Vol. 10No. 18WORLD'S MOST LOVED AIR CARGO PUBLICATION SINCE 2001Monday February 28, 2011


(Exclusive)—As the first Air Cargo Africa trade show called it a wrap late last week in Nairobi, Kenya, we spoke to people on the ground that said a new show in a new town was just the ticket to jumpstart the industry trade show season in 2011.
     John Batten, Executive Vice President of Global Cargo at Swissport, had this to say about Air Cargo Africa:
     “I was in NBO 3 days for the entire conference, which is the first in the region and pivotal in many respects as Africa holds huge potential for Swissport.
     “We have a very solid business today in South Africa, Algeria, Tanzania and Kenya.
     “In Kenya our new Swissport warehouse operation is worth mentioning; it opened last November and represented a USD 10 million dollar investment.
     “At the award dinner we won ‘Air Cargo Handler – Africa,’ which was a pleasant surprise and shows that our operations are providing the quality needed for the African market.
     “But to be perfectly honest, I still feel we need to improve a number of areas, which is why our message in Africa was to continue to strive for better consistency of service across all Swissport locations worldwide.
     “Also, as we expand in Africa we will bring to market more innovation in terms of technology and systems.
     “Looking at Air Cargo Africa, what surprised me about the conference was the quality of attendees for the first event of its kind.
     “The conference itself was reasonable, but too much time was spent talking around the different tracks by the event leaders, although the MC, Aaron Heslehurst, was at his best as always.
     “Likewise, awarding gifts for the attendees at the end of the sessions was laborious, but a nice touch.
     “People were talking about the challenges Africa faces and the need to build on all levels from aviation to facilities, government and infrastructure, with IATA guiding the way.
     “The Kenyan/African market is extremely buoyant but demands a lot as it is driven primarily by perishables. Kenya has committed to change and to upgrading the airport facilities and had the Minister of Transport, The Honorary Amos Kimunya, (left) in attendance to enforce the commitment to the industry.
     “Likewise, a number of new warehouses are being built to improve the general quality at the airport, although this is sadly lacking in other locations where governments still run ground and cargo handling companies in the region.
     “The infrastructure in these airports is not good and a lot of change needs to happen and hopefully movement to Swissport in the future,” John Batten said.
      Ram Menen DVSP at Emirates SkyCargo, told FT:
     “Africa is the next frontier with great potential and opportunities.
     “Good show, good conference, good quality turn out.
     “There has been lots of interest and the networking opportunity was great!” Ram Menen said.
     “These are great times for us.
     “Trade in Africa is diverse and it is proving to be a major hub for air cargo.
     “Infrastructure here is still a challenge for us, but we are seeing African governments addressing this and it should improve,” he said.
     Emirates operates a freighter four times weekly into Nairobi while also serving 15 African destinations including Lilongwe, Entebbe, Lagos and Dakar.
     If you have some cargo and need an African connection, chances are
Ethiopian Airlines Cargo’s Tewolde Gebremariam (“Call me Tewo”), who is also the carrier’s CEO, can make some sense in terms of “reliability, capability and price.”
     “With a varied and growing eet of freighters, Ethiopian can tailor a program to suit any need,” Tewo said.
     “Tewo’s bold vision is for Ethiopian Cargo to “become a market leader as a world class African cargo airline in 10 to 15 years.”
     “We currently operate seven dedicated freighter aircraft (four MD-11F, three B757F and one AN-12 aircraft).
