Batten Big Bounce Outlook

    Like many of us out in the cold of the Northern climes, this is the time of year when John Batten may be thinking about boat drinks and Kokomo.
     Even though we’re all back at work, we can still dream, right?
     Click here, go to 720p, turn up the quartz heater, pump up the volume–and enjoy the ride.

     Swissport International Ltd. provides ground services for over 70 million passengers and 2.8 million tons of cargo a year on behalf of some 650 client companies.
     With its workforce of around 33,000 personnel operating at 181 airports in 37 countries on five continents, Swissport has a wide reach and a firm grip on the planet; last year it generated consolidated operating revenue of CHF 1.7 billion (EUR 1.2 billion or USD 1.6 billion).
      John Batten is Swissport EVP Global Cargo.
     John is a refreshing individual, a big bear of a guy with a quick grin that speaks accessibility and thoughtfulness.
     Perhaps what is even better is that John listens up, and understands what it takes to succeed in air cargo.
     He is attentive and unafraid to take action, less unfettered by keeping the customer in the loop as long as there is a resultant satisfaction that Swissport listens, acts and is a true partner.
     After 25 years in the cargo and logistics business, including numerous key management positions, John has some definite thoughts as 2011 unfolds.

     “Swissport’s general business is good today and the prospects for the future look encouraging.
     “The way the industry is changing with more consolidation will have its affect on us and there are potential ‘win’s and losses’ that will have to be managed. “Understanding the business, markets and economy over the last 18 months has changed the way we do business for the better, and has highlighted the need to innovate.
     “Likewise, we now need to look at expansion in the network and the management as the crises did highlight the need for better management.
     “The financial crisis changed the way that we do business and modified the approach we had within the business to be more pro-active with customer relationships and strict control on costs. “The business had to adapt and in this process we put the customer first and looked at ways we could improve the relationship, indentify ways of engaging to save money but overall improve the service through better use of technology or time as well as new products or enhancing our USP’s.
     “Swissport took the approach of improving quality rather than reducing cost for cost sake and additionally looked at where we get information and how information on vertical markets could assist us in planning for the future.
     “In terms of product enhancement we reviewed the services we were providing and looked at how these can be improved through better technology and asked the customers how we could improve information flows and the accuracy of information.
     “In doing this exercise we identified a number of USP’s that we capitalized on initially and then enhanced.
     “The introduction of Freightscan enabled us to gain more revenues where we were charged on a kilo rate but equally gives the customer more revenue improving the yield.
     “The development of Shield meant we were able to supply paperwork to our customers anywhere in the network if lost in the transportation process, so avoiding the need to recreate the paperwork and send on the next available flight improving the clearance times to the airlines customer and improving the on-time performance. “Enhancing ‘FreightTraker’ allowed us to identify where shipments are in our warehouse and making it available to the customers improved the speed of collection and transport.
     “This is being further enhanced to allow it to be interfaced with the airlines systems creating more transparency.
     “In addition to looking at customer facing innovations we also looked at internal processes to improve communication flows and avoid double entries which cost time and money.
      “Internally we created two new streams ‘Business Intelligence’ and ‘Customer Relationship Management – CRM’ to allow us to gain market information and deal with the customer proactively in terms of service and quality.
     “The air cargo business has always been very fluid and we have had to deal with the ‘peaks and troughs’ over the years, but the amount of consolidation and speed of airline mergers is a concern.
     “One surprise is that airlines are not outsourcing facets of the business as quickly as I had hoped to reduce cost and variabalize the cost base.
     “Perhaps this will come in the next year as it can lead to improved quality and reduced costs.
     “The industry governance does need to be adapted as it has not amended its model at the same speed the airlines have adopted change. IATA for example still talks to the airlines only on handling and does not fully engage the ‘handlers’ who are working on behalf of the airlines when it comes to quality and other initiatives.
     “The same is true with security in the USA where the TSA engage the airlines and make it the airlines responsibility to inform the handler(s).
     “Each airline has a slightly different take on what is being asked and where a handler operates for two or more airlines in the same facility this can lead to different processes having to be adopted.
     “The increased demand has meant we have had to purchase new equipment and change some processes to become compliant, however we embrace the additional security and see this as positive to the industry.
     “From the outset and throughout all of the questioning, concerns etc. the TSA never wavered in terms of spelling out that the 100% screening was a government mandate and that it would happen.
     “It took time – but once the industry accepted that the change was going to happen regardless, the theoretical gave way to the practical in terms of preparation.
     “A little like the change curve for an addict – denials had to give way to acceptance which ultimately happened.
     “Once this occurred the quality and frequency of dialogue between the industry and TSA picked up – it became purposeful, not theoretical…this allowed for a certain amount of flexibility in dealing with certain issues as the implementation unfolded.
     “It helps that there was the single point of contact with the TSA as the sole regulatory agency charged with the implementation. This may be an issue in Europe where likely multiple regulatory agencies will be involved.
     “The staggered implementation of 50% then 75% before the final 100% threshold was required was effective.
     “It is a basic change management approach to implement significant change in manageable bite size morsels in order to neutralize the “Chicken Little” syndrome.
     “In this case it worked.
     “Of course, the fact that volumes were lower than normal also helped keep things manageable along the way.
     “Pushing screening further up the value stream through the CCSF program was also a key.
     “This required the forwarding community and other front end stake holders to come on board.
     “Many did so during the pilot stage and it was the early adopters with critical mass that created the momentum necessary to get the program on track.
     “In terms of Europe I think it will be more difficult simply because there are more moving parts.
     “The regulatory regime is fragmented, and there is not the same sense of inevitability which really ended up galvanizing the industry in the US to action.
     Thinking a moment about industry trade shows in 2011:
     “The shows need to add value to the business and the industry. We have a lot of shows but a number are niches or specific to a sector within the industry which are relevant in a different way. “The general shows can be broken down in to added value by way of networking, presenting your services at a stand or booth and the content of the guest speakers in relevance to the business and subject.
     “The not to miss for Swissport are CNS in the USA, an IATA/TIACA event in the world and the Munich Air Cargo event.
     “In saying this, Swissport will attend a number of other events if they see the opportunity to meet with customers or gain new business.
Geoffrey

