CROSS POLLINATION ASIAN DEMAND FOR LATIN AMERICAN GOODS STRENGTHENS TRANS-PACIFIC LANES - Air Cargo World
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THE SOURCE FOR AIRFREIGHT LOGISTICS
International Edition • AirCargoWorld.com • April 2015
CROSS POLLINATION
ASIAN DEMAND FOR LATIN AMERICAN GOODS CANADA’S OVERNIGHT
STRENGTHENS TRANS-PACIFIC LANES WONDER
p.30
p.24
SHINING STARS:
THE 2015 ACE AWARDS
p.36Contents
Volume 18 • Number 3 • April 2015
CROSS POLLINATION
ASIAN DEMAND FOR LATIN AMERICAN GOODS STRENGTHENS TRANS-PACIFIC LANES
24
News Inside: CANADA’S OVERNIGHT WONDER
6 UpFront
A tribute to Boeing’s Joe Sutter; saving endangered
parrots; lingerie shortage averted (whew!) and more.
10 Asia
What’s behind the Japan Post and Kintetsu
logistics acquisitions?
14 Europe
Why did things go so wrong, so quickly at Air France-KLM?
CAN CARGOJET’S CANADA POST EXPRESS
CONTRACT BE A WIN FOR ALL PARTIES? 30
18 Africa & Middle East
Airports in Europe and South Africa sign historic
development agreement
20 Americas
SHINING
4
Outlook stormy as the open skies debate rages in the U.S.
Departments
Editorial
STARS
RECOGNIZING LEADERS IN
8 Cargo Chat: Jan Krems
36
22 People LOGISTICS AT THE 2015 AIR
42
43
Bottom Line
Marketplace
CARGO EXCELLENCE AWARDS
44 Forwarders’ Forum
45 Events / Advertiser’s Index
46 The Manifest by Ned Laird
Air Cargo World (USPS 364-590) (ISSN 1933-1614) is published monthly (except December and January are combined) and owned by Royal Media. Air Cargo World is located at 1080 Holcomb Bridge Rd., Suite 255, Roswell, GA
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POSTMASTER: Send address changes to Air Cargo World, 80 Broad Street, Suite 1701, New York, NY 10004. ACW APRIL 2015 3Editor’s Note
Air cargo’s butterfly effect
THE SOURCE FOR AIRFREIGHT LOGISTICS Is it really true what they say about the flap of a but-
SENIOR EDITOR
David Harris terfly’s wings on one side of the planet causing a hurricane
dharris@royalmedia.com on the other? Sounds remotely possible in theory, but cer-
EDITOR tainly not very likely, right?
Randy Woods
rwoods@aircargoworld.com • (206)-801-8478 The theory in question is actually “chaos theory,” which
ASSOCIATE EDITOR is a branch of mathematics focusing on the behavior of
Linda Ball systems that are highly sensitive to initial conditions.
lball@aircargoworld.com • (206)-237-0799
Minute differences at the start of a complex system, the
SPECIAL CORRESPONDENT
Martin Roebuck theory goes, can yield widely diverging final outcomes. In
CONTRIBUTING EDITORS
other words, what may seem insignificant at the start may Randy Woods
Roger Turney, Ian Putzger end up having profound effects down the road.
COLUMNISTS Consider, for instance, trade between Latin America and Asia, our cover story
Doug Brittin
Brandon Fried this month (page 24). If you’re a shipper of perishable produce like asparagus, one
Ned Laird quick glance at the vast ocean between you and the equally vast Chinese market
gives the first impression that airfreight between these distant markets would be pro-
PUBLISHER
JJ Hornblass
hibitively expensive.
hornblass@royalmedia.com
But when you look at the growth of air hubs such as Viracopos in São Paulo, El Do-
VP OPERATIONS rado in Bogotá, and Miami in the United States, you can see how it’s not too difficult
Molly Stewart
to send feeder flights to the U.S. or Europe, consolidate shipments and tie into the ro-
EDITORIAL DIRECTOR
Phil Ryan bust northern trans-Pacific trade corridors. Then, when you factor in the growing ap-
CREATIVE DIRECTOR petite in Asian markets for exotic perishable goods from South America, the distance
Alex Kwanten traveled becomes less of an issue. Eventually those insect wings don’t seem so tiny.
akwanten@royalmedia.com
ASSOCIATE DESIGNER We also address the new Canada Post/Purolator contract won last year by Cargojet
Adnan Jusupovic and starting officially this month. Looking back at the fleet situation at the start of
2014 for general cargo carrier Cargojet and the previous contract-holder, Kelowna
CIRCULATION Flightcraft, a casual observer may have predicted disaster. How could Cargojet pos-
circulation@royalmedia.com
sibly double its capacity in one year? How could Kelowna possibly survive as a carrier
AIR CARGO WORLD HEADQUARTERS
1080 Holcomb Bridge Rd., Roswell Summit
after losing its main express customer? As you’ll see in our feature on page 30, the
Building 200, Suite 255, Roswell, GA 30076 outcomes for both carriers – and for the Canadian forwarding community – may seem
(770) 642-9170 • Fax: (770) 642-9982 a lot brighter given the preparations made over the previous 13 months.
WORLDWIDE SALES
U.S. Sales & Emerging Markets While it might be easy, even prudent, to make snap judgments about small-but-
Sales Director growing niche markets or risky business plan overhauls based on broad, historic
Tim Lord
tlord@aircargoworld.com • +1 678 775-3565 trends, it’s also important to keep track of the smaller details – the countless little
Europe, United Kingdom, Middle East butterfly wings making subtle changes in the market that might lead to the next para-
David Collison digm shift in the airfreight business.
dci.collison@btinternet.com • +44 192-381-7731
Hong Kong, Malaysia, Singapore Finally, we also want to congratulate the winners of Air Cargo World’s 10th Annual
Joseph Yap Air Cargo Excellence Awards, many of whom are profiled in this issue (page 36). The
jospeh@asianimedia.com • +65 6-337-6996
airports and carriers who made the cut, from the Certificate of Excellence recipients
India to the Gold, Platinum and Diamond Award winners, all deserve a round of applause
Faredoon Kuka RMA Media
kuka@rmamedia.com • +91 22 6570 3081 for going above and beyond in providing excellent cargo service to their customers.
Japan It was a pleasure traveling to Shanghai, China, in March to meet the attendees at
Mr. Mikio Tsuchiya
mikio.tsuchiya@worldmedia.jp • +81 45-891-1852 our ACE Awards event, held in conjunction with IATA’s World Cargo Symposium.
