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The weekly newspaper for air cargo professionals Volume: 19

Issue: 23

13 June 2016

Frankfurt-Hahn stake bought by Chinese investor

hina continues to flex its financial muscle despite a slowdown after Chinese investor Shanghai Yiqian Trading Company agreed to acquire a majority stake in Germany’s Frankfurt-Hahn Airport (right). The Chinese company has reportedly agreed to pay a low double-digit million euro amount for the 82.5 per cent stake in the gateway, which is being sold by the German state of Rhineland-Palatinate. The state’s interior ministry says Shanghai Yiqian Trading hopes to expand both the airport’s cargo and passenger business by working closely with Asian airlines. Rhineland-Palatinate Minister of the Interior, Roger Lewentz explains: “The takeover by a private investor marks the beginning of a new chapter at Hahn Airport which will give new impetus for further developing the airport. “The new government of Rhineland-Palatinate has a strong interest in a successful Frankfurt-Hahn Airport.”

Shanghai Yiqian is active in aviation, logistics and international trade, while legal representative, Yu Tao Chou, was key in the development of some Asian airlines, including all-cargo carrier Yangtze River Express. The sale still has to be approved by the parliament of the federal state before its summer break, and it is subject to go ahead by the European Commission. Frankfurt-Hahn handled just

below 80,000 tonnes of cargo in 2015, a significant 39.9 per cent fall on 2014, but has in previous years handled triple that amount of tonnage. The future of Frankfurt’s second gateway has been a hot topic and there was speculation earlier this year that online retail giant Amazon was considering investing in the gateway. However, it has come on hard times over the last few years, but

some see an air cargo opportunity - by exploiting the night-time ban on flights at Frankfurt Airport. There was two other bids, which have not been revealed, but one thought to be in the running, the Henan Civil Aviation Development and Investment Co (HNCA), denied on 3 June it had invested in the airport. HNCA has a 35 per cent stake in Cargolux Airlines and explains: “Contrary to several media reports that name Henan Civil Aviation Development and Investment Co (HNCA) as the buyer for Hahn Airport, HNCA has confirmed to Cargolux that it has neither any interest nor intention to participate in the sale of the German airport. News reports indicating anything to the contrary are therefore inaccurate.” HNCA adds that it is working closely with Cargolux to develop Zhengzhou in China into a major cargo hub, through the Cargolux China venture. Last year, 65,000 tonnes of airfreight was moved by Cargolux through the expanding gateway.

New belly carrier POP targets air cargo from UK to India

Cargo forms a major part of the strategy of a new bellyhold carrier aiming to launch in the fourth quarter this year with flights from London Stansted to two cities in India – the world’s second fastest growing airfreight market. POP (People Over Profit) is set to fly to Amritsar and Ahmedabad in the states of Punjab and Gujarat, respectively, using an Airbus A330-300. The airline says it has provisional plans to apply for its own full Air Operator’s Certificate (AOC) but will continue to lease its aircraft. POP chairman and principal, Navdip Singh Judge explains it has chosen the A330 due to its cargo payload of up to 70 tonnes. He says it will look to move textiles and perishables such as fruit and other cargo like pharma. He tells Air Cargo Week: “Cargo is vital to

increase commerce and businesses in the region find it difficult to export to Europe. And by having non-stop flights we might get UK facilities to open facilities in the areas. There is a lot of cargo we can regularly bring back.” The planned new carrier initially plans to

operate three services a week to both Amritsar and Ahmedabad by running flights on alternate days, and Judge feels this part of India is an “untapped market” as has no direct connections from the UK. He says POP plans to expand soon after: “If the load factor (for passengers) is high we will get a another aircraft after six months and do daily to both. If it goes well, in year two we will find two other destinations in India, maybe Goa or Bangalore.” Further down the line, POP is looking to operate services to Toronto (Canada) and Newark (US) three times a week where there is substantial Indian communities. Interestingly, POP is also looking to give back a minimum of 51 per cent of its profits to charitable causes in the communities it serves in both countries.

new airfreight network launched

schiphol not concerned by china slowdown

asia and china in particular key for munich

lufthansa cargo reaping rewards of china lanes

Cargo growth in Europe outstrips PAX EUROPE’s air cargo market was given a lift as the Airports Council International (ACI) Europe reports in its monthly report freight traffic rose year-on-year (YOY) by 5.5 per cent across the continent in April. For once, the air cargo industry outshone the passenger business for growth, which grew YOY by only three per cent. The European airport trade association notes April was the best monthly performance for freight in almost two years with most of that growth happening at European Union (EU) airports (+5.8 per cent) rather than non-EU ones (+1.2 per cent). Most of Europe’s major hubs saw good growth in April, including Heathrow Airport which saw a 3.4 per cent YOY uplift to 127,091 tonnes, while Paris Charles de Gaulle Airport saw a 10.6 per cent YOY rise to 162,000 tonnes, Amsterdam Airport Schiphol by 6.8 per cent to 137,665 tonnes, and Frankfurt Airport 4.7 per cent to 171,295 tonnes. ACI Europe director general, Olivier Jankovec explains there are still security concerns across European gateways while flights and passenger numbers in April were impacted by the Brussels terrorist attacks on 22 March.

