Vol. 10  No. 31                    WORLD'S MOST LOVED AIR CARGO PUBLICATION SINCE 2001              Wednesday March 30, 2011

 

Here Comes Say Hey Ray

      The writer Jimmy Cannon once quoted the great baseball player Willy Mays as saying:
      “You see a guy you want to talk to, you say, 'Hey, man. Say hey, man.’”
      From that point forward, the greatest player of his era was known as “The Say Hey Kid.”
      Likewise, Delta Air Cargo’s Director of Sales, Ray Curtis, whom we first met at the Boston Seafood Show, first addressed us:
      “Say Hey, would you take a picture of me and my team (at the time Ray was the JFK sales boss for United) for the Air Cargo News?”
      Since that time, when we also had maybe the best all day meal on the hoof, grazing around the Hynes Arena, every time we meet, somewhere in my mind comes the thought:
      “There goes Say Hey Ray.”
      Today as before, Say Hey Ray Curtis comes across as a most engaging interlocutor and time flies fast in his company. It’s easy to see how one can be lulled into a comfortable, easy-going web of seduction, but make no mistake – behind those glasses sparkles a pair of twinkling, alert, intelligent, sharp blue eyes – always ready to dazzle with quick wit and a smile.
      Ray loves what he does, that much is clear. He thinks he has a dream job; guidance from Neel Shah, Sr. VP and Chief Cargo Officer, but also a free hand to run Delta Cargo sales the way he thinks best to bring good results for the company. The foundation of this success is having a well-defined vision and credibility and connectivity with the customers based on developed relationships and ongoing dialogue, and the strategy to deliver. It sounds beguilingly simple and straightforward – and it seems to work.
      One specific example is Delta Cargo generating 15 percent more revenue from Japan in 2010—without freighters or a significant movement in fuel—than before with freighters and passenger aircraft.
      Unlike other top cargo executives, Ray didn’t come from the “passenger side” or technical operations; he started his cargo career at JFK with Capitol Airlines, a charter airline founded by army pilots. This was followed by 10 years of service with Northwest Airlines, where he became regional sales manager northeast and subsequently spent 13 years at United’s cargo division. United turned out to be a turning point in more than one way, the indelible mark of UA aircraft smashing into the World Trade Center on September 11 and in a field in Pennsylvania being one of them.
      He was director of strategic accounts North America when someone named Neel Shah joined the organization. The rest, as they say, is history and this move marked the beginning of a beautiful friendship and business partnership. Neel says he has the best sales team in cargo, period.
      We all need our tools. Ray says specialized sales management courses taken at the Kellogg School of Management, a world class business school, have been invaluable in shaping his approach and techniques. He laughs when he talks about the period immediately prior to accepting his present job; Delta cargo wasn’t what his friends and colleagues thought would be a smart career move, given where things stood a mere three years ago.
FT:   So what was the magic?
RC:  I looked at what we had and concluded we needed to change the entire business model. While the top 15 accounts contribute 80 percent of the revenue, we treated everyone the same, regardless of the value generated – whether a counter-to-counter Dash [flight specific small express package service] or a shipment coming from a major forwarder.
[Here Ray grabs my notepad and pen and draws the respective inverse pyramids, circles and arrows to illustrate his point]
The first steps were appropriate customer segmentation and customer specific strategy.
FT:   What are you saying to customers when you go for their business?
RC:  What do you need Delta Cargo to do? I need to be the voice of the customer - I have to earn their trust. This also means balancing it with my responsibilities to manage the sales force, 100 in-house and another 100 GSA [general sales agents].
FT:   What is the biggest misunderstanding that people have about Delta Cargo?
RC:  The degree of transformation that has occurred here and will continue to occur. In order to obtain and effectively manage freight from top accounts we had and have to implement and deliver. Take technology—we didn’t have it and it has since been deployed—scanning in the warehouse and CCTV [close circuit TV] to monitor high value cargo. This has added visibility, accountability, reliability and the operational framework to attract and handle such business.
FT:   What are you doing to develop temperature controlled cargo business?
RC:  We have a growing pharma business; when I came to Atlanta, there were no coolers. There are now four and we will be adding two more.
FT:   What is your view on alliances?
RC:  Well, the Joint Venture was an interesting concept, but it no longer suited the time and our strategy. In the U.S., the customer still had to deliver cargo to the various airline warehouses. We have made good progress and have some shared warehouses. Sky Team Cargo works better than ever, but I think cargo alliances are in their infancy. Capital is certainly one critical issue.
FT:   What are you doing when you deal with shippers and forwarders?
RC:  We have “cohesion agreements” with certain customers, which are based on SLA [service level agreement] type shipper/forwarder/airline respective responsibilities.
We have new markets in the Middle East and Eastern Europe where we have to build on relationships despite no prior connections.
FT:   What is the most important thing to Ray Curtis and Delta cargo right now going forward in 2011?
RC:  Stabilizing what we have and developing it further.
FT:   You have been in cargo 30 years; who is the most unforgettable character you met and why?
RC:  Peter Rose of Expeditors, because of his vision and approach to business and how focused he is on execution. He has been successful in taking the Expeditors branding and consistency to the entire organization, whether you are in one of their offices in Asia or in the U.S. Another person is Bob Kmiotek, VP Route Management Transatlantic at DHL Global Forwarding, from whom I learned not to forget the people you work with; cargo in the end is a people business.
FT:   How many days a year do you travel?
RC:  50-60 percent of the time.
FT:   When relaxing, what are your hobbies?
RC:  I have been a ski instructor for many years and still get up to Albany, NY on weekends. Skiing and snowboarding in the winter and surfing in the summer; growing up in New York I used to ride the bus with my surfboard to the beach. My college age daughter is also a ski instructor.
FT:   Would you recommend an air cargo career to your children?
RC:  [probably the longest pause before answering] I have enjoyed a successful career in corporate America. I have encouraged my children to pursue professions that will position them to also follow a career in which they can be independent. My daughter for example is studying to become a speech therapist, something that can be practiced in a corporate environment as well as in private practice.
Ted Braun

