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Vol. 15 No. 88	Monday November 14, 2016

Ryanair Adds FRA
Chancellor Helmut Schmidt      An airplane from the Irish discount airline Ryanair is pictured at FRA earlier this month.
     Starting in March 2017, Ryanair will add four routes out of Frankfurt Airport, Alicante, Faro, Malaga, and Palma.
     Ryanair also said it will double its operations at Hamburg Airport for the 2016/2017 winter timetable, adding seven destinations including: Sofia Brussels, Dublin, Gran Canaria, London Stansted, Manchester, and Milan Bergamo.
     “We are delighted by Ryanair’s growing commitment to Hamburg Airport,” said Michael Eggenschwiler, CEO of Hamburg Airport.

Schmidt Is Hamburg

Herr Eggenschwiler is pictured with Olaf Scholz (R), first mayor of Hamburg (SPD), unveiling a large picture of former German Chancellor Helmut Schmidt in Hamburg, Germany, last week.
The airport in Hamburg has now been renamed to include the former Chancellor, who died on November 10, 2015.

Jean-Claude Delen Jean-Claude A FIATA Force Field

Soft-spoken Jean-Claude (JC) Delen is one of the most gracious gentlemen working in transportation today.
He is a determined, tenacious, indefatigable personality; a fist in a velvet glove; a one-man FIATA force field.
     As the historic IATA FIATA cooperation agreement was announced at the FIATA Airfreight Institute’s 90th meeting in Dublin, Ireland, in October, Board Member JC Delen (who also serves as current FIATA Treasurer) noted:
     “From inception, this project has received strong support from FIATA’s Presidency.
     “The IFACP delegates have always displayed a strong commitment to craft and to implement a new global program aligned to the objectives of partnership, mutual benefits, and reflective of today’s forwarder-airline relationship.
     “This gigantic breakthrough was formally agreed upon in July 2016 and we signed the document to give recognition to those who made this agreement possible,” Mr. Delen said.

Man With A Plan

One needn’t dig deep to find that JC was the steady hand that brought the IATA/FIATA idea to fruition. Back when it looked like it might end up parked permanently on the street of broken dreams, JC, along with others from both sides, brought it back to life to see the landmark agreement fulfilled.

A Lifetime of Service

     JC served as Chairman of the Belgian Air Freight Institute.
     Later, as Chairman of the Belgian Forwarders Association, the link was made with FIATA (1992) and JC moved as a member of the (FIATA) Air Freight Institute.
     JC served as Chairman of the FIATA European Region, entering the Presidency of FIATA in 2002.
     One could say that his office as President of CLECAT (the European forwarders’ federation) between 2005 and 2009 paved the way for his election as FIATA President in 2009, where he served for the traditional two-year term.
     Ask JC “Why FIATA?” and his answer is immediate and without qualification.
     “There is only one FIATA and in transportation FIATA is the network of the real professional,” JC declares.
     “The FIATA network does not exist anywhere else.
     “FIATA includes associated members by countries and also close to 6,000 individual members from all over the world.
     “If you take all the associations and the people who work for them, that number escalates to more than 10 million people,” JC Delen said.

Power In Numbers & Purpose

     “Not many people realize that this organization is so strong.
     “In my mind FIATA is one of the best-kept secrets.
     “Part of that is because FIATA has been conservative throughout its 90 years of existence.
     “But today that changes a bit as the reality of 2016 and the IATA accord drives FIATA to share what we are doing with everyone.”

Training Is Key Activity

     “For example, our training program for transportation is second to none and perhaps the strongest in the world.
     “The FIATA Institute offering is quite wide and varied.
     We train the trainers and conduct the classes and have moved along with a varied and complete menu of online remote programs as well.
     “Our FIATA Academy offers courses that go all the way up to a Masters Degree that is presented to various universities.”

Why Join FIATA?

     “FIATA is the most important network for freight forwarding in the world.
     “I served as CEO of DHL Global Forwarding. Across the board there are big forwarding companies, but FIATA offers the connectivity, clout, and opportunity for the small and medium forwarder to compete by joining a global network.
     “With FIATA, you gain agents in other countries with first-hand knowledge of how things work with various authorities, like customs in Zimbabwe or specific shipping rules enacted by the government in Myanmar, for example.
     “FIATA brings all of that home.
     “We have the knowledge and the connections, and we share,” Jean-Claude Delen declared.

About Jean-Claude

     Jean-Claude Delen began his career in 1965.
     “I’m a dinosaur,” he smiles.
     “I began just after my military obligations [in Belgium] were completed.
     “My army job was logistics, so I suppose my connections in this business predate my joining it,” JC said.
     “Out of the army, a friend came by and said: ‘By the way, there is an American company called AEI (Air Express International) setting up in Belgium and looking for people. Are you interested?’
     “So I joined AEI and was mentored extensively by the President, Guenter Rohrmann.
     “In fact, for a long time I carried an AEI business card stating that I was one of ‘The President’s Men.’
     “We still, thankfully, have occasional contact today,” JC recalled.
     “I stayed with AEI until the company was taken over by Deutsche Post, becoming Danzas AEI and then DHL, where as mentioned I served and ended my career as CEO for DHL in Benelux and France.
     “I thought I would stay in and focus on FIATA, but got a call from the CEO of Brussels Airport who declared that he was ‘not ready to say goodbye after my serving Brussels Airport for more than a half century.’
     “‘Don’t you want to have some fun anymore?’ he said.
     “‘Fun, yes,’ I replied, so I joined Brussels Airport.
     “Now, I can’t say that 2016—all things considered—was much fun, but it certainly was challenging.”

