It isn’t at all inaccurate to describe Saudia Cargo development during the formative years of the twentieth century as pioneering amongst all carriers in the Middle East, past and present, as the Jeddah-based carrier has continually led the way in fielding an all cargo fleet and thinking of cargo as critical to its success in the transportation business.
     But in 2012, during a time of challenging world markets, around the world of air cargo it may also be remembered as a time when Saudi Arabian Cargo went back to basics, opened up a new play book, and changed everything.

     Now with the airline having shortened its name and officially called Saudia, the carrier has stepped out quickly, building its air cargo destinations this year, and is showing no slowdown as 2012 chugs along.
     Earlier this year, SV launched thrice-weekly B747 freighter flights from Benelux to Dubai.
     That move was followed quickly by new freighter services into Frankfurt and Vienna, plus additional freighters twice weekly into Saigon, linking Vietnam with the Middle East and Frankfurt.
     Despite some challenging business in 2012, Mainland China found some worthwhile connections, including MD11F services from Guangzhou (CAN) offering a direct freighter connection to Brussels.
     Currently Saudia operates 180 flights per week (both passenger and all cargo) from the largest manufacturing base in Southern China to destinations in the Middle East, Africa and Europe.
     The pattern of increasing services and connectivity has continued for Saudia Cargo during the first half of 2012 with everything from a third weekly freighter from Dhaka, Bangladesh (DAC – RUH – BRU), where SV Cargo enjoys major market position, to even more freighters into N’Djamena (Chad) that increased to twice weekly via Jeddah.
     Worth noting is that in addition to Accra, Saudia Cargo has established an active presence in the African market, currently flying to Nairobi, Lagos, Addis Ababa, N'djamena, Khartoum and Johannesburg.
     An interesting aspect to the accelerated development at Saudia Cargo is also that 2012 has seen widely publicized new product initiatives, including “Belly Flex,” which utilizes both SVs big passenger and cargo fleet with an interesting, accessible, well-priced cargo option.
     A quick look behind the scenes shows a quartet of top executives at the carrier, including Fahad A. Hammad, Chief Executive Officer; Mohammed Abdulaziz Linjawi, Vice President Cargo Operations; Saud Abdulgader Arab, Vice President Network; and Peter Scholten, Vice President Commercial.
     Together, this group of executives represents over 100 years of service at Saudia; the new person on the block, Scholten, joined the team three years ago after having earned solid credentials in air cargo sales and marketing during 20-plus years at Martinair Cargo.
     We point to Saudia Cargo management, as we noted during our time in Jeddah recently, when we talk about just how well the headquarters’ operation seems to interact with each other, moving about with a sense of purpose and excitement.
     One more thing: these folks seem to genuinely like each other; they can be seen interacting amicably whilst driving new ideas and useful initiatives with what appears to be a genuine team effort.
     Regular readers of FlyingTypers may recall our exclusive coverage direct from Jeddah with Mr. Hammad and Mr. Scholten.
     Here we spend a few moments with Saud A. Arab, Vice President Network.
     As the set-up indicates Mr. Saud is quite busy “Imagineering” and implementing the rapid development and deployment of Saudia aircraft and other resources needed to build the SV air cargo business around the world.
     Mr. Saud began his career with Saudi Arabian Airlines over 30 years ago as Coordinator Airline Association Affairs for IATA.
     His impressive portfolio includes work in both the passenger and cargo sectors of the airline industry.
     He has served at Saudia as Senior Manager Cargo Tariffs & Pricing, General Manager Cargo Sales & Services Systems, GM Cargo Marketing & Sales, and VP Cargo Sales & Marketing.
     Aside from being responsible for the airline, he is actively involved in local IATA initiatives, which is the driving force behind the establishment of the CASS Program in Saudi Arabia and international IATA activities such Tariff, Agency and Services Conferences and IATA cargo policy group.
     Mr. Saud, admits that like the lessons of life, business of air cargo in all capacities is best learned “in touch with people, in meetings face to face, and out on the road in travels around the world is something different to what was studied in college.”
     Mr. Saud participated along with others moving forward the wheels of progress at Saudia Cargo and especially the numbers that drive the global markets the airline serves since cargo was formed into a profit center in 1997.
