Vol. 10 No. 82                       THE GLOBAL AIR CARGO PUBLICATION OF RECORD SINCE 2001             Monday August 22, 2011

 

 


At the Zeit Conference Logistik and Mobilitat final session "Blue Sky – Contributions of the Airfreight Industry to Sustainable Transportation" left to right, William J. Flynn, President and Chief Executive Officer, Atlas Air Worldwide Holdings, Inc; Karl Ulrich Garnadt, Chairman Lufthansa Cargo; Joschka Fischer; Jens Flottau, Moderator; Aldo Basile, Vice President – Sales Europe, Boeing Commercial Airplanes and Prof. Richard J. Parker, Director of Research and Technology, Rolls-Royce Group.

     He was a heavyweight in German politics as Vice Chancellor and Secretary of State in the Schroeder government between 1998 and 2005.
     Although having officially stepped out of politics the former front man of Germany’s “Green Party” Joschka Fischer is still one of the most prominent of contemporary German politicians.
     A year ago, 1948-born Fischer joined the Spinelli initiative which has tried to bring forward the federalization of the European Union.
     Herr Fischer also acts as Senior Strategic Consultant at Madeleine Albright’s The Albright Group LLC, a Washington-based international consulting enterprise.

     Last Friday the Frankfurt resident delivered his thoughts on how air freight and aviation in total should become a more environmentally friendly and sustainable industry.
     Audience consisted of 220 invitees that attended his presentation at a conference at Rhein-Main Airport celebrating 100 years of air freight in Germany.
     Here are Herr Fischer’s main statements that in the general scheme of how air cargo conferences handle these things, are nothing less than remarkable for clarity and unflinching directness:
     “When I was born there were roughly 2.3 billion people living on earth.
     “Today, mankind has surpassed the seven billion mark and their numbers keep on growing fast.
     “Consequently countries like Brazil, China, India or Russia are getting on the international scenery quite rapidly with inhabitants wanting to share the wealth of the people living in saturated markets.
     “What we currently witness is a growing shift of wealth and power.
     “Should this trend continue, and I don’t see anything stopping it, it will impact this planet’s ecological situation severely.
     “Just think of the vast number of Chinese that are queuing up to buy a car.
     “We have no right to deny these people their desire for individual mobility.
     “But if the vehicles are propelled by combustion engines like ours are today, global warming will accelerate.
     “A logical solution seems to be e-cars that should be developed as fast as possible.
     “This is just a single example but it shows why the transformation of the traditional economy into a system based on ecological principals and sustainability is urgently needed.
     “In case we fail, the price to be paid will be tremendously high, I fear.
     “The Fukushima tragedy further illustrates what I mean.
     “Reacting immediately to the Japanese catastrophe,
     “Germany decided to step out of nuclear energy, which sent the shares of the country’s mighty power plant operators right into the cellar causing a loss of nearly 66 percent of the firm’s total value.
     “Fukushima was not the first atomic debacle as history attests.
     “So the enterprises should have adjusted their strategies much earlier to the existing and growing anti atomic trend instead of clinging stubbornly to easy money earned by utilizing hazardous nuclear power plants.
     “The situation in aviation is, of course different, but basically comparable to occurrences I have just pointed out.
     “To my understanding, what created the industry’s success is now increasingly limiting the entire industry.
     “Regulators, governments, politicians, and the broad public at least in the wealthier western hemisphere will intensify their pressure demanding cleaner skies, less greenhouse gas emissions, and further noise reductions.
     “Not to mention the poor service some airlines are offering their passengers especially on domestic U.S. routes.
     “In other words – your business decisions should be based on sustainable principles even if they might cost a bit more at the beginning.
     “If you follow this path I am absolutely convinced you will harvest the fruits in the years to come by gaining a competitive advantage against those who cling to traditional and old fashioned ways of conducting their cargo and passenger transports.
     “Speaking of the emission trading topic which stirs up the temper of the European airlines I have to admit that I was one of the protagonists during my governmental term that created this scheme.
     “There might be some serious and unsolved questions, but I think benchmarking it would be the wiser answer than totally opposing the trading system.
     “It will be interesting to see and to me, this is an open political question if the EU can withstand the pressure from China and the U.S. which are continuously urging Brussels to completely abolish this issue.
     “Let me close my remarks by shortly addressing the newly built Berlin International Airport (BBI) that will see its first flight soon.
     “I’m wondering why energy efficiency was not an integral component in the decision making process of this facility.
     “In my eyes this is old fashioned thinking lacking the idea of sustainability. I doubt that such negligence will improve the widely existing poor image of the aviation industry.”
Heiner Siegmund

