Vol. 8 No. 40                                            WE COVER THE WORLD                                                         Thursday  April 9, 2009

JFK Show Navigates Tough Times

     Late last month what has become an annual rite of Spring in New York, JFK Air Cargo Day was held with several hundred industry professionals in attendance.
     The event is sponsored and raised by the pioneering JFK Air Cargo Association that meets monthly at the airport.
     We have always liked that air cargo folks can drive over to an on-field hotel venue, have some lunch, network and maybe even learn something about what is going on elsewhere in this big wide world, all in one day.
     Here it is about community gathering round and supporting an air cargo event that makes the going better for everyone.
     Once upon a time what happened at JFK air cargo carried global importance.
     Thanks to people like Jim Larsen, Gerry Kash and others who carried this event forward for many years to get it started, and now      with Willy Mercado from Aer Lingus and others who continue the effort, JFK Air Cargo Day has a rhythm and motion that is irresistible.
     The event even managed to make some global news as Oliver Evans, (left) the Chief Cargo Officer at Swiss International Air Lines delivered an insightful in the moment speech that wrapped up in some plain speaking what might help others to better understand and make it in air cargo during 2009. (Click on photo or here to view video).
     So in addition to everything else at JFK on March 26, a well respected transportation thinker and top world air cargo executive delivered for some air cargo people, many of whom have been beaten about the head by the global financial meltdown.
     “Crises means change,”Mr. Evans said.
     “Change means opportunity.
     “Clear strategy and perfect execution enable success and growth also in times of crises.
     “How will successful carriers and cargo companies get through these turbulent times?
     “My view is that air cargo will be well served with focus on strategy and continuous investment in future innovations."
     Mr. Evans who obviously thinks about these things makes no secret what has his attention these days.
     “It’s about quality focus,” he says.
     “With commitment to Cargo 2000 Swiss WordCargo continues to strive for high quality.
     “The point is that e-age future development does not stop in times of crises.
     “Today message quality and data integrity are not being utilized enough by the industry. EDI messaging is only partly in use as many paper/phone/fax transactions continue.
     “There is also too many antiquated 30 year-old legacy systems still in use throughout the air cargo industry. These legacy systems are costly, slow and difficult to upgrade, offering among other things unreliable message transfer between systems that compromise quality and create additional work and delay.
     “The first steps into the internet age are currently being coordinated by IATA (MIP, e freight), however the individual airlines and other supply chain participants main responsibilities are not just the simple transition from paper AWB to eAWB—but rather messaging quality, standardization and connectivity.
     “At Swiss WorldCargo we have been constantly positioning for the “e” or paperless AWB future.
     “So our view is that despite the current downturn much can be done to be ready for the challenges of a changing marketplace as business returns.
     “Looking ahead there are some projections for five year growth at about four and a half percent with intercontinental air trade growth between 2008-2012.
     “So far in 2009 as we all know lower fuel costs are not stimulating an upswing in air cargo as the deepest recession since the 1930’s is forecast for the year.
     “The downturn is especially felt in Asia where big investments into the former booming market have seen directional imbalances and the global situation have lead to a disaster for almost every airline.
     “Right now for air cargo, flights ex-China account for a huge 90% of the revenue.
     “According to reports more than 2800 jet airliners are now parked with 1167 of those aircraft grounded last year.
     “So understanding crises and change while driving both quality and opportunity will be critical in this most uncommon time,” Mr. Evans said.
     Oliver is an ace.
     What’s more we have seen him stand up twice big time for air cargo this past month, on March 3 in BKK at IATA WCS and again on March 26 at JFK.
Geoffrey

