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The weekly newspaper for air cargo professionals No. 1,087

29 June 2020

Tireless commitment from the team

HORROR AT TORONTO

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INSIDE MULTIMODAL 2020: ON THE MOVE

AS a result of the directions provided by both Public Health England and the UK government, the organisers of Multimodal ... PAGE 2

CHAPMAN FREEBORN ACQUIRES ARCUS AIR

consignment of around 500 puppies that landed at Pearson International Airport included a horrific total of thirty-eight found dead on arrival. The Canadian Food Inspection Agency (CFIA) said: “In the case of the shipment of puppies which arrived at Pearson Airport on June 13, all live puppies were released to the importers. “Given the condition of some of the puppies upon arrival, CFIA staff recommended to the individual importers coming to collect their shipments that these puppies be immediately brought to a local veterinarian for appropriate care. “The CFIA is currently investigating the circumstances surrounding this incident. As such, it cannot provide any further details until the investigation is complete.” In a Facebook post, Ukraine International Airlines apologised for the “tragic loss of animal life” on one of its flights. “UIA is working with authorities to determine what happened and to make any changes necessary to prevent such a situation from happening again.” Canada’s National Post reported: “Ukraine Airlines flight PS 1241 landed at Pearson International Airport on June 13, carrying 500 puppies in the cargo hold that

ON June 18, 2020, Chapman Freeborn, a global aircraft charter specialist and company of the Avia Solutions Group (ASG), signed ... PAGE 3

were meant to be sold in the Toronto area, according to CIFA statement. There were around 500 [puppies] in total, 200 of which were French bulldogs, that were taken for transporMature French bulldog tation on the Borispol-Toronto flight, including 300 cages, which meant some cages contained two dogs,” the media outlet said. “The temperature at the time of loading was over 30oC and the puppies were visibly suffering according to eyewitness accounts, with multiple crates being placed on top of each other, and some even being encased in

plastic.” The publication stated that a handler loading the aircraft in Ukraine said that many of the dogs were put into cages without the ability to even move, and without air circulation. “The pallets were then loaded into the lower compartment of the aircraft, where air circulates very poorly. “A video shared by a baggage handler at the time of loading shows carts with a large pile of crates containing live animals stacked high. “This would be in direct violation of the International Air Transport Association guidelines which state that each animal should have enough space to turn around while standing, to sit and lie in a natural position,” said the National Post. The CIFA concluded: “In general, all dogs imported into Canada must be healthy and fit to travel with no visible signs of illness when leaving their country of origin. They must have the necessary vaccines and be accompanied by the necessary export documentation which are dependent on their age and the purpose of import. CFIA veterinarians are available to provide inspection services at the Pearson Airport when requested by the CBSA.”

JOHN MENZIES IN COVID-19 TRADING HIT

JOHN Menzies, the global aviation services business, has provided an update regarding current trading and its financing ... PAGE 5

CARGOLUX AND UNILODE PARTNERSHIP

CARGOLUX Airlines International and Unilode Aviation Solutions are proud to announce they have further extended their ... PAGE 6

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Air cargo operations at Frankfurt Ai

SOME 3.5 billion respiratory protection masks and other protective equipment in 22,000 shipments plus medical equipment and pharmaceuticals as well as urgently required industrial goods, post, packages and food for the German and European markets. “That sums up air cargo in Frankfurt since the worldwide lockdown due to the SARS-COVID-19 pandemic in mid-March,” says Harald Gloy, chairman of the board of Air Cargo Community Frankfurt and board member of Lufthansa Cargo AG. While almost all passenger aircraft have been grounded for around ten weeks, cargo planes are in constant use – and particularly from Frankfurt Airport, Europe’s leading air cargo hub. The airport enjoys a central position in Europe with good motorway links and also has Europe’s largest handling capacity for perishables and chilled goods, a cutting edge animal station, a wide variety of forwarding agents and authorities on site as well as industry and trade customers in the surrounding area – all these are reasons cited by Gloy for the airport’s prominence.

Systemic relevance of air cargo

“When supply chains break down in times of crisis, only air cargo has the ability to link industry and trade on intercontinental markets within hours. Air cargo is therefore of systemic relevance to Germany as an exporting country, but also for Europe as a whole,” said Gloy. “Demand for cargo capacities remains high. With the slump in passenger traffic, the option for loading additional cargo on these aircraft has disappeared. That’s why around 50 airlines in Frankfurt are now using passenger aircraft just for cargo transport,” explains Michael Müller, board member of the Air Cargo Community and executive director labour relations and member of the executive board of Fraport. And this is happening although the so-called “Preighter” planes are more difficult to load and unload due to their limited space and narrow doors.

