Vol. 12 No. 98                                                                                                                                         Monday November 18, 2013
#INTHEAIREVERYWHERE 
THE AIR CARGO NEWS THOUGHT LEADER  




air cargo news for November 18, 2013

abil Sultan, Emirates Divisional Senior Vice President Cargo, walks into the meeting room atop the carrier’s busy hub at John F. Kennedy Airport in New York.
The place is neat, organized, and with everything in place; there are no loose ends.
     Emirates, which apparently rules the sky, also casts its spell down on the ground in its air cargo transfer facilities. They are precise, busy, and well organized. Even the coffee break room has six different flavor choices for the morning break.
     It is a mid-Autumn day, bright and blustery, and Mr. Sultan—who is tall and distinguished—gives us an hour in between customer calls and a jam-packed whirlwind visit to Gotham, a key Emirates address.
     It has been just five months since Ram Menen put down his sword and retired, and the first words on record from Nabil Sultan are thanks “for what Ram built and the amazing team spirit at SkyCargo.”
     Nabil is the new face of leadership at SkyCargo.
     Born in Dubai, and educated in Dubai and the United States, Nabil holds a Bachelor of Computer Science and Management Information Systems from the University of Portland, Oregon.
     Nabil smiles and admits loving “every day it rained in Portland after a life in the desert.”
     Nabil Sultan looks comfortable in his clothes and apparently is enjoying the ride of his life.
     That said, Mr. Sultan, who is bright, in touch, with slightly graying hair and a straight and level gaze, leaves no doubt when he says softly:
     “Now we will carry things further.”


     “I was immediately aware and surprised at the overwhelming amount of paper it takes to move air cargo.
     “Especially coming out of the passenger end of the business, where the migration from paper has been swift and complete in many aspects of that business.
     “No doubt the complexity of the air cargo industry can only be better served by streamlining processes, taking cost out, and adding value for the customer.
     “But much can be realized by making every effort toward a paperless environment.
     “Of course I learned at several smaller stations coming up in this business, in many respects when it comes to change and dealing with government agencies and bureaucracy, we still have a long way to go.
     “My take is that we have to change the cargo mindset with respect to paper.
     “When that happens, the mountains of documents will go away.”


     “In many ways,” Mr. Sultan says, “no matter how you approach it, Emirates is an inspiring airline.
     “We offer the trading community a very efficient global resource that constantly translates into direct value to the customer.”
     Although he is new to air cargo, Nabil knows full well how to airline.
     He began his career with Emirates in 1990 in the IT department, and three years later joined the company’s management training program in the commercial department.
     “I liked the IT end of the business and knew IT full well, but simply prefer working with people.
     “I was able to get into management training at EK at the suggestion of a friend, and am forever grateful that happened.”
     Nabil notes that for most of his career at the carrier, he has worked his way up, moving from post to post and always accepting new challenges and more responsibilities in various management and leadership roles, both within and outside the UAE.
     Nabil has served as Senior Vice President for Commercial Operations West Asia and Indian Ocean; Senior Vice President, Commercial Operations Gulf, Middle East and Iran; and Senior Vice-President Operations for Europe.
     In 2009, Nabil was promoted to Divisional Senior Vice President, Revenue Optimization and Distribution (Passenger) for the carrier.
     “Revenue optimization is a fascinating endeavor and made even more so at Emirates.
     “In fact, year to year as we added destinations and aircraft, the activity and growth added up to creating a whole new airline every 12 months.”


     “I’m excited by the opportunity to further develop and expand the cargo division, to go into uncharted territory and deepen our presence in Latin America, Africa, northern Africa, and elsewhere, building an ever expanding business.
     “Emirates SkyCargo will continue to grow our network, provide solid uplift, generate volume, and deliver the best value for money available anywhere.”
     Nabil Sultan is also interested in partnerships and has especially been impressed by the cooperation that has developed great results for Qantas and Emirates.
     “The Qantas partnership is unique, seamless, and has enhanced value for each of our airlines and for the public as well.
     “We enjoy domestic openings in Australia, and Qantas has benefitted from our global system as well.
     “I expect that based on our success this activity will widen with others as time goes on.”