   Say Hey Ray, always a team player, is pictured here inside the Hynes Boston Arena, site of the New England Seafood Show. We recall a March many moons ago when we snapped this photo with Say hey and his team at United.    Time marches on. Say Hey is situated at Delta and the Boston Seafood Show swims on.

A Walk Around Delta Cargo
     As this was ‘Delta Cargo Day,’ I had an opportunity to pop in and say hello to Neel Shah who is sitting in his office with Greg Mays, Managing Director – Global Cargo Operations. Neel Shah manages a staff of 1,770 worldwide and reports directly to Ed Bastian, Delta’s president. This was a major change in attitude at the top management levels for cargo; Neel has a seat at the table with direct influence on major decisions when it comes to the fleet and working to achieve total route profitability.
     Utilizing its resources—as Neel puts it—people, technology and operations is the fine line he walks with his team to broker goals among various company divisions. A good example was Valentine’s Day, when the scheduled B757 aircraft to Bogota, Colombia was replaced with a B767 to accommodate the extra loads of flowers, a testament to the fact that cargo’s interests and needs are as vital as those of the passenger business.
     The objective is strategic growth and when asked about freighters, the answer is that he is not closed to that possibility; however, profitability and demand are what need to be attained and managed carefully. Delta Cargo pays its share of flight and incremental expenses in addition to its administrative overhead and operating expenses, including fuel, but does not pay for the belly space per se.
     Another cargo driven decision is the selection of doors on the rear hold of the B777, at additional cost, instead of the standard configuration which is limited to bulk loading cargo and mail.
     When asked what the next ‘big thing’ for Delta cargo will be, Neel responds that it is simply becoming a better company overall. Since 2008, Delta Cargo has insourced cargo handling and managed a massive training program of the new resources. In between it also had to manage and digest the merger with Northwest – never a dull moment for these overachievers!
     Out at North Cargo I meet John Campbell, manager cargo services responsible for domestic operations and trucking. There is a staff of 450 people working in three shifts around the clock at the Atlanta Worldport handling between 1.5 and 2 million pounds of freight a day. The international and domestic warehouses are side by side bonded areas with ‘active haul out’ lanes marked by destination and color coded with red stripes for international and green stripes for domestic. The international warehouse is divided into import and export, which subsequently flows into domestics whether in or outbound, as the case may be. Freight is prepared in containers or on pallets and weighed, labeled and set on dollies ready to be pulled to the flight line.
     Space control is flight based with constant matching of on-hand shipments versus space available on a flight, all closely managed with a dizzying array of mobile devices, handheld scanners and computer terminals. An entire ULD can be built using a handheld scanner.
     There is a designated trucking section with multiple docks for the extensive and John, and his counterparts also manage the ULD stock and its utilization.
     Having insourced the handling after training a significant number of personnel, it is easy to spot grey heads—Delta staff with 20-25 and more years of service and minimal turnover. What made Delta a special airline was the family atmosphere that prevailed and it is also what makes managers like John, who came from the Cincinnati hub with a wealth of experience, effective. Everything is done in a businesslike manner that belies the pressures and challenges airline operations face every day.
     So becoming better overall is a clear objective and this cargo unit is very focused on delivering for its customers.
Ted Braun/Geoffrey

