FT030116

#INTHEAIREVERYWHERE

Vol. 15 No. 17	Tuesday March 1, 2016

Black Wings Pioneered Flight

     Back in 2012, Carmen Taylor, Managing Director of AA Cargo’s Latin America sales division, which includes South America, Mexico, Caribbean, Central America, and the southeast region of the United States, was recognized by Miami World Trade Center for “exceptional leadership in promoting and enhancing free trade and international business.”
      The three-decades-plus veteran of American says simply:
      “I love my job.”
      When it comes to exceeding expectations and taking things further, Carmen makes business as usual unusual.
      “My philosophy is make the customer successful, and they will also make you successful,” she said.
      “At American Airlines Cargo our top priority continues to be our unique focus on delivering an enhanced service, including offering an expansive, incomparable network and a diverse selection of flights to choose from, all while exceeding our customers’ expectations.

Fresh For Easter

Women's History Logo       “Our fresh flower business continues to grow as we add new routes, improve our perishable network, and add on more service options this year.
      “In 2015, we saw a significant increase of flowers worldwide from last year.
      We expect to continue to see growth with the addition of new and bigger coolers, which are being added at our hubs that see the largest amount of flowers.
      “The bulk of our traffic comes out of Latin America and Europe, including Costa Rica and Amsterdam—some of the top floral producers in the world.
      “The U.S. is also one of our top flower export locations, thanks to the consistently mild climates and resources on the west coast. The speed and temperature-control capabilities we can offer as an air carrier give our customers more global options for shipping perishable products with shorter shelf lives to more locations around the world. Plus, with the consistently high demand over all 12 months, even in climates not equipped for flower production, we can maintain an influx of this popular commodity, especially around major holidays, including the upcoming Easter.”

Play Me Hearts & Flowers

“During the Valentine’s Day season, which we define as the two weeks leading up to the 2016 holiday, we saw a pretty significant boost in the fresh flower volume through our hubs.
“During this time of year, we transport a variety of different fresh cut flowers, including roses and carnations, [which are] some of the most common types we ship throughout the calendar year.”

Perishables Top Priority

“Moving perishables by way of air gives you the added benefit of speed and transparency. With modern technology, we have the ability to track our cargo at each connection point, and we have cooler facilities strategically placed across our network. These cooler facilities were designed to maintain a refrigerated temperature of 5 degrees Celsius, perfect for perishable shipments such as fish, produce, and flowers that need to arrive fresh at their final destination.”

O&D by Priorities

      “In general, the types of flowers we move vary greatly, but as mentioned earlier we see a fairly large amount of carnations, roses, tropical flowers, ornamentals, and foliage—just to name a few.
      “The majority of our flower shipments are destined for the United States (New York JFK and Miami, primarily), Europe, and Asia. With an expansive network and efficient flight schedule, we’re able to transport flowers into the U.S. from nearly anywhere on the map, connecting through to the international destinations with the highest demand for this popular perishable.
      “For example, flowers out of Bogota can make it into the hand of a distributor in the U.S. within four hours (or connect elsewhere, as needed).
      “Out of the U.S., some top perishable commodities, aside from flowers, include berries and asparagus to the MCLA region and seafood and produce to Europe.”

Why We Love Carmen

      Born in Lyon, France, Carmen says of being a woman in air cargo:
      “The demands are there—no matter who you are—to deliver all around.”
      “We are very proud of the role we play in facilitating international trade and helping consumers worldwide gain access to a large variety of goods available in the market.”

On The Mark

      “In July 2004, (our) good friend Mark Najarian, who was at the time our VP Cargo Sales, gave me an incredible opportunity to run our Cargo Sales business in Miami. “Although I was a little nervous at the beginning—since I knew very, very little about the cargo industry—I very quickly learned that the cargo business is a ‘people-to-people’ business.”
      “The experience of being ‘real’ with people had an immediate impact:
      “Once you have built credibility within your customer base, they will support you. “Working in cargo for the last nine years has truly been a very rewarding experience.
      “I feel extremely fortunate that my work with American Airlines has given me the opportunity to travel across the globe,” Carmen Taylor said.

A Matter of Heavylift

      “As a passenger carrier, we receive a lot of questions around the benefits of utilizing commercial aircraft verses freighters for the movement of cargo.
      “The key benefit is daily, nonstop service across our expansive global network.
      “When you combine our schedule with our trucking and interline partners, we can reach nearly every major (and minor) trade market in the world in a very short period of time.”

