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08/04/2019 12:48
The weekly newspaper for air cargo professionals No. 1,032
20 May 2019
Hariri is steering Saudia through change
Amazon breaks ground on CVG hub
But unhappy pilots launch campaign over working conditions
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Artist impression of the new hub
s Amazon broke ground on its $1.5 billion Cincinnati/Northern Kentucky International Airport (CVG) air cargo hub, pilots launched an information website and mobile billboard to highlight workplace issues. Ground was broken on 14 May in a ceremony attended by delegates including the founder and CEO of Amazon, Jeff Bezos. The air hub is scheduled to open in 2021 and create more than 2,000 jobs. Sarah Rhoads, director Amazon Air says: “We’re proud to call Kentucky home for our air hub, creating more than 2,000 jobs in this fantastic community.” Matt Bevin, Kentucky governor says: “This massive project at the Cincinnati/Northern Kentucky International Airport will be revolutionary
for the region’s workforce and for our state’s overall economy. We are grateful for Amazon’s long-term commitment to Kentucky, and we are proud to see this momentous new endeavour take flight.” However, the pilots who fly for Amazon and DHL at contracted carriers Atlas Air, Southern Air and Air Transport Service Group (ATSG) subsidiary ABX Air are using the website, pilotsdeservebetter.org and the mobile billboard to call on the carriers to improve working conditions as contract negotiations remain stalled. The pilots are represented by the Airline Professionals Association (APA) Teamsters Local 1224. Captain Robert Kirchner, Atlas Air pilot and executive council chairman for Atlas Air pilots of Teamsters Local 1224 says while the pilots are pleased to see the expansion of partnerships
between carriers and Amazon Air, they are concerned that airline executives are overpromising services. He says: “Amazon’s ground-breaking event at CVG should be cause for celebration but instead all it’s causing is panic. The ground is falling out from underneath our carriers and to prevent disaster at Amazon and its new internal logistics network, Atlas Air and ATSG need to correct high attrition, low pay, and mistreatment of pilots by working with us to settle a fair contract.” The website is a resource for pilots, investors and prospective pilots looking for a career with Atlas Air, Southern Air and ABX Air. It has videos, fact sheets, copies of current union/carrier contracts and more, including updates on negotiations. The mobile billboard will circle the airport in May and raise aware-
ness of the “hollow” promises from Atlas Air and ATSG executives. It asks the questions “Are ATSG and AAWW misleading Amazon on the pilot shortage?” and sends the signal that pilots are ready to strike. Captain Rick Ziebarth, ABX Air pilot and executive council chairman for ABX Air pilots of Teamsters Local 1224 says the contract negotiations have caused so much frustration they have driven pilots to retirement. He says: “It’s been exciting to see ABX take on new business in recent years, but new business combined with a severe retirement problem has caused the work loads of current pilots to strongly intensify without any improvements to working conditions. ABX Air is well aware of its growing retirement problem and can address the issue by ending frustration and fairly negotiating with its pilots.”
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INSIDE ETIHAD FLIES TO SINGAPORE
ETIHAD Cargo has extended its freighter network with the launch of weekly flights from Abu Dhabi to Singapore’s Changi Airport ... PAGE 2
CEIV FRESH FOR CATHAY PACIFIC
CATHAY Pacific has become the first airline in the world to be awarded CEIV Fresh, IATA’s accreditation for perishable cargo handling ... PAGE 3 DOING EMIRATES PROUD
EMIRATES SkyCargo did the group proud in 2018 “with a strong performance in a highly competitive market with weak demand” ... PAGE 4
NOTHING WILL STOP CELEBI
TURKEY has had a tough couple of years with foreign airlines reducing flights and the exchange rate crisis, but Celebi Aviation is still growing ... PAGE 9
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A Day in the Life of Airfreight In ACW’s issue of June 24, we are producing a Cargo Airline Survey in which we will have a ’Day in the Life of Airfreight’ feature. This would cover what happens in airfreight between 00:01 and 23:59 on Wednesday, May 29, 2019 in your location, your timezone. This could include the number of flights handled, cargoes moved, personnel numbers, clients serviced etc. If you are a cargo airline operating on that day and would like to take part in this feature, please contact ACW as soon as possible. The 2018 UKACC chairman John Ward was delighted to hand over a cheque for £18,000 to his chosen charity The Rainbow Trust Children’s Charity, on behalf of the United Kingdom Air Cargo Club. The Club would like thank all their sponsors and members who contributed to this amazing total!
