You are currently in the Archives section. Please be aware that some information and links in the archived page may be outdated.

Click here to return to the Archives' main page to see the list of archived articles.

A R C H I V E S

THE GREATEST AVIATION DIRECTOR

     Bill De Cota director of aviation for the Port Authority of New York & New Jersey was in Montreal attending an IATA meeting when unlike millions of people around the world who watched in horror and disbelief, he witnessed the center of his professional life come crashing down September 11, 2001 as terrorists attacked and destroyed the World Trade Center in New York.
     It’s doubtful that any aviation director past, present or future has or will ever have to deal with the complexities of balancing the human factor with the responsibilities of maintaining the business of one of the highest profile demanding jobs in aviation.
     The Port Authority Aviation Department that once was located on the 65th floor of One World Trade Center, is now on the ninth floor of a non-descript office block in mid-Manhattan.
     But despite the loss and grief and challenge of a business climate that has been slow, uncertain and now as the Iraq War unfolds for all intents and purposes on hold, Bill DeCota has kept his eyes on the prize and his department on subject and focused.
     If anything, the attitude of the aviation department today is once again reaching the altitude it once occupied when the world around One WTC was spread out below like a magic carpet.
     Put another way, planning and building of new cargo facilities continues at a furious pace at both John F, Kennedy and Newark International Airports.
     Bill DeCota has done a remarkable job.
     New York and New Jersey, the greatest metropolitan area city complex in the world, is and will be second to none when it comes to aviation for both cargo and passengers.
     It’s kind of funny when you think about it.
     Often when it comes to big time executives, the truly great ones are not always packaged the way you might expect.
     As he walks by, Bill DeCota looks like he might be on his way to teach a philosophy class.
     There are none of the trappings of ego and power that usually accompany a chief executive officer of a multi-billion dollar business.
     When you speak with him there is a disarmingly easy grace to his conversation.
     But make no mistake, someday when the history is written, Bill DeCota will be remembered at or near the top as the greatest aviation director in history.
     Here remarks as delivered last week at the JFK Air Cargo Expo by Mr. DeCota.

     “I think it is appropriate that the JFK Air Cargo Expo is taking place today, March 27, less than a week into the spring season. Spring is a wonderful time of year, a time for hope of good weather to come, a symbolic time, representing growth, prosperity and change.
     In the words of Anne Bradstreet, a 17th century poet “If we had no winter, the spring would not be so pleasant: if we did not sometimes taste of adversity, prosperity would not be so welcome.”
     The air cargo industry has certainly seen its share of winter over the last couple of years, and we are ready for the prosperity that arrives with spring. To me spring also signals change. And I think that attribution of spring also works well for this industry. We can expect good things to come and we can expect change.
     There are several topics I want to touch on today related to the panel discussions that will follow on Security, Marketing Air Cargo and New Technology. These topics are more critical today than ever before and we probably could have daylong sessions on each area. In looking at the list of attendees, something jumps out right away about the uniqueness of this Air Cargo Association Expo. ITS UNIQUELY NEW YORK. We all do business at John F. Kennedy International Airport. We are the leaders of a robust regional air cargo community and as such we are leaders in the air cargo industry. There is no other air cargo hub on the planet with the past, present and future of JFK.
     When the Port Authority entered into lease agreements for the three major New York metropolitan airports, Idlewild (now JFK), LaGuardia and Newark, no one ever imagined that air cargo at these facilities would become a major component of the aviation industry and one-day account for nearly 25% of the nation’s international air cargo activity. JFK, fueled by a huge O&D market, the nation’s largest consumer market and unsurpassed facilities has truly been a pioneer in the air cargo business. Over the last 50 years the air cargo business has seen its share of good and bad times. But when you balance out the ups and the downs of the market, we have seen steady growth, roughly 7.5%, for our region since the 1950’s and we expect growth to continue, albeit at a slower pace of about 5% a year for the next ten years.
     We all remember the ‘good ole days’ and often yearn for a return when things were easier, when growth seemed unabated, when opportunities were everywhere for business prosperity. I want to assure everyone here that the best years are not behind us, quite the opposite, we have many good years to come.
