The Great James Wilding

James Wilding

     James Wilding, the first and only director of the Metropolitan Washington Airports Authority, retired May 2nd.
      He will be succeeded by James Bennett, the authority’s chief operating officer since 1996.
     Mr. Wilding began as the agency’s director in 1987, as operation of Ronald Reagan Washington National Airport and Washington Dulles International Airport was privatized.
     The Metropolitan Washington Airports Authority (better known as Reagan National and Dulles Airports) is an economic catalyst for Virginia, Maryland, and Washington, D.C. Since its creation in 1987, the Authority has doubled its workforce, expanded and improved facilities and more than quadrupled its operating budget. It has changed from operating in the traditional role of a facility manager to an active business role of shaping the aviation system that serves the Metropolitan region. The passenger and air cargo activity at Ronald Reagan Washington National and Washington Dulles International Airports generates over 113,000 jobs that reflect $2.3 billion in wages.
     Mr. Wilding describes his effort as strengthening the Authority’s ability to sustain its vital role as an economic engine. He believes success depends on the ability to 1) understand the larger issues facing any organization and 2) develop performance management systems that support being competitive, efficient, responsive and capable of meeting current and future demands of all stakeholders including employees, customers, and partners.
     James Wilding built and worked through partnerships to better understand what works, what doesn’t, and what can be improved so that adding value was always the constant.
     The Port Authority of New York & New Jersey may be a bigger enterprise but Director of Aviation William DeCota admires and is a big fan of James Wilding.
     “A complete original—James Wilding is an airport pioneer who blazed new trails, while never forgetting to listen and be open to new ideas.
     “James Wilding is an individual I like to pattern my activities after.
     He will be missed.”

Bill Boesch

. . . Wings and Wheels. A company that repairs airplane wheels and brakes has landed a $12 million contract from Florida-based Spirit Airlines. Messier-Bugatti-Tracer, formerly Tracer Repair & Overhaul gets a five-year contract with Spirit , added to a five-year agreement to repair wheels and brakes of C-17 military cargo aircraft secured earlier this year. The Milwaukee company also said that it has a one-year contract to do wheel and brake repairs for Zoom Airlines, based in Ottawa, and it has been hired to do similar work for a fleet of Boeing 727-200s operated by Kitty Hawk Air Cargo. The Iraq War has boosted interest in the C-17 military work horse for possible commercial air cargo assignments. The C-17 is seen by some in commercial air cargo as an alternative for the Ruslan and other big Russian-built aircraft as the only alternative to carrying very large outsize cargo in the world today. That outsized market is currently worth about $250 million USD yearly according to industry sources. “Economies of the C-17 overshadow any other aircraft currently in service,” said Bill Boesch. “The problem has been high costs to purchase (325 million) but the C-17s performance record has been flawless which should raise some creative thinking to get these aircraft into commercial service. Operationally they take off and land almost on a dime in very small spaces. In terms of economy, the efficient use of four engines and a small crew as compared to the competition is a definite plus. Although the aircraft are best known by most people for their role as troop carriers for returning war heroes during the months ahead as the C-17’s role expands in heavy schedules to the Middle East, what these airplanes are made of will become apparent.” Meantime what the C-17 needs, a creative marketing program was advanced a while back, wherein an operator would utilize the aircraft as a cargo arm of CRAF (Civil reserve Air Fleet) which would bring down costs considerably and make the U.S. Government a partner. Bottomline is, with only 90 C-17s currently in the air and the government wanting at least a hundred more, now that the airplane has been widely photographed and brought to the public’s attention as the result of the adventure in Iraq, watch something happen soon . . . US DOT sets public hearing to determine whether DHL Airways, an affiliate of DHL Worldwide, is a U.S. citizen under U.S. law. DOT previously carried out an informal review of DHL’s ownership but will not put on the formal investigation dog and pony show wanted by UPS and FedEx . . .

Night Flight to Baghdad

Sir Richard

Dr. Otto Speaks

Andreas Otto

     “The airfreight business is facing immense challenges,” Dr. Andreas Otto, Lufthansa Cargo Board Member Marketing and Sales said.
     Dr. Otto said that the industry needs more professionalism, especially from the cargo carriers.
     Casting a self-critical look at the carriers, Dr. Otto pointed out that airfreight is still all too frequently seen as a source of additional earnings for the passenger business and often has no special top-management focus.
     Owing to the present, catastrophic earnings situation and extremely high capital commitments, the carriers are increasingly shedding their investment capability.
     “In the door-to-door logistics chain, the carriers are today shouldering more than 80 per cent of the investment outlay,” he said.
     At the same time, the forwarders have secured an excellent position in the logistics chain and are operating successfully even at times of crisis.
     In the medium term, this imbalance between forwarders and cargo carriers is threatening the development of the entire transport industry.
     “The current win-lose situation must urgently evolve into a win-win partnership,” Dr. Otto added. To that end, cooperation between both sides must be intensified on a lasting basis, for example, in customer relationship management, in ongoing process standardization and further advances in electronic booking potential.
     The core success factors, with which the air cargo industry can safeguard its profitability, are above all a clear focus on customer service, products and networks, central pricing control and revenue management, and a pronounced profit-and-loss responsibility. Modern IT systems and automated routine processes are also essential for successful cargo carriers. Lufthansa Cargo is well-poised strategically in that respect and strongly positioned to expand its market and innovation lead.
    Despite the present stagnation in the global economy, Dr. Otto is in the medium term anticipating yearly growth to average six per cent in the air cargo business.