India Roundup As Kerala Opens

Indian Civil Aviation Minister Praful Patel and Kerala Chief Minister V. S. Achuthanandan along with the state's ministers and dignitaries pose for a group photograph during the foundation stone laying ceremony of Kannur International airport.

     As 2011 begins, the aviation and logistics community of India is taking off.
     Now three years down the line, Kerala, India’s southern state, will see its fourth international airport.
     The Kerala Chief Minister, V. S. Achuthanandan, laid the foundation stone for the fourth international airport of the State at Kannur recently.
     The airport, which is to be commissioned by 2013, will cater to one-third of the two million-strong Kerala workers in the Gulf and trigger the fast-phased economic development of the northernmost part of the state.
     Along with the Chief Minister of the state was India’s Civil Aviation Minister, Praful Patel.
     In his address, Patel said that the Kerala’s air connectivity would get a boost with the Kannur airport. Kerala launched the country’s first corporate airport a decade back in Kochi, which is now the fourth busiest airport in India in terms of international traffic after Mumbai, Delhi and Chennai.
     The state government has a 26 percent stake in the Kannur International Airport Limited (KIAL) held by the Kerala Industrial Infrastructure Limited, while 23 percent shares are with the state and federal public sector enterprises. About 2 percent shares are with the Infrastructure Kerala Limited (InKEL) promoted by non-resident Indians, and 48 percent shares are with three Mumbai-based groups, leaving only one percent for individuals and co-operative societies to subscribe.
     “Since 2004, the Indian aviation industry has grown by 400 percent. Airports are not only about bringing passengers home. They also bring a lot of economic development and movement of cargo and that is what we have to create,” Patel said.
     The KIAL managing director, V. Thulasidas, (pictured right with Civil Aviation Minister Praful Patel left) a former secretary of aviation and chairman of Air India, said at 3400 meters the airport would have the longest runway in the state and a taxi bay along the entire stretch of the runway. It would be capable of handling aircraft any size available in the world. The airport, which claims to be the first to be environmentally friendly in the country, hopes to handle 1.8 million passengers in the first year of operations and an annual growth of 8 percent is expected in passenger traffic. Six four-lane roads are also planned for the airport.
     The brains behind the project are the father and son duo, Captain K. Nair and Vivek Nair of the Leela Group. Over the years, the group has excelled in the hospitality sector with their top-of-the-line Leela Hotels.

