MICA(P) 261/07/2012 PPS1220/07/2013(022977

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The Trade Magazine for the Asia-Pacific & Middle East Regions Vol. 29, No. 5, May 2013

Change when change is needed

Swissport keen on Asian expansion Seeds of economic recovery being sown

www.payloadasia.com

Freighter Supplement

“Our cargo goes where no car goes.”
The incredibly rugged terrain of Papua New Guinea makes it almost impossible to move cargo by road. They say that over the last 40 years, this amazing country has been built using our cargo aircraft and I’d say that’s about right.
James Tira – Executive Manager, Cargo.

Flying the flag for Papua New Guinea.

www.airniugini.com.pg/cargo

F R O M T HE ED IT OR
The Air Cargo Magazine for the Asia-Pacific Region

ISSN 2010-4227

Vol. 29, No. 5, May 2013

Reality check

Group Publisher Wai-Chun Chen Email: waichun.chen@contineomedia.com EDITORIAL Editor-in-Chief Bob Gill Tel: +65 6521 9763 Email: bob.gill@contineomedia.com Editor Donald Urquhart Tel: +65 6521 9760 Email: donald.urquhart@contineomedia.com Online Editor Syed Shah Tel: +65 6521 9750 Email: syed.shah@contineomedia.com Contributors Wong Joon San in Hong Kong, Manfred Singh in India, Michael Mackey in Bangkok and Heiner Siegmund in Germany. Sales & AD ADMIN Account Manager Yullie Tan Tel: +65 6521 9749 Email: yullie.tan@contineomedia.com Marketing Executive Avery Li Email: avery.li@contineomedia.com Admin Executive Lim Yann Ming Email: yannming.lim@contineomedia.com Publishing Support Production Manager Pauline Goh Email: pauline.goh@contineomedia.com Design Manager Honess Ho Email: honess.ho@contineomedia.com Database & Web Manager Lim Keng Boon Email: kengboon.lim@contineomedia.com Circulation Executive Levi Cheng Email: levi.cheng@contineomedia.com Web Operations Executive Franco Nelo M. Sevilleja Email: franco@contineomedia.com Web Developer Roger Tan Email: roger.tan@contineomedia.com FINANCE Finance Manager Lim Ai Ling Email: ailing.lim@contineomedia.com CEO Raymond Wong Email: raymond.wong@contineomedia.com

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fter putting this issue together I’ve come to the realisation that it’s actually a bit of downer issue. It wasn’t really intended to paint a downbeat mood, but really that seems to be the underlying current in some of the pieces from the cover story to the economics pages to the supplement. The issue kicks off with a cover story focusing on the thoughts of FedEx Express’ Asia boss, David Cunningham, who delivered an entertaining and indeed thought provoking talk on how the air express and general cargo industry has changed over the past three decades that he has been in the industry. Peppered with interesting factoids, humorous anecdotes and delivered with a Southern charm that 20 years in Hong Kong has obliviously failed to dent, he raised some very pertinent issues that the general air cargo sector would do well to heed. The supplement in this issue focuses on freighter aircraft with a focus on discussions that came largely out of a recent conference in Hong Kong. While the market downturn is hardly news to anyone, its’ prolonged nature makes some topics inherently more interesting than others. Take for example the topic of freighters. Whether newbuilds or conversions it’s almost a subject better left for another – hopefully better day. As Cathay’s Nick Rhodes pointed out during the conference, the very idea of preparing a case for the acquisition of new or even converted freighter capacity to take to an airline board, is inconceivable at this point in time. Getting a return on assets in this environment is one tough, if not impossible task. Of particular focus at the Hong Kong event was the issue of the rising belly capacity in the market thanks to the massive influx of modern widebody aircraft that are in and of themselves, mini, or in the words of Ram Menen, ‘invisible’ freighters. Is there a future for big freighters, let alone all maindeck players and is the current combination carrier cargo model still valid? These were some of the questions thrown at the industry panel and highlighted in the supplement. And one interesting aspect, the issue of B747-400 P2F conversions was studiously avoided during the two-day event. But having spoken to various delegates on the sidelines of the event, including one who is involved in a 747 conversion operation, the programme is is pretty much dead as a dodo after the floor pretty much dropped out from under it. On the economic front, two pages of articles discussing the global economic situation and confidence of freight forwarders provide a somewhat contradictory picture of where we are headed. But then again, did anybody really expect anything else, other than contradictory? We hope you enjoy the read and don’t worry, it can (probably) only get better.

Payload Asia has been appointed by the 18 member Federation of Asia Pacific Aircargo Associations as official publication for FAPAA news.
Payload Asia is a controlled circulation publication available free-of-charge on request to qualified subscribers. Qualified subscribers are buyers and sellers of air cargo/courier/express products and services plus government and trade officials dealing with airfreight who are based in the Asia-Pacific and Middle East regions. Non-qualified readers can receive Payload Asia on payment of a US$225 annual fee. Payload Asia is published monthly by Contineo Media Pte Ltd, 67 Ubi Avenue 1, #06-06 StarHub Green, North Wing, Singapore 408942. Material in Payload Asia is copyright and may not be reproduced in any form without the written permission of the editor.

C O V ER
MICA(P) 261/07/2012 PPS1220/07/2013(022977)

The Trade Magazine for the Asia-Pacific & Middle East Regions Vol. 29, No. 5, May 2013

Change when change is needed

Swissport keen on Asian expansion Seeds of economic recovery being sown

www.payloadasia.com

Freighter Supplement

Facing a serious set of challenges, the general air cargo sector needs to take a leaf out of FedEx’s playbook and change – and that change includes a rebalancing of capacity with less dedicated freighter capacity says David Cunningham, FedEx Express president for Asia Pacific. For this and more, please turn to page 26. 1

www.payloadasia.com | May 2013

GATEW AYS

Consultancy firm Frost & Sullivan predict Indonesia’s transportation and logistics market will grow at a compound annual growth rate (CAGR) of 14.8 per cent for the forecast period 2013 to 2017, on the back of surging economic growth.

indonesia
Frost & Sullivan is forecasting the Indonesian logistics industry to grow 14.5 per cent to IDR 1,634 trillion (US$170 billion) in 2013 as compared to an estimated IDR 1,427 trillion a year ago, fuelled by the Government initiatives and development of the logistics industry fueled by strong economic growth. Frost & Sullivan’s global VP, Transportation & Logistics Practice, Gopal R, said that the relocation and strong flows of capital are also expected to drive manufacturing activities in Indonesia and boost logistics demand. He added that external trade for Indonesia is expected to see a moderate growth of 16.7 per cent to reach $446 billion in 2013. “Import/export forwarding, shipping and airfreight related businesses will benefit from sustainable growth of external trade activities,” he said. Gopal said that the growth of foreign direct investment (FDI) is expected to continue in 2013, with an estimated value of $42.7 billion. He added that FDI realisation in transport & storage sector reached $ 2.8 billion in 2012, which was the second largest share out of overall FDI, after the
2

Frost & Sullivan predict Indon logistics growth

mining sector at around $4.3 billion. He also said that the strong FDI flow into the mining industry will continue to boost the industrial growth and offer business potential to transportation and logistics industries. Growth constrained Gopal predicts the transportation and logistics market in Indonesia to grow at a compound annual growth rate (CAGR) of 14.8 per cent for the forecast period 2013 to 2017. “However, underdeveloped infrastructure will slow down the growth if the bottleneck persists in the coming years,” he said. The problems of poor connectivity, processes and weak infrastructure is evident in many price differentials and transport problems in Indonesia, Gopal said. He added that trade facilitation is still mainly ‘paper-based systems’, which increases the cost of logistics in addition to reduced efficiency. ‘The Indonesian logistics market is highly fragmented with abundance of small- to mid-sized companies in the market, even the big players are facing stiff competition from these companies,” Gopal said. He added that the fragmented market pushes smaller logistics service providers to go for economic pricing strategy rather than focusing on service quality and breadth of services offered.

He expects airfreight volume to rise 19.6 per cent to reach 1.16 million tonnes from 970,000 tonnes in 2012. “There’s significant potential for air cargo from seasonal perishables, as well as time sensitive and high value components and equipment,” he added. Gopal also said that Soekarno Hatta Airport contributed approximately 36.7 per cent of the total air cargo volume in the country. Outsourcing trends Gopal said that there is a higher inclination towards outsourcing a variety of value added services in the Indonesian market. He added that logistics service providers need to work toward more value-added services while strengthening the intermediate services. He said that logistics end users are also moving towards integrated supply chains with professional service providers. He added that Indonesia is determined to become an important player in international trade and markets with the government focusing particularly on six key areas with the objectives of ensuring the availability of strategic commodities, promoting low cost economic activities and strengthening national competitiveness. The ASEAN Economic Community (AEC) in 2015 will amplify the export value to ASEAN countries, but in the
PAYLOAD ASIA | May 2013

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Garuda Indonesia on international long-haul routes by tapping some of the five B7878s on order through parent Lion. Investigations ongoing into Lion Air crash Batik Air set to start ops Jakarta-Pekanbaru Indonesia’s Batik Air is to tentatively set to make its maiden flight on 26 April The Lion Air pilot whose aircraft crashed into the sea while trying to land in Bali has reportedly described how he felt it was “dragged” out of its trajectory and into the water.877.537 to 1. We are also proud to launch a new direct Perth-Jakarta service for the first time on 28th June. to be followed by Batam Hang Nadim (BTH) and Manado Sam Ratulangi (MDC). while passengers increased by 19. with an increase of 72. Experts say such violent and unpredictable gusts are rare but can leave even the most modern jet helpless if they are stronger than the plane’s ability to fly out of trouble – with the critical moments before landing among the most vulnerable.GATEW AYS meantime. newly delivered in February.8 years. Qantas has tied up with Emirates to funnel kangaroo route traffic through Dubai.2 million in 2011 to $110. In 2012 Garuda Indonesia welcomed 22 new aircraft. the US and Boeing are investigating. Investigators are considering whether a powerful downdraft of wind caused the crash in which all 108 passengers and crew survived despite the B737-800 cracking in half on impact. logistics service providers in Indonesia should move towards offering specialised logistics solutions for specific industries such as FMCG. Siregar.2 per cent to 280.285 tonnes from last year’s 229. The service from Sydney will be five times a week. terminals and distribution centers – with the transport network and develop state-of-the art logistics infrastructure for efficient distribution. Garuda targets LondonJakarta ‘kangaroo’ route using a planned fleet of B737-900(ER)s sourced from its parent.4 million carried. The aircraft. While Singapore Airlines flies from Australia to London via Singapore. as well as the momentous re-introduction of Brisbane – Denpasar services in August. which will fly on to Sydney. undershot the tourist island’s main airport runway in Denpasar and belly-flopped in water in mid-April. up 22.6 per cent in net profit from $64. Lion Airlines. Batik Air plans to go head-to-head with Indonesian national carrier. while streamlined connections from Perth and Melbourne will also feed the Jakarta-London leg.8 in 2012.4 million. will fly five times a week with the carrier’s new B777300ERs. especially with the launch of new services for the whole region such as our daily service from Melbourne to Denpasar which started this month. PAYLOAD ASIA | May 2013 . consisting of two A330200. witness comments and weather reports have focused attention on the possibility of ‘wind shear’ or a downdraft from storm clouds known as a ‘microburst’. Australia and SWP said: “We foresee these strong figures continuing in 2013. doubling its comprehensive income in 2012 compared with 2011. 2012 was a good year for Garuda Indonesia Garuda Indonesia has reported exceptional growth. The full-service airline intends to start operations from Jakarta Soekarno-Hatta International (CGK) to Pekanbaru Sultan Syarif Kasim II (PKU). with an average age of 5. a programme of commitment to becoming a world class airline by 2015.378 tonnes.6 per cent with 20. while connecting flights from Melbourne will leave four times a week and from Perth five times weekly. Bagus Y. from US$72. while flight frequencies increased by 22 per cent from 1.” Gopal said. four B737-800 Next Generation. raising the total number of aircraft in operation to 106 aircraft. Garuda Indonesia aims to challenge alternative routes operated by Singapore Airlines. Batik Air also plans to go head-to-head with Indonesian national carrier. VP for Garuda Indonesia. It’s going to be a very exciting year for us and these figures show we are making great progress towards becoming a five star carrier. Garuda Indonesia’s operations also continued to grow rapidly with a passenger increase of 20 per cent. five Bombardier CRJ-1000 NextGen and eleven A320 for Citilink. The so-called ‘kangaroo route’ from London Gatwick’s redeveloped South Terminal. airports.” Garuda Indonesia president & CEO. Garuda Indonesia on international long-haul routes by tapping some of the five B787-8s on order through parent Lion Air. Initial debriefings. The Indonesia Government should also integrate transportation hubs – seaports. Commenting on the significant growth in 2012. The Indonesian carrier showed consistent progress across the board.7 million to $145. Authorities from Indonesia. Emirsyah Satar explained that improvement in the company financial performance is the result of expansion 4 of the company’s operations through the 2011–2015 Quantum Leap Program. The carrier also saw an increase in the amount of cargo carried. China Southern also aims to connect Europe and Australia via Guanghzou. “Companies should also strengthen its human resources capabilities with professional and experienced logistics personnel along with market expansion. Qantas and Emirates with a new London–Jakarta service from 2 November. In Australia and the South West Pacific (SWP) region. construction. service parts and mining as compared to the current basic logistics services with common value-added services.

It has also expanded its customer base by securing new engine leasing contracts during the quarter.1 MTK. it said. All Nippon currently has seventeen B7878s in its fleet. which will be carried out through its global maintenance. while total freight carried was off slightly from last year at 103. Europe 84. 72 landing gears and 60 engines for both commercial and military customers. According to Reuters .5 per cent.2 per cent. except for East Asia where demand did not keep pace with capacity reductions. repair and overhaul (MRO) network. only for cargo operations. which means ‘son of the soil’ is the country’s controversial racebased affirmative action programme for its majority Malay population which has been in place since the 1970s. bringing convenience and value-added solutions to customers in the region. ANA will resume cargo-only B787 flights to Germany in a bid to restore public confidence in the aircraft.2 per cent in March compared to a year ago with SIA saying the cargo load factor was higher for all route regions through capacity management.com | May 2013 5 . On capability development. which has been globally grounded after onboard lithium-ion batteries overheated in two Dreamliners in January. and West Asia & Africa 67. ST Aerospace has commenced the A330P2F engineering development phase for the freighter conversion programme.13 16:19 www. Singapore Technologies Aerospace Ltd (ST Aerospace) has sealed new contracts worth nearly SGP$480 million (US$388 million) in the first quarter of 2013. EADS EFW will serve as ST Aerospace’s European MRO centre. ‘Bumiputra’. ST Aero seals new contracts in 1Q SINGAPORE Singapore Airlines Cargo saw its load factor rise 2. bringing its total share capital contribution to US$8. ST Aerospace Engines.indd 1 16.161 components. ST Aerospace processed 15.04. Its wholly owned subsidiary. Besides airframe redeliveries. By region: East Asia 55. Total Engines Asset Management. “We once again request that the Prime Minister kindly assist us in obtaining the necessary information with regards to the time frame needed to review the existing policy requirement for a 51 per cent bumiputra equity requirement for Malaysian forwarders appeal bumiputera rule In the mood for innovation? Fly into the future with Lufthansa Cargo.7 (million Kg). following the completion of ST Aerospace’s investment of 35 per cent equity interest in Elbe Flugzeugwerke (EADS EFW). June 4-7.9 per cent. ST Aerospace is stepping up its participation in the engine leasing business.GATEW AYS JAPAN ANA planning to resume cargo-only 787 ops in June All Nippon Airways is preparing to resume B787-8 operations in June. albeit. has injected additional capital into its 50 per cent-owned associate company. Stop in and see us at transport logistic in Munich. Additionally. as well as engineering and development.payloadasia. but up 76 Singapore Airlines March load factor up Singapore Technologies Engineering Ltd (ST Engineering) has announced that its aerospace arm. can be reviewed. component and engine maintenance. South West Pacific 62. Freight carried in terms of tonne kilometers was 610. A tot al of 180 airc raf t were redelivered for airframe maintenance and modification work in the first quarter of 2013.2 percentage points to 67. per cent over February figures. Overall capacity was down five per cent in March to 908 MTK from a year earlier. Booth 101/302 lhc13063_AZ777PayloadAsia_190x90_20130412.21 million. 2013 Hall A4. Malaysia T h e A i r f r e i g h t Fo r w a r d e r s ’ Association of Malaysia (AFAM) has written a letter to Prime Minister Datuk Seri Najib Abdul Razak to ask for a timeframe in which a rule which necessitates forwarding companies to have a 51 per cent bumiputra equity participation. Americas 67.2 per cent. The contracts are for airframe.2 per cent. This is in addition to the five B757-200 freighters converted through its MRO network.

