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The weekly newspaper for air cargo professionals Volume: 20

Issue: 40

9 October 2017

Demand grows at more than 10% again in August

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ir cargo demand grew by a double-digit figure for the fifth time in six months in August, according to the International Air Transport Association (IATA). The association says freight tonne kilometres (FTKs), increased YOY by 12.1 per cent in the month, compared to the same month a year ago with Africa up YOY 29.4 per cent, the Middle East 14.1 per cent, Europe 11.8 per cent, North America 11.7 per cent, Asia Pacific 11.3 per cent and Latin America 8.5 per cent. IATA says demand is growing at “exceptional speed” when compared to the five-year average growth rate of 4.4 per cent. Freight capacity, measured in available freight tonne kilometres (AFTKs), grew YOY by 4.7 per cent in August 2017. IATA notes demand growth continues to significantly outstrip capacity growth, which is positive for industry load factors, yields, and financial performance. The strong performance of airfreight

demand corresponds with the pick-up in global trade, as IATA notes world trade volumes grew 4.2 per cent in the first seven months of 2017 compared to 2016, their strongest performance since 2011. This is also consistent with rising export orders, which are currently around their highest levels since March 2011, and upbeat business confidence indicators. But IATA says signs the peak of the cyclical growth period may be near also continue as the global inventory-to-sales ratio in the US, has stopped falling and this usually means re-stocking to meet demand is ending, which gives airfreight a boost. The outlook for air cargo remains strong and with several months of double-digit growth in

2017, the current IATA forecast of 7.5 per cent growth in demand for the year appears to have significant upside potential even if the industry is approaching a cyclical peak. IATA director general and chief executive officer, Alexandre de Juniac (pictured) says air cargo had another “stellar” performance in August and demand outperformed the passenger side for the fourth consecutive month: “Rapid growth in cargo demand means cargo capacity is now growing in response to real cargo demand rather than automatically as carriers responded to passenger demand. “The pace of capacity growth, however, has slowed even as freighter fleets are being utilised more intensely. Overall, that should be good news for much beleaguered cargo yields.”

Virgin Atlantic Cargo and Delta Cargo have opened a new Pharma Zone at their joint facility at London Heathrow Airport. This is the first joint venture cargo between the UK and the US, which is the world’s biggest trade lane for pharmaceuticals. The Pharma Zone will support the growing volumes of temperature-controlled healthcare and life science products carried by both and enhances their ability to meet quality and service requirements of pharma companies and their freight forwarding partners. The Pharma Zone features walk-in pods capa-

ble of maintaining 2-8°C (COL) and 15-25°C (CRT) temperature ranges for loose pharma shipments. Above the floor of the Pharma Zone is a temperature-controlled storage system for 24 pallets, split into six separate chambers, each of which can be safely maintained within either a 2-8°C or 15-25°C temperature range. Delta Cargo vice president, Shawn Cole says the new pharma facility aprovides customers and pharma manufacturers access to another major international gateway. He adds: “Delta Cargo has successfully achieved CEIV certification in Atlanta and for Delta’s headquarters. Over the next year we aim to add our other key hubs to the network, starting with New York-JFK and Los Angeles.” Virgin Atlantic Cargo managing director, Dominic Kennedy says pharma tonnage grew by 20 per cent in the first half of 2017 and the carrier expects this to increase as it continues to invest in, and develop, facilities like the Pharma Zone.

The Etihad Aviation Group has appointed Tony Douglas as group chief executive officer (CEO) to lead its overhaul and he will join in January 2018. Douglas joins Etihad from the UK’s Ministry of Defence, where he has served as CEO of the Defence Equipment and Support department. Ray Gammell has been interim CEO since James Hogan left the company on 1 July, 2017. Douglas has held senior positions with airport operator BAA. His roles included managing director of the Heathrow Terminal 5 project, Group supply chain director, Group technical director, and CEO of Heathrow Airport. He has also held positions in the UAE, most notably as CEO of Abu Dhabi Airports Company and as CEO of Abu Dhabi Ports Company.

QATAR AIRWAYS ADDS HELSINKI TO PHARMA NETWORK CHINESE DEMAND FOR LOBSTERS BOOMS

Delta and Virgin open Heathrow pharma zone

Etihad appoints Douglas

MANATEES AMONG THE ANIMAL SHIPMENTS AT ABC NETWORK GROWTH SET TO CONTINUE AT TURKISH

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Pilot union hits back at Atlas and Polar lawsuit

TEAMSTERS Local Union 1224 has condemned the lawsuit filed by Atlas Air and Polar Air Cargo against the pilots’ union. Atlas Air Worldwide Holdings filed the lawsuit on 25 September against the International Brotherhood of Teamsters calling on them “to meet their obligations under the Railway Labor Act and stop the illegal and intentional work slowdown and service interruptions they are causing”. The Teamsters are accused of “engaging in an unlawful, concerted work slowdown to gain advantage in pilot contract negotiations currently underway”, which was causing significant flight delays and harm to the company and its customers. The union has hit back, and Teamsters Local 1224 executive council chairman, Captain Robert Kirchner, who is a long-time Atlas Air pilot says: “This lawsuit is nothing more than a blatant attempt by Atlas to pass blame and distract customers’ attention from operational failings. This lawsuit is a shocking misuse of shareholder dollars that gets us no closer to being able to deliver for our customers.” An initial status conference on the lawsuit was held on 29 September before the US District Court for the District of Columbia and the judge has scheduled the case for trial on 31 October in Washington DC.

