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    Vol. 13 No. 41                     THE AIR CARGO NEWS THOUGHT LEADER                          Friday May 9, 2014

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     I’ve seen Tony Charaf twice in the last two weeks—first at the TIACA AGM in Istanbul last week and then this week at CNS in San Antonio.
     You know that kind of silent communication that comes with a quick handshake or a nod, with the verbal conversation not occurring until much later?
     Sometimes, simply passing like ships in the night can be as informative as a sit down conversation.
     A heightened awareness develops when you are in a place where so many people need to be greeted and chatted up a bit.
     The Delta Air Lines Senior Vice President and Chief Cargo Officer speaks, and whatever the current situation, you get the clear feeling that he is dually in the moment and looking ahead, weighing options, and never letting things get out of hand.
     In an atmosphere where others cast some doubt, or are unable to predict what will happen or, worse, go around clucking that the sky is falling, Tony Charaf is always the coolest customer in the room.
     I first met him back in our old newspaper days, during his first pass as top DL Cargo executive. We ate cake over at Newark Airport to celebrate Delta Cargo opening a facility there in the early 1990s.
     Today, some years later, Tony is back, unflappable as ever, with his focus and vision always at the ready, although he almost never draws attention to himself.
     Remember, Mr. Charaf is the air cargo chief who once said:
     “In a position of leadership, shrink your head and grow your heart.”
     To explain his philosophy of working with people, Tony proclaimed:
     “There is no ‘I’ in team.”
     So forward we march into pretty little May 2014.
     Here is our latest take with the smartest guy in the room:

Tony Charaf and quotes

Q:   What was the top Delta Cargo priority at CNS this week in San Antonio?
A:   Our top priority at the CNS conference was to engage in dialogue with our customers to find out what’s on their minds and talk about what’s next. It’s an opportunity for us to hear from our customers on how we can work together to realize efficiencies in our businesses so that air freight can continue to be a viable shipping option for those products where other modes could be considered as an alternative. We value the time that we have with our customers, and we really listen to them. Delta Cargo was well-represented with Ray Curtis and key members of the Sales and Commercial team, Scott Barkley and Mike Rizzo from Operations, Sharon Poindexter who participated in an e-freight panel, as well as others from Revenue Management and Finance. We always welcome and value our customers’ feedback. The entire team is working very hard to earn their business.

Q:   What is your view of the cargo transportation business climate in 2014?
A:   We are cautiously optimistic that 2014 will be a better year than 2013. The headwinds are still there – excess capacity driving down yields, modal shift and near shoring will continue to affect the air freight industry. The competition is stronger than ever, so it’s very important that we deliver exceptional service to our customers. They have options; we have to earn their business every day.      Consistency, reliability and predictability are what our customers demand, and we will work harder and smarter to meet their expectations so that they can take care of their customers as well.
     We are keenly focused on continuing to build our business in line with customers’ expectations and having the products and services available on a consistent basis across Delta’s extensive global network.


Q:   What do you envision by region and in terms of growth and development that is targeted by DL?
A:   Delta is creating an industry-leading West Coast – Asia gateway in Seattle. In June, we will have new service between Seattle and Hong Kong and Seattle and Seoul (Incheon). We’re up gauging our service between Seattle and Shanghai and have gone to daily year-round service from Seattle to Beijing. We also offer service between Seattle and Tokyo to both Narita and Haneda using 777 and 767 aircraft.
     Delta is the only carrier offering trans-continental widebody pallet capable aircraft. We offer five daily flights between JFK and LAX, and our flights are timed to connect to international banks in both directions, from the East Coast to Europe and Africa and from the West Coast to Asia and Australia. We have additional widebody routes from ATL to LAX, PDX and SEA, connecting South America and Africa along with ATL to LAX and HNL.
     Our joint venture with Air France-KLM and Alitalia, where we have trans-atlantic anti-trust immunity, will continue to evolve as we work together to further develop our partnership.
     We’re also fortunate to have a 49% ownership stake in Virgin Atlantic where we have anti-trust immunity between the UK and North America. Our teams are working together to develop this relationship, and we are already co-located in several cities in the U.S., including JFK, EWR, BOS, IAD and most recently MIA.
     An area that we will continue to focus on this year is revenue growth from premium products. We’ve made solid progress with our Pharma products and amplifying the infrastructure to support these critical shipments. Express products and perishable shipments are also growth opportunities.


