AT BKK 2009
IATA To Widen C2K

     There is activity of immense importance to the future of air cargo, a veritable giant leap from the ordinary that will take place in Bangkok, Thailand next March as IATA hosts its Third World Cargo Symposium titled “Focus On The Customer—Delivering in Turbulent Times”.
     What has happened is that large sucking noise you have been hearing is driven by the world financial meltdown and is a real game changer bringing even more meaning to getting the process of air cargo right.
     We are wishing that IATA Cargo were meeting right now, just as a large segment of the air cargo business is circling the wagons at a trade show in Asia that many in attendance, given their druthers, probably would have rather not attended if refunds were an option.
     Value for money is what moves IATA Cargo forward into a vacuum created by widespread uncertainty as industry stakeholders in ever expanding numbers hungry for information about what happens next and also best industry practices, seem to be everywhere and all at once.
     The IATA World Cargo Symposium held annually for the past two years, first in Mexico City and last year in Rome and next year in Bangkok (March 2-6), eschews everything else, for meaningful air cargo industry best practices sessions and three days of top level networking amongst 800 or so most important air cargo people in the world.
     If there ever was a time for the right people to bubble up in air cargo when most needed, it may be right now.
     Aleks Popovich, IATA Head of Cargo seems to take all of this one day at a time.
     For a couple of years now since Aleks Popovich took over as IATA Head of Cargo the man has been saying that our industry has got to change drastically to embrace the world business environment.
Slowly with determination, extreme dedication and purpose, that vision is coming into focus.
     Now as world events continue to unfold challenging every part of transportation as never before, IATA Cargo has been moving to an even wider venue by pressing home the proposition of change, further emphasizing e-business and other initiatives, offering the promise of vital new opportunities for the air cargo industry.
     “Since we recognize that the world is fast becoming a single market, the industry needs to focus on bringing global solutions to every facet of air cargo.
     “The IATA Cargo E-Freight initiative, and push for global harmonized security standards plus continued implementation of Cargo 2000 are top priorities,” Mr. Popovich insists.
     As mentioned at the top, The IATA World Cargo Symposium will draw top air cargo people from all over the world.
     One topic that will be given the full treatment as part of the overall theme for 2009 of managing change in these troubled times is Cargo 2000 or C2K as insiders call the process that offers real change to the way the industry does business.
     Air Cargo News FlyingTypers asked Lothar Moehle who has been connected to Cargo 2000 since 2003 and will conduct an all important C2K track at WCS 2009 to talk about where Cargo 2000 is today and is headed tomorrow.
     “C2K was founded to improve the quality of the airfreight industry effectively through cooperation.
     “All other parties of the transportation chain that have joined to date demonstrate that coooperation doesn't stop with carriers and forwarders.
     “Our members are now measuring and reporting on a regular basis on more than one million airfreight shipments every month.
     “This we feel is a great achievement, considering C2K’s humble beginnings. “The trend surely will continue, as our members are committed to measure all of their shipments within their network.
     “Although we publish only data for shipments within the C2K community, our members are in the stage of planning and measuring shipments with partners outside of the C2K community.
     “Under Aleks Popovich we have re-structured C2K on a solid foundation.
     “There is now for example Cargo 2000 regional directors for IATA Area 1, Area 2 and for Area 3.
     “In addition, we are in the process of hiring a Cargo 2000 Technical Director.
     “Previously, it was only (the late) Ron Cesana and I who looked after all our members.
     “The new Cargo 2000 structure better enables us, to support our existing stakeholders in their quest for quality improvement.
     “This includes also spreading awareness within our members’ internal networks.
     “Since WCS Rome earlier this year Cargo 2000 has expanded by 10, bringing our total membership to 71.
     “Growing membership underscores that C2K is achieving a higher awareness level in the global industry.
     “But I have noticed that when I am walking into any meeting today, there are many people in the room who have heard about Cargo 2000.
     “This was not the case just 3 years ago.
     “It is fair to state, that Cargo 2000 has been recognized as the "Quality Organization" of the airfreight industry.
     “But it is vital that logisticians and others clearly understand, what Cargo 2000 is all about.
     “Everyone needs to realize from the get go what Cargo 2000 as an organization can do, and also what we clearly can't do.
     “C2K is not a supermarket, where one goes to buy a kilogram of quality.
     “Cargo 2000 has developed a process and the logic of the process control.
     “We are not providing any software, nor does the C2K membership solve all the problems.
     “At the end of the day, it is our members who have to have the commitment toward quality and the urge to improve the quality constantly.
     “They need to apply the rules of a solid Quality Management System.
     “The commitment toward quality improvement, is driving everything we do at C2K.
     “In one way you can compare Cargo 2000 with a school.
     “We provide the infrastructure, teaching material and tutors, but it's the student (members) who have to do the learning and the homework.
     “In Bangkok next March at WCS 2009 we certainly will continue to focus on the customers / shippers - same
as the entire WCS.
     “But we will also take the opportunity and discuss advantages that C2K can unlock to improve the air cargo business with potential new members.”
     Looking at Cargo 2000 and other aspects of the IATA itiative for air cargo, it is clear that Aleks Popovich has a vision for air cargo and somehow he has been able to marshal the big and at times cumbersome bureaucratic organization IATA into pointing to a heading in the direction of real change for the industry.
     Aleks has a heavy lift to be sure.
     He deserves support, and in fact it is in our own self-interest to support that effort.
     The third IATA World Cargo Symposium combines the theme of "Focus on the Customer" with the critical need for the cargo supply chain to operate and compete in increasingly turbulent times.
Date and Location:  March 02 - March 05, 2009.  Bangkok, Thailand. Centara Grand at Central World Hotel Bangkok
Register before December 16 for special savings.
www.iata.org/events/wcs09
Geoffrey

Where Do We Go
From Here?

