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Bi-monthly: Vol 10 | Issue 2 | No 65
Middle East, Africa and South Asia 011 has received a unanimous reaction from all corners of
the aviation industry – very positive. Baring some disrup-
tions due to rising fuel prices, the airlines should at least
have a decent year.
We noticed similar sentiment being reflected at the recently
concluded “Air Cargo Africa” - the first biennial international confer-
ence and expo. 54 exhibitors representing various sectors of the air
cargo industry from 19 countries displayed their world class products
and services, specifically designed for the air transport industry.
It emerged that Africa and particularly Kenya is proving to be a major
cargo hub and the continent needed an event like this to send the
message home. Clearly, there is a shift in focus towards emerging
powerhouses - Africa is going ahead with steady strides to become
the most preferred trade market that offers oodles of growth opportu-
nity. Though infrastructure is still a challenge, the government is com-
mitted to change and to upgrading the airport facilities.
PO Box: 9604, SAIF Zone, Sharjah - UAE
We got the opportunity to catch up with Sauda Rajab, General Man-
Tel: +971 6 557 9579, Fax: +971 6 579569,
info@7dimensionsmedia.com ager of Kenya Airways Cargo who says, “Africa has the potential, and
www.7dimensionsmedia.com all we need to do is continue to strive for better consistency of service
Chief Editor backed by liberal regulations.”
Chandrima Dutta
Taking the country’s growth plans further, Kenya Airways Cargo will
bring on line its own freighter in September. Turkish Cargo is planning
Contributing Journalist
Musa Qallab a new route to Addis Ababa. Astral Aviation is in talks with RwandaAir
Security Affairs Writer on a new partnership. It will also lease a minimum of two MD-83s next
Creative Director year. A plethora of other airlines including Emirates SkyCargo, MASK-
Ahli Tamayo
cargo and Maximus Air Cargo are hungrily eyeing new opportunities
Head - Sales & Marketing in the continent.
Israr Ahmad
Israr@7dimensionsmedia.com Keeping up the tempo, Sanjeev Gadhia, CEO of Kenya-based cargo
airline Astral Aviation says, “2011 will be one of the best years for
Advertising Manager
Tousif Ahmed Astral. Business is booming, and we’ve seen increased activity in Jan-
Feb. A series of new route deals has further fortified the company’s
Production Head revenue or the year.
Zainul Abedeen
zain@7dimensionsmedia.com Meanwhile, based on anticipated improved market conditions and
growth in business Netherlands based TNT express recently inaugu-
Research & Market Development (RMD)
Jamal Ahmad rated their new air cargo handling facility at Dubai International.
Though it has been quite some time since Swift Freight’s official name
Photographer/s change to Barloworld, we still thought of following it up to find out
Jamal / Shan
whether it was more than just a cosmetic exercise. We speak with
WORLDWIDE MEDIA REPRESENTATIVES the CEO of Barloworld Logistics, Freight Management & Services; Mr.
France, Belgium, Monaco, Spain:
Aidmedia, Gerard Lecoeur; Tel: +33 (0) 466 326 106; Fax: +33 (0) 466 327 073 Frank Courtney on what value has it added in the whole rebranding
RMA media, Faredoon Kuka; process and what lies ahead for Barloworld Middle East.
Tel: +91 22 5570 3081; Fax: +91 22 5570 3082
Taiwan: Of course as usual we have much more in the issue so enjoy yet an-
Advance Media Services Ltd, Keith Lee;
Tel: (886) 2 2523 8268; Fax: (886) 2 2521 4456
other issue of Air Cargo Update!
Trade and Logistics Siam Ltd, Dwight A Chiavetta;
Tel: +66 (0) 2650 8690; Fax: +66 (0) 2650 8696
UK, Ireland, Germany, Switzerland, Chief Editor
Austria: Horseshoe Media, Peter Patterson; Tel: +44 208 6874 160
Chandrima Dutta 3
All rights reserved. The opinions and views expressed in this publication are not necessarily those
of the publishers. Readers are requested to seek specialist advice before acting on information
contained in this publication, which is provided for general use and may not be appropriate for
the reader’s particular circumstances. The publishers regret that they cannot accept liability for
any error or omissions contained in this publication.

06. World News 14. Cover Story

Airlines look to continue their Kenya Airways Cargo greasing
recovery process despite Africa’s economic wings

13 14

06 36

18 34

46 More capacity to move your cargo

around the globe.
22 28

18. Astral Aviation 28. TNT 36. News - Middle East

Astral upbeat about 2011 Investing in future UAE air traffic movements rise 7.6%
performance in February

22. Barloworld 34. Security Screening

A new beginning Tightening of security makes
compliance to regulation more
complex 46. News Airlines
Emirates is now world’s third
largest carrier
4 Now we have room for every size, shape and quantity to
connect Asia, Europe and USA. For more information,
please access www.thaicargo.com/what’s new.

T H A I C a r g o , A L W A Y S D E L I V E R S T H E B E S T. www.thaicargo.com

Airlines look to continue

their recovery process
despite temporary

ising oil prices, political unrest and natural disasters
are creating an uncertain environment for airlines
that only recently began to recover from years of
steep losses. The International Air Transport Association
(IATA) has downgraded its airline industry outlook for
2011 to $8.6 billion from the $9.1 billion it estimated in
December 2010. This is a 46% fall in net profits compared
to the $16 billion (revised from $15.1 billion) earned by the
industry in 2010. On expected industry revenues of $594
billion, the $8.6 billion 2011 profit equates to a net profit
margin of 1.4%.

“Political unrest in the Middle East has sent oil over $100 Demand: An increase in global GDP forecasts to 3.1% (from
per barrel. That is significantly higher than the $84 per barrel 2.6% in December) bodes well for continuing strong demand
that was the assumption in December. At the same time the for air transport. In line with this, IATA revised its passenger
global economy is now forecast to grow by 3.1% this year—a demand growth forecast to 5.6% (from 5.2%) and its cargo
full 0.5 percentage point better than predicted just three growth forecast to 6.1% (up from 5.5%). Overall, this will
months ago. But stronger revenues will provide only a partial generate a 5.7% expansion in tonne kilometers flown.
offset to higher costs. Profits will be cut in half compared to Capacity: Published airline schedules indicate a capacity
last year and margins are a pathetic 1.4%,” said Giovanni increase of 6%, slightly lower than the 6.1% previously
Bisignani, IATA’s Director General and CEO. forecast. Of this, 5% will come from the 1,400 new aircraft
being introduced to the fleet over 2011. The additional 1%
Forecast highlights include: is expected to come from the normalization of underutilized
Fuel: IATA raised its 2011 average oil price assumption to capacity in the twin-aisle fleet.
$96 per barrel of Brent crude (up from $84 in December),
in line with market forecasts. Including the impact of fuel Yields: With capacity expected to increase by 6% in 2011
hedging, which is roughly 50% of expected consumption, and demand by 5.7%, the gap is 0.3 percentage points. This
this will increase the industry fuel bill by $10 billion to a total of has narrowed from the previously forecast gap which was 0.8
$166 billion. Compared to levels in 2010, oil prices are now percentage points. While there has been some weakening
expected to be 20% higher in 2011. Fuel is now estimated in passenger load factors, as of January they remained near
to represent 29% of total operating costs (up from 26% in record levels at a seasonally adjusted 77.7%. Freight load
2010). factors are also high compared to previous cyclical peaks.
These tightening supply and demand conditions give scope
Growing economies give airlines the opportunity to recover for yield improvements. Passenger yields are expected to grow
some of these added costs with additional revenues. For by 1.5% (up from the previous forecast of 0.5%) and cargo
example, since early 2009, rising oil prices added 25% to unit yields by 1.9% (up from the previous forecast of no growth).
6 costs while average fares (excluding surcharges) rose 20%.
But in 2011 higher revenues are not expected to be sufficient Premium Travel: Premium traffic is an important contributor
to prevent the rise in oil prices from causing profits to shrink of a network airline’s profitability. Purchasing managers’
by 46% from 2010 levels. confidence is a leading indicator for business travel. In CONTACT YOUR TRAVEL AGENT, THE NEAREST ETHIOPIAN AIRLINES OFFICE OR
DUBAI OFFICE TEL: 04-2284338 FAX: 04-2273306
Email: dxbres@ethiopianairlines.com

Regional highlights follow:

Asia-Pacific carriers are expected to deliver the largest Industry expects 38 million
collective profit of $3.7 billion and the highest operating
margins of 4.6%. This is down substantially from the $7.6 tonnes by 2014, indicates IATA
billion that the region’s carriers made in 2010 and from the
previously forecast $4.6 billion for 2011. While the strong is that it will stabilize at 5% CAGR. This is slightly below
economic growth in the region is still driving profitability, the forecast growth in world trade (6%) suggesting a still
inflation fighting measures in China are slowing trade and conservative outlook after the recession shock and possibly
air cargo demand. The key reason for the downgrade from some loss of market share to sea shipping.
December’s forecast is that the region is more exposed to
higher fuel prices, due to relatively low hedging on average. The top five fastest growing international freight markets over
2009-2014 will be Hong Kong (12.3%), China (11.7%), Vietnam
Middle East carriers are expected to return a profit of $700 (11.4%), Chinese Taipei (11.3%), Russian Federation (11.0%).
million. This is considerably better than the $400 million
previously forecast, but down from the $1.1 billion profit that By 2014, the largest international freight markets will be
the region posted in 2010. Political instability in the region The industry consensus forecast released by the the US (8.8 million tonnes), Hong Kong (5.4 million tonnes),
is expected to take its toll in Egypt, Tunisia and Libya which International Air Transport Association (IATA) indicates that Germany (4.4 million tonnes), Japan (4.4 million tonnes) and
combined account for about 20% of the region’s international by 2014 international aviation will handle 38 million tonnes China (3.8 million tonnes). The volume growth expected
passenger traffic. This is balanced by the Gulf area which of air cargo, up 12.5 million tonnes from the 26 million in China and Hong Kong will account for a third of global
benefits from economic activity related to high oil prices and tonnes carried in 2009. volume growth over the period to 2014.
whose hubs continue to win long-haul market share. Load
factors have also improved significantly for these airlines, as International freight volumes are expected to grow at a International freight demand in the Middle East will grow
January, the JP Morgan/Markit Purchasing Managers Index new capacity is being added at a slower pace than demand CAGR of 8.2% over the forecast period. Excluding the 8.1% as freight links to and via the region continue to
hit a record high. Moreover, strong corporate reporting at the increases. impact of the rapid post recession rebound in 2010, for develop. The UAE will lead the region, handling 2.7 million
end of 2010 and expanding world trade will continue to drive the 2011-2014 period, the consensus view for air freight tonnes of cargo.
business travel in 2011, albeit at a slower pace than we saw
during the 2010 post-recession rebound.
Fedex resumes few 2011 global freight traffic off to Boeing 747-8 jetliner
Risks: Rising oil prices are always a challenge for airline Japanese routes a strong start, says ACI
profitability. If they are accompanied by strong growing completes final gauntlet test
economies and world trade, airlines have some opportunity ACI (Airports Council International) member airports have
to command prices that can offset the rising fuel costs. If, reported total global freight traffic growth of 6.8%. The month-
however, rising energy prices stall global economic growth on-month averages indicate that the decline in freight traffic
there is a strong downside risk to this forecast. With oil prices seen in Q3 has been replaced by a firming trend. Asia Pacific’s
now being driven by speculation on geopolitical events in the international freight rose by 9% and domestic by 12% and
Middle East rather than strengthening economic growth, this Europe international increased by 11.4%. Latin America had
is a significant downside risk. the strongest increase in domestic traffic (+16%), whereas
North America, the largest domestic market, remained flat
“This year the industry is performing a balancing act on a very (-0.8%). Angela Gittens, Director General of ACI World
thin tight-rope of a 1.4% margin. It is a structural problem that emphasised the implications of sustained traffic development
the industry has faced with an average margin of just 0.1% for airports worldwide. “Traffic growth is clearly on the rise.
over the last four decades. There is very little buffer for the Emerging markets are buoyant, and we also now see that
industry to keep its balance as it absorbs shocks. Today oil is mature markets are returning to real growth compared to the
the biggest risk. If its rise stalls the global economic expansion, pre-crisis levels. Although all markets are not progressing at the
the outlook will deteriorate very quickly,” said Bisignani FEDEX’s pickup and delivery services in western Japan same rate, the global imperative is clear: airports must prepare
are running as normal, and now operations in certain east- to handle twice as many passengers in just twenty years.
IATA also highlighted the risk of increasing taxation, particularly ern destination are slowly returning to action.
in price sensitive leisure markets. In 2010, the industry saw “For capital-intensive infrastructure development, 20 years is
new and increased taxes in the range of 3-5% of ticket prices Inbound shipments to eastern Japan, Guam, Okinawa a short time-frame to plan, finance and build new facilities to
in the UK, Germany and Austria. Recently, Iceland, India and and Saipan were being accepted on 15 March, excluding accommodate growth. Airports are taking action to maximise Boeing has announced the completion of final gauntlet
South Africa have joined with plans for additional taxation. perishables, inbound FedEx International Express Freight, efficient use of current facilities, working closely with our testing on its first 747-8 Intercontinental jetliner. Gauntlet
“This is a price sensitive business. Aviation has the power to FedEx Airport-to-Airport and FedEx International Premium airline and air navigation service partners to implement testing simulates flight conditions to test systems and en-
8 services. new technologies and agreed standards that streamline sure flight readiness. First flight of the aircraft is to take 9
stimulate economies. But that ability is being compromised
by adding taxes at a time when we are struggling to cope passenger and cargo handling processes as well as enhance place after final flight readiness reviews, receipt of docu-
with high fuel prices just to maintain anemic margins,” said Pickup and delivery service in eastern Japan will resume airside operations. That will not be sufficient to absorb twice mentation from the US Federal Aviation Administration
Bisignani. except for Koriyama-Shi, Sendai-Shi and Miyagino-Ku. as many arriving and departing passengers.” and taxi testing.
Africa and internationally as well. The event was graced by
the presence of Hon Amos Kimunya, Minister for Transport.

