ACW 27 August 18

The weekly newspaper for air cargo professionals No. 996

27 August 2018

60 Secs of Summer

Enjoying a BBQ with Pocahontas

Aloha: Hawaiian goes island-hopping

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awaiian Airlines has kicked off its island hopping cargo service by flying construction and household supplies to Lihue to

repair homes damaged by last April’s storms.

The ATR-72 was loaded with 462 kilos of construction tools at Honolulu’s Daniel K. Inouye International

JUST 13 years since the A380 was launched, the first Airbus A380 has been dismantled and will be sold as spare parts.

A new lessee or buyer could not be found following expiry of a 10-year lease in October 2017. For investors, this is likely to mean a modest end to their investment.

The aviation market has changed since the launch of the A380 to compete with the B747.

According to German aviation investment house Dr Peters, no new lessee could be found at short notice; potential lessees either had no current demand for the A380 or were

unable to present a convincing plan.

It was also not possible to sell the aircraft.

The option to sell the aircraft in parts was presented to investors as the only viable alternative.

Having hoped to sell the aircraft, registration 9V-SKA, for between $64m and $74m, investors should receive pay-outs in 2019 and 2020, following repayment of the remaining senior loans.

Cargo chiefs never rated the A380’s cargo capacity, while passenger managers have difficulty filling this four-engine aircraft in an age of two-engine aircraft.

Airport bound for Lihue International Airport to be used by Kauai Habitat for Humanity repairing homes for low income residents affected by last April’s storms.

A second flight to Hilo International Airport carried 823 kilos of furniture for 20 micro-houses built by HOPE Services Hawaii to shelter families affected by the ongoing Kilauea volcano lava flow.

The items were packed by employees at City Mill, and the flight to Hilo also contained 23 boxes of school supplies collected by Hawaiian employees and delivered to Pahoa Elementary.

Hawaiian Airlines president and chief executive officer, Peter Ingram says: “We are honoured to utilise our new cargo operation to help support our neighbours in need. We couldn’t think of a better partner in this effort than City Mill, another long-time kama’aina company.”

The airline’s new cargo fleet consists of two ATR-72s, and services will be expanded to include flights to Kahului Airport and Kona International Airport when two more aircraft arrive next year.

Ingram says: “The ATR-72s enable us to meet the cargo needs of our customers and businesses while streamlining and growing our shipping operations throughout Hawai‘i and beyond.”

The ATR-72s can accommodate up to seven LD-3 containers, the same type carried by aircraft flying on transpacific routes.

Hawaiian Airlines managing director of cargo services, Brad Matheny says: “We are excited to offer our customers a ‘one-stop-shop’ for all their cargo needs. The ATR-72 is the perfect aircraft to get the job done and symbolises our continued dedication to our community as Hawaii’s hometown carrier.”

Adieu: How the mighty have fallen

Page 8

INSIDE one star for amazon

pilots from Airlines Pilots’ Association Teamsters Local 1224 have protested outside Amazon’s headquarters in Seattle to highlight poor ... page 2

PLANNERS TO LOOK AT MANSTON

THE Planning Inspectorate has accepted the application to examine reopening Manston Airport, primarily as a cargo airport with capacity ... page 4 chocolate that doesn’t melt

WHEN Austrian chocolate manufacturer Zotter Schokoladen opened its Chocolate Theatre in Shanghai, cargo-partner was on hand to ensure the ... page 5

The life of 9V-SKA

(Stock photo)

9V-SKA has been parked since 10 June 2017 in a Changi airport hanger. Its last commercial service was SQ317, a London Heathrow-Singapore flight. It was then returned to German aircraft investor Dr Peters Group which had acquired it in 2007 from Double Deck

Leasing. The engines had remained leased from Rolls Royce.

