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ACW 30th September 19

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The weekly newspaper for air cargo professionals No. 1,051

30 September 2019

Get online for air cargo’s heartbeat Amazon and Atlas Air face lawsuit for Flight 3591 crash

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he brother of the first officer killed in Flight 3591, which crashed near Houston in February is suing Atlas Air and Amazon for negligence. Atlas Air Flight 3591 a Boeing 767-300 Boeing Converted Freighter crashed on 23 February when it rapidly descended from 6,000 feet and hit a marshy bay about 40 miles southeast of George Bush Intercontinental Airport in Houston, Texas. Elliott Aska of Miami, Florida, a relative of First Officer Conrad Jules Aska is seeking in excess of $15,000 excluding attorneys’ fees and costs. Bringing the action on behalf of Conrad’s estate, Conrad’s daughter Kayla and any other individual enti-

tled to recover as a matter of law, the plaintiff is pursuing Atlas Air, Amazon and maintenance suppliers F&E Aircraft Maintenance Miami and Flightstar Aircraft Services under the Wrongful Death Act. Atlas Air is facing counts of negligence failing to maintain the aircraft with further allegation that the airline had not properly trained pilots and were overworking them. Amazon is also facing action for negligence for leasing an aircraft that was not maintained properly, saying: “Amazon knew or reasonably should have foreseen that the failure to exercise reasonable care in the maintenance and use of the aircraft, including ensuring its airworthiness,

INSIDE JOINT VENTURE EXPANDED

DHL Global Forwarding and Ethiopian Airlines plan to grow their joint venture, with Berhanu Kassa leading the company ... PAGE 2

MARTIN MAKES A RETURN

created a broad zone of risk that posed a general threat of harm to occupants of the subject aircraft.” F&E is accused of breaching its duties by failing to service, maintain, repair, modify, test and inspect the aircraft and make sure it was safe to fly.

Flightstar is facing action, with the lawsuit saying it should have known that if the aircraft was not properly maintained, there would be an “unreasonable risk of harm to persons operation, flying, and/or being flown aboard the subject aircraft”.

ABI trains ITS to open charter desk PR is dead.

THE Albion Broker Institute has completed its first in-house training course for a freight forwarder wishing to set up an in-house charter desk. UAE-based ITS Logistics was the freight forwarder in question, with five sales and operations staff undergoing the training at their office in Dubai. The five attendees learnt how to contract and execute a cargo charter flight, and the importance of working with compliant and audited aircraft operators. Lewis King, director of Albion Aviation Group

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says this was the first training course in the Middle East, with more lined up in October. He tells Air Cargo Week says: “One with a freight forwarder and the other a cargo operator, both in the Middle East. Freight forwarders in particular are showing a lot of interest in our professional training courses.” The feedback from the attendees will help enhance the service offered, with King saying: “We send out a comprehensive feedback form to each attendee after the course. Based on this feedback we constantly look to make improvements to our course material.” King says attendees join the Albion Broker Institute’s exclusive alumni after the course, receiving access to a mentor to answer any questions. He says: “They also benefit from additional bonus training material issued every quarter, i.e. flight contracting do’s and don’ts & where to find the next big charter opportunity. This is proving to be most popular and keeps me busy.”

AZURA International has boosted its marketing and sales efforts with the appointment of Martin Kingwell as Development Director ... PAGE 3 GET SMART

ACCORDING to Dr Benjamin Bierwirth, the SmartAirCargoTrailer project is in the middle of its first real-life tests. He says: “We’re just in the process of ... PAGE 4

Long live the Queen

See page 3

EXPORTS REMAIN RESILIENT

AS trade tensions show no signs of easing, demand is proving weak, Beau Paine, regional vice president cargo – Australia at Menzies Aviation tells ACW ... PAGE 6

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Get on-line for air cargo with a heartbeat