Different cargo structures

“Another challenge is the 30% increase in the number of packages – on peak days fivefold – and the number of recipients in relation to tonnage (by weight),” says Patrik Tschirch, managing director of the cargo handling company LUG and also a board member of the Community. As a result of the shift towards an enormous import volume and the almost complete elimination of transfer cargo, flexible co-operation between the partners involved is essential. “Within

ACW 29 JUNE 2020

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t Airport are running at full speed the Community, we have spent years working on digitised and automated processes – also in collaboration with the authorities and forwarding agents. But right now, it is becoming evident how indispensable digitisation is. Customs officials will be aware of this if they know in advance which consignment is critical, as will HGV drivers, who will be given a pick-up time and will not have to wait for hours at the airport or rest area. “As a Community, we will work even harder to push this forward together with the authorities to make Frankfurt even more competitive as a location,” says Tschirch.

A tough business

Even if air cargo is currently the turbo powering the airline business, only half of normal transport capacity is available, explains Gloy. The other half, the lower deck of passenger

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planes, is grounded. The enormous demand for protective equipment is only a short-term effect, according to Gloy. Since last year, air cargo has been suffering from a sharp drop in global production and in demand for machine and vehicle parts and pharmaceutical products. In particular, exports from Germany have fallen by 20% since March. That means that the most crucial air cargo is missing. Flight timetables and crew deployment has to be constantly adapted to changing restrictions and regulations on a global basis. “We are therefore a long way from normal flight operations,” says Gloy. Air Cargo Community Frankfurt is an association of over 50 airlines, forwarding agents, ground handling companies, airport operators and service providers. Together, they are committed to air cargo at Frankfurt airport and to the region.

ACW 29 JUNE 2020

DAVIES TURNER: 150 NOT OUT AS PARTY POSTPONED THE UK’s largest independently owned freight forwarding and logistics group was due to celebrate its 150th anniversary with a birthday party for all the company’s 900 staff from across the UK. Davies Turner has certainly seen plenty of ups and downs since its creation in 1870. However, as COVID-19 grips the world, the pandemic has done nothing to dent the attitude of the company, which is charged with managing many clients’ supply chains. Davies Turner has interests in all transport sectors and says its departments offering multimodal services for the storage and international distribution of freight are all working hard to keep supply chains running, despite the global cargo capacity crunches in both air and ocean freight. Davies Turner chairman, Philip Stephenson, explains his company’s position thus: “Innovative thinking has been central to Davies Turner’s 150-year existence. In the face of the disruption caused by COVID-19, and given the fact that the regional trade restrictions and freight capacity are under such pressure, now is the time for that innovative thinking to continue.”

Multimodal 2020: On the move to March 2021

AS a result of the directions provided by both Public Health England and the UK government, the organisers of Multimodal have been obliged to reschedule the UK, Ireland, and Northern Europe’s premier freight transport, logistics and supply chain management event, until 23-25 March, 2021.

Aero Africa and Cosmo Airfreight Consolidators join forces for Korean trade

ero Africa join forces with Cosmo Air, Korean’s largest air cargo consolidator, aiming to provide neutral air cargo solutions and scheduled consolidation services to the African and South Korean logistics community. By this initiative, both Cosmo and Aero Africa, are adding valuable services supporting the rising trade and investment links between Africa and Asia. “The Aero Africa gateway programme delivers end-to-end air cargo solutions and neutral scheduled consolidations from key markets, via strategic gateways to more than 70 hard-to-reach destinations across Africa. “Aside from our own service centres in Africa, China and EU, we are connected with airlines, CSAGSAs and neutral consolidators worldwide, each one of these representing and promoting Aero Africa’s solutions in their local markets,“ said Jade Da Costa CCO Aero Africa. Sean T Ahn, Director Global operation at Cosmo added: “Cosmo is extremely delighted in partnering with Aero Africa. Through this exciting initiative, we will be able to offer second-to-none air cargo consolidation in both continents, lowering the logistical barrier and keeping a finger on the pulse of Africa consolidation.”

ACW 29 JUNE 2020

DDC in second healthcare cargo delivery deal with DSV Canada D

rone Delivery Canada (DDC) with the assistance of its sales agent Air Canada, has entered into a commercial agreement with DSV Air & Sea Inc. Canada (DSV), the Canadian arm of the global transport and logistics company DSV Panalpina. Yhe project will deploy DDC’s drone delivery platform, with the intent for DSV to deliver healthcare-related cargo from DSV’s warehouse in Milton, Ontario to DSV customers locally. DDC will deploy its Sparrow cargo drone, with the cargo drop capability previously announced June 10. The term of the deal is three months, full payment will be made upfront by DSV. At the destination, the Sparrow will hover at a lowered altitude, drop untethered cargo in a designated area shared by multiple DSV transactional customers, then return to DSV’s DroneSpot. The route is approximately 3.5km. Flights

