Vol. 10  No. 7                                                   WE COVER THE WORLD                                 Tuesday January 25, 2011


Return Of The Red Baron
At Lufthansa Cargo

      2011 marks 93 years since Manfred von Richthofen, the most famous fighter pilot of World War I, shot down 80 aircraft and died after being shot down himself, at age 25 over the skies of France. While the new Lufthansa Cargo Area Manager for the Americas, Achim Martinka, bears a striking resemblance to “The Red Baron,” he is most certainly out to make his mark not by downing anything, but rather by lifting air commerce into the sky.
     “Martinka’s American Zeitgeist” gets off to a flying start as he speaks to FlyingTypers in an exclusive interview:

We think 2011 will be a year full of important decisions.
     At stake in the first six months is the ruling awaited from the Federal Administrative Court in Leipzig regarding night-flight restrictions in Frankfurt.
     We all hope for a decision against a blanket ban on night flights in Frankfurt. Dependent on the future night flight regulations in Frankfurt, is a major investment into the infrastructure at our hub.
     Our goal is to build a new and modern logistic center – if we get the the operating hours at the airport.
     In 2011 we will also make decisions regarding a capacity growth.
     We want to grow with the market and offer our customers a dense and attractive network and the capacity they need. Therefore we will have to invest in our capacity.
     One highlight for us in the Americas is the new destination Manaus in Brazil, which will be served from January 21.
     On balance, 2010 was far above our expectations. After the terrible loss of 171 million euros in 2009 we are about to achieve a record profit in 2010.
      I am glad that we were able to reactivate all parked freighters this year.
     New destinations and new products were introduced and certainly a key to this success. A great example is the Opticooler, the most modern cooling container in the industry.
     Looking ahead, volatility of our industry will stay. Therefore, high flexibility remains a key success factor.
     Tightened security regulations also provide challenges. However, Lufthansa Cargo is recognized as the Industry Leader in this field and I am convinced that we master these challenges.
     One further issue worth mentioning is the emission trading scheme. Starting in 2012, European air transport will be included in emissions trading. It is already now becoming clear that the bureaucratic approach of the European Union will lead to higher costs for us as an airline.
     In terms of our business by segment, 2010 saw all products performing extremely well.
     Our express product td.flash has seen high growth rates as well as our specialized services, like the transport of temperature sensitive shipments.
     In this segment we expect the high demand from the pharmaceutical companies to continue in 2011. Thus we have just signed a MoU in Hyderabad to establish a pharma hub at this South Indian airport.
     When we look at the strength in the different regions of the world, Asia Pacific remains the biggest market. Growth rates were very strong out of Asia, but even higher in the Americas.
     By November Lufthansa Cargo had increased its tonnage by almost 20 percent compared to the previous year.


Up Front & Personal
An Air Cargo News FlyingTypers First

Jack Lampinski


Des Vertannes
Head of Cargo

 In 2011, IATA and its supply chain partners will be carrying out several exciting initiatives to build a more competitive supply chain:
     Having put the e-freight network in place, the focus is now on volumes. With the collaboration of our supply chain partners, 2011 will see a significant ramp up in e-freight adoption, from 2.8 percent of shipments on capable trade lanes to 10 percent by the end of the year. E-freight also enhances the provision of security data for regulators, helping authorities intelligently manage freight security.
    Secure Freight has taken on new relevance in the wake of the October 2010 security incidents. The initiative, which describes the processes and tools needed, implements a secure supply chain approach and is currently being piloted in Malaysia. Egypt will introduce the system this year. Two additional countries will be encouraged to adopt Secure Freight principles during the course of the year.
    Cargo 2000 provides a key measure for electronic standards between forwarders and airlines, identifying errors in data provision, delays in transmitting messages and accuracy. IATA will look to develop criteria of common service standards within the cargo ground handling community in 2011, collaborating with major ground handling companies to do so.
     2010 was a year of recovery for air cargo. While concerns over a possible double dip phenomenon continue to recede, there are marked differences in the rates of economic growth between and within regions.     We are still closing the books on 2010, but growth beyond previous peak levels is now evident. Cargo revenue for 2010 equaled the previous peak in 2008; yields improved by 7 percent and overall volumes were up 18.5 percent as per our December outlook. Cargo growth made a significant contribution to the industry’s $15.1 billion profit. A black number on the bottom line is good news, but we must also remember that this is just a 2.7 percent margin.
     We do not track data on business performance by segment. Information on industry performance is available on the cargo e-chartbook. In 2010, air cargo led the recovery of the air transport industry as a whole. Consumer products from Asia were the initial catalyst as inventory re-stocking took place, followed by export-led growth of high-value products from the USA and Europe.
    More information is available in the IATA cargo e-chartbook:
   Looking ahead the sharp upswing in 2010 will moderate in 2011. Profits are expected to decline by 40 percent to US $9.1 billion with margins shrinking to 1.5 percent. Sustainable profitability is the challenge. Much of the industry’s fortune depends on global economic performance. However, we can improve performance by ensuring a secure, competitive, reliable and efficient supply chain. IATA, in partnership with freight forwarders, shippers, ground handlers, and government customs authorities, is working to build such a supply chain through greater adoption of e-AWB and e-freight, expanding the use of Secure Freight principles and measuring performance through the Cargo 2000 programs.
    The key to our success in building a better supply chain is partnership. IATA must work closely with all partners to maintain the industry’s competitiveness and its crucial role in global trade. One opportunity to come together and determine solutions to key challenges facing air cargo is the World Cargo Symposium. Taking place from March 8-10 2011 in Istanbul, the symposium, named “Connecting the World,” will reflect the importance and potential of air freight. Over 700 delegates, including top cargo executives and key decision makers from airlines, forwarders, ground handling agents, customs, airports, shippers and vendors are expected to participate.
     IATA will also be attending Air Cargo Europe from May 10-13, 2011, and other TIACA and FIATA tradeshows, in an effort to maintain the industry engagement critical to our collective success.
Ted Braun