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n IATA (International Air Transport Association) free webinar on CEIV Live Animals, moderated by James Graham, Air Cargo Week’s editor, is to be staged on Thursday, October 3, 2019 at 15:00 (CEST) / 13:00 UTC. The global event is a good opportunity for those involved in the professional handling of animals and livestock. Titled: “How you can contribute to ensuring animal safety and welfare,” the webinar has been developed to “improve and harmonise standards related to live animal transport by air,” says IATA. IATA’s Center of Excellence for Independent Validators (CEIV) for Live Animals Logistics supports the industry in improving its competency, infrastructure, quality management systems and level of professionalism when handling and transporting live animals. It assures that certified companies are reliable partners complying with the IATA Live Animals Regulations (LAR) and ensuring animal welfare. A trio of industry specialists will be moderated by James Graham for the hour-long webinar. The first is Andrea Gruber, head of special cargo at IATA, who is responsible at IATA for delivering international standards and business processes for the

air cargo supply chain. She will be joined by Maria Jitomirski, IATA head of special cargo project manager CEIV Live Animals. She is responsible for the CEIV live animals logistics programme, developed following a call to action by airlines and other stakeholders within the air cargo supply chain to bring standardisation to processes, operations and training. Thirdly is Tristan Bradfield, deputy manager at Heathrow Animal Reception Centre, an CEIV certified entity, who is an animal health inspector and duty manager at the City of London’s Heathrow Animal Reception Centre and Border Inspection Post.

CEIV LIVE ANIMALS WEBINAR | IATA / Air Cargo Week October 3, 2019 at 15:00 (CEST) / 13:00 UTC.

Register for free - bit.ly/2kUHqh9 DHL and Ethiopian expand joint venture

DHL Global Forwarding and Ethiopian Airlines plan to grow their joint venture, with Berhanu Kassa leading the company, DHL-Ethiopian Airlines Logistics Services. The former director of logistics services at Ethiopian Airlines has been named as general manager of the joint venture, taking over from Pramod Bagalwadi, CEO of DHL Global Forwarding Sub-Saharan Africa. Since its inception last year, DHL-Ethiopian Airlines Logistics Services has scaled up operations and offers various services. In addition to air, ocean and road services, as well as value added services including customs brokerage, Ethiopia is one of the key competence

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centres for DHL’s Industrial Projects, a unit of DHL Global Forwarding managing complex logistics projects. The team also provides International Supply Chain Solutions to link multiple suppliers from different sourcing locations to various destinations. Bagalwadi says the Ethiopian government is aiming for 11% annual GDP growth, focusing on export-led industrialisation in sectors like energy, transport and manufacturing and expanding physical infrastructure. He says: “In order for Ethiopian businesses to seize this opportunity and expand globally, they need fast, reliable logistics connectivity to overseas markets, backed by industry expertise and high-quality transport infrastructure.” Kassa says: “In the past twelve months, we have invested in growing the team to full strength and have established three stations in Addis Ababa airport, and in the major manufacturing hubs of Hawassa Industrial Park and Bole Lemi Industrial Park. Our stations are strategically located for us to be close to where our customers operate, allowing us to achieve time and cost efficiency in our processes.”


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God save the (airfreight) queen

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emon Queen is a new communication agency for the air cargo industry that is based on the founder’s near-decade of experience in marketing for Paris-based GSSA ECS Group. Audrey Serdjebi left her role this month as ECS’s head of communication and marketing to establish the agency. Former ECS communications officer, Tiphaine Guelou is joining Serdjebi. “Lemon Queen is the new communications agency that specialises in airfreight,” says Serdjebi. “Eight years in this industry – with the opportunity to do a bit of everything and to use my past experience to help boost the reputation of ECS Group and of its clients – has given me real expertise and above all confidence in my undeniable skills. “My aim is to change the face of the industry but above all to offer a high-quality service to airlines, companies and freight stakeholders that deserve to be known and recognised. I love this industry and communication is my passion.” The idea for Lemon Queen came about on the evening of the ACW World Air Cargo Awards during the NexGenLeaders final. That evening, ECS Group won the Best GSSA award, and with them, Serdjebi

won her second Best Marketing and Promotional Campaign award. Throughout June, the idea was developed, nutured and planned before being put into action. The agency is completely separate from ECS Group though it will provide marketing services to the GSSA. At present, ECS Group is Lemon Queen’s largest customer. The agency will retain the NexGenLeaders competition. She says: “My challenge is to prove that there is not just one form of communication – that there are different ways to bolster your reputation. Let’s stop with the stereotypes and accept differences. “It’s what makes us strong and it’s why we love making films, creating sites, writing press releases and attending trade shows. Everyone is unique and we all want to move forwards and develop – and Lemon Queen is the ideal partner to help you achieve your goals. I really love the idea of offering a new partner in this fantastic industry.” As well as Guelou who is public relations manager at Lemon Queen, Serdjebi’s team includes an artistic director, a graphic design and artistic direction manager, director, developer and social media manager.