     He admits that his down-on-the-ground approach also means that he has been able to track progress and project future performances on both a sophisticated set of information metrics, including hard numbers and also touch and feel.
     “Right now, 60 percent of our business is belly lift with 40 percent carried aboard our freighters.
     “Of course, the newer generation aircraft like the B777s are hidden freighters unto themselves with plenty of available lift.
     “But we have experienced continued growth in our all-cargo fleet that corresponds with the growing percentage of cargo carried aboard those aircraft, as we have seen lately to India, where the mix of cargo has been excellent.
     “Looking even further back, we really saw the growth of freighter traffic out of China, as early on that was the traffic we carried to and from the Kingdom.
     “So while we rely on belly lift, our growing network continues to fill up our freighters.
     “Cargo is beautiful work. It is never dull and always changing.
     “You come up with a plan and implement your ideas only to discover that variations and changes in the marketplace require plan adjustments.
     “For example, once upon a time we operated a freighter into Tokyo and Taipei and did quite well with it.
     “By and by, however, business migrated to China, so we repositioned our freighter into Hong Kong, which had been an off-line station.
     “So today, in addition to HKG, we have been serving Shanghai since 2005 and Guangzhou opened up for us in 2007.
     “Now despite some challenges we are thinking about serving some other China destinations, including Chengdu.
     “Elsewhere, we operate a great passenger business into Dhaka.
     “We discovered that even though we could move 18 tons per B747-400 passenger flight, the market demanded more lift, so we added a second freighter, and currently now are operating freighters thrice weekly into Dhaka.
     “So we keep a keen eye on data, adding freighters, and our business grows not only to the Kingdom, but in the case of China the overwhelming amount of tonnage goes via Saudia to Europe.
     “Of course the downward pressure to provide top-notch service and deliver decent rates is a constant whilst competing with other network carriers from China to Europe.
     “So the search for new markets is constant as we are willing to be early and grow with the business.
     “The most important thing you have is data, and of course in many cases realize potential and are willing to grow with the market.
     “Of course, management also needs to have an expansion vision about things, as has been a constant factor here with Mr. Fahad Hammad.”
     In terms of building new stations, Mr. Saud notes that in addition to the aforementioned data studies, on-site visits are critical.
     “Our regional offices are quite helpful, but on-the-ground visits by our staff, and even just basic common sense about staying close to our business concept, is vital.
     “For example, we do a lot of business out of Germany.
     “But our Germany cargo had been trucked to and from the Saudia hub at BRU until March of this year, when we moved to four-times-weekly B747-400F directly into FRA, rather than trucking to connecting flights at BRU.
     “Those flight frequencies will increase, by the way.
     “Shippers want all manner of services, including rates, but high on the list are direct flights.”
     Further, Mr. Saud says that the much publicized night ban at Frankfurt has not impacted Saudia operations much, if at all.
     “We have seen night flight curfews across Europe and elsewhere in the world and we just operate around them.”
     “Looking ahead to the remainder of 2012, we are studying Libya, which has always been a good market, and we are looking at South America. Moscow is also getting larger into our view as Russian business possibilities emerge.
     “We also believe the African markets will continue to grow and are benefitting from our commitment to grow there.
     “Our Johannesburg business and cargo from Nairobi has just been outstanding during the past few years.
     “We started Lagos in 2007 with only 30 tons on the first flight.
     “But our belief in the market was to commit ourselves to growth and development there, and every flight saw tonnage demand as a second weekly flight was added.
     “In 2012, just five years after we began, we are operating into Lagos daily.
     “Saudia will continue to grow and build our cargo program with the belief that we can deliver more to both our business partners and also the airline.”
     We wonder what Mr. Saud would do if he were not in air cargo?
     “It’s a good time to be here,” Mr. Saud A. Arab smiled.
Geoffrey

     Circular No 22/2012 – Customs addressed to All Chief Commissioners of Customs and Central Excise was cut and dry in its bureaucratic fashion, but it has brought cheer to air cargo stakeholders around the country. The circular mentioned that “in order to further facilitate importers and exports, the (Central) Board (of Excise and Customs) has decided to begin on a pilot basis 24/7 Customs clearance with effect from September 1, 2012 at identified air cargo complexes and seaports.”