Korea Many thanks to IATA for yet again being such a gracious host. I look forward to
Mr. Jung-Won Suh attending many more symposiums in the future. And to watching those butterfly
sinsegi@igroupnet.co.kr • +82 2785-8222
wings flutter.
Taiwan
Ms. Paula Liu
paulaliu99@gmail.com • +886 2-2523-8268
Thailand Randy Woods,
Ms. Anchana Nararidh Editor, Air Cargo World
anchana@worldmedia.co.th • +66 26-412-6938
rwoods@aircargoworld.com
Marketplace
Alyssa Stebbins
astebbins@royalmedia.com • +1 212 991-6735
4 APRIL 2015 ACWUpFront
Please, please, please join in the debate. The
Photo: ACTP
effect of e-commerce will affect your operation. Winged migration
Two small blue parrots – Spix’s
—Stan Wraight, executive director and co-founder of Strategic
Aviation Solutions, imploring air cargo professionals at Air macaws, to be exact – named Carla
Cargo 2015 in New Orleans to modernize their equipment and Tiago were flown from Berlin
and train their staff to handle e-freight. to São Paulo on an Iberia flight for
Ode to Joe their release into the wild. Born in
captivity, they were flown with their
In early March, Cargolux took delivery of a new 747-8F, and as it’s the carrier’s human keepers, who handed them
custom to name its freighters, this one was named Joe Sutter, after the “Father of over to Brazilian authorities. Carla
the Boeing 747.” Joe Sutter was the lead and Tiago are part of a breeding
engineer and project manager for the project by the German Association
development of the original jumbo jet for the Conservation of Threatened
in the late 1960s, when engineering was Parrots (ACTP), and will be re-
done with slide rules and drafting pens. leased into their native territory in
Joe’s still going strong at well over 90 2021. Only 93 specimens of the bird
years old, and when the first 747-8 flew exist today, and all are in captivity.
in 2010, he was there. Precious cargo, indeed.
Tenth anniversary gift: Pharma No shortage of lingerie Ready for launch
No secret here – Victoria’s
Satellites may be built for
Secret loves airfreight. The
orbital speeds, but they still
lingerie retailer avoided any
have to get to the launch
shortages of shorties going
to its stores by eluding the pad at a slightly slower pace.
West Coast port labor dis- That’s where Volga-Dnepr
pute. Sharen Jester Turney, Airlines stepped in to deliver
president and CEO, said the two Russian telecommuni-
decision to move Vicki’s goods cations satellites – Express
by air helps the chain move AM7 and Express AM8 –
What better way is there to celebrate a 10th anniver- quickly to adjust to customer from Toulouse, France, to
sary than a 747 full of drugs? In 2005, Cargolux, in co- tastes. “We’re so passionate Kransnoyarsk, Russia, to the
operation with forwarder DB Schenker, started weekly to air everything,” she said. Baikonur Cosmodrome in
freighter service from Luxembourg to Indianapolis, “There’s not going to be a Kazakhstan. The AM7 was
U.S. A year later, the frequency bumped up to twice a reduction in airfreight. It scheduled for a March 19
week. Last month, Cargolux, in its 10th year operating more than pays for itself.” launch, with AM8 following on
the Indy route, delivered its first full charter flight car- April 6. To keep the delicate
rying critical and valuable pharmaceuticals. Cargolux, equipment safe, Volga-Dnepr’s
which now serves 15 destinations with healthcare experts ensured the An-124-
products for DB Schenker, ensured the chartered phar- 100 cargo hold was main-
ma was kept at an ambient temperature of 68 degrees tained at very specific pres-
Fahrenheit by using a thermal Tyvek cover. It’s always sure and temperature. Volga-
nice to have fancy wrapping on your anniversary. Dnepr delivers one in three of
all satellites in the world.
Fast & Luxurious An AN-124 arriving at Baikonur
with Express AM7 in the hold.
Etihad Airways and Universal Pictures unveiled the
luxury “Fast & Furious” 777 airliner at LAX. Actor/
producer Vin Diesel was on hand as Etihad Airways
Flight 171 arrived from Abu Dhabi to kick off the
global junket and world premiere of his latest film,
“Furious 7.” The aircraft will fly directly between
Abu Dhabi and L.A., a route Etihad opened last June.
6 APRIL 2015 ACWCargoChat
Jan Krems on the turnaround at United Cargo
Before launching his successful career in aviation, Jan Krems earned a bachelor’s degree in
commercial economics from Utrecht University in the Netherlands and a post-graduate de-
gree in marketing. He then spent 27 years at Air France-KLM, where he was instrumental in
merging Martinair’s operations into the AF-KLM cargo business. Last year, Krems crossed the
Atlantic to become president of United Cargo. In this role, he is responsible for all aspects of
United Cargo’s operations, customer service, sales and marketing activity, revenue manage-
ment, product quality and technology solutions. Within weeks of his arrival, in June 2014, the
fortunes of the then-struggling cargo operation began to improve, along with the rest of the industry. We spoke with
Krems to get some insight on the secrets to United Cargo’s success and see how he’s handling the transition to another
carrier after his long tenure at AF-KLM.
United Cargo has enjoyed strong RTK growth in recent Was it difficult transitioning from the freighter-
months. To what do you attribute this turnaround? focused Air France-KLM operation to the belly-only
I believe the turnaround is the result of a three-step process approach at United?
that has involved our whole team and is still ongoing. First, Many of the lessons learned from bringing the KLM and Air
we shifted our focus from internal to external, then we lis- France – and then Martinair – cargo operations, technolo-
tened to our customers to learn specifically what they want- gies and cultures together have been very valuable at Unit-
ed from us, then we focused 100 percent of our energies on ed. With a freighter or a passenger airline, the fundamental
fulfilling our customers’ needs. The reversal started in the mission is the same: to maximize the value of the carrier’s
second half of 2014, as we began to fully recover from two cargo capacity. The best way to do that is to provide the
major challenges: implementing a completely new technol- products and services customers need most, and then de-
ogy system and transitioning many of our warehouse service liver consistently reliable service they can trust.
partners. Customers told us expressly that we needed to How has the drop in oil prices affected your operation?
get back to basics and execute our operations at the highest
level possible, so we concentrated our efforts, and our ser- Lower oil prices have definitely been an advantage for the
vice levels made a steady recovery. The attitude and quality airline industry, though the impact of hedges has reduced
of our team are also key factors. We have a number of new the level of benefit. We continue to work closely with our
people with fresh ideas, and the entire staff is re-energized customers on the issue of fuel surcharges, and we will do
by our recent successes. Everyone is working together to- what is best for our customers and for United. One thing I’ve
ward a single goal – improving our service and our business learned in my years in the industry is there are few things
to earn and retain customer preference. less predictable than the movement of fuel prices. You may
plan for prices to move a certain way, but you should be
How has the planned joint venture with ready for the opposite – or nothing at all – to happen.
