Float Like A Butterfly And Sting Like A Bee
Lufthansa Cargo Roars Back

(Frankfurt Exclusive)—After delivering its worst year in history, Lufthansa cargo January numbers surged 25% to the biggest ever one-month gain as the carrier readied two-moth balled freighters parked in the California desert for return to service.
     The boxer Mohammed Ali used to say that his strategy for victory in boxing was to “float like a butterfly and sting like a bee.”
     We were thinking of the great Ali yesterday in Frankfurt, Germany as Lufthansa Cargo CEO Carsten Spohr jumped into a ring full of reporters and took every question with nary a glove laid on him.
     It was a true heavyweight performance lasting almost three hours as Lufthansa Cargo delivered cringe-worthy numbers, confirming that 2009 was indeed the worst year imaginable with an operating loss of €171 million Euros.
     Carsten spoke in a rapid staccato, raining down blow after blow of facts, figures, plans and a look into the future, including stats indicating that 2009 revenues at Lufthansa Cargo had slumped by almost a third, to around €1.95 billion Euros.
     He also indicated that nobody at the carrier was taking any of the bad news lightly.
     Although by the end of the session he looked only slightly worse for the wear, Mr. Spohr’s message never varied and actually seemed to gain strength as the press encounter continued.
     It is worth noting that in 2010 the Lufthansa air cargo press initiative is absolutely unique amongst all global carriers.
     In Germany, an export powerhouse, the air cargo industry is some kind of high art.
     It is little wonder that in a cargo world of rate versus quality, the word quality repeatedly popped up in Herr Spohr’s comments.
     The event also served to deliver the good news that January Lufthansa Cargo numbers spiked upward at a record rate, although optimism remains cautious after the precipitous slide in 2009.
     Mr. Spohr revealed that two of the four MD11Fs parked in the western USA desert are being refitted with engines and treated for maintenance needed to get them airborne as soon as business confirms a steady pulse.
     But the real standout here, conditions and numbers notwithstanding, is the magnificent fortitude required to stand up and deliver some really bad news in these tough times, all while displaying an enveloping leadership style that refuses to back down or roll over.
     Like my Dad used to say – like all our Dads used to say – when the going gets tough, the tough get going! And it appears Lufthansa is wearing a heavy weight belt.
     It was a bravura performance.
Geoffrey

(Next Monday Air Cargo News FlyingTypers will offer an in depth look at this truly unique session).

Harald Zielinski,
Lufthansa Cargo
Chief Of Security
& Environmental Management

Pegasus Gets leisure

     Turkish carrier Pegasus appoints leisure Cargo as GSA in Germany. leisure brings to the partnership a global network of 275 destinations served by 17 tourist airlines for which it performs total cargo management services.
     Pegasus in turn offers an extensive network in Turkey and Northern Cyprus.
     Pictured in Dusseldorf at leisure cargo headquarters (L) is Pegasus VP Cargo Aydin Alpa who said:
     “This appointment simply makes sense. leisure cargo is getting an outstanding access to the Turkish market – and we in turn – practically – to the world. Our already successfully running cooperation on the passenger side supports this.”
     Also pictured is Dagmar Willeke, Sales Manager at leisure cargo for the Northwest of Germany, Mr. Fikret Yüksel, PEGASUS Director Germany and Switzerland and Ralf Auslaender, Managing Director leisure cargo.

Contact! Talk To Geoffrey

RE: Romancing The ULD

Dear Geoffrey,

      Well done on the ULD issue, you picked the right man to focus on. Urs Wiesendanger of Air Canada is indeed a passionate champion for the cause of this much neglected, yet vital asset.
      The independent Interline ULD User Group (IULDUG) on which Urs serves as Vice Chair, together with the Chairman Dick O'Marra of UPS and Frits Roukens of KLM has done a splendid job in promoting the need for safer and more cost effective ULD Management.
      This group deserves much more attention by all airline managers responsible for ULD stock. As you pointed out, nobody thinks of ULD equipment unless and until they run out of stock or when the civil air authorities make a spot inspection and ground the aircraft because of damaged equipment having been found on board. I have personally witnessed what chaos can quickly follow when that happens, particularly when the equipment is needed for baggage.
      I do need to correct you on one minor point. The IULDUG is in fact an independent group. It is not managed by IATA, IATA only provides administrative support. Although I believe that is about to change too. Any carrier can join this group, ie there is no requirement to be an IATA member.
      I look forward to more stories from the "sharp end" of the business.

