Vol. 8 No. 99                                                                  WE COVER THE WORLD                                     Thursday September 17, 2009

Bleeding Red
AF-KL To Zap Freighters

     (Exclusive)—ACNFT has learned that Air France Cargo-KLM Cargo may shift their entire fleet of 19 freighters to their Dutch subsidiary Martinair.
     In that case Martinair, that presently operates eleven of its own B747-400Fs and MD-11Fs, would become the world’s biggest freighter operator.
     AF-KLM Cargo however would only market the bellyhold compartments of their passenger fleet.
     The plan is to be implemented within the next two years.
     The aim is at cutting costs since the combined cargo division of Air France and KLM is losing enormous sums of money.
     The losses this year alone from January till the end of June is about €363 million, sources say.
     So far the airline has reacted by idling a number of freighters, reducing frequencies and implementing a cost cutting program that includes the axing of at least 1,500 jobs at the AF/KLM cargo division.
     Despite that effort results so far are unsatisfactory with load factors and yields still trailing last year’s figures. Biggest problem, Air France especially is constantly confronted with is a bloated staff that accounts for nearly 30 percent of the entire costs the airline has.
     By comparison 21st Century airlines such as Emirates and many others average about only 12 % staff costs.
     By shifting the freighter fleet to Martinair this problem can be soothed since the cost basis of the KLM-sprout is substantially lower compared to Air France.
     It is unclear, if not doubtful that jobs will be transferred.
     Further details could be delivered by executives of AF-KLM Cargo next Monday during a press meeting in Amsterdam.
Heiner Siegmund

Bill DeCota Gave
His Life To Aviation

     Aviation Director of JFK, LGA & EWR, Bill DeCota, died of a heart attack on Friday, September 11, 2009.
     Our immediate reaction upon receiving the news was utter disbelief and shock at the terrible irony of Bill dying just eight years after the event that defined his personal and professional life.
     It is my firm belief that Bill DeCota performed the most impressive job of any Aviation Director in history.
     To many, he came on the scene just when he was needed, and departed just as suddenly.
     He was sitting in a hotel room in Montreal, Canada on 9/11/01 watching, as everyone else was watching, the total destruction of everything important to him as the World Trade Center crumbled to the ground on that infamous day.
     Against almost impossible odds of grief and despair, with world economies lurching and wrenching, Bill somehow led and rekindled New York/New Jersey aviation back from the sputtering brink of extinguishment with a 24/7 effort, which continued unabated until last Friday, when he was taken from us.
     Mr. DeCota was a new style of airport executive. He came up through the ranks, was highly visible and always hands on, and he was out there to take the heat.
     Bill DeCota and his Port Authority team transformed JFK/LGA/EWR steadily during the past few years.
     A great example can be found along the four and six-lane highway called the Van Wyk, which leads to JFK. A “Miracle Mile” of cargo sheds lines the main entrance road to JFK International Airport, with Korean Air, JAL Cargo, United and others emerging from the landscape like giant, dramatic butlers awaiting their welcomed guests.
     Bill DeCota was about new beginnings and hope when there was very little of that sentiment floating around.
     “Let us rally around the start of a new season,” he once said, “certain that we are building our business as partners from expanded and renewed airports, ready for a future serving the greatest city in the world."
     Bill DeCota, at a time when we were anxious and frozen with fear, was as welcome as a fresh, warm, summer breeze off of Jamaica Bay.
     The picture here is of Bill in his World Trade Center office.
     The last time I saw him was at the Newark Public Library earlier this year. He looked a bit drawn and weary and perhaps a couple of grams heavier.
     But his sweet smile and gracious decency was always in evidence.
     Warren Kroeppel Manager of LaGuardia Airport told ACN/FT:
     “Bill DeCota was my boss but more importantly he also was my friend. He was brilliant and worked tirelessly for the Port Authority and for the aviation industry as a whole. He led by inspiration and example as we all moved through some very tough times. He cared deeply about his friends and the community and he never lost his humanity, sense of humor and just plain decency. He will be deeply missed.”
     I am convinced that Bill DeCota, who gave so much to aviation, has joined an ever growing list of people who died on 9/11/01 in the World Trade Center attacks. The tragedy has worked like a cancer on many of us, and only those of us who had to live through it, to pull together those around us, truly know what a toll it takes mentally and emotionally. Bill hung on for eight great years, but I personally think it finally claimed him as a victim.
     But Bill will not be remembered for how he died; he will be remembered for what he did to lift all those around him while he lived.
     In that spirit, the memorial emerging in lower Manhattan is a place where Bill will always be.
     He also continues as a spirit of the great airport system he left us.
     “I live quite simply in a small flat near Newark Airport,” he told me eight years ago.
     “Sometimes, early in the morning and also late at night, I like to walk around the facilities and observe how things are going.
     “There is nothing better than hands-on experience, so I am often at LaGuardia, Kennedy and Newark, watching, listening and learning,” Bill said.
     They should really name a big airport building like Terminal Four at JFK in honor of Bill DeCota.
     He’s still there, too.
Geoffrey Arend

Donations may be made in memory of Bill DeCota to the following organization:
Elijah's Promise
211 Livingston Avenue
New Brunswick, NJ 08901

