Vol. 7  No. 109                                         WE COVER THE WORLD                                                     Wednesday October 1, 2008

Terror Awaits Opportunity

     When Klaus Holler, Lufthansa Cargo Head of Area Management The Americas called the big security meeting to order Tuesday, September 30 inside the Garden City Hotel near JFK International Airport in New York it was not without a sense all around that with new mandates toward TSA compliance coming up on the horizon, Lufthansa Cargo is redoubling its effort to maintaining itself as former New York City Police Commissioner Howard Safir puts it as “the gold standard,” in airline cargo security.
     Holler, who once served as top gun at the critical Lufthansa Cargo Center in Frankfurt, has been at the helm in USA since 2006.
     He understands full well the importance of security and the “keep it simple” concept having also served as a top ground executive at the Lufthansa Cargo hub at Sharjah.
     “The shortest distance that air cargo moves is from acceptance, through the warehouse to waiting aircraft and back again on the same path to the pick up area.
     “How secure consignments are handled across that space is the major driving force in success or failure in the air cargo business today and tomorrow.”
     Commissioner Safir who was top cop responsible for the entire New York City Police Force during the time of Mayor Giuliani and before and after September 11, 2001 couldn’t agree more:
     “Terror is just waiting to strike again.
     “It is not a matter of ‘if,’ rather it is when they will strike.
     “I have looked into the eyes of the Islamic Jihadist.
     “They have hate, determination, intelligence and cunning.
     “Because of the success of 911, there are entrepreneurial groups cropping up that we must be ever vigilant and watching out for.
     “No room for complacency either,” Howard Safir declared.
     “Terrorists are looking for soft targets.”
     

In New York at Lufthansa's second security conference, pictured left to right are Harald Zielinski, Bill McReynolds, and Howard Safir.
    

     Bill McReynolds, Chairman Cargo Committee, Airline Pilots Association also had some thoughts.
     “We need to apply the same standards of security to both cargo and passengers.
     “What that means is a clamping down of security on all cargo flights by applying the same edicts of background checks and fingerprinting and other devices normal to the rest of the industry.
     “Ramp access, onboard activities, the all cargo flight deck and other operations are often the weak link in the security chain.”
     The FedEx pilot acknowledged the need for a commercially viable solution while also praising EL AL for its security.
     “We don’t have to look far to find some excellent examples of total security in the airline business and that is EL AL Israel Airlines.”
     Harald Zielinski, Lufthansa Cargo Security Chief says something that we have never heard before from any airline cargo executive:
     “We reinvest 100% of every security surcharge paid to Lufthansa Cargo right back into improving security.
     “Across the board since 2000 we have charted a downward trend in cargo theft that will continue once again in 2008.
     “The challenges are the new edicts toward 100% security that will continue to raise our costs all around.
     “These expenses are quite basic to us and must be met not only for compliance but as the way we do business.
     “We have a few stations around the world where we do not accept export cargo if we cannot control the process.”
     Professor John Hansman (left) from The Massachusetts Institute of Technology (MIT) lifts the audience with his professorial delivery of what sounds a little like a Star Wars approach to the future of air cargo security.
     “Machinery always delivers the same attentiveness to the requirement.
     “Technology is not a panacea but neither in my view is a one size fits all approach to air cargo security.”
     “Air cargo screening will include new technologies.
     “Future screening should not be static but able to observe all sides of any subject.
     Prof Hansman spoke of applications utilizing gamma ray and new technology x-ray, “still to be proven.”
     So did the Lufthansa Cargo Security Conference work?
     Joe Frigger, CEO Emo Trans had this to say:
     "I found this conference to be a positive and necessary discussion with a good mix of people. There needs to be a constant exchange between everyone involved in the supply chain. For example, tomorrow will debut the 100% screening requirement for narrowbody aircraft (domestic). For an international forwarder like myself, the implementation of this requirement will serve as a learning platform for further requirements come February 1, 2009 and beyond."
     Other attendees we talked to were also enthusiastic.
     “I enjoyed the future talk but also the afternoon sessions that included TSA,” said one participant.
     “There is so much at stake for all of us, so keeping on the same page with our partners right now is critical," said another.
     “For the freight forwarder all the rules are quite confusing.
     “Here we learned something plus we made contact with some experts and also shared and networked with other disciplines in air cargo.
     “Time well spent.”
     As the day ended we found one of those small combination travel locks and some brochures that host Lufthansa Cargo provided. While looking for something to padlock came the realization that security, like rust, never sleeps.
Geoffrey/Sabiha

To View Harald Zielinski Video Click Here

 

Quote Of The Year (So Far)

Announcement Tuesday Sept 30 that all Alitalia unions back CAI rescue plan and that AF KLM, Lufthansa are eyeing stakes in the Italian carrier, brought this from Dave Brooks, President of American Airlines Cargo:

Alitalia has a financial plan in place and the U.S. banking system does not?
Go figure!


Markets Slow To Crawl

     IATA numbers guru Brian Pearce delivers some more figures that look suspiciously like déjà vu all over again or like the last set of monthly numbers as the world airline business buffeted by fuel prices and slowing economies further slows down to 1.3% growth in international RPKs during August, reflecting deteriorating economic conditions.
     “This follows sharp slowdown to 1.9% in July, after reasonably robust first half growth of 5.4%.
     “Asia-Pacific airlines led the slowdown with -3.1%, which overwhelmed modest improvements in North American and Europe.
     “Even if Asia is depressed by temporary factors, economic conditions continue to deteriorate pointing to weaker air travel ahead.
     “Air cargo volumes continue to perform worse than passenger markets, with a 2.7% fall during August. Unlike passenger markets, weakness in air freight is broad-based, suggesting a significant decline in world trade.
     “Of great concern is the further fall in load factors, in spite of attempts to slow capacity growth, reducing unit revenues and adding to pressure on profitability.
     “Load factors in August at 79.2% were 1.8% lower than last year, including a 3.7% point decline for Asia-Pacific airlines.”



U.S. Government is looking at the first bomb-resistant luggage container, a 5-foot-by-5-foot Kevlar container. But if you can believe this, U.S. Congress gave TSA no money for the containers, so it will not require airlines to use them, USA Today said. "Carriers won't pay for them," because of problems such as the container's 265-pound weight and $18,000 cost, said David Castelveter, spokesman for the Air Transport Association . . . As reported here last week Japan Airlines (JAL) has now confirmed it will cease all freighter-only operations between Tokyo (Narita) and New York and reduce freighter flight frequency from 6 to 5 flights per week on the Tokyo (Narita)-Los Angeles route. By the end of November 2008, JAL will also have retired from service its last remaining two 747-200 freighter aircraft. JAL is also canceling conversion of one of its 747-400 passenger aircraft into a freighter aircraft, as had originally been planned . . . Meantime Boeing

successfully completed a high-pressure test, known as "high blow," on the 787 Dreamliner static test airframe at its Everett factory September 30. The test is one of three static tests that must be cleared prior to first flight . . . Airbus officially opened its first final assembly line outside of Europe September 30 in Tanjin, China. Chinese Premier Wen Jiabao, together with the Party's Secretary of Tianjin, Zhang Gaoli and Airbus President and CEO Tom Enders inaugurated the Airbus A320 facility.. . . Geoffrey