Quite a number of year’s
ago, a time when Bill Boesch sat astride American Airlines Cargo, I entered
the carrier’s first class lounge at Kennedy Airport one morning
and spotted him at one end of the room, partially surrounded by a small
group of cargo employees. His voice was low, but judging by his stern
face and decisive gestures, I guessed him to be in lecture or censure
mode. Boesch glanced in my direction, got up quickly, walked across the
room to clasp my hand and murmur a greeting, and just as abruptly return
to his group without saying another word.
I mention this random incident to underscore
his strict attention to every minor detail. He was too involved to make
much of my coincidental appearance, but it was vital to him not to ignore
the formality of touching base. In his long drive for success and recognition
in the world air freight industry, Boesch, now 71, held strictly to a
philosophy of hard work and pressing the borders of growth.
What are the seeds that make a successful air freight executive? Boesch
displayed no hesitancy in declaring “that person needs to start
out at the bottom and work their way up.” He explained that it was
possible to start in “a low-level management area” or hefting
cargo (as he himself did). It was like borrowing a leaf from the military
where officers start as second lieutenant or ensign and, based on success
in a variety of assignments, fulfill their aspirations. Characterizing
the U.S. military as “one of the most successful industries in the
world,” he stressed no one started out as a general or admiral.
Boesch was wholeheartedly in favor of the
airlines drawing a valuable lesson from the nation’s military and
“stop putting people at the top of cargo organizations without going
through the ranks.”
How do U.S. air freight executives measure
up against their overseas counterparts? Boesch confessed to having “mixed
feelings” about the question put to him. He pointed out that the
U.S. no longer operates all-cargo schedule service “so the top U.S.
cargo executives are now within the integrators”—that is,
FedEx and UPS. Continuing, Boesch stated:
“Many foreign airlines operate all-cargo
schedule service and therefore have a broader field of responsibility
than the cargo heads of the U.S. passenger airlines. But on the other
hand, dealing only with passenger aircraft bellies is a science, and those
U.S. executives have a harder job in formulating strategies where they
have belly capacity to fill. Therefore, U.S. and foreign cargo heads have
different fields of expertise and both are strong.”
In the end, however, he went on to say,
when you train the light on the integrators, the U.S. charter all-cargo
carriers, and the huge capacity offered by the cargo heads at the three
big U.S. passenger carriers, “the edge must go to the U.S. as an
overall advantage.”
What were the inner thoughts of Bill Boesch
concerning the air freight forwarder and air cargo agent? In
his view they were “trying,” but they lacked an adequate strategic
level. He blamed them for allowing the integrators to capture “much
of their market.” Referring to his time at American Airlines, he
sought to “rally them to jointly come up with ways with the airlines
to protect this market, but all they were interested in was to play airlines
against each other to get the lowest rates.”
Boesch posed several questions: “Exactly
what is their present strategy for their role in the industry? What are
their goals, and are they achieving them?” Calling attention to
changes in the industry and the promise of more changes to come, he asked:
“What will change, and how will they continue to add value is the
major question they should be tackling.”
Bill leveraged what he learned in air
cargo and growing up on the streets of New York City while in Iraq
and Afghanistan, often times risking his life out in the countryside
negotiating with Sheikhs and others to build better supply routes.
The result kept U.S. soldiers safe while building local employment.
And as this picture underscores, the cargo was delivered as booked.
|
As a youth in New York’s
Jamaica area, living in a fifth-floor walk-up apartment, this lofty perch
enabled William Raphael Boesch to spend hours watching the graceful movements
of landing and departing aircraft at nearby Idlewild Airport. It is a
miscue to assume that this was the source of inspiration to devote his
life to air transportation. Mentally, young Bill was already on his way
to satisfy family hopes of his turning out to be a medical doctor or a
figure in one of the sciences. In the end, those professions were to find
talent elsewhere. A couple of college degrees—a BS and a Masters—were
effective sparkplugs. (Still on the way to completing his education, he
was able to enjoy a thrill to patronize the Golden Door restaurant located
in the tower of the airport.)
|
Boesch was a late teenager and
student when his family made the leap from Jamaica to Baldwin, New York.
