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Family Aid 2020
   Vol. 20 No. 42
Tuesday October 26, 2021
Johanne Cadorette

     These days retirements are not uncommon as some top people move out of the airline industry driven by the unforgiving downward pressure of the absolutely terrible airline passenger business brought on and moved forward by the global COVID-19 pandemic.
     Of course, many of us wonder if air cargo “saved the airlines,” and now is ramping up, adding aircraft, freighters, new pharma capabilities and “gee whiz” IT capabilities, why would air cargo be losing so many gifted people?
     OK, the economics argument we guess, but what about the air cargo reality?
     These are not new thoughts, but we need to reflect on how the industry is going to be impacted by the loss of so many great people in air cargo that have moved out of every strata of our business since 2019, just as air cargo has gained almost mythical levels of fame and wonder for delivering the vaccines, and “saving the world”.
     Just learned that Johanne Cadorette, Manager Global Marketing and Communication Strategy at Air Canada is moving on to the non-profit sector.
     Johanne is a true professional in every sense of the word and skill.
     What is particularly outstanding about this lady was her openness and ability to put herself and her imagination at work in developing themes for Air Canada Cargo that are unique and resonate with readers.
     You have undoubtedly noted that the same press release news is carried across the board in air cargo media, resulting in the reader attention switch to turn off or maybe get stuck on hold.
     We try and take a different tact by creating stories that sidestep sameness and explore new ideas.
     Johanne has always been an ally in that effort.
     The hope is that whoever steps up to the plate next will be able to use the kind of imagination and inventiveness that Johanne shared with air cargo writers worldwide.
     Johanne, for air cargo was unique. We wish her well in her new role as she steps out.

William boulter  IndiGo Speaks Out

     IndiGo, India’s top carrier by market share, has been known to be the strong and silent one. It innovates quietly and moves on.
     However, on one count, IndiGo has been a late starter, having lost the advantage to first mover SpiceJet, in initiating a freighter business.
     IndiGo promoter Rahul Bhatia is now waking up to cargo in a big way.
     A late convert to the potential of cargo, IndiGo is trying to catch up amd make up for lost ground.
     As one of the innovative airlines in India as well as around the world, why did it take so long for IndiGo to jump on to the cargo scene in a big way?
     William Boulter, Chief Commercial Officer, IndiGo speaking to ACNFT said: “We had started focusing on CarGo (the cargo division of IndiGo) some years back, and it was a critical part of our ancillary revenues. The pandemic further accentuated the potential of the CarGo business for us as it provided revenues in the absence of scheduled commercial flight operations within India or internationally.”
     He went on to emphasize that “Covid-19 has re-established CarGo’s importance in the airline business with plenty of opportunities in the future, and we are confident of its longer-term development post-Covid—hence the investment in a freighter fleet, which will use the same pool of cockpit crew and engineers that we use for our 230 plus Airbus fleet.”
     “There was “an enormous variety of air CarGo, and, with the four A321P2Fs, we plan to begin inducting in 2022, we intend on servicing every possible commodity from perishables through electronics to express e-commerce,” said the CCO.

IndiGo CarGo Operations

Quiet Strengthening Ongoing

     Boulter pointed out that there has been a cargo team since 2013 and IndiGo has been quietly strengthening it. SpiceJet’s former Chief Financial Officer Kiran Koteshwar has been picked as an advisor for the cargo project and he has been recruiting personnel from FedEx and Blue Dart.
     There are chances that IndiGo could form an alliance with a global integrator like FedEx or UPS. As Boulter acknowledged to a reporter, that “it’s only when you carry cargo on long-haul routes that you start getting premium yields.”

COVID Lit The Fire

     The pandemic provided the boost that was needed to start thinking seriously about cargo. “The CarGo business was very helpful for the aviation industry during the pandemic as it generated revenues in place of decreased scheduled commercial flight operations within India and internationally. We learned valuable lessons about the demand and scope for CarGo which will definitely serve us well for augmenting our CarGo operations in the months ahead,” said Boulter.
     He recounted how “we entered the crisis with no freighters, but we deployed 12 A320/321 passenger aircraft for CarGo operations as our 'CarGo-in-cabin' charters. We have been able to carry significant payloads on our passenger aircraft, depending on commodity, by using the aircraft belly space and adding some minor equipment and procedural changes in the cabin.
     “We have uplifted more Postal mail for the government than ever before. We went to a new level with the carriage of essential supplies and medicines in the early weeks of the lockdown, and we have contributed to the cause by transporting the vaccines to regional cities thanks to our extensive network and unparalleled flight frequency.”
     The new modes of revenue generation, Boulter said, would play a crucial role in the long-term prosperity of the sector.

