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DA ILY NEWS The official daily newspaper of Air Cargo Europe 2021

06 May 2021

SILENT HEROES OF AIR CARGO

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hile Turkish Cargo is the fastest-growing air cargo brand in the world, it has taken time to consider the heroes in its rank that have kept operations going through the pandemic. The Istanbul-based carrier says its air cargo transportation operations would not be possible without the help of its talented staff. In these operations, there are important roles from pilots to loadmasters.

Loadmaster Koray: Safe transportation of cargo from one point to another in the air cargo industry requires in-depth mathematical knowledge, hard work, rapid analysis and evaluation skills. Loadmasters are responsible for all these processes in a cargo plane. Explosive detection dog Aska and her handler Sezer: Aska has been working in cargo for three years. Ensuring security in a system where tonnes of loads are transported daily is a serious responsibility. Her trainer is very lucky to have a professional partner like Aska. The contribution of Aska and her handler Sezer, form a very important link in the security chain and their contribution to civil aviation is priceless.

In This Issue:

SHAPING THE FUTURE OF THE INDUSTRY PAGE 3

Customer service officer Tuba Yılmaz works in the cargo customer services department. Her job is to co-ordinate solutions with Turkish Cargo’s domestic and international stations in line with the demands of customers. She says: "If we are smiling, those who communicate with us also smile.”

LUG OPENS COVID-19 TESTING CENTRE AT FRANKFURT AIRPORT PAGE 7

HOW DIGITISATION CAN BE BENEFICIAL FOR AIR CARGO PAGE 12

CAPACITY CONSTRAINTS AND RATE VOLATILITY PAGE 13

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ACW DAILY NEWS

air cargo Europe conference

Air cargo of tomorrow: Shaping the future of the industry

New importance Kwong added: “Certainly cargo has acquired a new importance. It has become significant and that won’t change after COVID-19. Some kind of travel will come back, but the extend of it will differ. From a handler’s perspective, we will be expected to handle cargo and the flights no matter the conditions. Really, one important mission remains the same, to ensure our continuous operations and for handlers that means we need to be more agile and go with the flow.” Along with the drive to go digital, sustainability is a key focus of the industry to move forward. Hourcade pointed out that sustainability has many dimensions. It is not only creating a business that can grow without detrimental effect on the environment, but also one that fosters sustainable growth for partners, employees and other stakeholders. Mack noted that DHL is investing $7 billion to create a more sustainable business. “It is a global challenge,” he said. Similarly,

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n the panel was Guillaume Halleux chief officer cargo, Qatar Airways; Thomas Mack global head of air freight, DHL Global Forwarding; Wilson Kwong; chief executive officer, HACTL; and Celine Hourcade, managing director, Change Horizon. Though no one can look in to a crystal ball and know exactly what will happen when we come out the other side of the pandemic, there are varying predictions within the industry of how businesses will fare. For the cargo industry, which has seen a boom in business thanks to e-Commerce and increased pharma operations, much of returning to normality relies on passenger operations and belly hold capacity returning to pre-COVID-19 levels. “I think post-COVID-19 will look a lot like pre-COVID-19,” said Halleux. “Belly capacity will eventually return. When? We don’t know. Not in the short term, but it will come back.” Hourcade added: “It’s probably a moment in time. But it’s also a critical moment in time. The industry will still be there, but with different players.” The pandemic in many ways has changed the playing field of the industry, with many successful airlines falling behind unable to step up the cargo side as passenger volume fell. “The passengers are coming back, in the USA flights are pretty full,” said Mack. “I think on the forwarding side, we will get into more dedicated flight operations. An asset that we had during COVID-19 was access to capacity and our customers need assurance that we have this.”

Air Cargo Europe 2021

The air cargo industry has without a doubt encountered some of the most challenging situations this past year, but throughout it all, has shown agility, determination to find a solution and undeniable sense of community collaboration. The overarching themes of air cargo Europe 2021 reflected the trends seen in these challenging times: overcoming capacity constraints; digitalisation; and industry action going forward. ACW's Yasmin Turner tuned in to some key webinars across the day.

through its WeQare product, Qatar Airways Cargo hopes to tackle the issue. "WeQare is just the start. To be more sustainable there are obstacles everywhere,” said Halleux. “For global players to be sustainable you have to do it globally. "Right now, it is difficult to use sustainable aviation fuel (SAF), for example, as it is not available everywhere and it’s expensive.” The future may be full of challenges, but Hourcade remains optimistic: “I really believe we have a new generation of leaders who are incentivised to drive transformation in the industry. There are people who are passionate about this industry, who want to make it more sustainable. Going forward, I would look to the customers and frontrunners to see what they are focussing on because it shows the path of what the next 10-15 years will look like."


