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The weekly newspaper for air cargo professionals No. 1,076

13 April 2020

Pull your weight for good causes!

INSIDE

Istanbul Airport says ‘Teşekkür ederim’ after first year

G’DAY SINGAPORE MOU

AUSTRALIAN Border Force (ABF) commissioner Michael Outram, countersigned a Memorandum of Understanding (MOU) ...

stanbul Airport says: “Thank You in these challenging times!” The COVID-19 pandemic has changed everyday life rapidly, leaving large parts of the world in unprecedented shock. “That is why Istanbul Airport would like to say thank you wholeheartedly to everyone who has accompanied us up to this point. One year ago, the transfer of operations from Atatürk Airport to Istanbul Airport, which became known as the ‘Big Bang’, was successfully carried out and Istanbul Airport went fully operational,” said the airport. The Big Bang was a giant operation, unprecedented in aviation history. In under two days, 47,300 tonnes of equipment, spanning 33 football pitches, was transferred from Atatürk to Istanbul Airport. More than 5,000 trucks were used on the 45 km between the two airports, the longest airport transfer distance ever.

Without incident On April 6 2019, all airlines were in full operation and Istanbul Airport was working flawlessly – achieved without incident. Due to the execution of the Big Bang, modelled by an extensive Operational Readiness and Airport Transfer (ORAT) procedure, airlines continued their service at Istanbul Airport. On April 6 at 14:00, the first flight ever assigned with the code “IST” took off from Istanbul Airport.

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ATLAS AIR’S CRITICAL SUPPORT

Cargo seat bags for the pax cabin

etherlands-based safety products company Trip & Co has recently developed a solution that will enable airlines using passenger cabins for air cargo transportation to increase safety, efficiency and ease. The worldwide air travel ban as a result of the Corona pandemic has significantly reduced the number of passenger flights and threatened to produce a shortage of air cargo capacity.

Since 2019, Trip & Co has been developing a solution for cargo transportation in passenger aircraft cabins: the Cargo Seat Bag and Cargo Seat Net.

Corona pandemic It has reached the market in the middle of the Corona pandemic. Together, Bag and Net fixate, stabilise, secure and protect cargo and crew during

flight. Tijmen Koster, CEO of Trip & Co said: “There is no need to remove passenger seats, allowing for less conversion time before an aircraft can operate in its new role. “Also, there is hardly any conversion costs to restoring operation as a passenger aircraft. “In addition, there is no need to source used and/or wrong-sized materials such as not-fitting cardboard boxes,

stretched straps et cetera.” Trip & Co was founded in 1890 as a supplier of steel wire, rope and pulley blocks for the shipping and mercantile industries. For more than a quarter of a century, Trip & Co has been producing various cargo products. In collaboration with Dutch flag-carrrier KLM, Trip & Co invented the first generation of insulated air cargo covers in use today.

ATLAS Air’s commitment to the fight against Coronavirus continues, including co-ordination with the US President’s Coronavirus Task Force, the ... PAGE 3 EU MUST ACT NOW!

THE stakeholder associations representing Europe’s aviation industry unite in calling on the EU institutions and Member States to provide quick ... PAGE 6

IT WAS BAD, AND IS GETTING WORSE

COVID-19 ‘raised its ugly head’ faster and faster in the air cargo industry in March as global cargo volumes fell by 23% versus the same four ... PAGE 7

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Rainer Wittenfeld joins LUG senior team RAINER Wittenfeld has been appointed co-director of LUG air cargo handling GmbH, supporting Patrick Tschirch in his responsibilities. Wittenfeld will continue to hold his position as managing director of the perishable centre at Frankfurt Airport but will also be responsible for all operational and administrative issues for LUG. “Our company has grown considerably in recent years, and so have the challenges. “With our independently operating network units in Frankfurt, Munich and Hamburg, as well as our share in the Perishable Centre and our real estate holdings at Frankfurt Airport, we have broadened our scope.

