Vol. 12 No. 78                         THE GLOBAL AIR CARGO PUBLICATION OF RECORD                    Tuesday September 10, 2013
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THE AIR CARGO NEWS LEADER  


     On August 13th, FlyingTypers reported that there was no news regarding the fate of Air Cargo Germany and clarified that other sources touting an imminent re-start of ACG’s operations were simply rehashing unfounded speculation.
     Turns out we were right.
     Frank Kebekus, the court-appointed administrator of ACG announced on Wednesday September 4th that the remaining 120 employees of ACG have been dismissed and the remaining two aircraft, B747-400F’s returned to their lessors.
     What remains of ACG is an ugly story about how not to start (and run) an airline operation, and how such an enterprise in its desperate attempts to gain a slice of the shrinking market, can bring down yields for all other operators.
     The German taxpayer is footing the bill for these unsound management practices, since the now written-off loans for ACG were partially provided through the government-owned development bank ISG and by the provincial government of Rhineland-Palatine owned Hahn airport which converted ACG’s handling fee debts into an unsecured loan.
     It seems likely that the questionable accounting practices at ACG and the provision of unsecured loans in a market-distorting way will be followed by legal battles in the courts, so although ACG is now six feet under, it may be a while before it can rest in peace.
Jens


air cargo news for September 10 2013


ue to host the FIFA World Cup in 2022, nobody can accuse Qatar’s rulers of lacking ambition or imagination. Not only is this a huge global event held in a country of just two million people—most of them expatriates—but stifling summer temperatures will mean the building of vast air-conditioned stadiums. Qatar’s willingness to aim for the heavens has long-been apparent in the aviation sector.
Qatar Airways has emerged over the last decade as a global player in both cargo and passenger markets. Its rapid growth has been critical in transforming Doha into a major global aviation hub, with the carrier’s volumes providing the base cargo and passenger volumes all hubs need to attract the third party carriers drawn to a critical mass of traffic.
     Until now, Doha International Airport (DOH) has taken the strain of Qatar’s success. But long-term plans to boost national capacity are coming to fruition and freight is crucial to the Qatari ‘Vision.’ Large chunks of DOH’s traffic are due for gradual transferal to the $15.5 billion Hamad International Airport (HIA), which is scheduled to open later this year and boasts state-of-the-art facilities.
     Hamad is located on a huge site some two-thirds the size of the metropolitan Doha area. It includes its own monorail network and is adjacent to both a residential area with room for 200,000 people and the ‘Zone 1 Economic Zone,’ a key part of Qatar’s long-term ‘Vision’ to boost non-energy revenue. Zone 1 covers some four square kilometers, and when it is opened in 2016-17, is expected to house high-value technology, manufacturing and pharmaceutical companies, along with the logistics majors required to support their distribution and warehousing.

     “HIA is the biggest investment thus far in Qatar’s aviation history and this will propel the country into becoming a major commercial hub,” said Abdulaziz Abdulla Al-Mass, Manager Public Relations, Doha International Airport. “It will certainly up the ante in the aviation sector, both regionally and globally. With its enhanced capacity to handle large-scale international movements of passengers, goods, workforce, knowledge, and technology, HIA will play a significant role in fuelling economic diversification in Qatar and accelerate its on-going development as a knowledge-based economy in line with Qatar National Vision 2030.”
     HIA’s cargo facility will offer the ability to handle 5,000 shipments simultaneously at the 290,000-square meter, USD$1 billion Qatar Airways Cargo Complex, which will have capacity of 1.4 million tons per annum and be located in the midfield area of the new airport.
     “With state-of-the-art infrastructure for optimized cargo handling, HIA will play a significant role in expanding our customer base and making Doha the preferred cargo hub in the region,” said Al-Mass.
     The Complex composes seven facilities, including one of the largest cargo terminal buildings in the world, spanning 55,000 square meters. It features an Air Cargo Handling System capable of accommodating 1,005 Unit Load Devices (ULD) and 5,286 consignment cages, plus 32 truck-loading facilities on the landside area supported by full X-ray screening systems. The new cargo terminal also includes a separate aircraft parking apron with 11 wide-body aircraft stands, 42 airside loading docks, a live animal center, plus dangerous and perishable goods storage areas.
     “The Live Animal Centre, which is 4,200-square meters, contains dedicated holding, veterinary, and processing areas for live animals shipped by air,” said Al-Mass. “A team of specialist animal care personnel will be based at the facility to tend to animals departing, arriving, or transiting through Doha.”
     A state-of-the-art Cargo Warehouse Information System (CWIS) will monitor the location of all cargo—whether stored in the ULD System, consignment cages, or in the various special cargo handling areas—while a Cargo Agents facility will provide leasable space for more than 12 businesses. A Landside Security Station will feature a special document processing area for cargo moving in and out of Qatar.
     “HIA, as it continues to expand through its various development phases until full completion in 2015, has been designed to accommodate the growth that is expected both in the region as well as in Qatar, thus making it the ideal commercial gateway for cargo movement in the region,” said Al-Mass.
     “Our vision is to become one of the top 5 cargo airports in the world and the strong market trust in our services will continue to build Doha into a world-class commercial hub.”
     DOH saw growth of 15 percent in the year through March 2013 when it handled 968, 499 tons. 14 percent growth is forecast next year to take volumes to 1.14 million tons.
     “As the demand for transportation continues to grow in the region, and with Qatar increasingly becoming an important commercial hub between east and west, we are continuously growing our customer base,” he said. “At present, we have 31 customer airlines, 33 freight forwarders, and 3,624 commercial companies as customers.”
     Qatar Airways Cargo now serves more than 40 freighter destinations worldwide via its Doha hub with a fleet that includes 5 Boeing 777Fs and 3 Airbus A330Fs. An additional 3 Airbus A330F aircraft will be added within the next 12 months to help meet rising demand and supplement the carrier’s substantial bellyhold capacity.

