Vol. 9 No. 135                                                  WE COVER THE WORLD                                   Wednesday December 15, 2010

 

     Felix Keck is tall and smart and looks in shape; he possesses a kind face that breaks into a smile that feels instinctual no matter what he is talking about.
     His appearance and manner seem to go against the accepted profile of a computer geek—insular and bright, glued to a key board and always in search of the next big program breakthrough.
     But as CEO of Frankfurt-based TRAXON, where he operates from an ultra modern office complex with windows that overlook both a small, peaceful forest and the main runways at Frankfurt Airport offering constant take off and landings, Felix Keck commands one of the more varied and powerful air cargo IT systems in the world today.
     Although Felix lauds almost everything about air cargo, he admits that when it comes to mandated cargo security disciplines coming down from lawmakers around the globe and the move toward paperless cargo and e-freight, many people will usually wait until the last minute before moving toward compliance.
     Whether the waiting is due to procrastination, or for the other shoe to drop, or just human nature is left up in the air.
     TRAXON began in 1991, when Air France, Lufthansa, Cathay Pacific and Japan Airlines launched a global communications system with the aim of facilitating the exchange of information between airlines and cargo agents.
     The result was – for the Western Hemisphere – “Global Logistics System Europe Company for Cargo Information Services GmbH,” operating under the trademark TRAXON.
     TRAXON India and Global Logistics System Asia Pacific complement the group.
     TRAXON Europe headquarters are located in Frankfurt am Main, with an additional office in Paris. TRAXON India –a joint venture of TRAXON Europe with an Indian partner – has its headquarters in New Delhi, with offices in Bombay, Bangalore, Calcutta and Chennai. Global Logistics System Asia Pacific has headquarters in Hong Kong, with additional offices in Seoul and Tokyo.
     Today, the TRAXON network links partners around the globe.
     More than 90 airlines and 3,000 forwarders with approximately 9,000 offices are currently connected to the TRAXON network.
     But to Felix Keck, who moved over from Lufthansa, the TRAXON mantra is straightforward.
     This is one company in the right place at the most opportune time, as he declares:
     “The industry is well on its way to paperless airfreight communication.
     “The key to success is to focus on the e-process.
     “This year, 2010, has been a good year.
     “We will increase our messages from 144 million last year to 157 million by year’s end, up 9 percent as one performance indicator of how we are doing.

  