Logistics Spotlight
     India’s logistics industry recently got a wake-up call: create adequate capacity to meet the rising demand for multi-modal freight movement or be left behind. With an eye on the rapid national GDP growth, the logistics industry had to counter the challenges of infrastructural bottlenecks. G K Vasan, India’s Minister for Shipping, made this statement at the recent logistics meet that discussed how to build India’s logistics infrastructure. The other impediment restricting growth was the high logistics number, which at 13-14 percent of GDP was way above the level of 7-8 percent of GDP in the developed countries.
     The minister pointed out that the government has taken a number of measures to support the growth of the logistics infrastructure, like opening up the industry to 100 percent foreign direct investment, promotion of a multi-modal transportation network, and public private partnerships (PPP). Among these initiatives were the National Highway Development Project, inter-connectivity of the 12 major ports, enhancement of the port handling capacities, the rail freight corridors in the east and west and the Dedicated Delhi-Mumbai Corridor.
     Veteran from the logistics industry, Cyrus Guzder, (left) who is Chairman of the Confederation of Indian Industry, National Logistics Council, mentioned that infrastructural bottlenecks and process lags in logistics were costing the national economy around $50 billion. He also pointed out that the need was for 20 expressways and not the five or seven that were being put up. There was also an additional need for 750 new last mile road links and a considerable number of last mile rail links. Multi-modal logistics parks would also need to be developed in tandem with the growing demand.
     Such demands would not remain unheard. Recently, Jyotiraditya Scindia, another minister – in fact, the junior minister in the commerce and industry ministry – enunciated the government’s keenness to build logistics infrastructure and storage of goods in the villages. He pointed out that rural India was the most developing and robust market within the country, which can act as a catalyst for enhancing the flow of FDI into the country.
The rural economy had a great role in the maintaining the 6.5 percent growth rate during the global economic recession. If there were a widespread logistics network in the hinterland, there would be more opportunities to attract investments from abroad.

K+N Acquires Cool India
     The Indian wing of Switzerland-based logistics major Kuehne+Nagel (K+N) recently acquired the Delhi-based RR Enterprises, which had a cold chain logistics business. Though no figures about the deal were released, it is believed to be around US$4-5 million.
     RRE is not too old. Owner Kapil Bhatia, a first-generation entrepreneur, had 50 refrigerated trucks and four reefer containers. His business was all-India and its acquisition by K+N would help the move to the perishable and cold chain logistics business. Industry experts believe K+N has seized the opportunity to step into the $475 million cold chain market in India.
     K+N's portfolio is wide: from end-to-end supply chain management, to sea, air, rail and road freight, contract logistics and lead logistics. It also does emergency and relief logistics, fairs and exhibitions and even hotel logistics.
     The K+N acquisition is the latest in a long line of deals in the logistics sector in India. First there was Coffee Day buying Sical Logistics for $35.38 million, Aqua Logistics taking over Star Distribution Logistics for $2 million and Hitachi Transport System Ltd. acquiring Flyjac Transport Logistics System for $56.1 million.

Overnight Deeper Reach
     FedEx continues to reach out to the furthest corners of India. Recently, it announced the expansion of its premium domestic express delivery service. The FedEx Priority Overnight and FedEx Standard Overnight services, which were launched in October 2009 (reported by ACNFT), will now include 331 destinations, up from 58 destinations previously. This extension of FedEx’s domestic footprint is intended to support the growth of customers' businesses by providing increased reach to key Indian markets.
     The expansion highlights the company's focused growth plan to facilitate unprecedented trade across India through highly reliable and convenient shipping solutions. The growth builds on the success of FedEx domestic service offerings since its launch in India and is aimed at offering customers a one-stop solution for their domestic express needs.
     According to Kenneth F. Koval, (leftt) Vice President, Operations, FedEx Express India, "India's GDP is expected to grow between 8-9 percent in the FY 2010-2011, making it one of the fastest-growing economies in the world. Our expansion is designed to facilitate faster and easier domestic trade and enhance our customers' ability to leverage the country's growth potential and take advantage of new trade opportunities."
Tirthankar Ghosh

