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The weekly newspaper for air cargo professionals Volume: 21

Issue: 15

16 April 2018

ARK drops lawsuit against Port Authority


nimal handling facility The ARK at New York John F Kennedy (JFK) airport has “discontinued” its $65 million lawsuit against the Port Authority of New York and New Jersey (PANYNJ) after the authority made inroads into resolving their issues with third party regulatory bodies, claims Ark founder John J. Cuticelli Jr. In a bulletin from JFK general manager Michael Moran to the airport community, seen by Air Cargo Week, the PANYNJ “will no longer allow airfield access through JFK Vehicle Entry Guard Posts for horses and their transport vehicles including accompanying equipment and personnel.” The Port Authority will require movement of horses at JFK through the ARK at JFK Import Export Center located at Building 78A. All horses entering the US through JFK m must be processed through the ARK, a new purpose-built facility established to conveniently provide all types of animal services. Cuticelli says: “We perceive the Bulletin as a first step by the PANYNJ to resolve the issues identified in our lawsuit, and thus we have discontinued the suit pending the outcome of the Port’s John J. Cuticelli Jr new require-



atc strives to remain a modern company aa cargo expands in france

ments for equine transport.” Cuticelli considers that the lawsuit, which was expected to take up to five years before resolution, was a factor in the PANYNJ’s move as outlined in the Bulletin. He says: “It’s the squeaky wheel that gets the grease.” This is only a part-solution of the dispute that hung on why the Port Authority has continued to use a third-party animal location away from the airport after undertaking to direct all live animals to the privately-owned facility. He says: “It’s more of a ceasefire. We are working towards satisfaction. The Port Authority has made inroads into resolving their issues in relation to third-party regulatory bodies. “The question to be resolved is does the Port Authority have the right to give exclusive rights? They cannot figure it out.” Cuticelli remains unhappy that this move now means horses will only pass through the

ARK and not be quarantined there as initially intended for the facility. Construction work required for this means its services cannot be offered until 16 April. “At the moment we have no horse business, just companion animals going through the facility,” says Cuticelli. In the Bulletin, the Port Authority says: “This new procedure will allow the Port Authority to maintain good order in its livestock handling operations and continue to provide airside access to the horse shipping community in accordance with federal operator requirements, while remaining cognizant of security and safety concerns. “The procedure provides continued access to the ARK’s on-site animal services facility, which follow world-class standards for the humane treatment and care of horses transported through JFK.”

Boeing 787 and the Airbus A350 and A330neo and we thank both manufacturers for their aggressive efforts to earn more of American’s business. In the end, our goal to simplify our fleet made the 787 a more compelling choice.” American Airlines chief financial officer, Derek Kerr adds: “These new replacement air-

craft are consistent with our previous plans for the size of our widebody fleet. “We see significant advantages to carrying common fleet types, including creating less friction in our operation when aircraft swaps are necessary, reducing inventory needs, and creating a more consistent service for customers and team members.” American Airlines has also deferred the delivery of 40 Boeing 737 MAXs previously scheduled to arrive between 2020 and 2022, saying the revised schedule will better align with planned retirements of other narrowbody aircraft.

American Airlines cancels Airbus order and is going with Boeing American Airlines has ordered an additional 47 Boeing 787s and cancelled a major Airbus order originally placed by US Airways. The 47 new widebody aircraft will consist of 22 787-8s and 25 787-9s to begin arriving in 2023. The 787-8s will replace Boeing 767-300s and the 787-9s will replace Airbus A330-300s and older Boeing 777-200s. American Airlines has also cancelled a major order with Airbus for 22 A350s to simplify its fleet. The A350s were ordered by US Airways before being merged with American Airlines. American Airlines president Robert Isom says: “This was a difficult decision between the

van de weg returns to volga-dnepr



60 seconds with pactl’s christian haug


Kansai Airports joins Pharma.Aero Pharma.Aero is continuing to welcome new members with Japanese airport operator Kansai Airports signing up to the organisation. Kansai Airports gained the operating rights of Kansai International Airport and Osaka International Airport from New Kansai International Airport Company on 1 April 2016 and has been working on upgrading infrastructure for pharmaceuticals. In August 2017 the company formed the KIX Pharma Community to undergo International Air Transport Association (IATA) Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) with six companies, Bollore Logistics Japan; CKTS; Hankyu Hanshin Express; JAL Kansai Aircargo System; Mitsubishi Logistics and Yusen Logistics participating. Shingu Hayato of Kansai Airport’s cargo development group aviation sales & marketing department says: “Although Japan is a country with large distribution of pharmaceuticals, quality standards and distribution are not advanced. It is necessary to introduce world standards and raise transportation quality in Japan. “By joining Pharma.Aero, we are working closely with not only our stakeholders, but also other airports and shippers in other areas to improve transportation quality.” 01 16 Apr 2018.indd 1

12/04/2018 13:51

Bangladeshi cargo picks up after UK lifts ban


iman Bangladesh is seeing cargo pick up sharply after a ban on direct flights to Britain was lifted, Binman acting general manager for cargo, Mohd Arif Ullah told Air Cargo Week. UK authorities ended the ban on 12 March, with Biman starting cargo operations to Heathrow two days later. Biman started to move some “17 tonnes of cargo per flight from the first day of operation after the lifting of ban,” says Ullah. Triggered by security concerns, the ban had required all cargo to be rescreened in a third country and had been a blow for Biman’s cargo operations. The airline is now optimistic about the future. Currently 500 to 650 tonnes of cargo transported every day from Dhaka’s Hazrat Shahjalal International Airport (HSIA). Biman has learned from the ban and has taken a number of measures to boost security, including installing a double view scanner in warehouses to satisfy the requirement of logistics and partner carriers as well as the obligation of importing countries, Ullah says. “To establish the strong security proficiency against unauthorised interference the whole Warehouse had been covered with CCTV and security agents,” he told Air Cargo Week. Whilst he is optimistic about the future, Biman does note it is going to bump against the infrastructure limits which hold back

