“Economic uncertainty is having a significant effect on the overall market worldwide,” said newly named Delta Chief Cargo Officer Tony Charaf in an exclusive interview with FlyingTypers.
     As ACF Atlanta opens October 2, Delta Cargo will stand tall at an event featuring the great airlines of the world, with a thoroughly tested chief executive and an old cargo pro to boot (Tony commanded DL Cargo a decade ago) now at the helm of an ambitious, aggressive, growing enterprise with all kinds of big plans for the future.

     Tony, as we remember him, was always a great interview. Today he does not disappoint, going foursquare at the issues without flinching a bit.
     “From a CTM perspective, Delta continues to outperform the industry with a five-point margin year-over-year through August. Excess capacity and declining freight volumes are creating yield pressures in the market.
     “Delta’s global network insulates us somewhat, because we are able to maintain and grow volume in areas that are not experiencing market weakness.
     “Examples would be U.S. export and domestic freight, which offset some of the lag we are seeing in markets that are experiencing more weakness, such as China, Japan, and Europe.
     “Our mail product is doing exceptionally well for us, with significant year-over-year increases, and that is continuing to grow.
     “In terms of looking ahead, certainly we know that air freight will continue to play a vital role in global trade. The 2012 IATA survey lacks consensus regarding cargo growth.
     “And if you look at the demand models for both the passenger and cargo operations, there is also no clear picture as to how long this uncertainty will last.
     “Worldwide economic conditions have caused contraction in the cargo industry in particular.
     “Additionally, competition is keen, which means that we have to work even harder to grow our business.
     “To this point, we are focused on making it easier for customers to do business with us by offering the products and services they most need while providing a consistently reliable operation that they can count on for every shipment.”
     But down on the bottom line, where every flight lands and in the future takes off, Tony feels quite confident saying:
     “Delta has the best momentum in the industry, with financial improvements driven by strong year-over-year gains in revenue.
     “Cargo plays a key role in Delta’s overall corporate profitability, and the company remains fully committed to our cargo operation.
     “We are making strategic investments in customer service, operations, the network, facilities and products to make Delta the airline of choice for high-value customers. Maintaining a laser focus on our operational reliability will be a key to success
     “Our fleet restructuring initiative will increase revenue and lower costs.
     “We are reducing our regional jet fleet by 200 or more 50-seat aircraft by 2015.
     “Delta will backfill this by a combination of new and used aircraft, including Boeing 717s, MD90s, 737-900ERs and some two-class regional jets. “This will provide additional cargo capacity in these markets, which we will use primarily for increasing mail volume and express freight.
     “Delta is taking the lead at New York-LaGuardia with the largest airport expansion in 40 years, growing the operation to 260 daily flights with service to 47 of the top 50 business markets.
     “This also provides more options for cargo customers for their shipments to and from New York, including time-sensitive, express, same-day shipments.
     “For the cargo division, we are focused on operational integrity, building on the improvements we have made while streamlining our processes and measuring results.
     “Simplifying our business is another focus area as we look forward.
     “In less than a year, Delta Cargo has become the Number 1 carrier, as measured by IATA, in adopting e-freight processes.
     “Eliminating paper from our business drives more efficient processes while improving the accuracy of data.
     “We have made a significant investment in a dedicated website—deltacargo.com—and will be migrating to this new, more robust platform by the first quarter of 2013.
     “The first phase will introduce improved design and navigation, enhance shipment tracking capabilities, and will be available in three languages in addition to English: Spanish, German, and Japanese.
     “All of this supports our goal to make it easier for customers to do business with Delta Cargo.
     “We are also privileged to have a very strong joint venture operation with Air France-KLM and Alitalia that includes transatlantic antitrust immunity.
     “Our teams work closely together to leverage the added value customers enjoy, provided by our strong joint network opportunities.”
Geoffrey

