Nice work if you can get it flights are actually the last of five new Molinelli, Japan Airlines and David Johnson-Evergreen Airlines. A sculpture of a dept.—Pushed by special interests, destinations that the high-flying car- giant package of Lifesavers was presented with a small plaque inscribed with the IATA sends up a balloon trying to rier has added this year. That’s right. words: “To Kari—In life your friends are the real lifesavers.” change the standard for what airlines While you were sleeping, EK added ser- can charge for cargo that bulks out be- vices to and from Dubai to Casablanca, wrong has finally joined the rest of the five optioned) until further notice. fore it weighs out. Some shippers may Khartoum, Perth and Mauritius. With world scrambling to cut back and out . . . US Airways losses for the fourth be ripe for adding to bottom lines of the new services comes a menu of until the traffic picture brightens. This quarter were $1.01 billion, up from people who consult on “dim” or dimen- “SkyChain” IT-driven support that month SIA’s Singapore-Amsterdam- $101 million in 2000. Sales were off sional weight and companies that make SkyCargo makes available, allowing Chicago service begun last August quit 34% to $1.57 billion. Southwest quar- machines to measure these things. shippers to access information every altogether January 13th; SIA’s JFK-FRA terly net profit dipped 60% from year . . . Kitty Hawk said that it expects a step of the way. dailies are trimmed to four times week- earlier to $63.5 million as revenues slid plan of reorganization to be complete . . . Singapore Airlines has gotten ly and SIA’s west coast package from 16% to $1.24 billion. Northwest loss for by August 31st when it will emerge from clobbered on its routes to USA and LAX-Taipei-Singapore and SFO-Seoul- the fourth quarter was $216 million up Chapter 11 bankruptcy. The 121 carrier apparently is tired of operating its Singapore go from seven apiece to five. from $69 million in losses during the serves 47 U.S. destinations via its Fort MegaTop fleet of B747 aircraft, in Additionally the carrier is delaying its same period in 2000. Wayne hub with overnight service. some cases, mega empty. Right now next U.S. services’ aircraft, the elegant . . . As it prepares to topple Boeing’s . . . Even though Atlas Air lost $34.2 the carrier that seemed could do no A340-500, slowing deliveries (five firms, Pg-54 52 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE “Good writing takes more than just time; it wants your best moments and the best of you.”

Over the last 35 years you have successfully managed to do both. Congratulations!

Happy Birthday and thank you very much for your long-lasting collaboration.

Your Swissport Cargo Services Friends at 90 destinations in 30 countries.

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AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 53 Pg-52 . . . U.S. carriers may decide against flying pets aboard aircraft, if strict United Airlines announced Chapter 11 bankruptcy hammerhold on big aircraft with the new rules which basically will require Monday, December 9, 2002. That day in airline history introduction of the super-jumbo A380 an additional round of paperwork will surely be bookmarked as the definitive moment in 2006, Airbus with close to 100 of for every live animal flown, including that changed everything in American commercial the 21st century aircraft sold, is elimi- investigation and detailed reporting by aviation. nating 6,000 jobs through a series of the airlines to account for every animal UAL Cargo Vice-President Roger Gibson told Air maneuvers, including early retirement. that is injured or dies while in transit, Cargo News: “Cargo has been a solid performer. During Unlike Boeing, which dumped 30,000 are put into place by the U.S. Depart- the second quarter we assumed control of operations jobs, citing weak demand, Airbus with ment Of Transportation. Air Transport at a dozen additional cargo transfer facilities in North a backlog of 1,575 aircraft versus 1,377 Association said that paperwork and America to insure our standard of service that our for Boeing has thus far avoided the extra effort to comply would add sig- customers demand. While revenue went up during the draconian layoffs of its American rival. nificant costs. quarter, by 6% we were especially pleased just recently Boeing wins big order for B737-800s . . . Cold where you are? Just ask to score a record 8.1 million ton mile day, our best since 9/11. from the Irish-based Ryanair. Look Miss Greece who will tell you right “We understand the challenge our cargo product and airline faces ahead. for the no-frills carrier to start service away that any trip that includes Greece Yet cargo reliability has never been higher. While there is always room for all over the place, including Germany will warm your body and soul. Athens us to do better in air cargo, we will maintain our service delivery and full where the carrier is intent on busting International Airport (IAA) is also on product lines as we look for ways to better serve our customers and service up the near monopoly Lufthansa has its way to becoming the air cargo hub partners.” enjoyed. of Southern Europe with an aggressive UAL Cargo serves 134 destinations in 34 countries with 1,000 flights . . . American Airlines/British Air- cargo development program to service daily. ways has won tentative approval of its its more than 1,248 weekly flights to alliance. 