     Al-Mass believes Doha and the Middle East’s other thriving and highly competitive aviation hubs are well placed to continue expanding in the next decade.
     “The Middle East is increasingly developing as an important commercial and leisure travel hub,” he said.      “It is strategically located halfway between Asia and Europe. Two thirds of the world’s population lives within 8 hours flight of Doha, for example, with one third within four hours away. This gives the region a significant strategic advantage by making it an ideal hub-and-spoke gateway, with many airlines choosing to route all their traffic through one central hub as it optimizes transportation efficiencies.
     “As one of the fastest growing economies in the world, Qatar is in a solid position to leverage this trend and become a major international gateway. Modern, state-of-the-art infrastructure is pivotal to achieving this objective.”
SkyKing


strange malady has gripped the Indian aviation sector.
There are people at the top who want things to move and reach world-class standards, but those down below have no desire to see the policies through.
Such is the case with the ground handling policy that involves movement of air cargo. It has taken at least five years to implement—after many starts and stops—and even today is not followed all over the country’s airports.
     The problem lies with the Ground Handling Policy (GHP), which has hiccupped with ambiguous regulatory definition since the government initiated moves toward forming some kind of cohesive policy way back in February 2007.

     Every time the government decided to introduce GHP, there has been opposition to any plan—whether from the private carriers or the security agencies.
     The last instance of the government’s efforts came when the order was passed to implement the policy on January 1, 2011. That would have put an end to ground handling by the airlines.
     But it was stopped in its tracks for the third time.
     The GHP missed its deadline; so now GHP has gone back to the drawing board yet again.
     In fact, so confusing is the situation that no less a personage as IATA chief Tony Tyler, speaking at the India Aviation Day in March this year, commented that the “policy disarray in ground handling” in India denied airlines other than state-owned Air India the right to perform ground operations for themselves.
     “The legal challenges, the multiple government notifications and their different interpretations have all made ground handling an area suffering from deep policy confusion,” said Tyler.
     “This is not an environment where safety and security can thrive,” Tony T. said.
     The situation had become so muddled that at the end of October 2012, Civil Aviation Minister Ajit Singh met representatives of the country’s carriers to allay fears about the policy on ground handling at the nation’s airports.
     The minister said that the new policy had been framed after the approval from the Cabinet Committee on Security (CCS). Additionally, he said the policy would bring economies of scale, ensure optimal utilization of personnel and equipment, and ensure standardization.
     Although the airlines under GHP revision face the prospect of losing the ability to directly conduct their own handling, the minister has opened an option saying that carriers can create subsidiaries for ground handling that could participate in the tendering process to become designated ground handlers.
     At this point in time, it should come as no surprise that GHP continues as a point of bitter discord between the ministry of civil aviation and the airlines.
     The airlines have been apprehensive about handing over ground handling functions to independent companies, pointing out that that would take away their own control.
     In turn, the government has been cautious about allowing too many personnel inside the airport and on the tarmac and other restricted/technical areas since they could pose serious security risks.
     For the record, last time the government attempted to implement the new GHP handling policy (January 1, 2011), the airlines, under an umbrella organization—Federation of Indian Airlines (FIA)—first approached the Delhi High Court and later appealed to the Supreme Court to stop implementation of the policy.
     Meanwhile in 2013, surveying the handling landscape brings some attention to companies like Bhadra International India (BIIL), a joint venture with well-known ground handler Novia International Consulting APS of Denmark.
     BIIL took part in the tender and secured the required permission to work in two major international (Chennai and Kolkata) and five airports (Trivandrum, Calicut, Coimbatore, Tiruchi, and Mangalore) in the south back in 2009.
     The venture has been a standout success.
     Said Vipin Mahajan, BIIL’s Chief Financial Officer:
     “If you really look at this entire ground-handling policy, it is aimed at modernization and adherence to the security and safety aspect.
     “Bhadra has invested around $52 million into state-of-the-art modern equipment, imported from all over the world.”
     Said Mahajan:
     “Today Bhadra is one of the premier ground handlers in the country.
     “We are top-of-the-line people and equipment.
     “For example, Bhadra utilizes Trepel Cargo Loaders, Rheinmetall Air Start Units, Schopf push-back tractors and state-of-the-art conveyers, and other enhancements,” he said.
     “We have brought in world-class security and quality to ground handling services at the airports we serve.”
     With its contracts for handling and cargo and even general aviation services with airlines at seven airports, BIIL, according to Vipin Mahajan, “stands committed to provide the most professionally competent ground handling services by employing the most highly skilled staff and supplying ground support for our customer airlines that is efficient, safe, and always on-time.”
     For its part, BIIL’s performance has won it all-around praise from foreign cargo carriers such as Lufthansa and British Airways.
     In addition, BIIL’s handling of cargo shipments at Chennai has only seen an upward rise.
     By the numbers, BIIL handled 4,840 flights (2,774 passenger flights, 884 freighters and 1,182 non-scheduled flights) at Chennai Intl up through July 31, 2013.
     Of course, the BIIL success is still limited when viewing the overall India market, which badly needs a clear, workable ground handling policy if aviation is to grow here.
     So the question of when and if the GHP will gain wider acceptance and be finally implemented is still out there twisting in the wind almost seven years after the first initiatives toward implementing ground handling policies were announced.
     What has also not changed is widespread belief amongst stakeholders that know if India is to have international standards of ground handling, GHP must be passed into law so investments are made and better ground handling for air cargo can unlock the market potential even further.
     With a rapidly developing aviation sector and substantial investments in new airports and terminals, the time has clearly come to bite the bullet and get GHP done.
Tirthankar Ghosh