     Today sets some kind of milestone for big air cargo events, as The International Air Cargo Association (TIACA) opens its big show in Atlanta, Georgia.
     We spoke to TIACA Secretary General Daniel Fernandez, who has been on the job since 1999 and at this point is the longest serving Sec. Gen. to hold the position at any major air cargo industry group in history.
     “ACF 2012 will be the largest Air Cargo Forum & Exposition in our history and it also marks the 50th anniversary of the event.
     “It is also significant that we should be returning to Atlanta because the first ever ACF took place here in 1962.
     “The level of support for the event in terms of exhibitors, delegates, and sponsors is especially encouraging in the tough economic climate the industry continues to face.
     “However, for any companies looking to cement existing customer relationships or look for new business development opportunities, ACF provides a captive audience of leaders from every part of the air cargo supply chain, so with executives from some 100 countries in the space of three days you can achieve a lot in one location.
     “Our conference registrations are strong as well so we are anticipating a big attendance.
     “This has been boosted by the quality of our speakers and panelists, who are top executives from business leaders such as Delta Air Lines, UPS, Atlas Air Worldwide Holdings, CEVA Logistics, Lufthansa Cargo, and Coca-Cola.
     “We also have senior representatives from the Transportation Security Administration, Customs & Border Protection, and the International Civil Aviation Organization.
     “In 2012, the Forum offers a further bonus for visitors and that is its co-location at the Georgia World Congress Center with the Council of Supply Chain Management Professionals’ Annual Global Conference, the supply chain’s premier event.
     “We’ve made arrangements for their delegates to attend ACF 2012 and vice versa and together we expect to have some 8,000 customers and suppliers involved in the supply chain under one roof in Atlanta.
     “We’re particularly excited about this because CSCMP attracts a strong audience of shippers and forwarders to complement the TIACA audience.
     “We have also encouraged other groups to join us in Atlanta and received strong support.
     “For instance, the US CBP and TSA are holding an ACAS Industry-Government meeting during ACF 2012, and Cargo 2000 is having a board and members’ meeting in Atlanta to coincide with the event.
     “Keynote Speaker at the ACF in Atlanta will be Ray LaHood, (left) U.S. Secretary of Transportation.
     “This is a great recognition of the air cargo industry’s importance to the U.S. economy in terms of supporting trade and employment.
     “I am sure all of our delegates will be very interested in what Secretary LaHood has to say.
     “Our first session will emphasize the dynamics between the needs of the customer and the air cargo supply chain and is moderated by Ali Velshi, Chief Business Correspondent of CNN.
     “As I said, this panel will include top executives from Delta Airlines, UPS, CEVA Logitics, Atlas Air Worldwide Holdings, and Coca-Cola.
     “Session two will tackle ‘Collaboration for Smart Security: Government and Industry Working Together’ and will be debated by TSA, CBP, ICAO, and Lufthansa Cargo in a discussion moderated by Brandon Fried of the Airforwarders’ Association.
     “It’s up to everyone to get the most from the great opportunity ACF 2012 provides.
     “When I go to a trade show, I always look at the exhibitors in advance and set priorities for whom I want to see during the event.
     “I also try to set up as many meetings in advance because people’s schedules get so full at these events.
     “TIACA delegates can use our free-of-charge Air Logistics Network to login and find out who’s attending ACF 2012 and develop a schedule of meetings with other attendees before actually arriving in Atlanta.
     “This is a smart, time management move and helps make sure you achieve your targets.
     “Going to a big event like this is a fast and cost-efficient way to do business if you plan properly.”
     Softspoken, sometimes quiet, and always introspective, Daniel Fernandez moved to his post at TIACA after the untimely death of Garth Davies.

On The Road Again—TIACA Secretary General Daniel Fernandez (c) with TIACA Trustee members, Sanjiv Edwards, (left) Associate Vice President (Commercial) Delhi International Airport Limited, and Madhav Kulshreshtha (right).

