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Vol. 13 No. 40 THE AIR CARGO NEWS THOUGHT LEADER Tuesday May 6, 2014

Flying Video At CNS

AA Lady Was A FlyingTiger

FlyingTypers' spoke to Linda Dreffein, Managing Director Cargo Sales at American Airlines Cargo as part of an attempt to shine a light on the people who propel our business. As 2014 moves forward, we will continue to take this wider approach to the community of business people who support air cargo; they don't always receive the headlines or credit they so richly deserve, but what they offer is new, fresh, and needs to be shared with the global air cargo business.
     Linda is thoroughly professional and top notch, all the way.
     Here she offers a refreshing and distinct view of the “new” American Airlines’ Cargo.

I think it’s most important for the air cargo business to know our merger is going quite well.
Our new leadership team has been announced, and we’re getting to know our US Airways counterparts.
     Together, we are mapping out our plans to create one really great team with a well-executed process and implementation toward single air waybill later this year.

Q:   What trends have you detected or are reflected in the mix of business? Have some new markets come to the fore? How will the ability of the new AA fleet emerging and other fleet utilization abilities change impact of what you do? How does the eventual combination of two airlines strengthen your offering?
A:   While our core business remains consolidation traffic and perishables, we’re seeing significant growth in pharmaceutical business as a result of the development of our temperature control program—ExpediteTC. Along with 2 to 8°C traffic, we’ve also attracted large volumes of ambient temperature commodities including specialty tapes, computer parts and artwork.
     We’re already flying to Seoul (ICN), and on June 11, we’ll be adding service between Dallas/Fort Worth (DFW) and Hong Kong (HKG) as well as Dallas/Fort Worth (DFW) and Shanghai (PVG).
     Our new B777-300 aircraft significantly increase our cargo capacity.
     We’ve seen cargo loads over 100,000 pounds on recent trips to London Heathrow (LHR).
     AA expects to take possession of eight more of these great airplanes this year, as well as B787s and A350s in the next few years. These aircraft give us the capability to fly to destinations that our cargo team has been asking for a long time, and they give us the capacity to take a greater number of shipments to important cargo markets. Domestically, our new A321T aircraft are flying the transcon market, so we’ve had to change our sales psyche.
     Rather than LD3s and LD8s, we’ve been more creative selling narrowbody-compatible shipments and talking with our customers about alternative packaging.
     The eventual combination of the two airlines will open many new markets for our customers, and together, we will be able to offer them even more options.

Q:   Along with a brief recap of business so far this year, what will/are you doing in 2014 that might be different than last year? Are there plans for new products, destinations or other value-added services or special events to the American Cargo offering?
A: In the first quarter of this year we’ve seen stronger volumes overall. Demand to Europe is up year-over-year, and Latin America southbound and Asia westbound continue to perform well.
     In 2014, we’ve expanded our sell beyond our metal.
     We’re more creative talking to our customers, not only about point-to-point consolidation traffic, but temperature control business, interline and new destinations as well as those we can reach by road feeder service.
     On our U.S. domestic flights, we’re letting our customers know we’re reopening cargo facilities and will continue to do so through the remainder of the year.
     We’re making sure our domestic customers know of new flights such as Indianapolis (IND)-Los Angeles (LAX) and Minneapolis/St. Paul (MSP)-Miami (MIA).

Q:   How did you come to choose an air cargo career?
A: Honestly, out of college I realized I couldn’t bear the thought of a boring desk job.
     I saw a blind ad in the newspaper, and it said, “World’s largest cargo airline. Looking for customer service representative.”
     So, I went to work for Flying Tigers.
     The rest, as they say, is history.
     I’ve never been bored in this business, and I’ve never looked back.
     Change is constant.
     I love what I do.

Q:   Are you satisfied that women are afforded equal opportunity in air cargo at AA and elsewhere?
A: Yes, especially in recent years.
     More and more women are finding air cargo a challenging and rewarding industry. At American we have women in sales, operations, in headquarters staff positions in management as well as administrative positions.
     In our organization it’s not about male or female – it’s the best person for the job – and I see that all over American.

