Aircargopedia Newsblast: November 2016!
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21st NOVEMBER 2016  
 


Dear Air Cargo Professional:

BRITISH AIRWAYS CEO SPEAKS:


On November 17th, I attended a riveting presentation in New York, by Alex Cruz, British Airways’ new Chairman & CEO. Alex is an endearing leader, who could bring his energy, vitality and optimism into a room full of seasoned bankers, lawyers, airline heads and equipment suppliers. I am confident that BA will get a fresh start and a new perspective under Alex.

Alex Cruz BA CEO
Alex Cruz,
British Airways Chairman & CEO

BA is unveiling a new five-year plan in an environment of intense competition in many of its key markets, including North America. The five-year plan calls for major investments in product and service upgrades, including new lounges, expansion of the business class cabins, and easier check ins. However, the intense pressure on prices, driven by customers wanting the cheapest fares, is forcing the airline to squeeze more seats into its economy class while expanding services into lower cost airports like Gatwick. Heathrow, meanwhile, has acquired the reputation of being the most expensive European hub.

Alex Cruz BA CEO

BA believes that in the long run BREXIT won’t adversely affect British Airways revenues. The big drop in the value of the British pound has created a ‘huge upside’ making a visit to Britain so much more affordable.

Alex Cruz BA CEO

I also got a chance to chat with Alex about his priorities for cargo, since no mention was made about this in his presentation. With BA now a part of the IAG Group, more of the cargo marketing activities will be handled under the IAG umbrella and the development of special, branded air cargo products, launched three years ago, will continue.



TIACA ACF PARIS:

Between October 26th& 28th, I was in Paris attending the 28th edition of TIACA’s bi-annual Air Cargo Forum & Exhibition. Paris is a ‘dream city, with something for everyone’ and it was very easy for me to make the decision to attend.

However, when conferences are held side by side with a trade show, it is always a difficult choice; should we listen to industry experts speaking at specialized panels, or instead walk around the trade show and take advantage of the once in two-year networking opportunity. The conference auditorium was packed to capacity and I quickly realized that this was one of the largest gatherings of air cargo industry experts, leaders and professionals in one room, and under one roof. I was lucky to get a seat at the rear of the hall, where I rubbed shoulders with delegates from DNATA and the New York City Economic Development Corporation.

Alex Cruz BA CEO
Craig Smith
President and CEO, WFS

To those in the industry who say that TIACA’s ACF could have been bigger and better attended, I can only say that despite walking around the show for three days and handing out all my business cards, I was not able to visit every booth. I must confess that like many of the attendees, I spent more time at the WFS and Brussels Airport booths where good food, drink and networking opportunities are a given. At the WFS booth, I got to meet Craig Smith the new President and CEO, and congratulate him on his new appointment at WFS, while encouraging him to get handlers to adopt a more ‘product driven’ approach. At the Brussels booth, I learnt about their new airside initiative for maintaining temperature levels between the aircraft and the warehouse, while also meeting many of the stakeholders who help market Brussels as one of Europe’s leading pharma gateways.

I visited the India pavilion at the show, where several Indian entities, including cargo handlers, airports and IT companies had joined hands to globalize the Indian air cargo story. India, has been a little late in coming to the air cargo party, but with one of the world’s highest economic growth rates, the rise of the pharma and e-commerce sectors, combined with improving infrastructure, it won’t be long before India becomes a major player in this business. I chatted with Amar More of Kale Logistics about promoting this ‘team approach’ for Indian companies at trade shows and on industry e-platforms and it appears that this form of joint marketing has a good future.

There were several other memorable events at TIACA:

Alex Cruz BA CEO
Incheon Airport booth

-OK-Soon Han, Director/Cargo Marketing and her team organized a stellar performance by Korean singers at the Incheon Airport booth, followed by ‘mouthwatering’ Korean delicacies. Korea is a major air cargo player, and Incheon Airport facilitates a large portion of the trade in this region.



