Vol. 10  No. 15                    WORLD'S MOST LOVED AIR CARGO PUBLICATION SINCE 2001                       Thursday February 17, 2011


AA Historic First To Haneda

      On Friday, February 18, American Airlines cargo-friendly B777s will open skies between the continental United States and Tokyo’s International Airport at Haneda, marking the first service since the United States and Japan signed an historic Open Skies Agreement in October 2010.
      The inaugural flight will depart New York's John F. Kennedy International Airport for Tokyo Haneda, returning on Sunday February 20 from Haneda to New York.
      American is the world’s only airline to fly between New York and Tokyo’s close-in Haneda – located only 30 minutes from downtown Tokyo. American stands alone in serving both Narita and Haneda Airports from New York.
      “Our new B777 flight to Japan adds important daily trade lane opportunities for shippers via JFK, with connections throughout the U.S. and Latin America, including Sao Paulo, Buenos Aires, Rio de Janeiro and Santiago,” said Dave Brooks, American Airlines Cargo President.
      “In the USA, connections from JFK to Miami, Philadelphia and Boston will see increased activity as the new service settles in.”
      “The new American flights to Japan are well placed to support various commodities including pharmaceuticals, digital cameras and video recorders from HND to JFK, as well as auto parts and construction equipment connecting to Sao Paulo, Brazil,” Brooks said.
      American also said it expects to move outbound U.S.A. consignments of flowers from South America and fish from the U.S. east coast aboard its new trans-Pacific service.
      AA reports that cargo handling acceptance and dispatch at HND goes 24/7.


     In a few short weeks, IATA World Cargo Symposium (WCS) will gather all the top executives of this industry together in Istanbul, Turkey.
     What these princes of air cargo are likely to discover or learn at WCS is open to question.
     But undoubtedly, one impression that will be made loud and clear is that Turkish Airlines Cargo in 2011 has emerged upon the global scene as not only a player, but is also leading the way with aggressive marketing and spirited service delivery.
     There is more spirit to THY Cargo, which today is a high profile professional organization well worth getting to know a little better.
     Talk about a sure thing: here we speak exclusively with Senior Vice President Cargo, Abdullah Soner Akkurt who offers an up close and personal look at Turkish Cargo, which emerges as an exciting and driving factor to what otherwise should be an interesting Air Cargo Week at the Hilton Istanbul Hotel from March 8-10, 2011.

