Vol. 7 No. 31                                                  WE COVER THE WORLD                                                  Tuesday March 25, 2008


     They celebrated a ninth annual Air Cargo Association Air Cargo Day at JFK International Airport in New York last week on Thursday March 19.
     At a grand luncheon during the compact one day event, Willie Mercado who serves as top Aer Lingus Cargo executive in USA, although cast in the unlikely role of master of ceremonies, delivered a list of thanks to the many people that helped make this annual touchstone of springtime here a success.
     Willie also led everyone in a simple yet haunting tribute to New York air cargo stalwart and transportation icon Bill Greenway who died on March 7 at 87 years of age.
     But perhaps the most revealing thing that Mr. Mercado said was in a personal public aside when he explained why he continues to serve the club and the air cargo community.
     “They came at me to ask that I serve as ACA Club President and I wanted to hide somewhere,” Willie said.
     “Then I started to think about all the other board members and the people at this airport and how much these folks mean to me and I signed up.”
     At table number three Jim Larsen who held Willie’s post for a record 12 years smiled and said:
     “This is one of the first times I have gotten to eat a meal at one of these air cargo fests.”
     Bob Arens,Willie Mercado and Ginger Priolo in New York; Harold Hagans, Robert Kennedy, Rachel Worley and Kevin Madden in Atlanta; Bettina Hickler, Stephan Haltmayer, Mathias Jakobi in Frankfurt may not be names that you know.
     But all have one thing in common.
     They are people that for months and years put themselves out for the common good, at times irrespective of their own priorities, to support airport cargo communities.
     These people like a thousand more at airports everywhere are the glue that hold the air cargo business together.
     They set up the golf outings and send out the mailers and make the late calls and emails and count the money and pay the caterers and generally bring to everybody the best of the air cargo business.
     Make no mistake about it, the future of the air cargo industry needs good local clubs.
     The 2008 edition of the air cargo annual in New York sold out the hotel ballroom for lunch and filled the narrow display hall with booths with arm to back attendance.
     An early morning panel of several of the usual suspects on the speakers’ circuit talked up subjects such as security, air cargo real estate and handling, India and China future-speak, and other subjects in a breezy two-hour format that allowed for plenty of networking before lunch.
     The event also served to mark the 50th anniversary of the air cargo club although the airport actually opened for business in 1948, when presumably the early Pan Am and other world carriers were carrying some air cargo.
     At that time and forward into the early 1970s more than 80% of all international air cargo traveled overseas from USA via the New York/New Jersey airports.
     Today that number has shriveled to maybe 20%, still sizeable, but in truth a mere shadow of former glory.
     Air cargo traffic at JFK has departed to other USA gateways with growing air services and more aggressive business programs, including facilities development and better highway and rail access.
     It’s worth noting that while many new air cargo terminals appeared at JFK, several carriers at this pioneering cargo airport are still operating out of the ancient first generation facilities.
     Some older cargo buildings including the former Varig and Alitalia cargo sheds sit empty and unused and appear crumbling as the seasons change.
     Elsewhere last Thursday in New York at JFK the conversation on nearly everyone’s lips in addition to uncertainty driven by runaway fuel costs, was about how to cope with the downward pressure of enhanced security and looming 100% screening plus other TSA air cargo mandates and demands.
     But cargo people are nothing if not resilient and always seem ready to launch another set of city pairs and new options aimed getting the goods to market.
     “We are developing great connections via our London to destinations in Europe and into the Middle East including four gateways in Saudi Arabia,” said John Ryan, (left) US CSM at bmi air cargo.
     “Our A330 flights from Las Vegas offer west coast shippers a raft of unique service options beyond London as does our outbound daily Chicago service for east coast and middle America shippers,” Mr. Ryan added.
     “Much of what a carrier can offer can be realized from being inventive with service options while tailoring actual flights to bring air cargo to destinations that others have either overlooked or chosen not to serve,” said Guy Hardy, Head of Cargo Sales, Brussels Airlines.
     The longtime air cargo executive (in photo right) and his colleague in America, Dave Sharma (left) both spoke of the great success Brussels Airlines is realizing moving cargo from destinations around the world via gateway Brussels into Africa.
     “Sabena almost never turned profits but Brussels Airlines is making money both above and below deck with our service,” Dave Sharma added.
     “Once we were hotels and catering and all kinds of asset-driven business,” Guy Hardy recalled.
     “Now we are the default champion of passenger and air cargo service delivery to Africa with flights to Angola, Burundi, Cameroon, D.R. Congo, Gambia, Guinea, Ivory Coast, Kenya, Liberia, Morocco, Rwanda, Senegal, Sierra Leone, Uganda—you name it.”
     Interestingly Brussels Airlines in its rebirthing of Belgium international commercial aviation has chosen not to resume line services into New York.
     “Our code-share with American Airlines is working for us now,” Mr. Sharma said.
     “Africa and our culture for service—Sabena to Brussels Airline—is building our future,” Guy Hardy said.
     “Next will come even more aggressive development including a low cost carrier subsidiary based in Kinshasa with service to several new cities.”
Geoffrey


