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   Vol. 13 No.101
Tuesday December 16, 2014

Ray Of Hope For Delta Cargo

Ray Of Hope For Delta Cargo

Ray Curtis     Having piloted the big carrier’s cargo fortune into a positive air space in 2014, Delta Cargo VP Cargo Commercial Ray Curtis is in Atlanta looking forward to 2015.
     Delta Cargo is seeing an increase in business and revenue, finishing 2014 on a positive note, and quite strongly.
     Tipping his hat—with an eye on available lift—Ray quickly adds:
     “On the passenger side, we’re performing very, very well—we’re seeing record revenues as well as record operational performance, which is also good for our cargo customers.”
     With a new reporting structure announced earlier this year, the commercial side of the business now reports directly to Steve Sear, s.v.p. - Global Sales, with operations reporting directly to Bill Lentsch, s.v.p. - Airport Customer Service and Cargo.
     Ray reports he is in the swim, and the water is “just fine.”
     “We’re already seeing the benefits of this restructure; Bill and Steve are fully engaged, spending time in our areas, and showing great interest in cargo.
     “They’ve also attended and participated in customer events and had the opportunity to interact with our customers.
     “The restructure allows us to benefit more directly from resources on the commercial and airport operations side of Delta’s business and also provides greater opportunities with technology, leveraging what has worked on the passenger side.”


The Paper Chase

     “Delta Cargo is out front and experiencing positive results in our effort to remove paper from the business.
     “In fact, it needs to be pointed out that Delta Cargo is leading the industry with international eAWB penetration of 34 percent compared to about 20 percent for the industry.
     “Sure, there is more to do, but we are doing it and expect the pace of increased penetration of eAWB to gather even greater momentum in 2015.
     “Domestically, Delta Cargo also achieved positive results by reaching eAWB penetration of 73 percent,” Ray Curtis declared.


Always Ray

     Ray Curtis has been in the air cargo business as long as we can remember— and we go all the way back to 1975, reporting monthly as Air Cargo News nearly 40 years ago.
     Along the way we have met thousands of people in air cargo, but Ray always impressed us as he has gained a reputation for being “hands on.”
     There is an easygoing, relaxed “Mohair Sam” attitude about Ray Curtis that brings a sense of purpose and caring into what can sometimes be an impersonal, international shipping business.
     No amount of sloganeering or promises can replace the quality of what Curtis brings to the table.
     He believes in himself and his team and is always ready when others might feel it is time to duck the tough questions.
     “The sales team and I partner closely with our customers,” Ray said.
     “We work together with our colleagues to deliver the products and services that provide value to them.
     “And it’s the people of the airline who make the difference.
     “It’s because of their intentionality and commitment that we’re able to move as much as we do as fast as we do without compromising the personal aspect of the business.”

The Delta Difference

Bill LentschSteve Sear       “It’s part of the Delta culture to strive to provide a great customer experience—we call it the Delta Difference.
     “Delta realizes from the get-go that superior customer service and relationships can determine who gets the business when everything else is equal.
     “And when the company does well, it comes back around to the people in the form of profit sharing.
“Recently, employees received an advance payout of our profit sharing, which was well-deserved.”


Push DL

     Profit (and forecasting) sharing aside, we wonder whether, despite rapid growth, has DL been been able to maintain service delivery and customer contact levels.
     “Although we’re constantly searching for ways to grow the business, we can also count on our people to provide a great experience for our customers so they want to return to us.
     “Delta Cargo hosts several customer events a year to hear directly from our customers on what we’re doing well and what we can improve.
     “We listen to them and make changes wherever we can to be a better business partner to them.
     “For example, we know our customers appreciate proactive communication when it comes to the status of their shipments.
     “So this year, we’ve made changes to our business to be more proactive in communicating with our customers.
     “We’ve made several enhancements to products recently, including:
          ∑ A dedicated team of Equation handlers in Atlanta whose entire focus is on moving Equation shipments to and from this hub. This team exclusively handles our international express products from acceptance to loading.
          ∑ Our Pharma network has increased 27 percent this year; we now have 47 stations globally. We have also introduced a new offering of +15°C to +25°C temperature control (also known as room temperature control).
          ∑ This year we launched our Variation Fashion, which specializes in the transportation of high-end garments using specialized containers.
     “We’re making investments in technology that make doing business with Delta Cargo easier, including simplifying the acceptance of shipments through technology enhancements.
     “Also in 2014, Delta introduced a new credit card functionality allowing cards taken at booking to be used as a placeholder for charges to be calculated and applied at shipment acceptance or delivery.
     “Finally, tracking performance down to the station level and reviewed on a daily basis has put transparency at a critical level.
     “It’s no secret that instant information up and down the line gains critical importance as now we are sharing cargo goals among Operations and ACS as part of that aforementioned realignment.
     “We believe we have to measure results to get better.”