96 destinations in 46 countries served by 46 airlines. wide, as the future of aviation, contin- code-shares on services beyond Hong ...... Swiss Miss? Swiss the airline built ues to fly in the black. No projections Kong to Bangkok, Kuala Lumpur, Pen- from the remnants of Swissair says that yet for 2002. ang and Singapore. Cathay gets a menu it will cut its fleet, as traffic remains . . . Tri-Cities Regional Airports hired of code-shares with AA from up to 20 soft. KLM reports a $90 million loss for Vaughn Barnett as manager cargo trade U.S. cities. . . . Lynden Air Freight based in Se- its third quarter despite flying around and development. Mr. Barnett comes . . . Airbus now says that it will out attle and Continental Airlines Cargo with its planes quite full for the past over to Tri-Cities from Metropolitan produce Boeing in both sales and de- are conducting a one-year alliance months. Lufthansa now says that its Nashville Airports, where he served in livery of new airplanes in 2003. While scheduled to continue until the end of ideas of profit for 2003 may have been the same capacity, during a four-year Airbus on the strength of an order 2003. Continental with 2,000 flights a overly optimistic. Everybody scores lack stint designing and implementing a from Easy Jet late last year outsold day will benefit from Lynden traffic as of business passengers, cost of Jet-A, series of innovative programs for air Boeing 300 orders to 251 this year, the it tries to fill aircraft on its long thin in- and uncertainty over Iraq war as major cargo. European manufacturer will deliver 300 ternational routes east, west and south contributor to business woes . . . Bahrain-based Gulf Air is out to aircraft to Boeing’s 275-285. from the USA. Lynden gets a good rate, . . . In Finland, Mikko Kuntola, first reinvent itself, pulling away from a long . . . Despite objection by Southwest space allocations and presumably Jack ever president of Finnair Cargo has slow decline which has seen the carrier and other regional carriers, U.S. De- Boisen’s cell-phone number. retired after two years at that post. reduced to less than 15 aircraft serving partment of Transportation gave green . . . The great grandson politician New President of AY Cargo is Juha a dwindling number of destinations light to alliance/cooperation between of visionary Chiang Kai shek has got Kinnunen. amidst recurring losses. Delta, Northwest and Continental to the deal done, so now there are flights . . . AMR’s fourth quarter last year, . . . Qatar Airways will commence code-share initially on about half of galore from Shanghai’s Pudong Airport $521 million loss adds to $3.1 billion flights to Oman during next year’s their flights. What that means is that via Macau and Hong Kong (no getting for the company in 2002. CEO Don Khareef Festival. “the three amigos” (no name for the off the plane) to Taipei, Taiwan until Carty said: “Clearly this situation is . . . China and in particular, Shang- alliance just yet) now control 35% of February 9th as businessmen, some unsustainable.” AMR says that it needs hai seems to have the current formula the U.S. domestic market while the two 500,000 strong with over $100 billion to squeeze at least $4billion costs reduc- for all types of growth. While plans are biggest airlines in the world, American, invested on the mainland, can get home tions in light of the new landscape for accelerated for a huge 100-kilometer with its TWA takeover controls 21%, for the Lunar New Year celebrations. the airline business. industrial free zone that would encom- and the United/USAir code-share con- When a China Airlines Magnolia blos- . . . Meantime Southwest has man- pass both the airport and deep-water trols about 22%. som-tailed B747 with 200 of its 380 aged to remain profitable since 9/11 port in a Shanghai logistics fantasy of . . . Meantime if things were not bad seats filled made the circuit, dragon although the Dallas-based carrier’s the 21st Century, Universal is dusting enough, comes a report about to be re- celebrations and all, it marked the end profits over 2001 were halved to $221 off Bugs Bunny for a theme park opus, leased to the Senate in Canada that says of a 50 plus year, no fly ban between million. But still, the airline founded as the rest of the city builds like mad to that aviation security throughout the the destinations. by Herb Kelleher and emulated world- welcome the World Expo in 2010. country is less than zero as compared . . . U.K. Government pops up with to the USA. Author/essayist and another plan to build an airport at . . . Continental loses $109 million teacher, the great Joyce Severnside where a new international for the fourth quarter, says it will lose Maynard whose works air gateway would rise upon the Severn this year in the first quarter and prob- include “To Die For”, “At estuary in South Wales. The airport ably all of 2003 will be in the red. Good Home In The World”, with approval could be open for busi- news? Cargo revenue jumped 36% in regular columns for The ness in 2012 and would serve southern fourth quarter of 2002. Too bad cargo New York Times, and for and western England. The government is less than 8% of CO’s revenue stream. National Public Radio’s notes that either Bristol or Cardiff air- Delta loses $221 million for the same “All Things Considered”, ports (or both) would be closed as part period. Wonder what ever happened to is pictured at Scholastic of the plan. Sky Team? Big kick off in Atlanta with Magazine’s 80th anni- . . .That long awaited code-share the entire airline (Delta, Korean, Air versary celebration with arrangement between American Air- France Princes in attendance in 2001 ACN correspondent, Flor- lines and Cathay Pacific has won U.S. then nary a word since. ence Arend, DOT approval after objections to the . . . Atlas Air Worldwide Holdings Both women were rec- arrangement by United were put to named Scott Dolan senior VP and ognized for their creative power and excellence on April 29, 2003 in New York rest. American puts its code on Cathay COO responsible for both Atlas and City. flights from three U.S. gateways and Pg-55 54 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE Pg-54 in 2003, 13.1 million fewer than the At a grand celebration year before. “This can be translated to mark the launch Polar Air Cargo. He had served as VP- into three years of lost growth,” AAPA of Emirates Dubai- operations for the company’s Polar Air reported. Cargo grew across the region New York service are subsidiary. by 4.3 percent . SkyCargo the Americas, . . . Peter Grønlund, SAS Cargo what’s old is new again. President and CEO, leaves the airline Pictured with Peter to go down to the sea in ships, joining Sedgley(extreme right) Scandlines on April 1. Peter was central are r to l Bruce White, to the cargo division formation in 2001. Russ Rumenik and He will still hold an advisory position Ed Chism of Emirates at SAS Cargo as part of the company S k y C a r g o . T h e board of directors. Chairman John Americas cargo team Dueholm described Mr. Gronlund’s includes not only several generations tenure atop SAS Cargo as “comprehen- of air cargo expertise, but also the sive and successful…” will and dedication to bring new . . . Wolf Dietrich Von Helldorff who Anthony Romeo, President and ideas and products to market. Shortly is chairman of the German Freight Owner of Charter America, Inc., has after this snap occurred, Mr. Ed & Co. Forwarders stood up with Lufthansa purchased Bank of America’s $30 mil- started filling up the flights. Maurice Cargo Board Member and boss Dr. lion debt of Miami cargo carrier Arrow Flanagan (left) Emirates Airline vice- Andrea Otto in front of a room full of Air, through a newly formed company chairman and group vice- president LH Cargo executives and more than called Arrow Air Acquisition, Inc. “My and Nigel Page, senior vice president 100 freight forwarders in Frankfurt and goal is to reorganize the company and commercial operations, the Americas, both agreed while 2002 was ‘stagnant’, preserve the airline and the jobs of greeted guests at the event in New York. 2003 at least for European air cargo several hundred employees in Miami,” looks better. Air cargo could be entering Mr. Romeo told ACN. Romeo is a well- a new era of cooperation in Germany known Miami aviation executive who as well. Everybody is up in arms about sold his company Miami Aircraft Sup- a proposal that night flights be shut port, Inc. to Worldwide Flight Services Japan Airlines And Worldwide Flight down at FRA. “It would spell the end of for $66 million in 1999 . . . air cargo Germany,” said one executive. . . . There is a report out of Europe Services In Historic Agreement “We will all have to work much closer that Alitalia is in deep financial trouble together on several issues that confront and needs immediate Italian govern- air cargo growth,” Herr’s Helldorff and ment intervention. Last week AZ Otto concurred. reported its worst annual results ever. . . . U.S. DOT names six airlines to According to sources, part of the prob- provide cargo services between Hong lem is that announced cost savings were Kong and third-country destinations in not implemented, including dismissal conjunction with their U.S.-Hong Kong of more than 2,500 staff last year. The services. Fed/UPS naturally, Evergreen, plan fell apart and was cancelled after Kalitta, Northwest and Polar Air Cargo trade union protests. also get the nod . . . U.S. Transportation Secretary . . . John Dasburg completed his Norman Mineta once again nixed acquisition of DHL Airways in a opening up the U.S. domestic market transaction put at $57 million. Boeing to European carriers. The EU wants its Capital Corp. financed for the sale. So carriers to have complete access to the now DHL Airways, is called Astar Air U.S. market as requirement to “open Cargo. Astar will depend on “wholesale skies” between the European Union Olivier Bijaoui, president and chief executive officer of Worldwide Flight overnight small package business, while and America. Most of the key airline Services (WFS), and Kazuto Yamamoto, Japan Airlines, vice president and at the same time looking for attractive resource countries of the EU already general manager cargo the Americas, sat down in New York City September opportunities to expand its charter, have a deal for “open skies” in place. 28, 2004 to sign the multi-year agreement that will see WFS take over Dept. of Defense and Postal Service . . . “European airlines are in a serious handling and marketing of JAL Management Corp.’s huge building 151/ business.” state,” Vagn Soerensen, CEO of Austrian Hangar 14 air cargo complex at JFK International Airport in New York, Mr. . . . Berlin Brandenburg Flughafen and Chairman of the Association of Eu- Yamamoto declared the event “a new beginning for both companies.” Holding, the joint federal-and state- ropean Airlines, told reporters at a press “We are very pleased at this new accord, our team is first rate. We eat sleep owned company that runs the German conference. “A few of our members are and drink air cargo with dedication to be the best” Olivier Bijaoui said. capital’s three airports, said it will close struggling to survive; we could well col- At the signing—back row left to right, Dennis Esnes, Regional VP, New York Tempelhof as part of plans to build a lectively report yet another unprofitable region, WFS; Barry D. Nassberg, Executive VP & CEO, WFS; John Gemmell, new international airport on the site year following losses totaling 6.4 billion Senior VP Sales WFS; Michael Duffy, Senior VP No. American Cargo WFS; of Schoenefeld, the airport that used to US$ in five years.” Mike Buckley, Staff VP & Regional Manager Freight & Mail Eastern Region serve East Berlin during the Cold War. . . . Iberia is watching airline restruc- No. America, Japan Airlines and Guido DiGiandomenico, VP Airline Sales, turing in Latin America closely, with a WFS. view to strengthening its position there, Front Row seated left to right, Olivier