transport services. Aluminum Corporation of China (CHINALCO) settled in Zhengzhou. tourism. as well as adding its parked B747400F to its current fleet of three older B747-200Fs. and Brazil. AFAM has been asking for a review of the law since 2007. is likely interested in securing Grand Star’s Tianjin traffic rights. Sinotrans had originally planned to liquidate Grand Star’s assets in 2012. Mekoryuk (MYU). In 2009. according to China Southern Cargo. under a codeshare with Virgin Australia. Atlanta.471 forwarding agents are affected by the rule. NEW ZEALAND Air NZ. The carrier added that it attaches great importance to the air cargo market in Zhengzhou and has been striving to bridge Zhengzhou with overseas markets via Guangzhou. Sinotrans Air Transportation Development Co (Sinotrans Air) for the transfer of their 51 per cent stake. Air New Zealand CEO Christopher Luxon described Perth and Christchurch as the two largest trans-Tasman destinations without a direct alliance service.” AFAM chairman Walter Culas said in the letter dated 8 April 2013. Zhengzhou Nissan. In separate news. the airline plans to bolster its domestic network through the addition of Bintulu (BTU). business services. “In fact. substantially stimulating air cargo demand in Zhengzhou. but then decided otherwise. Letter of Intent with current Grand Star majority shareholder. with the relocation of industries and labor force. including health and social services. The introduction of two international all-cargo routes within two consecutive months indicates the improving logistics environment of Zhengzhou airport and China Southern’s investment in the Zhengzhou Airport Economic Experimental Zone. the Lion Airlines subsidiary serves Kota Kinabalu International (BKI). “China Southern has successfully developed a seamless freighter-belly and PAYLOAD ASIA | May 2013 6 . Virgin Australia to fly Perth–Christchurch A twice-weekly flight between Christchurch and Perth will revive an abandoned trans-Tasman route from December 2013 until late April 2014. is the second all-cargo route China Southern has launched from Zhengzhou Xinzheng International Airport. Ltd. Wuhan-based Uni-Top. the carrier said. The inaugural flight was mainly loaded with Apple products.” China Southern Cargo said. Penang Bayan CHINA Uni-Top eyes grounded Grand Star assets Tianjin Binhai International-based GrandStar Cargo International Airlines is set to take on a new majority shareholder in the form of China-based logistics firm. Kuching (KCH) using a fleet of two B737-900ERs. which started in February 2011.” Air New Zealand and Virgin Australia are currently seeking reauthorisation for their codeshare. more and more large enterprises like Foxconn. China Southern Airlines’ new Zhengzhou-Chicago service commenced from 10 April. Boston and 19 South American cities located in Chile. The West Australian economy continues to grow at a faster rate than the rest of Australia and rebuilding activity is poised to stimulate travel demand within Christchurch and Canterbury. the Royal Malaysian Customs Department had issued a directive under the National Economic Policy (NEP) imposing a requirement of 51 per cent bumiputra equity share for all new and renewed forwarding agent licences. China Southern launches 2nd Zhengzhou-US service Malindo Air to begin int’l flights to India Malaysia-based Malindo Air is planning to serve Delhi Indira Gandhi International (DEL) and Tiruchirapally (TRZ) as its first international routes with daily B737-900 flights set to begin on 1 June from Kuala Lumpur. Additionally. An Air New Zealand B767 will fly the route. “We had pointed out in our previous letters that the forwarding industry is the only business segment that is required to meet the 51 per cent bumiputra equity requirement while all other business segments need only comply with a 30 per cent bumiputra equity requirement as stipulated in the NEP. although the route was last flown more than 20 years ago. In August 1990. “This is a great time to be linking these two destinations. coming only shortly after the debut of Los AngelesZhengzhou-Guangzhou freighter route on 5 March. Paraguay. owner of Uni-Top Airlines. some of these requirements have further been removed with the recent liberalisation of the service sector. twice a week. Uni-Top Group. At present. In addition. Lepas International (PEN) and Sibu (SBW) flights also scheduled for 1 June. the government lifted the 30 per cent bumiputra equity rule in 27 services subsectors. and computer and related services.” said Culas highlighted in the letter. connected by China Southern’s trucking and air-to-air network.. The service. utilising a B747-400F.GATEW AYS the forwarding industry as we feel that it is only an administrative matter and it should not take that long to resolve. Johor Bahru Senai International (JHB). Air New Zealand is reportedly seeking clearance for a codeshare with Turkish Airlines. shipments can be rapidly distributed to over 10 cities in America such as New York. Malindo Air is set to begin international services to India’s New Delhi and Tiruchirapally.” the letter said. About 3. The two times weekly service is routed PudongZhengzhou-Chicago and provides a weekly capacity of over 200 tonnes. Zhengzhou Yutong Bus Co. “In recent years. Uni-Top has signed a Lion Air subsidiary.

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Richard Branson. AirAsia Group CEO Tony Fernandes has said AirAsiaX will likely re-enter the Kuala Lumpur-Mumbai. by AirAsia India is on track for a September launch date provided it completes and obtains all necessary government checks and approvals. The new all-cargo route of China Southern Airlines will undoubtedly deliver a more convenient transport channel for Zhengzhou shipments and bring more choices for the Zhengzhou enterprises. Meanwhile. has said. AirAsia’s COO. It has also said that it is keen on the B777-F as a replacement for its ageing cargo fleet of six MD11Fs and nine B747-400Fs. MAI will place its ‘8M’ code on Korean Air’s daily flight between Seoul and Yangon. Korean Air. On 13 March the Czech government approved the sale of the 44 per cent stake. inflight services. AirAsia India plans to initially base two A320-200 aircraft in Chennai and will cater primarily to India’s Tier-2 and Tier-3 cities. The deal makes AirAsia the first foreign carrier to enter into a joint venture with a local Indian company after the civil aviation sector was thrown open to overseas investors with a 49 per cent shareholding cap.” it said. safety. freight-freighter cargo transfer network. Branson said that in light of the recent launch of Virgin Atlantic flights from London Heathrow (LHR) PAYLOAD ASIA | May 2013 India venture would tap existing Virgin model . but that the current soft global air cargo market does not make that a viable proposition currently. increasing commercial collaboration and reinforced tourism between the Czech Republic and Asian countries. flight operations and maintenance. Korean Air said it plans to expand its network through Prague airport by increasing its code share flights and improving its connection schedules with Czech Airlines. The MOU will enable both airlines to promote bilateral cooperation in all areas including passenger traffic. Prime Minister of the Czech Republic. EVA Air considering B787-10 and B777X SOUTH KOREA Korean Air has signed a partnership and co deshare memorandum of understanding with Myanmar Airways International (MAI). Myanmar Airways International operates seven international routes with a fleet of one A319-100 and seven A320-200s. which will be deployed on its new two-times a week Prague Vaclav Havel Ruzyne (PRG)-Seoul Incheon International (ICN) route in cooperation with Korean Air from this summer. “The new stake bought by Korean Air in Czech Airlines will significantly impact the entire Czech Republic. Subsequently. has revealed that his group is now actively considering launching an Indian subsidiary using the carrier’s Virgin Australia and Virgin America operations as a model. Under the agreement. In line with its plan to cut costs – fuel costs in particular – EVA will gradually phase out its fleet of seven MD-90s and three B747-400s between 2014 and 2016 while simultaneously phasing in a fleet of seven brand new B777-300ERs and ten more A321-200s. Speaking to Livemint. India Korean Air seals deal on 44% stake in CSA AirAsia India on track for a September launch TAIWAN Taipei-based EVA Air is reportedly considering buying the B787-10 and the B777X with its management waiting for Boeing to reveal more information with respect to the 787-10 and 777X before making a decision. Virgin Atlantic president. said he considered CSA. Cho Yangho. 8 Korean Air has completed its acquisition of a 44 per cent stake in fellow SkyTeam alliance member CSA Czech Airlines. China Southern has developed tailor made transfer process in Guangzhou. thanks to tighter ties with the rapidly growing Asian region. The move comes after the Indian government revised legislation permitting foreign airlines to hold up to 49 per cent equity in Indian carriers except for Air India. Chairman and CEO of the Hanjin Group and Korean Air and Petr Necas. In order to provide quality service to Zhengzhou’s electronics enterprises. 52 of the world’s biggest international carriers were invited to take part in the tender procedure with only a single offer submitted by the 1 March deadline. Myanmar Airways sign codeshare (l-r) Yang Ho Cho. increasing awareness from potential Korean and Asian investors. Speaking on the occasion. Bo Lingam. China Southern Cargo has added a second Zhengzhou-US service as cargo demand grows in the western Chinese city. The first moves within the tie-up include the lease of a Korean Air A330-200 to CSA. The Czech government decided to initiate the selection of a strategic partner for the country’s flag carrier in November 2012. with an option to buy the remainder.” Prime Minister Petr Nečas said. “a trustworthy partner with whom we wish to expand into Central and Eastern Europe”. Korean Air plans to expand the codeshare agreement on flights operated by MAI. Delhi markets soon with a possible feeder service to the new AirAsia India joint venture. by the Indian government in 2012. A 49:30:21 joint venture between Malaysia’s AirAsia and Indian companies Tata Sons and Telstra Tradeplace.GATEW AYS Korean Air. chairman of the Board of Directors and CEO of Korean Air. Established in 1992.

” said CEO Sanjay Aggarwal.5 billion (US$ 165. “SkyCargo has tirelessly worked towards the adoption of e-freight with its customers. We have also requested that our licence be renewed. In March Oman Air launched a Block Space Agreement with DHL Express enabling it to utilise DHL’s capacity in  both  directions of its  operation  between Muscat and Dubai.” the annual report noted. Mihin Lanka’s losses doubled with the budget carrier incurring an operating loss of Oman Air is planning to launch both a low-cost carrier and a cargo airline in the wake of a massive US$253 million loss posted for its 2012 Financial Year. to its global cargo network. Al Balushi is quoted as saying that while passenger numbers and revenue in fact rose 21 per cent on 2011 with cargo performing especially well posting a 29 per cent growth. we have observed heightened interest in e-freight implementation industry-wide – we are at an important junction for the cargo industry.6 per cent to Rs. “We have shared the funding and traffic plans. cargo airline SRI LANKA Srilankan.000 tonnes. Emirates SkyCargo will continue to remain at the forefront of these developments and advise those interested in taking the steps to ‘go green’ and adopt a paperless cargo system. D espite the dismal f inancial performance of the two state-owned carriers. Emirates SkyCargo has put in place over 120 bilateral e-AWB agreements with its customers to ensure a smooth transition from paper Air Waybills (AWB) to Electronic Air Waybill data (FWB). Sri Lanka recently opened its second international airport in Mattala and expects to serve one million passengers and an annual cargo throughput of 45. Kingfisher’s flying licence was suspended in October and lapsed in December after the airline was grounded following a strike by its employees over non-payment of wages.com | May 2013 9 . at which the e-AWB multilateral agreement was ratified.3 million) during the year against Rs.4 billion. Etihad Cargo expands network. the Omani Government. According to the new plan. rather offering “a low-cost airline albeit with a good quality business class” product. “Following the recent World Cargo Symposium held in Doha. Rs. against Rs. grounded for more than six months.” the carrier said. industry players are finding it easier to enter into the e-AWB environment and manage processes electronically with their customers.” said Ram Menen. has agreed “in principle” to the proposal. 11 B737s and three A330s over next five years. the operating expenditure rose 30. Passenger aircraft movements handled by the BIA increased to 48. losses accrued mainly due to the Omani national carrier’s acquisition of new aircraft with the carrier expecting to take delivery of six B787s. indicating a y-o-y growth of 11 per cent. The initial funding to restart the airline will come from the (core) Group. Oman Air’s sole shareholder. India’s Kingfisher Airlines. The US capital is Etihad Cargo’s fifth destination www. SriLankan Airlines acquired a new A320 aircraft and an A330 aircraft.payloadasia. has added Washington D. “With increased flexibility in the e-AWB process as a result of the multilateral e-AWB agreement.C.128 billion during the year.1 per cent to Rs. with a feasibility study now underway.416 aircraft.3 million in 2011. we have received an increased interest in e-AWB adoption from our Oman Air looks to start new LCC. with the future looking bright for e-freight adoption. Emirates divisional senior VP Cargo. the civil aviation sector recorded a positive growth as Bandaranaike International Airport (BIA) saw total air cargo handling increase by 11 per cent y-o-y with seven million passengers (including transit passengers) during 2012. SriLankan Airlines reported an operating loss of Rs20.107. boosts capacity Emirates SkyCargo is the first carrier to implement Electronic-Air Waybill (e-AWB) shipments under the industry’s recently ratified multilateral e-AWB standard. As a result.1 billion operating loss it incurred in 2011.” he added. has begun the process of seeking regulatory approvals to re-launch its operations and has submitted plans to the Directorate General of Civil Aviation (DGCA) for an infusion of funds and revival of its flights. During the year. According to Oman Air chairman Darwish bin Ismail Al Balushi.GATEW AYS to Delhi Indira Gandhi International (DEL) and Mumbai Chhatrapati Shivaji International (BOM). recording a 15 per cent increase year-on-year. Since 2011.1 billion in 2012. giving it crucial maindeck lift it is otherwise lacking. Kingfisher takes another stab at getting airborne   Middle East Emirates takes lead in e-freight adoption Emirates SkyCargo is the first carrier to implement Electronic-Air Waybill (e-AWB) shipments under the industry’s recently ratified multilateral e-AWB standard. but would not go the classic LCC route. Etihad Cargo. while also ensuring that processes are more widely understood and adopted in the industry as a whole. in addition to boosting frequency to Hong Kong courtesy of strategic partner Air Seychelles. Despite the total revenue of the airline increasing by 36. customer base globally. Virgin viewed the Indian market as having great potential. Mihin Lanka losses widen SriLankan Airlines and the state-run budget carrier Mihin Lanka saw their losses widening during the year 2012. we will see increased adoption of e-AWB processes for both the Montreal and Warsaw Convention Countries over the coming months and years. Kingfisher would resume limited operations with five A320 and two turboprop ATR aircraft and gradually increase operations until the number of aircraft reached 20. the fast growing cargo division of UAE flag carrier Etihad Airways. the recently released Central Bank annual report showed. “Emerging competition from other international airlines and the volatility of fuel prices have adversely affected the profitability of SLA (SriLankan Airlines). In addition. Meanwhile.19.455.

Etihad Cargo already offers daily bellyhold cargo capacity from Chicago and New York to Abu Dhabi. leather goods.C. Clients come to us. textiles. At present Etihad Cargo offers both bellyhold and full freighter capacity to Beijing and Shanghai. and three times a week from Toronto to Abu Dhabi. We deliver to them… world class services and value added solutions… with the people. This new service is expected to further stimulate economic growth with key Swedish trading cities across the Far East and Australasia. we believe these new operations will strengthen cargo services both east and west for our customers. Etihad Airways started direct daily services to Washington D. the carrier said. In addition.. and an overall increase in cargo capacity to Hong Kong. Etihad Cargo serves 86 destinations internationally and operates a fleet of two B777F. Emirates adds daily Stockholm flights Expanding its presence in Scandinavia. electronics. and fashion clothing brand H&M. Popular commodities are expected to be pharmaceuticals.” said Kevin Knight. With strong bilateral trade links already in place.3 per cent from 2011. Sweden reached more than US$896 million in 2012. Dubai-based airline Emirates has confirmed it will begin operating a daily B777-300ER flight to Stockholm. The news follows the launch of passenger services from Abu Dhabi to both cities in recent weeks. Volvo. A major North European economy with a strong GDP. chief strategy and planning officer at Etihad Airways.GATEW AYS in North America. processes and technology… to make it all happen. two A330-200F and one A300600F. trade between the UAE and V-D’s new Sharjah MRO facility begins operations Volga-Dnepr Gulf ( VD Gulf ). bellyhold capacity to Chengdu. The additional bellyhold capacity offered by Air Seychelles’ new service between Abu Dhabi and Hong Kong will strengthen the already established four-times-a-week Etihad Cargo freighter service between the two cities. with A340-500 aircraft on 31 March and Air Seychelles. an increase of 4.C. while Hong Kong is already part of the carrier’s fivedestination Greater China cargo network. plants and flowers. for their contract logistics and transportation needs. and a freighter operation to Guangzhou. 10 RDOM3449-2-CLD_Ad13-LogN-PayA.. one B747-400ERF. The carrier already operates a three-times weekly service to Gothenburg in Sweden and the addition of Stockholm is expected to further boost the airline’s cargo operations in the region..indd 1-2 PAYLOAD ASIA | May 2013 . In addition to passenger operations Emirates SkyCargo will offer 19 tonnes of cargo capacity between the two cities. perishable food items. comprising one B777F and two A330-200F. one B747400F. Sweden from 4 September 2013. initiated services to Hong Kong via Abu Dhabi three times a week with A330-200 aircraft on 24 March. Etihad Cargo offers a twiceweekly freighter service from Houston to the UAE capital. in which Etihad Airways owns a 40 per cent stake. Sweden is well known for iconic global brands such as IKEA. Etihad Cargo will take delivery of three additional freighters in 2013 and 2014. construction equipment. “Our cargo network continues to expand and with the addition of bellyhold capacity to Washington D.

