Turkish Airlines Cargo’s pattern for growth goes on unabated into 2014, defying almost everything—including gravity—as Istanbul continues to emerge even stronger as a central international hub.
    Halit Anlatan, Turkish Cargo vice president of sales and marketing, is mulling his next moves from a corner office inside the big Turkish Airlines Building at Ataturk International Airport.
    Right now Turkish Cargo ranks number 5 in the world in FTKs and number 4 in terms of destinations served, and the company is looking to move up.
    With 9 freighters in service, including 6 A330-200Fs able to lift 65 tons and 3 A310s rated at 35 tons, plus a wide body fleet of 44 pax and a total of 244 aircraft, there is plenty of room to grow.
    Cargo and mail throughput totaled 567,771 tons in 2013 up from 469,036 in 2012.
    But the dramatic numbers that fastens attention to this rising star that bridges Asia and Europe are the FTK numbers, which recorded a whopping 21.9 percent jump last year.
    The latest numbers show TK 2014 is off to yet another banner year.
    Right out of the gate, January-March 2014 tonnage was recorded at 156,662 tons, another barnburner 26.7 percent increase as compared to the same period in 2013, when 123,608 tons were recorded.
    Mr. Anlatan is the public face of Turkish Cargo, but he is also a no-nonsense manager who clearly has the mission well in hand to take the Turkish Cargo team into the upper echelons of international air freight transportation.
    He is a modern day air cargo executive to be sure, but he also carries traditional beliefs that include delivering value for money and standing for his word, all while managing to laugh once in a while—he’s a breath of fresh air in this game.
    He also does not mince his words when he says, flatly:
    “Right now Turkish Airlines is ranked Number 13 in the world.
    “By 2016 we expect to be situate amongst the top ten airlines of the world.”

Cargo Increases During A Tough Year

    “Despite a tough business climate in 2013 we continued our unprecedented fleet and route expansion as part of an overall strategy to grow our business 15 percent a year into the future.
    “We feel our expansion to new destinations and new aircraft deliveries will help us grow out of much of the financial difficulty felt elsewhere,” Halit Antalan said.
    “Turkish Airlines continues to invest in our Istanbul hub, which is situated at the crossroads of Europe, Middle East, Africa, and former CIS countries.
    “There is much potential for air cargo and many niche markets within these areas for us,” he added.

It’s The Network

    “Great airlines must have great networks,” Halit insists.
    “For us our freighters offer great lift and scheduling second to none across Europe, where we serve 12 destinations, plus 17 in Asia, 9 in the Middle East, and we continue to grow in Africa, where we now serve 11 gateways.
    “All of our activity is also supported by service agreements, vast road feeder services, and, of course, our great gateway—central to all we do—Istanbul.”

New Cargo Transfer Facility This Year

    “Our investment is moving right along to not only keep pace but also to allow for our rapid expansion as we grow both network and capacity.
    “Last September we added 10,500m2 capacity to our Cargo Center here.
    “This autumn comes 43,000m2 in the form of an all-new flagship Cargo Center that will bring absolute state of the art operational capabilities to support every aspect of our business from pharma and cold chain product (5,000 m2 devoted to ‘special cargo’) to heavy bulk shipments and live animals, and also express.
    “Our aim is to make Istanbul the logistics leader.
    “We are migrating to a new software solution that handles the needs of a range of motion, including the IT requirement for full freighters, passenger and cargo, ground handling, cargo sales & reservations, operations, mail management and accounting, revenue and ULD management.
    “By the end of June 2015 our IBS Comis System will be fully functional.
    “Right now, for example, our airway bill implementation is at 15 percent and moving up.
    “It’s all about our value proposition.
    “We have the location central to both Asia and Europe at the true crossroads of the world.
    “Turkey is a strong trading nation with ties to Europe, Asia, and Africa that date back thousands of years.
    “For Africa, in Nairobi and Lagos we have built a major position in the movement of perishables. In Johannesburg we move major shipments of heavy machinery as a matter of course.
    “These are destinations that Turkish Cargo has not only added, but gone into and built an air cargo trade.
    “As example we have just opened new flights to Tunisia where we not only launch a market, but stand alone in the effort.”