     “Looking back a few weeks ago, we are stunned (in retrospect) at the shear amount of new products we launched in 2010.
     “In fact, we cannot recall another year where TRAXON brought so many products to market.
     “The TRAXON new product surge began with eCargo Pouch, which was announced last January.
     “Next, we knew that European import customs filing was coming, so we launched our customs product and currently have 15 airlines utilizing our solution.
     “But our reach goes even further, as TRAXON has launched solutions for Nigeria Customs and South African Customs in 2010 as well.
     “TRAXON also debuted ‘Air Waybill Data Capture’ in 2010, which gives forwarders a web-based opportunity to send data to our system that in turn allows airlines to rapidly access and act upon the data.
     “While these products are new and innovative, each one is building audience every day.
     “For example, eCargo Pouch acts as a tool for e-freight that has varying and different deadlines depending upon who you are talking to.
     “But I think adding lack of consequences to vague deadlines has been a real deal breaker for implementing widespread air cargo e-freight.
     “Also, the varying systems have caused some confusion.
     “What we have done at great effort has been to forge a single platform agreement between the systems of TRAXON Europe, Cargonaut (Netherlands) and Cargo Community Network Pte. Ltd. in Singapore.
     “Our agreement to join hands and align one product globally offers air cargo one system for Asia, Europe, Africa and America.
     “It also allows us to share costs and advance technologies together while developing a single application that is easily accessible by everyone in transportation.
     “What we have done is offer a global solution instead of a local one and we think that is a key solution to moving e-freight forward.
     “When you look at it, there are not that many systems offering e-freight.
     “The challenge is that e-commerce systems are either local or attached to one carrier.
     “We are hopeful that our offer is regarded as a viable industry solution to move e-freight into wide spread global usage.
     “The ongoing challenge is the divided nature of a business that moves cargo between airline, forwarder, shipper, consignee, warehousing and trucking.
     “But now everybody, no matter what IT they may feature, can utilize our system to get on the same page.
     “Here is how it works:
“Normally, as soon as he books a shipment, a forwarder can open an electronic pouch, adding whatever documents that need to be connected to the shipment (declaration, invoice, etc.).
     “The forwarder then gets an authorization code that can be made available to any other party the forwarder chooses, thus enabling partners to access the information they need.
     “The big challenge to all of this is the ongoing question of who pays for the service.
     “The forwarder greatly benefits, avoiding manual input problems, fax or mailing costs and everything else connected to paper.
     “There might be ten pieces of paper, three faxes and other costs for just one shipment.
          All of this increases costs and decreases efficiencies.
“TRAXON believes it is time to go 100 percent electronic, because in the long run efficiencies improve and costs come down, driving profits up.
     “When I think about it, during 2010 e-freight may have been a bit overshadowed by Import Control Systems (ICS) mandated January 1, 2011 by European Customs, but we are hopeful next year that will change.”
     We asked Felix Keck if right now he might be feeling a bit of frustration after having made major investments in advanced IT, expanding that effort to international cooperation with others to deliver services that work globally.
     He thought a moment and offered:
     “Sure, we have felt the impact of our product development moving slowly as e-freight struggles to take hold, but then there have been other opportunities that have come to the front, including the recent surge in interest and activity as ICS takes hold.
     “So while we have felt some frustration about the pace of implementation of e-freight, we have had real joy seeing the interest in TRAXON as European ICS takes hold.
     “Maybe it would be too much joy to have both at the same time,” Felix laughs.
     Felix Keck came to air cargo IT from the ocean shipping business, where he worked as nautical officer for Shell Cyprus.
     Later, he began his airline career at Lufthansa Cargo where, among other things, he oversaw the fortunes of the Boston USA cargo business.
     He recalls operating Lufthansa Cargo from an old Pan Am Clipper Cargo shed at Logan Airport.
     “We had a huge Clipper Cargo illuminated sign on our Boston acceptance and pick up building that was so big and bright, most people—truckers and such—looking for our operation could not see the smaller Lufthansa Cargo sign.
     “I learned there is an entrepreneurial can do spirit about the air cargo business that I find quite appealing..
     “When all attempts to disconnect the old PAA sign failed with the airport, we just unplugged it ourselves.”
     Felix Keck joined TRAXON in 2004 and has never looked back or regretted one minute of it.
     “I may have the best job.
     “I get to work every day with a microcosm of the world’s population. Here at TRAXON we have 17 nationalities among our 30 staff members and we are involved in bringing change for the better to an entire industry.”
     We asked Felix Keck what surprised him in 2010.
     “I have been impressed by the number of products that TRAXON developed and brought to market this past year; by this compact, dedicated team of sales and technical experts that we have here in Frankfurt; and that we were able to create and implement these programs on top of the increase of business this year.
     “Everyone knew that European ICS was coming January 1, 2011, but now we are faced with a year end surge for our services as more and more companies request the TRAXON solution.
     “So everyone waiting until the last minute, while challenging, is also most welcome business for us.
     ”People know that TRAXON can deliver its promise of a customs solution to all countries that demand advance filing from one provider.
     “TRAXON offers ICS implementation, support and best quality—the complete package.
     “We are still in talks with airlines that have yet to settle upon an IT solution for European ICS.
     “Looking ahead a few weeks, what that means is that some key members of our team will be spending their Christmas vacations right here in the office.
     “Our team is ready and we expect to be at it here even between the Christmas and New Year, a period that is normally quite a slow time.”
     So after potentially a “December to Remember,” we wonder: what is next?
     “For 2011 we will go deeper into studying our customer processes so that all of our products work even better and so we evaluate areas to develop new ones.
     “For us, that activity is actually happening all the time.
     “TRAXON conducts workshops and does all manner of product development as a result of customer visits and ongoing dialogue.”
Geoffrey/Flossie

 

