Vol. 11 No. 93                                                                                                           Thursday September 27, 2012

     If you ask Kenji Hashimoto what are American Airlines Cargo’ priorities as the fourth and final quarter of 2012 begins (aside from an end to the current ongoing labor pains of emerging from bankruptcy), the answer is direct and full of conviction:

     “Top priority for the remainder of the year is maintaining service standards and making sure our intensive customer service focus is retained, especially if there is any kind of peak season this year.
     “In conversations with our customers, and things I have heard anecdotally, the sense is that they are not hugely optimistic about their own traffic, but that doesn't mean we should let anything waver. Customers expect a service—whatever level of business they are giving us—and we must make sure we deliver.
     “I can't say there's much evidence of any change in the air cargo business from the rest of 2012 so far, but I think it’s a good thing that customers still have the expectation of the potential for a peak season even if it’s not very evident.
     “Our flown-as-booked record is pretty good compared with our competitors and I think that's something our customers recognize.
     “Product to product, we're still seeing good business for our ExpediteTC product, most particularly the passive service, and that's something that is showing growth system wide.
     “I believe users of the service enjoy the fact that we're not just a hub offering when it comes to our high-end services; we can offer them a through-service to key destinations not only in our own network, but beyond to destinations such as Fukuoka, in partnership with JAL.
     “It's not only new flights we're looking at from a cargo perspective, but new equipment. International customers are asking us about when the B777-300ER fleet comes into active service and we're already getting questions about the B787-900s, which aren't due on stream until late 2014.
     “So, our initial concentration will be the B777-300ERs, which are starting to be delivered at the end of the year and will initially go into service on routes to Sao Paulo and London.
     “They'll give us about 34 percent additional cargo capacity on the routes that they operate on and that we really need.
     “But looking ahead, it's a little tricky to look into a crystal ball and make any month-on-month predictions, not because I don’t want to, but simply because we're knuckling down and getting on with the job in hand.
     “That said, everyone is having a tough time out there and customers don’t appear extraordinarily optimistic about the short-term picture.
     “In the long-run, we at American are excited about the possibilities with our new aircraft and a very competitive cost structure due to our restructuring process, which is progressing well.

     As for who impresses Kenji Hashimoto, the answer is straight from the shoulder:
     “This is going to sound a bit clichéd, but it is my new team at AA Cargo—and not for the obvious reasons.
     “When I first took over this role, I spent a lot of time meeting the team, and not just the sales team.
     “I am referring to those involved in all parts of the business and our customers.
     “What amazed me—at my first opportunity to interact with our customers (CNS Conference in May) – is that more than one customer complimented me on how customer-focused our claims team was; and I thought to myself, if the claims team comes over in that professional and efficient way, then what a great foundation for the business to build on.”
     Kenji has some advice for customers as well.
     “I'm telling them that despite everything going on at a corporate level, our focus on customer and operational integrity is undiminished and we are determined to provide the best possible service.
     “That said, we have opportunities to build off this foundation, and we need to move forward on those initiatives to maintain or extend our competitiveness along with our service to our customers.
     “In terms of the current market, everyone can tell you that the market has been better, but there's still a place for air cargo.
     “It's certainly tough out there, but there's business to be had, and we need to show our customers that we truly understand what they want and, more importantly, can deliver it.
     “In the current economic climate, there's always going to be some modal shift, but we’ll seek to put the right mix of traffic on our planes, to best serve our customers.”
Geoffrey/Flossie

     The Golden Parachute in the USA goes to Bill McInerney, (left) Phoenix International executive chairman and founder, who just sold his company to C.H. Robinson for about $635 million in cash and stock.
     When the deal is finalized, McInerney will retire (expected during Q4) and Phoenix CEO Stephane Rambaud (right) will lead the combined company's international freight forwarding services, C.H. Robinson said.

 

     For what we see up ahead . . . we have just completed an exercise out to 2020 where we continue to see strong cargo demand for our current and future network. Our network is ideally positioned to take advantage of some of the largest and fastest growing cargo markets out there.
      And based on announced fleet deliveries, our bellyhold capacity will grow 13 percent Compound Annual Growth Rate (CAGR) ahead of industry forecasts. Also, our airline’s strategic partnerships have application to cargo both directly and indirectly, and we’re always on the lookout for new opportunities.
     As we continue to grow in scale, and as we achieve more critical mass, Etihad Cargo will continue to evolve. The key is to remain proactive, responsive, and relevant to our customers. On top of that, in the coming years we will add more new aircraft with lower operating costs to both our passenger and freighter fleet, allowing benefits across maintenance and crewing, as well as in the original procurement. Combine these efficiencies with cargo solutions that our customers want and use along with excellent customer service, and we’re confident of keeping Etihad Cargo in the black. New added value products such as our guaranteed priority product Fast-Track and our new Valuable and Precious Cargo product, SAFEGUARD, will help to turn the yield dial, as well as ensuring we continue to recover as much as we can from sustained high fuel costs.

