AIR FREIGHT ASIA
Volume 1, Number 3. November-December 2008 UPDATE MICA (P) 269/05/2008 Airbus A320 family final assembly plant in China marks official start
Airbus production in China expected to reach four aircraft a month by 2011.
INDUSTRY FACTS Date: 8-10 September, 2009 Location: Hong Kong SAR Venue: AsiaWorld-Expo @ Airbus has officially opened the Airbus Tianjin final assembly plant – the first Airbus final Hong Kong Int’l Airport assembly plant outside of Europe. The Chinese A320 Family Final Assembly Line was officially Exhibition inaugurated by Chinese Premier, Wen Jiabao, Airbus President and CEO, Tom Enders and hours: 10.00am - 5.00pm Tianjin Party Secretary, Zhang Gaoli. Airbus has a 51% stake in the business, with the other Admission: Trade visitors only partners, the Tianjin Free Trade Zone, and China Aviation Industry Corp I and II. Airbus said it Conference: 8-9 September, 2009 at plans to increase production to achieve a target of four aircraft per month by 2011. AsiaWorld-Expo Conference Hall Hotel Accommodation: Asian Aerospace 2009 launches AA Club China Visit www.asianaerospace.com and click “Hotels” concept to benefit both buyers and sellers Air Travel: Official airline: Cathay Pacific Airways; visit Reed Exhibitions, the organisers of Asian milestones for Asian Aerospace and www.cathaypacific.com for eligible discounted Aerospace 2009 (AA 2009), has launched a its customers. First, there will be even rates. dedicated community building programme greater focus on the China marketplace, Co-located with: – “Asian Aerospace Club China” (AA Club given the emergence of China as a global China) – for global suppliers to engage commercial aerospace and civil aviation with buyers from the Chinese industry. industry stakeholder. The exclusive AA Club China is a There will be a swathe of market business to business (B2B) initiative; a and industry intelligence on the buying year-round membership community set needs of China. There will be even more up to create a networking and knowledge- opportunities for worldwide suppliers to building platform for commercial aviation continually engage with Chinese buyers professionals in China to engage with like- including at scheduled AA 2009 road minded individuals and suppliers keen to shows to key Chinese aviation hubs like INSIDE: share information regarding their products, Chengdu, Xi’an, Shenyang and Ha’erbin. services and technologies. Hong Kong serves as a gateway to the • DHL doubles central Asia hub While membership is complimentary, growing China market – with its need by • Agility continues aggressive the programme is only available to qualified 2026 for over 3,500 commercial and civil China expansion professionals and contracted exhibitors at aircraft units and equipment required for the • Wal-mart sets up regional HQ AA 2009. 97 new airports to be built. The AA Club • Cargo screening technology The AA Club China charts new continued on Page 3 goes under focus
PublishedAIR FREIGHT by AirASIA Freight UPDATE Asia, NOVEMBER-DECEMBER 51 Changi Business Park2008 Central 2, The Signature #07-01, Singapore 486066 - www.airfreightasia.com LLÕAKDDC LLÕAKDDC
Building the cargo supply chain together
Focus on the customer: delivering in turbulent times IATA’s annual World Cargo Symposium is the only industry event to bring customers and the entire air cargo supply
Bangkok, Thailand | 2-5 March chain together to take concrete action in building a safe, secure, efficient and quality air cargo industry.
Principal Media Sponsor: Find out more www.iata.org/events/wcs09 we have focused on presenting China’s AA Club China launch market opportunities and potential to the SPECIAL EVENTS AT world. To create further awareness of AIR FREIGHT ASIA 2009 from Page 1 China’s emerging commercial aerospace and civil aviation industry, as well as AFA09 Golf Tournament China offers a 24/7, online opportunity to Tee off on September 7 with the traditional the ever-growing importance of Asian Air Freight Asia Golf Tournament at the engage with qualified professionals from economies, Reed Exhibitions has decided SKYCITY NINE EAGLES GOLF COURSE China’s commercial aerospace and civil to launch the AA Club China initiative a – a perfect place to start your networking aviation industry. full year ahead of the show. In so doing, activities during AFA09. Preecha S. Chen, President of Reed we are effectively helping our customers Conveniently located to the east of the Exhibitions Greater China, observed: to prepare and communicate better with existing passenger terminal, the SKYCITY “We have long understood the importance their targeted audience in China.” NINE EAGLES GOLF COURSE is set within of the Chinese market, especially from The inception of the dedicated an aesthetically attractive environment with a long-term perspective, which is why a landscape of undulating greens, artificial community is marked with the lake and extensive sand bunkers. It is also soft launch of AA Club China’s Hong Kong’s first nine-hole golf course website (www.airclubchina.com), featuring an “Island Green”. which also coincides with the The golf course provides a pre-registration of visitors to AA comprehensive range of facilities including 2009. equipment rental, luggage storage, With the support of various restaurant, a club house, and pro-shop, as well as lighting for night-time golfing. leading international and local For further information, go to website: industry media partners, as well as www.airfreightasia.com industry bodies, the website aims to deliver highly engaging content to its members and empower the Chinese civil aviation professionals. The website is also The Club China initiative will help to Deliver Business able to facilitate online information Contacts; bringing together key industry professionals exchange and discussions through throughout the year, as well as during the show. blogs and forums.
Networking is the name of the game at High flyers to meet at Latin America event AFA - Sponsorship packages on Page 5. Airline Business, the monthly boardroom on the 7th, 8th and 9th December 2008, magazine for the aviation industry, has and follows last year’s successful launch Welcome reception The organisers of AFA09 and the Asian announced this year’s date for its second event in Monterrey, Mexico. Aerospace International Expo and Congress Network Latin America, the prestigious To find out more about the event, log 2009, will invite exhibitors and delegates to a networking event that brings together route on to www.networklatinamerica.com or welcome reception from 6pm - 10.30pm on planners from airlines and airports. contact event manager Jane Cartwright September 7 at the 1,000-room Hong Kong The exhibition and conference will be on Tel: +44 208652 3659 Email: jane. SkyCity Marriott Hotel, which is connected hosted by Aruba Airport in the Caribbean [email protected] to AsiaWorld-Expo by a walkway. AIR FREIGHT ASIA UPDATE Subscription Form
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AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 3 AGENDA 2008 2009 Nov 4-6 TIACA International Air Cargo Forum (ACF Feb 17-19 World Air Cargo Event, Bangkok 2008), Kuala Lumpur Convention Centre, Convention Centre, Bangkok, Thailand. Kuala Lumpur, Malaysia. www.aircargonews.net www.tiaca.org/2008 Mar 2-5 IATA World Cargo Symposium, Bangkok, Nov 4-9 Air Show China, Zhuhai 2008, Thailand. Guangdong, China. www.iata.org/events/wcs09 www.airshow.com.cn Mar 10-15 Avalon 2009, Australia Int’l Airshow & Nov 5-7 Certified Transportation Network AGM, Exposition, Avalon Airport, Renaissance Kowloon, Hong Kong. Geelong, Vic, Australia. [email protected] www.airshow.com.au
Nov 23-25 Int’l Freight Week, Abu Dhabi National Mar 24-26 SITL Temps Reel, Porte de Versailles, Exhibition Centre, Abu Dhabi, UAE. Hall 7.2, Paris, France. www.internationalfreightweek.com www.sitl.eu
Nov 27-29 Transport & Infrastructure India 2008, World May 3-5 CNSW Partnership Conference, La Costa Trade Centre, Mumbai, India. Resort & Spa, Carlsbad, CA, USA www.stattimes.com/tii2008 www.cnsc.net
Dec 2-4 Interairport China 2008, China Int’l Exhibition May 12-15 Transport Logistic/Air Cargo Europe, New Centre, Beijing, China. Munich Trade Fair Centre, www.interairportchina.com Munich, Germany. www.transportlogistic.de Dec 2-4 Global Distribution Strategies 2008, Langham Place Hotel, Hong Kong. Sep 21-25 FIATA World Congress, CICG Conference www.ticonferences.com Centre, Geneva, Switzerland. www.fiata2009.com Dec 7-9 Network Latin America Radisson Aruba Resort Nov 1-3 SITL Dubai, Airport expo, Dubai, UAE. www.fllightglobal.com/networklatam www.sitldubai.com
4 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 AIR FREIGHT ASIA 2009 SPONSORSHIPS AVAILABLE
Coffee break on September 8 Coffee break on September 9 AFA09 Conference folders - two opportunities available - two opportunities available (350 units) (300 pax) (300 pax)
• One complimentary registration • Two complimentary registrations and • Two complimentary registrations and WHOM TO CONTACT and a 25 percent discount off a second 25 percent off a third registration 25 percent off a third registration registration • Branding on backdrop on stage in • Branding on backdrop on stage in • Branding on backdrop on stage in conference room during conference conference room during conference AIR FREIGHT ASIA conference room during conference days days c/o Reed Exhibitions Ltd days • Branding on displays at buffet area • Branding on displays at buffet area The Signature • Your company name/logo in Air Freight • Your company name/logo in Air Freight • Your company name/logo in Air Freight Asia Update newsletter Asia Update newsletter 51 Changi Business Park Asia Update newsletter • Your company name/logo in Air Freight • Your company name/logo in Air Freight • Your company name/logo in Air Freight Central 2, #07-01 Asia Show Guide Asia Show Guide Asia Show Guide Singapore 486066 • Your company materials on display for • Your company materials on display for • Your company materials on display for Tel: +65 6780 4676 distribution throughout the conference distribution throughout the conference distribution throughout the conference • Logo link on www.airfreightasia.com • Logo link on www.airfreightasia.com • Logo link on www.airfreightasia.com Fax: +65 6588 3341 from date of contract signing until from date of contract signing until from date of contract signing until September 15, 2009. 