Vol. 9 No. 87                                          WE COVER THE WORLD                                     Friday July 23, 2010

Carsten Spohr To
Lead Lufthansa Group

     According to German media reports, Lufthansa Cargo’s CEO, Carsten Spohr, will soon be named as new head of the Lufthansa Passenger Airline Group.
    The decision is expected to go through at at the next formal meeting of the carrier’s Supervisory Board on September 22. If appointed by the Board, Spohr would take on his future duty in Spring 2011. He would follow Christoph Franz, who is believed will succeed Wolfgang Mayrhuber as Chairman of the Executive Board and CEO of Deutsche Lufthansa AG in May 2011.
    Lufthansa spokesperson, Claudia Lange, denied the report saying, “It is our general policy to not comment on any speculations concerning possible staff decisions.”
    The Lufthansa Passenger Airline Group is by far the most influential and powerful unit within the carrier’s organizational structure.
    It generates 73 percent of the enterprise’s total turnover and manages the entire Lufthansa passenger fleet, plus the business of subsidiaries such as Swiss, Austrian Airlines, British Midland, Eurowings, Lufthansa Italia, and Air Dolomiti.
    Carsten Spohr was born in 1966 and has headed Lufthansa Cargo since January 15, 2007.
    Mr. Spohr was a main driver for the founding of AeroLogic, a 50/50 joint venture between LH Cargo and DHL Express based in Leipzig-Halle airport. During the recent global downturn, he and his executive colleagues at LH Cargo reacted immediately by sidelining four MD-11Fs, thus reducing capacity in the market.
    He also initiated a short work week for the administrative staff of LH Cargo, mainly in the carrier’s Frankfurt headquarters for some months.
    Carsten Spohr, together with Jade’s CEO, Kay Kratky, are also noted as successfully maneuvering the Shenzhen-based cargo subsidiary (25 percent) out of the losses and into profits.
Heiner Siegmund/Flossie


Air Cargo Screening At Hand

In The Picture WFS LAX facility encloses consignments in fencing and automatic roll-up and close doors installed as part of enhanced security project. LAX is also live CCSF.

     “We are well prepared for August 1st and actually set an internal target. We have been screening at 96 percent since July 1st, with the balance being unscreened shipper built units that will no longer be accepted after July 29th.
     “Total 100 percent screening for air cargo has obviously been a huge challenge, but at the end of the day Delta Air Cargo met the challenge.
     “I do look forward to seeing many more forwarders join the CCSP program as this will be the best long term solution,” says Neel Shah, (left) Vice President and top executive at Delta Air Cargo.
     Jimmy Speas Director, Cargo Sales US Airways lays it on the line:
     Asked what are you saying to customers he states:
     “At this time US Airways feels it is well prepared with additional resources to comply with the 100% screening mandate.
     “We have worked closely with TSA and other organizations to prepare for this change.
     “US Airways is employing state of the art screening technology and adding resources at key locations in order to minimize any customer concerns.
     “We believe we have a good plan and are ready for the mandate.
     “US Airways fully supports and highly encourages customers to participate in the TSA’s Certified Cargo Screening Program.
     “Our Cargo Contact Center is available 24 hours a day, 7 days a week at 1-888-300-0099 to respond to customers' questions regarding Aug 1 100% cargo screening mandate.”
     We are less than ten days away from the implementation of 100 percent screening of all cargo aboard USA passenger flights; while there are many views on the subject, all agree on one important point:
     When it comes to what goes on below decks, business as usual is changed forever.
     Doug Brittin, (left)General Manager Cargo at TSA said the process for screening every piece of cargo is challenging, but his biggest concern is unscreened cargo coming into the United States on international passenger flights.
     "If we required the airlines to screen 100 percent of cargo overseas, they would be taking everything apart on their docks and that would cause a significant delay in commerce and (we would) have a significant uproar over that," Mr. Brittin told reporters.
     Doug Brittin believes it will be some time before foreign governments work with the United States to ensure all cargo is screened.
     Most questions about 100 percent screening have been raised by politicians after the publishing of a U.S. General Accounting Office (GAO) report, presented last month, which made headlines at a big Homeland Security hearing in the U.S. House of Representatives in Washington, DC.
     GAO warned TSA of possible challenges to meeting the 100 percent cargo screening requirement.
     The GAO report prompted Chairman Bennie Thompson (D-Miss) to comment after the hearings:
     “TSA’s ability to conduct appropriate oversight, inspection and regulation of the screening program raises serious concerns.
     “While it has developed several initiatives to implement the 100 percent cargo screening mandate, its programs rely too heavily on private sector participation and self reporting of data.”
     Rep. Ed Markey (D-MA), the author of the mandate implementing the required screening of all air cargo on passenger planes (on recommendation of the 9/11 Commission), also chimed in:
     “There are serious concerns about TSA’s system for screening all cargo carried on passenger planes, a vital security protection.
     ”The recent GAO report calls into question whether TSA’s system will be capable of meeting the August deadline without impeding commerce.
     “TSA will also miss the law’s deadline for screening all cargo on passenger planes entering our country from overseas. This is particularly troubling given the threats posed by terrorists like the Christmas Day underwear bomber, who was attempting to enter our country on a passenger plane, which originated overseas.
     “We must resolve all outstanding issues to ensure that we are focused not only on the safety of passengers in airline seats, but of the cargo just beneath their feet.”

