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The Trade Magazine for the Asia-Pacific & Middle East Regions Vol. 32, No. 6, June 2016

Charting a new course

DHL opens cutting edge Singapore facility

Alibaba under pressure over fakes

www.payloadasia.com Freighter Supplement

 F R O M T HE ED IT OR

An eye on the radar

The Air Cargo Magazine for the Asia-Pacific Region

Vol. 32, No. 6, June 2016

T
here seems to be not a day that goes by that another set of data
Publisher comes out looking pretty much the same as the data that preceded
Annie Tan Email: annie.tan@contineomedia.com
it a month earlier. Its tempting to call it depressing, but I think
EDITORIAL any sense of depression in the industry has long since been replaced with
Editor weary numbness.
Donald Urquhart
Tel: +65 6521 9760 Email: donald.urquhart@contineomedia.com But one other thing is clear the industry as a whole knows the
heady days of yore are gone, most likely for good and the age-old ways of
Contributors
Wong Joon San in Hong Kong, Manfred Singh in India, Michael conducting business just dont fly anymore in this super interconnected Internet world. Every
Mackey in Bangkok and Heiner Siegmund in Germany. single industry conference these days touches on many of the breaking trends.
It does show that the industry, at least in a small way, is embracing the change that is
SALES & AD ADMIN happening all around at an increasingly breakneck speed. Figuring out exactly how these new
Assistant Sales Director
Susan Ng trends can be tapped by an industry notoriously slow at adapting is the real challenge.
Tel: +65 6521 9773 Email: susan.ng@contineomedia.com One industry resource well worth checking out is DHLs 2016 Logistics Trend Radar. It is
Marketing Executive basically how DHL sees 26 key trends coming between now and the next five years and then
Michelle Chee Email: michelle.chee@contineomedia.com
between five and 10 years.
Ad Admin Executive There are of course some familiar faces in DHLs list, which it breaks down into Technology
Chan Koe Shan Tel: +65 6521 9748
Email: koeshan.chan@contineomedia.com Trends and Social & Business Trends. Within the next five years on the tech side of the equation
DHL sees big data, low-cost sensor technology, cloud logistics, augmented reality, the Internet
PUBLISHING SUPPORT of things, robotics & automation all being key trends. Further out to a 10 year horizon it lists
Editorial Production Manager bionic enhancement, digital identifiers, self-driving vehicles, 3D printing, unmanned aerial
Pauline Goh Email: pauline.goh@contineomedia.com
vehicles and self-learning systems.
Graphic Designer
Olive Chan Email: olive.chan@contineomedia.com
On the other, social and business side, DHL sees convenience logistics, fair & responsible
logistics, de-stressing the supply chain, smart energy logistics, multi-purpose networks and
Circulation Manager
Ophilia Leung Email: ophilia.leung@contineomedia.com shareconomy logistics as key trends in the near five term timeframe. Looking up to a 10 year
Circulation Executive
period it sees grey power logistics, tube logistics and batch size one.
Ficus Zheng Email: ficus.zheng@contineomedia.com According to DHL artificial intelligence and personalisation are behind several of the most
Web Operations Executive transformational trends of the 2016 report including intelligent supply chains that use self-
Franco Nelo M. Sevilleja Email: franco@contineomedia.com learning or machine learning systems.
Web & Database Specialist The impact of data-driven and autonomous supply chains provides an opportunity for
Chew Kee Min Email: keemin.chew@contineomedia.com previously unimaginable levels of optimisation in manufacturing, logistics, warehousing and
last mile delivery that could become a reality in less than half a decade despite high set-up
FINANCE
Finance Manager
costs deterring early adoption in logistics, the global logistics giant said.
Kenny Yeoh Email: kenny.yeoh@contineomedia.com It added, on the social and business side that batch size one and on-demand delivery are
set to have a big impact on logistics, on-demand delivery will enable consumers to have their
CEO
Raymond Wong Email: raymond.wong@contineomedia.com purchases delivered where and when they need them by using flexible courier services.
The batch size one concept in which its envisaged that highly personalised products will
eventually go head-to-head with mass production over the next 20 years, is an interesting area
that hasnt seen much discussion as yet.
A batch size of one would lead to decentralised production and rapidly changing supply
chains that will require logistics providers to be fast and flexible to react to changes in time
Contineo Media Pte Ltd
61 Ubi Avenue 1, #0517, UB Point
and place of production, DHL said.
Singapore 408941 I think its safe to say that all involved in the logistic industry would do well to heed these potential
Tel: +65 6521 9777
Fax: +65 6521 9788 trends. As DHL notes, 15 of the 26 trends are likely to make an impact in under five years and as
such it is crucial that anyone involved in supply chain management and logistics understands these
potentially game-changing developments and the implications for their own business or sector now.
Printer: KHL Printing Co Pte Ltd
For more on DHLs 2016 Logistics Trend Radar you can check out the Payload Asia website
or go to www.dhl.com/trendradar.

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C O V ER
Federation of Asia Pacific Aircargo Associations as
official publication for FAPAA news.
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Charting a new course
Singapore 408941. All rights reserved. Please address all
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non-qualified subscribers, please contact Circulation department
at circulation@contineomedia.com. Lufthansa Cargos recent agreement with Cathay Pacific on far
Payload Asia is published monthly by Contineo Media Pte Ltd,
reaching cargo cooperation, between the largest cargo hub in
61 Ubi Avenue 1,#0517, UB Point, Singapore 408941. Material Europe and the largest in Asia and indeed the world, is the latest
in Payload Asia is copyright and may not be reproduced in any DHL opens cutting edge Singapore facility
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form without the written permission of the editor.
the changing market. Donald Urquhart reports.
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www.payloadasia.com | June 2016 1

