esterday November 21st, 2013, Magdeburg/Cochstedt Airport opened their Logistics Center with local hoopla.
So naturally, the first question is:
Where is Magdeburg/Cochstedt?
And, more importantly perhaps, “do we have a knowledge gap not having Cochstedt on our proverbial radar?”
     There are a number of factors to be considered when deciding whether or not Magdeburg – Cochstedt (IATA COC, ICAO EDBC) will ever get off the ground.

     Magdeburg/Cochstedt airport is located 35 km (22 mi) southeastern of the city of Magdeburg (population: ~230,000) in the State of Saxony-Anhalt.
     During the prewar era and during the reign of the communist regime until 1989, Magdeburg was a traditional center of machinery manufacture and construction, one of Germany’s export strongholds.      However, because of the communist system of production with its limited access to technology and funding, many of these traditional machinery manufacturers in post communist times could not remain competitive in the reunited Germany and thus were not able to survive.
     While Magdeburg has in the last few years enjoyed some success in regaining new businesses, both in service and production, it is still a long way from being a boom region, especially when judged against the states of Hesse and Bavaria.
     Subsequently, the average disposable income is much lower compared to that in the former “western” German states.
     For example, the biggest employer in the state of Saxony-Anhalt is the German Railway company DB, followed by a chain of residential supermarkets called “Edeka.”

     So the question might be: does Saxony-Anhalt need an airport at all?
     Although COC prizes itself, correctly, for its convenient locations close to German motorways and high speed rail access, there is still not a great demand for passenger or cargo.
     Think about it—with LEJ just 110km away, FRA 390km away, and PRG a mere 360km away, is another airport needed?

     Nevertheless, factors such as demand for goods and services or economical viability have rarely ever bothered German politicians when they both want to erect themselves a legacy monument in concrete and deliver in whatever way possible on vague promises made during election time.
     It is especially true in former Eastern Germany, where local bigwigs were, more often than not, used to the socialist approach of creating “property of the people,” rather than the western approach of “let’s make sure the numbers make sense.”

     COC, founded in 1935, was first used in 1936 as a small regional airport.
     Having been used by the Soviet Airforce since 1945, in 1954 COC became a major Warsaw Pact military airbase and was subsequently retrofitted for Warsaw Pact airlift requirements in 1964, its first use for what nowadays is called “logistics.”
     Having become obsolete as a military airbase after the retreat of the Soviet troops in 1989, eventually civilian use was envisioned and COC was granted a 24-hour airport operating permit in May of 1994.
     The facilities, in particular the apron, taxiways, runways, and control tower, turned out to be of questionable standards; worn out and unfit for use, the airport was closed between November 1997 and February 1999 for reconstruction.
     The COC airport was equipped with ILS and a lighting system, which permitted CAT I operations in 2000, and one year later, new facilities for the airport fire department followed and construction of a new GAT building was begun.
     These investments, however, did not result in any notable business, thus forcing the airport operator into bankruptcy on December 31st, 2001.
     All leased handling equipment and vehicles were returned to the lessors.
     Although the economic outlook and the associated commercial prognosis had not been proven, another attempt was made in 2006 to get COC airborne.

     Again, the town of Magdeburg (which was the sole shareholder of the FMG Corporation operating the airport and has to absorb its losses) took their chances and reopened COC, lured by the promise of Ryanair, the European LCC beginning commercial flights from there (of course, if only the charges were low enough).
But the truth is, without passenger demand at COC, Ryanair passed on the gateway.
     Since the state of Saxony-Anhalt was in dire financial troubles itself, subsidizing such traffic (as had been done it the past) was no longer an option, and without a subsidy Ryanair went elsewhere.
     After an attempt by a U.S. investor did not pan out in 2006, and the same with an investor from Abu Dhabi in 2008 who actually signed papers and bought COC but never paid for it, the airport premises were sold “as is” to their current owner, Danish firm Airport Development A/S in March 2010.
     A/S, it should be mentioned, currently operates two other regional (eastern) German airports.
     In any case, A/S got the package for 1. 5 million Euro.

