Vol. 10 No. 52                          THE GLOBAL AIR CARGO PUBLICATION OF RECORD SINCE 2001            Thursday June 2, 2011


Building Business At leisure Cargo

     We got a chance to play catch up with Ralf Ausländer, Managing Director for leisure cargo while at Air Cargo Europe 2011 in Munich, and took the opportunity to ask a few questions about what is most important to leisure cargo at the moment.
     “We have been adding a few very important accounts to our portfolio during the first course of 2011,” said Mr. Ausländer.
     “These are mainly three additional carriers of the TUI Group, and it is our top priority right now to try to consolidate whatever capacity is there and line this up with the service which is being offered by our other mandate carriers.
     “Substantial capacity has been added, roughly between 25-30,000 tons on an annual basis.
     “You can imagine what kind of detail work is necessary to come up with a good game plan to really make this work.
     “We added about 35 percent to our current overall production.
     “We have intensive work to do, especially in the Caribbean, Dominican Republic, as well as Cancun and Mexico.
     “These are currently booming markets.
     “Right now we have about 3-4 weekly trucks running within a 36-hour time frame from Cancun into Mexico City, which is working out very nicely.
     “It’s a good alternative to a high demand route directly into Mexico City, and there is a good percentage of over capacity which cannot be carried on direct flights into Mexico City with a relatively short transit time.
     “The second area of development is the Dominican Republic.
“With the addition of the TUI Group carriers, we offer about 75 percent of the available capacity from the DR into Europe.
     “These are mainly perishables, which means you have to also organize the logistics very well in order to keep the customers happy,” said Mr. Ausländer.

     We wondered how leisure cargo works within itself in terms of technology organization and advancement of the group as a whole.
     “The main advantage of what we have right now is that by adding new mandate carriers, we are increasing our network.
     “If you look at the nature of the touristically oriented carriers operating from Europe, they all service the same destinations.
     “That means once we are established at certain destinations, adding more carriers to our portfolio does not mean we have to reinvent the wheel.
     “We can base our approach on the already available office infrastructure, which makes it very easy to add additional mandate carriers quickly,” said Mr. Ausländer.
     While it is clear that the Latin American markets are of great interest to leisure cargo, we wonder, with the boom of Middle Eastern and Asian countries, what other markets hold interest for leisure in the future.
     “Over the last few years, Air Berlin has added flights into Southeast Asia, particularly Thailand, as well as year-round service into Dubai with the start of 2011.
     “With Air Berlin, we offer approximately 12-14 flights a week into Thailand on a year round basis.
     “We offer daily departures from Germany into Dubai, plus about 11 flights a week out of Germany into JFK.
     “These are the areas in which we are progressing; this is where we see the highest rates of increase over the year.
     “The cargo load factor on these flights is extremely high,” said Mr. Ausländer.
     With skyrocketing fuel costs, natural disasters and ever-tightening regulations, there is much that can be surprising in the cargo industry, and the list changes every day. The most surprising thing for leisure cargo was that security was not a surprise at all.
     “It’s a natural development to beef up the security side of cargo.
     “What surprised me in 2010 was the relatively quick recovery of the market, considering the way we went down in 2009.
     “We still see this recovery continuing in 2011.
     “We will again be able to reach the rate level of 2008 in 2011, despite rises in fuel prices and security issues,” said Mr. Ausländer.
     So maybe happy days are here again?
     “Maybe happy days are here again, and we hope that they stay,” Mr. Ausländer said, smiling



