Vol. 11 No. 90                                                                                                          Monday September 17, 2012

air cargo news September 17, 2012

 

     How do we plan to keep SWISS Cargo profitable during these times?
     One thing which is not changing is the formula for sustainable business and profitability: reduce costs and increase revenues.
     We can be proud that our airline (and our cargo business) are amongst the most profitable anywhere.
     We have tightened entry conditions and improved revenue.
     We have worked very hard internally and with our suppliers to reduce costs and streamline processes.
     We have increased the productivity of our overheads.
     This is all to the good and has given us the edge over the competition which we enjoy.
     Maybe it would be nice to relax for once and enjoy the fruits of our labour.

     But our industry as a whole remains grossly inefficient: with all the complexity with which we are faced, we often make matters worse: shippers who used to conclude long term contracts with the forwarder of their choice now make half-a-dozen phone calls to get the best rate for the smallest shipment. The forwarders in turn do the same with half-a-dozen airlines.
     After this ludicrous procedure, a deal is finally done.
     If the forwarder is lucky, she gets more than a bunch of papers or a scan from the shipper. If the airline is lucky, a correct and complete and unique FWB is sent by the forwarder. And as none of us are really lucky, we still have to deal with regulators who are rapidly introducing new procedures and only starting to coordinate them with each other and recognize each other’s regimes.
     In other words, we still have a mountain to climb to make our industry and air-supply chains lean, efficient and reliable.
     I therefore appeal to all senior executives to weigh in with their knowledge and skills in their local markets and globally to facilitate and accelerate the adoption of e-commerce and join the efforts of TIACA and GACAG to coordinate this huge, urgent and ambitious agenda.


     U.S. Homeland Security Secretary Janet Napolitano showed up at that International Civil Aviation Organization (ICAO) Security Conference last week in Montreal and went straight for the jugular urging that standards and practices be defined for air cargo and mail screening shipping.
     The U.S. top security chief also urged the adoption of universal and standardized airport audit programs; clear definition of integrated security rules at air, land and sea border points; harmonization of norms for immigration, customs and aviation security and regulatory agencies; plus adoption of smart cards and other travel documents that are replacing passports.
     “We recognize the value of privacy. But that can be counterbalanced as well by the simple exchange of information that is in the possession of airlines,” Napolitano said.
     ICAO is expected to call for a security vote on various proposals amongst the full 190 member states sometime in October.

     The Montreal encounter gave Sultan Bin Saeed Al Mansouri, UAE Minister of Economy and Chairman of General Civil Aviation Authority, about as much as he could wish to handle as chairman of the gathering as fiery U.S. critic and Cesar Chavez operative Elsa Gutiérrez Graffe, Venezuela’s Minister of Air and Aquatic Transportation urged ICAO to search its “collective conscience for international collaboration rather than just rubber stamping U.S. proposals”.
     “The ICAO session unfolded much the way such large meetings always do — with many similar speeches, acronyms and inside jargon,” said The Montreal Gazette reviewing the event.
Geoffrey