     Although he expects to be on the road visiting stations for some time, in addition to being out on the hustings, greeting customers as well, Nabil Sultan is also gearing up for 2014; he predicts it will be an exciting year for Emirates SkyCargo.
     “We are migrating our freighter operations—and increasingly our cargo business—to the new Dubai World Central International Airport and will provide bonded road connections and dedicated interface between all flights and DWC in May 2014.
     “Already cargo companies are at DWC, including forwarders, and other infrastructure is in place as volumes continue to build via the UAE gateway.”
     “Two weeks ago the passenger business opened at the field with more to come as the gateway takes shape as an LCC address.”
     Asked which trade shows he is thinking about for 2014, Mr. Sultan says:
     “Intermodal South America in Sao Paulo in 2014 holds the promise of drawing the spirited growing cargo business in Latin America.
     “From our vantage point, we will continue to grow strength to strength and be in the center of the action, wherever we fly,” says Nabil Sultan.
Geoffrey/Flossie



   Emirates’ bought another 50 A380s at the Dubai Air Show that opened Sunday.
   With 140 firm orders, Emirates now holds almost half of the total order book for the type and more than half of the backlog.
   Boeing officially unveiled the 777X with 259 orders from four airlines.
   Emirates Airline once again stole the show and grabbed the lion’s share of the contracts with firm orders for 150 777X, plus purchase rights on a further 50.
   Qatar Airways and Etihad Airways also showed up in the order book with 50 and 25 respectively.
   Lufthansa’s earlier order had led the way for 34 777-9X.
   All told, B777X is the biggest sales launch in the airplane builder’s history.
   Now it’s up to Boeing to deliver and not have a repeat of the B787 fiasco.
   A big part of the B777X getting aloft will depend on its new composite wing.


Last week FlyingTypers reported on a worldwide exclusive that Fraport Cargo Services GmbH was reportedly selling 49 percent of itself to Dnata; this news was denied in a FCS customer letter obtained by FT and dated November 12.
     “An online newsletter has reported today that our 100 percent shareholder Fraport has sold a minority share of Fraport Cargo Services (FCS).
     “This information is not correct.
     “It is a fact that Fraport is intending to talk to potential buyers. Fraport’s aim is to further strengthen the cargo hub Frankfurt, the cargo business as a core competence within the group and FCS Fraport is planning to hold the majority of the company also in future and to accompany FCS’s business as usual.
     “Of course you will be informed about possible new developments as soon as possible.
     “We also ask for your understanding that we are currently not in the position to provide you with more information.
     “We as FCS appraise this development as a chance to provide you with enhanced services in future and to create more value for you as our customers and for Frankfurt Airport.”
     Apparently whilst a minority interest of FCS is for sale, the deal is not quite done.
     Obviously the letter wants to make clear that FCS will remain a part of Fraport, but nobody has said otherwise.
     Our sources insist that a 49 percent stake is going to be sold, and to Dnata.
     Perhaps as our story appeared, the Fraport decision had not yet been reported to other interested parties?
     Stay tuned.

 

hen IAG Cargo (British Airways and Iberia) announced in the middle of October this year that it opened the Constant Climate Centre for pharma products at London Heathrow airport, the industry in Hyderabad took notice.
In addition, IAG Cargo also increased flights between London Heathrow and Hyderabad.
From October 27, 2013, the number of flights rose from six to seven a week.
     The route saw capacity increased by 50 percent with the introduction of the larger B777-200, a model that increased cargo capacity to six pallets, up from the earlier four.
     The introduction of the additional flight, according to John Cheetham, Regional Commercial Manager for Asia Pacific and India at IAG Cargo, was “excellent news for businesses in Hyderabad, offering customers more cargo space and schedule flexibility than ever before.”
     He went on to point out that businesses in Hyderabad were always looking for ways to connect their production facilities with markets across the globe, and this was “the first step in providing consistent, year-round coverage for this key market and offering our customers the level of connectivity they require, helping to fuel India’s pharma boom.”


     “The pharma business will go a long way to help IAG hold yields in a weak cargo market,” Pravin Singh, Area Commercial Manager South Asia, IAG Cargo, told FlyingTypers.
     “We see pharma shipments flowing through our network, rather than just terminating in London.”
     Singh mentioned the launch of the Constant Climate Centre in London, “to ensure that terminating and transiting pharma shipments are kept in the optimal conditions, but a large percentage of shipments will then flow onto Europe, Africa, North America, and Latin America.”
     He emphasized: “IAG Cargo has the world’s largest transatlantic network into North America and Latin America, and that makes us a very attractive proposition for pharma movements.”


     Boosting pharma exports, the Hyderabad airport has improved facilities.
     Comparing the Pharma Zone in Hyderabad with similar facilities, Singh said that the “Pharma Zone in Hyderabad offers a world-class facility to freight forwarders and pharmaceutical companies.
     “This activity has supported the huge growth for pharma in India, and IAG Cargo has doubled exports from India to the rest of the world on IAG Cargo aircraft between 2010-2012.”


