 “Atlanta
is a natural expansion for CAL in the USA,” Eyal Zagagi,
CAL CEO told FlyingTypers on the eve of starting up
all-cargo B747F operations between ATL and LGG this week.
“Based on CAL’s success
in JFK, where our relative market share exceeds our size of
operations versus all of our competition, CAL is ready to serve
a much greater area, offering our unique services and approach
that has worked well for us in the greater New York region.
“Until now CAL has served
ATL as an offline catchment via our JFK operation and has enjoyed
solid support from this market.
“Our strategy is to serve
not only to the big multi-nationals but also to the SMB’s,
freight forwarders, and shippers who would benefit from our
customer-centric and industry specific approach.
“Atlanta consolidates shipments
to the EU from the automotive industry, a growing pharma sector,
oil and gas equipment, and more.
“Our services are a good
fit for these industries.
“Leveraging the strength
of our GSA partner ATC, our reach in this market offers unique
options and inventive solutions for shippers in Houston, Dallas,
the Carolina’s, Florida, and elsewhere.”
Intimate
Customer Solutions
“CAL is an international
‘boutique’ cargo airline,” Mr. Zagagi said.
“That means we have flexibility
as to how we work whilst driving personal interaction with our
customers.
“Our vision is to be the
preferred choice for customers in selected markets globally,
providing dependable, integrated air cargo solutions.
“In these markets we provide
an excellent solution for existing market needs by delivering
excellent and dependable products with superb customer service.
“Internally here at CAL
we refer to our market approach as ‘customer intimacy,’”
Mr. Zagagi revealed.
“More than 65 percent of
CAL’s business is realized from pharma, fresh, oversized
consignments, added value, and also engines of various sizes.
“Each of these products
and others require comprehensive, industry specific SOPs (Standard
Operating Procedures).
“We often create unique
SOPs for specific customers/specific shipments with specific
needs,” Mr. Zagagi said.
“As mentioned, customer
intimacy is a core strategy that enables us to grow our business
and maintain relationships in all markets (‘selected market
globally’) where CAL is active, including the U.S. and
Europe.”
Growing Markets & Friendships
“We are noticing growth
in pharma, a sector with specific professional requirements,
which we can answer.
“In 2015 we invested to
have CAL and our GHS CEIV certified [CEIV is the new IATA’s
Center of Excellence for Independent Validators].
“We also see growth in transport
of large-scale engines and to that end we launched an industry
specific product called ‘CAL Engines.’
“So in 2015 CAL now transports
hundreds of engines around the world every year and has tremendous
experience with every size and type of aircraft engine.
“The benefit of our fleet,
which includes two B747Fs, has served us well, allowing for
an expanded roster of services offered,” Eyal Zagagi said.
“More freight forwarders
are demanding personal care and a reliable and trustworthy partner
who will go the extra mile for them.
“This is what we do and
who we are,” Mr. Zagagi said.
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Who
Is Eyal Zagagi?
Eyal Zagagi joined CAL in mid-2013,
having served as managing director of Keter Tools (Plastic industry).
Prior to that posting he served
as president and CEO of Surf (in the telecommunication industry).
He says he served as managing
director at a venture capital fund and was president and CEO
of a software company in the 3D space content, and also held
senior leadership positions with Elbit Group and HyNEX (acquired
by Cisco).
Mr. Zagagi holds an MBA from the
University of Dallas and B.A. in Computer Science from the Technion–Israel
Institute of Technology.
He terms his venture into air
cargo a “pure coincidence,” adding quickly:
“At the end of the day I
believe that management of a business is all about managing
people, tasks, and strategy.
“After two years in this
industry, my opinion is strengthened that a wide variety of
experience is no less important than decades of experience in
one specific industry.”
“In the air cargo industry,
this concept of ‘industry background’ is highly
overrated,” he insists.
“For long term viability
the air cargo industry needs to value drive, passion, creativity,
and a wide and deep range of managerial experience.
“I have learned a great
deal from some of my mentors in the variety of industries in
which I have worked.
“There are two main factors
that inspire my view with regards to CAL:
• The level of service that the courier companies provide
their customers.
• Every company must be unique and find its competitive
edge.
“I believe that CAL has
found it and needs to deepen it and adhere to it.
“I believe that bigger companies
may have difficulty competing with us and therein lies our unique
opportunity.
“As mentioned, CAL will
only deepen our level of customer intimacy, whilst providing
total transparency to our entire offering of vertical products.”
The
Industry View
Mr. Zagagi offers an outsider’s
perspective on air cargo, with ideas brought forward as a life-long
manager who now stands at the helm of a growing international
air cargo resource.
“The air cargo industry
still has a large, unfinished challenge to implement e-freight.
“If passengers can fly with
an electronic ticket, there is no doubt the cargo can and will
do the same.
“It is just a matter of
time, but this industry appears to be quite conservative.
“Also, air cargo airlines
must improve the cool chain and the overall solution the cargo
industry provides for time & temperature sensitive cargo.
“Compared to the impressive
progress and improvements made in sea-cargo, the aviation side
still has a long way to go.
“We need to simplify the
process of import/export by air.
“Shortening the length of
door-to-door delivery is a must to strengthen the competitive
advantage of air cargo over sea.
“More three-way communication
between shippers, forwarders, and airlines to improve the solutions
provided to the shipper are also needed.
“The key element is understanding
the customers’ needs and providing the optimal solution.
“This awareness is growing
in the pharma segment and is showing good results to all stakeholders.”
CAL
& Israel
“CAL is a global player,
with its hub and center of gravity in Liége, Belgium.
“The misconception is clearly
the fact that CAL is attributed to the Israeli market.
“Indeed we are a big player
(biggest cargo freighter player) in Israel, but all the rest
of our activity and all of CAL’s expansion comes and will
continue to come from other global markets and we’ll continue
to develop Liege as our hub.
“Our new Atlanta operation
is exactly in line with this strategy and we recognize that
increasing CAL’s overall business will reduce the share
of the Israeli market in the CAL orbit.
“Israel is well known for
innovation and entrepreneurship and although CAL has grown into
a European-based global company, we proudly maintain these core
values,” Eyal Zagagi said.
Geoffrey
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