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CONTACTS: Price: HK$27,300 (US$3,500) Price: HK$19,500 Price: HK$19,500 Nol van Fenema (US$2,500) each sponsor (US$2,500) each sponsor Organiser Email: Welcome Reception on [email protected] September 7 Buffet lunch on September 8 - Buffet lunch on September 9 - - two opportunities available [email protected] two opportunities available two opportunities available • Three complimentary delegate pass (300 pax) (300 pax) and 25 percent off a fourth pass • Three complimentary registrations and • Three complimentary registrations and David Lim • Branding inside and outside the 25 percent off a fourth registration 25 percent off a fourth registration Senior Sales Manager reception room • Branding on backdrop on stage in • Branding on backdrop on stage in • Branding on backdrop on stage in Aerospace & Aviation conference room during conference conference room during conference conference room during conference days days Group Asia days • Branding on displays at buffet area • Branding on displays at buffet area Reed Exhibitions Ltd • Logo on the reception invitations • Your company name/logo in Air Freight • Your company name/logo in Air Freight • Your company name/logo in Air Freight Tel: +65 6780 4669 Asia Update newsletter Asia Update newsletter Asia Update newsletter +852 2965 1688 • Your company name/logo in Air Freight • Your company name/logo in Air Freight • Your company name/logo in Air Freight Asia Show Guide Asia Show Guide Email: Asia Show Guide • Your company materials on display for • Your company materials on display for • Your company materials on display for [email protected] distribution throughout the conference distribution throughout the conference distribution throughout the conference • Logo link on www.airfreightasia.com • Logo link on www.airfreightasia.com • Logo link on www.airfreightasia.com from date of contract signing until from date of contract signing until Rosie Chan from date of contract signing until September 15, 2009. September 15, 2009. Reed Exhibitions Ltd September 15, 2009. Tel: +65 6780 4676 Price: HK$66,300 Price: HK$66,300 Price: HK$100,000 (US$8,500) each sponsor (US$8,500) each sponsor Fax: +65 6588 3341 (US$13,000) each sponsor Email: [email protected] Golf Tournament on Wine & beer at Lunch on Wine & beer at Lunch on September 7 (Reserved) September 8 - September 9 - For advertising and two opportunities available two opportunities available • Two complimentary registrations and (300 pax) (300 pax) exhibition space sales, 25 percent off a third registration • One complimentary registration • One complimentary registration please contact: • Branding on backdrop on stage in and a 25 percent discount off a second conference room during conference and a 25 percent discount off a second registration days registration • Branding on backdrop on stage in USA/CANADA • Branding on displays at golf club • Branding on backdrop on stage in conference room during conference Matt Weidner • Your company name/logo in Air Freight conference room during conference days Asia Update newsletter days Tel: +1 610 486 6525 • Branding on displays at buffet area • Your company name/logo in Air Freight • Branding on displays at buffet area • Your company name/logo in Air Freight Fax: +1 610 486 6527 Asia Show Guide • Your company name/logo in Air Freight Asia Update newsletter Email: [email protected] • Your company materials on display for Asia Update newsletter • Your company name/logo in Air Freight distribution throughout the conference • Your company name/logo in Air Freight Asia Show Guide • Logo link on www.airfreightasia.com Asia Show Guide RUSSIA • Your company materials on display for from date of contract signing until • Your company materials on display for distribution throughout the conference Sergey Stanovkin September 15, 2009. distribution throughout the conference • Logo link on www.airfreightasia.com • Logo link on www.airfreightasia.com Tel: +7 495 7750735 Price: HK$117,000 (US$15,000) from date of contract signing until from date of contract signing until Fax: +7 495 7750736 September 15, 2009. September 15, 2009. Email: [email protected] Price: HK$19,500 Price: HK$19,500 (US$2,500) each sponsor (US$2,500) each sponsor
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 5 AIR FREIGHT ASIA 2009 SPACE RATES AFA 2009 Shell Scheme Early Bird Regular Rate Exhibitiors 9-20 sqm HK$3945/sqm HK$4095/sqm Aeroflot Cargo 21-50 sqm HK$3865/sqm HK$4056/sqm Aeromexico Cargo Agility Raw Space Early Bird Regular Rate Air Astana Cargo 25-50 sqm HK$3430/sqm HK$ 3585/sqm Air Bridge Cargo Airlines Air France-KLM Cargo 51-100 sqm HK$3365/sqm HK$ 3545/sqm Air Logistics Group 101-150 sqm HK$3290/sqm HK$ 3465/sqm Alitalia Cargo ALS Advanced Logistic Systems Design Plus Early Bird Regular Rate AmSafe Bridport Atlas Air 9-20 sqm HK$4925/sqm HK$5350/sqm Bahrain International Airport 21-50 sqm HK$4845/sqm HK$5310/sqm Cathay Pacific Cargo Cargoitalia Early Bird Package for 9 sqm is charged at HK$52,540 which includes Cargolux one 9 sqm shell scheme booth, one delegate pass and one half Cargo Village News page full colour advertisement in Air Freight Asia Update. CHAMP Cargo Systems Cologne/Bonn Airport Early Bird Package for 18 sqm is charged at HK$94,180 which includes CSA Cargo one 18 sqm shell scheme booth, two delegate passes, one full page Delhi International Airport full colour advertisement in Air Freight Asia Update. Delta Cargo DNATA Cargo Early Bird rate is valid strictly until 30 November 2008. Dubai Airports Dubai Logistics City AIR FREIGHT ASIA 2009 SPACE RESERVATION FORM Düsseldorf Airport Emirates Skycargo Etihad Crystal Cargo YES, I want to reserve space at Air Freight Asia 2009 Freightscan Hongkong Air Cargo Terminals Ltd Shell Scheme sqm Hong Kong International Airport Raw Space sqm Houston Airport Korean Air Cargo Design Plus sqm Leipzig-Halle Airport Name: Manchester Airport Group Maximus Air Cargo
Title: Miami Airport Nordisk Aviation
Company Name: Northwest Airlines Cargo Polar Air Cargo Saudi Arabian Airlines Tel: Fax: Sharjah Airport SkyTeam Cargo Alliance Email: THAI Cargo TNT Signature: Date: United Airlines Cargo For more than one booking, please photocopy this form. VRR Asia Pte Ltd Please return the form by fax to +65 6588 3341 or send via email to Worldwide Flight Services [email protected]. World Airways
6 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008
Buffet Buffet Area Area
Buffet Buffet Area Area
Air Freight Asia will be conveniently located immediately on the left of the main entrance to the AsiaWorld-Expo Halls, which will be the venue for the largest dedicated commercial aviation showcase.
Get in touch with the contacts on adjacent page to confirm your preferred exhibition location at AFA 2009.
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 AIRLINES Austrian all-cargo carrier is the launch Air France freighter customer for Quiet Trader programme deal is confirmed
Amerer Air, Austria’s private World Airways has signed a contract with all-cargo carrier, has become Air France to operate one MD-11F on a the launch customer for BAE full-time basis for service from France to Systems Regional Aircraft’s BAe a variety of destinations in North Africa, 146 QT (Quiet Trader) freighter and a weekly flight to Brazil. This is programme. the second consecutive year that World The aircraft was converted at Airways has provided a freighter aircraft Aerostar in Bacau, Romania and to help Air France meet its African market delivered to Amerer Air’s base requirements. at Linz, where it is scheduled to See interview with outgoing Air be operated on behalf of major France cargo chief on page 23. integrators, as well as on ad hoc freight charter work. The Amerer Air BAe 146 QT with the new livery. Amerer Air has created a logistics centre in Linz, where the airline In addition, Amerer Air has built up, Qantas starts its currently operates a Fokker F27-500 since 1999, a substantial long-distance A380 service six-tonne freighter that is used to serve international truck transportation business major freight forwarders, express cargo as a supplement to the air freight sector companies, private shippers, integrators and has a fleet of trucks and large container and governments. vehicles centre. AAPA lashes out at EU ETS decision The decision by the European Parliament to measures to further improve fuel efficiency, include aviation in the European Emissions and reduce emissions, with a medium term Trading Scheme (ETS), has been blasted goal of achieving carbon-neutral growth by Andrew Herdman, the director general and long term sustainability, he said. Qantas has inaugurated its Airbus A380 of the Association of Asia Pacific Airlines According to Herdman: “Aviation commercial services with the delivery of (AAPA). is more than willing to play its part in the first of 20 aircraft its has on order. “European legislators have again over- contributing to wider efforts to address The first of the Qantas A380s, configured reached their authority in seeking to impose climate change. We support emissions in a four-class cabin format, was handed this scheme on international airlines trading, but as far as international aviation over to the airline in Toulouse in mid operating outside European airspace,” is concerned, we need a consensus on a September, prior to service entry on Herdman said. globally harmonised solution. Consistent the Melbourne to Los Angles route on More than 130 non-EU governments with Article 2 of the Kyoto Protocol, ICAO October 20. Pictured is the aircraft in the made their opposition abundantly clear is the only forum in which all 190 States new livery on its first flight from Hamburg at the ICAO Assembly in September can reach such an agreement. We look in August. 2007, when the EU proposals were firmly to the recently formed ICAO Group on rejected as incompatible with the Chicago International Aviation and Climate Change Convention governing international (GIACC), which includes representatives aviation. from Europe, as the key to resolving the Singapore Saudi Herdman said: “One of the most current political impasse, and urge them to alliance agreed offensive aspects of the scheme is that make every effort to move the international Europe is, in effect, appointing itself as debate forward.” Saudi Arabian Airlines and Singapore tax collector-in-chief for international Meanwhile, IATA warned that Airlines have signed a Memorandum of aviation. Europe’s unilateral and extra-territorial Understanding (MOU) for marketing Like a number of other purported green approach will spark international legal co-operation, establishing a framework taxes and levies, there is absolutely no battles. “What right does Europe have focused on developing routes between the assurance that such funds will be directed to impose ETS charges on, for example, Kingdom of Saudi Arabia and Singapore. towards meeting genuine environmental an Australian carrier flying from Asia to The non-binding MOU outlines the objectives.” Europe for emissions over the Middle areas in which the two parties will co- The commercial aviation industry is East?” director general and CEO Giovanni operate to seek new business opportunities, already strongly committed to a range of Bisignani asked. improve airline efficiency and ultimately deliver an enhanced customer experience. These areas include marketing cooperation, Delay plan for new AA China route gets OK code-share arrangements, schedule Federal regulators have approved a request costs and problems in the airline industry. coordination, and cargo facilitation. by American Airlines to delay launch of The brief order from the Transportation The MOU excludes co-operation in a new non-stop service between Chicago Department approved the request to delay setting cargo rates, or any other activity and Beijing for a year, because of high fuel service, until no later than April 4, 2010. not exempted under competition laws.
