IATA Cargo Looks Ahead To
2010
 Exclusive)—Aleks
Popovich is IATA’s first head of air cargo.
For the studious executive who radiates
energy and vitality to take on a great world resource from atop a newly
assigned position was one thing a couple years ago, as right out of
the gate Aleks vowed change and innovation would be the rule and key
driver of a newly refreshed IATA Cargo approach.
But amidst strong moves to include everybody
and streamline the process came the most devastating economic downturn
since memory of these things.
But despite all of the bad news, IATA
Cargo has delivered for the world cargo community with new ideas and
programs and perhaps above all by being in the right places at the right
times.
This is not your grandfather’s IATA
in fact by getting closer than ever before to the industry, IATA Cargo
in these times has been acting as a kind of a sanctuary for air cargo
people wondering what the hell is next, with its World Cargo Symposium
this past year in Bangkok and its CNS Partnership Conference held last
May in Carlsbad, California.
How well has Aleks Popovich handled his
job as IATA Head of Cargo?
Well just a few months ago, he was upped
by IATA to the powerful post of Senior Vice President for Industry Distribution
and Financial Services.
At this point no new HOC has been named
so Aleks, we assume will be wearing two hats (or robes) for a while—
something, as these things go, we can all probably be grateful to learn.
So what’s next and what lies ahead
for air cargo?
Upcoming World Cargo Symposium in Vancouver
next March 8-11, 2010 will answer many questions and pose some new ones.
If you have not gotten the message yet,
here is the chance to co-mingle with people out to better air cargo—period.
Meantime we share some thoughts from Aleks
gained during a recent conversation as 2009 closes.
ACNFT:
How would you describe the situation in global air cargo right now?
AP: Fragile,
but improving. In September 2009, demand for international cargo was
5.4% down on what was a weak September 2008, with load factors returning
to pre-crisis levels at 50.8%. While demand has been slowly coming back
it's far too early to call this a recovery. Yields continue to be a
major cause for concern and the industry has to hold its nerve in learning
how best to match capacity with demand. The passenger business has never
watched air cargo as closely as it does now. Air cargo is a key indicator
for world trade. World trade is a key indicator for premium travel.
Premium travel is a key component of profitability for air passenger
transport.
ACNFT: What
impact has the ongoing downturn/recovery had on the hopes and plans
that you have set forth for air cargo including paperless/ Cargo 2000/CNS/
Environment etc., in terms of schedules?
AP: It's certainly
been tough in terms of pressure on industry resource, but what is most
satisfying is that the air cargo industry has seized the opportunity
of this crisis to reshape its future. For example, we remain on track
to beat our year end 2009 e-freight targets from our IATA Board of Governors
of having implemented a total of 23 e-freight locations / countries
and a total 44 e-freight airports. Currently our e-freight project has
22 airlines and over 170 forwarder participants.
Last week CNS had a great Customer Advisory
Board meeting in Miami with commitments made to ramp up CASS domestics
for the USA, and further steps to build CNS profile in the U.S. trucking
industry.
ACNFT: What
lies ahead in terms of IATA Cargo priorities?
AP: We have
three top industry priorities for 2010
1.
Protect the air cargo industry’s money.
Over
USD$28 billion of the industry's money flows through our CASS system
and we must continue to ensure that this money is protected despite
the pressures of the current recession on airlines, agents, and banks.
With a CASS default rate of less than 0.02%, the message is that we
are sustaining the quality of our CASS operation. During 2010 we expect
to have passed the 100 mark in new CASS operations (i.e. exports, imports,
domestics), with most of these having been delivered in the last five
years.
2. Deliver
air cargo supply chain transformation.
We
aim to deliver our e-freight mandate from the IATA Board of Governors
by implementing the e-freight standard in a total of 44 countries /
locations and 76 airports.
We
also aim to have piloted Secure Freight in Malaysia and extended to
other pilot locations.
3.
Deliver air cargo supply chain standards.
A
major push during 2009 as part of e-freight, has been implementing standards
to eliminate the need for the paper Air WayBill. This work is the result
of a strong FIATA - IATA cooperative effort, and the e-AWB has been
recently endorsed as an IATA-recommended practice. We are currently
awaiting U.S. Department of Transportation approval of the e-AWB Model
Agreement. During 2010, as part of our e-freight program we aim to promote
industry-wide implementation of the e-AWB. We will also continue to
extend XML standards to apply to more e-freight documents.
During
2010 we plan to extend our e-freight standard operating process to include
Secure Freight.
ACNFT: New
initiatives?
AP: While we
certainly need to focus what is already on our plate, we are also looking
for new ways of drive further industry benefit. A potential area of
opportunity may be simplifying the business of industry air cargo tariff
distribution.