GATE W AYS
(l-r) Mark Sutch, general manager marketing & sales Cathay Pacific; Simon Large director cargo, Cathay Pacific; Peter Gerber, CEO and chairman of the
Executive Board of Lufthansa Cargo; and Bernhard Kindelbacher, senior VP strategy, subsidiaries & business development, Lufthansa Cargo.
CHINA
Cathay, Lufthansa join
forces in new cargo
agreement
Cathay Pacific Cargo and Lufthansa
Cargo have signed a far reaching cargo
cooperation agreement to provide
customers with a larger and faster joint
network on routes between Hong Kong
and Europe from early next year.
Describing the agreement as a highly
integrated bilateral cooperation, the
two carriers said they will work closely
together on network planning, as well as
sales, IT and ground handling. This will
bring Hong Kong, the worlds busiest air
cargo hub, closer to Europe, strengthening
one of the worlds great trade lanes, the
duo said.
Aside from the benefits of more direct
connections, greater flexibility and time
savings, the cooperation will also focus
on service enhancements, with customers
being able to access the entire joint
network via the booking systems of both
partners, for example. Joint handling,
initially at the Hong Kong and Frankfurt
hubs, will also make things easier for
customers since there is just one point
for export drop off and import delivery.
Both partners plan to transport the
first shipments under the cooperation
framework from early next year initially
from Hong Kong to Europe. The ability
to also book eastbound shipments from
Europe to Hong Kong will then follow in
the course of the year.
2 PAYLOAD ASIA | June 2016
Speaking at the signing ceremony in
Frankfurt today, Simon Large, director
cargo at Cathay Pacific said: Our joint
network will cover more than 140 direct
flights per week between Hong Kong and
13 European destinations.
Cathay Pacifics large number of
direct connections to multiple European
destinations fits perfectly with Lufthansas
strength in Frankfurt, the most important
European air freight hub, and in Europe
through its dense feeder-network.
Noting the efficiency gains for customers,
Peter Gerber, CEO and chairman of the
Executive Board of Lufthansa Cargo said:
By joining forces, customers gain access
to unique flexibility with more flights to
choose from and a combination of feeder
and direct flights. In this way their cargo
can reach its destination hours earlier. We
will also have more options for shipments
which have to be transported by freighter
due to their size or properties.
The joint activities will be carried out
in full compliance with all applicable laws,
including the competition rules of the
European Union and Hong Kong, the two
carriers added.
This latest tie-up follows Lufthansas
agreement with United Airlines to partner
on routes between the US and Europe late
last year, and a slightly earlier joint venture
with All Nippon Airways (ANA) on routes
between Europe and Japan.
SF Express gets approval
for Wuhan hub
SF Express, the largest private express
logistics firm in China, is set to build
cargo air hub in central China after an
airport site-selection report was approved
by Civil Aviation Administration of
China (CAAC).
A freight airport is expected to be
built at the town of Yanji, about 75 km
east of Wuhan, the capital of central
Hubei province, according to a China
Daily report.
The choice of the airport in Yanji
enables it to cover most of the mainland
within one-and-a-half hours of air travel
time. The new airport is slated to eventually
have an annual capacity to handle five
million tonnes of freight and become the
fourth-largest cargo airport in the world.
Industry observers believe the hub, if
completed, has the potential to serve SF
Express in China the way Memphis serves
FedEx or UPS in the US.
The Shenzhen-based SF Express Group
now holds the dominant position in the
countrys domestic air cargo market,
accounting for 20 per cent of the total
China market. SF Express currently has 19
freighters, leases another 20 and its target
is to own 100 aircraft by 2020.
SF Airlines currently operates 31
aircraft, including two B767-300BCFs,
sixteen B757-200Fs, three B737-400Fs,
and ten B737-300Fs. It also has at least ten
more P2F conversions (including B767s,
B757s, and B737s) on order.
YTO Express eyes
widebody freighters
Alibaba-backed Shanghai YTO Express
(Logistics) Co, Chinas third largest
express-delivery company is planning
GATE W AYS
In February of this year, the company placed a
firm launch order for ten B737-800BCFs from
Boeing, with options for 10 more.
to introduce at least three widebody
freighters to its fleet in 2018 as it seeks
to expand its international delivery
operations, its chairman said on Monday,
according to a China Daily report.
YTO Express chairman, Yu Weijiao
said the freighters will support the
companys overseas parcel delivery
ser vice, cross-border e-commerce
business and temperature-controlled
supply-chain delivery services. YTO
Express delivered 3.3 billion parcels and
documents domestically last year, a 30 per
cent rise over the year before.
There is growing demand for fast and
efficient international express services
between Chinese manufacturers and
foreign buyers, especially in emerging
markets such as Africa, the Middle East
and South America, Yu was quoted as
saying. The Hangzhou-based company
also aims to help high-tech Chinese
companies such Lenovo Group Ltd, ZTE
Corporation and Huawei Technologies Co
Ltd ship more products and parts to these
fast-growing emerging markets.
YTO is currently preparing an
application for the supplementary
international operations, which it will
file with the Civil Aviation Administration
of China (CAAC) by the end of August.
Although no mention has been made
of what type of aircraft these three
widebodies might be, industry sources
have suggested the most likely first
step into widebody freighter operations
would be with B767s. YTO currently
operates two B737-300Fs, and charters
five additional freighters, in addition
to utilising belly space on domestic
passenger aircraft.
In February of this year, the company
placed a firm launch order for ten B737-
800BCFs from Boeing, with options for
10 more. The first of these will only be
www.payloadasia.com | June 2016
delivered in 2018, but YTO will continue
to add B737 Classics to its fleet. The
carrier is said be targeting eight aircraft
in its own livery by the end of this year.
With a staff of more than 260,000
employees, 32,000 vehicles and 82
transit centres in more than 100 Chinese
cities, YTO Express is the third Chinese
express shipping company to have its own
freighters, along with China Posts EMS
and SF Express.
YTO Express opened branches in
South Korea, Japan and Russia and
Zimbabwe earlier this year, and plans to
set up a total of 18 regional branches with
warehouse and transit centers in priority
markets such as Australia, New Zealand,
Hong Kong and the United Arab Emirates
by the end of the year.
Many opportunities come from
Chinese consumers soaring purchasing
power and their application of information
technology, as well as urbanisation, which
have pushed the countrys express delivery
sector onto a par with more sophisticated
and segmented markets, said Yu in the
China Daily report.
Tianjin Air takes delivery
of first widebody
Tianjin Airlines announced last week
the arrival of its first widebody aircraft,
an A330-200, bringing the carriers fleet
to 89 aircraft. The aircraft underwent
two days of demonstration flight before
commencing commercial operations on
9 May, serving Tianjin-Kunming and
Tianjin-Chengdu routes.
From 6 June the aircraft will operate
intercontinental services to Moscow and
London, making Tianjin Airlines the
fourth Chinese carrier flying to London,
following Air China, China Southern
Airlines and China Eastern Airlines.
Throughout this year, Tianjin Airlines
is scheduled to take delivery of 15 aircraft,
including at least three A330s, while it
retires four Embraer 145 aircraft. It is
also planning to introduce a four times
weekly link to Vancouver from this
summer routing Chongqing Tianjin
Vancouver once it receives its second and
third A330s.
Executive chairman and president
Liu Lu said the carriers future will rely
on Tianjin Airlines and its parent, Hainan
Airlines Groups ability to integrate
resources, gradually shedding Tianjin
Airlines regional aircraft as it forms
an all-Airbus fleet of A350, A330 and
A320 aircraft.
Over the next five years, Tianjin
Airlines will introduce at least 10 A330
wide-body aircraft, Liu said. Following
the upcoming opening of Moscow and
London routes from June, Tianjin also
plans to open Los Angeles, San Francisco,
Melbourne, Phuket, Ulan Bator and other
international routes.
Tianjin Airlines operates to more than
100 destinations throughout China from
its Tianjin hub including: Dalian, Guiyang,
Haikou, Nanning, Sanya, Tianjin, Urumqi,
Hohhot and Xian.
China Eastern orders 20
A350s, 15 B787s
China Eastern Airlines has signed a
purchase agreement with Airbus for 20
A350-900 aircraft, making the airline the
latest customer for the aircraft.
The introduction of A350 XWB will
play a very important role in promoting
our operational capability, profitability and
service brand on our international long
haul routes and opening a new chapter in
the international development of China
Eastern Airlines, said Liu Shaoyong,
chairman of China Eastern Airlines.
China Eastern Airlines operates one
of the largest Airbus fleet in the world
with nearly 300 Airbus aircraft in service,
comprising A320 Family and A330 Family.
The carrier has also placed orders for
15 B787-9 Dreamliners saying the new
aircraft will enable it to add more flights
to destinations in Europe and North
America.
The addition of these next-generation,
fuel-efficient airplanes will play a key role
