India Beefs Up Security

     Air cargo security in India gets a hefty boost as the country gets ready to become Container Security Initiative (CSI) compliant and is working out plans for cooperation on the matter with USA.
     Just as the 9/11 attacks on the World Trade Center in New York brought about the Aviation Security Act in the United States that stipulates all-cargo airlines must operate a system that screens, inspects or otherwise ensures the security of goods aboard aircraft, India has its own set of rules and regulations and has a proposal to register only regulated agents, who have been in existence for five years and hold at least three years of experience in the air cargo business.
     The regulated agent will have to follow the security norms and standards laid down by COSCA (Commissioner of Security, Civil Aviation).
     Under the provision, agents will be required to install X-ray and other necessary electronic monitoring equipment for screening cargo.
     A tougher more comprehensive vetting process by the Bureau of Civil Aviation Security, (BCAS), is also in the works examining backgrounds of security personnel working at the warehouse.
     The Indian Parliament has also passed the Aircraft (Amendment) Bill, 2000 which has enhanced the penalties and fines for failure to comply with security directives issued by the Director General of Civil Aviation or Commissioner of Security, Civil Aviation.
     Under the new, enhanced security rules, the regulated agent is required to have trained and certified security employees to undertake the handling and security of the cargo from the time of its receipt till its delivery to the air carrier.
     Additionally security-controlled items must be transported to the airport or the warehouse of the air carrier by the agent in a sealed container or in trucks under required surveillance.

 

Labrador Retrievers are at work for Air France Cargo at IGI.
"Outside of a dog, a book is probably man's best friend, and inside of a dog, it's too dark to read." (Groucho Marx)

 

     Agents will be responsible by law to provide the airline with a written declaration certifying that the cargo delivered by it has been subjected to the security controls and that the consignments do not contain any "dangerous goods".
     Agents will also be required to keep permanent records of security regulations such as 24-hour cooling, X-ray and physical examination of cargo.
     A copy of the certificate, detailing the aforementioned will be delivered to the airline along with each specific shipment.
     The clamp down comes as security analysts draw graphic scenarios of the transportation chains exposure during typical shipments.
     Indian cargo agents are advocating that the private sector must set standards for and regulate security requirements as well.
     Meantime as indication that business as usual will be unusual in India from now on, Air France Cargo at Delhi International (IGI) has employed some dogs to sniff out explosives and other nasty stuff that may work its way into cargo consignments.
(Tirthankar Ghosh)

Disasters & Share Value

   Oxford Metrica is an independent strategic advisor that addresses top management on risk, value, reputation and governance relative to the strategic aspects of financial performance while looking at the impact that natural and man-made disasters have on companies share-holder value.
   Last week Oxford took what it terms “ideas with impact” to the famed Copter Club in the Pan Am Building (now called Met Life) above Grand Central Station in New York City.
   Part of the presentation addressed the airline business with statistics and conclusions concerning various air disasters and accidents during recent years.
   Although reading about disaster impact on the airline business is a bit stoic by nature, reality is that since most airlines depend upon their public share value this information could be valuable.
   “The analysis of aviation disasters suggests that markets respond well to management teams which demonstrate an understanding of what essential action is required, an appreciation that specialist help is almost certainly necessary, and the courage to act sensitively and efficiently in unexpected and devastating circumstances.
   “Since by its definition, mass fatality events require external assistance, it is interesting to investigate whether there is any discernable difference in market response associated with the engagement of a specialist service firm.
   "Our analysis showed that 50% of the disasters were handled with the assistance of Kenyon International Emergency Services, a company that specializes in mass fatality disaster management.
   “Since there is a clear market leader, the sample of aviation disasters was partitioned into a Kenyon and a non-Kenyon group to allow for a valid statistical comparison.
   “Kenyon differs from its competition in that it is the longest established and it offers a full-range of services including; contingency planning, disaster management response and recovery, identification of human remains and personal effects, training, family assistance, call centers, memorials and humanitarian services.
   "Kenyon has been responding to aviation disasters since 1929.
   "By the end of the post-event year, those firms with the specialist services from Kenyon were outperforming their peers by 40%.
   "The enlisting of specialist care enables experts in disaster response and recovery, and humanitarian services to carry out their work efficiently and sensitively.
   "This is consistent with the anecdotal evidence that suggests firms are more likely to experience efficient value recovery if they demonstrate strong leadership, honesty and compassion.
   "It is important to note that the engagement of specialist services does not suggest a delegation of responsibility.
   "Mass fatality events are extreme and profoundly shocking.
   "It is unrealistic to expect a corporate management team to be able to cope effectively with the consequences of such a disaster without help.”
Contact: www.kenyoninternational.com