Q:   How do you balance your career and life? Can we know favorite city, things to do to relax, sports & hobbies?
A: Yes, I am married. I have a daughter finishing her first year of college, and now looking back, these years have been a real balancing act.
     I’ve had to be very organized and disciplined to get the work done no matter the time or day of week, while making sure I am there for family and those important events in our lives.
     My favorite city—there are a number—but I have to say San Francisco.
     I head up to our lake house in Wisconsin to relax on the pier, swim, walk, and read.

Q:   Are there some things that you would like to see changed in air cargo?
A: There are always things you would like to see changed, but probably the most important for me would be a continued effort to improve collaboration among the shipper, forwarder and airline.
     Air cargo is no longer about handing out rates and schedule flyers.
     For all of us a better understanding of the shipper’s requirements, the forwarder’s transit needs and the airline’s capabilities can help lead to positive results.
     Successful collaboration allows everyone to share in customer satisfaction, additional business and profit.

Q:   What has surprised you in the air cargo business during the past year? As a result of the merger?
A: After 30 plus years in this business, very little surprises me these days. If you think about it, air cargo is really a very resilient industry. There have been wonderful years and some really tough ones.
     But most importantly, we have been, and always will be, focused on our customers. The merger will continue to bring change. We’ll work through it, and we will be successful.

Q:   Who do you admire that may have impacted your life or approach to the airline business?
A: There are a few people I could say have had a great impact on my life and my career, so I can’t do justice by naming just one.
     A long time ago, when I was very new in this business, someone said to me:
     'Do what you say you are going to do. Follow up. All you have is your reputation.'
     I have always remembered that piece of advice. In life and in business, sometimes it’s tough to keep your promises, but as you gain experience, you realize your “word” is everything.
     Over time, you develop a trust that brings new business and that holds relationships together—even when things don’t turn out as well as you’ve planned.

Q:   Do you think AA will ever have a woman chief executive?
A: Women hold really important roles at American, and I’m happy to say I’m one of them.
     It’s an exciting time to be a customer with American. Together with US Airways, we’re building the world’s greatest airline and that means we’ll be able to offer an even larger network and more opportunities.
     If you think about it, we’re able to bring together what our customers love most about both airlines and teams.
     As we work to build the new organization, our customers remain our top priority, and we’re committed to providing them with the best service.
Geoffrey/Flossie

CAL Goes ATC

  CAL Cargo Airlines now has ATC Aviation as GSA in the USA.
  "Strengthening CAL's North American presence is a significant part of our strategy,” Eyal Zagagi, CEO, CAL Cargo Airlines told FT:
  “We are adding people to our existing JFK station and are planning to launch a new trade lane between Atlanta and Liege and trust that the arrangement with ATC that we have struck during the CNS Conference this week in San Antonio will enhance our presence in the market.”
  J. Timothy Pfeil, VP Sales and Airline Relations, Head of Global Compliance for ATC said the arrangement “represents the ultimate use of ATC network across the U.S. and is a fantastic opportunity for both CAL and ATC to grow and expand together in the United States.”
  “ATC's offices are present in MIA, ATL, IAD, ORD, IAH, LAX, and DFW thus will be a perfect match with CAL's current gateway to Europe from JFK as well as their planned operation from ATL,” Mr. Pfeil added.

“CNS Partnership is an important part of our strategy to get close to our airline partners as we continue to work together on behalf of our customers,” said Marco Rohrer, President EMO Trans (center) pictured with Tilo Weger, Corporate Airfreight Manager (L) and Uwe Kaeding (R) Midwest USA Regional Manager.
“EMO is moving rapidly into e-AWB whilst opening new offices and building success upon success, as we continue to expand our services globally,” Marco said.

Click Here To Read Intro

Click Here To Read Part I

Click Here To Read Part II

Click Here To Read Part III

Karen Reddington

Ingrid Sidiadinoto

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TIACA AGM, Dallas, April 2013
   “The new Board and I stand on the shoulders of our predecessors, and our starting point is gratitude for everything they have achieved.
   “I am therefore not one to declare or even desire radical new departures or initiatives.
   “… streamline our efforts to communicate more effectively internally and externally.”

    Oliver Evans quoted in his TIACA Times interview as new Chairman of TIACA.
   Daniel Fernandez was overwhelmingly elected by an 11 to 1 vote of the Board to another two-year term as Secretary General. Membership was at an all-time high.
   The ACF in Atlanta, the most financially successful, continued the growth of every previous ACF.
   Incheon Airport was looking forward to hosting a great trade show with an experienced professional.
   Reserves reportedly were at an all-time high of over $3 million with TIACA’s largest operating budget ever, fully funded.

