Vol. 10 No. 54                          THE GLOBAL AIR CARGO PUBLICATION OF RECORD SINCE 2001             Wednesday June 8, 2011

Allen Lifts DHL Higher

     A singing CEO at a press conference: This unique occurrence might make it into the Guinness Book of World Records. After Ken Allen presented dozens of charts at a Hong Kong-held media briefing by DHL Express, all of a sudden the CEO of Deutsche Post’s logistics pillar started intonating:
     “I wanna be a billionaire…” with his colleagues Jerry Hsu and Charlie Dobbie joining in “…be a billionaire, so freakin’ bad, UPS and FedEx will be sad.”
     The roughly 40 journalists attending the event were absolutely stunned.
     This billion-dollar profit target will not be realized in short time, Allen added immediately after shifting back from singing to speaking, “but we hope to be there by 2015, more or less.”
     To hit this target, DHL Express is visibly stepping up its activities in the Fareast, the courier’s giant future key market. The main project is the building of a new €142.4 million hub at Shanghai Pudong airport, which is expected to be operational by April or May next year.
      The 57,000-square meter facility is capable of sorting up to 40,000 parcels and packages each hour. It will complement the existing Hong Kong global hub and process mostly shipments from the northern Asian region, Allen announced.
     The step underscores the growing economic and strategic importance of China for DHL Express, including neighboring South Korea, Japan, Vietnam, Malaysia and Taiwan. Since volumes are constantly increasing DHL Express’ VP global network, operations, and aviation, Charlie Dobbie announced the leasing of three B747-400 freighters from Cathay Pacific.
     The aircraft will be operated by Air Hongkong, a DHL/Cathay joint venture (40/60 percent) and be deployed on Asian trunk routes such as Hong Kong-Narita and Hong Kong-Singapore. At the same time, the available capacity of some of Air Hongkong’s eight A300 freighter-fleet will be re-directed on some regional routes already served by the carrier.
     Dobbie added that starting this week a new —third daily flight between Hong Kong and Cincinnati, DHL’s North American hub, would be launched. Said Allen: “with to this flight, we are able to offer our customers in and around Hong Kong an additional cut-off time of two hours.”
     The logistics enterprise announced that Jerry Hsu has been named CEO Express Asia/Pacific. The former president of the Greater China Area (China, Hong Kong, Taiwan) is expected to drive growth and develop DHL’s market-leading position. Singing motivational songs to acquire additional customers might be part of this strategy.
Heiner Siegmund/Flossie

     There was a noticeable change at Air Cargo Europe, held in Munich, Germany during early May 2011.
     Saudia Cargo arranged itself in a beautiful fabric tent, festooned with comfortable seating and pillows and set off with an elegant reproduction of a camel that became the photograph to take at the show.
     “As the years unfold, the Middle East will have a significant market share of the world’s trade lanes such as Asia-Africa, Asia-Europe and Asia-Middle East.
     “We had a big head start in the air cargo business in the Middle East, with the resources to become even larger than we are today.
     “But the reality is that Saudi Arabian Cargo is building toward a solid future now with plans for major expansion, both in terms of our fleet and also new destinations.
     “Opportunities exist aplenty for Middle East air cargo and we plan to be there as a major provider and innovator in air commerce during the years ahead.”
     Peter Scholten, the old cargo professional, took up the reigns at Saudi Airlines Cargo Company as VP Commercial, based in Jeddah, Saudi Arabia last October.
     What he discovered was a carrier in need of both fleet, product and route development, so the steady, 20-year global cargo sales and marketing guru laid it on the line as he took over his new post.
     “The reaction has been quite positive.
     “There is a new spirit of dedication at Saudi Airlines Cargo as we build our brand.
     “Starting June 1st we are adding new schedules, including three B747 freighters that will move cargo between our connected hubs at Riyadh and Jeddah.
     “We are also adding 25 percent more lift to the Far East, major growth into Europe and also flights into South Africa, Lagos and Nairobi.
     “Also on the boards are important enhancements of our service package to North America.
     “Our intention is to regain momentum by offering more flights to more destinations.”
     Saudia Cargo sells the worldwide belly capacity of Saudi Arabian Airlines’ fleet of 125 passenger aircraft and operates a fleet of 9 to 12 freighters that span a rapidly growing global network of 85 destinations.
     Peter Scholten has some 20 years global experience in international aviation and transportation management. His career spans 14 years as regional VP on different continents at Dutch cargo airline Martinair and prior to those, 5 years as Managing Director of Road Air Flora, a leading freight forwarding company in the Dutch perishable market.
     Scholten has degrees from Jan Backx Transport College, Rotterdam and from NEA Transport Management, The Netherlands. Peter, his wife and their two small children live in Dubai.
     A good indication of things to come was a deal struck earlier this year, as Saudia Cargo netted 150 charter flights from Sharjah, UAE to West Africa in a deal with Fast Forward Cargo.
     “Fast Forward Cargo is a long time business partner and market leader in the UAE to West Africa.
     “The agreement fits in with our growth strategy to targeted development of the emerging sea-air business from Asia to West Africa," Peter Scholten said.