ACW DAILY NEWS

Starting signal in Bulgaria

MUC and partners commence Sofia operations

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s of Monday April 19 2021, Munich Airport and the consortium "SOF Connect" - consisting of the French investor Meridiam, the Austrian developer Strabag - have taken over the full responsibilities and business activities related to the operation of Bulgaria’s capital airport. SOF Connect is committed to investing at least €624 million over the life of the concession and build a brand new Terminal 3 for the airport within the first 10 years of the concession. “Our mission is to transform Sofia Airport into a top modern and competitive European airport and to make Sofia Airport an engine and impetus for social, economic, environmental and inclusive growth for Sofia, its region and Bulgaria," says Dr Ralf Gaffal, managing director Munich Airport International. "We have a clear vision for the commercial development of Sofia Airport. Our team is excited to work with local partners to bring the best of Bulgaria and downtown Sofia to the airport," added Marcus Spahn, chief commercial officer SOF Connect, who joins the SOF Connect management team on behalf of Munich Airport.

Aviation has a problem: The changing regulations UAVs may be the answer cargo operations face in the coming year By Charles Tavner, executive chairman Flylogix

By Paul Sandström, chief revenue officer and director of operations EMEA at Web Manuals

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Aviation has a problem. It is one of the only industries without a credible plan to reduce its overall Global Greenhouse Gas emissions by 2050. This is just Physics: safely placing aircraft in the air is very energy intensive. At Flylogix we believe unmanned aircraft can make a massive contribution to reducing aviation's emissions. “Flylogix uses unmanned aircraft to reduce the cost, risk and environmental impact of delivering aviation services. Removing the pilots from the cockpit enables smaller, more efficient, aircraft. The global air cargo industry is where we can have the greatest impact quickly. “At Flylogix we have focused on the middle

mile. Our unmanned aircraft have safely flown thousands of regulated miles alongside manned aircraft. In partnership with Isles of Scilly Steamship Group we demonstrated the first unmanned airport to airport delivery in the UK. “Now we are implementing a daily service to the Scilly island alongside their existing air and sea freight services. By working in tight collaboration with a freight partner with over 100 years of experience of delivering to this island community we are establishing a really clear view of where the unmanned aircraft offers value in the overall freight network. These insights are helping us guide other partners as they use unmanned aircraft to transform their networks.”

he past year has seen ongoing changes to regulation, from adapting customs information for air cargo supply chains to Britain’s exit from the European Union, and the more recent amends to cargo manuals. As borders begin to reopen, implemented measures will continue and it is important for operators to update their compliance information efficiently. How has changing regulations impacted cargo operators over the past year? Air cargo has played an important role in delivering humanitarian goods throughout the pandemic and regulatory bodies including The International Air Transport Association (IATA) and International Civil Aviation Organization (ICAO) have been working hard to update relevant customs information and ensure the air cargo supply chains remain open. On top of this, the UK’s exit from the EU and resulting transition from the European Aviation Safety Agency (EASA) to the Civil Aviation Authority (CAA), has led to yet more compliance requirements and an overhaul of paperwork for many operators. Cargo operation manuals have already seen changes in 2021, the ULD regulation (ULDR) and IATA Cargo Handling Manual (ICHM) have seen revisions relating to COVID-19, including

disinfecting GSE and using drop zones (cargo on ramp) to avoid cross-contamination, as well as alterations to the Airport Handling Manual (AHM) and IATA Ground Operations Manual (IGOM). Taking effect from the January 1, the Live Animals Regulations (LAR), Perishable Cargo Regulations (PCR) and Temperature Control Regulations (TCR), the Dangerous Goods Regulations (DGR) have also seen updates. The work of regulatory bodies has enabled the air cargo sector to continue operations safely, but for operators the ongoing changes have resulted in the need to continually update their documents. This presents a challenge for those who are working on time constraints and can have a significant impact in delaying operations. As the industry adapts to the new aviation environment, managing the complexities of new regulations while remaining efficient is crucial. Air cargo industry regulations are set to adapt throughout 2021 and as the aviation sector begins to recover, time should be best spent focused on updating handling operations throughout the supply chain. Digitising manuals enables operators to stay up to date with regulation changes, saving valuable time and energy.