     Pravin Singh also mentioned proper infrastructure would help the cause of air cargo in the country.
     He said:
     “As India continues to grow, the air cargo industry will need to respond with infrastructure investments. But airports also need to grow. We have already seen huge improvements in the cargo facilities available at airports including Bengaluru, Delhi, and Hyderabad. Such investments will help India improve on its already enviable position.
     “The growth in Chennai and Mumbai,” he emphasized, “expectedly put pressure on existing infrastructure.
     “More needs to be done to connect small town India and the manufacturing hubs via an aligned Customs regime and road network into the main international gateways.”
     He was quick to point out that “the 24/7 Customs coverage announced at a few airports in the country is a step in the right direction.
     “We would welcome implementation of this in other major airports such as Chennai and Mumbai,” said Singh.
     “The India growth story would gain significantly from improved infrastructure, allowing faster movement of goods to and from airports and allowing diversification from a traditional business model.
     “And as far as IAG Cargo was concerned, it was committed to the Indian market and we will continue to make investments in capacity and frequency—as required—to help support businesses in the region.
     “We will continue to work closely with Indian business in order to provide vital connections to global markets and help fuel growth for all concerned,” said Singh.
Tirthankar Ghosh



Click To Read


     There was no way The International Air Cargo Association (TIACA) could unceremoniously dump local Miami icon Daniel Fernandez, after he served the organization for 14 years, without raising some attention at last week’s ACA in Miami.
     Remember, prior to joining TIACA, Daniel headed up The World Trade Center of Miami, which today hosts the biennial Air Cargo Americas.


     The TIACA fiasco was last week’s conversation.
     It’s hard to tell what lies ahead.
     From what we can gather, the TIACA Board has yet to come to any final resolution with Daniel, and we hear TIACA is still in the crosshairs of a lawsuit.
     It should be difficult to move forward under that cloud. People wonder how much longer the soap opera will continue.


     According to sources, there is very little enthusiasm for ACF 2014 in Seoul.
     The downturn in the air cargo industry coupled with an expensive remote location is proving a tough sell for the young, inexperienced TIACA staff.
     “It might be a good time to at least get a discount,” was one remark we heard.


     For the record, TIACA’s ousted Secretary General Daniel Fernandez was re-elected in April 2014 for a two-year term, and then canned six months later.
     But beyond all of that, the loss of the old reliable Sec. Gen. means ACF 2014 exhibitors “may have been given a false impression of TIACA’s commitment to the ACF,” according to one source
     “It was a shock, (to say the least) to the host, Incheon International Airport.
     The Incheon bid was in some part (we are told) based on “confidence in Daniel’s many years of success managing the ACF, so his quick departure was a nasty surprise.”


     We also were told “TIACA can’t expect busy executives who have their company’s survival in their hands to dedicate the same amount of time to running the association that Daniel did.
     “Daniel brought along the stability at the secretariat to do things that mattered.
     “With him gone, TIACA has lost years of experience and continuity.
     “This, coupled with a young, inexperienced staff headed by an outsider with no history in TIACA could be a recipe for disaster,” a source said.


     Rumor has it that TIACA is in disarray.
     The current leadership is preoccupied with policy issues, which can’t be measured and make no money.
     “With no stability in the commercial side, how long can TIACA’s funding hold out?” people are wondering.
     “Why didn’t the blueprint to get rid of Daniel have a plan for an orderly transition?”
     Stay tuned.



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     A Saudia Cargo full charter departed Dubai World Central Airport on Tuesday evening and arrived in Cebu on Wednesday November 12 carrying aid to the typhoon-stricken area of the Philippines.
     The emergency relief flight carried tents, kitchen equipment and hygiene kits.
     Steve Manser, Director-Charter Sales at Saudia Cargo reports:      “We have fixed a total of four relief flights to Cebu so far and anticipate operating more flights moving ahead.”





     Here it comes, via Lufthansa, Air France/KLM, and of course many others—that time of year when cargo flies Beaujolais Nouveau to wine lovers around the world.
     This happens every year and the rules of the game are quite specific:
     The new wine may not be enjoyed before the stroke of midnight on the third Thursday in November.
     It’s time to count down to corks popping all over the world this Thrusday November 21.
     But just make sure the new wine is on its way.
     In many locations, from Tokyo to Timbuktu, the word is:
"Le Beaujolais Nouveau est arrivé!"


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