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NEWSWEEK

Expanding cargo the goal at Brussels Airlines

russels Airlines was hit hard by the terrorist attacks on 22 March at Brussels Airport, which affected capacity and flight operations significantly - but is getting back on track. Vice president for global cargo, Alban François (pictured) tells Air Cargo Week: “Due to high passenger numbers before the attacks, the available freight capacity was relatively low and, thus, although the load factor increased, the transported FTK diminished. “After the events the demand for air travel in terms of passenger transport has unfortunately known a downward trend, resulting in a bigger freight capacity.” He notes: “The biggest challenge is to get wrong perceptions right again. The

reputation of Brussels has suffered a lot following the events of 22 March.” To meet demands of passenger and freight customers during the closure it had bases at Zurich, Frankfurt, Antwerp and Liège, but since 4 April it has run long-haul capacity out of Brussels again, leading to positive results. François says Africa remains the “stronghold” of freight activities with a yearly tonnage of more than 38,000 tonnes and accounts for about 70 per cent of volumes. The remainder is generated on transatlantic routes (New York, Washington and, Toronto), while in Europe, its courier-business is growing, due to a fast ramp service. As for specific cargo types, François notes pharmaceuticals, perishables and

courier shipments are growing fastest. François says at the start of 2017, it will receive a 10th long-haul aircraft an Airbus A330-200, helping it enlarge its freight activity: “At present no decision has been taken about the new destination - we are looking at two possible scenarios: Mumbai in India or Lagos and Libreville.” The next aim François notes is to evolve from “simply filling belly capacity” to becoming “a reliable partner offering transport solutions to its customers”. The carrier has aligned its cargo strategy with the passenger business after reviewing its departmental set-up. François says: “In the past, cargo was perceived as the cherry on the cake, with the objective to fill the remaining belly space. We aim at developing our cargo activity to a second core business near the passenger airline. The new set-up of our cargo activities allows a more holistic management of freight.”

Ruud the main man for K + N

KUEHNE + NAGEL (K + N) has appointed Yngve Ruud as a new member of the management board from 1 October 2016 – to take on the role as head of Airfreight Logistics. He succeeds Tim Scharwath who will leave the company – in the course of the next year. Ruud has been part of the K + N Group since 1990. In 2013, he was appointed regional manager for Western Europe, K + N’s largest regional organisation. As head of K + N North West Europe, he was responsible for the business activities in Denmark, Finland, Ireland, Norway, Sweden and the UK from 2011 to 2013. K + N chairman of the board of directors, Dr. Joerg Wolle says: ”We are very pleased that, in a very short time, we were able to appoint an experienced executive from our own ranks to the management board. Based on his proven logistics expertise, in his new role as head of global airfreight, Yngve Ruud will set the course to reach our ambitious goals, thus continuing our success story in airfreight.

CEIV aim for EuroAirport

EUROAIRPORT is to implement the International Air Transport Association’s (IATA) Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification programme. The Swiss gateway will work to achieve it in co-operation with stakeholders operating at the gateway. This certification it says will help reinforce EuroAirport’s position as one of the major airports handling pharmaceutical shipments in Europe. Swissport, Fiege, Swiss WorldCargo, Worldwide Flight Services and Fischer Road Cargo will participate in the programme. IATA’s head of cargo, Glyn Hughes says: “Since Basel has the world’s highest density of successful life science companies, IATA welcomes the decision of EuroAirport Basel-Mulhouse Freiburg to adopt IATA’s global certification program CEIV Pharma as the main standard for transporting pharmaceuticals.” The process will start in June 2016 with most participating companies set to gain certification by the end of the year.

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Airfreight network launched focusing on expertise

new airfreight network has taken-off aiming to drive air cargo expertise and buying power across the supply chain. Neutral Air Partner was founded by a group of air cargo entrepreneurs, sharing a goal of creating an innovative platform of air cargo specialists to serve the logistics industry. The network says as a representative of the only network focusing on “advanced airfreight” it believes it offers to the air cargo supply chain from air cargo consolidators to master loaders from GSAs to wholesalers, from charters brokers to express service firms, and commodity brokers – advantages a more

generic logistics network cannot provide. Airline partners so far include AirBridgeCargo and Etihad Cargo and chief executive officer and founder, Christos Spyrou (pictured) feels the industry has lost its identity as far as specialisation and industry expertise is concerned. He says: “Our ambition is to become the world’s most powerful grouping of independent air cargo architects, we accommodate the future needs of air cargo professionals and those of general freight and logistics providers, who are aiming to take their air cargo business to the next level. “Our members are by invite-only and are defined and filtered by specialisation and airline, trade lane, commodity expertise. Those invited have a commanding local presence, a proven track record in air cargo operations and will have been visited and screened for their services quality and financial status.”

