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   Vol. 14  No. 83
Monday October 19, 2015

Air Cargo News For October 19, 2015
Air Cargo News For October 19, 2015

 

Lufthansa Cargo Standard of the World

The “Environmental Cube” developed by Lufthansa Cargo. Eight action areas serve as a focused framework toward continuous improvement in addressing environmental issues.

  “Regrettably, as the aviation industry we have a severe image problem, since we are publicly blamed as one of the worst polluters worldwide causing noise, dirt, and ultimately global warming by emitting huge amounts of greenhouse gases.
     “It’s time to change these widespread sentiments by communicating proactively the many environmental and technical achievements the aviation industry came up with in recent years and will go on contributing in the times ahead.
     “Critics should have in mind that there are approximately seven billion people living on this planet, many of them awaiting the chance to participate in some prosperity.
     “This, however, is impossible without global logistics services, including the transport of air freight supplying the world with much needed goods.
     “At Lufthansa Cargo we feel highly obligated to foster a corporate culture driven by ecological and green ethics.
     “Each of our employees is welcomed to contribute ideas for enhancing processes, making Lufthansa Cargo a benchmark for the entire industry.” Karl Ulrich Garnadt delivered these strong statements shortly after he assumed command as chairman and CEO of Lufthansa Cargo in 2011. Today, Herr Garnadt is head of all passenger business at Lufthansa.

Timeline 2007

     Much has been written about the global uproar created by Volkswagen diesel automobiles, so you might expect a bit of a scramble as other companies “Made In Germany” talk up their environmental effort.
     FlyingTypers reached out to Lufthansa Cargo recently for an environmental update­—we found no sign of a let up when it comes to these issues.


Standard of the World

     “It’s exactly because we have already achieved so much for environmental and climate protection that we want to become even better,” noted Dr. Karl-Rudolf Rupprecht, board member Operations of Lufthansa Cargo AG, as Lufthansa Cargo once again hosted its groundbreaking Climate Care Conference in June 2015 at the Städel Museum in Frankfurt with 150 invited logistics experts in attendance.
     As these thinkers, dreamers, and doers gathered to strategize how best to move forward with this year’s motto, “More Logistics and Less CO2,” the words were particularly important for Lufthansa Cargo Head of Environmental Management Bettina Jansen.
      “Air freight is indispensable to the global economy and it is our responsibility to make it as environmentally-friendly as possible, “she said.
     But back up a bit to 2010, when Head of Security and Environmental Management Harald Zielinski stated Lufthansa’s goal to be “the world’s most environmentally friendly cargo carrier.”
      “Lufthansa Cargo has come a long way since it first set out to become more environmentally friendly,” said Ms. Jansen.
     “In 2008 we successfully implemented an environmental management system according to ISO 14001 in Frankfurt.”
     “By 2020 we aim to reduce our specific CO2 emissions by 25 percent compared to 2005.
     “Last year we already reached 15.8 percentage points.
     “It is an achievement that we are proud of and that motivates us to keep making improvements in 2015.”

Cooler Heads Prevailed

     “In 2014, for example, we completed the replacement of our more than 5,500 standard aluminum containers (AKE) with a nearly 14-kilogram lighter version made from composite materials.
     “Now, together with our subsidiary Jettainer, we replace our AKH container fleet and test the next generation of lightweight pallets.
     “Tomorrow’s standard lightweight pallets are expected to weigh as much as 25 percent less than their prototypes, which tip the scales at about 100 kilos each.
     “Our plan is to replace our standard containers with lightweight material by 2020.”

Feathering Freighters

     “Another example from the flight operation is that our MD-11F Cargo freighter is flying even more efficiently now because every single MD-11F has ‘lost’ 35 kg.
     “In order to achieve this, we have reduced and substituted equipment.
     “Lufthansa Cargo will save 80 tons of fuel and accordingly 250 tons of CO2 a year in the future just by losing these 35 kg.
     “In addition, in 2014 we re-certified our environmental management system in Germany and for the first time Jettainer was included in the certification.
     “Now we examine the processes at our international areas, so that we are expected to have a worldwide ISO certification at the end of this year,” Ms. Jansen said, adding, “The biggest lever you have to reduce the impact on the environment is to use new technologies.
     “Therefore we have invested in the B-777F, the freighter with today’s best environmental performance.
     “Moreover it is worth it to check processes for optimization potential on a regular basis and to integrate the topic of environment in the decision-making process. Finally, it is important to have staff and management on board who take the issue seriously and communicate honestly,” said Ms. Jansen.