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NEWSWEEK Panalpina acquires German perishables firm

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analpina has made another acquisition in the shape of German perishables firm Cool Chain Group (CCG) – only 24 hours after it announced it was taking over Dutch perishables handler Interfresh Airfreight Handling. The move is part of the freight forwarder’s strategy to strengthen its Perishables Network as it puts a focus on the vertical after completing a deal for Kenyan forwarder of fruit and vegetables Air Connection earlier this year, while it acquired Kenyan perishables forwarder Airflo in 2016. Panalpina has entered into an agreement with CCG, whose parent company is Rungs Express, which will see it taking over the business and a team specialising in international airfreight and the import of perishables. The companies have agreed not to disclose any financial details of the deal. CCG has a flourishing perishables business stemming from well over 100 customers and representing around 14,000 tonnes of airfreight per year. Panalpina has set it sights on becoming the perishables market leader through its Panalpina Perishables Network. The company’s perishables activities originated in Latin America and were then

extended to Europe and Africa. The network will span 15 key countries at first, with a plan to double the network to cover all regions. Panalpina chief executive officer, Stefan Karlen says: “Our recent acquisitions in the perishables market have concentrated on the export side, but we also want to increase our footprint in key import markets and build our end-to-end perishables capabilities at major gateways such as Frankfurt and, as demonstrated yesterday, Amsterdam. These latest developments are further important steps towards offering complete end-to-end solutions on a global scale as we continue to expand our Perishables Network,” The former managing director of CCG, Markus Kampa will be Panalpina’s new country head of Perishables Germany.

WFS to handle Belugas in Getafe

WORLDWIDE Flight Services (WFS) has been selected by Airbus to handle the giant Beluga A300-600ST Super Transporter at Airbus facilities in Getafe, Spain. WFS has opened a station inside Airbus facilities, which will see the aircraft operating between Getafe and other Airbus plants in Europe on an almost daily basis. The handler is responsible for marshalling, towing and other aircraft services, and

the team will also be in charge of levelling the aircraft to connect it to its integrated loading dock at the airport facility. WFS ground handling director for Spain, Jacobo Sitges says: “There is no doubt that being part of a complete Beluga turnaround within the industrial environment at Getafe is very special indeed as it connects with its huge loading dock and is very efficiently loaded with new aircraft parts.”

Air Partner freight profits up in 1st half of 2017 CHARTER broker Air Partner says its underlying freight profit for the first six months of the year to 31 July was up 88.6 per cent to £0.6 million ($800,000). Overall gross profit for the first half of the year was up 12.2 per cent to £18.1 million from £16.1 million last year led by a strong performance in the broking division. Underlying profit before tax was £4.1 million, up a significant 34.4 per cent on the £3 million last year. The UK company says among operating highlights in the six months were the renewing of a German automotive contract

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for a further three years and it remarketing completed work for Kenya Airways, China Airlines and was awarded exclusive contract to market 15 Boeing 777-200ER aircraft for Saudia Airlines. Air Partner chief executive officer, Mark Briffa says: “I am very pleased to report on an encouraging first half performance with continued progress made as a Group. We are building the company for the long-term, and our strategic objective to create balance between our broking and consulting & training divisions is gaining traction.”


NEWS WEEK Kansai MD-11 service to be restarted by Lufthansa

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ufthansa Cargo is to restart a direct 80-tonne MD-11 Freighter service from Frankfurt Airport to Osaka’s Kansai International Airport from 18 January next year. The German cargo carrier last flew the route in March 2014 and will service Kansai twice a week stopping in Osaka on a Thursday and Saturday. The MD-11 has a capacity of 80 tonnes. Both weekly flights will stop at Novosibirsk, in Russia, for refueling. This route will be the only direct freighter flight to and from Frankfurt to Kansai. Air cargo volumes at Kansai have expanded significantly with demand for auto parts and pharmaceuticals driving growth, and has recorded a more than 10 per cent increase for 10 months in a row in comparison with the same month of last year (as of August 2017). Operator Kansai Airports says the gateway has also received many requests from cargo owners to expand load capacity for air cargo. The airport adds: “This resumed cargo service will enable larger-scale goods to be carried and carriage time to be shortened through midnight operations as well as expand load capacity between Kansai and European regions. “Kansai Airports will continue to improve convenience for cargo

owners and related air cargo companies through expansion and improvement of its cargo flight network, and contribute for economic expansion mainly in Kansai region and flight destinations.” In September, a pharmaceutical community was launched at Kansai as part of a drive to increase pharma traffic. KIX Pharma Community will work towards acquiring IATA’s CEIV Pharma certificate. All six community members (below) will work towards gaining the CEIV Pharma certification from spring through to summer next year. They are Bolloré Logistics Japan, CKTS Co (Kansai Airports Group), Hankyu Hanshin Express, JAL Kansai Aircargo System Co, Mitsubishi Logistics Corporation and Yusen Logistics.