SpiceXpress receives first B737-800BCF SPICEJET’s cargo division, SpiceXpress has taken delivery of its first Boeing 737-800 Boeing Converted Freighter to better serve the region and open new routes. The 737-800BCF entered service last year and has an order book of 120 units, with 17 expected to be produced in 2019 to meet customer demand. The aircraft, the first one to be operated in South Asia is on lease from NGF Alpha, a division of Texas-based aircraft trading and leasing company Spectre Cargo Solutions. Ajay Singh, chairman and managing director of SpiceJet says: “We are expanding the markets we currently serve, particularly in the Middle East, Hong Kong and Bangladesh and the 737-800BCF’s reliability and versatility is helping enable our strategic direction.”

Silkway flies into Oslo

AVINOR Oslo Airport has gained another route to export salmon with Silkway West Airlines launching weekly flights on Friday 27 September. The route will be operated by a Boeing 747-400F, connecting the Norwegian capital with onward connections to the Far East via Baku, Azerbaijan. At Baku’s Heydar Aliyev International Airport, the Silkway Group operates a state-of-the-art air cargo centre, which includes modern temperature controlled and perishable facilities. Riad Fataliyev, commercial director Europe at Silkway says: “We are excited to offer the Norwegian seafood industry increased connections through our global air cargo hub in Baku. Silkway has been flying Norwegian seafood for many years through other European gateways, and we are now very pleased to finally add Oslo to our global network.” Martin Langaas, director of cargo at Avinor says: “Silkway is with their new route recognising Oslo Airport as the most significant cargo hub in Northern Europe.”

ACWBITES DEBRIS of a DHC-6-400 Twin Otter that went missing in Indonesia was found by rescue teams on a mountainside 10 kilometres from Kampung Mamontoga, Hoeya District. The aircraft was carrying two crew, one passenger and 1.7 tonnes of rice between Timika-Moses Kilangin Airport and Ilaga Airport when it went missing at around 11.00 on Wednesday 18 September. It belonged to Carpediem Aviation and was being operated by Rimbun Air. CARGO revenue at Qatar Airways increased 16.8% to 10 billion riyals, the airline says in its annual report for 2018-2019. The airline says 2018-19 was a challenging year and the net loss of 2.3 billion riyal was disappointing. The losses were attributed to the loss of mature routes, higher fuel costs and foreign exchange fluctuations, adding that the underlying fundamentals of the business remain robust. HAINAN Airlines connected Chengdu and Chicago for the first time on 16 September. The non-stop flight operates twice a week using a Boeing 787 Dreamliner. The flight leaves Chengdu at 21.00 on Mondays and Fridays, landing in Chicago at 22.10. The return flight leaves Chicago at 00.10 on Tuesdays and Fridays and lands back in Chengdu at 04.10 the next day. KLM will add Austin, Texas to its network with three Airbus A330-300 flights a week from 4 May 2020. The flight, KLM’s 19th North American destination will operate on Mondays, Thursdays and Saturdays, leaving Amsterdam Airport Schiphol at 12.40 and landing in Austin at 16.10. The return flight leaves Austin-Bergstrom International Airport at 18.00, arriving at Schiphol at 10.25 the next day.

CHAMP Cargosystem joins ATA CHAMP Cargosystems has joined the Animal Transportation Association (ATA) to exchange and develop services with experts in the sector. The CHAMP team has been developing animal transport solutions to improve communication between the shipper, forwarding agent and airline. The information and data will allow tracking and monitoring of the safety and well-being of animals in real-time. Filip Vande Cappelle, president of ATA says the logistics industry must raise the bar and put high standards for animal transportation in place. He says: “ATA welcomes CHAMP Cargosystems to the association and its intention to improve the data insight between parties involved making animal transportation safer.” Arnaud Lambert, CEO of CHAMP Cargosystems says: “We are eager to share our technological and domain expertise with the ATA and its members, toward safer and more efficient animal transport, to not only benefit the industry as a whole but more importantly to benefit the animals themselves.”