For the young man the gnawing necessity of adequate “spending money”
spurred the need to find a summer job. It is tempting to believe that
this was the point at which his choice career took its first, still indefinite,
turn.
As fate would have it, his next-door neighbor
was Peter George, a stalwart of Emery Air Freight, serving as its executive
vice president – operations. George had worked under John Emery
Sr. when he managed the wartime Pacific logistics operations from Hawaii.
Another member of that team was George’s friend, John Mahoney, who
went onto join Capital Airlines and soon thereafter a new all-cargo carrier,
Seaboard + Western Airlines. So the question of a summer job for Boesch
hung on whether he preferred to work for an air freight forwarding company
or an airline. Boesch had no trouble choosing the latter. Now, relaxing
as he related the experience with a distant look in his eyes, Boesch said:
“Little did I know that I would eventually
hold high management positions at both companies, and that the summer
job would shape the rest of my life.”
It was George Hegel who held that “life
has a value only when it has something as its object.” In Boesch’s
case, his drive toward the “object” started from a routine
that progressively included warehouse worker, pallet builder, aircraft
loader, weight and balance agent, customer service agent, New York City
sales representative, Detroit manager, customer service manager, and finally,
vice president – sales.
Bill
Boesch pictured with Four Star General of the United States Air Force
Raymond E. Johns Jr., who served as Commander, Air Mobility Command,
Scott Air Force Base in Illinois, USA.
General Johns said: “Bill did the hard, dirty,
dangerous work necessary to establish effective relationships with
tribal leaders and then devised a working transportation system that
reliably supplied distant outposts. The most compelling point, in
my view, is that Bill quietly did all this while saving taxpayer dollars
and the lives of U.S. service members.” |
The continuity of upward
movement at Seaboard came to an end when he agreed to head the Flying
Tiger Line’s European sales. But following a brief stay, Boesch
crossed over to the forwarding sector when he joined Emery Air Freight
as vice president – international sales. In two consecutive promotions
he assumed positions as senior vice president – sales and marketing,
and executive vice president. Then came associations with Pan American
World Airlines as vice president – cargo, followed by senior vice
president – passenger and cargo sales and marketing. Boesch’s
name flashed at American Airlines, where he was named vice president –
cargo, then in quick succession president and then chairman of the cargo
division and he wound up in direct activity with air carriers as U.S.
head of DHL Global Mail.
In service for the United States government,
Boesch was a consultant on hostile activities, member of the Gore Commission,
head of the C-17 commercial study, as well as the Iraq transportation
and Afghanistan Transport Network Logistics Operations—and others.
In the series of interviews, a standard
request of the interviewer is to name three individuals who had an impact
on his career.
Boesch agreed wholeheartedly to cooperate—too
wholeheartedly it turned out.
Starting with his Dad, William J. Boesch
(“My teacher and role model”) and uncle, Dr. Ern D’Angelo
(“Taught me how to read people.”) then went on to Peter George
(“Got me into the industry and taught me how to be professional
and honest and quality as an important factor.”); John H. Mahoney
(“One of the smartest I have known”); Fred Smith (A dream
will come true if you work hard at it); Blaise Durante (strategy); Mike
Wynne (How to deal politically in a hostile environment); Ray John (patient
leadership); Julius Maldutis (dealing in the financial world).
In general, how does cargo
security stack up in the industry these days? Has it achieved a fully
acceptable level? Boesch took exception to the phrase “fully acceptable,”
asserting that it “depends on your definition” of the phrase,
a complex undertaking. Pleading permission to “ramble on,”
he said:
“It was in the Seventies after an
IATA meeting in Geneva where we were briefed on security. I went to Frankfurt
on my way back, and called on a few top German forwarders. I told them
that security was coming, and they looked at me as if I was nuts. Security
did come, and there was a drive to put draconian security on the cargo
moving on passenger flights. I argued that all cargo flying should have
the same level of security, as a forwarder can use either freighters or
passenger bellies.”