 

nited Parcel Service will continue to pursue expansion in fast growing markets even as it appeals the European Union’s decision earlier this year to block its $6.7 billion bid for TNT Express.
The purchase of TNT would have doubled UPS’s European network and made it a viable competitor to DHL as well as expanding its global footprint.
     But Mike Mangeot, UPS Airlines Public Relations Manager, said that although UPS is appealing the EU’s decision, which “was factually and legally erroneous,” the deal was only “a tactic in our global growth strategy, it was not the strategy in and of itself.”
     Growth opportunities, he said, would continue to be leveraged globally.
     “Our recent acquisition of the Hungarian healthcare logistics company Cemelog was a great example of how we can continue to expand our global reach through merger and acquisition activities,” he said.


     Further growth in Asia will be a key plank of UPS’s strategy.
     “Speaking broadly, UPS remains bullish on Asia in the long run, despite uncertainties in the market in the near term,” Mangeot said. “Asia remains a major center of global growth.
     “Between now and 2025, global trade is expected to increase by another 73 percent and top $50 trillion.
     “We plan to make the most of this opportunity,” UPS declares.
     UPS’s Asia Pacific operation is currently built on hub operations at Shanghai, Hong Kong, and Shenzhen, but this could be expanded depending on growth in demand. “Given current economic uncertainties, our current Asia Pacific hub structure is fine to facilitate service for our customers in that part of the world,” UPS said.
     “However, if future demand dictated a different hub situation, that's certainly something we would consider.”


     UPS flies 243 intra-Asia Pacific flights each week and 142 flights that transit the region bound for other parts of the world. Its network of airports served directly by UPS flights total 21 in the Asia Pacific, with many more served by contracted lifts.
     “Our global network is very flexible and we adjust it as a matter of routine business to meet our customers' lift demands,” UPS said.


     “Given the uncertainties in Asia in recent quarters, we have taken down some flights to match demand levels.
     “We have also added flights where it makes sense.
     “For example, last year we began flying into Chengdu to serve that growing business base.”