Bangladesh and talks of cargo being at a “maximum” this year. A number of logistics supports such as escorted vehicles, tow tractors and more manpower are essential for smooth cargo operation, said Ullah of Dhaka’s airport. This is part of a broader problem throughout the fast-developing country which lacks modern warehouse, logistics support and skilled manpower and lack of freighter service and dedicated cargo personnel, he adds. Despite this, Biman is planning to strengthen its British and EU cargo presence this year and once its Dreamliners are delivered try and get more cargo from China.

Qatar Airways orders 777 Freighters

Qatar Airways and Boeing have signed a letter of intent to purchase five 777 Freighters valued at $1.7 billion. The letter of intent was signed during a

ceremony attended by Qatari minister of finance and Qatar Airways chairman, His Excellency Ali Sharif Al Emadi; Qatar Airways chief executive, His Excellency Akbar Al Baker and Boeing Commercial Airplanes president and chief executive officer, Kevin McAllister. Al Baker describes the addition of five 777 Freighters as a “significant moment”, saying: “This transaction will be a reinforcement of our confidence in Boeing to continue to deliver an outstanding product that meets our exacting standards.” McAllister adds: “We are proud of our long-standing partnership with Qatar Airways and we value their business and the positive impact on Boeing, our employees, suppliers and communities. The 777 Freighter has a range of 4,900 nautical miles with a payload of 102 tonnes.


FEDEX manage to lose track of a potentially lethal consignment and don’t want to talk about it except to confirm it did arrive at its intended destination eventually.

Red faces, or worse, as FedEx loses track of lethal consignment Vol 2, Issue 18 10 May 1999 FEDEX is to investigate how it failed to keep track of a package containing radioactive iridium on its journey across America from Boston to Mexico at the end of last month. The package in question went missing for 10 days before being located, way off course, at London Stansted airport. A tight-lipped spokesman declined to

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comment as the matter was under investigation. However, he said the package had now been delivered. Press reports said the 90kg package of iridium, lethal on contact, was packed in lead casing. It was correctly labelled and in FAA-approved special packaging, said FedEx. 12/04/2018 12:48

RiverOak submits proposals for Manston


iverOak Strategic Partners has submitted 11,000 pages of proposals and plans to the Planning Inspectorate with the intention of reopening Manston Airport as an airfreight hub. Manston Airport, located in the Thanet district of Kent, has been closed since 15 May 2014. Since then RiverOak has been working on reopening the airport, initially intending to act as the indemnity partner for Thanet District Council to pursue a compulsory purchase order, but is now pursuing a Development Consent Order (DCO). The DCO application includes a full Environmental Statement, a four volume Economic Assessment, detailed plans and drawings of all aspects of the proposals and a full report on the one non-statutory and two statutory consultation exercises, undertaken across 2016, 2017 and 2018, to which over 4,200 responses were received. Copies of the application were despatched by courier to the Planning Inspectorate in Bristol, marking the start of the ‘Acceptance’ stage, which will be followed by a period of up to 28 days for the Planning Inspectorate, on behalf of the Secretary of State to decide whether or not the application meets the standards

WorldNews Swissport has deferred its planned IPO (Initial Public Offering) and listing of its shares on the SIX Swiss Exchange due to current market conditions. The company, a subsidiary of Chinese HNA Group, had announced on January 25, 2018 its intention to seek an IPO.The move comes two weeks after HNA Group abandoned a similar plan for its Swiss airline caterer Gategroup. The Chinese group is heavily indebted and was seeking to reduce that debt with these IPOs.

required to be accepted for examination. RiverOak Strategic Partners director, George Yerrall says: “We have certainly endeavoured to do everything we can to deliver a grounded, detailed and evidence-based application that will meet PINS’ requirements, and I therefore hope and expect that today will mark the start of the next phase of our commitment to reopening Manston Airport and, in doing so, help to deliver the employment and prosperity for East Kent that it so richly deserves.”

Aeronautical Engineers (AEI) has inducted its fifth 11-pallet Boeing 737-400 freighter conversion for Kalitta Charters, to be redelivered in July 2018. The aircraft arrived at Commercial Jet’s Miami facility to commence modification before being returned in the summer. AEI says its 737-400SF is the only passenger to freighter conversion that offers operators 10 full height 88”x125” container positions, achieved by the main deck cargo door’s location, which is about 40” further back than the competition.

Moscow unveils largest Russian cargo terminal

Zodiac and Airbus give cargo class a new meaning

Warning! Drones flying in the warehouse

Moscow Sheremetyevo International airport demonstrated Moscow Cargo, the largest cargo complex in the country, to airlines and cargo forwarders two months after cargo on international flights transitioned to the new facility. The new complex covers an area of 42,300 sq m and a capacity of 380,000 tonnes of cargo. Moscow Cargo general director Vladimir Fedorenko showed guests the capabilities of the new cargo terminal. The construction of the complex was carried out under the long-term development programme of the airport. The terminal handled the first cargo in September 2017; in next two months all cargo operations on domestic flights were successfully moved to the new terminal. Transition of cargo operations on international flights was completed in January 2018. The complex meets international standards of ground cargo handling and exceeds the level of technical equipment at other similar facilities in Russia. The cargo complex is equipped with a system for automated storage and processing, manufactured by Lцdige. Automation level of production processes reaches 60 per cent. The capabilities of the terminal for storing pharma cargo allowed AirBridgeCargo to obtain the IATA CEIV certificate for transportation of pharma cargoes throughout the route network. Considering the significant growth of cargo turnover at Sheremetyevo International airport and the rising demand of cargo airlines, Sheremetyevo plans to handle over 700,000 tonnes of cargo annually by 2024. Moscow Cargo is equipped with seven-level Automatic Storage and Retrieval System (ASRS) that has 3,198 loose/pallet cargo storage locations.

