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09. September 2018

SHORT SHOTS

IN BRIEF, THE LATEST CARGO AIRLINE INDUSTRY NEWS.

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TIACA eyes next generation leaders
Attracting young people into the air cargo industry is not an easy venture despite the continued changes in the supply chain and the billions of dollars being earned worldwide in this vibrant business.
The above is the opinion of The International Air Cargo Association (TIACA), who is putting a lot of effort into attracting future young potential management candidates into the industry. As TIACA’s chairman, Sebastian Scholte recently stated in TIACA’s newsletter - “Tech companies get so many applications, but unfortunately we cannot choose from so many people, and our pay levels are not at the same level.” This problem has been recognised since some time (CargoForwarder Global reported) by TIACA and they have initiated various schemes and workshops with the aim of attracting future management potential into air cargo. The first one was held in Amsterdam in conjunction with Air Cargo Netherlands (ACN) and another will follow at this year’s Air Cargo Forum in Toronto. There is a need to attract and properly train new management candidates in air cargo in order for the industry to keep abreast of the ever-changing needs in the coming years.

Liege Airport has invested in a state-of-the-art Horse Inn, which is paying off  -  photo: LGG
Liege Airport has invested in a state-of-the-art Horse Inn, which is paying off - photo: LGG

Liege Airport Horse Inn in good use
The so-called Horse Inn at Belgium’s Liege Airport has been in use since 2016 and it seems to have become a second, if not temporary home, for thoroughbred horses. The airport has been concentrating on horse transport for more than 10 years already and the introduction of the Horse Inn two years ago seems to have paid off.
They managers of the Inn have their work cut out for them during the coming weeks. a total of 500 horses will transit the Horse Inn on their way to the FEI World Equestarian Games which are being held the USA at Tryon (North Carolina) from 11 to 23 September. Liege Airport has a team of 25 animal experts on hand to ensure a smooth transit for the large number of horses who will be flown out of Liege to the USA. This means coordinating the reception of the horses, proper containers on hand, cleaning and loading of the animals onto the aircraft. Emirates SkyCargo will supply freighters to operate 19 dedicated horse flights to Greenville-Spartanburg International Airport in South Carolina. From there the animals will be trucked to the showgrounds

WFS wins Thai in UK & Ireland
Thai Airways Cargo (Thai Cargo) has award Worldwide flight Services a five-year cargo handling contract in the UK and Ireland. The contract which went into effect on 1. September means that WFS will be responsible for the cargo handling of Thai’s twice-daily A380 and B777 flights from London Heathrow to Bangkok as well as all regional cargo handling throughout the UK and Ireland, including trucking services between the various locations and LHR. The deal also sees Thai Cargo’s staff moving into WFS’ Building 550 at Heathrow’s Cargo Centre. There, Thai Cargo will have their own dedicated export facility which includes direct access to air-side.
In other news WFS announced that they have opened in a new air cargo terminal at Milan-Malpensa Airport. The new facility will be able to handle more than 47,000 tons per annum and it is the handler’s first own cargo facility in Italy. American Airlines is said to be the first airline customer which WFS has signed up in the new warehouse. There is a total of 5,000 sqm warehouse space along with a further 3,000 sqm office space for customers. 

EU to regulate Ground Handling
The Airport Services Association (ASA) which represents airport ground handlers worldwide, has recently stated that ‘the ground handling industry may be facing its biggest regulatory change in Europe since the EU Ground Handling Directive of 1996.’ A new EASA Basic Regulation which has been cleared by EU member states, is planned to go into force by the end of this year.
The revision to the Directive ‘is aimed at bringing safety regulations into force by the 2020s, most notably by adding ground handling drones to EASA’s remit’ - ASA has informed its members. The ASA Board of Directors has been lobbying for the changes on behalf of its members for some time already, thereby giving the ground handling industry the means to be recognised as equals with airlines, airports and manufacturers. The possible downside to this according to ASA is that although they are behind the aim to standardise operations, ASA is still wary that ’Europe should not become prescriptive in terms of how the ground handling industry operates.’

WorldACD sees trend towards larger shipments
WorldACD Market Data in their July 2018 rundown stress the fact, as did IATA, that minimal growth in air cargo was experienced for the second month in a row in July of this year. It is interesting to note WorldACD’s comment that volumes grew by only +0.5% and Direct Ton Kilometers (DTK’s) by +0.8%. This indicates, they say, that due to a higher DTK growth compared to volume, that there is a distinct shift for cargo being carried on longer haul markets.
Their July rundown indicates that ‘there is a trend toward larger shipments in 2018.’ Average shipment weight increased by almost 2% year-on-year. The average worldwide cargo yield dropped to US$1.88 in July, a further decrease of 0.6% than June, although still higher than the same period in 2017. With fuel prices rocketing and the fear that yields might drop further, some carriers will be taking a closer look at their cargo bottom lines during the coming months.

Soeren Stark moves from Frankfurt to Hamburg  -  photo: hs
Soeren Stark moves from Frankfurt to Hamburg - photo: hs

Lufthansa appoints new technical operations chief
The Supervisory Board of Hamburg, Germany-based Lufthansa Technik AG has decided to appoint Soeren Stark to its Executive Board and to the position of Head of Technical Operations, Logistics & IT.
As of 1. January 2019 Mr Stark will take up responsibility for Fleet Services, Base Maintenance, Components, Logistics, IT and Quality Management. He takes over from Dr. Thomas Stueger who after 14 years as a Member of the Executive Board, goes into retirement.
Soeren Stark has been with the Lufthansa Group since 2001 and he has been Head of the Lufthansa Cargo operations division since 2016. Previously he was Head of Aircraft Overhaul and Logistics Services at LH Technik, as well as having started his career with Lufthansa at LSG Sky Chefs in 2001. It has not been yet decided who will take up Mr Stark’s present position within Lufthansa Cargo. A decision is expected in the not too distant future.
Dr Stueger who spent 25 years with LH Technik, was instrumental in shaping the course of the technical development for the German carrier.

Swissport grows further in first half-year
The Zurich-based airport ground handler, Swissport International who employs over 68,000 staff and is said to serve over 850 clients, has published their 2018 first half-year results which show a significant growth pattern in both cargo and pax.
Cargo volumes handled rose by 5% to 2.3 million tonnes and passengers handled worldwide increased by 10% to 132 million. Total revenue for the period January to June was €1.43 billion, a 4.15 increase over the same period last year. The company states that EBITDA reached €116.3 million - an amazing 35.5% increase on 2017 figures. Swissport puts the positive development down to “organic growth with most regions profiting from increased global economic activity, and to the contribution of Aerocare following the company’s acquisition in March 2018.”

John Mc Donagh

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