ANA progressed?
What are the biggest challenges United Cargo
Because the strengths of the two carriers mesh and support faces today?
each other so well, we believe our proposed trans-Pacific
cargo joint venture with ANA would generate significant I think our primary challenge is the same as nearly every
service benefits for the customers of both carriers. So ANA business: how to remain consistently successful through all
and United Cargo are continuing our very productive series the turmoil – good and bad economic conditions, incidents
of meetings, with the shared objective of realizing the cus- and factors that impact the global business climate, etc. Our
tomer and carrier benefits as soon as possible. response to this challenge is to gain customer preference
by being highly reliable and easy to do business with, and
then grow our added-value products and business. This is
the best way to reduce the impact of any future negative
economic cycles.
What’s your economic outlook for the cargo industry
in 2015 and beyond?
At United Cargo, we believe the long-term outlook for air
cargo is positive – better than it has been in recent years.
We realize the global recovery is not benefitting all regions
equally, and we know a few positive quarters won’t fix the
industry’s chronic overcapacity. But along with the favorable
economics, we sense there is a willingness in our industry
to confront a number of issues we must address to ensure
Krems came to United from Air France-KLM, which used to carry our sustainability – and that we’re gaining traction toward
much of its air cargo on freighters. Now at United Cargo, he must solutions. ACW
learn to work with the ample belly capacity of United’s fleet of
widebodies, such as this 777.
8 APRIL 2015 ACW41
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ASIA
Photo: Toll Group
Japanese players buy international logistics heft
By Ian Putzger
H
ow much global logistics clout can U.S.-based customers. According to one global logistics player and has selected
one purchase in a single day? On Japanese logistics executive, Kintetsu Toll as the key growth platform.”
Feb. 17, two Japanese firms may has a stronger need for growth outside Andrew Jillings, CEO of Hong Kong-
have given us a rough idea. its home market than its larger rival, based Tiger Logistics, which focuses on
Within hours of each other, Kintetsu Nippon Express, which has closer ties international e-commerce, commented
World Express announced an agreement with many of Japan’s leading manufac- that the acquisition of Toll takes the
to acquire APL Logistics for US$1.2 turers and formed joint ventures with postal agency “into the global freight
billion, and Japan Post unveiled a deal them in recent years, essentially taking market and probably gives them some
to fork out almost $5.1 billion for Toll over their in-house logistics subsidiaries. synergies with Toll’s Australian express
Group. Both purchase prices reflect Toru Takahashi, president and business and their postal parcel business.”
premiums of around 50 percent on the CEO of Japan Post, described the Toll Fukuyama of Logi-Rex, on the other
share value of the acquired companies takeover as the start of a new chapter hand, questioned the synergies between
at the time the deals were announced. of “looking outward and becoming a the two. He noted that the announcements
Faced with tepid prospects at home, leading global player” for his outfit. from both offer no clear indications of
Japanese logistics firms are reaching “We believe the combination of Japan future directions or shared goals.
deep into their coffers to build up a Post and Toll will be a transformational Toll grew aggressively in Asia a few
stronger international footprint. The transaction for both our companies,” he years back, but has slowed down its
question is whether these two pairings declared in a statement. expansion in the wake of the global
will be the right fit at the right time. According to Japan Post, Toll will downturn. Its results for the first half
“In general, logistics demand in Ja- generate about 24 percent of the com- of fiscal 2015, which were released
pan is not increasing. If anything, it is bined revenues, not counting Japan in mid-February, show a 2.6 percent
decreasing,” said Tomoyasu Fukuyama, Post’s banking and insurance business- decline in revenues and a 22.3 percent
es, which exceed the mail and logistics drop in net profit. Management attrib-
president of Tokyo-based logistics firm
arm’s revenues. Postal operations will uted this largely to challenging condi-
Logi-Rex. The exodus of manufacturing
account for 49 percent. tions in Australia, a reflection of the
to other parts of Asia has largely run its
relative magnitude of its home market
course, but an aging and shrinking pop- Toll’s board of directors, which ad-
in its overall business.
ulation in a lackluster economic climate vised shareholders to give their bless-
augurs meager domestic prospects for ing to the proposed takeover in a vote Besides questions over Toll’s interna-
logistics firms, other than in niche mar- due in May, noted in its comments that, tional position, observers wonder about
kets, he adds. “Japan Post is aiming to be a leading the future of the Japan Post-Toll axis.
The future parent has signaled that it
Japan Post has not been impervious intends to run Toll at arm’s length, un-
to these conditions, not to mention the der its current name and management.
Photo: ©niconico0/flickr
decline in traditional letter mail. In the In a similar vein, Satoshi Ishizaki, group
first half of fiscal year 2015 – which runs president and CEO of Kintetsu, said,
from April 1, 2014, to March 31, 2015 – “We intend to retain the headquarters
its revenues declined. 2.6 percent. of APL Logistics in Singapore and to
Kintetsu – which saw net earnings run it as a separate unit.”
drop 14.2 percent in the period from Fukuyama noted that this stance
Japan Post vans sit idle. Japan’s declining
April 1 to Dec. 31, 2014 – stands to population, the country’s troubled economy may be due, in part, to the structure
boost its international position sig- and the decline in letter mail have all of many large Japanese companies. With
nificantly with the acquisition of APL pushed Japan Post to seek growth relatively small international departments,
Logistics, which has a strong roster of opportunities outside Japan. Continued on page 12
10 APRIL 2015 ACWOVER 900 DESTINATIONS WORLDWIDE. NOW EVEN YOUR CARGO CAN DREAM. • The largest freight network with more than 900 destinations in over 170 countries. • A worldwide sales team offering a unified product portfolio. • Unique transit solutions thanks to shared warehouses and resources. • E-Freight implemented for optimal efficiency. The cargo people.