Benefits of the network, Spyrou says, are global volume incentive agreements with carriers and suppliers, global airline agreements and IT tools, while technology, innovation and tailor-made cargo community tools are at the heart of the network. Neutral Air Partner head of aviation and airline cargo management, Paul Woolley says: “We are not just a network facilitator, one of our prime objectives is to engage airlines, GSAs, express wholesalers, charter brokers and carriers, to take an active role within our group.” The network is holding an Air Cargo Summit from 12-14 June in Shanghai (China), which takes place before and during Air Cargo China, where Neutral Air Partner will be an exhibitor from 14-16 June. Neutral Air Partner will hold its first members’ meeting in Abu Dhabi, in the United Arab Emirates from 25-28 September this year.

NEWS WEEK WorldNews DHL EXPRESS is to triple its operations at Calgary International Airport (YYC) as the German express freight firm is to be the first and anchor tenant as YYC’s new cargo facility. Phase II of YYC’s facility will add 100,000 square feet of warehouse space, raising space to more than 3.2 million square feet – part of YYC’s focused Global Logistics Park activities. DHL Express will take almost 38,000 square feet of space. A UPS MD-11 Freighter’s nose gear collapsed late in the evening at Seoul’s Incheon International Airport on 6 June. The UPS service had flown to Seoul from Anchorage in Alaska. All four crewmembers evacuated by using the slide on the front left door. No injuries were reported.

Jettainer all set for Shanghai

UNIT load device (ULD) management company, Jettainer, will be showcasing its latest container improvements in the ‘garden of innovations’ at the Air Cargo China tradeshow in Shanghai from 14 – 16 June. Jettainer will be focusing on lightweight ULDs and enhancements to its IT systems. It explains the lightweight ULDs will reduce fuel costs and emissions for airlines. The IT upgrades will focus on software and accessibility on mobile devices as well as integration of a decision support system. Jettainer head of marketing and PR, Martin Kraemer says: “With a large range of new developments, we want to convince other airlines of the benefits of outsourcing their ULD management. Many companies are not yet aware of this concept or its cost- saving potential. Therefore we decided on an innovative concept exhibit to get more publicity for what we have to offer.” Kraemer adds Jettainer will also be announcing a new client and additional co-operation partner at Air Cargo China, taking place at the Shanghai New International Expo Centre.

CHEP wins Air Austral ULD deal

FRENCH carrier Air Austral, headquartered on Réunion Island, has awarded a five-year unit load device (ULD) management contract to CHEP Aerospace Solutions. Air Austral operates a widebody aircraft fleet of three Boeing 777, and took delivery of its first 787-8 Dreamliner in May 2016. Air Austral says it has chosen CHEP’s pooling model to drive efficiencies, reduce its costs, and benefit from the increased fuel and CO2 savings made possible with CHEP’s lightweight containers. Air Austral’s vice president of ground operations and security, Jean-Jacques Roy says: “Our partnership with CHEP provides us with immediate cost savings as we don’t have to buy ULDs for our new Dreamliners. “Due to the seasonality of our flights and peak periods in our schedule we appreciate that we can flexibly adapt the ULD inventory in our stations and only pay for the units we use as well as being able to generate additional cargo revenue opportunities due to the weight savings of CHEP’s lightweight containers.” CHEP Aerospace Solutions president, Dr. Ludwig Bertsch explains Air Austral is a perfect fit for its network.

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NEWSWEEK Joint venture partnership expanded

IATA AGM sees pertinent issues raised

DELTA Cargo and Air France-KLM Cargo are further cementing their relationship within the North Atlantic Joint Venture (NAJV) by transitioning responsibility for sales and customer service in France and Germany to Air France-KLM. Effective 1 June, Air France-KLM Cargo became responsible for all sales activities, bookings and enquiries for Delta Cargo in France and Germany. The move follows the transition of Delta Cargo responsibilities to Air France-KLM Cargo in Belgium last month, under the one roof strategy. The airlines’ customers will benefit from easier single drop-off and collection points as well as an extensive route network. Delta Cargo revenue management and sales development managing director, Kristin Colvile says the carriers will provide custom-