In 2007, 9V-SKA became a part of aviation history when it operated the world’s first commercial A380 service on the strategic Singapore-Sydney sector.

thailand signals confidence

THAI prime minister Prayut Chan-o-cha has expressed his “satisfaction” with consumer confidence in his country that is bound ... page 6

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Pilots give Amazon a one star review

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ilots from Airlines Pilots’ Association Teamsters Local 1224 have protested outside Amazon’s headquarters in Seattle to highlight poor working conditions.

The pilots from Atlas Air and ABX Air, a subsidiary of Air Transport Services Group (ATSG) who are contracted to fly for Amazon Air say working conditions at the airlines continue to deteriorate.

The union says at a time of pilot shortages, both companies are struggling to attract and retain pilots, with Atlas hiring 311 in the first half of 2018 but the headcount only increasing by 160.

They marched outside the glass spheres accompanied by a mobile billboard that read “Atlas, Southern and ABX pilots flying for Amazon are leaving for better pay and working conditions at other airlines”.

The website canamazondeliver.com was set up to highlight the issues facing the airline, which will lease 40 aircraft from subsidiaries of Atlas Air and ATSG. Executives at the airlines are accused of ignoring serious challenges that could jeopardise their ability to handle Amazon’s business.

In November, 250 ATSG pilots went on strike citing contract

Need to move race horses? Nay problem

Cargolux Airlines International has flown race horses from Luxembourg to Indonesia for the Asian Games, which is being held in Jakarta from 18 August to 2 September.

The part-charter operation in conjunction with JIT-EX required careful preparation and planning to avoid causing the animals distress during the journey.

Cargolux used its HMC horse stalls and dedicated CV Alive team, with the HMC stalls providing increased stability and a double layer pallet base reducing the motion feeling for the horses, reducing the stress the animals feel compared to traditional single layer pallets.

The ad hoc shipment flew directly from Luxembourg to

Jakarta, which required attentive preparation from the Cargolux Charter team, since Jakarta is not a regular scheduled destination.

Authorisations and paperwork had to be requested before the flight to ensure minimal flight disruption and animal discomfort.

Cargolux transports about 3,000 horses a year, with up to three horses per stall, the airline can accommodate 84 on its Boeing 747-400 Freighter and up to 90 on the 747-8 Freighter.

The airline is a member of the Animal Transport Association, the International Pet and Animal Transport Association and the IATA Live Animal and Perishable Board.

Car shipment lets Wellcamp flex its muscles

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argoclear International has taken advantage of Cathay Pacific’s weekly freighter flight from Toowoomba Wellcamp Airport to move a Dodge Challenger for a customer in Hong Kong.

The 2018 Dodge Challenger SRT Hellcat was imported by Brisbane company SCD American Vehicles, which remanufactures cars to right-hand drive for domestic and international sale. The Hong Kong-based customer was not willing to wait for the car to travel by sea, so using Cathay Pacific’s Boeing 747-8 Freighter service from Toowoomba to Hong Kong was the best option.

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Toowoomba Wellcamp Airport general manager, Sara Hales says: “The freighter service is perfectly positioned to facilitate the export of fresh produce and chilled beef to major markets in China. It is, however currently servicing a very diverse client base as freight forwarders begin to learn about the significant scope and capabilities of the Toowoomba Wellcamp Airport and Cathay Pacific Operation.”

She adds: “It is great to see SCD American Vehicles leading in the export of remanufactured vehicles from Queensland. Seeing them use the Cathay Pacific service today is a great example of the airports’ capability to handle all types of cargo from Queensland Exporters.”

Cargoclear International arranged the freight forwarding of the vehicle, with James Chalmers commenting: “The car was purchased by a person in Hong Kong, we were originally going to ship it in a container however the new owner had other ideas and couldn’t wait that long. With a hefty price tag already on the vehicle, the owner wanted it sent over via airfreight – seemingly desperate to get their hands on the car no matter the cost.”

He adds: “The great news here was our knowledge about the Toowoomba Wellcamp airport and their weekly service directly to HKG. The American muscle car has come all the way from the States, endured the conversion to RHD, polished up and sent to Toowoomba for a first-class ride to HKG via Wellcamp.”

