"The actions we have taken this year have made us lean and overall in an excellent position to deal with 2017, no matter what happens.”
      Those words may sound like the new normal for 2016—brave statements offered up like trial balloons as overcapacity and weak markets continue to drive air cargo losses.
      But for Ingo Zimmer, CEO of fast-rising GSA ATC, who we spoke to in Frankfurt last week, a level-headed, conservative approach is fast on the heels as you read this.
      “We expected 2016 to not be a very good year in this challenging environment. It was expected that in line with the market, our revenues and ebitdas would drop, but we now project we will achieve good numbers for 2016. In terms of tonnages, we are certainly doing better.”
      In fact, ATC is the hottest GSA in the world today.
      “Our company is made up of not only experienced airline people, but many of our executives, myself included, started in the freight forwarding industry. We also train our reservation and customer service staff extensively to recognize the value and importance of the freight forwarder.
      “That makes us especially sensitive to the demands and expectations of shippers and forwarders—down on the ground, shipment for shipment—as the airline’s most important customer is our top priority.
      “We know what the forwarders’ expectations are, as we speak the language of the forwarder.”
      ATC is experiencing a surge in business and has seen their client list skyrocket during the first six months of 2016 with the addition of SAS, Air Tahiti, and Ethiopian in France, Air Asia in Delhi, Saudia and Silkway in Argentina and Brazil, Air Serbia in USA, and Thai Airways in Spain.
      “Right now for the first six months of 2016, we are top of the heap in Spain and among the top capacity providers:  number one in Switzerland and among the top five in Germany.
      “On the broader front, while cargo is reporting a serious downturn with yields under attack, ATC expects to maintain our record in 2016.
      “Our objectives are pretty much in line with every other forward thinking, sustainable plan, taking into account the current business environment.
      “We have put in cost-cutting measures in basic processes; for example, moving our data capture to our holdings subsidiary in Bulgaria. At the same time, we have put additional resources in vertical sales, i.e. pharma, express, and VAL cargo.
      “We are deeply committed to customer service and measured growth in markets where ATC can see a need.
      “Our business plan is not a sprint but a long-term commitment in terms of service, reliability, and customer care, as our approach has shown.”

ATC has an apprentice program training young people for the air cargo industry. Here Volker Dunkake (second from right), Head of Product Etihad Cargo at ATC Aviation Services AG, an old hand in air cargo, joins the ATC apprentices in Oktoberfest fun.

      In fact, ATC reports that overall tonnage growth has set records in 2016.
      “We are lean and dedicated, operating $300 million Euros of throughput with just 115 people.
      “Our philosophy is get the best people and advance the idea of team spirit within ATC at every turn.
      “The overused phrasing is ‘family atmosphere,’ but at ATC we show that every day, with a staff of people that are close knit not only within the company but also with our customers,” Ingo Zimmer said.
      In one or several countries, ATC represents airlines such as Etihad, Qatar, ANA, Avianca, GOL, Turkish, TNT, Ethiopian, Royal Air Maroc, Air Asia, CAL, Thai, Saudia, TAP, and others.

Oktoberfest Celebrates

      ATC Oktoberfest hosted more than 500 guests last Wednesday at “Anglerheim Moerfelden” located in a bosky dell quite close to Frankfurt Airport. Nestled in the woods against Moerfelden Lake, the place is a fisherman’s favorite.
      There was great food, beer, music, dirndls on the ladies and lederhosen on the men, and everyone took a step back to celebrate the year and traditions with pied piper Ingo Zimmer as the Grand Marshall.
      Inside the comfortable Moerfelden Lodge is a table with a small sign that pays homage to its inhabitants with the lyrical dedication, “table for fisherman, hunters & liars.”
      Outside in our quiet, forested setting, ATC has arranged photo booths, a coffee cart, a shooting gallery, and even a contest that supplies relief from everyday tension by pounding a nail into a log, with a shot of Jägermeister offered as incentive.
      There is a buzz of excitement and a palpable, collective release of everyday concerns in the air as a local band plays on.
      Inside the food tent heaping plates of local delights include everything traditional fare from Bavarian chicken and Weisswurst to Leberkäse with potato salad and other delights.
      And of course, wherever you turn beer and local wines are within arm’s reach.
      “This is our fourth Oktoberfest gathering and for all of us an assemblage of people in the community that we work with and admire daily,” said Dagmar Hanau, ATC Marketing Manager.
      “The end of summer is a good time to take stock of things as winter approaches and to say a simple thank you in a relaxed and supple atmosphere, to the people who support our efforts and mean so much to us.”

