Sponsored by

Quality and freshness preservedBecause maintaining the quality of your produce matters,

Qantas Freight’s Q-GO Fresh ensures your fresh seafood, meat,

plants and flowers arrive at their destination, with freshness

and quality preserved.

Qantas Freight is Australia’s leading air cargo carrier, and with

a reach of over 80 domestic Australia destinations and 480

destinations worldwide, you can move your fresh produce to more

customers almost anywhere in the world. Fresh and on time.

For enquiries about moving fresh produce or any of the products

in the Q-GO range please visit qantasfreight.com

Freight_Q-Go_Fresh_ACW_FPC_290x390_FA.indd 1 13/04/15 2:37 PM

A I R C A R G O W E E K

A I R C A R G O W E E K

GLOBAL

MANAGEMENT

WORLD AIRPORTS.COM

FREIGHTERS.COM

FREIGH

FREIGH

Quality and freshness preservedBecause maintaining the quality of your produce matters,

Qantas Freight’s Q-GO Fresh ensures your fresh seafood, meat,

plants and flowers arrive at their destination, with freshness

and quality preserved.

Qantas Freight is Australia’s leading air cargo carrier, and with

a reach of over 80 domestic Australia destinations and 480

destinations worldwide, you can move your fresh produce to more

customers almost anywhere in the world. Fresh and on time.

For enquiries about moving fresh produce or any of the products

in the Q-GO range please visit qantasfreight.com

Freight_Q-Go_Fresh_ACW_FPC_290x390_FA.indd 1 13/04/15 2:37 PM

6

Middle East needs 2,460 aircraft

ChinEsEE-CoMMErCE thriving for AMi

B&h WorLDWiDEExpECts stEADygroWth

invEst to BuiLD thE roMAnEMpirE

tiACA ChiEfupBEAt on futurEof AirfrEight

The weekly newspaper for air cargo professionals

7

8

12

AIRBUS predicts 2,460 new aircraft will be required over the next 20 years in the Middle East.

The French aircraft manufacturer says in the next 20 years (2015-2034) the re-gion will need the passenger and freighter aircraft, it values at $590 billion. Of these, nearly 1,890 will be to meet growth and 570 for fleet replacements.

By 2034, the fleet of passenger and freighter aircraft in the Middle East will al-most treble from nearly 1,100 in 2015, to over 2,950 by 2034.

Airbus says long-haul routes are at the heart of international traffic growth and the region will require 1,570 widebody air-craft to meet demand, but domestic and inter-regional growth is also becoming in-creasingly vital. Both are growing at nearly six per cent.“The impressive rise of the Middle East as the world’s aviation crossroads is in large part due to widebody aircraft,” says Airbus chief operating officer for customers John Leahy. “Regional and domestic routes are also growing. Emerging economies with growing aspirational middle classes will continue to be a strong catalyst for air traffic growth,” Leahy adds.

Etihad Airways announced at the Dubai Air Show from 8-12 November it will take delivery of two Boeing 777 Freighter aircraft.

The decision to exercise the option on the freighters, which were part of the carrier’s $67 billion mixed fleet order for 199 aircraft in 2013, was unveiled on the opening day of the aviation show.

The additional aircraft, valued at $637 mil-lion, are due for delivery next year. They will be part of Etihad Cargo, which already operates three Boeing 777Fs, three Boeing 747 Freight-ers and four Airbus A330 Freighters.

Etihad Cargo serves 11 freighter destina-tions from its Abu Dhabi hub and has bellyhold capacity on Etihad Airways’ fleet of 109 passen-ger aircraft.

Etihad Airways president and chief executive officer, James Hogan says: “Etihad Airways is delighted to exercise options for two freighters that will join our fleet next year, demonstrating our confidence and commitment to our partners at Boeing and to the global freight market.

“As we continue growing our freighter fleet and network, together with our partners we are able to provide a comprehensive, extensive and com-pelling global offering for the benefit of our customers.

“The Boeing 777 Freighter, the world’s lon-gest twin-engine freighter, continues to have

unmatched efficiency which translates into sig-nificant savings for our customers.”

Etihad Cargo is an integral part of Etihad Air-ways’ business worth over $1 billion last year with 568,000 tonnes of freight carried, up 17 per cent on 2013.

state-of-the-art Emirates cargo terminal opened

Emirates SkyCargo offi-cially opened its freighter cargo terminal, Emirates SkyCentral at Al Mak-toum International at

Dubai World Central on Tuesday 10 November.

The opening ceremony was attended by Emirates Airlines and Group chief executive and chairman, His Highness Sheikh Ahmed bin Saeed Al Maktoum (pictured middle) and Emirates SkyCargo senior vice president, Nabil Sultan (pictured left). The airline has been using Al Maktoum as its freighter aircraft base since May 2014. SkyCentral is close to the Jebel Ali Port and Free Zone, and located 77 kilometres from Dubai International Airport.

Sultan says: “The opening of Emirates SkyCentral is an important milestone for us, as it represents our vision for the future. The space it currently occu-pies on the land allocated to us at Dubai South is part of a much bigger area, which can develop over time to increase our cargo handling capacity to achieve our vision of 12 million tonnes annu-

ally by 2050, from the current 2.3 million tonnes.”

Emirates is splitting operations between the two airports, with freighters landing at Al Maktoum and passenger aircraft with bel-lyhold capacity continuing to operate at Dubai International. It says cargo landing at Al Maktoum can be leaving in a passenger air-craft from Dubai International in five hours courtesy of its trucking service between the two airports.

Emirates’ 15 freighters, which con-sists of 13 Boeing 777 Freighters and two Boeing 747-400 Extended Range Freighters are at Al Mak-toum, while the passenger fleet, 90 Airbus’ and 135 Boeings are at Dubai International.

