SHORT SHOTS

SmartLynx planning to operate up to 20 A321Fs by end 2023
Though the Latvia-based, ACMI charter and cargo operator, SmartLynx Airlines is primarily concerned with passenger services, it is building up serious cargo operations and forecasts its volumes to expand 10 % to circa 40 % by 2024/25. It announced on 14OCT22, that four more A321Fs will be joining its fleet by the first quarter of next year, bringing the size of its fleet to 15. Though it will not stop there. SmartLynx’ company strategy is to have the largest A321F fleet, given that this aircraft-type is highly versatile, fuel-efficient, and has the highest payload for a narrowbody. By the end of 2023, the airline expects to operate up to 20 A321Fs, on cargo flights across Europe, Asia, Africa, and South America.

SmartLynx Airlines CEO, Zygimantas Surintasm, stated: “The current demand for this type of aircraft is very high – even higher than the conversion capacity, and we are happy to be one of the first airlines to believe in the program and secure multiple P2F conversion slots. I can admit that, at the beginning, there were doubts if it was the right move for SmartLynx, but from today`s perspective, taking that risk and diversifying our business portfolio with cargo operations has proven to be the right choice. In addition to tapping into a market that has grown during the pandemic, the addition of freight business helps offset the seasonal issues that ACMI operators typically face.”

The four new A321Fs to come bear the registrations MSN 941, 961, 1185, and 1241. They are part of a sales-leaseback agreement with Aero Capital Solutions, Inc. and will be registered in Malta once Precision Aircraft Solutions (Precision) and Elbe Flugzeugwerke (EFW) have carried out the conversions.

Žygimantas Surintas added: “The new Airbus A321F freighters have helped us reduce flight operational costs by up to 15 % and ensure up to 20 % lower fuel consumption as compared to other aircraft in the class, making the company very competitive in the complex air cargo market. Because of their efficiency, these aircraft are used by such international logistics companies as DHL which is also our first cargo customer. A321Fs are the first narrowbody freighters that offer containerized lower cargo deck to reduce the overall shipping costs, and that is why they are currently in high demand on the market.”

Cargolux has opted for a Boeing upgrade
Which way was the decision going to go? Airbus or Boeing? That question is now answered, following Cargolux’ announcement on 10OCT22, that it had agreed an order of 10 Boeing 777-8 freighters plus options for six more. The official signing ceremony took place at Cargolux’s Luxembourg headquarters, making good on the carrier’s “preferred choice” announcement at the 2022 Farnborough International Airshow, though this time last year, there had been plenty of rumors speculating that Cargolux was considering the Airbus 350F as the replacement type for its aging Boeing 747-400 freighter fleet. “The [B777-8] order was previously listed as unidentified on Boeing’s orders & deliveries website,” the recent press release points out, going on to laud the aircraft type’s reduced emissions, lower noise levels, as well as the most efficient fuel use and operating costs per ton of any large freighter.

Richard Forson, Cargolux President & CEO, explained: “The agreement we signed today, will consolidate Cargolux’s position as a global leader of air freight services. Replacing our aging fleet of B747-400 freighters with the latest technology and fuel-efficient B777-8 freighter model, will contribute to our long-term sustainability program while continuing to offer our customers the tailored service they expect.”

Stan Deal, President and CEO of Boeing Commercial Airplanes, added: “With its purchase of our newest freighter, Cargolux has invested in a sustainable future as the B777-8 freighter will significantly reduce CO2 emissions compared to the airplanes it is replacing. Equally important, the B777-8 freighter operates with a noise footprint up to 60% smaller than its predecessors, significantly minimizing noise emissions around airport communities.”

In less than 10 months (the new B777-8 freighter was launched just this January), Boeing has succeeded in contracting 50 orders for the model. When it comes to payload and range, there is almost no difference between the B777-8 freighter and the B747-400 freighter. However, the differences in fuel efficiency (30% better) and emissions, as well as per ton operating costs (25% better), speak for themselves. Europe’s largest all-cargo airline, with its current 30-strong mixed Boeing 747-8 and 747-400 freighter fleet, will become significantly more sustainable with its latest fleet upgrade purchase.