First it was ‘cargo class’ where passengers could exercise on extremely long-haul flights it the cargo hold. Now, designers have come up with a way of making a cargo hold a ‘bedroom in the sky’. Airbus and Zodiac Aerospace have partnered to develop and market lower-deck modules with passenger sleeping berths that would fit inside an aircraft’s cargo compartments. These would offer “new opportunities for additional services to passengers,” say France-based Zodiac. The new passenger modules will be “easily interchangeable” with “regular cargo containers” during a typical turnaround if required. Moreover, the aircraft’s cargo floor and cargo loading system will not be affected at all, as the passenger module will sit directly on it. “This approach to commercial air travel is a step change towards passenger comfort. We have already received very positive feedback from several airlines on our first mockups. We are pleased to partner with Zodiac Aerospace on this project which will introduce a new passenger experience and add value for airlines,” says Airbus cabin and cargo programme head, Geoff Pinner. “We are delighted to work with Airbus on this new and innovative project, which reaffirms our expertise in lower-deck solutions. An improved passenger experience is today a key element of differentiation for airlines,” says Zodiac Aerospace Cabin Branch CEO, Christophe Bernardini. Airlines will initially be able to choose from a catalogue of certified solutions by 2020 on A330 for retrofit and line-fit markets.

Two years of development has created a completely automatic warehouse inventory solution using drones, perfected by Geodis and Delta Drone, which will be operational at the end of 2018. More than 1,000 flight hours in prototype mode across three pilot warehouses were required. The main advantages are the productivity gains generated by performing the inventories outside warehouse operating hours, greater safety at work for the site’s employees, who no longer have to carry out this tedious and sometimes risky task, and a greater reliability in stock-taking. Initially, Geodis will be the exclusive user of this solution in its own warehouses. The solution combines a ground-based robot and a quadcopter drone equipped with four high-definition cameras and indoor geolocation technology.

Quote of the week

“It’s the squeaky wheel that gets the grease.” John J. Cuticelli Jr, founder of The Ark at JFK

AirBridgeCargo record flight provides XLxent service

AirBridgeCargo Airlines (ABC) has carried a record 19 va-Q-tainers XLx on board a single flight for its customer, Biotech & Pharma Logistics (BPL). The high performance passive containers were delivered to Frankfurt ready to load and go on board one of ABC’s Boeing 747-8 Freighter services to their final destination at Moscow Sheremetyevo.

The dedicated pharma team monitored each step of the transportation process, starting from priority booking for all 19 containers through to overseeing the loading procedures on both the freighter’s lower and main decks, guaranteeing the exact temperature range required for the delivery, as well as a seamless offloading at ABC’s Sheremetyevo Airport hub.

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3 12/04/2018 12:56

Van de Weg returns to Volga-Dnepr LATAM extends European network


obert van de Weg has rejoined Volga-Dnepr as vice president for sales and marketing, a year after leaving the company to pursue other interests. In his new role, which will be based in London, van de Weg will embrace the commercial activities of the group’s airlines, AirBridgeCargo Airlines, Volga-Dnepr Airlines and Atran Airlines, with responsibility to strengthen and develop the Group’s ‘cargo supermarket’, which utilises scheduled and charter services. He previously spent three years in senior roles with the group before leaving in 2017 to pursue personal interests but continued to provide advisory and consulting services to the group. Van de Weg says it is a “pleasure” to be back and the decision to return stems from both sides taking a “well-considered and balanced view of what we want to achieve”. He comments: “I have missed the action that

Robert van de Weg comes from being part of a growing and ambitious group of cargo airlines on a day-to-day basis and look forward to engaging fully in the sales and marketing activities of the Group, supporting our customers with more service options as well as progressing ongoing projects to a new level.”

LATAM Cargo is extending its freighter network in Europe with flights to Brussels and Madrid, doubling the number of European cargo flights from two to four cities. The airline group says the decision came in response to growing demand and the need to provide alternatives to rising congestion levels at European airports. Brussels was chosen to absorb the high traffic of pharmaceutical products, distinguished by LATAM Cargo undergoing the IATA CEIV Pharma certification and the Belgian airport was the first in the world where stakeholders of the cargo community received the certificate in a joint approach. The airline plans to carry other products in addition to pharmaceutical on the twice-weekly flights to the region. Madrid was chosen due to an increase in the transportation of traditional industrial

products, as well as other services like parcel delivery, e-commerce and textiles. The weekly flight connecting Madrid with Sao Paulo in Brazil and Santiago in Chile adds capacity to LATAM’s belly network across Europe. LATAM Cargo senior commercial director for Europe, Guido Henke says: “We are very optimistic about our new direct freight routes from Brussels and Madrid. And our customers’ enthusiastic response has led us to consider the possibility of increasing our current schedule.”