AsiaNews
Continued from page 10
they lack the manpower and where-
withal to take over and manage over-
seas acquisitions, and are therefore in-
Indian airfreight expected to soar through 2018
The Indian airfreight market is often FDI in existing airports and under au-
clined to leave them running as before. described as an industry with great tomatic routes, as well as 100 percent
Japan Post had several international potential but little follow-through on tax exemption for airport projects for
forays via cooperation deals with large planned projects. This may change the next ten years.”
partners, such as TNT Express and La over the next three years, according India’s merchandise export and import
Poste, but none of these produced to a recent report by market research activity grew by an annual rate of 9.5
convincing results, he remarked. analysts at Frost & Sullivan. percent, on average, from 2009 to 2013,
At its present compounded annual which helped drive the nationwide
The postal agency stands on the demand for air cargo to 2.26 million
rate of growth – 5.5 percent – cargo
brink of a large IPO due this summer. tonnes in FY 2014, the study found.
demand in India is expected to boost
Plans for its privatization, which were
the country’s airfreight services ca- While growth has been strong, it has
released in December 2014, call for the pacity to 2.8 million tonnes by 2018,
opening of the holding company and been hampered by the country’s
the report found. Most of this growth, perennial lack of dedicated airfreight
two of its four subsidiaries (tasked with however, will benefit foreign-owned, warehousing, Frost & Sullivan said. As
banking and insurance) to investors, rather than domestic, carriers. The a result, most warehousing facilities
with the holding firm subsequently di- aggregate demand for air cargo, the that exist cater to international, rather
vesting itself of banking and insurance analysts concluded, comes from a than domestic, cargo. Restrictions
to concentrate on mail and logistics. renewed emphasis on international imposed on providing licenses to
Privatization of Japan Post has been on trade over the last several years and operate bonded warehouses have
the agenda several times before – the a relaxation of regulations on the caused severe capacity constraints.
most recent push in 2007 was derailed amount of foreign direct investment
by a change in government. (FDI) allowed in India’s aviation sector. “Evidently, opportunities for market
participants lie in common-user cargo
One observer in Japan links the bid “The Indian government’s FDI poli- terminal development and manage-
for Toll with the IPO, suggesting the cies have been particularly favorable ment at airports, domestic air cargo
planned $5.1 billion acquisition could towards private participants enter- carrier services, commercial and
be largely a gesture to demonstrate ing the market,” said Srinath Manda, passenger cargo handling at airports,
readiness for a future in the open mar- program manager, transportation and and perishable cargo storage facilities
ket. But, so far at least, there seems to logistics practice for Frost & Sullivan. development and operation,” Manda
be no clear focus on where this foray “Major policies fueling market growth
added. –Randy Woods
include the allowance for 100 percent
is headed.
Shippers demand more data
hippers gave the airfreight in- what shippers are asking for. We need 1 to 10, as per IATA’s recent survey of
dustry an earful regarding its to support more IT people, instead of shippers.
slow progress on digitizing its investing in another salesperson.” Mellin also called for the creation
processes, poor customer service Robert Mellin, head of distribution of one common airfreight data cloud,
and its reluctance to provide adequate logistics at electronics company Ericsson, within the next 12 to 18 months, for
data about shipments at IATA’s four-day was particularly vocal about the need for all parties to access – and leverage. “If
World Cargo Symposium in Shanghai, more data within the airfreight process. we get the solution in place … you will
China, last month. Mellin described how more information take out cost, and I, as a shipper, am
Joost Van Doesburg, of the European and data should be passed on to ship- interested in investing in this,” he said.
Shipper’s Council, said the industry pers. This data should not just be about “It would save billions of trees, give us
should try harder to satisfy its younger pickup/delivery times, but also, for ex- faster speed, better execution and
customers and embrace digital technology. ample, data “on when things go wrong.” better lead times.”
“I represent your customer and, I Presumably, this would include more Ericsson, which has annual sales of
must say, your customer is not really substantive geo-tracking data. about US$35 billion, spent around $264
happy with your industry,” he said. “We Airfreight “is so old-fashioned,” million to ship approximately 80,000
need to invest in people who can create Mellin said, adding that “everyone tonnes of airfreight to more than 160
knows what the problem is.” destinations last year, but only for
We need to support more IT The “problem” is not solved just
with electronic air waybills (e-AWB),
products for which express delivery
was absolutely essential. In fact, Mellin
people, instead of investing in he added. Rather, the entire airfreight
system needs to be wrapped in greater
added, the 2014 airfreight figures for
Ericsson were reduced “quite drasti-
another salesperson. data and information transmission.
If it is, the satisfaction levels with air-
cally,” compared to other years, and
will continue to drop rapidly unless
freight among shippers will climb above customer service improves.
—Joost Van Doesburg, Air freight policy
the current level of 7.08 on a scale of – JJ Hornblass & Randy Woods
manager, European Shipper’s Council
12 APRIL 2015 ACWAsiaNews
Global For- doubt faster, but … customers still
warding’s need an option in between.”
Shanghai Lothar Moehle, director of air security
and East standardization for Schenker AG’s glob-
China re- al airfreight division, said the forward-
gion, duly ing company naturally has embraced
presented rail, considering how Schenker is a sub-
about DHL’s sidiary of German rail giant Deutsche
rail services:
Silk Road revisited: blending rail and air in Asia RailLine,
for full-
Bahn. Rather than being a “Trojan
Horse,” the rail mode is not likely to un-
dermine the airfreight business, he said.
The ancient Silk Road, popularized container-load (FCL) shipments, and
RailConnect, for less-than-container “Customers of ours were caught in
in the West by Marco Polo in the 13th a double-whammy,” Moehle said. As
Century, has largely been overtaken by load (LCL) shipments.
many moved freight on the ocean,
modern air and ocean cargo networks. The service runs from coastal China they were hit with the “slow-steaming”
But during a session at IATA’s World through the former Soviet republics practices of some shipping lines to
Cargo Symposium last month on supply to Europe, with one option using part save on fuel, “so they were stuck with
chain management, the old land route of Russia’s famed Siberian railway. even longer wait times.”
from Asia to Europe was discussed From there, cargo can be unloaded
at air hubs and shipped by air to DB Schenker’s rail service, he said,
as an economically viable option for uses standard 20- or 40-foot intermo-
today’s shippers. The main question various markets in North and South
America and Africa. Most of the cargo dal containers to move freight from
was: Is this a threat to airfreight, or is China to Duisberg, Germany, where
it multimodal opportunity? shipped so far has been high-tech
electronics. the containers are taken by bonded
Session moderator Joost Van truck to air hubs such as Frankfurt,
Doesburg, with the European Ship- Door-to-door service using this rail/ Luxembourg, Liége or Amsterdam.