AZura boosts marketing arm

AZURA International has boosted its marketing and sales efforts with the appointment of industry veteran sales executive Martin Kingwell as Development Director. His new position with the Surrey-based global airfreight publisher and events company, will be to head up the company’s exciting efforts to develop new products, both in print and in digital formats. Martin has considerable experience in sales and marketing within the global airfreight industry, including a previous spell at Air Cargo Week in a sales and marketing role. He says: “I am very excited about my new position at AZura International working on its prestige and flagship product, Air Cargo Week. I am motivated to expand the company’s reach to even more areas of the global industry.” “These are exciting times to be in airfreight and I know that the products I will work on with my team in the coming months and years, will only expand the global footprint of AZura International as a go-to publisher and events company for the sector.” “I am thrilled to join the professional and creative team that work so hard to produce the world-class media products I will help to drive forward.”

LOT Polish Airlines launched flights between Budapest, Hungary and Seoul’s Incheon International Airport on Monday 23 September. The Boeing 787 Dreamliner leaves Budapest at 12.25 on Tuesdays, Fridays and Saturdays, arriving in the South Korean capital at 6.05 the next day. The return flight leaves Incheon at 07.35 and arrives in Budapest at 12.20 on Mondays, Wednesdays and Saturdays. DELTA Air Lines will start flying between Boston and Rome from 21 May until 7 September 2020. The daily service, flight DL20 will leave Boston Logan at 17.00 and arrive at 07.15 the next day. The return flight, DL21 will leave Rome Fiumicino at 10.45 and land in Boston at 14.15 using an Airbus A330. In 2020, Delta will add four new trans-Atlantic flights from Boston with a second daily service to Paris Charles de Gaulle, and come to London Gatwick and Manchester. Seasonal services to Edinburgh and Lisbon will make a return. AIR Canada will add year-round services between Montreal and Bogota, Colombia from 2 June 2020. The service will operate three times a week using an Air Canada Rouge Boeing 767-300ER. Flight AC1952 will leave Montreal at 22.45 on Tuesdays, Thursdays and Saturdays and arrive in Bogota at 04.15 the next day. The return flight, AC1953 will leave Bogota at 09.00 and arrive in Montreal at 16.20 on Wednesdays, Fridays and Sundays. KAZAKHSTAN’s flag carrier Air Astana has taken delivery of its first Airbus A321LR on lease from Air Lease Corporation. The A321LR joins Air Astana’s fleet of 18 Airbus aircraft consisting of eight A320s, four A321s, three A320neos and three A321neos. AIR New Zealand has finalised an order with Boeing for eight 787-10s valued at $2.7 billion at list prices. The deal was announced in May, including options to increase the number of aircraft from eight up to 20, with rights to switch to smaller 7879s or combine the two models.

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NEW TECHNOLOGY

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The aim of the Smart Air Cargo Trailer research project in Frankfurt Airport’s Carg line with demand between the freight forwarder and the airfreight handler.

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GET SMART

ccording to Dr Benjamin Bierwirth, the SmartAirCargoTrailer project is in the middle of its first real-life tests. He says: “We’re just in the process of the first real life tests in CargoCity South at Frankfurt Airport – with a human-driven truck – to test the camera system and the cloud platform with its steering algorithm. Tests with an autonomous truck will follow at the end of the first quarter 2020.” For use in day-to-day operations, the development of autonomous trucks is currently the limiting factor. There are some technical challenges, but also on the regulative side or for insurances many details have to solved. The cloud platform and the camera system should be ready at the end of 2020. For autonomous trucks they will have to wait a little bit longer, he says. “The SmartAirCargoTrailer is based on a standard swap-body, provided by SEACO, but for the next development phases we’re thinking also of using a standard semi-trailer, which has some additional challenges for the autonomous driving, but would increase the capacity,” says Dr Bierwirth. The barcode identification system works with five synchronised 12 megapixel cameras with a framerate of 20 fps. The camera system and its computer is connected to the cloud based platform provided by CargoSteps. Generally speaking the camera system could be installed in any existing trailer. For the demonstrator the project focused on the func-

tionality, so adding the camera system reduces the internal width and height of the swap body by about 20 cm. The SmartAirCargoTrailer was completely developed by the project team. Standard technology was used to ensure compatibility and minimise costs.