THE International Air Transport Association (IATA) has urged governments to repatriate airline revenues, with $5 billion of funding blocked, mostly in Venezuela and Nigeria. At IATA’s annual general meeting (AGM) in Dublin from 1-3 June, director general and chief executive officer (CEO), Tony Tyler called on lawmakers to respect agreements allowing airlines to repatriate revenues. Venezuela is blocking $3.8 billion and only one request to repatriate funds has been approved so far in 2016. Nigeria is blocking $591 million since the demand for foreign currency outpaced supply and the banks could not cope from the second half of 2015. Tyler says: “Air connectivity is vital to all economies. The airline industry is a competitive business operating on thin margins. So the efficient repatriation of revenues is critical for airlines to be able to play their role as a catalyst for economic activity. It is not reasonable to expect airlines to invest and operate in nations where they cannot efficiently collect payment for their services.” The other top five countries blocking funds are Sudan at $360 million, Egypt at $291 million and Angola at $237 million. Tyler says some of the countries are suffering from economic challenges, primarily due to falling oil revenue, but says air connectivity is vital if they want to grow. IATA has also revised its 2016 financial outlook upwards to $39.4 billion, due to airlines improving efficiency and low oil prices, after a better than expected result in 2015. The association says this follows

ers greater peace of mind for re-protection across the entire JV network and more flexibility and convenience with a one-stop shop for all their cargo needs. Air France-KLM Martinair Cargo vice president for France, DOM-TOM and Africa, Jean-Jacques Castillo adds: “Air France, KLM, Alitalia and Delta Cargo are proud to permanently find new, innovative solutions for the benefit of their customers and to anticipate their expectations.” Both began the initiative at Paris Charles de Gaulle Airport in February 2015.

improvements in 2015, where profits were revised upwards to $35.3 billion, with North America performing most strongly. The industry has been helped by low oil prices, which averaged $54 a barrel in 2015, and are expected to average $45 this year. Tyler says: “Lower oil prices are certainly helping—though tempered by hedging and exchange rates. In fact, we are probably nearing the peak of the positive stimulus from lower prices. Performance, however, is being bolstered by the hard work of airlines.” However, cargo is continuing to struggle with slow growth and overcapacity caused by more widebody aircraft entering fleets to cater for passenger demand. Cargo yields are expected to fall by eight per cent in 2016 and revenue is predicted to drop to $49.6 billion from $52.8 billion in 2015. At the AGM, IATA also unanimously adopted a resolution denouncing terrorism and calls to intensify cooperation among governments to keep aviation secure. Tyler says: “The foundation stone of security has been rocked by tragedy. In the last twelve months, terrorists have laid claim to atrocities involving Metrojet 9268, Daallo 159, and at Brussels Airport.” He believes airlines have to work with airports and other key stakeholders to counter the risk of terror threats and governments also needs to collaborate, as well as share intelligence. Alexandre de Juniac (right) has been confirmed to succeed Tony Tyler as director general and CEO of IATA, and Willie Walsh will be chairman of the board of governors.

New cargo station for Lufthansa Cargo

ufthansa Cargo will open a station at Paderborn-Lippstadt Airport on 15 June, which will truck goods to Frankfurt Airport under an LH flight number. It will initially handle consignments of standard freight, express and hazardous materials, which will be handled, sealed and transported to Lufthansa Cargo’s Frankfurt hub. The Paderborn station will be open from Wednesday to Friday from 06.00h to 22.00h. Lufthansa Cargo regional director of sales and freight handling, Ulla Kuntze says: “We are delighted to be drawing closer to the strong, medium-sized corporate structure of the region. Our new service in Paderborn contributes to the further acceleration of imports and exports at the business location of Eastern Westphalia. “The environment also benefits from the new freight handling options at Paderborn-Lippstadt

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Airport because bundled consignments can now be transported to our hub.” Paderborn-Lippstadt chief executive officer, Dr Marc Cezanne says: “We see great development potential for air cargo at the airport. In Lufthansa Cargo, we have gained a first-class partner and are delighted to be part of the branch network of the world’s leading cargo airline.”

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CARGO GATEWAY AMSTERDAM

Pharma the main focus for AF-KL-MP at Schiphol

ir France KLM Martinair Cargo (AF-KL-MP) has proved its commitment to pharmaceuticals by gaining International Air Transport Association (IATA) Center of Excellence for Independent Validators (CEIV) certification at multiple locations, director of pharma, Renate de Walle tells Air Cargo Week (ACW). The group is certified for handling operations at Amsterdam Airport Schiphol and Paris Charles de Gaulle Airport, as well as for both Air France and KLM airline operations. De Walle says certification made AF-KL-MP improve its hubs and processes, and shippers are increasingly expecting it. De Walle says: “It proves to our customers that we have the right level of quality embedded in our products and processes. “It also shows that AF-KL-MP, being the first major airline group to achieve the certification

for multiple locations, considers alignment in the supply chain as very important and is actively involved in setting the standard.” She adds: “Furthermore, the IATA CEIV