WORLDNEWS

AN Antonov 12 military cargo aircraft crashed shortly after taking off from Kinshasa’s Ndjili International Airport on 1 October, killing 12 crewmembers. Local news media reported the aircraft took off at 07.30h (local time) bound for Bukavu in eastern Congo when it crashed in N’sele, to the East of the centre of Kinshasa. Airport officials are reported as saying the aircraft experienced a technical problem shortly after takeoff and lost radio contact with the control tower. ICE accumulation and operating in icing conditions led to a cargo aircraft crashing in Ontario on 11 December 2015, a report released by the Transportation Safety Board of Canada has found. The Cessna 208B Caravan operating as Wasaya Airways flight 127 left Pickle Lake Airport for Angling Lake/Wapekeka Airport before crashing at 1,460 feet, less than 10 minutes into the flight, fatally injuring the pilot and destroying the aircraft. It had a payload of cargo onboard.

Third Munich flight for ABC

AIRBRIDGECARGO Airlines (ABC) is increasing services to Germany with a third weekly flight to Munich Airport, operating a Boeing 747 Freighter with over 100 tonnes of cargo capacity. Customers in Munich will receive connections to 12 destinations in six Asian countries within a 48-hour cargo delivery time including cargo handling via ABC’s hub in Moscow. The airline also plans to bolster import volumes to Europe via Munich, focusing on the provision of smooth trucking operations across Europe in close cooperation with its trucking partners, enabling ABC to guarantee a faster and better inland service. ABC vice president of Europe, Andrey Andreev says the additional flight aims to gain increasing exports from Southern Germany, and the automotive sector in particular will see benefits. He adds: “So far in 2017, we have witnessed stable demand with more than 1,000 tonnes of automotive and different industrial consignments from and to Munich.”

Bahri and Bollore form JV

SAUDI Arabian transportation firm Bahri and French freight forwarder and logistics company the Bolloré Group have formed a joint venture (JV) – BahriBolloré Logistics. The JV will provide end-to-end logistics and supply chain management solutions to local and international companies operating in Saudi Arabia. Bahri owns a 60 per cent stake while Bolloré owns the remaining 40 per cent. It will be headquartered in Riyadh. Bahri chairman, Abdulrahman Mohammed Al-Mofadhi says: “The success of this joint venture signals the importance of collaboration in creating a wider positive impact on the sector. It is only through meaningful partnerships and a shared vision that the transportation and logistics sector can break new ground and explore new horizons of growth.” Bolloré Transport & Logistics chairman, Cyrille Bollore explains: “This development at the heart of a high growth potential region is an important milestone of our global network integration. “This alliance is following the development dynamic of Bollore Logistics in the Middle East region and at the crossroads of Asia, Africa and Europe.”

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NEWSWEEK

Qatar Airways adds Helsinki to expanding pharma network

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atar Airways Cargo has added Helsinki (pictured) to its expanding pharma network, its 74th pharma destination introduced within three months since Dublin was added in

June. Finland is very important in the global pharmaceutical market and boasts expertise in research and development, attracting hundreds of clinical trials every year. The pharmaceutical service system in Finland is dependent on imports, while exports of substances and medicinal devices grew by over six per cent in 2016. Qatar Airways launched flights to Hel-

sinki in October last year, with daily Boeing 787 Dreamliners providing belly capacity each way, connecting pharma import and export businesses to a global network of over 150 destinations via the airline’s GDP compliant hub in Doha. Qatar Airways chief officer for cargo, Ulrich Ogiermann (pictured) says: “The expansion of our pharma network helps us meet the growing airfreight requirements in the pharmaceutical industry where time and temperature management are of paramount importance. “We understand the intricacies in maintaining a seamless cool chain for pharmaceuticals. With the inclusion of Helsinki in our QR Pharma network, we can now offer pharmaceutical importers and exporters in Finland seamless connectivity, while adhering to the highest cool chain standards.” The carrier implements a complete quality

audit and training modules at each of its pharma stations, ensuring high operating standards are met for handling pharmaceuticals and healthcare products. QR Pharma, the airline’s specialist product for

pharmaceuticals and healthcare products, offers active solutions as well as passive solutions, including fast transfer times at Doha through its Quick Ramp Transfer. It offers reefer truck services for ramp transfers at the home hub in Doha.

KLM Cargo transported works by Dutch artistic masters from St Petersburg to Amsterdam Airport Schiphol before they were moved to the Hermitage Museum. The works, including Rembrandt’s ‘Young Woman with Earrings’, will be on show at the exhibition ‘Dutch Masters from the Hermitage. Treasures of the Tsars’. KLM Cargo was entrusted with a number of the masterpieces at the Hermitage Amsterdam from 7 October. The works were transported in special, custom-made crates, ensuring they arrived in perfect condition. The exhibition will feature 63 works by 50 Dutch Masters of the Golden Age, including six paintings by Rembrandt. The majority of

these paintings are permanently on show and have not been exhibited in the Netherlands since they were purchased by the tsars. KLM Cargo executive vice president, Marcel de Nooijer says: “We are proud that KLM Cargo has been entrusted with the transportation of these works, ensuring that they will be temporarily on show in the Netherlands after more than 300 years.”