Q:   Why should forwarders support Delta Cargo? What is your commitment?
A:   Our company recently reported a March quarter pre-tax profit of $444 million, which was a $363 million improvement over the same period last year. These results were delivered by our people who are the best in the industry. We will continue to remain focused on the path that we have set forward as a company.
     Our approach is to make Delta a great place to work for our employees, make Delta an airline our customers want to fly and ship with and make Delta a great investment for our shareholders. Simply said, we take care of our employees who take care of our customers, and our customers take care of our investors.
     Delta is setting a new standard and building a resilient franchise. Cargo continues to be a strategic focus, and we’re fortunate to be afforded the opportunity to invest in our business. This allows us to build on the foundational aspects of our business and be a valued and reliable business partner for our customers.
     Our corporate focus is always to be safe, clean, and on-time with bags and cargo.

Delta Women“There is no ‘I’ in team,” says Delta Cargo’s Tony Charaf, and there are few who would doubt this group is ready with imaginative solutions to any logistics challenge. Mr. Charaf outlines some moves here, determined to carry the Georgia-based air cargo resource to new heights.
From L to R—Delta Cargo's Alex Clayton, Laura F. Cascino, Miffy Wiggs, Marie Buetow and Sarah Berry.

Q:   What will you expect from CNS 2014 to consider the event a success?
A:   A successful event would mean that we were able to connect with customers and understand their view of where we are and where we need to be in order to build our respective business. It will be a success when we have executed on the areas of improvement that our customers have told us are important. And we know that speed wins. We will focus on results and measuring how we are doing.
     Continuous improvement, which is not only working harder but working smarter, is core to our success.


Q:   What is the one message that you would like to deliver to the global audience we serve about what you do-your hopes and ambitions and what we all can do to make working together better?
A:   I have said many times since I returned to cargo that as an industry we have not moved forward with removing paper from our business and making the investments in technology to do this. Meetings such as CNS are very important as they bring the players in the industry together to have dialogue. But we can’t just talk; we have to continue to drive hard and have the same level of commitment to make this happen. There are many challenges facing our industry, and we have to become more efficient so that air freight can continue to be an effective and efficient means of transportation.
     When we come together next year, I hope we can talk about the significant progress we have made.


Q:   Please describe what Delta Cargo feels as its most continuing contribution to air cargo?
A:   As a cargo carrier, it’s important for us to deliver products safely and on time to the final destination. With the growing cargo business, combined with the increasing number of flights and tight turn times, it’s ever so important that we continue to deliver on our commitment. A key component of our business is perishables products, which means it’s time sensitive that we get items to the final destination. Our express shipments can contain biomedical specimens, heart valves and other lifesaving organs. These high profile shipments can make the difference in a person’s quality of life.
     That’s our commitment to the industry – safe, clean, on-time with bags and cargo.


Q:   How do you feel about being ranked Number One in e-freight utilization of all the domestic airlines in the latest IATA count? What is your resolve toward the future in terms of further e-freight implementation?
A:   We are pleased with our progress, but there is a lot of work ahead. Our resolve is to never be satisfied with where we are; there’s always room for improvement. This remains a key area of focus for our entire team. We will continue to work with our customers, play an active role in the industry to drive adoption and look for innovative ways to utilize technology to further adoption as well. The path has been paved on the passenger side of our business. It sets the path and a roadmap we need to use to move forward at a rapid pace.


Q:   Do a self report card on your second term atop DL Cargo. What are you most proud of having accomplished. What is yet to be done?
A:   I am most proud of our people, including the leaders we have now. This group of people is committed to Delta Cargo becoming the best in the industry and working together as a team to get the job done.
Geoffrey/Flossie

 


Where's The Action?

Buzz Gondran And Annie Gondran
  Our favorite picture so far this year, with all due respect as Mother’s Day 2014 approaches, is this “Father & Daughter” snap.
  Say hello to Buzz Gondran and Annie Gondran of Action Freight Services, based in Austin, Texas.
  “Daughter Annie has worked in our family-owned company since age seven –as a great spirit in office where she helped out separating and filing airway bills and whatever needed to be done.
  “But now it is time for her to go away to University this autumn.
  “I just hope that someday she might think of coming back to us at Action,” Buzz said.
  We say the following adage applies, especially looking at you two.
  You never lose a daughter, Dad.    

Karen Reddington FedEx Singapore South Pacific
Karen Reddington


Ingrid Sidiadinoto

 


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Flying Video At CNS

Peter O'Neill & Anne Marie MacCarthy

Peter O'Neill, Director Cargo Aer LIngus & Anne Marie MacCarthy, Global Sales Manager
Aer Lingus Cargo.

Irish Eyes Bigger U.S. Service . . . Here Anne Marie & Peter tell all about it.

 

 

Helmut Berchtold

Helmut Berchtold, Managing Partner, ADI Consult
Future belongs to training in air cargo . . .

 

Chuckles For May 9, 2014

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Publisher-Geoffrey Arend • Managing Editor-Flossie Arend • Associate Publisher/European Bureau Chief-Ted Braun
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