P. Bijaoui, President & CEO, WFS; while it has ruled out a greater focus on Kazuto Yamamoto, VP & General Manager, Cargo The Americas, Japan Asian markets Airlines and Rudy Auslander, President, Japan Airlines Management Corp. According to a story in the NY Imagination and will to succeed coupled with the tenacious drive of Japan . . . Last year’s SARS outbreak in Asia Times, a group representing business Airlines Management Corp.’s Rudy Auslander has resulted in changing old Pan caused passenger travel to tank says travelers will ask U.S. Congress to draft American Hangar 14 into a cargo and office complex colossus celebrating its the Association of Asia Pacific Airlines plans in the event that several major tenth year at JFK International Airport, New York. Building 151/Hangar 14 (AAPA). AAPA’s 17 member airlines airlines are forced to liquidate. The handles upward of 200,000 tons annually, about 20% of the gateway’s total lost 12.1 percent of their passenger group, The Business Travel Coalition, throughput with room to go to an excess of 250,000 tons.Converted from an old business for the year. AAPA airlines said in a statement that the country Pan Am maintenance operation, Building 151 features an 11-story container storage/retrieval system that is an airport landmark. transported 95.8 million passengers Pg-56 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 55 Pg-55 delivery forecast for this year. Airbus, Chairman now the number one commercial air- Wolfgang must be prepared for a “catastrophic plane builder in the world and likely Korte (left) failure” of the industry and urged to remain so, expects to deliver 315 to and Panalpina lawmakers to authorize the National 320 aircraft for the full year 2004. That Airfreight Academy of Sciences to develop poli- number would be close to the record Manager cies that could be put in place should of 325 deliveries registered in 2001. Germany, Ewald the industry reach such a crisis point. On another front, Airbus will ask for Heim (in front) Kevin Mitchell, chairman of the group, up to 1billion loans from European welcome Bruno which represents corporate travel states (France, Germany, UK, Spain) Sidler, CEO departments and travelers noted that to develop the new A350, a derivative Panalpina, to half of the traditional U.S. airlines of the A330 meant to go head to head the Air Cargo could be operating under bankruptcy with Boeing 7E7. Total development Club Germany and the level could increase to 70 per- costs will run into the 2 to 3 billion (ACD) meeting cent by the end of 2005. US Airways euros . . . October 12 at and United Airlines are already under . . . Excellent guide put on the web the Steigenberger bankruptcy protection, and Delta Air by Animal Transportation Association Intercity Hotel at Cargo City, south of Frankfurt Airport. As Panalpina Holding Lines could file for Chapter 11 unless (AATA) a non-profit international celebrated its 50th anniversary of service, ACD honorary member Guenter F. it is able to slash its costs and repair organization that is dedicated to “the Mosler salutes the ACD guest from Switzerland. its balance sheet quickly. Analysts say safe and humane transport of animals.” other airlines (Northwest, American, The Web site provides information on the AATA directory. www.aataanimal- for more than 17,300 new passenger Continental) could be forced to seek the organizational structure of AATA, transport.org/ and freighter aircraft worth $1.9 trillion bankruptcy protection to reduce wages membership categories and benefits, . . . In Brazil, Defense Minister (U.S.). Of this total, 16,600 new passen- and benefits to levels achieved by their educational program for animal at- Jose Viegas warned that Vasp, Brazil’s ger aircraft of more than 100 seats will rivals. “There is increasing probability tendants, and a calendar of industry fourth-largest airline, may have its be needed. That divides into an average that the U.S. airline industry, a critical related events and meetings. There is planes grounded without an immedi- 830 deliveries per year when evenly infrastructure for our country, will the facility to email a ‘shipping query’ ate plan to pay its overdue debts, after split and is better than either Boeing experience a catastrophic failure in the to the AATA, and they will fax or e-mail Celma, a unit of GE Capital, requested or Airbus has delivered lately. next 12 months [should two or three the names of AATA members who may the carrier be declared bankrupt. Vasp’s . . . Iraqi Airways makes its first airlines liquidate],” Mitchell said. provide the information you require. flying license was scheduled to expire. post-Saddam Hussain era flight from . . . Undaunted by all that gloom Companies who ship animals can also Reportedly, the President seldom turns Baghdad to the southern port of Basra. and doom, Airbus has increased its upload their particulars for entry into down requests for help. The airline had Some 50 passengers flew aboard the also requested to import half a dozen Boeing 737. Boeing 737-300s to replace the (GE) . . . The politicians and the buyers grounded planes, the ministry said. The lined up in Toulouse, France, to reveal airline is currently operating 22 aircraft. what all the noise is about. The A380 Brazil’s flagship airline, Varig, report- edly has debts of more than USD$2 billion. How all of this shakes out long- term will most probably revolve around a single surviving carrier . . . Lufthansa Cargo and Deutsche Post signed an accord in Frankfurt on closer cooperation in international airmail. GLOBALMATCH (Global Mail Transportation through Consolidation Hubs) consolidates airmail shipments was rolled out to more than 5,000 from several postal companies for invited guests who apparently didn’t bulk transportation. “Combining the mind that the jumbo is a bit