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   Vol. 15  No. 55
Wednesday July 20, 2016

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Dallas Was One Cool Customer
     Dallas K. Sherman died on Friday, July 15, 2016.
     Dal, who was born in San Marcus, California, in 1929, was 86 years old.
     He entered the Civil Air Patrol in 1943 and caught the wind of passion for flying.
     As an enlisted man, he had to work very hard to receive his fighter pilot wings.
     But early on Dal showed a keen determination, which was captured in an early photo of his Mom pinning his wings when he graduated as a pilot in 1953.
     He is also pictured later with his F100.

Dallas Sherman Early Life

     Dallas Sherman spent 18 years as a U.S. Air Force fighter pilot and was a fly-boy hero well before we got to know him when went to work for American Airlines Cargo.
     He left the service as a Major because his Uncle John McPherson, of Airborne Freight Company fame, wanted him full time.
     He thereafter pursued his business career in transportation and aviation beginning with Airborne Flower Traffic (later Airborne Freight Company) where was instrumental in its growth from an airfreight forwarder and travel agency to a worldwide, integrated express air carrier.
     Dal worked for UPS in the 1980s and later was recruited to Guinness Peat Aviation (an Irish company that leased aircraft), forming and leading European Expedite in Belgium (a DHL courier airline concept).

AA Cargo Team 1990
Once upon a time at American—Circa 1990, Back Row: Bob Kmiotek, Bill Boesch, Joe Phelan, and Dal Sherman; Second Row: Bob Ciminelli, Jimmy Caruso, and Richard Shackleford; First Row: Dan Agostino, Ken Jones, Lou Montella, and Steve Leonard.

     Dal joined American Airlines Cargo in 1990 when Bill Boesch recruited him as VP of Cargo Marketing and Business Development.
     Bill Boesch recalls first meeting Dallas in Europe during the early 1970s.
     “Dallas was VP of Europe for Airborne, one of Seaboard’s largest customers, during a time I was running SWA’s global sales effort,” Bill said.
     Dallas impressed me from the get-go.
     “Firstly, he was an expert in air cargo and the airlines.
     “He was also a world class businessman, and perhaps best of all, Dallas was a warmhearted colleague.”
     Bill recalls that Dallas kept in touch throughout the years, admitting that they “called each other often for advice.”
Dallas Sherman, Carl Carlson and Garner McNett     “When I joined American as President of AA Cargo, we needed a businessman who knew air cargo and could work with a young team to run the marketing operation and mentor the young people who would take over for us.
     “I had a hard time convincing AA leadership that a 60 year old had the energy to do all that we needed to be done to build an effective cargo program.
     “But the naysayers learned very quickly their fears were unfounded.
     “In short, Dallas Sherman was a wizened, forward-looking, nurturing individual who saw the big picture, always took the time, and had the simple, decent patience to bring everyone else along. He always solicited everybody for ideas and new thinking.
     “Dallas, in every sense, was a renaissance man,” Bill Boesch said.
     “He was usually the first one in the office and the last one to leave.
     “He did a job that most in the industry viewed as extremely challenging—taking the world’s leading passenger airline and turning it into an air cargo power without using freighters—and became respected by competitors and customers,” Bill Boesch said.
     Just like many others, Bill remembers Dal as one of his mentors, concluding simply:
     “I will deeply miss my friend.”
     “I am really saddened to hear the news.
     Ram Menen, who served as DSVP at Emirates SkyCargo said, “Dal was a great guy. I really enjoyed interacting with him in the early nineties and meeting and catching up with him last year.
     “We will all miss him dearly,” Ram said.
Mark Najarian     Today Mark Najarian is Managing Director-Customer Care at American Airlines, but he came up in AA Cargo having served as Managing Director of Cargo Sales.
     “In the early 90s, when AA and AA Cargo were growing in double digits every year, and Bill Boesch was President of Cargo,” Mark recalled, “he assembled a team of experienced leaders to help guide the business and several new hires to the company, including myself.
     “For me it was great to have Dal around as a mentor and as someone whose kind spirit and experience were very valuable as we endeavored to lift AA Cargo into an industry leader.
     “As (Air Cargo News/FlyingTypers) documented so often during those years, our results spoke for themselves and made AA Cargo a leader to this day.
     “Dal was a great man.
     “May he rest in peace,” Mark Najarian said.
     Yutaka Saito, an alumnus of Emery Air Freight who later built the AA Cargo brand from his Tokyo-base as managing director of cargo from 1996 to 2007, remembered Dal:
     “I am extremely sad to hear my dear friend, Dal, has gone.
     “I recall many pleasant memories as we worked and enjoyed our experiences at American Airlines and life together.
     “My deepest condolences to his family.”
     For a reporter, Dallas Sherman was a dream: an informed, assured, always quiet classy guy whose word was his bond.
     There was an ethereal decency about him that shone through in everything he did.
     He was a wonderful human, being full of spirit and giving in every situation I ever saw him in.
     Dal was that kind of sweetness—he always brought out the best in people.
     He was never a pushover, either. You just wanted to be on his team.
     He had qualities that you can only hope for in other people.
     He will forever be in my heart as a genuine cool customer.
Dal And Michele Wilkinson     After American, Dal moved to Tailwind International, Inc., an air transportation and aircraft chartering service based in Addison, Texas. Founded in 1989, Tailwind was operated by Dal’s wife, Michele Wilkinson (pictured here with Dal).
     Michele, who was with Dal at the end and for their many years of marriage and business together, said that she was greatly moved by his courage.
     “He loved this country so much, spent 18 years of his life in service with the Air Force, and just a few weeks ago, finally related some of those untold stories to his children.
     “They didn’t even know about the truly heroic things he did in defense of our great nation!
     “We will have a military burial in San Diego, a little cemetery right outside San Marcus, where he was born.”