will be remotely monitored by DDC from its Operations Control Centre located in Vaughan, Ontario. DDC will commence implementation of the solution in Q3 2020 and expects to begin providing drone delivery services under the Agreement in the same quarter, with the potential of more additional routes being added in 2020. All operations will be conducted in accordance with the Canadian Aviation Regulations and Transport Canada flight authorisations. “We are currently flying hundreds of successful flights per month at DSV for their first route, and we are pleased to announce a second paid route with DSV. “DSV is a global leader in the logistics space and a perfect fit as a scalable customer for us,” said Michael Zahra, president and CEO of DDC. “DSV will use our proven Sparrow drone with the new cargo drop functionality, pat-

ented FLYTETM system, and commercial operations centre. It’s very fulfilling to DDC to provide DSV a solution to help deliver important healthcare related cargo given the current situation.” Martin Roos, managing director of DSV Air & Sea Canada says: “During this critical time, we have helped many of our clients find new ways of delivering cargo. In order to keep goods flowing through the supply chain, innovative solutions are key to embrace. Drone delivery provides an answer to many of the challenges we’ve seen during the current situation. Our partnership with DDC and Air Canada Cargo provides the opportunity to fulfill our clients’ needs, ensuring time sensitive, critical cargo can be delivered locally with accuracy, efficiency and minimal person-to-person contact. We are excited to optimise our clients’ supply chains and are now exploring the true potential of drone innovation.”

LATAM Airlines Argentina will cease cargo and passenger operations for an indefinite period. This means the cessation of flights from and to 12 domestic destinations. International destinations operated by the air cargo unit, LATAM Cargo, will remain active according to their clients’ needs. The announcement is a result of current market conditions, exacerbated by the impact of the COVID-19 pandemic and the difficulty of building structural agreements with local industry actors, which has made it impossible to foresee a viable and sustainable long-term project.

ing medical supplies home to Scandinavia. Since the COVID-19 crisis began, air cargo has been a vital partner in delivering muchneeded medicines, protective equipment, and in keeping important global supply chains functioning for the most time- and temperature sensitive materials. The demand for airfreight has increased significantly during the crisis. To meet the need for urgent transports, SAS Cargo started flying cargo-only flights as soon as it was possible after the majority of SAS‘ passenger flights were mothballed due to global travel restrictions. So far SAS Cargo has delivered 40 million face masks to Scandinavian health care professionals since the crisis began. On board these cargo only flights are also other protective equipment such as aprons manufactured in partnership with IKEA and other time and

carrying a total of 28.5 million face masks and 4.5 million aprons only for Karolinska University Hospital and Swedish health care staff. “We are very pleased to have established this collaboration with Scania Group / Karolinska and to have been able to support the hard-working medical staff during these challenging times. “The COVID-19 crisis has shown that it’s only through collaboration and partnership that we can move forward and stand strong together,” says Leif Rasmussen, president and CEO of SAS Cargo. “It is challenging times for us all, but I am convinced we will come out stronger on the other side, as long as we all work together. “This goes both for us as a company as well as for our partners and customers. We have seen fantastic teamwork and great partnerships come out of these last months.”

SAS Cargo makes sure millions of face masks reach Scandinavia LATAM CARGO IN only six weeks. SAS Cargo has flown over temperature sensitive goods in need of urgent MAINTAINS 50 cargo-only flights carrying 7,000 cubic me- transport during these challenging times. In the beginning of May, SAS Cargo entered of freight, with over 40 million protective INTERNATIONAL OPS TO ters masks for Scandinavian healthcare staff, using an agreement with Scania Group / Karolinska passenger aircraft as cargo flights. SAS Cargo University Hospital which led to daily cargo thereby playing an instrumental role in the flights between China and Sweden. AND FROM ARGENTINA are Until mid-June SAS Cargo flew over 30 flights fight against the impact of COVID-19 by bring-

Agility Spain moves into new warehouse, office space LATAM Airlines Argentina is the only group’s affiliate that will cease operations. Each week, LATAM Cargo transports an average of 270 tonnes of exported goods – including berries, fresh meats and pharmaceuticals – and 290 tonnes of imported goods (mainly auto parts, industrial machinery and pharmaceuticals), supporting the country’s economy.

Agility Spain has moved into a state-of-the-art, 11,000 sq m warehouse and office facility at ZAL Port (Prat) in the Port of Barcelona.