stout or strengths of both partners will allow about five tons overweight. Airbus said us to offer other postal administra- not to worry which is exactly what the tions more cost-efficient and faster air 149 buyers of the big bird intend to do transport into and out of Frankfurt as Meantime as the world awaits A380, well as additional services,” said Klaus planners will undoubtedly exact a bit of Japan Airlines celebrates 50 years of service to the U.S. On February 1954, JAL Knappik, Chairman of the Global Mail trimming to bring weights in order. HH inaugurated biweekly service between Tokyo and San Francisco by way of Wake Division at the Deutsche Post World Sheikh Ahmed bin Saeed Al-Maktoum Island and Hon, via the “City of Tokyo” Douglas DC-6B propeller aircraft, Net Group. Cooperation between the will be remembered in aviation history which sat 36 people and had a flight time of 31 hours. Today, JAL offers more two partners utilizes Frankfurt as a as the individual most responsible for than 100 weekly flights to the U.S. and Canada. logistics base at the center of worldwide bringing the greatest airplane in the On April 1, 2000, JAL introduced a system of internal companies for its cargo distribution and transport for both world into the skies of commercial business. Deutsche Post and Lufthansa Cargo. aviation, when the chairman of Emir- As JAL’s cargo division, JAL Cargo is building an organization that takes active Initially, GLOBALMATCH will be of- ates ordered 46 of the giant A380’s.in responsibility for cargo operations, and it is implementing responsive measures fered in the Lufthansa Cargo network the medium hot, an understated on its own accord to serve shippers while developing a system for management at Buenos Aires, Dubai, Malta, Athens . . . Air France and KLM are creating responsibility with the goal of clarifying cargo business income and expenditure. and London. the “Cargo European House.” This team Just this year on April 1, 2004, Japan Airlines became Japan Airlines will be in charge of network manage- International Company Ltd., responsible for international air transport business ment, marketing and sales, with each - and Japan Air System became Japan Airlines Domestic Company Ltd., airline continuing management over handling domestic air transport operations. its own operations. In connection with this, JAL Cargo is positioned as an internal company of . . . ACI’s annual Airport Economics Japan Airlines International Company Ltd. . . . Airbus’ latest Global Market Survey for 2004 attracted the largest JALCARGO’s sales team at Building 151, JFK International Airport is always Forecast suggests strong industry sample in eight years of collecting eco- ready to provide the customer a complete logistics solution with a variety of growth through 2023, with the need Pg-58

56 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE TIME TO SWISS YOUR CARGO – People say a lot of things about the Swiss: that we have a penchant for perfection. That we are obsessed with quality. That our reliability borders on stubbornness. And what do we say in reply? We say it’s all true. Which is why, with us, your cargo is in the best possible hands – from storage and transportation up until the moment it arrives, right on time. Because no matter which of our 150 destinations your delivery is headed for – our Swiss values will be on board too. We care for your cargo.

SWISSWORLDCARGO.COM

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 57 Pg-56 tainly not finished with his aggressive cutbacks including cargo staff layoffs in nomic data. 665 airports responded, USA and elsewhere. representing over 70 percent of global . . . India signs an ‘open skies’ agree- traffic. Director General of Airports ment with the U.S. paving the way for Council International, Robert J. Aaron- more flights. Delta launches a daily son noted: “Airports, like their industry service between New York and Chennai. partners, have suffered financially over Continental working on a direct flight the past four years, with a steep drop between Delhi and New York. in operating surpluses and profits over . . . Bankrupt United Airlines reached time. The most notable statistic in the an agreement to terminate four em- Survey is that capital expenditure for ployee retirement plans that are cur- new infrastructure was at an all-time rently underfunded by nearly $10 high in 2004. This demonstrates the billion, the largest pension default in optimism of our members in continu- U.S. history. ing growth in passenger and shipper . . . Boeing concludes a 23-year run At China Airlines Cargo, Peter Wei who heads up the JFK sales and marketing demand. The world’s airports are com- of the B-757 by delivering the last one team says of his staff: “This is my family here. We have a true “United Nations” mitted to planning for the long-term.” (1050th) built to Shanghai Airlines. staff of great people who have gathered from all over the world.” Pictured the Expected growth is for over 4% per year Today more than 1,030 B757s are still China Airlines JFK Family, left to right: Robert Chiu, Marianne Tomasulo, for global airport passengers through in service. Peter Wei, Angelista Torres, Rosanna Campoli, Dennis Cheng and Frank Lau. the year 2020, an estimated reach of . . . Kingfisher Airlines starts service, 7 billion persons. Forecasted growth another in what promises to be a sky for freight service is at 5.1% per year, full of discount airlines flying all over comes a member of Star Alliance. The growth of fax and e-mail services. The reaching some 170 million tons by the India. Routes so far are Bangalore, carrier also announces a five-year deal large percentage of overnight deliveries year 2020. Mumbai and Delhi. extending to 25 Swiss WorldCargo des- made before noon shows the ‘need for . . . Singapore