Customer Base “Our customer base has also expanded. LUG has been handling freight for Delta Cargo at the Frankfurt hub since the beginning of the year. AERONAUTICAL Engineers, Inc. (AEI) has announced that KF Aerospace is adding a second modification line to support AEI freighter conversion programmes. KF Aerospace began converting freighters for AEI in February 2017 and is currently the sole Canadian-based authorised AEI Conversion Centre. The current and foreseeable market demand for AEI freighters is driving the need for additional production line capacity. KF Aerospace has a long history of performing passen-

ACW 13 APRIL 2020

“The American airline has been our customer in Munich for over five years. In addition, strong freight carriers such as Korean Air and Emirates are among our long-standing clients. “We had to strengthen the management team so that we can generate more thrust for the further expansion of our services and infrastructure and also achieve the ambitious goals that we have set ourselves. I am very pleased to have Rainer Wittenfeld on board,” explains Tschirch. Wittenfeld adds: “I am happy to take on the additional responsibility as a member of the management team at LUG aircargo handling. “I have known the company and Patrik Tschirch for many years. In the past, we have worked together extremely well. Now we will collaborate even more closely. “I am convinced that together we will be able to expand the existing business and operate even more successfully in the long term.”

ger-to-freighter modifications and is well-versed in the modification of AEI’s B737-400SF. AEI and KF Aerospace are looking to start B737-800SF conversions at the facility perhaps as early as the end of 2020. AEI has three additional authorised Conversion Centre worldwide, which include Commercial Jet in Miami, Florida, Commercial Jet Services in Dothan, Alabama and STAECO in Shandong Province, PRC.

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Australian Border Force signs MOU with Singapore

AUSTRALIAN Border Force (ABF) commissioner Michael Outram, (above) countersigned a Memorandum of Understanding (MOU) on the Trade Facilitation with the Singapore government. Singapore’s director-general of customs, Ho Chee Pong, and chief executive officer of the Infocomm Media Development Authority, Tan Kiet also signed the MOU. The agreement will allow ABF and Singapore Customs to trial the digital exchange of trade documentation and to explore how our trade single windows can be connected to facilitate customs data exchange. “This MOU will support Australia’s efforts to make trade digital, seamless and secure,” commissioner Outram commented. “A secure and efficient trading environment is essential to supporting Australia’s economic prosperity.”

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22/01/2020 15:32

www.ceruleanaviation.com

Advertorial

The Real Alternative For Cargo

Air Cargo is Taking Off at Greenville-Spartanburg International Airport Greenville-Spartanburg International Airport (GSP) is becoming the airport of choice for fast and efficient handling of specialized, time-sensitive cargo shipments. Since 2015, cargo volume increased by 91.8%; from 29,875 tons in 2015 to 57,209 tons in 2019. Carriers are finding that unlike traditional gateway airports, GSP enjoys an abundance of airspace and airfield capacity, short taxi times, and uncongested arrival and departure patterns. With an 11,001-foot runway, GSP can support the world’s largest aircraft and offer easy access to global networks and freight hubs around the world.

GSP Serves a Vibrant, Growing Region GSP is centrally located between Atlanta, Georgia and Charlotte, North Carolina in a 10-county region called Upstate South Carolina (SC). This area is business-friendly and a magnet for foreign investment. Nearly 500 international companies from over 30 nations now call the Upstate region home. Notable companies include BMW Manufacturing, Michelin North America, Adidas, Bosch, Fujifilm, Mitsubishi Polyester Film, and many others.

International and domestic companies are equally finding that Upstate SC is open for business. Offering well-educated and highly trained employees and a population in excess of 1.5 million people, companies are finding Upstate SC provides fertile ground in which to grow. Since 2010, the region has announced more than $15 billion in capital investment and more than 43,000 new jobs. The Upstate SC region has accounted for approximately 38% of the state’s new capital investment, and 34% of the state’s new job announcements.

Location, Location, Location GSP is easily accessible from the region’s superior roadway system. U.S. Interstates 85 and 26 provide east-west and north-south access to all points in the southeastern U.S. Ample rail lines allow product to move from points across the nation to GSP. In addition, an Inland Port located directly adjacent to the airport provides shippers access via rail to the Port of Charleston, a deep-water port in Charleston, SC.

Cerulean Aviation Having a superior location and abundant facilities is good, but having the ability to also provide ramp, ground handling, warehouse and fueling services through one entity is even better! Cerulean Aviation provides customers an all-in-one option for cargo handling. These efficiencies have allowed the airport to effectively handle thousands of air cargo operations in support of OEMs and tier suppliers worldwide in recent years. With Cerulean’s experience and competitive pricing, shippers and carriers know their shipments are in good hands. Through close coordination with on-site U.S. Customs and Border Protection officials, Cerulean is often able to reduce cargo on-airport times to levels not possible at other gateway airports.

