Aircargopedia Newsblast: December 2016!
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13th DECEMBER 2016  

Dear Air Cargo Professional:

I flew to London via Dublin on Aer Lingus last month to attend the third LIFE SCIENCES and PHARMACEUTICALS air cargo conference organized by Air Cargo News at the Hilton London Heathrow Airport’s Terminal 4. My primary reason for flying Aer Lingus was price; all the other non-stops were prohibitively expensive. I guess, December is the time where they make all their money.

I was pleasantly surprised with the Aer Lingus economy product offering. Ever since Aer Lingus became part of IAG, they have significantly upped their service offerings. Though you still must buy your own drinks, and pay more for exit row seats with extended leg room, the food is good, and the Irish hospitality warm. Furthermore, Aer Lingus managed to clear my bags within fifteen minutes on both legs of my journey, and the United States immigration service in Dublin for US bound travelers makes returning to the US a real breeze.

Bourji Mourad, Envirotainer
Bourji Mourad of Envirotainer

The conference which was heavy in content, attracted about seventy delegates from across the pharma/ air cargo chain and dealt extensively with the specialized science of transporting pharma and life sciences safely and without temperature excursions across a complex web of trade lanes. With a completely ‘foolproof’ air cargo container for pharma transportation still a far cry; transporting pharma is a delicate act where every hand over point in the supply chain must be vetted to global standards. In this global relay race, there is zero tolerance for any player that drops the baton. Representatives of temperature-controlled container solutions, Envirotainer, CSafe and Peli Biothermal spoke about the advancements in their individual product offerings as they aim to address the rigid temperature control demands of this industry. Bourji Mourad, Head of Global Partner Management at Envirotainer predicted that costs for their solutions would continue to go down, while Ira Smith, Director-Strategic Development, Peli Biothermal discussed his company’s ‘140 hour’ temperature controlled solution.

The business of ‘temperature controlled pharma’ is exploding, fueled by rising living standards, globalization of pharma manufacturing due to patent expirations, and a world desperate for newer and better drugs. There are over 415 million diabetics in the world today of which over 5 million will die of this affliction over the next 12 months. Insulin is the biggest temperature-SENSITIVE product flown around the world, and one of the many drivers of this growth. Another driver is the globalization of 200,000 plus live clinical trials that are being conducted all over the world. Julian Wann of Astra Zeneca (which moves over 80% of its freight by air) revealed that they are also heavily invested into bio-logics.

The growth in the pharma business has driven 20 major global airlines to make major investments in dedicated, ‘branded pharma products’, spanning their entire network. One such group is IAG Cargo, whose Head of Life Sciences and Pharmaceuticals is Alan Dorling. Aptly named ‘Constant Climate’, to reflect the need for temperature stability, the IAG pharma product is a well-researched and mature offering, with a Constant Climate center in London, 110 stations for Constant Climate cross IAG’s network of several member airlines including BA, Iberia, Vueling and Aer Lingus. IAG will soon have a new facility in London which will be four times the size of the existing facility.

In the session on ‘How can airports and airlines efficiently and economically provide services to the pharma sector’ Julian Sutch, Manager Global Cargo Sales, Pharma of Emirates Airlines revealed that not all pharma shipments are large enough to be shipped individually. Thus, consolidation of smaller shipments into one hub will help drive the economics of this business. Joachim von Winning, Executive Director of Air Cargo Community at Frankfurt Airport spoke about Frankfurt’s efforts to promote air cargo, particularly small and large pharma shipments, through enrollment of member companies into the Frankfurt Air Cargo Community.

Speaking on ‘Managing risk and measuring performance in the air cargo supply chain’ Kamaljit Hunjan, SVP Global Healthcare Operations, CEVA emphasized that in pharma, 100% and not 90 or 98% is the target for performance; many pallets can contain over US$0.5 million worth of products. Pharma companies are thus extremely ‘risk averse’ and usually only deal with the top 18 forwarders. The highest risks are at the ‘touch points; 57% of all temperature excursions happen at airports, so CEVA spends considerable sums in assessing delivery routes while advising pharma companies on ways to improve their packaging. Large forwarders need to become more ‘pro-active’ in advising pharma companies on transporting this valuable cargo.

Chris Notter, Saudia Cargo
Chris Notter of Saudia Cargo

In the last session of the event on ‘Security in the pharma supply chain’, Jason Breakwell, Commercial Director, Wallenborn Trucking, and Director of the TAPA, highlighted the fact that cargo crime is a Euro 8.2 billion business, with pharma being a major target. He encourages air cargo companies to join the Transported Asset Protection Association(TAPA) and benefit from lower insurance premiums.