Africa Beckons
“Air Cargo Africa is a platform for players in the industry to
not only showcase their products and services but to equally
discuss ways of capitalizing on the enormous opportunities in
the continent,” he said.

Inaugural edition of Air Cargo Africa highlights Swissport Cargo Services polled the highest number of
nominations in the International Ground Handler of the Year
potential of an emerging airfreight continent in Africa. While Emirates’ Mercator won the nomination for
International IT Systems Provider of the Year in Africa. India
based IBS Software Services came a close second.

Jomo Kenyatta International Airport won the nominations

for African Airport of the Year Award. Mohammed Parkar,
Vice President Commercial & Finance received the award for
Maximus Air Cargo as International All Cargo Carrier of the
Year in Africa behind the European Giant Cargolux, who were
the winners of this category.

Astral Aviation based in Nairobi took the honors in the Africa

All Cargo Carrier of the Year sector. Ethiopian Airlines Cargo
and Kenya Airways Cargo were the best and the second best
respectively in the African Cargo Airline of the year sector.
Over the years, it has become a habit for Emirates SkyCargo
to win awards. It was not an exception this time also.
Ram Menen received the award for Emirates who won the
‘Air Cargo Africa 2011 - the first biennial international Emerging Africa, Emirates’ Divisional Senior Vice President Biwer, Cargolux head of Africa, stated. He feels Kenya is one International Cargo Airline of the Year in Africa award. There
conference and expo concluded on 24th February on a very Cargo & Chairman IATA-Cargo Committee Ram C. Menen such place that has been able to deal this situation well. were also awards for the Best Booth Display. Saudi Airlines
successful note at the Kenyatta International Conference said that close to 7.5 times more cargo is entering Africa than Cargo was the undisputed winner while Etihad Crystal Cargo
Centre, Nairobi, Kenya. The event was conceived to is leaving, depicting increased consumer demand as African Preparing to handle further growth were the runner up for the same category.
showcase Africa as the land of opportunities for the air cargo economies grow. Kenya Airways Cargo will bring on line its own freighter in
industry. Dr. Titus Naikuni, Group Managing Director & CEO September. Turkish Cargo is planning a new route to Addis The climactic moment of the event was the Life Time
of Kenya Airways inaugurated the event. India, China drives growth Ababa. Astral Aviation is in talks with RwandaAir on a new Achievement award presented to Girma Wake, former CEO of
One of the most interesting topics discussed was the growing partnership. It will also lease a minimum of two MD-83s next Ethiopian Airlines, for his excellent contribution to the aviation
The event was themed “Air Cargo in Emerging Africa” and importance of India and China driving growth in Africa’s air year. A plethora of other airlines including Emirates SkyCargo, industry in general and the Air Cargo industry in particular.
54 exhibitors representing various sectors of the air cargo cargo business. MASKcargo and Maximus Air Cargo are hungrily eyeing new
industry from 19 countries displayed their world class opportunities in the continent. The event concluded with the announcement of Air Cargo
products and services, specifically designed for the air Clearly, there is a shift in focus towards emerging powerhouses Africa 2013 to be held in South Africa, at the Emperor’s
transport industry. of trade – India and china. Previously Europe was a key The Ethiopian Airlines, one of the fastest growing airlines in Palace, Johannesburg.
market for Africa, which is still the case but it is slowly shifting the industry, has bought five Boeing 777-200LR aircraft, at a
257 delegates from across the globe including Russia, China, to a China-Africa stronghold with India not far behind. cost of US$1.3 billion, making it the first African carrier to own
USA, Europe, India, Australia, Canada, Singapore, and and operate the long-range aircraft. The airline will also bring
12 countries from Africa took part in the deliberations that Des Vertannes, group head cargo at IATA said that an ever- into operation two more 737-800s before the end of this year.
stretched over the three days. 2,429 visitors from 23 countries growing middle class with money to spend in India and
across Africa and 19 countries from other continents visited China are helping their countries grow. According to Naikuni, According to the Ethiopian airliner, using the 777-200LR, the
the exhibition to explore business prospects. Middle Eastern Chinese investment into Africa has reached US$1.12 billion, world’s most technologically advanced aircraft it will be able
representatives were conspicuous by the presence of while India has invested around $50 billion. to make a non-stop flight to new long-haul destinations such
delegates from Qatar Airways Cargo, Saudi Airlines Cargo, as Washington and Beijing. It is also the first airline in Africa to
Etihad Crystal Cargo and National Air Cargo. The two day event also witnessed several companies share operate with Boeing 787 Dreamliner.
their experiences of Africa as an air cargo destination.
The cream of the industry leaders dwelt upon various topics Honouring achievers
10 ranging from the status of the air cargo industry in Africa post Lot of them said they find the African market to be An awards night was also hosted along with the event. The
the economic revival, Integrating Africa’s potential & global imbalanced – it’s a one-way trade as full freighters fly into STAT Times Gala Award Nite at Crowne Plaza in Nairobi
needs, mega issues in ground handling in Africa, role of IT African destinations and on the outbound journey its empty. witnessed as many as 21 awards being conferred upon
in developing air cargo in Africa. Speaking on air cargo in “Striking balance is the key objective for us,” said Georges achievers in different sectors of the air cargo industry in


12 13

Aircargo Africa 2011 Conference Welcome Party

Growth catalyst flowers travels by air as does a similar proportion of specialty
Supported by KAC, the country is pitching hard to grab both meats. Currently, two-thirds of the fish traded internationally
global and regional attention. KAC was formally launched on are shipped by air while almost all of the trade in large live
18th May 2004 as a division in the commercial department animals goes by air.
of Kenya Airways in a move that was part of the airline’s
corporate re-organization strategy. Kenya’s economy, which is heavily dependent on agriculture,
cannot grow as fast without the air cargo transport services.
Through its central hub Jomo Kenyatta International Airport Perishability still plays a critical role in the decision to ship
(JKIA) – Nairobi that is currently undergoing expansion, Kenya by air and it is also recognized that the air cargo industry
Airways Cargo serves its vast regional and international has been key in making Kenya’s horticultural sector to rank
network. Together with strategic partner airlines, the Kenya as one of the country’s fastest growing industries. Nairobi
Airways Cargo now serves over 54 destinations out of which exports 2,000 tons of perishables by air per week to Europe
44 are in Africa. which includes cut flowers, fresh vegetables and fresh fish.
And, Kenya alone sells 82% of its horticultural exports in EU
KAC offers belly capacity and charter brokerage services countries.
mainly to freight forwarding agents, courier companies and
postal corporations. The airline also offers product such as “JKIA’s strategic location makes us better placed in terms of
express cargo, KQ pharma, perishables, general cargo, and smooth cargo flow. Because of Kenya Airway’s intra-Africa
live animals. wide-body capacity, we are able to tap into the growing
horticulture business from other emerging African countries
According to Kenya Airports Authority, in 2010 exports at such as Uganda, Ethiopia, and Zambia,” says Sauda.
196,000 metrics tonnes accounted for 86% of all cargo
throughput with imports at 32,800 metric tonnes accounting The UAE alone imports over 160 tonnes of perishables every
for the remaining 14%. In 2010, perishables accounted for week, which is an indication of rising demand.
85% of total exports and flowers in particular accounted
for 41%. Europe still remains the destination of choice for Challenges
Kenyan exports with 68% of total exports and the Middle It is getting increasingly competitive as more airlines
East at 14%. India and China are also emerging as a major particularly from the Middle East and Asia are offering wide-

Kenya Airways Cargo

trade partners as cargo movement continues to grow. body capacity. This extra capacity in Nairobi often leads
to low cargo yields. Most importantly, much of the cargo
Statistics presented by Boeing at the Air Cargo Africa event, from Nairobi is largely Europe bound and with increasing
the first on the continent, show that cargo in Africa is growing the number of flights serving European destinations from
greasing Africa’s economic wings at an average of 20 per cent per annum. Cairo led with
tonnage handled in 2009 standing at 285,000 metric tonnes,
Dubai, JKIA is having a bit of a tough time. However, there is
enough business as KAC is known for developing specialised
Nairobi emerged second with 263,000 tonnes, Johannesburg products targeted at different consumer needs.
The airfreight industry in Africa is still developing, but local heavyweight Kenya Airways 252,000 tonnes, and Lagos at 172,000 tonnes.
Cargo (KAC) is expanding and stepping up services to cater to the rising demand and Another concern is most of the cargo is carried in the
Perishable specialist airline’s belly hold. Belly capacity is the space available
change global perception. Highly perishable goods incur a significant decrease in after passenger baggage and excess baggage has been
product value with any delay. A study on the impact of the uplifted. Therefore, space constraint does become an issue.
In the recent years Africa has picked up pace and is emerging “Kenya is an agro-based economy and perishables constitute air cargo industry on the global economy estimates that
to be the most preferred trade market that offers oodles of the vast majority of exports from Kenya with flowers being the approximately 80 per cent of the international trade in cut
growth opportunity. The country’s strategic location makes greatest contributor followed by fresh fruit and vegetables.
it a natural hub for investors seeking to exploit not only Africa in general remains a net importer with imports
resources but also a growing market for air freight. outstripping exports. Jomo Kenyatta International Airport is
an exception in Africa in that its airfreight exports are greater
Even investments in infrastructure point towards a determined than imports.
attitude to make Africa a centre of logistical excellence.
Kenya in particular is moving ahead of the rest by evolving Electronics, live-stock, pharmaceuticals, etc are imported
with global trends and changing the way airfreight industry is and then distributed across Africa. So, there is enough
perceived and practised in Africa. This shift is being aided by internal air cargo movement and the potential for airfreight is
two key factors: willingness to shift from traditional practices substantial,” she explains.
14 and infrastructure growth.
“Plus, Africa lacks proper in-land rail/road transport
“Air freight has been the mainstay of our economy,’ says infrastructure making air borne freight transport logistically
Sauda Rajab, General Manager of Kenya Airways Cargo. more convenient and popular,” she adds.
Dr. Titus Naikuni - Group Managing Director and
CEO of Kenya Airways
be complemented by capacity offered by wide-body aircraft
already serving Lusaka, Lilongwe, Harare and Kinshasa
routes. The impending addition of the freighter follows the
successful launch of a three times weekly 767-300 service to
Rome. “We aim to increase our services to London to double-
daily served by Boeing 777-200 as soon as slot availability
permits at London Heathrow Airport. From April, we shall also The Best in Service, Quality and Efficiency
be upgrading our daily Amsterdam service from 767-300 to
777-200 which affords greater cargo capacity,” he said.

This he said would not only take care of increased capacity

for passenger business but also increase the cargo uptake to
Europe. Dr. Naikuni added that International aviation analysts
have predicted that air cargo to grow exponentially especially
intra Africa and between Africa and Asia with Nairobi
Sauda Rajab, General Manager of Kenya Airways Cargo
increasingly playing the role of a cargo hub for Africa.