TIACA AGM, Istanbul, April 2014
   TIACA has a new Secretary General, Doug Brittin, whose appointment was a surprise announcement in August 2013.
   Daniel Fernandez was ousted with little explanation given (unbelievably, we understand, this is still the subject of legal entanglements for TIACA).
   The ACF in Seoul is on track to underperform (anybody with a calculator can look at the floor plan and see it).
   While the center portion of the Incheon event looks busy, both sides or the “wings” of the ACF booth layout look empty.
   Sources say this is not a good scenario for TIACA as approximately 75% of its revenue for two years is dependent on the ACF.
   Not surprisingly, we hear that the financials were presented very quickly on a small screen, without printed copies available to the Trustees at the AGM in Istanbul as is traditionally done.
   Membership figures or lack thereof were also glossed over.
   Through it all, the young TIACA staffers still worked diligently to stage the AGM and Hall of Fame dinner.

   You have to feel a bit of empathy for the earnest Incheon Airport representative who did her best to put a good face on the situation.
   Oliver Evans was asked for his take on all of this, and replied:
   “The TIACA Executive Summit proved that the spirit in the industry is very much alive and well; there were not only many attendees but also executives of the highest level and a corresponding quality of debate in the workshops, triggered by the great diversity of the audience.
   “There is clearly a need for an association like TIACA to bring these varied interests together and to help shape the industry agenda.
   “We also wish to be very transparent, which is why we openly showed the floor plan of the ACF and the corresponding bookings.
   “It is obvious that we have a long way to go to fully book the venue, although bookings are still coming in: this is simply reflecting the realities of the market.
   “Money is tight and cautious expenditure is the order of the day for the most successful companies.
   “Moreover, alliances like SkyTeam now house their members under one booth, where each would have had his own area a few years ago.
   “TIACA and ACF are not the only ones having to adapt to this new reality.
   “This is why we are looking to diversify our sources of income while staying true to our roots and commitments to our membership. After a tough year 2013, our membership is growing once again, including some flagship companies.
   “We have plenty of work to do, a highly committed Board and management team to help us do it, and we expect members to step forward and help the committees in their work,” Oliver concluded.
   One empathizes with the people who volunteer their time and skills to try and help build an industry association, but the real question here is: what happens next?
   How is TIACA to remain viable?
   What is to replace the ACF revenues to sustain it all?
   The words of the great Issa Baluch, who resigned from the TIACA Board Of Directors last year in disgust, bubble up from the past and remain a reminder.
   Issa said of TIACA when he quit:
   “Sadly, TIACA’s leadership during the past few years has continued the focus on their own narrow interests rather than the interests of the membership as a whole.
   “The assets of the many, earned over many years, are now appropriated to fund the agenda of the few.”
   A very long time ago, we attended the very first TIACA AGM at the old In & Out Club in London.
   I remember standing on that club balcony with Chris Foyle listening to the Post Guards at sundown in the courtyard in full uniform Beating Retreat.
   We lounged around and felt important for a couple of days in overstuffed leather chairs and drank brandies and smoked cigars, back during a time when drinking and smoking went on quite a bit.
   One evening after climbing the stairs I noticed a dark figure in the dimly lit hallway apparently having some trouble getting the door to the room open.
   It was a very old Richard ‘Dick’ Jackson, founder and genius of Seaboard World Airlines.
   I went over and gently took the keys and opened the door, softly entreating Dick to use the old fashioned Skeleton Keys we were all issued, ‘with some care.’
   ‘Like you might start up your first Model T Ford,’ I told Dick, who smiled and slammed the door behind him as he walked into the room.
   When I told Garth Davies, the first TIACA Sec. Gen, the story, we laughed all over again about it.”
   Later we decided our publication Air Cargo News would not join TIACA; almost every other cargo publication did.
   But that doesn’t mean that our memories of attending TIACA meetings and ACFs are not important and alive to us.
   Our hope is that TIACA finds some way to turn Incheon into the success it deserves and that we all need.
   Stay tuned.
Geoffrey/Sabiha

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