Alex Cruz BA CEO
Eric Hartmann on right

-Eric Hartmann welcomed guests to the reception at the SkyTeam booth and introduced them to several of the group’s branded air cargo products, which are designed to flow seamlessly across the team’s global airline network.

-And finally, at the Canada reception we got a first taste of Canadian hospitality as the stage for TIACA 2018 shifts to Toronto. Thank you, Lise-Marie and Air Canada, for your warm welcome.

I hope you have a great Holiday Season.

Best wishes

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


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Singapore Airlines Cargo awards global maintenance and repair agreement to CHEP Aerospace Solutions

15 November 2016

Singapore Airlines Cargo and CHEP Aerospace Solutions have signed a long-term agreement for the maintenance and repair of the unit load device (ULD) fleet of Singapore Airlines Cargo.

CHEP will provide maintenance and repair services in Singapore, Hong Kong, Sydney, Melbourne, Amsterdam, Frankfurt, Brussels, Los Angeles, San Francisco and Dallas, with additional stations likely to be included in the global repair network. CHEP's repair shops are certified by the aviation authorities of the various regions and comply with the airworthiness approval requirements of CAAS, CASA, EASA and FAA.

In addition to the core ULD maintenance and repair services, CHEP will provide storage, control, inventory reporting and delivery of pallet nets, corner ropes, straps and other consumables at some of the appointed stations. CHEP's proprietary repair management software ACTIS will provide Singapore Airlines Cargo with real-time insight into all elements of the repair process.

CHEP Aerospace Solutions President, Dr. Ludwig Bertsch, said: "Our new five-year agreement with Singapore Airlines Cargo further strengthens the maintenance and repair division of our business and increases our participation in the Asia Pacific region where we have a ULD management agreement in place with another major carrier, Cathay Pacific Airways, in addition to MRO agreements with Qantas, Air New Zealand and other airlines. Although our parent company will change within the next few weeks, as announced to the market on 2nd November 2016, it's business as usual for us and our customers, and we are committed to continue to deliver value to our ever-expanding customer base."



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TIACA appoints Vladimir Zubkov as new Secretary General

Miami, Florida, USA, Wednesday 16th November

Vladimir Zubkov will be TIACA’s new Secretary General, replacing Doug Brittin, who retires at the end of the year.

Zubkov has more than 40 years’ experience in the air transport industry, including senior roles with the International Civil Aviation Organization (ICAO), and, most recently, as Vice President of the Volga-Dnepr Group of Companies.

He has been a member of the TIACA Board since 2011 and is the Chairman of the Industry Affairs Committee, as well as a member of the Global Air Cargo Advisory Group (GACAG) and the International Air Transport Association (IATA) Industry Affairs Committee.

“I am honored to be leading the only organization that represents all parts of the air cargo supply chain,” said Zubkov.

“Building on Doug’s successes with the regulators and key international organizations, we will continue to work closely together with ICAO, IATA, the World Customs Organization (WCO), freight forwarder organizations, Airports Council International (ACI), and all other partners, to ensure that the new regulations are implemented in a uniform way across the industry.

“We recognize that TIACA needs to grow its engagement in territories where it is under-represented such as the Far and Middle East, Latin America, and Africa, and we will focus on recruiting more members in those areas.

Alex Cruz BA CEO
Vladimir Zubkov,
TIACA’s Secretary General

“We must also continue to push for the modernization of the industry, championing e-commerce and e-freight penetration and talking convincingly to the World Trade Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD), regional development banks, and relevant regional organizations to form new alliances in order to drive faster and more complete adoption of e-freight.”

Before joining Volga-Dnepr in 2008, Zubkov spent over 20 years with ICAO, where he was Director of Air Transport Bureau and later Director of Planning and Global Coordination.

He worked for ten years with Aeroflot, and began his career at Moscow Sheremetyevo Airport. He has a Master’s degree in Air Transport Management from the Civil Aviation Academy of Leningrad.

He has led working groups focusing on the introduction of a paperless environment for cargo transportation in both Russia and the Asia Pacific region, and has helped with the development and implementation of projects globally involving communications, navigation, surveillance and air traffic management (CNS/ATM) satellite-based technology.