8 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 AIRLINES AIRPORT Abu Dhabi heavylift specialist starts Dusseldorf role overhaul plan for Russian freighters attracts carriers
additional D-130 KP-2 engines DUS Cargo from NPO Saturn, Russia, a year Logistics, the later. main cargo The overhaul and upgrade handler at programme is being undertaken Dusseldorf with Aviazapchast, in conjunction airport, said with the Ilyushin Design Bureau. it continues One aircraft has already been to fulfil an completed at the Ryazan Plant 360 increasing in the Russian Federation, work on role as a main the second is under way, and the distribution third will fly to Russia in January. centre for Each comprehensive overhaul takes much of Fleet overhaul will extend life of Abu Dhabi six months to complete. N o r t h e r n headquartered Maximus’ heavy-lifter Ilyushin fleet. Gerton Hulsman: Alert to “Safety is the first issue,” said Germany and customer needs. Maximus president and chief executive is attracting Maximus Air Cargo, the Abu Dhabi- Fathi Hilal Buhazza. “More restrictions several new carriers. headquartered specialist ‘heavy-lifter’, is have been placed by EU legislation on Lufthansa has started A340-300 service undertaking a $10 million overhaul of its ageing aircraft on the grounds of safety and to the USA and Canada, while Egypt Air Ilyushin fleet – extending the operating security. Given our substantial investment in has launched twice weekly full freighter lifespan initially by seven years. life extending major overhaul programme, operations with A300-600Fs. Armavia, The three IL76TD freighters were this only benefits the Maximus Air Cargo which started operations at Dusseldorf in produced in 1992 and acquired by fleet and will continue to do so in the next May, operates A320 passenger flights from Maximus in 2005. The carrier bought three seven years and beyond,” he said. Yerevan in Armenia. This allows the weekly import of fish, especially fresh crayfish that is much sought after in the region. JAL cancels its JFK freighter service Managing Director of DUS Logistics, Japan Airlines cancelled its freighter operates three 767-300Fs. Gerton Hulsman, has clear objectives for service between Tokyo Narita and New The carrier will continue to operate future cargo traffic at Germany's third York JFK on Oct. 1, as part of a reduction cargo flights to Chicago O’Hare and Los largest airport. in cargo services for the second half of its Angeles but will reduce from six to five “Our company is one of seven profit fiscal year ending March 31. the number of weekly 747-400F flights to centres of Dusseldorf Airport and handles JAL plans to operate a fleet of seven LAX from Oct. 1. the major slice of the cargo throughput. 747-400Fs by the end of its fiscal year, JAL will continue to operate twice- With so many other airports within a one fewer than originally planned. It is daily passenger flights to JFK and utilise few hours drive, we have to keep on our cancelling the conversion of a 747-400 belly space to move cargo, followed by toes to maintain our traffic, which means into a freighter. By the end of November truck services from New York to Chicago, looking after our forwarders and attracting it will retire its last two 747-200Fs. It also its main US freight gateway. new customers,” he said. He added: “We are ideal for aircraft such as B767, A300, A310 and A330s, which feed cargo to the region and on Qatar Airways launches new Spain route outbound, export locally sourced high Qatar Airways Cargo has introduced a Qatar Airways Cargo’s freighter value goods.” new non-stop freighter service linking network covers eighteen destinations the airline’s operational hub of Doha with worldwide. Zaragoza in northern Spain. The service According to Qatar Airways CEO, operates every Saturday using an Airbus Akbar Al Baker, the airline’s cargo Incheon Airport A300-600 freighter. The return flight from volumes have increased, due largely to stake up for sale Zaragoza stops in Dubai, which increases the huge growth in the number of routes, Qatar Airways’ freighter services to the aircraft and increased frequency to many South Korea will put a significant stake in emirate to three times per week. destinations. state-owned Incheon International Airport up for sale, as part of a drive to reform state-run companies. Chadian cargo airline starts Al Ain route The government will sell a 49 percent stake in Incheon International Airport, Toumaï Air Tchad, the national carrier of Abu Dhabi Airports Company (ADAC), which includes a strategic tie-up with the central African republic of Chad, is the announced the airline will operate a weekly a foreign airport operator to secure latest airline to operate services to Al Ain service to Al Ain from its main home base international competitiveness, an official International Airport (AAN) in the United at N’Djamena International Airport, in statement said, without specifying a time Arab Emirates. conjunction with Cargolux. frame.
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 9 BUSINESS ACP worldwide wins Kingfisher cargo Virgin Atlantic business in both UK and Ireland markets selects Skychain
ACP Worldwide has been appointed Virgin Atlantic has selected Mercator’s GSSA for Bangalore-headquartered SkyChain IT cargo management system as Kingfisher Airlines cargo services its next generation cargo solution. in both the United Kingdom and Mercator, the Dubai-based Emirates Ireland. Group subsidiary, plans to complete ACP is now responsible for selling implementation by the end of April 2009. the carrier’s cargo services, not only The solution will be implemented in between London and Dublin and the Virgin Atlantic Cargo headquarters in southern Indian city, but also onwards Crawley, England. Duncan Alexander, to destinations across India. vice president, Mercator, said: “The team Services commenced from Steve James (left) and Rod Entwistle: Market supports at Virgin Atlantic put our team and our London in September, using an Airbus ambitious plans for further Kingfisher flights. solution through an extremely rigorous A330-200 aircraft offering up to 12 selection process.” tonnes cargo capacity per flight. The carrier already has plans to expand The British carrier becomes the fifth Onward flights will offer multiple daily its direct ex-UK services this winter with airline customer for Mercator’s SkyChain frequencies, depending on destination, the addition of Mumbai to its international solution, joining Emirates Airline, on the airline’s narrow-bodied domestic network and other destinations to South Swiss WorldCargo, Midex Airlines, and network, and include cities such as East Asia are expected to follow soon SriLankan. Hyderabad, Chennai, Goa, Cochin and after. Mercator said its centralised cargo Trivandrum. Says ACP Worldwide’s Director, Rod reservation and business management “The Indian air cargo market is Entwistle. “We have already planned an solution, offers a number of advantages over extremely buoyant and sustainable double exciting range of tariffs and service support existing systems, including compatibility digit growth is predicted for the foreseeable information and are looking forward to the with a wide host of customer systems, future,” says Kingfisher’s UK and Ireland expansion of the service portfolio later this capacity to accommodate upgrades and Cargo Manager, Stephen James. winter following a successful launch.” changes through Java architecture, and real-time access and updates, all designed to address the current needs of today’s DHL doubles Central Asia Hub capacity cargo customer. From its launch in April 2004, SkyChain DHL’s US$110 million Central Asia Hub shipments, a figure DHL expects will was built in less than two-and-a-half years (CAH) expansion has been completed five continue to grow alongside rising intra- and was implemented successfully in years ahead of schedule. regional trade. August 2006. With a total investment of US$210 Hong Kong SAR’s Transport & million, the facility, which is located at Housing secretary, Eva Cheng, said that Hong Kong International Airport, is the the government will support further SriLankan also first large-scale automated Express hub development of the express cargo industry in Asia Pacific and significantly boosts by improving the airport’s links to nearby signs up for system DHL’s operational capability in Asia, said markets, and plans to increase the runway the company. capacity gradually, reaching 58 movements SriLankan Airlines has signed up for The Central Asia Hub has doubled per hour next year and 68 movements per Mercator’s SkyChain cargo IT system. in size to 35,000 m2, and is expected to hour by 2015. Patrick Naef, Head of Mercator said: handle 40 million shipments this year. The Cheng added that runway capacity “The timing of this partnership is significant automated facility has a throughput of could be substantially increased to more – coming as it does when skyrocketing fuel 75,000 pieces per hour, 114% more than than 100 movements per hour with the prices are having a tremendous economic the pre-expansion capacity. addition of a third runway. impact on the airline industry. This According to Dan McHugh, CEO of With more than 40% market share partnership clearly demonstrates that major DHL Express Asia Pacific, the expansion and US$2.2 billion already invested in players have confidence in our IT solutions of the CAH is testament to the continued the region, DHL will boost its network to reduce costs and increase revenue.” growth of intra-Asia trade and the Asia- capability with its North Asia Hub at Mercator plans to complete Europe trade lane. Currently, more than Pudong, International Airport in Shanghai, implementation by the second quarter of 60% of express cargo processed by the which is scheduled for completion in 2009. The solution will be hosted out of Central Asia Hub is intra-Asia Pacific 2010. Mercator’s data centres in Dubai and used by authorised SriLankan cargo users out of Colombo and other outstation cargo offices Middle East cargo screen contract globally. Johann Wijesinghe, head of Worldwide American Science and Engineering, Inc., parts for multiple cargo screening systems, Cargo, SriLankan Airlines, said: “SriLankan has been awarded a multi-year $12.5 including the OmniView™ Gantry Cargo is recognised today as one of the million contract from an unidentified Inspection System, the Z® Portal™ most energetic, technologically-advanced Middle East government to provide screening system, and the Z® Backscatter and cost efficient freight operators in South service, maintenance, training, and spare Van™ (ZBV). Asia.”
10 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 BUSINESS Agility continues aggressive China CEVA chooses Hacis expansion with new acquisition
Agility has agreed to acquire Baisui United Agility’s domestic transportation Logistics (Shanghai) Co., Ltd (Baisui), capabilities both in eastern coastal China a Shanghai-based domestic logistics and inland China along the Yangtze River,” company that focuses on providing a said Wolfgang Hollermann, Agility, chief range of logistics services, including intra- executive officer, Asia Pacific. city, regional and long-haul transport and “Baisui Logistics complements our warehousing, mainly to the chemicals, growing service offering in China, both automotive, and fast moving consumer vertically in specialist sectors and by goods (FMCG) sectors. providing improved connectivity through With over 15 years of experience, the the company’s extensive domestic transport Pictured at the signing are, from left: Warren company has more than 300 employees in network. Bishop, MD Hacis; Anthony Wong, chairman 15 locations throughout China, including “We will continue to grow organically Hacis; Chris Pollard, MD South China, Shanghai, Shenzhen, Tianjin, Wuhan, and through acquisition in order to provide CEVA; and Michael Yuen, country manager Nanjing and Chongqing, and manages our customers with an integrated logistics freight management South China, CEVA. eight logistics centres with more than solution throughout China,” said James 130,000 sq. m of warehouse floor space. Gagne, chief executive officer, Greater Hong Kong Air Cargo Industry Services In addition the company has its own China Area, Agility. Limited (Hacis) confirmed CEVA Logistics fleet of trucks and works with over 75 “We are very excited to be joining (Hong Kong) Limited is a new customer trucking companies on a regular basis for Agility at this stage of its expansion. We for its airport direct export service. its regional distribution needs. see Baisui’s provision of value-added The service includes physical cargo “The company has an excellent services and road transportation as an handling, warehousing of export cargo reputation in providing a range of specialist excellent fit to Agility’s supply chain and and tendering of export cargo to cargo services in the chemicals, automotive, and forwarding capabilities, commented Yan terminals. FMCG sectors, which are growing strongly Shiping, general manager & president of * CEVA Group Plc has reported revenue in China. The company also strengthens the board, Baisui. of €1.7bn for the quarter, helped by a strong performance in its Contract Logistics and Freight Forwarding business. IBS Software Services joins Cargo 2000
IBS Software Services of India Qantas Airways. First airport deal has joined Cargo 2000, the Akshay Shrivastava, industry quality management global head, Cargo Line for Cargo 2000 initiative. of Business, IBS Software Over the past 11 years IBS Services, said: “Cargo 2000 has grown into a multinational is designed to improve organisation with 2,000 staff service levels while reducing based at 14 locations around the time spent and resources the world, as well as seven burnt to handle irregularities software development centres in the management of the in Atlanta, Boston, Bangalore, cargo lifecycle. Cochin, London, Trivandrum, Akshay Shrivastava: IBS’ suite of new- and Washington DC. Imperative to join the generation cargo management The company provides industry initiative. solutions are being used by software solutions for a some of the best air cargo From left: Dr. Wilhelm Bender, Fraport AG, number of airline customers, including carriers in the world who are very quality Executive Board Chairman; Lothar Möhle, Emirates, Cathay Pacific, South African conscious, making it imperative for us to Cargo 2000 Managing Director; Karl-Heinz Airways, Air New Zealand, Oman Air, join Cargo 2000 and to underscore our Köpfle, Lufthansa Cargo AG, Executive Board Iberia, KLM, Kingfisher Airlines, China commitment to provide the best to the Member Operations; Peter Schmitz, Fraport Southern Airlines, Copa Airlines and industry. “ AG, Fraport Ground Services division, Senior Executive Vice President. Descartes delivers more channel options Fraport AG is the first airport operator to join the IATA Cargo 2000 quality system. Descartes Systems Group, a global on- Exchange is a natural progression in our “This initiative opens up possibilities demand software-as-a-service (SaaS) successful relationship and complements for Fraport as an airport operator and logistics solutions provider, announced our use of existing Descartes services,” said ground-handling provider to apply its that its long-time customer, SAS Cargo, Nils Pries Knudsen, vice president, Global extensive know-how actively and to help has joined Descartes’ GF-X Exchange. Sales at SAS Cargo. “We are responding to define standards within the framework “Descartes has been our preferred the interest from freight forwarders in being of the Cargo 2000 quality management provider for air messaging for almost 20 able to book cargo shipments electronically system,” said Fraport executive board years so joining Descartes’ Global GF-X through this channel as well.” chairman Dr. Wilhelm Bender.
