CLG has only been operational since 7 October last year and the first restructuring of the company is already underway. A new management has taken over the helm. Tough job cuts are foreseeable to optimize the business activities and streamline the Leipzig, Germany-based freight carrier’s structures.
Andrey Andreev is known as being an excellent communicator and straight talker. Last Monday, the former VP Europe of Volga-Dnepr / AirBridgeCargo had an appointment with a notary who officially attested him the appointment of managing director at CargoLogicGermany (CLG). “I will assume the role of deputy CEO, while Dierk Naether acts as CEO,“ the exect defines the job descriptions. Naether was appointed CEO on 1 August, succeeding Johannes Jaehn on the helm. Prior to this, CFO Jan Bressler had gone off on his own (CFG reported).
With Naether and Andreev in command, it remains to be seen whether the personnel changes at the top deck, including the middle management level of the newcomer will be completed. However, this is highly doubtful, because Andreev literally said to CargoForwarder in a telephone call that CLG was “overstaffed“ making the streamlining of the workforce inevitable.
As example of this costly “overstaffing“ he mentions Human Resources, a scope of action for which two experts are responsible within CLG. "With a total of 62 employees, including 34 pilots, this doublication of duties and personnel covering the HR field is actually not necessary." Mr Andreev’s point: In expectation of a more rapid fleet expansion, too many employees were hired in pre-corona times, which has become a cost driver in view of a slower development.
Looking at cost optimization
Asked about internal concerns that up to 30 percent of the administrative staff would be laid off, he reacts with amusement. "Ridiculous rumours with no truth to them," was his reaction. But he confirms that cuts will affect administrative staff in particular. Figures he declinded to mention but speaks of “structural optimizations“ instead for matching the volume of business with employment. “The previous management hired personnel based on optimistic fleet growth expectations, thus overstaffed CLG on purpose.“
Touching the future fleet size – CLG currently operates 3 B737-400P2F aircraft, Mr. Andreev remains cautious. Growing the freighter fleet depends very much on the financial result of fiscal 2020, he emphasizes. “If we generate profits, we are on the right track, which is a precodition for upping the fleet in 2021 or after.“
To achieve this goal, talks aimed at setting up cooperations between CLG and interested integrators offering them intra-European feeder services for eCommerce items are currently being held such as UPS, Amazon, ASL and some others. "And I like to take the opportunity to clearify that our launching customer was DHL Express, not FedEx, as reported mistakenly over and over again,“ the cargo veteran stresses.
In his new role, the Russian national will constantly shuttle between Frankfurt and Leipzig, spending 2 days at LEJ Airport and 3 at Rhine-Main, despite the fact that his term at ABC ended for good.
Finally he stresses that switching from ABC/V-D to CLG he did on his own free will and not because CargoLogicGermany’s sole stakeholder Alexey Isaikin, the influential owner of the Volga-Dnepr Group that includes AirBridgeCargo, Atran Airlines and other companies, ordered him doing so. He attaches great importance to this statement.
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