It is essential to optimize the cargo belly capacity on Kenya He called for the expansion of cargo handling infrastructure
Airways passenger aircrafts and developing a dedicated particularly at the JKIA as well Kisumu and Moi international
freighter network. airports. “At Kenya Airways we have invested in cold room
facilities to accommodate the growing horticultural export
However, the airline is not only limited to selling available belly business. Our new Fast Flexible Fresh (FFF) facility is a 2500 C

space on flights. Extra capacity is obtained by brokering meter square warehouse with the capacity to store between
charters as well as utilising existing code-share agreements in 90-100 pallets,” he added.
place with other airlines on routes that have high demand for Y

cargo capacity. Plus, for most carriers in Africa, cargo flies only Paperless system CM

in one direction unlike passengers. Hence it does not work The air cargo industry has come under fire recently for failing MY

out that well for the airline. Growing fuel costs in the wake to adopt more efficient paperless communications systems.

of regional political unrest is also a growing concern, says But KAC said ‘E-Freight’ would boost competitiveness by
Sauda. “However, our biggest plus is our geographic location. helping to reduce costs and increase processing speeds and

Nairobi is centrally located unlike many other African airports, accuracy. K

especially the ones down South. As we all know, air cargo is

all about shortening the travel time, and Kenya Airways Cargo “E-Freight is an International Air Transport Association (IATA)-
with its good network, ideal location will finally have a better led global initiative for the air cargo industry to replace paper
turnaround time despite being challenged on space. documents with electronic messages and involves carriers,
freight forwarders, ground handlers, shippers and customs
Expansion to meet growing demands authorities,” says Sauda.
In the recently concluded Africa Air Cargo Conference Kenya
airways Cargo announced that it was developing its cargo Better future
division further by boosting its cargo capacity. The airline is for Africa and particularly Kenya is proving to be a major cargo
Core Services:
the first time set to acquire one freighter and plans to increase hub. Though infrastructure is still a challenge, the government • Freight Management and Customs Brokerage
the freighter fleet as business demands. is committed to change and to upgrading the airport facilities.
However, to realise true prospects the countries need to
• Automotive Logistics
Speaking while opening the Africa Air Cargo Conference in facilitate cargo transport by making cargo regulations more • Warehouse and Inventory Management
Nairobi, the Group Managing Director and CEO, Dr. Titus
Naikuni said that the airline was sourcing for a cargo freighter
liberal than passengers. They should also work towards
enhancing traffic by removing restrictions on prices and
• Domestic and International Transportation
to be in service by next financial year which starts in April capacity. Finally, authorities must work towards improving • Project Cargo and Heavy Lift
2011. efficiency in handling logistics in order to deliver value to the • International Moving
He said that the airline had noted rising demand for cargo
services from customers and was keen to support the However, it is heartening to see that Africa has picked up
growth in intra-Africa Cargo growth. “The freighter will be pace, a fact certified by the increasing presence of local and
16 used for operations across Africa destinations.”It is intended international logistics companies that are flooding the market.
that the freighter will be available both to the wider Kenya Sauda agrees saying, “Africa has the potential, and all we
Airways network as well as interline partners with regular need to do is continue to strive for better consistency of
intra-Africa traffic. He added that the freighter service will service backed by liberal regulations.”
P.O. Box 61450, Dubai, United Arab Emirates. Tel: +971 4 881 8288, Fax: +971 4 881 9157, e-mail: contact@alfuttaim.ae www.al-futtaim.ae

upbeat about 2011
As the cargo carrier celebrates its
10th anniversary, Chief executive
Officer of Astral Aviation, Sanjeev
Gadhia, predicts that 2011 will be
a pivotal year for Astral. Chandrima
Dutta reports. Sanjeev Gadhia - Chief executive Officer of Astral Aviation African pharmaceutical industry. Astral distributes cargo for USA and the Middle East, which were most badly affected.
over 20 international airlines that fly into Kenya and works with “Our cargo volumes declined by 35% which affected yields
five global freight-forwarders. Within its intra-African network, and profitability,” says Gadhia. Astral implemented a cost-

ll of us at some point have heard the old adage – ‘hope Juba, Kigali and Bujumbura. which encompasses 50 destinations, Astral operates a reduction program and a revenue optimization initiative in
for better and prepare for worse’ but Sanjeev Ghadia combination of non-scheduled and adhoc charters to another 2009 which finally resulted in positive results.
is only hoping for the best and says confidently “2011 Gadhia says, “Interline traffic accounts for 60% of in-bound 40 destinations along with value-added leasing services.
will be one of the best years for Astral.” shipments into Astral’s network, and the recent bilateral However, the current issue of rising fuel prices is another
interline agreement with Etihad Crystal Cargo marks an To further tap the intra-African market, Astral opened a new great barrier to success. Fuel accounts for 40% of the airline’s
Africa’s growing economies have led to increased movement important synergy for both airlines whose GSA’s and customs warehouse last year. It is also facilitating better operating costs. Due to the constant increase in the Fuel Index,
of goods with airlines positioning themselves to move more customers will have access to a wider network.” storage and clearing of cargo at Juba airport. Trade in Juba, Astral Aviation again had to increase their fuel surcharge. “If
cargo. As international airlines link the continent to the rest of the capital of Southern Sudan has been on the increase you keep loading these costs on to your clients/customers,
the world, Kenya-based airline Astral Aviation has positioned The cargo airline already has interline agreements with Kenya leading to demand for cargo imports, especially from Nairobi. they slowly move to companies that are less expensive,”
itself as the leading cargo carrier in East and Central Africa. Airways, Martinair Cargo, British Airways & Air Mauritius to exclaims Gadhia “and this further affects your bottom-line.”
facilitate the consolidation and transhipment of in-bound Tanzania has been another major route for the airline. Driven
Route Expansion cargoes at the freighter-friendly Jomo Kenyatta International by the country’s tourism and mining industry, Tanzania is These obstacles have however not dampened the attraction
“Business is booming, we’ve seen increased activity in the Airport. attracting major airlines and cargo operators to fly in. to Africa and Astral’s business plans for 2011 are rolling
past two months,” says Gadhia. A series of new route deals out. “Africa is among the few regions promising growth in
has further fortified the company’s revenue. Ever-growing Cargo Market The discovery of oil in Uganda is expected to increase the highly turbulent aerospace domain. This is backed by a
Proactive government initiatives and increased investments demand for flights to the landlocked country, with airlines strong intention to spearhead pioneering developments and
The cargo carrier covers the whole of Africa and is currently into infrastructure, telecommunication, agriculture, and anticipating increased cargo and passenger numbers. the region’s business potential. And needless to say, the
exploring new destinations. mining are some of the major drivers of cargo movement increase in cargo activities serve as a clear barometer as
in the continent, therefore seeking increased interest from Clearing Obstacles to where the sector is heading,” he states. Astral currently
Gadhia has already signed a special interline agreement with global markets. There is no doubt that any new freighter destination has its operates a fleet of two DC – 93s and two Cessna Caravan
Rwandair Express. The bilateral agreement allows Rwandair share of obstacles to surmount. Some of these hurdles vary aircraft out of its dual-hub at the Jomo Kenyatta International
Express to feed into Astral’s Nairobi network which comprises Middle East and European airlines lead the pack in positioning upon regions, others are universal. Airport and Lokichoggio Airport, both of which are located
of scheduled cargo flights into Kigali, Entebbe, Juba, Dar- themselves to tap the opportunity, with freighters being in Kenya. With new destinations being brought on board
es-salaam, Mwanza and Zanzibar. Likewise, Astral Aviation deployed to move cargo into and out of the continent. The challenge for Africa is much to do with overcoming political and accelerated business growth in recent past the airline is
will feed into Rwandair Express’s passenger network which obstacles and bureaucracy. Astral identifies this as key to seriously contemplating buying additional aircraft. “We have
comprises of destinations from Kigali such as Brazzaville, Asia is also emerging as a major trade partner as cargo smooth operations in Africa. To succeed, Africa’s air cargo already inspected two DC – 8s in the UAE and are currently in
Bujumbura, Johannesburg, Kilimanjaro and Kamembe. movement between the two regions continues to grow. “We sector needs a clear vision and a commitment to confront talks with the Civil Aviation Authority to get them registered,”
are also receiving lots of in-bound cargo from India,” says the risks associated with ill-conceived and uncoordinated declares Gadhia.
18 Few days back, Astral struck another interline deal with Etihad Gadhia. India has been actively promoting trade with Africa deregulation initiatives at the various country levels. Plus, the
Crystal Cargo. The partnership has given Etihad Crystal in recent years. It has already penetrated the $2.5 billion global slowdown did have a snowball effect on the aviation Astral is witnessing a huge upsurge in terms of business and
Cargo access to the following seven Astral destinations pharmaceutical market in West Africa. According to IMS, industry and Africa was no exception. The airline derives I see every reason to say that 2011 will be one of our best
across Africa: Entebbe, Zanzibar, Dar Es Salaam, Mwanza, imports of finished products account for over 60% of the almost 90% of its cargo from traditional markets of Europe, years in terms of performance,” he concludes.

Air Cargo Competitiveness Improves

The International Air Transport Association (IATA) laid

Russia and Vietnam which much catch-up fast or risk being

out an agenda for the air cargo value chain to improve its left behind in this important business, “said Bisignani. The
competitiveness with a four point agenda. “The air cargo IATA e-freight program was started in 2004 with the aim of
value chain must offer better quality and improved efficiency saving the industry $4.9 billion by converting 20+ shipping
with operations that are safer and even more secure,” said documents and the processes behind them to electronic
Giovanni Bisignani, IATA’s Director general and CEO, in his format. “It’s a no-brainer. If we can be faster, cheaper, more
opening remarks to 900 air cargo executives gathered in accurate and secure we need to get it done,” said Bisignani.
             
Istanbul for the IATA World Cargo Symposium. Quality: “Cargo is a competitive business—98% of the
            
volume goes by sea and 2% by air. Customers who pay a
           
“An efficient air cargo industry is in everybody’s interest. premium to ship by air demand premium quality. Cargo 2000          
Transporting 35% by value of goods traded internationally, it has developed cargo standards. These should not be the              
is critical to the global economy. Improving competitiveness property of a club of a few committed airlines and freight             
to more effectively connect the world requires a team effort forwarders. Customers want to know that their shipments               
across the air cargo value chain. Airlines, forwarders and are on time and if they are not, they need to know when to   
shippers must work with governments on common goals to expect them to plan around the delay. This is an example of            
solve air cargo’s key issues,” said Bisignani. basic good business practice that air cargo needs to adopt if
it is to maintain or improve its competitiveness. My vision is
IATA specifically addressed the following issues: to evolve these to global quality standards by the end of this 
Security: Bisignani noted significant progress in collaboration year,” said Bisignani.
with the US Department of Homeland Security in 2010.
He also rang a warning bell that many governments and Safety: With one accident for every 1.6 million flights in 2010,
politicians are working on change to air cargo security that safety as measured by Western-built jet hull losses achieved
dramatically impacts the business. “IATA is taking the lead to a historical low. Benefitting from the IATA Operational Safety
engage governments with industry knowledge and expertise. Audit (IOSA) as a condition of membership, IATA airlines 
Our message to governments is clear. We must resist the outperformed the industry with one accident for every 4
knee-jerk call for 100% cargo screening. The industry must million flights. “Safety is our number one priority. The positive
be secure with effective measures that facilitate the speed numbers from 2010 show the strength of our commitment.
needed to support global commerce. Air cargo security must This commitment includes constant improvement and there     

be based on a combination of three measures—supply chain is an emerging risk with internet based commerce that we
security, scanning technology and better use of e-freight must address. Individual sellers through websites are not
data,” said Bisignani. professional shippers. They don’t know their responsibilities
to label, pack and declare dangerous goods. All air cargo
IATA’s vision for air cargo security includes a supply chain stakeholders must find a way to bring these websites to
 
approach that keeps shipments secure from the time of action to inform their customers of their responsibility. And
packing to loading. IATA’s Secure Freight initiative helps we must do this fast, before we have a catastrophe,” said       

industry and governments to work together on investment, Bisignani.

processes, technology and risk assessment to implement 
a supply chain approach. Secure Freight is being piloted Positive Outlook            
            
successfully in Malaysia and the target is for two other Air cargo is expected to generate $68 billion to the            
countries to implement in 2011, including the United Arab industry’s $594 billion revenues. Volumes are expected to             
Emirates. Second, new certified screening equipment is grow by 6.1% for a total of 46.2 million tonnes of air cargo            
             
needed to supplement the supply chain security process and in 2011. Stronger demand indicated by upwardly revised             
handle oversize items and pallets if required. And third, to GDP forecasts of 3.1% and careful capacity management          
            
facilitate effective risk assessments, better use must be made are expected to see cargo yields grow by 1.9% in 2011.            
of electronic information. Along with the rest of the aviation business, air cargo is              
expected to be hit hard by rising fuel costs. IATA raised          

e-freight: The IATA Board of Governors has targeted 10% its assumption on the oil price to $96 per barrel from the
e-freight volumes on capable trade lanes by the end of 2011, previously forecast $84. Taking into account hedging levels     
20 and 100% by 2015. “The e-freight network covers 80% of of about 50% of anticipated consumption, this added $10    
cargo volumes. But e-freight penetration stands at just 2.8%. billion to the industry’s fuel bill. This drove a 46% cut in  
Most governments have legislation that recognizes electronic global profits to $8.6 billion from the $16.0 billion that
documentation. The exceptions include Thailand, Indonesia, airlines made in 2010.