Keeping Track

     All this has been possible with the use of the latest technologies available during the pandemic. Boulter mentioned that “we have incorporated real time tracking of all the COVID 19 vaccine boxes which have moved across the length and breadth of the country. Considering the sensitivity of the commodities, we have also been carrying oxygen concentrators, medical equipment, and critical hospital supplies during this period. The speed of movement coupled with the use of technology has been a winning combination for our success in CarGo logistics. The launch of our very own CarGo Shipper application for both Android and IOS platforms has been a grand success with over 48 percent usage across the network”.
     He emphasised that IndiGo’s goal was ease of business with the use of technology and “we have a number of digital implementations planned towards the end of this year.”

A321F IndiGo On Tap

     Indigo has initiated a freighter programme and is in the process of sourcing four A321 aircraft. “The A321P2F—Passenger-to-Freighter conversion is the most efficient narrow-bodied freighter available, offering 24 container positions and supporting a payload of up to 27 tonnes,” said Boulter and added that “the delivery of our first freighter is expected in first half of CY2022.”
     Helping the cause of home-grown cargo carriers like SpiceJet and IndiGo, in December last year, the government put its foot down on non-scheduled cargo operations by foreign airlines to Bengaluru, Chennai, Delhi, Kolkata, Hyderabad and Mumbai. The then Civil Aviation Minister Hardeep Singh Puri said the change was done to give a level-playing field to Indian airlines. In fact, IndiGo’s CEO Ronojoy Dutta had commented then that his airline would take advantage of the gap created by the absence of foreign carriers.
     Boulter was of the opinion that India had a strong potential in the air cargo segment due to a fast-growing economy and unsatisfied demand that has been further accentuated with the advent and distribution of vaccines. “IndiGo CarGo flight operations in “CarGo-in-cabin” mode were initiated to support the nation to maintain supply chains for essential commodities, and this innovation helped in identifying opportunities to bring in some revenue through domestic and international charters during the lockdown. Owing to restricted belly capacity, CarGo remains a focus area for IndiGo, and we expect that “CarGo in cabin” charters will continue to some extent even beyond 2021.”

Cargo Business Soaring

     And, the move has paid off. As Boulter acknowledged, “IndiGo increased its CarGo revenue by almost 10 percent through 2020/21 even though the passenger belly capacity was massively reduced. This was done through deployment of over 6,500 CarGo-in-cabin charters, to date, and increased yields for the CarGo flown in our bellies. We face the future with confidence and expect a healthy growth in revenues,” he said.
     Post-Covid, once the passenger aircraft belly capacity returns in full force, the current strong market for freighters will reduce incrementally. However, he was quick to point out, that “there will always be a certain level of demand for freighter aircraft, especially for commodities which are not allowed to be transported by passenger flights. Once the economy resumes a strong growth path and there is an additional export drive, then more opportunities are likely to emerge.”
     He explained that the belly capacity of widebody passenger aircraft was sufficient in most cases between international points, and where it was not, “then you will see proper freighter aircraft deployed, as before—for instance between China and India. There may still be the occasional missions for ‘CarGo-in-cabin’, but this will only be during temporary shortages of supply. For IndiGo, our normal belly capacity and the A321P2F freighters are the future,” he said.
     He also pointed out that “we operate a broad network point-to-point within India and beyond, to over 70 domestic cities and 24 internationally. Whilst there is a current need for transhipment at various times, the real need for ‘feed’ will come with the introduction of the freighters.”
Tirthankar Ghosh

chuckles for October 2, 2021

Jo Frigger Forwarder A Partner?