     Previously, Daniel had served in a key post at the big, influential Miami World Trade Center as VP Operations.
     He recalls:
     “You always learn something new with every position.
     “Although I had a background in international trade and trade shows with the Hong Kong Trade Development Council, it was with the World Trade Center’s Air Cargo Americas show that I became familiar with the air cargo industry specifically.
     “When I joined TIACA we were a much smaller organization with a vision for becoming a strong voice for the industry.
     “Today I believe we are well on our way with the progress we have made, especially in the last few years.
     “I am the first to admit that there’s always much more we need to do but we are gaining greater recognition at a regulatory level now and that is increasing our influence.
     “The caliber of the people serving on our Board is an indication that TIACA has become a credible and effective means for air cargo leaders to make a difference that benefits the industry.
     “But it must be said that TIACA is a collaborative effort, so it’s not the sole work of any one person.
     “I have been privileged though the years to have worked with so many of the very best and brightest individuals, and TIACA has prospered.
     “I think we have consistently demonstrated our ability to bring the industry together and now we are bringing more regulatory bodies to the table to listen to the views, ideas, and concerns of the air cargo industry.
     “TIACA membership has grown to nearly 600 companies in 2012—its highest level ever —and ACF 2012 will once again prove to be the premier air cargo industry event.
     “Something else that stands out in terms of progress is the creation of the Global Air Cargo Advisory Group (GACAG) with our partners IATA, FIATA, and Global Shippers’ Forum.
     “This was formed at our last Air Cargo Forum in Amsterdam at the end of 2010 to deal with new challenges facing our industry, and the progress the GACAG is making is very encouraging.
     “Often the work is out of the public eye in terms of building close working relationships with government departments and regulatory bodies.
     “TIACA is proud, as the facilitator of GACAG, to be taking a vital role on behalf of that group.
     “TIACA has a well defined and clear set of objectives; specifically, harmonization of air cargo security and customs standards.
     “Both of these are so important to the far greater adoption of e-commerce—another priority, along with environmental regulations.
     “In terms of future ACF locations, in 2014 we will be in Seoul, hosted by Incheon International Airport, and this will be a great venue for our delegates given Seoul’s prominence as an air cargo hub.
     “As for the longer-term, we are always open to approaches from potential hosts. It might be an ambitious and upcoming airport that wants to put itself on the world air cargo map, or one of the world’s top cargo hub cities that wants to reinforce its standing in the industry.
     “Historically, the ACF has rotated between the Americas, Asia, and Europe in that order.
     “So, as example to some that might view or wonder when there might be a South American venue, it would have to be no earlier than 2018.
     “Today TIACA has matured from an organization that was primarily providing great networking events for its members to a credible advocate for the industry.
     “Security and environmental regulations aimed at the air cargo industry increasingly merit our attention and efforts in bringing about sensible policies that will not negatively impact the global air cargo industry.
     “The face of our industry is changing rapidly.
     “Emerging markets in the developing world are fueling growth for our industry.
     “Technology has allowed many new companies to rapidly enter and compete. TIACA is actively reaching out to these companies mainly in the BRIC countries. For example we have engaged representation in China and India to better engage with new members and regulatory authorities.
     “But we still put on the best trade show in the world!”
     Daniel Fernandez says that his travel schedule is not fixed, but varies with “the needs of our worldwide membership and our own agenda.
     “I attend other trade shows and industry events to meet our members in person and to increase awareness of the Association.”
     In terms of which city (ies) are favorites, Daniel says “London because of its rich history, although Rome would be a very close second.”
     If given the opportunity to speak personally to each attendee of ACF 2012, Daniel would have some great things to say.
     “In Atlanta, TIACA and CSCMP expect to welcome some 8,000 senior executives from across the global air cargo supply chain.
     “This is a unique opportunity to listen to what’s going on in our industry, to network, to meet customers, and to find new business opportunities.
     “Most of our delegates come for all three days, but even if you can only spare a day, it will be a very wise investment of your time and I am confident you will be back for longer at the next ACF.
     “I would also like to take this opportunity to thank our excellent hosts, Hartsfield-Jackson Atlanta International Airport, and our host committee of H-JAIA, Delta Air Lines, UPS, and Metro Atlanta Chamber for putting on what I know will be a fantastic three days and an outstanding commercial for the airport and the City of Atlanta.
     To that we add thanks to Daniel, a most consummate professional, someone who makes the work look easy.
     Many people around the world are lifted by his great work and legacy of steady, decent service to air cargo.
Geoffrey/Sabiha

     Do you ever wonder what happens in those smoke filled rooms, out of public view?
     Well, since almost no one smokes anymore (except maybe Mr. Ed), we’ll have to take our talks out in the clear air, like we did when we sat down with Pradeep Kumar, Emirates’ Senior Vice President, Cargo Revenue Optimization & Systems.
     Pradeep, who is usually out of the spotlight, is a founding member of the cargo division of Emirates Airline, back when it was formed in 1985.
     As a think-tank member of the cargo organization, Pradeep has been a factor in business development, designing new product ranges and short/long term business strategies to achieve set revenue objectives.
     Pradeep is usually somewhere with senior management and directors, making strategic decisions in order to achieve the corporate vision and departmental business objectives.
     Here we get up close to this most gracious and interesting air cargo executive and ask what has become our go-to question: Where Do We Go From Here?