     Hitherto, clearing of cargo by Customs was performed during fixed office hours. That caused problems with cargo getting stuck at airports or ports. In turn, the delays resulted in the piling up of cargo awaiting clearance.
     The order for the move—a long-standing demand—came directly from Prime Minister Dr. Manmohan Singh’s office. Top trade federation and chambers of commerce had approached the PMO (Prime Minister’s Office) and pointed out the obstacles in the export of goods from airports and seaports. Incidentally, the government asked manufacturers to ensure a 20 percent growth in export volumes.
     The cheer from the air cargo fraternity was not without cause: cargo—and air cargo in particular—was at last receiving more than a cursory glance from the government. Time and again, the demand for round-the-clock Customs at international airports was raised, with the last one coming from the working group that was set up by the Ministry of Civil Aviation to suggest measures for the enhancement of the air cargo logistics industry. The working group went on to suggest that the major hurdle—permitting Customs to work 24/7—had to be overcome. The report also emphasized, “Customs regulations play a key and direct role in defining the regulatory framework and environment for air cargo logistics operations. Speedy and efficient customs clearance translates to efficient air cargo logistics operations resulting in productivity enhancements for the business enterprises, all of which would go a long way in pushing up the competitiveness of Indian trade in general.”
     The four airports that will experience the new Customs hours functioning from the beginning of September are Delhi, Bangalore, Chennai, and Mumbai, while the four seaports where the facility would be available are Chennai, Kolkata, Kandla, Jawaharlal Nehru Port Trust, and Mumbai. Along with Customs clearances, other government agencies like the concerned port/airport authority, Drug Controller, FSSAI (Food Safety and Standards Authority of India), quarantine, etc., along with private players such as custodians, CHAs (Customs House Agents), banks, transporters, etc., would also have to work 24/7 to synchronize with the extended work hours. The initial move would be for four months, after which efforts would be made to start similar operations at other locations.
     Reacting to the order, M. Rafeeque Ahmed, (left) the President of the Federation of Export Organizations (FIEO), commented that the implementation of the order would help in the speedy clearance of import-export shipments. “India’s ranking will also improve as far as ease of doing business in India is concerned,” he said and added that “this trade facilitation measure will definitely encourage the exporters and India will be able to achieve the set export target.”
     Perhaps what is important is that the Chief Commissioners of Customs at the airports and seaports have been asked to send in fortnightly reports with details of imports and exports as well as the number of containers/packages imported or exported in various categories in normal working hours and in extended hours separately.
     The new facility would enhance the air cargo infrastructure. According to Keshav Tanna, (right) former President, Air Cargo Agents Association of India (ACAAI) and presently a member on the association’s Board of Advisors, the lack of efficient infrastructure was the single biggest hurdle to air cargo’s growth. The industry, he pointed out, was doing well but the “authorities have not been forthcoming in providing the necessary infrastructure air cargo demands.” He emphasized the fact that while in most “progressive” countries shipments were cleared within hours, “in India we are still looking at days.” As a result, such delays had a direct impact on the supply chain. Others from ACAAI gave the example of the Mumbai Air Cargo complex.
     Over the last year, Mumbai handled around 5,00,000 tonnes of cargo and since there was a delay in clearances, there were long queues of trucks waiting outside the gates—often for days.
     Forwarders and those dealing directly or indirectly with the Customs authorities are hoping that better days are ahead.
Tirthankar Ghosh

     Every time we think of the once-great Eastern Airlines, a pioneer, USA flag carrier almost forgotten in 2012, thoughts drift back to the large fleet of L-1011s that the airline operated all over the world, but especially up and down the east coast of the USA.
     Once upon a time on the way to Florida, Eastern made it possible to board a big, comfortable, wide-body airplane, eat a meal, watch a movie, and land a couple hours later in Miami.
     Eastern operated from one of the original airline statement buildings at JFK International Airport in New York City, an airplane terminal of interesting design that let the traveller know the journey would be a unique experience.
     Today, Terminal One at JFK stands where EAL once was, while elsewhere at the airport all that remains of that era is the soon-to-be demolished Pan Am (Delta) original oval building, and of course the never-to-be touched landmark TWA Terminal—still standing, although hard to see as it is virtually swamped by light rail, parking garages, and of course a mammoth JetBlue Terminal.
