Vol. 11 No. 35                            #INTHEAIREVERYWHERE                              Friday April 19, 2013


     In an unexpected move, Air Cargo Germany has interrupted operations as of Thursday afternoon.
     Two of their freighters (presumably flights 6U 3141 and 6U 3232 both bound for the U.S.) were offloaded shortly before planned departure at Frankfurt - Rhein Main Airport.
     Sources familiar with the issue have speculated that the German Civil Aviation Authority, the LBA, may have revoked ACG's Operator Certificate.
     Although ACG's homepage speaks of "temporary interruptions," it is unclear if and when operations might be resumed.
     Reportedly, ACG is in dire financial troubles, not having declared any profit since beginning operations in 2008.
     In April 2012, Russian cargo group Volga-Dnepr (VI) completed the acquisition of Frankfurt Hahn-based Air Cargo Germany (6U) for a 49% stake. At FRA, ABC AirBridge Cargo, subsidiary of Volga Dnepr Group is the second largest operator after German flag carrier Lufthansa.
     There is also speculation that Lufthansa has questioned the cash influx from ABC to ACG because of ACG allegedly not meeting the requirements for European Community based ownership.
     The cooperation of ACG and ABC is a challenge to Lufthansa's most profitable North Atlantic business to the U.S. since ABC also has U.S. traffic rights from Germany.
     However, at presstime, there is no confirmation from the German LBA regarding the revocation of ACG’s operating certificate.
Jens



     According to IATA, “the Air Waybill (AWB) is the most important transportation document in air cargo.
     “The electronic Air Waybill (e-AWB) is the first step to realize the e-freight vision.
     “The e-AWB project replaces the paper AWB with an electronic contract of carriage between the freight forwarder and the airline.”
     With the multilateral agreement that allows a forwarder to enter into the e-AWB regime, with multiple carriers passed at the recent Cargo Services Conference in Doha, on the face of it, all systems are go.
     The devil, it is said, is in the details; by definition, the electronic equivalent of the air waybill is the FWB message.
     IATA has declared the sunsetting of the Cargo-IMP standard, and going forward it will only support the XML versions of cargo messages.
     Progress is good.
     What is unclear, despite a few decades of established Cargo-IMP message exchanges, is how they are implemented procedurally across the industry.
     The entire forwarder to carrier process starts with an FWB message being sent by the forwarder.
     The timeline is very important, especially with the ACAS (air cargo advanced screening) pilot nearing rulemaking status soon. Although the standard is very detailed, the procedures regarding when the FWB is to be sent and whether more than one FWB can be sent and how carriers will treat it is what remains unclear.
     FlyingTypers asked an IT-solutions provider how they see it and according to HERMES Logistics Technologies’ Clare Biddle, Marketing Consultant:
     "Our philosophy at Hermes is that a Cargo Management System should be flexible and smart enough to allow a customer to determine how they would like to process FWB messages for a specific airline.
     “Therefore, HERMES supports both the ability to send an FWB message once and block subsequent messages, or to send an FWB message only once.
     “When receiving an FWB, HERMES takes into account the status of the AWB (Confirmed by OPS or not) and updates/amends the AWB record based on the data received in subsequent messages.
     “HERMES' experience suggests that in many countries (not all—for example, Australia has an outstanding quality of FWB data) the use of the FWB message as source data without a physical copy of the AWB is still seen as a real worry for the industry, as a great deal of time and effort is spent checking and amending FWB message data against physical documents as they very often do not match.
     “One promise of e-AWB is that the data quality will greatly improve, but based on current FWB data this does not seem to be guaranteed."
     For a carrier perspective, FlyingTypers conferred with Jean-Yves Cap (left) with Air France/KLM/Martinair Cargo in Atlanta, its Americas headquarters.
     “As far as AF/KLM, we accept multiple FWBs and accept the latest.”
     Hans Korbijn from global HQ elaborated: “the customer is king.
     “Whenever a customer wants to send us some information about his shipment, we welcome this information with open arms, especially via e channels.
     “This also applies to updates; we realize air freight specifications can change in a blink; however, the sooner we get the first FWB, the better.
     “We encourage accuracy; the more dimensions and specifications are in, the better.
     “After RCS [freight status message FSA/FSU - freight received by carrier], we want to close the messaging traffic as we have formally frozen the situation, so the last FWB is the one we keep as a reference and contract.”
     Just entering into e-AWB agreements among forwarders and carriers will not begin to address nor resolve the landmines hidden behind the lack of industry uniformity in how the FWB is treated and handled.
     To the contrary, it may make some problems worse and create new ones. Information about a shipment with a given origin/destination and weight may change between the time the FWB is sent and the time the shipment is delivered at the airport. These changes can impact the charges for the shipment and as the two opinions quoted reflect, such changes will be handled differently.
     When it becomes necessary to correct the charges because of changed shipment characteristics, the carrier issues a CCA (charges correction advise), which is also sent to CASS (cargo agent settlement system).
     Rather than eliminating the need for multiple FWB by enforcing a clear acceptance procedure, or adopting FWB update procedures, the problems are simply pushed from the front end to the back end, to be dealt with by accounting after the fact. Disputes over charges are not exactly unheard of and not tackling the FWB procedures stands to potentially increase the cost of processing shipments by shifting the resolution post-carriage.
     It is fair to say that having a single, reliable, accurate, and timely FWB in the first place could resolve this matter and help fulfill the e-AWB promise.
Ted Braun