     In Spring 2011 LCC Ryanair did start service to a few popular holiday destinations.
     Plans to re-name the “Magdeburg/Cochstedt International Airport” to something grander like “Airport Berlin- Magdeburg International” were scrapped by the state court in Berlin in late 2010, because COC would have been the fifth airport in BER—in addition to existing airports Tegel (TXL), Schoenefeld (SXF), BER, which was already in construction, and traditional Tempelhof (THF), which was about to be closed.
     The Berlin moniker did not fly after somebody looked at the map and noted the distance of about 200km (125 mi) did not really position Magdeburg anywhere near Berlin.
     The airline CSO City Fly (which never had any kind of AOC and operated flights based on chartered aircraft, subsidized by the airport company) offered a COC-Munich connection from December 2011 until June 2012.
     But these flights had to be cancelled, as well as some Germania flights because of lack of demand.
     The much-advertised 2012/2013 winter schedule flights by Germania at COC are just charters operated on behalf of local travel agents twice a season.
     For COC to be viable even in the passenger sector would require about 425,000 passengers annually; in fact, only 76,000 actually departed from or arrived at COC in 2012.
     Cargo wise, a small number of charters had been operated and some local firms were attracted because of the newly erected logistics facility on the airport premises, apparently at cut-rate charges.
     While this is certainly success on a very small scale, it must be underscored that the Danish proprietors were without question more successful than the previous stakeholders
     This said, the corporate business reports available to the public indicate COC delivered 1.4 million Euro and 2.6 million Euro debt for 2010 and 2011 respectively, while (projected) 2012 figures are said to exceed 3.5 million Euros.

     Ideas to establish COC as a center for air transport training and excellence, as initially advertised by the operator, seems to not have materialized; it is both hard to see where the trainees can be trained, where they would come from, and where such an enterprise would actually make sense.
     Quoting from COC’s logistics facility inauguration party invitation:
     “With guests from the politics, corporate and media sectors, the big event is now imminent! The 1,000m_ freight hall with security and screening technology and storage facilities will be opened!”
     And it was opened yesterday.
     “Lots Of Luck,” is all we can say.
Jens

     The slow-moving economy has not deterred DB Schenker Logistics (India) from going ahead with its plans to expand in the country.
     A group company of the €39-bn Deutsche Bahn Group, Schenker is all set to grow its footprint by 70 percent, according to Reiner A Allgeier, Managing Director.
     One of the leading providers of integrated logistics services in the country, DB Schenker Logistics (India) offers a complete range of international air and ocean freight, contract logistics, and global supply chain solutions from a single source. With 37 offices and more than 53 warehouses, Schenker India seamlessly serves its customers from any part, at any time.
     A Schenker veteran, Allgeier joined the India office in August 2012 and has been responsible for the expansion drive; he is looking forward to its completion, despite the slowdown in the Indian manufacturing sector.
     Speaking about business, Allgeier said that the “business environment is rather challenging. I believe that this challenging environment will continue for some while—at least until the middle of next year.”
     One of the major reasons for the “challenging environment,” he pointed out, was the fact that there had not been “the (kind of) growth which the Indian economy had earlier… now, we have the devaluation of the Rupee which is, of course, impacting import activities very much. It is a bit stimulating for export activity but it cannot really outbalance or balance the effect it has on imports. So, cargo movement—be it air freight or ocean freight or vice-versa import-export—is under pressure.”
     In such a situation, pharmaceuticals have been doing well. “However, in the pharmaceutical vertical, there are other constraints in terms of transportation, temperature control, etc., which also puts an additional requirement on organizations like us. We have not focused very much as an organization on the healthcare vertical in the past, but we have started doing that last year as an organization and are presently building up our capabilities for that vertical,” said Allgeier.
     Forwarding is only one part of DB Schenker’s business. “It is warehousing that is a very important portion of our business, with 37 logistics centers around the country.” This year, Schenker has increased its footprint in terms of warehousing; it started the year with 120,000 sq. meters of warehouse facility and by the end of the year, it will have 200,000 sq. meters.
     “That is an increase of about 70 percent and this will continue for the next two years. We are right now planning a big facility outside Mumbai, which will have a capacity of 40,000 sq. meters. This is a fully Greenfield project, which will be built new for us by an investor. We will have a long-term lease of 20 years and this will be built fully as per our specifications,” said Allgeier.
     The Schenker MD also spoke about a separate product that it is offering: Customs Clearance. “We are one of the few multinational global logistics providers offering customs clearance within their own portfolio. Our international competitors often outsource their customs clearance to a local broker.
     “We (at DB Schenker) have decided that it is better for our complete offering to our customer to give this (Customs Clearance) in-house because one of our strengths is that we can offer to a customer the total supply chain.
     “So, from the pickup from the supplier—be it in Europe or in the US or anywhere—up to the doorstep of the consignee here in India, we can provide the whole service. There are not so many who can really do the complete supply chain.”
     All these services will enable Schenker to handle “about 80,000 tons of air freight import-export: 60 percent of that will be import and 40 percent will be export. If you break it down, it is something like six-and-a-half to seven thousand tons a month.” Allgeier’s goal for next year is to go to 100,000 tons, which would mean a growth of more than 25 percent.
     “It is a challenging target to reach, but it is not impossible. With a present growth in air freight of 1-2 percent, if we reach 15 percent growth, it would be very good. But the target is to reach 100,000 tons next year,” said Allgeier.
Tirthankar Ghosh