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 11 BUSINESS German agent for RJ Wal-Mart sets up Asia regional Royal Jordanian (RJ) has selected headquarters in Hong Kong Cargoworks Europe to be its general sales and services agent (GSSA) in Germany, as America, the new Wal-Mart office part of the airline’s cargo sales outsourcing in Hong Kong will oversee the strategy. company’s operations in mainland RJ President and CEO, Samer Majali, China, India and Japan, as well as said: “Cargoworks is a strong partner to identify new business opportunities RJ, with a commitment to excellence in for the company throughout Asia.” service. They are also using Cargospot, the Mike Rowse, Director-General of same IT solution that RJ is installing.” Investment Promotion at InvestHK commented: “The establishment of Wal-Mart’s regional headquarters here represents a powerful vote New CEVA division of confidence in Hong Kong as CEVA Logistics has launched a new Director-General of Investment Promotion at the preferred location for global InvestHK, Mike Rowse (middle) and Wal-Mart division – Vehicle Logistics – in Thailand, companies to manage business in Asia’s management team. (From left) vice president, to complement its Contract Logistics and China and elsewhere in Asia.” People, Brian Walker; vice president Real Estate & Some 3,900 overseas and Freight Management operations in the Development, Brent Seay; senior director, Strategy, region. CEVA Vehicle Logistics (Thailand) mainland companies operate Tony Taylor; president and chief executive officer, regional headquarters or regional is aimed at car dealers, automotive Vicente Trius; senior vice president, Development, manufacturers, auction houses and finance offices in Hong Kong. Peter Sharp; and CFO, senior vice president, Finance Wal-Mart Asia’s vice president, companies. The new division can move up and Strategy, Andreas Schulmeyer. to 880 cars at one time, and has a storage People, Brian Walker, said: “With an capacity of up to 20,000 cars. abundant pool of talent and professionals in Wal-Mart Stores, Inc. has set up its new the city, Wal-Mart is able to recruit the right Asia regional headquarters in Hong Kong. local staff for our regional headquarters. President and chief executive officer In addition, Hong Kong is equipped with Cool deal concluded for Wal-Mart Asia, Vicente Trius, said: excellent transportation, communications “Just as the Wal-Mart America’s regional and technology infrastructure, which are Panalpina has signed a global Master office in Miami oversees the company’s essential tools for our regional management Lease Agreement with Envirotainer operations in Canada, Central and South team.” to provide temperature-controlled air cargo containers for its new cold chain management solutions for the healthcare Light touch for gas and fuel challenges industry. Panalpina has also agreed to participate Nordisk Aviation Products is highlighting Representatives of one major carrier in Envirotainer’s quality and training how lighter-weight unit load devices calculated that it can reduce its TCO by programme – the Qualified Envirotainer (ULDs) can support airline carriers $2.8 million by using the Ultralite alone. Provider (QEP) programme. The two actively engaged in weight-reduction Additionally, a variety of organisations companies have worked together for more programmes to reduce greenhouse gases stated that every kilogram of fuel saved than six years in various markets around and fuel consumption. reduces CO2 emissions by 3.2 kg. the world, but this is the first time they Nordisk provides two of the lightest Nordisk estimates that a B747-400 have agreed to a global cooperation. cargo containers on the market – the using the WeightSaver and Ultralite Nordisk WeightSaver™ and the Nordisk containers would be able to save its owner Ultralite®. Both of these containers can more than $84,000 per year on average. Hanjin hub leader help reduce both total cost of ownership This calculation is based on using 14 (TCO) and greenhouse gases. At the same Nordisk’s lower-weight containers, versus Korean global logistics group, Hanjin, time, they can contribute to airlines’ weight- those of standard weight, for an average the Korean Air parent company, has reduction programmes, as illustrated by 250 flights per year (each flight of eight announced further details of a project it is two examples, said the company. hours or more). leading to create a Central Asian logistics hub in Uzbekistan. Hanjin group chairman, Yang Ho Cho, Pharma survey reveals cost concerns along with Uzbekistan first deputy prime minister, Rustam Azimov, and Uzbekistan A UPS survey of top pharmaceutical, According to the survey, 25% Airways director general and head of medical and biotech supply chain decision identified managing supply chain costs as the Uzbekistan Aviation Administration, makers put cost management top of their the issue they had been most successful Valeriy Tyan, attended a ceremony at Navoi list of concerns. The survey, entitled ‘Pain at addressing. Among the companies International Airport to announce a new in the (Supply) Chain’ reported that 60% with more than $1bn revenue, 74% of Korean Air cargo flight operation to the of the companies said they were “very respondents estimated that costs related Uzbekistan airport and to sign the ‘Navoi concerned” or “extremely concerned” to product expirations, returns and recalls International Airport Joint Development about the potential impact of supply chain had cost them hundreds of thousands to Project’ contract. costs on their business. millions of dollars every year.
12 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 BUSINESS Current turmoil is a two edged sword for Kintetsu inks a cargo security screening specialist deal with OAG
Andre Johnson, president of FreightScan, money,” Johnson said. finds the current turmoil in the air cargo Much of the technology presented to industry both a blessing and a curse. the authorities for cargo security is based On the one hand, it takes more time on luggage screening systems or otherwise to identify prospects. “A lot of freighters designed by good engineers who have have been scrapped. There’s no point in little insight into the needs and processes calling people who are going to cancel a of the air cargo industry, he added. lot of flights tomorrow,” he said. In the long run he intends to market On the other hand, he has found more the dimming system and the screening interest in the industry. “We’re getting technology as a package, but for now he is more attention because people see they concentrating solely on the FS100 in his can’t go on with the status marketing efforts. Without quo,” Johnson commented. official approval, there is C a l i f o r n i a - b a s e d no point in marketing the Pictured from left to right: John H.Deibert FreightScan is trying to drum CargoVizion technology, Manager Business Development Europe & up interest in its FS100, an he said. Tests with the Africa, Kintetsu World Express (EA) BV, Bart automatic dimming system. FS100 have been run Jan Haasbeek, Global Key Accounts Manager, Using Defined Imaging for a number of carriers, OAG Cargo Solutions, Thomas Weppelmann, and Multiple Measurement including Martinair, Director Business Development EA Region, Technology, the set-up can United Airlines and Kintetsu World Express (EA) BV and Kurt calculate the dimensions of DHL, yielding promising Nobbe, Manager Business Development a single shipment in four results and significant Europe & Africa, Kintetsu World Express seconds – much faster than cost savings, Johnson (EA) BV. a manual measuring process, claimed. One carrier and according to the developer. an integrator are close Kintetsu World Express (KWE) has signed Over and beyond the to signing up for the a contract to use OAG Cargo’s Airfreight savings associated with a Andre Johnson: We are not technology, he added. Rates (AFRA) application to distribute and faster dimming process, the asking for federal funds. Since this summer, search for real-time worldwide cargo rates system has ramifications for FreightScan has moved at its offices in 10 countries in Europe and cargo security. The data captured about aggressively into the Asian market, South Africa. a shipment build up a profile that can be forming strategic partnerships with This latest development comes as the used to monitor the integrity of the cargo regional players to install, service and total number of airfreight rates published as it moves through the supply chain, support the technology. by AFRA exceeds eight million for the first Johnson said. The FS100 captures a FreightScan completed a series of time. In total, 650 airlines have published digital and laser image for the freight and system evaluations, including with a tariffs on the site (www.oagcargo.com). incorporates that visual record with the major US air carrier in Japan and large- This information is accessed regularly air waybill. The data from the scanning scale handlers in Bangkok and Shenzhen, by over 10,400 users from 1,265 offices process form a “shipment DNA”, which with additional evaluations for air carriers worldwide. can be checked along the supply chain for in Singapore and Japan scheduled. Thomas Weppelmann, director business evidence of tampering. FreightScan has signed agreements development EA Region, Kintetsu World In a second development, FreightScan with Cargo Engineering Japan to dedicate Express, said: “Expanding our usage of has come up with an imaging system called a local business development team to AFRA will enable us to build excellent ‘CargoVizion’ that scans full pallets with working with customers in Japan. In working relationships within our KWE radio waves, which create a 3D image of addition, a regional manager based in group and our customers as a global the contents of all boxes on the skid. The Singapore will work throughout the rest logistics partner”. 3D image shows in which box a security of Asia, with field application services risk is located, so if an airline comes being provided to the Asia-Pacific market across a suspicious shipment, it knows by Certosa Express International, a Hong Agility DGS wins right away where exactly to conduct a Kong-based logistics support company. closer inspection. Certosa will work with FreightScan to Corps contract Johnson has been trying to obtain the service and install FS100 dimensioning stamp of approval for this product from systems, providing 24/7 swap replacement Agility Defense & Government Services the US Transportation Security Agency services throughout China and Asia through (Agility DGS) subsidiary company, Taos to get it on the TSA’s list of certified a network of 11 stocking locations. Industries, has won a contract to store, technology for cargo screening, but Having initially dealt with a market distribute and maintain equipment for the navigating through the bureaucracy has where rates are typically below one dollar, US Marine Corps at 15 bases in the US and taken six months already. Johnson is optimistic about the Asian five others around the world. “They’re looking at all these different markets, where transpacific rates are Agility DGS, headquartered in things, so I haven’t got them to tell me significantly higher. “The dollar amount is Alexandria, Virginia, said the one-year yet what I need to do to get this certified. so high that it only takes one air waybill a contract included six one-year options and We’re not asking the government for day to pay for the system,” he said. was worth up to $140m over seven years. – Ian Yau