The latest Turkish Cargo freighter address Belgrade (BEG) launched April 4, 2014. Currently Turkish Cargo's network includes more than 105 countries and 250 destinations, (49 are served by freighters).  Belgrade is Turkish Cargo’s 9th dedicated freighter service to the region.

Most Valuable Assets

    “Turkish Cargo is building its future on a very solid foundation,” Halit Anlatan declared.
    “It’s our people.
    “Everywhere we fly or wish to serve in the future begins with a solid team on the ground.
    “We have six regional managers with knowledge of each destination and a local approach that immediately engages our service partners, the forwarders, to working together so that our success and also theirs is assured.
    “We never forget how important our service partners are,” Halit Anlatan declared.
Geoffrey

As Summer 2014 approaches here come the air shows.    The International Aerospace Exhibition ILA 2014 also known simply as “The Berlin Air Show” that began in 1909 is the oldest event of this kind in the world, and is set for May 20-25 with lots of civilian and military airplanes and conferences.    Venue for the biennial event is the Berlin ExpoCenter Airport, (with direct access to BBI) includes some 60 conferences and meetings, workshops and a programs of lectures focusing on market developments and trends.    The Republic of Turkey is the official partner country for the International Aerospace Exhibition ILA 2014.    “Part of this event since 2008, the Turkish aerospace industry will present itself as a modern, fast-growing and dynamic industry that offers business partners, customers and investors from around the world excellent opportunities for cooperation,” said Mr. Murad Bayar, Turkey’s Undersecretary for Defense Industries. Click Image above or here to watch ILA Berlin preview.

   There is a controversy brewing in the U.S. Customs Brokers community as it relates to the future paperless use of ACE (Automated Commercial Environments) and the national versus established regional approach to clearance.
   There are significant downsides for the broker community and ultimately their customers, including unintended consequences.
   As a friend to the U.S. Customs Brokers from our earliest days of publishing Air Cargo News starting in 1975, when we delivered ACN to the fabled Cargo Building 80 at JFK International Airport—“home of the customs brokers”—we present Donna Mullins from Georgia, who takes the brokers’ side four square.
   We welcome your comments.

Currently in the U.S. Customs Brokers business, the subject of permitting is surrounded in confusion.
   To put it simply, the current system provides for both district permits and a national permit.
   Until now, most customs brokerage firms have found it necessary to have both.
   The national permit allows for remote location filing, and for firms that want to file in multiple districts, district permits were needed for entries that could not be filed RLF.
   That is what stands for “keep it as it is,” but that is not possible.
   Soon, very soon, in less than two years the district permit will become a wholly irrelevant artifact in the regulations.
   As ACE moves toward completion, there will be no entries that cannot be filed RLF.
Customs brokerages will be able to file at all ports for all types of entry on the basis of a national permit.
   That is the inevitable end state of the “as is” situation.
   Without some change to what is on the books, by November 2015 a customs brokerage firm will be able to operate nationally on the basis of one permit and one individually licensed customs broker.
   That will be the benchmark for permits.
   The question is, how well does this “as is” condition serve our profession, our members, the individually licensed customs broker, CBP, our importer clients, the American consumer?
   What will it mean to these stakeholders when all that is required by law and regulation to offer national customs brokerage services is a single permit supported by a single licensee?
   Many of our industry members are making the transition to ACE summary-filing now, and some are piloting ACE release.
   Many are finally realizing (and enjoying) the true paperless environment as we send more and more of our summary packages through ABI using CBP’s document imaging system.
   As more ACE functionality rolls out, we will soon be filing RLF for all our entry types, and with the promise of ITDS, almost no paper documents will be required at any local port.
   The future of our industry has already changed, and now it’s time to consider what structure will be needed to support this future.
   The “as is” structure is geographically based, and while business needs may drive the need for local offices in certain places, in our new virtual future, there is no need for a local office solely to file entries that will be electronically routed to specific CEEs, which could be anywhere in the country.
   Brokers need to create a new future that will address the need for supervision and control over Customs business.
   The “as is” permit structure does not; local permits simply don’t matter anymore, and we need to focus on what is needed to replace this outdated structure.
   I have been encouraged by a fellow colleague in the industry to help the individual license holder take a stake in the permit game.
   Regardless of your company’s position on the permit issue, every individual license broker has to think of how any changes will directly affect them. (please send your permit position to permits@ncbfaa.org as they are compiling a collective reply for CBP)
   We must not lose sight of what is at stake here.
   If you are an importer—you should be concerned at a possible reduction of responsible supervision and control over your shipments.
   If you are the government—you should concerned at a possible reduction of responsible supervision and control over import shipments, thereby passing the policing over to you.
   If you are an individual license holder—you should be concerned at the possible elimination of needing your license to qualify a permit.
   Please feel free to share this opinion as baseline support for other individual license holders.
    Of course, it can be reworded for your own need, but try and keep the thrust of the letter’s content to do the most good for all custom brokers.
   The power to create a better future is contained in the present:
   “Create a good future by creating a good present,” said Eckhart Tolle.
Donna M. Mullins