in supporting China Easterns strategy for
international expansion, and enable us
to realise profits in point-to-point routes
across the Pacific Ocean, and between
China and Europe, said Liu.
China Eastern said it would use the
Dreamliners to increase the frequency of
its flights from Shanghai to Los Angeles,
New York, San Francisco and Toronto,
as well on the recently-launched service
to Chicago. These routes are currently
operated by the airlines B777-300ERs
The two deals mark the first time
China Eastern has ordered either the
A350 or the Dreamliner. The Shanghai-
based airline becomes only the second
mainland Chinese carrier to purchase
the A350, following Air China which
has ordered 10 A350-900s. Four other
Chinese airlines have placed orders for the
B787: China Southern, Hainan Airlines,
Xiamen Airlines and Air China.
3
GATE W AYS
In addition to the B787-9s and A350s,
China Eastern has outstanding orders for
11 more B777-300ERs (taking its total
fleet to 20). Both the A350s and B787s
will be delivered to China Eastern over
the course of three to four years, starting
in 2018.
PHILIPPINES
PAL finalises order for
the A350 XWB
Philippine Airlines (PAL) has finalised
a purchase agreement with Airbus
covering the firm order of six A350-
900s, plus six options. The contract firms
up a Memorandum of Understanding
announced earlier this year during the
Singapore Airshow.
The A350 XWB will become the
flagship of PALs future long haul fleet
and will be operated on non-stop flights
to the US, as well as on services to new
destinations in Europe.
We are pleased to finalise this
important order and are now defining
the final layout for the aircraft, said Jaime
J. Bautista, president & COO of Philippine
Airlines, adding that we will benefit from
the A350s enhanced efficiency and ability
to fly non-stop on even our longest sector
from New York to Manila, all year round.
MALAYSIA
MASkargo announces
Zhengzhou maindeck
MASkargo has announced a new
China maindeck service with the carrier
flying a A330-200F into Zhengzhou
twice weekly from 18 May. Offering 60
tonnes capacity, the freighter will fly
Wednesdays and Sundays with additional
scheduled trucking network service to
selected destinations from Zhengzhou.
These destinations include: Beijing,
Dalian, Guangzhou, Hefei, Jinan, Qingdao,
Shanghai, Shijiazhuang, Tianjin, Wuhan
and Xian.
The move is part of the Malaysia
Airlines cargo divisions re-alignment to
focus on the regional market with its own
equipment and form partnerships with
other carriers for its longhaul cargo needs.
MASkargos chief executive, Ahmad
Luqman Mohd Azmi told Payload Asia in
February that the carrier would dispose of
its B747-400Fs, but keep its fleet of four
A330-200Fs which, with their range and
65 tonne capacity, making them ideal for
the carriers intra-Asia ambitions.
4 PAYLOAD ASIA | June 2016
We will still continue to be the air
cargo carrier for Malayasia with a focus
on Southeast Asia, India, China and
Japan, Luqman said, adding that long-
haul widebody freighter operations will be
operated through collaboration.
We will still operate B747 freighters,
but not on our metal, thats the sort of
fleet synergy we are looking at. We believe
in growing, not organically with our own
metal, but through partnerships that
will be the new network philosophy for
MASargo, he said.
The first such collaboration saw
MASkargo sign a Memorandum of
Cooperation with Azerbaijans Silk
Way Airlines focussing on block-space
agreements, ground-handling and line
maintenance. Importantly the agreement
will enable MASkargo to continue serving
the important Amsterdam market using
SilkWay metal via the carriers Baku hub.
Asia Pac carriers see 6.5% drop in Q1
cargo Preliminary traffic figures for the
month of March released today by the
Association of Asia Pacific Airlines (AAPA)
showed continued soft international
air cargo market conditions while air
passenger demand, continued to grow.
Air freight volumes for Asian airlines
registered a decline of 5.3 per cent despite
a pick-up in Chinese exports following
the Lunar New Year factory closures.
Freight load factors for the regions carriers
remained under pressure, with the average
international freight load factor registering
a 5.2 percentage point decline to 62.9 per
cent, after accounting for a 2.6 per cent
expansion in offered freight capacity.
Commenting on the results, Andrew
Herdman, AAPA director general said:
During the first quarter of the year, Asia
Pacific airlines saw international passenger
numbers increase by a solid 7.5 per cent per
cent to an aggregate total of 72.8 million.
However, international air cargo demand
remained soft, with volumes declining by
6.5 per cent compared to the same period
a year ago, reflecting the general slowdown
in global trade.
AirAsia considering
merging Thai, Indon units
Malaysias AirAsia Group is said to
be considering merging its Thai and
Indonesia AirAsia affiliates into one
company which would then be listed
on both the Thai and Malaysian stock
exchanges.
According to a ch-aviation online
report, Thai Deputy Prime Minister
Somkid Jatusripitak said the merger
may also see AirAsia Group and Thai
Airways International forming a strategic
partnership that does not involve any
exchange of equity. Earlier rumours posited
that Thai Airways International would
acquire a 20 per cent stake in AirAsia
Thailand, which was subsequently denied.
The Thai Deputy Prime Minister met
with AirAsia Group founder and CEO
Tony Fernandes in Bangkok last week.
Fernandes was quoted in local media as
saying he was considering using Bangkok
as the Groups international headquarters.
Malaysia Airlines CEO
tenders early resignation
Christoph Mueller
In a surprise move Malaysia Airlines
Bhd (MAB) CEO and managing director
Christoph Mueller has announced his
departure from the airline effective
September 2016, but intends to remain
as its non-executive director.
In a statement, MAB said Mueller,
who made immense contribution in the
restructuring of Malaysia Airlines, had
requested to depart before the end of
his three-year contract due to changing
personal circumstances.
Mueller joined the Board of Malaysia
Airlines System Bhd as a non-executive
director 1 Jan 1 2015 and became CEO-
designate of MAB on 1 March 2015,
brought onboard to restructure the
carrier, devastated by two major aircraft
fatalities MH370 and MH17 and
years of financial losses. The airline
was taken private by state investment
agency Khazanah Nasional with turn-
around expert Mueller hired to oversee
its overhaul.
In ensuring continuity and an orderly
succession, he will serve a six-month
notice period to September 2016, the
airline said in a statement. We are very
disappointed to lose Mueller as CEO
but we fully understand his reasons
GATE W AYS
and respect his need to do this, MAB
chairman Md Nor Yusof said.
Mueller has made a significant impact
in putting the airline on the desired
trajectory towards full recovery, he said,
adding that his hard work over the last
year has seen Malaysia Airlines set on
a path where there has already been
encouraging progress.
Under Muellers tenure, Malaysia
Airlines made the transition to a new
company structure, embarked on a
major cost-cutting plan including badly
needed staff cuts and the axing of
unprofitable routes and entered into
a major codeshare partnership with
Emirates. MASkargo recently announced
a block space agreement with Azerbaijan
cargo carrier Silk Way West Airlines
that will see both airlines leveraging on
each others aircraft fleet and network in
different regions of the world.
In an interview with two weeks ago,
Mueller described the airline as a ship
that has many leaks but said things
are back on the right track. He said the
carrier recorded a profit in February, its
first positive monthly result in years, and
is on track to return to the black by 2018.
There are other significant strategic
decisions already in the pipeline which
Mueller has made preparations for and
will manage through, Md Nor said.
Unfortunately, personal circumstances
will make it difficult for me to complete
my full term, he added according to a
Bernama report. He said the airline had
been restructured and repositioned to
regain its leading position in customer
experience and to continue to connect
Malaysia with the world.
He added that he was confident that
MAB was now on the right track to
succeed in its next phase of growth under
a new CEO. MAB said the board had
also appointed chief operations officer
Peter Bellew as executive director with
immediate effect. He joins chief financial
officer Omar Siddiq, who is already an
executive director.
INDONESIA
Garuda going door-to-
door to boost cargo
Garuda Indonesia s expecting the
contribution from air cargo revenue to
rise to more than 20 per cent from the
current levels where it contributes less
than 10 per cent of the revenue, according
to president director of Garuda Indonesia,
Arif Wibowo.
Wibowo, speaking to local media,
said part of the effort to enhance cargo
demand is by adding door-to-door service
for customers, compared to the traditional
airport-to-airport model. In 2015 Garuda
uplifted 351,741 tonnes of cargo.
But we dont play business in freight.
We still use the services of our partners
like PT Pos Indonesia. Yes, our revenue
yielded from cargo is very small, less
than 10 per cent or between US$260-
300 million. We want to increase it to
more than 20 per cent this year, Wibowo
explained recently.
He added that earlier plans to add
freighters were still on hold. There
is no additional plane. We maximise
the existing planes for we dont have a
freighter. Last year, the cargoes declined
due to an increase in passenger capacity. I
think the growth is very high. We opened
Amsterdam route and in one day we could
obtain 15-16 tonnes per day, he said.
Wibowo also said that Garuda has