German Aviation
Sings Together

     The German aviation industry has finally landed upon a common platform for lobbying interests and formed an industry group to deliver the message.
     In early December, the national airline and airport associations, BDF and ADV, together with industrial heavyweights Lufthansa, Air Berlin, TUIfly, and flight control organization DFS and Frankfurt manager Fraport AG, established an aeronautical association named Bundesverband der Deutschen Luftverkehrswirtschaft (BDF).
     By joining forces they offer politicians, government officials and the media a much-needed single point of contact.
     Dieter Kaden, (above) who chairs the flight control organization DFS-Deutsche Flugsicherung, will be Interim President.
     A full-time President will be appointed during the first half of 2011.
     Aviation analyst Dirk Steiger of Frankfurt-based Aviainform GmbH argued that bundling the aviation industry’s forces from departure airport to destination is long overdue, since in the past the different players very seldom coordinated their views, but pursued their individual interests in the political and administrative arena.
     Said Steiger: “This fruitless fragmentation weakened each of the participants.
     “Consequently, the political influence of the entire industry was crippled, as many decisions by the Berlin government have demonstrated.”
     Steiger referred to a long poison list, including the newly implemented aviation tax as of January 1, 2011, high bureaucratic hurdles imposed by local or national authorities that often jeopardize or substantially delay new infrastructure projects at airports, and the possible closure of Germany’s biggest gateway, Rhein-Main, during night hours, which “could cost thousands of jobs without a single government member lifting a finger. ”
     It appears that BDF’s main role will be to more efficiently coordinate and orchestrate these and upcoming future topics. How this can be done is daily exemplified by the success of the mighty associations of the German automotive and chemical industry, which long ago built an umbrella organization to speak with a single voice to advance their interests.
Heiner Siegmund/Flossie

 

Corruption Gets India Once Over

 T. Venkatram Reddy of the Deccan Chronicle. He is also the owner of the Indian Premier League cricket team, the Deccan Chargers, which represents the city of Hyderabad.

     India’s top anti-corruption office, the Central Vigilance Commission, has started investigations into the $2.3 billion Airbus-Flyington Freighter deal. The investigation began soon after the Hyderabad-based Flyington Freighters sent its complaint to the Central Vigilance Commissioner that Airbus had been guilty of unfair trade practices.
      Around the beginning of August this year, Flyington—a part of the influential Deccan Chronicle group, which has one of the leading English newspapers in its fold—said that it had asked Airbus for an undisclosed amount as payment for damages because the plane manufacturer had delayed the delivery of the dozen-odd A330-200 freighters ordered in 2007. Apparently, Airbus had decided to supply the freighters to Flyington by the middle of 2008. In fact, along with the damages, Flyington also asked Airbus to return the advance amount it had paid to Airbus.
      According to sources in Flyington, the delay by Airbus was intentional: the airplane manufacturer had used the dozen planes ordered by Flyington to hook the US Air Force A-330 tanker contract that it received in 2008, which were to be built in Airbus’ U.S.-based plant in Mobile, Alabama. Later that year, the orders were cancelled and fresh tenders were floated. The delay in the orders upset Airbus’ production plans.
      Flyington contended that the delay disrupted all its plans and that it suffered huge losses. To top it all, two of the A330s were delivered to Etihad. In addition, the Hyderabad company could not go to Boeing because it ordered four 777s, but had later cancelled them.
      Flyington has an avid follower in Member of Parliament (from the Upper House or Rajya Sabha) in Telugu Desam, MP M. V. Mysura Reddy (left). The MP shot off a note in September this year to Salman Khurshid, the Minister for Corporate Affairs, seeking an investigation into Airbus’ practices.
      “Airbus,” the MP’s note said, “has committed acts of violation of sections 3 and 4 of the Competition Act by indulging in acts limiting and restricting market access to deny Indian players, abused their dominant position to adverse effect Indian business by committing collusion, vertical and horizontal arrangement -- leading to substantial irreparable damage to Indian economy.”
      Close on the heels of the note from the MP, the Delhi-based Consumers Forum—a consumer interest association—also sent letters to the President of India, the Prime Minister and other top Indian government agencies with the demand for a thorough investigation. Consumers Forum even alleged that Airbus was guilty of violating a number of Indian laws. Its note said, “It is important for the government to intervene and set up a high-level, time-bound probe to initiate corrective action, enforce the pre-bid integrity pact, to undo the damage done to the company.” It has also requested the government to take “remedial measures to prevent any such occurrences in the future.”
      Later that same month, the Member of Parliament also raised the issue in Parliament. M. V. Mysura Reddy sent a question to the Ministry of Company Affairs.
      He wrote: “In the present day world order of trade, all the companies are expected to follow fair trade practices. But, abusing the dominant position, Airbus is indulging in violating not only Section 3 and 4 of the Competition Act but also the WTO norms. Airbus is indulging in acts of limiting and restricting market access, resulting in substantial damage to Indian economy.”
       He also pointed out, “The actions of Airbus are evident in the case of Flyington Freighters wherein it has reserved the Indian Air Cargo markets for Middle Eastern players like Etihad and MNG and causing irreparable loss to Indian air cargo business. It is restricting the market access to Indian players which is resulting in not only loss of several thousands of crores but also affecting huge employment potential for Indians.”
      Commenting on the Flyington deal, an Airbus spokesperson said that both parties had agreed upon a contractual amendment in 2009 to delay the delivery of the planes, since Flyington was finding it difficult to make the required pre-delivery payment. Now, sources in Airbus said that Flyington has started paying the installments for the freighters it had ordered.
Tirthankar Ghosh/Flossie

