ACAAI top brass: (L-R) Outgoing President S. L. Sharma, President Hemant Bhatia, Vice President T. A. Varghese and Secretary General Sunil Arora.

For the first time in its history, the Air Cargo Agents Association of India (ACAAI) has decided to hold its 43rd Annual Convention in a European city: Athens.
      The convention begins tomorrow (November 16-19) and will discuss future strategies for the EXIM cargo sector.
      Europe holds a special place for Indian exporters. While 49.4 percent of Indian exports by value are sent to Asian countries, 18.7 percent are meant for Europe, 17.1 percent to North America, and 9.7 percent to Africa. The effort by ACAAI should bear some positive results.
      In fact, the ACAAI Managing Committee selected Athens as the venue for the convention after looking at places like Bali, Abu Dhabi, and Manila.

Access Agenda

      Access to the European market is important, keeping in mind that India’s exports have dwindled continuously for the past one and a half years.
      Exports to the EU, for example, dipped by around 4.5 percent in 2014-15.
      It is known that the EU would also like more of a footprint in the Indian market given the economic slowdown in the region.
      According to India’s Ministry of Commerce and Industry, the EU as a bloc of 28 countries was India’s ninth largest trading partner in 2014.
      India’s overall bilateral trade with the European Union for the period 2015-16 is $88.13 billion, comprising of exports valued at $44.60 billion (17.02 percent of India’s exports) and imports of $43.53 billion (11.44 percent of India’s imports).
      Members of ACAAI’s Managing Committee said it was important to keep everyone abreast with the current global economic scenario and in India.
      While the scenario was changing rapidly with digitization, the customers were demanding time bound deliveries.
      At the same time, the competition had changed the whole business.

Resurgence India

      The theme of this year’s ACCAI convention is “Resurgence of Air Logistics in India,” and while the Managing Committee expects large participation by members—given the attraction of Athens as a tourist destination—who will focus on the business. Veteran Convention Chairman Sunil Arora (he was responsible for organizing the last two conventions, Shanghai in 2014 and Ho Chi Minh City in 2015), while speaking to FlyingTypers, pointed out that the convention would be “full of serious business discussions” as well as a fair share of leisure.
      The discussions at the meet will analyze the current global economic scenario and its impact on the export-import industry, particularly on the air cargo industry in India.
      Arora also said that members attending the convention would also “be able to discuss the rapid changes that are taking place in the Indian economy, the moves in the ‘Ease to do business,’ the growth of e-commerce, safety and security of air cargo, perishables, and a whole lot more.
      “Air cargo,” said Arora, “is directly linked to the economic graph and growth of any country that in turn relies on global trends.” Despite the recessionary trends in other countries, he was quick to mention India was witnessing positive economic growth “though our exports levels are below expectations.”

A Fork In The Road

      What is most important is that this year’s convention is taking place at a crucial juncture.
      Mentioning the theme, Arora said there was “a vital need to rejuvenate, resurge, and reassess to meet the challenges facing the industry and be ahead in the race for global pre-eminence of the skies.”
      Among the other conducive factors are moves by the government, which is on overdrive to bring in air connectivity with the upgrades and revamps of Tier-2 and Tier-3 airports and has also instituted measures to ease the business processes by establishing procedures to reduce dwell time.
      To top it all, the country’s economy is doing well and with international air cargo figures now showing signs of buoyancy, an upbeat Arora commented that ACAAI members as well as other Indian forwarders were expecting “from eight to ten percent growth of the international air cargo market in India in this financial year.”
      He pointed out that the government’s policy measures to boost manufacturing, radically change the Goods and Services Tax regime, enhance infrastructure and technology, and implement single-window clearance would help the business a great deal.
      Arora also said that the convention includes foreign delegates from trade associations along with the Indian Ambassador to Greece and officials from the Ministry of Civil Aviation and Ministry of Commerce & Industry.
Tirthankar Ghosh

     As FlyingTypers continues our exclusive series, “All About Airports,” asking leading world gateways about programs and initiatives that work for them and might prove useful to other airports in the world, we land this time at Fairbanks, Alaska.
     What becomes instantly apparent is that air cargo up north is much more than seat-of-the-pants operations and colorful ice pilots.
     Here we discover how a diversionary airport plays a critical role in a major cargo hub’s success.
     We have also included some other chapters in our coverage with easy click-through reading.
     Take a moment and read Atlanta’s plan for truck queues and other informative strategies our reporters have gathered about our airport partners. Thanks for your comment.