SkyCentral has a one million tonne capacity and includes three temperature-controlled rooms, which can vary the temperature from 25 degrees centigrade to minus 18. It also has three, 340

square metre pharmaceutical stor-age rooms. The cool chain area covers 15,000 square metres.

As part of the opening, Emir-ates SkyCargo gave members of the media a tour of the facilities led by senior vice president for cargo operations worldwide, Hen-rik Ambak. Ambak says Emirates’ cargo volumes have grown from 2,000 tonnes in 1985 to over two million. He says the trucks alone are carrying 1,000 tonnes of cargo between Al Maktoum and Dubai International a day.

During the tour, Allied Trans-port project development manager, Marc Carson showed off the man-agement software for the trucking service. The system uses GPS track-ing to give real-time information as to where the truck is and if there has been a problem. If there is a problem or the driver feels threat-ened, they can use a panic button to alert the police and the truck can be immobilised.

Carson adds there have been no security breaches to date and the police have only been called once when a car drove into the back of one of the trucks.

Etihad to take delivery of two Boeing freighters

Volume: 18 Issue: 45 16 November 2015

NEWSWEEK

Q atar Airways Cargo has launched two new Pharma Express routes from India to Doha, which it says provides a “unique and dedicated service

to the pharmaceutical industry”.These additional routes to the airline’s

network have been added following the success of the Brussels-Basel-Doha Pharma Express route launched in January 2015.

The first new Indian pharma service commenced on 10 November and will operate from Mumbai via Ahmedabad to Doha on Tuesdays and Fridays.

The second Indian route started on 11 November and will run from Hyderabad to Doha on Wednesdays and Saturdays. Both flights will also offer connectivity across Qatar Airways’ extensive global network.

“We are delighted to launch two new pharma express routes from India,” says

Qatar Airways chief officer for cargo, Ulrich Ogiermann. “To date, we are the only air-line offering this dedicated service to the pharmaceutical industry. The Pharma Express flights will cater to the growing pharmaceutical industry in the region.”

“Air cargo standards for handling time and temperature-sensitive commodities such as pharmaceuticals are becoming more stringent, with stricter guidelines

on temperature control. Our thorough understanding of the intricacies involved in safeguarding the integrity of these commodities ensures that Qatar Airways Cargo continues to provide meticulous and uncompromised service standards in line with Good Distribution Practice require-ments,” adds Ogiermann.

The carrier’s QR Pharma service will be provided on both express routes.

The Indian pharma market is the world’s third largest in terms of volume and 13th largest in terms of value, according to a report by Equitymaster.

Qatar Airways Cargo announced plans last month to build a cargo facility to be opened by 2018 at Hamad International Airport. Once complete, it will increase cargo capacity to 4.4 million tonnes per year with the potential for further expan-sion to seven million tonnes in the future.

2 ACW 16 novemBeR 2015

Pharma routes expanded by Qatar Cargo

AIRFREIGHT volumes in Europe have been flat so far in 2015 and unlikely to see any no-ticeable improvement this year, according to Airports Council International (ACI) Europe.

In September, freight volumes increased by 0.2 per cent compared to the same month last year. For the first nine months of 2015, freight is also up by 0.2 per cent on the same period of last year, though three per cent above 2013.

ACI Europe director general, Olivier Jankovec says domestic consumption is improving, particularly in Eurozone economies, but exports remain weak. He says: “Domestic con-sumption is now the main driver for economic growth in Europe, on the back of continued low oil prices … However, shrinking exports remains a risk due to the weakness of emerg-ing economies – meaning freight traffic is unlikely to improve from what has been a flat year so far.”

The largest freight airports saw mixed results in September. Frankfurt Airport (pictured)saw volumes fall by 5.2 per cent to 160,238 tonnes, Paris Charles de Gaulle Airport im-proved by 13.6 per cent to 159,200 tonnes, Amsterdam Airport Schiphol saw a 1.1 per cent rise to 137,636 tonnes and Heathrow Airport saw a fall of 4.4 per cent to 119,091.

BRUSSELS AIRPORT’S cargo volumes continue to grow and in October the Belgian gate-way saw a 7.3 per cent year-on-year (YOY) rise compared to the same month in 2014.

The airport says the full freighter segment showed particularly strong growth of 27.1 per cent in the month, thanks to the arrival of new carriers at Brussels Airport.

The suspension of the activities of Ethiopian Airways is expected to have a negative effect on cargo growth at Brussels in the coming months.

Volumes moved by express services, such as DHL, also saw strong growth of 5.9 per cent, but the only blot on the figures in September was the bellyhold fall of 6.6 per cent.

In the first 10 months of 2015, the airport has handled 409,164 tonnes, a 9.3 per cent YOY rise including 289,735 tonnes via freighters, which is a YOY surge of 13.7 per cent, and bellyhold is the same at 119,000 tonnes, no change from the same period last year.

Brussels sees freighter growth but bellyhold fall

Mixed bag in September for Europe’s hubs

NEWSWEEK

3ACW 16 NOVEMBER 2015

A irbus reeled in orders for its aircraft at the Dubai Air Show which took place from 8-12 November.

International Airlines Group (IAG) firmed up orders for 19 additional wide-body and single aisle aircraft with the French aircraft manufacturer.

This includes two A330-200s, two A330-300s and 15 A320 new engine options (neo). The agreement with IAG and its air-lines takes their cumulative Airbus orders to a total of nearly 470 aircraft.

The two A330-200s will be assigned to Iberia and the two A330-300s will be operated by Aer Lingus. The 15 A320neos will be assigned to carriers within the group.

“Between them, the airlines in IAG operate or have on order our full range of Airbus aircraft. IAG is one of our most prestigious customers and these new repeat orders for A330s

and A320neos confirm again the high added value and superior productivity of our wide-body and single aisle aircraft.” explains Airbus chief operating officer for customers, John Leahy.

