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This 20-year old conference remains
positive and well attended when measured in terms of a networking experience.
Once again, it attracted and brought together a number of leading airline
cargo, freight forwarding and ground handling executives. The bigger
issue is what is yet to come in the 12 months between conferences.
Up until 2008, CNS retained a distinct
image and semi-independent agenda. It has since been reined in by IATA,
which has turned it into a regional office. In principal, IATA has every
right to do as it sees fit, as CNS is an IATA company. It might be appropriate
now to take a few steps back and reexamine what is IATA. From its inception
as an airline trade association, it interacted with ICAO, the WCO (World
Customs Organization), the UPU (Universal Postal Union), UN/EDIFACT,
and FIATA under the IATA/FIATA Consultative Council, through the prism
of serving airline industry interests.
About 20 years ago, when member airlines
balked at continuing to pay what they perceived to be high membership
fees, the tables turned. The resultant compromise was a degree of independence
for IATA in terms of earning revenues from commercial activities as
a trade off for reduced airline membership fees. As is often the case,
there have been unintended consequences, which changed the character,
role and focus of the secretariat. Ultimately, IATA consists of the
secretariat and the member airlines that, in principle, are supposed
to approve the secretariat agenda. That is the theory, and those who
are critical about IATA must remember that the airline executives are
as responsible as the top management of the secretariat.
If airline heads are ‘too busy’
to micromanage secretariat activities, and as a result, the latter end
up pursuing objectives which may be less than productive for the membership,
then they only have themselves to blame. As the CNS conference illustrated,
IATA provides a framework for airlines and other stakeholders to meet
under its umbrella. There is a program, but IATA plays a very low profile
role at the conference. In my view, it is so low as to appear disinterested
in anything but the commercial aspect of the conference. What is understood
as important from the secretariat perspective gives members and stakeholders
a paucity of depth and a lack of the proactive role so many members
and stakeholders were looking for.
A few specific examples: as previously
reported, from as prominent an airline executive as Lufthansa Cargo’s
Dr. Andreas Otto, “A joint formulation of the common concerns
our industry is confronted with in political debates is essential,”
and “CNS could become a kind of moderator and driver for solving
pressing topics shared by cargo airlines, forwarders and truckers.”
He regretted the absence of a common
voice of the industry, suggesting that globalizing CNS could fill the
communication gap. He continued, “Our industry contributes substantially
to the global economy, but we lack political and public awareness.”
As Air Cargo News FlyingTypers
reported, this implies that IATA would have to redefine the organization’s
philosophy on the treatment of forwarders and cargo airlines as equals.
Ground handlers expressed the same concerns in their sessions. The dilemma
as voiced by Jo Frigger of Emo Trans, a prominent global forwarding
company, is that IATA has been de facto suppressing CNS-type developments
worldwide. Although CNS President, Michael Vorwerk, indicated that he
would bring these ideas to IATA, it is anybody’s guess whether
they would be deep-sixed or given some consideration.
Can and will IATA rise to the occasion?
Whether this is perceived as an opportunity or a threat to IATA is in
the eye of the beholder.
Rather tellingly, there were no secretariat
honchos present to address any of these issues – no DG, no Aleks
Popovich, and no new Head of Cargo, Des Vertannes.
There is a fundamental difference between
being seen as doing the right thing and actually doing the right thing,
and that, perhaps, sums up the IATA conundrum. Each DG seems far more
concerned with their legacy and the imprint they will leave on the organization
than with the real interests of the members and shareholders. This runs
as a thread throughout everything, from staff decisions to how money
is spent, and the definition of priorities. This has been made possible
because member airlines have taken their eyes off the ball and have
given too much control to the DG and the top management. The blame needs
to be accepted, shared and lessons learned, if anything is to change
for the better.
IATA recently awarded the marketing and
management of all its events to Worldtek; at CNS this resulted in greatly
diminished secretariat involvement and presence. What may be good for
IATA (or someone in the organization who made that decision), may, in
the outcome, be adverse, because Worldtek is no replacement.
Things done in the guise of “industry benefit” remind me
painfully of Washington politicians invoking “the American people”
when they selfishly pursue their narrow agenda. Just like in national
politics, money and power will obscure and overshadow what may be good
for the country and the constituents, and finding a working balance
is an uphill battle.
Stakeholders from as varied as the GSA
(General Sales Agents) have gravitated to the IATA lure, followed by
GHA (Ground Handling Agents) and a host of Strategic Partner companies
who pay for access to meetings and events. While freight forwarders,
GSA, and GHA all want an “equitable partnership,” legally,
IATA is there to serve its member airlines’ interests exclusively.
That is a self-inflicted and somewhat unavoidable conflict of interest,
conveniently ignored as long as commercial freedom can produce the desired
outcome.
A strong spotlight was shone on this dichotomy
at CNS this year. The message is pretty clear. Left alone until the
next WCS or CNS, not much is likely to happen.
We will continue to watch and report.
Ted Braun/Flossie
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The
Association of European Airlines, which represents 36 leading European
network airlines, reacted with disappointment to the ongoing closure
of air space.
Sheikh
Ahmed declares: 
Contact!
Talk To Geoffrey
Good
Day Geoffrey,