Air Cargo Primed For Growth

Most people that I talk with in the air cargo business are looking at the present worldwide financial crisis as horrific after the effects of the last few years including soaring fuel prices, security rules and government’s antitrust investigations.
     But a few note that this financial crisis can be good for the industry.
     Fuel prices are coming down and it looks like the worst is over on the antitrust situations.
     As a result most of the airlines cargo executives have cut their costs, reduced their capacity, put in place their security programs and have understood the rules of the road for government compliance.
     Now the world is being hit by a financial crisis and as a result of reduced consumer spending, inventories are decreasing.
     Anyone who has been around this industry knows that reduced inventories are the prelude to increased air cargo volumes.
     I believe that the economies of the world will rebound within the next 6 to 8 months, consumers will start to spend again and large amounts of air cargo will be needed to maintain the supply of goods because of the reduced inventory levels.
     Air cargo industry is at the edge of major growth by mid 2009.
Bill Boesch

Shanghai Aircraft's Historic First

     Shanghai Aircraft Customer Service, China’s first domestic company of this kind, opened on October 7 in Shanghai.
     This firm, together with Shanghai Aircraft Design and Research Institute and Shanghai Aircraft Manufacturing Factory, comprise the 'Three Centers' Commercial Aircraft Corp. of China, set to develop large aircraft: customer service, research and development, and manufacturing.
     Jin Zhuanglong, General Manager of Commercial Aircraft Corp. of China, said at the ceremony:
"Establishment of Shanghai Aircraft Customer Service puts our 'three centers' into shape, and marks an important part of China's large commercial aircraft manufacturing strategy.
     "This company will elaborately serve the upcoming home-made regional aircraft (ARJ21) and the large one."
     Introduced at the ceremony, the new firm, with registered capital of RMB100 million (USD14.5 million), will establish a global customer service network, providing whole-life service for home-made large and regional aircraft on flight controls, engineering and technology service, spare parts support, customer support and other services.
     Xu Jun, Deputy Director General of Shanghai Aircraft Manufacturing Factory, told Air Cargo News FlyingTypers at the ceremony:
     "The planned fifth runway of Shanghai Pudong Airport and vast land around has been set to be the base for trial flights and final assembly line of the large aircraft project, with designed annual capacity of assembling 150 aircraft and maintaining 30.
     "Added by 20 regional aircraft assembled in the base of Baoshan District of Shanghai, the overall capacity will reach to 200 aircraft a year."
David

X marks the spot as AirAsia X, low cost unit of the Malaysia-based AirAsia Group gets the first of 25 A330s long hauler to link KL with everywhere else . . . Last week a Boeing 747-400 freighter of China’s Yangtze River Express landed at Los Angeles International Airport, signifying the reopening of the carrier’s Shanghai-Los Angeles route, that was suspended last December. Employing this newly imported Boeing 747-400 freighter, the flights are scheduled for 4 weekly frequencies. With the delivery of this new freighter received in mid- October, Yangtze now owns a fleet of 6 Boeing 737-300 and 2 Boeing 747-400 cargo planes. Another 3 Boeing 737-300 plus an additional Boeing 747-400 cargo aircraft will join Yangtze River Express in 2009 . . . AAPA said international air cargo traffic in September fell 9.0% in FTKs with load factors down 1.6 % to 66.4%, despite a 7% reduction in capacity . . . Lufthansa closed a deal with bmi that was created in 1999, wherein reportedly bmi joined Star Alliance with Lufthansa and SAS covering any losses and agreeing to purchase bmi in ten years at an agree upon price. The widely reported deal closed last week for €400 million or $508 million USD with Sir Michael Bishop selling his 80 percent of bmi. Remaining 20 percent is owned by Scandinavian Airlines (SAS), an airline that Lufthansa may purchase as well. Lufthansa is now the second-biggest operator out of Heathrow, where among other things DLH with 11% of the slots can challenge BA routes to the United States where the British flag has enjoyed profits akin to a right to print its own money. Lufthansa could also decide to sell the bmi asset for a huge profit or maybe just hold onto bmi and think about what to do for a while. Stay tuned . . . Clark Field-Manila gets more cargo flights now that recent Philippines-Malaysia air talks have concluded. Philippines wants Clark to be developed to take the heat off Manila's overcrowded airport . . . The head of the Italian investor group CAI planning to buy Alitalia says he is "greatly" concerned by the deadlock in talks with unions and called on them to respect the agreements reached with the government. "A positive outcome from the talks is an essential condition to going ahead with the project," said a statement issued by the group. "I am greatly concerned about the situation stemming from the break down in talks," he added . . . Cargolux Airlines adds weekly flight to Tbilisi capitol of Georgia, November 6, 2008. The service moves Thursdays from Luxembourg . . . Thai Airways International downsizes December 1 due to weak demand . . . Direct air and sea transportation between Taiwan and China finalized during this week's cross-strait negotiations in Taipei will not be defined as domestic routes. New flight and maritime shipping routes are expected to be created during the meeting next between leaders from both Taiwan and China to eliminate the need for travel via a third location as is current practice . . .