James Graham, editor james.graham@azurainternational.com
Etihad Cargo adds Singapore flights
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tihad Cargo has extended its freighter network with the launch of weekly flights from Abu Dhabi to Singapore’s Changi Airport. The weekly flight, EY9821 operates on Thursdays, leaving Abu Dhabi at 09.45 and landing in Singapore at 21.45. The flight leaves Singapore at 23.45 and then continues to Ho Chi Minh City, Vietnam landing at 00.45 the next day. The Boeing 777 Freighter service then departs Vietnam at 02.45 and lands back in Abu Dhabi at 07.20 under flight number EY0976. The freighter service between Abu Dhabi and Singapore complements daily widebody passenger flights between the cities. Etihad Cargo says these are key markets, and the opening of a direct freighter route supports strong economic and trade links between Abu Dhabi and Singapore. In 2018 the airline has simplified its network freighter fleet and now operates five Boeing 777 Freighters.
Old News
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Seaplane cargo drone proposed by Natilus 20 July 2015
seaplane cargo drone with a 100 tonne capacity able to use sea port facilities and carry ocean freight containers and unit load devices is being proposed by US company, Natilus Drones. Claiming double digit savings in operational costs for freight forwarders, Natilus is aiming at what it describes as an existing $100 billion a year TransPac airfreight market that willl grow significantly due to e-Commerce. Expecting to operate their seaplane cargo drone, called Natilus but pronounced Nautilus, with an intial TransPac fleet of up to five, the company’s founders have been speaking to freight forwarders. The Natilus will use a Pratt & Whitney turbojet engine which the cargo drone firm says it knows is in development. The company intends to build a scale model prototype with a six metre wing-span to test the autopilot and water take-off and landing. The plan is that the scale model will be flying in 18 months and a full-scale commercial Natilus will be flying three years after that.
Natilus in 2015
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Cathay Pacific picks up CEIV Fresh
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athay Pacific has become the first airline in the world to be awarded CEIV Fresh, IATA’s accreditation for perishable cargo handling. The CEIV certificate aims to help organisations improve handling, and CEIV Fresh ensures quality assurance and works towards reducing spoilage and wastage. Nick Careen, senior vice president, airport, passenger, cargo and security at IATA congratulates Cathay Pacific on becoming the first airline to achieve CEIV Fresh. He says: “As an industry, we have a duty to ensure that global standards and best practices are in place to ensure perishable products are handled and transported to avoid increased product loss.” Frosti Lau, general manager cargo service delivery at Cathay Pacific says: “Acquiring this new certification shows our commit-
ACWBITES SWISS-BASED Worldwide Independent Network has donated £11,000 to SOS Village Lebanon. SOS Village supports the rights of children who are deprived of parental care or at risk of losing it by providing them with family-based care and preventing child abandonment through a Family Strengthening Program (FSP). STUART Thomson Gulliver, Dr Lo Wai-kwok and Thomas Jefferson Wu have joined the board of Airport Authority Kong Kong, where they will serve three-year terms. Anita Fung Yuen-mei, Jeffrey Lam Kin-fung and Ir Lee Shing-see will leave the board.
ment to continuous improvement in service quality and gives our customers the peace of mind in our special handling throughout the shipment journey. “Along with other airport stakehold-
WFS and Avinor end Oslo seafood centre deal
ers in Hong Kong, including CPSL (Cathay Pacific Services Limited), this collaborative approach further boosts Hong Kong’s reputation as a key international gateway for the handling of perishable products.”
THE first A330neo of the Americas has been delivered to Azul Linhas Aereas on lease from Avalon, becoming the first airline from the region to fly the A330-900. The aircraft is the first of 15 A330neos ordered by Avalon.
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orwegian airport operator Avinor and Worldwide Flight Services (WFS) have terminated a deal to construct a new seafood centre at Oslo Airport. Construction of the centre, which would have had the capacity to handle up to 250,000 tonnes of seafood annually, was supposed to commence in April 2019 with the opening date given as 2021. In a statement, Avinor says: “Avinor AS and Worldwide Flight Services (WFS) signed a letter of intent in the autumn of 2018 on the construction and operation of a new seafood center for air cargo at Oslo Airport. WFS and Avinor now agree to terminate this letter of intent. WFS initiated changes that could not be implemented under the Avinor procurement regulations. We will now consider whether or how to arrange for seafood exports over Oslo airport.”
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Swissport grows 24%
arnings before interest, tax, depreciation and amortisation (EBITDA) increased 24.1% at Swissport in 2018 to €273.2 million. Revenue was up 6.7% to €2.99 billion with airport ground services contributing €2.43 billion, up 6.8%. Air cargo handling revenue was up 6.5% to €560 million, with tonnage rising from 4.7 million to 4.8 million. Eric Born, group president and CEO of Swissport International says: “We actively realised organic revenue growth above the market and a favourable market environment gave us additional lift. With the strategic acquisition of the Australian ground services company Aerocare in March 2018, we added a growth platform in the Asia-Pacific region, creating the basis for our regional expansion.”