 

Robbie Anderson
President
United Cargo

    Interestingly, I was on the last Continental flight out of EWR on 9/10/01 and I remember sitting in the President's Club commenting how much taller the World Trade Center Buildings were than the Empire State Building. That image will forever be etched in my mind. On the morning of September 11, I was driving out to a Leadership Development Training for my team at Del Lago Resort on Lake Conroe. I remember listening to the initial reports on the radio stating that a "small" plane had accidentally flown into one of the World Trade Center buildings. When I arrived at the training center, everyone was gathered around the TV watching the reports. It was then that the second plane flew into the other building. I immediately left and went home to be with my family.
     Initially, I was in a state of shock and disbelief that something like this could happen! Thoughts vacillated from shock, to sympathy for the victims and, to anger towards the terrorists.
     The most obvious change resulting from 9/11 is the increase in security measures being mandated throughout the supply chain. These changes have added significant costs to the overall transportation of goods, but have also caused modal shifts from air to surface (partly due to increased costs). From the commercial combination carrier perspective, we have lost access to many lines of business—unknown shippers, mail greater than 16 oz., temperature-controlled containers routed beyond a U.S. gateway, etc.      When choosing between air and other modes, customers weigh the benefits of air freight (e.g., speed, security) against the relatively higher costs. So anything that reduces the speed or increases the cost of air freight may lead some customers to go another way.
     Much progress has been made in improving the overall security of air cargo since September 11. Major strides have been made in focusing on risk profiling and differentiating levels of threat assessments, but more needs to be done in this area. The types of cargo screening methods have also improved greatly in the last decade. But as the real threats of terrorism continue to evolve and become more complex, so too do the screening processes need to evolve to stay ahead. Air cargo security continues to evolve from the previous focus on post-tender screening by air carriers toward utilizing a number of different techniques involving participants all along the supply chain (CCSF in the U.S., authorized screening representatives in non-U.S. locations, proposals for risk-based management based on shipper/forwarder data, etc.). This is a necessary change to improve the level of security and to mitigate the cost and speed issues.
     Focus on Global standards for all air freight (i.e. freighter and combination carrier) will help improve security worldwide. We also need to do all we can to promote and support greater harmonization and cooperation between different countries' security agencies.

 

     During the Second World War, it was common for moviegoers in America to jump up and cheer every time an action hero like John Wayne in “The Flying Tigers” shot down the enemy.
     When it was us against them, we recall everybody was thrilled at any indication that the good guys were winning.
     Fast forward to 2011, as Gail Halvorsen, the 91-year-old U.S. Berlin Airlift pilot, is back in his pilot’s uniform standing on a stage with a group of pilots, including the top executives from Lufthansa Cargo.
     The message was clear: although the years have flown by and characters have changed, the good guys are winning again.
     Mighty Lufthansa Cargo is currently surging, awash in profits and opportunities, a dynamic driver of the entire airline, with people from the top down showing no sign of slowing down.
     The scene was the 100 Years of Air Cargo event last week as Lufthansa pulled out all the stops with conference sessions that looked at air cargo yesterday, today & even a bit of tomorrow (story above).
     But Friday night was special: good old fashioned, back thumping, grand banquet time, as a clear, blue sky hour of cocktails and conversation led to a candlelight gathering of old and new friends. The event was punctuated with historical big band charts and air cargo films of yesteryear, speeches and even a charity draw.
     But as usual, the best and most lasting take away were the memories of friends at a really great party.
     “I am doing really well in retirement,” said Klaus Holler, who stepped down last year as Lufthansa Cargo’s top executive in the Americas, (pictured, left with Jean-Peter Jansen, right)
     “Now it’s a question of visits to the grand kids and for them to come and spend time with Birgitte and me – and of course the new custom of trying to figure out which way to turn in the morning,” he smiled.
     “But it was time to move on and this new life gets better every day.”
     Klaus’s old boss and one-time top executive at Lufthansa Cargo, Jean-Peter Jansen, who charted the carriers cargo fortunes during 2000-2006, a time post-9/11 when the business evaporated and changed rapidly, recalled those challenges.
     With not only security, but also fuel and major business issues coloring almost every decision, as Mr. Jansen recalled.
     “What stands out in my mind are the great people who worked their way through some pretty tough times.
     “It’s good to see many of those people tonight and recall how we all pulled together to build a greater Lufthansa Cargo, and how the company has emerged today.”
     Perhaps the greatest (unspoken) contribution of Jansen, who we are pleased to report is still a delightful ebullient personality, was his decision to fall on his sword and sacrifice his own career by leading Lufthansa Cargo into a very early settlement in the ongoing price-fixing scandal, which continues today.
     Good to see Wilhelm Althen, who also led the fortunes of Lufthansa Cargo until 2000. He noted that during his tenure “we were opening all kinds of new routes and destinations across the world, and organizing German Cargo, which pioneered the perishables business for Lufthansa because we saw the great potential of air freight.”
     Mr. Althen, retired and living in Budingen near Seeheim, says he still takes great interest in following air cargo and reads “every issue of FlyingTypers.”
     Looking ahead, Lufthansa Cargo Chairman Karl Ulrich Garnadt, a dedicated leader who is concerned and proactive with environmental issues, also noted his determination to maintaining the growth of big numbers that his company is currently delivering to the airline.
     “We intend to leave our stamp on the international air cargo business in the future and continue writing our success story,” he said.
     “The way ahead hinges, however, on the economic and infrastructural environment in which the industry operates.
     “The threatened ban on night flights at Germany’s major airport in Frankfurt is just one example of the difficult issues facing the airlines.
     “If companies are to invest heavily in infrastructure and modern and efficient aircraft, however, they require planning security,” Mr. Garnadt said.
Geoffrey/Flossie