GSP Offers a Solution for Your Unique Shipments. GSP is currently the only airport in North or South Carolina offering scheduled non-stop international cargo service. Boeing 747 flights regularly travel between GSP and Europe in support of local manufacturers. Charter flights serving destinations across the globe are also common. In 2019, GSP handled 57,209 tons of cargo valued at $3.46 billion (USD). This was an increase in value of 38.5% over the previous year. The same analysis ranks GSP 27th among US airports for total trade value and 26th by total cargo weight. The airport’s top imports and exports include motor vehicles, civilian aircraft, vehicle parts, medical instruments, navigational equipment, and electric board panels and switches. GSP’s top trading partners are Germany, Mexico, Malaysia, Hungary, and Canada. Unique shipments have become commonplace at GSP. In September 2018, Cerulean provided ground support for the world’s largest civilian equestrian airlift in conjunction with the FEI World Equestrian Games. Over 550 horses were transported to GSP from all over the world to compete in competitions taking place at the nearby Tryon International Equestrian Center located in North Carolina.

New Air Cargo Facility Accommodates Growth To accommodate the significant growth in cargo volume, GSP opened a new $33 million Air Cargo Facility in September 2019. The 110,000 square foot facility offers state-of-the-art handling capabilities, a 17-acre ramp, and parking for up to three 747-8 aircraft simultaneously.

GSP International Airport is Your Efficient Alternative If you are looking for an alternative to the delays and hassle offered by other gateway airports, try the Southeast U.S.’s convenient alternative airport, Greenville-Spartanburg International Airport.

Contact: Cerulean Commercial Aviation, Greenville-Spartanburg International Airport (GSP), 3090 Gateway Drive, Greer, SC 29651 T: +001 864-848-6226, E: cargosales@ceruleanaviation.com

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17/03/2020 09:47

COVID-19 crisis as it unfolds ...

BIFA welcomes UK government support THE trade association that represents the companies that handle the supply chains for much of the UK’s visible international exports has welcomed the news that exporters are going to get additional support from the government. The British International Freight Association (BIFA) welcomes the additional support that the Department for International Trade (DIT) is making available to 160,000 UK exporters and international investors. BIFA director general, Robert Keen says: “We understand that UK businesses are now eligible to secure export insurance cover to major international markets, in addition to export finance. “We also understand that DIT is ready to provide assistance with Customs authorities to ensure smooth clearance of businesses’ products, and to offer advice

on intellectual property and other issues with business continuity. These are the sort of initiatives that are welcome news for BIFA members, which as freight forwarders, are responsible for the logistics services that underpin much of Britain’s visible domestic and international trade.” The DIT says that UK businesses will now be eligible to secure export insurance cover to markets including the EU, US, Japan, Australia, New Zealand, Canada, Iceland, Norway and Switzerland with immediate effect, following UK Export Finance expanding the scope of its Export Insurance Policy (EXIP). Keen added: “If UK exporters are protected, that should have a knock-on effect on the freight forwarders that many exporters rely upon to provide logistics services.”

Boeing extends temporary CUBA-MIAMI FLIGHTS Puget Sound suspension SUSPENDED BOEING is extending the temporary suspension of production operations at all Puget Sound area and Moses Lake sites until further notice. These actions are being taken in light of the company’s continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state. During the suspension, the company will continue to implement additional health and safety measures at its facilities to protect employees. These include new visual cues to encourage physical distancing, more frequent and thorough cleaning of work and common areas. “The health and safety of our employees, their families and our communities is our shared priority,” said Boeing Commercial Airplanes president and CEO Stan Deal. “We will take this time to continue to listen to our incredible team and assess applicable government direction.”

FOLLOWING the request to the White House and the Federal Aviation Administration from Carlos Giminez, Miami-Dade County Mayor, expressing concerns of COVID-19-positive passengers entering the US from Cuba, the Cuban government has ceased all international flights from April 2. “I am pleased that the Cuban government has responded to pressure from the United States to suspend all of its international flights, which included daily flights arriving in Miami-Dade County,” said Mayor Gimenez.

Atlas Air provides critical support in the fight against Coronavirus ATLAS Air’s commitment to the fight against Coronavirus continues, including co-ordination with the US President’s Coronavirus Task Force, the Federal Emergency Management Agency (FEMA), Flexport.org’s Frontline Responders Fund, country governments and global companies around the world. “Air cargo is essential to the global fight against Coronavirus, and we are proud to support the efforts of companies and agencies across the public and private sectors to deliver life-saving supplies to where they are needed the most,” said John Dietrich, president and CEO, Atlas Air. Recent efforts saw Atlas Air support the White House’s FEMA-funded Project Airbridge, for several charters to multiple destinations in the US. On Sunday, March 29, Atlas Air operated the first flight for Project Airbridge from Shanghai, China into JFK International Airport.