n Wednesday in Dallas, Texas, Bill Boesch and Philip Wei were inducted into TIACA’s Hall Of Fame.
Here we salute both gentlemen as this special evening unfolded and these two gentlemen were finally recognized for their stellar and inspirational careers serving the air cargo industry.



     Bill Boesch is one of the greatest of all the big-time global air cargo executives.
     What’s more, he did it all working in various top management positions: at a scheduled all-cargo carrier, a freight forwarder, the largest carrier of cargo and mail in the world, the biggest USA combination carrier, and finally, in retirement, coming back to save thousands of lives by engineering ground support convoys to carry cargo in and out of battlefronts during the terrible Iraq and Afghanistan War.
     Bill Boesch was raised in Queens, New York, near Idlewild Airport (today JFK), and later lived in Long Island, New York.
     In 1965 he went out to IDL that had just been renamed John F. Kennedy International Airport, looking for a job at all-cargo Seaboard World Airlines.
     Growing up near the big airport, Bill could often see from his home the aircraft of the world coming and going.
At TIACA Hall of Fame, Bill shares a moment with daughters Heather and Robin.

 The day and night action sparked Bill’s imagination of destinations newly discovered and places yet unseen.
     At the time Seaboard was operating the major all-cargo resource across the Atlantic Ocean from New York City, while Flying Tigers operated the all-cargo USA flag across the Pacific from Los Angeles.
     Seaboard had built an impressive global headquarters located on JFK airport at Federal Circle, offering both a direct opportunity for employment and the launch pad for what turned out to be Bill’s nearly 50-year odyssey in air cargo.
     During a decade at Seaboard working with people such as the legendary cargo sales and marketing guru John Mahoney, whose theories and application of various cargo methodologies are still in practice today, Bill learned and worked his way up, and by the mid 1970’s was an integral part of the SWA team as they built a pioneering U.S. flag all-cargo carrier that, among other things, launched the first US all-cargo B747freighter flights across the Atlantic.
     Next Bill went to work for Emery Worldwide in 1975.
     Emery recognized talent and promptly put Bill in charge of the Emery International Division, where he served as Senior Vice President and General Manager of Emery in 1985 and Executive Vice President and General Manager in 1987 before leaving the company to become Pan American World Airways’ Senior Vice President of Cargo.
     Bill expanded duties at PAA as Senior Vice President for Passenger Marketing and Cargo Operations at the beginning of 1988, but unfortunately for Pan Am (nearing the end of its run), the game was down rather than up as the “big blue meatball” (as insiders affectionately described the carrier’s logo) disappeared from the skies in 1991.
     Bill had landed the job of a lifetime, going to work for Bob Crandall as American Airlines’ Vice-President of Cargo.
     He became President and CEO of the Cargo Division in 1991 and Chairman of the Cargo Division in 1996.
     Under Bill’s direction American became a world leader in the air cargo and logistics business, with annual revenues of over a billion dollars.
     Bill retired from AA in 1996 and was saluted by dignitaries from every part of the aviation and airline business including Mr. Crandall, Southwest Airlines founder Herb Kelleher, and many others.
     Unable to sit still for long, Bill moved back into the fray in 2004 as CEO of DHL/DP Global Mail.
     He is credited with leading DHL/DP Global out of its financial difficulties and also leading the way toward integration with Smartmail.
     He directed the movement of both companies’ corporate headquarters and was a principal player in the branding change to DHL Global Mail.
     But just when he was putting the final touches on a career that left him with many choices for a luxury retirement, Bill Boesch confounded logic and, some might say, reason, by standing up and answering the call of his country.
     Bill went to work, carrying a rifle and wearing body armor, on the ground at the height of the Iraq and Afghanistan conflict; his goal was to mastermind a plan that took soldiers out of harm’s way.
     What Bill Boesch did is epic in both military and transportation history.
     Realizing that long streams of truck convoys were constantly needed to supply troops, but that the roads traveled were hostile, Bill took thousands of soldiers out of the driver’s seat: with an armed escort at his side, Bill went into the towns and villages and negotiated with local Sheiks and other community leaders to hire local labor to drive the trucks.
     In one fell swoop, Bill took the troops out of harm’s way, provided jobs in areas where local unemployment was running above 60 percent, and delivered the goods on time. All of this is best described by Four Star General of the United States Air Force Raymond E. Johns Jr., who serves as Commander, Air Mobility Command, Scott Air Force Base in Illinois USA:
     “Bill did the hard, dirty, dangerous work necessary to establish effective relationships with tribal leaders and then devised a working transportation system that reliably supplied distant outposts.
     “The most compelling point, in my view, is that Bill quietly did all this while saving taxpayer dollars and the lives of U.S. service members.”