Airlines may have . . . The US Airways/America West tinations.to have its air cargo handled speed’, or faster transit times, is more squeezed Airbus for the first A380s, marriage will operate under the name by Swissport. critical than ever. Buyers of overnight but the ground handler Dnata, based US Airways, be based in Tempe, Arizo- . . . Bells are ringing at Dnata. The air services find compelling value in in Dubai, is the first to take delivery of na. and will be funded by $1.5 billion in Dubai-based air cargo handler said enhanced delivery velocity, and they an Airbus 380 aircraft pushback and new capital from a variety of investors, April 2004-March 2005 call center ac- will pay a premium to have goods in towing vehicle. Dnata is the largest, including aircraft maker Airbus. With tivity was above 70,000 calls a month hand as quickly as possible. And, not most innovative, successful supplier of this first USA airline merger in four adding up to a 15% up-tick over the surprisingly, there is more consumer air travel services in the Middle East. years, a fair certainty is other combina- previous year. Jean Pierre De Pauw, consignee activity in the ground parcel Last year Dubai handled more than 16 tions to appear Senior Vice President Dnata Cargo space than with airfreight.” million passengers, over 800,000 tons of as losses driven couldn’t be happier. “Air cargo traffic . . . Korean Air becomes the world’s cargo, and 160,000 aircraft movements by competition into and out of Dubai has experienced busiest air cargo airline according to involving over 100 airlines. and fuel prices steady and massive growth in the past IATA. The carrier took the lead with . . . Two Texas-based airlines Ameri- k e e p a i r l i n e years. It is a continuing challenge for us 8.164 billion ton kilometers flown in can and Continental get U.S. DOT profits depressed to manage this growth and still main- 2004, a 20.1 percent increase from the permission to launch passenger flights in 2005. tain high standards of service.” Mr. De previous year. It is the first time Korean to China this year and in 2006, while . . . Dermot Pauw adds that plans are underway to has achieved top position after holding Georgia-based Delta Air Lines got Mannion moves enhance and streamline services, with second place from 1996 to 2003. Luf- stiffed in its bid to fly Atlanta/ Beijing. to chief execu- the development of software that will thansa, which had maintained the lead DOT awarded cargo flights to FedEx tive position at provide customers with faster access for 19 years, comes in second followed Corp., United Parcel Service Inc., Dermot Mannion Aer Lingus, from to frequently-sought information, by Singapore Airlines with Cathay Northwest Airlines Corp. and Polar Air. Emirates which while freeing customer service staff to Pacific in fourth position. Just as it as- Other U.S. flag carriers that failed to he joined in 1987 and is credited with handle more complex queries. Dnata is sumes the crown of the world’s biggest win the additional service approval in- saving SriLankan Airlines when it was also working on a new online solution, air cargo airline, Korean Air faces a clude United, which wanted to add pas- on the verge of bankruptcy. Calogi, which will enable customers to labor beef with the carrier’s pilots who senger services between San Francisco . . . Singapore Airlines Ltd. forms complete their entire cargo shipping are calling for work slow-downs that and Guangzhou; Hawaiian Holdings a new cargo airline venture with Bei- transaction - from customs clearance could disrupt operations. But KAL is Inc., which offered San Diego-Shanghai jing-backed China Great Wall Indus- to invoicing - all from the comfort of not alone, as Asiana faces the same flights via its Honolulu base; and North try Corp. to serve the mainland plus their offices. challenge from its pilots as well. American Airlines, which applied to fly destinations in the United States and . . . Atlanta-based Colography Group . . . Boeing has a deal to sell 50 Boe- from Oakland, California, to Shanghai Europe. Based in Shanghai it is ex- now in its 22nd year released the find- ing 787 Dreamliners to five Chinese and Guangzhou via Honolulu. Also pected to begin flying in early 2006 with ings from the 2004 edition of its “Na- airlines (Air China, China Eastern Air- failing to win flights were cargo car- Singapore Airlines as 25% owner and tional Survey of U.S. Expedited Cargo” lines, Hainan Airlines, Xiamen Airlines, riers World Air Holdings Inc., Gemini China Great Wall, a state-owned trad- tracking behavior and buying attitudes Shangai Airlines) closing an earlier an- Air Cargo and Evergreen International ing company, controlling the venture shaping expedited cargo trends in the nounced deal. Negotiations began last Aviation Inc. with a 51% majority stake. Singapore United States. “There are several key winter and were said to include 60 air- . . . Lufthansa German Airlines cel- government’s investment arm, Temasek takeaways from the 2004 national sur- craft. The first plane will be delivered in ebrates fifty years of service since it rose Holdings which also owns Singapore vey results,” said Ted Scherck, president, June 2008, in time for the 2008 Olympic up off the ash heap of World War II and Airlines will hold 24% of the joint The Colography Group.