Donna Mullins is President of Mullins International Solutions. Donna can be reached at: 770-626-4802.
donna@mullinsintlsolutions.com

     A friend told me he just learned that Bruce McCaffrey died February 25 at age 71 in Bradenton, Florida, from complications of renal failure.
     Bruce worked at Qantas Freight for 26 years and was among the first people to be caught up and convicted in the air cargo price fix scandal.
     Last time I saw him he was awaiting the start of a six-month sentence, but since he had recently had a kidney transplant, the feds were giving him time to recover.
     That was in 2008, but now Bruce is gone.
     He leaves behind his sister, Karen McCaffrey of Bonita Springs, FL; brother, Neil; sister-in-law, Cindy McCaffrey of Newton, and several nieces and nephews.
     Bruce McCaffrey attended Harvard Business School and the UCLA Executive Program in Business, and, like many of us 70-somethings who love America, served during the Vietnam War as a U.S. Army helicopter pilot and infantry officer.
     After the war he joined National Airlines, then Pan American, and then Qantas Freight USA, where he served for 26 years as Vice President of Freight for North and South America.

Bruce Was A Straight Arrow

     I knew Bruce when he was out in Valley Stream (a community near JFK International) after he had succeeded Gil Philaba—and later George Stark—as boss of Qantas Cargo USA.
     He was always by the book and although a bit distant, he radiated interest in airline history; like me, he was a veteran of Vietnam, so we always found some talking points aside from business.
     I also knew him when Qantas threw him under the bus.
     The story of my final meeting with Bruce occurred one night close to Christmas 2008, inside the Oyster Bar at Grand Central Station in Manhattan.
     Bruce looked like hell at 160 pounds, his body evidence to two potentially devastating life events.
     One was recovery from a kidney transplant, and the second was jail time as he was amongst the first of the airline executives caught up in the price fix scandal.

Events Unfolded Quickly

     Bruce told me about the day when law enforcement swooped into his offices at Qantas Freight Los Angeles to gather up information, paperwork, and computers in 2006.
     He also remembered the day he fielded a call from his bosses at the cargo facility ordering him to report to Qantas headquarters.
     Upon arrival, a human resources employee flown in from headquarters abruptly told him that his job at Qantas was over “based on performance.”
     When Bruce argued that his performance reviews were always deemed “excellent” and that he led Qantas Freight USA from 15 percent of total airline air cargo throughput to 25 percent during his tenure, and that during his watch he had delivered budget numbers 24 out of 26 years (one year his numbers fell was 2001, marked by the 9/11 tragedy), the HR type simply said:
     “Actually, we don’t have to give you a reason.”

The Qantas Freight facility at 6555 W. Imperial Highway in LAX was a project undertaken by Bruce McCaffrey in 1994. The result was a state-of-the-art 50,000 square foot air cargo facility with great location, easy access and plenty of room for air cargo operations for Qantas Freight and a couple more carriers.      As McCaffrey, the old Villanova University finance major recalled, "best of all, we delivered the space at about 25% of the comparable cost of similar construction at LAX."