CEVA Logistics supports huge NHS delivery

FOLLOWING cancellation of the air cargo China 2020 event in Shanghai, the Air Cargo Week World Air Cargo Awards Gala Dinner is also cancelled. Voting for all categories in the World Air Cargo Awards still continues up to and including April 30.

WIZZ GETS GREENER WIZZ Air has continued to operate flights between China and Hungary to deliver vital medical equipment ordered by the Hungarian government. Due to such flight restrictions and disruptions, Wizz Air has noted a significant change in their CO2 emissions for the month of March. At 55 grammes, CO2 emissions in grammes per passenger/km for the month of March were 3.4% lower. Total CO2 emissions in tonnes year-on-year decreased from 253,629 in March 2019 to 163,813 in March 2020.

The flight carried 130,000 N-95 masks; nearly 1.8 million surgical masks and gowns; more than 10.3 million gloves; and more than 70,000 thermometers. On April 2, Atlas Air operated a dedicated charter containing PPE headed for medical systems in the San Francisco Bay area. The shipment, originating in Shanghai, contained approximately 4.5 million face masks, 121,300 surgical gowns and 16,000 hazmat suits. Atlas Air operated a 747-400F filled with PPE equipment to people in Spain, donated by one of its longtime customers, on March 23, 2020. Airlink Support: Polar Air Cargo, a subsidiary of Atlas Air Worldwide, worked with Airlink to organise seven tonnes of humanitarian relief—respirator masks, surgical masks, isolation gowns and more— on a flight from Los Angeles to Shanghai on March 18, 2020.

SUPPORTING the UK Government’s initiative to bring all UK healthcare distribution under one umbrella during the COVID-19 crisis, CEVA Logistics has brought in shipments bound for the NHS (National Health Service) on a specialist flight from Shanghai to London. Supporting the work of the charitable

Virgin Foundation, a Virgin Atlantic B787-9 fully loaded with PPE (Personal Protection Equipment), virus testing tubes, goggles and ventilator parts landed at Heathrow Airport. CEVA’s teams in the UK and Shanghai worked together to bring almost 1,100 cartons of supplies on the special flight. Altogether there were 12,600 medical isolation goggles, 500 body bags, 30,000 filters for ventilators, 100,000 aprons, 10,000 sets of scrubs and 7,500 samples tubes. Once unloaded from the 12-hour flight, the cargo transferred onto CEVA Logistics trucks, before distribution to NHS hospitals, surgeries and other facilities including, Guys and St Thomas’ Hospitals Trust in London. Says CEVA’s CEO, Mathieu Friedberg: “These medical supplies and PPE equipment are urgently required to support the work that NHS teams are providing up and down the country during the COVID-19 crisis.“

IATA postpones 2020 AGM THE International Air Transport Association (IATA) has postponed the 76th Annual General Meeting (AGM) and World Air Transport Summit. The event had been scheduled to take place on 22-23 June in Amsterdam. The 76th IATA AGM and World Air Transport Summit will be held when it is both safe and practicable to do so. IATA anticipates that will be in the late third or early fourth quarter of 2020. An announcement will be made when a date is confirmed. “Our members are in the deepest crisis the air transport industry has ever faced.

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With much of the passenger business grounded as part of the global fight to contain the virus, many airlines are in a struggle to remain viable. On the cargo side, airlines are doing whatever they can to keep global supply chains moving with vital shipments, including those for critical medical supplies. We will come together as an industry when the freedom to travel has been restored and we can focus on air transport’s critical role in driving the economic and social recovery from this unprecedented crisis,” said Alexandre de Juniac, IATA’s director general and CEO.

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WORLD AIRPORTS

Schiphol’s green ambitions

s global air freight has dwindled in recent years, Amsterdam Airport Schiphol (AAS) is taking a new approach in 2020 and increasing its focus on sustainability to ensure the future of cargo. The International Air Transport Association (IATA), released data in March that showed demand, measured in cargo tonne kilometres, had decreased by 3.3% in January 2020, compared to figured from the same period in 2019.