Pharma certification challenged ourselves to further improve our hub and airline facilities and processes. We clearly notice that the certification provides value in doing business; shippers have started to demand certification as a prerequisite for doing business.” To further show its commitment to pharmaceuticals, AF-KL-MP has joined Pharma Gateway Amsterdam, set up by the Amsterdam Airport Schiphol logistics community. The programme is designed to create a certified track from shipper to consignee involving

airlines, handlers, hauliers and logistics service providers, all to be IATA CEIV certified. So far, Worldwide Flight Services, dnata, Swissport, De Jong Special Services, D.J. Middelkoop & Zn, Jan de Rijk Logistics, IJS Global/GEFCO, VCK Logistics, Yusen Logistics and Cyberfreight have joined AF-KL-MP as members of Pharma Gateway Amsterdam. Explaining to ACW why AF-KL-MP joined the programme, de Walle tells ACW: “The prime objective of Pharma Gateway Amsterdam (PGA) is to create a ‘closed’ pharma chain at the Amsterdam Airport Schiphol, further developing Schiphol’s pharma proposition. Schiphol is already one of Europe’s largest gateways for pharma traffic. “PGA aims to support a certified and standardised track from the shipper, all the way to the consignee. By joining the PGA programme, we actively engage in setting the quality standard for airlines and – other partners in the supply chain at Amsterdam Airport Schiphol.”

More work needed on China Southern link-up

AIR FRANCE KLM MARTINAIR CARGO (AFKL-MP) remains committed to its strategic network partnership with China Southern Cargo (above) despite unexpected technical issues, AF-KL-MP vice president alliances, Joël Riouallon tells Air Cargo Week. The partnership was signed on 15 September 2015 in a ceremony in Guangzhou, China by the then AF-KL-MP executive vice president, Bram Graeber, and China Southern Cargo senior vice president, Zhao Fengsheng. Both airlines are members of the SkyTeam Cargo alliance. The partnership is designed to give customers access to China Southern’s extensive Asia Pacific network and AF-KLMP’s coverage on European, African and trans-Atlantic routes. The first stage of the partnership involved

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using each other’s ground handling facilities and later involve cooperating on express and mail premium products to cater for ever growing demand for e-commerce between Europe and Asia. So far the partnership has not quite lived up to expectations, mainly due to problems with IT systems. Riouallon explains: “The co-operation willingness and the commercial needs are still there and growing, but the project has to face unexpected technical issues especially on IT side where AFKL is in the middle of migrating to a new inventory and booking system. “Some workarounds are in place but the full implementation of the project is expected only after the complete migration early next year.”

CARGO GATEWAY AMSTERDAM

Healthcare market remains strong for Yusen

usen Logistics is seeing strong growth in pharmaceuticals and healthcare, though general cargo exports have fallen, branch manager for Amsterdam Airport Schiphol and deputy general manager air freight forwarding Benelux, Etienne Vesseur (pictured below) tells Air Cargo Week (ACW). He says Yusen Logistics remains “cautiously positive” about how business about how business has been going in Amsterdam this year. Imports from China have been growing strongly though exports are down. “Compared to the same period in 2015 we have noted a growth in Import volumes, mainly from China, of around 18 per cent. On the Exports side however we have seen a reduction in volume of around 17 per cent.” For the rest of the year, Vesseur explains to ACW: “For the rest of 2016 we foresee further growth of imports flows mainly from the East-Asia, South-Asia and Oceania regions. With regard to the export volumes, we focus on further growth of pharma and healthcare business.” Pharmaceuticals are proving very important for Yusen in Amsterdam, having opened its Good Distribution Practices (GDP) compliant ‘Pharma Gateway’ and joining the Amsterdam Airport Schiphol programme, ‘Pharma Gateway Amsterdam’, to make the entire chain International Air Transport Association (IATA) Center of Excellence for Independent Validators (CEIV) certified. Yusen Logistics was one of the companies recruited for the opening of the programme, and is hoping to be IATA CEIV certified later this year. Yusen Logistics made healthcare logistics a strategic focus a number of years ago, and Vesseur believes this was a good choice, having opened its GDP compliant gateway. The company is working on making all operations in the Benelux region, covering

air, ocean and road freight, GDP certified, as Vesseur describes it “in order to be able to offer the best possible secured global pharma supply chains within the Yusen Logistics European Phar-

maceutical superhighway system, covering air, ocean and road freight.” Vesseur explains to ACW: “We have been able to provide solutions for many existing as well as new customers from the healthcare sector. “Opening our GDP compliant Yusen Pharma Gateway Amsterdam in September 2015 has further reinforced this. “In order to be able to offer our customers the best possible service in pharma Airfreight Logistics we have now taken the next step by starting the of IATA CEIV Pharma certification process.” Describing the Schiphol programme, Vesseur says: “In the pharma supply chains it is of great importance that all parties involved act on the same quality levels. “With the introduction of the pharma Gateway project including the start of the IATA CEIV pharma certification process, Schiphol Cargo takes quality excellence to the next level.” “The Pharma Gateway Amsterdam, together with the extensive global network of direct destinations and a highly committed Customs Service further underline the importance of Schiphol as European Gateway for customers in the pharmaceutical industry worldwide.”