Namibia and AA strike GSSA deals Air Namibia has awarded Strike Aviation Group the cargo GSSA contract for the European Union and the United Kingdom. The Namibian flag carrier operates daily flights between Frankfurt and Windhoek using an Airbus A330-200 with a capacity of 12 tonnes. Strike Aviation president, Frank Ziesemer says: “We are very proud to become the Cargo Representative for Air Namibia and to further strengthen the position of our network throughout Europe. “Air Namibia is the niche and the hidden beauty of Africa and we will open the niche to a strong hold between the European Countries and Southern Africa.” Strike Aviation has a network of offices within Europe, which connect the flights of Air Namibia by road feeder services to and from Frankfurt. Strike Aviation has also been appointed cargo GSSA for American Airlines’ direct

flights from Prague to Philadelphia. The services depart Prague at 11.30am using a Boeing 767-300, arriving in Philadelphia, Pennsylvania at 3.10pm. Strike will also act as the offline cargo GSSA for Bulgaria, Romania and Slovakia, which will be connected with road feeder services to Prague and other European gateways. Strike Aviation commercial manager for Europe, Julia Ostwaldt says: “The additional capacity supports the growth of American Airlines from the European continent to their worldwide network, we are happy to be a part of it.”

Finnair bags Central Europe GSSA Finnair Cargo has appointed R-BAG Group as its general sales and service agent (GSSA) for five central European countries. From 1 May 2018, R-BAG will provide cargo sales, marketing, customer service, administration and operational support across Poland, the Czech Republic, Hungary, Slovenia and Austria. The airline says the agreement is a timely development as Finnair continues to expand its capacity and frequencies across Europe and Asia. Finnair Cargo sales director for Europe, Anja Poyhonen says: “R-BAG has many capa-

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bilities that are essential to support Finnair´s growth. R-BAG´s local market knowledge, their network and good connections to the pharma industry will provide a good ground for strong support to our customers.” R-BAG managing director, Eva Van Baaren-Horvath says: “Finnair Group worldwide network with focus on Asian destinations operated by fleet of brand new A-350, new COOL Nordic Cargo Hub and cargo products tailor-made to match requirements of every customer are perfect solutionfor customers looking for reliable and high quality services.” 11/04/2018 16:22

Jota takes delivery of first BAE 146-300


ota Aviation has taken delivery of the first of four BAE 146-300 QT Freighter aircraft in a multi-million dollar deal to increase its market share. The aircraft, registered G-JOTE, will enter service for the London Southend Airport-based company on 1 June 2018 with an additional three joining in late 2018, to be made available for long or short term contracts, ACMI for other cargo operators or ad hoc charters operating under Jota’s AOC. Jota Aviation says it is looking to develop a wider customer base in both contract and ad hoc markets, targeting sectors including courier, mail distribution, automotive, spares manufacturing and livestock. The aircraft are larger -300 variants, originally built for freight use, and they have a maximum payload of 13.5 tonnes and a useable volume of over 100 cubic metres. Head of commercial Mike Sessions says the

Turkey invests in logistics infrastructure

aircraft fills the gap between ATR72 and older BAE ATPs and the Boeing 737. He says: “Offering these unique freighter aircraft to the market, we are able to deliver a load that is more voluminous, heavier, faster and more efficient than that offered by smaller aviation cargo companies.” The 146-300QT is noise compliant and able to operate at most airports at night including smaller regional airports. Jota Aviation chief executive officer, Andy Green describes the delivery as a “very exciting chapter” in Jota’s development, saying: “The palletisation is fully compatible with overnight integrators and postal systems, unlike the QC (Quick Change) variants, previously offered on the market (and not such a popular choice). These offer the perfect option between the turboprops that offer around 50 cubic metres, and the B737-300 that offer 130 cubic metres.”

The Turkish government will invest €19 billion in upgrading infrastructure having set itself the goal of advancing from 34th to 15th on the World Bank’s Logistics Performance Index (LPI). The Turkish economy has recovered from the slump in 2016 thanks to growth in foreign trade, with the Turkish logistics sector feeling the effects with increases in turnover of 15-20 per cent and investments to upgrade warehousing and transport capacity. The 12th logitrans trade fair will give attendees the opportunity to network with important players in the logistics sector in the Eurasian region and growth in the local market on 14-16 November 2018. Messe Muenchen member of the management team, Gerhard Gerritzen says that the Turkish government’s announcement that it wants to move up the LPI sends out a clear signal.

Emirates SkyCargo launches AOG product Emirates SkyCargo has launched Emirates AOG to transport aircraft parts quickly across the globe. The product is designed for airlines needing to service ground aircraft by rapidly despatching critical aircraft components unavailable at destination, and the core aim of Emirates AOG is to transport parts on the quickest possible flight connection without compromising on the quality of handling and customer service. Special features of the product include a late cut-off time for cargo acceptance at 05 16 Apr 2018.indd 1

He says: “Being present locally is more important than ever. The logitrans trade fair has developed over the years to become an important institution for establishing business relations between companies based in Turkey, Europe and the Middle East. This is also evident from the increasing numbers of visitors.” More than 150 exhibitors from 24 different companies and 13,700 participants from more than 50 nations attended the logitrans trade fair last year (opening ceremony pictured below.

origin – up to four hours prior to scheduled time of departure for shipments weighing less than 100 kilogrammes; expedited delivery at destination – maximum of 2.5 hours from arrival time of the aircraft; track and race visibility and priority handling. Emirates SkyCargo has also created a unique ‘Must Go’ bag for bulk loading of small AOG shipments, designed in a striking red colour, the bag alerts Emirates SkyCargo staff to the urgent nature of the shipment ensuring dedicated priority handling for the aircraft part in transit.