ACNFT: Please
describe agenda and importance of IATA World Cargo Symposium March 8-11
2010 Vancouver next year?
AP: The theme
of the fourth IATA World Cargo Symposium will be: "Bounce Back
- Rebuild for the Future".
The agenda will include a plenary focusing
on assessing when and how our industry will bounce back, followed by
14 topical tracks covering: Cargo Executive Summit, Economic Outlook,
e-freight, Quality (Cargo 2000), Secure Freight, Customs, GHAs, Distribution,
Revenue Optimization, Environment, Dangerous Goods, Air Mail, Time and
Temperature, and ULD Management.
Why participate? Well it's one cargo
event in our industry where commitments are made to improve the state
of the air cargo industry, and promises are delivered for reporting
at the following year's event. If you want something to happen for the
good of the industry - then be there and make your challenge. You could
find it on the list of IATA Cargo actions for 2010.
ACNFT: What
is the value to the great “middle class” of air cargo -
that group being small companies and also middle management to attend
this conference?
AP: Scanning
the wide range of our topical tracks, you can be sure we have carefully
designed the World Cargo Symposium to respond to the needs of "all
classes" of air cargo, including shipper, forwarder, carrier, GHA
or customs operation with roles from these organizations ranging from
executive to operational subject matter expert.
ACNFT: Recently
it was announced that you have been upped in terms of responsibilities
at IATA.
AP: On 1 October
of this year, I took on the position of Senior Vice President Industry
Distribution, and Financial Services, for Passenger and Cargo, reporting
directly to IATA Director General and CEO, Giovanni Bisignani. My priorities
in this role will include:
• Quality
Operations Integrity: managing US$350 billion of industry money flowing
through IATA BSP and CASS, Clearing House, and Currency Clearance Services.
• Delivering
Quality of our operations at lower cost.
• New
and renewed products and services enabling further benefit to air transport.
• Simplifying
the Business: Setting new standards to transform the value chain for
both passenger and cargo.
ACNFT: Will
you remain active at WCS and also hands on generally speaking?
AP: You can
be sure I will be present and active at WCS, supporting the new IATA
Global Head of Cargo and his / her IATA Cargo team.
ACNFT: What
are you looking for in terms of a new IATA Head of Cargo?
AP: My successor
will need energy, drive, be a great people person and possess in abundance
the "Edison Factor" (1% inspiration and 99% perspiration!).
ACNFT: When
will the announcement be made of a replacement and might that person
be a woman?
AP: The search
is well underway and candidates are now being interviewed. I'd like
my successor to have a good transition, being able to take full charge
of the next IATA World Cargo Symposium in Vancouver in March 2010.
ACNFT: What
are your feelings at this time after having started up so much for IATA
air cargo now that you are moving on. Are you satisfied that the programs
you started are prospering?
AP: Yes. It's
great that within our e-freight program we have overcome many of the
obstacles that have been put before us. Some of these by the way have
turned out to be long standing myths in the air cargo industry! Of course
- still a long way to go. But it's not just been e-freight, I take great
pride that with CASS (our credibility ticket to the air cargo industry
table) we have sustained the quality whilst accelerating the expansion
to nearly 100 operations worldwide.
ACNFT: Any
regrets or something given another chance that you wish you have done
differently?
AP: I wish I
had spent more time much earlier with the real customer of the air cargo
supply chain, rather than looking at the challenge from purely the carrier
or even the forwarder side. In the cargo supply chain you really figure
out what are the best things to be done when you stop facing each other
and start facing the customer!
ACNFT: What
must air cargo do to fulfill its promise?
AP: The top
promise to fulfill is that to the end customer of the supply chain.
Such customers want on time delivery, quality (consistency), visibility,
and all at the right price. The best action air cargo can take is industry
action to deliver the customer promise, and that's what drives the IATA
Cargo agenda.
ACNFT: What
can everyday air cargo people do in practice to better the industry?
AP: Focus on
the customer. See above. Stop looking back and giving all the reasons
why industry changes can't be done!
ACNFT: You
have a wife and young children as many others who labor in air cargo
also experience. How do you balance your grueling schedule and job demands
with family life?
AP: It’s
not easy. But when you're with your wife and family - this time is the
most precious - make sure you are completely all there!
ACNFT: Any
rules or advice to pass along?
AP: Your spouse
and family come first. Whoever or whatever you are at work, at home
it really carries little weight. Your real job is to be a good husband
and father.
ACNFT: Would
you encourage your children to consider an aviation career?
AP: Well, my
four-year-old boy is determined to be a thuggish footballer, and my
two girls able gymnasts and pianists - so let's just say that right
now aviation is an exciting fallback option for all of them!
Geoffrey
|
We
keep thinking about the unexpected death of head of U.S. Transportation
Security Administration cargo division Ed Kelly, December 4.
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.
December
15: Delta boss Richard Anderson sees room for more airline
consolidation ,”but it remains to be seen what this administration's
take will be.”
