Vol. 8 No. 94                                                                  WE COVER THE WORLD                                 Wednesday September 2, 2009

Veli Rings The Bell For Lufthansa

     Just across the way from the fabled Hangar One at LAX that provided backdrop for the 1942 Bogart movie "Casablanca" is Lufthansa Cargo.
     Upstairs with a bird's-eye view of the old building and of Lufthansa western USA cargo fortunes is the office of Veli Polat, regional director West Coast, Mexico and Central America.
     The operation here is comfortable and businesslike with cargo sales & service including reservations.
     Everything is California laid back with the noticeable exception of a bright brass ship's bell that sits quietly with its lanyard at the ready.
     The bell is rung every once in a while— each time the office reaches another 1000 kilos flown of the carrier's super cargo product TDFlash.
     Veli worked on development of the time definite product so maybe the bell unlocks a special sense of satisfaction in the boss as well as the troops.
     But as it turns out, Veli and his crew at LAX are the real bright work around here, humping freight and delivering bell ringing customer service more often than not.
     Veli Polat will tell you his love of the business includes the smell of Jet-A in the morning.
     His easy interaction inside the place of business gives some clue to why, as determination and civility seemingly works well here even in these tough times.
     Veli is a good and decent human being, on the ball and looking for business all the time.
     But he is also able to bring a sensibility and balance to the task perhaps in part from his native Turkey.
     Interestingly Veli started as a management trainee at Lufthansa in Germany and then in what he describes as “the thrill of my life” was stationed by the airline in his native land where he made his reputation as a top-notch manager.
     Later he served as manager for Russia & CIS where he scored high points.
     “I was in Russia for four years and three winters,” Veli smiles.
     As Summer 2009 is ending, Veli Polat looks ahead to an air cargo business ever brightening.
     That’s something to ring a bell about.
Geoffrey