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Real horse power can be found in the cargo hold


he movement of horses by airfreight has grown as the world’s racing industry has expanded beyond national boundaries to chase ever-increasing prize money. This in turn means there is no shortage of specialised individuals and forwarders with skills to transport these creatures. As well as supporting the international horseracing world, horses are moved by airfreight for two other reasons. Small numbers are moved for breeding or variety preservation efforts. Some are being moved for food purposes. The majority, however, are concerned with horse racing, now a multi-million dollar global industry. The most common, and often the most newsworthy reason, to transport horses is the global horse racing industry. Racehorses fly around the globe in search of prize money, now often worth

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millions. High profile and high prize money race meetings are held on almost every continent, meaning that horses can be raced in North America, Europe, Middle East and Asia all in one race season. When an individual horse is worth millions of dollars, specialist forwarders have come forward to move such livestock with special expertise. Florida-based HE Sutton Forwarding, better known as ‘Tex’ Sutton, is one such forwarder. Rob Clark, president of the company his father co-founded, is a horse-lover who happens to run a freight forwarder. His company leases a dedicated B727 Freighter for the sole purpose of equine transport. This aircraft quickly became dubbed “Air Horse One”. Clark says: “Air Horse One is on a long term ACMI contract with us so it is available anytime

we need to fly. We flew 2,560 head in 2017 and 2018 so far is ahead of that pace slightly. “They can be worth anywhere between $10,000 and up to $10 million. Most are in the tens or hundreds of thousands of dollars.” The forwarders’ USP is that it had developed custom-built portable loading ramps and ramp trucks instead of the traditional scissors lift to move the horse ULDs onto the aircraft. These ‘walk-on’ ramps are unique in the equine air transportation industry. On arrival at the airport by truck, horses are led by professional and hands-on horsemen up the ramp and into the aircraft. Once aboard, they are immediately bedded down in their stall. The reverse takes place upon arrival at the destination. “We have 10 portable loading ramps as trailers and five ramp trucks with the loading ramp built on its chassis positioned around the country’” says Clark. “When we charter into an airport without a dedicated loading ramp, we simply transport one to that location.” The company’s stall system is designed to be durable, lightweight and modular. The flexibility of the stall system allows it to provide for larger horses in a stall and a half and gives the option of flying mares with their foals, as well as weanlings together in a larger box stall.

Individual hayracks and in-flight access to water help keep horses content and occupied throughout their journey. The company has little turnover of staff, which pleases him, he says. “We have very little turnover of our handlers. They really love the work that they do and they tend to stick around. Our longest running groom has been with the company for 38 years. When we do need to hire a horse handler we draw from horsemen who we know in our area. It’s never a problem.” Proud of never having lost a horse in flight, he is equally proud that this remains a family business, started by his father and the late ‘Tex’ Sutton. He says: “It is very important to me to carry on the legacy that Tex Sutton created and I am proud to keep this a family business.” While the transport of horses is a global business, HE Sutton transports horses almost exclusively within the United States. Clark says: “We get inquiries from time to time to charter to more faraway locations. Generally it’s hard to be competitive price-wise since we most likely would have an empty leg one direction or the other and that’s hard to compete with airlines who run overseas routes routinely and have revenue both directions.” 12/04/2018 15:01

CEIV programme extended to cover live animal shipments


he International Air Transport Association (IATA) has launched a new global certification programme to improve the safety and welfare of animals, including horses, travelling by air. The Center of Excellence for Independent Validators in Live Animals Logistics (CEIV Live Animals) programme is designed to increase the level of competency, operations, quality management and professionalism in the handling and transportation of live animals in the airfreight industry while reinforcing training and compliance across the supply chain. Independent validators will conduct training and on-site audits to ensure the animals’ safety and welfare when travelling by air across the world. IATA senior vice president of airport, passenger, cargo and security, Nick Careen says animal owners and shippers rely heavily on airlines to carry the precious cargo, and the air cargo industry has a duty of care to ensure that standards are in place to protect the welfare of animals. He says: “For those shipping live animals the CEIV Live Animals program will provide a reliable quality benchmark. Just as CEIV Pharma helped provide quality standards for temperature sensitive healthcare shipments, the new programme

HORSE TRANSPORTATION Emirates helps racehorses gallop to the finishing line

extends that expertise to the important field of transporting and handling of animals.” Understanding the needs of stakeholders involved in the handling and transportation of animals was key to developing the programme, with Air Canada Cargo and the Heathrow Animal Reception Centre (HARC) playing a key role in the pilot programme. In 2017 400 horses, 16,000 dogs and cats, 200,000 reptiles, 2,000 birds and 28 million fish travelled through the HARC. HARC assistant director for port health and public protection, Robert Quest says: “Ensuring the safety and welfare of these animals is our main priority. So partnering with IATA to develop the CEIV Live Animals program was important to us. We look forward to continuing to work closely with IATA to further enhance the programme and support its worldwide adoption by companies across the supply chain in the pursuit of operational excellence in the handling and transport of live animals by air.” Air Canada Cargo vice president, Tim Strauss says: “Ensuring that animals travel in safe, healthy and humane conditions requires coordination across the supply chain. Air Canada Cargo is delighted to be part of the CEIV Live Animals programme.”

Typical of full-service carriers transporting racehorses is Emirates SkyCargo, which recently moved some of the world’s most highly-rated racehorses to Dubai for the Dubai World Cup Championship, one of the most anticipated and prestigious horse racing events in the world. Some of the leading contenders for the Cup were moved from their home stables to Dubai on Emirates SkyCargo freighters. As well, Emirates SkyCargo transported some of the past champions of the Dubai World Cup including Arrogate in 2017 and California Chrome in 2016. For the third year in a row, in 2018 Emirates SkyCargo is transporting close to 100 horses across continents during the first three legs of one of the world’s leading 07 16 Apr 2018.indd 1

show jumping events- the Longines Global Champions Tour. Show jumping horses were moved in two special charter flights from Mexico City where they took part in the first leg of the Longines Global Champions Tour to Miami. The horses arrived in Miami on March 31 where they were competing in the second round of the Tour. In addition to the horses, each weighing between 600-650 kilograms, while equipment weighing tens of tonnes was also transported as part of the charter. Once done with the competitions at Miami, the horses were flown to Liege and from there to Shanghai on Emirates SkyCargo’s freighters.