ANA & ATC

      At Oktoberfest we spoke to All Nippon Airlines VP Cargo Marketing & Services, Europe, Middle East & Africa Kiyohisa Nakazawa (center in photo), based at Heathrow Airport. He flew in for the event with Ms. Yu Chiba, UK Sales and was joined by Hiro Murai, Cargo Manager EMEA, based in Cargo City Sud, Frankfurt.
      “Air Cargo is a core activity in the ANA Group,” Nakazawa San said, “with a complete menu of services supported worldwide by our extensive freighter and passenger network.”
      “For us, ATC partnership provides reliable and high quality international air cargo and logistic representation as we grow our customer base.
      “Looking ahead, we will continue to develop ANA, leveraging our years of experience and vast network to stay ahead of our competitors in the ever-growing Asian economic market, with thanks to all our partners for their continuous support,” Nakazawa San declared.

Kintetsu Connection

      Matthias Fischer is Manager Operations & Procurement Gateway Export Germany for Kintetsu, the giant Japanese air and sea freight forwarder.
      Matthias is an air cargo pro. He is a lifelong forwarder who dates his experience back more than 30 years from his beginnings in the industry after military service, first at Hermann Ludwig and later Emery Air Freight.
      “Kintetsu’s hallmarks are our service level that maintains excellent quality and attention to detail,” Matthias said.
      “In a market where more than 60 percent of our business is directed to and from Japan, we offer a full menu of services, including door-to door, that is second to none,” Matthias smiles.
      “Kintetsu Frankfurt are 45 people all dedicated to air, and we are located in the center of the action at Cargo City Sud.
      “We are agile and able to respond to situations and we want your business,” Matthias said.
      “We rely on ATC because their pricing, service, and quality are always consistent and always excellent.
      “Also, ATC represents carriers such as ANA, Etihad, and other top-notch service providers.
      “But what tops it all is that ATC adds a personal touch to our relationship with top executive Ingo Zimmer and his team is always there for us, and in our experience that is just outstanding,” Matthias Fischer said.

The Great Ewald Heim

      The last time we saw the great Ewald Heim, he was heading up the effort to reverse the dreaded night flight ban for cargo aircraft landing at FRA.
      Ewald served Lufthansa Cargo nearly 50 years ago and has worked every side of the air cargo business imaginable, including a stint at Panalpina. He is the kind of wizened senior executive that only a truly great international shipping center generates.
      The wonderful thing about Ewald Heim is that in 2016 he is still thinking about the future while keeping an eye on the past. He is sought out to advise cargo people at every level of the business.
      “I still think about the night ban,” Ewald advances.
      “It is now set at 11:00 pm nightly, and my hope is that someone doesn’t get carried away and decide to go for a 10:00 pm shut down, although I doubt that could happen,” he said wearily.
      “Air cargo has a big challenge as it attempts to attract young people into the business,” Ewald said.
      “Once upon a time it was a given that you apprenticed in cargo and worked your way into a lifetime in this business.
      “That unfortunately is less a fact today as people move in and out of our industry at an every increasing pace of turnover.
      “This is a great business and we need talent to develop and stay in it to continue what began over 50 years ago, and that means keeping, training, and motivating our people.
      “ATC has built a great business by including a rich culture for cargo across the board and building a first-rate, experienced team from every side of the business—airline, forwarding, trucking, and regulatory specialists.”
      “My involvement in air cargo continues,” Ewald affirmed.
      “But even though I still consult and keep in touch, at this point in my life when the golf course beckons, I give into it and enjoy a relaxed round.
      “But I always go back to the people and progress of our industry,” Ewald Heim smiles.
Geoffrey

What would Oktoberfest be without pictures? Clockwise from top left—here is a picture of a picture! Sabiha Arend (FlyingTypers) and Dagmar Hanau (ATC) are seen whileTimothy Pfiel (r), Vice President and Managing Director U.S.A., ATC Aviation Services AG and Ingo Zimmer form a panel to judge best dirndl and lederhosen outfit. Hooray for the Chef’s serving up the best of the wurst all night long!