Reason Apparent

     The “reason” became apparent when Qantas went public the next day with the admission of price fixing, and agreed to pay a fine and jettison Bruce McCaffrey.
     “Maybe I should have seen this coming,” Bruce said when we spoke.
     “Qantas management called me six months before I was terminated and offered me a buyout, but I refused.
     “I guess when you look at the landscape of executives in air cargo that are now taking the package and getting out, I should have gotten out then too.
     “I just thought everything would be OK, even with the ongoing investigations, and I thought that Qantas would handle all the price fixing allegations.
     “I went about my business as usual, reporting everything happening in my freight department to my superiors just as before.”

Bruce As A Fall Guy

     Bruce McCaffrey was the first fall guy for a giant international investigation (witch hunt); at the time, the U.S. DOJ was reportedly looking to convict some Qantas people headquartered in Australia when they realized they could not be extradited to the USA.
     Testimony from two Qantas Freight employees that was obtained by DOJ turned out to be, in truth, nothing more than the word of a couple of low-level types who were promised immunity.
     Bruce, DOJ was told, had issued instructions to secure information concerning rates from competitor airlines.

Going It Alone No Option

     As the charges stacked up in front of him, Bruce learned that in order to defend himself against an international law enforcement frenzy, he would have to put up all he had and more.
     Bruce McCaffrey faced the demand of raising an impossible half million dollars, the kind of money airline people just don’t have, to defend himself with no guarantee of success.
     Qantas refused to help or support him in any way, other than to say if he fought the case “and won that they would share in his legal fees.”
     If he fought the case and lost he faced financial annihilation, fines of one million dollars or more, and a possible sentence of ten years in jail.
     So Bruce McCaffrey, in total survival mode, agreed to cooperate with law enforcement, serve time, and pay a fine.
     For Bruce McCaffrey, 2006 was the year that was.
     Fast forward to 2008.
     There he sat, all 160 emaciated pounds, behind a cup of coffee in the Oyster Bar.
     Bruce exited the industry—his entire life—in some manner of disgrace, while most of the people around him at Qantas got off scot-free.
     “I just spoke to investigators from Canada this afternoon,” Bruce ventured as we sat in the Oyster.
     “Recently I was interviewed by investigators from New Zealand.
     “As often as I am approached now, I cooperate because of the offer of immunity.
     “Investigators want to know about the business of air cargo,” Bruce McCaffrey said.
     What Bruce did not say is what was most apparent.
     Ongoing interviews, by a widening group of law enforcement characters from an expanding list of countries, served as primers on air cargo for the prosecutors at home and abroad, who among other things were looking to make a reputation by descending upon our industry like a school of blood-thirsty sharks.

Impressions of Bruce

     As he spoke to us that last time in 2008, we recalled visiting Bruce in Los Angeles in 2005 at Qantas Freight.
     Although at that point, fully on the job, his health had already declined after a mild stroke.
     But Bruce loved what he did and was always proud to work for and deliver on budget for Qantas Freight.
     I remember we exchanged memorabilia and did a story on Bruce.
     We felt lucky to have that opportunity because at that point, even after 23 years at Qantas, he almost never appeared in air cargo media at all.
     We suggested a trip down under, but Bruce, who checked everything with the home office, could not get us a bump up to Business Class and the trip idea fizzled when I thought of 14 hours with my chin to my knees. Later, when we thought about it, after the price fixing scandal hit, how could someone who had to check for an upgrade, mastermind something as vast as the price-fixing scheme.      Ridiculous!
     When word came that Bruce McCaffrey, the straight arrow guy I had known for many years, was in a price fixing beef with the U.S. DOJ, my first reaction was disbelief.
     To this day we still believe he was overwhelmed by forces at work in a shameful episode in air cargo history.
     Now that he is gone, we can only marvel at the spirit and determination that Bruce—a guy who once lived for air cargo—gave to air cargo.
     Somehow he managed to live another six years after losing almost everything, except his determination to not back down.
     “I never made a major decision that was not checked with headquarters.
     “I’ll be dammed if I will allow these charges against me to determine my life,” Bruce told me.
     And he never did.
Geoffrey

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