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Chapman Freeborn acquires Arcus Air ON June 18, 2020, Chapman Freeborn, a global aircraft charter specialist and company of the Avia Solutions Group (ASG), signed an agreement to acquire Arcus Air Logistics and Arcus Air OBC from the Arcus Air Group. Offering ad-hoc air cargo charter and on-board courier services primarily to the automotive industry, Arcus Air Logistics is a respected and established supplier with a brand history of over 45 years. The company provides cargo charter services with its own fleet of two Dornier 228-212 aircraft, and a variety of additional aircraft. Over the 2015-2019 period, Arcus Air Logistics’ average annual sales were €22 million. Arcus Air Logistics is a valuable addition to Chapman Freeborn’s service portfolio. It brings significant synergies in the emergency cargo logistics space where Chapman Freeborn is a leading player, with ambitious plans for future growth. “We are proud to welcome the highly experienced teams of Arcus Air Logistics to our growing family. This is an opportune time to join forces given the trends in the global cargo logistics space. I believe Arcus Air Logistics will further strengthen our group’s business as we continue our strategy of growth

through diversification in the niche aircraft charter industry,” says Russi Batliwala, CEO of Chapman Freeborn. “While the aviation industry is living through a challenging time, identifying and acting on the right investment opportunities can be a real differentiating factor for businesses who will emerge from this crisis stronger than before. ASG is pleased to be able to support the growth of our family of companies;

Chapman Freeborn’s latest acquisition is a prime example of our successful cooperation,” says Gediminas Ziemelis, chairman of the board of Avia Solutions Group. Arcus Air Logistics, with representative offices in Germany, Spain and Slovakia will trade under its current name, providing customers with a seamless, high-quality service experience. Francisco Mühlens will continue to act as managing director.

C.H. Robinson has UK in sights ONE of the world’s largest logistics technology platform providers is targeting the UK for growth in the wake of the coronavirus after seeing some 6,000 customers and transport carriers using its services in the last few years, with strong uptake in the last six months. Nick Ghia, UK general manager at C.H. Robinson, says: “Increasing UK market share is integral to our future growth strategy. The coronavirus has been a lesson to supply chains across the world and the UK is no exception.” “Through our AI-driven technology platform, we have experienced significant interest and engagement so far this year and therefore we believe we are well placed to win market share, including the UK in new normal world post COVID-19.”

The company manages £16bn of freight annually. It has 49 offices in Europe, including four operations in the UK. Added Ghia: “Big data and digital technologies, including artificial intelligence, machine learning and predictive analytics, are critical success factors and these technologies will now differentiate UK-based manufacturers, retailers and suppliers in terms of their overall competitiveness.” C.H. Robinson’s cloudbased-platform, Navisphere, connects supply chains across the UK and globally. It does everything from generating strategic data to shape decision making and providing global visibility across all types of transportation; and to enabling 24-hour live cargo tracking.

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ACW 29 JUNE 2020

DHL Express to build new Munich Airport gateway DHL Express Germany and Munich Airport have concluded an agreement for the construction of a new cargo building at Munich Airport. The new building will be built on the site currently occupied by the car parks P 80 and P 80 West and will have a gross floor area of more than 8,000 sq m. For the first time, the partners signed the contract digitally, reflecting the current restrictions. DHL Express will plan, build, and operate the new building and lease the land for it from Munich Airport. Currently, the company rents hall space in the

existing cargo centre at Munich Airport. The start of operations at its own location, which will be six times bigger, is scheduled for 2022. DHL Express has seen a substantial increase in import and export volumes at its Munich gateway. “The existing building could not keep up with this growth,” says Markus Reckling, managing director of DHL Express Germany, explaining the need for this €70 million investment project. “After modernising and expanding our service centre in Unterschleißheim for €13 million last year already, the construction of our new gateway at the airport is the next step in the infrastructure plan with which we are clearly committing to our presence in the Munich region. “Even in the currently difficult economic situation, we are continuing to invest systematically in service.”

Direct airside access The new gateway will have direct airside access and two PUD (pick-up and delivery) fingers. Up to 65 delivery vehicles at a time can be dispatched here. This creates a time-saving benefit for pick-up and delivery, particularly for customers in the Landsberg-Ingolstadt region. In addition, the new station will meet the security requirements of the Transported Asset Protection Association (TAPA) and obtain the globally recognized TAPA Class A certification, the highest security level in air transportation. Munich Airport CEO Jost Lammers welcomes the express service provider’s decision to focus systematically on growth at Munich Airport. Lammers says: “Particularly in these very difficult times for aviation, this sends a signal and is a strong proof of confidence in Munich as a business location. The increased commitment of DHL Express will sharpen our profile as a logistics location and create significant stimulation for air freight traffic.”

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A II R R A

C A A R R G G O O C

W E E E E K K W

BA pulling out of Gatwick ‘throwing staff on scrapheap’ WORKERS suffering serious mental health issues over prospect of job cuts says GMB Union. British Airway’s behaviour as it pulls out of Gatwick Airport amounts to ‘throwing us on the scrapheap, says GMB members. Britain’s flagship carrier announced they are pulling out of Gatwick with threats of hundreds of redundancies and transferring staff to one of its sister companies, Gatwick Ground Services (GGS). GMB believes plans by BA to transfer London Gatwick ground staff to GGS is a back-door way of tearing up members’ terms and conditions. Nick Hallett, GMB branch secretary for BA at Gatwick, said: “My colleagues and I are totally devastated by what they are planning to do to us. Many of us have given our whole working lives to BA and now it’s like they want to throw us on the scrap heap.”