     Billboarding History… Lufthansa Cargo celebrated “100 years of Air Cargo In Germany” revealing a special cargo graphics package on one of its MD-11 freighters at a hangar party last Thursday in Frankfurt.
     The MD- 11 recalls milestones in the history of Lufthansa Cargo.

 

Remembering Robert Strodel

     The well-known and respected aviation and air cargo expert and executive Robert Strodel passed suddenly in Sharjah, where he worked for Rus Aviation. He apparently died of a heart attack on August 18, just ten days shy of what would have been his 56th birthday (born August 28,1955).
Saleh Al Aroud, Chairman Rus Aviation, said:
     “Robert was our respected friend and colleague, whom we all knew as a nice, generous and frank man, gifted with a great heart and good sense of humor.
    “His death is a great and irretrievable loss for all who knew him.
    “This good man will be always remembered by his friends and colleagues and remain in our hearts for all times.”
    FlyingTypers Heiner Siegmund also recalled Robert Strodel:
    “I first met Robert in 2004 shortly after Etihad was founded.
    “After that we would meet regularly regularly in Abu Dhabi, Dubai or at exhibitions here and there.
    “But at our get-togethers during all the years in all the talks and interviews discussing cargo and aviation matters, Robert was always a steady, reliable source who talked the talk but also walked the walk.
    “Whatever he had talked about during our conversation became reality shortly afterwards.
    “Robert was somebody that we as media people could trust; his words and deeds were not two pairs of shoes.”
    James Hogan, Chief Executive Officer, Etihad Airways said:
    “Robert spent two years with Etihad, serving as Head of Cargo from April 2004 until June 2005, followed by a term as Chief Executive Officer until his departure from Etihad in May 2006.
    “Robert’s contribution to our business in its start-up phase will be remembered by those who worked alongside him.
    “Our thoughts and prayers are with Robert’s family.”
    Austrian-born Robert was a long-time country manager for Lufthansa India, covering both the passenger and cargo business.
    Back in Europe, at the end of the nineties he founded an aviation consultancy in Germany, which brought him in contact with the founders of Etihad.
    He was appointed Etihad’s Head of Cargo at the very start of the airline in 2003 to become CEO shortly afterwards.
    In 2005 Robert left the carrier due to some differences about the future strategy of the airline, co-founding Liwa Air in Dubai together with local partners.
    Later after Liwa folded, Robert joined Sharjah-based charter broker RUS Aviation, where he was responsible for strategic and commercial matters.
Geoffrey/Flossie

 

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RE: 100 Years Of Air Cargo

Geoffrey,

     Great article/series on “100 Years of Air Cargo in Germany.”
     I noticed that you included Gail Halvorsen in the article.
     He and I were on the same podium at Chapman University last November, where we honored the Berlin Air Lift and the fall of the Berlin Wall.
     When I was Chairman of Global Transportation, we brought in a section of the Berlin Wall for Chapman University free of all charges, and it is now enshrined at Chapman University in Orange, California.
     I spoke on how this section of Berlin Wall was brought over, and what went on in the process.
     Gail Halvorsen spoke on how he became the "Candy Bomber" by dropping parachutes of candy to the children while he was landing his C-54 aircraft during Berlin Airlift.
     He is quite a wonderful person, and it was an honor to share the podium with him.
     If any FlyingTypers’ readers are in Southern California, please go to Chapman University and see how they have enshrined this section of the Berlin Wall, as they did a wonderful job in persevering this icon for humanity.
     You will also see my name on a bronze plaque there, which we are honored to mention as modern air cargo helped recall an important era in history for others to share.