     Is it feasible for low-cost airlines to carry cargo? That is the question many Indian aviation experts are asking. It does not really matter what the reply will be but SpiceJet, one of India's low-cost airlines has also started looking at the cargo business.      Speaking to Air Cargo News FlyingTypers SpiceJet executive chairman Siddhanta Sharma said: "We are aggressively going behind cargo business. For that we are developing our own infrastructure at various ports, our own x-ray machines and other set up."
     SpiceJet planes have been carrying courier cargo quite a while now and wants to move up the ladder with higher loads. Sharma also said: "Our aircraft can carry about two tons of cargo and we are operating about 120 flights per day, which means we can carry 240 tons every day. We are doing 60-70 tons of courier every day, so we can carry about 180 tons more."
     He also mentioned that SpiceJet was already carrying cargo for the government's postal services – India Post – along with Jet Airways. India Post has leased an Air India Boeing 737-200 to ferry letters and parcels to the less-connected stations of the North-East from Kolkata.
Tirthankar Ghosh



Bill Boesch Wins Medal Of Honor 

    Bill Boesch has been selected to receive the coveted Ellis Island Medal of Honor Award Saturday May 10 in a ceremony to be held on Ellis Island located in New York City Harbor, the historic first landfall for millions of immigrants that populated America
    Ellis Island MOH was established in 1986 to pay tribute to the immigrant experience and individual achievement, and is awarded to U.S. citizens from various ethnic backgrounds.
    The honorees are awarded for showing outstanding qualities in their personal and professional lives, yet maintaining the richness of their particular heritage.
    The United States House of Representatives and the Senate recognize the Ellis Island Medal of Honor, and as such the names of all winners are listed in the Congressional Record.
    The ceremony in the shadow of the famed Statue of Liberty will witness Mr. Boesch joining past winners including nine USA Presidents, and a galaxy of the important world figures of past and present.
    On the half dozen, most outstanding air cargo dreamers and doers ever, Bill Boesch has served transportation for nearly forty years at Seaboard World Airways; as top executive at Pan Am World Airways and also as President of American Airlines Cargo.
    Recently he has been deeply involved in developing air logistics to support the American effort in Iraq.
    “I am deeply moved to receive this great honor.
    “I will accept the award on behalf of my wonderful family and for the two people who brought me up to love and respect America, my father and mother.
    “At the same time I also will never forget the wonderful people who I have known and worked with in air cargo.”
Contact: cargoman@attglobal.net
Geoffrey