Welcome Hellmann Worldwide Logistics, Switzerland, in 2023
Hellmann Worldwide Logistics announced on Tuesday, 10OCT22, that the decision had been made together with its long-standing partner company, ATS-Hellmann Worldwide Logistics AG, to assume ATS’ Swiss air and sea freight activities and relaunch as an own Swiss national company. Thus, from 01JAN23, the two companies will have merged the international air and sea freight services previously performed by ATS-Hellmann since 1991, and from then on will operate as Hellmann Worldwide Logistics, Switzerland, offering Swiss customers an extended product portfolio and greater market presence. All employees previously with ATS-Hellmann, will move to the new company, which will continue to be led by Managing Director, Kathrin Kuske. Chairman of the Board of Directors will be known expert, Manfred Schellhammer. “Hellmann will remain in partnership with the ATS Group and will continue to use its services, including air freight handling. Both companies see this step as a consistent continuation of the long-standing partnership with different focus activities in the future,” the release underlines.

Jens Tarnowski, Regional CEO of West Europe, Hellmann Worldwide Logistics, commented: “The establishment of the Swiss national company is another milestone for us in the strategic development of the Hellmann network in Europe and we look forward to expanding our activities here under our own management from next year. Through targeted investments in our local service portfolio and in conjunction with our global network, we aim to sustainably strengthen the market presence of Hellmann in Switzerland. By bundling our activities in our own network, our customers who have worked with ATS-Hellmann to date will have even more direct access to our global services.”

Zongteng Group’s first freighter
The 2009-founded integrated e-commerce logistics solutions provider, Zongteng Group, has now taken freight into its own hands, by acquiring its first B777F. CFG asked if more are to come, but this is currently not yet disclosed. The brightly-liveried B777F was delivered to Shenzhen Bao’an International Airport on 09SEP22, and on 30SEP22, in partnership with Central Airlines (established as a cargo airline in 2019, with a fleet of 7 B737 and one B777), the first flight was carried out from Shenzhen (SZX) to Riyadh (RUH). In future, the freighter will head out from Shenzhen three or four times a week to destinations in the Middle East and Europe, eventually also America. “The acquisition marks a new milestone in the globalization process of Zongteng Group,” the release underlines, pointing to Zongteng Group “taking the next step as an international logistics provider.”

Zongteng Group counts Elogistic, Worldtech, and YunExpress amongst its subsidiaries. The latter is a small-parcel forwarder active in Liège, among 30 or so other European and U.S. fulfillment centers, and provides end-to-end cross-border delivery service in cooperation with integrators such as DHL and UPS, as well as third-party ocean and road feeder transporters. With a 2021 turnover of €3.85 billion, Zongteng Group is on a growth trajectory. One that it hops to capitalize on now with its own aircraft. “The B777F has a range of 9,200 kilometers and a maximum load capacity of more than 102 tons. This freighter combines excellent range capability and outstanding efficiency with lower carbon emission, making it the world's largest and longest-range twin-engine wide-body freighter.” Planned to provide 25,000 tons of capacity each year, Zongteng Group aims to provide premium logistics services to e-commerce, “gain greater control over the entire supply chain, and thus significantly enhance stability and efficiency beyond the standard e-commerce parcel delivery services.”

… as well as on CargoAi
“People and Digitalization are the two core pillars of Qatar Airways Cargo's Next Generation strategy, and CargoAi will definitely play a key role in taking the air cargo industry's leading carrier to the next level,” the press release heralds. With its move to publish capacities on CargoAi, Qatar Airways Cargo now offers all three leading online booking platforms. For CargoAi, gaining the world’s largest airline means a large addition to its Middle-Eastern footprint, as well as improved global network reach. Qatar Airways Cargo’s capacity offer went online on 10OCT22 in 10 key European countries. The move to include the rest of its network will follow on 24OCT22. Fact is, that the more than 6,500 registered CargoAi users across 105 countries will soon have access to Qatar Airways Cargo's global network of more than 150+ stations. “Users can book an attractive cross-section of General products, shown with real-time rates and space, and receive immediate booking confirmation. The integration between the two systems was completed rapidly, further demonstrating the need and appetite for modern airlines to increase their digital presence and online distribution.”

Matthieu Petot, CEO of CargoAi, declared: “With the world's current number one cargo airline joining our online marketplace, CargoAi gains a significant increase in global market offer. Qatar Airways Cargo has a strong digital focus and very clear ideas on how the future air cargo industry should look. This makes for a highly interesting partnership and one that will without a doubt bring additional benefits to our ever-increasing international customer base. We are honored to welcome Qatar Airways Cargo on board, and look forward to supporting its ongoing success."