FT:   Please describe the current business climate for THY Cargo. What kind of year was 2010 and what lies ahead for 2011?
ASA:   Turkish Airlines was the fastest growing airline in Europe during the financial crisis. We invested more and tried to take advantage of the crisis. We have been successful with this strategy. Contrary to other airlines, we increased our revenues, traffic share and profits. In 2009, Turkish Airlines carried more than 25 million passengers and 230,000 tons of cargo. In 2010, we reached 29.4 million passengers and 313,000 tons of cargo. The natural feature of Istanbul being a bridge between Asia and Europe plus the proactive foreign policy of the Turkish government helped us to reach this success.
     The main focus for 2011 is to have it be the year of operational productivity and quality, in addition to increasing global brand awareness for Turkish Airlines. New aircrafts are going to join the fleet, new destinations will be opening, and renewing of facilities and frequency increases are going to happen.      Furthermore, great increases in passenger and cargo traffic are expected parallel to capacity increases. For 2011, our target is 35 million passengers and 380,000 tons of cargo.
FT:   What air cargo equipment are you operating and what destinations are new or will be added?
ASA:   Turkish Airlines has one of the youngest fleets in Europe, with the average fleet age being 6.5 years.      The current fleet consists of 154 Airbus and Boeing airplanes, including 5 freighters. Our freighter fleet is comprised of four A310s with 36 tons of capacity and one A330-200 with 70 tons of capacity; the total number of freighters will reach six by the first half of this year with the joining of a second A330F.
     Our company aims to expand its services globally every day. Our policy is to have one of the largest networks within the airline business sector, thus creating a global footprint. We currently operate in 26 scheduled cargo destinations with our freighters: Beirut, Cairo, Dubai, Cologne, Tbilisi, Damascus, Amman, Tel Aviv, Almaty, New Delhi, Frankfurt, Maastricht, Zurich, Paris, Madrid, Pristina, Milan, Algeria, Tripoli, Casablanca, Tiran, London, Shanghai, Hong Kong, Tashkent, and Bishkek.
     During 2011, we are planning to operate with our A310F to Munich, Jeddah, Bucharest and Addis Ababa, and with our second A330-200F to Dhaka, New York and Singapore.
     With Turkish Airlines still planning to add new routes to its network, we now stand at 172 destinations, such as, Los Angeles, Shiraz, Manila, Atlanta, Malaga, Valencia, Toulouse, Kabul, Naples, Turin, Genoa, and Basra.
FT:   How has the B777 impacted your cargo business?
ASA:   By 2009, Turkish Airlines started to incorporate B777 airplanes into its fleet. We know that apart from its passenger capacity, the aircraft offers huge belly capacity for long-haul destinations. With a full passenger load, it offers approximately 20-30 tons of cargo availability. Thus, we can openly say it has affected our business positively through the ability to optimize the offered cargo capacity.
     In 2010 with the B777 belly capacity we served our customers at destinations such as BKK, DXB, HKG, JFK, LHR, NRT, PEK, and PVG. In 2011, more destinations will be added with the arrival of two more such aircraft to our fleet. At the end of this year, we can say that the cargo capacity offered with our B777 will be a total of 330 tons per day.
FT:   Why should shippers prefer utilizing THY air cargo services?
ASA:   In a competitive and fragile international air cargo market where businesses compete for customers, customer satisfaction becomes a key element of our business strategy. In order to achieve maximum customer satisfaction, the primary focus of Turkish Cargo is to have a 'Customer-oriented approach’ within the framework of our quality policy. To achieve this end, we tend to use our existing facilities in a suitable manner to meet customer needs and to renovate our operational procedures in a leaner way in order to make our shipment process clear and fast. We also aim to simplify our service for our customers, so we renovated our website www.turkishcargo.com.tr in order to meet customer demands, and also to offer the easiest way to monitor their shipment at every step.
     Moreover, Turkish Cargo has participated in the Cargo2000 project to increase its performance operationally and to meet customer expectations for higher service quality. Thus, we target sustainable growth with an ever-widening flight network and cargo capacity by increasing our share in the global air cargo market. We re-engineered the transportation process from the shipper to the consignee attaining the applicable standards with the assistance of our IT department.
FT:   Describe your operations in Turkey and connectivity throughout the world, especially the Middle East.
ASA:   According to a preliminary traffic report of the Airport Council International (ACI), one of the main contributors to the 2010 growth in air cargo volume is the Middle East. This growth will also continue in the coming years and so the region will continue to be one of the most dynamic aviation markets, with the dedication of regional and global operators for big infrastructural developments in the main airports such as Istanbul, Dubai, Abu Dhabi and Doha.
     Based on January-May 2010 statistics, the MENA region is now considered in 3rd place in Turkish Cargo general volume. In 2010 the cargo carried from the North African region doubled in volume compared to the previous year, and the cargo carried from the Middle East rose 13 percent from the same period.
      MENA is a very important air cargo market and at the same time it is an emerging market. Turkish Airlines, paralleling Turkish Cargo, expanded its network capability in 2009 and currently operates in 26 cities in the region. As mentioned before, Turkish cargo also has a good network of scheduled freighter service to Casablanca, Algiers, Tripoli, Cairo, Tel-Aviv, Dubai, Amman, Damascus and Beirut. The market affords many opportunities truly making Turkish Cargo a global business resource.
FT:   Next month (March 8-10, 2011) THY is the host airline at IATA World Cargo Symposium. What are the most important impressions that you would like to make on delegates attending the event and possibly visiting Istanbul for the first time?