Schiphol not concerned by Chinese slowdown

Amsterdam Airport Schiphol is not getting too concerned about the slowdown in Chinese economic growth and will remain an attractive hub for Chinese airlines, head of cargo, Jonas van Stekelenburg (pictured) says. The airport says Asia has done surprisingly well this year and is expected to continue to improve despite concerns about the slowdown in Chinese economic growth. Van Stekelenburg says: “Asia has shown surprisingly strong performance in 2016 all things considered and we are optimistic for similar results as we approach the close of Q2.” “When you consider all the worries and warnings coming out of the Chinese economy, we are happy to remain stable and report slight growth. Developments with our Chinese carriers report similar results regarding their flow in and out of Schiphol.” E-commerce is increasing mail and parcel shipments both ways between Europe and China: “Interestingly, we have also seen a significant increase in mail and parcel shipments, inbound and outbound, very much related to the fulfillment by Amazon model as well as other developments in e-commerce in recent years.” Schiphol is looking at making its pharmaceutical offering more attractive, having launched ‘Pharma Gateway Amsterdam’, with the aim of making the International Air Transport Association (IATA) Center of Excellence for Independent Validators (CEIV) in Pharmaceutical Logistics certified. Van Stekelenburg says: “We are all responsible for ensuring our processes adhere to these strict standards we have established for ourselves. In combination with IATA’s CEIV training and certification by all at Schiphol, we expect to see Pharma increase to more than the current six per cent of our current volume.”

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CARGO GATEWAY MUNICH

Asia and China in particular key focuses for Munich

hina and Asia as a whole remain the most vital trade lanes for Munich Airport for both bellyhold and freighter-only segments. One of the Bavarian gateways key carriers is HNA Group airline Yangtze River Express (pictured), which operates five-weekly flights to the Chinese cities of Tianjin and Shanghai operated by a Boeing 744 Freighter. Munich Airport director of traffic development for cargo, Markus Heinelt (pictured) explains the carrier moves predominantly large volume and heavy cargo payloads, mostly main deck cargo. China and the Asian region are key part of the airport’s future strategy, he explains: “China and Asia in general continue to be in our focus for further progress in the belly freight and the freight-only segments.”

Backed by good growth to/from Asia, Munich continues to grow its volumes and in the first five months of 2016 volumes reached 135,266 tonnes, a year-on-year (YOY) increase of 6.8 per cent compared to 2015. Heinelt says this result exceeds the estimates and positions Munich again among the top major German airports in regard to cargo growth. From January to May 2016 surged by 3.7 per cent, whereas exports grew by 4.9 per cent, while transit tonnage (truck/by air or by air/truck) recorded a double-digit growth during this period. Freighters driving expansion at Munich other than Yangtze, include AirBridgeCargo Airlines, DHL, FedEx, TNT, Cargolux Airlines and UPS. On the bellyhold side the likes of

Lufthansa, Emirates, Qatar Airways, Etihad Airways, Singapore Airlines, All Nippon Airways, Air China and US carriers United Airlines and American Airlines. Heinelt says the most important lanes are the US, China, Japan and India – either served by non-stop bellyhold or freighter flights from Munich or transit flights via Middle East or other hubs. He says more routes are to be added and Lufthansa has launched a regular service to Denver and Delta introduced a Detroit service, while Emirates added a third frequency to Dubai. Meanwhile, Heinelt notes Condor will station one Boeing 767 aircraft offering interesting cargo routes to Halifax, Havanna, Windhoek, and Mombasa, adding: “We expect further growth in the freight-only segment - through new routes or additional frequencies of existing airline clients.”

Third runway

The building of a third runway is crucial for growth and having an additional runway in Germany is only logistically possible at Munich, Heinelt says and it is awaiting approval for the scheme. He explains: “It is important to further strengthen Munich’s role as passenger and cargo hub. With increased capacities Munich will be well prepared for additional growth in the long-haul segment. “Then, more belly capacities will certainly have positive influence also on a cargo growth, especially since Munich’s catchment area is considered one of Europe’s strongest cargo markets.” Munich is planning further developments and already has concrete requests from top logistic companies as well as cargo airlines, which have demands for additional infrastructure space. Heinelt says: “The more increase we register in the belly and freight-only segments the higher the requirements of our clients will be - regarding special cargo. We definitely want to operate pro-actively together with our cargo clients.”