GEBRÜDER WEISS NOW DOWN UNDER ON July 1, 2020, Gebrüder Weiss, the globally active transport and logistics company, will be represented in the Southern hemisphere for the first time with the opening of national subsidiaries in Australia and New Zealand. “As we enter the markets in Australia and New Zealand, we will focus primarily on import business from Asian, American, and European markets,” says Michael Zankel, regional manager east Asia/Oceania at Gebrüder Weiss. To offer customers in its newest market one-stop logistics solutions, the global transport leader has a presence in each of the region’s top trading partner countries.

Paycargo Capital credit facility puts the fresh in produce PAYCARGO Capital, a sister company of the global online payment platform PayCargo, is working with businesses in the fresh produce supply chain to provide fast and flexible financing for the movement of perishable cargo. Customers of PayCargo in North America can apply for credit of $50,000 to $2,500,000 for a 15 to 45-day period. “The use of the PayCargo platform has helped fresh produce companies, as managing cash flow, paying for daily transportation and related invoices, and the immediate release of cargo are crucial elements of their business operations,” said Philip Philliou, CEO PayCargo Capital.

John Menzies in COVID-19 trading hit JOHN Menzies, the global aviation services business, has provided an update regarding current trading and its financing position. Trading in Q2 to date has been ahead of management expectations, with a recovery in flight activity anticipated to begin from early July. The board believes the group has sufficient liquidity capable of supporting the group’s requirements into 2021 following significant proactive cost action taken and the benefit of government schemes around the network As set out in its trading update in March 2020, the spread of COVID-19 has had a significant adverse impact on the group’s financial performance. As expected, the challenging conditions experienced from the end of Q1 have continued during the Q2 to date, with the majority of customer flights grounded. During April and May 2020, ground handling and fuelling activity was c75% lower than 2019, with the group’s ancillary passenger airline services similarly affected. Cargo performance continues to be slightly more resilient overall with total volumes down c37% year on year in April. As a result of this substantial reduction in activity levels, revenues in April and

into May were consistent with expectations at the time of the March Trading Update and c64% below budgeted levels. Despite the significantly reduced revenue, strong cost management, together with quick and effective mitigating actions, resulted in an overall performance for April and into May that was better than expected at the time of the March Trading Update. “We continue to tightly manage outstanding payments with our airline customers and are pleased that in the majority of cases payment terms continue to be adhered to. At this time, whilst we have been affected by the impact on our customers, we have not incurred any material bad debts during the current crisis,” said the handler.

Ongoing uncertainty Whilst the level of ongoing uncertainty is such that the board does not consider it appropriate to provide financial guidance for the remainder of the current financial year at this time, the group has been working closely with its customers on

planning for forthcoming flight schedules. The board currently expects activity levels witnessed in May to remain subdued into June, before a gradual return from early July. “As volume builds, we expect to see short haul capacity return first with long haul capacity taking longer to recover. In addition, we expect cargo revenues to continue to build back as customers employ more innovative measures to meet demand, such as using passenger aircraft for cargo only flights. Our freight forwarding business, AMI, continues to trade well and in line with 2019 performance, with a positive outlook for the coming months,” said the group. The board recognises that there will be significant opportunities for aviation services groups who are able to emerge from this crisis with their capability and service offering preserved. We are pleased that our liquidity headroom is capable of providing a secure platform as we start to build back our operations. Overall, the board is confident in the long-term growth potential of the aviation services market and believes that, as a global leader, John Menzies will emerge strongly from this challenging period.

WAMOS Air reinvents itself in difficult times

THE Spanish leisure airline has transformed one of its passenger aircraft to a cargo aircraft with the purpose of transporting up to 48 tonnes of sanitarian and humanitarian supplies. Madrid-based Wamos Air has converted an Airbus A330-200 from passenger use to freight movements. This has created up to 250 cu m of vital cargo capacity. The operator is the first Spanish company to have made such a transformation. Wamos Air has performed several cargo flights in which it has transported medical and humanitarian supplies on a number of routes, including Hong Kong to Barcelona, Shanghai to Madrid or Hong Kong to Guatemala, says the airline.

Finavia to speed up introduction of electric aircraft in Finland

he Finnish airport company Finavia and the Helsinki Electric Aircraft Association have signed a co-operation agreement with the objective of introducing a new generation of electric aircraft in Finland. If the used electricity is produced with only wind or solar energy, for example, an electric aircraft would fly with zero ZEROAVIA has conducted the first-ever electric-powered flight of a commercial-scale aircraft carried

emissions. “With electric aviation, flying will become more and more ecological and electric aircraft will become an environmentally friendly method of transport. Electric aviation is quiet, which also reduces noise nuisance,” points out the chairman of the Helsinki Electric Aircraft Association Janne Vasama.

out in the UK. The test flight is a significant milestone both for the UK’s net zero and green aviation

ambitions and for ZeroAvia’s demonstration of long-distance zero emission flights in large aircraft.

