Vol. 13 No. 5                                                                                                                                    Wednesday January 15, 2014
#INTHEAIREVERYWHERE 
THE AIR CARGO NEWS THOUGHT LEADER  




sk Jim Butler, President of American Airlines Cargo, what the customer can expect from the newly formed biggest airline in the world and the freshman manager handles that question with the determination and ease of a seasoned veteran:
“It’s an exciting time for our customers.
“In December, we officially closed our merger with US Airways and began our journey toward building the world’s largest airline.
     “The new American Airlines Cargo will allow us to offer customers an even larger global network and more cargo capacity.
     “We know we have a big job ahead of us, and we’re committed to providing our customers with world-class products and services and keeping our customers our top priority every step of the way.”


     “Last year was a great year for our customers and for us.
     “In 2013, American rolled out the new aacargo.com to positive customer feedback, grew our global network and added capacity with our new aircraft, expanded our cargo service to new domestic and international cities and continued to make important investments in our infrastructure and products.
     “It was also a year of positive growth—for both American and US Airways.
     “Both carriers reported positive year-over-year traffic growth in 2013, and we’re optimistic that as we move forward with our integration, this positive momentum will continue.”


     “We’ve learned over the years that relationships are key in this industry.
     “We work hard to build great relationships with our customers and to gain their trust. Every day our employees partner with customers around the globe to provide them with creative solutions to meet their needs. I know our people make the difference, and we’re committed to preserving that trust as we work toward a seamless integration.”


     Jim W. Butler was appointed in December 2013.
     He brings more than 15 years of airline industry experience.
     Prior to his current role, Butler served as Managing Director of Commercial Planning and Performance, where he led the airline's commercial restructuring, including the airline's strategic business plan, commercial financial budget, network profitability, and performance.
     In 2013, he was one of six to be named to the core integration leadership team responsible for the integration of American Airlines and US Airways.
     Since joining American Airlines in 1996, he has worked in a variety of departments and developed an extensive background in sales, marketing, pricing, and finance.
     This includes positions in revenue management for American Airlines and Aerolineas Argentinas, and interactive marketing and global sales planning and analysis, where he launched American's small and medium enterprise strategy through eight products that presented more than $1.4 billion in annual revenue.
     Mr. Butler earned his MBA from J. L. Kellogg School of Management at Northwestern University and his Bachelor's degree from Cornell University. He has served as a member of the board of directors for the UK Board of Airline Representatives and on the Joint Steering team at London's Heathrow airport.
     Butler lives in Lewisville, Texas, with his wife and two children. He is fluent in Spanish, a licensed private pilot, and an avid skier.

     Joe Reedy, (left) Vice President Cargo Sales and Marketing and American Airlines Managing Director.
      Joe oversees the revenue generation of the cargo network, all marketing and communications efforts, and the management of aacargo.com.
     Andy Rubin, (right) Vice President Cargo Revenue Management and Performance and American Airlines Managing Director.
     Andy is in command of revenue management, planning of the global cargo network, and cargo performance measurement.
     David Vance, Vice President Cargo Operations and American Airlines Managing Director.
     David’s mission includes all day-to-day freight and mail operations, including warehouse operations, facility management, and regulatory compliance.
     He joined AA Cargo from the legacy American Customer Operations Planning team, where he led policy and procedure development and ramp and baggage automotive initiatives.
     Prior to this assignment, David served as Managing Director of Corporate Security and General Manager in Austin, Texas.
     A rising star, Mr. Vance advanced a close and expanding involvement in cargo operations for the past several years.


     “This is a big year for us.
     “Our team is working hard to deliver a seamless integration, and we continue to expand our services and global network.
     “In June, we’ll begin offering cargo service between Dallas/Fort Worth (DFW) and Hong Kong (HKG) as well as Shanghai (PVG).
     “We’re also making important investments in our infrastructure and products.
     “This year, we’ll complete construction on a new controlled room temperature (CRT) facility in London Heathrow (LHR), and we have more additions planned.
     “We continue to look at ways we can support industry initiatives and modernize our business, including e-Air Waybill education and implementation.”


     “The new American brings together the best of both airlines and teams at American and US Airways.
     “Together, we’re committed to delivering our customers an even larger network, broader opportunities, and creative solutions to meet their needs.
     “Throughout our journey to become one airline, we’re committed to staying focused on our customers, and we look forward to continued success in 2014.”
Geoffrey/Flossie



Uli Ogiermann
Chief Officer Cargo
Qatar Airways


     “Substantially increased capacity with new freighters and wide body capacity added to our network.
     “New destinations to be announced, with service from a new Cargo Terminal in operation to further improve quality of the hub in Doha.
     “New products launched with Q Pharma and Q Fresh... and much more to come.
     “Focus on innovative IT solutions and support of important industry initiatives such as e-freight.
     “This is all part of our long-term strategy to be amongst the top five cargo carriers in terms of product quality and the size of our operation, to make us the preferred choice of all our customers.”


