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   Vol. 13 No. 101  
Tuesday December 16, 2014

 

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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


A FlyingTypers ExclusiveVandana Singh
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Any Which Way But Down  

Indian Prime Minister Narendra Modi’s call to change the country’s ‘Look East’ policy to an ‘Act East’ has prompted the aviation ministry to ensure that the country’s North-Eastern region is better connected.
     In fact, the new civil aviation policy draft has specifically mentioned that a special package would be developed for the North-East.
     Meanwhile, entrepreneurs have charted out plans to connect the North-East of the country.
     The landlocked region has remained under-developed—one of the main reasons being lack of connectivity. While a number of domestic airlines have regular flights to the region’s main airports spanning across seven States – or ‘Seven Sisters’ as they are known – like Guwahati, Agartala, Imphal, Aizawl, and Dimapur, there are no dedicated cargo flights. Road and rail connections are doing the job but they are time-consuming. Freighter flights from Kolkata do, however, take place but they are few and far between.
     Stepping into the air cargo arena, Mumbai’s Sovika Group has charted out plans to launch a regular dedicated cargo airline service. Starting in the next couple of months with its base in Kolkata, the Sovika Aviation Services’ daily cargo service will see an ATR72 plying to the airports in the North-East. There were 17 airports in the 1970s but today there are only 11 functioning.
Sovika Group Services     Speaking about the services, Akhilesh Rao, Senior Vice President, Sovika Group, told this correspondent, “We had been toying with the idea for quite some time. Aviation is not new to us. We have been in this business, i.e Air Craft Leasing/Charters/Ground Handling/Terminal Management/Passenger GSA/Cargo GSA/ Business Aviation charters for more than two decades. We realized that the North-East was one of the under-developed regions and flying cargo flights would help the region’s economy hence we have decided to take this initiative forward,” Rao emphasized that the flights would be in tune with the government’s ‘Act East’ policy.
     Sovika’s management has done the required groundwork and have received 100 per cent support and assurance from the governments in Assam and Meghalaya. Along with the state governments of the region, the local trading community too, has welcomed the move and given assurance of their full support.
     Sovika hopes the freighter flights will be economically viable. “We hope to carry at least 10 tonnes of cargo to and from the Northeast every day. While cargo is carried by passenger aircraft, there are delays since there is lack of space in the aircraft,” said Rao.
     It is mandatory for domestic operators to operate commercial flights to the North-East – even though they might not be viable. Flights to the region have to adhere to the civil aviation ministry’s Route Dispersal Guidelines (RDG) which makes it obligatory for all Indian carriers to connect to destinations in the North East and other remote parts of the country. To lessen the financial burden for operating flights that are not economically viable but socially important, the government provides a subsidy.
     Almost two years ago, the Ministry of Development of North Eastern Region (DoNER) had sent out a proposal to subsidize flights by private domestic carriers. The move came after a number of private airlines told the government that they would reduce the number of flights to the airports of the North-East because of operational losses. To encourage flights, for example, small aircraft like the ATRs do not have to pay airport charges in the North-East while ATF is available at only four per cent VAT instead of the 25-30 per cent for bigger aircraft.
     In fact, a couple of months ago, the North Eastern Council (NEC) signed a Memorandum of Understanding with Air India subsidiary Alliance Air to operate ATR flights in North-East till 2016. For this, the NEC has assured to get concessions for ATF, etc. Alliance Air had been operating 65 flights a week to the region till the end of 2012. After that, due to non-receipt of the government subsidy, the carrier had reduced capacity, operating only on the economically viable routes.
     A recent Federation of Indian Chambers of Commerce and Industry (FICCI)-PricewaterhouseCoopers (PwC) report, Gateway to the ASEAN-India's North East Frontier, has pointed out that while connectivity has improved in the region, intra-regional air connectivity was sparse.
Tirthankar Ghosh

 

Drone
   The FAA of the United States has stated four companies will get their drone wings in order to figure out how to fly the things without smacking into other aircraft or people on the ground.
   Which probably means that at some point down the runway, aircraft will need to be equipped to detect and avoid drones.
   Drones must also be able to land safely on the off chance they lose contact with their “hosts.”
   Trimble Navigation Ltd., VDOS Global, Clayco Inc., and Woolpert are the four companies granted exemptions to fly above company and construction sites—the FAA is now drafting regulations for drones to share the sky with others.    Word on that should be coming within the next 60 days.
   In the meantime, high profile Amazon and 167 other companies have applied for rights to fly drones.
   But don’t expect any of this overnight, as the process to gain anything but the narrowest usage of drones is still years away.

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RE:  Molinelli Was Always Certain

Dear Geoffrey,

     Thank you for your very kind words on my impending retirement.      I will miss interacting with my friends in the airline industry and especially those in the JFK area. I will not miss the commute every day to JFK from Long Island, especially in the snow or rain. I'm sure there are many who can identify with that.
      I can truly say that what I learned working with Buz Whalen at JAL was the foundation of whatever success I achieved in the rest of my air cargo career. I was also fortunate to work with Otto Leitner at JAL who taught me much about tariffs and agency matters, which are really obscure matters in today's air cargo industry. Working with Ed Chism and Ram Menen also helped further my knowledge and experience and I am very thankful for their support and all my past and present colleagues who I had the opportunity to work with.
      I have been extremely lucky to work 42 years in a very fine industry and work for two excellent companies. Now it's time to head out to Arizona and start the next phase of my life. If it's half as interesting and successful as my former life I will be set.

Best Regards,
Gerry Molinelli

 

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Vol 13. No. 98
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