     We have lived for 50 years now with the memory of that terrible day in Dallas—November 22, 1963.
     Just barely a month after the tragedy, IDL (Idlewild Airport) in Jamaica, New York, was renamed JFK (John F. Kennedy International Airport), and a chance picture was taken on Christmas Eve, December 24, 1963, as a still grieving Robert. F. Kennedy obliged a photographer in between flights at the nearby FBO at JFK.

     IAG Cargo is expecting to see resurgence in exports from key source countries in Asia this quarter.
     The merged British Airways-Iberia carrier posted an 8.3 percent decrease in revenue in the first half of 2013. Volumes fell by 8.4 percent year-on-year and yields were flat with much of the losses accrued by Iberia’s operations, a trend that continued over the summer.
     However, despite a tough year, John Cheetham, Regional Commercial Manager Asia Pacific & India, is expecting an uplifting end to 2013.
     “With many countries across the world only now seeing the first resurgence of consumer demand, it is still difficult to predict how volumes will react in the future,” he told FlyingTypers. “That said, we do expect to see an increase in export cargo volumes from China and Hong Kong in Q4, as this is traditionally a buoyant period for consumer goods due to Christmas and other festivities.
     “Additionally, a number of major technology brands are on the verge of launching new products and we expect that this will lead to a good spike in export volumes from manufacturing bases in Asia.”
     His views are supported by the latest data from China, where purchasing managing indices indicated that new export orders rebounded in September as firms replenished stocks.
     Cheetham said signs of economic recovery in Europe, where he expects improving consumer demand, were encouraging. And, with IAG taking steps to boost customer awareness, he said Latin American markets were also cause for optimism.
     “As clients become increasingly aware of our ability to seamlessly reach almost any point in LATAM, the opportunity for new markets or faster delivery times has certainly resonated with our customers,” he said.
     “With the pickup in consumer demand we expect that the fashion garments and consumer electronics industries will do particularly well and air freight will be able to offer them a fast route to market, allowing them to effectively manage their inventories as economies recover.”
     Cheetham also predicts greater uptake of IAG’s premium cargo products in the final quarter as these orders come to market. “Our express product Prioritise and our life sciences product Constant Climate are both benefiting from these factors,” he added.
     Although exports from Europe into Asia have declined recently, IAG is “still seeing commodities such as machine parts being shipped to Asia as the manufacturing base in Asian emerging economies continues to grow,” he said.
     However, the overall East-West market remains affected by excess capacity, which in the last handful of years has been exacerbated by the Eurozone crisis and its consequent impact on consumer confidence and trade volumes. “Today, we are seeing some positive indicators in both European and Asian markets and we are looking to capitalize on this. For example, our new Chengdu service was launched on September 22 to support Chengdu’s flourishing manufacturing sector,” he said.
     “We are also increasing capacity to Hyderabad to support the thriving pharmaceutical industry that the airport serves.
     “As a business, we are keen to provide capacity on routes with the best potential for growth and which best serve our existing customer requirements.”
SkyKing

   Maybe it’s that time of year, or perhaps it’s because of a recent meeting at Shannon Airport (which included IATA, whose attendance was reported by the Irish Examiner as having shown up to talk about cargo “for the first time since 1980”), but once again officials at the Irish airport are calling for a Shannon cargo gateway.
   Patrick Edmond, Managing Director of the Shannon Group’s International Aviation Services Center, said IASC sees potential to develop Shannon for cargo.
   Edmond spoke in front of an audience of 350 attendees at the Strand Hotel.
   Unfortunately, none of this is new.
   Shannon said it had a deal to create a cargo hub in 2011 with Lynx, which came on like gangbusters and then apparently died a horrible death.
   But apparently IATA showing up every 33 years or so can grab a headline.
   Maybe IATA should try St. Louis next?
   Shannon should talk to our Special Commentaries Editor, the timeless Richard Malkin.
   Malkin at 100 years old remembers it all, including his roaring sixties, when he wrote about, advised on, and actually put Shannon Airport on the map.
   Richard was later honored by the Irish government.
   The point of all of this is that dreaming is all right, but doing is always a horse of a different color.
   Your move . . .