     “Merchants that have business in catalogs, goods and other mail services materials screened at their local airport, are likely to experience significant delays, cargo backlogs and transit time increases,” says Pitney Bowes Rob DiVincenzo.
     “We have been working in the TSA program that allows cargo to be pre-screened through vetted and audited facilities.
     “We are eager to share our knowledge about how the retail industry can prepare for the upcoming mandate and the changes in screening and shipping routines that should be expected,” DiVincenzo says.
Contact: Toll-Free: (800) 355-9090. www.pb.com/mailservices

     Back down on the ground: for Klaus Holler, Head of Area Management Americas at Lufthansa Cargo, the deadline to 100 percent screening of air cargo, while looming to some, has held a very special place in the Lufthansa Cargo plan of moving forward.
     It was Lufthansa Cargo, after all, that hosted several open format Security Conferences both in the USA and in Germany during the past two years. They were conducted by the carrier’s cargo security chief, Harald Zielinski, (left) pictured here with James LoBello, Head of Security Lufthansa USA.
     Mr. Holler (right) told Air Cargo News FlyingTypers:
     “Lufthansa Cargo has been at 100 percent mandated screening since July 1, a month before the deadline.”
     Speaking from Atlanta, Mr. Holler added:
     “The idea to move to 100 percent screening before the deadline and be able to maintain the integrity of our various closeout timetables is quite serious business around here.
     “We want to be absolutely certain that everyone is on the same page with total transparency all around.
     “Sure, we expect some tweaking will need to be applied to get things right, but our goal is to make sure the transition to 100 percent goes smoothly for everyone.”
     As reported here earlier this week, American Airlines is also ramping up its public awareness outreach as August 1 approaches.
     Dave Brooks, AA Cargo President, said:
     "We've been stepping up the screening that we have been doing in the air freight environment for three years now, so I don't expect life to be that much different August 1 or August 2.”
     American Airlines held a demonstration of new x-ray machines and Explosive Trace Detection technology last week in Dallas. (click for related story).


“WFS is 100 percent ready for August 1 and has been for some time.”

Third Party Priority One For Many

     In many cases, small- to medium-sized companies cannot invest in the expensive types of technology required in order to meet 100 percent screening mandates; their best hope lies in working with a third party company, which will, for a fee, clear the cargo and get consignments to the departing flights on time.
     We spoke to Karen Avestruz, WFS Director of Cargo Security and Compliance, who told ACN/FT what she expects for early next month.
     Karen is both a security expert and also a dynamic “Woman in Air Cargo” who finds herself in a position of critical importance as security compliance is positioned as a do-or-die exercise in transportation.
     “WFS is 100 percent ready for August 1 and has been for some time.
     “As early as 2008, we saw the need to implement the necessary physical and procedural changes to be able to provide secure and compliant cargo screening and cargo handling services from August 1.
     “Our decision to move forward was an opportunity to invest in a variety of screening equipment and facility upgrades, including fencing, surveillance systems and access control packages.
     “At this point, all WFS locations that currently handle cargo from wide-body aircraft are equipped with TSA-approved technology for screening (x-ray machines or ETDs),” Karen Avestruz said.
     “All 32 cargo locations have received training in physical search and are kept updated about requirements.
     “In addition, WFS undertook a program to achieve TSA certification to provide CCSF services.
     “MIA was the first location to achieve certification and in fact was the first ICSF in Miami and then only the third in the country.
     “Since then, certifications have followed in PHL, PIT, DFW and LAX.
     “JFK is on track to achieve certification before August 1 with CLT, BWI and BOS following thereafter, with others to follow.
     “The establishment of a group dedicated to Cargo Security and Compliance is another example of WFS’ efforts and initiative to prepare for the changing environment,” Karen Avestruz noted.
     WFS’s Director of Cargo Security and Compliance ventured:
     “We are happy to be working with the TSA and with cargo forwarders and shippers in this initiative.
     “We have long-established relationships with our carrier-partners, and becoming a resource for independent cargo screening is a logical step in the evolution of the handling business.
     “WFS will continue to strategically certify our cargo facilities even after the August 2010 screening deadline, all in an effort to provide seamless service to our cargo customers.
     “WFS can assist cargo shippers to meet the obligation to screen cargo, eliminating the need for forwarders to invest in screening technology.
     “Our independent cargo screening facilities give forwarders the option to deliver pre-screened cargo to the carrier without having to wait in queue at the cargo facility awaiting screening.
     “The TSA-approved cargo security process includes security screening, cargo build, delivery, maintenance and validation of the security chain of custody for cargo shipments.
     “As with any new situation, there will be many challenges, including ones that perhaps we haven’t foreseen.
     “At this point, we believe that for the first few weeks or maybe months, it is possible that shippers, particularly those that have not planned to make any changes to their current business practices in order to accommodate the new regulations, may experience delays.
     “Sadly, where this happens, it is likely that there will be a flow-on effect for those also waiting to deliver cargo.
     “WFS has added manpower where necessary in order to deal with this possibility and also given additional briefings about the new regulations and how to deal with various situations.
     “In this regard, WFS has carried out customer surveys as well as ad hoc piece-count surveys to get a better picture of the magnitude of the situation.
     “Primarily, we have worked with our customers and their customers (forwarders and trucking companies), to determine how we will manage, what the required procedures are and what will and won’t work.”
     Although the lady has her eyes on the prize and the plan well in hand—she also acknowledges that WFS ”is a team effort all the way with some really outstanding transportation professionals onboard here to carry our program and message out to forwarders and others as well.
     “As example, our Sr. VP John Gemmell is the key player for our CCSF product, and he has been instrumental in taking public the new screening services for WFS while actively pursuing business relationships with forwarders, both in the local MIA market and on a larger scale, where we can provide services in multiple locations.
     “John is a long time professional of our business who plays a major role in leading our team into the era of 100% air cargo screening.”