Direct the trailer

The system is intended to be operated by those trucking companies who do the short-distance trucking today. The transport manager of this company would have the overall control and could direct the trailers. Process-wise the intention of the project is to eliminate human interaction for the trailers which are triggered by latest acceptance time or capacity limits (once the capacity – volume or payload – has been reached, the transport will be triggered automatically). But also the receiving party (in exports the handling agent, in import the forwarder) will gain control as they can manually trigger a transport, which then has to be confirmed by the loading party. As all the technology is integrated in the trailer and the autonomous vehicle should be able to operate in a mixed environment there are no limitations or restrictions for a combined use of smart and dumb trailers. One requirement in the development phase was to implement the system as easily as possible which was achieved as no changes to

infrastructure is necessary. To leverage the full potential an IT integration on both ends (with the warehouse management systems) is recommended, but the cloud-based platform can also work as a stand-alone system. The cloud-based platform, provided by CargoSteps, is managing all the transport orders and also all the towing trucks. These trucks could be autonomous or human-driven. The difference is only the form of communication: For a human-driven truck the driver has to have some internet-connected device, such as a smartphone, where the transport orders are sent to. The autonomous vehicles get those transport orders directly. The trucks will be operated by companies like project partner Sovereign Speed. No special physical infrastructure is needed. As first tests have shown, the speed and reliability of the mobile internet could be delay data processing and for example the direct feedback to the forklift driver. Dr Bierwirth says: “The technology is designed to be scalable. The more companies at one airport or logistics area participate the higher the benefits. “As for funding limitations we do our tests with one SmartAirCargoTrailer and one truck. With an increasing number of trucks and trailers additional efficiency gains resulting from the complex steering algorithm can be achieved, the optimisation of truck utilisation). “The system is designed to be used at any other airport. “It could be even used in a European road net-

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Primary goals

The primary goals of the projects are to increase transparency and reduce quality issues in the air cargo supply chain. But instead of implementing new sensors or attaching smart devices to the shipments the project uses what is already there: the barcode. The first tests showed a success rate of over 90% - barcode reading of AWB barcodes,” says Bierwirth. “We had successful transports between Sovereign Speed, LUG and Swissport and simulated import as well as export processes. “The cloud platform worked in the intended way – provided the information to all parties involved in a timely manner and automatically triggered the transports,” he says. The project team consists of Hochschule RheinMain – University of Applied Sciences, Fraunhofer-Institute for Material Flow and Logistics, CargoSteps, Sovereign Speed, Fraport, LUG aircargo handling, Dachser, Swissport, QCS QuickCargoService. The project is funded by the state of Hesse.

Autonomous to tractors piloted JAL and NAA at

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work – without the autonomous driving. Due to regulations autonomous driving is only possible on private roads. “We’re glad to have Fraport in our team to ensure we can use the roads in CargoCity South. If you want to drive on public roads, you would have to use human-driven conventional trucks instead.”

apan Airlines (JAL) and Narita International Airport Corporation (NAA) announced the decision to launch a pilot programme to transport air cargo and check-in baggage with autonomous towing tractors within a restricted area at the airport. This trial is based on an offer from the Japanese Ministry of Land, Infrastructure, Transport, and Tourism to operate autonomous towing tractors within restricted areas at the vital and crowded airport. The pilot will run from October 31, 2019 to March 31, 2020. It will

take place at Narita International Airport Terminal 2 on vehicle roads and airplane parking areas near the satellite terminals. A Tract Easy by TLD will be the vehicle used on the trial. The remote control system, Dispatcher, has been developed by SB Drive Corporation Recently, the number of travellers to Japan has increased and the country is forecasting to welcome 40 million visitors by 2020. However, with the decline in the working age population, labour shortage is expected. To resolve this issue, JAL and NAA will proactively promote the use of state-of-the-art technology aiming to improve pro-


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AUTONOMOUS AIRPORT VEHICLES

’s CargoCity South is to transport air freight consignments autonomously and in r.