Priorities Right Now

      “Right now, it’s all about finding more effective and seamless ways to interact with our partners and customers.
      “From online tracking to customer surveys and enhanced facility layouts, we’re using our talented employees and valuable industry partnerships to enhance the products and services we can offer.
      “We want, and highly value, feedback from the organizations and individuals we work with all over the world and find those conversations are the ones that keep us evolving at an exceptional rate.”

Forwarders Straight To The Heart

“Like many of our air cargo counterparts, we rely on the support and resources of our forwarders on a day-to-day basis. The relationship we have with our forwarders allows us to share the benefit of offering our customers more connection opportunities across the globe. This includes more direct services between the origin and destination points, thus minimal handling throughout the process. Especially for the transport of temperature-sensitive or highly-valuable commodities, enhanced tracking and security measures are crucial features for every member of the supply chain.”
Geoffrey

     (Delhi Exclusive) Even as air cargo went center stage last week in Mumbai, elsewhere India’s top air cargo practitioners were discussing how India’s transportaton sector was expected to grow by more than 180 percent within the next 15 years—a large part of which will be due to Prime Minister Narendra Modi’s ‘Make in India’ campaign. However, a battle royale is shaping up between the government’s civil aviation ministry and the non-government airlines.
      In fact, these airlines make up a tough body, holding control over more than 90 percent of the aviation market in the country.
      The point of contention: the much-hyped and yet-to-be announced National Civil Aviation Policy (NCAP).


Airlines Versus NCAP

Jitendra Singh      Pitted on the side of the private airlines are IndiGo, Jet Airways, SpiceJet, and GoAir, grouped together under the flag of the Federation of Indian Airlines (FIA), while on the other side is the Ministry of Civil Aviation.
      FIA has made it quite clear that the NCAP would be unacceptable if it were to come out in its present form since it will only benefit two carriers.
      (A draft has been in circulation since October 30, 2015. “The same is available for stakeholder’s consultation and comments on the website of this ministry at http://www.civilaviation.gov.in,” a circular from the Ministry of Civil Aviation mentioned.)
      The FIA has pointed a finger at two airlines: Vistara and AirAsia India. Incidentally, both have links with the venerable and respected Tata group.
      While Vistara is a joint venture between Tata Sons and Singapore Airlines, AirAsia India is a joint venture with Air Asia Berhad holding 49 percent of the airline, Tata Sons holding 40.06 percent, and Telestra Tradeplace holding the remaining 10 percent.
      In fact, AirAsia was the first foreign airline to set up a subsidiary in India.


The 5/20 Rule

     FIA is most upset about the 5/20 rule, which the policy would disgard. Put simply, the rule states that every airline in the country must complete five years of domestic flying and have 20 aircraft in its fleet before it can apply for permission to fly abroad.
      That norm certainly disqualifies the two Tata-funded airlines from flying abroad. There are two other points to which FIA has said it does not agree: the auctioning of bilateral rights and enhancing the foreign ownership of domestic airlines to above 49 percent.
      Among the airlines in FIA, only GoAir does not fly abroad.
      The FIA authorities have said, “the 5/20 rule cannot be thrown out arbitrarily.
      “The rule has to be seen in conjunction with the Route Development Guidelines, that orders all nationally permitted airlines to have flights to unprofitable, remote sectors like the North East of India.”
      The order also says that any carrier withdrawing flights from these areas would have to take permission from the authorities before doing so.
      Rahul Bhatia, Chairman of FIA and owner of IndiGo, was forthright when he said that if the civil aviation ministry did not listen to the FIA, there would be no other option left but to seek the help of courts.
      He told FT that FIA did not want legal battles.
      “We just want a level playing field,” he said.

Tata Tweets

     Ever since the draft policy was announced, private airlines’ owners and representatives have voiced their concerns.
      The latest spark, however, came in late February (21) when the Chairman Emeritus of Tata Sons, Ratan Tata, tweeted that he would like the government to do away with the 5/20 rule.
      “It is sad to see incumbent airlines lobbying for protection and preferential treatment for themselves against the new airlines that have been formed in full compliance with prevailing government policy and providing air transport to Indian citizens in line with the dream of a ‘new India’ promised by the new government under (Narendra) Modi’s leadership,” Tata said.
      He was speaking about Vistara and AirAsia India.

SpiceJet Tizzy

Ajay Singh

     The tweet sent the world of aviation in a tizzy. Ajay Singh, (right) CEO of SpiceJet, shot off:
      “All of us were asked to serve our great country before we got profitable rights to fly abroad.
      “We served with great pride.
      “What is wrong if these two foreign-controlled airlines are also asked to serve India before being allowed to fly international?
      “Mr. Tata, whom we respect greatly, should in fact urge these airlines in which his group is a shareholder to serve India willingly before being allowed to fly international.
      “While obtaining a license, these two airlines had undertaken to follow the 5/20 rule, a rule they are now opposing so vehemently.”