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ACW 29 JUNE 2020

Put recycled aircraft to good, social use T

he increase in decommissioned commercial aircraft and crowded aircraft boneyards are prompting more aviation industry executives to reconsider how best to repurpose those planes in the recycling phase. Sven Daniel Koechler, PhD, managing principal and general manager of North American Aerospace Industries Corporation (NAAI), has taken a staunch view of how much more can be done with recycled aircraft. Koechler, who is making a $100 million investment in the construction of a new stateof-the-art aircraft recycling facility in Kinston, North Carolina’s Global Transpark, a 2,500 acre, multi-modal industrial airport site, believes that 100% of an aircraft can and should be recycled. His position is that, after the aircraft owners, manufacturers and other industry players have an opportunity to recover or purchase reusable parts or materials from an aircraft, the remainder should be put to good use. Specifically, Koechler is of the opinion that social causes could be effectively addressed by up-cycling any remaining aircraft parts and materials from a retired commercial aircraft. He said the company believes that it will be able to recycle 100% of the non-liquid aircraft components in the future “At present, 85-90% of most aircraft is being recycled,” said Koechler. “First, we need to increase that number to 100% and recognise that, instead of placing the remaining 10-15% in landfills, we can give those materials a new life which, in turn, will help give a new life to those in need.”.

Beyond recycling Even before the pandemic, several hundred aircraft were being retired each year. FlightGlobal estimates that as many as 17,000 aircraft may be decommissioned by 2030. Beyond recycling for applications within the aviation industry, there has been an emphasis on other commercial, for-profit applications. These include aviation-themed art, as well as home and office furnishings, accessories including handbags and belts, sporting goods, and even travel-related items such as luggage. “An average commercial aircraft has an estimated 800 to 1,000 parts that can be recycled. The most valuable of these are the engine, landing gear, avionics and electronics. Once these components and parts are removed, overhauled, tested and recertified, they can be repurposed back into aviation,” continued Koechler. “The remaining materials including aluminum and copper can go to recycling and be returned to the raw material supply chain.” Koechler is not alone in his thinking. There are examples on both the OEM and airline side of conscientious organizations looking to meet other important goals through aircraft recycling. In 2005, Airbus launched a new aircraft recycling initiative, PAMELA, which was a pioneering programme in advancing recycling from what was then the industry standard of 60% of an aircraft, to a goal of 85%, which is now the industry average.

ACW 29 JUNE 2020

Cargolux and Unilode extend partnership

CARGOLUX Airlines International and Unilode Aviation Solutions are proud to announce they have further extended their partnership. This new agreement broadens the scope of cooperation to ensure air cargo customers have access to premium transport and handling solutions to match their requirements. In addition to the current provision of ULDs and related repair and maintenance services, Unilode and Cargolux are now going one step further in the digitalization process. After equipping its units with Bluetooth tracking tags, Unilode is also installing Bluetooth readers at all warehouses operated by its customers. Once these readers are installed, there will be digital visibility over ULDs offering further transparency and enhanced tracking for shipments through the interoperability of the reader infrastructure. These integrated and smart systems will render the handling process smoother and

more efficient while offering Cargolux’s customers increased peace of mind. This innovative approach will serve to optimise processes in the distribution chain and contribute to the smooth movement of shipments from origin to destination, and is a great step forward when it comes to digitalisation and performance in the global air cargo industry.

ULD requirements According to Franco Nanna, Cargolux’s director global logistics services: “Cargolux has grown significantly since starting its partnership with Unilode over ten years ago, and Unilode has proven its ability to flexibly adjust our ULD requirements in line with our customers’ cargo demand. More importantly, Unilode’s investment into digitalisation will benefit the value chain, and especially the cumbersome and time-con-

suming work done by ground handlers and freight forwarders to manually list and count single ULD references via numerous message and email exchanges which will drastically be reduced. This is fundamental to further improve the efficiency of ULD processing.” Benoît Dumont, Unilode CEO, said: “Cargolux is one of the largest cargo airlines in the world and we are proud that Unilode will continue to contribute to Cargolux’s growth and success with the supply of operation-critical containers and pallets during the term of our extended agreement. “Digitalisation will add further value to our strategic ULD management partnership and Unilode’s digital ULDs will be able to provide significant benefits to Cargolux and its customers in the global supply chain, especially due to the location and temperature monitoring features of our digital assets. “We look forward to our continued successful partnership.”

