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MANAGEMENT

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WORLD ACW Digital is sponsored by AIRPORTS.COM FREIGHTERS.COM

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08/04/2019 12:48


The weekly newspaper for air cargo professionals No. 1,048

9 September 2019

Wood you build a timber hangar?

Yamaha and Astral promote drones

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stral Aerial Solutions has sealed a deal with Yamaha Motor Company to provide last mile air cargo delivery and crop spraying services

in Kenya. The deal, signed at the 7th Tokyo International Conference on African

Development will see Astral providing market entry support for the Yamaha Fazer R G2 drone. Astral Aerial Solutions aims to provide drone services in Africa for a variety of services including transporting humanitarian cargo and medical deliveries. Sanjeev Gadhia, founder and CEO of Astral Aerial says the company’s mission is to create a drone revolution in Africa by adapting technology to solve the continent’s problems so it can move into the future. He says: “Our association with Yamaha will provide us with the necessary impetus to scale our delivery capacity in the agricultural and civil engineering fields as the Fazer range of drones enjoy unrivalled and proven reputation in agricultural

0.9% but freighter volumes declining 16.4%. Full freighter movements decreased 14.4% though belly air transport movements increased by 3.3%. Shanghai, China remained Schiphol’s main destination with 88,481 tonnes in the first half of 2019, followed by Mos-

INSIDE TRADE WAR HITS AIR CARGO

TRADE wars are having an adverse impact on air cargo, with US-China trade volumes down 14% this year, says IATA. Demand measured in ... PAGE 2

START-UPS MAKE PITCHES

performance; a testament to Yamaha’s commitment to remotely piloted helicopters and precision agriculture solutions.” In Kenya, Astral Aerial will intro-

duce the Fazer R G2 to uninhabited areas out of visual range with a payload of 35 kilos, at a maximum altitude of 2,800 metres and a cruising range of 90 kilometres.

Schiphol at risk of becoming unattractive

CARGO volumes at Amsterdam Airport Schiphol were down 9.2% in the first half of 2019 due to a weaker market and fewer freighter movements, which risks making it unattractive to forwarders. The Dutch airport handled 767,519 tonnes, with belly cargo volumes up

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cow, Russia with 38,633 tonnes. Bart Pouwels, head of cargo at Schiphol says: “The mid-year figures reflect our expectations for a decrease in overall freighter volume as we continue to face slot scarcity, on top of a weakening of the global air cargo market.” He says Schiphol is concerned about the negative developments within the air cargo market and the consequences it has for airlines at the airport. Pouwels says: “With a decrease of full freighters, we may become less attractive for freight forwarders, as the forwarders need a mix of full freight and belly cargo to operate sustainably. This may result in forwarders leaving Schiphol and the airport becoming less attractive for airlines as belly cargo contributes significantly to certain

routes.” Mid-year figures decreased across all markets with Asia inbound down by 10% to 131,725 tonnes and outbound by 130,520 tonnes. Europe inbound declined 15% to 47,493 tonnes and outbound by 8% to 54,756 tonnes. Inbound North American traffic was down 13% to 56,314 tonnes though outbound cargo was up 4% to 82,242 tonnes. Latin American inbound traffic decreased 10% to 58,666 tonnes and outbound volumes by 8% to 37,184 tonnes. Inbound cargo from Africa was down 20% to 46,518 tonnes and outbound by 4% to 25,489 tonnes. Middle East inbound traffic was up 5% to 44,603 tonnes but outbound decreased 6% to 52,008 tonnes.

A total of five companies with cargo-related products and services made it through to IAG Group’s Hangar 51 ‘Pitch day’ in Madrid on 3 September ... PAGE 3 HEAVY CARGO GAINS WINGS

CONSIDER your cargo too big to fly? Think again - specialist air carriers have ingenious solutions to handle the biggest and most awkward loads ... PAGES 4-5

FOCUSED EFFORT IN MOSCOW

RUSSIA’s largest cargo airport, Moscow Sheremetyevo International Airport is focusing efforts on improving infrastructure and the quality of ... PAGE 6

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IATA: Air cargo a victim of US-China trade war