Creating and implementing global standards for ‘temperature controlled’ pharma through programs such as CEIV and GDP are key to bringing stability and predictability in this business, and we sincerely hope that more airlines, airports and stations around the world will embrace the adoption of these programs.

I would like to take this opportunity to wish each one of you a Happy Holiday and the best for the New Year.

Best wishes

D.J. Ghosh
President & Publisher
”The Complete Encyclopedia for the Air Cargo Professional & Investor”


Preliminary Injunction Issued in ABX Air Labor Matter

WILMINGTON, OH – December 7, 2016

Air Transport Services Group, Inc. (NASDAQ:ATSG) today said that U.S. District Court Judge Timothy S. Black today issued an order granting ABX Air’s motion to convert a temporary restraining order into a preliminary injunction prohibiting work stoppages and other service interruptions of ATSG’s cargo airline subsidiary ABX Air, Inc. by ABX Air’s pilot employees represented by the Airline Professionals Association of the International Brotherhood of Teamsters, Local 1224 (IBT).

On November 23, 2016, Judge Black determined that disagreements between ABX Air and its pilots over work scheduling issues constitute a “minor dispute” and must be resolved under terms of the labor agreement between ABX Air and the union. The preliminary injunction effectively extends that order pending an as-yet unscheduled adjudication on a permanent injunction.

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IATA: Air Passenger Market Analysis - October 2016

Released 7th December 2016

Key points from our report on air passenger markets in October:

• Industry-wide passenger traffic grew by 5.8% year-on-year in Oct, after a short-lived pick-up in September.
• Passenger growth remains broadly in line with its 10-yr avg. pace, driven by a range of competing factors.
• Ongoing signs of normalization for European carriers, but domestic market performance remains mixed.
• The seasonally-adjusted passenger load factor eased compared to September, but remained above 80%

>> Click to read more

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Neutral Air Partner officially launched.

6th December 2016

Neutral Air Partner – the premier global network of leading air cargo architects and aviation specialists is officially launched .The Hong Kong based organization has recently concluded its 1st OPENAP global meeting end of September at the St Regis Saadiyat island resort in Abu Dhabi UAE.

The network presented its objectives ,the benefits and advantages for the members , and introduced its tailor-made air cargo community tools to over 100 delegates from the global air cargo supply chain ,including airlines such as Air Bridge, Etihad, Astral Aviation, airfreight forwarders, GSSAs, neutral consolidators, express service firms ,charter brokers and time critical and vertical specialists .The event was also supported by industry suppliers such as OAG ,Descartes, WCL , Air Cargo XL and Air Cargo Plus .

“Our aim is to inject a greater degree of advanced air cargo expertise into the logistics industry, revive specialization, and to drive airfreight and express buying power across the supply chain. We are very excited with the response we are receiving from the industry ,the network presently consists of 120 quality and like-minded air cargo specialists in 65 countries “says Christos Spyrou CEO & Founder of Neutral Air Partner organization.

Georges Biwer, VP EMEA for Air bridge Cargo states: “It was a refreshing event from an airline prospective in regards to the quality of the delegates gathered from around the globe, the industry expertise in airfreight, and consequently the buying power such a group of smaller sized market players can bring to a carrier. The innovative approach, linked with a platform of air cargo community tools tool can deliver added value to the supply chain, and innovation in our industry to every single customer, and we are looking forward to the positive developments of NAP together with ABC as their carrier.”

Michael Jaench from Aerotrans Germany - a leading GSA and neutral freight services provider says : “We as Aerotrans, are offering neutral freight services to the trade and our customers are airlines , IATA agents and general freight forwarders .Neutral Air Partner is the right platform for our company to explore partnering opportunities with like- minded air cargo experts around the world ,and to develop new services and number of members and we look forward to a long term relationship with NAP “

I had the honor of attending the first NAP annual meeting held in Abu Dhabi, the organization, network and the topics addressed, fully satisfied our expectations, our group participated the event with 3 executives and we ve decided to support Neutral Air Partner in nine countries in Latin America where we have our own offices., we are looking forward to grow our air cargo business together with NAP in this new experience “ says Carlos Madama , VP of Grupo RAS - a leading freight & logistics group based in Latin America with 45 offices in 10 countries and 800 members in 5 divisions.

Attending the NAP global meeting in Abu Dhabi has been a great success. It has been a great pleasure to meet so many airfreight professionals whom understand the importance of being Neutral, whilst offering your service towards the forwarding industry. Within 2 months, we already have seen the benefits of our membership , and we are now able to offer more neutral freight services and consolidation solutions to our European customers “ says Ronald Sierat from N.F.S Airfreight ( Neutral Freight Service BV ) a leading and independent neutral airfreight wholesaler & consolidator based at Schiphol airport ( AMS ) main gateway for Europe .

