Vol. 9 No. 24                                                             WE COVER THE WORLD                                           Wednesday February 17, 2010

     A jetliner flight from Germany to Hong Kong takes about ten hours. Not in the case of Leipzig/Halle-based cargo carrier AeroLogic GmbH however, that deploys B777-200 freighters on that route. The aircraft need an additional sixty minutes or even more to link both airports nonstop since they are forced to bypass Russian territory.
     “We have filed an application months ago in order to obtain the traffic rights for over flying Russian airspace. Moscow’s Ministry of Transport however, has not granted us that permission as of today,” stated AeroLogic’s Managing Director Ulf Weber (left) during a meeting organized by the local Association of Aviation Journalists (Luftfahrt-Presseclub) in Hamburg.
     Consequently his freighters have had to circumvent the far stretching country on their way between Europe and China by choosing a more southern route via Kazakhstan and other CIS states. This route burns more fuel and is time consuming.
     Weber and his co-Managing Director Thomas Papke however, are confident to be permitted the traffic rights soon.           The soonest this could happen is March 12, when German and Russian government delegations gather to hold their bi-annual meeting on traffic matters.
     However, if an agreement is not reached, AeroLogic will have to wait until October of this year when the next round of bilateral traffic talks between Berlin and Moscow will be held.
     Meanwhile AeroLogic’s fleet has grown to four units, all of them leased B777-200Fs. Until year’s end four more B777-200Fs are scheduled to enter the fleet. By then the DHL Express and Lufthansa Cargo joint venture (50/50%) will be Europe’s fourth biggest air freight carrier, after AF-KLM-Martinair Cargo, Lufthansa Cargo and Cargolux.
     The carrier established in 2007 and operating since June 2009 has a very unique business model.
     “I don’t know any other cargo airline comparable to us,” says manager Weber. On weekdays from Monday to Friday the aircraft are exclusively deployed on DHL Express’ global routes, carrying mostly packages and parcels, then Lufthansa Cargo takes over responsibility on Saturdays and Sundays by utilizing the Boeing freighters on the carrier’s own network. Constant co-loading by both partners is assured by a block space agreement that secures the best achievable payload on basically every flight.
     “This model has proven to be pretty beneficiary for us and our parent companies DHL Express and Lufthansa Cargo as well,” says manager Papke. While AeroLogic is responsible for loading, transporting and unloading the shipment at the destination the parents manage the entire sales process, the warehouse handling, customs clearance, and feeding or de-feeding of the goods.
     “Actually we are the truckers of the air,” Papke states. The manager will leave AeroLogic in mid-March to become head of procurement at Lufthansa Passenger Airlines. His seat at AeroLogic will be taken over by Joerg Eberhart, (left) presently VP Commercial, Marketing and Network at Air Dolomiti, Lufthansa’s regional Italian subsidiary.
Heiner Siegmund

Hyderabad airport's cargo satellite building viewed from the air cargo complex. The facility has been put up by GMR, the operators of the international airport, and could be replicated at Delhi.