 


Click To Read
35th Anniversary Issue



At TIACA Up Close & Personal



 

Up Up & Away

. . . Bombardier Aerospace said SpiceJet of Gurgaon, India has placed a firm order for fifteen Q400 NextGen turboprop airliners and has taken options on an additional 15 airliners.


. . . Boeing reports de-orbit and landing of the Orbital Test Vehicle (OTV), also known as the X-37B, for the U.S. Air Force Rapid Capabilities Office (RCO). The X-37B landed OK, concluding its more than 220-day experimental test mission. It was launched from Cape Canaveral Air Force Station in Florida on April 22. The X-37B is the United States' first unmanned vehicle to both return from space and land on its own. Previously, the space shuttle was the only space vehicle capable of returning to Earth. The success of this inaugural mission demonstrates that unmanned space vehicles can be sent into orbit and safely recovered.


. . . The 777 is the backbone of our long-haul fleet said Bruno Matheu, chief commercial officer of Air France, as the French national airline received its 200th Boeing airplane, a Boeing 777-300ER.


. . . Norwegian Air Shuttle, or Norwegian, got a Next-Generation 737-800 with new Boeing Sky Interior yesterday.

 

. . . Embraer and Lufthansa signed a contract for another eight new 195 jets. The total value of the deal, at list price, is US$338 million; this order makes Lufthansa the largest fleet of E-Jets in Europe.

 

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Dees Special Christmas

     Dees, a plant and flower nursery, is an old time, family business that has been located just off the main runways at John F. Kennedy International Airport in Oceanside, New York since 1958.
     Dee spends most of the year selling plants and trees and lawn care products to people from all over the metropolitan area.
     But once a year for the past eight years now, Dees chops down several hundred Christmas Trees from its big farm in Maine and, in partnership with DHL, sends the trees free of charge to U.S. troops in Iraq and Afghanistan.
     Usually the press pick-up of this event goes mostly to DHL and their big trailers and airplanes, and the helicopter with Santa aboard that shows up at Dees for the Christmas tree shipment before the evergreens are sent to the airport for departure.
     This year, after all the ballyhoo, we visited Dees that, as it turns out, has really great, fresh cut trees for sale. We had the opportunity to speak to Joseph and Tom DiDominica, who had just received some pictures of the big tree shipment’s arrival in Iraq.

     “We will continue to provide these trees until the soldiers get home,” Tom said.
     “That is the least we can do to support our troops,” said brother Joe.
     Business is business, but these brothers bring home the real meaning of Christmas and make the Yuletide bright.
     Dees is located at: 69 Atlantic Avenue, Oceanside, NY 11572. (516) 678-3535. www.deesnursery.com

 


Ralph Arend, writer and filmmaker extraordinaire, (also Air Cargo News Flyingtypers video editor) is in the final stages of completing his new, feature-length film entitled Worst Friends. Starring Noah Barrow and Richard Tanne and written and directed by Ralph Arend, the film centers around two childhood friends reuniting in adulthood and discovering the truth about themselves and each other.

 

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