     But survival, and in fact prevailing in this industry requires like all of life, adaptation to a changing business climate. The rules of today have changed and are defined by intense competition. To be successful as an industry, we have to learn to play by the new rules.
     We are faced with freight rates that are lower than they have ever been.
     The battle for business is being fought on the logistics front—and the weapons of choice are efficiency, technology, information, price and value-added services in the form of expedited cargo clearance, trucking, warehousing and guaranteed delivery.
     The need for a customer centric focus has always been and will always be at the heart of any successful business philosophy, and clearly it is the key to success in today’s Air Freight industry.
     Some of us may say that we have never seen anything as bad as the last couple of years, but history has shown that air cargo always comes back—the business model may shift, which is important to recognize—but the growth in tonnage rebounds. Air cargo is a leading indicator on the direction of the economy and over time will mirror economic growth. As long as the economy is expanding, air cargo volumes will increase. Today the cargo business is recovering from the recent recession faster than the passenger business. As the global economy rebounds and we become ever more reliant on trade and electronic commerce, air cargo will continue to expand keeping pace with the ever increasing speed of business.
     Last year international cargo recovered significantly, and we expect it to continue. We expect that by 2004 we will reach the peak we experienced in 2000 of 1.9 million tons of cargo at JFK. If there is a ‘short’ conflict in the Middle East any negative impact will be temporary and delay this recovery for perhaps only a year.
     As Ted Scherck, President of the Colography Group was recently quoted, “The logistics industry can handle good news or bad news; what it can’t handle is uncertainty.” The persistent unknown over the Iraq situation has clearly held our industry and the U.S. economy back.
     Today air cargo is about people, goods, jobs and commerce. In our region alone, air cargo represents 84,100 jobs— cargo handlers, freight forwarders, truck drivers, brokers, insurance agents and bankers, not to mention, airline employees. The health of global and national economies is based on the flow of goods across the planet. The speed, reliability and ease with which this occurs have transformed the way we live. As individuals or businesses, the pace and complexity of life makes the ability to get what we want, when we want it and where we need it essential.
     The traditional Air Freight business at Kennedy Airport is very mature serving a well-established market. It is like a seasoned Champion Prize Fighter in the prime of his career, there are still many good years left but younger up-and-coming fighters constantly challenge him. In order for this Champion to keep his edge, he must continue to train and work hard to maintain the title and stave off the line of eager challengers.
     As any true Champion would, over the years, the traditional Air Freight business at JFK has taken its lumps. The rapid growth of air travel in the seventies and eighties led to more gateways featuring point-to-point service for overseas markets. To further complicate matters, Express Carriers, who today clearly are part of our air cargo community stepped into the ring, virtually unnoticed 20 years ago and with a new style of boxing found the industry with its guard down. The traditional industry has countered these challenges with new services of its own, fueled by the availability of information and technology.
     There is competition today at many levels but competition and rivalry are good, they are a test of skill that makes us better and forces us to rethink products and services and maintain a customer-focused edge.
     There is competition between airports for cargo destined from various regions. During the good old ‘Euro-centric’ days, we were geographically ordained to control the air cargo Market, this is not the case today.
     As everyone here knows, the Asian market is expected to see tremendous growth in the next ten years. It is an area where we intend to focus our service development marketing efforts to ensure an expanding share of the Far East market. These Asian markets are changing. Much of the Asian Air Freight system is rapidly developing and applying available information systems and technologies at ground level. Particularly in these markets, we see a trend toward fewer players making routing decisions on greater volumes of cargo. The planned restructuring of China’s three largest airlines Air China (merging with China Southwest & China National), China Eastern (merging with Northwest and Yunnan) and China Southern (merging with China Northern and Xinjiang) will virtually dominate the entire country.