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ACW DAILY NEWS

LUG opens COVID-19 testing centre at Frankfurt Airport test persons and their employers can be informed very quickly in the event of a suspected COVID-19 infection. “We are very proud to be able to make a contribution to public health with the new COVID-19 testing centre. It also strengthens Frankfurt’s standing as a well-functioning airport”, says Nina Strippel, COO of LUG in Frankfurt. “Everyone working in logistics here at Frankfurt Airport is working very hard and has achieved great things in the past year - and they continue to do so every day under difficult conditions. "We need to protect their health. We have therefore put a lot of energy into this project and

brought it to a start in a very short time. "This has only been possible due to our long experience, the great cooperation between all companies involved, as well as the support of government offices”, adds Nina Strippel. “We are very happy that LUG provided such great support for this project,” says Christian Howaldt, Managing Director, InVitaGO GmbH. “Thanks to this partnership and the uncomplicated approach of LUG, we can now offer the cargo community here in Frankfurt an opportunity to test for COVID-19 and evaluate the laboratory results on-site.” "With the on-site COVID-19 testing centre, employers at Frankfurt Airport can now easily meet the new legal requirements for mandatory test offers," says Strippel.

Christian Howaldt (right), CEO, InVitaGO GmbH, and Nina Strippel (left), COO, LUG aircargo handling GmbH, open the COVID-19 testing centre in Cargo City South, Frankfurt airport.

The testing centre was established on the initiative of the medical laboratory service provider InVitaGO GmbH with the support of LUG aircargo handling GmbH in record time and with great commitment. The innovative air freight handler has been based in the CargoCity South for almost 25 years and has provided the facilities for the project without following any commercial aims. The testing centre is operated by InVitaGO GmbH, which already manages several testing centres in Germany. The concept provides a professional "drive in" solution for cars and a walk-in alternative.

Protecting the workforce is a major challenge during the COVID-19 pandemic. Companies based in the CargoCity South are classified as essential to the economy. Their operational employees cannot pack pallets and handle cargo flights by working from home. Rather, they have to ensure 24/7 operation on site. Due to the virus mutations, the risk of infection has increased significantly since the beginning of the COVID-19 crisis, and the protection of employees has become even more important. Since March 2020, LUG has had a special crisis team in charge of preventive measures against COVID-19 infections. Numerous investments were made, operational groups were separated, and the measures were repeatedly adapted to continuously changing governmental regulations. LUG has already organised various testing campaigns during which employees were able to take a rapid Antigen or PCR test on site.

Drive-in tests for all The idea for a public testing centre emerged from these testing campaigns. The testing centre is operated by the laboratory medical service provider InVitaGO. It is open from 7 a.m. to 5 p.m. to start with. Opening hours may be adjusted if necessary. An appointment for a test must be booked in advance on the website www.invitago.eu. Confirmation of the registration and the time slot are sent in the form of a QR code to the mobile device of the person requesting the test. Within 15 minutes after an antigen rapid test the result is transmitted to the same mobile device. If the test result is positive, the PCR smear required in such cases can be taken straight away in the testing centre. The result is transmitted via an interface to the DEMIS (German Epidemiological Reporting and Information System) of the RKI (Robert-Koch-Institute). This means that the test samples are not transported through Germany in a time-consuming manner, but are evaluated directly at the airport. Thus, the

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Occupational safety has priority

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ffective Saturday, April 17, 2021, the CargoCity South at Frankfurt Airport features a COVID-19 testing centre, offering an opportunity for rapid Antigen and PCR tests. The facility is open to the public including employees, visitors, customers and service providers.