Some Things Never Change

     “The management team of Brussels Airport is really first rate,” JC shares.
     “Life is the greatest education.
     “When I was at the wheel of DHL and other places on the way up, we would come up with an idea and it would be put into action.
     “Now in the gateway mode, opportunities present themselves that take some months, if accepted, to implement.
     “Somewhere in between both experiences I am also living in the steadily advancing transportation force known as FIATA.
     “Although I am the older guy in the room now, through it all my daily experience feels fresh and challenging.
     “I think with better cooperation and understanding, there are good things ahead.
     “I have more to give and that makes every day all right with me,” Jean-Claude Delen concluded.
Geoffrey

In This Issue:

Oh What Antonella Can Do!

Babar Of Pakistan

Krems: "Forwarders Are Sexy"

And More

Storm Clouds At Etihad-Jet

Etihad Airways Chief Executive James Hogan, right, speaks as Naresh Goyal, Chairman of India's leading private sector airline, Jet Airways, looks on at a press conference in Mumbai on June 10, 2008. Etihad had just announced a $379 million deal to buy a 24 percent stake in Jet Airways.
      Jet was in tough financial straights. Now in 2016 it’s a bit better with Etihad holding 49 percent of Jet business, but a rift between Hogan and Goyal is reported.
      Is all not well ?with the Jet Airways-Etihad marriage??
      Recent signs indicate that things are not as good as they should be and that there could be continued storm clouds on the horizon. After all, the partnership ushered in profits for the Naresh Goyal-led Jet Airways: in the first quarter of 2016-17, Jet’s operating profit shot up by 124 percent to $33 million. Profits led Jet Chairman Goyal to comment in August this year:
      “Jet Airways has strengthened its core operations and achieved better capacity utilization and greater efficiency.
      “We have been able to report lower non-fuel costs in spite of inflationary increases and the almost 6 percent weakening of the Indian rupee against the U.S. dollar.”

Code Share Reported Strong

      Goyal emphasized that the strategic partnership with Etihad continued to be strong.
      Code-share traffic delivered by Etihad and its other partner airlines to Jet had grown by 41 percent, while revenue from the Etihad alliance was up by 38 percent.
      James Hogan, Vice Chairman of Jet Airways and Chief Executive of the Etihad Aviation Group, joined Goyal to say “we will continue to strengthen the partnership between Jet and Etihad by driving further synergies, along with other partner airlines.
      “In a competitive market, we have together created a winning combination of a wider combined network and exceptional guest experience for travellers to and from India.
      “Together, we (Etihad and Jet) are the largest combined scheduled operator of flights to and from India with a 20 percent market share.
      “Our robust partnership continues to go from strength to strength,” Hogan said.

Executive Shuffle

      However, elsewhere India aviation industry watchers point out that notwithstanding the profits and Naresh Goyal’s emphasis on the strategic partnership, a number of top executives placed by Etihad in Jet have moved out en-masse during 2016.
      While James Hogan and James Rigney, Etihad Chief Financial Officer, continue to be members of the Jet Airways board, Cramer Ball, who had been appointed CEO, was the first to go.
      Ball was followed by Martin Drew, Vice President, Cargo (his position has been filled up by Pradeep Kumar, formerly with Emirates); Rajeev Nambiar, VP, Sales; Renyl Rauf, VP, Financial Planning, Reporting and Projects; and Business Advisers Roy Kinnear and Rangesh Embar.
      A source said “it is quite apparent now” that Naresh Goyal has started calling the shots in Jet.
      “The carrier’s management is now handled totally by three of his most trusted aides: CFO and acting CEO Amit Agarwal, Chief Commercial Officer Jayaraj Shanmugam, and Wholetime Director Gaurang Shetty.
      “In fact, it is Shetty who is doing all the commercial and global deals.”

What Problems?

      For their part, Etihad has denied any rift with Jet.
      An Etihad spokesperson told Khaleej Times that “reports circulating about the relationship between Etihad Airways and Jet Airways are absolutely unfounded and baseless.”
      A joint statement from both carriers seemed to back that up, stating:
      “Both airlines continue to enjoy a strong, healthy relationship since the forging of the partnership three years ago.
      “Anything to the contrary is completely false, and reports of such are misguided and misinformed.”