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GATE W AYS
partnership with an Asian airline, without
SINGAPORE disclosing the name or the nature of the
SIA, AF-KLM in talks on possible cooperation.
possible partnership
Singapore Airlines and Air France KLM ST Aero injects capital
are said to currently be in discussions into Guangzhou
around some form of commercial Singapore Technologies Aerospace
partnership, in a large part driven by Ltd (ST Aero) has injected its pro rata
the competitive pressure of the Middle share of US$24.5 million as additional
East carriers on routes between Asia capital into its Guangzhou-based airframe
and Europe. A Singaporean delegation maintenance, repair and overhaul
was recently in Paris for talks with Air joint venture company, ST Aerospace
France, according to a report in Frances (Guangzhou) Aviation Services Company
La Tribune newspaper. Limited. This additional funding will
The outcome will be guided in a large support the joint ventures expansion and
part by the requirements of both carriers business growth, ST Aero said.
alliance obligations: The Star Alliance Operating out of the Guangzhou
for Singapore Airlines and the SkyTeam Baiyun International Airport since March
Arif Wibowo
alliance for Air France KLM. It is expected 2014, ST Aero (Guangzhou) is a 49:51
that the negotiations, at minimum, would joint venture between ST Aerospace and
added another director who is specialised
cover a code-sharing agreement on the Guangdong Airport Authority, focusing
in handling cargo distribution. To be
Paris-Singapore route with one daily flight on commercial airframe maintenance and
more focused, we added one director to by the two carriers, possibility extending
handle cargo services so that the cargo modification services for a wide range of
to connecting flights from Singapore Airbus and Boeing aircraft.
could increase. and Paris.
The two carriers already have special
Garuda signs for 14 prorate agreements (SPAs) on routes THAILAND
out the hubs at Paris Charles de Gaulle
A330-900neo aircraft to Singapore Airlines and Changi for
MASkargo announces
Garuda Indonesia has placed an order
with Airbus for 14 new A330neo aircraft.
Air France (to some Southeast Asian Zhengzhou maindeck
destinations). Thai Airways International (THAI)
The deal was signed at a ceremony in
Shortly after announcing his departure has opted not to postpone the delivery of
London in the presence of Indonesias
from Air France-KLM as CEO, to a fleet of 12 A350-900s, after the military
President, Joko Widodo, and the UKs
lead the International Air Transport governments State Enterprises Policy
Prime Minister, David Cameron.
Association (IATA), Alexandre de Juniac Commission had earlier advocated THAI
Garuda currently operates nine A330-
told Reuters that the Franco-Dutch carrier delay the new aircraft over the next three
200s and 15 A330-300s, and the latest
hoped to conclude before summer a years to relieve financial burdens weighing
order will see it take delivery of 14 A330-
900neo aircraft the larger version of the
A330neo series. The new aircraft will be
delivered from 2019 onwards.
We are pleased to announce that we
continue our long-standing relationship
with Airbus. Both Garuda Indonesia and
Airbus fully understand the aim of the
deal as a long-term strategy to win the
global challenge, said Arif Wibowo,
Garudas CEO.
The A330neo represents a more-
efficient future for Garuda Indonesia.
This order restructuring is believed to
support our continued commitment to
deliver the most modern, comfortable
and excellent air travel service to all
customers as well as to strengthen the
sustained positive growth and business
expansion of the company.
Garuda becomes only the sixth airline
in the world to have placed an order
for the A330neo, following AirAsia X,
Delta Air Lines, Hawaiian Airlines, TAP
Portugal and TransAsia Airways. The first Thai Airways A350 XWB rolls out of the Airbus paintshop in late April.