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Cargo through Munich is vital for Southern Germany and the region of Bavaria, famous for its economic power, innovations and home to leading industries, such as high-tech, automotive, medical and mechanical engineering, bio-tech, life science and others. Heinelt says it has a strong export and import oriented industries, which needs efficient airport structures with worldwide connections. He notes: “30 per cent by value of all goods transported overseas are handled by airfreight. The larger the belly and main deck capacities the more attractive Munich Airport becomes for the cargo industry. “This is also reflected by the current trucking flows. For example, we have noted an increase in the share of transit cargo when it comes to sending to Munich, which are being trucked to other final destinations.

Competitive advantage

“Or the other way round, export deliveries are being increasingly trucked to Munich and depart from here on international flights. We are content to see a big change compared to the past where the tonnage from the greater Munich area was mainly trucked to other cargo airports.” He feels Munich offers two decisive competitive advantages - a strong industry and economic center on the one hand and on the other hand cargo infrastructures, which are tailor-made to the needs of logistic companies and airlines. This Heinelt believes offers air cargo operators “unrivalled” processing times, as it results in substantial cost benefits as compared with other airports. But there is challenges to stay in front of nearby rival European airports, but Heinelt is positive about the future: “Germany has the strongest economy with the largest cargo volumes in the European Union. “Therefore, the great challenge in the future will be that cargo traffic does not shift to other countries as a result of bi-lateral air transportation treaties and/or alliances.”

CARGO GATEWAY MUNICH

Lufthansa Cargo reaping rewards of China lanes

he Chinese cities of Shanghai and Beijing along with Atlanta via Frankfurt are the major export trade lanes driving business for Lufthansa Cargo from Munich. The carrier’s director of handling at Munich, Angelika Kreil (pictured) explains to Air Cargo Week that of the cargo handled, by far largest part of airfreight moving via Munich is to be seen in the consolidation business within its standard product. Kreil also notes: “The second largest share of our freight is moved as express service. When it comes to special freight, we have a high share of temperature sensitive shipments. Dangerous goods is also a major product that we offer via Munich.” Last year, as well as the first months of 2016 were very good in terms of tonnage performance for Lufthansa, with significant growth rates. Kriel says load factors excluding Munich, are slightly above inbound load factors while import and export volumes are balanced and account for approximately 25 per cent of tonnage. She adds that around 75 per cent of tonnage is transit, but notes the air cargo market situation remains challenging in Munich. From the gateway it flies to 28 long haul destinations (varying between summer and winter) with a fleet of Airbus A340-600s and A330s. In Europe and Germany it serves 99 scheduled destinations with Airbus A320 family, Embraer 195 and CRJ 900 aircraft and road feeder services to 35 destinations.

Kriel says Munich is the second largest hub within the Lufthansa Cargo network and it handles around 245,000 tonnes of freight per year. “Besides having a local export share of around 10-12 per cent, a large part of our tonnage is transit freight. Besides Frankfurt, Munich is the only station that offers an extensive direct intercontinental uplift and can therefore be considered the second most important station within Germany,” Kriel says. A third runway is set to be built at Munich and Kriel says it is needed in the long run to ensure the future viability of Munich Airport, while it may also contribute to future cargo growth at its Munich hub. Kriel also explains: “Of course, we always strive for the best possible service for our customers and thus encourage the airport to focus even more on cargo infrastructure development, for

example with more distinct facilities for temperature sensitive goods and other types of special cargo.” Munich will remain a key cog in the strategy Kriel says, as it offers “excellent growth perspectives” and it can operate fast from the hub due to short distances between different parts of the supply chain while it enjoys a very good co-operation with forwarders, ground handling agents, airlines and the airport.

All about cars for Cargolux

MUNICH AIRPORT is the perfect fit for Cargolux Airlines as its main target market is the automotive industry. The Bavarian capital is home to BMW and Audi, and the carrier introduced services connecting Atlanta (US) to Munich (MUC) as part of a strategic decision to diversity its service out of the US gateway. The carrier tells Air Cargo Week: “Cargolux introduced services that connect Atlanta (ATL) to Munich to diversify its service offering from ATL, partly on customer request and also to enable us to have a dedicated service for the auto industry (BMW). We connect ATL to MUC, before returning to our hub in Luxembourg. With that, our focus is set on imports into MUC. Export from MUC either go on this flight or on our daily road feeder service.” Cargolux operates a main-deck cargo capacities on its Boeing 747 Freighter fleet and remains one of the few cargo carriers operating 747s with nose-loading capabilities across the Atlantic. Munich suits Cargolux and was a natural extension of other German services that connect with Luxembourg, mainly through road feeder services from major hubs in Germany. However, Cargolux does not foresee it expanding frequencies out of Munich from the once a week service it operates now on a Monday, but is more than happy with the gateway as it delivers a good service and it is quite content with future possibilities and opportunities out of the hub. By operating out of Munich it can offer the shortest, quickest connection for customers, while another advantage is - the need to truck freight can be limited to a minimum. Cargolux is the largest foreign cargo carrier in Germany and says its weekly service to Munich offers a dedicated service to the automotive industry. The carrier notes: “Cargolux is known for its flexibility and will to go the extra mile for its customers, so we are open to opportunities and will watch the markets closely. We will operate to any destination that makes economic sense. Time will tell.”

