SHORT SHOTS

The 1574th and final Boeing 747… but the prospect of a huge 787 order
What a bitter-sweet moment: the Queen of the Skies and the plane that has accompanied many of us our whole life long, saw its final product leave Everett Factory in Washington, USA, on 06DEC22, to commence test activities. It will be delivered to Atlas Air early next year, and theoretically has a 30-year lifespan ahead of it, though with certain airports starting to ban quad-engine jets, and the move to more fuel-efficient planes, it is questionable as to whether it will fly all the way through to retirement in 2053. Whereas 30 years ago, three out of four cargo planes circumnavigating the globe were B747s, today the figure is closer to one in five.
Kim Smith, Boeing Vice President and General Manager, 747 and 767 Programs, commented: “For more than half a century, tens of thousands of dedicated Boeing employees have designed and built this magnificent airplane that has truly changed the world. We are proud that this plane will continue to fly across the globe for years to come.” It all kicked off in 1967, with the world’s first twin-aisle passenger variant going into service for PanAm on 22JAN70. The first 747 freighter was delivered to Lufthansa on 09MAR72. The Boeing press release points out that the latest version, the B747-8F is “the longest commercial aircraft in service (76.2m). At typical cruising speeds, the 747-8 travels roughly the length of three FIFA soccer fields or NFL football fields, per second. [It has] a revenue payload of 133.1 tons, enough to transport 10,699 solid-gold bars or approximately 19 million ping-pong balls or golf balls.”
While the end of the B747 era is leaving many in the aviation world very morose and reminiscent, Boeing’s stocks are increasing in value again with the expected promise, on 13DEC22, of United Airlines placing a record order for more than 100 Boeing 787s. Reporters have been invited to attend a “historic announcement” that day, taking place at the Boeing South Carolina [787] factory, in the presence of United’s CEO, Scott Kirby, and Boeing Commercial Airplanes CEO, Stan Deal.
For more, please view our report in this issue: An homage to the B747-200F

With revenues taking off, MNG plans to land on the NYSE
One week you celebrate your 25th Birthday, the following one you decide to take your company to the next level. MNG Airlines announced this week that it was joining forces with special purpose acquisition company, Golden Falcon Acquisition Corp., to become publicly listed on the New York Stock Exchange (NYSE). The agreement has been signed and the official launch is expected to happen in the first half of 2023. MNGA is the code to note down and invest in, then. Ali Sedat Özkazanc, CEO of MNGA, explained the move: “We see significant value creation potential from becoming a publicly listed company in the U.S., with the expectation that it will enable transformative commercial agreements, create an acquisition currency, and align management incentives with shareholders.”
Murathan Gunal, Chairman of MNGA and CEO of MAPA Group, added: “Today [07DEC22], MNGA is an international company with a global presence including multinational corporate clients in the U.S., Europe, and Asia. In the year that we celebrate 25 years of operational excellence, listing on the NYSE feels like a natural next step in our company’s history. We’re excited about delivering on the anticipated value creation opportunity ahead.”
It has been an excellent year so far for MNG, which tallies a 39% year-on-year growth rate, reaching $353 million on 30SEP22 [Net income: $61 million, Adjusted EBITDA: $116 million]. It currently counts more than 15,000 corporate customers in 41 countries, and operates 3,500+ flights per annum. “The transaction is expected to have a pro-forma enterprise value of $676 million, assuming minimum gross transaction proceeds of $30 million, implying a 5.8x multiple on LTM Adjusted EBITDA as of 30SEP22,” the release reveals.
Makram Azar, CEO of Golden Falcon, stated: “We believe MNGA is an exceptional opportunity […], with a strong growth profile, profitability, cash flow generation, and priced at what we believe is the lowest EBITDA multiple of any business combination closed to date in 2022, which is why we believe it is such a compelling investment opportunity.” Scott Freidheim, Chairman of Golden Falcon, added, “At our initial public offering in DEC20, we communicated to investors that we intended to bring to them an established company in the Europe, Middle East, and Israel region, with a compelling track record, cash flow-generation, a clear transatlantic expansion nexus, a strong growth profile, and benefitting from secular market tailwinds. We’re delighted to bring this differentiated investment opportunity to our investors as we believe MNGA meets the attributes we laid out as key business combination criteria.”