Meanwhile, Airbus is proving a hit in Asia, as Vietnamese carrier Vietjet placed an order at the Dubai Air Show for 30 more A321s includ-ing nine A321ceo and 21 A321neo.

The order was signed at the show by Vietjet president and chief executive offer, Nguyen Thi Phuong Thao, and Leahy.

“Today’s order for additional A321s responds to our growth strategy and to the need for additional seat capacity on both domestic and international routes,” explains Nguyen Thi Phuong Thao.

“This additional order from the fast growing airline Vietjet confirms the success of the A320 Family as the preferred choice for airlines in the single aisle market”, says Leahy.

“We are delighted Vietjet once again selected the A321, our largest single aisle and the perfect partner for the airline’s continued impressive growth,” he adds.

Following today’s announcement the airline has placed firm orders with Airbus for a total of 99 A320 Family aircraft.

IAG and Vietjet keep Airbus busy at Dubai Air Show

BOEING announced at the Dubai Air Show from 8-12 No-vember a memorandum of agreement with Dubai South, outlining the company’s intention to establish its Middle East headquarters in the city’s Aviation District.

Speaking at a private signing ceremony, Dubai Aviation City Corporation, High Highness Sheikh Ahmed bin Saeed Al Maktoum, says: “I am confident that the new address will deliver a solid advantage to Boeing as it seeks to ex-pand its footprint in Dubai and in the region.”

The agreement details a framework for Boeing’s opera-tions to be housed at the rebranded Dubai South, previously known as Dubai World Central, which will include Boeing Middle East’s headquarters, a spare parts warehouse, a distribution facility and a maintenance training facility to service the region. The aim is to solidify plans in 2016 and commence operations by the end of 2017.

“To ensure our regional competitiveness, we have taken a strategic decision to establish our regional headquarters in what will become an unrivaled logistics and aviation hub,” says Boeing president and chief executive officer, Dennis Muilenburg.

WorldNewSCARGOLOGIC has been gained ap-proval by the Federal Office of Civil Aviation in Switzerland to perform air-freight security checks at Bern Airport.The Rhenus subsidiary has success-fully undergone an inspection and the firm is now authorised to secure air-freight for onward air transport.

INTERNATIONAL AIRLINES GROUP (IAG) has appointed Alex Cruz as chair-man and chief executive of British Airways from April 2016 when Keith Williams retires after 18 years. Steve Gunning, now chief executive of IAG Cargo, will become chief financial officer at British Airways, replac-ing Nick Swift who is leaving to pursue other opportunities. A new chief executive of IAG Cargo will be made in due course.

75 Boeing’s ordered by JetJET AIRWAYS penned an order for 75 Boeing 737 MAX 8 aircraft at the 2015 Dubai Air Show from 8-12 November, part of the carrier’s fleet replacement strategy and to help it increase efficiency.

This marks the largest order in the Indian airline’s history and supports its aim to have the most modern and environ-mentally progressive fleet.

The order includes conversions of 25 Next-Generation 737s to 737 MAX 8s, as well as options and purchase rights for an additional 50 aircraft.

Jet Airways chairman, Naresh Goyal says: “Incorporat-ing the latest design and technology features, the highly efficient 737 MAX will allow us to drive our operational efficiency and reaffirms our commitment to providing a best-in-class full service travel experience to our guests.

“This order is an endorsement of our confidence in the long-term prospects of the Indian aviation sector, which re-flects the positive forecast for the country’s economy and offers tremendous potential for growth and development.

Jet will be the first Indian carrier to get the 737 MAX.

Middle East HQ for Boeing

NEWSWEEK

4 ACW 16 novemBeR 2015

Cargo mission for Heathrow’s PlattsHEATHROW AIRPORT’S head of cargo Nick Platts says he is “on a mission” to make it Europe’s premier airfreight hub - as the gateway’s pivotal role to the UK economy has again been highlighted.

The gateway has big freight plans and unveiled plans earlier this month to spend £180 million ($273 million) on upgrades.

Export data, provided by UK Customs last week, show £48 billion worth of British goods were exported through Heathrow be-tween August 2014 and July 2015, a 9.7 per cent rise on the previous 12 months, repre-senting 26 per cent of UK exports by value.

Speaking to Air Cargo Week, Platts says the aim is for Heathrow to become the “leading airport for cargo in Europe” and the blueprint is part of a 15-year vision.

Heathrow will invest in its cargo facili-ties, people and processes, and Platts says proposals were developed with freight for-warders, airlines, and the local community.

The airport said earlier this month its in-vestment in cargo will double cargo capacity by 2030, which will “boost the UK’s global export competitiveness by enabling faster, more efficient cargo movements”.

Investments includes proposals for a spe-cialist pharmaceutical storage area, better infrastructure to reduce congestion, a new air-to-air transit fa-cility on the airfield, technology to make Heathrow e-freight ready, a new truck parking facility to cater for 100 vehi-cles and improved cargo processes.

Platt says his initial focus is on stream-lining processes, set to be in operation by the end of 2017. “We are looking at halving our cargo footprint make it a better airport for cargo and will develop our cargo area as this was one of the priorities forwarders asked for. We are also looking at our secu-rity control processes to make sure they are as efficient as possible and want to speed up the process, and have it similar as it is for passengers,” Platts adds.

He explains a new airside facility for air-lines to transfer freight more quickly from aircraft to aircraft, will get the time down from six hours to about two hours. Another key process will be to get truckers out of the cargo ‘horseshow’, making the airport more attractive for truckers while a fast track freight lane will be created.

As for now, Platts says Heathrow’s vol-umes have been a little isolated from the global downturn as it has a varied network.

Bellyhold makes up 95 per cent of vol-umes and Platts says he is focusing on getting wider aircraft, with bigger cargo ca-pacity. A third runway would drive volumes, and boost capacity to three million tonnes. Heathrow handled 1.5 million in 2014.

