Vol. 8 No. 5                                              WE COVER THE WORLD                                                   Friday January 16, 2009


Did Daddy Take The T-Bird Away?

     “Fun, Fun, Fun” are the words of a popular Beach Boys song that concludes “We’ll have fun, fun, fun ‘til Daddy takes the T-Bird away.”
     The T-Bird of course is the Ford Thunderbird auto that the Southern California 1960’s anthem was all about.
     Now in 2009 even some songs that have been rattling around inside the head for years can take on a different meaning.
     Maybe all this financial and business world turned upside down stuff will also empower some people to think about real change in air cargo, and our vote says, that can’t be all bad.
     As we read it, there are indications of sharing knowledge going on already in 2009.
     An Air Cargo News FlyingTypers story on Wednesday January 7 titled “TSA Rules Changes Everything,” set a one-day record for readership for this virtual publication.
     Now we don’t pretend to be the smartest people in the world, but by simply offering some perspective and advice from smart people about what to expect when TSA lowers the boom of how the USA air cargo business is done come February, is something you might want to review.
     Somewhere on the internet already there are companies that will tell you what to do and expect (for a fee) as the 50% rule takes hold.
     We think that the sharing that Klaus Holler, the all-pro Lufthansa Cargo chief in USA advanced by spelling out in clear and universally hopeful terms how to generate a best result scenario as TSA 50% belly screening begins in February was great advice.
     In any case air cargo could be looking at further reduction of services in small and medium-sized markets as freight carriers become increasingly unwilling to make signi€cant capital and labor/training investments for limited return potential.
     The international gateways are a horse of a different color, but don’t be surprised as third-party ground-handlers take on the service lead for many carriers.
     Talk about a “hold your breath,” time.
     Make no mistake about it—February 3 impacts world air cargo as close as we have ever been to a day of infamy.
     We also wrote about Bruce McCaffrey earlier this week on Monday January 12.
     Bruce is that Qantas air cargo executive in USA that bit the bullet and copped a plea with U.S. DOJ in the world cargo price fixing investigations.
     His story is exclusive to our media and remarkable, also in some ways even hopeful in terms of the human spirit of one dedicated air cargo guy.
     The story also points out that when it comes to prosecutors and airlines paying fines this saga is far from finished.
    We are thankful that IATA is holding its Third World Cargo Symposium in Bangkok March 3-5 after some unrest late last year in BKK has settled down that will allow that vital gathering to take place.
     If there ever was a time that some smart people in air cargo need to gather and match ideas and wits and other thoughts it is right now so WCS steps up big in the early part of 2009 as the must-to-attend venue in a year of change.
     So think twice about where you drag yourself and your promotionals this year. One question that arises is can you afford to set up in a location just to talk to yourself and people looking to eat your time and snacks and grab freebie giveaways?
     IATA WCS is deep dish, industry driving foundation knowledge about how to compete and win in air cargo, delivered in any number of sessions by and with people like yourself.
     Of course we will be there providing you end to end coverage.
     Our view is that getting together as an industry this year is a vital exercise, although tough times also bespeak diminished travel and marketing budgets.
     Here is an early short list of the cargo trade shows that we think matter in 2009.
Fruit Logistica Berlin February 4-6. Nobody thinks that despite whatever else happens to world economies, that food or pharma shipments will slow down, so go to Germany and eat a peach and take a bite out a business that will continue to boom.
IATA World Cargo Symposium March 2-5, 2009 Bangkok, Thailand.
     Our pick as last best hope (or maybe €rst) for better industry streamlining and getting on the same page.
     Another must IATA air cargo trade show is CNS Partnership Conference May 3-5 LaCosta Resort Carlsbad, California.
     This conference is genteel and civilized as these events go with everybody in a soft place with good service and networking galore.
     But don’t let the sumptuous address fool you. CNS still holds promise unique in the world, for a true airline forwarder relationship.
     Despite some misgivings that the org may be tilting too far toward the Airlines, IATA Cargo’s Aleks Popovich is smart and resourceful and we hear about to name a successor to Jens Tubbesing as President of CNS that will make (almost) everyone happy.
Transport Logistic Munich May 12-15 Munich, Germany.
     Held every other year with huge ocean and rail and truck coverage along with air cargo (that benefits from the aforementioned) this is a great show.
Transport Logistic, despite its dismal failure last year with a China version works all the way in Munich.
     Must to avoid is all that over the top air cargo awards stuff and overly expensive hotel banquet fancy dress dinners.
     The awards are pure baloney and besides this is Bavaria where the ham is always better.
     As example, a meal available in little country inns and elsewhere all around Munich in springtime that we bet will roll down your socks and might even make you want to sing, is a plate full of white asparagus served with buttered boiled potatoes, bauernschinken and a creamy béarnaise sauce that altogether is a culinary delight you may not know, and will never forget.
Air Cargo Americas November 4-6, 2009 Miami, Florida.
     The hotel and display hall are dismal and the high gloss has come off Miami International Airport, but the people and spirit and action at this show deserve a shot as long as there is no hurricane in the neighborhood.
     We also like Intermodal South America held April 14-16 at The Transamérica Expo Center São Paulo, Brazil because let’s face it South America is there and this show is the biggest of its kind held every year.
     Not much in the way of organized air cargo discussion aside from some boiler plate, but ISA gets some interest from big players such as Emirates SkyCargo and others so if you can get there—this one is worth a shot.
     Finally we are wondering as business continues to slow this early in an January that is otherwise cold as an ice-box in North America and Europe, why not think about speaking to the better nature and sense of everyone?
     The people and factories and markets and airplanes and ships are all still there around us, as are inept regulations and management and business practice.
     Anybody that thinks government can do anything right must be crazy.
     We also think that the €nancial schemes and bankers’ failed strategies now revealed, are all about change in the new world atmosphere.
     Now in 2009, like it or not one result of that global village many people embraced a few years back is a world where we truly need each other.
     But as uncertainty torn between surrender and the confusion of a million how-to €nancial scenarios abound, we can do our part by advancing what we have always believed are the way things work, straight from the shoulder and right from the heart.
     So let’s talk some more shop at a trade show.
     For one thing, flying somewhere can both elevate thoughts and lift spirits.
               “Well you knew all along that your Dad was getting wise to you,
               “And since he took your set of keys you’ve been thinking that your fun is all through.
               “But come along with me ‘cause we got a lot of things to do now.”