     Right now it is good to be Carmen Taylor, Managing Director of American Airlines’ Latin America Division.
     Not only is she receiving positive feedback for being featured as part of our Women in Air Cargo series, but she also happens to reside in one of the most beautiful, lush places in America.
     Carmen reports that this time of year, Miami, Florida is “beautiful with palm trees, beaches, no storms plus lots of sunshine and wonderful American Airlines.”
     “A lot of my customers that read FlyingTypers have congratulated me, and written from all over the world about women being featured by American Cargo.
     “I am extremely flattered and mostly humbled by the whole experience, including being invited to be part of a panel at the recent CNS partnership last month in Phoenix, Arizona.
     “It was an interesting experience, but unfortunately the format was not what we were originally told to expect.
     “We prepared for a series of questions about what we do, however, what ended up happening was that everyone on the panel made statements about their service until the time for the session ran out.”
     Carmen brings to words what a baseball pitcher must think when ready to throw a killer fastball for a strike out only to be told to intentionally walk the batter by the team manager.
     But rather than feel frustrated, she is upbeat and filled with more than a little bit of love, understanding and joy at the world around her.
     The beautiful part of what we do here is talk to air cargo people, listen and hope for some answers.
     Sure, cargo show panels get long winded and maybe CNS should get its act together, but we decide to raise that beef another day.
     The news here is what dear Carmen could not say a couple weeks ago at PHX.
     So we ask the question and we are surely glad we did:
     What was it that you really wanted to tell everyone at CNS Carmen?
     “I knew the audience would know about Latin America, my area of cargo expertise, so I thought long and hard about what to say that maybe they did not know.
     “American Airlines continues to invest in Latin America and is adding more capacity whilst going after new markets to serve all the time.
     “Simply put, the economies of the Latin American countries right now require that our airline make major investments both in service and infrastructure and AA is doing just that.
     “Air cargo people should know that AA has been in Latin America for the past 25 years. This is testimony to the fact that a long time ago, our senior management had a vision of the market that has held steady all these years.
     “Now a lot of carriers have awoken to the potential, but it should not be forgot that American Airlines invested and continues to build links right here in our own backyard.
     “Today our brand is very well established in Latin America amongst a loyal group of shippers and customers who know we are continuing to build and invest in their success.”
     In terms of growth, Brazil, where the hot news just keeps on coming, gets six cities service from American Airlines; the carrier goes into Brazilia, Belo Horizonte, Rio, São Paulo, Recife and Salvador.
     “We are adding frequencies on our Miami-Belo Horizonte flight (a key destination for business) to daily service during the fourth quarter of 2011.
     “American is also launching services to Manaus starting in Spring 2012.
     “We are the number one USA carrier to Brazil.
     “Last year we added capacity into Argentina with flights four days a week, keeping service on a seasonal basis and ramping up during the fourth quarter, which is music to our freight forwarders’ ears as that time of year is when the major movements of inventories and perishables really get going.
     “Starting June 9th, we are adding wide-body capacity into Bogota and Lima, Peru from Miami, bringing a major amount of lift for southbound cargo traffic and upcoming northbound perishables traffic as mentioned later this year.
     “Consignments moving from Latin America to Europe via Miami as part of our AA Cool program (launched in 2006) will greatly benefit from the added capacity.
     “Although Summer 2011 is yet to start, believe me, in many parts of Latin America all thoughts are on the market this fall and American Cargo is ready for it.
     “AA Cool is a good example of our market-savvy hands working all the way for and with our customers.
     “Let’s say we are moving asparagus from Peru to Europe – a huge item during the late year.
     “We bring down the temperature in our containers to a level that actually slows the ongoing growth of the asparagus, which continues even after the vegetable is picked and packed for shipment to London, Paris and Madrid.
     “These movements continue right through winter into the early spring.
     “So now, Peru is growing asparagus all year round.”
     Another market that has opened up (unfortunately) due to the tsunami and earthquake in Japan has been the movement of asparagus from Peru to Japan.
     “We are supplying lift to Japan for asparagus from Peru via Lima/Miami, Miami/New York, Miami/Chicago or Miami/Los Angeles, where our B777s offer non-stop services right into Narita, Japan.”
     Finally with all said and done, we asked Carmen if she would be willing to try a trade show panel again despite being somewhat muted at CNS, and her answer was instant and emphatic.
     “Any time I have a chance to be in front of a customer, I jump on it!
     “And guess what?
     “If I am not ready to talk, then our competitors will be.”
     We keep thinking about this wonderful lady lifting not only air cargo, but everyone in the industry as well.
     Sure, the airline story is there and American is a great and expansive global air cargo resource.
     But 2011 is the year we all learned, it’s good to be Carmen, and best to know her.