China Three Bases Four Ports

      China’s top economic planning authority, The National Development and Reform Commission, has given the green light to Chongqing’s “Three Bases and Four Ports” logistic investment plan.
      The bases will include a railway container terminal at Tuanjiecun, an airport logistic center at Jiangbei International Airport and a highway logistic base in Banan District. The four ports will consist of waterway terminals based at Cuntan, Guoyuan, Huangqian and the East.
      All in all, the project will cost RMB10 billion with the facilities scheduled to be open by 2020. According to the national government's plans, the city is designed to have a comprehensive logistic network for distribution via railways, waterways, highways and aviation in the upstream area of the Yangtze River.
      Chongqing, one of China’s logistic centers, has long needed to develop its infrastructure. The region’s development has been hindered by its unionization policies that maintain monopolies of local state-owned companies.
      In June, Chongqing's municipal government had announced that it began building a free trade area, the first of its kind to be located deep inland.
      The Cuntan Bonded Area is strategically found between the Cuntan Harbor and the Jiangbei International Airport. The 8.37 square kilometer area will be constructed in three phases, finishing in 2015 with a total investment of an estimated RMB10 billion.
      The first part of the phase should be completed by the end of the year and will include 2.67 square kilometers at a cost of RMB3 billion. Companies investing in the area will be qualified for preferential policies such as tax rebates for exports and free tax for trading within the area.
      Vice Mayor Huang Qifan said the bonded area will help development
      Chongqing’s exports-oriented economy and expedite the opening up of central and western inland cities. Chongqing is a municipality under Sichuan Province. Geographically remote because of its inland location, Chongqing’s industries are oriented for the local market unlike the coastal cities of China.
Gordon Feller

Guest Editorial

Rate Hikes Send Wrong Message

     It is amazing to me to see the present rate situation in the air cargo business. For years cargo rating was exempt from antitrust laws through IATA.
     During that time carriers would agree on tariffs and leave the meeting seeing who could be first to undercut the other in order to gain market share as capacity outpaced tonnage.
     Then as the fuel prices were increasing and airlines were facing bankruptcy the world governments decided to investigate air cargo price fixing, with little understanding of how the air cargo market really worked.
     Now that the fuel prices have appeared to settle out at a much lower rate some major carriers have elected to preannounce extremely large rate increases.
     This appears to be just giving these government investigators more fuel for their cases.
     You have to wonder who is running the show at these carriers.
Bill Boesch

(Editor’s Note)—Bill Boesch is former President of American Airlines Cargo and a genuine air cargo pioneer who dates his time in service back to days as part of John Mahoney’s team at Seaboard World Airways. Today, Mr. Boesch is on assignment in Iraq continuing a heroic effort to heighten professionalism in delivering air cargo support to the troops. In 2008, he was awarded the U.S. Medal of Freedom for this effort of advancing modern logistics discipline to the military.

Enviro Chain At 60 AA Stations

     Envirotainer, the Swedish-based manufacturer of perishables cool containers took American Airlines temperature and awarded accreditation to AA Cargo as its number one Qualified Envirotainer Provider (QEP) in the world.
     What QEP accreditation means is that AA Cargo meets or exceeds standards as defined in current Good Distribution Practices guidance documents set forth by the industry.
     The QEP program was specifically developed at the request of shippers of healthcare products.      
     Envirotainer has developed the training and quality program to acknowledge those service providers that have been certified to manage shipments using the Envirotainer container.
     In preparation for the launch of its cool-chain service ExpediteTCSM, AA Cargo trained more than 3,000 employees worldwide in the practices required to ensure the ongoing integrity of the QEP program.
     American’s service is available throughout its worldwide network, with QEP status at approximately 60 of its key cities capable of handling containers of all sizes, including the RAP container, which is the largest container offered by Envirotainer.
     “The Accreditation is a tribute to the hard work of our employees and colleagues throughout our network,” said Dave Brooks, President of American Airlines Cargo Division.
     “The fact that we have achieved this status at so many worldwide locations is a testament to our commitment to providing the highest standard of service to our customers with temperature-sensitive cargo.”

 

 

 

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 go to: twitter.com/aircargonews


September 16:   Schiphol Air Cargo Business Club (ACBC) October 8 meeting features presentation by DGM at Lake View Cafe New Meerdijk. fritsdubois@saa.com

September 16:   "Current crisis is a blip in the growth trend of air cargo- will not have much of an impact on the globalization of manufacturing," Ram Menen, EK Sky Cargo EVP.

September 16:   Airlines merge or consolidate across borders " could be a lifeline, if the situation gets bloody later this year,” Giovanni Bisignani- IATA.

September 16:   Georgia in tension covention with Russia after its coast guard boats detained a cargo ship carrying fuel from Turkey to Abkhazia.

September 16:   Bahrain Air will buy three A320s down from four originally announced last year, noting international “financial issues".

September 16:   AENA, the Spain airports and air traffic control agency said pax traffic was down 5.5% across Spain in Aug-2009, and cargo was down 17.1%.

September 16:   
IATA said loss to industry from downturn has now passed impact of 9/11 as 2009 negative expected to top USD$11 billion.

September 16:   Muscat Air took delivery of first of seven A330-200s.

September 16:   Bocom China's 5th biggest bank extends $2.2 billion low-cost line of credit to Air China for cash flow, assets expansion etc.

 

Our exclusive series “Women In Air Cargo” asks our readers to send some words and a picture about somebody that you know who is female and has made a difference in air cargo.
  This effort is not limited to just success or failure, it is meant to raise awareness about the legions of unique women who in most cases are unsung heroines in the air cargo industry.
  So write and we will share your story with our readers around the world.


Donna Mullins


Lisa Schoppa