About Dallas

     Dal’s last flight home was aboard American Airlines.
     The carrier Dal served so well honors all present and retired military and transported him to his final resting place in SAN.

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Over-supply Job One At Cathay

Last January, Chief Executive of Cathay Pacific Ivan Chu (third left) and Chief Executive Officer of Dragonair Algernon Yau (third right) rebranded Dragonair as Cathay Dragon. Mr. Chu said that this was not a merger, as “Cathay Dragon remains a separate airline."
Cathay Dragon's livery features existing elements of both carriers, but most noticeable is the adoption of the Cathay Pacific brushwing logo.
On July 11 Mr. Yau went on indefinite leave “for personal reasons” and Cathay’s Director of Corporate Affairs James Tong now serves as acting chief executive of Cathay Dragon.

     In the 12 months leading up through April 2016, Cathay Pacific and sister carrier Dragonair saw both volumes and revenue in tons per kilometer drop compared to the previous year, by some 1.8 percent and 3.4 percent respectively. This came despite a 2.1 percent year-on-year tonnage uptick in April that the carrier said was a “better than expected” performance underpinned by the capture of shipments out of China and India.
     But despite the slowing of the Chinese economy and disappointing demand from key European and U.S. markets, John Cheng, Manager Cargo Sales and Marketing, told FlyingTypers his main concern was the excess of capacity in global freight markets.
     “We see over-supply as more of a challenge rather than any sign of major weakening on the demand side,” he explained. “As we entered into 2016, we were faced with an increasingly competitive market environment, with overcapacity continuing to put pressure on cargo yield. We will continue to review our freighter capacity to make it commensurate with demand.”
     And that freighter capacity is substantial—Cathay has some 24 freighters in operation at present and one more 747-8F is due for delivery later this year.
     Cheng said Cathay was the leading air cargo carrier in Asia last year, having carried a total of 1.8 million tons of cargo and mail. “This was against a capacity increase of 5.4 percent and a 5.4 percent rise in revenue-tons-kilometers,” he said. “The company currently operates freighter services to 46 destinations and also carries freight in the bellies of its 140-plus passenger aircraft, which serve a growing global network.
     “The company is going through a brand refresh with new livery to symbolize continuous efforts to deliver excellent service to our customers. The new livery will be progressively introduced onto all the aircraft in both its passenger and freighter fleets.”