     The last couple of years the numbers in the Asian markets are staggering, 15 countries in the top 30 destinations served out of New York last year experienced rise in volumes, all but three were Asian. There was striking growth from Thailand, up 25.1 percent, India up 25.3 percent and Hong Kong up 24.3 percent, however China at 39.1% saw the greatest increase. China has now topped the United Kingdom as New York’s top air cargo partner. For the most part, our more traditional Atlantic markets have lost trade in the last couple of years and are forecasted to achieve slow growth (1.7%) over the next ten years.
     What does this tell us? For one thing, we shouldn’t give up on the traditional markets, but we need to make sure that we understand what drives a particular area of the market, the products you move, and the markets you serve. Understanding demand drivers is fundamental for all of us here.
     As an industry we need to push for the deregulation of foreign markets. High on the Port Authority’s agenda has been aggressive lobbying in Washington for the liberalization of air service agreements. It is interesting to note that of our major trading countries, some of the most restrictive agreements we have are with our top two trading partners, China and United Kingdom. Imagine the benefits to trade we could achieve were these restrictions on U.S. operations in these countries lifted. It needs to become easier for a broader representation of American companies to do business in countries like China. Clearly regulatory barriers need to be at the fore of this country’s international political agenda.
     Over the years, the backbone of the air cargo business at Kennedy Airport has been the diversity of origin and destination markets we serve through the passenger business. With the growth in trade in the Far East, the passenger side of the market will continue to facilitate the movement of cargo in the belly of passenger aircraft through our Hub airport. Freighters will also feed this growing market, but the harsh reality of transportation logistics is that freighters may also have destination choices. Growth in the Far East O & D passenger demand is also critical to ensuring our share of air cargo growth in this trade.
     There is no doubt that NY has the consumer market to continue to support air cargo growth on pace with anywhere in the U.S. The key to our ability to successfully capitalize on that market has been our proactive response to market needs.
     For example, thirty-three years ago, in January of 1970, Pan American Airways departed the first ever-commercial jet flight of a Boeing 747 from John F. Kennedy International Airport to London Heathrow Airport. The introduction of this aircraft had a significant impact on both the passenger and cargo market. This event helped solve Kennedy’s runway capacity problem in the late 60’s. In 1968, we handled 19.6 million passengers on 431 thousand aircraft movements; today we handle over 30 million passengers on only 287 thousand aircraft movements. Not only did this aircraft have a remarkably positive effect on the passenger business, it also created lift capacity. As we all know, as long as there is a market, airport cargo throughput clearly can be driven by available lift capacity.
     Today we are faced with a similar opportunity with the planned introduction of the A-380. This new large aircraft is scheduled to come on line in 2006. Currently there are a total of ten of these huge aircraft on order by Virgin, Air France, Lufthansa and Singapore airlines. The Port Authority is actively engaged in working with the FAA, Airbus and the airlines to ensure that the JFK infrastructure is ready to accommodate these aircraft. Like many other industries, the evolutionary stages of modern aviation tend to repeat. The results of the A-380 entering the NY/NJ Region marketplace will be much the same as the results of the B-747 entering the market some 30 years ago. We feel that both the passenger and cargo future of the region will be greatly enhanced by the presence of the A-380. If we don’t accommodate it, another region will.
     We also need to remain responsive with changes in technology. In the last five years information technology, the Internet has revolutionized the logistics industry. FedEx was a pioneer in raising the bar on service and innovative information systems. The Internet is now facilitating e-commerce transactions in the business-to-business and business-to-consumer markets. The traditional Air Freight industry, which still accounts for 90% of freight activity at JFK, is responding to the FedEx challenge by the increasing use of technology. Technology has facilitated the formation of vertical (freight forwarder/airline) and horizontal (airline/airline/freight forwarder/freight forwarder) alliances creating at least on paper -a ‘virtually integrated’ product. However, the continuing challenge to increased efficiency lies with the industry becoming less fragmented in order for service levels to consistently match the seamless, ‘one-stop-shopping’ marketing image. Neutral and proprietary web based booking, tracking and cargo portals like Global Freight Exchange and Cargo Portal Services are here to stay and absolutely require wider participation across the industry as a way to cut cost out of the logistics equation.