While currently in talks with Boeing.com | May 2013 11 4/18/13 2:22 P . The facility is equipped with all necessary tools and equipment. Because what’s important to them… Is important to us. Exceeding their expectations… time and time again. the group said. but according to airline president. Qatar Airways. British Airways and Lufthansa. The hangar will be able to simultaneously accommodate six narrow-body aircraft or two wide-body Emirates has asked Boeing for more specifications regarding its proposed B777X variant before placing an order.GATEW AYS aircraft of the B747 or Antonov AN-124 type. VD Gulf towed the first aircraft into the new hangar. aircraft weight and fuel burn” all prove favourable. representing Volga-Dnepr Technics in the Middle East region. should details like “layouts. To nd out more about which UTi CL&D solution best suits your needs and view our team videos. visit go2uti. The launching of the new 22.com/videos. Emirates doesn’t expect to conclude any deal before June’s Paris Air Show. component repair and overhaul services. as well as modern air conditioning and fire fighting systems to perform safety maintenance services for the various aircraft types up to C-check. Tim Clark. Emirates wants more B777X specs The first aircraft for Volga-Dnepr Technics’ new MRO hangar in Sharjah: A Volga-Dnepr AN-124. On 8 April Volga-Dnepr Gulf obtained an official Operations Approval for the hangar facility issued by the Department of Civil Aviation Government of Sharjah. Following the approval. EVA Air. www. Currently.000 square meter hangar complex at Sharjah Airport will allow the company to uphold its market position in the UAE. has commenced operations in its new maintenance hangar facility in Sharjah. Our single-source solutions enable you to deliver to your customers while we deliver savings to your bottom line. Not a weak link in the chain Meet some of the thousands of contract logistics and distribution professionals at UTi who can integrate our value-added warehousing and distribution solutions to your business. Other carriers whose interest in the 777X has been piqued include Philippine Airlines. galleys. confirming that VD Gulf has successfully completed the required hangar safety procedures and is ready to provide aircraft maintenance.payloadasia. the Gulf carrier would consider an order for as many as 275 of the advanced type. seating. an Antonov AN-124 ‘Ruslan’ freighter belonging to VolgaDnepr Airlines. Emirates operates 126 B777s (both passenger and cargo).

Sri Lanka from 15 April. Lufthansa Cargo commenced twice-weekly connections to Guadalajara in Mexico. Later. The ETS moratorium puts the ETS on temporary hold to enable the International Civil Aviation Organisation (ICAO) time to find a global solution to mitigate emissions. raise its aircraft utilisation through cautious capacity management which saw capacity scaled back by 7. Meanwhile. To that end. and grow profitably again. The first Cargolux flight was operated on 24 April and is followed by weekly flights. demand for airfreight to and from the North African country is steadily growing. but lack of funds is widely suspected to have caused the grounding of its fleet of four B747-400ERF/SFs. Lufthansa Cargo is expecting a marked pick-up in demand.4 per cent. Ouagadougou to network Lufthansa Cargo carried nearly 400. Africa and both South and North America followed. Cargolux Airlines Int’l has introduced a new air cargo service to Tripoli. The cargo carrier has also marginally stepped up services to China again in the summer flight schedules after cutting back capacity in a difficult market on that route in the past few months.” He added the company remains confident operations can be resumed in the next few days. The European Regions Airline Association (ERA) and the International Air Carrier’s Association (IACA) want the moratorium to be extended to all flights departing and arriving at an EU airport to prevent discrimination against European carriers operating intra-EU flights. but these expansion plans were shelved before the end of the year due to the ongoing sluggish global market situation and dwindling rates. and take advantage of the nation’s prolific high-end retail. Freight operations to Colombo will also resume. Libya’s capital and largest city from 16 April. Sales fell by a smaller 5. improving load factors by more than one percentage point to 71. The cargo carrier did. which rely on airfreight because the country is landlocked. produce and rubber sectors. which includes a stopover in the Maldives. however. Our shareholders are supporting in any way possible and you can be assured that we work around the clock to find sustainable solutions to recommence our services. The belly-hold PAYLOAD ASIA | May 2013 IAG Cargo relaunches route to Sri Lanka 12 . Supplies and equipment for the mining industries in Burkina Faso are among the main commodities. Ouagadougou is the country’s largest city with food processing and textiles its main industries. spurred by an economic development that is driven by the oil and gas industry.GATEW AYS Europe & CIS European carriers are calling for a level playing field for the EU’s emissions trading system (EU ETS tax) after the European Parliament voted on 16 April to support the ‘stop the clock’ proposal for aviation – but only for non intra-EU flights. Shortly after ACG announced plans for upping the fleet by taking over two of ABC’s B747-400 freighters. as chairman and CEO Karl Ulrich Garnadt emphasised: “We intend to utilise market opportunities Lufthansa continues cautious capacity cut Frankfurt Hahn-based Air Cargo Germany suspended all operations from 18 April with no official reason given by the cargo airline. routes to the Middle East. The service is spurred by growing demand from markets in France. IAG will utilise B777s on the thrice-weekly route.4 per cent. In the course of the year. European airlines seek level ETS playing field and safer transportation solutions. In spring 2012 AirBridgeCargo’s Russian parent Volga-Dnepr stepped in as shareholder acquiring 49 per cent of the capital shares. The privately-run German cargo airline commenced operations in mid-2009 connecting Frankfurt-Hahn airport with destinations in East and Central Asia. via IAG Cargo. Other sectors targeted on the new service include pharmaceuticals and healthcare products as well as newspapers and general cargo. the carrier said. Air Cargo Germany suspends operations Supplies and equipment for the mining industry in Burkina Faso are driving cargo demand. Thanks to its nose-door equipped B747 freighter fleet. It is now operating an additional freighter service weekly to Shanghai and Hong Kong. to its network of African destinations. I AG recommenced service to Colombo. Cargolux has also added Ouagadougou. Af ter a 15. the capital of Burkina Faso. CEO Michael Schaecher said in a statement on the company website: “The suddenness of this interruption is beyond our control and was neither expected nor foreseen in any way. we are investing in our route network and making our services even more attractive to customers.” In March this year. followed by weekly services on the route Luxembourg – Tripoli – Johannesburg.000 tonnes of freight and mail in the first quarter of the year – a decline of 7.9 per cent. Cargolux is well positioned to accommodate a modal shift from sea to air caused by rising demand for faster Cargolux adds Tripoli.2 per cent compared with the year-earlier level. Exports from Burkina Faso primarily include perishable goods – mainly fresh beans and mangoes. as well as in Asia and the Americas. Cargolux said that with the political situation in Libya on a stabilising path.ye ar hiatus .

com/freightforward FedEx. Call on us for flexible solutions that keep your supply chain moving.SM ©2013 FedEx. ftn. With experienced team members and locations worldwide. 0009671PM FREIGHT Forward .fedex. Solutions That Matter. All rights reserved.Global reach. Local expertise. FedEx Trade Networks can be your single source for international air and ocean freight forwarding.

Transaero CEO.660 tonnes of cargo. Pleshakova added that “the freighters will perform mostly domestic flights with a large share of operations in Russia’s Far East. Customers will benefit from increased access to IAG Cargo’s cargo network. Low-cost carriers led by Ryanair lifted their share of European traffic four per cent to 38 per cent in 2012. Air France-KLM in talks to sell Cityjet Transaero Airlines has added its first freighter to its fleet. IAG Cargo operates 55 wide bodied flights per day from the US and Canada. Intro Aviation owns a majority stake in Austrian regional carrier InterSky and is also said to be one of the bidders for a stake in Adria Airways. the London-Seattle route generated 4. sent to markets across the world. European network carriers including Air France-KLM Group and Lufthansa face a heightened challenge from both local discount airlines and Gulf operators serving routes to Asia.” Transaero takes delivery of first Tu-204 freighter Ryanair and its peers. Air France. The carrier also operates three B747-8 freighters per week on the US route. In the long-haul market. Some 5. Qatar Airways and Etihad Airways grew 20 per cent. with additional available capacity of 108 tonnes per week. The Azerbaijani national airline will operate the flights twice weekly using using its fleet of B767-300s. Dublin-based Cityjet. Gulf carriers squeeze Euro carriers IAG Cargo announced that due to an increased frequency of British Airways passenger flights between London and Seattle. two of the bidders have been identified as ASL Aviation Group and Intro Aviation. In 2012. which equates to over 800. according to analysis by Amadeus IT Holding. including everything from aircraft parts and perishable goods. home country of EasyJet and the location of Ryanair’s biggest base. it said. Lufthansa said last month it might also establish a low-cost operation to Asia in response to airlines that have exploited the Gulf’s geographical position to grab a growing share of lucrative inter-continental transfer traffic. Seattle is a growth market for IAG Cargo. twelve Fokker 50s wet-leased from Antwerp-based VLM and two Do328-100s wet-leased from Suckling Airways on routes on behalf of Air France AF-KLM group and on an own network from London City (LCY). The Tu-204C can carry up to 30 tonnes of cargo at a 2. Low-cost penetration is greatest in Europe. to consumer goods and e-retail purchases. the carrier said.000 kilos PAYLOAD ASIA | May 2013 ‘Eccentric’ load proves Ruslan capabilities 14 . CityJet operates an ageing fleet of nineteen ARJ-85s. Olga Pleshakova has said that. The nations there with the highest proportion of departing passengers using discount airlines are Spain. according to data from Madrid-based Amadeus’s global booking system. At present. while travel from Europe to Asia via the hubs of Emirates. aside from the favorable financial terms the airline had been offered by Tupolev. Currently. Lufthansa and Iberia of Spain are among former flag-carriers revamping short-haul operations in an effort to end losses and stave off the advances of LCCs. Eastern and Western Europe and Russia. and the UK. Doha and Abu Dhabi have already grabbed a 15 per cent share of air traffic from Europe to the Asia-Pacific. The freighters join Transaero’s passenger fleet of 92 aircraft. according to the report. comprising 22 Boeing 747s. ASL controls cargo operator Air Contractors. 13 777s.000 kilogrammes shipped from the area every day. according to Amadeus. “the addition of Tu-204C aircraft would allow Transaero to carry out their MRO (Maintenance. Gulf airports in Dubai. which resumed scheduled flights as of mid-March. it will be able to offer customers additional freight capacity on this route. IAG increases London-Seattle capacity Transaero Airlines has leased two former Aviastar Tupolev Tu-204-100C freighters as it makes its first foray into maindeck capacity. According to a report in the Irish Times. such as ferns and cherries. which supports more than 350 destinations worldwide. 39 737s and three Tu214s. French cargo and charter airline Europe Airpost and South African cargo and ACMI specialist Safair. Azerbaijan’s AZAL starts first long hual to Beijing Air France-KLM is currently in negotiations with “two or three” interested bidders regarding the sell-off of its Irish subsidiary.750 km range.400 km range and up to 12 tonnes at a 6. the first of two ex-Aviastar Tupolev Tu-204-100Cs leased from Ilyushin Finance Co.GATEW AYS capacity will benefit Sri Lankan business by providing global connectivity to the more than 350 destinations currently served by IAG Cargo. Ruslan International – the company which manages and markets the combined Antonov An-124 fleets of its shareholders Antonov Airlines and Volga Dnepr Airlines – has arranged the successful movement of a 101-tonne oil platform component from Bergen (Norway) to Busan (Korea) on an An-124 flight. AZAL flies throughout the subregion along with destinations in Israel. The three new flights a week will commence on 27 October 2013 and will be served by a B777-200. a Tu-204C. allowing for an increased weight of cargo. with 52 per cent. 15 767s. AZAL Azerbaijan Airlines has chosen Beijing Capital (PEK) as its first longhaul destination with flights from Baku Heydar Aliev International (GYD) expected to start from 10 May. with a strong catchment area that includes the medium-sized manufacturing bases of Portland and Boise. on 57 per cent. Repair & Overhaul) together with their fleet of three Tu-214s” .

GATEW AYS of additional equipment. ALLI_1208118_Warehouses_190x135. Madrid.com | May 2013 15 . The load’s resultant offset (eccentric) centre of gravity within the cargo cabin then required special approval from the aircraft’s designers. required for unloading at destination. IATA’s director general and CEO. The cargo people. were carried on a separate flight.59m long x 3. it said recently. The flight was one of a series required for the same project. These will be based around the five hubs (Amman. modernise and deliver the global standards which are the foundation of aviationenabled global connectivity. along with two support frames and other loading equipment – weighed a total of 114. This will optimise our ability to develop. • More efficiency from resource sharing. Miami and Singapore) where IATA has already been amalgamating activities associated with its industry financial systems.” said Tony Tyler. A key guiding principle of the restructuring is the concept of ‘Global IATA undertakes major Development.4m.000 kg.payloadasia.indd 1 17/08/12 11:00 www. The load – comprising a ‘separator’ . IATA’s regional operations will be consolidated from seven regional structures into five. Regional Delivery’ .92m wide x 6. Asia-Pacific. The large dimensions of the piece – 11. Beijing and Madrid. organisational restructuring of its main divisions and regional operations to better address the needs of its 240 member airlines. Strengthening our regional Warehouses • PRESS MAG • 190an x 135 mm • Remisewhere le 17/08/2012 Association (IATA) announced structures we are closest to our MEMBERS SHARING THE SAME WAREHOUSES SO YOUR CARGO ALWAYS FEELS MORE AT HOME. We have also regrouped activities that have grown organically over time with the goal of being more intuitive to those we deal with. North and South America will be consolidated into an Americas region and based in Miami while Africa and Middle East North Africa will be combined into one region to be known as Africa and Middle East. members will help us to understand and meet their needs better. “IATA is restructuring changing to deliver even greater value to The International Air Transport its members.04m high – exceeded the aircraft’s main cabin height of 4. coming close to the giant aircraft’s capacity for the route flown. Beijing. so Ruslan International’s load planners designed support cradles that enabled the load to be supported after rotating it 90 degrees. North Asia and Europe will continue to serve members in those regions as in the current structure with regional offices in Singapore. Novosibirsk (Russia) and Tianjin (China). • Simplified transit via one-stop service. The An-124 aircraft flew from Bergen to Busan via Helsinki. Senior management changes were also announced to support the new structure which will take effect from 1 July 2013. Antonov Design Bureau. • Safer and faster service for your consignments.000 kilogrammes. IATA’s four externally-focused head PGI • BAT office divisions will be re-organised into Ruslan’s cargo comprising a ‘separator’. along with two support frames and other loading equipment weighed a total of 114.

accelerating the evolution from paper-based to electronic processes. American Airlines Cargo anticipates pharma products.GATEW AYS five in order to bring together activities sharing common stakeholders and focus. airberlin. (l-r) Boubacar Djibo. The new service will complement a daily B747-400 flight from the Japanese industrial city of Nagoya to Cincinnati. Boeing said it will continue to monitor market conditions and their effect on production rates moving forward. Thomas Murphy. Revenue in the first quarter was $6. Germany (DUS). Munich and Vienna with oneworld and codeshare partner. which is expected to be completed in the third quarter of 2013.7 billion for first quarter 2012.1 billion. Ohio – the main US hub for DHL Express. and air cargo safety. dropping eight per cent year-on-year. 46 of which have been delivered. DUS Cargo Logistics has been appointed as the carrier’s handling agent in Dusseldorf. including a new nonstop flight between Dallas/Fort Worth and Lima. via Japan. Ireland. the company’s quarterly profit was $8 million. Flying a B767-300F. Passenger and Cargo Services (APCS). Rio Linhas Aéreas retires last B767-200F to be key commodities between the two countries. executive VP and COO of Polar Air Cargo Worldwide said: PAYLOAD ASIA | May 2013 Polar to start non-stop Cincinnati-Tokyo service 16 . Italy. Excluding reorganisation and special items worth $349 million. ICAO and TIACA will work more closely on air cargo and mail security and facilitation. director Air Transport Bureau of ICAO and Michael Steen. Italy. and Chicago O’Hare and Dublin. AMR is also currently anticipating a merger between American Airlines and US Airways. Financial and Distribution Services (FDS). Dusseldorf also offers connecting opportunities to Moscow. Chicago O’Hare and Rome. there are 110 orders for passenger and cargo versions of the 747-8. Quarterly cargo revenue was $155 million. It will be led by Thomas Windmuller. American Airlines Cargo loss improves Boeing has announced that it will adjust the production rate for the 747-8 programme from two aircraft to 1. as well as trucking to nearby Belgium. These are: Airports. currently senior VP (SVP). American Airlines Cargo has begun a nonstop freight service between Chicago O’Hare (ORD) and Dusseldorf. environmental stewardship. aircraft and automotive parts to be key commodities carried on its B767-300 freighter between Chicago and Dusseldorf. Luxembourg and the Netherlands. providing interline connections to the Middle East. AA Cargo rolled out additional new and seasonal service to Europe and Latin America. over and above attendance at formal meetings. Polar will also double the frequency of its wide-body freighter connections to Australia from two to four days per week. a newly created division that will combine the association’s main activities with respect to airports (including infrastructure development and financing). passenger and cargo services. The B767-200F has been returned to lessor Cargo Aircraft Management while the Brazilian cargo operator awaits the arrival of three former Royal Air Maroc B737-400s that are currently stored at both Tampa International (TPA) and Kiev Borispol (KBP) awaiting conversion into freighters. Peru.. security. To date. The routing of this service. a 79.75 aircraft per month because of lower market demand for large passenger and freighter aircraft.3 per cent less capacity compared to the same period last year. TIACA to strengthen cooperation Rio Linhas Aéreas has retired its second of two B767-200Fs and will now continue operations with its remaining fleet of seven B727-200Fs. Japan and Cincinnati. ICAO and TIACA have agreed to consult. South Korea. facilitating next-day deliveries to the US from all major cities and industrial areas in Japan. The route is the earliest nonstop flight from Chicago. and Marketing and Commercial Services (MACS). Other divisions include: Member and External Relations (MER). confer and cooperate on a continuous basis. a $256 million increase year-on-year and AMR’s first profitable first quarter since 2007.4 per cent improvement from the net loss of $1. AA Cargo will launch its first-ever service to Seoul. Safety and Flight Operations (SFO). The increase in Polar’s frequencies will be supported by the introduction of two new B767300ERF wide-body aircraft. chairman of TIACA. the highest first quarter revenue in the company’s history and one per cent higher on 1. the liberalisation of market access for air cargo services. reported a net loss of US$341 million for the first quarter of 2013. Americas AMR Corp. Under the terms of the new agreement. will allow Polar customers such as DHL Express to optimise their intercontinental networks and introduce additional capacity both from the US and from key North Asian markets to Australia. They will keep each other informed of project activities and programmes of work in the areas identified in the Declaration of Intent. medical instruments. on 9 May. Following the recent ‘New American’ tie up between their parent group and US Airways. and returning seasonal service between New York – JFK and Rome. Member and Government Relations. the new service will aim to provide customers with more shipping options and offers Expedite and Expedite TC (Temperature Controlled) services. a Declaration of Intent to strengthen cooperation on technical matters. the parent company of American Airlines. The company expects long-term average growth in the air cargo market to resume in 2014. Pharmaceutical products. Boeing slows 747-8 production rate The International Civil Aviation Organisation (ICAO) and The International Air Cargo Association (TIACA) have signed ICAO. Earlier this month. medical instruments and automotive and aircraft parts are expected New AA Cargo service ORD-DUS Polar Air Cargo Worldwide has confirmed its plans to initiate a daily non-stop B747-400 express freighter service between Tokyo.