In regard to the data, Alexandre de Juniac, IATA’s director general and CEO commented: ”January marked the tenth consecutive month of year-on-year declines in cargo volumes. The air cargo industry started the year on a weak footing. “There was optimism that an easing of US-China trade tensions would give the sector a boost in 2020. But that has been overtaken by the COVID-19 outbreak, which has severely disrupted global supply chains, although it did not have a major impact on January’s cargo performance. Tough times are ahead.” In 2019, a weaker global air cargo market

affected AAS’ figures, as total cargo volume for 2019 declined by 9% to 1.57 million tonnes compared to 2018. Full freighter volume fell by 13.2% to 0.85 million tonnes partially due to an 11.2% fall in air transport movements (ATM), while belly cargo volumes dropped 2.3% to 0.72 million tonnes, despite ATMs increasing 1.5%. “The figures in 2019 were in line with our expectations as we continue to face full freighter slot challenges, on top of a weakening of the global air cargo market,” said Maaike van der Windt, director aviation marketing, cargo and customer experience at AAS. “Operating in a slot constrained environment is challenging and it is having an impact on our results. Our main priority is to maintain full freighters and we are looking into a more structural solution as full freighter flights are critical for our intercontinental destinations,” said van der Windt. A key element of this is to further expand collaboration in the cargo community to develop even smarter and greener freight operations. “We continue to focus on working together as a community and are focusing on data and digitalization in order to be ready for the years to come in which our ambition is to be a high quality and sustainable airport,” van der Windt explained. “Sustainability is fundamental for the future success of Amsterdam Airport Schiphol and with the revision of the Smart Cargo Mainport Program (SCMP), plus the support of our partners, we are confident we can reach our goal of becoming the smartest and most sustainable cargo hub in Europe.”

Pandemic closes LHR runway

LONDON Heathrow has closed one of its runways as air traffic continues to fall globally amid the Coronavirus pandemic. The London hub will operate its landings and takeoffs from one strip to “increase resilience and safety for staff, passengers and cargo” during the pandemic. LHR has two runways and will alternate which one they keep open on a weekly basis, a spokesman said. The airport added: “Although we are seeing significantly fewer flights at the moment, Heathrow will remain open so that we can continue to play a crucial role in helping to secure vital medical goods and food for the nation during this unprecedented epidemic.”

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Meanwhile, British Airways has suspended all flights to and from London Gatwick, the UK’s second busiest airport, as demand drastically drops amidst the pandemic. BA is continuing to fly from its Heathrow hub but will be running a considerably reduced schedule, moving all Terminal 3 flights to Terminal 5. BA’s move follows London Gatwick’s temporary closure of its North Terminal. The airport’s will only be in use between 14:00 and 22:00 hours, but will stay open for emergency landing outside of this timeframe. SINCE Amazon has started to put down roots at Leipzip Halle Airport in Germany as preparatory earthworks begin for their new cargo hall. The 20,000 sq m cargo hall will be built on the southern side of the airport site next to the existing World Cargo Centre and will improve operational processes in the region for the eCommerce giants. Construction work will start after the official permits have been obtained, which are planned to be finished later in the year. The project will create more than 200 jobs in the Leipzig community.

AIR CHARTER AIRLINES

COVID-19 is driving rising demand for project cargo airfreight lift IN today’s challenging situation, global logistics is experiencing a growing deficit in freight capacity across all modes of transportation.

irfreight, in particular, is in high demand within the project logistics sector. deugro, a company of deugro group, is satisfying this demand with an increasing number of air charters for critical equipment. The Coronavirus pandemic is affecting schedules, available freight capacity and freight rates of shipping lines, airlines, haulers and rail companies all over the world. Because complex process chains and a considerable amount of investments are affected, the projects logistics business, above all, is facing a host of challenges. Out-of-gauge and heavy lift project shipments require special transportation equipment and engineering work, which limits the number of options for transportation and alternative solutions. In light of this, deugro’s head of air chartering, Pavel Kuznetsov, sees rising demand for air freight, especially on the full/part-chartering sector: “The airfreight division of deugro is currently arranging a growing number of air charters for the transportation of critical equipment in order to minimise delays and disruptions in the supply chain. “Our team, which includes in-house transport engineers, is busy and in close contact with clients and airlines to design solutions for transportation of oversized and heavy weight equipment by air.”

are well positioned here. “We are not only able to provide the operational service; we are also able to provide renegotiation between all parties if necessary, including local authorities, to find the best possible solution for everyone,” adds Pavel Kuznetsov. A good example of how such projects can be executed is the shipment of 140 tonnes of time-critical industrial equipment from Houston, US to the north of Mozambique by a combination of AN124 and B-747F aircraft, deugro handled earlier this year. After detailed feasibility studies, all the equipment was flown directly to Nacala Airport, whereby an AN-124 ramp aircraft was used to carry 100 tonnes of equipment from Houston into Nacala and the remaining 40 tonnes were flown by a more economic B-747 freighter to Johannesburg, where it was repacked and then safely flown by the same AN-124 to Nacala.