KLM flies tsar’s art to Amsterdam

St. Louis experiences charter boom ST. Louis Lambert International Airport (STL) has experienced a boom in cargo charter activity in 2017 with year-to-date growth of 30 per cent. The average weight of cargo on flights has increased almost four-fold to 20.8 tonnes and STL saw its two heaviest charter movements for some years, with 98.2 tonnes and 105.6 tonnes uplifted by Boeing 747-8 Freighter aircraft operated by AirBridgeCargo Airlines. The region’s automotive and aerospace industries have been the mainstay of the charter flights. STL cargo development director, David Lancaster says: “The recent growth in total charter tonnage, the regular appearance of larger aircraft and the heavier loads being carried all point to a growing recognition of the benefits of using St. Louis

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Lambert for cargo charters.” He says its cargo handling facilities and space helps STL, and all cargo charters are handled by Worldwide Flight Services. Lancaster says: “Local manager Steve Rogers and his team do an outstanding job and are great partners in developing this business. We pride ourselves on being an easy airport to work with, having no slot restraints or congestion and a great location in the geographic centre of the United States.”


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LIVE ANIMAL TRANSPORTATION Chinese demand for lobsters booms with free trade deal

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he Australia/China Free Trade Agreement has resulted in significant growth in live animal shipments to China, Tigers International Solutions forwarding director, David Wilkins (pictured) tells Air Cargo Week. He says Mainland China is a major consumer of live lobsters, and though Japan is also an important market in the region, there is not the same demand. Wilkins predicts the peak season will be strong, saying: “2017 will be very strong for us from 1 November right through until Chinese New Year in February 2018. A lot of work is being done in developing the direct B2C model to service the time definite consumer demand in China.” Secondary gateways are expected to open up

for the product and some of the traditional distribution models will change and disappear. A significant part of Tigers’ business in the Western Australian airfreight market is linked to live lobster exports.

Rock lobster exports

Wilkins explains: “The Western Australian live rock lobster fishery is a $500 million industry and we currently enjoy an 80 per cent market share of the export airfreight portion of the 6.4 million kilogrammes that are sent live to China during the annual season. “Our client base consists of the export processor companies who use our services to organise the airfreight of these highly perishable crustaceans to get the markets

within the acceptable time limits.” All lobsters are packed according to IATA live animal regulations, and the methods of packing are designed to ensure that the lobsters arrive in the optimum condition. Wilkins says: “We are aware of the CITIES regulations that apply and all of the necessary permits are issued with Government approvals at both origin/destination and in accordance with airline regulations. This ensures that only known bona fide organisations can export live animals.”

Capacity challenges

He says the biggest challenge is ensuring there is sufficient airspace to match the market demand for the product with the available stock that is ready to be exported. If not then problems occur, Wilkins explains: “Should an aircraft be delayed during the journey, this can have catastrophic effects on the mortality rate of the lobsters. As there is a maximum time limit that the lobsters can be out of the holding tanks

between origin and destination.” Wilkins is very excited about the future of transporting live lobsters, saying: “Consumer demand along with the increasing sophistication and streamlined last mile delivery means that perceived barriers will no long exist. The future is very exciting and I am optimistic that the challenges faced will be overcome.”

Horses flown to Asian Games

CARGOLUX Airlines International has flown high-value horses from Luxembourg to Turkmenistan to participate in the Equestrian Jumping competition at the 2017 Asian Indoor and Martial Art Games. The airline worked in cooperation with Peden Bloodstock, which specialises in horse transport, to move the animals to Ashgabat in mid-September. After the completion of the games on 27 September, Cargolux carried the horses back to Luxembourg, again in cooperation with Peden Bloodstock. Relying on the support of its handling agent, LuxairCARGO, the Cargolux team used its state-of-the-art HMC horse stalls

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that offer increased safety and comfort for the four-legged guests. The HMC provides higher stability and its double layer pallet base also reduced the motion feeling for the horses, greatly reducing the stress the animals feel compared to single layer pallets. Cargolux is a major player in the transportation of horses by air, and is a member of the Animal Transport Association, whose aim is to ensure that animal handlers and attendants are fully qualified. The games, which were awarded to Ashgabat by the Olympic Council of Asia in 2010, involved 6,000 athletes and officials from 65 teams.


LIVE ANIMAL TRANSPORTATION Manatees among the animal shipments at AirBridgeCargo

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irBridgeCargo Airlines (ABC) has completed 100 live animal shipments in 2017 transporting a wide variety of animals including two manatees, says general director Sergey Lazarev (pictured). He says the manatees were one of the most interesting requests ABC has received. With only 76 manatees living in zoological garden across the world, there are not enough females in Europe, so ABC was asked to move two females from Singapore to Warsaw in early September. This job required all of ABC’s expertise, as manatees are water mammals that require special conditions during transportation. Lazarev explains: “In order to ensure their lungs were protected from the pressure of their body mass, the two female manatees were placed on hammocks in special crates and they were joined on the flight by six attendants – including their zookeeper from Singapore – to ensure they were calm and safe throughout their journey.” This mission was a success, Lazarev says: “ABC has highly qualified and trained staff for such specific transportations and they ensured