One-way online cargo ticket to China
China Southern Air Logistics has opted to publish its import capacities on WebCargo, likely in an effort to fill the holds on its return flights, given that Chinese exports “represent one of the largest segments of global air cargo trade, accounting for 7.3 million metric tons of a global 65.7 million metric tons,” according to WebCargo’s press release. It is a significant decision since it marks a historic step in WebCargo’s development: Not only is China Southern Airlines’ cargo arm the first Chinese carrier to offer China import eBookings on WebCargo, but China Southern is also the country’s largest and one of the world’s biggest airlines. With WebCargo now hosting more than 50% of global air cargo capacity, China Southern Air Logistics would cause another large leap should it decide to go for export routes, too. As it is, WebCargo’s 3,500+ freight forwarder members can now check real-time rates and instantly book and pay for capacity on board of China Southern Air Logistics.
Chengqing TAO, Executive Vice President of China Southern Air Logistics, said: “Digital transformation has become key to staying ahead. We are happy to embrace e-solutions to optimize our sales, and believe our cooperation with WebCargo will bring considerable added value to our customers. Aiming to become a competitive global integrated logistics provider, China Southern Air Logistics will devote great efforts to enhancing our digital capabilities to provide quality service.”
Zvi Schreiber, CEO of the Freightos Group, commented: “eBookings are already transforming air cargo in many parts of the world, and now also in the key market of China. Allowing freight forwarders direct access to China import bookings is critical for global supply chain reliability and access. We’re privileged to partner with a leading Chinese carrier, China Southern Air Logistics, to bring new-found efficiency to freight forwarders globally. In just four years, Digital Air Cargo, or DAC, has gone from zero, to airlines with more than 50% of worldwide capacity available electronically on WebCargo. We congratulate the air cargo industry on this rapid digital revolution.”

Altenrhein is the latest Gebrüder Weiss location to go solar
Gebrüder Weiss began installing photovoltaic systems on the rooves of its Austrian and German facilities back in 2021, already (CFG reported: https://www.cargoforwarder.eu/2021/05/09/short-shots/ ) Altenrhein in Switzerland is now the company’s first Swiss location to be equipped with roof solar panels. The system has an installed capacity of 270 kW peak and can theoretically save 20 tons of CO2 each year. It is already in a position to generate the equivalent of the average annual electricity use in around 55 single-family homes. Overall, the company’s existing 21 PV installations generate 10% of its total electricity, saving an annual 1,110 tons of CO2. It still has 7 years to hit its target of carbon neutrality for its logistics facilities by 2030. Oskar Kramer, Country Manager Switzerland at Gebrüder Weiss, declared: “The roof of the logistics center is ideal for generating solar power. The new PV installation enables us to meet around 40% of the location's electricity needs.” Gebrüder Weiss is already planning to expand the system in 2023, and to install a similar one at its Basel site.
In other news, Gebrüder Weiss announced its integration of 3S Transport & Logistics, acquired in OCT21 (CFG reported: https://www.cargoforwarder.eu/2021/10/31/short-shots/), into the Gebrüder Weiss Türkiye country organization is now complete, and it is focusing on expanding its service offers in Türkiye, to provide attractive connections to European importers and exporters.
Thomas Moser, Director and Regional Manager Black Sea/CIS at Gebrüder Weiss said: “The demand for transport on the Middle Corridor route is steadily increasing. Due to the increased transit volume, Türkiye is gaining further importance as a central logistics hub between Europe and Asia,” not least because the route which leads from Europe via Türkiye, Georgia, Azerbaijan, and Kazakhstan to China, avoids Russia.
Mişel Yakop, Country Manager Gebrüder Weiss Türkiye, added: “Thanks to the fully integrated additional capacities of 3S Transport & Logistics, we are well prepared for this development. We are pleased that, as the transition period comes to an end [and] the rebranding process has reached a successful conclusion.”