     Today it has become commonplace in the global air cargo business to recall colleagues who have distinguished themselves in various aspects of service to our industry. So when it comes to the development and implementation of the Asian transportation industry, TIACA has truly found a Wei: Philip Hsing-Hsiung Wei who, as a true pioneer of the form, can be described as:
     “Present at the creation,” “empire builder, “regular good guy and friend.” Phillip is a decent, humble, easily approachable man who has moved beyond air cargo to the absolute pinnacle of China Airlines, serving twice as the CEO.
     Philip graduated from the National Tainan Normal College and served three years as a primary school teacher.
     But when the opportunity to join Taiwan’s great international airline came along, Phillip packed away the chalk and erasers and set off on what would be an epoch journey of discovery, accomplishment, and self-fulfillment.
     Philip joined China Airlines in 1971 as a tax researcher in the Accounting Division.
     Phillip quickly realized the outstanding opportunities apparent, as the tiny island of Taiwan had hitched a major portion of its business destiny to international trade, and that meant air cargo.
     We first met Phillip in 1982. He was based in Los Angeles at LAX, operating sales and marketing out of a notoriously antique building that once served the Pan Am Cargo Clippers during the reciprocating piston engine aircraft days.
     “But watch us,” Phillip told us in a story we reported in Air Cargo News that year; he was serving as General Manager of Cargo Sales & Services North America.
     “We are going to build state of the art cargo facilities and grow our carrier into a global resource via our hub at CKS,” he said.
     Later Philip moved on and up at CAL as Vice President of Europe; Vice President of the Passenger Sales Division and the Finance Division; and Vice President for the Americas.
     In the meantime, China Airlines Cargo built its mighty freighter fleet and a string of advanced, beautiful air cargo terminals in the USA and around the world.
     At that point Mr.Wei returned to Taiwan, where he shepherded introduction of the high-yield Dynasty Package Program before ascending to top management of the entire airline.
     In 2002 Phillip caught lightning in a bottle; he became President and Board Director of CAL; for those that knew his brilliance, dedication, and drive, the move seemed a natural one.
     In 2005, Mr. Wei became Chairman of CAL and served as the Chairman and Board Director of CAL until 2012.

Old friends—FlyingTypers Publisher Geoffrey Arend catches up with Philip Wei at TIACA Hall of Fame Dinner.


     Today, Philip has returned where it all began: in education. He shares his extensive knowledge gathered during a lifetime love affair with air cargo by teaching the transportation arts as Professor of Air Transportation of Kai Nai University in Taiwan.
     It is one thing to be remembered fondly by the captains of industry and the TIACA organization.
     It is quite again another to sit down and have a talk with someone who knew and worked for Phillip H.H. Wei during the start up years for China Airlines Cargo in USA during the early 1980s.
     Brendan Furlong, who today is Business Development Manager for Emirates Sky Cargo, began his career as a Sales Rep. for China Airlines Cargo based in New York.
     “Phillip established air cargo for China Airlines in the USA,” Brendan recalled.
     “He is very smart—a finance guy who also happens to be a wonderful human being and a critical asset to the airline when times were tough.
     “The thing we all loved about Phillip is that he treated both our customers and every single one of the employees of China Airlines Cargo with tenderness and respect.
     “Also Phillip recognized abilities and moved people up to better jobs based on performance.
     “At one point Philip left the airline but was brought back when things got tough.
     “ I remember that when we made customer calls together we would often treat the account to dinner.
     “But the one thing Phillip always insisted on doing was going out to a White Castle fast food restaurant for a fish sandwich.
     “To this day, every time I take my kids to a White Castle I think of Phillip.
     “He truly deserves the TIACA and air cargo industry recognition,” Brendan Furlong said.
     “I owe so much to the air cargo business,” Phillip Wei says.
     “We must share what we know about what we have loved to the next generation, and mentor and bring forward the people who will keep building our industry.
     “So now I can enjoy being at home in Taiwan, hiking in the hills above Taipei, and listening to my music, and above all of that, being close to home as a husband and as a father to three daughters and grandparent to three grandsons and three granddaughters,” Phillip H.H. Wei concluded.
Geoffrey/Flossie


     Deep in the heart of Texas you’ll find Oliver Evans, Chief Cargo Officer Swiss WorldCargo (L), and Ram Menen, DSVP Emirates SkyCargo (R). The International Air Cargo Association (TIACA) Annual General Meeting (AGM) was held in Dallas this week, and the organization said goodbye to Ram, who retires in June, and hello to Oliver, who accepts his new duties as Chairman of TIACA for a two-year term, beginning today.
     Last October in Atlanta TIACA announced a cooperation agreement with ICAO that appears to be getting down to business.
     On the closing day of the TIACA AGM, the two parties said that they will “work more closely on air cargo and mail security and facilitation.” Stay tuned.





