Vol. 7  No. 55                                          WE COVER THE WORLD                                                                   Thursday May 22, 2008

Austrian Airlines For Sale

     Austrian carrier AUA does not exclude the possibility to sell the majority of the stakes to an investor or strategic airline partner.
     "The conditions for the airline industry have dramatically worsened lately," admitted AUA’s CEO Alfred Oetsch speaking to Air Cargo News FlyingTypers.
     “If there is little chance for sustainable profitability, I’m not sure if AUA can survive on its own by staying independent," he warned.
     “In that case I favor a clear decision by selling the majority of the AUA shares."
     Since the Vienna-based airline hedges kerosene to only a small degree it is hit extremely hard by rising fuel prices. Further, low cost carriers are pushing aggressively into AUA’s core European market putting increasing pressure on yields.
     Consequently the carrier reported massive losses in Q1.
     Austria’s minister of finance, Wilhelm Molterer, basically backs Oetsch’s turn in strategy.
     He announced a plan for a strategic concept that will be ready by summer to serve as platform for a partial privatization of the state-dominated carrier.
     Harsh criticism however, came from Austrian chancellor Alfred Gusenbauer who rejected any privatization plans. "My government assumes that AUA will remain Austrian," he said boldly.
     Other voices warned that in case a major carrier would swallow AUA, especially neighboring Deutsche Lufthansa, this might have a negative impact on Vienna Airport.
     In that case traffic could be shifted from Vienna to Munich, Frankfurt or Zurich, the three major European hubs LH and partner Swiss are concentrating their operations on.
     Lufthansa spokesperson Claudia Lange rejected any speculations whether her airline might buy into financial ailing AUA.
     "They first have to straighten out themselves which road they want to pursue," Lange said.
     "Principally we support the consolidation of the European airline landscape but opt strictly for friendly take-overs."
     “In that case LH is a “safe harbor” for carriers in search of a strategic partner,” Frau Lange assured.
Heiner Siegmund



Tempelhof Mother Of All Airports
     There is this children’s book I used to read to my kids called In The Night Kitchen by Maurice Sendak that has this little boy singing a song that repeats the words over and over, “I am the milk and the milk is me.”
     For some reason those lines have been knocking around inside my head ever since I heard that a Grand Dame of close-in city aerial gateways, Tempelhof Airport in Berlin is being closed forever at the end of 2008.
     This year is the 60th anniversary of the Berlin Airlift that supplied an entire city from the air proving the power of air cargo through the long winter of 1948.
     But in 2008, the politicians including the current Mayor of Berlin are set on closing the airport despite a campaign and a majority opinion to save it.
     The Berlin Airlift 60th Anniversary to be celebrated next week will not take place at THF that is still open for business and landing airplanes, but rather at Schönefeld Airport, in the former East Berlin as part of The Berlin Air Show May 27-June 1.
     Tempelhof that was built on some old parade grounds is where once upon a time Orville Wright flew his airplanes.
     During the 1930’s the Tempelhof Terminal was the largest building in Europe.
     But even more than that, Tempelhof is a gloriously beautiful bit of airport architecture, simply exquisite in every detail.
     The place is about moving people, and also travelers who have a moment to stand back and look around are moved just as well.
     Little wonder that this field, one of the first commercial airports in Germany was labeled for all time by noted architect Sir Norman Foster, who after walking through the Terminal called Tempelhof the "mother of all airports".
     On June 24, 1948, DC-3s, DC4s and other military aircraft began delivering millions of tons of food, coal and other supplies to West Berliners with aircraft landing around the clock every 90 seconds.
     Along with the hard stuff to keep the city alive, the fliers also improvised handkerchief parachutes of raisins and chocolate.
     The aircraft were called Raisin bombers.
     There doesn’t seem to be much of a plan as to what will happen to THF, once closed.
     Most think that the big central terminal will stay and feature some kind of adaptive reuse while the runways will be used for public park space.
     It’s kind of strange that today when around the world in-town airports like THF, LGA and others are utilized until the neighbors complain.
     But complaints are not what happened here.
     In fact, according to reports around Tempelhof in neighborhoods like Neu Köln where the life style is easy and the jelly doughnuts the best ever tasted, people are in support of Tempelhof staying open.
     The architectural writer Gerhard Matzig, in Süddeutsche Zeitung, put it this way: "There are residents of Tempelhof who can understandably imagine a life without aircraft noise and danger, but the much more interesting phenomenon is the string: aircraft - noise - barbed wire - coziness.
     “Lending THF another function, as a museum, or putting it to another use, would not really spare it.
     “In any other form Tempelhof would lose it’s strength and magic.”
     Tempelhof Airport is a beautiful place, right at home with the city Berlin is today.
     It’s a field of dreams of romance, history and function.
     Along with Tegel and whatever ends up being BBI tomorrow, Berlin is better for having Tempelhof Airport.
Berlin is Tempelhof and Tempelhof is Berlin.
     There are still some moments left in a song that began in 1923.
     I am going to try and attend the Berlin Airlift Days next week.
     But if I get there I am going to stay near THF and find some time to just sit in that beautiful old airport and think about these things.
Geoffrey