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ATC strives to remain a modern company


he whole air cargo industry had a very strong year in 2017, but ATC Aviation managed to beat that by having what chief executive officer Ingo Zimmer (pictured) describes as a “perfect

year”. Not only did ATC benefit from increasing yields and strong demand, particularly in November and December where there was a lack of capacity with cargo being sold at express rates, but tonnage was also very good. Zimmer says that growth out of Europe was around 15 per cent but ATC reported close to 30 per cent. He comments: “We are ahead of the market but we benefitted like everybody else from increased yields so we can say in general it was a fantastic year and the trend continues a bit because express was for the end of the year but

increased yields are staying on a higher level than before 2017.” Yields continue to prove strong though not as high as when express rates were being charged in November and December. “It was a fantastic year and for 2018 we are expecting a similar success.” ATC has new airline customers with more on the way and there is additional capacity. Zimmer says the outlook is good, though it is hard to know what the market will be doing by the end of the year but he predicts that yields will remain on a high level, volumes will increase. At the end of 2017 and start of 2018 a lot of airlines started tender processes, which Zimmer says shows that airlines remain interested in the GSA business. ATC has been busy, receiving two to three tenders every week and though

it will have to wait and see about the outcome, Zimmer remains positive. Zimmer says: “ATC is a network GSA, if the customer is satisfied with your service they will probably give you the contracts in other countries so we are also planning to expand our network.”

Strong network

ATC’s network in Europe is strong, particularly in countries including Switzerland and Germany, where at the former it sees 3-4,000 tonnes a month and the latter where it is about 7-8,000 tonnes a month. The USA is a very strong market for ATC where its 11 stations. In 2017, tonnage was 260,000 tonnes worldwide with Europe up 30 per cent though Zimmer says the USA was a different story. “It is still a market with a lot of pressure on the yields, and the growth is not like Europe.” The Americas will be an important market in the future, with ATC planning significant investments though Zimmer did not want to go into further details at the time of the interview. ATC is a well established company, that was founded in Switzerland in 1971. Zimmer has been with the company for 30 years but both he and ATC are working hard to remain a modern company. “Our secret is that we have the experience and the financial backing. We have a yearly revenue of $350 million. We are financially sound, experienced and we go the extra mile for our customers,” Zimmer explains. ATC is also investing heavily in state of the art IT systems and is in the process of getting a new system developed to the company’s needs. Zimmer says: “The advantage is that all of our branches and our country organisations

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are using the same system. Modern IT makes us competitive because productivity will be increased.”

Investments in verticals

ATC is also investing heavily in sales with verticals, including hiring an asset manager who was doing pharmaceutical sales for one of the major European airlines. “We are going into the verticals. We have dedicated sales for verticals like pharma, perishables and valuables. This is where the benefit for the airline comes from because this is where the yields come from.” It is one thing to gain new contracts, but renewing existing ones is vital for business. ATC has been very successful in this area having served airlines including Ethiopian Airlines for over 20 years. Customers will remain loyal if they are happy with the service. Zimmer comments: “They give us new contracts when we start in other countries because of the service and the experience with us. If you deliver a fair and good service you will expand your network.” As for the future, value added services will be important; ATC has a sister company for trucking, another for data capture to name a few. It can also offering supervisory services of the cargo handling and trucking company. Zimmer explains: “We are involved in many things besides the normal sales reservations. We develop strategies for airlines, new routes, market studies with customers asking for our expertise.” He is confident that ATC has a strong future, saying: “We have the team who are motivated, we’ve got the top management and we do things differently. Even though we have grown over the years it is still a personal service.” 12/04/2018 13:00

ECS breaks records in Asia


he Asian market is booming for ECS Group helped by major contracts with important players in the region, chief executive officer Adrien Thominet (pictured) tells Air Cargo Week. India in particular had a record year because ECS handles Saudia Cargo, which operates to 18 destinations in the country. Thominet says ECS is the largest organisation in India with 18 offices and more than 120 people. He says: “Saudia is the third largest carrier in India and they keep growing their capacity. This operation is giving us a high exposure to the market and a high penetration of the market, which is very good.” ECS has also been busy performing charters working with Saudia to Brasilia for pharmaceutical products. Thominet comments: “India is on a good track for us. We still have a lot of hopes because there will be additional capacity coming for us this year.” The acquisition of AVS, which represents DHL is also proving very important, as DHL is also adding capacity to the market. Thominet says load factors are 100 per cent on the DHL flights in the capacity provided to ECS, making him a very happy man, calling it a “very satisfying set up”. The rest of the Asian market is also performing well with ECS’s partner, AVS, which it purchased in 10 other countries, which

have proved “outstanding” with a 22 per cent increase out of Asia. “No one would complain” he comments. The AVS acquisition has also proved very helpful providing “immediate synergies both ways”, something which Thominet believes is very important after an acquisition. Thominet says: “ECS Group brought to AVS the management contract of Jetstar Asia, which was suddenly a new product for all the network and a few other accounts. Suddenly AVS has almost doubled the production within a day of being acquired by ECS.” AVS also brought connections and contracts to the group thanks to the network. He describes it as a “reciprocal synergy”, paying back the value of the purchase immediately. ECS has grown around the world by acquiring the largest setup in the region, a company with significant market penetration, with Thominet pointing out that it is an “added value”. He says: “Each time that we have an opportunity to bring a carrier over to get a new contract we will have an immediate efficiency because those guys are very well connected to the industry and customers. This is immediately beneficial.” Thominet says that this means that when an airline is selecting ECS as a partner they are guaranteed increased efficiency. Acquisitions are made individually of the strongest players.