Universal Global Logistics, S.A.U., attended the NAP kick off meeting in Abu Dhabi last September. UGL is one of the leading Spanish Freight Forwarders and belongs to Noatum Logistics, the logistics division of Marmedsa Noatum Maritime, present in Spain, Portugal, Turkey, Algeria, Morocco and Chile. “We had the chance to gather another companies also specialized in airfreight industry, as well as in the different topics which this business include, such as cool chain service, AOG, dangerous goods, etc. As forwarding company we have strong presence in our market, being part of a freight purchasing pool stated in the 3rd position in Spanish IATA ranking, we find NAP network as a chance to develop every kind of air transport business among other specialist companies” says Sergio Escobar –Business and process coordinator for UGL.

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MIAMI, November 29, 2016

Brooklyn-based artist London Tsai’s Flying Desserts and Other Utopias is now on display at Miami International Airport’s Central Terminal Gallery, located just beyond MIA’s Concourse E security checkpoint.

“In an age of global tourism and extreme mobility, utopias are no longer in the future, but somewhere else. In order to reach these other places more conveniently, it makes sense that our homes become our ‘ships,’” said Tsai. “That’s why I’ve designed the ‘ships’ in the shapes of desserts we love. In addition to being completely mobile, we are hyper-visible. This way, we can have our cake and eat it too.”

MIA Flying desserts

Lun-Yi London Tsai was born in Massachusetts, spent his early childhood in Paris and grew up in SoHo, New York in the 1980s. After college and graduate school at Tufts University and the University of Pittsburgh respectively, Tsai spent six years in China. Since then, he has lived in Boston, Seattle, Miami and New York. An artist residency in Berlin in 2008 was pivotal in awakening his latent sculptural tendencies; his father was the late kinetic sculptor Wen-Ying Tsai. He currently lives and works in Brooklyn.

“As the title of the exhibition implies, there is great humor, imagination and even, optimism, in Tsai’s work,” said Yolanda Sánchez, Ph.D., Fine Arts and Cultural Affairs Director at MIA. “Through his extraordinary skill and his manipulation of materials and scale, Tsai invites us to re-consider both our physical and psychological relationship to those objects we encounter in our everyday life. His charismatic and sometimes, enigmatic, works intelligently evoke memory and narrative.”

The Flying Desserts and Other Utopias exhibition continues the primary mission of the Aviation Department’s Fine Arts and Cultural Affairs Division to humanize and enrich the airport environment through the commission of contemporary artwork and the presentation of exhibitions in various media that communicate culture, environment and art resources of an international scope.

To learn more about other exhibits in the MIA Galleries,

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Chapman Freeborn gears up for cargo growth with new senior management structure

Chapman Freeborn Airchartering has unveiled a new senior management structure to help deliver further growth across the group.
24th November 2016

Building on its strong performance this year, the global aircraft charter specialist has appointed Pierre van der Stichele to the newly-created role of group cargo operations director as one of a number of senior level promotions.

During his 14 years with Chapman Freeborn, Van der Stichele has been responsible for the management of several of the company’s key European offices, including its successful business in Italy which he helped to establish in 2009.

He has a 25-year background in the air cargo industry with vast experience in global charter operations, having previously held positions with airlines including Southern Air Transport, Antonov Design Bureau and Evergreen International Airlines.

Van der Stichele, who starts his new role with immediate effect, joins group cargo and OBC sales director Reto Hunziker in heading up Chapman Freeborn’s cargo product on a global basis.

Reto Hunziker said:
“We’re delighted to welcome Pierre to the senior management team and I look forward to working alongside him. He is highly respected across the industry and has made a significant contribution to the success of Chapman Freeborn over the last decade. We look forward to seeing him succeed in his new group role.”

Van der Stichele added:
“I’m looking forward to working with Reto and the rest of the management team in helping to shape Chapman Freeborn’s future direction. Our cargo teams around the world continue to go from strength to strength and we’re very excited by the future prospects.”

Van der Stichele’s promotion follows the appointment of Philip Mathews as chief commercial officer earlier this month.

Mathews took up the newly-created position on November 1 and joined Chapman Freeborn’s executive committee: chief executive Russi Batliwala, chief operating officer Shahe Ouzounian, executive director Peter Joarder, chief financial officer Alan Jordan, and chief legal officer Fabio Mazzocchetti.

Chapman Freeborn set to build on strong performance in 2016:

The announcement of Chapman Freeborn’s new senior management structure follows its resilient performance in 2016. In addition to increased investment in emerging territories, the company has further consolidated its position in key mature markets.