Platts says: “A third runway would allow us to grow and boost the UK economy, but

even if we do not have one, we will grow UK exports. With 40 extra long-haul routes, it will open up more emerg-ing markets. It makes sense we get them, as we are the centre for UK airfreight.”

The Freight Transport Association (FTA) is lobbying the UK government to back plans for an Enterprise Zone and road improvements at Belfast

International Airport (BIA) to encourage investment in air cargo and prevent it losing freight volumes.

Belfast is the third largest handler of airfreight in the UK outside of London, but rapid growth at Dublin Airport threatens to challenge its long-term future, according to the association.

The FTA has written to MPs calling for devel-opment of an Enterprise Zone to stimulate investment and is also seeking road upgrades to improve access.

The association says significant growth at Dublin Airport could affect BIA’s ability to attract long-haul flights, limiting its bellyhold freight operations, while the sustainability of BIA’s air cargo facility could also be threatened.

FTA’s Northern Ireland manager, Seamus Leheny says: “Millions are being spent on attracting and retaining investment in high-end manufacturing such as pharmaceuticals and air-craft parts, which all rely on airfreight in their supply chain.

“Urgent action is needed to ensure Belfast International Airport is an attractive prospect for investors and has the necessary infrastruc-ture to support efficient airfreight operations.”

BIA is Northern Ireland’s only air cargo facility but operators could switch to Dublin if it becomes a cheaper option, impacting local logistics firms and the wider economy.

Efficiency drive at Agility, as profits upAGILITY has recorded a net profit of 13.7 million Kuwaiti dinar ($45 million) in the third quarter (Q3) of 2015, an increase of five per cent compared to Q3 of 2014.

The logistics company says for the first nine months of 2015, profits were 39 mil-lion dinar, a five per cent rise from same period last year. Revenues were 981.5 mil-lion dinar.

Agility says the overall logistics sector turned in a mixed performance in Q3 and airfreight “softened” in the quarter.

The firm’s chief executive officer, Tarek Sultan says: “The global logistics market re-mains soft as the result of flat or declining trade volumes and weakness in key econo-mies around the world.

“Even so, we have continued to make gains in our core commercial logistics business because we have found ways to

be more efficient, improve productivity, demonstrate financial discipline and make operations more responsive to the market-place and customers’ needs.

“Companies in the Agility Infrastructure group are also looking to be more efficient while, at the same time, finding excellent opportunities in emerging markets.”

Back Belfast or lose air cargo volumes

Tabloid page unbled.indd 1 04/11/2015 14:59

ACW 16 NOVEMBER 2015 6

Aer Lingus is expanding its services to the US, carrying high value pharma-ceuticals and other medical products from Europe to the Americas.

The Irish carrier’s director of cargo, Michael Sanfey tells Air Cargo Week (ACW) that the carrier increased services to San Francisco (US) to daily and it has further plans for the US.

Sanfey tells ACW: “2015 is shaping to be a good year for Aer Lingus Cargo, all our key mar-kets are performing well.”

“This year our San Francisco service has ramped up to 7 days a week from the start of summer and filling that has been a key challenge for us. Sales both ways have been positive and contributed to 2015 being a strong year.”

In 2016, Aer Lingus will be increasing US ser-vices with five times a week flights from Dublin to Los Angeles International Airport (pic-

tured) from 4 May, daily flights to New York’s Newark Liberty International Airport from 1 September and Bradley International Airport in Hartford, Connecticut. Sanfey comments: “Next year will be a very exciting one for us.”

These services are in addition to Dublin flights to Boston, Chicago, New York, Orlando, San Francisco, Washington and Toronto (Canada) as well as Shannon to New York and Boston.

Ireland is geographically well positioned for

trans-Atlantic flights and carries large quanti-ties of pharmaceuticals to the Americas.

Sanfey says: “Ireland is well positioned eco-nomically and physically to support a high quality air cargo industry. Ireland is home to nine of the top 10 world’s pharmaceutical companies.”

“It is the eight largest producer of pharma-ceuticals in the world hosting 55 billion euros [$59.7 billion] in annual exports pharma, bio

and chemistry produce.“120 pharmaceutical companies operate in

Ireland and there are 33 FDA [Food and Drug Administration] approved pharma & biopharma plants.”

He says because of this, pharmaceuticals and medical products make up a large quantity of Aer Lingus’ cargo. Sanfey says: “These have been resilient markets and the customers demand for high quality service has driven the development of Aer Lingus Cargo to meet those needs.”

In September, IAG Group, the owner of Brit-ish Airways and Iberia took over Aer Lingus. Sanfey says it presents great opportunities for Aer Lingus. He tells ACW: “The acquisition by IAG offers a secure and exciting future for Aer Lingus Cargo. We look forward to sharing the best of both sides in the future and the expan-sion in 2016 is the first positive proof of the benefits of being part of the larger group.”

Aer Lingus looking across the Atlantic for businessUK AND IRELAND

AIR MENZIES INTERNATIONAL (AMI) says business has been holding up well through-out 2015 despite the strength of the pound and the Chinese economy slowing.

AMI vice president for Europe, Sharon Wright (pictured) tells Air Cargo Week (ACW) that UK business has seen modest improve-ments over 2014 though freight as a whole has noticed the effect of the strong pound.

She notes: “We still have several bright spots in the UK, such as our growing cargo and express imports businesses. Traffic from China has cooled; however, e-commerce from China, which is a relative-ly new area for us, is getting stronger all the time.” One produce AMI is handling for Chinese consumers is baby milk powder.

“Our express exports business is per-forming more strongly in the UK, helped by recent product enhancements. AMI Ex-press is increasingly acting as a gateway for destinations throughout northern Europe,” Wright says.

She says the modal shift to seafreight is a continuing challenge but AMI is looking at business areas such as e-commerce. Wright says: “The most exciting opportunity for air-freight is e-commerce; online cross-border

purchasing is seeing explosive growth glob-ally, but particularly both in and out of the USA, China, and the UK.”