Bettin Jansen

LCCneo on Ice Refocus

     Earlier this year in April, Lufthansa announced it would be delaying the planned investment by Lufthansa Cargo in their new cargo center, ‘LCCneo,’ by at least two years.
     LCCneo being a significant component of the ‘Lufthansa Cargo 2020’ strategy for the future, FlyingTypers wondered how the delay would affect Lufthansa reaching their projected environmental goals.
      “The ‘LCCneo’ remains a key pillar of our ‘Lufthansa Cargo 2020’ strategy, and the program will still be implemented at full steam.
     “We are evaluating and implementing new measures we can take to modernize the LCC on an ongoing basis.
     “We have a functioning LCC and an excellent team.
     “We are certain that we will continue to offer our clients top-quality service,” said Ms. Jansen.

 The View Is Global Partnerships

     “While continuous improvements e.g. in waste management (such as the optimization of the separation of our recyclables) and energy management (like the continuous investment in efficient light bulbs) are our daily business here at Cargo Hub Frankfurt and around the world, we are aware and pleased that environmental responsibility has became more and more important to our customers and our global partners.
     “A significant change from a soft image to a fact-based data subject has taken place in recent years.
     “Our customers more and more want to know what we do in general to reduce our impact on the environment, and [they] want to know the exact emissions data of their airfreight on a particular route.
     “So in 2015 we started providing our global partners company-specific CO2 reports.
     “Lufthansa Cargo drives for more data transparency and customers can identify their own environmental balance.
      “The research project Green Logistics, which we have worked out for five years together with relevant partners in the logistics industry, such as the Fraunhofer Institute, DB Schenker, DHL, Fiege Vanderlande, and UPS, is completed. The project has developed an assessment method for the whole logistics chain—considering transport via different carriers (road, rail, air, and sea), transshipment, and warehousing (including logistics real estates and intra-logistics),” said Ms. Jansen.

Smart Cookie
      
     FlyingTypers was curious as to how Ms. Jansen landed in her particular role within the cargo industry, and specifically in regards to environmentalism.
     “The environment matters at Lufthansa Cargo,” said Ms. Bettina Jansen, who studied physics at the Goethe University in Frankfurt and completed her MBA studies at the University of Ashridge, UK, whilst working at Lufthansa Cargo.
     She is smart, beautiful, and razor sharp, characteristics she has displayed consistently since her Lufthansa career began in 1994 as a consultant for Europe/Africa with LSG Sky Chefs.
     After being project and team leader in the field of customer care, she joined Lufthansa Cargo in 1998 as Manager Corporate Strategy.
     Between 2004 and 2009, she was Head of Business Development at AeroLogic Management GmbH .
     Bettina Jansen has served Head of Environmental Management at Lufthansa Cargo AG since September 2009.
     “My studies in physics are a good basis for the job as environmental manager here at Lufthansa Cargo.
     “Regular internal meetings with environmental coordinators of LH Cargo and the Group as well as the participation in external working groups with the industry (BDL, IATA . . .) enable me to keep up with current trends and to identify new issues.”

Climate Cares

     Lufthansa Cargo’s singularly outstanding environmental effort is the aforementioned Cargo Climate Care Conference, which is held every two years and offers a platform to bring customers and stakeholders together to discuss new topics, developments, and challenges.
     “Participation in environmental working groups from, for example, the IATA (International Air Transport Association) is very important for us in this venture.
     “Topics of environment (aircraft noise or CO2 emissions methodology) can be discussed and internationals standards promoted.
     “With the conference we want to provide a platform for our customers as well as politicians and scientists where we can meet and discuss new developments in the area of airfreight, logistics, and environment.
     “There has been very positive feedback about our extraordinary locations, professional speeches, and pleasing penal discussions, which confirms to us that the interest in this kind of conferences is unabated,” Ms. Jansen said.

Climate Care Awards

Lufthansa Climate Video     At the end of each of the four Climate Care Conferences that have been conducted so far, recognition has lifted Lufthansa Cargo’s customers and staff, and young scientists, towards developing new ways of improving the climate balance of air cargo traffic.
     The Lufthansa Cargo Climate Care Award is unique, and in a sea of bowtie banquet party drivel, with awards handed out and soon forgotten, CCC recognition carries the weight of bettering the environment for generations to come.
     Hats off to Lufthansa Cargo for standing up and sending the message to the world that when it comes to our environment, “better benefits everyone.”
     This excellent video states specific goals as Lufthansa Cargo pioneers environmental procedures and practices.
Geoffrey

 

Chuckles for October 19, 2015

 

India At Home Drives Growth

Blame India’s tech-savvy Prime Minister for the e-tail boom, but Narendra Modi’s push for smart cities and his love for social media have encouraged mouse-chasing Indians to go clickety-click from the confines of their homes.
     The result? Domestic cargo has been experiencing growth and even low-cost carriers, with their constraints of quick turnaround times at airports, are going all out to get express cargo packages.