ocn.com the show floor and the conference sessions.com call her at +65 6521 9749 (GMT +8). we look forward to the continued growth of DHL and our other freight forwarder customers in the intra-Asia region. Avient Ltd. is set to start operations from 1 June with tentative flights to be offered from Freetown Lungi International (FNA) to London Gatwick (LGW). Facing increased competition on its international and regional routes. how air cargo companies are positioning themselves for growth after the prolonged downturn. with a second scheduled for delivery in May. the new national carrier will rely on Arik to initially provide it with both aircraft and technical skills. QuickPak. will provide operating service for the aircraft on the new routes.com or www. Jun 9-11 The Freight Summit Shanghai.com | May 2013 17 . as Jun 4-7 Air Cargo Europe well as coverage from the Air Cargo Europe event in Munich – both from Munich. For Jun 7-8 Federation of Asia Pacific Aircargo Associations (FAPAA) 40th ECM Jakarta.fapaa. Donald Urquhart at email: donald. airline plans to use the acquisition as part of a turnaround plan which will involve developing Algier Houari Boumediene (ALG) into a hub while reorienting the airline’s business model towards its previously neglected Africa market. the state-controlled Air Algérie tenders for 14 pax. the impending European emissions trading scheme. The new sales wing.urquhart@contineomedia. the impact of intensified competition from the Gulf carriers. Air Algérie announced in January that.payloadasia. United Cargo is offering EXP and GEN freight services in addition to PetSafe. Formed in 2011 out of a partnership between Nigeria’s Arik Air and the Sierra Leone government. The first of a possible three MD-11F aircraft is set to enter active service shortly.ne.” United said.” Polar Air Cargo Worldwide’s sister company.thefreightsummit. as part of its fleet renewal plans.com or call www. China please contact Yullie Tan at email: yullie. Arik has been Sierra Leone’s ‘designated carrier’ thereby allowing it to ply the lucrative Sierra Leone-UK route. Avient.jp Russia Sergey Stanovkin Tel: +7 495 7750735 Fax:+7 495 7750736 Email: consulting@dars. Canada Matt Weidner Tel: +1 610 486 6525 Fax: +1 610 486 6527 Email: mtw@weidcom. Atlas Air. operations will then spread to encompass domestic and regional flights.tan@contineomedia.com European Air Cargo Supplement in July Issue The upcoming European Air Cargo Supplement will examine current issues facing the European industry including the severe impact of the euro crisis and falter economic growth in many of Europe’s economies. Since 2009. Avient Aviation continues operations Advertising offices: Worldwide Yullie Tan Tel: +65 6521 9749 Fax: +65 6521 9788 Email: yullie. we can serve your shipping needs to more destinations in Europe than any other US carrier.  This upcoming supplement will examine these issues and other key trends in the industry. “With this new widebody service. going into bankruptcy administration following crippling losses. TrustUA and TempControl on its flights between San Francisco and Paris.tan@contineomedia. three 250-seat and three 70seat passenger aircraft – and two 13-20 tonne-capacity freighters. B737-800s and A330-200s.com United States.com France Daniel Solnica Tel: +33 1 4246 9571 Fax: +33 1 4246 8508 Email: dsolnica@club-internet. along with the retirement of its three ageing B767-300s.ru South Korea Kwangsok Hong Tel: +82 2 466 5595 Fax: +82 2 466 5596 Email: kshong2000@nate. by the administrators. Germany www. to be called AV Cargo Airlines has reportedly been given approval to carry out the business of former Avient Ltd. it was eyeing a future medium/long haul fleet based on B787-8s. For advertising in July supplement. specialises in the Europe-Africa market with scheduled services offered from its hubs in Liège Bierset (LGG) and Dubai International (DXB) to eight west African destinations. UASecure.org him at +65 6521 9760 (GMT +8). 2 cargo aircraft Zimbabwe-based Avient Aviation is set to continue operations despite its sales arm.GATEW AYS “In addition to the trans-Pacific trade lanes. 2013 CALENDAR OF EVENTS www. Once the airline has become viable. United Cargo has introduced a new daily non-stop service between San Francisco International Air port (SFO) and Paris Charles de Gaulle International Airport (CDG) with B767 aircraft from 26 April.aircargoeurope. Zimbabwe’s only registered all-cargo operator. Indonesia editorial participation and contributions please contact the Editor.fr Japan Katsuya Watanabe Tel: +81 90 5321 6881 Fax: +81 3 6823 8994 Email: kwatanab@crocus. New nonstop SFO-CDG for United Cargo Leone Airways to launch in June CALE ND A R Africa Sierra Leone-based Leone Airways Air Algérie has tendered for the purchase of 14 passenger aircraft – eight 150-seat. AV Cargo Airlines has already obtained funding and has secured new aircraft.

However. Between 2006 and 2011.500sqm centre is at the heart of a unique integrated end-to-end approach designed to meet the detailed needs of the high-fashion and luxury industry. featuring comfort cooling. because of the seasonality of their products. The site will be accessed by a one-way traffic system.” said Steve Huang. The challenge – and opportunity for DHL – is providing all three cost-effectively in China where demand is soaring. the freightforwarding arm of FedEx. according to DHL. optimised network has become critical to retail success.” FedEx Trade Networks also established strategic alliances with locally-based regional service providers to enhance its coverage to 19 countries throughout Latin America. CEO. president and CEO of FedEx Trade Networks. the company has opened new offices in Brazil and Mexico.LO GIS TI C S DHL opens Shanghai Fashion excellence centre to-end solution designed around the specific needs of high-fashion retailers of a wide range of different products – from ready-to-wear and leather goods to jewelry and watches. said. “In addition to comprising both bonded and non-bonded facilities.   “China’s fashion industry has tripled in market size in the last 10 years. Dedicated experts will design and manage solutions for import. close to Heathrow’s cargo village – will include 4.65 acre compound on the North Feltham Trading Estate. There is immense opportunity here for us to support the logistics needs and challenges of our customers and in turn. non-merchandise and sales order management as well as reverse logistics. In 2011. DHL Global Forwarding restructured its consumer business launching retail as a separate division. because of their high value.” Fred Schardt. “Trade volumes continue to increase in Latin America. on the outskirts of Shanghai. Last mile services include delivery and unpacking instore by DHL employees who are also trained to stock shelves and racks.  As a result of anticipated growth. So is storage in a clean. The ability to fulfill multi-channel distribution through a single. DHL Global Forwarding said: “The high fashion industry’s three priorities are speed. IT and surveillance systems and dedicated operations and security management teams. storage for 1. Though the company has operated in both countries since 2009. DHL Global Forwarding. DHL Global Forwarding China. “FedEx Trade Networks is committed to delivering reliable supply chain solutions where our customers do business.3 million. This has become one of the company’s fastest-evolving new business sectors as global retailers and manufacturers have redesigned their supply chains in response to the multi-channel purchasing options that customers prefer. “In 2012 alone. Mark Lau. fragrances. it added new locations in Rio de Janeiro.645 sqm of warehousing featuring eight truck docks. This Fashion Center of Excellence is not just a milestone for DHL but a timely response to the growing requirements for first-rate logistic solutions for the high fashion industry in China. security. stitching and knitting. and safe handling at all stages because these are goods that are easily spoiled. Value-added services include sorting and picking. visual quality control. labeling. At an investment of €4. The entire aforementioned flow is visible on DHL Global Forwarding’s integrated IT system. The centre will offer flexible. the luxury goods market grew six per cent with Chinese consumers now the number one buyers of luxury goods and globally responsible for 25 per cent of total sales. The centre will offer customers an end- Work begins on new Toll UK HQ Toll Global Forwarding will move to a brand new UK headquarters building at London Heathrow Airport in October this year after work commenced on the new site in early April. Guadalajara and Monterrey. FedEx Trade Networks expands into Latin America FedEx Trade Networks. cosmetics and accessories. DHL Global Forwarding is currently evaluating the development of DHL Fashion Centers of Excellence elsewhere in China. multi-zone chiller for perishables. China’s high-fashion capital. the air and ocean freight specialist within DHL.” In establishing the centre. Pakistan. solar shading and a two-storey-high reception area and will comply with BREEAM ‘Very Good’ sustainability standards. Unique features include a ground-floor buffer zone that can be quickly reconfigured to cope with the massive seasonal influxes peculiar to the high fashion industry. cages. the DHL Fashion Center of Excellence has state of the art anti-theft and anti-counterfeiting security such as anti-pilfer crates.” said Kelvin Leung. safe storage and delivery all over China through DHL’s infrastructure and network capabilities. security. it’s worth remembering that traditional good practices are just as important to avoid damage during handling.” The 10. and our expansion efforts provide customers with greater access to superior freight forwarding in these emerging markets.858 sqm of offices on three floors. which it acquired with the purchase of WT Cargo in 2011. Bangladesh and Cambodia to capitalise on increasing fashion and apparel trade flows between Asia Pacific and Europe as well as Asia Pacific and North America.200 pallets and a large. The building will also house 1. said DHL. “DHL surveyed over a dozen of the world’s leading luxury fashion brands in China and has created a facility with a suite of services that we believe exceeds their expectations. The new Toll base will replace its existing facilities at nearby River Gardens. repacking. a cargo handling system. is pioneering a new style of high-fashion logistics with the spring launch of its ‘Fashion Center of Excellence’ in Jiuting.500sqm DHL Fashion Center of Excellence is spread over three floors and will employ over 100 specialist staff. cater to burgeoning consumer demand. Vietnam.and humiditycontrolled and dust free environment. Over the last several months. and safety. Feltham and at Skyport Drive in Harmondsworth. DHL Global Forwarding Asia Pacific. has expanded its presence in Latin America. DHL launched a series of similar Fashion Centers of Excellence in India. the 10. Sri Lanka. The new facility – on a secure 2. The centre combines DHL’s valueadded services and a team dedicated to high-fashion and luxury to manage the entire fashion supply chain from source origin countries in Europe and the US to safe arrival at retailers across mainland China.” Research by McKinsey estimates that China’s luxury goods market will be worth RMB180 billion (€22. Global Sector Head – Retail. Hong Kong.5 billion) by 2015. temperature. The company has a new strategic alliance with Portlink PAYLOAD ASIA | May 2013 18 . tailormade logistics solutions that address the industry’s top concerns of speed. CEO.

new routes to Hanoi & Xi’an Read more at finnaircargo.In summer 2013 .com 14 ASIAN DESTINATIONS .

delivering e-commerce supply chain solutions. Germany”. Envirotainer provides active temperature-controlled air freight containers maintaining product temperatures within the temperature ranges +2 to +8°C. K+N’s contract logistics unit’s turnover rose by 2. a leading Italian company in fashion apparel. near Piacenza. aims to provide a simple and straightforward guide to the industry. Our expanded certification network covers already over 90 per cent of our current Envirotainer volume.09 billion francs. bags.100 multi brand stores worldwide. aimed at promoting the industry to young people and the educational sector. France. the company plans to add 48 stations to the QEP Training and Quality Program. college students and school leavers to explore a career in air logistics. seizing computers. starting with Frankfurt. you also need to build a growing and award-winning cargo service and at Virgin we’ve done that too. DHL operates a network of 120 Life Sciences and Healthcare facilities across the globe. it takes just hours to move imports and exports from one side of the world to another. the road and rail logistics sector was negatively impacted by the European economic situation. Before aircraft.” To be published in May 2013. driven by demand for Asian exports and a moderate increase in tonnage in outbound traffic from Europe. Revenue rose 5. CEVA has also established competence in reverse logistics management and provides efficient and integrated solutions that deliver progressive cost optimisation and constant visibility of all goods within the supply chain. DHL’s network is further integrated with Envirotainer operational requirements – to ensure customers proper shipping of temperature-sensitive life sciences and healthcare products. accessories and footwear. CEVA said it will also provide highly customised value-added services. jumping 97 per cent from CHF67 million in the first three months last year. CEVA boasts a solid and deep experience in the fashion market and DH L Glob al For w arding ha s expanded its Qualified Envirotainer Provider (QEP) Accreditation to 30 stations in locations as far afield as Germany. the 280page Air Logistics Handbook. DHL expands cold chain accreditation K+N Q1 profit up on air freight. Virgin Group chairman Richard Branson has urged university graduates. as well as the transport of different kinds of products purchased online. The Kuehne + Nagel Group (K+N) today reported its net income in the first quarter of 2013 at CHF134 million (US$142 million). The new service combines customers’ shipments to help streamline their supply chain between the Benito Juárez International Airport and São Paulo-Guarulhos International Airport. Without the flow of goods and passengers around the world. operating approximately 310 mono brand stores and 5. putting air logistics at the very heart of world trade. such as packaging. By adding the QEP Accreditation to its major stations. Switzerland-based company also booked a European Union antitrust fine of CHF65 million francs. the US. gift packaging and the management of Liu-Jo returned apparel. CEVA to manage Liu-Jo’s e-commerce activities CEVA Logistics has signed a new five year e-commerce contract with Liu-Jo. offering full visibility of all orders. handling both flat and hanging garments. one of the largest freight forwarders in southern Brazil and constitutes the company’s largest alliance in Latin America. Under the terms of the contract.5 per cent versus the first quarter of 2012. Japan and China. However. invoice books. The investigation follows six months of investigation after whistleblowers exposed the alleged cartel action last year. “Air logistics is a phenomenal industry and has become even more important not only to the success of airlines but also to every consumer and business leader around the world. products moving between countries spent weeks at sea. In the upcoming months. authored by Michael Sales who has worked in the air cargo industry for over 20 years. I encourage you to explore the many career opportunities this outstanding industry offers. company records and banking documents. +15 to +25°C and >-20°C in nearly any ambient condition appearing along shipping routes globally. However. calling it ‘an outstanding industry that needs well educated executives and entrepreneurs who will be tomorrow’s leaders and innovators’. such as the personalisation of products on an individual consumer basis and also manage transport activities across Europe. Meanwhile. Today. accessories and shoes for many leading fashion brands. PAYLOAD ASIA | May 2013 Air Logistics Handbook targets fresh grads 20 .LO GIS TI C S Logística Multimodal. Sweden begins price fixing investigation Sweden’s competition authority (SCA) has raided 10 logistics companies for suspected price fixing. To make them work successfully. The new alliance has enabled FedEx to launch new freight forwarding options such as an air consolidation service between Mexico and Brazil. Egypt. says David Bang. airlines are not only about passengers. he states: “Air travel has transformed all of our lives and helps us experience different cultures and make new friends all over the world. The company’s air freight business realised a five per cent increase in volume for the quarter. the company said. and we will continue to enroll additional stations worldwide to the program.4 per cent to 5. The Schindellegi. including returns. as well as adverse weather conditions. our way of life and the development of poorer countries’ economies wouldn’t exist. CEO of LifeConEx. CEVA will provide Liu-Jo with solutions for online sales. In a written introduction to the new ‘Air Logistics Handbook’. shoes and accessories at CEVA’s warehouse lo cate d in Cortemaggiore. “The QEP Accreditation supports our cold chain objectives to deliver excellent customer service with product integrity and regulatory compliance in mind. Dubai. contract logistics CEVA will manage Italian fashion label Liu-Jo’s e-commerce business including personalisation of products on an individual consumer basis. UK. DHL Global Forwarding’s temperature management specialists. Italy.