Companies dealing in e-commerce have been trying to reduce costs with mea-sures such as moving fulfillment centres closer to consumers, handling larger ship-ments. Wright says this means a shift from smaller consignments from integra-tors to larger shipments from forwarders. AMI has appointed a person for expanding e-commerce.

Wright tells ACW: “We know that greater involvement in this sector will require in-vestment in IT, and this is an area in which we are quite experienced and have been very innovative and successful.”

AMI has been working on its Quote & Book portal so customer agents can obtain instant quotes for airfreight and ancillary services. Wright says Quote & Book is aimed at shipments up to 300 kilogrammes while larger shipments are being dealt by AMI’s Spot Rate Team who are handling up to 9,000 shipments a month.Wright says: “Quotes can be stored and then recalled and converted to a booking later, without re-entering any details, thus saving our customer time and money.”“The new site goes much further than the one it replaced, and is already giving a mas-sive boost to our UK business. Later in 2015, we will be add-ing the next key element – airport-to-door (DDU) rates.”

Chinese e-commerce thriving for AMI

M anchester Airport Group (MAG), the operator of East Midlands Airport, Stansted Airport, Man-chester Airport and Bournemouth Airport has seen total volumes increase by 3.7 per cent in a year to 667,133 tonnes.

On a rolling 12 month basis up to this September. Manchester saw the largest increase, up 8.3 per cent to 102,048 tonnes while East Midlands, rose by 3.6 per cent to 320,111 tonnes. Stansted has seen a rise of 2.1 per cent to 235,174 tonnes while Bour-nemouth has seen a dip of 0.4 per cent to 9,800 tonnes.

MAG business development manager for cargo and general avi-ation, Conan Busby tells Air Cargo Week (ACW): “We have been encouraged by performance through 2015. MAG’s combined vol-umes across all four airports have grown from 640,000 tonnes to more than 660,000 tonnes, driven by a strong growth by existing customers, and recent successes we’ve seen across the Group.”

Highlights, Busby tells ACW include Lufthansa Cargo doubling freighter capacity with Los Angeles (US) to Manchester with Boe-ing 777 Freighter flights and increasing bellyhold capacity with new carriers and aircraft upgrades.

Manchester has been chosen as the first UK – China service not

operated from London. Hainan Airlines will fly from Beijing to Manchester four times a week from June 2016, which Busby says demonstrates: “The growing importance of the North of England.”

Manchester is spending £1 billion ($1.5 billion) on its Transfor-mation Programme as well as the Airport City project, including a £130 million ‘China Cluster’. Busby says: “These developments are key to expansion of Manchester and further enhance the UK’s

connectivity with one of its most important trading partners.”Stansted, Busby says, has seen strong growth in perishable

goods and new carriers. He tells ACW: “We’ve welcomed new ser-vices by Qatar Airways, China Southern and Turkish Airlines. London Stansted is also looking forward to welcoming Cargolog-icAir to its runway in the coming weeks.”

As for East Midlands, Busby says: “East Midlands has seen sub-stantial volume growth through the year driven by the express business and through a really strong year of ad hoc charters.” Among the expansion projects, DHL Aviation is expanding at East Midlands as well as a DHL Express road hub at Manchester.

Busby adds.: “We hope 2016 will be a year of further growth, driven by all key sectors; express, scheduled, bellyhold and ad hoc traffic. We will be doing everything possible to capitalise on the increasing demand for UK air services by making use of the substantial available capacity MAG’s airports can offer.”

He says perishables have been important while fashion, oil and gas and express have been strong. Busby says: “Pharmaceuticals is one area we wish to further develop which will be done with the valued input of our customers to ensure the right facilities are developed at the right time.”

MAG happy with 2015 so far but targeting more gains

7ACW 16 NOVEMbER 2015

UK AND IRELAND

B&H WORLDWIDE has seen a noticeable upturn in 2015, something it expects to continue in 2016.

The firm’s regional director, Doug Coull (pictured) tells Air Cargo Week (ACW): “As a specialist aerospace logistics operator we have seen a noticeable upturn in both revenue and shipment numbers during the course of 2015.”

“There are also definite signs from across our customer base that there is an increase in the number of projects they are working on plus those which have previously been on hold are now starting to be re-activated.

“We are expecting much the same for 2016 – a steady improvement.”

Coull says its location in the UK is good for working in the aerospace industry. “The UK is the ideal location for this industry as there are fantastic links to all the key aerospace hubs globally and the country has long been an established supplier base to all the major players in the industry.

“The scope of destinations served is critical for our busi-ness and that’s why the UK is so well suited to us.”

He says aerospace is a growing sector. Coull tells ACW: “This is very much a growing sector so there is both oppor-tunity and potential.”

“The opportunity is for us to show our market expertise and knowledge by providing specialist services like 24/7 Critical Logistics, Customs Compliance, DG advice and ac-cess to our in-house developed specialist IT system.”

“The challenge is that it is a highly competitive market with lots of competition seeking to enter it.”

Coull says that B&H is working on further improving its services across the business. “During 2015 we have heavily invested in our Customer Solutions team whose role is to drive expansion through their specialist knowledge while re-maining committed to the aerospace sector.”

He continues: “They [staff] receive full technical training in areas such as aviation se-curity and DG handling but there is also intensive on-the-job training in all aspects of aerospace logistics.”

B&H expects steady growth

ACW 16 november 2015 8

C ompetition in the Italian airfreight market is high and the general air cargo market turbulence is affecting volumes at BCUBE air cargo.

However, the operator’s gen-eral manager, Mauro Grisafi says airfreight is performing well, despite the challenges: “Com-petition is high and the general crisis obviously has affected the growth of volumes, but we are living a profitable and productive phase of our business. BCUBE air cargo is working on specialisation of its core business and some challenging projects (like pharma developed and launched during 2015) are very valuable drivers for the future growth.”