Looking At 2015

      “In 2015, we look forward to strengthening our position in the market even more. Recently a report projected air cargo traffic to grow at an annual rate of 4.7 percent over the next 20 years, with global air freight traffic expected to more than double by 2033.
     “That is positive news for us and the industry as a whole.
     “We’ve seen continued improvement in business with the increase of mainline aircraft coming into our fleet.
     “The B717s, which are replacing many of our regional jets, are much more cargo-friendly. Delta has also added the 737-900s to replace some 757s, which allows for greater amounts of cargo capacity.
     “Our nonstop widebody service on transcontinental flights has given us a competitive advantage in many regions, allowing us to better grow our market share. Currently there is more demand from the U.S. to Asia.
     “We recently replaced our 747 aircraft with 777s on flights to Tokyo out of ATL, JFK, and SEA, and we’re seeing solid results. We’re encouraged by Q4 activities from the U.S to EMEIA as well.
     “Delta Cargo domestic business is strong.
     “In June, the Port Authority of New York and New Jersey reported that Delta was the top carrier amongst all airlines in terms of customers enplaned and freight shipped at JFK, which was the first time in recent history that a single carrier finished number one in both measures.
     “We expect the recent positive trending we’ve seen to continue.
     “In 2015, we look forward to strengthening our position in the market even more.
     “Delta has a strong corporate commitment to Cargo.
     “And with the new alignment, we’ll have the ability to apply some best practices that have proven to be successful on the passenger side to cargo moving forward.”


It’s About People

Delta Women       Ray gets back to one of his favorite themes.
     “Delta operates the best airline in the industry, and now that we’re more closely aligned to the passenger side, we’ll be able to tap into some of those resources.
     “Delta has taken a different path.
     “Our people are the best in the industry, and they truly are what sets our airline apart.
     “Our team attends as many industry events as possible during the year.
     “At the TIACA ACF in Seoul, Delta Cargo sponsored a workshop on Forward Notice of Advance Data and our Manager of Cargo Security, Derek Duiser, was on the panel.
     “It’s important that we continue to have open and collaborative dialogue with all players on the regulatory side.
     “An ideal world would be a common set of regulations and standards around the globe. Providing key information to the regulators early in the shipment life cycle, which can be used for a risk-based assessment, is definitely a goal that our industry should strive to meet.
     “The industry’s drive for eFreight needs to remain a focus – we are seeing good progress at Delta and are pleased with the progress I noted earlier.
     “However, there is still a long way to go—removing paper from our business improves data integrity and makes our industry more efficient overall.”


Back to Basics

     “We’re always looking for ways to provide our employees relevant training to make them better at what they do.
     “As far as recruiting, there’s definitely a need to seek ways to attract talent to the air cargo industry.
     “The air cargo industry needs to develop programs—whether they are co-op programs, more social media engagement, or something different—that promote this great industry. Cargo is often a hidden profession, and there’s no real path that leads to it.
     “The industry should be more innovative in promoting what we do so others can learn about the ins and outs of the industry.
     “Our industry is exciting, and it’s evolving so much—so yes, we need to get our story out there.
     “The spirit of the industry is high—I think people are optimistic as a whole.
     “Although it’s very competitive out there, there’s tremendous opportunity to gain business.
     “Looking ahead, air cargo must embrace technology to modernize cargo and the way we do business.
     “We need to keep up with other industries that are moving forward.”

Delta Boston Seafood Show Team


The Other Americas

     “We’re working very closely with our customers in Latin America,” Ray said, “focusing heavily on our fruits, vegetables, fish, and other fresh perishables.
     “Delta moves large amounts of cargo in that region via our widebody aircraft.
     “Our flights are full, and we’re very encouraged by the volumes.
     “In Canada, we have great opportunity to handle increase consignments of cargo now that we’ve upgraded aircraft.
     “The ‘plus’ is that we have trucking opportunities to move cargo via our DTW, JFK, and SEA hubs.
     “Although it is very competitive and lots of airlines are flying into Canada, we’re very encouraged with our progress.”


The Year That Was & Will Be


      As 2014—the year that was—draws to a close, we wonder what this industry leader and icon would do if he could turn back the clock and begin his business career all over again.
     Given a blank page, would Ray Curtis choose air cargo?
     “Yes. I would absolutely do it again.
     “My 35-plus years in the air cargo business have given me access and opportunity to be part of contributing to the significant advancement of the industry, and I look forward to doing my part both individually and as part of a great team to accomplish even more. I’ve enjoyed working alongside and leading some pretty outstanding professionals.
     “And on the personal side, through the years I’ve established relationships with so many colleagues around the world that I hold dearly.”
Geoffrey


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