     Not far away are advances and breakthroughs in bar coding and GPS technology for use with container seals that will provide not only complete and concise information on shipments, but will be capable of pinpointing the exact location of air cargo containers anywhere in the world.
     We need to be creative in our solutions to integrating the rules of the ‘new norma’ for security into the business processes we know today, building standards into our systems, not forcing the standards upon existing systems.
     Developing sensible Air Cargo Security Regulations is at the core of this community’s concerns. I have met with Admiral Loy; he visited this airport last year, has met with KAAMCO representatives and has stated publicly that 2003 will be the year of air cargo security. The Senate Commerce, Science, and Transportation Committee approved a new version of the Air Cargo Security Act.
     It looks as though the Senate is heading in the right direction. The TSA would be required to develop a strategic plan to ensure all air cargo is screened, inspected and made secure. It would develop a system for the regular inspection of air cargo shipping facilities, and TSA would develop a security training program for persons handling cargo. And all shippers would be required to develop security plans that would be subject to TSA approval.
     We as a community should have several goals as we work with the Federal Government to settle on appropriate regulations. We need to stay involved, and the KAAMCO Cargo Security Sub-Committee should continue to be involved in the legislative process.
     At the Port Authority we have been in touch with Washington offices and are exerting influence where we can through ACI. New regulations regarding air cargo security should continue along the lines of the ‘known shipper’ program and be origin-focused and shipper-based.
     The Senate bill would establish a database of known shippers in order to bolster the known shipper program. This would help ensure that there are some teeth in the ‘known shipper’ program. A Federal Agency should assess the risks associated with using a particular shipper and that this process needs to be expanded beyond our borders to include overseas customs agencies. The sharing of information between intelligence agencies, similar to what Customs has done with the Container Security initiative is critical to the seamless movement of cargo. The ‘known shipper’ database is an excellent tool that can be used to manage and investigate the activities of shippers, IACs and others in the logistical chain of moving air cargo. Use of the database should become mandatory, be expanded to include international companies, be combined with other Customs shipper and freight forwarder databases and be vigorously sustained.
     We also need to work to get mail back on passenger aircraft.
     For the continued, balanced growth of our air cargo business, we need to ensure that security regulations do not favor one sector, freighters over another, belly cargo. This is critical to the health of the industry and capacity at our airports. There is no more efficient way to move cargo than in the belly of aircraft. We are working to ensure that regulators understand the need for a level playing field between freighters and belly cargo in the context of new security regulations.
     Finally, I cannot talk of air cargo to an audience at Kennedy International Airport without talking about access. Over the years the JFK Air Cargo Association and KAAMCO has been a staunch vocal advocate for improvements to freight access at this Airport. I applaud you for your efforts, and I appeal to you to keep up the good fight. Access is one of the most difficult issues that we wrestle with. There are no silver bullets. It takes a lot of time, constant political pressure and an expanding constituency to effectuate real improvements with this complicated issue.
     We do have good reason to hope, it’s springtime and hope springs eternal! As we speak, the Van Wyck Expressway is being widened . . . the Airtrain project is being readied for passenger service, which will initiate later this year. These are significant improvements to access infrastructure serving this airport and will benefit our businesses. We have also caught the interest of NYSDOT, NYCDOT and NYMTC. All of these critical organizations have a much better understanding of the regional economic benefit of Air Freight and have taken significant steps to make Kennedy International Airport Air Freight access a critical element of their transportation agenda.
     Some of his recommendations, which originated from this group, are seriously under consideration with the responsible state agencies. Recently Joseph H. Boardman, Commissioner, of the New York State DOT in discussing the realignment of NYSDOT priorities has stated the need to better focus on trade patterns, truck traffic congestion and a more efficient flow of goods in the ‘Downstate Area.’
     A proposed rail-freight tunnel, critical in a region where 85% of the freight that passes through NY City is carried by truck, received a $2 million boost from Washington.
     So we are making progress. We need to make sure that we promote our successes, while at the same time as a business community, align ourselves with other vested partners to expand our base, continue to press for improvement and keep up the good fight. The Port Authority is targeting ads around the world to highlight the 1500 flights bound for 300 global destinations, smooth and highly effective speed-to-market access, ever expanding physical plant. As we like to say “we can get your cargo there no matter where in the world its going.”