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New contracts for Menzies
enzies Aviation has won new contracts and renewals in the Oceania region. At Auckland Airport, Menzies won a five-year contract with Korean Air to provide passenger, ramp and cargo services. Menzies has also been appointed by Qatar Airways to deliver passenger and ramp handling services for three years. At Macau International Airport, Air Macau has extended its partnership with Menzies for another five years.
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SkyCargo does Emirates Group proud in 2018
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mirates SkyCargo did the group proud in 2018 “with a strong performance in a highly competitive market with weak demand”. Revenue for the cargo division increased 5% to $3.6 billion with tonnage up slightly by 1% to 2.7 million tonnes. Freight yield per freight tonne kilometre rose by 3%, which Emirates SkyCargo says represents its ability to retain and win customers despite fuel price increases and weakening demand. The cargo division represents 14% of the airline’s total transport revenue. Emirates SkyCargo added freighter services to Bogota, Colombia and resumed flights to Erbil, Iraq. New products were launched, with AOG services starting in April, and the introduction of Emirates Pets and Emirates Pets Plus in August. Cargo highlights from the 2018/19 period include transporting 500 horses on 19 charter flights from Liege, Belgium to Greenville-Spartanburg, USA; special cars including a Koenigsegg Agera RS and a DeLorean; a 2,000-year-old statue of Buddha; and six 18th century pianos from Captain James Cook’s first fleet to Australia. The strong cargo performance came as airline profits fell 69% to $237 million and while Emirates Group posted its 31st consec-
utive year of profit, it was down 44% to $631 million. His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline and Group says: “2018-19 has been tough, and our performance was not as strong as we would have liked. Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets. The uptick in global airfreight demand from the previous year appears to have gone into reverse gear, and we also
DPDHL on target for €5b of EBIT
DEUTSCHE Post DHL Group is on target to generate more than €5 billion in EBIT for the year after posting strong first quarter results. Revenue increased by 4.1% to €15.4 billion in the first quarter of the year, and operating profit measured in EBIT (earnings before interest and tax) was up 28.1% to €1.2 billion. EBIT increased in all sectors, helped by non-recurring income from completing the Supply Chain partnership with SF Holding in China initiated at the end of 2018. Previously announced restructuring costs at Supply Chain and the new eCommerce Solutions division slowed EBIT
growth. By division, Post and Parcel Germany was up 0.7% to €3.8 billion, Express by 5.3% to €3.9 billion, Global Forwarding by 4.8% to €3.7 billion, Supply Chain by 4.6% to €3.2 billion and 8.9% to €999 million for eCommerce Solutions. Frank Appel, CEO of Deutsche Post DHL Group says the first quarter played out as expected with growth in all five divisions, showing the company is well positioned in key markets. He says: “E-commerce continues to boom all over the world and although some momentum has been lost, global trade is still on the rise, just as we expected for 2019. We are therefore on track towards our target of generating more than €5 billion in EBIT in the coming year.” Deutsche Post DHL Group projects that operating profits will be between €3.9 billion and €4.3 billion in 2019, with structural and operating improvements in all group divisions expected to contribute to the increase.
saw travel demand weaken, particularly in our region, impacting both dnata and Emirates.” Emirates SkyCargo has transported almost 100 horses for the Shanghai leg of the Longines Global Champions Tour using the Emirates Equine product between 3 and 5 May. The 91 horses boarded two Boeing 777 Freighters specially chartered for the occasion for their journey from Belgium. The horses were first led into specially designed horse stalls, which were then loaded directly into the freighter for a smooth boarding experience. On the flights, the horses were accommodated two per horse stall, which were fitted with hay nets to ensure that the equine champions did not lack in-flight snacks. Emirates SkyCargo’s equine customers also had access to constant care during the flight as the freighter has provision for qualified vets and grooms to travel with the horses during the flight. The airline worked with equine transport company Peden Bloodstock to ensure that the horses were well cared for before, during and after their flights. After the tournament, the horses once again boarded their Emirates SkyCargo flights back to Belgium.