Oliver Evans
Chairman
The International Air Cargo Association

     “TIACA is a great institution that brings together and binds the widest spread of companies in the industry (large and small, every stakeholder group, from all over the world) to drive the industry agenda and create great networking events.
     “This will happen this year again with our annual AGM and Executive Summit in Istanbul on April 24th & 25th, and of course the Air Cargo Forum held this year in Seoul, Korea, building on a long and cherished tradition.
     “Everyone should take advantage of membership and these events, as never before have the industry challenges been greater, the pace of change faster, and the need to engage with others outside the immediate circle more urgent.”
www.tiaca.org


 

Going Dutch With IAS—May 15, 2013
The ladies of Netherlands-based Inter Aviation Services B.V. (IAS) are Suzan Snel, Henriëtte Hoogervorst, Esther Romar, and Tanja van der Zwan, part of an exclusive, all-women sales force.

 

 


 

     (New Delhi Exclusive) It’s that time of the year: to look back, and, perhaps take a cautious look ahead.
     While the air cargo sector faced a harrowing time, stakeholders in India tightened belts and looked at ways to tackle the challenges. At the end of 2013, the air cargo sector emerged with the feeling that the present infrastructure available to the stakeholders in India still needs a huge amount of work.
     Nothing too startling there.

A New Year—Another Plan
     But once again the government has chalked out plans for investments in the airport sector outlined in the 12th Five-Year Plan.
     In fact, the Planning Commission (the apex body for planning in the country) constituted a Working Group under the chairmanship of the Civil Aviation secretary (the topmost bureaucrat in the ministry of Civil Aviation) for the formulation of the 12th Five Year Plan (2012-17) for Civil Aviation.
     The Working Group has to review the physical and financial performance of various constituent units of the aviation sector with special focus on the Ministry of Civil Aviation and its constituents, indicating the achievements and failures.
     The group is also scheduled to project growth in passenger and cargo traffic (both international and domestic) and assess the capacity requirements in terms of passenger and cargo volumes for each year of the Twelfth Five Year Plan and also assess the airport infrastructure requirement in view of growth in passenger and cargo traffic.
Minister for Civil Aviation Ajit Singh lighting the lamp to inaugurate the Conference of Aviation Ministers of State Governments, in New Delhi in September last year. The junior Minister for Civil Aviation K.C. Venugopal is also seen.    
 

      Civil Aviation Minister Ajit Singh was recently quoted saying that “the government has envisaged investment of $12.1 billion in the airports sector during the 12th Plan period, of which $9.3 billion is expected to come from the private sector for construction of new airports, expansion, and modernization of existing airports, development of low-cost airports to keep the tariff at a minimal at smaller airports, and development of world-class air navigation services infrastructure.”

Who Benefits?
     While the plan advances and everyone wonders if this one will work to better serve the challenges of the airline business in India, many also might imagine that those who are capitalizing the most on the modernization and development moves are technology service providers.
     According to consultancy firm Deloitte, an increased interest in upgrading IT has been noticed at the airports.
     In fact, the government has witnessed the difference between the privatized and public airports and it is now pushing in finances to upgrade the airports, with the focus on security and customer satisfaction.
     Indeed, there is a definite push to modernize and develop the civil aviation sector from the government.
     Despite the opposition from a section of parliamentarians and labor unions to privatization moves, the government is keen to hand over Chennai, Kolkata, Ahmedabad, Jaipur, Guwahati, and Lucknow airports to private operators.
     Obviously, it has seen the kind of work that the GMR and GVK groups have done to Delhi, Mumbai, Bengaluru, and Hyderabad airports.
     K. C. Venugopal, the junior Civil Aviation Minister, recently told Parliament that after “awarding the Delhi and Mumbai airports to joint venture companies… it has been observed that the introduction of PPP (Public-Private Partnership) model at these airports has led to a significant improvement in the infrastructure and rise in the collection of revenues, especially non-aeronautical revenues.”

Cargo Takes A Bite
     A part of the technology upgrade at airports will go toward cargo facilities; many stakeholders feel that a lot has to be done to speed up the flow of cargo traffic. According to Shailendra Seth, Director, Chapman Freeborn India:
     “Despite the rapid economic growth and technological advancements in our country, this sector is still waiting for many changes to be implemented.
     “While the government is positively working towards encouraging growth in the aviation industry by bringing drastic changes in policies, current infrastructure is hardly capable to handle the growth. But despite of all these challenges, we feel the long term growth potential is quite positive.”
Tirthankar Ghosh

 

 
     Sir Maurice Flanagan, one of the founders of Emirates Airline, retired to London (Kensington) earlier last year.
     Always plainspoken, Maurice was asked recently by Management Today to recall his career:
     “I joined BOAC in 1953. (Bastards Overseas Avoiding Conscription, as it was known.) Got posted to Kano, Calcutta, Tripoli, Bangkok.
     “You saluted the captain and flag as you taxied out in those days. Lovely organization.
     “We arrived in Dubai in 1978.
     “Now it's like Venice in its pomp.
     “It's a city of merchants—a mediaeval court with king and barons.
     “Emirates, the second-biggest airline in the world, is the equivalent of the Venetian fleet.”
     Ah, Maurice!
Geoffrey


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