per’s Council, emphasized the latter, air option is 18 days, Jin said, com- Total door-to-door time cited by
saying his clients still needed an pared with about 41 days to make Moehle was 23 to 25 days, compared
option that is “cheaper than air, but a similar ocean journey. “Not every to about 50 to 55 days by ocean vessel
faster than the ocean.” Nover Jin, shipment is that urgent,” he told the or four to five days by aircraft alone.
product head, airfreight, for DHL packed session room. “Airfreight is no –Randy Woods
ACW APRIL 2015 13Around the world
EUROPE
Photo: ©Maarten Visser
AF-KLM Cargo: From here to obscurity
By Roger Turney
W
here did it all go wrong for Air dam, requiring the French members the outgoing freighter capacity. Ironi-
France-KLM Cargo? to commute between the two hubs. cally much of that belly hold capacity
The short answer probably Boudier was soon to be effectively is being provided by the passenger
is, “from Day One.” That’s when sidelined by this strategy. It was per- variant of the 777. But even so, that
the cargo divisions of two of Europe’s haps from here that the plight of what does not really chime with any
strongest airlines became allied as part has become of AF-KLM Cargo today ambition to be a major force in cargo.
of a grand merger between Air France began to evolve. When the freighter realignment is
and KLM. That was more than a decade According to Cargo Facts, the sister completed by the end of this year,
ago, in 2004, in a move which brought publication of Air Cargo World, prior main-deck capacity will be responsible
together what was then recognized as a to the merger, Air France operated for just 15 percent of the group’s cargo
couple of air cargo’s most professional an oceanic-sized fleet of twelve 747- production, as compared previously
outfits, with a perhaps slight deference 400Fs, while KLM Cargo was able to with 30 percent. It was perhaps not
to Lufthansa Cargo, to create Europe‘s field a fleet of three 747-400Fs. That such a difficult call to make after it was
biggest cargo carrier. combined total was further boosted revealed that freighter operations have
But the seeds of uncertainty were all when fellow Dutch carrier Martinair been responsible for half of the con-
too quickly sown. As the lead partner, was brought into the Air France-KLM tinuing losses of the cargo business.
Air France demanded overall control fold in 2008 and, with it, seven MD- And no one can argue with the
of the passenger business of the new 11Fs and four 747-400Fs. AF-KLM- catastrophic scale of the cargo results
joint venture. For KLM, well it could, Martinair Cargo, it seemed, would be that have haunted AF-KLM over the
by way of a concession, take care of invincible. But that is not how it has last three years and, with it, serious
the cargo side. Immediately, the two turned out. questions about its entire viability.
business strands were split between The glut of freighter capacity proved Posted results for 2014 show
Paris and Amsterdam. to be a burden rather than a bonus. continuing high operating losses of
This arrangement came despite the Appalling operating returns have US$240 million, exceeding losses of
fact that Air France Cargo probably forced a rapid divestment. The AF $230 million for 2013. The group says,
had the stronger business model. It Cargo 747 freighters have gone and,
certainly had the stronger candidate even more telling perhaps, the carrier
to head up the new organization in the will only retain two 777Fs, for which it
form of Marc Boudier, an industry vet- was the launch customer.
eran known for a close accord with his KLM Cargo has fared little better.
workers, and thereby the unions. Its cargo fleet, rolled-up with that of
Photo: ©Seno Hrebek/iStock
KLM Cargo, on the other hand, had Martinair, has also been depleted. All
a relative newcomer at the helm, with that will soon be left will be three
Michael Wisbrun walking into the job 747-400ERFs. This could spell the end
just four years before the merger. He for Martinair, which last month an-
already had the unenviable task of tak- nounced the layoffs of more than 100
ing over from the legendary Jacques pilots and 220 ground staff – a move
Ancher, who had guided KLM Cargo that is being protested by Martinair’s A decade after its merger with KLM, Air
for so many years. works council in Amsterdam. France Cargo has been forced to shed most
It is argued that new passenger air- of its freighter fleet, caused by severe main-
The new cargo set-up created a core deck overcapacity on the market. Operating
management team, based in Amster- craft equipment will replace much of
losses for 2014 were US$ 240 million.
14 APRIL 2015 ACWEuropeNews
if the effects of a strike by Air France
pilots last year are excluded, the
cargo losses would be reduced to Swissport fortunes boom after Servisair deal
S
$215 million. Even so, there has been wissport International Ltd., the without Servisair, Swissport’s opera-
little year-on-year improvement from ground and cargo handling service, tions alone represented a 6 percent
the $253 million in losses incurred saw its overall revenue increase increase in revenue, compared to the
in 2012. by 38 percent in 2014, partially due previous year.
And it does not look like it is going to its late 2013 acquisition of Servisair Swissport’s cargo business deliv-
to get better any time soon. The most and the ground handling business that ered a positive year, accounting for an
optimistic forecast the airline can came with it. increase of 5.4 percent in airfreight
come up with is that its cargo business Total revenue and operating income tonnage, year-over-year. Aircraft
will break even by 2017. for the year was US$2.94 billion. Even turnaround frequencies increased
The majority of the losses incurred Continued on page 16
so far are laid at the door of KLM Car-
go, it being argued that AF Cargo still
runs a tighter ship. That leads to the
notion it is poor management on the
part of the KLMers that has marred
the entire business.
Certainly, there seems to be a lack
of depth in the ranks of KLM Cargo.
Jacques Ancher was, by no means,
a one-man show and included in his
team such latter-day industry luminar-
ies as Oliver Evans and Stan Wraight.
Yes, it is still a tough market out
there, with increasing competition in
particular from the Gulf carriers. But it
For the oil and gas industry.
is a situation faced by all the European Logistics solutions tailored to your needs.
carriers. Put into perspective, stand-
alone Lufthansa Cargo achieved cargo • The fastest connections to over 300 destinations
revenues of $3.75 billion in 2013, a 3.9 • No weight restrictions
percent fall, while the combined force • Individual charter solutions
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enues of $3.74 billion, reflecting a 5.1 • Oil and gas – 24/7 emergency hotline: +49 69 696-50099
percent decline.