Contact! Talk To Geoffrey

RE: A Christmas Story

Dear Geoffrey,

     Really great description of commuting into the City...I could visualize every mile...the only aspect missing was the occasional middle finger signal between the drivers signifying that New York City is No. 1!      
    It always amazes people when I tell them LaGuardia comprises just a bit more than 600 acres yet handles 20 million passengers. I am also amazed when the airport planners tell me we will need a comprehensive airspace study for an airport in the middle of nowhere when LaGuardia, Kennedy, Newark and Teterboro are within 15 miles of each other...and the smart asses from MIT tell me we cannot devise a curved approach into an airport...I then take them to New York to observe the Carnarsie Lights at JFK that end on the roof of what once was the Vista International Hotel.
      I always laugh when the regulators give me hiccups when siting a heliport....I take them to the former 60th St. heliport where the choppers dodge power lines, a 60 ft wall, the East River current and the Roosevelt Island cable car wires...only in New York.
      I am working on a project in one of the poorest counties in Florida and the U.S., but the local government has seen fit to engage the services of 3 consultants, two of which are lawyers, to prevent us from being too successful....much unlike Ed Ingraham and Tim Pierce (left) who were public servants in the truest sense...Ed would often say..."What do we need to do to make this happen?" or when I told Tim Pierce I needed two $900,000 fire trucks to help land the UPS hub in Chicago-Rockford.....Tim advised the Port Authority of New York & New Jersey has a surplus equipment program where the PANY&NJ would donate perfectly usable equipment to smaller airports in New York and New Jersey. He asked if I still had my New Jersey driver’s license?....three weeks later three flatbed trailers arrived in Rockford with two Pathfinder Crash Rescue trucks and a trailer load of spare parts and metric tools. He even loaned us their fire truck mechanic for a full week to indoctrinate our vehicle maintenance crew! Today we would need six attorneys, an Attorney General opinion, an environmental assessment and a waiver of conflict of interest that stated we would not resell the trucks to Al Qaeda.
      When I first went to Springfield, Missouri in 1969 I found that the local ramp crews were treating the Delta and Ozark air cargo shipments as if it were their personal Wal Mart. I called the Commanding Officer of the Massachusetts State Police to seek his counsel. A few days later two State Troopers were in Springfield to advise the local police as to various methods to trap the perps. In Florida, government employees cannot cross county lines without a passport, visa and note from the Governor.
     When we formed the joint Pan Am/KPI (Israel) anti-terrorist taskforce after the TWA FL 847 hijacking in Beruit, former Mossad/Shin Bet commander Isaac Yeffet responded to my query about developing an Operations Manual. He advised that the Mossad had a very concise Ops Manual re rules of engagement...When a suspected terrorist is observed...shoot first and interview later. His theory was his agents did not have time to read the manual before making a decision...they read the manual only if the perp survived the shot!
      Yes, your ride in the VW bus brought back memories of what once was and never again will be. There are no more handshakes without signing a Non-Disclosure Agreement first. Nobody cares about trust, loyalty or appreciation....it's me, me, me, me, me.
      There will never be anyone as courageous to do what you did for the restoration of the Marine Air Terminal because there will never again be public servants like Tim and Ed. Your recollection brought back the memories of our gatherings at the North Beach Club...a collection of Archie Bunkers enjoying cigars and the best airline-catered lunches. What fun we had but it also created an environment in which when one airline had problems, regardless of the competitive culture, we came to the rescue of the one in need.....      Thanks for the memories...

Your friend
Frederick C. Ford
A.A.E.

Dear Geoffrey,

     You have a good looking family.
     Keep up the good work.

Cordially,
Joe Berg

Dear Geoffrey,

     I love your family story in Flying Typers, and the pictures of that handsome family - present company excepted of course.

     Kindest regards, and keep up the good work.

Sir Maurice Flanagan KBE,
Executive Vice Chairman,
Emirates Airline & Group

Hi Geoffrey,

     Merry Christmas to you and your great family.
     As always, many thanks for the bus trip into the City and over to the west side.
     I read this every year and each year it is more fun than the last.
     I have many memories of driving those roads; however, not all of the memories are as romantic as you portray…but it is fun.
     Thanks again for the nice words regarding our Frontier Airlines agreement.
     You would not believe how many people read about it in FT and sent me a note.
     Best wishes for the New Year to you, Flossie, and your family.

Garner
W. Garner McNett, Jr.
President
Cargo Data Management Corp.

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