where the newly established special economic airport zone (SEZ) in Ulyanovsk – a city lying in the center of European Russia and unofficially called the aviation capital of Russia – will play an important role.com More about Ulyanovsk The city has many specialized aircraft industry enterprises. The airport is capable to accept all types of aircraft and serves as the home base for two Russia’s largest air cargo carriers operating unique AN-124 heavy transport aircraft – Volga-Dnepr Airlines and Polet Airlines. SEZ is meant to provide ideal conditions for businesses. as well as hotel and business center facilities. The success in achieving this goal will greatly depend on investing into the country’s transport infrastructure and creating additional trade incentives. The city of Ulyanovsk is situated in the European part of Russia. Aviastar-SP formerly produced AN-124 heavy transports and now concentrates on TU-204 passenger aircraft and a new modification of the IL-76 freighter. allowing large imports without provisioning of funds for customs payments until the goods are sold in Russia. Moreover. Ulyanovsk region is industrially and financially developed and has an extensive road and rail infrastructure. which are interested in delivery of goods to Russia. Ulyanovsk. to explore opportunities of a distribution center in SEZ – a project that will include a multimodal cargo terminal. Another important advantage is the free customs zone regime. the USSR’s answer to its widely known US counterpart. within the 1. including Moscow. specifically for distribution centers specializing in goods imported to Russia from other countries. The current APAC share in Russian foreign trade accounts for around 20% and is steadily growing. including a separate customs office to serve exclusively SEZ residents. the turnover with China as the main Russian partner in this region reached $87. Our contacts: 29 40-Let Pobedy Street.5 billion showing an increase by 5. The SEZ general infrastructure construction. RUSSEZ invites all manufacturing. with 75 million people and many large cities. 850 km east from Moscow. The SEZ managing R company (RUSSEZ) and the Ulyanovsk Region provide comprehensive support to investors in implementing their projects. with $100 billion and $200 billion benchmarks set for 2015 and 2020 respectively. . as well as zero-rate property. including the largest aircraft factory in Russia – Aviastar-SP. However. on the air routes connecting South East Asia and Europe over the Russian territory. Russia Tel: +7 (8422) 20-70-81 E-mail: ulyanovsk@russez. The airport’s 5 km long and 100 m wide runway (one of the world’s longest) was built back in Soviet Union’s time as an alternate landing strip for the “Buran” space shuttle program. include the reduced income tax from 20% (standard rate in Russia) to 2%. among other benefits. transport and land taxes for SEZ residents. its capacities far exceed current use and create many opportunities for prospective new-comers.1% from 2011.ulsez. RUSSEZ also invites aircraft industry manufactures and MRO providers to establish or expand their presence in Russia through the special economic zone in Ulyanovsk. all necessary customs infrastructure will be created in SEZ. trade and logistics companies. This ambitious goal was announced by the First Deputy Prime Minister Igor Shuvalov not long before the recent APEC summit in Vladivostok. Russia’s United Aircraft Corporation (“OAK”) also selected Ulyanovsk as the site for its composite wing factory for Russia’s prospective MS-21 widebody project. as well as connections to all utilities are financed by the government. The incentives. This means that any goods imported from overseas are exempt from customs/excise duties and VAT as long as they stay within SEZ. warehouse and exhibition. 432059. In 2012. which will significantly accelerate customs formalities. creating all necessary conditions for distribution of goods.YOUR GATE TO RUSSIA ussia intends to boost its relations with APAC countries with the aim to increase their share in Russia’s foreign trade turnover up to at least 50%. the Russian government has promoted solid steps for such development. Hence.000 people. The city has population of 650.000 km radius.ru www. SEZ is located directly next to Ulyanovsk-Vostochny International Airport.

Burgmans was speaking at the TNT Express annual general meeting on 11 April to respond to questions about why the deal collapsed in January.” said Hsu. communications if there are issues that need addressed and followup after the shipments if necessary. Taipei. “We are improving service and adding capacity between Asia and the US to support the continued two-way growth we see on the world’s biggest trade lane. the 767-300ERF aircraft will be operated by Polar Air Cargo Worldwide.” the TNT Express chairman said. from two to four days per week. and off during aircraft flight.” the customer’s requirements prior to said Burgmans. temperature. with Incheon in Korea and Nagoya.” He also pressure monitoring and automatically turns itself on commented that former CEO. The service is currently available within the US and to and from Canada. A new wide-bodied freighter flight will link Taiwan’s capital. Puerto Rico and the UK. will create the largest express carrier in Brazil. FedEx Custom Critical. The service could say that the way the project was run includes programming the device to meant it did not have the right result. a subsidiary Burgmans said TNT itself had “no of FedEx Corp. humidity and barometric the Brussels culture. Routing shipments via Japan. intra-Asia TNT chairman blames UPS attitude for fail DHL Express is adding wide-body capacity to new and existing services in Asia. UPS is appealing the 30 January decision of the European Commission to prohibit its acquisition of TNT Express. “With the benefit of hindsight you track customers’ shipments. TN T Express chairman Antony Burgmans told shareholders that the collapse of the UPS takeover was down to the American company failing to understand the culture of the European Commission.E XPR E S S & MA IL UPS appealing EC’s TNT ruling Command Center at FedEx Custom Critical headquarters. because of the impact on competition During transit FedEx Custom Critical within the European cross-border small can monitor location. If you wish to operate successfully in The SenseAware device includes GPS as well as Brussels. monitore d by the S e c ureComm you must make sure that you’ve done your homework very carefully. Along with an additional wide-bodied aircraft to its global aviation network. with two additional B767300ERF aircraft offering a capacity of more than 55 tonnes. DHL is also set to double the frequency of its wide-bodied freighter connections to Australia. From this side of the table we did everything we could to give all the information about the Brussels culture. “If the appeal is successful. it will be reinforcing its daily US to Australia connection and adding daily capacity from key North Asian markets into Australia. “Brussels has a totally different culture than in Washington.” Gardner said the appeal should not be interpreted as a renewed interest in TNT Express. the shipment. has launched a new control” over the process of seeking monitoring service called ShipmentWatch regulatory approval.” He suggested that the world’s biggest package delivery company had not been sufficiently “humble” in its dealings with EU officials in Brussels . light exposure. DHL Express boosts Asia-US. UPS spokesperson. The new operation expects 22 PAYLOAD ASIA | May 2013 . As with the new Japan to US flight. A UPS spokesperson says the company believes the EC’s decision was factually and legally erroneous. said the new flight was being introduced as trade between Asia and the US was predicted to grow 10 per cent a year up to 2020. the prohibition decision would be ‘annulled. it was all down to which utilises SenseAware devices to UPS. “UPS was fully in charge of everything. with daily flights between Nagoya and DHL’s hub in Cincinnati.2 billion deal in January. said Flex Aero president Rui Aquino. “did not leave in a civilised manner”.” said Peggy Gardner.. and will be operated by partner airline Polar Air Cargo Worldwide. Japan. Brazilian express carriers to merge The imminent merger of T WO Aviation and Flex Aero. This team provides the initial setup with the customer. Jerry Hsu. the DHL Express Asia Pacific chief executive. The improvements should be launched by the end of April 2013. Canada and Latin America shipping to Japan. had drawn from the debacle was that All ShipmentWatch moves are “whenever you’re dealing with Brussels.’ which essentially means the prior decision could not be used as a basis for future decisions by the EC. you’ll have to accept temperature. The return flight will mean a two-day delivery service for customers in the US. light package delivery market if Europe lost exposure. humidity and barometric one of the big four integrators. DHL said its aircraft will have a capacity of more than 100 tonnes. Facing shareholders questions as to FedEx Custom Critical why management had been so confident launches ShipmentWatch of success before the EU Commission blocked the €5. The company said it is introducing a new non-stop B747-400 freighter service to improve delivery capability from Tokyo to the Americas. Marie-Christine Lombard. pressure through the SenseAware device The TNT Express chairman said and web-based application and can be candidly that the lessons his company used on FedEx and non-FedEx shipments. “We are challenging the decision in order to ensure a more accurate assessment of the EU competitive landscape and that no precedent is established by the EC that would limit international growth opportunities. sending the device to the The Commission stated in January shipper and then proactively monitoring that it did not want the deal to go ahead the shipment from pickup to delivery. to form TwoFlex. DHL said it has made improvements to its intra-Asian connections to open up trade lanes between Asia and the Americas. monitoring during the shipment.

the international mail division of Deutsche Post DHL has focused on exporting – shipping business www.” said Flex Aero president Rui Aquino. In the past. as it can land on unpaved and short runways. as well as such critical functions as conveying auto parts. final mile labeling and manifest.000 tonnes. DHL Global Mail is now planning to roll out an inbound solution for the UK and the US later this year. “The airlines and regional carriers serve only 130 of Brazil’s more than 5. and is never closed by weather. “At a hub like Brasilia. raising their current combined average annual 7.EXPR E SS & MA IL to command 60 per cent of the country’s air cargo market. DHL offers cross-border B2C in Australia DHL Global Mail has launched a new cross-border shipping service to help retailers to source goods from Asia and deliver direct to consumers in Australia. and our [Caravan] fleet will already be 10 per cent the size of Federal Express’. Two-Flex will be based at Jundai Airport in São Paulo state. Hong Kong and China. “Now.com | May 2013 23 .” he added. along with a pair of ATR twin turboprops. The company says its new solution will “significantly” reduce the costs of importing items and delivering them to consumers in Australia. and then final mile delivery is provided by Australia Post. according to Aquino. and TWO’s in the center and south. which offers delivery confirmation but not live tracking. Currency transport for banks is just one activity in Brazil that depends on express freight services. mail.  The joint venture will have 18 Cessna Grand Caravans – nine from each partner – with plans to add 12 more of the same model by year-end.500 tonnes of cargo carried to 10. with 18 aircraft and 11 bases throughout the country.” said Aquino. But it is now introducing inbound solutions for items up to 20kg in weight. will allow consumers to buy items sourced in various Asian countries. “The Grand Caravan was designed to meet FedEx’s need for a lowcost cargo plane. although initially the service is focusing on Singapore. packets and parcels to more than 200 countries.” said Aquino. I couldn’t offer that. then DHL will deliver the item direct to the consumer’s door. I can go from the north of Brazil to Porto Alegre in the far south. Flex Aero’s operations are stronger in the north of Brazil. and Two-Flex will be an alternative to the country’s current infrastructure problems. there is a corresponding reduction in bellyhold space where air express packages go and fewer connecting flights. Before. The new service.” he said.payloadasia.  With Brazil’s two major domestic air carriers shrinking passenger capacity.500 municipalities. DHL handles the customs clearance into Australia. providing an end-to-end service that particularly has Australia’s growing e-commerce sector in mind. “It operates 24 hours a day. Retailers will be able to have their suppliers fix a generic barcode label to a product and provide DHL Global Mail with a manifest file. at day’s end there are a lot of packages left over that didn’t get sent on to their destination. noting that the aircraft is particularly well adapted to Brazil.

especially for key emerging markets.140 tonnes and February saw the monthly tonnage at 168. behind it.912 tonnes in total with export volume reaching 318. Transhipment volume registered PAYLOAD ASIA | May 2013 24 .A IR PORT S & G R O U N D H A N D LIN G Strong Q1 growth at Lambert-St. in Johannesburg and Cape Town. marketing and sales. Heathrow and Gatwick have already clashed on the issue with Heathrow claiming Korean Air’s decision to drop a Gatwick–Seoul service reveals the problems of running long-haul flights from a non-hub airport. The year kicked off with January cargo volumes of 228.7 per cent. ten other carriers including lowcost airlines were scheduled to move to the new airport already as part of a soft opening. the cargo terminal at Durban’s flagship King Shaka International Airport which opened in May 2010. AFS (South Africa) has opened a 3.5 per cent. Worldwide Flight Services (WFS). the airport said. Lancaster added. Its vision is to spread capacity so that three two-runway airports – Gatwick. said: “We are very pleased to welcome American Airlines to this airport. We are established as the lower-deck specialist airport – offering more than 180 intercontinental destinations worldwide and providing the hub for two of the three big airline alliances. Qatar Airways was forced to cancel the inaugural flight to Doha Hamad International that was scheduled to open on 1 April on very short notice. Etihad. with outbound mail recording a substantial 39.” Gatwick criticises Heathrow ‘mega-hub’ model Düsseldorf welcomes daily American B767-300 The northern German airport of Düsseldorf saw the arrival of the first American Airlines daily flight from Chicago O’Hare on 12 April. While Heathrow’s slots are full. manager. The airport’s ready access to a wide range of lower-deck capacity. AFS will enable us to enter into local partnerships and joint ventures. The airport’s inauguration. Louis airport. Although he says it’s premature to assert whether this growth trend will continue. said: “Africa Flight Services (AFS) is a new brand for our expansion plans in Africa.976 tonnes. Gatwick has claimed that competing London gateways would trump a single hub by cutting travel costs and safeguarding connectivity. An American Airlines spokesperson noted the huge potential for cargo uplift between the two destinations. The flight connects transit passengers and cargo with many other carriers such as Air Berlin. followed by a rise to 246. together with an independent trucking network based in a high In its submission to the UK’s Airport Commission. and to customise services and tailor resources to the needs of customers in this dynamic and rapidly growing market. Air China and Lufthansa. a new joint venture partnership between the world’s largest provider of cargo handling services.000 square metre cargo handling warehouse facility at O. offers an average of around eight tonnes of belly cargo capacity on this route. This is an important and growing market for us and we want to give it a dedicated focus but with the ability to draw on all the expertise and resources of the WFS global network. “there is certainly more optimism among our community than has existed for some time.” The ground handler has been struggling to put the fiasco at Dube Tradeport. Volumes surged 3. has been hampered by a lack of conformity to strict new safety and security standards Q1 volumes up. cargo development director at Lambert-St.6 per cent.5 per cent and 7.” said David Lancaster. year-on-year. operating at Düsseldorf. For Gatwick. Inbound freight and mail also grew. Barry Nassberg.R. Gatwick argues most passengers through the city start or end their journey there. said a Gatwick spokesperson. “IATA figures show that the majority (93 per cent) of journeys using London airports are for passengers that either begin their journey from our airports or fly to them as a final destination. DUS Cargo Logistics. delayed now for a fourth time. although more moderately during the first quarter of 2013. Tambo International Airport in Johannesburg and a 2. The B767-300. respectively. year-on-year. “We have seen healthy growth in all sectors of our business so far this year: domestic and international cargo. the main cargo handler at the airport handling over 30 airlines. Gatwick has 25 per cent spare capacity – mainly outside business peak hours – opening up longhaul options. SA Airlink has taken off.860 tonnes. The hub is increasingly important for the big forwarders and logistics companies. Hactl sees slow recovery Hong Kong Air Cargo Terminals Limited (Hactl) announced its tonnage throughput for the first quarter of 2013 with volumes up 1. in the first three months of 2012. travellers stand to gain more from competition between gateways than from a focus on a single hub. While the national carrier of Qatar had only planned to move cargo and some charter flights to the new airport from 1 April. Africa Flight Services (South Africa) Pty. Thomas Schürmann. the Star Alliance and the One-World. But Gatwick CEO Stewart Wingate described a mega-hub solution as “yesterday’s solution to tomorrow’s problem. group COO of Worldwide Flight Services. Heathrow and Stansted – can compete for airlines and customers.” Gatwick sees recent new routes to Moscow and Indonesia as evidence it can safeguard London’s connectivity. Lambert-St. While Heathrow sees a focus on a single large hub as the best way to safeguard London’s connectivity. There is a realistic expectation of increasing cargo traffic on the route. has been appointed to handle the airline. as allegations of corruption between WFS’ franchise partner and Dube Tradeport’s CEO continue to the dog the operation with legal proceedings imminent. year-onyear.340 square metre freight centre at Cape Town International Airport. said the spokesman. with stateof-the-art facilities and government investment. Emirates. and the South African airline. New cargo handling JV for South Africa Qatar’s new airport delayed again With a solid launch customer in the form of Emirates SkyCargo.” said Gatwick in a statement. rising 2. Louis potential catchment area is stimulating Düsseldorf ’s further cargo growth”   as prescribed by the Qatari Department of Civil Defence.912 tonnes in March. y-o-y jump. and mail. Cumulative tonnage in the first quarter was 643. Louis Airport in the US mid-west has posted its strongest first-quarter freight throughput since 2011.5 per cent.004 tonnes and import volume recorded 153.