Double Digit Growth

     Figures from the Directorate General of Civil Aviation point out that the country’s domestic cargo has seen a whopping double-digit growth in the last 16 months – though the highest figures have been recorded at the metro airports of Delhi, Mumbai, Bengaluru, and Hyderabad.
     The latest to start serious air cargo services in the country is low-cost carrier SpiceJet. After going through a near-death scenario at the end of last year when the carrier saw its initial promoter, Ajay Singh, (in photo below) coming back to take over the reins and revive the company, SpiceJet is keen to embrace cargo to boost its revenues.

Spicejet
Losing Its Shirt

     Incidentally, SpiceJet has huge accumulated losses of $477 million as of June 30, 2015, against shareholders funds (including advances towards subscription securities) of just $182 million.
     Today, the company’s total liabilities exceed its total assets by $17.50 million. Also, according to the Centre for Asia Pacific Aviation (CAPA), the carrier needed “critical” investment of $200 million for a turnaround.
     Hence, all the more reason to look for a source of revenue.
     SpiceJet sources pointed out that in August 2015, the carrier earned a little over a million U.S. dollars from cargo and though figures were yet to come in at the point of filing this report, September would see the earnings shoot up to $4.5 million in October, which is in the midst of the festive season in the country.
     For the moment, revenues from cargo operations total 3-4 percent of the airline’s passenger revenue.
Singh said that if the air cargo services take off, the revenues would go up to 10 percent of the passenger revenue by the end of the current fiscal year.


Lots of Ideas

     SpiceJet Chief Operating Officer Sanjiv Kapoor was quoted saying that the cargo operation move was still in a planning stage and that “a lot of ideas are being considered.”
     Meanwhile, the carrier has been working to boost its back-office: it has organized a team that will be solely responsible for cargo.
     On the other hand, it has subscribed to SmartKargo, the cloud-based cargo IT solution, and has also started consultations with cargo agents to improve its services, including delivery.
     The carrier has also constituted a ‘crack team’ under Singh to oversee its cargo operations and target customers and e-commerce companies.
     In fact, SpiceJet with its dedicated cargo plan seems to have stolen a march over the country’s successful no-frills airline IndiGo, with its plans to launch dedicated freighter services.
     If the services materialize in the next three to six months, SpiceJet will become the second carrier with dedicated freighters—the other one being Blue Dart with its seven planes—in the country.


Here Is The Plan

     The SpiceJet plan includes starting freighter services to the country’s northeastern region, which still remains largely unconnected.
     The carrier will use aircraft from its fourteen-strong Bombardier Q-400 fleet.
     It also has eighteen B737s and two A319s.
     These planes, which are idle at night, will be used to fly freight between Bangalore and Delhi, according to Manjiv Singh, who is responsible for SpiceJet’s cargo operations. “The aircraft would be those sitting dead at night,” said Singh.
     SpiceJet’s foray in cargo comes at a crucial juncture.
     Domestic cargo operators have been aware of the coming boom and have been demanding a boost in infrastructure.


Caution Flag Flying

Bharat Thakkar and Tushar Jani     Bharat Thakkar, former president of the Air Cargo Agents Association of India (ACAAI) cautioned that while domestic cargo had gone up 18 percent last year and it is expected to grow 20 percent each month until January 2016, there was an abundance of bellyhold cargo capacity.
     “Airlines,” he said, “are finding it difficult to fill up the space.”
     Anyone desirous of launching freight service will have to keep these factors in mind before making investments, he said.
     According to a veteran in the air cargo trade, Tushar Jani, chairman, Cargo Service Centre, one of the main cargo terminals at Delhi Airport (incidentally, he was one of the founders of Blue Dart): “The time has come to innovate and think out of the box. The (air cargo) industry has to move beyond the coming year and ‘take a look at 2022.’ Air cargo,” he underlined, “would grow without a doubt – despite the infrastructural and other challenges.”
     Today, Jani noted, integrators were preparing for the impending boom and they would be competitive.
In such a situation, Jani advised the domestic air cargo industry to move out of the airport and go to the doors of the customers and, of course, change processes.


Bhavesh Manglani Manglani Delhivery


     Another major player, Bhavesh Manglani, founder and CEO, Delhivery.com, has been in the thick of the e-commerce boom. His outfit serviced 2 cities, 6 clients, 20 sellers, and 500 products per day in 2011 and ramped up to provide services to 175 cities, 800 clients and 90,000 products per day in 2014.
     In 2015, ‘Delhivery,’ he said, would handle around 200,000 consignments per day and deliver to 300+ cities.
     By 2020, Manglani’s services would reach 20,000 pincodes (zip codes) or 98 percent of the country.
Higher and higher.
Tirthankar Ghosh


 

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