Peter Scholten Saudia Cargo Jeddah Africa

     Back to work after a break last month, Peter Scholten recaps a super summer 2012 and looks ahead to the busy new season.
     Right now Peter Scholten, VP Commercial Saudia Cargo, is at work, part of a dedicated and determined team that is building Saudia Cargo for one of the great, pioneering, legacy carriers of the world.
     Saudia Cargo is on the move, and with one of the largest passenger and cargo fleets on the planet, it is well underway to becoming a global force to be reckoned with.
     “Our top priority was the smooth handling of the massive air cargo peak to Saudia Arabia during the Ramadan and EID season.
     “Saudia Cargo experienced cargo tonnage growth of 40 percent compared to last year.
     “Now that the festive season is finished we can look back at some challenging moments in our warehouses (particularly in Riyadh)—warehouses filled with import cargo to maximum capacity.
     “We managed this year's peak much better than the years previous on import cargo and had no major service failures on our transit and export cargo.
     “That said we all know that right now the air cargo business is very challenging.
     “There is strong competition on any international lane that we operate in the world and the volumes are mostly down.
     “The global cargo market volumes are in decline while capacity is growing.
     “Markets that are the exceptions are exports to Saudi Arabia from all regions in our network, and Asia to Middle East and Africa.
     “For the remainder of the year we anticipate that the global cargo market will not show any significant changes compared to the same period of 2011.
     “The overcapacity in many markets will continue to put pressure on rates.
     “Saudia Cargo is serious about cargo.
     “As a separate company, cargo is our core business; it is the only thing we do.
     “With 13 freighters we offer the largest freighter fleet of the Middle East carriers and sell the belly capacity on 145 aircraft serving the Saudia passenger network of 85 destinations.
     “Offering that mix of freighters, belly, and trucking services, our effective network adds up to 225 destinations via our 3 main hubs in DMM, RUH, and JED.
     “So we feel good about ourselves and that feeling is reflected by our service partners and other clients telling us that they also are experiencing Saudia Cargo improving the services around the world and in the main hubs in Saudi Arabia.
     “The feedback we get is that we are making progress in catching up with the service levels of our competition; it is both quite satisfying and also driving our customers to continually growing their business with us.
     “They say they support Saudia Cargo because they believe that the company will be amongst the top cargo airlines in the future and will survive any market situation.
     “We are growing our ad hoc charter business with triple digit percentages and see strong demand between Europe, Middle East, Asia, and Africa on various routes between these regions.
     “Our geographic location is perfectly positioned to capture a big trunk of the unpredictable charter business.
     “From September 2012 onwards we will have two B747-200 aircraft available for the ad hoc charter market.
     “I am proud of the fact we are growing our business in a declining market with tremendous competition.
     “We are getting huge support from the major forwarders and climbing fast on their respective carrier rankings.
     “That we are the global market leader to Saudi Arabia might not come as a surprise, but that Saudia Cargo became the market leader with daily B747 freighters to Lagos is something many industry experts wouldn't have predicted 2 years ago.”
Geoffrey/Flossie

Get On Board Air Cargo News FlyingTypers
For A Free Subscription
Click Here To Subscribe

 

Abigail Tana Calogi IT

     Meet Abigail Tana – Senior Sales Executive at CALOGI Dubai.
     Abigail joined Calogi as Senior Sales Executive back in May 2008:
     “It was my passion for internet technology that triggered the change in the course of my career.
     “When I saw the position advertised in the Emirates Group Careers portal, I had my eyes set on it.
     “I told myself that I have to have that job. And so I did.
     “I have always believed that the job was meant for me, as the selection process went on really quick and smoothly.
     “But even before Emirates, back in early 2000s, I had the opportunity to work with SQ as an Admin Assistant in their MNL Town Office.
     “SQ had both passenger and cargo flights, but I initially didn’t have much exposure to cargo since their office was at the terminal.
     “But then, whenever I would consolidate the monthly marketing reports, it never failed to interest me as to how the game works.
     “I had one female colleague at that time who had been transferred to Cargo Sales from Passenger Sales who said that it was a welcome change and she’s happy with it.
     “Now given this opportunity by Calogi, it actually satisfies two of my present ‘thirsts’… passion for technology, and to be a person of authority in this field.
     “I’ve always loved to compete where men usually play well.
     “I always tell my male colleagues that being a female in this field is more advantageous than just being one of the boys.
     “My constant reply when asked why is, I can be a man and a lady at the same time, while you guys can’t.
     “Personally, it gives me a different feeling whenever I do well or my work is appreciated.
     “It’s the same feeling I get whenever I score a point in a very crucial Ultimate Frisbee match, where men are usually the ones getting the opportunity to score.
     “Or when a home-cooked meal satisfies my husband and his friends and they can’t get over it for days.
     “My husband being stationed in Bagram, Afghanistan, leaves me a lot of time for myself—a regular week will be 5 days work, with Monday and Wednesday evenings and Friday and Saturday late afternoons until sundown spent playing Ultimate Frisbee and Beach Ultimate respectively.
     “All other days are spent at home doing house chores, cooking, entertaining friends, or just by simply being online for work updates or social networking.”
Geoffrey

 

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
Click On Image Below To Access

FT091012

FT091412