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   Vol. 14  No. 60
Tuesday July 28, 2015

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Security Starts With Labor

     Earlier this summer, news reports said undercover penetration testers were able to overcome security measures at 67 U.S. airport locations.
     The disappointing news included passage of forbidden items such as IED and weapons having made it past security to various locations, including aboard aircraft.
     You may recall Melvin Carraway, who had been serving as acting head of the TSA and was hastily “reassigned other duties.”
     But the reality check is that unfortunately, breaching security may not be all that uncommon.
     For example, In December 2014 security penetration tests undertaken in Frankfurt and other German airports showed similarly dissatisfactory results.
     Apparently every second attempt to smuggle prohibited items aboard an aircraft was successful. In a report classified as “confidential,” the EC’s penetration testers said “insufficient training of security screeners employed by security service providers” resulted in “inabilities to correctly interpret the x-ray images of screened baggage.”
     In no unclear words, at that time the EC threatened to classify Frankfurt, Europe’s foremost aviation hub, as a “non-Schengen airport.” Revoking the Schengen status for FRA would have seriously crippled German aviation business.
     As air transport security measures are mandated by EC directives, which EC member states must implement into national law (namely EC Directives 300/2008 and 185/2010), the EC has now sued Germany for not meeting its contractual obligations before the EC court. Stay tuned for more news from that dust up.


Greece Issue Apparent

     Elsewhere, Greek air transport workers union OSYPA pointed to “serious security and safety issues” within the Greek aviation sector, saying, “the safety of passengers can no longer be guaranteed under all circumstances.”
     The Greek shortcomings, caused at least in part (it is assumed) by Greece’s dire financial situation and a draconian regime of cost cutbacks at all costs, mean security checkpoints may be insufficiently staffed; there is a lack of police, customs officers, and transport security officers as well as a shortage of fuel, airport fire engines, and x-ray-machines just as the summer season— Greece’s major means of income—is in high gear.
     Without downplaying the issues present in the U.S., Germany, and Greece as well as elsewhere, all of this security-related news seems to have a common denominator . . .


Politics As Usual?

     Political action, strong language, and even well intentioned organizational blah-blah is just talk, and for some sectors has not really translated into concrete, forward thinking security improvement.
     Something neither regulators nor politicians will ever admit is that absolute security (as well as absolute safety) simply does not exist.
     A terrorist determined, motivated, smart, and educated enough to have at least a basic understanding about air security measures may succeed, especially if he or she is willing to risk his own death in favor of whatever crude mission goal he or she might have.
     No question that a certain minimal risk is the price incurred for free trade, speech, religion, and expression of political beliefs.
     That certainly does not mean that the shortcomings identified by the TSA and EC penetration testers as well as other known security gaps should be ignored in any sense.
     Perhaps a better approach in air transport security should take place at a global level directed by ICAO with the input of all stakeholders?
     Singling out “deficiencies on the side of security providers,” as the TSA and EC have done, is but a symptom and not the root cause.


Screeners Are Underpaid

     In times where air travel is cheaper than ever and affordable to everyone, and where tickets to popular holiday getaways sometimes come at less than $100, raising airport fees and taxes is certainly not popular.
     But one view is that insufficient training affects performance of air transport staff in security and safety related functions directly proportional to their remuneration, job security, and social recognition of these jobs.
     Under EC rules, security screeners must undergo a background check and receive a 36-hour mandatory training as well as certain function-specific training and instruction.
     It is a safe assumption that terrorists or other people with intentions to interfere with the safeguarding of civil aviation will receive a more in-depth training about how to breach the security measures in place than does the screener who is supposed to detect them.
     The current regime is also inefficient since funds spent on training are partially misspent because of low social recognition and salaries of security staff, which are, more often than not, employed not by airlines, airport authorities, and regulators tasked with the safekeeping of air transport, but by subcontractors or sub-subcontractors.
     In other words, as soon as a better job opportunity comes up the employee will move on and take his training and experience elsewhere.
     Shortcomings exist also on the regulator’s side.
     The German air transport watchdog, the LBA (Luftfahrtbundesamt) has faced staff shortages for years.
     But while looking for answers, it is thought that a fraction of the financial and personnel resources dedicated to securing the Bavarian Elmau luxury retreat for the G7 summit held in early June 2015 would have covered forthrightly and effectively the majority of air transport security in Germany, at an estimated cost of about 210 million Euros (U.S. $236.5 million).
     While apparently there is no restraint in commanding 17,000 police officers to secure an offsite location in spite of existing secure governmental property, air transport security screeners—the frontline of aviation security—are expected to perform for minimum salaries, which were moved up in Germany at 8.50 Euros (U.S. $9.57) per hour effective January 1st, 2015.
     The average salary of a security screener in the U.S. is $13.57 (12.02 Euro), with about half of the workforce without benefits such as medical coverage.
Jens