     But at least TWA is still there, unlike the old National Airlines Terminal designed by IM Pei, thoughtlessly destroyed by Port Authority last year despite protests from many quarters.
     Last week, as we looked at Pei’s glass opus at The Louvre in Paris, we couldn’t help but think of the glass airport building he created for JFK International, “The Aviadrome,” carried away in dump trucks.
     Eastern, of course, was also an air cargo airline.
     Eastern Cargo did a lot of things and carried quite a bit of freight.
     For us, the most interesting product the airline devised was called “Cost Cutter.”
     “Cost Cutter” was the brainchild of Jerry Schorr, pictured above with his costcutters; the idea was you could purchase a good-sized cardboard box and EAL would ship as much as could fit inside for less than 50 bucks.
     We used to ship a couple thousand copies of our print publication, Air Cargo News, to Miami, Los Angeles, San Francisco, Chicago, and elsewhere every month, serving the airport cargo areas like a campus newspaper. Our legacy brand was born in 1975.
     Recently we had the good fortune to come back into contact with the last top air cargo executive that served Eastern Airlines.
     Marty Ladimer, (right) who headed up Eastern Cargo fortunes into quite a lively and money-making business until final shutdown of the rest of the carrier in 1991, recalls:
     “During my 30 years with Eastern Airlines I was based at New York’s JFK International Airport.
     “Those were exciting and fantastic times that cannot ever be diminished or forgotten.
     “I had started when Eastern and the industry looked at air cargo as an important part of their revenue that had not been developed.
     “The years that followed were full of growth, advancement, travel, training, new projects, promotion, and great people.
     “I went from school to the U.S. Army with a thirteen-month tour of duty in Korea.
     “But less than one month after discharge, I was working at Eastern Airlines.
     “For me it was unbelievable and I loved every minute, except for the last year, 1991, when we went out of business.
     “After Eastern I found myself and many others from the airline industry out of work.
     “Pan American closed its doors shortly after Eastern, making a job search in a major recession very difficult. Fortunately, as it goes in the air cargo family, over the years I established many contacts and was recommended to several other airlines and start-up airlines.
     “I was a Director of Cargo for an international airline serving Africa, an all-cargo overnight express airline, an ACMI global all cargo airline, and Regional Sales Manager for a worldwide international forwarding company in the Mid-Atlantic region.
     “At one point I relocated from the Northeast to Georgia, where I was asked to work for Delta Air Lines at their headquarters in Atlanta as a contractor and handled special new projects for them.
     “Today we have a home in Mirror Lake, a development thirty minutes west of Atlanta.
     “Our two sons are now both Captains flying for commercial airlines and in May of 2012 we became grandparents.

     “My years in the air cargo industry have been full and rewarding.
     “I did things I never dreamed of doing.
     “I made so many friends, both internationally and domestically in the airline, publishing, trucking, government, and air freight forwarding/courier industry that all enriched my life.
     “My customers and friends as mentioned are still today thought of like family.
     “What stands out the most in memory are close honest relationships with all of these different people working to solve so many different problems in order to lead to our business into growth and expansion.
     “It’s worth recalling in 2012 that half a century ago up until 1978, air cargo was regulated in the USA by the Civil Aeronautics Board (CAB).
     “But after deregulation as CAB dissolved, we had no book of rules to follow especially regarding rates.
     “This was a big bag of worms for all in air cargo, especially those of us calling on customers.
     “Death of CAB was the beginning of ‘spot rates, contract rates’ and other special pricing that dropped both yield and revenue.
     “I remember a customer telling me a competitor quoted ten cents a pound from JFK to LAX and they wanted me to match it.
     “‘I don’t think so,’ was my reply.
     “In contrast I remember Eastern in the 1960s with only propjet aircraft, and 40-plus years later now we see fleets of all cargo aircraft and a major increase in global cargo capacity in combination aircraft.
     “I find it remarkable how the industry has changed and improved technologies via computers, shipment data/tracking, invoicing, claims, training, and so much more.
     “The most important function that hasn’t changed a lot is the person-to-person contact needed to make it all work.
     “What a flight my air cargo experience has been for me.
     “One lasting feeling gained from my years in air cargo pushing back tens of thousands of shipments is that tomorrow is another day and who knows what the future will bring?”
mladimer@aol.com
Geoffrey/Flossie

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