Tulsi Mirchandaney

Lise Marie Turpin

Lisa Schoppa

Tammy Zwicki &
Monika Lutz

Gabriela Ahrens


Ceará Could Hub Northern Brazil

      Recently, The United States Trade and Development Agency (USTDA) awarded a $480,000 grant to the Ceará State Government in Brazil to determine the technical and financial viability of the construction of a new cargo airport in the state of Ceará.
      The study is expected to lead to the creation of a new air cargo facility to complement the expansion currently underway at the port.
      The new cargo airport will eventually link air, port, rail and road systems in the state.
      "USTDA believes that this project will generate a number of business opportunities for U.S. suppliers," USTDA Country Manager, Gabrielle Mandel, told ACN/FT.
      "The new facility will require specialized engineering services, a small air traffic control tower, as well as airside navigation equipment, including precision approach path indicators, lights, glide slopes and localizers."
      Proposed work for Ceará State Agency will be listed on the Federal Business Opportunities (FBO) website and linked to USTDA's website at www.ustda.gov. Interested U.S. firms should submit proposals according to the instructions in the FBO announcement.
      Ceará State Agency for Development will select the U.S. contractor to complete the study.


     Bon Bini! This friendly welcome is offered to the traveler at Hato International Airport and upon receiving it one knows immediately: I have arrived at Curacao. The language? It’s Papiamentu, the local Dutch-African-French-Portuguese-English-Spanish-Creole dialect, which nicely represents the unique and vibrant atmosphere you experience during your stay.
     The sun-blessed island lies 60km off the coast of Venezuela and is part of what is considered the ABC islands: Aruba, Curacao, and Bonaire, and home to the newest leisure cargo mandate carrier, Dutch Antilles Express, or DAE for short.
     While the Lesser Antilles as part of the West Indies have a close proximity to Venezuela and Columbia, a good percentage of DAE’s flight schedule is geared up to service this region in addition to offering multiple daily service to the sister islands of Aruba and Bonaire.
     With a fleet of 3 x ATR and 2 Fokker100, DAE provides services also to St. Maarten, Bogota, Caracas, Cartagena, Valencia and Santo Domingo, each flight able to carry cargo from 500-2,500k.
     In the spirit of the relaxed attitude of the Dutch Caribbean, signatures to the contract were made at “The Clochard.” With a location directly at the Rif Fort overlooking the entrance of the largest port in the Caribbean and one of the biggest natural deep water harbors in the world, this restaurant is one of the better fine dining experiences in Curacao.
     Fred Lanson, Chief Commercial Officer of DAE, commented: “Effective 1st June, 2010, cargo transportation will become a steady source of incremental revenue for us. With the total cargo management services of leisure cargo, there is no need to reinvent the wheel, but hauling revenues from the first day of operation.”
     Ralf Auslaender, Managing Director of lC, pointed out: “With capacities of DAE we offer a cargo micro-network for the region. Simultaneously, we link these services vice versa to our macro-network connections of Arkefly CUR-AMS-CUR with daily widebody flights further on into our European hubs.”
     Present Regional Director Americas, Erik Fraenkel, added: “Revenue forecasts are high and we will work hard for it’s achievement.”
     Even though “The Clochard“ might lead someone to believe that a good wine gets you under bridges only, Fred, Ralf and Erik felt that this business enterprise will build bridges and become yet another successful venture for all those involved.
Flossie Arend

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