Hunziker says: “Following a particularly strong performance in the third quarter, we’ve seen several of our global offices exceed their annual targets already – including our two largest operations in Germany and the UK. It’s also been very positive to see our teams achieving success in developing markets like Africa – where business is up over 60 percent on 2015 figures.”

“Elsewhere, our hand-carry division Chapman Freeborn OBC has just enjoyed its busiest month on record, and our animal transport subsidiary Intradco Global continues to deliver excellent results. As a group we’re excited about the prospect of building on this momentum in 2017.” In the commercial charter market, outsize cargo and project related charters have helped to fuel growth in 2016, with operations ranging from AN-124 and AN-225 charters in support of the energy industry, to the provision of a chartered IL-76 aircraft in support of the Solar Impulse 2 round-the-world mission.

The automotive sector has also represented a growth business in several key charter markets, and earlier this month Chapman Freeborn demonstrated its strengths in the aircraft leasing market with the provision of a B747-400F for Senator International’s “Atlantic Air Bridge” - ferrying auto components between Europe and the US.

The company has also been active in supporting the non-commercial sector in 2016, with airlifts performed for government agencies, NGOs and other humanitarian aid providers, including the operational management of niche airdropping contracts.

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Court Ruling Ends ABX Air Work Stoppage

WILMINGTON, OH – November 23, 2016

Air Transport Services Group, Inc. (NASDAQ:ATSG) today said its ABX Air pilots will be returning to work beginning tonight following a ruling by U.S. District Court Judge Timothy S. Black that the striking pilots must resolve differences with ABX Air through arbitration and other provisions of their labor agreement.

The judge determined that disagreements with the pilots and their union, Airline Professionals Association of the International Brotherhood of Teamsters, Local 1224, over work scheduling issues constitute a “minor dispute” and must be resolved under terms of the labor agreement between ABX Air and the union.

John Starkovich, President of ABX Air, said that he expects ABX Air flight operations to resume effective immediately.

“I am pleased that the court continues to recognize the value to all parties from continuing to work out remaining differences in negotiations and through arbitration,” Starkovich said. “We intend to resume those discussions at the appropriate time and place in order to find solutions that are in the best interests of our customers, shareholders and employees.”

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MIAMI, November 21, 2016

Miami International Airport kicked off the holiday travel season on November 18 with an open house that celebrated the completion of its North Terminal Marketplace – a row of 10 new restaurants and shops that offers travelers a multi-cultural taste of Miami without leaving the airport. MIA officials and Marketplace tenants treated members of the business community and passengers to a two-hour open house that included menu samples and giveaways from Marketplace vendors.

“Congratulations to the Miami-Dade Aviation Department and the Marketplace concessionaires for completing this impressive new dining and retail area at MIA,” said Miami-Dade County Mayor Carlos A. Gimenez. “In addition to top-rate food and retail options, Miami-Dade County can be proud of the fact that seven of the Marketplace locations are operated by small business owners – the backbone of our local economy.”

MIA restaurants

The Marketplace, located between gates D-26 and D-29, features a combination of iconic brands and local disadvantaged business enterprises: 305 Pizza; Chefs of the Caribbean, which serves island favorites such as conch fritters and Jamaican patties; Cuban Crafters cigars; Estefan Kitchen Express, owned by music superstars Emilio and Gloria Estefan; Fig and Fennel, a farm-to-table eatery owned by Miami Beach hot spot Icebox Café; Half Moon Empanadas; a Miami Marlins merchandise store; Maru and Friends, which features collectible, ethnically diverse porcelain dolls by award-winning artist Dianna Effner; My Ceviche, the popular seafood deli with five locations in Miami; and The Penguin Store, by Miami-based Perry Ellis.

“As the gateway to our community, MIA is the first impression most visitors have of Miami-Dade County,” said Miami-Dade County Commissioner and Trade and Tourism Committee Chairman Jose “Pepe” Diaz. “With that in mind, I commend the Aviation Department for developing this new section of MIA that is representative of our County’s diverse cultures.”

In April, MIA received Airports Council International-North America’s 2016 Inclusion Champion Award, which commended the airport among all large U.S. hubs for successful minority inclusion in its business contracts. The Miami-Dade Aviation Department was also recognized with the Outstanding Support to Small, Minority and Women Enterprises Award and the Outstanding Customer Service Award at the 34th Annual Florida Minority Enterprise Development Week (MEDWeek) awards program, held at Florida International University’s Koven’s Conference Center on October 14.

“Second only to our airlines, our shops and restaurants are unquestionably the most important service providers at MIA,” said Miami-Dade Aviation Director Emilio T. González. “We are extremely proud of the new choices available at the Marketplace, and we look forward to partnering with more local businesses who will enhance the sense of place we want our passengers to experience.”

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