     China will spend USD64 billion to build 97 new airports throughout the country by 2020.
     The ambitious plan will nearly double the number of airports available for commercial use to 244 by 2020, up from 147 at the end of 2006.
     During the next twenty years, China predicts that its air transportation passenger volume will grow 8.5 percent annually, becoming the world’s second-largest aviation market. Rapid airport construction, a continuing influx of international tourists into China driven by the ever-present threat of terrorism, and the growing need to provide safety to air passengers, have led the national level General Administration of Civil Aviation of China (CAAC) to place greater emphasis on the integration of effective security planning as part of the nation’s aviation sector development.
     The airport security equipment market is projected to grow substantially.
     Most of the major new airports to be built over the next two decades will be in Asia and the Middle East, with China being the number one growth market. China will spend USD$64 billion to build 97 new airports throughout the country by 2020, with a second international airport to be started in Beijing with the next few years, according to information provided by CAAC. The ambitious plan to nearly double the number of airports is more than rhetoric: construction of 45 airports is already underway which will increase the number of airports to 192 by 2010. By 2020 some 82 out of every 100 people in China will live within 100 km or 90 minutes drive from an airport, up from 61 today. The 244 airports are grouped into five categories, serving different purposes:
          1.  North and Northeast China will have 54 airports, including 24 Greenfield projects anchored by Beijing Capital International Airport. Beijing Capital will strengthen its status as an international air hub.
          2.  East China will have 49 airports, including 12 new construction projects, anchored by Shanghai Pudong airport. Pudong will also fortify its status as an international hub.
          3.  South and Central China will have 39 airports after 14 new projects are completed, centered around Guangzhou Baiyun. Baiyun will continue its development as an international hub.
          4.  Southwest China will have 52 airports, including 21 to be built. The new Kunming airport is to be fostered as the regional gateway linking China with ASEAN members, and Chengdu Shuangliu International Airport will be the regional hub airport.
          5.  Northwest China will have 50 airports, with 26 new airports. Urumqi airport is to be the regional gateway linking China to Central Asia.
     In 2007, total passenger traffic in China reached 388 million passengers, increasing 16.8% from 2006. Of that, Beijing Capital International Airport handled 53.5 million passengers, Shanghai Pudong airport handled 28.92 million passengers, and Guangzhou Baiyun airport handled 30.96 million passengers. The other airports including Chengdu, Kunming, Chongqing, Shenzhen, Xian and so on handled over more than 10 million passengers.
     Owing to the global financial storm, the Chinese central government issued a stimulus plan outlining a total investment of RMB4 trillion (USD585.6 billion) for infrastructure projects across the country. In 2009, the CAAC will get RMB100 billion (USD14.6 billion) for the 22 key airport construction including Tianjing Binhai airport expansion, Shanghai Hongqiao Airport expansion, Urumqi Diwobao airport expansion, Kunming new airport construction, Shenzhen Baoan airport expansion, Chengdu Shuangliu airport expansion and Hefei new airport construction, among others.
     With this growing number of airports and levels of air traffic, aviation security is a high priority for CAAC, both on the national and regional level. The government has highlighted the aviation industry in its 10th Five-Year Plan stating that China will speed up airport infrastructure construction, improve airport systems, upgrade air- traffic control facilities and enhance supporting construction. CAAC is taking this opportunity to incorporate increased security measures into the aviation sector.
     On December 10, 2007, CAAC issued a special policy for civil airport operation security management, and it went into effect on February 1, 2008. All airports are addressing implementation by installing the necessary security equipment and products.
     The major security product segments are fire & explosives detection (explosives detection, X-ray & infrared equipment and metal detectors), perimeter & access control equipment (perimeter control, biometrics equipment, and alarms & sensors), monitoring equipment (digital surveillance, intercom & video door phones, and CCTV) and others.
     China airport development is growing very rapidly. This growth is led by the big three, Beijing Capital, Shanghai Pudong and Guangzhou Baiyun, which saw the greatest increase in passenger traffic, cargo traffic and aircraft landing from 2006 to 2007.
     The central government announced the “National Airport Allocation Plan” in January 2008, According to CAAC, USD$64 billion will be required to complete the entire project. The underdeveloped western provinces and regions will be the main beneficiaries of the development program. The majority of funding will come from local governments, while private investment from both within and outside China would be expected in the future as governments look to share development risks with the private sector.
     Driven by the ever-present threat of terrorism, and the growing need to provide safety to air passengers, the world airport security equipment market is projected to reach USD131.7 billion by the year 2010 according to a report by Global Industry Analysts, Inc. U.S. companies seeking to expand in the China airport security equipment market can look forward to bright prospects. China is paying increasing attention to this critical area under growing pressure to comply with international security standards and regulations. Aviation security regulations are becoming more stringent, forcing airports in China to upgrade their security systems with a view to meeting global standards.
     The China airport security equipment market is currently in its growth phase, fuelled by increasing demand from governments as well as airports. The rising demand seen in China is primarily due to growing pressure from other countries to comply with global security standards and regulations. China is set for massive expansion in airport construction, making the issue of airport security more critical than ever before. Growth in tourism as well as in air cargo volume is also expected to upgrade the security technology at existing major airports to improve safety and efficiency. Much of the security demand is likely to focus on high-tech equipment such as fire & explosives detection (explosives detection, X-ray & infrared equipment, & metal detectors), perimeter & access control equipment (perimeter control, biometrics equipment, & alarms & sensors), monitoring equipment (digital surveillance, intercom & video door phones, & CCTV) and others.
     Leading global and regional players operating in the industry include:  Assa Abloy AB, Bioscrypt Inc, BioWise N.V., Bosch Security Systems GmbH, GE Security Inc., Group 4 Securicor plc, Honeywell International Inc., L-1 Identity Solutions Inc., L-3 Communications Holdings Inc, Raytheon Company, Siemens AG, Thermo Fisher Scientific Inc., EyeTicket Corp., Geoquip Ltd, Future Fibre Technologies Pty Ltd, Dartagnan Biometric Solutions, Electronics Corporation of India Limited, and Magal Security Systems Ltd., and so on.
China Airport Security Development
     One key local company, Tshinghua Tongfang, is also entering this sector.
     The General Administration of Civil Aviation of China (CAAC) is in charge of civil aviation affairs of China. Key buyers of new equipment and services in the near-term will be the airport groups located in different cities of China. All of the groups are under the management of the local government. The main airport groups are: Capital Airport Group located in Beijing, Shanghai Airport Group, Guangdong Airport Group, Yunnan Airport Group, Sichuan Provincial Airport Group, China West Airport Group located in Xian, Chongqing Airport Group, Xinjiang Airport Group and so on.
     The Chinese government has no special restriction on its own companies with regard to buying advanced airport security technology and equipment on the international market.
Gordon Feller