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violations and forced overtime with more than 75 flights were grounded.

The website cites a survey of Atlas pilots saying that 65 per cent of respondents are planning to leave for another airline, and the company has experienced record pilot losses so far this year.

Yusen launches express service in Guangzhou

Yusen Logistics has launched an expedited arrangement service targeting air cargo arriving in Guangzhou, with cargo being collected from the terminal within six hours.

Guangzhou Baiyun International Airport is third largest airport in China after Shanghai and Beijing, and has been growing rapidly due to improved transport infrastructure and the expansion of science and technology innovation business.

With handling capacity increasing at Guangzhou, it usually takes at least a day after arrival at the airport to collected consolidated cargo.

To handle urgent cargo, Yusen has established a special team in Guangzhou and launched an expedited order service that gives priority to import declarations, enabling Yusen to pick up cargo from the terminal within six hours after cargo arrives in Guangzhou.

ACW REWIND 500

abc became the largest cargo operator at Schiphol by the start of 2017. The airport is suffering slot constraints affecting freighters.

ABC looks to Amsterdam Volume 11 Issue 47 24 November 2008

VOLGA-DNEPR subsidiary and scheduled B747 freighter operator AirBridgeCargo (ABC) says that Amsterdam Airport Schiphol is “at the heart” of its development strategy.

Robert Song, ABC global commercial director, noted: “Amsterdam is one of our main gateways in Europe and we are experiencing strong growth there. We are still a relatively new airline but we have worked hard to achieve service reliability and to meet the demands of the scheduled cargo market.

“ABC is gaining strong support from the forwarding industry in the Netherlands for both our services to Russia and Asia and we value the partnerships we have established,” he concluded.

Over the last six months, ABC has acquired three new B747400ERs and it has five B747-8Fs on order, all of which are expected to support the carrier’s regular scheduled operations out of Schiphol.

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17/08/2018 11:41

Planning Inspectorate looks at reopening Manston Airport

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he Planning Inspectorate has accepted the application to examine reopening Manston Airport, primarily as a cargo airport with capacity for at least 12,000 movements per year.

The airport (pictured before its closure) located in the Thanet district of Kent closed on 15 May 2014, and there has been an active local campaign to reopen Manston.

US investment group, RiverOak Investments put forward plans to reopen the airport with an emphasis on cargo and aircraft recycling, offering to act as an indemnity partner for Thanet District Council to fund a Compulsory Purchase Order, but the council rejected the proposals saying the US firm did not provide the required information.

RiverOak is now attempting to take control of Manston, which the site owners are proposing to turn into housing in a project known as Stone Hill Park, using a Development Consent Order (DCO).

UK-registered company RiverOak Strategic Partners was estab-

lished to manage the DCO, and had already an application to the Planning Inspectorate in April this year but withdrew it in May due to not satisfying requirements for information about parts

of the application including funding, national significance and environmental statements. RiverOak resubmitted the DCO on 16 July.

The Planning Inspectorate says the application was accepted by the secretary of state or housing communities and local government on 14 August, with chief executive Sarah Richards saying: “After careful consideration we have decided on behalf of the Secretary of State that the application submitted by RiverOak Strategic Partners Ltd met the required tests set out in the legislation to be accepted for examination.”

She says it is now for the applicant to publicise when members of the public can contribute to the examination process by registering with the Planning Inspectorate as an interested party to give their views.

RiverOak Strategic Partners director, George Yerrall says: “We are extremely pleased that our proposals have been accepted for examination and we look forward to the next stage of the DCO process.”

Cathay Pacific grows 2.9% in July

Cargo and mail volumes for Cathay Pacific Group continued to grow in July, mainly driven by increased transhipment volumes.

In July, Cathay Pacific and Cathay Dragon carried 184,935 tonnes of cargo and mail, an increase of 2.9 per cent compared to the previous year.

Capacity measured in available freight tonne kilometres (AFTK) was down 0.3 per cent in July just under 1.5 billion, while freight tonne kilometres increased 2.1 per cent to one billion, pushing load factors up 1.6 percentage points to 70.3 per cent.