     “At the same time we have transformed our hub (ADD) into one of the best cargo operations in Africa, offering the full menu of services including cold rooms, automation and 24/7 security.
     “There is room to grow with Ethiopian Cargo,” Tewo declared.
     Also in Nairobi, Kenya, Peter Scholten, (right) VP Commercial Saudi Airlines Cargo Company, told Flying Typers:
     “The Nairobi event on balance has been good.
     “Attendance is adequate, the conference is not huge, but the players are here and although the facilities are what they are, everyone seems happy to be discovering ‘a new market.’”
     “Moderators have been good and discussions lively.
     “The big thing about Africa is that people are looking for the next China or India and so Africa in many ways just fills that bill.
     “For me, I have lived in Nairobi, so it’s good to be back home.
     “Saudi Arabian Airlines Cargo Gateway Jeddah, if you look at a map, is very close to Africa; in fact only 40 minutes by air.
     “Jeddah serves as a natural hub for Africa for a growing number of our services, including into Nairobi, which will increase later this year.
     “Saudi Arabian Airlines is rapidly expanding flights across Africa, including the northern part of the continent where we operate all the way from Casablanca to Egypt.
     “Most recently we concluded an agreement to operate nearly 60 charters from Dubai to Lagos, Chad and other destinations.”
     Heide Enfield, Head of Marketing and PR at Lufthansa Charter, noted that the full day exhibits on Tuesday and Wednesday and half-day exhibit on Thursday were “surprisingly successful for a first time event.”
     “Lots of quality contacts and a good amount of visitors.
     “For us to be in Nairobi confirmed our view that the African market is interesting and growing.
     “Of course the unrest in some other parts of Africa was one of the top issues of discussion that people talked about in the exhibit area.
     “During the exhibition we collected monies to support Lufthansa Cargo's 'Cargo Human Care' project, Mothers’ Mercy Home in Nairobi.
     “Mothers’ Mercy is an orphanage with 98 children and a medical center.
     “We raised funds by raffling a Lufthansa Cargo Charter B747-400 1:100 scale model as a prize.
     “The motto was: ‘Make Children Smile - Donate a Future - Win a Jumbo Jet!’
     “The effort turned out well as Air Cargo Africa attendees helped us raise over €500EUR.
     “Thursday, after the show ended, we packed up and then Volker Dunkake (right) and I drove to Mothers’ Mercy's Home to visit the children and present the monies raised.
     “Mothers’ Mercy was quite impressive as are the people of Kenya.
     “In this job I have travelled a lot, but the friendliness and warmth of the people we met in Nairobi was something I have never experienced before to such an extent.
     “Everybody made us feel warmly welcomed, the staff in the hotel felt like family on the second day already, and even in the street or around the exhibition center a lot of people just gave us a smile and an hello.”
     John Ryan, (left) Regional Sales Director of Airline Services International (USA), told FlyingTypers “We learned that everyone must include China amongst the many nations seeing the great potential in various parts of Africa,”.
     “We thought the Air Cargo Africa show was very good; there weren’t huge crowds, however, there were many good, quality contacts and much potential for future growth.
     “Top discussions here were, of course, the Africa air cargo market as well as communications, security services, beyond gateways and markets outside of just Kenya.
     “Nairobi is a busy city with many nice people.”
     “Our overall impression is that is was well worth the week we spent here, especially amidst talk of possibilities for business that was very upbeat,” John Ryan said