Could it get any worse? Well yes, it Find out more at: lufthansa-cargo.com/oilandgas
could. AF-KLM Cargo effectively became
a rudderless ship at the beginning of
the year when Erik Varwijk, it’s execu-
tive vice president, announced that he
would not be seeking renewal of his
contract in July. Instead, he packed his
bags and departed on March 1.
Time for a decisive response? Not
necessarily. The response, as such,
has been to shoe-horn Bram Graber,
current CEO of Transavia, the group’s
Dutch budget carrier, into the job.
Graber, a former KLM Cargo executive,
will retain his role at Transavia and
hold the reins at AF-KLM Cargo on a
temporary basis for a few months until
… well, until another decision is made.
AF-KLM Cargo, it would seem,
still has plenty of challenges ahead.
Jacques Ancher, where are you now?
ACW
ACW APRIL 2015 15EuropeNews
Continued from page 15
5.8 percent, year-over-year. Including
Servisair, the number of turnarounds
in 2014 totaled 2.1 million flights, and
CHEP’s high-tech ULD wins IATA Innovation Award
tonnage moved came to 4 million. At the end of four days of meetings, help determine liability in cases of
workshops, networking and discus- damaged cargo.
In addition to the Servisair acquisi- sion about the dire need for innova-
tion, growth came from new contract CHEP’s IT director Floris Kleijn ac-
tion in the airfreight industry, IATA cepted the award on behalf to the CAN-
wins, including the multi-year, pan-Eu- closed its World Cargo Symposium
ropean ground handling contract with Track team, saying the ULD system is
last month by announcing the winner being tested on trial basis with Air Can-
Germanwings; a multi-year agreement of its inaugural Innovation Award:
with Saudia ada and Hawaiian Airlines. If expanded
CHEP Aerospace Solutions. throughout the industry, he added,
Airlines
Cargo for The award honors individuals and CANTrack has the potential to reduce
Brussels and Amsterdam; global stra- companies that have created prod- ULD damage rates and increase avail-
tegic partnerships with Cargolux and ucts or services aimed at making the ability of container stock worldwide.
Transaero; and contracts with United air cargo business more competitive
Airlines at London Heathrow and compared to other modes of trans-
Washington Dulles International. portation. The winner receives a
trophy and a US$20,000 prize.
“2014 was an eventful year for
Swissport, mainly characterized by the CHEP’s winning entry was a high-
complex but successful integration tech ULD called CANTrack, which is
of Servisair, the biggest acquisition powered by solar-charged batteries
in Swissport’s history,” said Per H. and contains a GPS/GSM tracking
Utnegaard, group president and CEO system that allows operators to
of Swissport International. “For 2015 record its movements in real time.
we have a well-defined strategy and The units also have a temperature
will put a special focus on ensuring we sensor that can alert shippers, han-
achieve our high global quality and dlers and forwarders if the contents
operational standards.” are getting too warm or too cool, as
–Linda Ball well as an impact sensor that can
To understand how the Maastricht Airport’s cargo product can
give your supply chain a competitive edge in Europe, please contact
Mr. Wiel Dohmen, Cargo Development Manager at +31-43-358-9999
or by email: w.dohmen@maa.nl
16 APRIL 2015 ACWEuropeNews
Lufthansa Cargo eyes more joint ventures
B
The two other finalists in the Innova- uilding on the success of the 2014 in 2014, while capacity declined 0.8
tion competition included an intuitive joint venture with Japan’s ANA, percent to 12.35 billion RTKs.
decision support tool called CLIVE, Lufthansa Cargo is in talks with The ANA partnership, which started
and an online claim management sys- other parties interested in a similar ar- in December 2014, enabled Lufthansa
tem called Cargo Claims, by Cargo- rangement. CEO Peter Gerber spoke at to send an extra 300 consignments via
Hub. These runners-up – Niall Van de the company’s annual press confer- ANA’s aircraft that it would oth-
Wouw, managing director at CLIVE, ence on March 19, Reuters re- erwise not have been able to
and Kiona van de Burg, business ported, but said he could not accommodate because its
give any other details about own aircraft were already
development manager at CargoHub
which companies he is in full. The partnership with
– each accepted checks for US$8,000
talks with due to antitrust ANA covers routes from
for being finalists. –Randy Woods
approvals needed for such Japan to Europe, and will
a partnership. be expanded to include
Gerber said the first service from Europe to Ja-
two months of 2015 have pan this summer.
been good, and with low fuel Lufthansa Cargo has been
prices and a weak euro supporting plagued with pilot’s strikes since
exports from Germany, he expects it October 2014, including one as recent
to be a good year. The company’s 2014 as late March 2015. The carrier wants
annual report states Lufthansa Cargo’s to build a new €700 million cargo
operating profit of €100 million for the center in Frankfurt and would like to
year was up 26.6 percent compared to exercise some of its options to order
Innovation awards finalists, from 2013, with a cargo load factor of 69.9 more 777 freighters from Boeing, but
left to right: Floris Kleijn, Kiona percent, up 0.8 percent. Cargo traffic Gerber said, “given the situation in the
van de Burg, Niall van de Wouw for the year was down 1.4 percent group with the labor strikes, it’s not
at the IATA World Cargo from 8.73 billion revenue tonne kilo- getting any easier to get approval for
Symposium in Shanghai meters (RTKs) in 2013 to 8.61 billion investments.” –Linda Ball
ACW APRIL 2015 17Around the worldAFRICA
&MIDDLE EAST A South African Airways Airbus A340 fronts
several heavies at Johannesburg OR
Tambo Airport.
Photo: Fedor Selivanov /Shutterstock
South African, German airports sign historic accord
By Randy Woods
S
ome of the toughest hurdles facing communications and perishable indus- grow by an average rate of 4.3 percent
the growth of the airfreight industry tries, an active exchange of experi- for Europe, 5.2 percent for North
in Africa have been a lack of cooper- ences and analyses of potential will America and 6.6 percent for Asia,
ation between the various countries develop the capacity and reach of both through 2033, according to Boeing-
and inadequate infrastructure to handle airport management companies,” said released data.