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rade wars are having an adverse impact on air cargo, with US-China trade volumes down 14% this year, says the International Air Transport Association (IATA). Air freight demand measured in freight tonne kilometres (FTK) contracted 3.2% in July, marking the ninth consecutive month of year-on-year declines. It was impacted by weak global trade and the intensifying dispute between the US and China. Global trade is down 1.4% but US-China is down 14%. The global Purchasing Managers Index does not indicate an uptick, with new manufacturing export orders pointing to falling orders since September 2018. For the first time since February 2009, all major trading nations reported falling orders. Alexandre de Juniac, director general and CEO of IATA says that trade tensions weigh heavily on the air cargo industry, and higher tariffs are not only disrupting trans-Pacific supply chains but worldwide trade lanes. He says: “While current tensions might yield short-term political gains, they could lead to long-term negative changes for consumers and the global economy. Trade generates prosperity. It is critical that the US and China work quickly to resolve their differences.” Only Africa grew strongly in July, up 10.9% helped by increasing

links with Asia. Africa only represents 1.6% of global air cargo. Asia-Pacific contracted 4.9% due to the US-China trade war and weaker manufacturing conditions. North American consumer demand could not outweigh US-China trade tensions, pushing demand down 2.1%. European airlines fell 2% due to weaker German manufacturing and Brexit uncertainty. The Middle East was down 5.5% due to escalating trade tensions and slowing in global trade. Latin America also grew, with demand up 3% due to economic improvements in Brazil, though other countries including Argentina remain a cause for concern.

China Airlines finalises 777F deal

CHINA Airlines has finalised an agreement with Boeing to order six 777 Freighters to modernise its fleet. The deal, worth $2.1 billion at list prices was announced at the Paris Air Show in June and will replace older 747 Freighters. The 777 can fly long-range trans-Pacific and has a range of 6,000 nautical miles with a 20% higher payload than other freighters including 747-400Fs. Hsieh Su-Chien, chairman of China Airlines says: “Air cargo is an important part of our overall business and the introduction of these new 777 Freighters will play an integral role in our long-term growth strategy. As we transition our freighter fleet to the 777Fs, this will enable us to deliver world-class services to our customers more efficiently and reliably.” Ihssane Mounir, senior vice president of commercial sales and marketing for The Boeing Company says: “With the global air freight market forecasted to double over the next 20 years, the 777 Freighter’s market-leading capabilities and economics will help China Airlines extend their network and grow their future cargo business.”

Azul delivers for Mercado Libre

AZUL Cargo Express has signed a commercial agreement with Mercado Libre, making it the e-commerce company’s only air-shipping partner in Brazil. John Rodgerson, CEO of Azul says: “When it comes to shipping, customers want fast delivery and reliable service, and this is what we do best. We fly to more than 100 domestic destinations, have 250 franchise stores nationwide, and are able to reach more than 3,500 municipalities within 24 hours. Moreover, we are the only airline on 72% of the routes we serve. Our breadth of reach and delivery speed is unique in the country.” Leandro Bassoi, vice president of Mercado Libre’s shipping unit Mercado Envios says: “To our customers, this partnership means faster deliveries through Mercado Libre’s and Azul’s extensive network, covering the entire country with almost 900 daily flights. With Azul, we expect to significantly increase both the number and speed of deliveries.”

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Start-ups make Hangar 51 pitches

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total of five companies with cargo-related products and services made it through to IAG Group’s Hangar 51 ‘Pitch day’ in Madrid on 3 September. A total of 36 firms representing all aspects of the aviation business presented their ideas to the airline group. Following the pitch day, around ten of the 36 firms will be selected to co-work with the airline group for ten weeks in pilot programmes and, possibly, receive investment from the group. Head of digital Glenn Morgan added that the number of applicants for the Hangar 51 programme continued to increase year on year and that many previous Hangar 51 alumni had gone on to attract significant investment and expand their businesses. Firms presenting in Madrid on 3 September included Atheer, which said that its augmented reality headsets could be used to model processes such as cargo acceptance for training purposes. Keyo said that its security system that scans the veins in a person’s palm could be used to control access to warehouses and other cargo facilities. Navaigo said it could use predictive analysis using existing and new data to predict expected time of arrival for shipments or likely aircraft load factors when planning new airline routes. The com-