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 13 NEWS AMB enters Beijing logistics property SEKO unit opens market following building acquisitions Hong Kong office
US-based global developer and industrial in a preferred location for third-party SEKO, a global provider of supply chain real estate owner, AMB Property distributors,” commented Guy Jaquier, solutions, including transportation, Corporation, has entered the China market AMB’s president, Europe and Asia. logistics and IT solutions, recently with the acquisition of three buildings, “Demand for space in this strategic announced that its Hong Kong operation, covering around 28,400 sq.m. in the Beijing airport submarket has exceeded our SEKO Hong Kong, has joined forces with Airport Logistics Park, adjacent to Beijing expectations, as evidenced by leases the UK arm of SEKO, SEKO Synergy Ltd, Capital International Airport (PEK). totalling 8,300 sq.m. to two logistics to form a new Hong Kong-based company “China’s continued increase in both subsidiaries of Fortune Global 500 dedicated to increasing its market share in production levels and demand for consumer companies, signed before we closed on the the EMEA region. goods creates sustained requirements for acquisition. The new company, named SEKO logistics space: industrial output was up These leases are in addition to an Synergy Greater China (SSGC) Ltd, is 16% over last year ending June and retail existing customer occupying 11,600 sq.m. located in the same building as SEKO sales were up 23% over the same period,” of space.” Hong Kong and is exclusively dedicated said Hamid Moghadam, AMB’s chairman In addition to Beijing Capital to handling all supply chain activity and and CEO. International Airport, AMB owns and pricing to and from China (including Hong “With rapid access to transportation operates air cargo facilities in Asia at Kong) and Europe, the Middle East and networks and proximity to industrial Tokyo’s Narita International Airport, Africa. parks and the city centre, AMB Beijing Singapore’s Changi International Airport, Ian Richardson has been appointed Capital Airport Distribution Center 1 is and Seoul’s Incheon International Airport. managing director of SEKO Synergy Greater China Ltd. WWPC team breaks cargo lift record again 40 tonne similar piece of equipment Evergreen gets from Germany to Japan. The historic load on a Volga- China approval Dnepr Cargo Airlines Ilyushin The US Department of Transportation 76TD last year was exceeded in the has tentatively granted Oregon-based latest operation on a similar aircraft Evergreen International Airlines authority carried out with WWPC members, to operate six weekly roundtrip cargo flights LS International Cargo Gmbh in between New York JFK and Shanghai. Germany and Allfort Inc. in Japan. Flights would make stops at Chicago The 13-metre long metallic roll O’Hare, Dallas/Fort Worth and Columbus. was loaded at Frankfurt-Hahn Evergreen is scheduled to take delivery airport and offloaded two days later of three 747-400BCFs next year. FedEx, in Osaka International Airport, with Northwest Airlines, Polar Air Cargo and onward shipment to a paper plant The 40 tonne consignment eclipses an earlier record. UPS are the four US carriers that currently in Tokushima, on the Island of have US-China freighter rights. Shikoku. WWPC/Finland, Procargo Ltd, has WWPC, the Worldwide Project followed up its record single cargo load Consortium Ltd, is the only existing global operation, to transport a 39 tonne metallic franchise-network for Project Cargo Champion choice roll for a paper machine from Finland to Specialists with representation in more the USA, with another record transport of a than 70 countries. for Cathay
Cathay Pacific Airways has selected Cargo crime threatens Dutch role CHAMP Cargosystems’ ULD Manager to manage its inventory of Unit Load Devices Government officials, manufacturers, law Netherlands unless the trend is reversed. (ULDs) distributed across 118 destinations enforcement agencies and transport and David Reid, Acting Chairman of TAPA in 37 countries. Cathay Pacific and its logistics providers have met in Amsterdam EMEA, said: “We urgently need to debate sister airline, Dragonair, along with the to develop a strategy to fight rising cargo the increasingly costly and violent impact joint venture all-cargo carrier, Air Hong crime in The Netherlands that currently of cargo crime through The Netherlands.” Kong, will be using the new-generation results in annual losses in excess of €330 With annual supply chain losses web-based CHAMP ULD Manager. million, and threaten its position as a of €8.5 billion across Europe, the Y.H. Huen, Cargo Service Manager distribution centre for high value cargo. one-day conference was aimed at – ULD, Cathay Pacific Airways, said: The Transported Asset Protection identifying practical ways to safeguard “After considering multiple options, we Association (TAPA), organisers of the The Netherlands’ position as a primary have decided to choose CHAMP’s ULD event, said the manufacturers of high distribution centre for high value cargo. Manager to replace our in-house legacy value, high risk products may be forced TAPA has initiated similar action in system to further enhance operating and to alter their supply chains to avoid The Germany, South Africa and the UK. cost efficiency.”
14 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 NEWS Cool cover up for Emirates SkyCargo’s Blue Dart sees 20% temperature sensitive shipments profit increase
Emirates SkyCargo has teamed up Indian air express and integrated with a leading US research institute transportation, distribution and logistics to develop a new product for the company, Blue Dart Express Limited, part shipment of temperature sensitive of the DHL group, has declared its financial cargo. results for the quarter and half year ended The low-cost, light weight, June 30, 2008. breathable and reusable protective Profit after tax for the latest quarter was ‘White Cover’ is designed to shield Rs 206.69m, an increase of just 20% over these shipments from heat during the corresponding period of the previous door to door transport. year. Emirates SkyCargo, together Income from operations was up 31% with perishables and pharmaceutical to Rs 2,456m. Profit after tax for the first shippers trading throughout its half was up 53% to Rs 514m, with income worldwide network, conducted a Weighing no more than 3kg, Emirates SkyCargo’s from operations 31% ahead at Rs 4,863m. pilot programme during the northern new low-cost White Cover has proved popular with Mumbai-headquartered Blue Dart hemisphere’s summer months. shippers on the pilot programme. said reinforcement of its ground express “This is the first time this unique product ‘Dart Surfaceline’ last year had type of protection, which completely ideal for ‘living’ food and flower products, now expanded its reach to over 20,955 encloses the shipment, has been used for while its low cost has made it popular with locations across India. the air freight of temperature sensitive shippers of pharmaceuticals, especially Blue Dart currently operates six goods,” said Therese Puetz, manager room temperature pharmaceuticals. freighter aircraft (three B737Fs and three Cargo Business Development & Projects. As well as being environmentally B757Fs) across 62 air routes with a payload One of the ‘White Cover’s distinct friendly – the cover is 100 per cent recyclable capacity of 300 tonnes per night. properties is its breathability – it resists – its application is straightforward, taking air and water penetration while enabling two people a maximum of eight minutes trapped moisture to escape – making it for application on a pallet. Boeing bullish on fuel alternatives
New index ranks Hong Kong and Boeing remains bullish on the scientific Singapore best economies for trade progress of biofuel development, with director-Environmental Performance, Billy Two Asian economies – Hong Kong and business environment. Glover, commenting that the manufacturer Singapore – occupy the top two positions Hong Kong and Singapore were is confident commercially viable biofuel in the World Economic Forum’s Enabling followed by the Nordic countries, Sweden will be available to partially power aircraft Trade Index ranking, published as part of and Norway. Canada, Denmark, Finland, by 2013. its Global Enabling Trade Report 2008. Germany, Switzerland and New Zealand Speaking in Seattle at an Air New According to the report, the results bear complete the top 10 list. Zealand (ANZ) environmental briefing, witness to these two countries’ openness to The report’s authors commented that Glover noted that some algae-based fuels international trade and investment as part Hong Kong’s success has been based on being studied are showing “better potential of their successful economic development the country’s very open market, mirroring performance qualities than current jet fuel”, strategy. a pro-trade attitude and a high dependence and he dubbed algae the "Holy Grail" of Covering 118 economies worldwide, on exports and imports, as well as its alternative fuel offerings. the report aims to present a cross- secure and open business environment. Later this year ANZ will fly a 747 country analysis of the large number of Singapore also boasts a highly efficient partially powered by jatropha oil, which measures facilitating trade. The index and transparent border administration, emits one-third the CO2 of current jet fuel. covers four key areas: market access, an open business environment, and well Jatropha has an oil yield of around 250 gal. border administration, transport and developed transport and communications per acre, and is the most advanced of the communications infrastructure and the infrastructure. biofuels currently being explored for use by the airline industry. AOT invests in Bangkok airport expansion NACIL plan starts Airports of Thailand (AOT) will invest southeast Asian hub, the airport operator US$2.3 billion to develop the second phase said in a statement. The state-owned National Aviation of Bangkok’s Suvarnabhumi Airport from The plan is subject to approval from, Company of India (NACIL), the 2009 – 2014. among others, the Transport Ministry and organisation formed after the merger of the The investment, including tax and the cabinet. national flag carrier Air India and Indian interest charges, would help increase the AOT, 70 percent owned by the Finance Airlines, is converting nine of its passenger capacity of the airport to meet rising air Ministry, operates six airports throughout aircraft, four Airbus A310s and five Boeing traffic volume and maintain Thailand as a the country. 737-200s, into freight carriers.