     There is so much good news to tell. Last year JFK was named North America’s best cargo airport in a prestigious competition judged by industry leaders. We finished first in a survey of thousands of air cargo industry officials across Asia including executives from major cargo export hubs in Singapore, Hong Kong and Japan, beating out cities like Los Angeles, Chicago and Denver.
     There is great interest in JFK by cargo developers, real estate companies and airlines. Witness the venture into this market by AMB property, a real estate investment trust that just purchased two cargo buildings at JFK. Or take a look at Continental’s new $25 million cargo handling facility at JFK which doesn’t even have a cargo plane at the airport but instead links its Newark operations via truck because of the strength of the forwarder, broker, and customs house operations there. Look also off airport at the $100 million airport construction project on 25 acres along Rockaway Boulevard being constructed by International Airport Centers that will contain over 500,000 square feet of space and employ over 1,000 people.
     To quote John Fitzgerald Kennedy, the beloved past President of our Country for whom this great airport is named,
     “Change is the law of life. And those who look only to the past or present are certain to miss the future.” Talk about change . . . in one day in 2000 there was more trade than in the whole of 1949, and working together we are here to capitalize on it for the benefit of this great region.

AVIATION GOLF OUTING TO LOVE A NURSE Alfred J. Graser David Barger      Alfred J. Graser, General Manager of John F. Kennedy International Airport for the Port Authority of New York and New Jersey, and David Barger, CEO of JetBlue Airways will be honored at the upcoming Visiting Nurse Association of Long Island Sixth Annual Charity Golf Classic set for Monday-June 23, 2003, at the beautiful Huntington Country Club, in Huntington, New York.      The event will benefit the great Visiting Nurse Association (VNA) of Long Island, Inc.      The VNA Golf Classic will also commemorate One Hundred Years of Powered Flight.      As we celebrate the beginnings of man’s adventure aboard aircraft in 1903, when the Wright Brothers first flew, it is good to recall that between 1903 and 1920 more than 90% of all the air activity in the U.S. took place over the skies of New York and Long Island.      Early passengers traveled aboard tiny aircraft that tossed around in bumpy skies.      The first airlines added stewardesses or flight attendants shortly thereafter, but they were all actually registered nurses who carried as part of their first aid kit, one article destined to become an airline standard, “the whoppee bag.”      On June 23rd, in addition to excellent golf, networking opportunities and aviation memories, friends and fun will aid today’s needed and welcome part of every day life, The Visiting Nurses.      JetBlue Airways began operations in February, 2000 from its base at New York’s John F. Kennedy International Airport. Three years later the airlines serves 20 cities across the U.S. with a fleet of 40 new Airbus A320 aircraft.      Dave Barger leads JetBlue’s charge to phenom status.      JetBlue took the daylight hours at JFK, when the great international flights have not yet begun arriving and departing, and filled the skies with bright new aircraft offering dependable low-cost fares to an impressive list of cities both in New York State and now to destinations from coast to coast.      Al Graser, General Manager of John F. Kennedy International Airport for the Port Authority of New York and New Jersey, is a good guy with a human touch who worked himself up to the top during 29 years plus of experience at both New York Airports—JFK and LaGuardia.      The Visiting Nurse Association of Long Island, Inc., a not-for-profit organization, offers a wide range of home health and community-based services.      VNA of LI programs include the certified home health agency, a long-term home health care program and Meals On Wheels.      Visiting Nurses are the godsend to many people who have no where else to turn when an elder or other family member needs home care.      So put together your foursome and love a nurse.      More info, sponsorships plus golf packages and buffet dinner reservation contact: Team Communications (516) 747-0722 or email: teamcom@optonline.net.

---

After Sun ’n Fun, guess what’s next for these gals? Atlanta Air Cargo Association (AACA) 2003 Spring Golf Classic, that’s where—Tuesday May 6, 2003.