A new beginning
In 2008, South Africa’s Barloworld Logistics bought Dubai-based Swift Freight Interna-
tional to secure a strong foothold in a number of Asian and African countries. Air Cargo
Update caught up with CEO of Barloworld Logistics, Freight Management & Services,
Mr. Frank Courtney to find out why a renowned and trusted brand Swift Freight was re-
branded to Barloworld Logistics. Has this been a positive re-branding exercise so far
and if so, what is Barloworld’s value addition in the whole process? Here’s an excerpt.

Mr. Frank Courtney - CEO of Barloworld Logistics, Freight Management & Services

Swift Freight being such a strong brand in the market, why in line with the group strategy of to be a leading brand in So, for the laymen, they shouldn’t feel any change because it sounds little intimidating to me if I am a small time
would you like to change to Barloworld Logistics? the markets where we operate. Our objective is to grow all we are changing is the brand. The customers will still customer?
Barloworld Logistics brand into a leading provider of supply enjoy the same level of service from the same people, from
From the beginning Barloworld’s intention was to eventually chain management solutions. Barloworld Logistics as they always have. Our strategic intent is to provide, supply chain management
change the brand, in line with our international branding solutions to large corporate customers. Our target market is
strategy to ‘Barloworld Logistics’. When we acquired Swift, What does it mean to your customer and the layman, this So what is the Barloworld value addition in the whole process? the large corporates. Fundamentally, we want to demonstrate
we knew the change would come someday. brand change or name change? What is it? Is it just a logo our capabilities in the supply chain management through our
change or something more than that? Being part of a six billion dollar group; Barloworld brings freight forwarding, warehousing and distribution offerings that
When we acquired Swift in 2008, considering the strength financial stability, governance, tried & tested business we have acquired from Swift.
and value of the brand, we planned to migrate over three Barloworld is a 109 year old company and what the brand processes into the equation and the customers will realize
years. We have been precisely doing that for the last three represents is reliability, quality service and long lasting the benefit of those services being applied. We want to give our existing and potential customers, the
years. partnership. With regards to service quality, pricing, none of confidence that we are capable of providing integrated supply
that gets affected because we have been in control of the Swift Freight was a local company and over a period of chain solutions to meet any of their needs in the market. Having
22 It is now in line with our plan; the time has come for us to business for the last three years. We have been reviewing time, it grew across various geographies and it catered said that, obviously, we can fulfill the needs of an individual
change the brand to Barloworld Logistics as we are branded business processes and improving, which our customers are services to the smallest possible customer to the big customer, who walks in with a single pallet; we would gladly
all over the world. Barloworld acquired Swift to gain foothold really enjoying. Obviously, this is an ongoing process as we corporates. So when you mentioned that you are a assist him. Strategically, people and companies that we are
into the Middle East and GCC market and our intent is to believe in continuous learning and continuous improvement. part of a six billion dollar Company, don’t you think going to pursue are the large corporate customers, who have

complex supply chains, where we are certain to add value differentiation through our software business where we can we have done. Strategically, we wanted to insert ourselves As the cost base in traditional manufacturing increases
through our integrated solutions. provide network design solutions, inventory management into the northern hemisphere trade lanes; that’s where the there would shift in manufacturing base and supply chain
solutions, demand planning solutions and host of analytical majority of global business occurs and we did that with Swift management companies like Barloworld Logistics, would
What products and services do you intend to offer apart tools. We are able to assist customers in understanding acquisition. have to stay agile about changing origins and impacts on
from traditional freight forwarding services? better ‘what they are shipping and why they are shipping?’. supply chain.
So, we want to understand the drive behind the customer The reason we acquired Swift and the Flynt in Hong Kong;
When we bought Swift, we did not only buy freight forwarding, to ship something, the mode, to make sure that, first of was to put us into the East-West trade flow in the Northern Supply Chain Management companies which are integrated
we also bought warehousing, distribution, transport and all, they are choosing the correct mode and / or the right hemisphere. So, along with our operations in South Africa, with transportation ability and tools to manage them will
whole lot of services. We already offer a wide range of services quantity, because that’s where you can get a big reduction. we will be focusing on Spain and Germany as well. succeed better than those who are in pure consultancy
beyond freight forwarding as many of our customers also By understanding the supply chain on a broader aspect, you space for the fact their better knowledge on all the aspects of
look for value adding services. We believe in approaching our will get a far better reduction. Just after the acquisition, you had a major downturn in this supply chain and control on those factors.
customers with a blank piece of paper and explore their need region. Well, no region was exception to this. How did you
which enables us to design and facilitate those needs within If you don’t, look at it holistically, What you are looking at is, manage the new acquisition during that period? What are your future plans?
our business offerings. a small increments in price change because in the supply
chain, everyone has to try and make money. So you may We focused on providing better service than our competitors, Our strategic intent is to provide, supply chain management
So how does that differentiate you from the existing large be able to negotiate at 2% or 1% better price with the so that our customers would remain loyal with us. We solutions to corporate customers. Our target markets are
sized players? airline company. That’s not a real saving to a customer. E.g., battened down the hatches to weather the storm, which I am corporate companies. The year ahead will be streamlining the
instead of shipping a 100,000, you can fulfill his needs by pleased to say, we have come through. operations, extracting synergies and focusing on trade lane
I think, like all businesses, the real differentiation comes from air freighting 1000 and sea freighting the balance, you are growth. Once the consolidation is bedded down, we will look
the people. Everyone has same fork lifts and warehouses. creating substantially more value for that client. What future trends look like for the logistics industry? to strengthen our position in the Middle East.
The difference between excellent service and mediocre
service are the people. We acquired in Swift was a group Earlier Swift Freight was very dominant in Africa, so what As per WTO latest numbers the global trade has grew by In addition to geographical growth, we will also be looking
of professionals, who understand the region and are able to areas are Barloworld Logistics looking forward to operate 13.5% in 2010 compare to expected 10%. This clearly to increase our product offering in the Middle East market
offer a superior service. and expand? indicates that global trade is on the comeback. Our volumes i.e. to provide complete end to end supply chain solutions
24 currently show a similar recovery. The Downturn has also left and software solutions to manage the same. Such products
Obviously, a lot of other players in the market are migrating Barloworld, as a group, has many operations in Africa. Africa many good lessons to learn. Companies would like to focus are suitable for all medium and large enterprises, however
to a more integrated supply chain offering and looking for is where Barloworld comes from. We are a South Africa on their core activity and leave logistics for the experts like the greater the complexity of the supply chain the greater the
ways of differentiating themselves. We are able to offer based company and Africa has always been a part of what Barloworld Logistics to manage it. return.

Dubai Gears Up to Gather

70 Hosted Buyers at Airport
Show 2011
Dubai is gearing up to gather more than 70 Hosted Buyers
from 20 different countries during the Airport Show 2011, an-
nounced REED Exhibitions Middle East, a leading organiser
of trade and consumer exhibitions.

The participation records a higher percentage than last year

when 56 buyers from 17 airports participated in the Hosted event offers a one-stop platform catering to the needs of ex-
Buyers programme, while the 2009 edition attracted 41 buy- isting and new airports in the region in which development
ers from 16 airports. and expansion projects are estimated to cost US$90 billion
over the next few years.
Organised under the patronage of His Highness Sheikh
Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Avia- The outlook for 2011 remains positive with expenditure bud-
tion Authority, Chairman of Dubai Airports and Chairman and gets at 78 per cent of the world’s airports either remaining at
Chief Executive of Emirates airline and Group, the 11th edi- higher levels or indicating further increase, according to the
tion of Airport Show will be held from 31 May-2 June at Air- findings of the seventh Airline IT Trends Survey. Asia-Pacific,
port Expo in Dubai. the Middle East and Africa are projected to be the strongest
growth sectors. According to the Middle East Airport Security
Airport Show 2011 will gather suppliers of equipment and Market Assessment Report, safety and security remain an
services covering all areas of airport development and opera- important focus area in which spending is expected to reach
tions with the Hosted Buyers under one roof in Dubai. The AED212 million (US$57.7million) by 2015.


Investing in future
TNT’s new air hub to cater to Mideast’s growing business demands

HH Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation

Authority and Chairman of Dubai Airports officially inaugurates the facility

(L - R) Andrew Walsh, Vice President of DWC, Dubai Airports; Bryan

Moulds, Regional Director for TNT Middle East; Paul Griffiths, CEO of
Dubai Airports; a TNT official

egional Director for TNT Middle East, Bryan Moulds levels of customer service and facilitating the smooth and starting with the opening of this new 2,500m2 dedicated
says it is prudent to expand now as the company is efficient operation of TNT’s new facility at Dubai International.” facility, where TNT has the benefit of close on site cooperation
looking to grow 20% this year, and if that forecast with both Dubai Police and Customs authorities, which will
continues as he thinks it will over the next three to four years, Commenting on the inauguration of the air hub at Dubai’s enhance daily operations.
TNT will have to invest in future. International, Moulds said, “This new facility is another step in
our aggressive expansion in the region. We are committed to The recent launch of a dedicated B767 freighter, with a
Based on anticipated improved market conditions and growth investing in the Middle East and want to thank His Highness daily connection between Dubai and TNT’s European air
in business, Netherlands based TNT express inaugurated for sparing the time to officially open our new operation. TNT’s hub demonstrates the company’s confidence, borne from a
their new air cargo handling facility at Dubai International. volumes on our freight network between Europe and the UAE strong regional recovery centred in the UAE and specifically
His Highness Sheikh Ahmed Bin Saeed Al Maktoum, have grown by over 30 per cent in 2010 and the timing of Dubai. With these developments, customers will enjoy faster
President of Dubai Civil Aviation Authority and Chairman of expanding the hub was to allow us to further support and transit times, cost benefits, greater control and visibility over
Dubai Airports officially opened the facility which represents accelerate volume growth. This is a complementary step their shipments.
a substantial increase in size (ten times bigger) compared to in enhancing our connectivity in the Middle East, alongside
their previous facility. The state of the art building features more investment in enhanced handling facilities in Dubai, Jebel Ali “Our success in the Middle east has been a continuation of
than 2,500 square feet of space, exceptional accessibility and and our Middle East Road Network (MERN).” success in the GCC countries and particularly the UAE, which
customer service areas. According to Moulds, this facility is has been highly instrumental in changing growth in the region.
capable of handling materials of 767, 747, and 777 freighters. Middle East integral to growth And lead by the UAE and then Saudi Arabia, the powerhouses
TNT confirmed significant investments to accelerate their next of the Middle East, I am confident; it will continue to be that
Industry big-wigs like Paul Griffith, CEO of Dubai International phase of growth in the Middle East, centred from its Regional way. While Saudi has a big consumer base UAE has the
Airport and Andrew Walsh, Vice President Cargo of Dubai Headquarters in Dubai, UAE. The ongoing investment in the growth rates and size of business,” he explained.
International and DWC were also present. Terming the launch local economy involves facilities, equipment and people and
of the new facility as the continuation of a long and fruitful involves a significant ongoing commitment. Moulds said, “The When asked about whether TNT Express is contemplating to
partnership between Dubai International and TNT, Sheikh only way that we can continue the growth we have witnessed establish base in Dubai World Central, Moulds said, “Dubai
28 Ahmed said, “Dubai International is an emerging global over the last five years is by investing in the right places. We’re World Central is turning out to be a great place for companies
hub for trade, cargo and logistics and the opening of a new anticipating a 20% growth this year and it is prudent to invest specialising in air freight movements. We are already in talks
facility for a global player such as TNT serves to build that now to ensure we do not limit our ability to grow. ” with Paul Griffiths and other officials about having a facility
Bryan Moulds - Regional Director for TNT Middle East
momentum. Dubai Airports is committed to providing high There are several exciting developments linked to and there either by 2012 or 2013.”