Best regards
Peter Walter
CHAMP Cargosystems
Email: peter.walter@champ.aero

Geoffrey...

      I don't believe we've actually met although of course I am quite familiar with your publications, anyway may I compliment you on your excellent write-up on ULD which has been forwarded to me by a number of people.
     One interesting point on the number of ULD suppliers, the ULD technical manual should properly publish a little gravestone icon next to all the ones that have gone out of business.. today the number left standing is more like 16 rather than 60... and that's if you rake in all the peripherals, actual manufacturers of containers and pallets number less than 10 if I'm not mistaken, and that includes one each in both Japan and China who only sell to local customers.
      The sad story is one of overly aggressive airline purchasing practices and commoditisation of ULD that has led to companies throwing in the towel or consolidating with others, a phenomenon that is seen quite widely across the airline supply industry. Unfortunately, with a few exceptions, long-term relationships between suppliers and airlines seem to be a thing of the past, and all too often purchasing decisions are made simply on price, using E auctions and/or last man standing reverse auction techniques!
      Anyway please keep up the good work as far as ULD is concerned its always good to see the subject being put in front of the movers and shakers in the industry !
Regards

Robert Rogers
Nordisk Aviation

Geoff,

      Well done article. I laughed when you said "think fish." Years ago I was sales manager for JAL in Miami and I sold a shipment of shark fins to Japan.
      We had a great working relationship with CO so I originated the trip with them in a CO LD-3. The following week I returned to the CO warehouse and did not feel any love. The place still smelled of shark and the container had to be destroyed.

Eldon Brown


Sirs,

      In your ULD feature I think you have got some of your facts wrong in terms of suppliers of temperature-controlled equipment. Whilst Envirotainer manufacturers and leases temperature controlled ULD's, Unitpool do not.
      You should also have mentioned CSafe - a U.S. based company that has the only FAA and EASA certified electrical temperature-controlled ULD and is the second largest supplier.

Tony Wright
Managing Director
Exelsius - Cold Chain Management Consultancy
e-mail: tony.wright@exelsius.co.uk


We stated that "...some of the key players in the supply end of temperature controlled ULDs...". Indeed, Unitpool isn't a manufacturer, however it manages ULDs, including temperature controlled ones for its customer airlines. Thanks for pointing out CSafe, which we weren't aware of.

Celebrating Mort Arken

     A good friend of ours who lost a tough fight at 83 in 2007, Mort Arken, Squadron Commander for the Skytypers had a small plaque dedicated in his honor for his many years as a friend and neighbor based here at LaGuardia Airport at the Marine Air Terminal.
     For 30 years Mort who operated out of a ground floor office at MAT spent most of his time keeping hope alive for a form of communication almost lost to the modern era.
     As leader of Skytypers, Mort was a honored Veteran of WW11, Korea and Vietnam and then led an intrepid group of pilots who flew around in old piston engine aircraft filling the sky by spelling out messages across the heavens, proving again and again that smoke dreams can come true.

     Mort Arken was a good guy who also happened to be a genuine aviator for the love of it.
     Until 2007, without much fanfare he was simply walking around among us.
     Mort also had an enormous heart and sense of community spirit.
     More times that anybody can count, Mort would saddle up and take off leading his squadron of five 1937 SNJ-2 military trainers (circa WWII, only 11 exist in the world) airborne to deliver a sky typed message for charity or a friend in need.
     So now Mort will be forever remembered at a place he loved, the beautiful Marine Air Terminal at LaGuardia, near a place where his friend and colleague, the former LGA General Manager the late Tim Peirce is also recalled.
     MAT, as the most historic airport terminal anywhere in the world, still in use today as a major passenger terminal serves to remember others as well, such as a much beloved Lady of LGA Elaine Jones.
     Kudos to LGA Kiwanis Club and also the North Beach Club and General Manager Warren Kroeppel for keeping the strong traditions alive at New York’s favorite airport as that gateway celebrates its 70th anniversary.
     Kroeppel is a renaissance manager bringing the community and the busy gateway together in the manner of his predecessors Tim Peirce and Ed Ingraham. wkroeppe@panynj.gov
     Happily the Skytypers continue with Mort’s son Larry Arken who leads Skytypers when not piloting American Airlines jets and can be reached at larry.arken@skytyping.com
     Keep 'em flying Mort.
Geoffrey

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