With profits back on the rise, the executive board of Lufthansa AG, (L-R) Christoph Franz, previous chairman of the executive board; Bettina Volkens, Corporate Human Resources and Legal Affairs; Simone Menne, Chief Financial Officer and Aviation Services; Harry Hohmeister, Group Airlines and Logistics and Carsten Spohr, new chairman of the executive board pose for a group picture at the company's annual general meeting today, April 29, 2014 in Hamburg, Germany.
     Focus of the general meeting was on the change in leadership at the airline.

From left: Geoffrey & Sabiha Arend with Jacques Ancher and “Wild Thing” Jan Meurer, together for the first time in Istanbul last Friday as Jacques joined the air cargo immortals in the TIACA Hall of Fame.

He may have “departed the building” 15 years ago, but last Friday well-wishers gathered in a compact room as one of the truly great executives of air cargo—a dreamer and doer unrivaled in our industry—Jacques Ancher was finally inducted into the prestigious TIACA Hall Of Fame in Istanbul, Turkey. During the last decade of the 20th century,Jacques made history at KLM Cargo.
     While ocean trade slipped past the picturesque hotel windows, plying their way up from the Bosphorus to inland ports and back out to sea, and air trade winged toward jam-packed Ataturk International and (in a lyrical inspiration for FlyingTypers) in and out of the only airport in the world named for a woman called Sabiha, Jacques Ancher, a man who always loved air cargo, took the floor and hit “refresh” on the air cargo thought process in a simple, reasonable, and direct manner.
     Jacques spoke for just a few minutes and did so without notes—straight from the shoulder and right from the heart.
     “I am still fascinated by this business.
     “If you stand back and take the full view of air cargo, what is in clear focus is that this is a multi-billon dollar business driven by a large, dedicated group that includes the best, most prestigious companies in the world.
     “Air cargo is really and truly golden.
     “Although I have gotten along in years since we last spoke when I retired from KLM, I cannot understand why this beautiful cargo industry is still treated in some cases as a stepchild.
     “We must be doing something wrong,” Jacques Ancher declared, as the room sat up and paid attention.
     “I came here expecting to receive an award, not to say much more, having never attended any industry events or award dinners since I left 15 years ago.
     “But once again talking to my former colleagues and listening to your business scenarios and speeches here tonight, especially the laudatory comments about me, I must admit I am quite moved.
     “I wish that they were all true,”Ancher declared.
     “But looking out on many of the people here tonight, and how important this group is today in leading the industry, I still feel air cargo is heading in the right direction.
     “I also want to acknowledge the time many of us had together and how we tried to change the air cargo business.
     “But I’d like to also say that in retrospect there are two things I wish I had done differently.
     “I wish I had gone to both aircraft manufacturers Boeing and Airbus and asked them to deliver airplanes without cargo bellies.
     “The reasoning is that new airplanes without cargo capacity would make all of our lives much simpler.
     “Under that scenario, when an airline bought an airplane the decision to carry cargo would also represent a true commitment to the air cargo business.
     “The second thing I would have done differently is the way we attempted to change air cargo by organizational structure within our company, KLM.
     “If I did it again today, I would inspire change through innovation.
     “I believe the key to change is people.
     “Only through people can you change what you are doing.
     “If you can build innovation into your structure you have a chance to win.
     “In a broader sense, cargo needs innovation.
     “To build innovation you must allow your people to experiment with new ideas, to see whether they can work or not work.
     “If you do that you will change not only people’s outlook, you will also change air cargo.
     “I only have to look at my grandchildren, with their thumbs and fingers zipping across a tiny mobile keyboard on a cell-phone or PDA to know that innovation is accelerating change in the world.
     “Air cargo could benefit greatly by simply looking around and building its future by innovation.”
     Last Thursday, April 24, Jacques Ancher landed in Istanbul and gave us a couple of clear thinking hours to rub elbows.
     His vision lit up the night.
     To paraphrase what the baseball player and sage Yogi Berra once said:
     “It was like deja-vu all over again.”
     Jacques brought his own atmosphere into the room. You could feel the air change as he moved about the place softly, in subdued elegance, his words measured, thoughtful and full of promise.
     You felt the barometric pressure rising as he spoke.
     I am absolutely certain if he were displeased about something we might have felt the ballroom misting over last Friday.
     Too bad you were not there.
     Too bad we will not see his kind again soon, if ever again, in air cargo.
     Thanks Jacques.
Geoffrey /Sabiha

A Postcript…
     Earlier at this gathering there had been some talk about the need to attract new people into air cargo, followed by an announcement of a TIACA-sponsored pilot program moving forward wherein a couple dozen young people will soon gather in Netherlands for an immersion into air cargo.
     It’s not much, all things considered, but the effort is at least a beginning.
     And as it is said:
     “If you can’t do better, clap.”
     Part of the problem of bringing not only young but also new people into air cargo in some cases is that the old people do not seem to want to step aside.
     A quick look around this TIACA gathering confirms that thought.
     Maybe there are “new” people someplace else whilst all these cargo trade shows are being conducted.
     In that case, maybe some of these old faces should stay in office during the next show, say CNS Partnership or TIACA ACF in Incheon later this year, whilst “new faces” are given a turn to share their thoughts, hopes and dreams for a better air cargo industry.
     When it takes the oldest guy in the room, Jacques Ancher, to point the way towards the youth— based on the common sense observations formed while watching the grandkids—maybe it’s time for all of us to shut up and take a lesson.
     As we celebrate William Shakespeare’s birthday this past weekend (April 26), a favorite quote comes to mind that seems apropos of our evening with Jacques, although written four hundred years ago:
     “The fault, dear Brutus, is not in our stars, but in ourselves.”