May sees another cargo increase IAI SECURES DHL CONTRACT FOR PAX AIRCRAFT CONVERSION at Leipzig/Halle Airport CARGO volumes at Leipzig/Halle Airport (LEJ), Europe’s fifth largest freight hub, continue to grow, bucking the general trend on the German market. In May, the volume of cargo handled was 5.4% higher than April, at around 114,502 tonnes. From January to May, the value was 1.6% higher than last year, at 519,489 tonnes. One key source of this growth is the freight handled at the DHL hub, which is the largest in the logistics group’s network. The volume handled by other air cargo, logistics and major supply chain companies also continued to rise disproportionately. With the Corona crisis in full swing, in May freight charter

volumes rose 65.6% year-on-year. These included cargo flights using passenger aircraft, so-called ‘preighters’ such as those by Aeroflot, Nordwind Airlines and Vietnam Airlines. Altogether, some 60 cargo airlines fly in to Leipzig/Halle Airport, operating a route network with more than 200 destinations around the world. Leipzig/Halle Airport has a 24hour operating permit for cargo flights, plus direct connections to the trans-European motorway and rail network, both from north to south and west to east. This means that Leipzig/Halle thus offers the ideal conditions for transporting goods by road and rail.

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srael Aerospace Industries (IAI) will convert an additional three B767-300 passenger aircraft to cargo aircraft, with the potential for a fourth aircraft. This contract marks another major milestone for IAI’s aircraft cargo conversions programme and the broadening of business for IAI’s Aviation Group. IAI’s Aviation Group was established in January 2019. Customers include the world’s largest courier and parcel delivery companies. Over the last decade, converted B767 have been the backbone of the cargo aircraft market. To maintain IAI’S “future dominance” in this market, IAI’s Aviation Group signed a contract with GECAS to design, develop, and certify the

B777-300 passenger to cargo conversion. IAI EVP and general manager of Aviation Group, Yossi Melamed, said, “IAI is a world leader for passenger to cargo conversions. “We provide high-quality solutions tailored to the customer’s needs on narrow and wide-body aircraft. “The constant increase in the e-commerce market and the effects of the COVID-19 pandemic have emphasized the importance of cargo aircraft. “We thank DHL International GmbH for their acknowledgment of IAI’s performance and again trusting us to convert additional aircraft for their cargo aircraft fleet.”

NEWS TRADEFINDER

People on the move ...

Freight Forwarders Hong Kong

ATC appoints Volker Dunkake as group manager charter and solutions

Freight Forwarders USA

Henning Dieter new head of Swissport Cargo Services Germany and Austria

VOLKER Dunkake, who has worked at ATC Aviation Services since 2014, has been appointed group manager charter and solutions for the ATC group. effective July 1 2020. Before Volker joined ATC in Germany as head of product for Etihad Airlines he worked in senior roles for Lufthansa Cargo Charter for more than 12 years. In his new function he will develop the ATC charter business globally and study, build up and develop additional freighter routes together with its airline partners. While joining the ATC Global head-office team, he will report directly to the CEO.

Boeing names D’Ambrose as HR leader

BOEING has named Michael D’Ambrose as executive vice president of human resources, effective July 6. He will succeed Wendy Livingston, who has served in an interim capacity since April. In this role, D’Ambrose will be responsible for the company’s leadership and learning, talent planning, employee and labor relations, total rewards, diversity and inclusion initiatives. He will report to Boeing president and CEO David Calhoun, serve on the company’s executive council and be based in Chicago. “Michael is joining Boeing at a critical time as we align our workforce with what will be a smaller and more competitive aerospace industry in the coming years,” said Calhoun. “He brings to this effort and our other business priorities extensive experience leading through organizational change, passionate advocacy for diversity and inclusion, and commitment to identifying, developing and retaining the industry’s top talent.”

enning Dieter has been appointed head of Swissport Cargo Services Germany and Austria and will assume his position on September 1. He succeeds Dirk Schmitt, who left the company in 2019 after almost five years at the helm of Swissport Cargo in Germany and Austria. Dieter will oversee the strategic and operational management of Swissport’s 13 cargo warehouses in the two countries, the largest of which are in Frankfurt, Munich and Stuttgart. Initially, his focus will be on steering the organisation through the coronavirus-related business recovery. The completion of the new Swissport warehouse at Frankfurt airport, scheduled to go into operation in November 2020, will be another major event. Dieter will report to Willy Ruf, senior vice president Central and Eastern Europe. “We are pleased to welcome Henning Dieter as the new head of Swissport Cargo Services Germany and Austria,” says Willy Ruf, senior vice president Central and Eastern Europe of Swissport International. “He can build on many years of relevant professional experience in cargo supply chain management and in the aviation industry in general. While his biggest challenge will initially be to safely steer our business through the recovery phase of the current market crisis, we hope to soon turn our focus on further optimizing the airfreight supply chain.” Dieter is an experienced senior executive in the logistics and aviation industry. He has successfully worked in several geographic markets, including Germany, Thailand and the US. In his most recent role as the general manager airfreight Germany with Yusen Logistics, a leading provider of contract logistics and international freight forwarding, he was responsible for the financial and operational management of his division.