Boesch went on to note that the airlines
are united in adopting a stern approach to assure “customers, crew,
and aircraft are protected from attack.” It took some time for the
carriers to halt using security as a competitive advantage “and
I commend the industry for this effort.”
Bill Boesch at Air Cargo 2014 with Matt Buckley,
Vice President, Cargo & Charter, Southwest Airlines Cargo (second
from left) and his team.
Have the advancing years—say,
the last quarter-century—produced a change in airline corporate
attitude toward air freight’s contributions and react to its needs?
Twenty-five years ago, Boesch observed, the air cargo business was at
a point where it was emerging from its infancy and proceeding to its middle
age: “Jet speed, jumbojet freighters, large volumes moving at lower
cost in jumbojet passenger. Flight belly space, quality management systems,
large container IT systems, bar coding, etc.…” These, he said,
resulted in air cargo’s entry to big business, “Responsible
for a large part (estimated 40 percent) of global trade revenue. Add to
the foregoing the industry’s greater sophistication had the reality
of management’s greater degree of sensitivity to the cargo sector’s
contributions.
As a veteran air cargo executive, could
he put a finger on the airports he regarded as most efficient? Boesch’s
initial response was to indicate it was an “honor” that used
to go to JFK, ORD, LHR, CDE, FRA, and TYD, “with JFK in the lead.”
No more. Credit the changes to the integrators and the “Orient,
Middle East, and South American booms” for the changes. At the top
today is Memphis, trailed by Incheon, Ted Stevens, Dubai, and Louisville.
As Boesch viewed the current situation, “Air cargo has grown from
moving primarily emergency traffic to a supply chain logistics tool carrying
a large part of the revenue of world trade.
On the subject of the status of paperless
air freight, Boesch offered the following comment:
“This has been going on for years.
We had Project 2000, 2010. IATA needs to take the lead here, and not the
carriers, as it needs global acceptance. Back then it was hard. Today
it is not.”
The record shows that more than a dribble
of air shippers have returned to surface transport.
Briefly, why? Boesch’s response: “Cost,
quality, faster ships, new ways of protecting perishable goods at sea,
improved ground logistics at each end, improved ports.”
Boesch was asked to take a hard look into
the future, and did he detect any signs of potential difficulties for
the air freight industry. Boesch’s terse answer was a flat “yes.”
He bore down hard on the fact that 76 percent of the Fortune 500 companies
have vanished because they failed to change. He predicted that modern
technology will create new opportunities, and it will be those firms that
respond positively will achieve success. On the other hand, he suggested,
a company’s current success and profits may “hold it back.”
He asked this intriguing question: “Would Flying Tigers have accepted
the large losses and/or huge expense to transform itself into Federal
Express?” Boesch described change as a “number one difficulty.”
As to himself, “I have always lived by the code that you change
or you die.”
When the talk drifted to the highs and lows
in the marketplace, Boesch said: “Unlike the passenger air industry,
it is impossible for a cargo carrier to create a demand in a weak market.
Also, cargo is monodirectional, so one leg is usually a challenge. Opportunities
are in lowering costs, improving quality, and developing new logistic
transportation vehicles.”
Does the helicopter have a possible role
to play in commercial air freight? So far as he could see, the answer
was no. He cited the high cost of operation and the “fixed physics
of helicopter flight—speed, altitude, range.”
|
|
Bill Boesch, former President of
American Airlines Cargo, was elected into the TIACA Hall of Fame.
Here he is pictured with life partner Shari (L) and daughter Heather
(R) at the TIACA Awards dinner, and in Orlando at Air Cargo 2014 where
Bill keynoted the conference. |
Rounding out the interview,
he suggested that IATA needs to be “more forceful” and cease
“acting like politicians.” He readily acknowledged the difficulty
“when you need unanimous agreement and all carriers get the same
vote.”
For Bill Boesch, the road to the upper levels
of the industry has been a twisted and event-laden one. It took a summer
job with a cargo airline during his school years to divert him from a
career with a stethoscope or bacteria-reading microscope. This wisdom
of his youthful choice is highlighted by his induction into TIACA’s
Hall of Fame.
Richard Malkin
malkin101@aircargonews.com
|