JBT introduces new automatic guided vehicle at IMHX 2019

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BT, the Leicester, UK-based global designer and manufacturer of automatic guided vehicle systems (AGVs), introduced a new forkover-style AGV specifically designed for the UK market at IMHX 2019. The new forkover features a streamlined design, with a higher maximum capacity of

1,250 kg in a reduced footprint. These features allow it to operate efficiently and safely in tighter spaces. The forkover joins a growing family of AGV designs JBT offers for the UK market, including a new reach AGV, an expanded line of counterbalance units and a vehicle specifically designed for Automated Trailer Loading. JBT’s AGV systems are manufactured

Snow problem for future of Swedish runways

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s towing ted by A at Narita

ductivity at the airport. JAL will perform the trial at Narita airport, ensuring safe conditions, as the area is congested with an array of airplanes, vehicles, and airport staff. Going forward, JAL will verify the equipment in various environments and continue to take on challenges to promote new services through technology. According to Statista, in 2018, Narita airport reported a freight volume of approximately 2.2 million tonnes, including both loaded and unloaded cargo flights. This number was a decrease from around 2.3 million tonnes in the previous year.. To date in 2019, Narita has handled 1.15 million tonnes, an average of 5,459 tonnes a day.

at its EMEA (Europe, Middle East, Africa) headquarters in Leicester. JBT’s technology is opening up new automation capabilities in the UK market, offering Automatic Trailer Loading (ATL), which has proven to deliver substantial ROI. “JBT has been designing and installing ATL systems for over 15 years”, says Mark Stevenson, JBT’s sales director for AGVs in EMEA. “With an ATL system, AGVs can pick up pallets from storage, from conveyors or staging, and place them directly into standard trailers at the loading docks.”

Czech mate for ‘robot’ workers THE name ‘Robot’ was first applied as a term for artificial automata in the 1920 play R.U.R. by the Czech writer, Karel Čapek. However, Josef Čapek was named by his brother Karel as the true inventor of the term robot. The word ‘robot’ itself was not new, having been in the Slavic language as robota (forced labourer), peasants obligated to compulsory service under the feudal system. Čapek’s fictional story postulated the technological creation of artificial human bodies without souls, and the old theme of the feudal robota class eloquently fitted the imagination of a new class of manufactured, artificial workers.

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utonomous vehicles will be part of our future, say Göteborg-based Semcon, which is developing an autonomous tractor to keep runway edge lights clear of snow. Automation can be used to reduce costs while also increasing efficiency and quality. The technology has now been tested for the first time at Örnsköldsvik Airport in Sweden. The AVAP (Autonomous Vehicles for AirPorts) research project is a unique collaboration project that aims to demonstrate how vehicle automation can safely help to reduce costs and make airport operation more efficient. Other parts of the project relate to monitoring solutions using drones, automatic mowing and friction measurement systems. Initial developments involve snow clearing at airports as it is absolutely crucial. Takeoff and landing runways must be completely clear of snow if flights are to depart and land on time. One of the problems with clearing snow around runway edge lights is that a great deal of precision is required on surfaces that are not always smooth. The Swedish Air Navigation Services Provider LFV, OER, RISE, Mid Sweden University, Swedavia, Semcon, Husqvarna, Combitech and FlyPulse are all involved in the project.

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AUSTRALIA AND NEW ZEALAND

Exports remain resilient but imports are suffering

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s trade tensions show no signs of easing, demand is proving weak, Beau Paine, regional vice president cargo – Australia at Menzies Aviation tells Air Cargo Week. He says shipment numbers with air waybill numbers are consistent but tonnage is down on average 6.5% compared to last year. Exports are proving resilient, down 3% and the Enhanced Air Cargo Security programme implemented on 1 March is not affecting bookings. Imports though are suffering, down 12% on last year. The seasonal peak period is approaching but Paine anticipates soft demand due to the trade tensions impacting Asian airlines. He says: “The majority of our customer base are Asian airlines and as higher tariffs continue to disrupt global supply chains we expect the weakness in air cargo markets to extend into the coming months.” Menzies works with 35 airlines across Australia and New Zealand, with the length of partnerships varying from port to port. Paine says: “In 2019 we successfully renewed our partnership with Cathay Pacific and Thai Airways for a further five years across all ports in the region demonstrating the strong relationship we have with premium airlines.”