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C$50m upgrade for Mirabel

ACWBITES LEE Gainsbury left his role as ULD ops manager Europe at Unilode Aviation Solutions on Friday 6 September to pursue alternative opportunities. Stephen Gillies, head of ULD management EMEA says Jerry George, Geeta Hitchings, Sue Ridgley, Sara Bouali and Bruno Abrantes will continue to report to him.

pany was already working with German freight giant DB Schenker. Swiss-based Rigi Techologies predicts that there will soon be an upsurge in the use of drones to perform deliveries from air cargo terminals to final customers, cutting out slow and expensive road feeder services. Discoperi said its artificial intelligence and machine learning technology could be used to track logistics flows and show ‘hot’ or cold’ spots where traffic was too heavy or there was unused capacity in the system.

JOHN Slosar will retire as chairman of Cathay Pacific at the conclusion of the next board meeting on 6 November. Patrick Healy, who is managing director of Swire Coca-Cola, a director of John Swire & Son and a non-executive director of Swire Properties will take over. UK-based international project logistics specialist Trans Global Projects Group has appointed Martin Ollmann as an additional managing director for its German arms Trans Global Projects and Natco. Ollmann joins Christian Hager in managing the group’s latest acquisitions in Germany.

reight and logistics at the International Aerocity of Mirabel will receive a major upgrade after the government of Canada approved C$50 million of funding. The announcement was made by the Honourable Marc Garneau, minister of transport and work will include refurbishing and extending the main apron to a cargo apron; improving road access; increase aircraft parking capacity; and building 20,000 sq m of warehouse space. The project will support the export of Canadian goods via Montreal’s Mirabel airport, creating necessary facilities to accommodate growth in exports and imports. Garneau says: “Our government is proud to invest in this infrastructure that plays a key role for Canada’s economy. By investing in our transportation and trade corridors we are stimulating economic growth and creating quality middle-class jobs.” The government of Canada is supporting infrastructure projects, and says trade diversification is a key component of the National Trade Corridors Fund that improves the transport of goods to overseas markets and generates overseas trades.

Globe Air Cargo signs exclusive Egyptair contract

ECS Group’s Turkish subsidiary, Globe Air Cargo Turkey has signed an exclusive contract with EgyptAir Cargo to market its cargo from 1 September. The subsidiary has been EgyptAir Cargo’s preferred sales agent for three years and signed the contract to manage marketing of cargo capacity on 21 August. Based in Istanbul and founded in 2015, the seven employees aim to develop and secure freight opportunities for current and future destinations, and increase recruitment and accelerate growth. Nursel Guven, managing director of Globe Air Cargo Turkey says: “To be chosen as the GSA for EgyptAir and have the opportunity to continue serving them is very exciting – exciting to know that we can be a part of their continuous development.” Sauro Martinelli, regional manager Europe at ECS Group says: “With this partnership between EgyptAir and GAC TR, we are once more opening up a huge range of possibilities to local airlines and GSAs. It’s proof that as a member of our group, a GSA can become a significant regional player for a major airline.”

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HEAVYLIFT

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Heavy cargo gains wings Consider your cargo too big to fly? Think again – specialist air carriers have ingenious solutions to handle the biggest and most awkward loads, Chris Lewis reports. Power industry generates heavylift business for Cargolux

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he 43-tonne generator shaft flown by Cargolux from Luxembourg to Zhengzhou on 8 August may not be the heaviest single piece of freight that the all-cargo airline has moved but it is significant in that it is the first item above 35 tonnes that it has flown into mainland China. Cargolux has carried pieces of up to 54 tonnes on its scheduled Boeing 747 freighters to other parts of the world including the US, Singapore and South Korea but this was a clear demonstration of its capabilities in the fast-growing

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Chinese market. In fact, says director of ground engineering, Paul Hoffmann, the heavyweight or outsize market is currently growing at around 60% a year with much of the increase coming from China. To most people, heavylift air cargo often conjures up giant aircraft like the AN-124 but outsize shipments currently account for 10% of all business at Cargolux, which operates a fleet of 747 freighters. Moreover, these are carried on its scheduled flights, and are offloaded during regular ground time at main airports. While a 747F clearly isn’t quite in the same league as an AN-124, Hoffmann reckons that the aircraft can realistically handle pieces of up to 58 tonnes on a 40ft pallet. Usually, the limitation is not so much the aircraft as the available lifting and handling equipment. One reason why the recent 42-tonne shipment to Zhengzhou is considered such a breakthrough is that it required careful coordination of five pieces of equipment - two high-lifters and three 50-tonne cranes to get the piece off the aircraft. It is as much a people issue as an equipment one, adds Cargolux manager of load control Eric Reisch – having a competent and willing handling agent is vital in handling outsize pieces.