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 15 NEWS Woodland launches TNT boosts regional operations in Vietnam publishing product and Singapore as part of five-year plan
Woodland International Transport Co has TNT Express has launched a new operations The new Singapore country depot and launched a new business – Woodland Media centre in Vietnam and a country depot in customer contact centre is located within Logistics – to serve the distribution needs Singapore, as part of the company’s 100 the company’s existing 180,000 sq.ft. of the international magazine industry. million Euro five-year regional investment complex on Changi South Lane. Woodland offers complete sorting and programme. TNT said the expansion of the Singapore onward distribution services, as well as The International and Domestic country depot and customer contact centre finishing, including re-packaging products Operations Centre, North in Hanoi is followed the launch of the company’s and removing any promotional items, designed to handle heavy freight, and is freight services for time-sensitive heavy when necessary, before sending on to part of TNT’s strategy to leverage the shipments. Both operations occupy an the country of destination. The company soaring demand for freight express services area four times the size of the previous recently opened a facility in Colchester between Vietnam, the rest of Southeast premises. in the UK, dedicated to Woodland Media Asia, China and Europe. TNT said the Singapore country depot Logistics. Onno Boots, regional managing would serve as a model for the rest of its According to Paul Almeroth, director, TNT Southeast Asia, said, operations in the Asia Pacific region. commercial director of Woodland Media “Vietnam is strategically located as the It pointed out that the integrated Logistics, providing transport services link between China and Southeast Asia on facility at Changi South Lane, which was for the magazine industry is a highly our Asia Road Network. established in 2007 to meet increased specialised business, and claims that More than 40 per cent of volumes to business growth in Singapore, housed Woodland already controls a significant and from TNT Vietnam will pass through TNT’s life sciences express hub, “the share of the market for magazine exports the new centre while growth is expected to company’s largest dedicated life sciences to the US. be in the high double digit range for the facility in the world”, and other regional Woodland has been unanimously next five years.” distribution centre operations. accepted as an associate member of Distripress, the Swiss-based association that seeks to promote the international distribution of printed materials. Chapman Freeborn charter for Libyan petrochemical plant blaze challenge storage tank at the Ras Lanuf Swiss Post acquires plant. distribution house Chapman Freeborn’s UK office co-ordinated six Swiss Post International (SPI), the flights to Libya, using DC10- international group unit of Swiss Post, has 30F aircraft to carry around taken over Global Press Distribution GmbH 45,000 kg of retardant per (GPD) in Germany for an undisclosed rotation. Four flights left sum. Doncaster Sheffield in the UK SPI said the acquisition, which took for Benghazi, and another two effect retroactively to January 1 this year, flights were routed from Paris consolidated its position in the German Vatry and Barcelona. export press market, the largest in Europe. Chapman Freeborn GPD provides services for the DC10-30F aircraft loaded for the Libyan air charter. representatives were at the international and national dispatch of airports to help oversee the magazines. Chapman Freeborn Airchartering co- x-ray, loading and dispatch of the cargo Its customers in Germany include ordinated the movement of more than 250 destined for the Libyan refining complex. publishers, printers, letter shops and tons of fire fighting foam from Europe to Chapman Freeborn’s cargo department other service providers in the publishing Benghazi, Libya, to help tackle a blaze at a specialises in moving urgent air cargo, industry. petrochemical and refining complex. heavy and outsize pieces, high value With a workforce of 31, GPD generated Oil Spill Response and East Asia commodities, dangerous goods and sales of 4.9m Euros in 2007. Response chartered the urgent flights to around-the-clock aircraft on the ground Swiss Post said it already generated help deal with a fire in a 450,000 barrel oil (AOG) parts. 20% of its sales abroad and in its cross- border business. SPI is a wholly-owned subsidiary of Aramex opens Bahrain logistics centre Swiss Post and currently employs 1,200 Aramex said the new facility, located people in 11 European countries, five Middle East-based forwarder and logistics in the Bahrain International Airport major cities in Asia and in the US. provider, Aramex, has opened a 4,000 Free Zone, combines sea, air and land SPI claims it is now number five in the sq.m. logistics centre in Bahrain; designed freight capabilities for a diverse range of cross-border letters market after Deutsche to support the company’s expanding supply industries, including telecommunications, Post, United States Postal Service, the chain solutions network across the GCC electronics and textiles. UK’s Royal Mail and France’s La Poste. (Gulf Co-operation Council) region.
16 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 NEWS CX breaks ground on new cargo terminal Perishable centre for Hyderabad
GMR Hyderabad International Airport Limited (GHIAL) in south India plans to set up a world-class centre for perishable cargo (CPC) at the Rajiv Gandhi International Airport (RGIA) at Hyderabad. The centre will be designed to handle 13,000 tonnes per annum of perishable cargo under phase-I (up to 2011) and the capacity will be raised to 25,000 tonnes per year under phase-II (2013-14). The phase-I of the project will have an investment of INR 400 million, including a subsidy of INR 200 million from the Agricultural and Processed Food Products Export Development Authority (Apeda). Andhra Pradesh annually produces about 10.5 million tonnes of fruits and vegetables, with an export potential of 5,000 tonnes. The CPC will also serve the At the groundbreaking ceremony for the new Cathay Pacific Cargo Terminal are (from left) Rupert Hogg, Cathay Pacific Director Cargo, Stanley Hui, Chief Executive of Airport Authority Hong pharmaceutical and biological sectors, Kong, John Slosar, Cathay Pacific Chief Operating Officer, Eva Cheng, Secretary for Transport with import and export volume of about and Housing, Tony Tyler, Cathay Pacific Chief Executive, Marvin Cheung, Chairman of Airport 3,000 tonnes per year in these sectors. Authority Hong Kong, Y K Leung, Deputy Director-General of Civil Aviation and Ron Mathison, Cathay Pacific Director & General Manager Cargo. Cathay Pacific Airways marked the agreement. The airline will invest around Progress for pioneer groundbreaking for its new home hub US$615m in the facility, which will occupy cargo terminal with an official ceremony at a site of around 10 hectares in the airport’s loading system Hong Kong International Airport (HKIA). cargo area. The Hong Kong airport authority “The new terminal will be completed awarded the airline’s wholly-owned by the second half of 2011 with a designed subsidiary, Cathay Pacific Services annual air cargo throughput capacity of Ltd (CPSL), a franchise to invest in, 2.6m tonnes,” said the airline. design, construct and operate the new air The terminal will be a common-use cargo terminal at HKIA under a 20-year facility open to all airline customers. Former BA World Cargo manager to be jailed in US for rate-fixing conspiracy
A former senior manager with cooperate with the DoJ’s ongoing The new main deck loading system reduces British Airways World Cargo investigation. manpower requirements. is set to become the next airline The DoJ said Packer, a British executive to go to jail in the US citizen, was the first foreign Telair International GmbH has completed for participating in a conspiracy national and third individual its FAA STC and JCAB STC System to fix air cargo shipment rates. charged as part of the Antitrust Conformity Inspection for the world’s first The US Department of Justice Division’s ongoing investigation Main Deck Powered Cargo Loading System (DoJ) said according to charges into price fixing in the air installation of the B767-300BCF special filed in the US District Court Keith Packer. transportation industry. freighter. All Nippon Airways (ANA), the in the District of Columbia, In July 2008, Bruce McCaffrey, customer for this conversion, has ordered Keith Packer, former commercial general the former highest-ranking executive seven firm systems from Telair. manager for BA World Cargo, and his co- employed in the US by Australian airline The loading system enables a one-man conspirators had engaged in a conspiracy to Qantas, had pleaded guilty and been operation for A-Code, B-Code or M-Code fix the air cargo rates charged to customers sentenced to serve six months in jail and ULD’s and a two-man operation for its for international air shipments, in violation pay a $20,000 criminal fine for fixing cargo industry wide novelty R-Code (16 ft.) and of the Sherman Act. rates. Then in August 2008, Timothy Pfeil, G-Code (20 ft.) pallets. Besides standard It said that under a plea agreement, the former highest-ranking cargo executive commercial pallets and containers, the which was subject to court approval, in the US for Scandinavian carrier SAS, Telair system also is capable of loading Packer had agreed to serve eight months had pleaded guilty to conspiring to fix the 463L/HCU-6E military pallets throughout in jail, pay a $20,000 criminal fine, and rates charged to customers. the main deck.
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 17 PEOPLE Hughes returns to Hong Kong New VP of Sales and Marketing
Greg Hughes has been appointed for CHAMP Cargosystems general manager South West Pacific for Luxembourg-based CHAMP Cargosystems Cathay Pacific Airways, replacing Ivan has appointed James Fernandez as vice Chu, who will leave Sydney in August president, sales and marketing. He is to return to Hong Kong to take up the responsible for worldwide sales and role of director – service delivery, for the marketing of CHAMP Cargosystems’ carrier. portfolio of new generation cargo systems Hughes, currently general manager and leading-edge ERP applications and purchasing and aircraft trading, will also services. be appointed as director of John Swire A British national, Fernandez joins & Sons Pty Ltd, parent company of the CHAMP from SITA, the aviation IT Australian arm of Swire Group. specialists, where he managed the dual roles of global head of Hughes joined the Swire group in 1987. Initially, he worked cargo and logistics and general manager of SITA’s Chinese joint in the shipping division and was transferred to Cathay Pacific in venture headquartered in Beijing. 1990. He has previously worked with the airline in Japan, Korea He has a successful track record in consulting and systems and Indonesia in commercial and sales related positions as well integration with organisations including LogicaCMG and BT as in Hong Kong in airport operations, business improvement Syntegra (now BT Global Services), working in a variety of and marketing. roles and vertical markets around the world.
Homayoun to head up marketing ABC boosts EMEA management at Dubai Airports AirBridgeCargo Airlines (ABC), the scheduled cargo airline Anita Mehra Homayoun has been named of Volga-Dnepr Group, has appointed Ludwig Hamburger vice president Marketing & Corporate as Regional Director for Europe, the Middle East and Africa Communications, Dubai Airports. (EMEA). Homayoun graduated from the American Hamburger has more than 25 years of experience in the University of Beirut with a BA in Middle airline cargo industry, and prior to joining ABC was Regional Eastern History in 1975 and in 1977 received a Manager Europe for Air New Zealand. master’s degree in Education from Bank Street College of Education, New York. She started her career in Iran with Time-Life Books in 1978. In 1983 she moved to Dubai and started her career in an TNT’s strategic move advertising agency, and handled Dubai Duty Free as a major account. In 1986 she was invited by the Dubai Duty Free team to TNT has appointed Mariken set up their marketing division. Kruijff as director of strategy She headed the Dubai Duty Free Marketing & Media implementation. She will focus Relations department for 10 years. on translating TNT’s identified In 1996 she set up the Marketing & Corporate Communications growth drivers into plans that Division for the Department of Civil Aviation in Dubai, the will increase volumes and fuel governing body that owns Dubai International Airport and the TNT’s growth in a sustainable Cargo Village. way over the next five years.
Swissport names new UK CEO DHL appoints a new SVP DHL has appointed Richard Owens Swissport International, has named as senior vice president of its Global Mark Faulkner as CEO of its British Customer Solutions (GCS) organisation ground handling business, Swissport/ in the Asia Pacific region. Based in Groundstar UK. Singapore, Owens reports to Hans Hickler, During the tenure of previous CEO, who was appointed chief executive officer Tina Barbour, Swissport/Groundstar of that unit last month. UK has been particularly successful in Owens’ 25 years’ of experience in developing strong relationships with the logistics industry began with Jardine several leading UK carriers, including Air Cargo. He has held a number of those in the rapidly growing low-cost leadership positions in the Asia Pacific sector. region, including his most recent position as senior vice president Mark Faulkner has previously served for DHL Global Forwarding, Asia Pacific. Prior to that he was in a number of executive capacities including several years as head of integration for the Logistics division in Asia Pacific, and director of business development at Ferrovial subsidiary Amey before that he served as commercial director in Asia Pacific for UK, where he played a key role in turning the company around. the former Exel organisation.