Small fall in yields for IAG Cargo REVENUE for IAG Cargo was down marginally by 0.4% in the first quarter of 2019 with yields falling as the international freight market declined. IAG Cargo reported revenue of €275 million in 2019, down from €276 million in the first quarter of 2018. Sold cargo tonnes were up 2.5% to 174,000 tonnes with weakness in Asia Pacific being partially offset by stronger performances in South America and Africa. Yields were down, with revenue per cargo tonne kilometre decreasing 2.9% to €19.77. Lynne Embleton, CEO of IAG Cargo says the airline group is continuing to make investments, with the opening of the GDP-certified Madrid Constant Climate Centre, which has transported significant volumes of pharmaceuticals bound for Latin America including MMR and diphtheria vaccines. The Critical Service Centre at London Heathrow is now offering 24/7 support to customers. The network has also been updated with four weekly flights to Osaka, IAG Cargo’s third gateway to Japan. Embleton says: “As we continue to broaden our customer base, we have partnered with companies from outside the industry to provide new fully-integrated products directly to
consumers. Partnering with Santa Fe Relocation, we are proud to have become the first air freight carrier to offer a simple and convenient home relocation service. Additionally, our new partnership with PetAir UK has helped simplify the world of pet travel.” Looking ahead to this year, Embleton says: “No doubt market conditions throughout 2019 will continue to be challenging, but our pipeline of products, digital services and operational investment will position us well to become the carrier of choice for customers worldwide.”
Did you remember to send flowers for Mother’s Day? DID you remember to get your mother some flowers for International Mother’s Day? No? Well you can’t blame air cargo carriers because they flew plenty of flowers around the world in time for 12 May. LATAM Cargo alone transported more than 7,400 tonnes of flowers from Latin America, with demand increasing almost 90% in the three weeks before the day. More than 3,500 tonnes came from Colombia, specifically Bogota and Medellin, and more than 3,800 tonnes from Quito, Ecuador. Roses, carnations, mixed bouquets and green foliage were in highest demand, with the USA, the Netherlands and Brazil the main consumers. Avianca Cargo used a fleet of Airbus A330Fs, Boeing 767-200Fs, MD-11Fs and capacity in passenger aircraft to move 12,777 tonnes of flowers to Miami. Between 15 April and 6 May, 211 cargo flights were operated with capacity ranging from 40 to 80 tonnes.
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Eight charter flights, of which five were operated from Bogota to Miami, one from Medellin to Miami, one from Bogota to San Juan and one from Bogota to Los Angeles. In just one day, 536 tonnes were moved from Bogota, another 271 tonnes from Medellin and 200 tonnes from Quito. On 23 April, 856 tonnes were moved in 14 flights in Miami. Carlos Arango, commercial director of Avianca Cargo says: “We understand how delicate flower shipments are, the reason why we have a rigorous logistical process to preserve their quality regardless of its destination.” Kurt Schosinsky, managing director of Avianca Cargo says: “We are very proud of the results for this period, even more so since we met the challenging goal we set out for ourselves, to increase 260 tonnes versus the good results of the previous year. Proper planning and synchronisation of the team were essential to achieve these extraordinary numbers.”
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Could trains take weight off airfreight’s shoulders?
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UK company that is aiming to set up a nationwide high-speed rail freight network hopes to tap into the air cargo ground transport market. Orion, a subsidiary of Derby-based train firm Rail Operations, says that an interchange station near Heathrow airport’s cargo terminal would form an important part of its scheme to create a nationwide network of high speed freight trains across Great Britain. Karl Watts, chief executive of Rail Operations told a meeting of the All-Party Parliamentary Rail Group in London on 14 May that the 3,500 still-serviceable rail passenger carriages due to come out of service in the near future presented an opportunity for freight. Orion plans to convert a proportion of these vehicles to carry freight with roller-shutter doors. It would equip them with bi-mode traction to enable them to operate at up to 100 or even 125mph on electrified lines - but still be able to operate on other routes using diesel power. Orion envisages a nationwide hub-and-spoke network of high-speed freight trains based on a hub in the Midlands and using a mixture of dedicated freight terminals or the platforms of existing passenger stations. Watts told Air Cargo Week: “There could be a dedicated air-rail terminal, possibly in the Colnbrook area.” Colnbrook is already served by a rail line, used principally to carry bulk aviation fuel to Heath-
New customers at Blackthorne
row. While it is not the first time a rail-air freight terminal has been suggested for the area, Watts says that the idea’s time has come, adding: “After opening the third runway at Heathrow, the roads would simply not be able to cope with the amount of traffic generated. Rail would have to play a part.” Orion plans to take delivery in early 2020 of its first two four-car bi-mode freight trains, designated as Class 769 and converted from Class 319 passenger trains formerly used on the London-to-Brighton passenger route. These would initially be used as a proof of concept, although Watts did not rule out carrying commercial traffic if any opportunities arose.
