Vol. 7  No. 66                                         WE COVER THE WORLD                                                            Monday June 23, 2008

Phoenix MK Cargo Rises

     Like the Phoenix, British air cargo operator MK Airlines Ltd. rose up from the ashes and resumed flights today (Friday May 20).
     Air Cargo News FlyingTypers received confirmation of this from a high-ranking manager of Swiss logistics company Panalpina. Background of the carrier's second life after MK had grounded their fleet some days ago (ACN FT reported exclusively) will be given Monday or Tuesday next week pending on the approval of the new majority owner.
     According to sources close to MK the savior of the carrier is a British-based investor that secured the cargo airline's take-off by injecting fresh money.
     Founder and CEO Mike Kruger will keep his seat at the carrier's top management ranks, ACN FT learned.
     Newly-born MK will mostly serve routes within Africa, between Europe and Africa as well as Far East and Europe.      "Although they have an aging fleet of eight B747-200Fs and even an old kerosene consuming DC-8F they can be
profitable on the long run if they streamline some processes and become somewhat more efficient," Panalpina's executive said.
     "In a way they have the spirit of old German Cargo, the forerunner of Lufthansa Cargo," he added.
     One of the first flights of 'Phoenix' MK goes from Urumchi in Northwest China to Parchim airport in Germany and on to Luxembourg this Sunday.
     This has been announced by both Panalpina and Jonathan Pang, chairman of Chinese LinkGlobal Logistics.
     Meanwhile LinkGlobal and Australian asset manager Goodman announced at the commercial property “Expansion Fair” held last week June 18-19 in Hamburg, Germany that they teamed up to enhance Parchim airport by building logistics facilities and bringing in cargo traffic.
     This includes the payment of €13 million Euros to the owner of the airport, the county of Parchim in Northeast Germany.
     After the county receives the money the airport will officially be transferred from public ownership to the property of Chinese LinkGlobal Logistics.
Heiner Siegmund

Security Headlines IATA BKK

     When the issue is air cargo security, it might not be a bad thing for the industry to view the topic as those outside the commercial aviation industry see it.
     Truth is that many people in every day life believe that air cargo on airplanes is vulnerable.
     While a good portion of that notion is based on misinformation, like it or not in 2008, the air cargo industry is huge with complex supply chains as freight forwarders, integrators and air carriers strive to open new revenue streams and grow market share.in an increasingly competitive, low yield, environment.
     In Bangkok September 17-19 at IATA’s Fourth Cargo Claims & Loss Conference air cargo security will be front and center as IATA Head of Cargo Security, John Edwards speaks.
     Interestingly the last CC&L gathering was held just last February 2007, so we suppose the fact that the group is again meeting is clear indication that finally the fate of developing standards and broad based industry understanding through enlightened security discussion will not be relegated to some session-empty venue at a otherwise mostly commercial industry trade show somewhere.
     John Edwards puts it this way:
     “Many industry stakeholders are familiar with politically driven proposals to screen 100% of cargo prior to its uplift on a commercial flight. There is lots of confusion about what this means. For example, does it include known shippers or not? If not, then “most experts agree that, even if this is desirable (and many believe it is not) there is, for competent security, no silver bullet.
     The case for harmonization of requirements, which are, so far as is practical, internationally recognized and accepted, appears to be strong.
     “We know from experience that it is unrealistic to target harmonization of complete national programs.
     “The cultural, political and practical obstacles are simply too large.
     “But we also know, from EU initiatives and from various other rulemaking, that when the industry speaks with one voice, it has a much better chance to be heard.
     “Collectively the industry has the strength and influence to enhance regulatory thinking and development, and it must exploit this.
     “Harmonization historically has primarily been regional and focused on detailed security program requirements.
     “They have not been based on a cohesive industry harmonization strategy nor adequately coordinated.
     To offer a solution, IATA Cargo is developing a Secure Freight Program, which aims to establish global supply chain standards for aviation security and crime prevention. It will be based on a quality assurance program and audit, for which we hope to gain recognition from regulators and stakeholders alike. “At the last CC&L we advanced thinking and cooperation in several areas.
     “In Bangkok we expect to update our progress and continue to seek common ground for even more dramatic advancement in the future.”
     He points to this from the U.S. Congressional Research Service released in February 2008.
     "It is estimated that direct losses due to cargo theft across all transportation modes total between $10 and $30 billion annually in the United States.
     “The large range in this estimate reflects the fact that cargo theft has not been a specific crime category and therefore reliable statistics are unavailable."
     Later the report continues, "In addition to theft, smuggling is a problem for air cargo security.
     “Smuggling operations are often linked to organized crime, and may provide support for terrorist activities.”
     Likewise TAPA, The Transported Asset Protection Association brings forward some numbers worth examining.
     During 2005, 21 incidents with a loss value of €9,070,069 Euros were reported.
     By 2006 that number had risen to 33 incidents with a loss value of €4,773.
     “Secure Freight is a developing concept to address remaining vulnerabilities from terrorism and crime in a collaborative effort to defeat the common enemy.
     “The air cargo industry has a compelling business motive to protect its longevity –by ensuring it is a fast, reliable, secure means of moving freight globally –and a moral duty to safeguard human life.
     “It must tackle head-on the remaining vulnerabilities within cargo security and address crime.
     “There is an expectation that the industry will take ownership of its own aviation security issues.
     “What is needed is a global voluntary supply chain security quality assurance program intended to address vulnerabilities.
     “Also needed are effective regulatory programs that would be universally recognized “We want to establish a Secure Freight Steering Group and Work Groups to develop specific program elements and importantly, ensure the views of industry stakeholders are properly considered.”
Geoffrey