IndiGo By Ghosh!

     IndiGo’s President Aditya Ghosh (below) also joined in: “While an IndiGo with more than 100 aircraft cannot restructure its network by withdrawing from any unprofitable routes, an airline with just five aircraft can fly abroad with the sixth one—this is not acceptable.”
AdityaGhosh       Sometime ago, a high-level FIA delegation comprising IndiGo’s Rahul Bhatia, SpiceJet’s Ajay Singh, and GoAir’s Jeh Wadia handed a note to Jitendra Singh, the Minister of State in the Prime Minister’s Office.
      The note mentioned that FIA’s views were not being heard out in the formulation of the NCAP.
      A government press release mentioned that FIA “sought Government’s intervention to incorporate some of their concerns while finalizing the National Civil Aviation Policy being prepared by the civil aviation ministry … They complained that while no other country in the world allows substantial ownership and effective control of its airlines to be taken over by foreign airlines.”

Who Controls What?

     India has permitted some airlines to operate despite being effectively controlled by their foreign parent. The Minister supposedly told the delegation that their views would be sent to the Ministry of Civil Aviation.
      Whatever the outcome of the war of words, Minister Mahesh Sharma, the Minister of State for Civil Aviation, commented that “as an Indian citizen, he (Ratan Tata) has given a suggestion.
      “We welcome his suggestion.
      “We will try to take a call on his suggestion. “The government will have take a call at the right time.”
Rahul Bhatia and Jeh Wadia       Reacting to the allegations, a statement has been issued by Tata Sons mentioning, “both Tata SIA Airlines (Vistara) and Air Asia India have transparently shared their views on the policy, like other stakeholders.”
      The statement goes on to point out: “Keeping the national interest in mind, Tata Sons believes that the 5/20 rule must be abolished if Indian aviation is to achieve its full potential and improve India’s connectivity with the world.
      “Apart from the fact that there are no global parallels to this rule, the rule is discriminatory to Indian airlines as foreign airlines that do not meet these criteria are allowed to operate in Indian skies, but Indian airlines cannot enjoy reciprocal rights. Indian carriers are best placed to promote India as a tourism destination and should be encouraged to provide international connectivity if they wish to do so…
      “The 5/20 rule has thus far principally benefited only foreign airlines, who have captured 70 percent of the international traffic with India, taking Indian jobs and revenue with them.
      “This has also resulted in poor utilization of bilateral air traffic rights by Indian operators.
      “The removal of the 5/20 rule is estimated to boost international traffic to and from India to over 100 million passengers by FY2021, compared to 43 million in FY2014.
      “This would stimulate the domestic market, and the resultant growth would help all domestic carriers.”
      Utilizing its unique on-the-ground access in India, FlyingTypers will continue to follow the story and keep our readers posted.
Tirthankar Ghosh

     Ask Duncan Watson—the lively and energetic air cargo Vice President moving up at Emirates—what his top priority is as February 2016 comes to a close, and his answer is immediate.
     “Our restructure is just about complete.
     “Emirates air cargo’s business in the United States has grown at such an accelerated clip that we decided to create three distinct regions, which all came together as of last January.
     “To deal with continued growth in 2016, we have a regional cargo manager for the western United States based in Los Angeles Siegfried Meyer, another in Chicago (to be named very soon), and our regional cargo manager for the eastern USA based in New York City is Edward O’Neill.”
     Speaking to a very broad audience of customers in today’s dynamic market Duncan Watson is emphatic:
     “You want to do business with Emirates for historical reasons, for the things for which we are well known and respected, as a great brand with exemplary service.
     “Freight forwarders and other service partners should know that if they have not had a conversation with SkyCargo recently, they will discover that, in addition to our aforementioned strengths, we are more entrepreneurial, more flexible, and in line with a very competitive world market.
     “It’s not about teaching an old dog new tricks, either. As we move forward, SkyCargo has refined its abilities with huge investments in our connectivity, technical accessibility framework and infrastructure—for example, with the giant all-cargo operation at Dubai World Central.
     “We have also looked at every aspect of our offering and can say candidly that we are more approachable than ever.”
     Duncan Watson joined SkyCargo nine years ago as a regional manager for the Middle East and Africa.
Prior to his service at Emirates he spent some exciting years as part of DHL Express serving in his final role there as Regional Commercial Director in the Middle East.
     As of February 1st, Duncan looks after the Americas, and Middle East including the important huge home market in the UAE.
     He is married and lives in Dubai with his wife, Michelle, and two children, Leah and Stanley.
     “My boss wants me to spend more time in the UAE and I am glad to do it,” Duncan said.
     Asked about new opportunities Duncan said:
     “I think there are multiple opportunities for us, especially if we open our minds to new, growing industry trends.
     “For example, as you read this a trade show in Dubai titled ‘Gulf Food’ is occurring; it draws (among other attendees) a huge participation from the world’s perishables buyers and producers.
     “Gulf Food is among the top three events of its kind in the world and a must for Emirates SkyCargo as a place where real business is done”.
     “Another industry-specific event takes place in Boston in September, when big pharma meets.
     “SkyCargo will be represented in 2016 at IQPC for the first time because there is a large group of people we want to talk to directly.”
     As for what air cargo can do better, Duncan is resolute in his winning strategy.
     “Keep it simple, be efficient, and make it easy for the customer to do business.
     “We as an industry sometimes have a tendency to over complicate things,” Duncan Watson smiled.
Geoffrey