the growing demand. At the third bien- Markus Kopp, CEO of Mitteldeutsche With a population of 1.1 billion peo-
nial Air Cargo Africa Conference and Flughafen AG. The company has simi- ple, Africa has the world’s fastest grow-
Exhibition, held Feb. 25-27 in Johannes- lar cooperation agreements in place ing continental economy, Crabtree
burg, South Africa, both of these topics with four Asian and two North Ameri- said, with an expected average annual
were front and center, prompting a his- can airports, but this is the first with economic growth rate of 4.6 percent
toric agreement between South African an African airport. per year up to 2033. At that rate, air
and European airports. Also during the Air Cargo Africa cargo traffic on African airlines is pre-
Airports Company South Africa, 2015, Tom Crabtree, regional direc- dicted to grow faster than any other
manager of the nine largest airport tor for market analysis with Boeing regional block — at 6.1 percent per year
hubs in South Africa, signed an accord Commercial Airplanes, shared some until 2033.
with Mitteldeutsche Airport Holding, encouraging statistics about the vast
Other panelists agreed that Asian
representing Leipzig Halle Airport potential of greater trade opportuni-
imports to the continent will be the most
(LEJ), that will increase cooperation ties across Africa. Citing a study from
important driver for growth of African-
and share expertise between LEJ and the United Nations’ Commission for
Asian trade, and that e-commerce
OR Tambo International Airport (JNB), Africa, Crabtree said that more than 80
and the rising demand for consumer
as well as expand cargo handling op- percent of Africa’s exports (about 1.73
goods, particularly in India and China,
erations in the South Africa hub. million tonnes per year) is destined for
will boost air trade growth in the Asia-
outside markets. Europe has always
“This strategic partnership will to-Africa direction. Others remarked
been the largest trade partner, he said,
provide industry-leading guidance that there is a critical need for “just-
but its lead is rapidly shrinking from a
in developing the company’s cargo in-time” shipments into Africa of less
high of roughly 70 percent of exports
business model and approach,” said than five days, as opposed to the cur-
to around 57 percent today. Much of
Tebogo Mekgoe, chief operating officer rent average of seven to eight days.
the change is coming from inroads be-
of Airports Company South Africa. The In his keynote address at the start
ing made by Middle Eastern and Asian
agreement follows the recent creation of the conference, Nico Bezuidenhout,
carriers, whose shares of the export
of a Cargo Management division at acting CEO of South African Airways,
market have grown by 14.4 percent
JNB, which is the largest air cargo hub encouraged the removal of barriers to
and 12.9 percent, respectively.
on the African continent. trade in Africa and called for an “open
“There is massive growth potential
“Given the centrality of air cargo to within African air trade,” he added. In trade” environment that would allow
... the automotive, electronics, tele- fact, African air trade is expected to air cargo to be a catalyst for growth
throughout the continent. He said the
industry has only seen the “tip of the
This strategic partnership will provide industry-leading iceberg” of potential African airfreight
opportunities.
guidance in developing the company’s cargo business According to STAT Times, the organiz-
ers of the event, the conference attracted
model and approach
a record-high 527 delegates, 80 exhibi-
—Tebogo Mekgoe, COO, tors and nearly 3,000 trade visitors came
Airports Company South Africa to the three-day event. ACW
18 APRIL 2015 ACWAfrica & MiddleEastNews
Qatar adds L.A. as 4th U.S. cargo destination
T
his month, Qatar Airways will go The flights will depart Doha on L.A. is also becoming a major player
Hollywood. Beginning April 4, the Wednesdays and Saturdays from Lux- in the perishables market. Last year,
Gulf carrier will start twice-weekly embourg, connecting through Mexico. 100,000 tonnes of perishable products
777 freighter service to Los Angeles, LAX ranks fifth in the U.S. in terms of were exported by air from LAX,
providing 100 tonnes of cargo capacity air cargo volumes processed. In 2014, including 40,000 tonnes sent to the
with each flight. The move makes the airport handled more than 2 mil- Middle East and Europe. Qatar Air-
LAX the fourth freighter destination lion tonnes of air cargo, valued at more ways Cargo intends to tap into this
for Qatar in the United States. The than US$91.6 billion. Qatar Airways market with its dedicated QR Fresh
other cities are Houston, Chicago carried more than 49,000 tonnes of air- cool-chain handling and storage
and Atlanta. freight from the U.S. market in 2014. facilities. –Randy Woods
Cargolux to India via Oman
In its quest for new routes to India,
Cargolux Airlines has found a new
partner in the sultanate of Oman,
which has been looking to expand its
cargo capacity. Beginning April 15,
the all-cargo carrier will begin full
freighter service from Luxembourg to
India by way of Muscat, Oman.
Oman Air and Cargolux also signed
a letter of intent last month, with a
formal signing to take place April
16, when the first Cargolux freighter
arrives in Muscat International. The
agreement enables Cargolux to use
Oman Air’s facilities in Muscat, Sa-
lalah and Sohar.
The Times of Oman reported that
Oman recently launched a pan-Gulf
Cooperative Council (GCC) and pan-
European trucking services, as well
as a joint cargo service with DHL
operating between Oman and Dubai,
United Arab Emirates.
Photo: ©Alex Kwanten
After the program rollout, Car-
golux plans to increase frequencies
to Oman to several each week, with
connections to Chennai, Mumbai and
Hyderabad in India. Other cities in
India are under consideration, as well
as connections to Europe, China, Af-
rica and the United States. Oman Air
will provide access to Cargolux to use
the bellies of its passenger planes,
which fly to 11 destinations in India
and three in Pakistan, plus other des-
tinations in Nepal, Bangladesh and
Sri Lanka. –Linda Ball
ACW APRIL 2015 19Around the world
AMERICAS
Outlook stormy as U.S. open skies debate rages
By Linda Ball
W
hat began as a slow-simmering In February, representatives from According to a Reuters report, Sul-
disagreement over the use of the American carriers met with U.S. tan bin Saeed al-Mansouri said “You
government subsidies – one that government officials to express their cannot throw accusations without
has lasted for years – has recently discontent with Emirates, Etihad and proof. The ‘subsidy’ word is misused in
mushroomed into a thunderhead of Qatar Airways, complaining that these many situations. Unless there’s proof
angry rhetoric, threats of lawsuits and “Big Three” Gulf carriers have received and you put it there, you should not
proposed legislative action to roll back US$40 billion in interest-free loans use the word ‘subsidy.’”
open skies agreements. The major from their home countries of United Mansouri said that the increasingly
U.S.-based carriers continue to accuse Arab Emirates and Qatar since 2004. heated exchanges between airline ex-
Middle Eastern airlines of exploiting On March 4, representatives from the ecutives was not healthy and could af-
the American market with an unfair Air Line Pilots Association Interna- fect relations between the various na-
advantage. tional, the Allied Pilots Association and tions. “We shouldn’t underestimate the
The debate is centered on six major the Association of Professional Flight value of the aviation industry in terms
airlines: the top three legacy carrers in Attendants, joined the U.S. carriers in of its contribution to nations – Ger-
the U.S. (American, Delta and United) Washington, D.C., to campaign against many, the U.S., Europe,” Mansouri said.
vs. the three rapidly expanding Persian the Gulf carriers.