Looking Ahead

      Analysts and industry watchers apparently see something else.
      Mark Martin of Martin Consulting LLC, for example, was quoted saying that what “Goyal has done is systematically de-centralize Etihad’s bit of the whole control over the combine and brought it to himself.” Speaking to a business daily, Martin also said that Goyal was the “CEO of the company for all practical purposes.
      “Which is why, apart from the reshuffles in management, you have seen a new marketing campaign, a new pricing strategy, a new loyalty program and of course new global, commercial alliances being formed.”

Timing Was Right

      The Jet-Etihad partnership took place at the right time.
      Jet was in dire financial straits and Etihad was looking to enter the Indian market in the face of the competition posed by Emirates and Qatar.
      So, while the tie-up worked on one level, on another there were apparently differences of opinion between Hogan and Goyal.
      The first signs that Jet wanted to move away from Etihad came when Goyal tied up with KLM and Delta and shifted his European base from Brussels to Amsterdam.
      The move, according to insiders, found few takers at Etihad, which wanted Jet to set up a base at Dusseldorf, AirBerlin, one of Etihad’s partner hubs.
      For the moment, however, even though reports indicate that Naresh Goyal wants to travel on his own path, he cannot afford to do so.
      Around the middle of February this year, Etihad decided to raise its stakes in Jet Airways from 24 percent to 49 percent.
      In fact, since India opened the doors for foreign carriers to invest up to 49 percent in aviation, the move would not require the approval of the Foreign Investment Promotion Board.
      The future of the partnership will be eagerly watched.
Tirthankar Ghosh

      The increased use of robotics and automation in the manufacturing and logistics sectors will, over the next decade, limit East-West trade growth and lead to a reduction of supply chain and air freight personnel involved in handling and distribution, according to Wolfgang Lehmacher, Head of Supply Chain and Transport Industries at the World Economic Forum.
      Lehmacher told FlyingTypers that the technological means and maturity to create autonomous supply and value chains was now almost here, and the adoption of new technologies could be seen in everything from flying shuttles to driverless cars and rolling robots. Citing Foxconn’s efforts to automate some of its electronics factories in Asia, which have led to personnel lay-offs, he said automation would equally affect manufacturing and distribution in the West and would encourage producers to locate closer to key markets to reduce transport costs, a move that could diminish air and ocean freight demand.
      “The costs of operating robots hardly differ by location—whether East or West, the cost of robots is more or less the same,” he said.
      “In automated businesses, labor cost differences become irrelevant. The difference then is the cost of transportation and so there are advantages in proximity to markets,” he said. “The closer the factory is, the faster the supply/service, and the better understanding of the customer’s needs and wants.
      “Today’s consumers expect instant delivery—in metropolitan centers within one or two hours. Amazon Prime is a life case example.
      “Furthermore, consumers expect regular changes of models with short lead times. This requires short supply chains. In the past, quality control was reason for centralizing production and worldwide shipping. Today, with high visibility of things through the Internet and powerful high performance control towers, manufacturers can centrally ensure the quality across a fragmented global production footprint.
      “With largely automated manufacturing, quality concerns are less and less a decision-making criteria. Production can easily go where the customer is located, shortening the distance of transport.
      “All these factors drive regional and local autonomous production, which reduces the demand for East to West trade flows.”
      Lehmacher said the adoption of new technologies would also lead to a fundamental restructuring of many workplaces. “Robotics/Automation is the synonym for labor substitution,” he said. “According to the Citi GPS report Technology at Work – The Future of Innovation and Employment, 62 percent of workers are at high risk of automation in manufacturing and 75 percent in transportation and warehousing.
      “At the same time, technology will create new job titles. For example, for control, maintenance, and repair.”
      But the question facing policy makers is to what extent the job gains offset the losses. Lehmacher said 1,500 new job titles emerged following the invention of the personal computer as new industries such as video and auto streaming, internet video broadcasting, and social networking services became commercially viable.
      “The app economy has surged since Apple launched its app store in 2008, providing work for an estimated workforce of more than 750,000 Americans,” he explained. “However, in 2010 only about 0.5 percent of the U.S. workforce was employed in industries that did not exist a decade earlier. Furthermore, the workers in these industries are substantially better trained than the average of the workforce and earned on average more than twice the U.S. median wage. Consequently, the new jobs created by technology have largely been confined to better skilled workers.”
      He said governments all over the globe needed to ensure that people were properly skilled in line with the needs of the automated world, and that those who could not or did not wish to keep up with the new requirements were not left behind and were helped to find a way of making a living.
      “This can be in more social and long-term oriented family businesses, in self-employment, in areas where human labor will continue to be needed, such as health care, or in the public sector itself,” he added.
      “But robotics and automation can also help to fill labor and skill gaps. According to a study carried out by AeroProfessional, more than 50 percent of airlines think there is a skill shortage. The American Trucking Associations estimate that the U.S. transportation industry is short of 35,000 to 40,000 drivers. Britain’s lobby groups estimate that the United Kingdom is lacking 45,000 drivers.

“Robotics/Automation in the form of self-driving trucks and unmanned aerial vehicles will help to ease this pressure on the transportation industry.”
Sky King

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