Vol. 10 No. 105                                                                                                                            Monday October 24, 2011

A Conversation With Lisa Brock

     Qantas expects global cargo demand to bounce back next year. So said Lisa Brock, appointed Executive Manager of Qantas Freight in February.
     “There is still some economic uncertainty in global markets, particularly in many European countries and the U.S.,” she told FlyingTypers. “This has meant demand in these regions has been weak.
     “Against this weak demand, we have seen an across-the-board over supply of capacity since November 2010 and most carriers report a decline in volumes over the last six months.
     “We are confident of a recovery in 2012 and are already seeing some positive signs in the lead up to the Christmas peak.”
     She said the strength of the Australian dollar had been a double-edged sword over the last two years. “We have definitely seen an impact on exports ex Australia, particularly with regards to discretionary perishables. Overall, however, I have been relatively pleased with the strength of the Australian export airfreight market given the current conditions.
     “Inbound traffic to Australia has, of course, been strong generally. And while you can’t attribute all of this to the strength of our dollar there is no doubt that it is one of a number of contributing factors.”
     Brock, the driving force behind the division’s growth strategy in her previous position as Head of Commercial Planning and Strategy, expects Qantas Freight, which currently employs approximately 900 people across the globe and generates annual revenues of around AUD1 billion, to continue making strides towards becoming a global leader in the years ahead. The division now markets the bellyhold freight capacity on all Qantas international and the majority of Jetstar brands, including Jetstar International, Jetstar Asia and on Jetstar’s domestic services within New Zealand.
     “The addition of the Jetstar Asia network has significantly expanded our footprint in Asia and given customers on both the 3K and QF networks the opportunity to access new markets,” she said. “We have achieved very solid volumes and a good return from this capacity over the nine months since January.”
Bellyhold capacity is supported with a mix of scheduled and charter freighter services operated by a fleet of one Boeing 767-300F and three wet leased B747-400F. The B767 aircraft was introduced earlier this year and is currently operating six nights a week between Australia and New Zealand.
     “Our B747s are typically operating 5-6 days a week up into Asia and then across to the U.S. before returning home,” explained Brock.
     She said China was a key market for the division with Shanghai used as a hub. “We operate an extensive network of services to and from China including five weekly freighters, Jetstar Asia flights from Singapore and a daily passenger service to Shanghai,” she added.
     “The market ex China into our home market has remained buoyant over the past 12 months.”
     Elsewhere in Asia, Qantas started operating a B747 freighter service between Australia, Korea and Chicago in June 2010 in partnership with a Korean forwarder. Demand is driven by the consumer electronics market primarily to the U.S. where Qantas has a long standing relationship with AA, offering direct flights to the carrier’s DFW hub to enable one stop access throughout the U.S.
     In South East Asia, Qantas remains one of Singapore Changi’s major customers. “Singapore is a major hub for both our Qantas and Jetstar Asia networks,” she said. “From Singapore we service multiple Qantas mainline destinations across Asia, Australia, Europe and the UK and are marketing in excess of 420 weekly Jetstar Asia flights.”
     “In addition to our mainline and freighter capacity we also operate ground handling terminals in Australia and Los Angeles,” said Brock. “We also have investments in number of broader supply chain businesses including a freighter management company with its own air operators certificate (Express Freighters Australia), a trucking business (JETS Transport Express), courier business (Qantas Courier) and Australia’s two leading domestic freight businesses – Star Track Express and Australian Air Express.”
     Earlier this month Qantas rolled out its new iCargo application, part of the company’s ‘Fright Futures’ business transformation plan geared at improving efficiency.
     “There are essentially two parts,” she said. “The deployment of iCargo to replace our legacy IT systems and review of associated business processes to ensure we are getting the most out of our investment.
     “The cutover of the iCargo application in our Australian terminals on 14 September marks the end of the deployment phase. Our global reservations, sales and ULD teams have been using the application successfully since mid 2010 and our Los Angles terminal cutover in August this year.”
     Qantas expects the system to improve shipment transparency and operational efficiency while supporting IATA’s drive for global paperless transactions.
     “The efficiency gains we can deliver for our customers as a carrier will have a flow on effect across the supply chain,” added Brock.