the manatees and their attendants were safely delivered to their new home in Poland.” Animal transportation is a diverse market, and ABC has carried everything from horses, dolphins, pigs and bulls to tropical fish, bears and even a walrus. Lazarev comments: “Once you have established your credentials for the care and quality of service you provide, you can be asked to carry a wide range of animals.” He says ABC ensures all live animal bookings are given the highest priority of their journey, saying: “We make sure we offer the shortest transit times and work with the animal handlers and keepers to ensure every animal is calm and safe both on the ground and in the air.” The ‘abc CARE’ product for live animals was developed to combine all the knowledge and expertise gained through years of carrying animals for breeding programmes, conservation projects, sporting and entertainment events. ABC can supply special containers including horse stalls and kennels, to ensure the comfort and safety of animals during loading and unloading, and on the flight. Lazarev says: “We also have special ground handling facilities at the majority of our online stations and we can provide the possibility for cargo attendants to accompany live animals onboard their flight.” The modern fleet of aircraft also help ensure a high quality of service. Lazarev says: “Our latest 747-8F aircraft provide four independently-controlled temperature zones which enable us to create separate environments with

a range of +4 to +29°C. This helps us to ensure we create the most comfortable temperature onboard the aircraft for the live animals we are carrying.” The safety and well-being of the animals is paramount, and Lazarev says this requires a high level of knowledge and preparation as well

as liaising closely with the customer. He says: “All of the services we provide fully comply with IATA’s AVI live animals regulations and we make sure our special advisors are always on hand to offer help and support to our customers and to answer any questions they have regarding the transportation process.”

Pandas fly with KLM and Lufthansa

PANDAS have received high quality of service on flights to Europe with two travelling to Amsterdam with KLM and Lufthansa Cargo transporting two to Berlin. Xing Ya and Wen Wu were the first to fly to Europe, travelling from Chengdu to Amsterdam Airport Schiphol in a KLM Boeing 747 Combi, on their way to their new home at Ouwehands Zoo in April. After touching down they were transferred to the KLM Animal Hotel where they were shown to specially invited guests and members of the press on completion of the formalities. At the time, KLM Cargo executive vice president, Marcel de Nooijer said: “KLM Cargo is honoured to have been able to transport the giant pandas from Chengdu

to their new home at Ouwehands Zoo. It is a special moment for the Netherlands to welcome the pandas after so many years. “As a Dutch cargo carrier, KLM Cargo has an excellent reputation to maintain in the field of animal transport and this task serves as a great compliment to the knowledge and expertise possessed by our staff.” This was the fourth time KLM had transported pandas worldwide but the first time they had been flown from China to the Netherlands. In June, Meng Meng and Jiao Qing travelled on a Lufthansa Cargo MD-11 Freighter from Chengdu to Berlin. They were accompanied by two keepers from the Chengdu Research Base of Giant Panda Breeding and a senior vet from Berlin Zoo. The special guests were travelling to their new home at Berlin Zoo, where they will stay as part of a 15-year research mission, and a new facility at the zoo was constructed especially for them. The new villa covers 5,500 square metres with a vermilion archway and bamboo fence.

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TURKEY

Network growth set to continue at Turkish

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urkish Cargo has added new freighter routes this year, but is not finished yet and is eyeing more connections. In the last six months, it has started services to Sao Paulo, Paris, Johannesburg, Kano in Nigeria, Oslo and Antananarivo in Madagascar. Turkish Cargo sales vice president (Turkey), Omer Kilic (pictured) says all the new routes have performed well and the carrier will probably increase the frequencies sometime. He adds: “Turkish Airlines recently signed an agreement for a third Boeing

747-400F which is expected to serve new routes as well, yet to be confirmed and added to the existing network.” Turkish now flies to 300 cities including 72 airfreight destinations, and Kilic says markets in Africa, South America and India would be “worth considering deploying resources to develop business” in the near future. 2017 has been a promising year for Turkish in buoyant global market conditions and he notes its second quarter goals have been exceeded and yearly targets almost reached. Kilic notes: “Turkish Cargo’s performance in 2017 has mainly been fed by e-commerce and perishables. However, the company’s investments in cargo facilities, fleet and certifications have generated significant increase in pharmaceutical and general cargo as well.” In recent years, Turkish has made significant

investments to grow its pharma and cool chain business with the construction of dedicated pharma storage rooms and RKN containers. Kilic explains within this scope, the company acquired IATA CEIV Pharma Certification, which will allow it to provide customers with safer and higher quality of pharma transport services and enhance efforts to increase its pharma shipment market share. As for how different trade lanes have been performing, he says: “This year, the surprise was Doha. Additionally, due to the low currency level of US dollar, exports to the US have significantly increased and North American routes performed well within Turkish Cargo network along with of course China, which is one of the main drivers.” Growth will be aided by the opening of Istanbul New Airport next year, which is one of the largest infrastructure projects in Turkey, with an investment of $10.3 billion and is planned to be an international crossroad contributing to the Turkish economy. The first phase is scheduled to start in Octo-