Dubai (DXB). please visit: www. Salomone added: “Political prevarication and policy reversals have left Britain in the slow lane in developing its infrastructure for decades.” The call comes on the back of a major survey published by EEF. as compared with January 2012 and distorting the statistical comparison. coupled with a high concentration of international air freight among Asia-Pacific airports. However HKG and PEK. HKT KUL SGN SIN SYD AKL To find out more about Air Logistics Group. according to the Airports Council International (ACI). The forthcoming transport strategy is an opportunity to address this..payloadasia.” across the board. in addition to many other Asian airports. only the Middle East posted gains in both passenger and freight traffic. To keep up with the competition we need investment Global freight down 6. Roger Salomone.3 per cent year-onyear. we expect that it will be at best flat compared to 2012 as slow economic recovery persists. showing the potential threat from the UK’s stretched infrastructure to business competitiveness. the manufacturers’ organisation. witnessed a significant air freight decline in February 2013 compared with February 2012 as a result of the Chinese New Year taking place in February 2013. Of all regions. “Febr uar y ha s alw ays b e en a traditional slower month due to the extended Chinese New Year holiday.4 and 15.A IR PORT S & G R O U N D H A N D LIN G 171. Government must reassess its investment priorities. After adjusting for the seasonal factor. experienced double-digit growth in passenger and freight traffic at 11.932 tonnes. said. Air Logistics Group can provide professional GSSA services to meet your requirements. said: “World-class air links are critical to export-led growth and attracting inward investment. The Engineering Employers Federation (EEF) wants ministers to “take the politics out of infrastructure” by setting up a wide-ranging independent infrastructure commission to take major decisions out of the hands of government.com www. resulted in a 6. With 20 offices across the region. With the most extensive network in Asia. while global air freight volumes continued lingering in the AHMEDABAD AMSTERDAM ATLANTA AUCKLAND BANGKOK BARCELONA BEIJING BELGRADE BERLIN BOGOTA BRATISLAVA BRUSSELS BUDAPEST CHICAGO COLOGNE COPENHAGEN DELHI DUBAI DUBLIN EAST MIDLANDS FRANKFURT GUANGZHOU HAMBURG HANOI HELSINKI HO CHI MINH CITY HONG KONG HOUSTON ISTANBUL JONANNESBURG KUALA LUMPUR LISBON LONDON LOS ANGELES LYON MADRID MANCHESTER MARSEILLE MIAMI MILAN MUMBAI MUNICH NAGOYA NAIROBI NEW YORK OSAKA PARIS PHUKET PORTO PRAGUE PRISTINA RIO DE JANEIRO ROME SAO PAULO SEOUL SHANGHAI SINGAPORE SOFIA STOCKHOLM STUTTGART SYDNEY TALLINN TBILISI TEL AVIV TIANJIN TIRANA TOKYO VALENCIA VIENNA WARSAW WASHINGTON ZURICH PEK TSN ICN KIX TYO NGO DEL AMD BOM BKK CAN HKG SHA HAN Building the largest GSSA network across Asia. UK manufacturers back Heathrow expansion Britain’s manufacturers have called on the UK government to give the green light to a third runway at Heathrow Airport.8 per cent in February. This factor..9 per cent respectively. act faster on major issues like airport capacity. Air Logistics Group can provide full coverage of all major gateways through Asia.3 per cent year-on-year decrease in total air freight and an 11. Maintaining our status as a global aviation hub is critical to our international standing and expanding runway capacity at Heathrow is the most viable way to secure this.airlogisticsgroup. Looking into the second quarter.3% in February: ACI Global passenger traffic rose 1. the overall first-quarter figures were satisfactory.8 per cent decrease in Asia-Pacific air freight. EEF’s head of business environment policy. down 6.3 per cent respectively. Most of the growth came from Asian airports with both Hong Kong (HKG) and Beijing (PEK) reporting robust increases of 15 and 7. The survey comes ahead of the publication of the government’s transport strategy and Spending Review this summer. Total passenger and air freight traffic both grew by nine per cent year-on-year in Middle Eastern airports.” doldrums. the region’s key hub. chief executive of Hactl. in Heathrow and in regional airports.com | May 2013 25 . Mark Whitehead.

For the air cargo and express industry.” he adds.” But it’s not just about what’s going on in the air that’s having an impact. the ocean industry has dramatically increased its size and scale with Panamax. And while a slowdown in the global economy helps boost the ocean sector. noting that it has a global market size of US$78 billion. at the recent Cargo Facts Asia conference in Hong Kong. New Panamax and in the near future the fuel PAYLOAD ASIA | May 2013 26 . Looking at the larger cargo sector. “And of course Asia is at the heart of it. are about the same capacity. We’re still lifting a lot of electronics and they’re still important. having shelf lives of only six months in many cases. Looking back. Cunningham notes that over the period 1994-2004 ocean freight and air express have each gained five per cent market share over the period. he argues. they have fundamentally changed over the decades. By Donald Urquhart in Hong Kong.” during this time he says.” Meanwhile. particularly between 2004 and 2011. And importantly. that B777 or B747-8 compared to the B747 of the 1970s when it was first introduced. Customs and security issues have also dramatically changed. medical devices. It is an industry that has become a “tremendous value creator for the globe. the growth rates of ocean and air express have been in the high single digit rates while general air cargo has remained virtually flat. reliability. with a 40 per cent share of that market. These companies now represent 36 per cent of the global market. he adds. The air cargo market has changed in other ways too. he says.” he highlights. he adds. gave his take. “But what’s intrinsic about this new environment. “The ocean industry has gotten a lot more efficient and lot more reliable.” he says with a grin. but capacity far exceeds the demand out there. to David Cunningham small and medium sized enterprises increasingly reliant on e-commerce. It was a wonderful time to be in the air cargo and air express business. luxury consumer goods and in the case of FedEx.CO VER STORY Change when change is needed Facing a serious set of challenges. but not quite the same as today – they were big and they were expensive.” While the latest generation of aircraft are “great technology. FedEx Express president for Asia Pacific. Cunningham notes that while some of the core commodities shipped 30 years ago remain. on the changing nature of the air cargo industry and what it needs to do to become more sustainable. is that shipment size is shrinking – it’s getting a lot smaller. The customer base has changed as well: From large global multinational companies that produced goods and shipped them on a regular basis. even the odd panda bear shipment. It’s now all about specialisation – healthcare. “This has huge implications on our business moving forward. door-to-door service and customs clearance.” he notes.” And another key difference: The electronics are now much cheaper. creates 32 million jobs and generates $3. a far cry from 2008’s record high of $147 and even today’s $80-100. the value proposition of the day was about speed. it’s a different world. he says. Electronics were a key commodity back then. effectively when you think about it. while the general air cargo market share has shrunk by 10 per cent. “almost disposable consumer items” he says in reference to new products that come and go regularity. fabulously reliable and much more fuel efficient. T he air express veteran who has been with the US giant for over 30 years. it’s more than that. cheap fuel and productivity that the new technologies were creating. “which has really been the heart of the manufacturing. longer range aircraft impacting global travel and the movement of cargo. They also have a lot more belly capacity than a B747 or other widebody aircraft of past. “Today. The high tech world was driven by Japanese manufacturers with some assembly in Southeast Asia. The global economy of the 1970s was fueled by cheap labour. “making our world a much more difficult world to do business in.5 trillion in economic activity. the general air cargo sector needs to take a leaf out of FedEx’s playbook and change – and that change includes a rebalancing of capacity with less dedicated freighter capacity says David Cunningham. noting many of them have the capacity of a B737 freighter just in the belly.” something that has been going on for the last 15 -20 years and will likely continue into the future. 20 of which he has spent in Hong Kong. “And the best part – capacity couldn’t keep up with demand. he cautions. both in terms of consignment and shipment size. Fuel costs have also altered the air cargo landscape with Cunningham noting that as recent as 1999 fuel was only US$16 a barrel. pharmaceuticals. The equipment has also changed significantly with far more fuel efficient. Over the last 15 to 20 years this has shifted to China.

It’s all about having the right product. www. including competition from his own sector.” Advice for the industry Payload Asia asked Cunningham what.” But Cunningham is quick to point out that all of this doesn’t mean it’s the end for air cargo and particularly air express which has been growing and ultimately will continue to do so. chasing whatever that episodic demand is and you’re hoping that’s going to work out. One problem he notes is that the consumer electronic launches every six months or so. beyond just the economy. It’s a very different growth rate that we’ve historically seen and this has major implications for the business. large belly capacity aircraft and this episodic demand there has to be a rebalancing of capacity. need to move by air. but again my point is I don’t see the days of past being the days of the future in terms of the amount of demand that’s out there. “but you’ve got to use your marginally costed belly space and a limited amount of dedicated main deck space relative to the models that we’ve seen over the past ten years or so.com | May 2013 27 . you’ve got to fly somewhere and if you don’t you’ve got the ownership cost of it just sitting on the ground. in 2014 the Panama canal expansion will open up and when it does these big ships will begin operating not only to the US west coast but the east coast as well. that the ocean industry continues to grow. the crews. you’ve got a lot more main deck capacity than you need. “For air cargo there’s going to continue to be a relationship between value and total distribution cost and that means certain products. at the right time. with the long range. but again feels there’s going to be a rebalancing. is they’ve identified the right point of leverage between passenger and cargo operations at about 30-40 per cent of revenue contribution from cargo.7 per cent for 2013. And so I think over time there’s probably going to be a rebalancing of that model in the mixture of cargo capacity to passenger belly capacity. the air cargo market. neither could escape the impact of the global downturn with the FedEx and its operating units. You’re flying a lot more main deck capacity. In past 15-20 years we’ve seen strong single digit growth and even double digit in some cases. Then what do you do? “Many of the flag carriers around the region over the last 15 to 20 years have identified the cargo sector as an important sector to grow in and then what they’ve done. the ships are larger and much more efficient and of course the ocean industry is also integrated with ground and rail transport and they’ve applied the same technology as we use – tracking and tracing with all the information visible. creates “massive episodic demand. but of course ships don’t burn Jet A. then it’s gone. on the back of very weak last couple of years. “I think fundamentally that with the miniaturisation. in his view does the general air cargo sector need to do to address this smorgasbord of challenges. But look at the forecast of 2. to an environment today where you’ve got a goal of 30-40 per cent of your revenue being generated by cargo. at certain times.” He also sees a continuing role for the maindeck and specialist carriers. giant Triple E (18.” says Cunningham.COVER S TORY efficient. he says. large belly capacity airplanes are just going to keep coming. they burn bunker fuel which is far cheaper.” that traditionally has moved in freighters and “it’s one way traffic. you’ve got maintenance. “But when you move from marginally costed belly space and a limited amount of main deck cargo capacity which was the old model. “It’s clear looking forward that one of the things that’s changed is the economic outlook and with it. “So. A New Panamax is 6-7 times the capacity of the largest ship of the 1970s and burns only marginally more fuel. your moving that main deck capacity from here to there. “You’ve got to have a lot less dedicated capacity because when you’ve got all that dedicated capacity you’ve got to fully burden it – you’ve got the pilots. in the right place.” And to make matters worse.” FedEx not immune But as successful as both the air express sector and FedEx Express has and continues to be. “The macroeconomic issues are not going to change and those long range.” Passenger carriers can still make money on a go-for basis.payloadasia. so in my view that’s one of the reasons why.000 twenty foot containers). “It’s a thousand times more efficient on a fuel basis – and when you talk about fuel being at rates of $80-100 that’s significant.

For the first nine months of the fiscal year ending May 2013.CO VER STORY models. but it’s one that faces many different challenges in that environment. new ships. ground businesses in the US.” All change “One of the things that is really easy to do is to take analytical forecasting FedEx Express has taken delivery of 23 efficient B777Fs with orders for 20 more.” he says.” “I’m also optimistic about China. drive change and execute change. division reporting a sharp 13 per cent decline in international priority freight revenues. as well as developing and growing its European business including ground capabilities there. 28 .” Having been with FedEx for 30 of the company’s 40 year history. “We’re taking capacity down.” PAYLOAD ASIA | May 2013 Packages fresh off FedEx Express aircraft move along the conveyor belt at a FedEx sorting hub. but there are significant macro economic trends that are driving our business – long range aircraft. FedEx is also moving deferred and lower yielding products into other lower costs networks. despite what he identifies as a number of problems including bureaucratic hurdles. high domestic logistics costs and the need to transition the economy away from a focus on exports to domestic consumption. e-commerce are all going to be value drivers in the future. “China has been critical to all of our success and has certainly been critical to our success on a global basis. “I’ve been in the region long enough to know that one of the advantages that the Chinese economy has in terms of being a state-led economy. pharma. is the ability to change – to recognise change. “We can scale back that capacity quite a bit without affecting service and we operate three flights between Asia and Europe with basically a dozen or so flights a day connecting intraAsia through our hub in Guangzhou. while international air freight revenues fell by 17 per cent year-on-year during the third quarter. “I don’t have a crystal ball. demographic changes and of course use of technology and use of supply chain management – and I do believe that the vertical segments of healthcare. higher fuel cost.” he says. look at the history and say what the future will look like. is we’re not reducing service and that’s a function of the way we built our network.” FedEx has taken the same strategy as many on the general air cargo side and that is to reduce capacity. these figures were down seven per cent and six per cent respectively. But when you introduce significant macro economic factors of the magnitude I’m talking about I think you have a significantly different industry than the one we’ve seen in the past and that has significant implications as we go forward. We built our network so effectively there’s a redundancy in connectivity built in. LTL (less than trailer load) business. that we change when markets and the world change – that’s what successful businesses do. but in concert with that reduction in capacity what we’re not doing. Up to the beginning of this year the express carrier was operating up to 10 wide body flights a day on the transpacific. so we can take units of capacity out and not affect the transit time. “We are going to use other carriers and belly capacity and to some extent main deck capacity where it makes sense to do so. “I’ve seen our world change many times in that period and there is one constant that has made FedEx successful and that is. highest yielding products and a growing demand in what we call our deferred product which is 24-48 hours slower. ocean forwarding businesses. but customers still want the information – the tracking and tracing and the reliability that goes with it. nearand on-shoring. medical devices. but that change is going to have to be to transition toward a domestic-led economy and I think it’s going to have to be about improving the software and making it easier to do business for Chinese citizens and effectively the world. “What we’ve seen is a reduction in demand for our fastest.” He says this why the company has spent significant time and resources building out its freight forwarding capabilities. so I’m confident that is going to happen. China has faced many daunting challenges in the past and successfully navigated them.

adding the company already handles many Chinese carriers throughout its global network. Swissport is neither worried nor perturbed and might best be described as confident. In this it is helped by a number of different factors: The West to East load imbalance. whilst still there. our service offering will be compelling in all markets. Michael Mackey has the story. and increasingly. Nor is this company-wide process likely to remain static. a system which sees all scanned documents move through the same system. Carriers want a one-stop shop to facilitate their business ambitions. We remain in a growing market overall and I still believe the future is bright for air cargo and those of us that facilitate its benefits. and therefore air cargo handlers. Asia’s growth is undoubted but increasingly the talk in the market is of a modal shift from airfreight to sea freight. “I will update you. A t the moment its only Asian operations are Korea and Japan – in the former it has a base at Seoul’s Incheon airport and in Japan since November last year it has been offering cargo services at both Narita and Osaka airports. is attention to detail that might be described as astonishing. Expansion challenges “Current barriers to entry start with licensing in still duopolistic handling environments.” Attention to detail How it is doing this. “It remains a region of high growth. The strategic plan for cargo. more consumption. Sooner or later. explained Steiner. There is also Shield. or increased capacity for services such as Constant Climate. safety and quality throughout the network. There is also an initiative underway to identify suitable hardware to measure physical shipment piece volumes. Although it has cargo operations in Korea and Japan. This is to ensure that volume information can be verified upon receipt at its facilities with the attendant security and commercial benefits for our customers.” said Ruedi Steiner. Upon receipt at the destination this allows customers to immediately access lost freight information. is diminishing and the growth of Middle East passenger carriers now offer very attractive options for connectivity with good capacity. New technology. More people. The global market shows a similar pattern. “Asia is of course very high on the list of Swissport priorities.com | May 2013 . added Steiner. Given the scale of Japan’s economy and Korea’s role in air cargo and their respective import and exports needs in these markets are not inconsequential operations. This ranges from focusing on warehouse layout and infrastructure to support new products. SVP Cargo Asia and Middle East in an interview with Payload Asia.” said Steiner. a bit of a Swissport thing. but we continue to follow up all opportunities and there is a real Ruedi Steiner desire within the customer portfolio to see Swissport expand in Asia. POD details and reduces the cost of physically storing documents. such as in Cargospot. As for cargo though details are hard to come by but some changes are upcoming. That includes cargo. “The integrators also continue to increase market share in certain lanes and commodities. but huge swathes of Asia are without any Swissport presence something the ground services group is looking to end by building its profile in the region. The market is vey fluid with capacity. Market entry to China “remains a priority” said Steiner.” Open though the company is about its general intentions. We continue to raise service levels. we see another Middle East carrier adding brand new freighter capacity. increased consumption. Among the examples given by the company as working with smartphones and i-pads helps to better manage special cargo. Balancing this. but is not limited to that. Swissport Cargo Services has a fairly major blank spot on its world map. “is very simple and driven by customer demand. fleets and products constantly changing.5 million tonnes of cargo annually. according to Steiner. demand. also allow immediate access to AWB data which helps the process further. Hand held terminals. like many a business it is not particularly forthcoming about specifics. is also a part of it as it moves towards being a paperless company. but just as we see an all-cargo carrier undergo difficulties.P RO FI L E Swissport keen on Asian expansion With its formidable presence in more than 85 airports around the world and handling in excess of 3. And as for the biggest change of the lot. “The jury is still out and only time will tell. and more desire to move goods quickly. “We are looking into a replacement for Cargospot and have made good experience reducing door waiting times for our customers through an own developed software which will be deployed to other stations. He goes on to acknowledge the building up of a presence in Asia is a time-consuming process whilst pointing out what some of the specific problems are. 29 www. as soon as I have news on that. nowhere else in Asia does the Swiss ground handler have cargo operations and this is something it’s keen to remedy by promoting its high level of service standards.payloadasia.” said Steiner. although some countries simply cannot be ignored.” Balancing this there is a suggestion in the global market of a modal shift from air freight to ocean freight. such as Swissport. high output. the possible and much-discussed privatisation of Swissport.” It is for example heavily involved in fuelling and airport logistics. As such it needs air freight operations.

