Lufthansa Charter

     Ask Christian Fink, Managing Director of Lufthansa Cargo Charter (LCCA) what is “job one” these days, and after he says, “go out and get business,” he quickly adds:
     “We don’t want to be just considered as the charter outlet of Lufthansa Cargo.
     “That is an image of the past that lingers.”
     In the original business plan Lufthansa Cargo told its new subsidiary to “be independent,” but always consider selling available Lufthansa Cargo flights first.
     Another early business edict also indicated that 15 to 20% of total charter revenues should be moved on LH-equipment.
     But reality sometimes is never as good as one’s best fantasy, so when it got down to it, business found its own way.
     Although apparently it is always best to ask “mama” first and then continue with the deal, in the end only 8% of charter flights in 2004 were flown aboard LCAG-freighters.
     The ratio was a bit better when there were still some 747Fs around.
     But now in 2005 gradually with its presence in Europe, in North America and in Asia, Lufthansa Charter’s independence is becoming more apparent.
     Christian Fink is definite, “we are not dreamers.
     “But in the very near future Lufthansa Cargo Charter Agency should be the first door to be knocked on when somebody, somewhere in the world needs a non-scheduled cargo flight.
     “We are working toward that goal.
     “Sure the image of Lufthansa cargo helps
     “But we want to be the “go to” custom provider for an expansive menu of individual spot-solutions that demand high level reliability and total air cargo expertise.”
     “When we started,” comments Heide Enfield, LCAC, head of business development and marketing, “our charter clients often inquired to make sure their load was on a Lufthansa airplane.
     “Customer attitudes have changed during the past years.
     “Shipping today is a matter of hard economics and less a matter of airplane loyalty, than in past days I think.
     “But customers want to know that whatever the price, that the consignment is in Lufthansa’s hands.
     “Who is flying which airplane is secondary.”
     FlyingTypers asked Christian Fink what he would change or implement about the air cargo industry?
     “I fully agree that a healthy competition has always been the main motor in any business.
     “But I wish that all concerned in this nice old fashioned transportation chain from a to b would be more flexible in our relations with each other.
     “We all must realize, that we do not produce a product.
     “The product is what we carry from here to there including, machines, textiles, or semi-conductor products.
     “We only provide the service.
     “In the best logistics terms, I would like to embellish a bit saying we deliver our services at the right time to the right spot, at the right price.
     “My view is that it is an absolute must for the future of the air cargo industry that agents and carriers must learn to trust each other.
     “Part of that new normal for things includes the exchange of information.
     “I think if we just open up a bit with each other, everybody will benefit by saving considerable amounts of money, nerves and time.
     “I cannot repeat it often enough, the only one who buys our combined service package is the shipper or consignee footing the bill.
     “We are a pure service industry, especially in the charter segment.
     “Our job is to listen to the customer.
     “In many ways the charter business is more emotional than the routine supply chain by air.
     “The customer is paying for “his” airplane.
     “There is a heightened sense of risk and adventure to the freight movement when you think of it that way.
     “But I repeat, this industry can do a better job of pulling together.
     “One action would be to develop a more coordinated message to the general public that reinforces the level of velvet glove treatment that exists today in the air cargo business.
     “The passenger side of the airline business has brought forth that message for years and it’s been quite successful.”
     It’s worth mentioning that LCCA is quite successful. The first year 2002 closed with revenues around EUR 39 million, delivered by a staff of 15 people.
     In 2004 although LCCA staff swelled to 25 people they organized some 600 movements delivering some EUR 58 million.
     This year despite fuel and other elements of change the charter outfit is targeting a 20 to 25 % increase above last year.
     Lufthansa Cargo employs an IT-tool that is operational 24 hours a day serving the global market called “BORIS” or Brokerage Online Reservation and Information System.
     Before closing we must talk about an element so natural in any market place, competition.
     “Christian Fink puts it this way:
     “We know that there are plenty of competitors out there.
     “But we believe that in this relatively new constellation, being a fully owned subsidiary of the number one cargo airline in the world has an edge.
(Guenter Mosler)