Lauda Lauds Luebeck

     "Easy flight, nice landing and a very warm welcome by you people here at the airport," stated Niki Lauda while he climbed out of his Challenger bizz jet to shake hands with the welcome committee that stood in line at the apron of Luebeck Airport in Northern Germany. Lauda had come to Luebeck because of a meeting with local executives from Hermes Versand the logistics pillar of the world's leading multi-channel retailer Otto Versand.
     Prior to the event the three times Formula 1 world champion (Ferrari /
McLaren) gave Air Cargo News Flying Typers a brief interview in the airport's cozy lounge regarding future topics on the agenda of his 2003 established airline NIKI.
     "Yes, we are shaping on plans for long haul flights," revealed Vienna-born
Lauda. "If the outcome of our analysis is positive we will deploy Airbus 330 on routes abandoned by competitor Austrian Airlines," he added. Without however, unwrapping details regarding neither the agenda for any further steps nor the time frame for the maiden flight of NIKI's first intercontinental endeavor. "Fareast and especially China could be proven to be interesting targets", he indicated possible destinations, excluding however, any services to Australia. There, his arch rival AUA had stepped out completely in recent times.
     According to the 59 year old, the A330 makes sense because his NIKI airline could capitalize from the collaboration with Air Berlin, Germany's number two airline after first ranked giant Lufthansa. "There are a lot of synergies such as technical support, aircraft maintenance or the flow of components," he said. A year ago Air Berlin has acquired leisure carrier LTU, which presently operates twelve A330 out of Duesseldorf and Munich.
     Air Berlin is a minority stakeholder (24%) in NIKI. Both airlines coordinate their schedules on short and medium haul flights. "Between Germany and Austria we jointly offer the market about 300 flights per week, thus surpassing Lufthansa and their Star partner AUA", Lauda lauded the mutual well doing proudly in Luebeck.
     Last year his NIKI transported 1.7 million passengers, thus posting 186 million euros revenue and a net profit of 4 million euros. In 2008 he forecasts 2.1 million guests and 220 million euros revenue. NIKI's alliance with Air Berlin accounts for "as much as 15 percent savings since we can use their entire infrastructure, like their IT system, which makes us a very lean enterprise," he said. In fact, he needs only 20 office personnel in his Vienna-based headquarters to run his airline. All in all there are 80 pilots, 160 flight attendants and 43 technicians on NIKI's payroll.
     While the number of passengers grows steadily cargo transports remain a niche product. "We do have some shipments on board but air freight is not a big issue for us," he confirmed. Duesseldorf-based Leisure Cargo a former subsidiary of LTU and member of Air Berlin manages the freight business for the entire Air Berlin group.
Heiner Siegmund

Big Chill For DHL

     DHL said it has a new global partnership with Envirotainer to utilize temperature controlled air cargo containers.
     DHL will use Envirotainer’s specialized equipment for temperature-sensitive shipments worldwide expanding capability in transporting chilled and temperature-sensitive products, such as pharmaceuticals and medical equipment, for the life science and healthcare industry.
     As part of the agreement DHL has added Envirotainer training and audit program across its network, to reach ‘Qualified Envirotainer Provider’ (QEP) status.
     First successful audits have already taken place at several locations.
     Robert Krautheim, President of Life Science and Healthcare at DHL Global Forwarding, commented:
     “This global relationship with Envirotainer supports our initiative to establish dedicated competency centers and regional hubs in the cold chain market which support our customers’ requirements.
     Aligning our DHL programs with Envirotainer’s ‘Qualified Envirotainer Provider’ program means that we can offer the highest levels of quality to our customers, worldwide.”


Pan Am Gets Railroaded

     Or if you live and love long enough you get to seem some pretty strange things!
    The original 1927 Pan Am Corp. (I) went out of business in 1991.
    Early in 1998 Pan Am (II) an attempt by Marty Shugrue to create a premium USA coast-to-coast carrier utilizing three Airbus A300s folded its wings.
    Since then a company called Guilford Transportation that reportedly paid a couple of million bucks for the fabled logo and typeface, has started and stopped an airline called Pan Am on various routes to Florida and elsewhere, from New Hampshire USA without much luck.
    Guilford apparently had been trying to bring back the carrier on a small budget as a regional entity with undoubtedly some hope that the carrier would catch on.
    They might have saved their money.
    For nearly a decade the biggest airplane the company fielded were a couple of ancient B727s supported by a mixed bag of smaller puddle jumper commuter aircraft.
    So now in March 2008 apparently except for some charters aboard the little planes the blue meatball and Pan Am has once again for all intents and purposes been ditched.
    Well almost.
    Turns out Guilford also is in the railway business, owns some rolling stock and has decided to use the famous Pan Am name & logo on some of its box cars.
    Here two Guilford / Pan Am Cargo boxcars are seen above Fresh Pond Road in Ridgewood, New York City.
    Looking at this picture it is worth recalling the absolute battle royal between the railroads and airlines during the 1930’s for passenger business when Pan Am was the biggest USA airline.
    Later as a direct snub to rail travel, Pan Am (I) deliberately built a big ugly skyscraper that to this day straddles Park Avenue in New York City where it lords it over the epoch Grand Central Station, the much beloved railroad terminus.
    Now in 2008 Pan Am railcars are a sad and pitiful last gasp to a great tradition in airline and air cargo history.
Turnabout is fair play some railroad buffs might say.
    We can only imagine what Trippe and Lindbergh are thinking, let alone millions of people most of who by now are senior citizens that grew up in big cities and remote villages around the globe when Pan American was America’s Airline to the World.
    Think I’ll eBay bid on another set of those vintage Clipper Coasters and continue looking at them through a shot glass while dreaming of another time.
(Dedicated to Ed Chism)
Geoffrey