“Vladimir’s wealth of experience in both the private and regulatory sectors will prove invaluable to TIACA, whose mission is to bring the entire global air cargo community together,” said Sanjiv Edward, Chairman, TIACA.

“We are fortunate to welcome an individual with so much knowledge and passion for the industry to our leadership, and look forward to working with him.”

Zubkov will take over formally as Secretary General in January, with Brittin remaining in an advisory capacity during the handover.

He was appointed, following an application and evaluation process, by TIACA’s Nominations Committee, headed by Sebastiaan Scholte of Jan de Rijk Logistics.


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IATA: Airlines Financial Monitor - October 2016

Airlines Financial Monitor - October 2016
Released 9th November 2016


Key points from our full report on airline financial performance in September-October:

• Global airline share prices rose by 3.6% in October, but have underperformed the wider equity market this year;
• The initial financial results from Q3 2016 point to another solid quarter for industry profitability and cash flow, although they add to earlier signs that the industry profitability cycle may have peaked;
• Brent crude oil prices reached a 15-month high during October, but have fallen back so far in November. The oil market is slowly rebalancing, and prices are expected to trend upwards gradually over the coming years;
• There have been further signs that the intense downward pressure on passenger yields eased during the middle part of 2016, in keeping with the change in the trend of oil prices;
• The premium segment remains an important buffer for airline financial performance. Premium airfares have held up better than those in economy on many of the most important premium routes so far this year;
• Developments in passenger traffic continue to reflect the net influence of a number of factors. Traffic was resilient in September, and the seasonally-adjusted industry-wide load factor increased to a nine-month high;
• The upward trend in air freight volumes has accelerated in recent months, helped in part by one-off factors. Nonetheless, the load factor remains at a historically low level, and wider weakness of world trade is still a concern.



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ABX Air Labor Dispute to be Resolved Via Arbitration

WILMINGTON, OH – November 7, 2016

Air Transport Services Group, Inc. (NASDAQ:ATSG) today said that Judge Timothy S. Black of the U.S. District Court for the Southern District of Ohio has ordered that the dispute between ATSG’s cargo airline, ABX Air, and its pilot employees represented by the International Brotherhood of Teamsters, Airline Division; and the Airline Professionals Association of the International Brotherhood of Teamsters, Local 1224 (collectively, the “IBT”), is a minor dispute under the Railway Labor Act and should be resolved through the grievance and arbitration process contained in the parties current labor agreement.

John Starkovich, President of ABX Air, said that the airline will continue discussions with IBT representatives about resolving differences over pilots’ ability to determine compensatory time for extra flying at premium pay levels, versus ABX Air’s need to adequately crew its freighter aircraft with pilots during the peak holiday period.

“We welcome the opportunity to work with the pilots’ union in ensuring that our pilots maintain scheduling flexibility while at the same time ensuring that ABX Air has sufficient flight crews available to meet the needs of its customers,” Starkovich said. “I look forward to a prompt and fair resolution of these issues under our current labor agreement.”


ATSG to webcast presentation at Stephens Fall Investment Conference

WILMINGTON, OH – November 7, 2016

Air Transport Services Group, Inc. (NASDAQ:ATSG) today announced that it will webcast its presentation at the Stephens Fall Investment Conference in New York on Wednesday, November 9, 2016, at 8:00 a.m. Eastern time.

Joe Hete, President and Chief Executive Officer, and Quint Turner, Chief Financial Officer, will respond to participant questions concerning ATSG’s business, strategy, results and outlook during an interactive presentation. ATSG will offer a live audio of the presentation via a link on its website, www.atsginc.com or at wsw.com/webcast/stph27/atsg. A replay will be available at the same sites for 30 days.


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IATA: Air Freight Market Analysis - September 2016

Air Freight Market Analysis - September 2016
Released 3rd November 2016


Key points from our report on air freight markets in September:

• Global air freight tonne kilometres rose by 6.1% year-on-year in September 2016 - the fastest pace since February 2015.
• The upward trend in (seasonally adjusted) air freight has strengthened of late, aided in part by one-off factors
• but while a pick-up in new export orders offers encouragement, the wider world trade backdrop remains weak.
• The seasonally-adjusted freight load factor remains at a historically low level, but has increased in recent months.