ACW DAILY NEWS

Brucargo West opened A that provides some 50,000 sq m of warehousing space to meet the needs of Kuehne+Nagel, Worldwide Flight Services (WFS) and Expeditors, which are active in the transportation, packaging and warehousing of freight. Kuehne+Nagel is expanding its activities at Brussels Airport also for the handling of perishables (temperaturecontrolled storage and transportation of flowers, vegetables and fruit). The new infrastructure is especially suitable for the

Air Cargo Europe 2021

fter two years of construction work, a new logistics building for the handling of goods was officially opened in the logistics area at Brussels Airport. Brucargo West provides large refrigerated storage spaces and offers direct airside access and will accommodate Kuehne+Nagel, Worldwide Flight Services and Expeditors. At the west side of Brucargo, Brussels Airport has invested in a building

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handling of pharmaceuticals, and in particular of vaccines, which is one of the niche markets Brussels Airport has specialised in, with over 30,000 sq m of refrigerated storage space. Expeditors is heavily expanding its healthcare logistics in Europe and has

chosen for Brussels Airport to become its pharmaceutical gateway to connect its European network with the rest of the world. The new Expeditors healthcare facility in combination with fully monitored end to-end temperature-controlled logistics is a differentiator in the market for the shipment

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ned at Brussels Airport Rain gardens were built to improve rainwater infiltration and rainwater pits were constructed for the reuse of rainwater, driving down the buildings’ use of mains water. The buildings were also equipped with LED lighting and heat pumps. In addition, to improve mobility within the airport grounds and facilitate more sustainable modes of transport for staff, charging stations for electric vehicles were installed in the area. Two additional bus stops and a new bicycle path complete the mobility offer. Over one hundred logistics companies have set up office at Brussels Airport. Due to its particularly central location amid all the major

industrial centres, the logistics area of Brussels Airport is a crucial powerhouse for the economic growth of the country and its regions, with almost 650,000 tonnes transported in 2020. The airport has invested a total of €100 million in the construction of ultra-modern logistics buildings including the Brinks building for the storage of valuable goods and the Animal Care and Inspection Centre for the temporary accommodation and transport of various animal species, as well as in the renovation of several existing buildings such as the Swissport Cargo building. And of course, in the construction of a brand-new building at Brucargo West.

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of highly sensitive vaccines and pharmaceuticals. This new Expeditors facility is already playing a key role in the shipment of COVID-19 vaccines and related medical supplies. “Thanks to Brucargo West, we now have additional logistics facilities for the transport in optimal conditions of pharmaceuticals in general and COVID-19 vaccines in particular,” explained Arnaud Feist, CEO of Brussels Airport. “We are thus expanding our first-line logistics infrastructure and temperature-controlled storage facilities, now having the largest refrigerated storage capacity of any airport in Europe. Brussels Airport is a proactive investor who aims to make the logistics chain even more efficient and get it ready to accommodate future growth, making the airport an essential economic hub in Belgium, in terms of employment and added value for our country’s economy.”

Sustainability is key Sustainability was a key concern throughout the construction of this logistics project, which started in May 2019. Part of the roof surface is laid out as a green roof while the entire surface is designed to be fitted with solar panels in the future.

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ACW DAILY NEWS

AirBridgeCargo Airlines take the crown AirBridgeCargo Airlines transports museum showpieces for the joint exhibition of the Hong Kong Heritage Museum and the Moscow Kremlin Museums

A Air Cargo Europe 2021

irBridgeCargo Airlines (АВС), one of the leaders in air transportation of special cargo, has delivered over 200 museum exhibits onboard its regular Boeing 747-8F flights from Moscow to Hong Kong. The delivery, organised and accomplished in co-operation with ART-Сourier, contained

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valuables from the Moscow Kremlin Museums’ collection part of the upcoming exhibition ‘Tsar of All Russia. Holiness and Splendour of Power’ event taking place in Hong Kong from May until August this year. Exhibition guests will be able to travel to the times of Ivan the Terrible and his successors surrounded by museum exhibits dating back to the 16th and 18th centuries which

rarely leave the Russian museum collections. Nikolay Glushnev, general director of AirBridgeCargo Airlines, highlights: "We are proud to be part of the international exhibition projects, especially now when we are slowly coming back to normal life and see the revival of cultural projects which had previously been suspended. Our gained experience and expertise, competence in the transportation of art pieces, aligned relations with reliable partners, such as ART-Courier is, enable us to deliver valuable cargo worldwide – from artwork to jewellery

and beyond." For the long flight from Moscow to Hong Kong, wooden climate-controlled crates which met the requirements for safe transportation and are produced from non-toxical and acidfree materials without possible negative effects on the art pieces, were chosen. The crates were equipped with shock sensors. The company has previously delivered paintings for famous museums, international exhibitions and private collections.