     AACA starts with coffee and donuts at 10:00 at Orchard Hills Golf Club, 600 east Highway 16, Newnan, Georgia 30215 (770) 251-5683. Shotgun start at 11:15 and play for up to 27 holes followed by a couple quick pops in the 19th before Dinner, a sumptuous banquette, at 17:00 hrs.
     During Dinner, Awards and Prizes, exaggeration of your prowess out upon the links, networking with much fun.
     Cost $95.00 members and guests; $150.00 everybody else. Dinner only $30.00.
     Hurry, this one sells out fast with room for only 216.
     Sponsorships and other information plus reservation contact:
     Sandra Marsh or Beverly Horan (404) 559-9041 or check out AACA @ www.atlantaaircargo.com.

Chicago Traffic Club At 96 Is Full Of Young Ideas

     The Traffic Club of Chicago, which celebrates 96 years of existence this March 28th is an organization that is made up of airlines and forwarders, leading shippers and a large diverse multi-task group of business professionals dedicated to maintaining the highest standards of the transportation and distribution profession.
     For 96 years in peace and war, good times and bad, this truly great organization has been keeping its members up-to-date with all distribution and transportation methods, while at the same time assuming a responsible role in civic, cultural and charitable activities in Chicago.
     Historically, the objective of The Club was clear: to promote a better understanding and bring about a closer relationship between manufacturers and those engaged in freight transportation services.
     The Club retains the essence of this original goal, while broadening its scope.
     Headquartered in Oak Brook, Illinois, Traffic Club members enjoy many benefits including access to several private dining and country clubs throughout the Chicago area.
     An annual schedule of programs and events provides opportunities to network with other industry professionals. The calendar includes luncheon programs featuring senior executives who are leaders in the industry, seminars and a variety of year-round social events.
     Notably the Traffic Club Scholarship Program continues supporting the organization’s philosophy of direction and guidance.
     Founded in 1907, when railroads added the words to describe Chicago as City of the Broad Shoulders, The Traffic Club began as a place where manufacturers and railroad management could learn to work together, and know each other better.
     Both needed a venue where they could discuss their problems and in the atmosphere of a friendly luncheon table, solve many of them to their mutual satisfaction.
     On March 28, 1907, F.T. Bentley, traffic manager for the Illinois Steel Company, who is remembered as a born leader, called the first volunteer meeting together at an informal dinner at the Auditorium Hotel in Chicago.
     Since September 1910, a significant benefit to members has been The Club publication, The Way-Bill.
     The Way-Bill set the standard for organization publications that continues today. Each issue is informative, inclusive and, in this age of lightning information, available by e-mail.
     Traffic Club President Doris Catherword (DC Services) puts it this way:
     “The Traffic Club of Chicago represents businesses and individuals in transportation, distribution and logistics. Membership in The Traffic Club of Chicago ensures your place in a proud, continuing heritage.
     “We are actively seeking new members. More information: www.traffic-club.org.
     “Join us, as The Traffic Club of Chicago prepares to transport our industry in the new century.”
     Sample activities of Chicago Traffic Club 2003
     96th Annual Dinner
     Thursday, May 15, 2003
     Chicago & Grand Ballrooms
     Chicago Marriott Hotel Downtown
     Traffic Club considers this evening as their most important event of the year. The gala affair is the primary fund raiser for their scholarship program. Over 1,200 members and guests attend this event, including a head table of eighty senior executives, representing a broad cross section of today’s transportation and logistics industries, (information tickets, sponsorships etc. contact: Jackie Paine (630) 573-1333 email trfclub@sprynet.com
     Annual Dinner Golf Outing
     Wednesday, May 14, 2003
     Held the day before the annual dinner, this event is an integral part of Traffic Club’s dinner program and an added fund-raiser for the Scholarship Program.
     Last year’s golf outing drew over 300 attendees but this year expect that number to increase. next year.
     Golf Committee has reserved all four courses at Cog Hill in 2003.
     Those companies supporting the scholarship program at the “Doctoral” level, are afforded the added benefit of playing Course No. 4, better known as “Dubs Dread,” home of the Advil Open.