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MIA WINS NATIONAL AWARD FOR MARKETING, COMMUNICATIONS AND CUSTOMER SERVICE

MIAMI, November 4, 2016

On November 3, the Miami-Dade Aviation Department (MDAD) was recognized with one award and four honorable mentions for excellence in marketing, communications and customer service during Airports Council International-North America’s (ACI-NA) 2016 Marketing and Communications Conference in Salt Lake City. Additionally, MDAD Director of Public Relations and Digital Marketing Dickie Davis received the Ted Bushelman Legacy Award for Creativity and Excellence at the organization’s annual awards gala.

MIA’s winning submissions were chosen from more than 350 entries in 18 categories from airports throughout the U.S. and Canada, and were judged by a panel of marketing and communications professionals.

MIA won first place in the Public Relations Programs category for its Honor Flight, a multi-faced campaign honoring war heroes organized in partnership with the non-profit organization Honor Flight South Florida. On April 2, the iconic Eastern Airlines transported 77 World War II veterans and their Elite Guardians, 77 Vietnam War veterans, to Washington, D.C. for a day of sightseeing to visit the memorials dedicated in their honor. The inclusion of the Vietnam veterans was a first-ever event which added an even-greater emotional element to the events. The veterans departed on flight number 1941, the first year of the war, and returned on flight 1945, the year the war ended. The event culminated with a traditional “mail call,” the distribution of personalized thank-you letters collected at MIA from airlines, federal agencies, other airport tenants, local school children and civic organizations; and a homecoming at MIA, where more than 2,000 South Floridians gathered to take part in a receiving line that included local residents of all ages, local elected officials and members of the U.S. military, numerous honor guards, airport employees and passengers.

MIA wins national award

MIA’s four honorable mention awards were in the following categories: Promotional Items, for MIAair (Airport Instruction and Readiness), a program designed to give South Floridians with autism-related disorders and other special needs the confidence to enjoy air travel by offering offer guided travel rehearsals and materials; Newsletters, for Tale Winds, MDAD’s print and electronic employee newsletter which provides a comprehensive, quarterly overview of important airport events, future plans and job benefits; Special Events, for the Wall of Honor Dedication Ceremony, a memorial at MIA for 118 military service men and women from South Florida who gave their lives while serving in the global war on terrorism since September 11, 2001; and Customer Service Programs, for MIAair.

The Legacy Award is the highest individual honor presented by the ACI-NA Marketing and Communications Committee. The award is named for its first recipient, Ted Bushelman, who served as Senior Director of Communications at Cincinnati-Northern Kentucky International Airport for 40 years. It is presented to an individual nominated and selected by his or her peers in the airport industry. The recipient of this award must have a minimum of 15 years’ experience in one or more of the following disciplines: media relations; community relations; aviation education; customer service; marketing, and air service development.

Davis currently oversees MIA’s social media platforms, digital marketing assets, creative services, and customer service initiatives, which include its volunteer ambassador program. Recently, Davis has spearheaded the launch of numerous marketing and customer service innovations at the airport, including the MIA Airport Official mobile app, MIAair program for special needs travelers, and MIAmamas nursing suites. She began her career with MDAD 43 years ago and holds the distinction of being the first woman promoted to a management position in operations at MIA - a rarity for female executives in the early 1980s.

“We’re honored to be recognized once again by ACI-NA for our communication efforts, and we’re especially proud of Dickie for receiving the prestigious Ted Bushelman Legacy Award,” said Miami-Dade Aviation Director Emilio T. González. “Dickie truly embodies the hard work, dedication and innovative spirit we strive for at MIA, and her distinguished career certainly speaks for itself. Congratulations to her and our entire staff who were responsible for our Marketing and Communications awards this year.”