DSV partners with Etihad for SAF operations
DSV is a First Mover on Etihad Cargo’s NetZero transatlantic flight. The forwarder invested in SAF during the SAF Book & Claim process, to offset its shipment’s carbon emissions. The airline’s first NetZero transatlantic flight on 13NOV22, operated with its Boeing 787 “Greenliner”, flew from Washington Dulles to Abu Dhabi. In its press release, Etihad underlines the use of technology when it comes to implementing sustainability – first the online booking transparency and SAF support in the booking process, and secondly the incorporated SATAVIA technology in the B787. SATAVIA actively manages carbon emissions and non-CO2 climate effects from contrails, or condensation trails, which cause surface warming and are responsible for up to two-thirds of aviation's climate impact.
Martin Drew, Senior Vice President – Global Sales & Cargo at Etihad Aviation Group, said, "Etihad was recently named the Environmental Airline of the Year, and Etihad Cargo is committed to providing solutions that enable its partners and customers to achieve their sustainability ambitions. Etihad Cargo is witnessing more focus on sustainable air cargo from customers who are seeking to establish partnerships that provide SAF utilization, carbon offset initiatives and management of non-CO2 climate impact. Etihad Cargo's partnership with DSV to transport cargo utilizing the SAF book and claim system has showcased the power of collaboration and demonstrated the future of net-zero aviation. The successful delivery of DSV's shipment has proved net-zero air cargo operations are possible and is the first step in transforming the possible into the routine."
Etihad Cargo is aiming for net zero carbon emissions by 2050, and has set interim milestones of 20% less by 2025 (compared to 2019), and 50% by 2035. Its SAF book and claim program is its newest initiative. It is also the first Middle Eastern carrier to join TIACA's BlueSky verification program, assessing its sustainability progress against eight key criteria. At the WCS 2022, it announced its partnership with IATA to trial its CO2 emission calculation tool for three months, sharing its data on fuel burn, load factors and other key information, for the eventual sustainability benefit of the entire value chain.

For Net Zero success, SAF production needs significant increase
100 million liters of SAF were produced in 2021, of which every last drop was sold and used. 2022 saw a 200% increase in production, with IATA estimating the output at 300 million liters, perhaps even 450 million liters by the end of the year. Positive developments and a forecasted exponential growth path that could see 30 billion liters begin produced in 2030, if all goes well. Pitted against the 2050 Net Zero emissions goal, which sees around 65% SAF involvement, the current output pales in comparison to the required 450 billion liters’ annual production required by then. So, SAF production requires serious support and action. At the 41st Assembly of International Civial Organization (ICAO) in OCT22, participating governments agreed a Long-Term Aspirational Goal (LTAG) on climate, and now share the same target for aviation's decarbonization and SAF production advancement. They are called upon to put SAF production incentives in place “similar to what is already in place for biogas and biodiesel,” the IATA press release states. “Until we have commercialized options for alternative power sources such as hydrogen, all of aviation's SAF supply will be derived from biofuel refineries. These refineries produce renewable biodiesel, biogas, as well as SAF and their refining capacity is set to grow by over 400% % by 2025 compared to 2022. The challenge for aviation is to secure its supply of SAF from this capacity.” It goes on to point out that, until now, more than 450,000 commercial flights have been operated using SAF, and airlines are increasingly signing offtake agreements – 40 so far in 2022 - with producers – a clear indication that SAF production needs to scale up quickly.
Willie Walsh, IATA's Director General, pointed out: “There was at least triple the amount of SAF in the market in 2022 than in 2021. And airlines used every drop, even at very high prices! If more was available, it would have been purchased. That makes it clear that it is a supply issue and that market forces alone are insufficient to solve it. Governments, who now share the same 2050 net zero goal, need to put in place comprehensive production incentives for SAF. It is what they did to successfully transition economies to renewable sources of electricity. And it is what aviation needs to decarbonize.”

Brigitte Gledhill

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