Vol. 8 No. 59                                            WE COVER THE WORLD                                                   Friday June 5, 2009

Jade Goes Into China


     Jade Cargo has a new service offering their international customers transportation of air freight shipments in the belly-hold compartments of passenger planes to major cities in central and western China.
     "We have just successfully concluded a very ambitious pilot project with our partner and majority stakeholder Shenzhen Airlines," explains Jade’s Managing Director Captain Kay Kratky.
     According to the agreement, Jade transfers imports destined for inner-Chinese destinations to their partner airline at their hub in Shenzhen. The goods are then flown from Baoan International Airport in the bellies of Shenzhen Airlines passenger aircraft to cities like Wuhan, Lanzhou or Chengdu, just to name a few of the more than 60 routes.
     "This collaboration gives us access to the entire domestic network of Shenzhen Airlines and enhances our presence and consequently our reach for imports and exports within China," states Capt. Kratky.
     Further, he announced in an interview with ACNFT at Munich’s Transport Logistik exhibition that Jade had to abandon flights between Frankfurt and various cities in Latin America due to a legislative change imposed by the EU.
      According to Brussels, a non-European ACMI carrier is not entitled to offer capacity between a member state of the EU and third countries like Brazil, Colombia or Ecuador if a EU-based cargo airline is able to serve those routes alternatively. Since Lufthansa Cargo has grounded some of their MD-11Fs due to the present lack of volumes the regulators at Brussels argue that the German air freight carrier has principally got the capability to conduct these flights with their own equipment.
     “This decision by EU politicians forced us to pull out of South America last week,” Capt. Kratky says.
     Instead Lufthansa Cargo will be operating the weekly flights to Viracopos near Sao Paulo, Curitiba, Quito, Bogotá and Curacao in future, he announced. The Frankfurt-based airline has a 25 percent stake in Jade and manages the Chinese company.
     Presently Capt. Kratky and his team are looking for further market opportunities in Africa, northern Europe or other regions.
     “We’ve got some promising projects on the agenda but some are subject to obtaining traffic rights,” he says. Within the coming four to six weeks his management will present first results, freeing Kratky to set a timeframe for new network initiatives.
     A second project he is attempting to push forward is new alliances, either with other carriers, forwarders or even shippers. Within the Lufthansa Cargo group there are plenty of opportunities for a closer linking of businesses he says, namely with newcomers like Austrian AUA or Belgian Brussels Airlines.
      “Right now we are evaluating a number of opportunities for closer traffic ties,” he states. In addition he emphasizes that other carriers outside the Lufthansa circle could be possible business partners, too.
     “We are already in talks with some airlines,” confirms Kay Kratky.
Heiner Siegmund


Gopi & Deccan Part Deux

(Mumbai Exclusive)—Captain G R Gopinath brought low-cost airline travel to India and then took the money and sold his Deccan Air to Kingfisher, founder Vijay Mallya.
     Capt. Gopi apparently can’t stay away from the business having recently launched an air cargo airline called Deccan 360.
     Capt. Gopi says his cargo airline will change India logistics business by offering overnight cargo delivery to 75 cities across the country.
     For openers Deccan 360 will include a fleet of five aircraft—three Airbuses and two ATRs.
     But Capt. Gopi notes that Deccan 360 even in its opening stage will have more cargo lift currently offered by all other carriers operating in the country.
     “The domestic express cargo business in India is only $500 million as compared to $5 billion in China and $35 billion in Europe,” Capt. Gopi says.
     “So the potential is huge.”
     Nagpur will serve as hub for Deccan 360 connecting flights with a fleet of trucks that Capt. Gopi says will cut delivery times in some cities from weeks to overnight “totally revolutionizing logistics for India.”
     Capt. Gopi says although he has personally invested $25 million he is still looking for another $25 million to get his venture off the ground.
     Deccan 360 will fly to Shanghai, Dubai and elsewhere internationally although Gopinath notes the logistics company’s main focus will be directed to delivering inside India.
     The entrepreneur is also reportedly talking to international carriers serving India looking for delivery tie-ups.
     Interestingly Capt. Gopinath most recently has spent quite a bit of time running for office (MP) in Bangalore, India’s IT engine, where infrastructure is in shambles with lousy roads and spotty electric and water service to residences and business there.
     Maybe worse, despite a highly educated professional base, the aforementioned recent elections drew only about 40% of the electorate as apathetic voters shunned the voting process entirely.
     One can only imagine, when the votes are finally counted, if he wins, which priority Capt. Gopi will address first?
     One thing for certain, Gopi’s claim of faster delivery for air cargo all over India must be considered, given the terrible condition of infrastructure in Bangalore where more than 600,000 have solid professional IT jobs.
     Captain G.R. Gopinath, the airline dreamer and doer earned his way into a small select club of ex-airline executives who changed things for a lot of people.
     Gopi seems certain that his special brand of lightening can and will strike twice, this time in air cargo.
     But G.R. Gopinath is now also a politician.
     The common thread among other things is that in both cases he is out there making promises.
     Avinash Narula who heads up Vote 2 Change and who also comments on these things said recently of Gopi:
     “In going to contest the Lok Sabha elections 2009 from Bangalore, I would urge Capt. Gopinath not to contest the elections as he is not suitable for the job.
     “Past experience of electing celebrities like Govinda, Hema Malini and Dharmender as well as big time business people like Vijay Mallya clearly shows that they have interest in working to improve the country.
     “They just don’t have the time.
     “They are so busy running their business empires that they do not have the time to even attend the Lok Sabha sessions.
     “Also, their interest is more in getting the perks of being a MP rather than working to improve the life of the citizens of the country.
     “In truth Capt. Gopinath did a lousy job of managing his airline.
     "I have nothing against an entrepreneur who fails but I certainly feel that the entrepreneur cannot take his customers for a ride.
     “There are a lot of dissatisfied customers of Air Deccan who suffered financially.”
     Anybody who has driven down a Bangalore road or tried to get a package from India to anywhere else can hope Capt. Gopi delivers all around.
     Stay tuned.
P. Singh

       Live Like A King   

          “Seven and a half cents doesn’t buy a hell of a lot-
          “Seven and a half cents doesn’t mean a thing-
          “But give it to me every hour, 40 hours every week-
          “That’s enough for me to be living like a king!”