Airports Council International-North America (ACI-NA) represents local, regional, and state governing bodies that own and operate commercial airports in the United States and Canada. ACI-NA member airports enplane more than 95 percent of the domestic and virtually all the international airline passenger and cargo traffic in North America. Approximately 380 aviation-related businesses are also members of ACI-NA, providing goods and services to airports.


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EQT Infrastructure II to acquire CHEP Aerospace Solutions from Brambles

2 November 2016

rambles, the global supply-chain logistics provider and parent company of CHEP Aerospace Solutions, has today announced an agreement to divest CHEP Aerospace Solutions, the Group's unit load device (ULD) pooling, management, maintenance and repair provider for the aviation industry, to EQT Infrastructure II ("EQT Infrastructure" or "EQT"), a leading infrastructure fund. The transaction will complete during November 2016.

Brambles formed CHEP Aerospace Solutions in 2011 following the acquisition and integration of a number of prominent ULD solutions companies. Through subsequent acquisitions and Brambles' asset management expertise, CHEP Aerospace Solutions has grown to become the global leader in pooling, management, maintenance and repair of ULDs used for the transportation of luggage and cargo in the airline passenger and air cargo industry. Today, the business owns and manages approximately 100,000 ULDs, and serves more than 90 airlines across a network of 48 global services centers and 420 airports, supported by over 550 expert team members. EQT Infrastructure will support the continued development of CHEP Aerospace Solutions and will actively assist the Company in capturing new growth opportunities.

The existing CHEP Aerospace Solutions leadership team remains in place and will continue to focus on providing world class customer service and innovative solutions that are creating sustainable value across the industry. EQT Infrastructure is committed to further strengthen the Company's capabilities and provide access to valuable industry experience through an industrial board of directors including senior leaders with aviation expertise.

The Company will retain its headquarters in Switzerland, along with regional operations centers in the United Kingdom, Thailand and the USA and global service centers in Europe, Middle East and Africa, Asia Pacific and the Americas. At an appropriate time following the completion of the acquisition by EQT, CHEP Aerospace Solutions will be rebranded to have its own unique identity.

CHEP Aerospace Solutions President, Dr. Ludwig Bertsch, said: "We would like to place on record our thanks to the Brambles team whose support and expertise has enabled us to develop the world's leading ULD management network. We are excited to join EQT Infrastructure, one of the world's most respected infrastructure funds, which combines the very best people with the industry expertise in infrastructure management that will allow us to continue to grow and provide smarter solutions and unparalleled customer service to the aviation industry."

Ulrich Köllensperger, Director at EQT Partners and Investment Advisor to EQT Infrastructure, said: "CHEP Aerospace Solutions provides critical infrastructure and services to the aviation industry and fits well with the EQT Infrastructure strategy of investing in medium sized operating infrastructure companies with opportunities for additional growth and development. The Company has a proven business model, an impressive customer base and a promising pipeline of prospective airline clients. The industrial board of directors including senior leaders with aviation expertise will support CHEP Aerospace Solutions in growing its asset base and offer pooling, management, maintenance and repair to more airlines globally."

Tom Gorman, CEO of Brambles, said: "The launch of CHEP Aerospace Solutions in 2011 was part of Brambles' strategy of leveraging its asset management and supply chain expertise to deliver value to customers across new industry verticals. Over the past five years, we have built a highly successful global business that now partners many of the world's leading airlines. We are confident that the future growth of the Aerospace business will be well served under the ownership of EQT Infrastructure which has a dedicated focus on infrastructure and related services, with a proven track record of success. On behalf of everyone at Brambles, I would like to thank the CHEP Aerospace Solutions team for their commitment to becoming the industry-leaders they are today and we wish them every success for the future."


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APPLICATION FOR MIA FOREIGN TRADE ZONE MOVES FORWARD

MIAMI, November 1, 2016

Today, the Miami-Dade Board of County Commissioners approved an application to the U.S. Department of Commerce that would designate Miami International Airport as a Foreign Trade Zone (FTZ) magnet site. Upon approval by the Commerce Department’s FTZ Board, the new magnet site will allow manufacturers to lease available airport property and have their tariffs deferred, reduced or eliminated.