GSSAs HAE Group is more than a GSA

With investments in technology, field sales teams and interaction on social media, HAE Group views itself as a GSA plus, according to director for UK & Ireland John Ward (pictured). HAE Group experienced very strong growth in 2017, up 18 per cent on 2016 with new contracts in the Middle East, Africa, the UK and US, with the start of 2018 looking very positive. To remain competitive in the marketplace, companies have to be unique for their customers. Ward says: “We have worked hard to speed up the interaction for the customer and try and grow the number of sales and sales opportunities for our airlines.” He says HAE tries to act as the airline and subscribe to their values while putting their brand first. Ward adds: “Our bookings team also work extended hours to cover different parts of the world to make sure wherever we are representing a carrier an experienced team can look after the airline’s needs.” Developing services is important; HAE has its own software development team and in an ad hoc market, it has sped up the spot pricing process between customer, airline and GSA. Ward explains: “This allows us to deal 09 16 Apr 2018.indd 1

with more enquiries as the market becomes more competitive. It is also more professional than constant emails and creates our own data to share with our airlines or their competitiveness and our market information.” Airlines can also review the quote information through HAE’s Web Portal. HAE still has a field sales team who have access to the portal via tablet and can quote instantly at the customer’s desk. Ward says: “They have all the latest offers and can share real time the very latest that our airlines have to offer.” The use of the media is also important, with Ward saying: “We are also highly active in online marketing, social media and running campaigns on behalf of our carriers’ keeping them in our customer’s consciousness as an option.” Ward sees a key role for GSAs for those offering additional functionality to the traditional ones. He says: “We also see GSAs offering additional services such as handling/screening to their clients so that they can use HAE’s airlines more.” The role of the GSA is to market their carrier to become the option of choice for customers, with Ward summing it up by saying: “The more you can do for the customer the more likely he is to use the GSAs airline is our philosophy.”

ACW 16 APRIL 2018

9 11/04/2018 11:30


France needs digital revolution - and now!


he recent outbreak of strikes in France aside, there is an underlying concern in the country’s aviation industry about a lack of competitiveness compared with other European markets, writes Neil Madden. This has prompted the setting up of a major enquiry into the competiveness of French aviation, led by transport minister Elisabeth Borne. An immediate response from industry groups called for lower costs and taxes that are claimed to weigh heavily on industry profitability. Meanwhile, one industry body is taking matters into its own hands. Air Cargo France Association (ACFA) was formed last year by ten stakeholders operating out of Paris CDG. Members include Air France Cargo, WFS, TLF Overseas and Aeroports de Paris. The initial focus is on three areas: e-freight, cargo handling and expediting, and pharma. The official launch took place on 4 April with an event looking at the impact of e-freight and how well placed is the CDG community to take full advantage of its potential. Armed with a study by consultancy Arthur Little, the group’s members wanted to analyse CDG’s strengths and weaknesses in the face of growing competition from container shipping and compare the airport’s performance against that of Germany’s

Frankfurt, its principal European competitor. Global air freight jumped nine per cent in 2017, but the maritime sector has experienced more sustained growth over the decade, with average annual growth of 3.5 per cent compared with 2.2 per cent for air transport. “Beyond price, the contest between the two modes is being played out on door-to-door transit-times and, in particular, on the time taken to process freight on the ground,” says Mathieu Blondel, partner at Arthur D. Little France. The rise of cross-border e-commerce is one of growth drivers

for airfreight and its suppliers. But it requires substantial investment by all players in the adoption of digital tools and paperless systems. The risk is that if the incumbents do not make this leap, new players could step in. Paperless transactions and Customs procedures presuppose automated ground handling systems to provide efficiency and speed according to Arthur D. Little. The potential is already there in techniques such as the e-AWB, but adoption remains patchy. At the moment, the e-AWB is only used for 45 per cent of global flows while the benefits will become noticeable when this reaches a minimum of 85 percent, Blondel reckoned. He estimated that some parts of the air cargo business could see cost reductions of as much as 30 per cent once its adoption reaches tipping point. The fragmentation of the air cargo chain is one of the reasons for this slow adoption, and the consultant highlighted the relevance of ACFA and the cargo community system CIN France (another ACFA member) to unite the disparate players in the sector. To illustrate the urgency for CDG, the study looked at Frankfurt. General cargo has been declining at CDG for about 10 years, even though its overall cargo has been maintained thanks to the Fedex hub. “Over the same period, general cargo has made progress in Frankfurt, where Fraport is investing in the digitisation of its cargo ecosystem,” he pointed out. Fraport is behind the Fair@link platform and training programmes to accelerate its deployment. The system “helps streamline flows, simplify procedures and share data, and in one year the share of Frankfurt’s cargo using the system increased from 25 to 60 per cent.”