ASA:   The 5th IATA World Cargo Symposium, the annual scheduled meeting of IATA, is going to be held in Istanbul March 8-10, 2011. The 2011 IATA World Cargo Symposium is an important event for setting the industry’s global priorities and future of the air cargo supply chain.
     TURKISH CARGO is the host sponsor of IATA World Cargo Symposium. The World Cargo Symposium is going to start with the inauguration speeches Mr. Temel Kotil, CEO of Turkish Airlines, and top IATA executives. It comprises a half-day plenary session focused on the needs of the customer, a Cargo Executive Summit of heads of cargo from the supply chain, 18 cargo industry meetings and 12 cargo forums, all of which take place over three days. More than 700 delegates, top executives and key decision makers from the air cargo supply chain, airlines, forwarders, GHA, GSA, customs, airports, shippers and vendors are expected to participate.
FT:   Why is Turkey a preferred country for business and tourism?
ASA:   According to Worldbank’s business rankings, Turkey is amongst the world’s best economies for business. Its geographical position is more competitive vis-a-vis the neighboring countries. We can easily say that Turkey has the most stable political environment in the region, and that also affects investors’ choices to invest here. Turkey has one of the most rapidly growing economies in the world, which gives momentum for growth of companies choosing Turkey for doing their business.
     Turkey connects the East and the West both literally and figuratively. What words can describe Turkey? You would search in vain for a country where the history and culture is as impressive as Turkey. The civilizations of the world have left their own distinct marks on these lands. Turkey is full of intact remains from the Hittites, Romans, Byzantines and Ottomans. They all had their capitals on this soil.
     Turkey has so much to offer her visitors—breathtaking natural beauties, unique historical and archaeological sites, steadily improving hotel and tourist infrastructure, a tradition of hospitality and competitive prices. It is not surprising therefore that this country has recently become one of the world's most popular tourism destinations.
     Today Turkey is abuzz with life, energy and enterprise. It is a modern, secular country with a booming economy. It embraces its future as a bridge between the East and West. Its cities teem with vibrant cosmopolitan life. Wherever you travel in Turkey, the country and its people will amaze and inspire, the surge of its market forces and the modernization of the infrastructure of the whole country is impressive. Turkish hospitality and genuine warmth is a tradition. Turkey has become a preferred country for incentive groups and meetings in recent years. As a result of this, each year the number of tourist establishments devoted to big groups and incentive services are increasing.
FT:   Turkish Cargo is celebrating 75 Years - why is the company successful and admired?
ASA:   TURKISH CARGO carried its first international cargo in 1936 and is experiencing the thrill of achieving 75 years of international cargo transportations in 2011. Today, it is proud to have reached over 300,000 tons of cargo in a year. With the title of Europe's fastest growing company in 2009, TURKISH CARGO delivers customer cargo to over 170 destinations all around the world. It is the strongest candidate for the fastest growing air cargo brand of Europe. Furthermore, it is preparing to add the 2nd new generation Airbus 330-200F cargo aircraft in June of 2011 after having added the first Airbus 330-200F to the fleet in September. With the addition of this freighter, Turkish Cargo plans to open new routes and will increase frequencies on existing routes.
FT:   What plans are in place that will help promote success for the next 75 years?
ASA:   TURKISH CARGO is trying to increase its brand awareness by attending air cargo fairs in Kenya, Hong Kong, Germany, Brazil and the U.S. in 2011 and also by hosting the IATA World Cargo Symposium, the most important event of the industry to be held in Istanbul in March 2011. Brand awareness activities have started with the launch of the newly designed web site of Turkish Cargo. In its 75th anniversary of international cargo transportation, Turkish Cargo is moving rapidly to taking its place among the world's air cargo giants.
FT:   What is the greatest challenge to your business in air cargo moving ahead?
ASA:   There are still challenges to the air cargo industry, such as low yields, volatile fuel prices and matching capacity to demand. Being aware that our industry is fragile, more fragile than every other service industry, we must take intelligent steps for the future. Air cargo companies must be leaner, more cost-efficient and wiser after having experienced the economic downturn. The industry must exploit its advantages, such as security, speed and reliability. Air cargo must be seen as a total supply chain, together with the shipper, consignee, custom, freight forwarder and carrier. The comprehensive cargo screening programs must be used industry wide, and in a cost-efficient way, supported by new technologies and causing little disruption to customers and operators. In terms of customs, there is still need for drastic changes—to reduce origin-destinations timing and to pair more commonly applied customs requirements with widely used electronic data transfers. All this must be done in order to make air cargo more secure, simple and reliable in the future.
     Security is the main issue for coming years, especially for air carriers after the incidents that occurred in Yemen. It’s obvious that the air cargo industry is more vulnerable to such kinds of terrorist attacks, so there must be a common vision in the industry in order to have reliable security standards.
FT:   How did you get into the air cargo business?
ASA:   I entered Turkish Airlines at 2004 and started in the Marketing Department of the passenger side. After being promoted to Senior Vice President of Marketing and Sales for passenger side, I was appointed as Cargo Senior Vice President and continue my work here.
Geoffrey Arend/Flossie


