Vol. 12 No. 65                         THE GLOBAL AIR CARGO PUBLICATION OF RECORD                        Monday July 22, 2013

united jumps Over The Moon

ure, it's always about business, but often what we put in the air is inspiring as well.
We asked Robbie Anderson, President, United Cargo to share his view of this moment above LAX last week.

I was looking at this inspiring photo of a United aircraft and reflecting on the first three weeks of our United Cargo 360° system rollout. UC360° is our adaptation of the Mercator SkyChain IT solution that will make United Cargo very easy to do business with in the future.
     It occurred to me how the phases of the moon relate to the phases of a project. We know the full moon is always out there and will appear eventually—how much we see at any one time is a function of the phase we're in.
     Like the moon in the photo, I believe UC360° is in the "waxing gibbous" phase: as we overcome the initial challenges and solve our issues, we're seeing more and more of what the system can do for United Cargo and our customers.
     I can't say that we will get to full illumination in one lunar cycle, but I can say that things are looking brighter every day.
     I need to add that once we reach the ‘full’ phase, that's when the moon metaphor will end.
     We're working extremely hard to avoid any future waxing and waning because we know the high value our customers place on consistent technology and service.
     And with July’s full moon arriving here on Monday evening, we know that United Cargo’s cycle towards great success can’t be far behind.
Geoffrey

 

air cargo news for july 22, 2013

enji Hashimoto is alive and well and moving up the corporate ladder at the “new” American Airlines, so it is not inappropriate to muse for a moment that a new face and bright light in the air cargo business has decided to shine somewhere else.
We first got to know Kenji as President of American Airlines Cargo during this past CNS Partnership Conference, out amongst the sagebrush in Arizona.
     Our first impression was that he was very smart and cool, but Kenji is also a good sport and can laugh easily, which is always a good sign.
     No doubt American, which has turned out some pretty good executives throughout its history, has again chosen well; Jim Butler assumes command as AA Cargo President sometime in August or September, or whenever USDOJ clears the merger with US Airways.
     But as the last weeks of the “Kenji Era” at AA Cargo wind down we asked Mr. Hashimoto to share some thoughts on a time full of hope and promise despite a tough economy and an ongoing merger.
     With our best wishes for great success and good luck we cannot shake the feeling that air cargo did not have nearly enough time with Kenji Hashimoto.
     Kenji—we hardly knew ye!

GA:  What are your impressions of air cargo?
:  In my 14 years with American Airlines, I’ve had many great opportunities to work in different parts of the business. While in cargo, the one thing that sticks out most about this industry is a genuine feeling of family.
     More so than other parts of the airline business, there’s an overwhelming sense of family here—among our customers, throughout the cargo industry, and even throughout our American Airlines Cargo team.

GA:  What do you think about the industry in 2013 and its prospects ahead?
:  Although we still have not seen a large-scale recovery in freight demand as a whole, we continue to see some positive signs of a turnaround, and we look forward to seeing that trend continue throughout 2013 and into 2014.
     Moving forward, I completely expect Jim Butler and our entire cargo team will continue to position American as an industry leader and deliver the excellence our customers have come to expect.

GA:  What can the industry do to be more successful?
:  I’ve mentioned this before, but moving forward, I would like to see a shift toward more efficient processes, which will ultimately improve customer service levels. This would include better communication in the supply chain process and better use of technology and innovation, through things such as automation and e-freight.

GA:  What do you think of your time as President American Cargo?
:  It’s been a memorable journey during which we’ve accomplished a lot.
     Even in a tough market, we’ve had strong performance in comparison to our competitors, had great customer successes, and, most recently, launched the new aacargo.com.
     Although I expected to stay longer in this role, I’m excited to continue to be part of the new American Airlines with my promotion to Senior Vice President of Regional Carriers.

GA:   What did you learn?
:  I’ve learned that relationships and careful listening play a very important role in the cargo industry.
     Our success is tied closely to these relationships, whether it’s with customers, our partners, media, or other industry leaders.