Long-time relationship

deugro has a long-time relationship with all the relevant charter airlines, which gives the company access to several hundred aircraft of different types. These range from small B-737 freighter versions to massive Antonov-225 capable of carrying up to 250 tonnes of cargo. Due to size and weight restrictions, not all types of cargo can be transported by air. In the current situation, it has become essential to combine what is currently available, and to undertake 360-degree planning across all capacity and transportation modes. Besides utilizing empty ferry legs, combining scheduled and charter services or using a mix of several aircraft types, air transportation combinations with ocean, road and rail is a highly viable solution. “With almost 100 years of expertise in all modes of transportation, and due to decades of close relationships with all relevant airlines, shipping lines, haulers and rail companies, we

UK regional carrier and air charter airline Loganair is working closely with the Scottish Ambulance Service (SAS) to provide air ambulance capability - as the Service faces unprecedented challenges fom Covid-19. A Loganair Twin Otter aircraft has been converted into an additional air ambulance aircraft, allowing it carry Epishuttle isolation pods for the safe carriage of Covid-19 patients by air. More of these pods have been acquired and will be in service soon. With that in mind, Loganair is also now working to convert a larger Saab 340 aircraft, capable of operating into all Highlands and Islands airports with the exception of Barra. Loganair’s CEO Jonathan Hinkles said: “The team effort to make this happen, moving from a concept to an operational solution in just a week, has been absolutely incredible. Between the SAS and Loganair teams, the concept, testing and training has all taken place and we’re also grateful for the support from the CAA in progressing this project.”

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ACW 13 APRIL 2020

ADVERTO

A global gateway at KLIA

Artist impression of the future state of ASEAN eCommerce Logistics Hub development by Caini

LIA Aeropolis DFTZ Park, anchored by Malaysia Airports JV with Cainiao Network (Alibaba’s logistics arm) to develop Alibaba’s first Regional eWTP fulfilment hub outside of China. This fully automated, high tech Regional eFulfilment Hub aims to achieve T+3 day delivery (B2C) within the region. Operations are scheduled to commence in Q3, 2020 and is expected to be the catalyst to propel the air cargo and logistics industry for Malaysia, towards volume growth and enhanced service levels.

Malaysia Airports, the world’s 12th busiest international airport, lays out exciting plans to expand their KL International (KLIA) base. This includes realising the KLIA Aeropolis vision, of which the master-plan spans up to Year 2055. The operator of 39 airports in Malaysia and Sabiha Gokcen International Airport in Istanbul, now serves more than 120 carriers with 1 million tonnes of cargo. The existing cargo village at KLIA has more than 1.5 million tonnes handling capacity and capabilities for A380 and B747-8 freighter aircraft. With such a large handling capacity, KLIA’s busy cargo sector sees 17 cargo airlines operating over 112 freighter flights a week with 27 direct freighter connectivity. Due to their extraordinary reach, interline opportunities are opened up to emerging Southeast Asian markets and the expansion of the Aeropolis complex will see these statistics increase impressively over the coming years.

Good trade routes

KLIA Concept Masterplan

KLIA’s location lends itself to good trade routes within the ASEAN region as well as the Oceania Region but the local infrastructure also supports the large loads of the airport. The close proximity to Port Klang (national sea-port gateway), just 45 minutes away, grouped with the five major expressways and over 300km of integrated rail network, make the site a well-connected hub by land, sea and air. Malaysia’s close proximity to Japan and Singapore, two of the world’s largest export markets make KLIA a prime position geographically for trade routes. In 2019, China, Singapore and USA made up the top percentage of countries from which Malaysia receives imports: 20.7% ($42 billion), 10.5% ($22 billion) and 8.1% ($17 billion) respectively. Top goods imported include electrical and

ERTORIAL

by Cainiao KLIA Aeropolis – a 30:70 joint venture between Malaysia Airports & Cainiao Network electronic products at 28.9% ($59 billion) and chemicals and chemical products at 9.6% ($20 billion).