000 national and international flights and almost 23 million passengers. which opened in October 2012. The “Neutral Logistics Information Platform” (NLIP) is being developed to give the Dutch logistics sector a competitive advantage in Europe.” Schiphol Cargo. Ltd in association with the Air Cargo Agents Association of India (ACAAI). the global air transport IT and communications specialist.330 aircraft movements in 2011). money & resources. Rijkswaterstaat. has transformed Bogota El Dorado Airport (BOG) as part of a US$1 billion modernisation and expansion project. India is geared up to be one of the leading nations participating in the global e-cargo movement. evaluations and testing. a building systems expert. and has provided 15 new solutions in collaboration with Johnson Controls.” said Amar More. India is on the cusp of a cargo EDI revolution. airports are utilising this platform to realise significant savings in terms of time. ports and government departments to optimise supply chains.I T & E QU I P MEN T Nordisk certified by Chinese Aviation Authority Schiphol’s position as an integral element of the Netherlands’ multi-modal hub proposition. UPLIF T is India’s first cargo community platform and a pioneering initiative to connect the Multi-modal Logistics network in India. deputy head of Products Department at EASA. which will also handle domestic flights starting in July 2014. Longer-term. “The working arrangement allowed both authorities to define minimum requirements. Accepting each other’s applications for CTSO approval eliminates redundancies in inspections. Nordisk is the first manufacturer from Europe to benefit from the cost-saving collaboration between the Chinese and European airworthiness authorities since it was adopted in 2010. Promoted and co-developed by Kale Logistics Solutions Pvt.” said Markus Görnemann. Cargonaut. PAYLOAD ASIA | May 2013 SITA helps transform Bogota airport . Leading Freight Forwarders. KLM Cargo.500+ users across seven cargo hubs in UPLIFT crosses 1 million EDI message mark El Dorado International Airport is ranked among the world’s 50 busiest airports in terms of: Passenger traffic (ranked third in Latin America with 20. VRC (Port Shipping Agents) and VRTO (Port of Rotterdam Terminal Operators). logistics providers. to create a revolutionary new approach to information exchange between parties in the logistics chain. Schiphol Cargo. In the first phase of the project. cargo traffic (ranked first in Latin America (33rd worldwide) with 648. Says Schiphol Cargo senior VP Enno Osinga: “We are very pleased to be a partner in this exciting and groundbreaking initiative. Originators of information will control who has access to it and when. “Industry participants are already realising the benefits of visibility across the supply chain. In 2012. Strategic Platform Logistics.427. EVO (Dutch Shippers’ Council). We strongly support any move to drive inefficiencies from the supply chain. UPLIFT is India’s first and only multi modal cargo community system (CCS). a subsidiary of AAR Corp.” Nordisk Aviation Pro ducts . and the NLIP’s goals exactly match our own. SITA provided the technology for the new international terminal (T2). This platform is revolutionising the way cargo information is exchanged by the Indian cargo community. “With UPLIFT.   SITA.221 tonnes in 2011). India and shipment filing to more than 450 destinations globally. preserving safety and environmental compatibility. Dutch Customs. and traffic movements (ranked second in Latin America (45th worldwide) with 304. this platform is helping Indian logistics players become compliant with global e-freight initiatives. Portbase. the Dutch Ministry of Economic Affairs. Currently UPLIFT is connecting 30 per cent of Indian FF/CHAs electronically with 10 leading carriers (representing over 65 per cent of India’s air freight market) and Indian Customs. Custom House Agents. Carriers. KLM Cargo and Air Cargo Netherlands are among the signatories to a covenant by a broad spectrum of Dutch business and government. El Dorado International Airport is Latin America’s largest airport in terms of cargo movements and its third largest in terms of passenger traffic. In the short term. a more predictable shipment status and far more secure cargo movement. acknowledge existing systems on each side and avoid duplication of work. This platform will form the foundation of India’s National Single Window for electronic transactions which is emerging as a key requirement from World Trade Organisation. VP Kale Logistics Solutions.” There are sixteen signatories to the covenant: Air Cargo Netherlands. “We are pleased by the fact that UPLIFT has seen the fastest adoption compared to any of the CCSs worldwide.603 passengers in 2011). Fenex (For warders Association). has received Chinese technical standard order (CTSO) approval on several of its products through a working arrangement between the Civil Aviation Administration­ of China (CAAC) and the European Aviation Safety Agency (EASA). The aim of NLIP is to assist shippers. TLN (Transport & Logistics. Cargonaut. NLIP will further strengthen 30 Schiphol partners sign info sharing deal  India’s UPLIFT – Universal Platform for Logistics & Integrated Freight Transport – has successfully transmitted one million EDI messages within a short span of two years. reduce administration and work more efficiently. With 2. the airport handled nearly 310. NLIP will enable all supply chain partners to input information once. the company that manages the airport. the Port of Amsterdam. The only e-freight application from India recognised by International Air Transport Association (IATA) and has an in principal global arrangement providing connectivity to 114 carriers. Work is currently underway to extend the terminal. we hope our logistics model will set an example globally. for Operadora Aeroportuaria Internacional (OPAIN). We are confident that UPLIFT will contribute in lowering the logistics transaction costs in India and increasing India’s EXIM competitiveness. and contribute to a healthier future for the entire industry. SITA is the master systems integrator for the project. “This process is a roadmap of how industry can get the necessary approvals from the overseas authority to gain access to its market. and then share it throughout the entire chain. the Port of Rotterdam. the Netherlands).

payloadasia.com Gold Sponsor Organiser Supporting Tradeshow Audit Partner Supporting Publication .tan@contineomedia.Celebrating Excellence in the Air Cargo Industry Award Categories      Overall carrier of the year      Rising star carrier of the year      Combination carrier of the year      Maindeck/Specialist carrier of the year      Airport of the year      Ground handler of the year      ACMI/Charter operator of the year      Global express operator of the year      Regional express operator of the year      Global logistics provider of the year      Regional logistics provider of the year      Global freight forwarder of the year      Regional freight forwarder of the year      IT provider of the year      Charter broker of the year      GSA/GSSA of the year      Corporate social responsibility Award Editor’s Choice Awards      Lifetime achievement award      Personality of the year      Marketing award of the year      Media award of the year Date: 17th Oct 2013 Venue: Pan Pacific Singapore Please contact your Payload Asia sales representative for more information: Yullie Tan. Account Manager.com http://awards. Tel: +65 6521 9749 | Email: yullie.

not just from the rest of the world. Normally. economist at Ti. pointing to the volatility around the Euro crisis as a continuing threat. Forwarders’ volumes continue below expectations F ollowing five consecutive monthly increases. The remaining 11 per cent were ‘unsure’. One of the most remarkable aspects of 2012. Union (EU). The WTO said that it expected a “partial return toward the usual ratio”. while China and much of the developing world saw strong growth – although the declines in commodity prices may be a indication of harder times ahead for the latter group. denoting expansion. the WTO is not very optimistic in its predictions for world trade growth this year. This fall in economic activity had a disproportionate effect on world trade. the index remained above the significant 50 mark. to put it mildly.0 index points to 51. However. anticipating an expansion of only 3. And it represented a major reduction as compared to the 5. survey participants whether they are experiencing an increase in greater opportunities within domestic markets and intra-regional trade compared with inter-continental trade. world trade grows at twice the rate of world GDP. Indeed. a look at the present situation reveals that both air and sea freight volumes are below those expected relative to the time of year. attributed to difficulties regarding its trade links with China which resulted in an 11 per cent decline in exports during the second half of the year. with world trade growing by only two per cent. PAYLOAD ASIA | May 2013 32 . according to the WTO report. with the index at 58. the index for air freight was 2. far below the average figure of six per cent for the last twenty years. It appears that the relationship between world trade and the underlying world gross domestic product (GDP) has changed.2 per cent growth seen in 2011. Since the Index’s inception over a year ago. the outlook for the next six months has remained very optimistic with respondents consistently anticipating positive volume growth.7 points lower compared with the same month last year.4 points higher in April 2013 compared with April 2012. while 37 per cent had not. Despite the decline. In this month’s one off question. it has been the Eurocurrency countries in particular that have driven down the rate of growth. However. although very slowly. with world trade still expected to be less than the usual multiple of world GDP growth by 2014. Meanwhile.0 for the month of April indicating an even greater decline relative to the volumes expected for the time of year. however. Lucy Palmer. In terms of year-on-year comparisons.2 points to 42. * Source: WTO Secretariat. * Figures for 2013 and 2014 are projections. the two grew at roughly the same rate. Japan also saw significant volatility in 2012.4. not a good year for world trade. In the nearer term. explained: “Following an encouraging start to 2013. it appears that confidence has since begun to waver.economi c ou t lo o k Structure of world trade changed in 2012: WTO T he year 2012 was. we are yet to see any sign of this increase and as a result positivity for the outlook has declined”. Although the index for sea freight remained virtually flat at 47. Imports to the EU fell by five per cent in 2012. but also due to the scale of trade between European economies. the overall Stifel Logistics Confidence Index fell 1. due to a decline in imports to the European World trade versus GDP growth * Growth in volume of world merchandise trade and GDP. 2005-2014. it fell 1. After the shut down for the Chinese New Year. In contrast the sea freight index was 1. according to a report from the World Trade Organisation (WTO). the second quarter of the year generally records an improvement in volumes. according to the WTO report. rather than exports. Last year. The index for current air freight volumes fell 1.5 in April. Although this trend continued in April. both due the size of Europe economically. The organisation is even uncertain about this prediction.1 points from March). Over half of respondents (52 per cent) indicated that they had experienced such a change in opportunities. for the third consecutive month.4 in April (down 0. but also between EU economies. In fact it was quite simply bad.3 points which suggests respondents are perhaps becoming less confident in a market revival taking place any time soon. was the change in the structure of the growth of world trade. it still indicates a decline in volumes. according to the WTO. The US continued to see reasonable export growth for most of the year.3 per cent.

www. ABN AMRO is maintaining its forecast of eight per cent growth. according to US Commerce department statistics.” owever. the report expects regional growth to mildly accelerate this year gaining further momentum in 2014.” the investment bank said. For emerging Europe. And for Sub Sahara Africa.1 per cent decline in January from December. down from 7. While US total retail sales will likely continue to be sluggish throughout 2013 as the economy continues to grow at a slow pace. we expect only a limited number of upgrades among the emerging countries in the coming two years. as increasing signs emerge that the US economy is shaking off the effects of the fiscal drag and growth in emerging markets is firming. e-commerce sales constituted 5. Financial markets will continue to be driven by the prospect of stronger growth later this year and in 2014. when cyclical tailwinds will convincingly offset fiscal headwinds. To remain competitive.4 per cent for the fourth quarter.7 per cent y-o-y.economi c ou t lo o k Economic recovery seeds sown: ABN AMRO ccording to an 18 April ‘Global Macro View’ research report by ABN AMRO. This follows a 1. “Despite a more favourable economic climate. the biggest decline in nine months. monetar y stimulus continues at an aggressive pace with the balance sheets of the G4 central banks having reached US$9 trillion and signals from the US Federal Reserve and evolving monetary policy at the Bank of Japan signal that further easing lies ahead. it said. facilitated by the ease of using mobile devices such as smartphones and tablets.” But the Eurozone economy will lag behind in this process as domestic demand suffers from bank deleveraging and rising unemployment.9 per cent. said TI. Amazon and Walmart.0 per cent increase in February from January and a 0. e-commerce will likely grab an increasing percentage of retail sales as consumers look to compare prices. it added. buy goods 24/7 and learn to demand same day delivery services. electronics retailers and sporting goods outlets all reported lower sales with a number of major retailers including Target. The figures are likely to be impacted by the Chinese New Year. although “the region is far from an oasis of peace and calm. The good news is that 2013 will likely mark the peak in terms of the pace of budget cuts. The trend is expected to continue as retailers continue to invest in multichannel activities. which increased from the first quarter 2012 figure of 4. it noted. private sector balance sheet repair is advanced in the industrialised economies. Internet giant Google also recently launched its same day delivery service to compete against existing services from Ebay.9 per cent in the last quarter of 2012.” Meanwhile. Family Dollar and Nordstrom’s issuing profit warnings for first quarter.4 per cent from third quarter and 15. not least driven by China’s insatiable hunger for commodities. China is showing somewhat stronger dynamics with the bank expecting GDP growth in the region to remain above six per cent in 2013 and 2014.com | May 2013 H E-commerce takes bite out of US retail sales E-commerce logistics solutions are also ramping up to meet this changing consumer buying behaviour. Department stores.6 per cent from fourth quarter 2011. . Emerging markets On emerging markets the report noted that once again 2012 saw improvements in the credit ratings of many emerging countries. e-commerce sales have been moving in the opposite direction as consumers increasingly compare prices. despite the bailout of Cyprus. retailers are utilising stores as fulfillment options. while same day delivery services continue to expand despite some reports suggesting consumers are not interested in such a service. according to ABN AMRO. As an overall percentage of total retail sales. We expect a slight pickup of economic activity in the coming months. rising 7.4 per cent from February. But while brick and mortar sales have been on the decline. while domestic demand in the big emerging markets will benefit from easing financial conditions. In addition. “The seeds are being sown for an economic recovery. while those of industrial countries deteriorated further. India’s economy is still failing to pick up. March retail sales declined 0. Industrial production. “Together with the improvements that are taking place A in the private sector. that aggressive fiscal consolidation means that the improvement in global economic conditions will not be very significant this year. a look at the present situation revUS retail sales tumbled in March ending a disappointing first quarter for many retailers. TI said citing the example of Macy’s plans announced in February to expand online fulfillment from 292 stores to 500 by end of 2013. the report describes it as a region on the rise. China’s first quarter GDP growth was somewhat softer than expected. while South Korea is facing many challenges for a swift recovery. it has witnessed a growth spurt in the past ten years. The bank noted however. the makings of an economic recovery are becoming clearer. where protracted Eurozone weakness impacted growth throughout 2012. adding that “systemic risks to the financial system and the global economy have declined notably. 33 While data for the first quarter will not be available until sometime in May. this means that the foundations are being set for above-trend global growth in 2014. strengthening labour markets and infrastructure investment.” Asian economies have been showing a mixed picture and there are increasing downside risks for the region. the US Commerce department’s fourth quarter e-commerce report published in February shows e-commerce sales growing 1.payloadasia. on the back of a modest global recovery and stronger credit growth in China in the first half of the year. which accounts for 40 per cent of GDP was the main factor behind the slowdown. the report said.

” Indeed as Nick Rhodes. or we’ll see a significant amount of capacity removed from the market – either a combination carrier deciding freighters are not for them. but that a market correction – possibly with casualties – is inevitable. Similarly on the freighter side. “is what’s the next industry. many legacy carriers – AF-KLM group included – are applying “very strict capacity management” to cope with the downturn. the next thing that’s going to drive air cargo. the capacity that you’ve added especially if it’s a daily flight. “Therefore despite the economic improvements that we are expecting over the next year we do believe there will still be over-capacity in the market. global airfreight director at Toll Global Forwarding noted that aside from the macro-economic factors at work. with cargo being pushed out of traditional air cargo into either the express sector. is a hidden freighter you’ve thrown on that route.FREIGHTER Supplement FREIGHTER Supplement Freighters: Going the way of the dinosaurs? With ongoing global economic lethargy causing continued stagnation in air cargo markets and new capacity mostly in the form of passenger bellies. But a recent industry panel comprised of key executives from all-cargo carriers. many have questioned the long term viability of freighters. The question then he says. continuously being added. “We’re clearly seeing modal shift into ocean and we’re actually seeing that accelerate over the last 10 months. “Something needs to change if we are to continue PAYLOAD ASIA | May 2013 A s Robert Kunen. While people now often own multiple cell phones. This type of capacity expansion is largely unintended and the result of forward planning four or five years earlier Mahjoubian adds. primarily wide-body freighters with such high belly capacity they’ve been called ‘hidden’ or ‘invisible’ freighters. the new passenger aircraft are almost like the old Combis – “you can get almost 25 tonnes on a B777 or A350 in the future. here they come now!” A great deal of this widebody passenger belly capacity is coming from the Middle East carriers who have made record aircraft orders to support their surging passenger business. “You ordered those B747-8Fs five years ago and oh boy. You’ve got a huge space. “When you take an old B747 passenger aircraft off a route and you throw on a brand new B777-300ER. because the bellies are of course a shared cost with our colleagues on the passenger side.” he says. director of cargo at Cathay Pacific points out. Speaking from a freight forwarding perspective. “Either we’ll see increasing demand because the next thing will happen.” On the demand side he feels the industry is caught in what he describes as an ‘innovation gap’. or into ocean freight. combination carriers and a freight forwarder. at the end of the day “it’s still adding cargo capacity. I don’t see it coming. This generally means either reducing freighter services.” “Hopefully we will see a correction somewhere. or an all cargo carrier exiting the business. Corey Mahjoubian. just based on the supply and demand situation we find ourselves in.” Also on the demand side the global economic situation is driving modal shift. And crucially. unanimously agreed freighters are here to stay. “we know that it’s going to be a challenge.” he adds.” He notes however that not all carriers are doing this and freighter capacity is still being added. KLM and Martinair Cargo notes. computers and flat panel televisions. these consumer electronics have nearly become disposable items. Donald Urquhart reports from Hong Kong. you buy the aircraft and you’ve got to use the space. which is an advantage for us.” Agreeing with this sentiment Cathay’s Rhodes highlights the extreme difficulty in making a return on assets in the current market. “We are reducing our exposure to the downturn by focusing more on belly capacity than freighters.” he adds.” he says. director Hong Kong & Southern China for Air France. on supply side there is the massive influx of aircraft. But as Mahjoubian notes. or parking them – either on the tarmac or in the desert. 34 .