     A common misconception about Alaska is the impact of its geographic location in relation to the rest of the United States.
      The 49th state is most assuredly part of the U.S., but is so remote geographically it could be treated as its own territory or country.

The Exception

      With a few thousand miles between the state and the rest of the nation, certain regulations that apply to the lower 48 may not necessarily be relevant to Alaska. The U.S. Department of Transportation recognized these differences and implemented an exemption for air cargo.
      An example of this comes from The Jones Act, a law that prohibits a foreign entity from transporting goods between two points in the U.S.
      This exemption allows international cargo carriers to land in Alaska and transport goods to another U.S. destination without being subject to certain limiting federal regulations.
      In addition to the exemption, The Stevens Amendment authored by Alaskan Senator Ted Stevens further outlines Alaska’s unique cargo transfer rights and works in conjunction with the U.S. DOT exemption. In other locations, this could be considered cabotage, which Merriam-Webster defines as “trade or transport in coastal waters or airspace or between two points within a country,” and can be punishable by law.
      John Parrott, The Ted Stevens Anchorage International Airport (ANC) Manager stated that, “Between the two [pieces of legislation] it’s pretty interesting and creates a unique way of operating.”
      Alaskan airports must apply for the exemption every two years.

The Aerial Lifeline

      Another difference between Alaska and the rest of America is that many residents in rural areas rely solely on aviation as a means of transportation in and out of their communities since roads aren’t available. Aviation therefore is more a way of life and can determine one’s quality of living. Anchorage and Fairbanks are two of the largest cities in Alaska and are home to the Alaska International Airport System (AIAS), which is comprised of ANC and Fairbanks International (FAI) Airport, which play a key role in rural transportation.

Tale Of Two Airports

      Many Alaskans are familiar with long travel times. Anchorage and Fairbanks are separated by a mountain range and sit on separate fault lines. They each have distinct but different weather patterns. Rather than driving, residents prefer flying an hour from ANC to FAI or vice versa. The two cities are close by air but a far piece apart by road.

Hand In Hand Never Closed

      Geographically, the two airports are close enough that either one could act as a diversionary airport for the other.
      What this means is if an event temporarily closed one or the other for any reason, a passenger carrier or cargo carrier could divert to the opposite airport without adverse impact on fueling requirements. Both airports are capable of handling the largest aircraft that can be flown. ANC is substantially busier than FAI, increasing the capacity at FAI to handle diverts. The geographic and operating differences between the airports enable them to boast that there hasn’t been a simultaneous closure since the airports were linked in the AIAS in 1961. “We are too far apart to be hit by the same thing,” Parrott stated. This is something the cargo industry can count on and upon which the system capitalizes and considers in their business model in hopes of gaining new air cargo business.

Tops Air Cargo

      According to the Airports Council International (ACI), ANC was the 4th busiest airport in the world for air cargo tonnage in 2015.
      When asked about FAI’s role in ANC’s success, Parrott explains that “FAI is our spare runway” and carriers know that if they land in Alaska they will be attended. If for some reason cargo carriers are unable to land at ANC they have the peace of mind knowing they can land at FAI without having to carry more fuel.
      “It’s about maximizing your bottom line revenue,” he says. “If you have to carry more fuel, you’re carrying less cargo and you aren’t being paid to carry fuel.”
      He then goes on to explain what makes carriers decide to land at ANC over other airports: “money.”
      “In my humble opinion, as an airport manager and former Air Force pilot, that’s the real strength we have here,” said Parrott.
      If FAI weren’t close enough to have as a diversionary airport and carriers had to carry enough fuel to land somewhere else, they would bypass ANC all together.