18 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 PEOPLE Boisen leaves Continental Paul Lee named as Asian Continental Airlines’ well-respected Aerospace Vice President vice president cargo, Jack Boisen, has announced his retirement from the Paul Lee has been appointed Reed Exhibitions China’s Vice airline. President Asian Aerospace. He has had close links with the “Jack’s been a real asset for the cargo company’s flagship aerospace industry event since joining the divisions of passenger airlines and we company in 2002. will all miss him,” said Steve Alterman, president of the Air Cargo Carriers Association. “Jack’s tireless efforts have led us Emirates SkyCargo welcomes through some very trying times recently experienced in this industry,” said Brandon new cargo Vice President Fried, executive director of the Air Forwarders Association. “His knowledge, understanding and ability to see the security issue Abbas A. Haji has joined the Emirates clearly have helped the industry as a whole.” SkyCargo team in Dubai as vice president Cargo – Commercial Development, reporting directly to Ram Peter Lam joins Trans Global Menen, divisional senior vice president Cargo. Hong Kong-based regional logistics In his new role Abbas is responsible company, Trans Global Logistics (TGL), has for driving the development of Emirates named Peter Lam corporate director of air SkyCargo’s “Priority” portfolio, freight. Lam joins Trans Global from Virgin including Courier, Express and Mail. Atlantic Cargo, where he was regional sales The three Priority products experienced manager for Hong Kong and China. an average of 30 per cent growth in the 2007-08 financial year. Lam brings more than 24 years of air Abbas joined the Emirates Group in 1977, working for Dnata freight sales and management experience to Cargo. Over the last 30 years, he has held a variety of management TGL. He has held senior positions with Star positions within the group including at Dnata Airport Services, Airfreight and the Star Group of Companies, and also with BAX the Dnata/Safiran project in Tehran, Dnata ground handling Global. Doha, Gerry’s Dnata in Karachi, Emirates Manager Iran and “Air freight is one of our core competencies and we are very Area Manager Bahrain. pleased to name Peter Lam to head our global air freight product line,” says Donald Woo, CEO of Trans Global Logistics. “Peter will drive, develop and market our air freight services across our entire global network. He will be responsible for sales, operations Tubbesing resigns from CNS and product development related to all corporate accounts.” Cargo Network Services Corp (CNS), an IATA company based in the US, has announced that Singh joins Qatar Airways Cargo Jens Tubbesing, president of CNS, has tendered his resignation in order to devote time to family Vikram Singh has joined the Cargo Department matters. Tubbesing has held the position of of Qatar Airways as vice president Cargo Sales. president since 2006, when he took over from Singh has 15 years of airline experience in Anthony Calabrese. various roles in the Middle East, Europe and CNS said that a decision on a successor would Indian Subcontinent, a significant amount of this be taken this fall and that in the interim, Aleks time having been spent at KLM. Popovich, global head of cargo of IATA, has been appointed acting president of CNS. Schiphol Airport names new CEO Amsterdam airport operator Schiphol Group has named a new DHL Express names EEMEA CEO chief executive, Jos Nijhuis, with effect from January 1, 2009, replacing its current head, Gerlach Cerfontaine, who will retire. DHL Express has appointed John Pearson as CEO for its EEMEA (Eastern Europe, Middle East and Africa) area. As the largest region in the DHL Express network, EEMEA Strodel joins AirBridge comprises 86 countries, 14 time zones, and employs over 10,000 people, serving customers in over 850 languages,” said a Austria-born Robert Strodel has departed fledgling company statement. Indian cargo carrier Flyington Freighters and Pearson, who has over 20 years experience within DHL joined Moscow-based AirBridge Cargo Airlines Express, was previously located at that company’s global (ABC) where he is expected to take on a top office where he held the position of executive vice president management position. Strodel could replace the commercial. His career with the company began in the Middle still vacant position of managing director, since East and comprises a number of functions in the commercial, Stan Wraight's departure. sales, and marketing areas.
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 19 INTERVIEW New partnership between developer and forwarder paves the way for airport development projects Parchim Airport in Germany will be the scene for a pioneer joint venture development project for an Australian industrial property developer and the airport owner, a very forward-looking forwarding company from China.
Goodman European Logistics and feasible solutions for improvement of their forwarder LinkGlobal have teamed up domestic water supply and the Germans in a unique partnership that will develop don’t lose their technological advantage logistics infrastructure at airports and as the physical production of technology ports worldwide, starting with a showcase remains in their own country. project at the northern German airport. Knan cites several advantages for Goodman International will invest selecting Parchim. more than 100 million euros in the He said: “The airport is operated 24 logistics infrastructure of Parchim Airport, hours as there is no night flight curfew as part of a worldwide collaboration with – a rare situation in Germany’s airport LinkGlobal, which operates cargo flights landscape. Secondly there is plenty of from China to Parchim and beyond. available industrial land within the airport Werner Knan, managing director perimeter and adjacent to the facility. It is Germany of Goodman European Logistics located right in between Germany’s largest said: “This traffic is part of the deal we cities, Hamburg and Berlin, and there have mutually agreed, and it will be is good access via the nearby Autobahn accelerated in the coming months. We system. But the most important advantage believe this will be a prosperous business for producers and manufacturers will be the as LinkGlobal is not only generating cargo bonded area at the site. Foreign investors volumes, but is opening the door for other will be exempt from taxes and still get to Chinese enterprises that are interested in use the ‘made in Germany’ brand. We think European consumer markets. By setting this is a unique opportunity for Chinese up production plants at Parchim they can Photo by Heiner Siegmund and Asian enterprises.” obtain the much valued ‘made in Germany’ Werner Knan: “This will open the door for Knan said that a number of investment label.” other Chinese enterprises eyeing European road shows have been held with LinkGlobal Goodman’s initial efforts will focus consumer markets.” in a number of Chinese cities, including on construction of warehouses, terminals, Nanjing, Shenzhen, Shengzhou, Urumchi office buildings and similar facilities. the food industry. and Yinchuan. Industrial projects are also in the pipeline, He added: “We also believe that He reports overwhelming interest which Knan said will depend on the Parchim is an attractive location for from local producers, eager to expand number of Chinese companies that will Chinese firms that want to collaborate with their businesses to Europe. A number of set up subsidiaries at the site or sign joint German providers of water purification and MOUs have been signed, reported Knan, ventures with local German firms. A treatment for removing contamination, as with some German investors also willing separate fund will be set up to finance this Germany is a technological leader in this to open up plants in Parchim. aspect of the overall development. field.” Knan said: “Parchim is a start, with Knan sees opportunities in several Such joint ventures offer the idealised others to follow soon. We are already sectors, including fashion, hi-tech, win-win scenario said Knan. By setting considering some other opportunities; domestic appliances, pharmaceuticals, and up joint ventures the Chinese get access to in Chinese airports such as Zhengzhou, Nanjing and Urumchi, or places in Africa and even Latin America. Our basic concept is to support LinkGlobal’s international ST Aerospace plans China expansion expansion wherever this creates a win-win Singapore Technologies Aerospace Ltd., and components business, which now situation for both partners.” said it plans to open a new base in the accounts for about 50 percent of sales, Cargo traffic from China to Parchim region and raise investments in China Tay said. has picked up with current B747-200 as economic growth boosts air travel. The conversion of passenger planes operations by British MK Airlines and The company is considering “at least into freighters will also help counter a MD-11s of World Airways that have been two or three” countries for the new base, slowdown in maintenance and repair chartered by Etihad Airways on behalf of president Tay Kok Khiang said in an revenue, he added. LinkGlobal. interview on Bloomberg TV. It may also In China, the company has formed a The ground works for building spend as much as US$200 million over maintenance venture with China Eastern warehouses and other logistics the next three to five years to expand in Airlines Corp., the country’s third-largest infrastructure at the airport on behalf of China, the world’s second-largest aviation carrier, in Shanghai. Goodman are due to commence either late market, he added. The pair will open a hangar, capable summer or early fall, announced managing The company has boosted revenue of handling the double-decker Airbus director, Werner Knan. by increasing its engine-servicing A380, at Pudong airport next year. – Heiner Siegmund
20 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 INTERVIEW Call for cargo carriers to take a DHL sees China long term view of the market revenue slowdown Freighter operators are facing challenging DHL has seen revenue growth in its China times, but Robert Song is somewhat business slow to around 15 percent during bemused by lamentations from his peers the first seven months of the year from about being hit by a perfect storm. a recent average of over 20 percent, an Pointing to the cyclical nature of executive said. this industry, the Commercial Director – Dan McHugh, chief executive of Global AirBridgeCargo Airlines, argues Deutsche Post’s DHL Express Asia that operators should plan from the outset Pacific, attributed the slowdown primarily for high operating costs and a slowdown to a decline in shipments abroad over the in markets. past 12 to 18 months as US and European A great number of players appear demand in particular has dwindled. to have adopted a different approach, DHL has enjoyed 20-23 percent annual though. growth in China over the last five years. According to Song, the flurry of orders “Import volumes are actually still for freighters placed in recent years was relatively healthy, with economic largely based on the assumption that substitution and investment substitution,” growth patterns at the time would continue. McHugh said. “We’ve definitely seen a “We need a robust long-term view of the slowdown in air freight out of China.” market,” he declares. “We need to be a lot China’s exports were hit by a stronger more careful and not jump to conclusions currency and weaker overseas demand. based on a snapshot of the market.” In for the long haul - AirBridge Cargo B747- Export growth slowed to 17.6 percent in Song illustrates this with many 400ERF. June, compared with a year earlier, from operators’ hangover from the China 25.7 percent in all market. In his analysis, the market is of 2007. gives us a good balance,” he comments. still going up; it is just yields that have M c H u g h AirBridge has also striven to develop declined – and rightly so. declined comment long-term alignments on the airline side. When it comes to electronics, on how much The Russian cargo airline has built up consumer expect prices to go down, he revenue DHL partnerships with Nippon Cargo Airlines says. Why shouldn’t the same happen with earned in China, and Singapore-based Jett8; arrangements airfreight yields? AirBridge’s own course but said it that give it access to new markets. Jett8 has not been entirely unruffled. Originally accounted for a can feed traffic from Southeast Asia – a management had planned to launch North significant chunk region with growing demand for capacity America service from Siberia on a trans- of its Asia-Pacific to Russia – to AirBridge, which has no polar routing once it received the first business. He said presence in that market. B747-400 ER freighter. it was difficult to Dan McHugh: China Song sees room for The aircraft duly say whether the business a big chunk. deepening the partnerships arrived last November, Olympics would with those two carriers, not followed by two more, but be a net positive or negative for revenue. so much along the lines of US service is still some The Chinese government put in place joint marketing or product time away. US exports a number of restrictions to ensure security alignment as in the realm have actually performed at the Olympics and curb air pollution in of curbing costs by pooling rather well, but the drop in Beijing, including banning some items resources and buying leverage. the value of the US dollar from being shipped nationwide, more Even with a long-term has created a situation customs inspections and curbs on vehicles perspective, AirBridge should where AirBridge finds it entering the capital. That has created new have reason to feel under the can achieve better results hurdles for DHL and its rivals. weather at the moment, given deploying the aircraft McHugh said the measures were not its contingent of B747-200 elsewhere for the time having a “material” impact on DHL’s freighters in action. However, being, Song says. China business. Robert Song: Consumer Song argues that there is still F u n d a m e n t a l l y , But he said the company was spending demand for lower costs. room for the “Classics” in the AirBridge’s network is about US$2 million to deal with them, market. determined by the needs including increasing its fleet around “747-400ERFs are very good but of its customers, Song claims. He stresses Beijing and buying extra X-ray machines extremely expensive to finance, -200s the importance of long-term agreements and hiring more staff to facilitate customs are very cheap. If you need to operate with block space deals, adding that the inspections. longhaul, your best bet is going to be airline is in the process of extending this “This is not an onerous number. It’s just the –400. We have a mix of destinations, model across Europe. “The majority of a cost-of-doing-business type of number at some long, some medium stage length. our partners work with us on a long-term this point,” he said. “I think the net benefit For most of our routes from Europe to basis with block space agreements. of it is that we improve our processes Russia and from Russia to Asia, the –200 Unlike some other carriers, we don’t across the country.” is more economical,” he states. have just one customer but several. This – Ian Yao DHL partners with Sinotrans in China.