India Lift From Ground Up

     It is now taken for granted that the Ground Handling Policy (GHP) will not be implemented. Every time the government moves to enforce the policy – and it has done so quite a few times since September 2007 – protests stall it. The opposition comes mostly from the domestic private carriers since they are afraid that the GHP would take away control of their airline to assure a quicker turn-around. The last time, when the government finally took the call and decided to implement it starting January 1, 2011, the private airlines under their umbrella organization Federation of Indian Airlines (FIA), whose membership includes all the domestic carriers, went to Delhi High Court.
     The GHP includes handling of baggage, freight and mail, loading and unloading of aircraft, fuel handling and catering services. According to official sources, the domestic carriers had earlier said that they would go along with the new ground-handling policy. But come January 2011, the airlines chose to challenge the policy in the court. Their fear: they would lose control over costs, efficiency, scalability, and management of ground-support activities. The government, on the other hand, feared that allowing too many personnel on the airport tarmac and other restricted/technical areas could pose serious security risks.
     Ever since 2007, when the Directorate General of Civil Aviation (DGCA) announced the GHP, it has experienced a seesaw battle with the private carriers. The matter was heard in the Delhi High Court, which finally rejected the writ petition and in the first week of March 2011 ruled that the new GHP would be implemented starting April 1, 2011. But the FIA appealed against the order of the Delhi High Court. The FIA has since received a breather, as the Supreme Court will be hearing the case in July 2011. Until then, it has asked the government to maintain status quo, which means no implementation and allowing airlines to do self-handling.
     Celebi Holding, which has a presence at the Mumbai airport for ground handling and at Delhi airport for ground handling and cargo operations, is not worried about the delay in the implementation of the GHP, although it provides ground handling services for around 25,000 flights a year for Lufthansa, Air France, Turkish Airlines, Jet Airways and Kingfisher Airlines. The company believes that there will be a way out of the dispute with the FIA and has already pumped in a lot of investments for ground handling: $17 million in Mumbai and $13.2 million in Delhi. According to reports, Can Celebioglu, Chairman of Celebi Holding, told a group of Indian media persons invited to Istanbul to take a look at the company’s operations.
     “Ground handling is not their (airline) core business. Airlines give their ground handling to third parties due to efficiencies and economies of scale,” she said.
     The company is keen to push its cargo services and has chalked out plans to invest between $80 and $100 million in the next two years. It has been operating the Delhi Cargo Terminal since November 2009 and has plans to improve and upgrade it.
Tirthankar Ghosh

To Gates Of St. Peter And Back

     "We see great potential in Russia and the success of our Moscow flights has demonstrated that there is still demand from this market," commented His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
     Out of Russia?
     Emirates goes deeper into Russia by starting up services to St Petersburg Pulkovo (LED), November 1 with dailies from Dubai.
     Airbus A340-300 and A330-200 will be deployed on the route adding the imperial city to double daily flights to Moscow that have been in service since 2003.
     A diverse range of commodities, such as pharmaceuticals, automotive parts, garments, electronics and flowers will be imported into the St Petersburg via gateway Dubai.
     Outbound LED will be spare parts for power stations, aircraft and ships, along with tobacco products.


If You Missed Any Of The Previous 3 Issues Of FlyingTypers
Click On Image Below To Access




Get On Board Air Cargo News FlyingTypers
For A Free Subscription
Click Here To Subscribe