We caught up with President American Airlines Cargo Jim Butler recently to find out how 2015 has panned out so far for AA Cargo. FlyingTypers was also curious as to the things that merit interest and attention from a top cargo executive at the world’s biggest airline.

Collaborative Effort Tops All

     “For the company as a whole, we’ve been focusing on engaging our employees so they have the tools and technology needed to do their jobs well. This means, running a safe, reliable and compliant operation our customers can trust.
     “When we reorganized last year, we repositioned cargo under the operations organization at American and it has really started to pay dividends.
     “Teams around the company work much more collaboratively to improve the operation and make recommendations for where we can evolve our processes and make positive change.
     “This level of cooperation starts with a focus on safety, but will also optimize our performance across the operation.
     “On top of that, the airline is investing in the facilities and equipment our cargo teams need to be successful.
     “Just this summer, we’ve opened our PHL cold chain facility, expanded our footprint in key cities, invested in our DFW hub, and are now taking delivery of the first of a long list of new equipment that are more reliable and efficient.
     “It’s all part of our commitment to running an operation that is not just safe for employees, but also secure for our cargo and can be counted on to deliver a positive experience for our customers.”

Next on the Agenda

     “As far as what excites me for the remainder of the year, I would say the focus is on being our customers’ preferred choice in air cargo.
     “We continue to talk about how our network has grown—and we should, since there’s nothing more valuable than being able to offer new connection points for cargo customers, but we are also very focused on developing the industry’s best customer experience, one that helps drive partnerships and customer loyalty well into the future.
     “That means being easy to do business with in all aspects, from booking to billing and everything in between.
     “As an example, in the not-too-distant future, our customers will see enhancements to the way they view and receive information about their shipments, and we are confident they will be very happy with the results.
     “We’re looking to make similar improvements to all aspects of our business, with the customer’s needs being front and center,” Jim Butler said.

The Butler Did It

     Jim Butler came to air cargo via a somewhat circuitous path, one he calls “non-traditional.” Perhaps the most fascinating thing about the air cargo industry is how many of its people arrive at their jobs having diverged from other careers. Air cargo may just be the melting pot of industries. Given these non-traditional pathways, we’re always curious as to whether air cargo’s inhabitants still find their careers interesting and fulfilling.
     “I was focused on American’s bankruptcy and the merger with US Airways before joining cargo in late 2013, so perhaps I came to cargo in a more non-traditional way.
     “However, is it still interesting? I am just getting started!
     “In many respects, the cargo side of the airline is more complex and there was a bit of a steep learning curve, but I’m incredibly proud of the team who persevered through the integration and other changes that have allowed me quickly up that curve.
     “Given that we operate as a complete business, having all of the individual components in one organization is exciting and will ensure we have our work cut out for us for many years to come.
     “So, if I had to choose a new job, air cargo would certainly be at the top and, with enthusiasm, a renewed strategic focus, new investment, and a strong vision for cargo at American, we are recruiting and developing some of the top talent from other parts of company as well as the outside.”

Family Funnies

     Serving as Homers to the air cargo Iliad, we see more than just the day-to-day working activities of air cargo’s driven community. And as a family-run business, we know how easily family and work can overlap. We wonder how one of the top people in air cargo carves out family time from his busy schedule.
     “Let me be honest—there is nothing more important to me than my family. My wife and two children are incredibly supportive and have allowed me to devote the time, energy, and travel necessary to focus on the task at hand.
     “But we also like to travel together. Earlier this year, we had a funny moment because I quietly took them on a business trip for the first time when I traveled to Shanghai for the IATA Cargo Conference so they could sightsee while I worked.
     “Well, that worked great until their picture came out in Flying Typers on the second morning.
     “My kids felt like little celebrities when they walked through the lobby! As for favorite cities, we really are partial to London where we lived for two years so we try to go back often. And, while I try not to steer my children toward any particular profession, what drives me to transportation is how incredibly dynamic and competitive it is.
     “I often tell people that more happens in 6 months in this industry than over 6 years in most others.”

The Airline Forwarder Relationship

     “Airlines and forwarders must continue to evolve relationships to explore how we can provide more integrated solutions to the shipper community.
     “We have explored this and it has been really successful for specialty products like ExpediteTC.
     “When a single shipment can literally be worth millions, shippers are more interested in understanding the specific processes the airline has in place in order to become comfortable with handing over the shipment.
     “Our goal is to do everything in our power—including working with our partners—to ensure all time- and temperature-sensitive products maintain the same level of quality and effectiveness from the time they’re accepted to the moment they reach the patient in need.
     “The best way to ensure this success is to get together before the first shipment is accepted and lay out the specific roles, responsibilities and processes that each party will use to succeed.
     “Honestly, if I was shipping that type of product, it is the least I would require. Once there is agreement, we can deliver the service customers have come to expect.”

Building Global Markets

     “We continue to focus on our transpacific network, where we’ve seen significant capacity growth in the last few years.
     “We now have 11 daily departures out of Hong Kong, Seoul, Shanghai, Narita, and Beijing and we’re excited to add service to Sydney from Los Angeles later this year. So Asia is now an even more integral part of our network, and the real strength comes from our ability to move cargo from Asia beyond the U.S. gateways and into Latin America, and vice versa. So, even as we see some weakness in demand around the globe, we view this as a unique opportunity, one that we will continue to develop.”