ABERDEEN Standard Investment’s Airport Industrial Property Unit Trust (AIPUT) fund has secured new leasehold customers at Heathrow Airport’s Blackthorne Point logistics park. Unit 12, 15 and 16 totalling 3,019 square foot are now let to Micronutrients, London E Cargo and City2City Courier each within a month of the completion of the refurbishment. Existing AIPUT customers CH Robinson and Horizon International have both extended their existing leases at Blackthorne Point. Unit 10, a single 8,665 square foot unit is the sole remaining property to be let, with its refurbishment having recently been completed. The new arrivals cite close proximity to the cargo terminals and the nearby motorway network as key elements in their decision to locate
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their operations at Blackthorne Point, which is adjacent to junction 14 of the M25. Fraser Green, portfolio manager at Aberdeen Standard Investments says: “We continue to work with all our customers to provide high quality, flexible warehousing and industrial accommodation around Heathrow Airport, giving them the necessary tools to compete in the current economic climate and deliver best-in-class service levels to their customers.” Jason Spencer Knox, regional director for CH Robinson says: “Blackthorne Point provides our business with excellent access to our customers. The quality accommodation enables us to run a highly efficient operation out of our warehouse in Poyle, thereby providing the best possible service to our clients.”
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PSA and SATS to develop Singapore’s sea-air links
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SA International and SATS have signed a memorandum of understanding to establish sea-air connectivity to promote Singapore as a key multimodal transport hub. Combining air and sea connections, the partnership strengthens Singapore’s position as a global transhipment hub for air and sea cargo. The freight industry, including small and medium sized enterprises stands to benefit from improved multimodal linkages and transit systems for better supply chain efficiency, optimised transport costs and faster delivery. The two companies will collaborate on a wide range of cross-industry initiatives, particularly in the perishables, electronics and e-commerce sectors. From yard-to-port data linkages and network extensions between both companies to enhance track-and-trace capabilities, the partnership will facilitate data transparency and ease of shipment movement within free-trade zones. SATS and PSA will also integrate their systems to aid regulatory compliance and build data analytics capabilities. COSYS+, a cargo terminal handling and management system
operated by SATS will be linked with CALISTA, the global supply chain platform developed by PSA’s subsidiary GeTS Asia to provide real-time updates and greater visibility for shipments. Alex Hungate, president and CEO of SATS says: “When SATS became the world’s first ground handler to provide multimodal meat transhipment services between New Zealand and the EU, we demonstrated that multimodal connectivity can attract higher trade flows. Today, we hope our cross-industry initiatives with PSA will now enable the whole industry to market efficient multimodal solutions globally, through Singapore.” Tan Chong Meng, group CEO of PSA International says: “Shippers are increasingly seeking innovative multimodal solutions for their cargo to reach their preferred markets competitively. This partnership with SATS will enhance Singapore’s ability to offer unique air-sea multimodal connectivity to fulfil these demands.”
FedEx rolls out Medpak
FEDEX Express and TNT have rolled out Medpak VI°C globally, having successfully launched the product for sensitive healthcare products in Europe three years ago. Medpak VI°C allows companies in the clinical trials sector to ship test medications in temperature-controlled reusable packaging. FedEx and TNT are now rolling the service out internationally, starting with Asia-Pacific and North America. Marking a development in the healthcare business, Medpak VI°C is also serving customers
in the pharmaceutical and medical device industries in addition to the clinical trials sector. Roland Schutze, healthcare lead at FedEx Express and TNT says: “More than anything, our customers need reliability in terms of the technology itself, highly accurate delivery performance, time-sensitive shipment and having a partner that can deliver a full end-to-end service without multiple carriers and supported by a dedicated customer service team. I’m delighted that we’re able to take this innovation to the global marketplace.”
Cargojet partners with Drake CARGOJET has partnered with award-winning Canadian artist Drake who will act as a company ambassador, and receive assistance with logistics requirements. Drake has been a longstanding supporter of the Canadian airline, which specialises in overnight services, having been first introduced to Cargojet during celebrations of its first Boeing 767-300F. The artist says: “Supporting home grown businesses has always been a top priority of mine, so when an opportunity came up to get involved
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with a great Canadian company I was honoured to do so.” Ajay Virmani, president and CEO of Cargojet says: “We are very excited to partner with Drake as our ambassador and assisting him with his logistical needs and requirements. We have had a lengthy relationship with Drake and this partnership has grown organically between both parties. “Cargojet and Drake are both great Canadian successes, we are thrilled to be partnering together.”
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Customs modernisation
While Hariri is a powerhouse of ideas as to how the Saudi Airlines Cargo product can be improved and movement of airfreight in and out of the Kingdom made smoother and quicker, Saudi customs are fully aligned on the same model. His Excellency Ahmed Al-Hakbani has been the governor of the General Customs Authority since January 2017 and has modernised the system of border checks and duty collection. Hariri is fulsome in his praise for HE Al-Hakbani and commented: “Customs have transformed 180 degrees in Saudi Arabia, under Mr Al-Hakbani and we believe both parties are working towards a common goal.”