Cargolux also sent out an experienced loadmaster from Luxembourg to supervise the process. Competition between the scheduled cargo operators and the charter operators of AN-124 and similar aircraft has always existed. However, Hoffmann considers that Cargolux is in a unique position among the scheduled carriers because of the sheer size and flexibility of its fleet. Where it is feasible, moving pieces on a scheduled cargo flight can be much cheaper than chartering a super-large plane. Often, it is also a speedier process as there is no need to apply for permits; Cargolux was able to arrange the Zhengzhou flight in just 5-6 days because all the necessary groundwork was already in place. However, the generator shaft shipment can be seen as the culmination of many years’ work in which Cargolux has been gradually pushing the envelope in terms of the size and weight of the shipments it moves to China. Cargolux sees Zhengzhou as a strategic base for future shipments. As well as its location in central China, local roads are well geared up to onward movement – many of these loads are outsized in trucking as well as airfreight terms. Airfreighting of large items to Zhengzhou could also be relatively attractive compared with ship-

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ping, as the region is fairly remote from ports and any sea movement would be followed by a long road journey from the nearest deepsea port.

The air carrier’s carrier

The overall airfreight market may be declining but the heavylift segment is still on an upward curve, especially transportation of aerospace spare parts, reports Volga-Dnepr deputy general director for special cargoes, Fedor Novikov. Growth in international aviation and increasingly modern and sophisticated planes has fostered an increase in shipments of both essential components and spare parts. Aircraft-on-ground (AOG) situations inevitably occur from time to time and airlines can rely on support of their industry peers in delivering much-needed spare parts to mitigate the risks and eliminate ground time. Volga-Dnepr is currently focusing on the transportation of aircraft engines - both for routine maintenance and AOG cases – and this requires a high level of expertise and years of experience. Novikov comments: “From our perspective


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the demand for air cargo XL transportation will keep on increasing despite certain ups and downs in our sector.” Volga-Dnepr’s scheduled arm, AirBridgeCargo Airlines has been reinforcing its specialist ‘abc XL’ product for transportation of oversized and heavy shipments. ABC provides a dedicated XL shipment service including all necessary checks on cargo door dimensions, space utilisation, the structural limit of the aircraft or ground support equipment availability. For extra-heavy cargo the workload increases still further, he explains: “Our experts have to perform additional calculations and work with various types of shoring materials in order to comply with aircraft

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restrictions and safety regulations. In special cases, when a shipment’s dimensions are close to cargo door limits, we perform 3D modelling of future loading procedure to ensure that the cargo will be properly loaded.” Even where, at first sight, the cargo cannot fit into a B747, “we try to be creative and look outside the box to make it feasible. For instance, certain elements of the cargo may be dismantled and packed separately. Otherwise, we transfer the request to our colleagues at Volga-Dnepr Airlines to see if the cargo can be transported by AN-124-100 or Ilyushin 76TD-90VD.”

Forwarder gets into deep water

CEVA Logistics has renewed its contract with Borr Drilling for a further year to the end of August 2020. Borr Drilling is a major contractor to the oil and gas exploration industry and owns and operates deep water jack-up rigs worldwide. CEVA and Borr Drilling have been working together since Borr’s inception in 2016 and the forwarder’s Rig Hub logistics centres in Houston, Aberdeen, Amsterdam, Singapore and Dubai were a decisive factor in extending the contract. CEVA offers a full spectrum of freight management and contract logistics services including project cargo and out-of-gauge for air and ocean shipments, along with reverse logistics, turnkey project management and heavylift.