pest-free cargo

ood packaging material used for sending
cargo can spread pests, which can lead to
serious problems around the world. Globally
approved measures have now been established to re-
duce this threat and protect local environments. If you
use wood packaging for your products, the material must
be heated in agreement with the regulations stated in the
ISPM-15, says Pramod P, CEO of Universal Pesticides.
Pramod P - CEO of Universal Pesticides.

crucial part of exporting lies in the physical transfer of heat treatment and our certificates are accepted worldwide,”
the products to the desired location. This includes he adds.
not only the mode of transportation, but also the
packaging of the product. “The treatment of wood packaging materials is a means
of preventing the introduction and spread of pests. The
Did you know that lot of your cargo are packed in huge standards are set out in the “International Standards for
wooden boxes? And, most of the time they are stuffed with Phytosanitary Measures: Guidelines for Regulating Wood
food grains and other edible items we consume on a daily Packaging Material in International Trade, or more commonly
basis? And these boxes might have pests and mites of all ISPM 15. In order to comply, the material must go through
stages (i.e. eggs, larvae, pupae, adults and hidden insects). one or several of the approved treatment procedures and be
Therefore, it is essential to treat the wooden containers before stamped with an an approved International Plant Protection

71,000 visit Al Ain Aerobatic

sending them off to their destination countries. The aim is Convention (IPPC) logo,” he explains.
to prevent pests, other insects and biological material from
being transferred unknowingly from one country to another. “Under the ISPM15 requirements, exporters would be
required to heat treat wood packaging material to a

Show 2011 If you are regularly exporting cargo to countries such as

USA, UK, Canada, Japan, Australia, etc, you must be well
aware of the consequences of not having a heat treatment
minimum core temperature of 56 degrees Celsius for at
least 30 minutes. Exporters could also use Methyl Bromide
or Aluminium Phosphate to fumigate the wood packing.
or fumigation done before despatching cargo in wooden Though Methyl Bromide is most widely used fumigant for
containers. Often, exporters especially those who are Quarantine purposes, we use Aluminium Phosphate here in

his year’s Al Ain Aerobatic Show ended having more sending goods for the first time to these countries send off our warehouse, which is equally effective,” he adds.
than lived up to its billing as the biggest and best ever their consignment without fulfilling these requirements only to
with 71,000 spectators pouring through the gates realise later that their cargo has been considered untreated, Advantages of fumigation
over the two days of the event. Friday saw a show day visitor objectionable, & non-compliant and therefore rejected. Fumigation is a Quarantine requirement for countries such as
record with some 39,000 spectators attending. Australia, New Zealand and China before goods are admitted
“Wood packaging material made of unprocessed raw wood into the country.
The Show was held under the patronage of HH General can spread pests, which can lead to serious problems
Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of around the world. Globally approved measures have now Fumigation is a process of exposing insects or material
Abu Dhabi and Deputy Supreme Commander of the UAE been established to reduce this threat and protect local infested by insects to the fumes of a chemical at a lethal
Armed Forces, and was carried out in partnership with Al Ain environments. If you use wood packaging for your products, strength in an enclosed space for a given period of time.
Municipality and Al Ain Police. the material must be heated in agreement with the regulations Fumigant is a chemical, which at a required temperature
stated in the ISPM-15,” says Mr. Pramod P, CEO of Universal and pressure can exist in the gaseous state in sufficient
Pesticides. concentration to be lethal to a given pest organism.
30 Fumigation is the introduction of the toxic gas in high
Universal Pesticides is one such company which can help concentration so that the gas pervades the entire area and
you in such situations - “We are authorized to carry out all kills the insects prevalent and thus preserves the precious
Quarantine requirements right from export cargo fumigation to cargo of the customer.

Scheduled Charter
Services Services

ACMI Relief and

Services Aid Project

Heat treatment chamber

Fumigants are usually quick acting and therefore results in All such packaging must carry proof of appropriate heat and/
! total control of pest & insects. Fumigation can control at all or chemical treatment on each board!
It’s on time or it’s on us stages of pests (i.e. eggs, larvae, pupae, adults and hidden
insects). Fumigants being Gases, they diffuse through all Similarly Asia-Pacific countries, including Australia, Singapore,
parts of the structure or commodity and can reach to pests Hong Kong, and the Philippines have also tightened
Logistics that could not be reached with conventional pest control restrictions on importation of wood packaging as evidence
Solutions materials or techniques. For certain commodities, Fumigation of “dangerous wood hitch-hikers” and their consequential
is the only recommended practical way to control pests. Plus, environmental damage is becoming increasingly evident.
it has no adverse effect on Germination quality.
But most of the exporters are not aware of these new
“We use Aluminum Phosphate, which is available in the form regulations and checks that have been put in place. Plus, the
of tablets and used worldwide for fumigation of raw and commercial and operational impacts of these standards are
processed commodities including grains, tobacco, nuts,
● Operates from the UAE Airports. Our home base and main hub for our international seeds, animal feeds, tea, coffee leaf, wheat flour, processed
certainly increasing the cost of wood pallets and packaging
for international shipments. New and additional paperwork is

Air Cargo and Air Charter operations is Al Ain Airport. spices, dried fruits, etc. It can also be used for fumigating
storage structures all sorts of storage structures. It requires
a certainty for everyone involved, adding another level of cost
and risk to the exporting process.

● Operates Six (6) A300B4-203F with a capacity of 44,500 Kg each. three to six days to fumigate containers depending on
weather conditions and temperature. In March 2002 the International Plant Protection Organization

● Operates Three (3) B747-200F (Nose Loader) with a capacity of 108,000 Kg each. Impact on exporters
(IPPO), which is a division of the United Nations, implemented
a global standard governing all non-manufactured wood
● Transports dangerous goods, valuable cargo, deep freeze food and fruits and vegetables. Governments around the world are increasingly restricting
the use of all forms of wood packaging, including pallets,
packaging (both coniferous and non-coniferous), and said,
it will be implemented over a 1-2 year timeframe. Actual
crates, and skids. These restrictions are intended to stop the implementation was left to the individual country, creating
introduction of foreign pests and have created an expensive more uncertainty and risk for exporters, as interpretation and

For any charter requirements, please contact us directly at: and complex scenario of interpretations of regulations,
compliance methods and documentation procedures for
consequential actions at national authority levels relating to
the standard was undoubtedly “non-standard” for some time.
exporters. They combine to create new risks to the exporter,
ranging from total shipment rejections to expensive (perhaps “Till now, only heat treatment and fumigation are two globally
Call: +971 50 2730020 or E-mail us at charter.sales@midexairlines.ae product damaging) delays in the shipping process. accepted treatments to fight pests in wooden packaging. We
*PS – We offer Regular Charters to Iraq and Afghanistan are trying our best to educate the local export companies
Beginning in October of 2001, the European Union (EU) has and individuals about the importance of getting it done before
implemented emergency requirements to prevent the spread sending international consignments. Even if the treatment
of wood-carried, environmentally harmful pests into Europe. and certification procedures takes time and hurts you pocket,
These restrictions focus on coniferous, non-manufactured it at least saves you the risk of returned or rejected cargo.
PO Box 9636, Dubai, United Arab Emirates Email: mdxdxb@midexairlines.ae wood packaging, including pallets, crates and dunnage And that cannot provide any price advantage,” concludes Mr.
Tel +971 4 2146808, Fax: +971 4 2146809 Website: www.midexairlines.com exported from the United States, Canada, Japan and China. Pramod.

Tightening of security makes compliance Future of Air Cargo Screening

Air Cargo Update also talked to Anthony Beckley, Dubai Hub
to regulation more complex General Manager, DHL Express UAE on air cargo security
and the future of screening. As announced, 100 per cent
screening of air cargo shipments have become a requirement
in several countries. In this new environment, how will airlines
and other air cargo supply chain partners fare?
Beckley believes, “With the tightening of security requirements
in recent times, compliance to regulations has become
complex, difficult and expensive to enforce. The potential
effect on airlines could be that commercial carriers reconsider
the flying of cargo on passenger aircrafts. Commercial
carriers rely on air freight cargo as a filler product to subsidize
and reduce operational costs. Therefore the restriction of this
measures by the authorities will be added to the cargo bill business channel or an inefficient utilization of belly space on
increasing the pressure on business owners. In this vicious commercial flights is likely to have an impact on the price of
cycle, businesses will start to refrain from choosing air cargo commercial air ticket prices”.
for transshipment of their goods and turn to land and sea
transport companies. Air cargo carriers will naturally face loss He adds a decision to restrict air cargo on passenger flights
of income and many smaller players will be out of business as will also lead to a shortage in air freight capacity. Coupled
fixed operating costs are usually very high for airlines. by a general lack of dedicated freighter aircraft in service to
handle airfreight demands of the global logistics industry, this

he air cargo industry has been on a growth track for the loading them would be cumbersome, time consuming and In addition, stringent security measures as instructed by would likely lead to an increase in air freight cost, which in
past six decades. However, it has not been a smooth costly. According to air cargo industry planners, neither in the higher authorities may also limit personal freedom and turn affects the logistics supply chain cost.
ride and several major incidents such as hijacking near future nor by long term plans, the concerned international in some cases privacy is compromised. Extensive body
attempts against passenger and cargo planes caused great partners could totally solve this complicated problem. But, searches and X-ray machines that reveal private body parts Global Harmonized Standards
damage directly and indirectly and affected the bottom-line there are several steps to take to get closer to our objective. have caused uproar both in the East and the West. The UAE When asked about the priority concerns and if there is a
of the industry. government and aviation authorities repeatedly assured the possibility for global harmonized standards, the Dubai Hub
Both security and safety measures should be integrated by public that such X-ray machines will not be deployed at the GM replied, “DHL has been lobbying actively within the
As widely reported in international media, two recent concerned authorities for the purpose of protecting innocent country’s ports. various trade bodies such as the GEA, TAPA, and CAPEC for
explosive device incidents discovered in the region put the lives. This will also prevent the possibility of an aircraft being more government alignment on the introduction of additional
focus once again on cargo security. Obviously, it was a wake- hijacked. Past incidents have shown that an aircraft, in wrong False Alarms security measures. These efforts have met with some success
up call for all concerned authorities and companies reminding hands, could be a huge destroying machine directed against The false alarms also produce negative effects in many ways. especially in Australia and Singapore”.
that anything can happen at any time at any given place. vital ground and sea targets, residential or industrial areas or They cause unnecessary panic among the public and many
government seats. people opt for land, rail or sea travel over air. In order to “Enhanced globally-agreed standards are desirable but
This meant that all parties including airlines and airport/ determine the existence of any threat on board an aircraft or at are sometimes difficult to apply and control due to the
aviation authorities involved in transporting passengers and Tightened Security an aviation facility, authorities and security organizations need implementation costs. All stakeholders also need to come
goods from one point to another had to thoroughly review On one side, tightened measures may discourage any to practice due diligence and take all necessary precautions. to an agreement to collectively support compliance of a new
their procedures and take additional precautions wherever person or group with ill intentions and on the other hand, may Preventive measures may include evacuating all passengers, set of standards. It is also a challenge striking a balance
required. also cause additional inconvenience to air passengers due canceling flight(s), re-checking all passengers and cargo, between having a practical approach in keeping with security
Though it may sound little pessimistic, there are no imminent to longer waiting periods and extensive body and luggage unloading and reloading of all luggage, etc. Obviously, these all benchmarks and maintaining high safety standards that do not
solutions for such threats, mainly against searches. Air cargo will also be scrutinized in detail, which may have negative repercussions and lead to losses in time, energy, impede the flow of trade and movement of goods,” he added.
passenger aircraft result in further delays and thus loss of profits for businesses. efficiency and money. This shows that air transport and cargo
carrying cargo Even though companies would be paying higher charges industry is still a soft target in an economy and unfortunately According to the DHL executive, airlines are accustomed
as screening all for air freight compared to land or sea transport, delays due vulnerable to outside attacks in different formats. to operating in accordance to global standards and
shipments on the to extra security measures will easily offset the benefits of agreements through IATA and ICAO which regulate all
ground before air cargo. Furthermore, the cost of introducing new security In such cases, what is expected from both the government airline operations, including security. In order to provide
and private sector is transparency and timely sharing of protection for the industry, it would be beneficial for all
necessary facts with the public. If satisfactory information is screening guidelines to be drafted and agreed to by
received from competent authorities, there will be no room for all parties involved, as opposed to individual country’s
any rumors which could make things worse. In addition, as it is imposing their own requirements for the industry. There
34 the common practice with many international airports, airlines should of course be stringent screening guidelines and
and companies, an emergency plan should be in hand. The compliance, but the question is really who should be
plan must be revised from time to time and adapt to changes responsible for spearheading this in terms of defining the
in environment, technology and needs of the people. specifications and ensuring implementation.