 

U.S. Court Clears Way
For Agility Prosecution

     A U.S. court has ruled against Kuwaiti logistics company Agility, supporting charges that it defrauded the U.S. Army in multibillion-dollar contracts.
     The court said prosecutors correctly served Agility with an indictment in 2009 (reported first exclusively in FlyingTypers) when it accused the company of overcharging the Army over 41 months on $8.5 billion in supply contracts first signed at the start of the Gulf War in 2003.
     "Public Warehousing Company (PWC) has not shown any reason for Agility Holdings to exist other than to conduct PWC's business in the United States," said the ruling by U.S. District Judge Thomas Thrash in a statement issued on Monday.
     "The Government has shown a sufficient interrelationship between PWC and Agility Holdings to hold that service of the summons on Agility Holdings ... was sufficient to effect service on the foreign parent corporation."
     What the ruling means is that a criminal trial can begin.
     Agility said on Tuesday it was "disappointed" with the court's decision, but did not say whether it would appeal.
     "The company continues to believe this case involves a civil contract dispute and should not be a criminal matter," it said.
     "Agility remains committed to trying to resolve the dispute through dialogue with the Justice Department but is prepared to defend itself vigorously if that dialogue is not fruitful."
     U.S. Government filed a civil suit in January in addition to the criminal indictment.
     The case is United States of America v. The Public Warehousing Company, K.S.C., a/k/a Agility, U.S. District Court, Northern District of Georgia, Atlanta Division, No. 1:09-CR-0490-AJB-TWT.

 