All the best,
Guy
Guy Fox, MBA, LCB
President & CEO
Guy Fox & Associates, Inc.

Dear Guy,

     Thanks for writing.
     As Americans we can all be proud of that year, 1948-49, when we financed The Berlin Airlift and largely participated in saving not only Berlin but also Germany and probably the rest of the world as we know it today for freedom.
     And that is what I told the great Gail Halvorsen, a robust 91-years-old, after he recalled piloting the Berlin Airlift Thursday in Frankfurt.
     I am not so certain however of Professor Rainer Gries who was hired by Lufthansa to write a history of “100 Years Of Air Cargo.”
     During sessions in Frankfurt on Thursday discussing air cargo history, Professor Gries dismissed the epoch China India Burma Hump Airlift Operations of The Flying Tigers "as a tiny event."
     The dear Professor's comment points to someone who was either playing to the home town audience or just doesn’t know much about aviation history.
     In 1942, organizing a continued stream of early twin-engine C46 pressurized aircraft operating on a 24/7 basis across one of the highest mountain ranges in the world between Assam, India and Kunming, China after the Burma Road was shut down by the Japanese was in fact a great big deal.
     Airlifting av-gas, tires and other spares and supplies to supply the American AVG or “Flying Tigers” demonstrated to the world the possibilities and capabilities of continued logistical supply from the air and in fact made the idea of the Berlin Airlift possible.
     What may be lost in all of this that Lt. General William H. Tunner who commanded Berlin Airlift prior to that event commanded the China-Burma-India Hump.
     I asked Gail Halvorsen about China India Burma Hump flights and he noted that “Hump” operations were quite hazardous.
     “Flying over the Himalayas in 1942-44 was extremely dangerous and made more difficult by a lack of reliable charts, an absence of radio navigation aids, and very little information about the weather.
          “But Hump operations were the proof of that large scale air cargo operations were feasible, and they cannot be trivialized in any way.”
     “They actually moved nearly 5,500 tons during one day of operations in 1942,” Halvorsen added.
     But Professor Gries’ words are also a wake up call that can only sharpen our sense that history must be preserved and protected by not only those who lived it, but also people like us as well who are dedicated to tell the truth about it.

Best greetings,
Geoffrey


RE: Flying Typers On YouTube

Hi Geoffrey,

     Watched your interview with Nalin Rodrgio of Air Niugini (the video spot) and was a little disappointed by his comments about PX cargo.
     It is nearly impossible to discuss Air Niugini Cargo without mentioning fresh tuna.
     At one time, export of tuna was so valuable to PX that its contribution alone made Japan flights profitable.
     Part of the problem may be that Air Niugini has seen so many expats come and go.
     Mr.Rodrigo also might have mentioned the total lack of domestic transport in the home country other than by air.
     There are no roads between the major cities. The airline provides a vital service.
     There is a large domestic network of about 30 airports between PX and the 3rd level carriers in PNG.
     Today, the country is indeed booming again - but there is concern that it is being exploited and raped.
     The rain forest is being ripped out as are all the resources.
     The seas are being overfished by Japanese factory ships.
     To us, who love the place, it is all rather sad.
     It is a fascinating country-much misunderstood and maligned.
     The hope is that Nalin gets to learn a lot more about the airline and the country.
     Perhaps you should do a feature on the carrier; I am sure it would be interesting.

(Name Withheld)

Dear Name Witheld,

      Thanks for writing.
     Your points are well thought and feel like first-hand observations from someone who loves New Guinea.
     I can tell you from my experience that Nalin Rodrigo is a first-class good fellow and a class act all the way.
     Maybe I should have talked tuna with him. Perhaps the weighty assignment he takes to develop a new air cargo product leaves us some room to continue the conversation again sometime soon.
     In any case, we will attempt to go to New Guinea and report back our observations and thoughts straight from the shoulder and right from the heart.

Best greetings,
Geoffrey

 

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