Fax: +971 6 557 4465 ORCA AIR

UAE signs open

E-mail: sunavia@eim.ae 8-B, 199 St, Maadi, Degla, Cairo, Egypt
Contact Person: Bakhadir Kabirov Tel: +20 2 3519-6545

KSA transportation sector sees steady growth as inbound airborne Designation: Commercial Director
Mobile: +971 50 4826710
Fax: +20 2 35196539
Email: Info@Orca-air.com
Activities: Aircraft Charter & Leasing, Web: www.orca-air.com
shipments touch 289,000 tons, outbound reach 179,000 tons
air services with
Spare Parts Activities: Air taxi and charter services


P.O.Box: 8187, Sharjah Cairo - Egypt
Strong and steady growth in Saudi Arabia’s transportation Tel: +971 6 557 0710 Tel: +2 02 4024449, Fax: +2 02 4032180

Fax: +971 6 557 0495 Email: Info@pas.com.eg
sector and infrastructure investments have led to a significant Email: info@trast-aero.com Web: www.pas.com.eg
Activities: Complete Russian Aircraft Active: Flights chartering
increase in volumes of inbound and outbound commodities. Support Aviation & Military Lubricants,
The Kingdom saw the volume of its airborne inbound Offical Dealer of NYCOSA (France),
Aircraft Tires Etc.
commodities touch 289,000 tons whereas the volume of UNITED ARAB EMIRATES
airborne outbound commodities reached 179,000 tons. The TRANSLIZ AVIATION FZC
P.O BOX: 120648, Sharjah ABU DHABI
growth clearly benefited the corporate sector as well which Tel: + 971 6 557 5037
Fax: + 971 6 557 5038
has been showing impressive results. E-mail: transliz@eim.ae
Contact Person: Alexander
Activities: Providing Leasing & Chartering
Nael Al Attiyat, Sales and Marketing Director, TNT SAB Services for Aircrafts

Express Saudi Arabia commented, “The encouraging UNITRANS

growth in the transportation sector, witnessed through rise P.O Box 7828, SAIF Zone, Sharjah
Tel: + 971 6 5570031
in airborne traffic, is indicative of the strong overall economic Fax: + 971 6 5570027 P.O.Box 60666, Abu Dhabi
Email: unifze@emirates.net.ae Tel : + 971 2 5755000
development in KSA. This sector not only provides critical Commercial Mgr: Aleksadr Smetanin Fax : + 971 2 5562620
E-mail : info@royaljetgroup.com
services to other production and services sectors; it generates Activities: Aircraft charter & leasing for
Website : www.royaljetgroup.com
cargo & Freight forwarding
immense investment and employment opportunities.” Activities: Aircraft charter & leasing
VOLGA DNEPR executive & passenger services, air-
P.O.Box: 8353, Sharjah
craft sales & consultancy services,
Tel: +971 6 5571031
Aviation refueling, weather forecast-
In relation to how this has had a positive effect at TNT SAB Fax: +971 6 5570238
ing services, FBO & MRO services,
Email: vdgsales@emirates.net.ae
Express which is committed to provide world class services marine transportation sectors has been attributed to the ground handling & complete flight
Website: www.vda.ru
Activities: Aircraft charter & leasing for
to its customers Al Attiyat went on to say, “We have seen efforts of the government and the leadership of HRH King cargo & Freight forwarding
growth of 24% in our inbound and outbound shipments, and Abdullah Bin Abdul-Aziz Al Saud, King of Saudi Arabia, and
also saw progressive growth of revenue reached to 22%, in Custodian of the Two Holy Mosques.
2010. IRCRA
TheAUnited FT Emirates represented
Arab AIR PARTNER byPLCthe General Civil
P.O Box: 54371, Dubai
Al Attiyat concluded, “We are confident that the transportation OPER
Aviation AT O R
Authority (GCAA) has signed an open air services
Tel: +971 4 2996866
Fax: +971 4 2996877
KSA also witnessed progressive growth in the number of sector will continue to show impressive growth and this will Memorandum of Understanding (MoU) and initialed an
Email: ap-dubai@airpartner.com
Web: www.airpartner.Com
passengers traveling through its international airports, which be further fuelled by the execution of approved plans. Major Air Services Agreement (ASA)
EGYPT with the Government of
Mng Director: Kevin Ducksbury Activities:
touched 29 million last year. investments initiated in the past few years and additional Montenegro. Aircraft Charter, Brokers, Aircraft Leasing,
ALKAN AIR Medical Evacuation
infrastructural investments in KSA will yield massive economic 2 Messaha Square, Dokki, Gi Egypt
PO Box: 544 EL ORMAN – Giza 12612 ELITE
The strong performance of Saudi Arabia’s air, land, and benefits to the Kingdom in the future as well.” The
Tel: +20 agreement was initialled by
2 37490141 H.E.JETSSaif Al Suwaidi, Director
P.O. Box 54532, Dubai
General of the UAE General Tel:
Fax: +20 2 37499253 Civil Aviation
+971 Authority (GCAA)
4 602 6000
Email: info@alkanair.com.eg Fax: +971 4 602 6006
and Mrs. Mirel Radić Ljubisavljević,
Web: www.alkanair.com.eg Deputy Minister for Air
E-mail: info@elitejets.aero
Activities: Aerial Works, Air Ambulance/
Medevac, RoadFreight
, Charter of Montenegro. Representatives from
Website: www.elite-jets.com
Director of Finance: Baha Qarashi

UAE air traffic Abu Dhabi Department of Transport,


AIRLINES Etihad Airways andaircraft
5 El-Nasr Street, El-Nozha El-Gedida,
Dubai Civil Aviation
Email: baha.qarashi@elitejets.aero
Activities: Aircraft charter services and
maintenance attended the
movements rise 7.6% Cairo, 99301 Heliopolis
Tel: +20 (0)2 623 0401


Fax: + 20 (0)2 623 0401
Email:The two delegations agreed that
agamy2003@link.net TRAVEL any number of designated
in February Web: www.amcairlines.com
Activities: Flights chartering
air services. The UAE delegation
Po.Box: 124535, Dubai
airlines of both parties will haveTel:the +971 right to perform scheduled
4 8854720
Fax: +971 4 8854721
designated Emirates Airline,
E-mail: sales@majestic.aero
Exclusive & Flexible
According to the UAE General Civil Aviation Authority, air Etihad
P.O. Box Airways,
127 Panorama Air Arabia, RAK
Heliopolis,, Airways and FlyDubai as
Web: www.majestic.aero
Commercial Director : Michael Makarius
traffic movements in the country rose by 7.6% in February UAE national airlines under the
Tel: +20 2 2-4070-511 Agreement.
Email: The Montenegro
Fax: +20 2 2-2618-297
Activities: Executive Aircraft Charter,
compared to the same month in 2010. Total air traffic Email:Delegation designated Montenegro
main@wingsegypt.com Airlines as its designated
Management, Sales & Consultancy.
movements during the month stood at 51,431 with a daily
Web: www.wngsegypt.com
Activities: Charter Passenger / Executive, SHARJAH Tel: +971 4 7017 106
average of 1,837 air traffic movements. Dubai came first Aircraft Operator, Leisure / Sight Seeing.

with 23,459 air traffic movements. Over flights stood next at The MoU
full flexibility on
P.O the
Box: routes, capacity, number
9518, Sharjah
Email: aviation@etawestern.com
Tel: +971 6 5573678
Web: www.western-aviation.com
110, El Nil Street, Dokki, Giza, Egypt
10,835, while Abu Dhabi ranked third with 7,665 air traffic of frequencies and types of Fax: aircraft,
+971 6in any type of service
36 movements.
Tel: +20 2 360 5020
Fax: +20 2 360 3939 or cargo). TheCell:signed memorandum also
+971 50 6343588
Em: operation@nationalaviationeg.com Email: kamran@airspeedcharter.net
includes the exercise of fifth freedom
Web: www.nationalaviationeg.com traffic rights. In addition,
Web: www.airspeedcharter.net
Chairman: Captain Yehia El Agaty Managing Director: Kamran Naqvi
both Parties agreed to allow
E-mail: elagaty@nationalaviationeg.com
Activities: non-scheduled
Aircraft Charter & Leasing,
operations between the two countries.
Helicopter Charter & Leasing, Cargo
Activities: Charter Passenger
Aircraft Operator.
/ Executive,
Handling & Logistics A Member of ETA Star Western Group Company

KSA domestic cargo demand to

grow 4% to 5% through 2020
Figures from the Saudi Arabian General Investment Authority
show that the country’s rapid domestic development led
by planned economic cities indicates strong demand for
domestic cargo services. The cities alone could contribute an
additional 86 to 129 million tons per annum or approximately
30% of the expected growth in cargo flow throughout the


Express services companies have been contributing directly
and indirectly to this growth throughout the scores of
transactions they have completed over the past 12 months.
One of the most active companies involved in the express
services sector is expected to gain more than 30% market SEMINAR & EXHIBITION
share in affirmation of the solid growth of the cargo industry
in the KSA.


“The cargo transactions that are playing major roles in M

economic growth are being carried out by key market players Y

within various industries such as construction, automotive, oil

CM Full potential: Airports as a factor of development.
and gas and even education,” explained Nael Attiyat, Sales Join the first show in Latin America totally focused
Cooperation and planning of Brazilian airport
and Marketing Director, TNT SAB Express Saudi Arabia. “In MY
on Airport Infrastructure
addition, factors such as the availability of low-cost fuel, a CY

main element in developing the Kingdom’s express service CMY

industry, are accelerating growth.” K SPEAKERS ALREADY CONFIRMED

Saudi Arabia’s domestic cargo demand is expected to grow Jean-Marie Chevalier (Aéroports de Paris), Miguel Dau (Azul Airlines), Andreas Schimm (ACI), C. W. Lee (Incheon-Seul
by a compound annual rate of between 4 and 5%, while Airport), Fernando Pinho (TAM Executive Jets), Rubens Vieira (ANAC), Anderson Correia (ITA), Sabine Trenk (Lima Airport),
international flows are expected to grow by 5% and between Jaime Parreira and João Marcio Jordão (Infraero), Maria Isabel Castillo (Government of Chile), Jorge Leal Medeiros (USP),
7 and 8% for air and sea cargo, respectively. Paulo Resende (Fundação Dom Cabral), João Batista (Politécnica USP and SBTA), Carlos Ebner and Filipe Reis (IATA).


Egypt’s aviation sector APRIL 26TH TO 28TH | 2011 For more benefits and priority on location of stands or seminar
registration, please confirm your participation in advance:
lost $170m due to Phone: +55 (11) 3032-5633 | E-mail: airportinfraexpo@sators.com.br

The unrest that led to the ouster of the Egyptian president WWW.AIRPORTINFRAEXPO.COM.BR
Hosni Mubarak has resulted in more than EGP1bn ($170m)
in losses for the country’s airline industry. Over 60% of the ORGANIZATION SPONSOR INSTITUTIONAL SUPPORT
losses were recorded by the national carrier, EgyptAir,
while the remainder came in losses at the country’s various
airports, civil aviation minister Ibrahim Manaa said. The
airline was forced to cancel 75% of its flights and to put
38 up some of its newest planes for lease to offset projected

Indian carrier signs largest jet

Airshow 2
order in aviation history

Airbus has said it has won the biggest order in

commercial aviation history, worth $15bn at list price,
from Indian low-cost carrier IndiGo Airlines. The deal
covers 180 eco-efficient Airbus A320 aircraft, of which
150 will be A320neo’s and 30 will be A320s. Available
19 - 21 January 201
Join us for the second Bahrain International Airshow at the Sakhir Air Base in the
from 2016, the A320neo incorporates new more Kingdom of Bahrain. This global aviation event offers a proven platform for high level
efficient engines and large wing tip devices called business opportunities. The inaugural show was sold out, hosting 40 participating
Sharklets delivering significant fuel savings of up to companies, 94 aircraft and visiting delegations from 25 countries. Deals worth
approximately one billion dollars were signed by the international participants.
15%, which represents up to 3,600 tonnes of CO2
annually per aircraft. BIAS in a unique and innovative exhibition that has been tailored
for maximum business return.