     Ah The Hope of Bygone Days
     What happened to the airline /forwarder partnership as announced by IATA and FIATA in Dublin in October 2016?
     That subject has not been discussed and in general has been swept under the rug by IATA.
     Lots of logisticians around the world were animated and excited at the prospect of greater participation and cooperation between the partners in air cargo.
     But alas the partnership seemingly never got out of the gate and the once upon a time dream of a closer working relationship and even a genuine partnership has come to naught.
     Here we share some words from 2016 shared by a visionary leader in the freight forwarder movement, the late Jo Frigger an ocean freight forwarder and logistics specialist.
     Jo, until April 19, 2021, served as Chairman of EMO Trans, a company that continues to builds and thrive with 250 offices in 120 countries around the world.
      Jo said:
     “Ever since I started in this business in 1958, the relationship between airlines and freight forwarders has been volatile.
     “The initial view was that a forwarder was an agent who collects a commission from the airline.
     “This perception has gradually changed over time so that the forwarder is maybe a customer and lately even a partner.
     “Does the forwarder represent the airline, the shipper, or is he a partner of the airline?
     “If so, to what extent?
     “The two different business models, asset and non-asset driven, make it difficult to define, or is the airline just a supplier of space at uncertain price levels without guarantees from either side?
     “In today’s environment, the shippers and consignees demand transparency of the supply chain procedure.
     “The forwarder has to control the whole process from pick up to customs clearance and delivery; he is viewed as the architect of this process and accordingly held accountable.
     “Whether we like it or not, it forces us to work closely together with all carriers, be they air, ocean, or land.
     “Existing IT systems still do not give us the integrated accuracy and transparency of shipment locations at any given point of the transportation chain from beginning to end.
     “We have to work together and invest together to create a better flow of integrated information from pick up to delivery.
     “Customers traditionally just want to know: How much does the transportation cost and when will my shipment arrive?
     “It’s a tough job for us and I’m convinced that we can do it if we focus on the essential elements.
     “People in our business are resilient and inventive and I believe that FIATA can fill an important role here,” Jo Frigger said.
     The wonder in October 2021 is Jo’s voice simply from bygone days. The manner in which COVID has changed the world and certainly the air cargo industry, should we not look at the idea of enhanced cooperation in a new light?
     The way this initiative was allowed to disappear should be closely examined.
     We think simple common sense tells us, based on history, Jo’s words and the consideration of what we need as essential to continue to build air cargo, can be better served with the airlines and the global forwarders as true partners.
     Can we talk about It?

FlyingTalkers podcastFlyingTalkers

2021 Was A Swift Kick In The Cans
CarGo Beep IndiGo Freighters

Afghani children with aid packages
     Story Behind The Headlines . . . Afghan refugee children are being fed from U.S. aid packages delivered by air cargo in Dasht-i-Qala, Takhar Province, Afghanistan, this week.
     Despite the debacle of the withdrawal of U.S. forces last month from that beleaguered country, U.S. flag cargo jets this week dropped 70,000 food packets over Afghanistan, continuing an ongoing humanitarian effort to get aid to civilians.
Alitalia Demise?
Demise of Alitalia?
     In a nutshell, politicians, trade unions and rapacious entrepreneurs managed to taint one of the most promising endeavors of Italy and morph it into a wobbling bandwagon that burnt taxpayers' money for three generations . . .

When The Best Laid Plans Needs Planes . . . Flughafen Frankfurt -Hahn Gmbh filed for insolvency this week. In a picture taken last Monday at the Rhineland-Palatinate, facility, the former American military base located about a stone's throw from FRA, the cargo area looks lonely and silent.
     Hahn has struggled for years and in truth has never really made it despite lots of dedicated, hard working people, and money poured into the facility. Operations during the reorganization are continuing.

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Email graphicRE: Peter Hansen

      Such sad news. I remember Peter well – such a lovely man.
      He was one of the few who took me under his wing when he realized how new I was to New York, and especially how JFK worked.
      He even took me to some of his customers he thought could be mutually beneficial.
      Can’t see that happening now.

Philip J Bowell MBE

Thank you so much Geoffrey!

      I just read FlyingTypers and am truly thankful and delighted.
      What a great and lasting memory of my best friend – the late Peter Hansen.
      Very much appreciated.
      Warmest regards - and many thanks also to your wife, Sabiha.

Your friend,
Hardy Zantke

Hi Geoff,

     Peter Hansen was a guy you didn't forget.

Jim Larsen
Seaboard World Airlines, Manager of Air Cargo Business Development, Port Authority NY & NJ (Retired)

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
Access complete issue by clicking on issue icon or
Access specific articles by clicking on article title
Vol. 20 No. 39
PayCargo On Fire Worldwide
Krems United Tops U.S. Cargo
Chuckles for October 11, 2021
Too Cool McCool Is Ireland Cargo
How A Delayed Flight Changed History
Tata Sons Regain Air India

Vol. 20 No. 40
Why Did IFACP Deal Go Up In Smoke
Chuckles for October 13, 2021
ATC Heart To Heart
Truck Queues Solved Forever More
BRU Warehouse Debuts
Letters for Ocrober 13, 2021

Vol. 20 No. 41
Peter Hansen Pulled Air Cargo Up
Sullivan's Travels
Chuckles for October 20, 2021
Inside Moves At Qatar Cargo
On The Freight-Pay Beam
Sorting Cargo In A Gutter Near You
'Tis Autumn In New York

Publisher-Geoffrey Arend • Managing Editor-Flossie Arend • Editor Emeritus-Richard Malkin
Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend

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