1978 wasn’t a leap year, but had my older brother been born in either 1976 or 1980, and just one day later, he would be a leap year baby, or a ‘leapling.’ He would have turned about nine years old yesterday, despite his five-o-clock shadow and six-foot-three frame.
     Why do we observe leap years? One would think, given how paltry are the days in February (the shortest month), we could just make the decision to throw February an extra day and, well, call it a day. But it’s a bit more complicated than that.
     The problem is that the universe doesn’t exist in whole numbers. Fractions abound. From the endless stream of numbers that define the mathematical constant Pi to the maddening square root of 2, our entire existence is riddled with runaway number sequences.
     Simply put, the earth spins on its axis at a different rate from its revolutions around the sun. While our calendar is a nice, round 365 days, it actually takes our little green marble a bit longer to circuit the sun—approximately 365.2422 days. And as anyone who has ever put pennies into a jar knows, little bits do add up.
     The Sumerians were the first to attempt to wrangle the days of the year into something accountable.      Their calendar was 12 months long, with 30 days per month. Unfortunately, this gave them a year that was one whole week shorter than the earth’s transit around the sun. The Egyptians, ever inventive, simply added 5 days of partying to their year—a fun, albeit inaccurate alternative.
     The Julian Calendar, devised by Julius Caesar and the astronomer Sosigenes, was created to account for extra days lost due to an outdated lunar Roman calendar that had thrown Roman society off by a full 3 months. Interestingly, ‘The Year Of Confusion” (46 B.C.) was a full 445 days and was instituted by Caesar to realign the calendar all at once. After 46 B.C., the 12-month, 365.25-day-a-year calendar was instituted, with the .25 day understood as a leap year thrown in every 4 years.

     One might think that was the end of it, however, our fractional, squirrely universe would once again prove intractable. The solar year is, in fact, only .242 days longer than a calendar year, so even rounding the number up to .25 threw off things—specifically, by 11 minutes a year. Again, think pennies in a jar. After 128 years, those 11 minutes translated into an entire day’s difference between our calendar year and our solar year. After a few centuries, the difference became monumental.
     We can thank Christianity for helping to establish our modern Gregorian Calendar. By the 16th century B.C., the Julian Calendar had pushed out several Christian holidays by as much as 10 days. Pope Gregory XIII couldn’t abide the discrepancy, and so founded the Gregorian Calendar in 1582, with a one-off, 21-day October just for that year to right the wrong of the previous centuries.
     One might think the rule of the leap year is an extra day every 4 years, but in fact our modern Gregorian Calendar has far more explicit rules: an extra day every 4 years except for years divisible by 100 and not 400 (1700, 1800, and 1900 were, therefore, not leap years). If that sounds—finally—satisfyingly precise, think again. According to experts, the tiny, fractional minutes and seconds of time still left over will eventually cause our calendar to misalign by two days. Thankfully, we have another 10,000 years before we have to worry about that.
Flossie

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Vol. 15 No. 14 Uli: The Quiet Man Of Air Cargo ICAO ANC Will Outlaw Lithium Chuckles For February 17, 2016 Arafa Goes Global At Swiss Letters To The Editor for February 17, 2016 My Friend In Holland	Vol. 15 No. 15 An Evening Along The Chism Trail Dornier Push-Pulls Into 2016	Vol. 15 No. 16 Lithium Ban Enacted All About Lithium Beam Me Up, Scotty Black Wings Pioneered Flight

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