Tulsi Mirchandaney

Olga Pleshakova

Lucy Ntuba

Lina Rutkauskien

Karen Rondino

Iwona Korpalska
Lisa Schoppa

Gloria Whittington

Rachel Humphrey

Jenni Frigger-Latham


Lufthansa's Garnadt Talks Future Post Night Ban

     The German air freight carrier is still ranked in fourth place among the leading airlines, right after Cathay, Korean and Emirates. This position, however, will be lost if the German Federal Administrative Court should endorse the night flight curfew for Frankfurt recently imposed by local judges from the Hessian State.
      “If this worst-case scenario should happen, which I hope it won’t, I don’t see any future growth perspective for Lufthansa Cargo,” stated the carrier’s CEO Karl Ulrich Garnadt at a press meeting in Berlin on Thursday.
      Presuming this situation, main decisions will be reviewed and come under consideration, announced Garnadt.      
      One major topic is the basing of the five B777 freighters LH Cargo expects to be delivered beginning in 2013. If the Federal judges will shut down Rhein-Main at night for good the new Boeing freighters might be operated out of Leipzig/Halle or Cologne. A second issue is the cargo center at Frankfurt that is aging and therefore, scheduled to be built anew. But with no growth perspective at the cargo carrier’s home base the multi-million euro project might not be started or realized at some other airport.
     Garnadt basically confirmed the information exclusively published in Flying Typers (Night Ban Changes Lufthansa Cargo Flights) concerning the adjusted flight schedule commencing end of October. Therefore, two China flights will be cancelled. Five others are shifted to Cologne/Bonn airport for bypassing the Frankfurt curfew. The MD-11 freighters will be fully loaded at Rhein-Main and then depart shortly before the bans starts at 11 pm in a 19 minutes lasting flight to Cologne. There, the aircraft will be parked for four or five hours before continuing their journey via Krasnoyarsk to Shanghai or Guangzhou.
      “This was the only possibility to continue these routes and reduce the harm to some extent that the court’s decision will cause,” Garnadt said. "Bilateral treaties with China and Russia regarding slots and traffic rights (flights over Siberian territory) left us no other choice."
     At Cologne a crew change will be indispensable due to employment laws. “The pilots will take a taxi and drive back to Frankfurt right after landing,” the manager describes what is going to happen as of October 30th.      In order to keep up the U.S. services two freighters will be based at Cologne/Bonn beginning in January. “Then we will have to truck the mass of the shipments from Frankfurt to Cologne, which I consider an economic and ecological disaster, “Garnadt exclaimed. He stressed that his carrier’s entire business model is at stake should the curfew be verified by the Federal judges. In that case the connectivity of goods flown on board of Lufthansa Cargo’s freighter fleet and the carrier’s mighty passenger fleet will be completely disrupted.
      “80 percent of the shipments we transport worldwide pass through Frankfurt." Garnadt warned that if fast transits of goods from passenger to freighter aircraft and vice versa should no longer be possible at the carrier’s hub Rhein-Main the entire biz strategy is ruined.
     Asked about the costs the court’s night flight ban might cause the manager delivered no precise figures but spoke of a “substantial amount.” He did not confirm or deny an estimated loss of annual earnings between 30 and 50 million euros, mentioned by Flying Typers.
     Chief Manager Matthias von Randow (right) of the Federal German Aviation Association (BDL) pointed out that 83 percent of all direct investments take place in surrounding airport areas. According to a survey of this group, 57 percent stated that they would not invest in an area lacking international connectivity both by passenger and freight traffic. 23 percent declared they would shift their branches and subsidiaries to some other location in case air traffic deteriorates substantially at their chosen site. Von Randow said, this analysis indicates that downgrading Frankfurt’s status as outstanding intercontinental hub by a night flight ban will massively damage Germany’s logistics industry and the economy in general.
Heiner Siegmund/Flossie


German Logistics Association Berlin Confab

     Crises in Greece, Portugal, Italy and some other European nations. Not so in Germany where the logistics business especially is setting new records. By year's end, big players like DHL, DB Schenker, Lufthansa Cargo together with roughly 60,000 medium sized and smaller enterprises offering different transport solutions will turn over €220 billion euros.
      "Thus, the logistics industry will surpass the figures of the pre-crises year 2008," stated Raimund Klinkner, CEO of the German Logistics Association at their annual convention in Berlin. And the outlook is bright, too, with an estimated annual growth rate around five percent until 2014, predicts the Association.
      Currently roughly 2.8 million people are working in this field, with their numbers steadily increasing. But Klinkner warned: There aren’t sufficient applicants vying to start a career in this business, since "logistics is not projecting a 'sexy' image, as compared to the automotive industry" he said. Therefore, enterprises have to come up with new employee-friendly offers and incentives to attract the younger generation to a career at a forwarding agency, cargo airline or integrator.
      Mounting challenges like increasing security regulations, IT processes and hurdles set by state authorities are making processes increasingly complex. To cope with these challenges, enterprises should intensify their cooperation instead of sticking to a stand-alone philosophy, Klinkner suggested.
      Asked about the night flight curfews at Frankfurt airport the manager said that Germany has to be vigilant, if the country's infrastructure should be further crippled, not to move to the status of an underdeveloped country.
Heiner Siegmund /Sabiha



RE: Frankfurt Airport Night Flight Ban Causes Uproar

     Reading about Frankfurt Airport….
     People who complained about Boston Logan International Airport were bought out.
     But a few refused the buy out and now live at the airport.

Lewis B. Sckolnick
Rector Press Limited, Est. New York 1920

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