Colleen C. Barrett

Southwest Airlines President Colleen Barrett says barring any terrorist bad news, the airline business could begin rebounding soon. “We’ve never been shy to jump in,” Ms. Barrett told a reporter. “If we ended up in a position to add a few more planes, it would be a real morale booster, a little spark. We like to spark.” The Dallas-based airline which is now the USA’s sixth largest carrier and one of the shining stars of this business right now, notched its 30th consecutive annual profit last year. About the spate of new low-cost carriers such as Delta’s new low-fare airline, Song; Continental Lite; MetroJet by US Airways and Delta’s own Delta Express, the chief executive notes: “You can’t confuse your customers and your employees. You’re one thing or another, not half one thing and half another thing. If you’re a 10-year Delta (frequent flier) used to first-class seats, the food and service—I think you’ll be let down.” Last year Southwest added 20 aircraft and didn’t lay anybody off. Although the carrier expanded like crazy prior to 9/11, no new cities have been added since October 2001 when Norfolk, Va. joined the system. In addition to being president Colleen C. Barrett is currently Chief Operating Officer, and Corporate Secretary for Southwest Airlines Co. She oversees management, leadership, and budget responsibilities over operations; customer service; corporate services; human resources and training. She is also a member of the Company’s Board of Directors, as well as a member of the Company’s Executive Planning Committee, and she chairs numerous special teams, task forces, and committees relating to internal and external Southwest Customers . . . According to a leading industry group, the European airlines managed meager growth this year. The Association of European Airlines (AEA) 30 members reported a 10.4% drop in passengers between March 31 and April 6. Traffic on routes to the Middle East nosedived 45.5 per cent compared with the same week last year. Traffic on flights to Europe declined 15 per cent, North America fell by 7.7 per cent, flights to Asia were down 10.1 per cent. “For the first ten weeks of the year, our market was growing,” said AEA Secretary General Ulrich Schulte-Strathaus. “In just four weeks that has been wiped out.” . . . A big Spring 2003 Auto Show, that highlights the best and the brightest, held in Shanghai recently closed three days early because of surging cases of SARS, which has gripped Mainland China. Right now the Asian airlines join the real world, as their business has completely tanked. SARS has crippled the business of Cathay Pacific Airways, Qantas Airways, Thai Airways and Singapore Airlines which have all reduced capacity, and analysts have trimmed profit forecasts as the outbreak of SARS worsens, biting into travel across the region. Empty aircraft with as little as a dozen people on a widebody ex-Hong Hong is no joke as the SARS situation has everybody running for cover. Meantime Cathay Pacific said that it is rethinking its dividend payout now that SARS has gutted air travel at the airline that prestigious Barrons described as among the best airline investments in the world less than two months ago. Cathay also appealed for help, asking Hong Kong Airport Authority to lower landing fees. According to a report, Cathay has about a billion dollars, which has been thought enough to weather the downturn, although others supposed the nearly $6 billion that American Airlines had in cash two years ago, should have been plenty to see the world’s biggest airline, through the past two turbulent years. Loss of trust in American Airlines CEO Don Carty as the result of the inbedded golden parachute guarantees for 45 executives at the airline, no matter what the financial result, that were not revealed during labor negotiations, was a terrible and unfortunate turn for the worse, just when it looked like everything at American would turn out OK. Don Carty resignation keeps in some shape and form, the plan he and his team masterminded that was ratified by a now furious AA labor force. Far as we know, Carty is a good guy and a brilliant airline chief, who we think just forgot or misjudged how much the sporty game rules changed when the great airline went on the financial ropes. Carty in a way is like Macbeth—a victim, losing his job while saving an airline. Like a lot of things that have happened recently in our business, the Don Carty episode is a damn shame . . . Ryanair CEO Michael O’Leary declares that the Irish carrier plans to lower ticket prices by a further five per cent annually over the next five years. The no-frills carrier said that it plans to raise its passenger numbers to 30 million next year. So right now on both sides of the “Pond” carriers that have something to shout about, i.e. JetBlue, Southwest, Ryanair, Air Trans, in this year of airline horror stories, seem to all be cut from the same cloth, low cost (CSM) no frills, one airplane kind of companies. Now when will any of these guys get into cargo? Southwest does move some small stuff we hear. Air Tran being reluctant in cargo is understandable. But by turning thumbs down to cargo, are these carriers missing a potentially huge revenue stream, or are they sending the world a message, that air cargo isn’t worth the effort? Your move . . .