Industry Events

Shanghai Renaissance names Tao as vice general manager THE Shanghai Renaissance International Transportation Company Ltd (RENSHA), part of the Hong Kong-based U-Freight Group, has promoted Lily Tao to vice general manager. Tao started her career in the freight industry as an operations executive with RENSHA in 1995. In her new role as vice general manager she will rise to the challenges that the COVID-19 pandemic is having on RENSHA’s business operations. Simon Wong, U-Freight Group CEO comments: “Over the past 25 years at RENSHA, Lily has not only proven herself very committed in the roles to which she is assigned, but also has shown clear evidence of her commercial, operational and personnel management capabilities.”

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ACW 29 June 2020

7 24/06/2020 14:20

Cargo and Other Stories by Lemon Queen

Cargo in the blood Audrey Serdjebi, founder & CEO, Lemon Queen

rance. Paris. In these oh so very troubled times, the French government’s many critics have said its crisis management has been less than stellar. Masks ordered late, indecision between near-lockdown and total lockdown, and communication inspired too heavily by fear and blame. But when the green light was given, airlines were able to land at Roissy CDG, and that’s where my story begins. This week’s story is a little unusual because I wanted to pay tribute to a category of stakeholders in our industry that has been there for us when we needed them. Céline is one of those people. But through this portrait, it’s the talent of all handling agents that I want to pay tribute to – because while the aim of this column is to pay tribute to the talents of the future, it would be unfair and dishonest not to highlight the incredible adaptability of all of these local heroes who have helped people all over the world to survive. It’s as simple as that. Céline Roubeyrie is import manager at GSH (Global Services Handling), and works at Roissy. “I’ve worked at GSH since the company was created. I’m import manager, in charge of operational management, and I manage a team of 11

people.” Like many of us, this young woman was born with a love of cargo. “I’d always been attracted to the air industry, and I wanted to work in the sector. Air cargo is the fastest and most efficient means for international trade.” And her passion for air cargo is something that the entire world now understands. The air cargo industry – barely known just three months ago – has emerged from the wings to take centre stage alongside medical staff the world over. I don’t know what happens in your country, but in France, every night at 8.00, we clap for the doctors and nurses who are tirelessly battling the virus, the lack of beds, and the lack of time as well. To my mind, our handling agents are a bit like our industry’s medical staff. At GSH, Céline and her team have shown extremely quick reflexes as they respond to demand. Passenger aircraft were quickly converted into ‘ghost flights’ – ships continued to arrive, but planes packed full of masks and medical equipment soon picked up the pace. “We have sustained business levels, which means giving clients the best quality of service, while protecting employees who are all committed and working hard,” says Céline. And the reason is that certain handling agents have fallen ill with COVID-19, and one of her colleagues was even hospitalised – news that had a significant impact on the troops’ morale. And yet those who remained healthy are still steadfast at their posts, no longer counting their hours but working in everyone’s interest. Céline is proud of the way people have pulled together. “The thing I’m proudest of is the tireless commitment and the unfailing efforts of my teams who have never given up and have given their all. My team withstood the storm, and that’s my greatest success. And Céline is also eager to pay tribute to the exceptional adaptability of many of the company’s clients: “With unbelievable responsiveness, we saw Qatar Airways adapt to the situation with the utmost agility to continue with and maintain its cargo activities.” Responsiveness and solidarity between cargo stakeholders to help serve people worldwide. Night after night, TV news programmes praised the work of handling agents, whose activities most people had been entirely unaware of until then. We saw the pilot wave a French flag when

the first Qatar plane loaded with masks landed at Roissy CDG. These men and women, whether on planes or on the ground to unload essentials, have acted as role models for people. In France, just like all over the world, these images gave people the strength to continue their journey through the desert that has been so difficult for many of us. And as we now know, “the world is changing and a previously unknown situation can become reality in very little time,” says Céline, before adding, “There will of course be lessons to be learned from this crisis but we need to emerge from it before we look in detail at areas of difficulty. Every sector will need to carry out this analysis.” Céline has the measure of the situation, and it’s in this quest for adaptability and courage that she is guiding her teams. The young woman describes her work as “an amazing adventure,” and she focuses on the fact that “from the beginning, I’ve always wanted to devote myself to helping GSH develop”. Today, Céline can be proud of achieving her goal. Her dynamism and tenacity, shared by her team, are proof that every link in the chain is crucial to people’s survival. Because ultimately, we – together – are the NexGenLeaders.

Lemon Queen is an airfreight industry public relations and communications agency in Paris, France

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