     While the growth potential that air cargo holds has prompted stakeholders to start new services or revamp existing ones in India, infrastructure providers too have woken up. The GMR Group, which operates Delhi and the Hyderabad international airports, has decided to set up a warehousing facility near the airport at Delhi, this year.
     GMR has a similar setup in Hyderabad. More on the lines of a cargo village, the Delhi one – the plans for which have been drawn up for execution from around September this year – will be built on more than100,000 sq metres.
     What is important is that GMR will not construct any facility on the land allocated. Instead, it will provide the foundation for cargo and logistics outfits that are looking to construct facilities. The airport operators hope that Delhi’s facilities would be better than those available at Hyderabad. Hyderabad’s international air cargo complex spans an area of 10 acres.
     Of this, three acres have been allocated for cargo processing and storage. Of the total area of 14,330 sq m, the international air cargo complex is on 6,610 sq m while the domestic air cargo complex has 4,346 sq m. Managed by a joint venture between the GMR Hyderabad International Airport Limited and the UK-based Menzies, the cargo section has a hi-tech facility capable of handling 100,000 tonnes annually.
     Like the Hyderabad airport cargo facility, the Delhi one would, in all probability, be operated with Hermes, an IT application that is used by a number of major airports around the world. Once everything is in place, the cargo terminal will be able to make its warehouse management, from the acceptance of cargo till it is put into a plane, efficient.
     The establishment of such a facility near the Delhi International airport has been a long-standing demand of the freight forwarding community. The facility that exists today is a small one operated by the local chapter of the Air Cargo Agents Association of India (ACAAI).
     The demand for the establishment of a cargo village has been gaining momentum ever since the Delhi airport was handed over by the Government-run Airports Authority of India (AAI) to GMR, the private operators. The manner in which GMR has been running the Hyderabad airport has earned it laurels and therefore reason enough for the demand to have become stronger. What has, perhaps pushed the airport operator to embark on plans to start the warehousing facility is the recommendation of the Planning Commission.
     The Planning Commission is the Government of India institution that formulates the country’s Five-Year Plans and is entrusted “to make an assessment of the material, capital and human resources of the country, including technical personnel, and investigate the possibilities of augmenting such of these resources as are found to be deficient in relation to the nation’s requirement,” which states setting up of dedicated air cargo villages, as is the norm worldwide. These cargo villages around major airports would have an integrated cargo infrastructure and would be single window setups to provide forward and backward linkages.
     The integrated logistics report prepared by the Commission mentioned that land had to be demarcated within the international airports and “where land is not available within the airport premises, off-airport air cargo village facilities can be developed.”
     While the airport-based cargo villages could be managed by the airport operator, the off-airport villages could be developed by logistics operators.
     In addition, the Commission had recommended that Delhi be developed as an international air cargo hub.
The report mentioned: “Considering relevant factors that affect an airport’s ability to attract transshipment cargo traffic, Delhi comes to mind first for development of an international cargo hub in India.”
     Air cargo experts believe that with the new warehousing facilities, Delhi could position itself as a global cargo hub. If nothing else, India’s capital has a distinct geographical advantage: not only is it connected to airports around the country, it also connects the East with the West. In fact, it is almost at the centre of the important aviation hubs of Singapore and Dubai airports.
Tirthankar Ghosh


Air Cargo News FlyingTypers leads the way again as the world’s first air cargo publication to connect the industry to the broadly expanding and interactive base for social commentary—Twitter.
     Here are updates from Twitter. To be added to this 24/7/365 service at no-charge contact: acntwitter@aircargonews.com

February 16:  Olympic Airways CEO Antonis Simigdalas (below) tells Flight Global despite financial meltdown in the country—air transport impact on Greece makes it among last things to be affected.

February 16:  It's Official! John F. Kennedy International Airport is" World's Ugliest Airport" according to Travel & Leisure Magazine.

February 16:  Woe Is VS. Richard Branson Virgin Atlantic founder is apoplectic as AA and BA get tentative approval from USA to combine their Atlantic services.

February 16:  Make those diapers to go….Tami is the name of a girl born on a TAM flight to La Paz recently. Tami (get it?) gets free flights until she turns 21.

February 15:  Wizz Air adds Warsaw to Madrid and from Gdansk to Barcelona April 24 2 X a week, with fares as low as EUR 42.49.


February 14:   In Turkey, Celebi Holding cargo and pax ground handling to invest $100 million in India—now holds contracts for Delhi and Mumbai International

 

Dirk Steiger
Managing Director
Aviainform Consulting GmbH
 

Fat Tuesday Yesterday

      By the time you read this, Mardi Gras in New Orleans will be over, as Fat Tuesday morphs into today, the first day of Lent leading directly into Easter 2010.
      Just five years ago August 29, 2005 changed everything as Hurricane Katrina slammed into New Orleans and with the levees breached, the people in one of the great cities of the world lay at the mercy of the elements.
      Now five years later as New Orleans continues to struggle back, we cast a fearful eye toward the weather map every time the word hurricane is mentioned anywhere near the place.
      But this Fat Tuesday it was all hi-jinks and good times celebration as Super Bowl Champion New Orleans Saints quarterback Drew Brees served as Monarch of Bacchus, one of the biggest parades of the Mardi Gras season.
      From his perch atop the float that was designed to look like a Roman chariot, Brees tossed black and gold footballs, along with the usual beads and doubloons to a packed Latin Quarter out to party in royal style.
      Great to see the spirit and action and life as Mardi Gras brought back the sweet— “You know what it means to miss New Orleans.”
Geoffrey

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