     The song continues.
Geoffrey

 

So what do you do when business is lousy? You can hold a pallet building contest just like Hactl did and like that proverbial “trip to nowhere,” build up a shipment that never was, to both lift spirits and keep the boys busy. By the way Nippon Cargo Airlines won the Hactl 2009 International Forklift and Pallet Building Competition for the third year. Now if NCA will just unpark some of its freighters. Elsewhere JAL Cargo won both “Safety Award” and "Forklift Truck Driving Championship" category while Air China Cargo won the “Manual Lifting and Handling Outstanding Award,” at the event held Sunday January 11 at Hong Kong International Airport . . . That announcement of Delta Airlines Cargo’s exit from SkyTeam Cargo US Joint Venture (USJV) shouldn’t be much of a surprise since Delta has never been much in the freight business despite having absorbed Pan Am Clipper Cargo in 1991, that was once the world’s largest carrier of freight and mail, and now also Northwest Cargo, operator of a fleet of antique B747Fs that serve as America’s last combination airline all-cargo across the Pacific. What will happen to NWA Cargo is anybody’s guess, but don’t hold your breath that DL will buy NWA new freighters or come to think of it that former USJV partners Korean and Air France will continue to headquarter in Atlanta where they set up shop a few years ago to be near Delta . . . Taiwan and China may want to go global now that cross-strait flight routes are routine to include other international destinations on a coming and going basis. Another indication of tough business at times forcing even old antagonists to try and boost their business. So will a Taiwan carrier take off in Taipei, land in Beijing and then fly onwards to Frankfurt? Stay tuned . . .
Cathay Pacific Airways Ltd., Hong Kong's largest carrier, expects a slowdown in cargo demand to get even worse as the global recession deepens, chief executive officer Tony Tyler said recently. Cathay Cargo traffic dropped 24 percent in December . . . Air China will buy back the 24% of Air China Cargo from Capital Airports Holding Company for 798 million yuan and then maybe set up a joint venture air cargo company with another carrier, possibly Cathay according to one report . . .TACA Airlines will begin offering flights from Lima, Peru to Havana, Cuba, beginning March 23 . . . Swissport International ceases ground handling operations in Singapore at the end of March 2009 “for economic reasons and further focusing its activities on other Asian markets.” . . . FedEx makes it a Boeing January firming up options and ordering 15 B777Fs from Boeing. Still to be delivered is the first B777F going to Air France in a couple months. Reportedly Boeing slashed prices for the deal from $3.75billion to $2.8 . . . Qatar Airways opened a road show to trumpet its start up of services from Doha to Houston March 30. Scheduled are meetings with travel trade and industry partners in Kuwait City (already held on January 14) followed by Bahrain on January 18, Doha January 25, Abu Dhabi January 28 and Muscat February 10. Qatar Airways goes daily non-stop between Doha and Houston, the airline's third U.S. gateway city on March 30, using Boeing 777-200 Long Range aircraft. Among other things QR says the route will offer convenient connections to and from Dubai . . . So much for the China and India economic miracle. The first paper Airport Authority Hong Kong (HKAA) signed this year was a deferral agreement with Cathay Pacific Cargo for construction of its new Cargo Terminal until mid-2013 . . . Meantime Jet Airways is in talks with Oman Air and any other airline that will listen about leasing aircraft. Jet leased two A330-200 aircraft to Gulf Air and three B777-300ER to Turkish Airlines, last December. Far cry from all the optimism of Jet CEO Naresh Goyal (pictured with Geoffrey Arend) and others when Jet about to launch New York service in 2007 rented out the grand banquet room at The Waldorf Astoria . . .



Miracle On The Hudson

     On a day in New York City that was preamble to the coldest weather here in a decade, as the stock market matched the big chill with another lackluster day and the American President said farewell, an Airbus A320 landed in the Hudson River and everyone aboard the aircraft lived to talk about it.
     Sometimes the news cannot get worse, but then something happens that lifts spirits.
     Maybe it is a stretch to believe that the 155 people who walked off the Hudson River yesterday are a sign of anything except maybe extraordinary good luck.
     But from that US Airways Flight 1549 Airbus equipped with a ditching switch that seals the lower hold allowing the aircraft to bob in the water, (it was still afloat Friday morning) an extraordinary touching human moment unfolded.
     The strength, determination, caring and spirit of people—the heroic pilot Capt. Sullenberger, the passengers and first responders, has wrapped itself around the imagination of others in USA and around the world.
     After Capt. Sully guided the stricken jet from 3,200 feet, wheels down onto the Hudson, passengers shouting “women and children first,” were rescued by a flotilla of large and small boats by other people who put their arms around each survivor, indicating by a simple human gesture, “everything is going to be alright.”
Geoffrey