Vol. 11 No. 17                                                                                                                Friday February 24, 2012

     Air Cargo Germany, based in Frankfurt am Main, one of the most organized, pioneer industry groups in the world, kicked off its 2012 monthly meetings (January) with a look ahead delivered by industry expert Dirk Steiger, President of Aviainform, a consulting company that works for several air cargo companies in Europe.
     Mr. Steiger outlined a view to what’s new and next as this year unfolds.
     The performance and extreme volatility of global markets in 2011 were specific examples of increasing irrationality when comparing various stock, bond, currency, and derivate market volumes to global GDP. The latter was cited as 80 billion USD, whereas the US GDP alone was 14.58 trillion USD in 2010, but the point was to illustrate the out-of-kilter ratio of financial markets vis-à-vis real production.
     Dirk Steiger also touched on the issue of national debt, which is now a daily fact of life having risen at alarming levels in the industrialized world; Japan and Greece lead the over 100 percent of GDP league, the U.S., Ireland and Portugal are just a fraction below the 100 percent high water mark, followed by Austria and Germany at 10 percentage points lower, and lonely Sweden stands as the only country at 40 percent—the shining star.
     For aviation, Mr. Steiger noted that the strong, ongoing fluctuations in oil prices and the accompanying fuel surcharges were at record levels through the last three quarters of 2011.
     Speaking to the Frankfurt air cargo community, which is now in the unaccustomed role of living with a night ban on flights, Dirk Steiger also pointed out that the only two German airports left without a night curfew were CGN and HHN.
     Other major gateways living under the ban now include FRA, MUC, DUS, BBI, HAM and LEJ with various degrees of restrictions, Dirk Steiger said.
     But as he pointed out, there are no such flight bans at AMS, BRU, or CDG, nor are there signs of citizen rage over airport noise.
     Looking ahead at what has already become a hot button topic this year, Dirk Steiger posed the question of whether there is a future for all-cargo airlines with the recent trials of Cargoitalia and Jade in the news.
     While discussing the subject in some detail, several key sources for information were listed, including Airbus, Boeing, and IATA. Detailed charts referenced these sources expressed in FTK.
     Thinking about it is intriguing, because, indeed, load factors and FTK are usually present in the big scheme of revenue management, yet profitability and CRM-based measurements are far more meaningful and critical to a carrier’s bottom line.
     As an example, a flight with 100 percent load factor up to maximum takeoff weight is neither a guarantee nor an indication of the revenue picture.
     In fact, a lower load factor with the highest yielding cargo is far more profitable.
     Better yield also contributes to burning less fuel.
     In 2012, just look at the number of airlines that have instituted global account management whereby a large multinational customer is seen by the value of its total contribution rather than strictly O/D (origin/destination).
     Otherwise the Avianinform freight market outlook went all the way out to 2036, with some rather sharp swings in most global markets projected for certain commodities during the period 2025-2027.
     How much that reveals about how 2012 will turn out is anybody’s guess.
     Recent conversations with a few cargo chiefs that FlyingTypers has conducted converged on this year’s promise and how to keep results at no worse than 2011.
     The size of the cargo pie is finite; the battle is for how to win, maintain and grow one’s share of it.
Ted Braun

Dogs Howl At Rate Hike
     Is this simply a case of a viral Internet overreaction?
     The newspaper USA Today reported that United/Continental Airlines is telling some military families that they can no longer check their dogs as luggage; as of March 3, pets must ride as part of the carrier’s PetSafe Cargo program.
     The story really got legs when USA Today reported that in some cases (for example, Japan, where mandated law demands hefty charges to move pets as cargo), that may translate into costs from about $250 to $1,400 per pet.
     Right now the issue has gone viral, with online petitions to get the policy change reversed flying fast and furious on the net.