 

     Everybody might be having a tough year, but that hasn’t stopped or even slowed down high-flying ATC Aviation from expanding its operations—both in Asia, and (as expected to be announced later this year, perhaps at TIACA early next month), elsewhere as well.
     Much of the credit for the continued surge in ATC’s fortunes can be placed squarely on the energetic and ambitious company CEO, Ingo Zimmer, who has become a familiar face and resource GSA for the global air cargo industry.
     No doubt also playing into ATC success are the many airline companies that have chosen—in an increasingly competitive air cargo business—to stick to flight whilst leaving various aspects of their business on the ground to others.
     But with so many choices, ATC has become both a GSSA niche player that is expanding globally by leaps and bounds, offering an impressive client base a wide range of custom services, driven by a special style of customer relations.
     “Although the move is definitely to outsource sales and marketing, our customers demand a seamless experience for their clients, so we must always be totally committed to delivering the very best quality product,” Mr. Zimmer declared.
     “Right now, with business challenged all over, how we do our job is even more important, as everyone knows.


     “Despite gains everywhere else, we recently said goodbye to Asiana Germany, which was a very good customer, as they decided to do their own thing.
     “However our business keeps on growing as others have joined ATC, and we continue to expand.
     “Right now we are in an acquisition mode with eyes on America and Asia as we expect to be making some further announcements as 2012 continues.
     “Very safe to say that on balance our business is good; we are a strong company that will grow exponentially in the months and years ahead,” Ingo Zimmer said.
     Although it has been in business for more than 40 years, when ATC Aviation Services Ltd. stepped up as general sales and services agent (GSSA) managing all aspects of Etihad Cargo’s sales and service delivery in Germany just four years ago, the company displayed a kind of savvy that propelled it right along with the runaway success enjoyed by EY.
     You play the big game, you win the big prize, and for ATC there has been no looking back.
     At 6’ 5” inches tall, Ingo Zimmer stands out in any crowd. He is able, despite all his business responsibilities, to nonetheless stay relaxed and well grounded, and manages success in both personal and business endeavors.
     He enjoys family, sports, and vacation time, and was proud to speak of his youngsters beginning their year in school.
     Ingo, it turns out, couples intelligence and matinee good looks with a genuine, down-to-earth, nice guy demeanor and a willingness to listen.
     He is one former freight forwarder who has figured out how to score big as a GSSA in the 21st century.
ATC’s roots date back to the early seventies, when ATC Air Transport Consultants Ltd. was established in Switzerland as a charter broker.
     By the 1980s, ATC had gained a solid reputation as a pioneer in the field of cargo GSA for scheduled carriers, a concept which was then introduced successfully in other European countries, and as the first GSA organization to provide coverage with dedicated offices across several European countries.
     During the mid-1990s, the company was taken over by key management, and ATC Aviation Services Ltd. was born.
     New strategies were introduced based on the corporate slogan: ATC Always Takes Care.
     In 2004, ATC Aviation Services Ltd became a member of the “World Freight Company” Group, a holding owned by 3i and AXA Private Equity.
     For the past two-dozen years, while Ingo is on board, the company has represented (in addition to Etihad) Kuwait Airways, Royal Air Maroc, Ethiopian Airlines, Qatar Airlines, Turkish Airlines, All Nippon Airlines, United Airlines, Eyptair and others.
     “All the airlines that we work for in my district are equal—everybody gets the golden touch at ATC,” Ingo said.
     “The key ingredient of our organization here is to never forget that this is a highly personal business that never lets the customer forget how important he or she is regarded.
     “We also make it a point to handle specialized markets like Africa and The Middle East, East Asia, Eastern Europe, and Central Asia (and soon to come in the Americas) better than anyone else.
     “When I began in this business, our clients were mostly airlines people knew little about.
     “Today in the global village, where every bit of information can be in your handheld, the smart money sticks to core business and leaves air cargo to professionals like ATC.
     “In other words, the GSSA market has widened to include just about everybody and that has sharpened our need and also ability to be better at everything we do.
     “Of course, there are problems.
     “However, the reason we have grown—in addition to our great team—is that ATC has the financial power to deliver a first-class product in our role as an airline cargo organization—both in good times and in a global market such as this one right now.”
Geoffrey/Flossie

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As a boy rides past a wall of cardboard boxes stacked near a central Jerusalem market that closed early Tuesday for Yom Kippur—the Day of Atonement and the holiest of Jewish holidays—we extend to our Jewish readers worldwide L'Shana Tovah as we continue to pray for peace.
Geoffrey

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