“Retail outlets Games in Beijing. Boeing like Airbus was reborn with a single Convair 440. cargo venture. such as The UPS Store, FedEx Kinko’s realizes the importance of the number Now with the announced takeover of . . . With scheduled services DUS- and U.S. Postal Service counters are “eight” to the Chinese people. Swiss International Air Lines in a deal JFK-DUS six times a week, LTU, cel- wielding increased clout in shipping . . . New Orleans’ International worth up to 310 million euros ($409 ebrating its 50th anniversary opened and distribution. The trend towards airport closes August 28 at 1700 hrs as million) and a return to profit in 2004, non-stop services between Düsseldorf shorter lengths of haul continues apace, Hurricane Katrina roars across the Gulf the airline is flying high, sort of. LH and JFK. Leisure Cargo markets and with even airfreight services tradition- of Mexico with the Delta city smack in still has a bloated staff of more than handles all freight-for LTU and 12 other ally used to move products over long its center track. Delta, United, Jet Blue, 90,000 employees.But with a penchant carriers based in five countries serving distances being affected. The air letter US Airways, Northwest all cancel their for what he terms a “fitness program,” 148 airports on all continents. market remains resilient despite dire flights in and out of MSY. FAA person- LH CEO Wolfgang Mayrhuber is cer- . . . Swiss International Air Lines be- warnings it would be overtaken by the Pg-59 58 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE together again day after tomorrow, say Pg-58 eleven-ish ?” In reality, looking at the nel still manning air traffic control Au- two airlines’ system maps, a merged gust 29 but the tower was expected to be Delta-NWA makes a lot of sense. Both evacuated, with FAA control shifting to have separate strengths in the U.S. mar- another location as winds topped fifty ket with minimal route overlap. Delta miles per hour. A skeleton crew stands is number one across the Atlantic, a by to clear the runways and terminal crown it attained when it took over Pan area of debris as the storm bears down Am 15 years ago. Northwest has built a on New Orleans. mighty empire with its service to Asia . . . The Wall Street Journal says that during the past half century. Delta Airlines will file for bankruptcy . . . Airbus comes up big as the protection. Delta has lost more than Hurricane Katrina emergency relief $10 billion since 911. Despite a heroic effort continues, donating use of the effort on the part of its employees and largest cargo carrier in the world, an lately its management and its bankers A300-600 Super Transporter, “Beluga” too, changes in U.S. bankruptcy law that moved relief supplies donated by They made it happen. As folks celebrated launch of Cathay Pacific all-cargo about to go into effect next month the governments of France and the service to Atlanta, and first direct air service from Georgia, USA to Hong Kong, coupled with soaring fuel costs, and United Kingdom to aid victims in the key players in landing the flights to Atlanta were jubilant. Pictured left to right: sharp low-cost competition brings on Hurricane stricken areas of the United Stephen Wong, Cathay Pacific Vice-President Cargo, The Americas, Tom Wright, a once unthinkable situation at the States. The aircraft moved tents, camp Senior Vice President, Americas, Bob Pertierra, Vice President Logistics Industry great American legacy carrier. While it beds, blankets and other relief items Development, Atlanta Chamber of Commerce, Ron Mathison, Cathay Pacific is too soon to predict what lies ahead, and is available to the UK and France Director & General Manager Cargo, Robert Kennedy, Manager Marketing & United Airlines, the second biggest U.S. relief effort for as long as needed, Air- Intergovernmental Affairs, Hartsfield Jackson International Airport and Warren flag carrier has lined up more than $1 bus said. Jones, Aviation Development Manager, Hartsfield Jackson International Airport. billion in financing and is about to end . . . SkyTeam Cargo newest member its more than two-year journey through is Northwest Airlines Cargo. SkyTeam of Bahrain, Oman Air, Yemenia, Saudi plans a cargo fleet of twelve planes, bankruptcy early next year. Cargo was founded in 2000 by Aero- Arabian Airlines, Royal Jordanian Air- which would position CCA as one of . . . Just one more . . . “Delta Orient” méxico Cargo, Air France Cargo, Delta lines, Middle East Airlines of Lebanon, the leading air cargo companies in may be a new airline on the horizon Air Logistics, and Korean Air Cargo. Egypt Air and Tunis Air. China. China Cargo Airlines is based in as both Northwest and Delta Airlines Alitalia Cargo and CSA Cargo joined . . . The Air Cargo Americas event in Shanghai, which is the most energetic showed up in the same bankruptcy SkyTeam Cargo in 2001, KLM Cargo Miami, USA is finally cancelled at the metropolitan area in China. When CCA court in Manhattan, New York, on ex- joined in 2004. last minute by show organizer World was founded in 1998 it enjoyed market actly the same day, at almost the same . . . Arabesk, a new air alliance being Trade Center in Miami after Hurricane share in Shanghai of 70 to 80 percent. time. Can you imagine for a moment created by eight Middle Eastern airlines Wilma knocks power out to most of However despite years of continued that some secret talks were taking place is expected to launch early next year. the city, flooding is rampant and the profits, CCA market share has deceased at an undisclosed location, but were Founded with the stated aim of better airport is closed indefinitely. But the to 20 percent, although its business con- suddenly interrupted as somebody schedule coordination, strengthening show, that for even the uninformed tinues to grow year by year. No doubt suggested: “First, let’s take care of marketing power and creating better was a no-go from early the first day, increasing competition caused China those court filings, and then get back connectivity, members include Gulf Air reportedly continued to draw people Cargo Airlines to lose its dominance in in, even setting up some booths as Shanghai’s air cargo market. Wilma raged and devastated parts of . . . Dubai unveiled the master plan One of the nicest, smart- Miami, and the