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“When
it comes to sorting priorities, the top priority at
American Airlines Cargo as summer 2016 begins is to
keep our focus on continuing our efforts around customer
experience and service and reliability, which, honestly,
are always top priorities.
“However, given
some of the extreme temperatures and increased passenger
travel, as a company we have once again regrouped to
make sure we have all the necessary tools in place to
ensure that all customers have the experience we aim
to provide every day.
“It also goes without
saying that we’ll continue to focus on the safe
and effective transport of cold chain and perishable
shipments, including increased collaboration efforts
with IATA and other supply chain contributors.”
That
Was The Year That Was
“Obviously, 2015
had its challenges from a global economic perspective
and 2016 continues to show signs of weakness. However,
we continue to build the organizational and technological
foundations, which continue to embody our core customer
focused strategy.
“One example of
this investment is our Customer Experience team and
I have received great feedback on this addition since
its inception last year.
“This year we will
continue to invest in the customer experience and our
network and fleet. Overall, our operational performance
has been at an all-time high on many different parameters—and
with service to over 50 countries, many on new environmentally-friendly,
fuel-efficient aircraft, I’m excited to continue
to provide new options to our customers.”
AAround
The World
“American continues
to introduce some great new options in the Pacific,
including Haneda (HND), Sydney (SYD), most recently
Auckland (AKL) and, later this year, our second flight
to Hong Kong (HKG) and first from our industry leading
hub in LAX.
“We’ve also
just won authority to operate in Cuba and are looking
forward to further defining our product offering there.
“From a fleet perspective,
we just rounded out our Boeing 777-300ER fleet with
aircraft 19 and 20, are about to take delivery of the
787-900, and look forward to welcoming the Airbus A350
in less than a year.”
Jim
Dandy To The Rescue
Although he gives the
credit to others and is quite unassuming when it comes
to taking curtain calls, attention should be drawn to
the apparent ease by which American and USAirways Cargo
combined themselves, at least from the customer’s
point of view.
Just think for a moment
of the ripples to uproar that occurred when other airlines
attempted to meld services together. From that vantage
what happened, or rather didn’t happen, between
USAir and American Airlines looks all the more remarkable.
Jim assumed command as
president of American Airlines Cargo in December 2013,
but he spent a decade and a half in the airline business
prior to his current posting serving as managing director
of Commercial Planning and Performance where he led
the airline’s commercial restructuring, including
the airline’s strategic business plan, commercial
financial budget, and network profitability and performance.
Early in 2013, he was
one of six to be named to the core integration leadership
team responsible for the integration of American Airlines
and US Airways.
Earlier Jim earned his
MBA from J. L. Kellogg School of Management at Northwestern
University and his bachelor’s degree from Cornell
University.
Schools
Out—Time For Report Cards
“If we gave ourselves
(the team at American Airlines Cargo) a report card
just like those being issued this month as the school
year ends across the world, I will always tend to be
overly critical on myself, but I am pleased with our
progress.
“Like any good student,
we’re always looking for ways to excel, but, as
we have an incredible amount of unfinished business,
I will leave most grades until later,” Jim smiles.
“We’re specifically
looking at how to modernize the customer journey from
end to end but, perhaps even more importantly, we are
focused on building a reputation for quality for our
customers regardless of the season or the situation
on the passenger side of the business.
“As for our team,
I would give them an ‘A’ for their dedication
to improving and transforming the way we do business,
which is key to our continued success.”
Jim Butler with Steve Garth,
Regional Manager Cargo Sales – ORD, and
Linda Dreffein, Sr. Manager Cargo Sales –
Eastern Division, at the warehouse in Chicago.
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Defining
Teamwork & What Works
“There’s
no magic here.
“It’s all
about the basics: continually recognizing employees
and giving them the tools they need to succeed, providing
our customers with a reliable operation they can trust,
and collaborating with our industry partners in a way
that offers more transparency and aligns with their
goals.”
About
Air Cargo Trade Shows
“We’ve been
very busy this year. I’ve traveled to South America
and a number of places within the United States, just
to mention a few.
“As for which ones
are best, it’s hard for me to answer this one,
since I learned something different at each venue.
“My favorite thing
about all trade shows is getting to meet with customers
face-to-face and working with other thought leaders
across the industry.
“Best of all, it
is an opportunity to thank our loyal customers in person
for the incredible support we continue to receive.”
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The
above words came from Jim at the big Air &
Sea Cargo Americas event in Miami last November.
They delivered the unvarnished truth and were
a knockout for our money—it was the best,
pure energy conversation at the entire conference.
We also liked that
Jim is no showboat.
We suggested that
he address the audience in Spanish, thinking—since
he is fluent in the language—that it might
pair nicely with the great Latin flavor of the
Miami market.