Adrien Thominet About ECS Global

India Vibrant & Battling As Usual

Preparations are on for a battle royale in air cargo.
     The opposing sides have readied their strategies and it won’t be long before skirmishes break out.
Holding the fort on one side is the privately-held Bengaluru International Airport (BIAL), red dot left in map above now known as Kempegowda International Airport, while on the other is the government-controlled Airports Authority of India (AAI), which operates Chennai International Airport, blue dot right in map above.


Seeds Of Discontent

     It all started with a report that BIAL had decided to reduce landing charges to freighters.
     The move was apparently aimed to woo international freighter operators to start operations to the airport in southern India.
     Obviously, the move affected Chennai airport: in fact, a number of forwarders have stopped using the airport and diverted shipments to Bengaluru.
     FlyingTypers talked to BIAL to find out about the rebates offered to cargo carriers by the airport.
     The important question was whether such rebates were offered to all cargo carriers or only those planning to start services—in other words, new entrants to Bengaluru.
     The BIAL spokesperson pointed out that there were “no special rebates offered to cargo carriers operating at the Kempegowda International Airport, Bengaluru (KIAB).”
     The spokesperson also said that “with the introduction of the innovative AERA (Airports Economic Regulatory Authority, an independent regulator that determines tariffs charged by all major airports in the country) approved Variable Tariff Plan (VTP) from July last year, any scheduled international cargo airline that operates a ‘new route’ is eligible for lower tariffs.”
     The airport management has implemented this “with an intent to create a mechanism that was transparent and one that would be both attractive and benefit any potential new cargo carrier.”


Impressive Numbers

     For the record, Bengaluru handles around 86 freighter ATMs (air traffic movements) per week and the cargo volumes show that. Cargo tonnage handled for FY 2014-15 at the airport totaled: 279,532 MT.
     Of this, 73,213 MT was for imports while 92,253 MT was for exports.
     Domestic tonnages were: Inbound 58,345 MT and Outbound 55,721 MT. In fact, fiscal year 2014-15 witnessed 15.9 percent growth in cargo: there was 25.3 percent growth in domestic and 10 percent growth in international cargo.


Who Gets The Cargo?

     Though no figures were available on how much cargo destined for Chennai had been diverted to Bengaluru, it is apparent a considerable volume does.
     Some time ago, FlyingTypers was informed that Bengaluru airport was keen to get cargo from Chennai and the surrounding areas by road.
     Apparently, the initiative is still on.
     As the BIAL spokesperson declared:
     “This is an ongoing priority and objective for KIAB. While work in this area has already begun, the cargo business fundamentally works to ensure every effort is made to ship consignments by road or otherwise on the shortest possible route in an expeditious manner.
     “This is a business process and will take some time to establish.
     “To that extent, KIAB, along with its cargo concessionaires and the entire cargo value chain locally in Chennai and the hinterland areas, continue to explore ways of how to move cargo consignments to Bengaluru where and whenever possible.”


AAI Wakes Up?

     Unfazed by the challenge from the GVK-controlled KIAB, AAI has woken up and has plans to hit back by offering incentives in landing charges to freighters at two of the major international airports it controls—Chennai and Kolkata.
     To counter the reduction in charges offered by KIAB, AAI has decided to have a graded structure of discounts: the higher the number of freighter flights by an airline, the larger the percentage of discounts.
     The icing on the cake from AAI is that the discounts were being offered with retrospective effect from January this year.
     So, a freighter operator could ask for refunds
     Stay tuned for that scenario report.
     In any case, this latest move by AAI could help to enhance its non-core revenue.
     AAI Chairman R. K. Srivastava recently said that many initiatives were in the pipeline “to increase our revenue: our target is to increase our non-aero revenue.”
     Cargo, for example, brings AAI around $32 million per year. Once the graded discount scheme is implemented, the figure is expected to rise with more freighter carriers landing at Chennai and Kolkata.
     However, the kind of facilities offered by KIAB could tilt the scales in its favor.
     The Greenfield Bengaluru airport is in the seventh year of operations and “cargo has become a critical component in the regional supply chain,” the spokesperson said, “across pharmaceuticals, perishables, electronics, machinery, automotive, textiles.”