 

SIS Settles On Web

    Once upon a title SIS meant Shipping Infective Substances.
Welcome to 2009 where the worldwide web gives the SIS moniker a whole new meaning (we hope) now as Simplified Interline Settlement.
    International Air Transport Association (IATA) in a deal with Kale Consultants is bringing its industry-wide interline settlement platform Simplified Interline Settlement (SIS) initiative.
    According to Tom Murphy, IATA’s Senior Vice President for Industry Distribution and Financial Services, “SIS modernizes the interline settlement platform and simplifies industry processes while saving about USD $500 million annually.”
    As the technology partner and outsourced solution provider, IATA expects Kale to deliver high quality solutions on time and on budget.
    Three years in the making, SIS will be expected to handle more than a million invoices per year lifting the weight on 300+ airlines, supporting over 3,000 users around the globe and facilitating settlement of approximately USD$50 bn a year for the industry.
Tirthankar Ghosh

Bermuda On My Mind

     Gone are the days when Bermuda exported thousands of bushels of onions and potatoes and fresh cut roses, agriculture on the 21-square mile Atlantic island gem having given way to condo and other commercial development.
     This November when Bermuda hosts the Airport Council International World Assembly November 1 - 4, 2010 visitors will arrive at L.F. Wade International Airport named in honor of L. Frederick Wade, a past leader of the Progressive Labor Party.
     At Wade International, air cargo growth remains steady due in large part to the efforts of Canada’s Cargojet, which operates 5 weekly flights Monday through Friday utilizing 727-200 aircraft.
      According to Cargojet’s Vice President International and Strategic Development, Gord Johnston, (below) the operation has been quite successful since inception of service in November of 2005.
     “Bermuda is predominately an in-bound market but we also have considerable courier services which we handle as a consolidator for UPS/DHL/FedEx and IBC.
     “We operate from Newark to Bermuda in the mornings and return in the early evening back to Newark, providing reliable connecting services to the major cargo operators' worldwide systems,” Johnston said.
     British Airways is the only wide-body operator serving Bermuda from London Gatwick as U.S. carriers have added frequencies, but downgraded from wide-bodies to narrow-bodies to provide more frequent services to the Island noted Bermuda's L.F. Wade International Airport General Manager Aaron Adderley who has hopes of building a state-of-the-art new terminal within 7 years if funding is secured.
     Pan Am and Imperial Airways (British Airways) put Bermuda on the air map in 1937 and the Island has been heavily reliant on its air connections ever since. Big news on the tourism front was the opening this spring of Tuckers Point Hotel and Spa, a deluxe property on the site of the legendary Castle Harbour Hotel. Major investors in the project are Ed and Charlie Trippe, sons of Pan Am's iconic Juan Trippe who bought the property over 50 years ago.
Jeff Kriendler

Preview Of Coming Attractions

      Got a minute?
      Just as Summer ’09 slips away perishables get a lift and a September to remember in a new video (click to view) from American Airlines Cargo for its ExpediteTC product.
      Here the action is the message raising some heat without losing any cool.
      In a tough year AA ExpediteTC Perishables feels good because it is good.
      And not a caped crusader in sight.

 

 

Air Cargo News FlyingTypers leads the way again as the world’s first air cargo publication to connect the industry to the broadly expanding and interactive base for social commentary—Twitter.
     Here are updates from Twitter so far this week. To be added to this 24/7/365 service at no-charge contact: acntwitter@aircargonews.com

September 1:   Dropping 20,000 gallons at 600 mph, Evergreen B747 SuperTankers aircraft originally tasked for air cargo are fighting California wildfires.

September 1:   Airline biz neg $6 billion first half. Pax & cargo growing again IATA says. Cargo capacity utilization at 47.6% from 40% in Jan. Rates down 20%.

September 1:   Incheon International Airport funds green ULD now being tested by UPS, Korean Air & Asiana Cargo. ULD 40% lighter than steel ULDs.

September 1:   In Ft. Lauderdale, USA Amerijet Cargo on strike since last Thursday is laying off cargo to others for backlog of perishables & time critical.