But he just politely
smiled and addressed the audience in the language
on everybody’s air waybill, adding:
“We all have
to embrace technology and partnerships that drive
real change, and that means focusing on speed
and visibility, while bringing additional value
to our customers.
“Despite air
cargo having a global reach where you can fly
to almost any major commerce center within 24
hours, together our inefficiencies have combined
to slow the time to delivery.
“We need to
be faster.
“The industry
has been very fractured and speed will require
alignment from the key players: forwarders and
airlines.
“We need to
look for opportunities to improve all aspects
of our business when it comes to tender, transit,
and delivery times.”
Our take some seven
months later is that Jim Butler—who heads
up the cargo offering of the biggest airline in
the world—is an evenhanded, very smart “Prince”
of air cargo. If he so chooses, he could easily
move into the role of “King.”
And even though
he might dismiss the notion, we recall what Mel
Brooks said in the movie History of The World
Part 1.
“It’s
Good To Be The King,” Mel said. |
The
Ultimate Award Experience
“While
the industry challenges certainly make me feel like
I’ve been in cargo for decades, it has been less
than three years so far.
“That being said,
I am amazingly lucky to have one of the best teams in
the industry, as well as an incredibly loyal set of
customers.
“Thus, rather than
select a specific air cargo industry award—as
we are not focused on winning awards—I will say
the most impactful awards are those based off the opinion
of shippers, forwarders, vendors, and other people we
work with on a daily basis as it provides validation
of our continued progress and success.”
What’s
Next
“We’ll continue
driving toward a greater customer experience by delivering
operational reliability, exceptional service, and a
forward-thinking approach to the way we do business.
“This includes timely
notifications throughout the shipping process, consistent
interactions through our team and self-service tools,
and working with our partners to maintain a leadership
position in the air cargo industry.
Anzac
Express across the Tasman Sea evokes images of
a proud time when The Australian and New Zealand
Air Corps were formed.
The pride lives
on today as American Airlines Cargo now flies
from LAX via the high, wide, and handsome B787
daily to Auckland.
Having launched
a daily, non-stop service between its Los Angeles
Airport hub and Auckland, New Zealand, Joe Goode,
Managing Director, Cargo Sales West at American
Cargo, declares:
“The B787
steps up to strong demand on the cargo front between
AKL (Auckland) and LAX (Los Angeles), as well
as additional demand beyond New Zealand into Australia,”
“AA plans
to expand operations across the Pacific, including
new routes ahead to Tokyo, Haneda, and Sydney,”
he added.
Reports state that
early on the new flights, outbound moved a variety
of perishables and other consolidated freight.
As cargo sales agent
in Auckland, GSA Cargo Services said inbound consignments
included medical supplies and mining machinery,
e-commerce goods, perishables, horticulture products,
edible fish, and that famous and always sought
after fresh lamb from New Zealand.
GSA also operates
offices in Brisbane, Melbourne, and Sydney.
Menzies Aviation
handles ground services, including cargo, in Auckland. |
How
About Those B787s!
“Our growing fleet
of B787s are certainly improving our offering because
they allow us to make routes work that were difficult
in our previous fleet given the fuel efficiency of the
fleet.
“We are about to
take delivery of the 787-9, so that will further enhance
the offering we have with that fleet.”
The
Promise
“We will continue
to challenge the status quo and look for ways to enhance
our products, network, and tools with the customer in
mind.
“Our efforts will
continue to revolve around engaging our employees and
finding more efficient and transparent ways to transport
cargo.”
About
Freight Forwarders
“American has a
longstanding successful dedication to the success of
the air cargo industry, which means our two organizations
share a very similar respect for the freight forwarders
who make our business possible.
“I think there are
continued opportunities for the organizations within
the air cargo communities to work together on legislation,
supply chain efficiency, and building the attractiveness
of the industry for the next generation.”
Geoffrey
|
Stewart
Sinclair, Executive Vice President Asia, Middle East,
and Africa for Worldwide Flight Services and Managing
Director of Bangkok Flight Services, said that many
Asian airlines did not have specific plans linked to
the SOLAS amendments. “I have not heard anything
from our customers with regards to contingency planning
for July,” he said.
Lucas
Kuehner, global head of air freight at Panalpina, told
FlyingTypers the industry had realized there
might be some disruptions at ports, but the IMO’s
softened stance should ease the transition to the new
rules. “Our ocean freight guys don’t expect
huge disruptions, but it doesn’t take much of
a move from ocean to have a big impact on air freight—it
only takes 23 TEU to fill a B747-8F.
“We expect it will
impact locally, but it won’t be like the US West
Coast strike. It won’t save the air freight industry’s
year.”
100%
Green