Trending Growth


     A developing business trend that has been critical to cargo growth from the region is the e-commerce business (Amazon headquarters are in Bengaluru), in particular leather and pharma shipments.
KIAB has seen growth in cargo.
     Underlying this growth is the airport’s robust plan and strategic intent to grow the cargo business.
     To make it happen, the airport has invested in developing a world-class cargo infrastructure with state-of-the-art cargo terminals. In 2013, the airside Air Cargo capacity was enhanced with the opening of seven wide-body dedicated freighter aircraft bays with seamless access to the cargo terminal.
     Most recently, in a pioneering initiative to improve efficiency and accuracy and reduce turnaround times and paper usage, KIAB became the first airport in the country to successfully achieve the IATA e-freight “Proof of concept” and to operationalize at the cargo terminals completely.
     KIAB’s cargo partners Menzies Aviation Bobba Bangalore and AISATS move together to make the airport a pharmaceutical, biotechnology, and perishable hub of the region. Last year, for example, Menzies Aviation Bobba Bangalore inaugurated a world-class pharma cold zone, allowing efficient movement of temperature-sensitive goods.
     Additionally, AISATS will soon open its Perishable Handling Center, which is being built for the efficient handling of perishable products by creating sufficient storage capacity, minimizing waste, and reducing operational costs through innovative solutions.
Tirthankar Ghosh


Chuckles For July 27, 2015

Ioanna Chromopoulou and Alexios Sioris

New Landmark For Air Shippers
Ribbon cutting for CTF

Summer Reruns(Dateline Istanbul)—Our first impression upon walking into the building was that we had just landed at Google Headquarters.
     The space was so big, bright, and airy, and filled with young, smart looking, purpose-driven people.
     In this business, the opening of air cargo handling terminals occurs on a regular schedule, and each is undoubtedly filled with the hopes and dreams of everyone involved in its creation.
     Over the years we have had the pleasure and honor of seeing some imaginative facilities debut, both at home in the U.S. and around the world in places like Singapore, the UK, and Dubai.
     But a few weeks ago we travelled to Istanbul to see the new Cargo Transfer Facility (CTF) that Turkish Airways Cargo opened January 1, 2015.
     The new Turkish Cargo CTF is not only big, broad-shouldered, beautiful and situated on a tract of land at Ataturk International Airport that will allow for certain expansion in the future, it is a place of expanded capabilities and great promise. It touches every aspect of the transportation art, punctuated by a light and airy openness that lends itself to the business of air cargo and lifts the spirit and imagination of everybody that comes into contact.
     Turkish CTF Istanbul is the right place at the right time, and even for an old cargo hand it’s nothing short of amazing.
     No, it is not about bells and whistles or razzle-dazzle; what is going on here is smart cargo operations at the hub level, with the potential and benefits to rise up and meet any challenge both today and during the upcoming seasons.
     Put simply, Turkish Cargo has now moved further center stage to claim its rightful leadership position on the world cargo air lanes.


Systems & People

     Rather than rush to judgment by slapping a building full of systems and then hoping everything will work all at once (a mistake that has been made time and again by others), Turkish planners and builders opted to take a patient, measured approach, fully fitting out the new CTF whilst measuring some long term decisions about next generation systems.

Halit Anlatan quotes
     But what just knocks us out about the Turkish Cargo IST CTF is how the building deals with the people who work there: the human dimension. It’s the engine that drives everything.
     CTF is a space that allows for everybody inside to view operations and vital activity, offering an unobstructed view of the cargo workspace through giant floor-to-ceiling window walls.
     The view imparts a sense of motion and interaction, a ballet that can only help encourage ideas, sharing, cooperation, and other efficiencies.
     Inside, the Turkish Airlines Istanbul Cargo Transfer Facility staff meeting rooms—where the strategies are planned—are situated facing the air cargo action.
Al Farabi Mural
     There is also a sense of history as interior wall spaces tell the story of great Arab philosophers, poets, scientists and mathematicians, including Abu Nasar Al Farabi and Jallaludin Rumi, whose messages spread to impact people all over the world.
     A bright, busy cafeteria that seats 600 people faces the pallet build up area so that meals (there are no special classes here, meaning both white and blue collar employees dine in the same space) at CTF include an overview of the build up process.
Turkish CTF lunchroom
     Looking a bit further into the Turkish CTF, we also noted only three private offices in the entire place.
     The main gallery where all the people sit on the top floor includes 300 meters of open plan offices under high ceilings with exposed heating and cooling. Everything is painted white, elevating the open Bauhaus feel of the place in an upward sweep of understated functional elegance.