“Where the world of

aerospace comes together”

celebrate Asian

Booming demand from Asia is keeping aircraft manufacturers version has won 74 orders from customers including Cathay
happy, with the likes of Hong Kong Airlines and China Eastern Pacific Airways, an Air China affiliate.
Airlines ordering freighters at a rapid pace. China will help
the Asia-Pacific region account for a third of global plane Also this month, China Eastern Airlines, which operates a
deliveries over the next 20 years, Boeing said. Rival Airbus mix of Airbus and Boeing freighters, has revealed a massive
said it expects airlines in Asia to take delivery of 8,560 aircraft expansion plan of 250 extra aircraft by 2015. In four years the
in the next 20 years, representing a third of the global total. fleet will total 588 units comprising 531 passenger aircraft,
40 30 freighters and 27 utility aircraft. As of 30 June 2010, the Don’t miss out - book your presence online today at:
In early March, Hong Kong Airlines agreed to buy six 777
freighters from Boeing. Meanwhile, Boeing’s 747-8 freighter
Shanghai-based carrier operated 338 aircraft, comprising
320 passenger aircraft and 18 freighters. www.bahraininternationalairshow.com
or telephone+44 (0) 1252 532 800
In association with

Dubai Airport Freezone

grows by 23% in 2010

Celebi pumps Dubai Airport Freezone registered an impressive 23%

increase in sales in 2010, as compared to the previous
year, disclosed HH Sheikh Ahmed bin Saeed Al Maktoum,

US$100m into
Chairman of Dubai Airport Freezone.

This growth was driven by the increasing numbers of new

companies and expansion by existing companies working in
the Freezone. Out of the 102 new companies registered in
2010 in the Freezone, 28% are from Europe, 27% from the
Middle East & Gulf region, 21% from Asia and the rest from
the USA, Japan and other countries.

Aviation companies form the largest segment in the Freezone

with 14%, followed by the electronics sector with 11%,
followed by engineering, computer, cargo advisory services
IT has just become the first cargo tenant at Budapest The company is waiting for a new ground handling and consultancy companies.
Airport, and now Celebi Holdings is planting big money in policy, being opposed by the airlines in India, to meet HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of
India. The Turkey-based airport services provider intends approval soon. The policy allows only three ground Dubai Airport Freezone, was pleased with these results. He
to invest US$100 million in handling cargo at Delhi (right) handlers at the six major airports of Bangalore, underlined the achievements and growth rates accomplished
and Mumbai airports by 2013. This complements the $30.2 Chennai, Delhi, Hyderabad, Kolkata and Mumbai, and in Freezone during 2010, despite the economic challenges
million injected into India to date. Celebi also plans to double restricts airlines to carry out certain aspects of ground faced by the global and local economies. HH Sheikh Ahmed
its workforce in the country in the next five years. handling. was also certain about Dubai Airport Freezone’s ability to
overcome all the economic challenges and achieve the goal
of sustainable development in the coming years.

Hong Kong air freight “The achievements in the past years are part of the unique
strategy of the Freezone. The Freezone will continue to sustain

takes new year holiday performance, quality and development, helping it to enter the
foreign markets in future, which is one of the objectives and
priorities. We aim to achieve 20% growth in sales by the end
Cargo tonnage via Hong Kong International Airport (HKIA) of this year as compared to last year,” he said.
saw a year-on-year decline in February as the Chinese New
Year holiday disrupted supply chains.
Abu Dhabi terminal
Stanley Hui Hon-chung, CEO of Airport Authority Hong Kong,
said the airport handled 242,000 tonnes in February 2011, tender floated
down 5.9% compared with a year earlier.
Abu Dhabi Airports Co (Adac) has floated a tender for a
“The combined cargo volume for the first two months of “midfield terminal” to become the home of Etihad Airways
the year showed a year-on-year growth of 3.1% reaching and more than 50 other airlines serving the Abu Dhabi
575,000 tonnes,” he added. International Airport later this decade, The National has
reported. The 700,000 sq m terminal building will have
“This was driven by the strong performance of import and an initial capacity of between 27 million and 30 million
transhipment. Strong momentum continued with the North passengers a year, and will accommodate 156 check-in Beirut airport sees 9.4% drop in
America market as it saw double-digit year-on-year growth in counters, up to 65 boarding gates for aircraft as large as the
the same period.” Airbus A380 superjumbo, and up to eight airline lounges. traffic
The entire MTB project is estimated to cost between Dh20
42 On a rolling 12-month basis, HKIA handled 4.1 million tonnes billion (US$5.44bn) and Dh30bn, and is scheduled for Lebanon’s Rafic Hariri International Airport has seen a 9.4%
of cargo, an increase of 18.6% over the corresponding completion by 2016, Adac said. fall in passenger traffic since February of last year. Cargo
period last year. Flight movements also registered a growth movement also dropped with outbound and inbound import
of 11.8%, reaching 312,530. cargo dropping by 22.07% and 19.29%, respectively.

Saudi to get new airports

“These achievements are not limited to the construction of
new airports and the development of existing airports but
also include other activities such as security, safety and
regulations governing the work in this vital sector. Added to
this is the air navigation which includes complicated systems
and projects.”

He said a series of developmental projects are being

carried out at the country’s airports. The cost of these 34
developmental projects is SR2.5 billion. Some of these
projects have already finished.

He said the new project of King Abdul Aziz International

The general authority of Civil Aviation (GCAA) has completed Airport in Jeddah will increase the airport’s accommodation
preliminary designs for the first generation of airports to serve capacity and that the SR27 billion project will finish in three
small populations across the country, said Engineer Abdullah years’ time. The foundation stone for the project was recently
Rahaimy, President of GACA. laid by Prince Sultan Bin Abdul Aziz, Deputy Prime Minister,
Defense and Aviation Minister and Inspector General.
He said the first of these airports will be built in Qunfudha. The
money for the construction has already been included in the Rahaimy said arrangements are underway for the construction
authority’s budget for the year 2011 to 2012. of Prince Muhammad International Airport in Madina according
to the BOT “Buy, Operate and Transfer” system.
He said studies are underway to build such airports in other
regions with a lower population density. Rahaimy said a new He said the new airport has been designed to accommodate
airport named “King Abdul Aziz Airport” will be constructed eight million passengers during the first phase and 12 million
in Jizan at an approved site. The allocation for the airport’s passengers in the second stage. The project will be offered
general plan has been approved. The airport will include all the for public bid in the middle of this year.
necessary infrastructure. He said the Kingdom has witnessed
unprecedented modernization of infrastructure, equipment, He said GACA is currently working on the master plan for
telecommunication systems and other installations. the development of King Khled International Airport in Riyadh.

Saudi Airport set to New Dubai Airport

build luxury lounge opening delayed again
Saudi Arabia’s King Khaled International Airport (KKIA) is to Paul Griffiths, chief executive of Dubai Airports has
build a new lounge for first and business class passengers, said the opening of the passenger terminal at Dubai’s
Arab News has reported. The new facility at Riyadh’s airport new airport will be further delayed to 2012, Reuters
is to be constructed at Terminal 1 to serve around 140,000 has reported. The opening of the Al Maktoum airport,
departing and arriving foreign airline passengers annually. estimated to cost around $34bn, to passengers had
The airport is also in talks with Saudi Arabian Airlines to put been previously moved back to the last quarter of
up similar lounges at Terminals 2 and 3 for international and 2011 from March. “Over the next year or so, we are
domestic passengers, KKIA director general, Abdullah Al- adding larger aircrafts and higher passenger numbers,”
Tassan said. Griffiths told the news service. “It (Al Maktoum airport)
44 will become a scheduled passenger and cargo airport
during 2012.”

Emirates Gulf Air launches service

to Basra
is now world’s third largest carrier Bahrain’s Gulf Air has started its service to Basra in Iraq
with four weekly flights. The carrier will operate four weekly
flights using Embraer and Airbus A319 aircraft that offer
Falcon Gold class and Economy Class.

Turkish Airlines orders

3 aircraft
THREE is the magic number. Turkish Airlines has
signed an order for three A330-200 freighters to add
to its existing A330-200F and four A310 freighters. The
airline has a further 27 aircraft on order with Airbus from
contracts placed in 2009 and 2010. Turkish Airlines has
also signed an order for 10 passenger aircraft

Oman Air to offer services to

Khartoum and Moscow
Oman Air plans to launch two new services to Moscow
and Khartoum during the second quarter of this year, and
is set to receive three new jets by next May, Times of Oman
has reported. The carrier will use its 150-seater Boeing
737 aircraft on these two new routes, but could “also
use Embraer 175 (72 seats) in these two destinations,”
chief corporate affairs officer, Philippe Georgiou, said.
The airline will be receiving two Embraer 175 planes this
month and another Airbus A330 200 later in May, he said.
Oman Air placed orders for five Embraer aircraft and these
are the first two to join the fleet, while Airbus plane is the
last one on order, Georgiou said.
With 144 aircraft in its fleet, Dubai based Emirates Airline has growing 4.7 and 3 per cent, respectively. Emirate’s rise up in March 2010 to 16th this year with 8.3b ASKs. Ryanair is
just become the world’s third largest airline has just become the capacity charts comes thanks to the airline’s decision the third fastest growing carrier of the global Top 25, with an
the world’s third largest airline by capacity, overtaking US to use only the world’s largest planes. Emirates already has 18.3 per cent increase in capacity scheduled for this month, Jazeera Airways adds more
carrier United and behind only Delta and American Airlines, 15 Airbus A380 superjumbos in its fleet, with a staggering behind Turkish Airlines (+21.9 per cent) and Qatar Airways
according to the latest data from schedules provider, Innovata. 75 more to come - plus 53 stretched Boeing 777-300ER (+20.3 per cent), which are also surging up the rankings of flights to summer schedule
Emirates will produce 16.9 billion available seat kilometres aircraft, with 49 of those still to be delivered from Seattle. the world’s biggest airlines.
(ASKs) in March 2011, up 9.9 per cent year-on-year, while The enormous growth spurt that 75 A380s and 49 777- Kuwait’s Jazeera Airways has added more flights to
United’s capacity is easing 0.6 per cent to just under 16b 300ERs will bring are expected to add a further 60,000 Japan Airlines will soon exit the top flight, falling from 16th to its summer schedule to include flights to Istanbul and
ASKs, according to Innovata. seats to Emirates’ capacity. And that’s not even counting 25th over the past year, thanks to a 22.1 per cent year-on- additional flights to Dubai, Jeddah, and Damascus.
the 70 big Airbus A350s. year reduction in ASKs to 6.1b. Starting March 27, the carrier has launched four flights
Delta Air Lines and American retain first and second rankings, per day on Thursdays and Saturdays, two flights a week
with 28.4b and 21.8b ASKs, respectively, while Southwest Emirates also has a capacity advantage in comparison The Top 25 carriers account for 50.8 per cent of global to Istanbul, six daily flights to Jeddah, and two additional
46 Airlines rounds out the Top 5. with other airlines because of Dubai’s strategic geographic capacity, down from 51.7 per cent in March 2010. As a flights to Damascus, bringing to 14 the total number of
location, which acts as a hub for its flights between Australia group, they are increasing capacity by 6.7 per cent, slightly flights to the Syrian capital.
British Airways has reclaimed ninth position from rival Air and Europe, Africa and the Middle East. Other notable below the 8.6 per cent year-on-year surge in global capacity
France with 12.7b and 12.6b ASKs this month, respectively, movers include Ryanair, which has risen from 20th place this month.

Etihad Airways and the Engine

Alliance Finalize GP7200 “For a groundbreaking solution,
we went underground.”
Engine and Fleet Management
Etihad Airways and the Engine Alliance have signed agreements
for the purchase of the GP7200 engines to power its fleet of
10 Airbus A380 aircraft and for a long-term Fleet Management
Agreement for the maintenance, repair and overhaul of the
engines. The agreements are worth up to $1.5 billion (USD).