GA:  What surprised you?
:  I’ve been most surprised by the close-knit nature of this industry.
     Since arriving, everyone has always been incredibly welcoming, and I am truly grateful for that.
Geoffrey/Sabiha

 

     If there is one thing ATC (the Frankfurt-based GSSA that recently moved into North America with its acquisition of Platinum) offers, it is opportunities for a growing list of airlines and their staff.
     ATC CEO Ingo Zimmer declares: “Promoting from within builds strength to strength, as we secure our position as the top resource GSSA.
     “ATC is proud to field the best team in the business.”
     Two recent promotions in its head office in Frankfurt underscore that claim, as Dagmar Hanau and Paul Breburda—both ATC veterans—were upped to new positions.
     Dagmar moved from ATC Marketing Executive to ATC Group Marketing Manager, where she will develop all internal and external marketing communications as well as the implementation, monitoring, and development of global communication strategies.
     Dagmar joined the company in 2010.
     ATC’s new Group Commercial Manager is Paul Breburda, who takes charge of global project strategies.
     Mr. Breburda is also responsible for the continuous monitoring and analysis of markets and competitive situations in relation to the international orientation of the company.
     Paul joined ATC in 2007.
     “Although 2013 has been a year of challenge, ATC has moved steadily upward offering a global network of our own offices staffed by the best people in air cargo,” Ingo Zimmer said.
     “Today we step out with confidence, representing more than 60 airlines around the world.
     “Get to know ATC—the best is yet to come,” Ingo said.
More: www.atc-aviation.com.
Flossie

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NT Express plans to reduce its trans-continental air capacity in an effort to boost profits following its failed sale to UPS earlier this year, which saw the integrator’s value plummet.
Alongside job cuts, the consolidation of many services, and better use of infrastructure, TNT intends ‘optimizing’ its long-haul air capacity, which currently takes in three Boeing 777 Freighters and two 747s.
     “We are exploring opportunities to remove some long-haul capacity,” confirmed a spokesman. “For now, we have block-space agreements with a wide range of counterparts that cover costs.”
     The move is part of a company-wide bid to find €220 million of recurring operational savings by 2015.
     TNT currently uses a combination of commercial and own capacity on intercontinental routes. “We operate four weekly flights to Shanghai using one Boeing 747-400,” he explained. “We operate weekly flights to Hong Kong, Dubai, and New York using our three Boeing 777 planes. Capacity is shared with several counterparts.”
     As part of the new strategy that will see TNT place even more emphasis on Europe for long-term growth, TNT Express’ Liege hub will remain central to its international air network. “[Liege] is closely connected to our European road network,” said the spokesman. “We can further optimize our operations and increase productivity and cost efficiency, but Liege’s central role will remain.
     “The focus on Europe and connecting Europe with the rest of the world is not new. Europe is our core market and revenue contributor.
     “That being said, even excluding Brazil and China domestic, we make about €1.6 billion in revenues outside Europe, so we are truly an international player.
     “The impact on the intercontinental air business comes from the weak and uncertain demand. We need to optimize use of our intercontinental capacity accordingly.”
     Last year the integrator reduced its European air capacity by about 10 percent. Today its service network takes in some 690 flights per week to or from 66 airports.
     “This allows for a competitive intra-European express service with late pick up and early next day delivery,” claimed the spokesman.
     He admitted trading conditions were “challenging,” especially in Europe, with pressure on prices in each service category. However, the firm has seen steady growth in healthcare and even faster growth in lifestyle. “We are also doing well in service logistics,” he added.

     TNT is currently in the process of tying up deals for its domestic businesses in China and Brazil as part of its cost-cutting strategy, but the spokesman insisted restructuring would not impact global customers.
     “We have something unique to offer, starting with our European coverage and wide product offering, from parcels to freight and from express to differed delivery services,” he said. “Whatever ranking you look at, we are in the top three or four integrators.
     “At the same time, we must improve profitability in the context of a challenging economic environment.      The focus on customer service and integrated product offering remains, but we are indeed reshaping our portfolio, simplifying the organization and reducing costs.
     “We’ll also invest €200 million in our network and IT between now and 2015 to improve work processes and customer experience.”
Sky King

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