The handler operates at Milan Malpensa Airport. Milan Linate Airport, Venice Airport and Rome Fiumicino Airport, and Grisafi tells Air Cargo Week Rome and Malpensa are doing the best, even though the markets are very dif-

ferent, while Venice is a growing market to be “better understood”.

BCUBE air cargo is working on specialist cargo types and developing its infrastructure, equipment, and training personnel.

In July, the handler became the first indepen-dent cargo handler to gain the International Air Transport Association’s Center of Excellence for Independent Validators (CEIV) Pharmaceu-tical Certification.

Grisafi says: “If you have the best restaurant of your neighborhood, it’s only a question of time to have it fully booked...the point is you need to keep the quality standards you promised. The CEIV is a very challenging starting point for pharmaceutical shipment by air and we’re living the positive effects of that, but it’s still far from becoming a mandatory set of rules.”

Grisafi says BCUBE continuously reviews pro-cesses with the goal of reducing the number of

phases and people working on the shipment as customer’s want more people highly qualified, more automation, and extension of the supply chain looking beyond the airport.

Grisafi says it will aim to grow volumes through specialisation, quality and speed. “The future of the cargo ground handler is strictly linked to a changing role: we are no longer simple ‘guardians of the door’ developing rules, increasing market expectations, techni-cal needs coming from shippers or consumers (think pharma or perishable) are demanding a hyper-qualified handling operator at the air-port. Who will remain at the simple level of the fares competition will risk being out of the mar-ket in a short time,” Grisafi enthuses.

BCUBE is facing many challenges and is work-ing to become even more reliable and have tailor made services for customers, Grisafi explains: “There a complex situation to manage when a ground handler like us wants to bring innova-tion within the operational processes (such as getting rid of paper from activities) and face huge walls daily in getting customers and part-

ners involved in all this.”Investing in specialised facilities is the blue-

print at BCUBE to achieve further success. “We are sure in the future we will have an extension of special cargo procedures similar to what is needed for pharmaceuticals,” Grisafi adds.

Specialist cargo types is BCUBE’s Italian jobITALY

Review processes

ROME FIUMICINO AIRPORT (FCO) is looking to invest in a specialist air cargo markets such as pharmaceuticals, the operator Rome Airport Company’s head of cargo de-velopment, Raffaele Pasquini (pictured) tells Air Cargo Week.

He says this will be the core of the airport’s strategy moving forward to grow tonnage: “We look forward to support a strong spe-cialisation in specific air cargo markets to differentiate FCO as an airport offering high value added services.”

Rome saw growth of one per cent in 2014 compared to 2013, with volumes reaching 150,000 tonnes. It is the second busiest cargo hub in Italy after Milan Malpensa Air-port. This year, from January to September it has handled 107,012 tonnes, a one per cent rise on the same nine months last year.

Pasquini says in 2015, the Middle East is performing well, for both point-to-point and further afield destinations.

Rome handles a range of cargo with the main exports fashion, fresh food (such as

cheese), fruit and veg-etables, pharma,

furniture, marble, machinery parts, a e r o n a u t i c a l equipment, auto-motive parts, and fabrics. Imports

are food (mainly

fish), fresh flowers, tropical fish, textiles, garments, electronic equipment, pharma, and automotive parts.

Pasquini says cargo volumes at FCO have always been driven by bellyhold, but adds: “Our goal is to have FCO growing in the freight segment too, making Rome the real hub for central and southern Italy.

“To do so, we believe it is essential to work on smooth airport procedures and pro-cesses, as well as work with airlines and all involved stakeholders to address the cargo volumes that now goes via trucks to airports in Europe.”Pasquini says he harbours dreams of at-tracting freighters, but growth will continue through bellyhold traffic. The airport is plan-ning on expanding its so-called “Cargo City” development and developing external areas close to it such as cold storage areas. FCO has just signed an agreement with DHL, to build a 7,000 square metre building with a warehouse and offices. FCO wants to create an express courier hub besides Cargo City, attracting other express couriers.

Invest to build the Roman empire

M ilan Malpensa Airport is one of the most thriving airfreight gateways in Europe, and this year it has seen significant growth.

From January to September volumes grew 9.1 per cent, above the nine per cent uplift in 2014.

Operator the SEA Group, tells Air Cargo Week the performance is impressive, as the Italian air cargo market has been weak in 2015. The airport expects to reach 490,000 tonnes by the end of the year, which would be a record, breaking the 470,000 tonnes achieved in the boom of 2007.

The SEA Group explains: “Export flows is boosting the growth, but also import is constantly recovering thanks to the increase in domestic demand the improvements in manufacturing activity and, for a small part, to EXPO 2015. The positive trend of cargo is definitely an important signal of the economic recovery that is in place in Italy in the last few months.”

This year, the gateway has increased capacity in South America through a flight to Bogota (Colombia) operated by Atlas Air on behalf of Etihad Airways and China with two new direct flights to Zhengzhou operated by Cargolux Italia.

The main markets for exports from are the US and the Far East including Japan, China, South Korea, and Hong Kong.

Export flows are fashion like clothes and shoes, luxury sport cars, food and wine, mechanics, design products, and spare parts. Imports are mainly electronics (smartphones), semi-finished products (garments, tissues), and fresh food (fish and vegetables).

Milan Malpensa expects pharmaceutical cargo to develop thanks to the International Air Transport Association’s Center of Excellence for Independent Validators (CEIV) Pharmaceutical Certification being achieved by two cargo handlers – the ALHA Group and BCUBE air cargo.

The SEA Group is not resting on its laurels and aiming to grow volumes by developing infrastructure and joint initiatives with the Malpensa air cargo business community and public authori-ties like an IT system it has introduced for freight operators.

Milan Malpensa is looking to further develop express business and FedEx will soon start construction on a new warehouse set to be completed by mid 2016.