(Hyderabad Exclusive)—It has been an eventful first year for the Rajiv Gandhi International Airport (also known as GMR-Hyderabad International Airport Limited or GHIAL) at Hyderabad.
     One of the country’s top Greenfield airports, GHIAL has become quite popular with the air cargo community in the region.
     The cargo facilities and those who are managing them speak of efficiency and nimbleness.
     Ever since the airport started operations, the management has been hard selling it to both passenger and freight carriers.
     Their efforts are paying off – as far as air cargo goes.
      Earlier this week Lufthansa Cargo enhanced its freighter network in India, with a weekly two-way freighter flight every Tuesday to Hyderabad from Frankfurt.
     This new flight ideally augments the capacities already available on Lufthansa passenger flights.
     With this addition to the network, Lufthansa Cargo will be the first airline to offer a freighter service to the south Indian metropolis.
     Elsewhere cargo authorities here have a two-pronged strategy to woo the world:
     First, promote the facilities available, and second, promote the potential of the city.
     For the moment, Hyderabad is placed sixth or seventh in terms of India cargo throughput, with more exports out of the city than imports.
     Let’s look at facilities at GHIAL.
     The international air cargo complex spans an area of 10 acres, of which three acres have been apportioned for cargo processing and storage area.
     Of the total area of 14,330 sq m, the international air cargo complex will have 6,610 sq m and the domestic air cargo complex would have 4,346 sq m.
     There is dedicated parking space for 24 trucks, 96 cars and 120 plus two-wheelers.
     Managed by a joint venture between the airport and the UK-based Menzies, the cargo section is a hi-tech facility capable of handling 100,000 tons annually.
     Said Dilip Rane, Associate Vice President, Cargo, GHIAL:
     “We are selling the airport facilities to carriers and showcasing the terminal to the industry. We also have to influence freight forwarders, shippers and consignees about the airport.
     “For a carrier, it has to make economical sense to fly freighters into an airport. If exports or imports from the airport are not large enough, carriers would shy away from the airport, however beautiful the airport is or however good the cargo terminal may be.”
     Ultimate aim here without a doubt is to position Hyderabad as a global cargo hub.
     GHIAL management wants to capitalize on the city’s distinct geographical advantage.
     Not only is it connected to other airports in the country; it is at the center of the important aviation hubs of Singapore and Dubai airports.
     However, the city’s proximity to Nagpur (a six-hour drive), where a multi-modal cargo hub is being put up, has made the situation more competitive.
     Said Rane:
     “We are working on the project that would transform Hyderabad into a transshipment hub – which is still at the planning stage.
     “We already have Customs permission to transship cargo in and out of Hyderabad.
     “That means a freighter could come in from London to Hyderabad with cargo destined for Chennai or other destinations in the south.”
     He pointed out that the carriers would choose Hyderabad “because some of them have been finding it difficult to fly cargo to Chennai or Bengaluru due to lack of capacity.
     “We have capacity available in Hyderabad because there is not much of import coming in.”
     Even so, said Rane, Lufthansa has been the first to recognize Hyderabad’s potential.
     “Most of the airlines we spoke to were satisfied with exports but imports are dismal.
     “Basically, those who are capacity operators will be attracted to come here.
     “Exports out of Hyderabad are 80-85 percent, while imports only amount to 10-15 percent of total cargo throughputs.
     “So, especially for carriers from Europe, to come all the way more or less empty is not feasible. They can’t recover the cost of operations.
     “Lufthansa has seen that the export market is good. The aircraft which flies into Mumbai comes with imports. Previously, the same aircraft used to go to Bangkok. The Mumbai to Bangkok sector hardly took any cargo. There was, perhaps, only a small amount of pharma goods. Thailand was hardly importing anything from India. There could be some imports to Hyderabad but a majority will go to Mumbai.
     “Once word about transshipment spreads, which Lufthansa is aware of, then they can bring cargo destined for Bengaluru or Chennai and discharged at Hyderabad.”
     Other than the proposed transshipment hub, the cargo complex’s Center for Perishable Cargo (CPC) has been earning its stripes.
     Today, it has a capacity of handling 38 tons of perishable goods, like fruits, vegetables and flowers.
     In addition, it has a further 8 tons of freezer capacity, which can be used for pharma products or vaccines.
     Over the next three or four years, the airport is building infrastructure that will enable it to handle 13,000 tons per annum of perishable cargo under Phase-I (up to 2011) and 25,000 tons per year under Phase-II (2013-14).
     Incidentally, the largest export consignments from Hyderabad comprise pharma and more recently, solar panels.
     Ideally, Rane wished to have “least one airline to be anchored here at Hyderabad.”
     Stay tuned.
Tirthankar Ghosh

It’s doubtful four decades ago come this May 15, as Finnair celebrates 40 years of service flying from Helsinki to New York City, that folks on those first DC8-62CF aircraft that served the route experienced the kind of premium seating and service featured aboard AY’s new A330 (OH-LTM -“Mike”) long range aircraft just delivered that now will fly the route.      But in just a bit, over one month as the A330 makes its run across the Atlantic to mark forty years of continued service, that is exactly what will happen.      An old joke that made the rounds for years at AY is recalled:      “Hey,” a passenger told the flight crew boarding the DC8 in 1969, you guys must have some big first class section. “I’m flying FC and my seat is behind the wing.”      Finnair chose the Douglas DC-8-62CF (Convertible Freighter) as their first intercontinental jet.      The ultra long range DC-8-62 could easily fly Helsinki to New York with a full load of passengers and/or cargo.      So on May 15, 1969, Finnair became a true intercontinental airline with the inaugural of service from Helsinki to New York via Copenhagen and Amsterdam using their new DC-8-62CF. In an all passenger configuration the Finnair DC-8 was configured to 16 first class & 124 economy seating.      With a large cargo door located near the front left passenger door, Finnair's DC-8-62CFs could also carry large cargo pallets in combination with passengers or operate as an all cargo aircraft - depending on whatever the airline's needs were.      Finnair went on to operate 3 DC-8-62CF aircraft and 1 all-passenger DC-8-62 aircraft from 1969 to 1985.      Finnair's 3 DC-8-62CF aircraft were later converted to DC-8-72CF aircraft and are now owned by the French Air Force (L'ARMEE DE L'AIR) and are used as troop transport aircraft. Geoffrey