6 PAYLOAD ASIA | June 2016

GATE W AYS
on the companys turnaround plan.
Airline sources told The Bangkok Post
that as per its original agreement with
Airbus, Thai will receive its first two A350s
over the coming months to be followed by
five in 2017 and five in 2018. THAI plans
to use the initial aircraft on its Bangkok-
Melbourne route, starting from 1 July
this year.
In a bid to ease its balance of payments,
the airline announced in January that it had
initiated talks with Airbus and Boeing over
the possible deferral in aircraft deliveries
(two B787-9s in Boeings case). But by
March, Thai management indicated that
no deals had yet been reached with either
manufacturer.
The loss-ridden carrier has been
undergoing a major restructuring that
includes cutting unprofitable routes,
retiring old aircraft, shedding its maindeck
capacity, cutting staff and reducing debt. As
part of this restructuring, THAI will see its
intercontinental routes shrink dramatically
as it focuses on the Asian region instead.
MYANMAR
ANAs Myanmar JV Asia
Blue gets green light
Myanmars Directorate of Investment
and Company Administration has
approved an investment of US$70.8
million by in Asian Blue Aviation Co
Ltd, a joint venture between Japans
ANA Holdings and Golden Sky World.
The approval enables the company
to operate for 50 years in the Myanmar
air transport sector with the carrier
focusing exclusively on international
routes. ANA Holdings will hold a 49
per cent stake in the joint venture while
the Shwe Than Lwin-owned media and
banking entity will own the remainder.
The deal is ANAs second attempt at
entering the Myanmar aviation market
following a failed bid in 2014 to acquire
local carrier Asian Wings international,
owned by Air Bagan and Sun Far Travels.
All Nippon Airways one of three
carriers ANA Holdings owns signed
a partnership agreement in August 2013
with with Asian Wings under which it
would pay US$25 million for a 49 per
cent stake in the domestic carrier.
It was touted as the first deal between
an international airline and a domestic
carrier, but the two sides announced the
deal had been cancelled in July 2014.
ANA was said to be put off by the small
size of the domestic market and strong
www.payloadasia.com | June 2016
competition from more than half a
dozen other domestic carriers.
NEW ZEALAND
Air NZ Cargo moves
lifeboat to Lesbos
In a move to assist Greek rescue
teams working to search for refugees and
migrants crossing the Aegean Sea, Air
New Zealand Cargo has helped move a
lifeboat and engine from New Zealand to
Greece last month.
The rigid inflatable lifeboat and its
engine weighing some 240 kgs was
donated by the Bethells Beach Surf
Life Saving patrol based in Henderson,
New Zealand and has been donated to
Lifeguard Hellas who will use it for both
patrols and emergency call-outs.
Co-ordinated by London operations
supervisor at Air New Zealand Cargo,
Nadeem Butt, the lifeboat was first
flown from Auckland to London on the
airlines B777-300 service. On arrival it
was transferred to dnata City at London
Heathrow he handed over to John Kwijuka
from Van Swieten Air Cargo, a specialist
part of DHL Global Forwarding who
was responsible for overseeing the final
journey to the island of Lesbos.
Bethells Beach lifeguards team leader,
Adrian Jenkins has organised a charity
fundraising page with the aim of raising
further funds for the New Zealand life
guard team to be able to assist their
counterparts in Greece and has already
raised more than NZ$10,0000.
Adds Jenkins: We have over 80 years
of patrolling and experience among
our team based at Henderson on New
(l-r) Nadeem Butt , operations supervisor at Air
New Zealand Cargo with John Kwijuka from Van
Swieten Air Cargo, Alexandru Mihailenco of DHL
Freight and Colin Andrews the DHL driver who
delivered the lifeboat.
Zealands west coast, so by joining the
lifeguard team in Greece and doing
our part to stop as many people from
drowning as possible, this we a challenge
we just couldnt ignore.
From the Bethells team in New
Zealand being moved to help the plight
of the refugees through to the delivery
of the lifeboat in Lesbos it took just ten
days and we are delighted to have played
our part in its safe delivery and it was a
privilege to help in this worthy cause, said
Air New Zealand Cargos Butt.
MIDDLE EAST
Etihad posts 5th annual
profit cargo doing well
Etihad Airways, the national airline
James Hogan
of the United Arab Emirates, today
announced its strongest annual financial
results to date and the airlines fifth
consecutive year of net profitability,
with a net profit of US$103 million on
total revenues of US$9.02 billion. Etihad
Airways cargo division continued to
perform well in 2015 with cargo freight
and mail volumes rose 4.0 per cent
to 591,000 tonnes, making it one of
the worlds most successful air freight
operations.
Accounting for 88 per cent of air cargo
imports, exports and transfers at Abu
Dhabi International Airport last year,
Etihad Cargo enhanced its global reach
by offering bellyhold capacity on the six
new passenger routes, bringing to 96 the
total number of passenger destinations
on which freight was flown. Etihad Cargo
also expanded its freighter services to
several new markets including Dakar,
Nouakchott and Douala in Africa, taking
the number of freighter-only destinations
operated to 20.
James Hogan, Etihad Airways president
and CEO said: Our mandate is to build
a sustainably profitable airline. A fifth
year of net profits, with our best annual
financial performance to date, shows
that we are delivering against that goal.
7
GATE W AYS
Our profitability clearly demonstrates
the success of our business strategy,
based on organic growth boosted by our
partnerships.
Etihad Airways partnership strategy,
based on almost 50 codeshare agreements
and its strategic minority investments in
selected airlines, remained a key driver
of its growth in 2015. Hogan said the
airlines return on its equity investments
into the seven airlines was many times
more than the money it had spent. For
an investment smaller than the cost of
three new aircraft, we have been able
to build our global network, attract
five million new customers and $1.4
billion of revenues, and share massive
cost synergies. Thats smart business,
he added.
Qatar Airways adds QR
Express to portfolio
Qatar Airways Cargo has today
announced the launch of QR Express, a
solution to deliver airport-to-airport air
freight service for time critical shipments.
QR Express is the latest addition to the
cargo airlines expanding portfolio of
specialised services and products.
QR Express provides customers with
the opportunity to book time-sensitive
shipments via a quick and simple system
that offers high boarding priority and
rapid handling, ensuring speedy delivery
of their cargo, the carrier said. Other key
features include short and flexible close-
outs, quick and dedicated ramp transfer
(for express transit), as well as priority
loading at origin and unloading at final
destination and speedy retrieval at final
destination (approximately 90mins).
We are delighted to launch our QR
Express service, said Ulrich Ogiermann,
Qatar Airways chief officer cargo. We
are committed to meeting our customers
demand for the services they need, by
investing in sophisticated technology, and
a team of highly qualified staff. This new
product enables our customers to ship
time-sensitive cargo with the knowledge
that transit time will be minimised. It
will be an ideal solution for supply chain
process and fast moving consumable
goods.
Qatar Airways Cargos terminal at
Hamad International Airport offers
state-of-the-art technology and service
to its customers around the globe. Its
exceptional Quick Ramp Transfer (QRT)
has the fastest airline transfer at Doha,
whilst its dedicated team is committed
8 PAYLOAD ASIA | June 2016
to ensuring all QR Express shipments are
safely and timely transported on board,
and delivered to destinations.
To date, Qatar Airways Cargo offers
a range of specialty products, namely
QR Pharma, QR Fresh and QR Equine,
to ensure efficiency and compliance in
the handling of temperature sensitive
pharmaceutical and perishable cargo, as
well as professional care and service to
shipment of horses and other live animals.
The cargo airline also offers QR
Charter, utilising its most modern
freighter fleets in the sky comprised
of B777, A330 freighters and B747-
400BCF heavy cargo aircraft. The 112.5
tonne capacity on B747-400BCF aircraft
enables the cargo airline to satisfy
growing demand for outsized freight
transportation from customers investing
in significant infrastructure projects in the
Middle East and throughout the world.
Etihad, Italys Parma
Airport sign cargo deal
Etihad Airways and Parmaa Giuseppe
Verdi Airport have signed an agreement
to develop cargo traffic at the airport
of the central Italian city. The exclusive
ag re ement initially includes the
establishment of a cargo transit centre
at Parma Airport to receive cargo for
forwarding to Milan Malpensa Airport
for onward transport.
The project will be developed in
conjunction with Etihad Cargo and
partner airlines, providing what the
carrier says will be an efficient solution
to companies in the region for the rapid
(L-R) Liu Hui, chairman of Ningxia Hui Autonomous Region and Sheikh Ahmed bin Saeed Al Maktoum,
chairman and chief executive of Emirates.
delivery of their products to global
markets. Work has already begun to adapt
the airport infrastructure for the new
service to be operational from July 2016.
Going forward the airport has said cargo
and logistics will play a central role in its
ongoing development plan.
Etihad Airways with its equity partner,
Alitalia in which it took a 49 per cent
stake last year, currently offers bellyhold
capacity on 38 weekly flights between
Italy and the UAE. In addition, there are
six weekly freighter services from Milan,
including a twice weekly service to Bogot
and the four times a week service to Abu
Dhabi, which offer a combined capacity
of 800 tonnes.
David Kerr, vice president of Etihad
Cargo, said: This agreement with Parma
Airport is a further demonstration of our
confidence in Italy, one of the largest
cargo markets in Europe. We have already
strengthened our freighter capacity out of
Milan in the last few weeks, having placed
a new 777 freighter on the Milan-Bogot
sector, so the opportunity to use Parma
gives us a further chance to strengthen
our cargo services from Europe.
Parma is at the centre of one of the
largest exporting regions in Italy for high
value goods. These freight items require
fast and secure transport, which are all
factors that determine the demand for
air freight services.
Guido Dalla Rosa Prati, chairman
of Parma Airport, said: With the co-
operation of Etihad Airways, the strategic
development plan for the airport is already
coming to life. We are really honoured to
have gained the interest of Etihad Airways,
GATE W AYS
a key player in the world of aviation, and
I am proud of the agreement which will
generate new business opportunities for
Parma and neighbouring territories.
Alberto Figna, chairman of the Parma
Industrialists Union (UPI), one of the
key shareholders in the airport, said:
The agreement with an international
partner of the calibre of Etihad Airways
is confirmation of the potential of this
airport and an important indication of
the commitment of the Parma business
community to ensuring the continuity and
progress of a vital piece of infrastructure
that will benefit the local economy. It is
expected that the new transit centre will
also have a positive direct and indirect
impact on employment in the local area.
Emirates launches
Yinchuan, Zhengzhou
Emirates Chinese expansion strategy
took a significant step forward on Tuesday
with the launch of the airlines first
flights to two destinations: Yinchuan and
Zhengzhou. Linking Dubai with Yinchuan,
the capital of the predominantly Muslim
region of Ningxia, and Zhengzhou, the
capital of Henan province and one of
central Chinas most populous cities.
The B777-200LR used on the service
offers 14 tonnes of cargo capacity in the
bellyhold. Popular commodities expected
to be transported on these services include
electronics, such as mobile phones from
Zhengzhou and agricultural products
such as goji berries and cashmere from
Yinchuan.
The new service forms part of Chinas
Belt and Road Initiative, which is aimed at
driving trade and transport links between
east and west, Emirates said. Dubai is well-
positioned to support China in achieving
the mutual benefits that will come from
this initiative, including deeper levels of
cooperation and exchange. Located at
the crossroads of East and West, Dubai
is the largest import-export hub in the
Middle East, connecting the world through
its strong governance, extensive trade
networks and global connectivity links.
Onboard the first flight, chairman &
chief executive, Sheikh Ahmed bin Saeed
Al Maktoum, said: We are confident the
new air transport links will also help boost
trade and tourism flows to the growing
central and western parts of China where
these cities are located. The new four
times a week service is operated using
B777-200LR aircraft.
These new destinations add to
10
Emirates current Chinese network of
Beijing, Shanghai and Guangzhou.
Etihad rolls out new
B777F on Milan-Bogot
Etihad Cargos new B777 freighter has
commenced operations on the Milan
Malpensa-Bogot route following the
addition of the new aircraft to the fleet
at the end of February 2016 which takes
Etihad Cargos dedicated freighter fleet to
a total of 11 aircraft.
The service has been running since
November 2014 with a wet lease B747 and
this is the first time Etihads own aircraft
has operated on the sector. The aircraft is
capable of transporting over 100 tonnes of
cargo on each flight and will strengthen
the cargo divisions operation between
South America and Europe.
David Kerr, VP of Etihad Cargo, said:
The aircraft will support the continuing
growth of Etihad Cargo during 2016. We
are adding to our fleet this year with a
further aircraft on order and building our
reputation globally as the trusted global
carrier of choice.
Italy is already Europes third largest
cargo market and Milan is growing as an
important European cargo hub. Etihad
Cargo and the airlines equity partner,
Alitalia, are able to offer capacity on
freighters or in bellyhold for clients who
are importing and exporting from Milan.
While both carriers share a growing