PML PACKS IN INVESTMENT PERISHABLE Movements Ltd (PML), the global perishable cargo specialist, continues its commitment to investing in state-of-the-art technology and innovative equipment, with the purchase of a £250,000 multi-head packaging machine. The latest addition to PML’s Heathrow base will have a dramatic impact on productivity, due to the number of heads (16 compared to the traditional 14), which delivers unrivalled speed and efficacy. By installing the new Vegatronic 6000 machine, PML’s packaging rate for sugar snaps, mange tout and physalis has doubled, increasing from 40-45 packs per minute to 90-100. Commenting on the investment, sales director Nick Finbow said: “PML has always been at the forefront of ploughing investment back into the business and adapting all operations to offer its customers a service which reflects optimum maximum efficiency."

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SPEEDCARGO: digitising physical cargo has become of key importance

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Air Cargo Europe 2021

SINGAPORE-BASED, SPEEDCARGO Technologies is collaborating with Microsoft to disrupt air cargo and logistics with advanced 3D vision technologies. In this collaboration, SPEEDCARGO leverages advanced 3D sensing technologies by Microsoft in its AI and robotics solutions for digitisation, optimisation and automation in the air cargo and logistics space. The airfreight industry has been traditionally slow in adoption of new technologies, with the current efforts being largely focussed on ensuring free flow of documentation across different stakeholders. SPEEDCARGO is poised to help drive this industry transformation across warehousing, freight forwarding, trucking and logistics, airfreight ground handling and air freight space. SPEEDCARGO’s three modular solutions CARGO EYE, CARGO MIND and CARGO ARM form a suite of solutions using intelligent systems that provide accurate dimensioning, digitisation of cargo, planning & optimising of operations that enable automation for the stakeholders in the logistics value chain. The adoption of this automation has helped an initial customer with a 20%-25% increase in revenue from underutilised assets. Suraj Nair, founder and chief technology officer at SPEEDCARGO, told acE Daily how he believes the pandemic will spur on industry digitalisation. “The industry has been pushing for digitisation for a very long time. IATA initiatives like digital cargo, eAWB and OneRecord have been around for a while but adoption has been very slow over the years. “COVID-19 has got the industry stakeholders to reflect hard and unanimously accept that operational efficiency, reduction in cost, increased visibility and traceability are key for future sustainability of the business. With this impetus we see digitisation picking up at a faster pace across the board (large and small players). “With cargo capacity wiped away due to passenger jets, businesses will have to adopt technology faster than ever to optimise the available capacity. The industry is mainly used to digitising paper. “However, for capacity optimisation digitising the physical cargo has become of key importance.”


ACW DAILY NEWS

air cargo Europe conference

Is the digital twin the new beauty of the skies? How digitisation can be beneficial for the air cargo industry

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eji John, editor of STAT Media Group, moderated the webinar on digitisation. The panel featured: Turhan Özen, chief cargo officer, Turkish Airlines; Dirk Goovaerts CEO, Asia Pacific, dnata; Suraj Nair, founder, SPEEDCARGO Technologies; Pramod Rao, CEO, Nexshore; Moritz Claussen co-founder and MD, Cargo.one; and Luca Graf, head of digital innovation, DSV. Özen started off the discussion: “Digitisation is a journey. It is a top down strategy. At Turkish, we made a strategic roadmap, identifying four pillars to achieve growth, and one of these pillars was digital transformation.” Rising in the cargo ranks, Turkish Cargo has taken advantage of technology, switching to digital methods like robotic process automation, chatbots, and utilising digital marketplaces, like WebCargo. “It is very clear that the digital platforms are able to virtually integrate stakeholders of the chain to be more aligned to create value for the final customer. The whole industry will benefit from this,” Özen added. As Goovaerts mentioned, the air cargo industry has been fragmented when it comes to digital connectivity. “Now, the tools and digital solutions are available to connect the industry. There are still gaps, but many have been closed.” COVID-19 may have accelerated many digital process, perhaps as a result of remote working and less physical interaction, but it has a been a