Cover all main areas

The cargo handler has operations at 10 airports in Australia and three in New Zealand, with a presence in all major cities, providing services to international and domestic partner airlines. Menzies has not long started operations in Canberra and signed a memorandum of understanding with Western Sydney Airport to assist with the freight strategy design ahead of its planned opening in 2026. Paine says: “Western Sydney Airport Paine will be Sydney’s second airport and we are excited for the future opportunities that may be afforded.” Facilities were opened in Cairns and Melbourne Avalon at the start of the year, and Paine is happy with the performance of the stations. He says: “Cairns offers a best in class perishable handling facility to suit the humid climate of the far north of Australia. Since opening the facility, we have been awarded the domestic business for both Virgin Australia and Alliance Airlines.” Melbourne Avalon is served twice-daily with AirAsia X services to Kuala Lumpur. Paine says: “Given the Avalon location is approximately one hour from Melbourne Tullamarine, we offer a trucking solution to the Melbourne freight forwarder community which are primarily based at Tullamarine.” He comments: “Both stations are operating well and demonstrate our commitment to satisfying our customers’ needs via flexible and bespoke handling options.”

Handling services offered by Menzies can cater for not just general warehousing and storage of general cargo, but also perishables, express cargo, valuables, live animals, dangerous goods and pharmaceuticals. Describing Menzies as leaders in cargo security, Paine says: “We are able to offer our customers a complete range of security screening options with state-of-the-art X-Ray machines, metal detectors and explosive trace detecting units.” He adds: “We pride ourselves on offering bespoke services to our customers and tailored solutions to accommodate regional and geographic constraints in our region.” Menzies plans to grow by listening to market needs. Pharmaceuticals are a focus area, with investments in infrastructure, redevelopment of processes and training for staff. Extending existing services is another consideration. Paine says: “We have taken great interest in working with Airport authorities in both Sydney and Auckland, to expand our presence in Sydney’s second airport which is in development, and the new cargo precinct which is also under development

Trucking the Wiseway

WISEWAY Group will extend its strategic partnership with Xiamen Airlines to provide national bonded interstate trucking services from next month. The Australian integrated logistics firm has been acting as the cargo sales agent for China’s sixth largest airline since July 2016. Xiamen Airlines operates seven flights a week from Fuzhou and Xiamen to Sydney, and five to Melbourne from Fuzhou, Hangzhou and Xiamen. Wiseway operates daily services between all major Australian cities, and will extend existing international services from Fuzhou, Hangzhou and Xiamen to other major cities including Adelaide, Brisbane, Melbourne, Perth and Sydney. Roger Tong, CEO and co-found-

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ACW 30 SEPTEMBER 2019

Work with the authorities

er says: “This agreement further extends our long-term strategic partnership with Xiamen Airlines. Through leveraging each company’s core competencies to enhance its competitive advantage, the partnership seeks to increase our share of the expanding Australian import air cargo market, driven by the rapid growth in e-commerce.”

in Auckland which will allow us to grow the size of our facility, upgrade our equipment and grow our customer base.” Paine is predicting that after years of significant growth in volumes, imports and exports are likely to remain stable. He says: “External factors will always influence the logistics industry and any changes may have a dramatic impact on the industry. The product mix will continue to see some significant change with e-commerce becoming a commodity that is rapidly growing across the region and also the globe.” There are issues that face Australia and New Zealand, mainly the low unemployment rates making it hard to attract staff, and the take-up of technology, which is more of an issue in New Zealand. Paine says: “With this being said it creates great opportunities for the New Zealand businesses to improve their operating models and service offering which will be beneficial towards business growth.” Working together provides great opportunities in the region, with Paine commenting: “A great opportunity for both countries going forward is the ability to synergise and integrate systems, processes and even personnel considering the close distance between Australia and New Zealand.”

McDowall to act as CEO

AIR New Zealand’s chief financial officer Jeff McDowall will fill the role of chief executive officer until a successful candidate has been found. Christopher Luxon stood down on 25 September, and McDowall is not looking to permanently take on the job. General manager corporate finance Stephan Deschamps will take on the task of acting chief financial officer. Chairman Tony Carter also retired on 25 September, replaced by director Dame Therese Walsh, who is leading the search for a new CEO. Dame Therese says a new chief executive officer may not start until the first quarter of 2020. She says: “We are fortunate to have a talented Executive team who are

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united in their support of Jeff to lead them and the business as acting chief executive officer during this interim period. Jeff has held senior management roles across the airline for more than a decade and is well known to investors, stakeholders and key partners, such as the travel trade and unions.”


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