Cargo Guy Leads Los Angeles
Chamber Of Commerce

     Last Thursday night at a grand celebration dinner, Jerry Brown, Governor of California, along with more than 1,500 business owners and civic leaders was on hand to welcome air cargo guy Joseph A. Czyzyk, CEO of Mercury Air Group, as the 2011 Chairman of the Los Angeles Area Chamber of Commerce.
     Mr. Czyzyk, who was born in Poland and is a son of holocaust survivors, noted that much work needs to be done to right the ongoing rebuilding of business.
     "When government and labor join with business, we can create good jobs, bring back prosperity and pull us back from 14 percent unemployment," Czyzyk said.


Government To Air Cargo & Vice Versa
     Former Dutch Transport Minister Camiel Eurlings has been nominated new head of cargo at KLM. He will replace Michael Wisbrun, who chaired KLM Cargo for twelve years and was responsible for managing the Joint Cargo Committee of Air France-KLM since October 2005, and lately Martinair.
     Eurlings will take over responsibility for the air freight business at KLM and the Joint Cargo Committee of the Franco-Dutch carrier starting April 1st of this year. In addition, he has been nominated for membership in the statutory board of the airline as of July 1.
      The board is comprised of three executives, headed by KLM’s President and CEO, Peter Hartman, and will be revamped with Eurlings’ approval as he becomes its fourth member. Given this, he will be in a much stronger position than his predecessor Michael Wisbrun, who had no seat at the airline’s board.
      Meanwhile, Wisbrun has been proposed for a new position within the Air France-KLM group. Further details concerning his future carreer were not available from KLM’s press department. "An announcement will follow soon, probably within a week," is all spokesperson Joice Veekman was willing to say when questioned by ACNFT. Her colleague, Astrid de Craen, denied any external pressure, like possible price-fixing fines, as the cause of Wisbrun's departure from his current position. "It’s a normal change of personnel after Michael has headed KLM Cargo for a dozen years," she stated.
     Said Peter Hartmann: "We have been carrying out intensive discussions with Camiel Eurlings since December concerning the role he might play within KLM. I am extremely delighted by the outcome of these discussions."
     Eurlings' main responsibility will be Air France-KLM Cargo. Eurlings stated: "KLM is vitally important to the Dutch economy and, together with partner Air France, a major player on the world stage. It is a company that is focused on the future, has a long Dutch tradition and highly-dedicated workforce. My responsibility for Cargo returns me to my original discipline as a logistical engineer. It is an extremely interesting job which will also enable me to better plan my private life."
     The 35-year old rising star and member of the conservative party became the youngest minister in 2007 in Prime Minister Jan Peter Balkenende’s conservative government.
     As a minister, Eurlings was a strong lobbyist for the aviation industry, defeating a new tax on air travel after its inception only a year ago. In March 2010, however, Eurlings unexpectedly announced his exit from politics to start a family.
Heiner Siegmund/Flossie


Celebratory line-up at delivery of first Uni-top Airlines' B747-400 in June 2009.

     After three years of preparation, Uni-top Airlines, a newly launched private all-cargo carrier, will get its official license to start commercial flights.
     According to the statement posted by Civil Aviation Administration of China (CAAC) on November 29, CAAC concluded that Uni-top airlines had completed its preparation works and entered a ten-day public review period for its application of an operating license.
     A statement such as this means flying for Uni-top is pretty close and fixed.
     With RMB150-million registered capital, the Wuhan-based carrier will fly with its three second-hand B747-200 freighters bought from Air China Cargo, which owns the largest B747-F fleet in China.
     Uni-top Airlines is fully invested by a Shenzhen private firm, Uni-top Industry Company. Established in 1998, Uni-top Industry mainly provides domestic and international air cargo forwarding service, and has been organizing cargo charter service since 2004.
     It is quite reasonable for Uni-top to celebrate CAAC’s approval, as many of its counterparts are still waiting to be approved.
     In 2007 CAAC announced a three-year suspension for new airline applications; Uni-top was just one of over ten firms that had already filed the application to CAAC.
     In the past three years, six airlines received approval from CAAC to commerce operating, three of whom are all-cargo carriers: Grandstar Cargo International Airlines, Shunfeng Express and Uni-top.
     The green light given to all-cargo carriers shows CAAC’s clear preference and also points out the only feasible opportunity for private capital to invest in airlines.
     In November 2010, the time came for CAAC to review its three-year suspension, and many private investors expected the re-opening of Chinese civil aviation industry.
     However, CAAC issued the so-called “21+5 new articles;” two provisions that further enforce the measures on civil aviation security and strengthen the management of operating licenses for airlines.
     The new provisions continued the suspension of new airlines applications and said nothing about airlines already in preparation, which means the approval of an operating license is still unpredictable if not impossible, especially for passenger airlines that are not using homemade aircraft or targeting regional flight routes.
     In fact, many of the firms are facing difficult situations.
     Uni-top is lucky to get the operating license. But the new provisions can be difficult to maneuver around for newly launched airlines.
     “Airlines should only launch flight routes from where they are based; and airlines would not be allowed to set up subsidiaries before ten-year operating experience and 50-more aircraft.”
     The air crash on August 24 in Yichun has greatly shifted CAAC’s emphasis away from expansion and towards flight security, and the issue of new provisions did not bring private airlines a clear vision of China’s civil aviation future.
     What is clear is that the new provisions have strengthened the competitive advantage of giant, state-owned airlines, and private airlines will have to make even more efforts to survive.



RE: CNS Mini Packs Big Wallop


     It was nice to meet you at the CNS conference.
     I want to give you kudos for the excellent article you wrote.
     You gave a great synopsis of the events, particularly mentioning the most important issues.
     Keep up the good work.

Thomas Paciello, NYC ZA-M
Manager Airfreight Processes
Kuehne + Nagel Inc


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