ber 2018 with a capacity of 2.5 million tonnes of cargo and Kilic says it will allow Turkish to double its capacity through to 2025. New aircraft are set to be added the already strong 15 freighter fleet and the carrier will add two Boeing 777-200 Freighters, which will be joining by the end of 2017. The first aircraft is expected to be delivered will arrive in mid-November and the second will be operational by the end of December. There are opportunities in future. Kilic says explains: “Turkish Cargo strives to innovate and offer the most convenient and reliable services for the specific air cargo needs of its customers. “With investments made in the construction of new pharma facilities along with IATA CEIV certification, Turkish Cargo’s aim is to raise standards and provide advanced handling of pharmaceutical products that meet the requirements of the manufacturers. “Furthermore, the New Istanbul Airport will be an opportunity to keep growing with an increased capacity in the coming years.”

Istanbul to welcome logitrans once more

LOGITRANS returns to Istanbul from 15-17 November for the 11th time and it will aim to promote relations between Turkish and international companies. This year’s event will take place at the Istanbul Expo Center (IFM) and will see thousands of logistic professionals attending from all modes of transport and parts of the supply chain. The trade show is organised by EKO MMI Fuarcilik Ltd, the joint venture between Messe München International and EKO Fair Limited. Exhibitors will include Qatar Airways, Schenker, and Lufthansa Cargo. Last year’s event was attended by 13,500 visitors from 50 countries and saw 180 exhibitors from 26 nations. The conference program will also focus on the most important trends in this rapidly changing region, such as how huge amounts of existing data can be made usable for companies in the most efficient manner. Messe München member of the management team, Gerhard Gerritzen says: “Using the logitrans, we’ve created a platform to

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promote the establishment of logistics networks between Asia and Europe. The excellent figures from the previous year and developments in terms of the registrations for the coming logitrans demonstrate how important it is for companies to remain in close contact, even in economically difficult times. “This exhibition is an essential meeting point in order to continue developing business relations between Turkey and Europe.” The organisers say Turkey has an excellent geographical location, and major investments in infrastructure are taking place such as the third bridge over the Bosporus and construction of Istanbul New Airport. Visit www.logitrans.com.tr for more information.


TURKEY

Istanbul New Airport base on the radar of Pegasus

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egasus Airlines is planning on opening a base at Istanbul New Airport (pictured) to support growth plans. This move would support its Istanbul Sabiha Gokcen Airport base and open up business opportunities on the European side of Istanbul. The Turkish belly cargo carrier’s chief commercial officer, Guliz Ozturk was speaking about the airline’s plans to Bloomberg last month, where she also said Pegasus would have a significant fleet after a third runway opens in 2020 at the new gateway. The $11 billion Istanbul New Airport is set to open sometime next year and more than 100 carriers are set to operate into it. In the first phase, the airport will have a cargo capacity of 2.5 million tonnes when first opened, but eventually have capacity for 5.5 million tonnes. Speaking at last month’s Aviation Festival in London, Ozturk also says the carrier has recovered from difficulties. She explains despite tough times for the industry and the region, the belly cargo carrier is optimistic for the rest of 2017 and forecasts growth following a recovery in demand.

Aerospace initiative launched

Ozturk adds: “With a focus on our 3Cs business strategy this year to streamline Cask, Cash and Capacity we have been able to weather the market conditions and remain as Turkey’s fastest growing airline. “A strong domestic market in Turkey and growing traffic from all the regions we connect via our hub and spoke model - including Europe, the Middle East, Russia and Ukraine has meant we’re on track to meet and exceed the targets for 2017.

“It’s been supported by network growth with the launch of new destinations including Abu Dhabi and four destinations in Russia as well as from our new second hub in Ankara.” Stressing the importance of the carrier’s continual investment in its new fleet to business performance, Ozturk says Pegasus has increased the number of new Airbus A320 Neo purchases planned for 2017 from three to six. Pegasus has a network of 108 routes - 36 in Turkey and 72 international.

BOEING and the Turkish government have announced the Boeing Turkey National Aerospace Initiative. The initiative is designed to support the growth of the Turkish aerospace industry, in conjunction with the targets set by Turkey’s Vision 2023, and strengthen Boeing’s market presence. Boeing vice chairman, Ray Conner explains: “Boeing’s relationship with Turkey spans more than 70 years and we have outstanding long-term partnerships. “Working together with Turkey, we are now taking our collaboration to the next level, which will accelerate the growth of the Turkish aerospace industry while achieving Boeing’s long-term objective to expand its presence in the marketplace.” The initiative outlines a strategic framework that aligns Boeing investment and programs with the government, Turkish airlines, aerospace service companies and industry suppliers in research, engineering and skills development. It reflects Boeing’s confidence in the long-term outlook for Turkey as a significant market and a leading global industry participant. Boeing has maintained a long-standing and mutually beneficial relationship with Turkey since the 1940s. Last month, Turkish Airlines revealed its intention to order 40 787-9 Dreamliners. Turkish Airlines chairman of the board and the executive committee, lker Aycı says: “Our intent to purchase these Dreamliners is to meet the demand for widebody airplanes at the 3rd airport, further strengthen our fleet capacity on the 100th anniversary of the Republic.”