  As we went to press . . . Cathay Cargo adds B747-8 twice weekly freighter service into Portland International Airport (PDX), launching on November 3, 2016. It will operate on a Hong Kong–Anchorage–Los Angeles–Portland–Anchorage–Hong Kong route every Thursday and Saturday.
  Cathay and Dragonair said they carried 151.130 tons of cargo and mail in June for an uptick of 7.1 percent over June 2015.
  CX said, “cargo tonnage has stabilized but yields continue to suffer.”

     However, although Cathay has ramped up its marketing efforts, recent reports suggest the company is making major cutbacks to contain costs, with Chief Executive Officer Kwok Leung (Ivan) Chu admitting that business challenges had become more acute in recent weeks, with continued pressure on its cargo business being compounded by “a weakening trend in the passenger business.”
     Cheng said that Cathay was responding to the challenges facing its cargo business by further developing its range of service options for customers, including exploring how to improve existing specialist products such as Wine LIFT, Pharma LIFT, Priority LIFT, DG LIFT, Fresh LIFT, Live Animal LIFT, Secure LIFT, Courier LIFT, and Expert LIFT.
     In May the company also announced plans to create a freight network with Lufthansa Cargo starting next year. Initially this will focus on Hong Kong to Europe services before expanding to eastbound services as 2017 progresses. Customers will be able to access the combined networks of the two carriers via either airline’s booking system, while joint handling at HKIA and Frankfurt will mean shippers have a single point for export drops and import deliveries.
     “We continue to invest in our products and services to provide superior service to our customers,” said Cheng. “An example is our Pharma LIFT product, which provides excellent cold chain logistics for high value, temperature sensitive service for the life sciences market.”
     The carrier also has a sizeable presence in South East Asia and India, markets it has previously referred to as “lower yielding.”
     Cheng said key products from SE Asia and India were perishables, garments, and IT products.      “Overcapacity in these markets has led to comparatively lower cargo yield,” he admitted. “Our focus is on pharmaceutical traffic, which sustains higher yields for service quality.”

   The International Federation of Freight Forwarders Associations (FIATA) and The International Air Transport Association (IATA) have a deal to action a FIATA/IATA Air Cargo Program (IFACP) to replace the existing IATA Cargo Agency Program.
   Formal signing of the agreement is set for October at The FIATA World Congress held in Dublin, Ireland.
   The phased rollout of IFACP will begin in early 2017 with Canada as the pilot country. It is anticipated that the program will be global by the end of 2018.
   The new program moves decision-making on the rules governing the airline-forwarder relationship away from an airline-led conference to a governance body—the IATA-FIATA Governance Board (IFGB)—jointly managed by forwarders and airlines, which reflects today’s market conditions.

Air Cargo News 40th Anniversary Issue

Chuckles For July 20, 2016



   Cargo Building 78 at John F. Kennedy International Airport is reborn as a 178,000-square foot air cargo facility and animal handling center under 30-year lease from the airport operator to ARK Management.
   Cargo Building 78 is also the new home of Air France KLM Cargo and is now open for business. As part of “The Ark”—an expanded live animal center at JFK scheduled to open later this year—it features two cooler cells for pharmaceuticals, flowers, foodstuff, and perishable products and a full range of services to handle all manner of live animals (pets, zoo animals, birds, insects, fish, etc.).
   New AFKL capabilities at Building 78 include in-house technical expertise to handle all aerospace logistics including AOG’s, aircraft engine and components, and a secure area for valuables.

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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Chuckles For July 11, 2016

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Cargo Powerhouse Easy as ABC
Main Deck Cargo
Chuckles For July 14, 2016

From Russia With Love

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Feeling Brendan Gill

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Airports Beyond Flights & Tons
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Chuckles For July 19, 2016
Panalpina Airflo Accelerates Perishables
Sun & Moon

Publisher-Geoffrey Arend Managing Editor-Flossie Arend
Film Editor-Ralph Arend Special Assignments-Sabiha Arend, Emily Arend Advertising Sales-Judy Miller

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