     "Everyone is talking about it and stressing out over the impending changes," said Jessica Simmons, a Marine pilot's wife based in Okinawa, Japan, to USA Today.
     Simmons says she was able to check the family's cocker spaniel, Zeke, for $130 when they moved to Japan in 2008.
     She's now told it will cost "a minimum of $1,400" to send him home as cargo.
     "I am fearful that those who cannot afford these new prices will leave their pets behind," she lamented.
     “Our wonderful military families are concerned, but we are committed to taking care of them. They are very important to us,” Lisa Schoppa, PetSafe Product Development Manager, United Airlines, told Air Cargo News FlyingTypers.
     Our readers may recall that Lisa is also an outstanding “Woman in Air Cargo,” as featured here in FlyingTypers’ exclusive series.
     Lisa Schoppa also gives back quite a bit to everyone who handles animals in air cargo and transportation, and is a driving force at industry organizations and meetings where she actively advances animal transport practices.
     Here United–Continental addresses the military directly:
     “As a result of the recent constructive feedback about our PetSafe product, we more fully understand the impact of our implementation of this product on military families. Certain countries require the use of a third-party agent, which could create a financial burden for military families. This was never our intention.
     “After reading many emails and Facebook posts, we evaluated our policies and developed a special process for military families travelling on Permanent Change of Station (PCS) or Orders only. This process allows them to transport their four-legged family members using the PetSafe program without the need for a third-party agent. In addition, these customers will have peace of mind knowing their pets will enjoy the industry-leading, award-winning PetSafe product.”
     The PetSafe product includes:
     •  A dedicated 24-hour Live Animal Desk
     •  United employees worldwide who have completed a USDA-approved, customized live animal-handling course
     •  Enhanced tracking and tracing capabilities.
     •  Dedicated PetSafe handling teams in all airport hubs
     •  Weather and proactive shipment monitoring
     •  More climate-controlled vans than any other carrier
     •  Pet hotels onsite at our hubs in Newark, Houston and coming soon to Chicago
     The special process applies to military customers accompanying pets that weigh up to 99.9lbs., travelling internationally on PCS or Orders.
     Customers must contact United Cargo to make an advance PetSafe reservation.
Should our dog Chips stay at home? We sent the photo to Lisa, who responded right away:
“I think I can hear him saying, ‘Don't leave me behind...I want to go on vacation too!’”
Lisa is a pet care person we can all trust.


     After only eighteen months since it opened a cargo-only operation (and possibly due in part to the recent buoyancy of world financial markets), in March 2012 Al Maktoum International Airport at Dubai World Central (DWC) will add Saudi Airlines Cargo with thrice-weekly, direct capacity B747 freighter flights from Europe (BRU 2X /AMS 1X).
     Peter Scholten, Vice President Cargo, Saudi Airlines Cargo Company said:
     “We are extremely excited to be partnering with the world’s largest forwarder, DHL Global Forwarding, as we add services to the new Dubai (DWC) Airport from Europe.
     “The DHL arrangement will help us to further expand our activities in the UAE, where we already operate scheduled B747 freighters from Sharjah to Lagos and N'djamena, in addition to 75 weekly passenger flights to Saudi Arabia.”
     Paul Griffiths, Chief Executive Officer of Dubai Airports, notes that DWC as a “cargo-only airport” at this point has seen throughput almost double during its first 18 months of operation.
     “We opened in June 2010 with an inaugural Emirates B777F flight and currently serve 36 all-cargo carriers here.
     “DWC air cargo has grown by almost ten times, from about 795 tons a month our first year to about 7,500 tons a month in 2011, with last December’s business recording just under 10,000 tons of throughput.”



RE: Striking Runway Deal

Dear Geoffrey,

     Please do not call those people who are presently on a devastating strike at FRA "ground workers."
     It's not the "ground workers," it's only the very small group of "ramp controllers" of Fraport's "Ramp Control" or "Apron Control," which control the movements on the ground outside the four runways.

Best regards,
Thomas Stünke

Dear Thomas,

Thanks for writing.
We stand corrected, and appreciate the clarification.

Best greetings,

Thomas served 24 years at Swissair Cargo in every facet of the business, including as a cargo instructor and specialist for dangerous goods and in house EDP Systems, working in Düsseldorf, Berlin, Frankfurt, and elsewhere in Germany.
Prior to Swissair he saw service in the German Air Force.
Today Thomas is managing partner of InAvia Management Consultants GmbH.