global network which customers can
access.
Etihad Cargo generated over US$1
billion in revenue and reported strong cargo
volumes for 2015, with 592,090 tonnes of
freight and mail flown in total, a four per
cent increase over 2014s figures. The cargo
division also accounted for 88 per cent of
cargo imports, exports and transfers at Abu
Dhabi International Airport.
On the importance of speciality
The aircraft is capable of transporting over 100 tonnes of cargo on each flight and will strengthen
the cargo divisions operation between South America and Europe.
products and services Kerr added:
We have a commitment to working
with clients to meet their specific
requirements and it is their business
needs which have driven the designs of
our product range so that we are in close
symmetry.
Etihad Cargo currently runs a series
of specialised products for operators
including four branded products:
Sky Stables for the equine industry,
TempCheck for the pharmaceutical
market, Safeguard to move valuable
cargo with the highest degree of care
and security and FastTrack, a premium
service which includes priority handling.
Etihad Cargos fleet includes four
B777Fs, three B747s and four A330s.
The Cargo division of the national airline
carrier of the UAE currently serves 14
freighter-only destinations worldwide
from its Abu Dhabi hub and has freighter
capacity on Etihad Airways fleet of over
100 passenger aircraft.
Qatar adds 2nd daily NY
flight with A350
Qatar Airways has added a second
daily, non-stop flight along its popular
John F. Kennedy Airport (JFK) Hamad
International Airport (DOH) route. The
new route features the new A350 and
the flight represents the tenth Qatar
Airways route between Doha and the
United States. The airline has now been
operating in the US for nine years and
recently added daily, non-stop service
to Boston (BOS) on 16 March and will
commence service to Atlanta (ATL),
on 1 June.
Qatar Air ways was the global
launch partner of the A350 in 2015.
The airline currently operates eight
of the advanced aircraft on four
different continents, including routes to
Frankfurt, Munich, Singapore, and from
PAYLOAD ASIA | June 2016
GATE W AYS
The new route features the new A350 and the
flight represents the tenth Qatar Airways route
between Doha and the United States.
next month, Adelaide. Qatar Airways
has an additional 72 A350s on order.
Qatar goes 8 flights a
week to Birmingham
Qatar Airways has inaugurated the
airlines fourth UK gateway, with eight
direct flights weekly between Doha and
Birmingham using B787 Dreamliners.
The inaugural flight touched down at
sunrise on 30 March and was greeted by
a traditional water salute.
The addition of Birmingham marks
the fourth UK gateway for Qatar Airways
www.payloadasia.com | June 2016
after London Heathrow, Manchester and
Edinburgh, with the eight weekly services
operated by the B787 Dreamliner aircraft.
Qatar Airways group chief executive,
Akbar Al Baker said: We are delighted
to commence service to Birmingham,
our fourth UK gateway. This vibrant and
economically powerful region represents
an important addition to our worldwide
network and is a testament to our
commitment to the UK.
Qatar Airways now operates 73 flights
per week to the UK, with 42 flights
per week to London Heathrow, 16 to
Manchester, seven to Edinburgh and eight
to Birmingham, from its state-of-the-art
hub, Hamad International Airport.
Birmingham is the largest and most
populous city in the UK outside of
London and is situated in the West
Midlands. The economy is largely
dominated by the service sector and the
city is an important transport, retail,
events and conference hub. With eight
flights a week, including two flights on a
Saturday, Qatar Airways recognises the
growth and demand represented by this
important region in the UK.
The West Midlands forms the largest
concentration of businesses outside of
London, boasting more than 34,000
companies including over 700 international
firms. The city of Birmingham itself
attracts nearly 34 million visitors a year
for both business and leisure and is ideally
situated at the centre of the UKs rail and
motorway network.
EUROPE & CIS
VD completes first-ever
Antartic season
Volga-Dnepr Airlines first-ever season
of cargo flights to Antarctica transported
over 190 tonnes of cargo to support the
new DROMLAN international Antarctic
project supported by nations including
Belgium, Germany, Finland, India, Japan,
the Netherlands, Norway, Russia, South
Africa, Sweden and the United Kingdom.
On behalf of the project, run by the
Antarctic Logistics Centre International
(ALCI), Volga-Dnepr completed 12 return
flights using its IL-76TD-90VD freighter.
The flights commenced on 4 November
last year and connected Cape Town
with the Novolazarevskaya Antarctic
11
GATE W AYS
Research Station, a distance of some
4,200 kilometres.
Volga-Dnepr delivered 125 tonnes of
general cargo to the Antarctic airfield
and carried a further 64 tonnes from
the ice continent. The shipments were
for the implementation of research and
logistics programmes in Antarctica and
included an inland delivery of 34 tonnes
from Novolazarevskaya Station to the
central regions of the continent.
DROMLAN was created to reduce the
expenditures of the projects participants
in the Antarctic region. ALCI arranges
intercontinental flights from Cape Town
to the ice airfields of Queen Maud Land
and inland flights using aircraft with
ski-and-wheel systems. It also provides
radio communications and weather
monitoring for flight operations as
well as food and accommodation for
expedition participants.
The Russian Antarctic expedition
helped to launch the DROMLAN project
and every year it prepares and maintains
the runway near Novolazarevskaya
Station, also providing the delivery of
aviation fuel to the airfield.
We have successfully completed our
first series of IL-76TD-90VD flights to
Antarctica, said Georgy Sokolov, sales
director of Volga-Dnepr UK. The next
series of flights will start in November
because of the polar night environment
and difficult weather conditions.
We did a great deal of work before we
could commence commercial deliveries,
including pre-flight tests in Ulyanovsk, a
series of ice runs in Antarctica to check
the performance and thrust reverser
application procedures, and to obtain
an addendum to the IL-76TD-90VD
airplane flight manual to enable it to
operate to ice airfields and transport
up to 90 people onboard. We thank
our partners and customers for their
excellent collaboration with us and we
12
look forward to our next series of flights
to Antarctica!
The ice run flights onboard the IL-
76TD-90VD aircraft were performed
by a joint crew comprising of test pilots
from Russias State Research Institute
of Civil Aviation (GosNII GA), Ilyushin
Design Bureau, and technical personnel
from Volga-Dnepr Airlines.
Volg a-Dne pr obt aine d sp e cial
approval from Ilyushin Design Bureau to
be able to provide a service to Antarctica
for passengers who accompany cargo
by fitting removable seats into the cargo
hold as required.
IAGs Middle East cargo
capacity up 83%
IAG Cargo has today announced plans
to enhance its operations in the Middle
East. From winter 2016, the carrier will
separate its current Abu Dhabi and
Muscat service into two flights, and will
also split its Bahrain and Doha service.
These four separate services will inject an
additional 83 per cent capacity for IAG
into the region.
Flights to Muscat will operate five
times a week, while services to Abu
Dhabi, Bahrain and Doha will operate on
a daily basis.
The next generation B787-9 will serve
the Abu Dhabi route offering a number
of benefits to businesses. These include
a larger hold and a state-of-the-art air
conditioning system, which maintains a
regular hold temperature to within one
degrees accuracy. A B777-200 will serve
the Bahrain, Doha and Muscat routes,
offering customers a cargo payload of up
to 20 tonnes per flight.
With positive economic growth, the
United Arab Emirates has seen a 3.6
per cent increase in GDP, presenting an
opportunity to serve growing businesses
in the UAE and the wider Middle Eastern
region.
Camilo Garcia, head of sales, at IAG
Cargo commented: With Bahrain making
significant efforts to diversify its economy,
and Doha benefitting from investments
ahead of the 2022 football world cup, this
network expansion comes at a time of
growing demand into and out of Middle
Eastern markets.
The additional capacity to Bahrain,
Doha, Abu Dhabi and Muscat will be
welcomed by our customers, offering
them greater opportunity and flexibility
to connect to over 350 destinations across
our network.
Icelandairs cargo
revenue up 8% in Q1
The Icelandair Group has reported
revenue of US$211.8 million for the first
quarter of 2016 an increase of 14 per
cent year-on-year. Cargo and mail rose
8.0 per cent for the period to US$11.02
million for a 5.0 per cent of group revenue.
Commenting on the results Icelandair
Group president and CEO Bjrglfur
Jhannsson said: The year is off to a
good start. The first quarter of the year is
always difficult, as many of the companys
expenses are incurred in the course of
the quarter which relate to the increased
scope of business in the peak season, so it
is very satisfying that the Groups EBITDA
for the first quarter is now positive, the
first time since 2010.
Jhannsson noted the outlook for the
airlines route network is favorable as
two B767-300ERs join its fleet to support
services to 43 destinations with the
addition of Chicago, Montreal, Aberdeen,
Orly and Kangerlussuaq, Greenland. The
B767-300ERs will operate between New
York-JFK, Boston, Chicago, London LHR,
Copenhagen and Amsterdam.
The Reykjavk-based carrier operates
a fleet of 30 aircraft including two B757-
200Fs, two B767-300ERs (with two more
coming into the fleet by 2017), 26 B757s.
The carrier also has orders for 16 B737
MAX and two B757-200s.
ABC enjoys record 27%
Q1 growth
AirBridgeCargo Airlines (ABC) set
a new quarterly tonnage record in the
first three months of 2016, carrying
over 132,000 tonnes of cargo across its
international route network, a 27 per cent
increase year-on-year alongside a 23 per
cent growth in FTKs.
January 2016 saw ABC record year-
on-year cargo volumes of 43,000 tonnes,
while in February tonnage rose 15 per
cent over the same month in 2015 despite
the impact on global trade caused by the
Chinese new year and the extraordinary
demand for capacity last year due to the
strikes at US ports.
AirBridgeCargos latest figures for
March continued the strong start to
2016 with the 51,000 tonnes carried
representing a 35 per cent upswing year-
on-year, making it ABCs best-ever month
for tonnage in its 12-year history.
ABC said these positive results reflect
both strong growth in its existing markets
PAYLOAD ASIA | June 2016
GATE W AYS
Quality has always been the core for AirBridgeCargos
business and now with our Cargo iQ membership and certificate
we have a baseline to rely on to support our further Delivered
as Promised enhancement by following the solid initiatives
Cargo iQ has successfully developed throughout these years,
said Denis Ilin, executive president of AirBridgeCargo.
Adopting a philosophy based on service quality has enabled
us to constantly improve our performance for our customers
and helped to secure ABCs place among the top airlines in
terms of on-time performance. Compliance with Cargo iQs
quality programme demonstrates to our customers that we are
committed to providing a consistently high level of service that
is measured in accordance with the industry standard.
We do hope that Cargo iQs strategic transformation will
be acknowledged and adopted by major players in the supply
The Reykjavk-based carrier operates a fleet of 30 aircraft including two
chain as its mission aligns with the most important criterion
B757-200Fs, two B767-300ERs (with two more coming into the fleet by
for the whole cargo industry; providing a client with the level
2017), 26 B757s. The carrier also has orders for 16 B737 MAX and two
B757-200s.
of service, he expects, or better Ilin added.
In support of its commitment to constantly improve its
and the gains achieved on new routes launched in 2015 and quality of service, in September 2015 AirBridgeCargo moved
in 2016. Last year, AirBridgeCargo added Singapore, Hanoi, from Test to Implementation Status for Cargo iQ reporting.
Helsinki, Los Angeles and Atlanta to its global network. It also According to the independent Cargo iQ report last year,
increased its Tokyo services to four fights a week. AirBridgeCargo is in the top five industry leaders for this quality
Since the start of 2016, the airline has continued its expansion indicator, an achievement that has already earned the airline
plans with the addition of a third weekly B747 freighter service positive feedback from its customers.
to Singapore and the launch of operations to Africa through Ariaen Zimmerman, executive director of Cargo iQ, added:
partnership with CargoLogicAir, adding a new continent in the AirBridgeCargo is well-known for its commitment to customer
airlines route network. service and quality improvement. It is their natural next step
For ABC, such growth is a result of being in close touch to be measured by the leading industry quality standard and
with our customers to understand first their further market make performance measurement transparent and available to
development moves in order to be there with a competitive
main-deck solution when and where they expect it, said Denis
Ilin, ABCs executive president.
We did a lot of work last year to stay inch-close to our clients Handled in good company.
and its great to see that the airlines developments back in 2015
continue to pay off in terms of the results we have achieved in
the first quarter of this year. Not just to survive in the current
turbulent market conditions but to successfully grow instead,
one needs to react quickly to the changing needs of the market,
promptly adjusting ones network in line with customers
requirements, he said.
Retaining this flexibility will be crucial for ABC in 2016 Ilin
noted, as together with the companys global expansion, it will
be an additional instrument to respond to market volatility, which
presents both risks and opportunities.
This year we will shape up the services we started last year
and plan on more investments in special services, including
facilities and dedicated internal resources for customers moving