Increased cargo capacity

Malaysia has a fast-growing middle-class population, as shown by the Department of Statistics’ Household and Basic Income Survey of 2016, which indicates 20% of the Malaysian population to be in the top income group and 40% in the middle-income group. This is an increase of around 6.5% from the 2002 survey. An increase of middle-class means an increase in demand for imported goods, especially electronic goods. KLIA’s innovative new facilities and infrastructure allows the country to cope with an increase in cargo imports in the future. The same rings true for Malaysia’s exporters, China, Singapore and USA. In December 2019, exports from Malaysia unexpectedly surged by 2.7% from 2018 to MYR 86.4 billion ($20.8 billion). To ease the load and develop the export and import markets, KLIA Aeropolis sets to transform KLIA and global cargo transportation by 2055, increasing the cargo capacity of the airport to a 3.5 million tonnes.

Cargo innovation

KLIA Aeropolis will revolutionise the traditional air transportation hub to be a ‘vibrant and dynamic intermodal hub with complete synergistic ecosystem that will elevate the future of Malaysian aviation.’ KLIA’s Aeropolis will be the flagship airport city for Malaysia Airports and will no doubt be a model for other international airports. As well as the creation of the Aeropolis, Malaysia Airports has already

started to implement cargo and logistics development at KLIA. These developments include a ready state ecosystem with free commercial zone hosting top 4 worldwide integrators and 20 out of the top 25 global freight forwarders. KLIA Aeropolis, which is aligned to Malaysia’s national blueprint (under the leadership of the Ministry Of Transport), will see dramatic developments in the next 10 years. As the regional e-commerce and logistics hub for the ASEAN region, KLIA will see a 100% increase in air cargo volume, and in freighter flights, as well as increasing the airline connectivity and improving route profitability. These advancements will not only benefit Malaysia Airports, but also bring the nation closer to realising the vision of making Malaysia the preferred logistics gateway to ASEAN.

For further enquiries contact: Malaysia Airports Holdings Berhad Level 3, KL Main Terminal Building International Airport 64000 KLIA, Sepang, Selangor Darul Ehsan, Malaysia

General line +603-87764949 Fax +603-87764040 Email marketing@malaysiaairports.com.my Website www.kliaaeropolis.com

www.malaysiaairports.com.my

EUROPEAN CARGO

Europe’s aviation industry is facing an unprecedented liquidity crisis the European Union must act now! The stakeholder associations representing Europe’s aviation industry unite in calling on the EU institutions and Member States to provide quick and targeted support to an industry that has come to a complete halt and is struggling to survive the COVID-19 crisis.

n light of the unprecedented COVID-19 crisis, Europeans are no longer able to travel. Thousands of aircraft in Europe are grounded and airports across the continent have come to a standstill. Sadly enough, the catastrophic effect COVID19 is having on the aviation industry is clearly only at the beginning stages. The organisations representing all stakeholders of the air travel value chain and air transport ecosystem in Europe, including Airlines for Europe (A4E), Airline Catering Association (ACA), Airports Council International (ACI EUROPE), Airport Services Association (ASA), The European Travel Agents’ and Tour Operators’ Associations (ECTAA), European Regions Airline Association (ERA), EU Travel Tech (EUTT) and European Travel Retail Confederation (ETRC), welcome the initiatives of the European Commission. However, better co-ordinated and

ACW 13 APRIL 2020

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proactive actions are urgently required to support the industry and aid in its future recovery, specifically: • Member States must provide financial support as quickly as possible to the whole travel ecosystem. There is currently a cash liquidity issue at every level of the air travel ecosystem. .To face this liquidity crisis, it is crucial that all actors and supporting measures are considered on a non-discriminatory basis. • The current crisis exceeds all foreseeable and manageable expectations. The European Institutions must take all the necessary measures to ensure the short-term financial viability of the travel industry enterprises with the objectives of maintaining a functioning travel industry, protecting employees and consumers alike, and help them to efficiently restore air connectivity and support the re-growth of European economies. • The crisis affects the entire travel ecosystem and coordination is crucial. It is essential to setup an organised consultation procedure, flexible and informal as in the tourism industry, to exchange updated information, address urgent issues and draw up lines for mid and longterm solutions. We welcome the initial actions from the European Commission in targeted areas such as state aid, recognising that entire markets are non-functioning and urgent aid is needed. The aviation sector is a strategically important sector. It must be positioned as a critical enabler of Europe’s economic recovery once the crisis has passed. As a reminder, aviation represents more than 12 million jobs and some €800 billion in European economic activity. That is 3.3% of all employment and 4.1% of all GDP in European countries.