In the first seven months of 2018, cargo and mail was up 6.8 per cent to 1.2 million tonnes, with AFTK increasing 3.4 per cent to 10 billion.

Cathay Pacific director commercial and cargo, Ronald Lam says: “Meanwhile, our cargo business continues to be steady, with tonnage in July recording year-on-year growth from a high base.

“Transhipment volumes increased, in particular from Japan, Southeast and America, while the load factor and yield maintained a high level. We continue to closely monitor the external factors that have the potential to impact global trade.”

ABC flies 500th engine of the year AirBridgeCargo (ABC) Airlines has transported its 500th aircraft engine in 2018, with numbers growing 50 per cent year-on-year helped by the strength of its abcXL product.

The abcXL product is underpinned by the shipment management and monitoring solution offered by ABC’s Control Tower, with transportation of special cargo being monitored and coordinated by its Control Tower, a team of personnel working 24/7 to guarantee seamless deliveries. Monitoring includes all important shipment records, the technical condition of

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the aircraft, temperature settings and changes, shock sensing data and weather forecasting.

ABC global director of heavy and outsized cargo, Vasily Zhukov says the 500th engine is a milestone serving as a “quantum leap” in the development of abcXL. Zhukov says: “This 500th transportation in only eight months of the current year proves once again that our customers recognise the value provided by AirBridgeCargo Airlines, trust our experts and appreciate our dedication to meeting every requirement.”

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perishables

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cargo-partner stops chocolate making a mess

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hen Austrian chocolate manufacturer Zotter Schokoladen opened its Chocolate Theatre in Shanghai, cargo-partner was on hand to ensure the premium organic produce reached its destination in perfect condition. cargo-partner has been handling Zotter’s exports since 2014, the year it started operating a “Chocolate Theatre” in Shanghai, China combining a chocolate factory, speciality store, café, cinema and museum offering visitors a range of interactive experiences.

To securing move its produce, Zotter needed an experienced logistics provider, and cargo-partner created a door-to-airport solution, including pick-up of the gourmet chocolates in Austria and air transport to China. To ensure the exclusive delicacies retain their quality and taste all the way to their destination, Zotter’s products are transported in temperature controlled containers at 25C. Transport is challenging in the summer when temperatures in both Austria and China can rise well above 30C. As soon as the

goods arrive at the airport, cargo-partner immediately moves them to the warehouse to maintain an unbroken cold chain.

Zotter Shanghai admin manager, Alex Shen says: “cargo-partner provides a fast and cost-efficient solution for our imports to China. Careful handling, strict schedules and temperature control

throughout the entire transport ensure that our exclusive chocolates retain their quality all the way to their destination.” cargo-partner transports around 15 tonnes of chocolate for Zotter Shanghai per year, with the handmade and organic produce using cargo-partner’s Priority service.

Plan ahead to keep your cool

With Britain now recovering from the hottest organisations should speak to their transsummer in more than 40 years, Rhenus Lo- port operator to ensure their provision is gistics says businesses need to plan ahead to up-to-scratch.”

As part of the move to Manchester’s Port Salensure perishable goods do not get damaged.

Rhenus UK operations director, Gary Dod- ford facility last year, Rhenus invested heavily in its own temperature controlled sworth says the company always services. Working with a wide sees a spike in demand for temrange of FMCG businesses from perature controlled services in the frozen food specialists to pharsummer, but due to the exceptionmaceutical companies, Rhenus al weather this year, the demand says the cold chain for specialist was greater than ever. products is maintained and goods He says: “Temperature is a key reach the next point in production consideration for businesses looking to ship perishable goods, Dodsworth and supply process with the necessary quality. especially during a heatwave, so

Delta celebrates 20 years in Lima Delta Air Lines is celebrating 20 years of services to Lima, Peru not only providing seats for passengers seeing historic sights including Machu Picchu (pictured) but also transporting perishable cargo.