ABC awarded Cargo iQ certification

AirBridgeCargo Airlines (ABC) has been issued with a Cargo
iQ certificate after it successfully passed the audit procedures for
compliance with the International Air Transport Associations
Cargo iQ quality standards. The document was presented LuxairCARGO is the leading air freight handling agent at Luxembourg airport. LuxairCARGO caters for all categories
of cargo and aircraft and has a capacity of 1,000,000 tons per year. It has developed a major distribution hub for

during a session of the Cargo iQ Technical Group in Essen, high-tech goods, perishables, livestock, pharmaceuticals and consumer products. The facilities and handling processes
are additionally designed to handle off-size, heavy, or high-value cargo. Being adjacent to major pan-European motorway
Germany this week. networks enables goods to be delivered within one business day to the majority of the EU economic centers.

For any request please call +352 2456 6001 or visit www.luxaircargo.lu
Following a two-day inspection, ABCs quality certificate is
valid for two year and acknowledges the airlines conformance
to the highest global quality requirements. The audit process
reviewed AirBridgeCargos quality management programme,
data analysis, customer service and interaction with suppliers.

www.payloadasia.com | June 2016 13

GATE W AYS
its customers all over the world. Not just
being better, but being visibly better.
AirBridgeCargo Airlines has been an
Associate Member of Cargo iQ, formerly
Cargo 2000, since 2007. In 2011, ABC
formed a partnership with TRAXON
CDMP to compare planned and actual
performance for its Freight Status
Update messaging and to identify areas
for improvement. In addition, it records
the causes of any service discrepancies,
enabling the airline to address problems
and initiate improvement processes.
Ultimately, in cooperation with partners
across the process chain, ABC has been
able to reduce errors and dwell times on
the ground.
IAG takes Q1 hit, but
remains positive
IAG Cargo has today announced its
Q1 2016 results, reporting commercial
revenue of 262 million over the period
from 1 January to 31 March 2016, a
decrease of 1.5 per cent compared to
2015. Adjusting the prior years figures to
reflect a directly comparable operation,
commercial revenue decreased 8.6 per
cent versus last year at constant exchange.
Challenging market conditions
continue, on a like-for-like basis IAG
Cargos volumes were down 1.8 per cent,
while yields decreased 6.9 per cent1 at
constant exchange.
These are respectable results in the
face of a challenging market, said Drew
Crawley, CEO at IAG Cargo. The trading
conditions experienced towards the end of
last year have continued into 2016.
The industry is also cycling over the
west coast port strike that dominated
the start of 2015, producing an unusually
strong start to last year. Despite this
high benchmark, the numbers reported
today show that a relentless focus on
premium products, strong cost control
and precision management of our capacity
and yields is helping our business to
withstand these headwinds, Crawley said.
IAG said its focus on premium
products continues to pay off with double
digit growth in tonnages of its Constant
Climate and Prioritise products. Network
expansion over the coming months will
see the carrier expand into strong cargo
markets, with already announced routes
from Madrid into both Shanghai and
Johannesburg coming this year.
Further expansion in South America to
Lima, San Juan and San Jose will see new
flows of perishable and pharmaceuticals
14
enter IAGs network an a new North
American service into San Jose, California
will enable hi-tech products to enter and
exit one of the worlds leading innovation
capitals, the carrier said.
This years Q2 will also see the
integration of Aer Lingus Cargo pass
several major milestones, bringing new
routes to its network from Dublin to
Hartford, Newark and Los Angeles
this year.
Virgin resumes seasonal
daily to Chicago
Virgin Atlantic Cargo is resuming
its seasonal daily flights to and from
Chicago from 27 April, giving its
customers in the buoyant US Midwest
market a wider choice of services.
The carrier already offers customers
a year-round service to the region
through its daily flights linking London
and Detroit. The addition of A330-
300 services ex Chicago will boost its
capacity offering by a further 16 tonnes
a day and help customers in the US
achieve fast connections with the UK
and Europe as well as prime markets
such as India and South Africa.
John Lloyd, senior VP, Cargo, said:
We are pleased to welcome back our
very popular Chicago route and with
the addition of Detroit last year, has
enabled us to strengthen our year-round
presence in the US Midwest, where
are have very strong support from our
customers on both sides of the Atlantic.
From the UK, even before the start of
our summer season services to Chicago,
we have commitments for more than 50
per cent of our capacity.
Typical cargoes ex-UK will be wide
ranging, such as fresh fish, flowers
and perishables as well as mail. For
customers in the US, the early morning
arrival of our Detroit and Chicago
services into London means we can
help them to quickly connect to markets
across Europe and to other online
destinations such as Johannesburg and
Delhi.
Virgin Atlantics Detroit service
arrives at London Heathrow at 06.25hrs
every morning, while its Chicago flights
touch down at 07.55hrs. This enables
same day connections to India and
South Africa, as well as with Virgins
road feeder services which deliver to
over 50 major cities in Europe.
Virgin Atlantic Cargo offers direct
services to and from 12 US destinations;
Atlanta, Boston, Chicago, Detroit, Las
Vegas, Los Angeles, Miami, New York,
Newark, Orlando, San Francisco and
Washington and has a 27 per cent
capacity share across the Atlantic. It is also
responsible for selling Virgin Australias
international long-haul services from
Sydney and Brisbane into Los Angeles,
which connect with Virgin Atlantics
global network.
Air Logistics GSSA for
Wings On-Board
Air Logistics Group has been appointed
as the exclusive GSSA in Europe, the US
and Canada, for Wings On-Board Courier
Network, the largest global on-board
courier provider. Under the agreement
Air Logistics Group will provide full sales
and customer service support for Wings
On-Board.
We are delighted to establish our
partnership with Air Logistics Group,
comments Tal Haimovich, CEO Wings-
On Board: We were looking for a GSSA
which has a well establish global network
and is passionate about such an exciting
product. Air Logistics Group is able to
provide the commercial expertise, quick
response times and high service levels
that are synonymous with Wings On-
Board Courier services he concluded.
Helmut Mair, group managing
director Air Logistics Group,
commented: We are very excited to
be the GSSA for Wings On Board, one
of the worlds leading on-board-courier
specialists. Adding this new activity
will further enhance our existing cargo
product portfolio. Wings is already
a well-established brand with the
latest technology providing 24/7 full
transparency at every milestone via the
Wings APP and online tracking options.
AMERICAS
Canadian carriers head
for SAmerica
KF Cargo, previously known as
Kelowna Flightcraft, has reactivated its
two DC-10-30 freighters following the
start of a new air charter contract on
15 April to move freight from Miami
International Airport (MIA) to South
America in time for the peak flower traffic
for Mothers Day.
The new charter contract sees KF
Cargo flying three-times a week to Bogot,
Colombia with a similar frequency
PAYLOAD ASIA | June 2016
GATE W AYS
to Caracas Simn Bolivar Airport
in Venezula, and onwards to Lima
International Airport in Peru.
We proudly welcome KF Cargo to
our roster of 41 all-cargo airlines, and
we wish them the greatest success in
their expansion to MIA and into our
bustling Latin American trade routes,
said Emilio T. Gonzlez, director, Miami-
Dade Aviation. As the busiest US airport
for international freight and as the cargo
gateway of the Americas, MIAs extensive
route network and trade infrastructure
continue to attract new cargo carriers.
KF Cargo lost its key contract providing
overnight service to Canadian express
company, Purolator, last year. The carrier
then began an intercontinental long-haul
route between Toronto and Brussels,
using its un-utilised DC 1030Fs,
supported by its Canadian network using
B727-200 freighters. That service was
cancelled earlier this year when the route
proved unprofitable.
Meanwhile Air Canada Cargo is set to
launch two new services from Toronto, the
first to Lima via Atlanta and the second
to Mexico City via Dallas/Fort Worth.
Subject to regulatory approval, the new
services are scheduled to start 9 June and
will make Air Canada the only provider of
direct scheduled freighter service between
Canada and Latin America.
The route is being operated by Canadas
Cargojet Airways under an ACMI deal
using its 52-tonne capacity B767-300ER
freighters. Air Canada Cargo also plans to
introduce dedicated freighter service from
Toronto to, as yet unspecified, European
destinations in the second half of 2016.
Working with Cargojet, we are
able to leverage and build upon Air
Canadas extensive North American and
international networks, said Air Canada
Cargo vice president Lise-Marie Turpin.
We look forward to continuing to grow
our dedicated freighter network to Europe
www.payloadasia.com | June 2016
later this year and for a successful and
mutually beneficial relationship with
Cargojet into the future.
TIACA calls for greater
counterfeit coop
TIACA has added its voice to the
cause, condemning the growing problem
of goods that infringe Intellectual Property
Rights (IPR), and calling for Customs
authorities to bring together rights
holders, service providers, and regulators
for a working dialogue in a new Position
Paper published today.
Goods that infringe IPR account for a
growing proportion of international trade,
estimated at over US$250 billion by the
Organisation for Economic Co-operation
and Development (OECD).
TIACAs Paper explains that the air
cargo industry plays a vital role in the
interdiction of counterfeit shipments and
in investigations of illicit trade and that,
as intermediaries, the industrys role is
distinct from that of other parties.
The air cargo industry should be
recognised as one piece in a three-
pronged approach to combatting goods
that infringe IPR, working alongside
rights holders and Customs authorities,
TIACA said.
The industrys cooperation with law
enforcement agencies contributes to
the increase in seizures by government
agencies, said Doug Brittin, secretary
general, TIACA.
However, each party needs to
acknowledge its role and limitations.
Air cargo industry members are not law
enforcement agencies, and our role is
necessarily limited by this reality.
Any potential liability for air cargo
industry members should be limited
to instances where air cargo operators
have actual knowledge of receiving
or handling IPR infringing goods and
have failed to take action based on that
knowledge, he said.
The Position Paper was put together
by TI AC As Market Access and
Trade Facilitation Subcommittee and
approved by the TIACA Board, which
includes members from across the air
freight industry and can be viewed on
TIACAs website.
Air Canada adds second
Delhi service
Air Canada has announced plans to
introduce a second direct service from
Vancouver to the Indian capital Delhi using
a B787-9 Dreamliner after successfully
launching Toronto-Delhi just six months
ago. The new three-times weekly service
will begin on 20 October and marks the first
time this route has been operated non-stop.
The Vancouver-Delhi route forms part
of Air Canadas ongoing international
expansion strategy. Last year, the national
carrier launched new services from
Vancouver to Osaka, from Toronto to Delhi,
Amsterdam and Dubai, and from Montreal
to Venice and Mexico City.
And this summer it plans to start flying
from Vancouver to Brisbane and Dublin,
from Toronto to Prague, Budapest, Warsaw,
Glasgow, London Gatwick and Seoul, and
from Montreal to Casablanca and Lyon.
Atlas to operate 20
freighters for Amazon
Atlas Air Worldwide Holdings, Inc.
announced today that it has become the
latest aviation partner of e-commerce
retailing giant Amazon with an agreement
to operate 20 freighters on behalf of the
company which will take up as much as
a 30 per cent share in Atlas.
Under the long-term agreements
announced today Atlas will, starting in the
second half of this year, operate 20 B767-
300 converted freighters for Amazon on a
CMI (crew, maintenance and insurance)
basis by the groups airline subsidiary
Atlas Air, as well as dry leasing by its Titan
Aviation leasing unit.
The dry leases will have a term of 10
years, while the CMI operations will be for
seven years (with extension provisions for
a total term of 10 years). Operations under
the agreements are expected to begin in
the second half of 2016 and ramp up to
full service through 2018.
We are excited to begin a strategic
long-term relationship with Amazon to
support the continuing expansion of its
15
GATE W AYS
e-commerce business and to enhance
its customer delivery capabilities, said
president and CEO William J. Flynn. We
appreciate Amazons confidence in our
capabilities, global scale and operating
excellence, he added.
As part of the deal Atlas Air Worldwide
granted Amazon warrants to acquire up
to 20 per cent (after the issuance) of Atlas
Air Worldwides common shares with
the option for a further 10 per cent going
forward which the group said was part
of the inherent value creation and to align
interests and strengthen the long-term
relationship.
These share will be sold to Amazon at a
price of US$37.50 per share over a period
of five years, with vesting tied in part to
the commencement of operations of the
20 B767-300 freighter aircraft and other
conditions while the additional 10 per cent
is structured over a period of seven years.
Dave Clark, Amazons senior vice
president of worldwide operations said:
We are excited to welcome a great
provider, Atlas Air, to support package
delivery to the rapidly growing number
of Prime members who love ultra-fast
delivery, great prices and vast selection
from Amazon.
The move is part of the e-commerce
giants moves to take more control over its
supply chain and reduce its dependence on
integrators such as UPS and FedEx which
saw it strike its first similar deal with Air
Transport Services Group (ATSG) In
March, involving 20 B767 freighters. It has
built a ground network of couriers and new
warehouses near or within urban centres
for faster and cheaper delivery.
United launches B787
Xian-San Francisco
United Airlines today inaugurated a
three-times-weekly B787 service from
Xian, China to its hub at San Francisco
International Airport the Chinese citys
first nonstop transpacific service.
With the creation of a new trans-
Pacific gateway for China here in Xian,
we expect to see a wealth of trade and
collaboration opportunities between
China and the United States, throughout
this US-China Tourism Year and long
into the future, said Marcel Fuchs,
Uniteds vice president of Atlantic and
Pacific sales.
United Airlines has a long history
in China and its with great honor that
we welcome United as the first US
airline to serve Xian, said Xu Qiang,
deputy director of Shanxi Provincial
Development and Reform Commission.
The unrelenting efforts of both parties
makes this first nonstop service to the
United States a reality, he added.
United started service to China
in 1986 and today the carrier serves
Beijing with nonstop flights to Chicago,
New York/Newark, San Francisco and
Washington, DC/Dulles; Shanghai with
nonstop flights to Chicago, Los Angeles,
New York/Newark and San Francisco;
Hong Kong with nonstop flights to
Chicago, Guam, New York/Newark,
and San Francisco; and Chengdu with
nonstop flights to San Francisco.
AFRICA
Ethiopian begins maindeck
to Istanbul, Beirut
Ethiopian Cargo has begun new
weekly freighter flights with B777-200
LR freighters to Istanbul and Beirut from
23 April. The newly launched flights will
further strengthen ETs cargo service to/
from Liege (LGG) and Brussels (BRU)
which are the carriers strategic hubs
in Europe.
The flights are routed Liege-Istanbul-
Addis Ababa and Liege-Beirut-Addis
Ababa and will offer more convenient
routes for Ethiopian customers to
South East Europe and Middle East, the
carrier said.
By 2025, Ethiopian Cargo plans to
uplift over 820,000 tonnes per year
flying to 37 freighter destinations across
five continents using 19 dedicated
modern cargo aircraft. Ethiopian is
already serving 34 cargo destinations
currently.