 

Air India Outlines Future

     The competition in the air cargo sphere in India is becoming intense and Air India does not wish to be left behind in the race.
     After many fits and starts—the merged entity of Air India and Indian—is yet to settle down.
     But that has not deterred Anita Khurana, Director Commercial & SBU Head Cargo, National Aviation Company of India Ltd., to lessen her speed.
     Ms. Khurana had been spearheading the erstwhile Indian's moves in the air cargo sector.
     She was instrumental in bringing in automation for the carrier's cargo and till today, Indian is the only state-owned cargo carrier that provides track and trace facilities.
     Shippers booking on Air India do not have the facility.
     Now, with the Air India and Indian merger, she would like to enhance operations and expand the reach of Air India cargo.
     The capacity Air India is offering to shippers now is 1,300 tons/day on the network.
     As she put it:
     "The annual international freight movement into and out of India is over 1.0 million tons and has been growing at 13.7 percent during the period 2003-07 and 2006-07."
     According to the Planning Commission, this will grow at a rate of 11.5 percent from 2007-08 to 2011-12.
     "AI's ranking has jumped from ninth position in September '07 to No.1 in March '08 for exports ex-Delhi."
     Under the circumstances, Air India will require much from its present six freighters (two Airbus 310s and four Boeing 737s).
     Anita Khurana said AI plans for 2008-09 include offering more freighter capacity at competitive rates.
     In addition, she is pushing ahead for more technology and that would include not only booking and tracking on the web but also EDI connectivity and implementation of bar-coding and a pallet tracking system.
     All these moves would fall into place when Air India starts hub operations at Nagpur for both domestic and international operations beginning this September in the first phase.
     Ms. Khurana, points out: "Nagpur being centrally located will provide excellent scope for the further movement of goods to every nook and corner of the country either by air or by any other logistics mode (road & rail)."
     If all goes according to plan, Nagpur between 2009 and 2016 will be the link for Air India between 13 domestic cargo destinations and 15 stations abroad from the present Mumbai/Bangalore/Chennai to Dammam and Frankfurt.
Tirthankar Ghosh

Women In Cargo Hall Of Fame


Karen Rondino


Ann Smirr


Olga Pleshakova


An Air Cargo News/FlyingTypers Original

   Our exclusive series “Women In Air Cargo” asks our readers to send some words and a picture about somebody that you know who is female and has made a difference in air cargo.
  This effort is not limited to just success or failure, it is meant to raise awareness about the legions of unique women who in most cases are unsung heroines in the air cargo industry.
  So write and we will share your story with our readers around the world.

 

Kelleher Luv Fest

     Transport Workers Union (TWU) Locals 555 and 556 representing Southwest Airlines’ 7,000 ground workers and 9,000 flight attendants turned Wednesday May 21 Southwest shareholders meeting into a “LUV fest” to honor retiring Chairman of the Board Herb Kelleher.
     TWU members distributed recipe cards with Herb’s ingredients for fostering positive labor/management relations and Herb’s simple recipe for success.
     “Herb has built a great airline by always putting employees and customers first and TWU members are thankful for his many years of leadership.
     “Our attendance at the shareholder’s meeting is our way of displaying our respect for Herb and our members’ commitment to the continued success of our airline,” said TWU Local 556 President and flight attendant Thom McDaniel.
     TWU Local 555 President Charles Cerf agreed.
     “It may seem unusual for a labor union in contract negotiations to honor a company’s senior executive,” he said, “but Herb is a remarkable leader who has always understood the importance of doing the right thing for employees and we are truly grateful for that.”
     TWU Locals 555 and 556 are affiliates of the Transport Workers Union of America (TWU) and the AFL-CIO.
     To say this kind of thing in the age of the super technocrat CEO is rare, is putting it mildly.
     In fact, many airline and company chieftains are hung in effigy, is closer to the truth especially if they hang around the business as long as old Herb.
     But the guy is right down on the ground four square with everyone so we too join that happy throng who want to feel good with good reason about the man.
     Our favorite Herb story happened while attending Bill Boesch’s retirement party as President of American Airlines Cargo in Dallas, Texas. Herb showed up and began an animated conversation with AA CEO Bob Crandall in the back of a room with about 300 people in it.
     During those days, ole Herb chain smoked and drank glasses about three fingers full of Wild Turkey.
     So while up on the stage Dal Sherman and Mark Najarian were dancing and Jan Meurer of KLM was waving a fist full of tulips goodbye to Bill, old Herb and his raspy smoke and booze tenor whisper could be heard in the furthest parts of the room.
     Finally somebody said :
     “Hey Herb, want to say a few words about Boesch?
     Kelleher without missing a beat turned from Crandall and said in a now booming voice:
     “Sure, I’ll say a few words about that scum bag!”
     The place erupted and that party is remembered as one of the classic goodbyes ever.
     So long Herb, in your tuxedo and cowboy boots formal wear.
     You are truly one of a kind.
     Thanks for the ride!
Geoffrey