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    Vol. 13 No. 34                     THE AIR CARGO NEWS THOUGHT LEADER                           Saturday April 19, 2014


Holy Moses Holy Thursday AFKLMP AMS

Jacques Ancher at Press ConferenceChange, as the result of the less than spectacular past couple of business years, is certainly in the wind.
     It may be driven by world economies, or it could be the freighters, or maybe even a paradigm shift of priorities, but AFKLMP cleared the air on many subjects Thursday April 18 in Amsterdam.
     “The Group” summoned the global air cargo press corps for a meet up as Passover and Easter Eve advanced, to deliver a clear and simple message.
     A gauntlet has been thrown down declaring that AFKLMP, partner airline companies flying under separate banners, are in the game together for a solid air cargo future.
     When you think about making a statement of objectives and principles in air cargo, what emerged at this event can also be viewed as a master class for air cargo marketing.
      Not since Jacques Ancher (who interestingly enters the TIACA Hall of Fame exactly one Thursday later on April 24 in Istanbul, Turkey honoring his industry ground breaking leadership at KLM Cargo twenty years ago, pictured (right) at one of his press events) held sway, has a press gathering at AMS been quite this clear and to the point.
Erik Varwijk     What instantly stands out here as takeaway is that whether carried aboard a larger or smaller passenger aircraft or freighters, or via even closer cooperation with partners (including Delta), AFKLMP Cargo armed with specific objectives and goals is driven to not only keep pace with current market trends, but will also lead the way moving ahead.
     “We specifically will return to profitability by 2016,” said Erik Varwijk, (left) Executive Vice President, Air France-KLM-Martinair Cargo.
     “We will achieve positive results as world economies rebound by leveraging our three airline strong culture for air cargo. Our principal focus will be on investing in our offerings and prioritizing getting very close to our customers in every aspect of our business.
     “We are about maximizing cargo contribution to the group by being the customer’s preferred airline and the leading European provider of air cargo services,” he declared.
     “AFKLMP intends to be among the top three airline cargo resources on the planet,” Varwijk added.


Eelco van AschWhat’s Hot

     At this point there is good indication that some of the group’s new programs are working.
     “As example, our new tool to expedite business called “Click & Book” is an instant success.
     “Our customers love it!” Eelco van Asch, Senior Vice President Sales & Distribution declared.
     “Over 100,000 C&B quotes have been offered as the numbers keep growing daily,” van Asch added.


Taking The Temp of Pharma

     “Healthcare is trending upward as a major area of growth in our service offering, with business building above 5% per year,” said Ramon Delima, Vice President, Variation and Industries.
Ramon Delima     “AFKLMP Pharma ambition: grow business 10% every year (Q1: 20% growth), said name (pharma)
“We have been keen on setting the standards for Pharma airfreight solutions:
Pharma Active; Pharma Control 2-8° C; Pharma Control 15-25° C; Pharma 2-25 ° C.”
     Has that paid Off?
     “Currently we hold a 50% market share from North America to Europe (WorldACD).
     “Part of the reason for our position in movement of Pharma emanates from our people of course and also from dedicated operations, sales and product management in our centralized one business unit for Pharma with separate cool storage and specialized active container handling in Schiphol and Paris,” Delima said.
     “What’s more, we are currently investing EUR 25 to insure our continued leadership in this sector by strengthening the cool chain, with new Pharma Control 15-25 °C temperature-controlled facilities in Schiphol and Paris.
     “We are also investing in better cool facilities worldwide, as example in Cairo, Egypt.
     Partnerships are also being developed all up and down the cool chain.
     “Recently we began real-time monitoring of temperature sensitive shipments in partnership with K&N RFID.


Mailing It In

Stephane Bocquet     “As we know, from our online figures—a 5% uptick in international shipments—increasingly are driven by e-commerce, so we are exploring every aspect of growth and opportunity and product enhancements.
     Currently AFKLMP Cargo says its annual growth is pegged at 7%.
     “But 12% of turnover is Express and Mail,” reports Stephane Bocquet, Vice President Express and Postal Services.
     “Our plan is to focus on increasing E&M growth to 25% by 2020.
     “Our aim towards postal organizations worldwide is to position AFKLMP to handle e-commerce for both the B2C and B2B segments.
     The group is targeting business with integrators, couriers, as well as forwarders with a strong e-commerce focus.
     But there are also new players entering the domain (e.g. Distance sellers, comparison sites).
     “Again, with resources— our people and a long-held committment to this sector of our business we can offer a high level of reliability with worldwide coverage, daily regular services and growing belly capacity on our combined passenger fleets," Bocquet explains.


Dedicated Business Unit

     “AFKLMP today includes highly specialized warehouses in hubs CDG and SPL as core to our service offering.
     “We have long held an active front running role in Postal Corporation ‘IPC’
     “In terms of postal product enhancements, our new legacy systems for Cargo / Express (Cargobus) and Mail (Stamp) with enhanced end to end tracing are operating at new facilities at SPL as well as our other state of the art facility at CDG.
     “Our industry leading “Closer Hub” in collaboration with Sodexi and Geopost further reduce transit handling times for Postal and Express flows,” Bocquet added.

AFKLMP Freighter

Out of Freighters?

Christophe Boucher     A good way to get straight answer to this “hot potato” question is to go directly to a market expert who markets all-cargo lift and that would be Christophe Boucher, Vice President, Asia & Middle East, AFKLMP Cargo.
     “Is there a decision,” Boucher says rhetorically
     “No.
     “I think if you look at the profitability of the full freighter, then yes, they are not profitable.
     “And I think that in a company that is properly run, yes, you have to ask yourself some questions.
     “For the time being, our target here in India is to optimize our capacity.
     “That’s definitely our target and we hope to be able to keep freighters in India.
     “I doubt if the mother company will accept the kind of losses that we had last year,” Christophe Boucher said.
Geoffrey/Sabiha, additional reporting Tirthankar Ghosh

 

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