Economic importance

Beyond its economic importance, air transport is a major contributor to the social cohesion and cultural values of Europe. The freedom of movement of goods sits at the core of the European project and would not be a reality without air transport. Europe’s citizens, communities and visitors will see its vibrance restored more rapidly if the air transport sector can quickly recover, once the COVID-19 health crisis has passed. No small part of this depends on governments providing firm supportive measures today.

It was bad, and is getting worse AIR CARGO VOLUMES FELL 23% IN MARCH WITH AN INCREASING SPEED OF DECLINE

OVID-19 ‘raised its ugly head’ faster and faster in the air cargo industry in March as global cargo volumes fell by 23% versus the same four weeks of 2019. The decline in demand accelerated week-on-week throughout March, with the week ending 29 March showing volumes were just half of what was moved in the same seven days of last year, according to the latest air cargo market intelligence from CLIVE Data Services. The ‘dynamic load factor’ for the four-week period of 68% based on both the volume and weight perspectives of cargo flown and capacity available – represented a decrease of 1.5% points versus 2019 but an increase of 3% points versus February. “Sadly, there is no getting away from the overall concerning developments we are

seeing in the global air cargo market, but there is perhaps a little bit of hope to be found in Asia - which was hit first by the outbreak of COVID-19. In previous data, we reported the step-by-step improvement on the Hong Kong to Europe market and this is continuing.

A dash of hope “The reported volumes for the last week of March 2020 were 26% higher than before the Chinese New Year started. If this is sustained, it will at least offer some hope for the rest of the industry of the speed with which air cargo traffic can recover after a very difficult time,” said CLIVE’s managing director, Niall van de Wouw. CLIVE’s first-to-market analysis consolidates data share by a representative group of international airlines operating to all corners of the globe.

Based on both the volume and weight perspectives of the cargo flown and capacity available, it gives the air cargo industry the earliest possible barometer of market performance each month. CLIVE’s ‘dynamic load factor’ analysis refreshes the way air cargo capacity usage is traditionally measured to reflect modern day reality. It is based on the fact that airlines’ cargo capacity nearly always ‘cube out’ before they ‘weigh out’ as a result of an aircraft’s higher capacity density (available kgs per cubic metre) than the average density of the goods moved by air. Consequently, CLIVE says, traditional load factors, which are based only on weight, work to underestimate how full planes really are, and thus work to give a distorted picture of how the industry really is performing in actuality.

TRADEFINDER Airlines

Freight Forwarders

Turkey

Hong Kong

Freight Forwarders USA

aircargoweek.com

ACW 13 APRIL 2020

Pulling for good! I’LL JUST SIT THIS ONE OUT

BRITISH AIRWAYS SETS GUINNESS WORLD RECORDS TITLE FOR BBC’S SPORT RELIEF

ritish Airways’ week of Sport Relief fundraising events last month achieved a Guninness World Records title for the Heaviest Aircraft Pulled Over 100 Metres by a team (mixed), made up of colleagues and sporting celebrities. British Airways’ support for the BBC’s Sport Relief came as part of the airline’s global charity partnership with Comic Relief’s Flying Start, which focuses on helping disadvantaged young people in communities around the world have a better start in life. British Airways employees teamed up with Sport Relief celebrity supporters ‘The Body Coach’ Joe Wicks, presenter Gabby Logan MBE, sports broadcaster Gary Lineker OBE, boxer Nicola Adams OBE, sprinter Iwan Thomas MBE and Paralympic silver medallist Alfie Hewett, who led the charge of a 90-strong team to pull the airline’s brand new A350 over 100m. The aircraft weighed 182.9 tonnes, helping the team beat the current record of 180 tonnes.

Pull together The British Airways aircraft pull was part of a number of sporting activities the airline undertook to fundraise for Sport Relief including flyathons, sky dives and sports matches. The airline pledged to Match Fund up to £100,000 of the funds raised by colleagues. Flying Start has raised £24m over nine years through onboard donations, sponsored events and challenges and helped more than 800,000 people in communities across the British Airways network. Louise Evans, British Airways’ director of communications and sustainability, said: “We’re thrilled to support Sport Relief, which inspires the UK to raise money and take on some of the world’s problems. We’ve got our sports kits on and are taking on a selection of challenges for a whole week, starting with achieving a Guinness World Records title, to help raise money to support people living tough lives in the UK and around the world.” Joe Wicks said: “It was incredible to achieve a Guinness World Records title with British Airways for Sport Relief, which is a great cause. From leading the warm up through to the plane pull itself the support has been fantastic.”

aircargoweek.com