Tulsi Mirchandaney

Olga Pleshakova

Lucy Ntuba

Lina Rutkauskien

Karen Rondino

Iwona Korpalska

Lisa Schoppa

Gloria Whittington

Rachel Humphrey

Jenni Frigger-Latham


AA & JAL Cargo Cooperation

     It all began January 11, 2011 as OneWorld partners Japan Airlines (JAL) and American Airlines (American) pledged cooperation with Tom Horton, president of AMR Corp. and American Airlines, right, and Masaru Onishi, president and chief operating officer of Japan Airlines Corp closing the deal with a public handshake.
     The AMR/JAL Corp. venture began on April 1 covering 10 transpacific routes as both carriers commenced taking advantage of liberalized aviation rules to boost sales.
     Now both have expanded the cooperation to include air cargo by providing shippers with “more routing choices, new destinations, and increased cargo capacity.”
     AA & JAL Cargo are now utilizing Los Angeles, Chicago, Dallas/Fort Worth, New York and Honolulu as key transfer points for cargo traffic in the United States and Tokyo, Osaka and Nagoya as transfer points in Japan.
     “The agreement enhances the significance of Honolulu as an important transfer point for cargo between Asia and the Americas,” AA & JAL said.
     “In addition, new synergies between the carriers’- express products will now provide seamless transfer of express shipments between the airlines.
     “As example shipments that do not exceed 100kg will now receive immediate confirmation of space on both airlines, when customers select JAL’s J-PRIORITY and American’s EXPEDITE product for the routing.”

The Serial Entrepreneur

     The reports of air freight’s death are greatly exaggerated
     Here is an iconic “serial entrepreneur” and self-styled global businessman in the person of Giorgio Laccona, whose latest freight forwarding business venture – GOAL – (Global Ocean Freight Air Freight & Logistics) went live in the first week of April 2011. The focus is on imports and air, and Giorgio envisions a 60/40 split between air and ocean freight. The first office is at JFK with Chicago, Los Angeles, Miami, Atlanta and Houston to follow.
     Despite his young age, Giorgio has been in freight forwarding since 1976 when he joined AEI – he was all of 18 – and spent the next 24 years there, finishing as VP the Americas before the Danzas/AEI merger, when he subsequently became its President and CEO for the Americas. In 2000, Eagle recruited him as COO international, based in Houston. This was followed by his appointment as CEO of Savino Del Bene USA, where he led the expansion of this Italian forwarder. The entrepreneurial spirit got to him when he joined IJS Global, which is owned by private equity fund Brynwood Partners and headquartered closer to the old AEI home in Connecticut. During his four-year tenure as chief executive, he built the business into a significant global enterprise.
     Now he has spawned GOAL, equipped to compete globally with a tried and tested global IT solution – ediEnterprise – and as of May 16, 2011, a member of GLN, the Global Logistics Network.