      Ceva Logistics announced disappointing 2013 financial figures as EBITDA and revenue declined.       Underperforming air freight volumes out of Asia were cited as a key contributor. However, according to Rickard Ingvarsson, Vice President, Airfreight, Asia Pacific, the full year results did not fully reflect more recent changes in air freight markets.
      “Airfreight demand started to pick up after summer 2013 and had its peak during the last quarter, in particular out of China and Hong Kong – something the industry has not seen for a couple of years,” he told FlyingTypers. “It is too early to tell whether this will continue in 2014 as demand before and after Chinese New Year was soft.”
      Ceva, which is largely owned by private equity firms, currently has 11 global gateways used for air cargo are supported by a strong trucking network that allows the company to over 1,000 locations in more than 170 countries regularly. “Our sourcing is dual,” said Ingvarsson. “That is, spot buying at local level as well as annual global procurement with our core carriers managed centrally by our airfreight organisation.”
      Critical to ensuring the forward success of the Netherlands-based logistics giant will be bolstering its performance in Asian freight markets. Last year Ceva opened a Centre of Logistics Excellence in Singapore to enable the simulation of a wide range of logistics solutions. This allows Ceva’s managers to showcase supply chain innovations to customers in a real time environment,
      “Globally we are working on seven Ceva defined core trade lanes but the main focus for the Asia Pacific organization are Asia to USA, Intra Asia and Asia to Europe,” explained Ingvarsson. “With the increasing domestic consumption of growing Asian countries, intra-Asia trading has been on the rise in recent years.”
      Ingvarsson believes cost is the main driver for shippers looking for alternative transport modes to air, but the air industry has also been affected by this downsizing of demand. “For a global integrated network forwarder like Ceva, we are able to adapt and offer customized transport solutions in ocean, rail, overland and multi-mode like sea air or deferred airfreight services with longer lead-times at discounted rates depending on our customers’ requirements,” he added.
      However, despite these trends Ingvarsson is upbeat about 2014, especially in Asia. He expects pharma demand in India to increase but forecasts that China will be the key to the success of the global economy this year, even if the days of double digit year-on-year GDP growth appear to have passed. He said exports from China might be hit by upward pressure on the RMB, but imports were becoming an important part of the mix.
      “We have seen China imports grow significantly in last couple of years,” he said. “Today their import and export trade is more balanced than before. Previously, a lot of imports were related to manufacturing industries, for example, raw materials. Currently, all types of commodities including high end branded goods are being imported to China as the population’s purchasing power gets stronger.
      “Other interesting and emerging markets are Vietnam, Bangladesh and Indonesia. But also mature countries like South Korea and Taiwan will play a key role in the Asia airfreight market.
      “During 2014, we can expect our global technology sector customers to continue pushing forward with new product launches [giving impetus to] ‘time to market’ demand with airfreight as its focus.
      “Ceva’s expectation for 2014 is to grow our Freight Management - Air and Ocean - business and set a strong foundation for coming years. We have invested substantially in building a strong and competitive airfreight organisation globally with the right resources including senior trade lane expertise, compelling solutions and focus on customers as well as working strategically with carriers to grow the market.”
SkyKing

Saints Alive . . .
     Now that Pope Gregory and the retired Pope Benedict have declared Pope John Paul II a Saint, we recall a day to remember in October 1979.
     We were at home just like millions of Americans and people all over the world as Pope John Paul II arrived at LaGuardia Airport aboard a TWA Boeing 727. He walked down a red carpet (later the carpet was cut up and became a much desired souvenir) to be greeted by LGA Airport General Manager Tim Pierce.
     What happened at that greeting was totally unexpected, as Mr. Pierce handed The Pontiff a copy of the book Air Cargo News Publisher Geoffrey Arend created for dual purposes: to recall the 40th anniversary of LaGuardia Airport (opened in October 1939), and to tell the story of the historic, then-endangered Marine Air Terminal, which we were attempting to save from the wreckers ball.
     Just at the point of the presentation, with His Holiness looking at the book, a photographer took this immortal picture.
     What amazed us then and still today is that the name Geoffrey Arend can be clearly seen on the spine of the book.
     Later we laughingly joked:
     “Now we know of two books that The Holy Father has read for sure.” The limo that carried the Pope to his next stop also transported our book on the seat next to him.
     Reportedly, Pope John Paul had our volume close at hand all day, and after his historic visit the volume landed inside the Vatican Library in Rome, where it still resides today.
     A big deal?
     You betcha, and one that still lives on for us every time we think of Pope John Paul, “The People’s Pope.”
     That visit brought good luck to everyone who cherishes aviation history, as our efforts indeed saved The Marine Air Terminal, the first international airport facility in New York City (1945-48).
     Some years later in Washington, D.C., Geoffrey and Tim were honored with the highest award of the U.S. FAA and National Historic Trust for “Outstanding Contributions to Aviation and Historic Preservation” for their efforts to save the Marine Air Terminal. The awards presentation lauded the Pope’s historic visit for bringing worldwide attention to the MAT, which appeared as a backdrop.
Geoffrey/Flossie

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