Turkish CTF offices Turkish CTF Office


     “I get a very good daily workout walking back and forth here, before I go to work each day, and also sometimes to work off lunch,” smiles Turkish Cargo Vice President Sales Halit Anlatan.
     “Our new cargo facility offers streamlined operational processes that have been redesigned, and service quality has been maximized.
     “Our network of more than 260 destinations in 108 countries, currently served by 9 freighters with 48 destinations and 253 passenger airplanes, has a center port for a growing business in air cargo.
     “The CTF includes a larger cargo acceptance area, accelerating cargo processes.
     “We have also optimized space for specialty cargo with dedicated areas to handle every consignment from bulk to refrigerated to high value to express—you name it.
     “Whether Live Animals (AVI), Dangerous Goods (DG), Vulnerable Cargo (VUN), Valuable Cargo (VAL), or anything else.
     “If it can be shipped by air, our CTF has a place for the cargo via Istanbul,” Halit insists.
     The cargo admission and delivery space includes 53 bays, with several gates dedicated to TK Plus and special cargo.
     Also vehicle admission areas are 42 m. wide, allowing vehicle traffic and maneuvering to be managed smoothly.
     Accommodation of many different types of vehicles will be facilitated by means of movable level adjusters.


Room To Grow

     Technical Specifications of the New Cargo Facility put future annual throughput tonnage capacity at 1.2 million tons, but Halit points out there is room to grow.


First He Helped Build It

Mustafa Kemal Ozahi     Mustafa Kemal Ozahi is project engineer for Turkish Cargo.
     As part of the team that planned and built CTF, today Mustafa Kemal helps operate while keeping a weathered eye out for the facility.
     Mustafa Kemal studied industrial engineering in school but then worked in logistics for the fashion industry.
     Having spent time on the customer side of the equation he notes a keen awareness of their needs, which gives him knowledge that has served him well both in the design stage and today in the ongoing implementation of operations for the new Istanbul hub.
     “Actually, when we launched CTF on January 1, we moved operations into the new facility and had everything done in one day with no problems,” said Mustafa Kemal.
     “We were keenly aware that our former facility here was a level two facility. “Too much wasted motion.
     “Our biggest challenge in this new CTF was changing the mindset.
     “People, we felt, would revert to the processes they were familiar and comfortable with from habit.
     “So we commenced staff retraining prior to the move last August 1.
     “Today, everyone is on the same page.
     “There is total seamlessness and transparency in communication here because of the physical layout of the building.
     “That is a real plus for the three shifts a day with 200 people, four shift managers, and eight shift supervisors.
     “Our old facility could handle 550,000 tons, today we are handling 700,000 tons.
     “The projection ahead 4 years is 1.2 million tons annually.
     “Looking ahead we are changing our IT set up to IBS.
     “We currently have sent staff to Lufthansa, our alliance partner, to learn best practices, among other things,” Mustafa Kemal said.

Turkish Booth At ACE
The Vision Thing

     “Bringing this great facility forward we notice that there is better and clearer focus on vision—that allows better interaction for everyone working together as a team, to share the same passion,” said Mr. Anlatan.
     “We are an airport to airport service, so we have to be a true partner to the freight forwarder.
     “Right now, price has become a bargaining chip because of the cost of fuel, but we buy in Kazakhstan where nothing has changed.
     “So the bottom line is Turkish customer service.
     “We are not an industrial country; we are a trading conduit.
     “Now, in addition to our growing, modern air fleet (including freighters), our incredible geographic location as a nation and gateway, and the determined effort of a truly dedicated air cargo management and staff, we move ahead in 2015 seeking new business and challenges.
     “This facility is the new landmark for air shippers.
     “Our investment here is our commitment to a long-term program to take our cargo enterprise in a leading direction well into the 21st century.
     “Turkish Cargo can handle it,” Halit Anlatan said.
Geoffrey/Sabiha



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