Can't Have One Without The Other

      “My personal belief is we would not have the number of cargo airplanes that we have, if we didn’t have Fairbanks waiting to catch somebody that we couldn’t get in here.” Parrott wanted to stress that diversions aren’t common and carriers want the assurance that they would land where they originally routed, but two airports working together could positively impact one another.
      In summary, the remoteness of Alaska from the rest of the U.S. has enabled it to obtain and offer to the industry unique cargo transfer rights. From the perspective of the state’s aviation system, the enabling legislation, in combination with the operational positioning and relationship of Anchorage and Fairbanks, offer the logistics industry a unique, safe, and reliable route structure for transoceanic operations.
Geoffrey

Pictured at FIATA's annual conference October 7, in Dublin were left to right—Halit Anlatan, Cargo VP Sales & Marketing Turkish Airlines; Turgut Erkeskin, President, Turkish Freight Forwarders Association - UTIKAD, and Seref Kazanci, Turkish Cargo Senior Vice President. No doubt this week in Istanbul at the Logitrans International Transport Logistics Exhibition, both Turkish Cargo and UTIKAD, the Turkish Freight Forwarders Association will be in full force.

   Halit Anlatan, Turkish Cargo VP Sales & Marketing at Turkish Airlines on the importance of forwarders:
   “For the past half decade in the air cargo sector, global hi-tech and international companies have increased tonnage, and as a result the expectation for lower freight rates has been in play.
   “That has caused some pressure to indulge new sales strategies on the airline end.
   “In fact, we can say that doing business, including air cargo sales that had not changed for 50 years, is undergoing significant change in 2016.
   “All of this activity points to the need for our enhanced relationship with freight forwarders, and looking ahead we only see a continued evolution in the way air cargo does business. It requires a more professional structure between airline and forwarder as a basis to how we both will do business in the future.
   “In the air cargo sector, where need for know-how is felt the most, the airline-freight forwarder partnership must speak the same language. The stronger our cooperation and understanding with the forwarder, the greater air cargo industry growth. That is why Turkish Cargo thinks of and calls forwarders our friends and partners.”

Nowhere To Hide

   “Since the end of 2015 and now again in 2016, the negative effects of the global economy continue to be felt everywhere.
   “As airline companies and forwarders, we are on the same flight together, like it or not.
   “We all see and believe that enhanced global trade and closer cooperation can lift everyone above and beyond most challenges.
   “We need to keep searching for new solutions with our partners.
   “All of this said, our message here is quite simple. We are very satisfied with our worldwide agents who honor us, partnering their businesses with our services.
   “Freight forwarders need to know that we want them to speak up loudly, pushing us for better service and new trade routes.”

Non-Stop Changes

   “As mentioned earlier, Turkish Cargo foresees great changes ahead in the air cargo sector.
   “We are gearing up for airline companies and forwarders to work together in an atmosphere of enhanced cooperation.
   “By working together, we can all go even further than otherwise might be possible.
   “We look forward to product-specific and key-account based cooperation that will draw our partnership even closer.”

The Same Page

   “It is not possible for two organizations that work so close to each other not to affect one another. Our organizations need to draw even closer together and work hand in hand to enlarge our sector together.
   “Both airline and forwarder companies should make standardization of services job number one in order to make what we do more compatible with trade and increased quality level.
   “However, it is becoming more and more crucial today for the airlines and agents to find a way to help our common partner, the shipper, understand exactly what to expect in real time.
   “For example, certain limitations and prohibitions that airline and forwarder companies face—such as security concerns, embargos, operation preparations, etc.— need to be transparent to our customers for the sake of the partnership.”
Geoffrey

Vol. 15 No. 88
Ryanair Adds FRA
Jean-Claude A FIATA Force Field
Chuckles for November 14, 2016Storm Clouds At Etihad-Jet? Dancing With The Robots

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