“The Engine Alliance is proud to confirm Etihad as our

customer and to provide a comprehensive support program
to fulfill Etihad’s service needs,” said Engine Alliance President
Mary Ellen Jones. “Under this program, we will help Etihad
James Hogan, Etihad Airways’ Chief Executive and Mary Ellen Jones, Engine Alliance Presi-
keep its GP7200 engines in optimum condition to enable dent, sign the GP7200 Engine and Fleet Management Agreements at Etihad’s head office
complex in Abu Dhabi.
them to operate reliably at the lowest cost possible.”

James Hogan, Etihad Airways’ Chief Executive Officer, said:

“The GP7200 engines, provided by the Engine Alliance in The Engine Alliance is a 50/50 joint venture of General
this agreement, will offer significant fuel efficiencies and cost Electric (NYSE:GE) and Pratt & Whitney, a unit of United
optimisation for Etihad’s first Airbus A380s when they enter Technologies Corp. (NYSE:UTX). The GP7200 is the result
our fleet from 2014. of innovations to the combined technologies of its member
companies’ most successful wide-body engines: the GE90
“The operational, environmental and economic factors of the and the PW4000. The GP7200 utilizes the lessons learned
GP7200 engines are ideal for the A380 and these aircraft and from more than 25 million flight hours of successful operation
engines will play a crucial part in Etihad’s ambitious expansion with these legacy engines and incorporates new technology
plans over the coming years.” to produce the quietest, most fuel-efficient engine for the
A380. The GP7200 is certified at 76,500 pounds (340 kN)
The GP7200 engine is the leading engine for the Airbus A380 of thrust and has the capability to produce more than 81,500
aircraft with 19 GP7200-powered A380s in service and 109 pounds (363 kN). Its emissions are well below current and
more on order. Emirates and Air France currently operate anticipated regulations.
GP7200-powered A380 aircraft. Other GP7200 customers
include Korean Air, which will begin operating the A380 in GP7200 Engine Program participants include SNECMA
June, Air Austral and International Lease Finance Corporation (France), Techspace Aero (Belgium) and MTU Aero Engines
(ILFC). (Germany).
Cavotec helping to improve sustainability
Wataniya Airways halts Tarmac congestion. Pollution. Cable clutter. Long turnaround times. These are what
inspired us to develop our unique underfloor ground support system. It consists of pop-
operations up units located near or under parked aircraft – and can be connected to an underground
tunnel, for truly efficient delivery of water, air, power, fuel and other services. The result?
Kuwait’s Wataniya Airways has decided to cease all operations A cleaner tarmac, cleaner air, and a big increase in productivity. For more about our
of the airline as of March 16, due to financial difficulties. The ground support solutions, please visit www.cavotec.com
decision, which followed the return of the last scheduled
flight to Kuwait International Airport, was taken against the
Cavotec’s pop-up units can deliver any range of
backdrop of lack of proper grounds for commercial operation services – from air and water, to fuel and power
and the regional political and security instability which affected – and then retract back into the tarmac when not
in use.
the competitiveness edge of the company, the carrier said.
48 The airline’s board of directors called an emergency general
assembly meeting “as soon as possible to study the options
for overcoming the current financial difficulties,” Wataniya said.
The Cathay Pacific airline group
saw cargo revenue increase
by more than 50% last year as
profits hit record heights
Group profits almost tripled to HK$14 billion (US$1.8bn) after
total revenues increased 33.7% to HK$89.5 billion. Cargo
revenue hit HK$25.9 million as freight carried by Hong Kong-
based sister carriers Cathay Pacific and Dragonair increased
18% to 1.8 million tonnes.

Cathay, which has displaced Korean Air as the world’s largest

international air cargo carrier, said capacity had increased by
15% as freighters were brought back into service after being
parked in the desert during the downturn.

The group said: “Despite this substantial increase in capacity,

the strength of demand was such that our load factor
increased by 4.9 percentage points to 75.7%. Demand in all
key markets was strong, especially so in the peak season of
RAK Airways eyes additional October and November. This was reflected in yield increasing
by 25.3%.”
Jeddah flights
Cathay has also now been given formal approval by Mainland
RAK Airways is examining the possibility of increasing the China authorities to form a cargo joint-venture with Air
frequency of its Jeddah flights to meet high passenger China. The two airlines are in the process of completing the
demand- particularly from Calicut . necessary paperwork to enable operations to commence
with subsidiary Air China Cargo as the platform for the joint-
A group of travel agents representing 17 travel agencies from venture.
across Calicut recently visited Ras Al Khaimah as part of RAK
Airways initiative to generate awareness about its new visa
services package, which aims to promote tourism into Ras
Al Khaimah. Flydubai opens new Egypt route
In addition to experiencing Ras Al Khaimah’s landmarks which
included the WOW RAK theme park; Golden Tulip Resort
Khatt Springs; the Hajar mountain range and Banyan Tree Al
Wadi, travel agents also met with RAK Airways CEO, Omar
Jahameh and highlighted the market demand for additional
flights to Jeddah due to a surge in traffic between Calicut and
Saudi Arabia’s business hub.

RAK Airways CEO, Omar Jahameh said, “RAK Airways has

seen a steady increase in demand for passengers wanting
to fly between Calicut and Jeddah; we currently operate four
flights a week to Jeddah however we are looking to increase
our service on this busy route so our Keralite passengers
traveling to Saudi Arabia on either business or for Umrah
and Haj can take advantage of more frequent, convenient
connections.” Flydubai has announced a new service between Dubai and
50 the popular gateway city of southern Egypt, Sohag. The new
RAK Airways recently introduced a visa services package for route replaces the low-cost airline’s current service to Assiut,
passengers flying into Ras Al Khaimah from India; the package and is in response to customer demand, Flydubai said. Flights
starting from AED 1200 includes a visitor visa and return airfare will begin on April 6, 2011, and will operate twice a week on
and can be availed through any RAK Airways office. Wednesdays and Sundays.

Fedex Accelerates 757 Shift

RECYCLING has its benefits. The world’s largest cargo
airline FedEx will buy 18 used 757s and convert them into
freighters by May 2012.

The 757s can carry 20 per cent more freight while burning
a third less fuel than the three-engine 727s (right) they
replace.Purchase prices are estimated at around US$10
million each, with a $5 million conversion cost. Sellers
include International Consolidated Airlines Group, British
Airways, Saudi Arabian Airlines and UK charter carrier
Thomson Airways.

The 757s, which add to the 48 FedEx has now, are about
20 years old on average. They have a maximum operational
revenue payload of 45,800 pounds, compared with 38,200
pounds for a 727.

Lufthansa Cargo Encourages Fuel savings in a

Green Fuel Trials microscopic coating
SINCE 2008 airlines including Japan Airlines, Air New An ultra-thin polymer layer applied to an aircraft fuselage
Zealand and Continental Airlines to name a few, have could reduce fuel consumption by 1 to 2 percent.
operated test flights partly fuelled by biofuel – a fuel created
by blending oily plants such as camelina, jatropha and algae The first commercial airline to test out the revolutionary
with kerosene. Now Lufthansa and its cargo subsidiary are nanotechnology is low-cost carrier EasyJet, but the US
beginning their own environmentally-friendly fuel tests. military has been using an earlier version of the coating as a
surface protectant for 20 years.
On 1 March Lufthansa Cargo held its Cargo Climate Care THE FIRST & ONLY
Conference in Frankfurt as a means to promote the use of biofuel. The one-micron thick film adds only four ounces to the weight INDEPENDENT MAGAZINE
of a typical aircraft, claims manufacturer TripleO. It cross- COVERING AIRLINES, AIRPORTS &
“Lufthansa Cargo did not back away from its responsibility to links and bonds with the paint surface, filling in microscopic SERVICE PROVIDERS RELEVANT
environment protection, even as we had the worst recession in cracks and reducing the buildup of debris to reduce drag by TO AIR CARGO INDUSTRY IN
post-war history, and did research and deploy lighter aircraft,” a claimed 39 percent. 3 GLOBAL MARKETS IN THE
Karl-Heinze Koepfle, chairman of Lufthansa Cargo, said. EMERGING ECONOMIES
In its re-engineered form, the coating produced impressive
Lufthansa passenger flights will begin a six-month trial in results on a Hawker 400XP business jet. The manufacturer
April running one engine on a 50 per cent blend of biofuel. is also understood to be investigating the application of the
Its cargo division eagerly awaits the results. coating direct to aero engines.

Joachim Buse, vice president of Aviation Fuel at Lufthansa, A spokesman for easyJet said, “We’re forensically analysing
is keen to avoid the use of edible crops as feedstock for its everything that can save weight and fuel.”
biofuel endeavour. “We do not want to become a competitor
for the food sector.” The airline has reduced weight onboard with lightweight
carpets and plans to introduce thinner, lighter seats in the
Lufthansa has applied to the German authorities to fly aircraft cabin. Pilots routinely taxi using one engine.
with biofuel. “This would be the first time an aircraft would
fly [using] biofuel. We will operate an A123 aircraft on a six- Carolyn McCall, easyJet CEO, said, “Efficiency is in our
52 month trial basis and thereafter review the situation. Six DNA. If we can find new ways of reducing the amount of
scientific institutes will be involved in closely monitoring the fuel used by our aircraft, we can pass the benefits on to our
A123 flights with biofuel,” Buse said, adding the process of passengers by offering them low fares and a lower carbon
obtaining a permit is in the final stages. footprint.”
Tel: +971 6 557 9579, Fax: +971 6 579569, PO Box: 9604, SAIF Zone, Sharjah - UAE
Email: info@7dimensionsmedia.com, www.7dimensionsmedia.com

Etihad appoints chief Strategy

and Planning Officer
Etihad Airways has appointed Kevin Knight as the airline’s
Chief Strategy and Planning Officer. Based in Etihad’s
head office in Abu Dhabi, Mr Knight will be responsible for
a range of key business areas, including pricing, capacity
and revenue management, route and network planning and
aircraft acquisitions. He will also lead Etihad Crystal Cargo.

James Hogan, Etihad Airways’ Chief Executive Officer, said,

“This is an important role, and one that shapes our overall
business strategy and growth plans. Kevin will play a lead
role in guiding Etihad through the next stage of its business
transformation, including strengthening the airline’s strategic Planning. He previously held roles with Northwest Airlines,
alliances and acquisitions, which are pivotal to the long-term, where he was Director of International Planning, and Republic
continued success of our airline.” Airlines.

Mr Knight has more than 30 years’ experience in the airline Mr Knight holds a Masters of Business Administration (MBA)
industry, including business development, strategic planning degree from the University of Utah, and a Bachelor of Science
and operations. He joins Etihad from United Airlines, where Degree in Business Administration from Westminster College,
he worked for 17 years, the last four as Senior Vice President Utah.

Etihad gets new Boeing names new chief of

operations for Middle East
senior vice president
US-based airplane maker Boeing has named Jeffrey John-
Americas son as president of its Middle East operations. Johnson will
be based in Dubai, and report to Shep Hill, president of Boe-
ing International and senior vice president of Business De-
Geert Boven has come velopment and Strategy, the company said in a statement.
on board as Etihad’s
Senior Vice President
Americas. He will be the airline industry will be invaluable to Etihad as we expand
based in New York and our presence beyond New York, Chicago and Toronto in the
responsible for all Etihad’s important Americas markets.”
current operations in the
US, Canada and South Mr Boven takes over from Robin Middleton, who has moved
America. to Australia as Manager Alliance Sales to look after Etihad’s
commercial interests in its partnership with the Virgin Blue
Mr Boven brings a wide Group.
range of airline and travel
experience to the role, Today, Etihad operates over 17 services per week from Abu
having previously held Dhabi to the Americas, including non-stop daily services to
senior management and board positions with KLM Royal John F. Kennedy Airport in New York and O’Hare Airport in
Dutch Airlines, Martinair and Oad Group. He was previously Chicago, and three times a week to Pearson International
Executive Vice President Sales and Services and Executive Airport in Toronto, Canada.
Vice President Customer Services and Airport Operations at
54 Etihad and was most recently Managing Director of Amadeus Mr Boven said: “I am very pleased to be given the opportunity
Gulf. to represent Etihad, one of the fastest growing and most
James Hogan, Etihad Airways’ Chief Executive Officer, dynamic airlines in the world, and look forward to helping build
said: “Geert’s extensive senior management experience in the brand and expand sales and operations in the Americas.”