     We are thinking about that song from the 1950’s stage musical “Pajama Game” while reporting about the world we live in now, as saving every cent becomes ever a clearer priority. Lufthansa Cargo AG relocates its technical stopover point for its cargo flights from Astana (TSE), Kazakhstan, to Krasnoyarsk (KJA) in Russia.
     Route now is Tokyo via Krasnoyarsk to Frankfurt.
     Astana continues as a Lufthansa Cargo address via combination flights while Lufthansa Cargo in Kazakhstan will continue with flights to Almaty.
     “It’s all about optimization of the routing,” said Carsten Spohr, Chairman of the Executive Board of Lufthansa Cargo.
      "Stopover in Krasnoyarsk shortens flying time to the Far East by an average of about 12 minutes per flight and thus makes a valuable contribution to the further reduction of costs.
          “As a result of the new routing Lufthansa Cargo will use around 2,000 tons of kerosene less per annum.”


Emirates SkyCargo named Sky.XS as General Sales Agent (GSA) in Slovenia, taking its number of offline stations in Europe to 12. “As one of our key regions, Emirates has vowed to provide our European customers with the best services possible including short connection times, an expansive route network and professional handling of their cargoes,” Prakash Nair, (above) Emirates Manager Network Cargo Sales Development said. “Sky.XS, our agents in Slovenia bring more than a decade of experience representing cargo carriers in the country.
“Sky.XS brings a level of professionalism that Emirates SkyCargo customers across six continents have come to expect from us.
“Slovenia cargo will be trucked from the capital Ljubljana to Emirates’ directly served stations of Vienna and Venice which are served by daily flights,” Mr. Nair added . . . A Hong Kong and Shenzhen task force is studying the establishment of a modern service sector demonstration zone at a site in Qianhai in Shenzhen. After meeting in Guangdong and Shenzhen the principles agreed that a control point is to be established in Qianhai as it is strategically important, situated between Shenzhen and Hong Kong airport. Both sides agreed to explore the viability of implementing measures in Guangdong on a pilot basis as proposed in the Outline of the Plan for the Reform & Development of the Pearl River Delta . . . TNT launched the first-to-market and only integrated road network across South America, linking the countries, Argentina, Brazil and Chile. The company said that TNT's South America Road Network (SARN) leverages the company's domestic capabilities in Chile and Brazil following the acquisition of LIT Cargo in February 2009 and Expresso Araçatuba last April . . . China Eastern Airlines said it is closing in on launching regional carrier Joy Air, which it is jointly setting up with China's biggest aerospace company, China Aviation Industry Corp. The Civil Aviation Administration of China plans to issue operational approval by June 15 . . . A high-speed, rail-based intermodal transportation system for carrying freight and passengers must be implemented soon, Gil Carmichael, (left) Founding Chairman of the Board of Directors of the Intermodal Transportation Institute (ITI) at the University of Denver, said. "We can no longer afford the lavishness of the past. As soon as possible, this nation has got to radically change the way people and freight move in order to avoid long-term economic decline," Carmichael said . . . Uni-Top Airlines, a Shenzhen private air cargo carrier said it added weekly service to Dubai, which is the first international all-cargo service from Wuhan Airport. The service is using a Boeing 747-200 freighter leased from Air China . . . Jet Airways, India’s second-largest airline by market share, has frozen fleet expansion for now and put off aircraft deliveries for two years. “There will be no addition of fleet, with operations remaining the same in the current financial year. We will expand our fleet once operations stabilize,” Jet Airways chief executive officer Wolfgang Prock-Schauer said. Jet backing up means that Boeing probably loses delivery of about 10 aircraft this year and another 10 if the freeze holds through 2010 . . .

 

Contact! Talk To Geoffrey

 


Dear Geoffrey,

     Nice articles you have been sending.
     Actually, what is your scope on logistics?
     And are you grouping in each country the global agents?
     So far, we had three organizations that we joined, but there is less cargo consigned, and further we paid for nothing as can be seen.
     From your prospective view, what is the best way to get more cargoes to Singapore, and also Indonesia, Malaysia.
     I want to hear from you, because your publication makes it clear that there is room for improvement in this bad economy crisis.
     We are grateful for your effort.
     I too always believe that there is more business moving soon, after a gradual pick up as well.
     Await your kind reply.
     Thanks again.

Best regards,
Michael Ali.
Lifeline Logistics Pte Ltd
Mailing Address: Choa Chu Kang Central Post Office,
P.O. Box 032, Singapore 916832
www.lifeline-logistics.com

Dear Michael,

     Thanks for your letter.
     As writers, we always wonder after our meetings and story lines are decided, then executed—if what we did resonated with people?
     Your thoughts are with us.
     Stay tuned to this channel and expect further effort on behalf of our work at getting to the unvarnished truth.

Geoffrey