Lux Deluxe

Robert Van de Weg
Sr. Vice President Sales & Marketing
Cargolux Airlines

FT:   What will be new and exciting at Cargolux in 2011?
RvdW:   We are really looking forward to deliveries of our B747-8's.
Technological advance is a key issue in our business.
As far as the market goes, 2011 will surely be interesting, as we will see the aftermath of 'bust' year 2009 and 'boom' year 2010. It will surely be turbulent, but at Cargolux we are prepared for the next battle.
FT:   Recap 2010. Did the year perform up to expectation?
What stood out?
RvdW:   It was an incredible year. A fast market recovery, an ash cloud stopping our entire operation. A summer feeling like a peak season period and a peak season period feeling like a summer lull. The world was upside-down.
FT:   Detail key appointments and any other new people you would like to introduce (recap).
What is the biggest challenge to your business looking ahead?
RvdW:   A Big challenge is the ongoing consolidation and concentration in the market leading to low unit costs of our competition and strong buying power from our customers.
We have always been successful in finding our niche among these strong forces and this will always continue to be our biggest challenge.
FT:   Which trade shows will Cargolux attend?
RvdW:   In 2011, Cargolux will participate in the Air Cargo Africa (22-24 in Nairobi), in the Air Cargo Europe (10-13 May in Munich), and in the Air Cargo Handling Conference (19-21 September in Amsterdam).
FT:   Which segment of Cargolux is performing best and which holds the most promise?
RvdW:   Our best sector continues to be off-sized freight. We are real specialists in this field in the market segment between cargo carried on lower deck bellies on the one extreme, and "AN-124 type" of cargo on the other side of the spectrum.


     Calogi, the largest air freight portal solution in the Middle East, marked its second year.
     “Calogi was launched in 2008,” says Patrick Murphy, Head of Calogi, “and over the past two years, has achieved many significant milestones.”
     “During this short period, Calogi has experienced phenomenal growth - the companies subscribing to the portal currently number more than 400, forming a user base in excess of 1,195, who have together conducted more than two million successful transactions to date.
     “The overall number of users, transactions and customers is expected to double year-on-year.
     “The key to Calogi’s success is its immediate benefit to the air cargo industry; we provide solutions that are not only innovative and lead to significant cost savings for our customers, but also provide a ‘greener’ way of working.
     “By enabling the air cargo supply chain to do business electronically, Calogi has united the local community, enabling each partner to exchange digital information to form the basis of a cost effective e-freight compliant solution,” Patrick Murphy said.


Eine Kleine Klausmusik

     As Achim steps into his own as cargo area manager the Americas, the great Klaus Holler, having laid down the sword, has now concluded a sentimental journey back to Germany where he launched an illustrious career with Lufthansa more than 40 years ago.
     Don't bet against him picking up his Fender and joining a local pick up band.
     Here pictured with his beloved Brigitte last autumn, to us it seems the Hollers cannot wait until tomorrow, ‘cause they look better everyday!’ G


If You Missed Any Of The Previous 3 Issues Of FlyingTypers
Click On Image Below To Access