Rewarding Experience

    Spanair takes the prize at Munich Airport.
    Peter Trautmann, the COO of FMG, the Munich Airport operating company presented Spanair’s Ramon Ferre (left) with the MUC Exchange Award 2008 for delivering a 182 percent gain last year in passengers flying to and from Munich while increasing its number of take-offs and landings by 155 percent.

  

Best Wurst Time At ACD

     Air Cargo Club Deutschland (ACD), the Frankfurt pioneer organization now 45 years in service, ended the first half of the year with a June barbecue.
     CEO Carsten Spohr showed up for the event that also turned into something of a roast as the erstwhile Spohr mastered the longest question & answer session in memory.
     ACD members and guests–whether representing a shipper, a logistics provider, an airline or an airport, here and everywhere else, are deeply troubled by the astronomic prices for jet fuel, the recession in some regions of the global market and security and other challenges as air cargo marks the mid point of 2008. The guest speaker delivered a “Status Quo-Outlook?” presentation that certainly went all the way to assure the audience that Lufthansa Cargo leadership is aware of and addressing a host of market-driven situations with an eye to prevailing.
     Spohr spoke to concerns amongst some of the forwarders about the special nature of that Lufthansa/DHL joint venture recently announced and staffed with aircraft called “AeroLogic.”
     Carsten Spohr said:
     “Look, Deutsche Post/ DHL is our biggest account.
     “Sometimes that adds up to the need for capacity that as a scheduled carrier we cannot provide at a moment’s notice.
     “In any case the set up was driven in an open bid fashion.
     “Cargolux and Emirates bid for this arrangement that might not have been called AeroLogic but certainly would have carried a similar title.
     “We feel that it is better Lufthansa Cargo is the partner rather than one of the others.”
     In Mr. Spohr’s presentation, the high service quality standard was described including security elements and the importance given to the entire ground operation.
     “Lufthansa Cargo believes that the quality difference among cargo carriers is really performance on the ground and not in the air.”
     What was impressive here, as the session continued, was that today in 2008 the highest level of management of an airline puts its present status and future plans and features out for all to see and respond to in kind.
     No topic remained untouched as Carsten Spohr spoke.
     The thought occurred that this eloquent, sharp and winning personality, out making friends for cargo might also be raising options for his future at Lufthansa Group.
Guenter Mosler

How HI Is Hamburg?

     The livery is a birthday present from 10 year-old leisure carrier Hamburg International (HI) to its hometown of Hamburg. HI presented a brand new Airbus A319 all in red and blue—the traditional colors of the 1200-year old Hanseatic metropolis in Northern Germany. "This Airbus not only visualizes our proud history of 10 years at the tail ("10 Jahre") but is moreover an ambassador for both our company and the city of Hamburg," remarked commercial director Ralph Ullman of HI during the presentation of the new craft at the Airbus plant in Hamburg where it was built. In the coming months the A319 will land at all 16 German airports HI is presently serving and bring passengers from there to destinations around the Mediterranean Sea, the Red Sea and the Canary Isles.
     The Hamburg-based Airbus production plant just announced the first components for the future A320 China-made aircraft will leave the port of Hamburg on June 24 by ocean vessel. They will be shipped to Tianjin near Beijing where the European plane maker is presently building an assembly plant for the A320, the first ever outside France and Germany.
Heiner Siegmund

Supersonic Business On Tap

 
Wing, tail and empennage effects on proposed business SST pictured here are reminiscent of the dainty, butterfly-like 1910 Demoiselle monoplane that famed aviation pioneer Santos Dumont flew at speed races and around the Eiffel Tower at 55 mph., thrilling millions.

     Anybody who thinks aviation may just go away what with high fuel costs should take a reality check from Reno, Nevada-based USA corporation Aerion that has been accepting orders for the Aerion supersonic business jet.
     As you read this, Aerion says it has received more than 40 letters of intent backed up by refundable deposits of $250,000.
     At a price of $80 million per aircraft, the total backlog stands at more than $3 billion.
     “Just two and a half years ago our market research indicated a market for 300 supersonic jets over 10 years,” noted Aerion Vice Chairman Brian Barents, “but that survey did not even include demand from countries such as India, China and Russia.
     “If anything, we have underestimated global demand.”
     Barents pointed to five orders secured by marketing agent ExecuJet in India alone as an indication of an emerging market demand.
     Aerion says it has also secured orders in Pakistan, The Middle East, Europe, North America and South America.
     Barents pointed to growing demand at the top of the business jet market.
     A supersonic jet is now not far in price from subsonic alternatives, which is giving more companies an incentive to consider the Aerion jet.
     Aerion says it expects to certify the supersonic jet as planned in 2014.
www.aerioncorp.com