In 2016, Delta increased capacity between Lima and Atlanta using a larger aircraft, growing from 500 kilos to 15.2 tons per flight, resulting in an annual cargo load of 5.5 million kilos. The top commodity is asparagus exported to Europe, and Peru is growing in other markets as well exporting products like mangoes, berries and avocados, among others.

Delta operates daily flights between Atlanta and Lima using a Boeing 767-400, with flight number DL151 departing Atlanta at 5.50pm, arriving in Peru at 11.35pm.

The return flight, number DL150 leaves Lima at 1.05am landing in Atlanta at 8.56am.

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thailand

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Thai signals economic confidence

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hai prime minister Prayut Chan-o-cha has expressed his “satisfaction” with consumer confidence in his country that is bound to draw in airfreighted import goods. The PM said consumers’ confidence had increased to 82.2 in July 2018 or the highest rate in over five years, accord-

ing to a survey by the University of the Thai Chamber of Commerce. The higher confidence was the result of better export and tourism sectors and the purchasing power of people in many provinces also increased.

General Prayut stressed that the government has been developing Thailand’s logistics and transport sectors by investing in infrastructure mega-projects such as billion-dollar airport expansion plans across the

country.

Thai carriers have had a rocky few years after the 2015 decision by the International Civil Aviation Organization (ICAO) to give Thailand a red flag and the decision by the United States Federal Aviation Administration (FAA) to downgrade Thailand to

Category 2 that same year.

According to a report in the Bangkok Post in June 2018, Thailand has now dealt with almost all safety concerns raised during an audit by the International Civil Aviation Organisation (ICAO) last July, Civil Aviation Authority of Thailand (CAAT) chief Chula Sukmanop said.

The Bangkok Post also reported in June that in a related development, the Transport Ministry’s civil aviation committee approved a request by the CAAT to ease specifications for planes eligible for air cargo transport. At present, aircraft, which can be considered, for cargo transport licences, must be no more than 18 years old. Chula revealed that new specifications, once adopted by the ministry, would allow operators of aircraft which have been used for a maximum of 22 years to apply for licences.

In May, Thai Cargo handled a shipment of 15 tonnes of filming and camera production equipment at Chiang Mai airport, 700 km from Bangkok. While in itself not a large consignment, for the small airport, the fourth busiest in the country.

The shipper shipped this cargo into the mountainous Chiang Mai airport rather than moving by land transport on Antonov AN12 aircraft. This was the first-ever chartered AN12 at Chiang Mai airport for a number of years.

Aid floods in

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In the summer, Thailand provided assistance to flood victims in southern Laos, with relief items and personnel being delivered by air.

Thailand’s Ministry of Foreign Affairs (MFA) spokesperson Busadee Santipitaks confirmed that Thailand is currently transporting equipment to help with the search and rescue operations in Attapeu province in southern Laos via many channels.

The Thai Air Force was delivered more than 1,000 sets of relief items in two flights of a C-130 cargo aircraft, while food and supplies had been delivered via previous air shipments.

These items were dropped off at Pakse airport, and will be transported to Attapeu by land under the supervision of Thai consul-general Worawut Pongprapapan.

She added that supplementary aid was being transported by land across the border at Mukdaharn to a dry-port facility in Savannakhet, which were delivered to Attapeu.

UPS has undertaken service improvements in Thailand to better serve in the automotive and high tech businesses, two sectors earmarked as growth engines of Thailand’s “4.0 economic transformation”. The enhancements support the government’s renewed focus on innovation and technology as it works toward a more value-based economy and the development of new growth hubs in its Eastern Economic Corridor.

“Exports in Thailand are expected to grow by a strong 8.5 per cent in 2018, driving an estimated GDP growth of 3.8 per cent for the same year,” says UPS Thailand managing director Russell Reed. “As the country continues on its growth path and cements its position as a logistics and aviation hub in the global economy, agility and speed are critical factors for staying competitive in the fast-moving automotive and high-tech sectors.”