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ACW 13 JUNE 2016

CHINA

Boeing appoints Bruns in China

hina is one of the most buoyant markets for Boeing as Chinese carriers continue to order various aircraft models and particularly passenger-to-freighter conversions to meet domestic e-commerce demands. And the US aircraft manufacturer has now appointed a new Boeing China president in the shape of company veteran and experienced John Bruns, who will take on the role from 1 July. He will be based in Beijing. He succeeds Ian Thomas, who is leaving Boeing in July for a senior role with a technology company based in California. Bruns, will serve as Boeing’s senior in-country executive and lead company-wide activities and be responsible for expanding Boeing’s local presence, for managing business partnerships, government affairs, and corporate citizenship. He will also develop and implement Boeing’s China strategy focused on new growth and productivity initiatives and relationships with customers and stakeholders in this key market. Boeing International president, Marc Allen says: “John is wellversed in every aspect of our China business and well-known by our Chinese stakeholders thanks to his stellar experience in the Chinese aviation sector over the past two-and-a-half decades. “John’s leadership will carry on Boeing’s 40-plus year tradition of success in China, one of the world’s most dynamic markets for commercial aircraft.” Prior to this appointment, Bruns served as senior sales director for Northeast Asia, Boeing Commercial Airplanes. He joined McDonnell Douglas in 1986 and worked in engineering test and evaluation. In 1990, he was assigned to the McDonnell Douglas China Program Office in Long Beach, and moved to Beijing in 1994 as deputy to the president of McDonnell Douglas/China. After the merger between Boeing and McDonnell Douglas

in 1997, Bruns joined the Boeing Commercial Airplanes sales organisation and led numerous successful aircraft sales campaigns with Chinese airlines and leasing companies. Bruns was assigned to Beijing for a second time from 2007 to 2015. Boeing forecasts China will need 6,330 new aircraft worth more than $950 billion over the next 20 years. This demand will make China Boeing’s largest commercial customer. Last year, China became the first country outside the US to take delivery of more than 1,000 Boeing aircraft.

MOU signed and sealed YCH Group has signed a three-year memorandum of understanding (MOU) with the Chongqing Banan District Government, Chongqing ASEAN International Logistics, and Y3 Technologies. The MOU aims to establish Chongqing as ASEAN’s logistics hub in China, and will include logistics and trucking services, consolidation or deconsolidation of goods and IT platforms to support these services beyond Laos and Vietnam, to the rest of ASEAN. Chongqing Banan District Government vice-director, Zhang Chun Ping says Chongqing is a hub for road logistics in China and the project will leverage on the strengths of all companies involved. The YCH Group will be in charge of operations of bases in Vietnam, Laos and other ASEAN countries and trade goods collection and distribution in China. Chongqing ASEAN International Logistics will focus on ASEAN logistics in Western China provinces, ASEAN trade in goods collection and distribution, and Chongqing ASEAN Highway shuttle operations. Chongqing Banan District Government will oversee coordinating with port offices, customs, quarantine and other government departments that support policies. Y3 Technologies will fovus on providing platform solutions, including a road logistics information platform for planning, design, development and build. YCH West China region general manager, Kwek Hwai Wee says YCH Group is committed to promoting indepth co-operation between Chongqing and the ASEAN region, and promoting “development of the southwest market.”

HNA shows interest in Avianca

CHINA’s HNA Group has expressed interest in acquiring Avianca Holdings and Avianca Brasil, according to the Reuters news agency and other media reports. Member companies under HNA Aviation include Grand China Airlines, Hainan Airlines, Tianjin Airlines, Lucky Air, West Air, Yangtze River Express, my Cargo, and Ghana AWA Airlines. Avianca Holdings and Avianca Brasil are reportedly working with investment banks to explore options, and have also attracted interest from US operators. Brazil has been suffering its worst recession since the 1930s but there are a wealth of opportunities to grow routes networks and air cargo across South America. HNA recently acquired air cargo handler Swissport and Irish aircraft leasing company Avolon, and agreed in November to pay $450 million for a 23.7 per cent stake in Azul SA, Brazil’s third-largest airline. However, in a filing on Friday, 3 June, Avianca denied it is negotiating with firms and says it has signed no agreements, but is taking advice from a investment bank.

ACW 13 JUNE 2016

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