The cornerstone of growth will be infrastructure and Malpensa Cargo City will double its capacity from 500,000 tonnes to one

million tonnes per year. Along with the FedEx expansion, a sec-ond warehouse will be ready for 2017 - rented to cargo handlers Worldwide Flight Services and Italian handler Beta Trans. Expansion of the aircraft apron has been completed with seven new stands for widebody aircraft or 13 for narrowbody aircraft.

Improvements have also been made in the last months in secu-rity (wide truck manoeuvring areas with access control and video surveillance). An additional area where the Malpensa Cargo City apron and first line warehouses could be further expanded, and available within two to three years.

The airport is encouraging freighter aircraft and says in 2016 charges for all-cargo operators will remain the same as in 2015.

SEA Group expects growth to continue: “In the next future we expect a deep improvement by the courier (DHL and FedEx). The leading freighter carriers operating (Cargolux Italia, AirBridge-Cargo Airlines, Qatar Airways Cargo, Saudia Cargo, Nippon Cargo Airlines) are putting more capacity and we expect in two years the first effects of Alitalia-Etihad strategic partnership.

“The capacity from long-haul passengers flights is increasing, a new service to Santiago de Chile (co-terminalised with Sao Paulo) operated by LATAM Airlines started on 5 November 2015.”

Airfreight is all well in Milan and the future is looking bright.

Freighters targeted

Malpensa booming despite turbulence in the Italian market

9ACW 16 NOVEMbER 2015

ITALY

CARGOLUX ITALIA and Nippon Cargo Airlines (NCA) last month entered into a partnership agreement for codeshare cargo flights.

They will operate services from Milan Malpensa Airport in Italy, to Kansai International Airport, in Japan, and from Malpensa to Tokyo’s Narita International Airport. All are subject to approvals from the aviation authorities.

The cooperation between Cargolux Italia and NCA rep-resents an improved offering on the routes between Italy and Japan that also includes two weekly flights from Milan Malpensa to Osaka and four weekly flights from Milan Linate Airport to Narita, in addition to three weekly Cargolux flights from Luxembourg Airport to Komatsu Airport.

All flights benefit from connections to the Cargolux truck-ing networks in Europe and Japan, offering shippers several daily services between major European industrial centres and Japan. The agreement significantly boosts Cargolux’s presence in the Japanese market that has long played an important role in the Group’s Far Eastern network.

Cargolux Italia says the flights introduce another “fast and reliable freight lane for shippers” in the Tokyo area to Eu-rope, as well as opening up a new destination in Japan for European shippers.

Partnership for cargo flights

Pharma potential

ACW 16 NOVEMBER 2015 10

WORLD ROUTESAsia the region of route development for Euro carriers

Global networks the focusSOME of the world’s biggest cargo carriers have launched new freighter routes over the last few weeks and it seems there is a firm focus on a expanding networks to all corners of the globe.

Turkish Cargo has started weekly freighter services to six new destinations, London, New York, Atlanta (both US), Amsterdam, Kinshasa and Doha.

The airline started US services to Atlanta Hartsfield Jackson International Airport on 25 October and John F. Kennedy International Airport on 29 October, both using an Airbus A330 Freighter.

On 27 October, Turkish Cargo started flying to Kinsha-sa International Airport, also using an A330F and on 29 October it started services to Stansted Airport and Am-sterdam Airport Schiphol, using an A310 Freighter.

Turkish Cargo also started services to Hamad Interna-tional Airport on 7 November. All services will be operated once a week.

The Doha service flies from Istanbul to Noi Bai Inter-national Airport in Hanoi (Vietnam) before departing for Delhi’s Indira Gandhi International Airport.

European carriers have upped their coverage in Asia with both Lufthansa Cargo and Cargolux both spreading their wings in the continent.

Vietnam is to become a permanent fixture of the Lufthansa Cargo network after the airline added a

freighter service to and from Ho Chi Minh City.Following a successful test phase over the summer months, the

cargo carrier will be flying a Boeing 777 Freighter weekly to Ho Chi Minh City.

The freighter will be departing every Thursday from Frankfurt, heading for Ho Chi Minh City via Mumbai in India, and will finally terminate at Hong Kong International Airport.

Lufthansa Cargo’s vice president in Asia Pacific, Frank Naeve, says he is pleased about the stable demand coming from Vietnam: “We are proud to have built up excellent relationships with our clients in Vietnam, which we will now be further cultivating with the fixed freighter connection.

“Using our flexible network management we will be able to effectively meet demand. We are constantly working on making our network in the Asia Pacific region even more attractive for our customers.”

Cargolux Italia has started a second weekly flight from Milan (Italy) to Zhengzhou (China), leaving on Sunday and travelling via Novosibirsk (Russia).

Flight number C8 8777 leaves Milan Malpensa Airport on Sunday at 11.50h and is the second weekend flight to Zhengzhou. It is also the first Cargolux service to Russia.

Cargolux says it is the only direct connection between Milan and Zhengzhou, and that commodities on the route include Ital-ian fashion, machinery and mechanical spare parts.

Cargolux Italia chief executive officer and accountable man-ager, Pierandrea Galli says: “With our second service from Milan, Cargolux Italia and Cargolux Group can significantly boost its presence in both markets. It also underlines Cargolux Italia sta-

tus as the main all-cargo carrier at Malpensa and main supporter of our Italian customers.”

Chinese carrier China Southern is targeting the US and now operates five cargo routes to North America. The inaugural flight of a new freighter service to the US took off with 96 tonnes of cargo on 22 October. The flight, operated with a Boeing 777-200 Freighter is on a Guangzhou-Anchorage-Chicago-Tianjin-Guang-zhou itinerary and departs on Thursdays and Sundays.

The Guangzhou to Los Angeles route has been increased to four times per week. The carrier now flies from Shanghai Pudong to Los Angeles and from Pudong to Chicago six times a week. The carrier offers now offers 2,000 tonnes of China to the US capacity.