long time in the making. “There is such a large potential of what we can improve in terms of the digital. This is what excites me,” said Graf. “We can still revolutionise things in the cargo sector. In the end, efficiency is about connectivity and for that we all need the same standards. I fully believe we need to continue to collaborate using modern IT systems. We need to get away from legacy technology and move in to future technology.” “One of the major things we have set out to do is to make sure everyone benefits from digitalisation, all stakeholders,” said Rao. “The Software as a Service (SAS) model is accessible. Effectively, stakeholders are able to plug in and connect to the internet of logistics. The benefit of such standardisation is that you can connect to others and add value.” Claussen added that digital standards in other industries have been around a lot longer than in air cargo. “There’s not going to be a bang and we’re all connected, so it is important that everyone involved takes instrumental steps. One way of doing this is for players to share their Application Programming Interface (APIs), so others can learn from this and visa versa.” As Özen noted, it is a continuous journey with a path that is in many ways never ending. The key takeaway is to digitise processes in incremental steps, promoting collaboration along the way.

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air cargo Europe conference

Airfreight capacity constraints and rate volatility – how serious are they and when do we see an end to them?

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that back up plan, helped us overcome challenges,” he said. The webinar finished with Hughes asking the panel as to when they believe passenger levels will get back to some ‘normality’. Batliwala: If it were a horse race I’d bet on summer 2022! Shama: Pre-COVID levels may return Q4 of 2023 or Q1 2024. Conrady: I don’t think we’ll see former passenger levels until 2025. Vekshin: The world is never going to be same again. I think passenger volume is unlikely to return to 2019 volumes. Delarue: I agree with Yashpal. It has to do with herd immunity, so maybe by the beginning of next year things will return.

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open up the skies for cargo.” As Hughes noted, the challenges of last year have driven up rates and the cost of fuel is now on the rise. From Batliwala’s perspective though, this is natural. “The fact that prices are high is understandable. Airlines have to do it, as who knows where we are going to be in a year's time. People are taking advantage of the high times.” This is in fact a key take way from the webinar: the importance of reacting to the market and being flexible in times of uncertainty. This is something Delarue noted was of key importance to Rhenus. “Having a back up plan, and a back up plan for

Air Cargo Europe 2021

oderated by TIACA’s director general, Glyn Hughes, the panel also consisted of: Russi Batliwala, chairman of the board, Chapman Freeborn Group; Yashpal Sharma, managing director, Skyways Group; Max Conrady, senior vice president cargo, Frankfurt Airport; Konstantin Vekshin, chief commercial officer, VolgaDnepr Group; and André Delarue COO, Airfreight, Asia, Rhenus Logistic. Preighters, as they have come to be known, have proved extremely valuable this past year as cargo demand was up and passenger volumes were down. The question as to whether this trend will continue post-COVID-19 was offered to the panel. “I never thought I’d say this,” said Batliwala, “but I think preighters are here to stay. A lot of carriers have passenger aircraft that they’ve taken seats out and we’re seeing integrators and e-Commerce are using these aircraft. I think that in the future, the first thing we brokers will be looking for is preighters. We’ve started something that will hopefully continue.” Batliwala added that preighters, despite the fact they can take more time to load and offload, can be cheaper to use than freighters in certain markets. However it was the consensus of the panel that, although preighters provide a good solution for capacity constraints, there is no alternative for investing significantly in freighters. “The world is unlikely to be the same and we don’t have enough global capacity as it stands,” said Vekshin. “Every player will be more inclined to invest in dedicated freighter capacity rather than belly hold as the situation going forward will be unpredictable. Preighters are not a long-term option, therefore dedicated cargo capacity will lead the industry.” The demand for cargo is at a record high. “The Frankfurt Airport cargo figures reflect the global trends. We had the second busiest cargo December ever last year and this has carried on this year,” explained Conrady. “Re-establishing major trade and passenger lanes is important. The demand as we see it now could be fulfilled by slowing stepping up normal operations.” Sharma explained that as India had relied heavily on bellyhold capacity, the pandemic had a huge effect on the demand/ supply balance. “Luckily, post-COVID-19, Spice Jet especially, has done well and brought in new aircrafts and freighters,” he said. “They have seized the opportunity. The pandemic has put cargo in the forefront for Indian carriers. Everyone wants freighters in their capacity but India needs to make obtaining permits easier to


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Profile for Azura International

ACE Daily Day 3 2021  

ACE Daily Day 3 2021  

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