Makeover Time For India Airports

     Airport infrastructure in India is going in for major makeovers. While private operators of airports in Delhi, Mumbai, Bengaluru and Hyderabad are planning to enhance capacity and build for the future, the Airports Authority of India is also going ahead with infrastructural changes.
     The focus will be on the Indian air cargo sector. The country’s air cargo grew 25 percent during 2009-10; in the financial year that ended on March 31, 2010, tonnages went up from 552 million tonnes a year to 691 million tonnes.
     In keeping with the projected almost 9 percent growth in the economy, the Delhi International Airport Limited (DIAL) has tied up with international ground handling major Turkey’s Celebi Holdings to upgrade the existing brownfield cargo facilities. The Turkish company was also awarded a contract to build the Cargo Service Centre, which will see the establishment of a greenfield freight unit. DIAL will also ensure the development of supporting the cargo infrastructure and the expansion of the cargo apron at the airport.
     For its part, Celebi will be investing $100 million in its ground handling business in 2012-13. Most of the investments will be spent in acquiring state-of-the-art equipment. Apart from handling cargo at the Delhi airport, the company is looking after ground handling at Delhi and Mumbai airports. It had invested $30.2 million in India until end of 2010.
     Celebi Holdings has spent $35 million on construction at DIAL’s 70,000 square mile cargo facility, which is expected for completion by early next year. Looking at the opportunities that the company hopes to see opening up, it has plans to increase its work force to 10,000 in the coming five years.
     The company’s optimism stems from the fact that the government and ministry of civil aviation are keen to upgrade air cargo infrastructure. The first move came with the establishment of the Working Group on Air Cargo/Express Service Industry. The group was set up under the Civil Aviation Economic Advisory Council, “keeping in view the projected rapid growth in the air freight,” to ensure that the issues related to air cargo/express service industry were addressed.
     Canan Celebioglu Tokgoz, Vice Chairman of Celebi, (above left) was quoted as saying that it was good that India was looking seriously at its cargo infrastructure upgrade. “India exports pharmaceuticals, for instance, in a big way. Lack of facilities will hold up growth,” she said.
Tirthankar Ghosh

 

RE:  Air Cargo Mourns Death Of Bill Frainey

Dear Geoffrey,

     Here are some thoughts on my friend, Bill Frainey.
     In reviewing the comments others in our industry have already provided, some common themes are already obvious.
     Bill was a pro.
     Bill had an extraordinary enthusiasm for promoting the community served by his employer, DFW International Airport.
     Bill was a terrific guy.
     He was a conscientious steward of the airport’s money.
     At trade shows, time not spent manning his both was spent meeting elsewhere with prospective carriers.
     The sole exception I ever observed to Bill’s “business only” approach to trade shows was his glee in finding DFW’s booth near that of Worldwide Flight Services at a TIACA Forum.
     Not to diminish their importance in our industry but Bill’s enthusiasm derived from the knowledge that the best food to be served at the Forum would be at the WFS booth.
     I chuckle even now at recalling how delighted he was.
     Bill really did believe he represented the best airport in the world but then Bill would have thought anyone doing his job should believe the same about their own airport.
     When I organized air cargo panels for both ACI-NA and IATA, I never hesitated to have Bill provide the airports’ perspective because I knew he would give a professional presentation on airport marketing without presenting a sales pitch for DFW.
     Time and again, he validated that trust.
     Some day Bill’s son may research his father and there’s something I would share with him that I’ll share now with your readers.
     Once when I was passing through DFW, Bill and I had planned to meet but when I called, he apologized because his son was having a late start for school and Bill was spending a little extra time with him.
     To say the least, I approved.
     A few members of our industry have asked if anyone is organizing an effort to assist his family. I’ve not yet identified such but will still answer affirmatively.
     If nobody else does it, I will but I believe one of the larger cargo organizations would do it more effectively.
     With justification, our industry does a fine job of honoring its elder statesmen. I believe we will do no less for a man taken from us – more importantly from his young family – far too soon.

Very Best,
Michael Webber
Webber Air Cargo


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Space Shuttle Up Close And Personal

     One of the epoch stories of aviation and an air cargo tale to boot has been the decades of take offs and landings of the NASA Space Shuttle.
     Although we in air cargo do not pay enough attention to the Shuttle—these premier air cargo aircraft that roam the skies out of this world have continually fired the imagination of people all over this planet during their great feats and possibly even greater tragedies.
     But next year Space Shuttle will be no more as the last of these high fliers is retired.
     It is hard to imagine that after Space Shuttle we will live in a world that just quits any further space exploration, and especially human travel.
     So while we celebrate a view behind the scenes of a typical Space Shuttle operation rarely seen by the public, down on the ground FlyingTypers will be searching and preparing a representative up to the minute in depth report about the last Space Shuttle and what is likely to happen next.
     Most of the video with over the top WOW value is silent-except for the fabulous take off so fasten your seat belts and enjoy the ride.
Thanks to Rosie Rosenstein
Geoffrey

 

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