high tech AIR CARGO UPDATE 205x292.pdf 1 11.04.2014 10:54 C M Y CM MY CY CMY K www.turkishcargo.com | +90 850 333 0 777 high tech AIR CARGO UPDATE 205x292.pdf 1 11.04.2014 10:54 C M Y CM MY CY CMY K www.turkishcargo.com | +90 850 333 0 777 1621_AS Air_Cargo_20.5x29.2_F.ai 1 12/16/13 10:55 AM Under the Patronage of H.H. Sheikh Ahmed bin Saeed Al Maktoum President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman and Chief Executive of Emirates Airline and Group EDITORIAL Editor’s Note Improving value proposition in air cargo The month of May in the GCC usually signifies the sudden rise in temperature. As outdoor activities become limited overnight, Bi-monthly: Vol 04 | Issue 04 | No. 22 people tend to stay indoors and at the same time start making Middle East, Africa and South Asia plans on their long summer vacation. To our advantage, the region’s airports and airlines are well equipped to cater to the increased demand. But, despite the rush, business in general terms slows down during these hot and humid days. This is also valid for logistics sector. Passenger traffic may show signs of strength but cargo prospects for companies are not always bright. Although we received some good news on the performance of the global air freight markets especially during the last quarter of 2013, air cargo volumes have basically been flat since the beginning of the year. According to IATA, this is related to the overall business confidence and world trade – especially the impact of a slowdown in Chinese manufacturing, which is into its fourth month. Motivated by the figures of last quarter’s figures, people in the industry were expecting a better 2014 in terms of cargo volumes and profitability but so far the statistics have proven otherwise. Rather than putting the blame on a variety of factors, experts suggest taking a closer look at the underlying factors in air PO Box: 9604, SAIF Zone, Sharjah - UAE cargo industry. Cutting end-to-end shipping times by 48 hours; Tel: +971 6 557 9579, Fax: +971 6 579569, modernizing air cargo processes and infrastructure; and improving Tomorrow’s Airport Industry, Today [email protected] its value proposition are just some of the positive steps to attain www.7dimensionsmedia.com growth. Naturally, all these require a collaborative effort by both Chief Editor major and smaller players on a global scale. Chandrima Dutta [email protected] Back to this edition of Air Cargo Update, we have talked about one of the most successful low cost airlines in the region – Contributers flydubai, which has been able to create a brand name for itself in a Mallika Hussain Nirmala Rao crowded market. Although many startups have failed in other GCC • Get your share of the US$100 billion regional airport development market Kiran Varghese countries, flydubai is still flying high and expanding aggressively Ayesha Rashid with new aircraft acquisition and personnel hiring. In addition, its • Discuss projects and tenders directly with ‘Hosted Buyers’ from over 50 [email protected] facilities at Dubai International’s Terminal 2 are being upgraded to regional aviation authorities Head - Sales & Marketing offer much better services. Israr Ahmad • Join over 250 global airport suppliers at the industry’s leading business platform [email protected] On the traditional side, we have featured another leading airline from the region – Qatar Airways. The five star airline is another Head Operations success story and has managed to be consistently in the headlines Jamal Ahmad BOOK YOUR STAND TODAY [email protected] under the leadership of its CEO HE Akbar Al Baker. The award winning airline has over 280 aircraft on order worth more than Photographer/s US$50 billion, which is quite a large sum considering the GDP of Please call Raed El Forkh on +971 50 653 1941 or email [email protected] Jamal / Amin many countries around the world. WORLDWIDE MEDIA REPRESENTATIVES France, Belgium, Monaco, Spain: Aidmedia, Gerard Lecoeur; Tel: +33 (0) 466 326 106; Fax: +33 (0) 466 327 073 11 – 13 May 2014 | Dubai International Convention and Exhibition Centre India: The news section also provides an overview of what has happened RMA media, Faredoon Kuka; during the last month in our industry and other feature articles offer www.theairportshow.com Tel: +91 22 5570 3081; Fax: +91 22 5570 3082 Taiwan: insights on a variety of aviation related topics. Advance Media Services Ltd, Keith Lee; Tel: (886) 2 2523 8268; Fax: (886) 2 2521 4456 Thailand: Enjoy reading our May edition and as usual, send in your comments SUPPORTERS Trade and Logistics Siam Ltd, Dwight A Chiavetta; Tel: +66 (0) 2650 8690; Fax: +66 (0) 2650 8696 and suggestions to help us enhance the look and quality of our 4 UK, Ireland, Germany, Switzerland, Austria: Horseshoe Media, Peter Patterson; Tel: +44 208 6874 160 magazine. All rights reserved. The opinions and views expressed in this publication are not necessarily those Sincerely, of the publishers. Readers are requested to seek specialist advice before acting on information Co-located events contained in this publication, which is provided for general use and may not be appropriate for Editor, Air Cargo Update the reader’s particular circumstances. The publishers regret that they cannot accept liability for any error or omissions contained in this publication. ORGANISED BY TRAVEL CATERING EXPO DUBAI, 12 - 13 MAY 2014 DUBAI, 11 - 13 MAY 2014 1621_AS Air_Cargo_20.5x29.2_F.ai 1 12/16/13 10:55 AM Under the Patronage of H.H. Sheikh Ahmed bin Saeed Al Maktoum President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman and Chief Executive of Emirates Airline and Group Tomorrow’s Airport Industry, Today • Get your share of the US$100 billion regional airport development market • Discuss projects and tenders directly with ‘Hosted Buyers’ from over 50 regional aviation authorities • Join over 250 global airport suppliers at the industry’s leading business platform BOOK YOUR STAND TODAY Please call Raed El Forkh on +971 50 653 1941 or email [email protected] 11 – 13 May 2014 | Dubai International Convention and Exhibition Centre www.theairportshow.com SUPPORTERS Co-located events ORGANISED BY TRAVEL CATERING EXPO DUBAI, 12 - 13 MAY 2014 DUBAI, 11 - 13 MAY 2014 CONTENTS 8. Global News 20. Cover Story Saudia Cargo upgrades Brighter skies and a positive Shanghai service to outlook for flydubai B747-8F 12 22 23 24 14 47 49 17 45 30. Feature 44. Events 50. Trucking Challenges in aviation sector Airport Show Metro Logistics wins aviation industry backing orders 77 trucks from MAN 40. Profile 47. Airports New Renault Trucks promise no CO2 emission Mumbai International Airport goes Hamad International Airport of- swanky but cargo has to wait ficially opens 6 For more images visit www.facebook.com/aircargoupdate GLOBAL NEWS Virgin Saudia Cargo upgrades Shanghai service to Atlantic B747-8F Cargo reports record load factors Virgin Atlantic Cargo reported a turnover of £225.3m for 2013, exceeding expectations in a challenging global market. The year ended 31 December 2013 saw the airline achieve the highest ever average cargo load factor in its 30-year history of 76 per cent, up 6 per cent year-on-year. Tonnage carried by Virgin Atlantic was 5 per cent higher at 224,500 tonnes in 2013 in a market that declined 0.5 per cent overall. Revenues were down 3 per cent compared to the previous year, reflecting the airline’s 7 per cent reduction in capacity over the year. John Lloyd, Director of Cargo for Virgin Atlantic, said: “Our 2013 results show that we outperformed the market for a second consecutive year and increased our share by 5 per cent at a time Saudi Airlines Cargo announced the requirements. “We had previously when many of our major competitors’ upgrade of its Shanghai service to its made a commitment to our clients businesses were in decline. The B747-8 freighter with immediate effect. in China that we would soon offer excessive amount of cargo capacity The airline now operates three weekly them additional capacity and shorter that started to return to the market B747-8F flights from Shanghai directly transit times to KSA and onwards in 2013 continued the downward to Europe and KSA, thus enabling to our network flights,” commented pressure on yields but we have clearly customers to connect to the entire Vikram Vohra, Regional Director Far been more successful in managing this Saudia Cargo Network. East at Saudia Cargo. “By offering challenge than many other carriers.” our Shanghai clients our latest 747-8F Asia Pacific produced Virgin Atlantic’s “We are very excited to be able to we have lived up to our commitment. biggest cargo gains in 2013 with a 12 operate our B747-8F aircraft in the The response so far has been very per cent increase in tonnage and a 3 Shanghai market after obtaining the encouraging,” he continued. per cent rise in revenues. Tonnage on required permits,” said Peter Scholten, its Americas network was 5 per cent VP Commercial at Saudia Cargo. “This Saudi Airlines Cargo operates a fleet higher and the Europe, Middle East and is the beginning of our further expansion of 15 freighters and sells the belly- Africa region grew 3 per cent. into the Greater Chinese market, where capacity on 145 passenger aircraft we already operate two weekly B747- for Saudi Arabia’s flag carrier Saudia, Shipments of fresh salmon to 400Fs in Guangzhou and 8 weekly spanning a rapidly expanding global destinations including New York, B747s (both 400s and 800s) in Hong network of 225 destinations.