The Paperwork Jungle and e-AWB

     “In 2014, we intentionally set modest goals for ourselves given our integration, simply because we had a conflicting objective of providing a seamless integration of two major divisions, and we didn’t want to introduce a major change into the business during that time. Now, we are able to set loftier goals and are incredibly excited to have the opportunity to direct our focus on becoming a paperless operation—and are really challenging our organization to seize the momentum. Not only is this a strategic part of our path toward more efficient, personalized and consistent interactions with our customers, it’s another initiative that adds to our overall, companywide goal of reducing our carbon footprint. But I won’t be satisfied until we complete the transition to e-freight.”
     “Encouraging and supporting participation and adoption from all stakeholders, through a standardized process across the industry, would greatly help to accelerate the paperless process. It’s a simple statement, but can lead to a variety of positive opportunities for our colleagues, partners, customers, and us. Because there is not enough standardization, the eAWB initiative is literally thousands of small, local projects in cities around the world, which slows the ability to see rapid change. Also, due to this, you have to recognize that it will take resources to be successful.“

Talks To The Animals

     Given the recent upheaval around “Trophy Cargo,” we were curious as to how AA Cargo was responding to the highly-politicized situation.
     “Obviously, this is a case where we made the swift and easy decision to do what we thought was right.
     “So, as of August 3 of this year, we officially do not accept any shipment of buffalo, elephant, leopard, lion, or rhinoceros trophies.
     “This also follows from having banned the shipment of shark fins earlier this year.
     “Ultimately, we are committed to evaluating our policies and will continue to consider swift changes where we deem appropriate.
     “We have over 50 years of experience shipping [live] animals, and have maintained a strong commitment to ensuring the welfare of all animals entrusted to us. No matter the animal, we follow special steps to make sure their travel is as comfortable as possible—because we know our customers’ pets aren’t just another piece of cargo, they’re part of the family. For non-domesticated animals, we have worked with wild, zoo, and exotic animals being shipped for safe, humane reasons, such as a movement to a sanctuary, preserve or rehabilitation center.”

Pharma To Fashion & Back Again

     “Our pharma business has been a big focus for us this year with the increasing demand for important vaccines and medications across the world. It is just one of the sectors where we don’t leave anything to chance—and we’ll continue making valuable investments in our infrastructure and people to make sure we provide our customers with the best service available in the industry.
     “This brings me back to our fully dedicated PHL cold chain facility, which was a huge step in enhancing and growing our temperature-sensitive business.

The American Airlines Cargo Pharmaceutical & Healthcare handling facility at Philadelphia International Airport has an independent power backup system, and significant capacity for Controlled Room Temperature (CRT: +15°C to +25°C) as well as a refrigerated cold room (COL: +2°C to +8°C). There is also a dedicated active container management (ACM) area with plug-in stations for up to 30 equivalent RKN electronic-type units.

     “With the many routes we now have available flying in and out of Europe, we have seen an increased demand for the shipping of more specialized products, such as high-fashion items, textiles, and auto parts. We expect this business to continue growing and anticipate the transport of more pieces from high-end brands and automotive manufactures to gain momentum as we continue to build out our fleet and expand the network.”

Bettering Air Cargo

     “Education, in many aspects of our lives, is the key to growth and new opportunities. Training and educating our employees, from their first day on the job to the day they retire, remains a highly visible and supportive part of our company’s vision. Looking at the industry as a whole, we can focus on:
     •  Paying attention to related markets and industries and the advancements they are investing in—as those are early indicators of how air cargo will be expected to evolve.
     •  Understanding and looking to leverage technologies that already exist in related supply chain/logistics and even consumer driven arenas—customers (whether b2b or b2c) have similar expectations in terms of ease, convenience and responsiveness.
     •   Data, data, data – the way we manage it, share it, and leverage it in the future is critical to ensuring that the talent in our organization can move us in the right direction.
     •   Educating staff and new hires continually—again, continuous growth is the key to long-term success.
     “The minute your organization stops learning and gets comfortable with the way things are done is when the world passes by at a pace you can’t keep up with.
     “And that’s not what we want—we want to LEAD change, not chase it.
     “As I’ve mentioned before, the key to an experience our customers deem excellent is engaged and well-informed employees.
     “By focusing on aligning tools and modernizing processes on a global scale, you create an environment of collaborative teamwork and mutual respect within a culture of employees who want to do their jobs well. Modernization of tools might include anything from new ground equipment to the implementation of new automated systems, which can assist in the elimination of errors.
     “It’s about setting up employees for success by giving them the time and tools needed to deliver.
     “At American, we’ve just completed a global training course with our customer-facing employees to boost the interpersonal relationship skills which I find critical to our long term success.
     “This is, and will always be, a business built on relationships.
     “We pride ourselves on having strong personal relationships with our customers and knowing how important engagement is to maintaining that two-way conversation around industry trends and service improvements.
     “We are not always going to get it right, but a strong partnership can overcome those challenges as they come up.”

Looking At Tomorrow

     “At American, we’re not just investing in our daily operation and current employees, we also make sure to look ahead and do our part to help improve on our future by supporting those who, one day, will fill our shoes and continue our legacy.
     “Most recently, our company’s education foundation awarded first-generation college students of American employees merit-based scholarships.
     “These were based on financial needs, academic achievement, extracurriculars, and community involvement.
     “We’re very proud of our company and employees, and find motivation in the next generation who will continue our work in this globally important industry.
     “We have a great story to tell and have a strong value proposition for new, energetic, innovative team members and each one of us in the industry should prioritize telling this story and attracting this new talent.
     “The industry should be proud of the unique opportunity we have to work in cargo and open up that opportunity to a more diverse group of talent.
     “Until air cargo recognizes that the right balance between people with institutional knowledge and those with fresh perspectives is critical to an engaged, driving workforce, our industry will not win.”
Geoffrey

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