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 21 INTERVIEW Air Freight Indices talks still on-going GFI Nittan, a leading inter-dealer broker specialising in over-the-counter derivatives products and related securities, is still in talks with a potential neutral body with a strong reputation in the air freight industry to develop Air Freight Indices.
When the Indices are established, it concerned with any operational issues. will help the industry to use Air Freight Secondly, they will enable reliable Derivatives – tools to manage risk from forecasting. Every change in future demand fluctuating freightage price and/or fuel (e.g. new product launch in say Q3) and cost surcharges of owning/buying air supply (e.g. addition of flight schedule) freight capacity – in the Hong Kong air will be duly reflected in the change in cargo industry. indices level with direct participation of “Each index will be a composite figure shippers, providing more accurate change of freightage, density, level of service, of demand forecast or capacity supply. aiming to reflect the performance of each Asked how the market had responded routing in terms of revenue per flight,” GFI to the airfreight derivatives concept so Nittan Managing Director Leslie Lu said. far, Lu said over 20 industry players are Basically the data required to develop participating in physical capacity trading the indices are available but separately via GFI Nittan through entering into owned by different parties – IATA’s CASS forward space agreements. has the settlement price between airlines On the indices side, Lu thinks that and freight forwarders as well as service similar to other commodity markets, the type and carrier information while air cargo industry will need some time to understand terminals have the weight, volume and the mechanism and benefits of such contour type of each individual pallets. Leslie Lu: Room for more market efficiency initiatives. These databases can linked up through with increased availability of data. GFI Nittan is optimistic that airfreight a single identifier – Air Way Bill Number derivatives will become a reality in the not for index construction. Thus, the index will into account only export tonnage from too distant future. – Wong Joon San not reveal pricing of individual carrier nor two major terminals in the territory – purchasing price of individual forwarders Hong Kong Air Cargo Terminals and Asia but the overall performance in terms of Airfreight Terminal (AAT) – multiplied pricing, density and service of the routing by assumed market yield),” Lu said. Market Outlook concerned. “Therefore, although we do not have data “We have also got initial consensus on actual market yield and tonnage data from an academic institution to help study of other markets we can see that global Boeing good on the appropriate model for the indices. The spending on air freight is quite sizeable.” only thing to be done is to get consensus In addition, Lu agreed that the Hong long-term growth from industry players to release these Kong air freight market is very volatile Boeing has confirmed its previously data to neutral bodies and provide inputs given that freightage can vary more than announced projection that the global air regarding industry practice and concerns 50 percent across a year due to market cargo market will continue to exhibit to academic institutions for them to seasonality and that with volatile oil price, strong, long-term growth. During start modeling,” he said, adding that this the fuel surcharge, which used to be only the 20-year forecast period, Boeing obviously will happen if the market can around 4 percent of total shipping cost has projects that the industry will grow at an see the risk management benefits via now more than doubled since last year. annualised average of 5.8% – with the derivative products. With such volatility in freightage, freighter fleet increasing from 1,948 to Asked how big and volatile is the density of shipment and the fact that 3,892 aircraft. air freight market compared with other most bookings are only confirmed with This growth requires a total of 3,358 markets, particularly during the peak airlines on the day before the flight, just aircraft joining the fleet by 2027, taking season, Lu said actually, there has been no compare this with an aircraft order that into account retirements of 1,414 aircraft. data in historical freightage for GFI Nittan has to be placed years in advance in most The fleet additions will include 863 new to draw on for benchmarking, unlike cases, reflecting the market risk borne by production freighters, with a value of the seafreight markets where derivative operators. about $206 billion in current US dollars, products have existed for the last eight However, when the indices are and 2,495 aircraft from conversions. to nine years. Despite the lack of proper established for different routings, there will Wide-body freighters will dominate the data, some educated estimates can still be be several improvements in the industry. new production freighter total and 641 made. Firstly, they will provide hedging will be of the large freighter segment “And that’s why we see room for opportunities for different stakeholders (more than 80 tons (72.6 tonnes) higher market efficiency/transparency with to manage their risk or secure longer capacity). the availability of market data to compile term pricing (for user) / revenue (for The Boeing World Air Cargo Forecast indices,” he said. operators) stability. They can enter into 2008/2009, a more detailed study, will “Hong Kong’s air freight export indices contracts (SWAP) where they be issued at the 2008 International Air market alone is estimated to have an can mimic return on freightage changes Cargo Forum and Exposition in Kuala annual turnover over US$6 billion (taking without having to own the capacity and be Lumpur, Malaysia, in November.
22 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 INTERVIEW Boudier leaves enough challenges for successor Delivery delay on B777F and Delta’s role in US JV are major issues
Marc Boudier once famously described his Middle East competitors as “predators”. As he retires from his post as executive vice president Air France Cargo, his successor, Florence Parly, will no doubt draw on her background in French politics, and latterly in investment strategy with the airline, to take a diplomatic and pragmatic approach to the competition and many issues besetting the industry in turbulent economic times; which Boudier outlined in an interview prior to his departure with Air Freight Asia founder and organiser, Nol van Fenema.
In the eight years since Marc Boudier France decided to scrap its three remaining the members are fully co-operating, for headed up the Air France Cargo business 747-200Fs late last year instead of keeping instance in the product portfolio which and became a board member of the airline, them to tide it over until the introduction of represents a common service offering by the air cargo industry encountered a the B777-200ER freighter. all partners, or co-operation in the “tool series of dramatic events, whose historic It dry-leased a 747-400 conversion and kit”, which, among other things, includes significance lives on in immediately took over a new 747-400ERF that was the “under-one-roof” concept allowing identifiable alphanumeric abbreviations delivered to KLM in October to cover the the SkyTeam Cargo partners to use their – Y2K, 9/11, and SARS; which all have capacity shortfall. Even so Boudier said respective facilities for third party handling, been major tests of industry resilience. the result was a five percent cut in main or for the common use of ULD’s. Compared with the passenger Then there is the joint marketing side of the airline industry “air and sales approach, including the cargo activities have been bumpy, US Cargo Sales Joint Venture based because the development of traffic in Atlanta. As for the latter, Boudier is directly linked to GDP,” he said. pointed out that in June this year Consequently the cargo industry Air France KLM Cargo received might have been a reasonably anti trust immunity (ATI) from the reliable “economic indicator”, but US authorities. according to Boudier, that role “Now there is possibility to ended at a turning point in 2006. enlarge the JV by letting KLM While the industry managed Cargo join the JV in Atlanta,” he to survive each of the calamities, said. 2006 was “a tempest in a blue sky”, He said that discussions between because all the macro-economics the partners are ongoing and that were good, with one of the best both KLM Cargo and Northwest years for the world economy in 40 Cargo could join the JV. “If these years. However, 2006 also saw an talks are successful, it will be a unexpected and sudden move of Marc Boudier brings Florence Parly up to date on the intricacies big step forward for the SkyTeam the traditional high-value freight of the air cargo industry, and some of the pressing challenges. Cargo Alliance.” products from air to sea freight. He scoffed at the suggestion that Boudier said: “I remember my deck capacity for the carrier. with declining economies everywhere in colleague Ken Choi of Korean Air Cargo However, the plan for a smooth the world, this doesn’t seem the right time saying that in 2005 he still had 96 percent replacement has not worked out entirely to enlarge the JV, by saying that “the only of the LCD market to the US and Europe, satisfactory, because the strike at Boeing market which is growing at the moment is while in 2006 this dropped to 45 percent.” has not only affected delivery dates of the outbound US, which is stimulated by the Boudier acknowledges the shift to 787 Dreamliner, but also of the B777F, low dollar. At the moment, the JV is over- sea freight was prompted by improved which launch customer Air France Cargo performing. It’s as simple as that.” shipping times, better containers and lower had planned to introduce before the end of The big question is what role Delta logistics costs compared with air freight. this year. Airlines Cargo, headed by Neel Shah, is He said another factor to the In the interim, Air France Cargo has going to play in the JV. Boudier said that general malaise in the industry is “more leased additional capacity from World the US carrier, which recently received uncertainty” about the further growth in Airways, which is operating one MD- approval from the US authorities to merge China. 11F on a full time basis from France to with Northwest Airlines, has decided to Boudier cites lower fuel prices as a destinations in Africa and weekly rotation go back to their own system, rather than counter to the effects of the broad economic to Brazil on behalf of the French flag continuing with the SkyTeam Cargo global slowdown, but admitted it will take carrier. system. time to recover business lost. The 777 freighter delay is not ‘a “One thing is for sure,” said Boudier, But he was positive about significant blessing in disguise’ stressed Boudier, “Next summer we will have a single sales fleet realignments as part of airline attempts because the deliveries of the first three structure for Air France-KLM Cargo in to cut costs in the current conditions. 777Fs were scheduled to take place before the US. However, our first option firmly The gradual integration of KLM’s the peak season at end of the year. remains an expanded JV with Korean Air, operations and fleet into Air France has Asked about the progress of the Delta, Northwest and KLM.” allowed the airline to minimise the impact SkyTeam Cargo Alliance, Boudier He hands over a portfolio to his of the fuel hikes in the past 12 months. Air enthusiastically mentions the areas where successor in ‘interesting times’.
AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008 23 AIR FREIGHT ASIA UPDATE NOVEMBER-DECEMBER 2008