Transit targets
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ust over a year ago, Omar Talal Hariri took up his role as CEO of Saudi Airlines Cargo. The move placed him firmly in one of the most high-profile seats in global airfreight. Air Cargo Week caught up with him at Air Cargo Africa in February for a quick chat. The enthusiasm that Hariri has, both for his
same volumes as 2017 but I foresee double digit growth for e-Commerce shipments.” This translates, in the face of slowing demand, an ambition to grow inbound traffic into Saudi Arabia, especially e-commerce traffic. At the event, held in February, Saudi Airlines Cargo won two distinguished awards. They were the International Cargo Airline of
region. This change signalled a modernisation in the airline and the industry that excites Hariri, who is unperturbed by the apparent challenge of disruptors such as Amazon Prime and Alibaba. He said: “I love the disruptors of any industry.” He is keen to develop his airline’s e-Commerce cross-border traffic, generating more
role and airfreight in general, is neatly summed up when you meet him and he hands you his business card. Nothing flashy, just cut into the silhouette of a ULD. This precisely captures the enthusiasm he has for the industry and his role within Saudi Airlines Cargo. It is generally acknowledged that airfreight in 2019 will come off its 2017 peak. Hariri was quick to accept this. He said: “Airfreight in 2019 will not see the
the Year 2018 in Africa and the International Air Cargo Marketer of the Year 2018, yet another achievement under Hariri’s belt. Hariri came to his current role at an interesting time for both the airline and his country. The arrival of Crown Prince Mohammed bin Salman, whose powers include being deputy prime minister, has signalled change in many parts of the life of the Kingdom including Saudi Arabia’s Vision 2030 to become the logistics hub of the
inbound traffic while efficiently managing issues surrounding self-collection and product return which accounts for a high percentage of e-Commerce traffic. He would also like to see more air-sea traffic over the Kingdom. This mode has been eased now that road traffic between the airports and seaports can be handled under bonded conditions.
While Hariri accepts it has been a slow start to 2019, even slower than 2018 which in turn was slower that 2017, he is not down-hearted. One area which is attracting his attention is transit traffic in the Kingdom. In terms of airfreight, transit through the Kingdom accounts for 25% of Saudi Airlines Cargo traffic. His ambition is to double these volumes. He said: “We are looking to develop transit volumes between Europe-Africa and Asia-Europe.” One significant pressure is that the airline’s top 30 cargo customers account for 70% of all his traffic. Another engine of change under Crown Prince Mohammed bin Salman has been the loosening
How Hariri is steering Saudi Airlines Cargo through change
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of many restrictions on women’s activities in the Kingdom. As a moderniser, Hariri is keen to embrace the wider changes. He explained: “Females are beginning to make a mark in the cargo department’s back office.” Asked whether, he could ever see a woman succeed him as head of cargo, he stated his belief: “As long as she is qualified and experienced, I do not see why that couldn’t happen.”
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EUROPEAN CHARTER SERVICE
When faced with a cargo that is too big for a passenger aircraft cargo hold or needs to go where scheduled carriers fear to tread, then forwarders and shippers turn to cargo charter services. Whether it is delivery of time-critical consignments, heavy and outsize equipment, humanitarian goods, automotive components and manufacturing materials or life-saving aid supplies, turning to a charter company may just get it there.
Dursley joins Chapman Freeborn CHAPMAN Freeborn has appointed Neil Dursley to the role of chief commercial officer, bringing with him more than 25 years of logistics industry experience. Dursley’s experience includes over seven years with Panalpina whom he joined in 2011 and was most recently senior vice president government, aid and relief based in London, UK. He also held the position of area vice president of marketing and sales in the Middle East, based in Dubai, UAE. Prior to Panalpina, Dursley held management positions at other international logistics companies including UPS Supply Chain Solutions and Menlo Worldwide Forwarding. In his new role, he will work closely with Chapman Freeborn’s chief executive officer, Russi Batliwala, chief operating officer Shahe
Ouzounian and other members of the senior management team. Batliwala says: “We are excited to bring in someone with Neil’s experience, leadership skills, and expertise in servicing both government and commercial sector customers on a global basis. “He has an outstanding track record, and he will be an asset to the group as we focus on driving growth.” Dursley, who joined Chapman Freeborn on 1 April and is based at the London Gatwick headquarters says: “I have worked closely with the group during my 13 years in the Middle East whilst at UPS. Their capability and execution are second to none, and it is my aim to strengthen our market-leading position. I truly believe that with the team that we have around me we can and will achieve great things.”