arlier this month Singapore’s Changi Airport Group announced it had broken ground on the construction of Terminal 4. Designed to take self-service and automated operations to a new level, but also to echo the city-state’s rich history with its use of cultural shop fronts for retail stores (see pic), T4 will no doubt be realized with CAG’s customary efficiency and panache.
Innovation at Changi is nothing new; the airport is almost a tourist attraction in its own right due to its unique ability—at least among major global airports—to soothe stress rather than create it.
     But T4 is not the only new project at Singapore designed to draw visitors and enhance their experience, it is but one of a plethora of architectural and leisure enticements. Recent additions include a full-sized soccer pitch/outdoor stadium, which floats on Marina Bay, the tantalizing Avatar-style ‘Gardens by the Bay’, and the stunning, maritime-themed Marina Bay Sands hotel. Next up for architecture lovers is a new national stadium due to open next year for the Southeast Asian Games; in design, it looks like a sporty remodeling of Sydney’s famed opera house.
     All of these new attractions are easily enjoyed by those willing to find a suitable vantage point—perhaps funky Ku De Ta, the roof top bar of the Marina Bay Sands, the even higher 282-meter 1-Altitude with its 360 degree views, or the Singapore Flyer, Asia’s answer to the London Eye. From any of these platforms the view of the city’s gleaming new baubles is stunning, enhanced by the backdrop of hundreds of ships loading bunkers or waiting to enter PSA’s container terminals, a reminder of why Singapore was a major pull before its ambitions took a vertical lilt.
     Amid all the shiny, young things and endless malls there remain beautiful examples of Singapore’s colonial past, best found in the forms of the 1849-built National Museum of Singapore, and Raffles Hotel, home of the famous Singapore Sling as well as one of the most expensive places in the world to buy a beer.

      No, there is no wishing well at the Singapore Perak Hotel as suggested in that Rogers & Hart lyric.
     But there is an oasis of calm and sweet melancholy in the ever-upward world in which Singapore embraces modernity.
     Here the casual visitor can reconnect with their senses, while Singapore's loveliness is often lost in a sterile type of beauty, like music with no soul.
     FlyingTypers visited Little India during our recent FIATA visit.
     Traffic on the inner streets of Little India is minimal and everywhere you turn there is something new to explore.
     The bustle of workers returning home, the multitude of shop houses selling bric-a-brac and household goods, the smell of naan bread and roti drifting from the ovens of street vendors, and the beats of Bollywood blaring from record shops—a hypnotic barrage of the senses.
     The highlight for FlyingTypers was our stay at the beautiful Perak Hotel.
     Although located just a hop, skip, and short jump from Asia’s electronic hub at Sim Lim Square, it is secluded and quiet, except for the sound of morning prayers drifting up from the nearby mosque.
     By the standards of modern Singapore the building is old, dating back to the 1950s. But in a sign that Singapore’s progressive, but rather proscriptive, government is not entirely addicted to white-washing the past, the building is under conservation order, which means changes to the exterior are not allowed.
     Indeed, when the Perak’s family owners decided to renovate the interior, they were also encouraged to retain as many original features as possible, including its fabulous timber floorboards, something they have achieved, and with a little élan.
     “My husband bought this building in the 1990s,” the engaging Jessie Tong told FlyingTypers. “It was a bit rundown and we had a lot of work done. The blue timber windows are as they were back then.
     “Because we travelled a fair bit, we realized that there were very few Bed and Breakfast type hotels in Singapore. Thus, we decided to go into the hospitality business in 1995 with the B&B concept and to cut out the frills.”
     This makes for a very relaxed and friendly stay. Breakfast is simple, but ample, with coffee and tea available throughout the day free of charge.
     “We are rather proud of the old look,” said Jessie. “We try very hard to present the hotel as an Asian-styled one. Most of our guests appreciate the history and culture, although some do not!
     “But we believe we are located in a wonderful ethnic neighborhood of Little India and this makes us special.
     “The building is detached and not connected to any neighboring shops. Again, this type of building is unique. If you walk around Little India, you will see very few solo buildings. Most of them are shop houses.”
     Next to the Perak Hotel is one of your author’s favorite street side curry houses—the Shahi Kitchen, which produces beautiful breads accompanied by a long menu of exotic south and northern Indian foods.
     So readers, if you want to get away from the high-rise hotels and shopping malls of Orchard Road, there are alternatives. And if you need a last injection of opulence and consumerism before departure, the world’s most enjoyable airport is ready and waiting to slake your thirst.
Sky King

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