     “We are experiencing a sustained period of flat market conditions and with consumer demand in the West seemingly at an all-time low, production in the east has dipped and as a consequence the global cargo industry is facing a challenging time. Europe and the US are the areas to be impacted the most.
     “We are cautiously optimistic about the end of the financial year, however the EU crisis is creating a lot of uncertainty in the markets.
     “Hopefully the U.S. will emerge stronger from the elections and there will be a boost in consumer confidence there, which would spark some life into the industry globally. Beyond that it is hard to tell.
     “As the markets become more intertwined and interlinked, the situation in one market can have a ripple effect through the network, making it harder and harder to make reasonable forecasts.
     “In terms of continuing to turn a profit, our freighters allow us to be agile and react quickly to market demands, while in some instances we have redeployed belly-hold capacity on routes to markets that are more buoyant.
     “Having said that, we have a long-term outlook and remain committed to our growth strategy, continually expanding our fleet and route network.
     “Emirates has 220 aircraft on order and by the end of 2012 we will have added 15 new routes in the calendar year, each one creating new trade lanes and opportunities for businesses to generate new international trade.

     If Jo Frigger, CEO & President of EMO Trans, were not a smart, grounded, successful business leader with a deft touch and a growing enterprise (and very little time to slow down), he could probably get a job as poster boy for the quintessential self-made, straight shooting, air freight forwarder in the world today.
     He has worked and thought about what it takes to be successful since he was a little boy, more than six decades ago in Germany.
     Today Jo is worlds away, but ask him about that other time in his life and he still recalls waiting on line with his Mom for a forty Mark handout given to people in 1948 Cologne, just after Gotterdammerung. As a little boy his world fell down all around him; everything lay in ruin, and the Reich marks money was worthless.
     "We were unable to even purchase a loaf of bread," he recalls.
     But when times are tough, the tough, it turns out, do get going.
     "I vowed to never get on another line again," he laughs.
     Jo says the experience taught him, among other things, to always own real estate.
     "Within a day after the money handout in 1948, the shops that were barren and empty opened for business again with everything your heart might desire.”
     Today Jo is debt free, atop a successful company that fosters hard work while allowing time for reflection, even during this 2012 year of challenges.
     “Uncertainty prevails, as this year has mixed results, and the global economy remains unstable.
     “But there is no doubt that air cargo during the next few years can be viewed in quite a positive manner.
     “In point of fact, not only will the future burn bright for air cargo, but also transportation in general.
     “So I can say in October 2012, to us at EMO Trans the path ahead is quite clear:
     “We will continue to invest in new markets at home and abroad!”
     There is a subtle humor, a quick smile, and a rock hard toughness about Jo Frigger.
     “EMO Trans began providing professional air freight services in Germany in 1965.
     "Since that time, our capabilities have expanded to include virtually every facet of worldwide shipping.
     “I can say quite frankly when it comes to the cycle of things—from boom to bust and somewhere in between— we have seen it all in our time in this business, now numbering over 40 years.
     “Of course, each case is different and the measure of impact on people and businesses can never be taken lightly.
     “So we move ahead just as we have before, providing reliable and consistent service to our customers and good relationships to our vendors.
Geoffrey/Sabiha

Dear Geoffrey,

     I was asked via e-mail to confirm my subscription to FlyingTypers/Air Cargo News. Unfortunately, the form does not propose the country I am living in as an option, and therefore it is not possible for me to confirm…
     How about also putting Luxembourg on your radar screen—by the way, LUX is one of the top air cargo platforms in Europe.

Best regards,
Jeannot Erpelding
Director
Société de Promotion et de Développement de l'Aéroport de Luxembourg sàrl
Luxembourg Airport

     Thanks for writing, dear Jeannot,
     …And for bringing this to our attention.
     We apologize at this oversight.
     Luxembourg is very much in my mind and heart since my first visit in 1992 for the premier TIACA ACF of modern times, hosted by my old friend, Bob Arendal.
     I shall get after our geeks and correct immediately.

My most distinguished greetings,
Geoffrey

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