ASTRAL AVIATION has revised its East African freight schedule due to a rise in its intra-African load factor, which has seen it increase frequencies from its Nairobi hub.

The firm’s new enhanced freighter schedule started on 12 October – and marks a considerable increase in its frequencies. Astral Aviation commercial director, Charles Simiyu says: “We have experienced high load factors on our key routes notably Juba, Mogadishu and Mwanza which has benefited from additional frequencies.”

Following the closure of Juba International Airport on weekends, Astral will now operate three weekly frequencies from Nairobi to Juba, to cater for the increase in cargoes.

Nairobi to Mogadishu in Somalia receives an additional frequency thus making it twice-weekly to cater for the in-crease in peace-keeping cargoes.

From its Mogadishu hub, Astral will also be able to pro-vide an on-forwarding service to Hargeisa and Djibouti. Due to mining volumes to Tanzania, Astral has increased its frequency to thrice-weekly, on its Nairobi to Mwanza route. On the charter front, Astral says it has experienced an increase in relief flights from its Nairobi hub to Yemen.

East Africa changesfor Astral

Freight Forwarders

11ACW 16 NOVEMBER 2015

TRADEFINDER

Turkey

Airlines

Freight Forwarders

USA

Iraq

Freight Forwarders

Hong Kong

Freight Forwarders Industry Events

Jamaica

USA

Spain

Associations

Worldwide Germany United Arab Emirates

Charter Brokers

China

United Arab Emirates

NEWSWEEK

2 ACW 16 NOVEMBER 2015

E-commerce presents the biggest opportunity for the air cargo industry to exploit and boost volumes, according to International Air Cargo Association (TIACA) secretary general Doug Brittin (pictured).

Speaking to Air Cargo Week at the Air Cargo Americas confer-ence and exhibition in Miami from 4-6 November, Brittin says continued growth of the e-commerce sector particularly with B2C trade such as through Amazon and eBay is “very healthy for the industry”.

He explains e-commerce is helping bridge the fall in staple air-freight goods, while there is also positive news in other markets too. “Some of the traditional movements may not be as robust as

they were, but that business (e-commerce) is growing and booming. We also see solid

growth in pharmaceuticals and cool chain too, so there is reason for good optimism,” Brittin says.

The South American region is prov-ing a challenge for TIACA members,

Brittin notes, where the economic con-ditions in Brazil are having an impact on

airfreight operators. “The volumes are down there significantly just because of the inbalance and the valuation of the currency, and is a challenge for carriers because the products are not flow-ing,” Brittin says, but he adds other markets such as North America especially volumes from East to West are buoyant.

Brittin also welcomes the Trans-Pacific Partnership trade agree-ment: “Anytime there is a healthy trade agreement, as with trade agreements in the past, and anything that will help facilitate trade back and forth is always a benefit to our segment of the industry, as goods will move more freely.”

As for US Open Skies agreements, where American Airlines, Delta Air Lines and United Airlines want Qatar Airways, Emir-ates Airline and Etihad Airways flights reigned in, Brittin feels agreements must be to “everyone’s benefit”.

“It is important we have the ability for carriers to move freely, but there are challenges and different parts of the industry feels it in different ways. We are hoping it will work out to the benefit and health for the industry and not benefit some more than others,” Brittin explains.

See next week for an interview with TIACA chairman, Sanjiv Edward.

ACS aids world record

AIR CHARTER SERVICE (ACS) has been called upon to help complete ‘Cape to Cape 2.0’, a driving world record at-tempt from the southernmost point in South Africa to the northernmost point in Norway.

ACS was asked to assist in the adventure as travelling through Syria was out of the question. The team, driving a Volkswagen Touareg from Cape Agulhas to Nordkapp, was given World Record dispensation to fly the car and them-selves from Jordan to Turkey via airports in Amman and Adana.

ACS’s commercial director, Justin Lancaster explains: “We chartered the rear-loading Antonov 74 in order for them to drive to 4×4 straight up the ramp in Amman and drive straight off the other end in Adana. They were then back on their way minutes later. And we’re pleased to say that they completed the whole journey in nine days, four hours, nine minutes and 27 seconds – setting a new World Record.”

ACI: global volumes up 1.4%

AIRFREIGHT volumes inched up by more than one per cent in September, led by the North American market, according to the Airports Council International (ACI).

ACI says: “Markets remain relatively weak as compared to passenger traffic. An emerging market slowdown led by China has resulted in more subdued growth in airfreight volumes across the world’s markets.

“Global airfreight volumes increased by 1.4 per cent year-over-year for the month of September. On a year-to-date basis, volumes rose by 2.3 per cent across the globe for the first three quarters of 2015.”

ACI says the Asia-Pacific region as a whole experienced a slight gain of 0.5 per cent in airfreight traffic in September and North America grew by 4.4 per cent.

TIACA chief upbeat on future of airfreight industry

CEVA Holdings has reduced its losses in the third quarter (Q3) to 78 million euros ($83.7 million) despite revenue falling to 1.7 billion euros.

The three month loss is down from 98 million euros despite revenue falling from two billion euros in Q3 of 2014 to 1.7 billion euros this year. In the first nine months of 2015, reve-nue fell to 5.2 billion euros from 5.8 billion euros 2014. Losses in the first nine months of 2015 reduced to 182 million euros from 290 million euros in 2014.

CEVA chief executive officer, Xavier Urbain says CEVA’s new operating model continues to pay off and Q3 was robust and it continues to defend its position in a “soft market”.

Freight management revenue, which includes airfreight, saw revenue fall to 822 million euros in Q3 from 935 million euros in 2014. In the first nine months of 2015, freight revenue fell to 2.5 billion euros from under 2.7 billion euros in 2014.

Losses reduced in Q3 by CEVA