The actions of the U.S. airlines also
Gulf-based carriers (Emirates, Qatar The U.S. carriers proposed action to raised the ire of FedEx Express and
Airways and Etihad). While most of alter the government’s current open Boeing. The Gulf carriers’ orders from
the routes in question involve passen- skies agreements with the Gulf carriers Boeing have been robust, mainly be-
ger aircraft, the amount of belly space to limit their ability to operate in the cause of the open skies agreements
being used to carry cargo is enough U.S. market. They claim Qatar Airways they have negotiated. FedEx pointed
to have a profound impact on how benefitted from billions of dollars in un- out to government officials that the air
airfreight is imported and exported secured loans from the state that do not cargo industry is an essential compo-
throughout the rest of the world. have to be repaid; that Eithad received nent of a rebounding American econ-
$6.3 billion in direct equity, plus $4.6 omy that would be impossible without
The ‘subsidy’ word is misused billion in interest-free loans; and that
Emirates was allowed to remove $2.4
the use of open skies agreements.
“The connectivity we provide for
in many situations. Unless
billion in 2014 oil hedging losses from
its books while it received $2.3 billion in U.S. businesses, both small and large,
subsidies for airport expansion in Dubai. is critical for their global expansion,”
there’s proof and you put it Emirates, Qatar and Etihad have
said David Bronczek, president and
CEO of FedEx, in a powerful letter
there, you should not use
repeatedly denied charges that they sent to the U.S. secretaries of State,
receive illegal subsidies, saying they Transportation and Commerce.
are run as completely independent
the word ‘subsidy.’ businesses, despite the fact that they
are state-owned.
Bronczek pointed out that the U.S.
carriers that are complaining don’t fly
—Sultan bin Saeed al-Mansouri, Economy
as extensively between foreign points
The economy minister for the United as FedEx, so they believe they have
Minister, United Arab Emirates Arab Emirates fired back on March 9.
20 APRIL 2015 ACWAmericasNews
little to risk by limiting foreign carrier Stan Wraight, executive director and
access to the U.S.
“Under the [open skies] agreement
co-founder of Strategic Aviation Solu-
tions, said the Middle East carriers LATAM opens new São
with the U.A.E., we have established
a hub in Dubai, where FedEx flights
aren’t growing because of subsidies,
but because of cargo. No other major
carriers have voiced an opinion on the
Paulo cargo terminal
from the U.S. criss-cross with our The LATAM Airlines Group has
flights from India and Asia in order matter as Air Cargo World went to
press, although JetBlue had expressed opened its largest cargo facility in
to move U.S. products into local mar- Brazil, at Guarulhos Airport in São
kets,” Bronczek continued. “Presently, general opposition to any changes in
open skies. Paulo. The US$11.5 million facility,
FedEx alone operates almost two- intended exclusively for domestic
thirds more flights to the Middle East Reuters reported that Emirates Pres- cargo, has a total surface area of
than all the U.S. passenger carriers ident Tim Clark has hinted at legal ac- nearly 162,000 square feet.
combined. Modifications to this agree- tion over potential harm that could be The largest and most modern
ment might spell the end of these op- done by the U.S. carriers’ complaints. cargo terminal that LATAM owns
portunities.” Clark said the service provided by his in Brazil, the facility will have the
What the carriers really want, Bron- American rivals is “shoddy,” suggesting capacity to handle more than 1,000
czek said, is for the U.S. government that perhaps they should focus instead tonnes of cargo daily. At 36 feet in
to protect them from competition – to on improving their own product. height, the terminal allows for the
stop the Gulf carriers from adding any Speaking at an arts conference in simultaneous handling of cargo
new flights to the U.S. until their al- Doha, the always outspoken Qatar transported by freighters or in bellies.
legations have been considered. “The Airways Chief Akbar Al-Baker said, “I The new terminal is fully auto-
U.S. should not capitulate to the inter- am delighted that Richard Anderson of mated, with an intelligent identifica-
est of a few carriers who stand ready Delta is not here. First of all, we don’t tion system. Cargo and platforms are
to put their narrow, protectionist fly crap airplanes that are 35 years old. labeled and tracked using bar codes,
interests ahead of the economic ben- The Qatar Airways fleet [average age] allowing for products to be easily
efits that open skies provides to the is only four years and one month. We located throughout the supply chain.
people of the United States,” he wrote have ultra-modern airplanes. We have A 1,000 square foot cold storage
invested – my country has invested – area, with 76 rack positions, is designed
in the letter.
huge amounts to make sure we are the to store perishables including fish
As reported in our sister publication, and pharmaceuticals. Perishables –
lowest CO2 contributor in the aviation
Cargo Facts, the U.S.-based carriers, along with electronic products, auto-
industry.”
while making these accusations, have mobile parts, and other machinery –
also ignored the question of whether Others echoed Al-Baker. are the most commonly transported
they are just as effectively subsidized “As one of the newest national air- products through Guarulhos, mostly
through their access to Chapter 11 lines anywhere in the world, we’ve had catering to markets in northern and
bankruptcy protection, which each of to create everything from scratch,” northeastern Brazil.
them has sought in the past. said James Hogan, president and CEO Guarulhos Airport’s cargo imports
At Air Cargo 2015 in New Orleans of Etihad Airways, addressing the U.S. and exports grew 3 percent, while
Chamber of Commerce Foundation the overall market dropped by the
last month, Stephen Alterman, presi-
in Washington, D.C. “In many cases, same amount in 2014. Throughout
dent of the Cargo Airline Association,
those [U.S.] established airlines were the year, the airport oversaw more
said open skies are an absolute neces- than 255,000 tonnes of international
sity, and that they keep more people gifted amazing infrastructure – air-
ports, terminals, slots, landing rights cargo, compared to 248,000 in 2013.
flying where freight needs to go. The airport handled 508,000 tons in
– over decades. To take them on, we’ve
Are the Big Three right about the Middle 2014, maintaining a 33 percent
had to work smarter. That’s called
East carriers, though? Perhaps not. market share. –Linda Ball
competition.” ACW
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ACW APRIL 2015 21You can also read