00 15. Paradigm shift? For AF-KLM’s Kunen the rising tide of belly capacity resulting from the surging new widebody fleet is “definitely creating less of a need to have freighters in addition to belly nt eve 3 1 ! 20 pen capacity for a combination carrier. AirBridgeCargo. he says.V.payloadasia.” says another maindeck the w o ing ion no c n t nou tra An egis R EVA INTERNATIONAL MEDIA LTD AVIATION PUBLISHERS & EVENTS SPECIALISTS HOSTED BY CONFERENCE DAY ONE 08. If a carrier decides it needs two or three freighters then it needs to ask the question whether to use ACMI because it may be more economical to use a contract provider.00 FINAL WORDS FROM THE CHAIRMAN 13.00 QUALITY. “But .” In agreement. not just because I represent one. but I’m 30 years in the business and all-cargo carriers design schedules as per customer’s requirements. “I still do see the need for all-cargo carriers. “We will be combination carrier for the long term.30 BREAK FOR REFRESHMENTS AND VIEWING OF EXHIBITION 11. “The priority for a combination carrier is you’ve always got to fill the belly if you can and then you make your freighter schedule around that.15 SYSTEMS UPDATE 15. should this be necessary.00 12.45 BREAK FOR REFRESHMENTS AND VIEWING OF EXHIBITION 16.00 A HEALTHY COOL CHAIN 10. STANDARDS AND STANDARDISATION 15.15 BRIGHT SPOTS AROUND THE WORLD 12.45 BREAK FOR LUNCH AND VIEWING OF EXHIBITION 14. but in the longer term I’m more optimistic. operating an all maindeck fleet offers the ability to offer more tailored services that offer better scheduling for customers. not because of the passenger side. he says.15 COAG: ONE YEAR ON 10.” he says. This is something that has to have value in the future. as a belly-only cargo carrier. I also think that during this sustained downturn there will be casualties.45 16.15 12. www.00 09. but we are evaluating how many freighters we need and whether we want to own them. We design schedules that fit into the supply chains of our customers. Our projections are a little more conservative in 2013 than they were in 2010 [when Cathay placed it original B777F orders].15 COAG REVIEW 13.30 AIRLINES: WHAT ARE AIRLINES DOING TO FURTHER IMPROVE AIR CARGO HANDLING QUALITY AND EFFICIENCY? 10. “Different horses for different courses.00 10.” As a combination carrier there is always a role for a freighter. REALLY WANT 12. On the other hand if it needs 10 or 20 freighters then it might be better to own them. executive VP.00 REGISTRATION AND WELCOMING COFFEE OPENING REMARKS FROM THE CHAIRMAN COAG: ONE YEAR ON THE WEAKEST LINK BREAK FOR REFRESHMENTS AND VIEWING OF EXHIBITION MANAGING EMERGING MARKETS VISIBLY BETTER BREAK FOR LUNCH AND VIEWING OF EXHIBITION RESPONDING TO MODAL SHIFT FOOD FOR THOUGHT BREAK FOR REFRESHMENTS MOVING FORWARD CLOSING WORDS FROM THE CHAIRMAN END OF CONFERENCE To register at both events visit: http://evaint.15 10.com/our-events/air-cargo-handling-conference-2013 http://evaint. I think there will be a correction.” But he adds the need is still there and in the longer term he doesn’t think many combination carriers will go to the model that Delta and other carriers like United have adopted.” he says.45 14.00 GALA DINNER CONFERENCE DAY TWO 09.00 WHAT THEY REALLY. Portugal To be chaired by Chris Notter VP Cargo Operations Of Qatar Airways PHARMACEUTICALS IN THE COOL CHAIN CONFERENCE 25th September 2013 CONFERENCE DAY ONE 08.45 17.15 OPENING REMARKS FROM THE CHAIRMAN WORKING GROUP SESSIONS 09.15 LUNCH – CLOSE OF CONFERENCE nted rese tion p y onl ocia day in Ass e n a o for ol Ch And the Co by To be chaired by Sebastiaan Scholte. what of the all-cargo carriers that don’t have the flexibility and economic advantages of marginal cost belly capacity. So I think indeed there will be a new balance.15 16. “Combination carriers like Cathay have to look very carefully at the number of freighters we operate on top of the passenger bellies. which is the forwarding community.15 CRISIS? WHAT CRISIS? 17. and Chairman of CCA 25th-27th September Tivoli Lisboa Hotel.00 CARGO HANDLERS: WHAT ARE HANDLERS DOING TO IMPROVE AIR CARGO HANDLING QUALITY AND EFFICIENCY? 11.00 REGISTRATION OPENS 09.” he affirms.com MEDIA SPONSORS EVA International Media Ltd reserves the right to make changes to the speakers or programme. Some capacity will come out of the market – it has to happen and that will be freighters.45 BREAK FOR REFRESHMENTS AND VIEWING OF EXHIBITION 11. but I don’t think the freighters will go away. “It can work but not everybody is in a position to have enough belly hold capacity to be offering the whole range of products to customers. without prior notification.00 WORKSHOP WRAP-UP 12. CEO of Jan Der Rijk B.com/our-events/cool-chain-pharmaceuticals-in-the-cool-chain To sponsor events telephone + 44 (0) 208 668 9118 Or email Rosa Bellanca at rosa@evaint.00 09. But while freighters may have a secure place in the air cargo industry going forward. For Wolfgang Meier.00 END OF DAY ONE 19.com or Bhavi Atul at bhavi@evaint. “The only option is to park freighters and sit it out – it is a tough market in the short term. it’s cyclical and air cargo companies will lead the rebound.00 CHAIRMAN’S OPENING REMARKS 09.45 11.” he adds.15 15.00 SHIPPERS & FORWARDERS: WHAT ARE SHIPPERS AND FORWARDERS DOING TO IMPROVE THE AIR CARGO HANDLING CHAIN? 10.30 AIRPORTS: WHAT ARE AIRPORTS DOING TO IMPROVE AIR CARGO HANDLING QUALITY AND EFFICIENCY? 12.com | May 2013 35 . Rhodes highlights the traditional model for combination carriers.FREIGHTER Supplement – I am optimistic in the long term that economies will come back.

Looking at the different categories he says the integrators are here to stay. ircraft feedstock is increasing by the minute and you’re going to see seismic levels of airplanes being delivered out of the legacy carriers now that the B737-800NGs and 900NGs are being delivered at record levels. Florida and only last month a new agreement with Goodyear. Precision also has its main facility – Flightstar Aircraft Services . but we don’t and that’s just a sign of the times. Feedstock is now getting abundant and affordable feedstock has everything to do with the level of interest we get.” Aside from its relationship with TAECO.” he concedes. The belly only carriers I think obviously most are here more by default than by design. Precision won a contract last year from SF Express for half a dozen passengerto-freighter conversions of 757-200s to 15-pallet PCF configuration. Arizona based AeroTurbine Inc. but the big issue is it will then turn and flip over to not enough slots. a different customer that needs maindeck. While it may still be a bit premature to break open the champagne. but its been a tough few years. VP sales & marketing Asia Pacific at Polar Air Cargo.” said Brian McCarthy VP. particularly with people shopping online.” “We’ve got 300 plus aircraft that are candidates as we look forward.FREIGHTER Supplement proponent. By Donald Urquhart. which McCarthy says “will open a few doors for us because only the newest. PAYLOAD ASIA | May 2013 “A The Precision Conversions 757-200PCC Combi configuration incorporates 10 full pallets and  43 passengers seats (up to 54 passengers with current configuration).” he says. Currently Precision is finishing up a combi and starting up another conversion on 20 May. the difference says McCarthy “is now we’ve got people making inquiries and actually out purchasing aircraft. “ACMI is a very robust model for people who want to contract more capacity. with all of the modification work to be done at TAECO’s Xiamen facility.” He notes the customer base is expanding as well with a new breed of cargo operator that is emerging out of logistics providers. “the guys who have ground components but are taking to the air. the conversion market for Precision Conversions’ niche area of B757-200 passenger to freighter and passenger to combi looks finally set to turn.located in Jacksonville. “so not nearly as many airplanes as I would like to see – we should have three airplanes up right now.” he said adding that Precision has been stocking up on conversion kits to ready itself for such a situation. But Rhodes is not entirely convinced. All cargo operators will be more challenging – it’s a question of whether they can fill special need like heavy lift etc. and combination carriers of course will be here in the future – it’s just a question of how many freighters you need to supplement the belly. “Very simply there is a different customer that will use belly. that’s Shenzhen-based SF Express awarded Precision with a contract last year for half a dozen passenger-tofreighter conversions of 757-200s to 15-pallet PCF configuration.” like China’s rising star. And the timing couldn’t be better – record levels of feedstock are beginning to flow.” she says.” Currently there are over 100 aircraft on the market now – coming out of US legacy carriers like United and others. including replacements and additions and we’re getting inquiries from new customers. marketing and sales at Precision. all that are well within age restrictions and age brackets that we’re looking for – low cycle airplanes that are 1992-2004 type of airplanes and so we’ve got a good feedstock base. so I would say I’m encouraged. “Our biggest concern is we’ve got a ton of feedstock and it looks like its going to meet demand. Kersti Krepp. Shenzhen-based SF Express. At end of the day 60 per cent of all cargo rides on all-cargo aircraft. youngest aircraft have winglets. with all of the modification work to be done at TAECO’s Xiamen facility. “but we think we can meet and respond with enough MRO capacity and kits until we can get back up to speed and produce what is probably going to be 10 or 11 airplanes a year.” B757 feedstock for conversions hits sweetspot After a long hard winter that’s lasted for a few years. MRO Facility for conversion and MRO work. “We can easily count a potential 50 or 60 airplane orders without even trying – from the various customers. 36 . “But we are getting far more inquiries now than we’ve ever gotten. Precision also received certification for 757-200PCF conversions on winglet equipped aircraft. just the way it went. so that’s helping a lot. so there is a future for all cargo.

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chief aircraft trader for Kahala said that among the company’s decision to convert with AEI was its reputation for quality and customer support and AEI’s B737400SF having the capability to carry up to 10 full height AAA containers. Alabama as its fourth AEI Authorized Conversion Center (AACC). Inc. a joint venture of Boeing. The company. AEI also announced that it has been selected by Kahala Aviation of Ireland to provide two firm B737-400SF 11 Pallet Configuration conversions.s u p e r v i s e d restructuring in 2012 completed nine conversions last year.” he said. Flightstar Aircraft Services.FREIGHTER Supplement Pemco to double B737-300 P2Fs emco World Air Services has said it will likely double its P2F freighter conversion of Boeing 737-300 and -400 aircraft and soon will announce a programme for a new 737 variant. After the completion of the twelve million dollar construction renovation. The conversion of these two aircraft are the first passengerto-freighter conversions done at Boeing Shanghai Aviation Services. said Commercial Jet 38 Kenya Airways recently took redelivery of the first of two B737-300F P2F conversions from Aeronautical Engineers Inc. an ex AirOne high gross weight B737-400 was built in 1991 and underwent freighter modification at AEI’s Authorized Conversion Center. The first aircraft. A little more than half of the 2013 conversions will be B737-300s with about two-thirds of those being P Kevin Casey full conversions to freighters and the rest will be combi-freighters. with Casey saying the company expects to complete 1620 this year. repair and overhaul business. located in Miami.000 square-foot facility at the Dothan Regional Airport (DHN) in Dale County.” he said. The storage and retirement of B737 Classics increased by nearly 25 per cent in 2012. The aircraft. Commercial Jet’s Alabama facility will initially open three production lines capable of converting 12 AEI 737SF and MD80SF aircraft annually with the first three B-400’s expected to enter into conversion in the 2nd quarter of 2013. Several factors are contributing to this year’s increase in conversions. president of the Tampa. Florida based conversion and maintenance company. which will be open for business in the 2nd quarter of this year. with options for two additional conversions to be started in May of 2013. “We are already getting a flow of new orders for our new facility.” John Schildroth.. or quickchange aircraft. (AEI).B737400SF and MD80SF Passenger to Freighter Conversions and Maintenance for AEI customers. Based on the plans for 2014. “CJ’s facility in Alabama will benefit from CJ’s Miami conversion experience and be able to tap into a local work force that is traditionally strong in aircraft structures and MRO. based in Jacksonville Florida and Boeing Shanghai Aviation Services based in Shanghai China. Both B737-400SF conversions are being converted on spec and are currently available for lease. Inc. Commercial Jet. which most likely will involve expanding its capacity in Tampa. The order by Kahala follows closely from a similar order for one B737400SF 11 Pallet Configuration Freighter Conversion from Sideral Air Cargo of Brasil. VP and GM for the Dothan facility. or the “immediate vicinity. . Inc. Mark Thatcher.” said Robert T. both of which “will without a doubt give us an advantage when marketing our AEI 737-400SF fleet. CJ’s Alabama facility. which underwent a b a n k r u p tc y co u r t. capacity would reach 24 AEI 737SF & MD80SF conversions per year. Meanwhile.” The company is discussing that option with the local airport authority and some state officials. The Alabama facility joins a growing number of AEI Authorized Conversion Centers which include Commercial Jet’s Florida facility based in Miami Florida. according to Kevin Casey. Shanghai Airport Authority and China Eastern Airlines. has announced that it has selected Commercial Jet’s (CJ’s) new 400. he added. high fuel costs and aircraft age restrictions. according to Casey. “It was critical that we secure another Authorized Conversion Center to keep up with ever increasing market demand. with its planned six conversion lines will become the largest passenger to freighter conversion facility in the world. a B737-400 was built in 1991 and will be converted at one of AEI’s North American Conversion Facilities. Commercial Jet’s Alabama facility will provide B737-300SF. The freighter was flown to back to Brasil in late March and is now the only B737-400SF operating in Brasil. Casey says Pemco is also looking for ways to grow its maintenance. Convey. A AEI selects fourth conversion centre plans to hire several hundred trained and experienced aircraft technicians in the local market within the next few years. including low acquisition costs on the aircraft. VP sales & marketing for AEI. PAYLOAD ASIA | May 2013 eronautical Engineers.

.737 conversions. Call +1-813-322-9622 to speak with Mr. George Fedeanis or visit PEMCOAir. 0 comparisons. And the first company you should call to spec out your next project . With more than 300 tailored cargo conversions – including 100 Boeing 737-300 and 737-400 – we are the world’s most experienced independent aircraft conversion company. P E M C O D E L I V E R S.com for additional information.

we thought we would share our thoughts so that the clever engineering types up in Seattle can incorporate our feedback into their final decision. Wait a minute! Oops. bilum has created a collection of travel cases made from recycled life vests! How cool is that we ask you!?! Essentially those life vests under the seats in the aircraft – you would know what we are talking about if only you had paid attention to the onboard safety demonstration – have a limited life span (about 7-10 years Google tells us). is a traditional string bag made by hand in Papua New Guinea. The other Bilum is a French company (that clearly had no reservations about appropriating a traditional cultural reference) that makes bags and accessories using recycled materials like heavy outdoor advertising banners and car seat belts etc. Air France turned to bilum to give them a new lease on life. Air France. With Boeing set to announce in the near future the next variants of the popular 777. Origami airplanes. photo of the prototype 777X (it will be a bit bigger than the prototype pictured above however. but the very idea of a wing that folds in half just doesn’t seem like a great idea – what if it decides to fold up. we tend towards the cynical around here. burned or destroyed in some unpleasant manner and ‘ethical’ because they are made in special centres around Paris by disabled individuals or individuals with social problems in a bid to provide them employment and enable self-sufficiency. we do love the idea and they are pretty cool – each one nearly unique because they are all cut from the life vests differently. or products into new objects of a higher value”. Bilum describes its products as “eco-ethical fashion”… ‘eco’ because it involves recycling materials that would be otherwise thrown away. as the Belly Achers do. but we suspect it involves complimentary swag. we are proud to bring you an EXCLUSIVE. not ‘recycling’ – “transforming redundant recyclable materials. dubbed for now the 777X. freebies and other bribe-a-licious goodies). we love this clever idea – both for its creativity and its environmental friendliness. inserted into equally nice white envelopes and mailed to us (good job FedOops!) – touting the impeccable green credentials of the particular company in question…but this one caught our attention from a slow day in the office trolling the net. The proper way to exit an aircraft (and not spill your drink). even we are impressed with that bit of PR spin! And at €19 for the flat case and €24 for the padded case. we will try to give a simple explanation of what Boeing is likely planning for the next iteration of the 777. It must be said. we have to stop extolling the virtues of this before we get the urge to run out and volunteer or something! Basically. especially in terms of the reams of press releases – some of them printed on nice bleached white paper. Of course possessing advanced aeronautical engineering degrees. never seen before. wrong Google definition. we would certainly agree about the ‘UP’ part of the equation. And rather than destroy them. in order to actually seat more than just the pilot). And ok… it’s really only 2-3 metres of the wing that folds. Fear not as those same clever engineering types have come up with a seemingly simple solution – actually they came up with it in 1995 but for some reason never actually implemented it – folding wings! We don’t know about you.Belly A c he So what are we rambling on about? In essence it is a tie-up between Air France and bilum – which in case you don’t know (and neither did we until we Googled it). Remember. But still. we give you a 9 out of 10 on the Belly Ache respect scale (we’re not quite sure what it takes to get a 10. And it comes courtesy of Air France – who could really use a bit of extra income right about now. here at Belly Ache Central. Actually. Wow. but still! And as the keen news hounds that we are. you saw it here first! PAYLOAD ASIA | May 2013 40 . Now after that sales pitch we’ll be watching the post box everyday for our own little bit of swag… if ya know what we mean…*wink wink. Bilum refers to this as ‘upcycling’. nudge!* This one is for all you ‘green’ fashionistas out there. They are going to take the current model 777 and S-T-R-E-T-C-H it! Brilliant aren’t we? But there’s the rub: The plane will naturally need larger wings and these oversized wings will be a problem for existing airport infrastructure. flap or break off in the middle of a flight (we’re guessing you don’t believe our aeronautical engineering credentials now). While certainly great stuff. nudge.

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