AA Cargo expands in France

American Airlines Cargo had a good year in France during 2017, according to AA Cargo regional sale manager Kathleen Lesage (pictured). “In 2017, we carried over 20 per cent more freight than in 2016,” Lesage tells Air Cargo Week. “During our peak season, we operate roughly 84 flights a week to and from CDG. “Last year was also significant for us because we expanded our summer-long trucking service to serve a greater number of customers by connecting cities not in our direct network with flights to American’s US hubs and, ultimately in Asia and Latin America. New services from Lyon, Toulouse, Bordeaux and Marseilles were set up to serve our seasonal flights from Barcelona to Chicago, rather than trucking from the south of France up to Paris, and this proved very successful.” From CDG, American serves a number of key hubs in the US. But those that did particularly well in terms of French exports were Charlotte, Philadelphia and Raleigh Durham. The outlook for the remainder of 2018 is good, she continues, as customers are reporting that the positive situation in 2017 is continuing into this year. Pharma and aerospace are performing especially well. “Pharma continues on an upward curve and from Paris we have seen particular demand to New York JFK, Philadelphia and Dallas/Fort Worth for both active and passive shipments,” Lesage says. “The difference this year is that there is additional demand for our specialist services, such as the dedicated ExpediteTC, from a number of points in the French provinces.” An additional focus for 2018 is to invest in areas such as training, tools and infrastructure designed to make customer service even more efficient. In February, American officially announced a partnership with IBS Software, which will help modernise the technology platform that supports cargo operations. “The investment in better tools for our global team is a huge step in our ongoing effort to encourage change and modernise,” states Lesage. “Once the additional seasonal services come to an end, in the autumn, we have to be creative and find ways to ensure all our customers’ cargo gets moved as efficiently as always,” she continues. “Along with year-round operations to key US hubs from CDG, we also have four mini export peaks in the winter season — Thanksgiving, Christmas, New Year and Valentine’s Day — that are always very busy for us.”

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ACW 16 APRIL 2018 12/04/2018 13:03


Online Services



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Freight Forwarders

United Kingdom

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United Arab Emirates

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ACW 16 april 2018

11 09/04/2018 16:10


Looking at what people in the air cargo industry are thinking about

Seconds with...

ACW: You are constantly working on improvements of your PVG operations, with a focus on digitisation. How is that coming on? Haug: Last year, we started to roll out easyCargo. It’s our ePlatform and will enable the all PVG airfreight to process paperless cargo handling, along the entire export and import process chain. ACW: China’s middle class is continuously spreading, enabling a growing number to buy sought-after items coming from producers in Europe or North America. Will this lead to a re-alignment process that replaces the decades-long imbalance of goods flown into and out of China? Haug: When I came to China, the airfreight business was still export- heavy. Over the last five years, especially Shanghai but also Beijing, has became more or less in balance, which means full flights in and out. This is not yet the case, yet, when it comes to other locations like Zhengzhou, Chongqing or Chengdu. I think this


With 30 years experience in the airfreight industry in forwarding, airline and ground handling, Christian Haug presently holds the position of vice president of Shanghai Pudong Int’l Airport Cargo Terminal Co., Ltd. He is mainly responsible for production, marketing and sales. Before working for PACTL, he worked for Lufthansa for 27 years in Munich, Frankfurt, New York and Shanghai.

is also just a question of time and China is a very speedy and dynamic market.

ACW: What are prospects for 2018 at PACTL? Haug: Digitisation in regard to our processes and modernisation of our existing infrastructure and IT. Cargo capacity extension at PVG and to further develop and maintain our core business and also look in to added value service for special commodities such as eCommerce, pharma, perishable and dangerous goods. In addition we are also working to develop PACTL into a more international company. ACW: In late 2017, PACTL had some issues regarding customs procedures between Shanghai and Nantong. What were they and have they been resolved? Haug: This is still work-in-progress, but we are also very happy with the local development there in Nantong. We handled a first freighter flight end of last year and the business there is also growing. ACW: What’s the most interesting thing about you that we wouldn’t learn from your resume alone? Haug: I have worked at many different locations, spending a couple of years in the US and China. One thing I learned about myself is that I really like to live and work here in China. I might even say I have found a home here in Shanghai.


ACW: In your time at PACTL, have you visited any other parts of China? Do you have a favourite location in the country?

Haug: I did and I do, but especially during my time with Lufthansa Cargo I travelled a lot within China and also Asia Pacific. China is a huge country and still many places I haven’t seen, but I can say I have been around a lot especially along the east coast, in the north and also west China.

ACW: Was there a culture shock in moving from New York to Shanghai? Did you find any similarities in the business culture? Haug: Not at all, Shanghai is a very modern city at it was not difficult at all. Doing business in China is a bit more straightforward, it’s the right place for someone like me who has a lot of ideas as it is open for new things and change.

ACW: We finish the interview and you step outside the office and find a lottery ticket that ends up winning 10 million RMB. What would you do? Haug: I would use it for the future development of my children. I would keep some to buy a food truck one day (which I actually really plan to do) and drive around and cook together with someone and provide fine food and drinks at many places. ACW: What did you want to be when you grew up? Haug: Many things. My father worked for Seaboard and Flying Tigers airlines and I had often the opportunity to come with him to the airport, go to warehouses and play in the office with the old telex machines and the yellow ticker tape. I always liked the international surrounding and airplanes, I think this is how I found my profession.

Pronounced ching-dow ACW: Coke or Pepsi? Haug: Have to admit it is Coke, but I try to stay away from it as much as I can. ACW: Barbeque or fine dining? Haug: All kind of food, depends on the mood.

ACW: German beer or Tsingtao? Haug: Any kind of beer. I also like British ale and lager. By the way, Tsingtao was founded by Germans!

ACW: What are the best and worst purchases you’ve ever made? Haug: In 49 years of life, I would come up with a long list. What came immediately to my mind was I bought a sport watch four years ago that helped me to get in good shape again. The worst, maybe, was my first packet of cigarettes that made me start smoking when I was young! 12 16 Apr 2018 60 secs.indd 1

11/04/2018 11:43

ACW 16th April 18  
ACW 16th April 18