Keeping a low profile

Aerospace cargo is a growing segment for specialist heavylift carrier, Antonov Airlines, says commercial director, Andriy Blagovisniy. However, transportation of outsized and super heavy cargoes – the dimensions and concentrated load on the aircraft cargo floor - often poses challenges that require a specific engineering solution. Antonov engineers have developed special transportation frames and packaging, as well as bespoke loading equipment, which allows for even load distribution, secure cargo lashing and safe loading and unloading. For transportation of A220 fuselage sections and other outsized airspace components, as well as 4-metre high satellite containers, Antonov

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Airlines designed and manufactured special low-profile loading equipment with a height of only 8cm, the thinnest equipment in the AN-124 airlift market and allowing transport of cargo that was previously impossible to load. For transportation of the Rolls Royce Trent XWB engine, Antonov Airlines specialists developed new loading technology taking into account the dimensions and specific design of its frame for the AN-124-100. In August an Antonov AN-124-100 moved a Rolls Royce Trent XWB engine in a special Obelix transport frame with a total weight of 44 tons from East Midlands, UK, to Stennis International Airport in the US. Earlier Antonov Airlines transported sections of fuselages of Airbus A220 aircraft, 4.1m high, from Tianjin, PRC, to Montreal for final assembly of the aircraft in Canada.

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RUSSIA AND CIS

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Focused effort to develop cargo in Moscow

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s Russia’s largest cargo airport, Moscow Sheremetyevo International Airport is focusing efforts on improving infrastructure and the quality of service for customers and airlines. In late 2017, the Moscow Cargo terminal was commissioned, a one-of-a-kind facility in Russia with a total area of 42,300 sq m. It is designed to handle 380,000 tonnes of cargo per year, making it the largest in Russia, the CIS and Eastern Europe. The airport tells Air Cargo Week: “When designing and constructing the new cargo terminal, Sheremetyevo was guided by the best practices of global industry leaders. Modern warehousing equipment and advanced IT solutions were the primary targets of the investments.” The terminal is equipped with systems unique to Russia including automated cargo storage and handling systems for warehouse pallets and unit load devices, similar to automated systems employed at other major cargo terminals such as Hactl in Hong Kong, Pactl in Shanghai and the Emirates SkyCargo Mega Terminal in Dubai. The airport says: “High-tech equipment and production facilities for processing special category cargo allow the efficient handling of all types of cargo without limitation, including radioactive materials, weapons and cartridges.”

Premium focus for a dynamic airport

Special attention has been paid to premium cargo including time and temperature sensitive products with 26 independent storage areas with individually adjustable temperature conditions, as well as 60 thermal cells in the pallet/container handling system for ULD storage. The airport says: “The total available storage of the terminal’s cold-stores is 5,820 cubic metres. Next year targets include the GDP regulations compliance validation and CEIV Pharma certification for the refrigeration plant of the Moscow Cargo terminal at Sheremetyevo.” Describing itself as one of the most dynamic airports in Europe, a third runway is due to open at Sheremetyevo, doubling airfield capacity and being suitable for any type of aircraft to take off and

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land. In 2020 and 2021, the Northern terminal complex apron will be expanded by 10 F-class parking lots, as well as infrastructure facilities for partner airlines by Runway 3. Sheremetyevo is finalising the design documentation of the second stage of the Moscow Cargo complex, scheduled to be commissioned in 2022. The airport says: “This project mainly aims at servicing cargo aircraft and actively increasing the international transfer flow.” The second stage will increase capacity at the cargo complex to 740,000 tonnes and offer airlines options for temperature sensitive cargo, enhanced capacity for transfer cargo, special facilities for express shipments and fulfilment for specific customer requirements. In the first seven months of 2019, Sheremetyevo’s freight turnover increased 7.1%, with cargo up 2.7% to 176,000 tonnes and mail by 45.5% to 28,000 tonnes. This is significantly better than the rest of Russia, which was down 3% on 2018 and global indicators, with IATA predicting growth of no more than 2% this year. Sheremetyevo says: “The airport continues to strengthen its leading position in the Russian air cargo market and steadily increases its share: for the seven months of 2019 Sheremetyevo International Airport handled 23.5% of the total air cargo in Russia and 66.3% of the total air cargo in the Moscow Air Cluster market.”

