RE: Lufthansa Cutbacks Tip Of The Iceberg

Dear Mr. Arend,

   It has been almost 10 years to the day since I commented on a certain Mr. Bill’s (negative) statements addressed to Dr. Andreas Otto criticizing well-balanced price hikes. Well, time has proven Dr. Andreas right, as predicted by myself. But that’s history. Having said this, now, after these 10 years, I’d like to contribute another 2 cents to “Lufthansa Cutbacks Tip Of The Iceberg.” I guess, as a 30+ year “veteran” (now retired) of German Cargo/Lufthansa Cargo, I may still have enough of a clue to do so.
   I am bugged by some of the statements below the “Iceberg” drawing because during my career I heard them again and again. Examples:
   “Throwing the baby out with the bath water” is synonymous with "I don’t have an idea what I am talking about, but I keep on talking anyway.” Where’s the beef?
   If the early retirees didn’t do all in their power to bring their youngsters up to speed, they should’ve retired earlier, because they didn’t perform (at least this part) of their jobs. And, early retirees are leaving with benefits and the younger folks are holding onto their jobs. That’s not bad, is it?
“Re-inventing the wheel” is also something from (pardon my French) the bullshit bingo handbook. Could be topic 4, the others being: 1. we have always done it this way, 2. we have never done it this way, 3. and in general...
   While the world around us is striving for “Industry 4.0,” the air cargo business is still somewhere in the range of 1.4. Who, other than the youngsters, is predestined to force major pushes—beyond (in)famous “Cargo2000?” If they make mistakes, like re-inventing a spike of the wheel, so be it. Just keep the error margin low and the wheels spinning.
   During my time in operations, handling the whole of Asia, “East of Suez” was run by some 90 people. So, in fact, handling was outsourced all over. Nevertheless, it was the best performing area worldwide. It might be a different story when it comes to operating the hubs. But even there the key word was and still is: process, regardless of outsourced and/or in-house.
   Now I come to the worst part: I was employee Nr. 13 (lucky number) when I joined German Cargo (GCS) in 1977; 4 707F, later 5 DC8F. The company changed a lot, when—early 1990s—it took over most of Lufthansa’s freighter operation (747F, 737F) and was renamed “Lufthansa Cargo Airlines.” Freighter Operation! Not anymore!
   It is simply ridiculous to compare a tiny GCS to a comparatively giant Lufthansa Cargo. It’s even more ridiculous to maintain that GCS standards kept Lufthansa Cargo going. Maybe there were a few standards and procedures, but that was a drop in the ocean. Lufthansa Cargo over time has developed (further) its own standards and its own “spirit.” And it did this well.
   Noteworthy: GCS was never acquired by Lufthansa Cargo. It has always been a 100 percent subsidiary of Lufthansa and was—in 1994—transformed into Lufthansa Cargo AG. Whoever your source on this was: tell him to get the basics right.
   In order not to waste more of your time I will stop here with one “famous last sentence”: Yes, times are difficult and challenging. When haven't they been? If there’s one thing I feel sorry about, it’s that unfortunately, I can’t take a part in fighting challenges anymore.
   One more thing: As far as I know, Ms. Menne is leaving Lufthansa by the end of September. I wouldn't call such a 3+ months notice “suddenly.”

Sincerely,
Werner Schuessler
Niedernhausen
Germany

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Dear Herr Schuessler,

   Thank you very much for your thoughtful and comprehensive letter casting a decent and expansive rationale on current events at Lufthansa Cargo.
   In your opening paragraph you mention an incident long ago, which involved a UK publication that began in 1983 by taking the name of our publication, which began in America in 1975.
   So in fact this would be your first comment to us about an editorial and again my most sincere welcome and thanks.
   Point of fact is we love and have the greatest respect and affection for Dr. Andreas and hope to have a dessert sometime with him in Vienna as he labors to lift the fortunes of Austrian Airlines.

Every good wish,
Geoffrey

Dear Geoffrey,

   Although I admit Lufthansa Cargo is going through difficult times, I feel obliged to comment on your recent report. Especially basing your writing on anonymous sources (why wouldn't they state their names? Are we still in the inquisition?)
   And then in particular, the comments of a retired source. Knowing from my own experience (being retired from Lufthansa), you will not and cannot have enough inside knowledge to judge what is really going on.
   Let it be, the measures taken will hopefully take the company to a good turn.
   There were always those in the forwarding community who thought service and quality sucks, but it was proven otherwise.
   I believe a little boost and confidence would do better.

Best regards,
Klaus Holler

     “We are committed to consistently serving our airline customers with exceptional service that is benchmarked against global standards,” declared Jared Oswago, Divisional Manager, Siginon Aviation at Jomo Kenyatta International Airport (JKIA) in Nairobi. Singapore Airlines Cargo, a Siginon business partner for the past ten years, re-signed its handling contract for an additional three years.
     Named for a tree found in the Rift Valley of Kenya, Siginon Aviation Group is a multi-modal handling company that has been in business since 1985, when it began in Mombasa with four people and a couple of trucks.

     Today the company serves East Africa cargo and logistics, including the seaport of Mombasa as well as the airports of Mombasa and Eldoret.
     Siginon debuted a large new cargo-handling center at JKIA in 2014 featuring all the bells and whistles, including the finest cool-chain operation at the gateway.
     Siginon sees itself expanding its business base upon completion of the very exciting standard gauge high-speed Kenya railway, which is scheduled for operation by mid 2017.
     The Sh400 billion infrastructure investment will unlock movement between the Port of Mombasa and Kenya’s capital of Nairobi.
     But business will get even better when the line extends SGR to Uganda, Rwanda, and South Sudan.
     No doubt, Africans are excited and preparing for what is expected to be a major boost in transportation and employment.
     The positive effects can even be felt ahead of the rail line debut in Kenya, evidenced by the reported 50,000 people employed directly or impacted in some measure by the SGR mega-project.
     “Our passion is to be Africa’s leader in logistics and air cargo handling,” beams Ruth Nduta, Brand & Corporate Affairs Manager at Siginon Group.
Geoffrey/Flossie

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   Embry-Riddle Aeronautical University celebrates its 90th year as the hosting sponsor of the 2016 Air Race Classic (ARC), which kicked off last Saturday, June 18, with a barbecue on Embry Riddle’s campus in Prescott, Arizona, and culminates with a banquet in Daytona Beach on June 26.


   The great, all-female cross-country airplane race has ties to Amelia Earhart.
More than 100 female pilots aged 17 to 90 will be competing in the oldest race of its kind. This year's course covers 2,716 miles and consists of more than 50 teams.
   In addition to hosting the start and finish, Embry-Riddle’s residential campuses in Arizona and Florida will field four female student and instructor pilot teams as part of this year’s race, the ARC’s 40th, which features a special theme, “Collegiate Cross-Country,” honoring aviation programs at universities and colleges across the country. This year also marks 20 years since a similar route was run between the two campuses in 1996. For the first time ever in the university’s history, a faculty team will participate.
   For More Info. click here.
Flossie

Vol 15. No. 47
Lufthansa Cutbacks Tip Of The Iceberg
ULDs Ain't Just Cans Anymore
Chuckles For June 20, 2016
Lightbox for June 20, 2016
Qatar Talks To The Animals