About Global Logistics Network: Forging A New Path
     GLN is an organization with 391 member companies in 107 countries/371 cities/715 offices, with 18,700 employees and an annual aggregate revenue exceeding USD 4.5 Billion. GLN is an ISO 9001 Certified organization that encompasses leading independently owned and operated companies that specialize in the logistics industry—including freight forwarders, transportation intermediaries and associated companies. This makes GLN the largest USA-based network and the 2nd largest global freight network.
     To put it in perspective, the Vision of GLN is simple. With the theme of "POWER OF ONE," network members are able to compete on both key global Fortune 1000 business and also satisfy local and regional customers. It is not the intent of GLN to aspire to be a competitor to the multinational forwarders, but to meet the Critical Success Factors of customers. The customers drive their ambition and member companies never forget that they have a choice.
     According to its founder and CEO, Roy Stapleton, (right) the GLN Mission Statement is “to use the combined global strength and local regional experience of GLN to pursue and surpass the Critical Success Factors of customers aligned with cost effective and profit related processes.” Roy is a 43-year forwarding industry veteran living and working in the USA for the past 29 years. He held several key management and VP roles with DHL (AEI), Schenker (BAX Global) and Agility Logistics (GeoLogistics) in both operational and sales positions.
Ted Braun

RE:  Billion Dollar Baby Part Deux


I hope all is well. I enjoyed the article the other day so thanks for the great exposure and also the meaty content.

I look forward to seeing you again soon.

Neel D. Shah
Senior Vice President and Chief Cargo Officer
Delta Air Lines, Inc.

RE:   Pan Am The TV Series


     You stepped into it on your Pan Am article.
     Plain and simple, you sure didn't do much/any research in this woeful blurb.
     FYI, Pan Am was bought by Tim Mellon (who is a pilot and likes to fly) along with the remnants of Carnival in the bankruptcy court of Judge A. Jay Cristol in Miami when Marty Shugrue's (a friend of mine) version of Pan Am Two fell on its butt.
     It failed through incompetency and a lack of intelligent planning.
     Tim's version, PanAm Three, (with lackey David Fink) was moved to Portsmouth, New Hampshire and began as a charter-cum-scheduled airline with B727-200 aircraft.
     Again, poor planning and the wrong hired guns blew it big time.
     Fink is a railroad guy from Guilford Transportation based in New Hampshire and they knew nothing about the airline business or how to hire the right people.
     Couple that with a union contract they made with ALPA that buried them, and a lack of planning, and it was doomed.
     PanAm Three then purchased a bunch of aircraft from United with a clause that forbid them using the aircraft on US routes.
     Along with badly deteriorated (United?) planes, the venture was doomed.
     After union strife (courtesy of ALPA and some arrogant pilots), PA3 started Boston and Maine Airways to try to survive.
     There were CASA 212 (2 of them on cargo) and a bunch of SAAB 340 aircraft (again, cheap junkers) in an effort to continue.
     It all flopped bigger than PA-One.
     The blue boxcars with white logos are operated where Guilford's name used to be. They manage to have a derailment a week in another bad operation.
     However, PanAm One to Three will be nothing compared to the proposed TV show, which will fall from the skies like a dying buzzard in the world of bad reality shows and other poorly cast and scripted TV in today's world of entertainment.

James Kaplan

Dear Jim,

     Thanks for writing.
     I loved your letter, as our readers can always help us straighten up and fly right!
     My son Geoffrey (same name) has a series on ABC, the same network on which Pan Am will appear in the fall.
     His show is Body of Proof, which airs on Tuesdays at 10pm, by way of full disclosure.
     I don't know, Jim; I have missed Pan Am every day since December 4, 1991, the day they stopped flying.
     Please remember, I’m the guy that saved The Marine Air Terminal at LaGuardia; I personally carried the big 314 Yankee Clipper off The Intrepid and had it hung in the lobby of the MAT where it belongs.
     So in the PAA trailer, the quick view inside the set of 1950s PAA IDL (JFK) building or the sets that bring alive my old black and white publicity gags are very exciting to this 70-year old.

All good wishes,

RE:  Wake Up For City That Never Sleeps

Dear Geoffrey,

     Thank you very much for the report about our activities at the “Day of Logistics.”
     The accurate description of my last function in Panalpina would have been Director.
     But I’ve never been responsible for the ocean traffic.
     Just to put it right and in a proper way.

Best regards
Ewald Heim
Udenhoutstr. 24
63110 Rodgau
Phone: 06106-15086


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