     One of our industry’s significant shortcomings is that most people outside of the industry do not give much thought to the many lifestyle and economic benefits air cargo delivers and facilitates for their daily lives.
      In times of crises when a child or loved one is critically ill and needs specialized medication, the expectation is that it will be either instantly available or will be sourced and available the next day at the latest.
      The same holds true for those last-minute gifts we buy and expect to be delivered overnight, the last-minute flowers we buy on Valentine’s Day for our loved ones, and the availability of our precious digital devices, without which we are lost—both from a professional and personal perspective. The immediacy and ubiquity has become commonplace with very little or no thought given to what makes it all possible.
      The air cargo backbone facilitating fulfillment of many of these needs has become an invisible network that is taken for granted by most.
      The same holds true for many government officials who fail to make the connection between their country’s economic prosperity and the many complex activities involved in the air cargo value chain that help to fuel this machine. The result is the development of unnecessary or counterproductive policies and regulations that at times inadvertently impede the development and sustainable growth of a sector so vital to the very same objectives they are ultimately pursuing—namely sustainable national and global economic growth and prosperity.
      However, there is a ray of hope. At a recent meeting in Shanghai, the G20 Trade Ministers launched the World Trade Outlook Indicator. This indicator prominently features airfreight as a key driver. The G20 policymakers clearly understand the importance of our industry and are looking to airfreight as one of the key contributors to the health of global trade. As noted in their methodology paper, “Air freight has proven to be a very timely indicator of world trade and an early signal of turning points in economic activity.” This is an important development that helps to highlight the critical importance of our industry and should hopefully also help us to enhance our policy dialogue with international bodies such as the World Trade Organization (WTO), particularly on issues like trade facilitation.
      So how do we close the gap between what is being done at the G20 leadership level and the various government departments involved in the air cargo value chain here in the United States? Surely, if the G20 Heads of State recognize the importance and impact of our industry on the global economy, the same understanding should hold true here in the U.S. As an industry we should relentlessly work towards closing this gap. The key being continuous coordinated dialogue at all levels across the various government departments to ensure that our industry is viewed as a strategic enabler, and the benefits air cargo delivers in the United States are recognized and put at the forefront of all decision-making.
      This is one of the key strategic drivers behind the launch of the U.S. Air Cargo Industry Affairs Summit (USACIA). It’s a powerful opportunity for us as a united industry to drive this point home. With VIP speakers such as R. Gil Kerlikowske,U.S. Customs and Border Protection (CBP) Commissioner; Peter Neffenger, Administrator for the U.S. Transportation Security Administration (TSA); and Alan Bersin, Assistant Secretary for International Affairs and Chief Diplomatic Officer for the U.S. Department of Homeland (DHS), among others, it is important for all industry players across the value chain to be present. This is an amazing opportunity to interact with these important government department heads to help them better understand our business and ensure they are taking our priorities and concerns into consideration.
      If there is one thing I am sure we are all aligned on, it is this very point: the economic value and strategic importance of air cargo as an enabler of economic prosperity is unquestionable and needs to be prioritized as such by government officials in the United States. We should all unite around this cause. So please make sure you join us in Washington, D.C., at the USACIA Summit on October 4-5. Help us emphasize this important point in order to secure the future prosperity of our industry. Every voice counts, so be there and make a difference!
      Remember, Air Cargo is a force for good that makes it happen!
Lionel Van Der Walt
President
Cargo Network Services

September Song
   As September 2016 ends, Walter Huston delivers Kurt Weill's September Song from 1938. Huston, a great stage and screen star is father of John Huston, director of films including Casablanca (1942), and Prizzi’s Honor (1985). His reading of this plaintive hauntingly beautiful ballad was the first and, for many of us, the best ever.

Vol. 15 No. 73
Oktoberfest Tonight
Keep Trading Or Start Fading
Chuckles For September 21, 2016 Pharma In Dubai Sky