Hub volumes on the rise TURKISH gateways in the main saw strong tonnage surges in July, according to the Airports Council International (ACI) Europe. The country’s busiest hub Istanbul Ataturk Airport handled 92,596 tonnes, up 32.2 per cent on the same month last year, but Istanbul Sabiha Gokcen International Airport handled 4,468 tonnes, which was down 6.1 per cent on July 2016. In other parts of Turkey, Izmir Adnan Menderes Airport handled 3,047 tonnes, an uplift of 115.6 per cent on the same month last year, while Ankara Esenboga International Airport handled 1,144 tonnes, a rise of 17.7 per cent and Antalya Airport 782 tonnes, an increase of 20.3 per cent. In the first seven months of 2017, the picture is largely positive with Istanbul Ataturk handling 578,350 tonnes to date up 17.4 per cent, Istanbul Sabiha Gokcen 37,068 tonnes, up 6.2 per cent, Antalya 5,075 tonnes, up 11.4 per cent, Ankara 7,037 tonnes, a fall of 5.8 per cent and Izmir 15,240 tonnes, a surge of 39.8 per cent.

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ACW 9 OCTOBER 2017

9


NEW ZEALAND Perishables traffic drives Christchurch Airport tonnage

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hristchurch Airport is forecasting a strong peak season as tonnage continues to grow. The gateway handled more than 30,000 tonnes in the year ending 30 June 2017 - a five per cent rise on the previous 12 months, but in the last quarter tonnage was up 15 per cent, pointing to a strong peak. Trade development manager for New Zealand, Gareth Williamson says the gateway is seeing a positive upward trend in air cargo, and figures suggest a “very strong upcoming export peak season in line with our ongoing aviation capacity growth”. He notes cargo has been relatively flat for the past two to three years, and the lack of widebody capacity has “constrained” the freight industry. But Williamson says recent wins in the aeronautical area have allowed the airport to anchor its position as the gateway to and from the South Island. “We are very optimistic about the short and medium term in terms of growth, and most importantly, working alongside industry to realise capacity wins which provide a tremendous economic multiplier for the South Island,” he adds. At present, 10 carriers service Christchurch, providing a mix

of wide and narrowbody capacity, along with five weekly Qantas Boeing freighter flights. Belly services include seven to 10 Singapore Airlines services a week, an Emirates daily A380 to Sydney and Dubai, five to seven times a week to Guangzhou with China Southern, China Airlines three times a week and Qantas flights into Australia. In December, Cathay Pacific launches thrice weekly flights direct to/from Hong Kong, using an Airbus A350-900, and the

airport sees great potential for freight uplift on this new service. Williamson says the airport is working hard with existing airline partners to increase freight capacity and frequencies and constantly assessing future opportunities for growth. He explains: “We expect the majority of freight uplift will come from belly capacity, as the export markets here in the South Island are extremely receptive to regular and constant freight capacity, which provides a consistent level of capacity and guaranteed market access. “Christchurch is a perfect gateway for new generation aircraft such as the 787 and A350, as they have the right seating capacity for our market, as well as offering significant cargo opportunities. “We occasionally have a specific demand for dedicated freighter movements, and this is a pleasing partnership between grower, airline and airport.” A great example was the seasonal cherry uplift from Christchurch in January 2017 when Singapore Airlines operated 747 charters moved 300 tonnes for Chinese New Year celebrations. Asia, Australia and North America are the key markets, but the majority of US traffic transits in Auckland and Sydney. Williamson says perishables exports accounts for up to 75 per cent of cargo traffic and the South Island produces high quality meats, fruit and seafood. As for imports, the growth of e-commerce and high-tech manufacturing is driving an increase. New Zealand lamb and beef are some of the best and plenty of the meats are flown from Christchurch while fresh salmon, lobster and other seafood is also in high demand.

Perishables in high demand

Williamson notes several firms on site have cool chain facilities and as speed to market is essential, there are overnight road services, which feed produce such as salmon and chilled meats into the airport early in the morning for flights the same day. Freight is important in network planning and he expects the majority of capacity growth will come from existing airline partners through upgauging, or frequency increases to existing services, while it also recognises the need to better feed products into the Auckland long-haul network, particularly to North America, and is looking at ways to increase uplift on this lane. The biggest challenge is increasing widebody capacity to better serve the freight community. Williamson notes a 2013 report said there is an equal amount of airfreight demand from the South Island, which is unable to be lifted due to capacity constraints. He adds: “While we have had a successful four years subsequent to that report, with China Southern, China Airlines, Cathay Pacific and seasonal Air NZ widebody services, the underlying theme remains true. “We are working hard with our airline partners on a series of solutions which will allow us to export more and more top quality produce to global markets. “We believe growth in value-added perishables, e-commerce, pharmaceuticals and high-tech manufacturing is reason to be very optimistic about stable and ongoing increases in our volumes.”