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Dollman named Air Partner non-executive director PAUL Dollman has been appointed non-executive director of Air Partner and will take up the role of chair of the audit and risk committee. He became a non-executive director on 1 May, and will take the chair of the committee from 26 June, the date of Air Partner’s 2019 AGM. Dollman’s other non-executive directorships include Wilmington’s audit committee, Scottish Amicable Life Assurance Society and Etihad Topco. Ed Warner, chair of Air Partner says: “I am very pleased that Paul has joined the Air Partner board. He has a deep understanding of the aviation industry, which, coupled with his financial expertise, will be highly beneficial to Air Partner, further aligning the board’s experience to the group’s strategy.” Dollman adds: “Air Partner has a solid strategy in place to become a world class aviation services group and I am very much looking forward to using my experience from Menzies Aviation to support this.”
New Moscow office for ACS
AIR Charter Service (ACS) has moved its Moscow, Russia operations to a new office that is almost twice the size of the previous premises. The new office opened its doors on 8 April, with Azat Mulgimov, regional director of ACS Russia and CIS saying that Moscow business is continuing to grow in its 25th year of operations. He says: “As the only global company of our type in Russia, we count many charter brokers and airlines as our customers, as we are well-placed to offer international companies an easier way to charter aircraft in Russia.” Mulgimov adds: “We are currently recruiting to add to our team of more than 30 staff across our three offices in the region. This new office allows us to grow the number of charter experts by almost 40%, as well as offering more meeting rooms and separate offices for our various divisions.”
Antonov flies Cylone Idai aid ANTONOV Airlines has flown aid and personnel from Chalons Vatry Airport, France to Beira, Mozambique to assist with Cyclone Idai humanitarian efforts. An Antonov AN-124-100 carried 65 tonnes of relief supplies as well as logistics staff from aid organisations to support disaster relief efforts. The cargo included malaria treatments, five water purification stations and over one thousand tents and shelters to support the humanitarian efforts taking place in the wake of
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severe flooding. Paul Bingley, commercial manager of Antonov Airlines says: “We were ready for take-off by the time we received the final over-flight permits, working closely in cooperation with our partner, Bolloré Logistics Nord-Sud.” Karine Dantier, charter director at Bolloré Logistics says: “Antonov Airlines had the hold capacity and flexibility we needed to bring life-saving supplies and assistance to Mozambique in the shortest possible timeframe.”
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National issues fail to stop Celebi Aviation from growing
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urkey has had a tough couple of years with foreign airlines reducing flights and the exchange rate crisis, but Celebi Aviation is still growing. Burak Kurt, regional ground handling and cargo director Istanbul says that political events and the unstable currency have caused the trading market to shrink, reducing Turkey’s cargo volumes. The country has been affected by political events, the lira plummeting in value and the Central Bank of Turkey benchmark interest rate increasing from 17.75% to 24% in September last year, but 2018 was a successful year for Celebi. Kurt says Celebi has been focusing on the new Istanbul airport project, something “which will have a great impact on the prestige of our country”. He says: “We draw our investment plans and growth strategies in line with the targets we set. Our company has been working for this project by establishing dedicated teams in every field we serve. We improved our organisational structure to become stronger and dynamic.” There have been significant investments this year including the 18,000m2 warehouse at Istanbul Airport, which Celebi moved to on 6 April. Kurt says: “We’ve been working on this big move for a very long time. As Çelebi, we spent tremendous amount of time and effort on this project. After the move, new airlines have started flights to Istanbul Airport and this created an opportunity for us.”
He adds: “In addition, with the move to Istanbul Airport, new technological shelving systems (ETV and VNA) are being used to maximise our capacity and our operation continues in a powerful and dynamic manner. We have focused on digitisation and digitalisation by working on a global cargo software program.” Following delays, the new Istanbul airport is now up and running. Kurt expects it will become a cargo hub and strengthen Istanbul and Turkey’s position in the global air cargo market. He says: “It can reach three continents in three hours flight distance, it has the second largest truck fleet in Europe with more than 65,000 trucks, it has increased flight slot and facility availability and it offers multi-modal transportation opportunities.” Istanbul is in a strong geographic location, making it a very good transit point. Kurt says: “It provides economical flights due to less fuel consumption. With the help of maximised cargo capacity reached at Istanbul Airport, there will be a variety of service opportunities for time-sensitive and temperature-sensitive products such as e-commerce products and pharmaceuticals.” Kurt says that Turkey faces challenges, with its Logistics Performance Index score falling since 2014 but hopefully the new airport and surrounding infrastructure will help improve matters. He says: “It has now begun to apply new cargo flows from many points of Turkey. At the same time, with the new connection paths, a combination between the air and truck modes is provided. A cargo that is carried by an aircraft can be easily trans-
ferred to other modes of transport. With these large investments, it is inevitable that Turkey will escape this downward trend and pass through the upward trend in coming years” The unstable currency and political events have made business in Turkey more difficult. Kurt says: “The increase in interest rates in Turkey has reduced investments in the country, and therefore has reduced export rates in sectors. Nowadays, the effects of these have started to decrease.” He says: “In line with the current technological developments, e-commerce volume is increasing. Exchange rate fluctuations, blockchain logistics applications, digitalisation, integration with new investment projects and new customs gates are other important economic developments closely followed by the logistics sector.”