AA Cargo Business Insights Out

     "Our philosophy is that the relationship with our customers is about much more than space on our airplanes.
     “It’s about delivering value,” said Dave Brooks, President of American Airlines Cargo, as AA Cargo launched Business Insights, an online resource offering market and industry information to shippers and freight forwarders seeking to grow their business.
     The site, online at www.AirCargoInsights.com, provides information on global, regional and industry market opportunities based on the latest shipping and trade data.
     “With Business Insights, we’ve remained true to an idea of starting with understanding the things that are important to customers and our industry,” Mr. Brooks said.
     In addition to international market data and analysis, Business Insights offers expert information on the pressing cargo and supply chain issues of the day through feature articles and a blog offering updates on cargo trends, topics and breaking news.
     American Airlines Cargo relies on its executive experts and a stable of leading industry thinkers to populate Business Insights with opportunities and analysis on issues impacting the cargo industry.
     To learn more and read about the latest market and industry opportunities visit AirCargoInsights.com.
FT readers can also keep up to date with Business Insights by following @AACargo on Twitter.


Is EADS bid to build 197 tankers worth the $35 billion for the U.S. Air Force if they only end up as a couple (albeit collectible) plastic models like this one?

     Boeing has won what could be a $35 billion dollar military contract to build 197 USAF tankers; this, after EADS thought they had that deal sewed up.
     Some people we spoke with held the view that anybody who thinks the ancient B767 even compares to the A330 has rocks in their head.
     Now Boeing is touting all the U.S. jobs (50,000) that will be added, but EADS had projected about the same amount in the U.S.A.–mostly in the southern part of the country.
     Robert Livingston, founder of the Livingston Group who represents EADS, told Bloomberg News:
     “Now the lawyers will have to check this deal out,” implying that EADS is not planning to roll over quietly.      This was a contract they thought had concluded in their favor in 2008, before Boeing protested, screaming bloody murder and spending millions to lobby up and down the halls of government in Washington.
     “Politics favored Boeing all along,” said Peter Cook of Bloomberg.
     “They made the ‘All American’ bid.
     “There will be a challenge to this decision.”
     Undoubtedly, USAF will be happy for all of this to end and have someone build new tankers.
     Current KC135s (B707s) have been in use since Dwight Eisenhower was U.S. President.
     For Boeing, which cannot seem to get a new airplane right, the B767 production line, which is down to about 60 orders, is getting a boost and morale at the company gets a lift.
     Recent attempts to field new aircraft, including rehashed entries like B747 passenger and cargo aircraft, are behind schedule and the aircraft the company needs to stay in the commercial airplane business—the B787—is now a pitiful three years behind schedule.


Turkish Goes LAX-IST

     As the industry counts down to World Cargo Symposium, held March 8-10 At The Hilton Istanbul, Turkish Airlines makes left side USA connections easy by going nonstop from Los Angeles International Airport to Ataturk Istanbul, Turkey four times weekly beginning this Thursday March 3, 2011 via Boeing 777-300ERs.
     "I am very proud that Turkish Airlines has chosen LAX as its U.S. West Coast gateway," declared Los Angeles Mayor, Antonio Villaraigosa.
     "The nonstop route between LAX and Istanbul will strengthen business, tourism and cultural ties with one of the most desirable cities in Eurasia, while providing improved connecting service to more European, Asian, African and Middle Eastern destinations,” Mayor Antonio said.
     "This route will open new doors for travel between Los Angeles, Istanbul, and the rest of the world,” said Fatma Yuceler, Turkish Airlines' director for the U.S. west coast.
     Los Angeles is Turkish Airlines' fifth North American gateway, adding to New York, Chicago, Washington, and Toronto.
     Works for us.



RE: Danita Knockout In Nairobi

Hello Geoffrey,

     This statement appeared in yesterday’s Flying Typers story “Danita Knockout in Nairobi”:
     “Delta is currently the only U.S.-based carrier with operations to the continent and we feel this gives us a huge jump on our U.S. domestic-based competition.”
     In the interest of accuracy, please note that, since last summer, United has operated wide body service from Washington Dulles to Accra, Ghana with continuing service to Lagos, Nigeria. United Cargo has operated cargo service to and from ACC since our flights began and we plan to begin cargo service in LOS soon.
     Thanks and regards,

Michael J. Kelly
Cargo Communications
United Airlines

Dear Michael,

     Thanks for writing.
     Appreciate the opportunity to be helpful and set the record straight.
     Look forward to United Cargo LOS IN Africa later this year!


RE: CNS Mini Packs Big Wallop

Dear Geoffrey,

    I would like to thank Flying Typers for their coverage of our CNS “Need to Know” Mini-Conference held recently near Washington. I would also like to thank those that offered encouraging comments about the conference and hope that we can offer more of our “Need to Know’’ events in the future. Mike White, CNS Assistant Director of Cargo Standards and the CNS Team have brought together an important number of individuals that were key to the events success.
     The air cargo business is a challenging world with security, customs and compliance issues that many people behind the scene in our industry face every day. The complexity of moving air cargo only seems to grow with the increase regulations around the world.
      Our CNS Partnership Conference is an important event, but we will also focus on worthwhile venues that will educate and assist people in the air cargo supply chain to help keep the cargo flying. Maybe someday we can even put together the air cargo acronym dictionary ?
      Thanks again to all those that presented and attended and we look forward to continuing this important outreach to our air cargo community.

Michael Vorwerk


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