Belly capacity increasing AIRLINES have been adding belly capacity at Auckland Airport. Thai Airways has moved to daily flights using a Boeing Dreamliner while Philippine Airlines is now using an Airbus A340, allowing it to fly directly between Auckland and Manila non-stop rather than flying via Cairns. Air New Zealand is putting extra flights on to Vancouver, Houston and Buenos Aires during the summer ahead of a big expansion in flying to Bali and Hawaii from next autumn. Hawaiian Airlines has added two new flights, to its current three, from next March. Air New Zealand is also investigating new ultra-long-haul routes, including Chicago and routes in South America. United Airlines and American Airlines are using bigger aircraft in the summer. United will operate a Boeing 777-300ER aircraft instead of a 787-9 on its seasonal Auckland-San Francisco route when it starts services from 31 October and is moving to six services a week from daily through to 17 December and daily through to 24 March. American returns on 6 October will move from a 787-8 to a larger 787-9 with extra capacity for cargo.

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ACW 9 OCTOBER 2017

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TRADEFINDER Airlines

Freight Forwarders

Turkey

India

Freight Forwarders Caribbean

Freight Forwarders

Denmark

Hong Kong

Training

Iran

Freight Forwarders USA

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ACW 9 October 2017

11 03/10/2017 12:39


NEWSWEEK ULD tracking technology launched Pharma@Changi takes off

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CL Airshop has teamed up with CORE Transport Technologies to bring Bluetooth-enabled logistics technology to the air cargo industry, by jointly providing automated tracking of unit load devices (ULD). Both say predictive analytics and big data are just part of the new efficiencies the innovation can bring to carriers, who will also be able to track cargo loads by the container and pallet. The tracking system will also give real-time monitoring and status reports, and reduce both the loss and/or the overstocking of pallets and other cargo equipment. The two companies have carried out testing with carriers and an array of multiple ULDs, with 100 per cent tracking reliability. A global air carrier also conducted another CORE test which succeeded with hundreds of ULDs. Both say market readiness is now complete and regulatory aspects with FCC and FAA rules have been addressed, plus rigorous adherence to RTCA-DO-160 (Environmental Conditions and Test Procedures for Airborne Equipment). CORE managing director and chief executive officer, Ian Craig says: “By partnering with ACL, we introduce a new benefit to leasing ULD Equipment, whereby the lessee can now have an automated avenue to track their leased ULD even when it may be outside their own system. Core grants ACLAS the worldwide exclusive right to license, sublicense, and sell the ULD tracking technology, in tandem with us. ACLAS customers will always know where their ULD’s are located and when they are being utilised.” ACL executive vice president, Wes Tucker says

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the partnership is not only about tracking ACL’s 40,000 ULDs, it’s also about partnering with a formidable technology company to bring electronic ULD tracking to the airline industry. He adds: “This is a positive game-changer for ACL Airshop and its hundreds of airlines clients. COREInsight ULD service tracks these valuable assets in real time. FOR ACL’s airlines clients, we predict this will be a low-cost logistics efficacy enhancement that will remarkably improve how we can help them manage their fleet and save money long-term.” ACL chairman, Steve Townes says: “Speaking for our entire team of Ranger Airshop co-owners, we are excited to advance and accelerate this new logistics sophistication for ACL’s airline clients, and we are delighted to be partnering with such an excellent teammate as CORE Transport Technologies. “We are aiming to accelerate Bluetooth tracking into usage for the many airlines customers who will value the compelling new efficiencies it is designed to deliver for their ULDs.”

CHANGI Airport Group (CAG) has formalised the Pharma@Changi initiative, a community of partners from the air cargo supply chain who will work towards strengthening Changi’s capabilities to handle pharmaceuticals. Companies who signed the memorandum of understanding are Bollore Logistics, CEVA Logistics Singapore, DHL Global Forwarding, dnata Singapore, Expeditors Singapore, Global Airfreight International, SATS, Schenker Singapore and Singapore Airlines Cargo. All have achieved International Air Transport Association Center of Excellence for Independent Validators Certification in Pharmaceutical Handling (IATA CEIV Pharma) and will jointly pursue best standards in pharma handling and promote CAG as a trusted and reliable pharma air cargo hub in the region.

Initiatives will include assessing new and emerging pharma logistics trends and technologies, as well as implementing of pilot projects. CAG managing director for air hub development, Lim Ching Kiat says the initiative aims to further solidify the partnership among air cargo players at Changi to pursue best standards in pharma air cargo handling. In the first eight months of 2017, Changi Airport handled more than 15,500 tonnes of pharma cargo. It is also part of Pharma. Aero.

New booking system for Alaska Air Cargo ALASKA Air Cargo has launched a new booking and tracking capability powered by SmartKargo. Alaska’s adoption of the SmartKargo Portal functionality now leverages all IATA standard C-IMP messages to communicate with the airline’s existing systems. It also provides technology to adopt paperless transformation processes, including e-AWB and capability to digitally collect, store and transmit documentation via e-pouch. In addition, the advanced SmartKargo Link capability facilitates interline opportunities by

streamlining processes and communications for Alaska Air Cargo and its partner airlines. The booking engine also features direct access to bookings by customers via passenger-style airline booking interface, templates for repetitive bookings, and real-time pricing, capacity allocation, confirmations and notifications. The functionality conforms with all regulatory requirements and is integrated with all applicable checks for ‘Known Shipper Requirement’ and automated integration with TSA data.

ACW 9 October 17