Hi Geoff,

     Just wanted to drop you a quick line to say hello.
     I sure miss all of the "good guys" in the air cargo industry, and of course you are one of them.
     I am enjoying retirement however.
     We had lunch in Sarasota, FL, last week with Buz and Bert Whalen.
     It's always good getting together and talking about the good old days.
     I'm looking at two of your books right here in front of me in my office. Great Airports-Worldwide and Great Airports-Kennedy International.
     Very well done and thanks again.
     You have a lot of talent and I always enjoyed seeing you throughout the years.
     I hope all is well with you.

Best Regards,
Bruce Tonn

Remembering just doesn’t get any better than reaching back and telling a couple of old air cargo pioneers about what’s happening now.
Fernando Tavera, (right) rode the oil boom of the 1970s, directing the USA cargo fortunes of VIASA Venezuela, while Eugene T. (Buz) Whalen (left) wrote a sterling chapter in the history of U.S. air cargo as top sales and marketing guy at Japan Airlines.
Kind of feels good to report that these guys are OK and always great to see their names in the news one more time.


Dear Bruce,

     Talk about a blast from the past.
     Just one letter, and I am recalling memories of Eugene “Buz” Whalen, who was instrumental in building Japan Airlines Cargo, CNS and TIACA during the 1970s & ‘80s, and Bruce Tonn, who succeeded Ed George as top cargo executive at Los Angeles-based Western Airlines and then, when Delta Airlines bought Western in 1986, moved east as Director Cargo Sales & Marketing at Delta, only retiring in 2001 after 37 years serving both carriers. Bruce, always a nice guy, is the only air cargo executive that we know of, whether at home with family or at work in air cargo, always thinks in tonns.
     So glad to hear that you (all) are well and enjoying life… but when you guys get together, somebody should take notes.
     Hope to see you in Atlanta at TIACA this October.
     Maybe we could all look back (and ahead) together?

Best good wishes,

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      In the summer of 2006, my brother was performing in Mother Courage in NYC with Meryl Streep, Kevin Kline, and Austin Pendleton, directed by George C. Wolfe.
     Because he often likes to create personal pieces that further explore the works he inhabits (like his Body of Proof musical and his Trust Me taglines), he of course created one around Mother Courage. It's one of my all-time favorites, and I'm so happy Meryl Streep gave the go-ahead to release.
     That's right; Meryl Streep is in it… and Kevin Kline.
     I'll let Geoff explain the rest.

     "This video was conceived and directed by Fred Weller and myself during the summer of 2006, while we were playing brothers in the Public Theater's production of "Mother Courage and Her Children," at the Delacorte Theater in NYC. We showed this video on opening night, immediately after the curtain dropped and then it was never seen again. Until now, that is.
     While watching, you must understand that this was one giant inside joke. It was made for the cast and crew, so the comedy refers to things that happened while preparing and performing the play. Many of the impersonations are of actual cast members. Also Christopher Walken WAS a part of the show for three days, before he dropped out. That sequence imagining the last moments of that collaboration uses several actors to portray George Wolfe, the director.
     On a personal note, this was one of the greatest and terrifying summers of my life. Every day for two months, I got to work and play with a cast and crew brimming with insane brilliance. It was summer camp on steroids; not only did I make friends that I'll keep for the rest of my life, but I learned more about performance in one summer than I did in four years of conservatory training. This video would not have been possible without the support of everyone involved in the production, though I must single out the generous genius George Wolfe and the indefatigably kind Meryl Streep for playing along. Without those two, none of this would have ever happened.
     I hope you enjoy it!
Geoffrey Arend"

     We release this to you now as a kiss good luck to the Iron Lady as she prepares for the Academy Awards this coming Sunday. Everyone in the Arend clan will be rooting for her, and we hope you will too. Courage, Mother! Although we all know she won’t need it . . .
Flossie Arend

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