The enhancements include extended pick-up cut-off times for export shipments to give businesses a wider production window and flexibility to fulfil last-minute orders, as well as faster timein-transit for imports and exports to capture speed-to-market.

UPS says benefits for customers include faster transit time by one day for exports from Eastern Seaboard, Greater Bangkok and Ayutthaya regions to Asia, Europe and US destinations. These are priority markets for the high-tech industry, where speed-tomarket is critical due to short product lifespans. Faster transit time by one day for imports from key Asia and Europe origins to selected postal codes in Prachinburi, Rayong, Samut Sakhon and Saraburi and extended shipment pick up cut-off time by up to seven hours for exports from the eastern seaboard and greater Bangkok regions to key trade lanes in China, Japan, India, Europe, and the US. “UPS has been rolling out service enhancements to the Eastern Economic Corridor and the Greater Bangkok and Ayutthaya regions to improve connectivity and competitiveness for businesses since 2016. Our latest enhancements further accelerate global trade with Thailand’s key trading regions while helping businesses to meet pressures for shorter production times, high product quality, and timely delivery,” Reed adds.

The service enhancements are part of UPS’s long-term growth plan for the country.

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ACW 27 August 2018

7 17/08/2018 11:57

he pretends to know what he’s talking about

with... tim

s s u a str Strauss: I don’t eat breakfast. Only sometimes when I travel.

ACW: Hawaiian pizza or poutine?

Strauss: Poutine.

ACW: If ACW came to your house for dinner, what would you prepare for us?

Strauss: Well, it’s summer time so definitely something on the grill. A side Israeli salad of cucumber, tomato, red onion olive oil and a bit of lemon juice – it’s very refreshing, and fresh corn on the cob.

ACW: Fine dining or BBQ? Strauss: BBQ, on the beach is as good as it gets.

ACW: What does ‘aloha’ mean to you?

Strauss: Good will, sweetness of spirit, welcome, goodbye, kindness.

ACW: What is your favourite aircraft, and why?

Strauss: The one that’s on time.

Hawaiian shirt-wearing Tim Strauss joined Air Canada Cargo as head 18 months ago after a spell at Hawaiian Airlines where he was MD cargo before becoming vice president cargo in July 2014. He previously worked for Delta Airlines Cargo as MD global operations. Just don’t get any BBQ sauce on his Hawaiian shirt.

ACW: If there was a movie produced about your life, who would play you and why?

Strauss: Depending on what day it is in my life, either a fat bald guy or a thin bald guy.

ACW: What would your autobiography be called?

Strauss: Wanderer.

ACW: Which three celebrities would you like to join for a night out?

Strauss: Donald T, because who knows what you’re going to get, Bruce Willis, because he is a thin bald guy; Ronaldo because he’s such a phenomenal athlete with a peculiar character.

ACW: Do you prefer to be right, or be liked?

Strauss: Liked.

ACW: Do you wear jeans outside of work?

Strauss: Absolutely.

ACW: What is the last book you read?

Strauss: Right now I’m reading Skin in the Game, by Nassim Nicholas Taleb. The previous one was a biography of Ulysses S. Grant.

ACW: If you could trade places with any other person for a week, famous or not, living or dead, real or fictional, with whom would it be?

Strauss: Alexander the Great, Julius Caesar would be pretty great, too.

ACW: You are on death row. What is your last meal?

Strauss: German chocolate cake! That would make me happy.

ACW: Tell us the most interesting thing about you which we wouldn’t find in your resume?

Strauss: My great, great, great, great, I don’t exactly know how far back, actually… uncle was John Rolfe; he was married to Pocahontas. On my mother’s side. This was always a bit of a legend in my family but then someone did the research, and it’s true – we can trace it in the family tree.

ACW: What would I find in your refrigerator right now?

Strauss: Not much. Fresh vegetables, eggs, bacon, grilled chicken, Perrier, Diet Coke.

Cheese.

ACW: What did you have for breakfast?

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