“I commend the Miami-Dade Aviation Department for developing this innovative concept to generate more economic impact and jobs in our community,” said Miami-Dade County Mayor Carlos A. Gimenez. “MIA’s extensive air service network has made it our leading economic engine, and the FTZ expansion would further diversify the airport’s revenue streams to create additional non-aeronautical revenue.”

The application, which requests an expansion of Miami-Dade County’s existing FTZ 281 to include the airport, would allow companies to receive and process materials and merchandise as soon as it enters the country at MIA, all with reduced or eliminated Customs duties - saving valuable time and money from the supply chain process. Site users would be companies working in industries such as pharmaceuticals, electronics, textiles, footwear, auto parts, aircraft parts, avionics, machinery equipment, consumer goods and perishables.

“With more than 400,000 square feet of space available for lease, activating an FTZ magnet site on airport property will turn vacant real estate into a significant revenue stream,” said Miami-Dade Aviation Director Emilio T. González. “Combined with our recent designation by the International Air Transport Association as the first pharmaceutical freight hub in the U.S., a magnet site designation has vast potential for opening new doors at MIA within the trade and logistics industries, in addition to being a major job creator.”

FTZ 281 encompasses an area from Southwest Eighth Street to the Broward County line and from Miami Beach in the east to the Urban Development line in the west. Within this area, designated locations with active FTZs are considered to be outside of the commerce and customs territory of the United States. Companies within a FTZ are able to operate without being subjected to federal entry procedures or federal excise taxes, while minimizing involvement from other regulatory compliance agencies. MDAD worked closely with PortMiami, the grantee of FTZ 281, to ensure the application meets the intent of the FTZ regulations and will advance the value of FTZ 281.

In addition to the FTZ, the Miami-Dade Aviation Department is moving forward with a host of new initiatives to expand and diversify MIA’s cargo operations, including: Pharma.aero, an association created by MIA and Brussels Airport in May to grow the global pharmaceutical cargo business through a collaborative network of the world’s top airports; the first ocean-to-air perishables trans-shipment program in the state of Florida, launched in September; and the Cargo Optimization, Redevelopment and Expansion (CORE) Program, a long-term concept to modernize MIA’s existing cargo operation and double its capacity.


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Chapman Freeborn appoints Philip Mathews as chief commercial officer

November 1 2016

Chapman Freeborn Airchartering is delighted to announce the appointment of Philip Mathews as chief commercial officer.

Mathews will take up the newly-created position on November 1 and will join Chapman Freeborn’s three existing executive directors on the board: chief executive Russi Batliwala, chief operating officer Shahe Ouzounian, and chief financial officer Peter Joarder.

British-born Mathews graduated from Buckingham University in 1989 with a BA (Hons) in Politics, Economics, and Law and has enjoyed an aviation career spanning more than 25 years.

His vast experience includes 14 years with UK-headquartered Air Partner Plc who he joined in 2002. He was appointed president of its US business Air Partner, Inc. in 2003 and also served as a director on the operating board for the company in both the UK and the US.

In his new position at Chapman Freeborn, he will oversee all commercial activities for the company’s specialist cargo and passenger charter divisions, as well as driving the growth strategies for subsidiary companies including Chapman Freeborn OBC, Intradco Global, Logik Logistics International, and Wings 24.

Russi Batliwala, Chapman Freeborn CEO, said:

We are thrilled to announce the appointment of Phil Mathews as chief commercial officer. Phil has an extraordinary amount of experience in the charter industry, with an impressive record of delivering results in diverse markets. He will play a central role in managing the ongoing commercial performance of Chapman Freeborn and its subsidiary companies.”

Phil Mathews said

“I am delighted to be joining Chapman Freeborn - a company which has been at the forefront of the charter industry for over four decades. In recent years, Chapman Freeborn has expanded into several new markets and there are exciting plans for the future. I am looking forward to working with the board and senior management team to realise the group’s full commercial potential and to grow the business. "


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