     In Asia, as elsewhere in the world, healthcare is one of UPS’s biggest target markets.
     The integrator opened a new healthcare logistics center at the end of May in Hangzhou, China.
     This followed the opening of three other facilities dedicated to healthcare logistics since 2011 in Singapore, Shanghai, and Sydney.
     “UPS continues to enhance our healthcare network by adding new technologies such as tracking and tracing and cold chain capabilities, more people and more dedicated infrastructure,” UPS told FlyingTypers.
E-commerce via the Internet, and now mobile computing, is also reshaping the way business is done in Asia, and UPS is positioning itself to best manage this trend.
     “Consumers in both established and emerging Asian markets are increasingly defining a marketplace of one,” UPS said. “Technology is enabling them to reach for products they could not before in ways they could not before. Someone needs to fill the gap between manufacturers and individuals ordering merchandise on their smart phones. We believe we're well positioned to do that.”
     Mr. Mangeot said one example of the integrator’s flexibility and expansion into emerging markets was evident in Vietnam in March, when UPS became the first wholly owned express carrier to operate in that nation.
     “UPS has invested in new facilities and technology in key commercial and industrial centers across Vietnam, including in the Ba Ria, Binh Duong, Hai Duong, and Bac Ninh provinces,” he said.
     “The new centers are strategically located in key business districts where there is a high demand for logistics services.
     “In fact, UPS recently hosted the U.S. ambassador for Vietnam, as well as those from Malaysia, New Zealand, and several other Asia Pac nations, to discuss developments with the Trans Pacific Partnership.
     “UPS is an advocate for free trade agreements all over the world, and we see great promise in the TPP.”
Sky King


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RE:  CAF AirPower History Tour

Hello, Geoff . . .

     FIFI was here a couple years ago. The CAF had an air show at the Millington, TN naval station. I drove out with a friend. FIFI was just taking off. When she returned 30 minutes later I walked over to be closer. I headed for the rear hatch. One of the pilots saw me and stopped me. He said visitors were allowed to climb up into the cockpit only.
     I said, “I spent 2,000 hours in the rear end of B-29s. I wanted to just have a look . . . and remember.”
He looked at me. “Come on,” he said. We went to the rear and he climbed aboard and motioned for me to follow him. I began to climb the ladder into the narrow hatch. I was amazed. The ladder and hatch entry seemed to be much smaller than I remembered. Then I realized . . . they were of course the same, but in the ensuing 50 plus years I had grown a bit larger. OK . . . more than a bit. He sat down against the bulkhead, motioned for me to sit against the opposite bulkhead, and then he asked me about my history, about my missions and about how FIFI’s configuration was different.
     I told him I’d been a senior radio operator/check airman/instructor radio operator for two years flying out of Yokota Air Base, scheduled missions over Korea; scheduled missions (Top Secret) up to Russia; and typhoon recon in season. My squadron got the first WB-50 so I was involved in that implementation. I was there from January 1954 until the end of December 1955. My last mission out of Yokota was a crash landing. From there I was sent to a squadron based at Her Majesty’s Royal Air Force Station, Burtonwood at Warrington, Lancashire. In addition to my B-29 hours there I picked up another 400 hours in B-50s and also was heavily involved in the transition to the B-50. I was the only crew member in the squadron, regardless of rank or crew position, who had any experience with the airplane.
     By now the temperature inside the plane was around 100F and both of us were drenched. We climbed out. I thanked him for allowing me to visit the rear. I then walked around to the front and climbed the ladder into the cockpit. I looked around. There was a CAF member on duty in the cockpit answering questions from “civilians”. As I was about to climb down the ladder to the tarmac he asked me whether I had any questions. I said no, none. I was simply remembering. He looked at me; he touched my shoulder and held out his hand for a shake. He said, “Thank you for your service.”
     In my entire life, after the Air Force, nobody had ever thanked me for my service. It was not something I expected nor ever sought and I was completely surprised. And I was pleased.
     I joined the CAF and was told I was now an honorary colonel. I keep waiting for my paycheck.
Lou Borok

Dear Lou,

     Thanks for writing. A fascinating story, just wonderful to read.
     Many of us can relate to the perspective change that occurs as we grow older, when everything that once was big becomes shockingly small.
     I find that it only takes a few hours of riding in my 1973 VW Kharmann Ghia convertible before it feels like I'm riding around in a bathtub.
     But there are still some sunny days left to roll down the top, crank up the Beach Boys and go non-stop, whilst reliving sweet memories, including delivering two of our kids home from the hospital—their first ride after they were born.
     Yes, “Thanks for your service,” is a surprise to hear.
     A guy named Bob situated where I buy my New York Daily News “thanked” me just a couple of weeks ago, and I, too, was taken slightly aback by those words.
     Turns out Bob won a Purple Heart for bravery in Vietnam about the same time I was playing records on Armed Forces Radio (AFRS Saigon).
     But after thinking about the words, I must admit I like being thanked as someone who loves The United States of America and, like Bob, you, and countless others throughout history, has stood up for it.
     The other day Bob gave me a copy of Army Times.
     We don’t talk at all about digital publishing.
Geoffrey



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