Connecting Russia with the world

The airport has been developing partnerships and opening new routes. These include servicing flights for Rossiya Airlines, part of the Aeroflot group to Far East destinations including Yuzhno-Sakhalinsk, Vladivostok, Khabarovsk and Petropavlovsk-Kamchatsky. Turkish Cargo launched regular flights to Sheremetyevo in June and Vietnam Airlines resumed Moscow-Hanoi services in July. About 30% of cargo handled by the terminal is transported in freighters and 70% in passenger aircraft. This does not take into account AirBridgeCargo Airlines’ transit cargo. The airport says: “During January-July 2019, more than 150

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thousand tonnes of palletised transfer cargo were handled in Sheremetyevo’s transit warehouse and via tail-to-tail operations. Taking into account these volumes, the ratio will be 60% to 40% for freighters.” In an average week, between 95 and 100 freighters land at Sheremetyevo. Russia’s Far East is the most popular domestic routes with destinations including Vladivostok, Khabarovsk, Yuzhno-Sakhalinsk and Petropavlovsk-Kamchatsky. In the CIS demand is stable for Yerevan, Armenia; Almaty and Nur-Sultan in Kazakhstan. On international routes, Hong Kong, Shanghai, Frankfurt, Amsterdam, Beijing and Seoul lead the way. Sheremetyevo has been working very hard to meet its strategic goal of providing customers with services in line with the best global industry standards. It says: “Over the past few years, we have completely modernised the cargo and passenger infrastructure of the airport, increased production capacity and attracted a number of airlines. We are determined to continue our development and work harder every day to maintain the position as a leading airport in Russia.”

Great potential as a transit hub

These factors are not enough to make an airport attractive as an international cargo hub, however Sheremetyevo says the Russian air cargo industry must develop and implement common e-freight standards, introduce the one-stop-shop model, facilitate customs clearance procedures and eliminate administrative barriers. The airport says: “Unless these are resolved, it will be impossible to realise the tremendous transit potential of our country and to efficiently attract international transit cargo.” Sheremetyevo is helping to overcome these challenges. It says: “Currently, Sheremetyevo’s Moscow Cargo terminal is taking an active part in the development of technologies that are essential for the introduction of the e-freight standard in Russia, as well as in the testing of electronic interaction as part of a joint project with Aeroflot PJSC and Knevichi Airport (Vladivostok). This journey is not a small task, but we are going to make the most of any opportunities that come our way.”


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ACW 9 september 2019

7 05/09/2019 09:55


HE CAN’T SEE THE WOOD FOR THE TREES

ARTIST’S RENDITION

Air New Zealand to build world’s largest single arch timber aircraft hangar

The Kiwi carrier will begin construction at its engineering base in Auckland later this year

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angar 4 will be large enough to house a wide body aircraft such as the airline’s 777-300 or 787-9 Dreamliner, and two narrow body aircraft such as the A320 or A321neo, at the same time. The 10,000 sq m hangar will be located on the airline’s Auckland engineering base at Geoffrey Roberts Road in Mangere. The structure will sit adjacent to the existing Hangar 3, while new workshops and tools stores will connect the two hangars, providing increased maintenance programme efficiencies. The new timber hangar will be a 5-6 Green Star development certified by the New Zealand Green Building Council, meaning

it will meet the highest standards of sustainable building construction and operation. A double-layer insulated fabric roof will enable the hangar to retain heat without the need for a heating system, while several large ceiling fans will circulate warm air back down to floor level in winter and provide a cooling effect in summer. Air New Zealand chief ground operations officer Carrie Hurihanganui says the hangar has been designed with input from the airline’s engineering and maintenance employees to ensure it is fit for purpose. “It was really important to us that the team that will work in this space day-to-day be involved in the design process.

“Our existing hangars were built in the 1960s and 1980s and while they have served us well, our fleet has grown both in number and in physical size over the past decades. We now have a need for a more modern, innovative structure that takes energy use and other sustainability factors into account. “At one-and-a half times the size of our current largest hangar, Hangar 4 will provide us with a state-of-the-art facility to continue to maintain our modern fleet to a high standard. We’re really excited to see it become a reality over the next couple of years.” The two-year construction programme is expected to start towards the end of this year.

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Profile for Azura International

ACW 9th September 19  

ACW 9th September 19