Qatar Airways Cargo now has a Digital Lounge
As part of its Next Generation and VISION 27 strategy, Qatar Airways Cargo has launched a Digital Lounge on its website; “a comprehensive platform that offers customers several features such as booking, shipment tracking, account management, reporting, and other services online.” The airline states that “simplicity, scope, and security were the carrier's guiding principles in the redesign of its web platform,” which already saw phase one of its redesign completed earlier this year. With Digital Lounge, the aim is to enable customers to quickly access the information they require online, rather than having to go through lengthy phone or email communication. With just a single sign-on, customers using the Digital Lounge will receive instant confirmation for General Cargo bookings (subject to availability and required validations), with all other products following at a later stage. “Greater process efficiencies result in a better use of resources and less negative environmental impact,” the release points out, clarifying that as its website is cloud-based and information can now be retrieved using fewer clicks, this results in a lower carbon footprint than before.

Guillaume Halleux, Chief Officer Cargo at Qatar Airways, emphasized: “Digitalization is the cornerstone of The Next Generation, which places user experience and ease at the center of our activities. Through the Digital Lounge, Qatar Airways Cargo has opted for an omni-channel digital strategy whereby the customers are given a wide variety of choices in how they wish to interact with us.” Those choices include increased API (Application Programming Interface) connection technology as well as third-party digital marketplaces. As communicated in the shorts above, Qatar Airways Cargo has added CargoAi and cargo.one to its digital marketplace portfolio, “following its highly successful global launch on WebCargo last year,” and will participate in their new products where appropriate. It recently “signed up for WebCargo Pay by Freightos in seven countries: Spain, Ireland, Japan, Singapore, United Kingdom, the United States and South Africa, enabling customers to add cash credits to their account to easily book shipments from the WebCargo platform, without a bank guarantee.” Hence, both non-IATA and CASS freight forwarders as well as customers who are not registered with Qatar Airways, are able to e-book cargo on flights in the Qatar Airways Cargo network.

Maersk opens Chicago Airfreight Gateway
Maersk has opened an air cargo facility, the Chicago Air Freight Gateway, not far from Chicago O’Hare Airport (ORD), which is both a Bonded Container Freight Station (CFS) with U.S. Customs, and operates as a U.S. Transportation Security Administration (TSA) Certified Cargo Screening Facility (CCSF). Thus, import and export cargo air freight can be quickly prioritized and safely handled, both within 24 hours of arrival at the ORD gateway. The facility is designed to offer direct planeside recovery with immediate transfers to the new facility. The release points out the staggering fact that 70% of the U.S. is just an overnight truck drive away, and thus the Chicago Air Freight Gateway will largely facilitate the swift delivery of Asian and European import shipments “The new facility also serves Maersk’s air cargo hub in Rockford International (RFD). Airport – a 24/7, fast growing, air cargo hub.”

Mike Meierkort, Regional Head of Maersk North America Logistics and Services, said: “We want to expand our air freight presence and logistics services in key locations and today’s Chicago inauguration is an important step in our integrated offering to customers. We want to create more routing options and flexibility for customers looking to improve their air cargo supply chains. Our new Chicago Air Freight Gateway offers an integrated supply chain solution to time critical shipments and order fulfillment deadlines.”

Challenge Aviation keeps the Group’s planes in the air
“Challenge Aviation is the Group's Engine,” the press release announces when introducing Challenge Group’s leasing subsidiary. Challenge Aviation was founded in 2016 and is based in Malta. It offers widebody aircraft and engines for lease, and also trades in aircraft spare parts. “Challenge Aviation currently owns eight wide body aircraft and five spare engines which it leases out to the Group's three airlines, Challenge Airlines BE, Challenge Airlines IL, and Challenge Airlines MT, as well as to third-party airlines. The aircraft are all registered in Israel, Belgium, and Malta,” the release details.

Challenge Aviation’s Chief Financial Officer, Daniel Ganem (35), started out in IAI's finance department ten years ago, before moving to business development and flight planning with Challenge Airlines IL (formerly CAL). He later became the airline’s financial analyst, and now heads the Group's USD 300 million fleet expansion project. This includes the recent acquisition of four Boeing 767, which are being converted into freighters, to be operational by next year. Also, Challenge Aviation is currently sourcing four Boeing 777, also for conversion. IAI will carry out the conversions.

Daniel Ganem, CFO of Challenge Group, says: “When we started out in 2016, our leasing fleet consisted of 3 Boeing 747 freighters. In less than 7 years, we will have almost trebled that number. In a world that is desperate for cargo space, we are systematically converting and building up our leasing offer, and aim to become a leading lessor in the airfreight industry within the decade. With over 45 years of experience in overcoming the challenge of limited equipment, Challenge Aviation is in the best position to understand its customers' needs and is quick to source available aircraft or to replace engines. We also hold a number of maintenance contracts: thus, we have all the necessary ingredients at our disposal, for us to be able to say, 'Challenge Accepted!'”

Brigitte Gledhill

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