     In Düsseldorf, where an actual mustard factory is located right near the airport (Lion Brand), “it’s about providing a key connection that allows for early AM distribution from Düsseldorf,” said Matt Maynard, new spokesman for American Airlines Cargo, as AA launched daily B767 nonstop service from Chicago.
     “AA Cargo knows that today it’s all about more shipping options, so the ability to deliver first in the morning Expedite and Expedite TC services can dramatically impact pharmaceutical products, medical instruments, and automotive and aircraft parts between the two countries, while offering quick thru connections to nearby Belgium, Luxemburg, and the Netherlands, as well as interline connections to the Middle East.”
     Mr. Maynard also said that American Airlines Cargo “has expanded its German sales team to provide local customer support for the Düsseldorf area.
     “DUS Cargo Logistics has been appointed as the carrier’s handling agent in Düsseldorf,” said Mr. Maynard.
     "The addition of this new flight is a great boost to our operations here," said Egon Wedde, American’s Regional Cargo Sales Manager.
     "Chicago is an important hub in the airline's network, and it's a major selling point that we are now able to offer direct service to customers out of Germany."
Geoffrey



     The recent announcement of restructuring at IATA has been positioned as increased focus on regional services, and it seems to be a combination of the old and some new. With the cargo hat on, the biggest change is the establishment of a new division headed by Thomas Windmuller, an old IATA hand, as shown below:


Source: IATA

     That means Des Vertannes, Global Head of Cargo, will now report to Tom instead of Aleks Popovich. On the face of it, having passenger, cargo, and airport services in one division together with security and ground handling makes sense and could yield benefits going forward. It appears that CASS would be outside this division, in FDS (financial distribution services).
     With the appointment of former Atlanta airport aviation development manager Warren Jones (see below) to head CNS, effective April 24 (a position previously held by Michael Vorwerk who returned to FRA and Lufthansa Cargo last summer), there is quite a bit of change coming to the world of cargo.
Ted Braun


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RE: TAP Fluent At Big Show

Dear Geoffrey,

     Many thanks for the exceptional relevance given to TAP presence in Intermodal.
     We appreciated it a lot.
     Please note that our weekly capacity to Brazil is 2,000 ton, and not kg.
     But this doesn’t really affect the overall message to the market that was very good.
     Good job and thanks a lot,

Best regards,
José
José Anjos
VP TAP-Cargo

RE: Air Cargo Roundtable
Pictured at an industry trade show are left to right—Buz Whalen, Japan Airlines and Fernando Tavera, VIASA.

Hola Geoffrey:

     I have just seen a picture of the first Air Cargo News Roundtable that you published again after 35 years, and must say congratulations to you as FlyingTypers in 2013 carries on the great tradition you began with Air Cargo News in 1975.
     I am in touch with Isaac and we always speak highly of you and the way you helped us and everyone in this business in the development of the modern air cargo industry.
     I am now living in Raleigh, NC, close to the grandchildren and with the best of memories of those great thirty years at JFK .
     Amigo, please receive my fondest greetings and regards,

Fernando
Fernando Tavera
Cargo Manager Americas
(Retired)
VIASA

Congratulations, Geoffrey, on 38 years, but it only seems like yesterday!
You have done a great job over the years keeping us cargo guys informed.
Thank you from all of us!"

Walter T. Atkinson, CSCP, CPSM, CPSD, C.P.M. (President, Rada International, Inc.)


Hey Walt,

     You were first our friend when you were top executive at CO Cargo based in Houston, prior to Jack Boisen’s era.
     (Ever hear from Frank Sclafani?)
     I think the last time we spoke you were pushing back in the left seat aboard Bill Spohrer’s B707F (Challenge Air), one of the last of its kind to operate out of MIA from the old MIAD WW II “Corrosion Corner,” which we all loved for its variety of romantic, reciprocating piston engine aircraft, many of which are still flying—C46s, DC7s, Lockheed Constellations, and others.
     Today that beautiful spot has disappeared from this dimension, replaced by some drab, giant reefer masquerading as the UPS Terminal at MIA Cargo.
     Hope you write again and tell us about Rada.
     To me, RADA is where Geoffrey II, my son, studied Shakespeare in London (Royal Academy of Dramatic Arts).
     Bet you have another take.

All good wishes and keep ‘em flying.
Geoffrey


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