hotel and venue were for its $8.17 billion 140 kilometer Jebel est and best air cargo peo- operating on emergency generators Ali Airport City development at the ple we have met in our 31 while security at the show venue, The Dubai Air Show. Central to the project, years in the business, Peter Sheraton warned visitors “stay inside Jebel Ali International Airport, will Yap, Regional Director and and don’t venture out.” The late can- have six parallel runways and ability Area Manager, Asia Pacific cellation or “postponment” that WTC to handle 120 million passengers and for Air Bridge, retires from released mid-day Tuesday through their 12 million tons of cargo a year. “DLC’s the company at the end of mouthpiece “sponsoring publication,” wide and competitive offering will fo- January 2006. followed Air Cargo News FlyingTypers’ cus on delivering speed, efficiency and Stan Wraight, Vice warning worldwide earlier in the day economy so our customers, in turn, can President of Volga Dnepr that the Air Cargo Americas show was pass these values on to their own clien- said: “Without a doubt, toast. Many in the air cargo industry are tele,” says Michael Proffitt, CEO, DLC. ABC would be nowhere left angry and confused and wonder- With room to grow JXB is earmarked in China without Peter’s ing what the hell happened in Miami. to serve the aviation needs of Dubai leadership. He is a true icon in this business.” Rarely does an event unleash the feel- through 2050. Peter Yap joined Air Bridge Cargo in 2003. Prior to that, Mr. Yap helped ings of an industry as the fiasco at Air . . . The new EU “Airline Blacklist” build Atlas in China. Peter started as top cargo executive at China Airlines Cargo Americas. law goes into effect next Monday cargo, where he put that carrier’s freighter program on the map. . . . Deutschland Uber Fracht Dept.: December 5. Under the new rules an When the late Michael Chowdry (right) brought Golden, Colorado-based Deutsche Bahn buying BAX Global airline identified as blacklisted is “not Atlas Air to the fore, providing aircraft, crew, maintenance and insurance expands DB big time as an interna- allowed to land” in the EU. Also after (ACMI) for cargo executives, the very first customer for this new idea was China tional logistics services provider in the January 1, 2006 blacklisted carriers will Airlines’ Peter Yap (left). Atlas Air Inc. (NYSE:CGO) provides six B747-200 all Asia/Pacific region, and also in China also be prosecuted.. cargo jets to China Airlines Cargo. and the USA. Another DB company . . . Next year IATA said if nothing Peter Yap said that when he leans back in his chair and dreams of a perfect Schenker should fit well in the new mix, else happens another $4.2 billion in air cargo universe, the skies are full of “white tailed airplanes.” No ego there. the thinking goes. red ink will flow before airlines return In 1997, China Airlines Cargo contributed an impressive 29 percent to the . . . The requisite majority of Exel to the black in 2007. Breaking it down, airline’s bottom line. shareholders approve Deutsche Post/ North America airlines are still the On a personal note, Peter shares our passion for Jackie Chan movies and Exel for 3.7 billion EUR. Deutsche Post world’s big losers generating $10 billion enjoys hiking in the hills around Taipei. World Net made its takeover bid for in 2005 losses with $6.5 billion to follow He promised to take us there at some point – hopefully, now he’ll have the Exel in September. in 2006. In Europe airlines are expected time. . . . By 2010, China Cargo Airlines to earn $1.3 billion in 2005.

AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE 59 any carriers that fly Minto Frankfurt know Alexandra Ulm as their con- tact when they want to start or increase both their cargo and passenger presence at Frankfurt Airport. She’s the go-to person especially for North American carriers when they need to identify slots that are available.

ary Lou Rodriguez is a t’s 9:30 p.m. on a Wednesday evening and “The Food Lady” MMiami-based cargo ex- (aka) Karen Rondino, Director Air Product Americas Region ecutive who rightfully belongs forI Agility Logistics at JFK Airport, is giving directions to a o bring the best of Arabic in the air cargo hall of fame as “NYC road-challenged”, long haul truck driver who needs to hospitality to a worldwide a genuine original. Today she get from the Brooklyn Queens Expressway to a frozen storage audience,T Suzan Tarabishi is with Crawley Maritime in facility at JFK. joined the former ALIA – The Miami, a big shipping com- Royal Jordanian Airlines – as pany, but when we first got an air hostess, with Royal Jor- to know her she was a major moving spirit behind the Miami Air Cargo Association (MACA). danian (RJ) being the leader She served as the association president in 1977 and on the board of directors for several years of 6th freedom traffic in the thereafter. She was Continental Airline’s first female air cargo sales representative and at the Middle East of the Eighties. time, certainly the most charming. A native of Cuba, Mary Lou began in air cargo at LEBCA a Venezuelan airline, later taken over by VIASA. (1977)

usanne Keimel who serves Sas co-pilot at Lufthansa Air Cargo News Cargo might keep a careful FlyingTypers notebook as she blazes the global air cargo lanes aboard recognizes the role an all-cargo aircraft. of women in air Every time she glides into right seat and prepares for cargo. Here are takeoff, she is also making some of the women Susanne Can some kind of history. and their stories. “I have absolutely no regrets Lift An MD-11 about joining cargo.

Anita Khurana Olga Pleshakova Tulsi Mirchandaney Iwona Korpalska Michelle Soliman

Mathilde Morgan Lina Rutkauskien Lucy Ntuba Gloria Whittington Salma Hareb 60 AIR CARGO NEWS OCTOBER 2010 GALA 35 TH ANNIVERSARY ISSUE