New airport to help Turkish aviation reach new heights WITH the new airport at Istanbul open and ready for business, Shukru Can, managing director of ULS Airlines has high hopes for the future of Turkish aviation. After a particularly strong year in 2016, Can tells Air Cargo Week that 2017 and 2018 remained stable. In 2016, ULS carried 67,000 tonnes, followed by about 63,000 tonnes in 2017 and 2018, though 2019 is not looking as good. He says: “Cargo gauges are not inspiring for the first quarter of 2019. Expectations for the remainder of 2019 is better than first quarter for sure. But numbers at the end of 2019 will be lower than 2017 and 2018.” Following a few delays, the new Istanbul airport is now up and running, with passenger
operations shifting from Atatürk in the “Great Move” at the beginning of April. For now, cargo operations are staying at the old airport. Can believes that in the future, the new airport will be one of world’s cargo mega hubs. He says: “We are still operating from Atatürk Airport because infrastructure is not completed yet, Turkish cargo operators are planning to move to new airport at the end of 2020.” Opening the new airport is expected to significantly boost Turkish aviation growth, which is predicted to increase 27.5% in the next three years. Can says: “Air cargo transportation across Turkey was around 3.5 million tonnes last year. It is expected to reach 4.2 million tonnes in 2020.” The outlook for Turkey is good, and Can be-
lieves it is a very logistics friendly country due to large infrastructure investments including the new airport; integration between sea, road and air transport; customs facilities being modernised; the number of cargo aircraft; and the young population who are being well educated at logistics schools. As with all places there are challenges such as political instability in neighbouring Iran
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and Syria, and economic and political issues in Turkey. In the future, e-commerce is likely to present the greatest potential. Can says: “One of the biggest opportunities is that e-commerce business in Turkey is around 30% of total business. This number is quite low compared to the EU and USA. We believe that e-commerce business will reach to 60-70% in next five years.”
ACW 20 MAY 2019
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Seconds with...
GINGER EVANS
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ACW: Tell me two truths and one lie about yourself. Evans: I am a people person; I am supremely confident; I have issues with work life balance. ACW: If you were a car, what kind of car would you be and why? Evans: A 1964 Ford Mustang with the original 289 V8 engine. No frills, moves fast in a pinch and a whole bunch of fun...
ACW: We finish the interview and you step outside the office and find a lottery ticket that ends up winning $10 million. What would you do? Evans: Send every charity on our annual contribution list a big cheque. Then…
ACW: If you had to be shipwrecked on a deserted island, but all your human needs — such as food and water — were taken care of, what two items would you want to have with you?
Evans: Books and music.
ACW: If you had a choice between two superpowers, being invisible or flying, which would you choose? Evans: Flying!
ACW: What motivates you in life? Evans: Tackling complex projects and providing opportunities for career advancement for the next generation. ACW: What’s the most interesting thing about you that we wouldn’t learn from your resume alone? Evans: I am an accomplished pianist.
ACW: What song best describes your work ethic? Evans: Standing Outside the Fire by Garth Brooks. ACW: What’s your favourite book? Evans: The Swerve.
ACW: Beer or wine? Evans: Depends on the season – rosé in early summer, beer in late summer – and the colder it gets, the darker the red wine gets. ACW: If you were on Death Row, what would be your last meal? Evans: Sausage, gravy and biscuits.
ACW: What would your autobiography be called? Evans: I Had it All (My generation of women were told that you had to choose between career and family. Guess what! I have both. It wasn’t true then – and the younger generations of women have disproved it many times over.)
Vroom, vroom. A whole bunch of fun
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Eat up, Old Sparky is waiting for you
Ginger Evans is CEO of Reach Airports, a US-based airport management joint venture between Munich Airport International and The Carlyle Group’s CAG Holdings. She has also proved to women that they can have it all. ACW: If you were a Microsoft Office program, which one would you be? Evans: Definitely Microsoft Project. I love identifying the main tasks, trying to identify tasks that can be done concurrently rather than sequentially, establishing deadlines and then measuring progress against the baseline program.
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