C A L E NDA R

Upcoming Supplements
Cold Chain Aug FIATA Nov
Americas Sep China/TIACA Dec/Jan 2017
Advertising offices: Worldwide South Korea
Susan Ng Kwangsok Hong Payload Asia Awards &
Tel: +65 6521 9773 Tel: +070 8880 1745 Conference Oct
Fax: +65 6521 9788 Mobile: +010 9886 0729
Email: susan.ng@contineomedia.com Email: kshong2000@nate.com

Japan United States, Canada For editorial participation and contributions please contact the Editor,
Katsuya Watanabe Matt Weidner Donald Urquhart at email: donald.urquhart@contineomedia.com.
Tel: +81 90 5321 6881 Tel: +1 610 486 6525
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2016 CALENDAR OF EVENTS

Jun 14 16 Air Cargo China, Shanghai Sep 28 29 Payload Asia Conference & Awards, Hong Kong
Jul 6 8 Asia Cold Chain Show, Bangkok Oct 3 8 FIATA World Congress, Dublin
Jul 10 12 Federation of Asia Pacific Aircargo Associations (FAPAA) Oct 26 28 TIACAs Air Cargo Forum, Paris
43rd Executive Council Meeting, Manila, Philippines
Nov 22 23 Asian Logistics and Maritime Conference, Hong Kong
Sep 20 22 Air Cargo Handling Conference, Dubai

16 PAYLOAD ASIA | June 2016

IT & E QU I P M EN T
Swiss expands cold chain
portfolio with va-Q-tec
(l-r) Ahwin Bhat and Dominic Hyde.
Swiss WorldCargo has signed a global
partnership agreement with award-
winning company va-Q-tec, a leader
in passive closed cold chain container
solutions within a global service network.
The additional offering of va-Q-tecs
advanced passive solution containers
within its portfolio will support
pharmaceutical manufacturers and
forwarders to ship their temperature
sensitive goods within the global network
of Swiss WorldCargo through direct
airline rentals, cost-efficiently and with the
highest quality standards, the carrier said.
Commenting on the deal, Dominic
Hyde, managing director va-Q-tec
Limited, said: va-Q-tec has been
requested by pharma customers to
establish a partnership with Swiss
WorldCargo to enable direct container
rentals. Many pharma shippers and
forwarders see the cargo division of
SWISS as a strategic partner for reliably
transporting pharmaceuticals and they
want the simplicity of ordering the va-
Q-tainer containers through the airline
directly.
With va-Q-tec s cutting edge
containers we welcome the opportunity
to offer a more complete, value-added
passive solution set to our pharma
& healthcare client base worldwide,
remarked Ashwin Bhat, head of cargo
at SWISS.
Va-Q-tec offers a unique advanced
passive solution portfolio with five hard
shell container sizes, taking up to two
pallets inside, and temperatures ranges
from -70C to +25C. Within the Load &
Go rental concept, va-Q-tec containers
reach their customers fully temperature
preconditioned and ready to be loaded for
one-way rental shipments over five days
or more on global lanes.
www.payloadasia.com | June 2016
SkyCargo launches
advanced cool cover
Emirates SkyCargo has launched a
next-generation version of its innovative
prote c tion pro duc t for v aluable
temperature-sensitive cargo, such as
pharmaceutical products. Called White
Cover Advanced, it utilises DuPonts
patented Tyvek material made of high
density polyethylene to form a tough
protective barrier against varying external
temperatures and direct sunlight. The
special material is water resistant to
prevent moisture damage while at the
same time breathable, thereby reducing
condensation and dryness. It is also
environmentally friendly and is 100 per
cent recyclable.
The White Cover Advanced is an
enhanced offering to Emirates SkyCargos
existing White Cover solution. While
the White Cover is used in the carriers
cool chain solutions for perishables,
such as vegetables and fresh fruits,
the White Cover Advanced offers
additional protection for packaged
pharmaceutical shipments in Controlled
Room Temperature (CRT) range and in
insulated packaging.
Weighing no more than three kilograms
for Emirates largest passenger aircraft
pallet, the special sheet completely
encloses the shipment and allows for
cooling during transportation and cold
storage. Application is also very efficient,
taking two people no more than eight
minutes to wrap a pallet.
Noting that the pharmaceutical
industry moves products worth over US$
1 trillion annually, said Henrik Ambak,
senior vice president, Emirates Cargo
Operations Worldwide highlighted
that temperature changes during
transportation can pose a serious
threat to the integrity of these sensitive
products.
They must be kept within different
control room temperature (CRT) bands
in accordance with the revised EU
Good Distribution Practice. The White
the addition of this regional headquarters
Cover Advanced, with its silver-coating
technology, provides a reliable and
affordable means of protecting these
products from temperature spikes during
air transportation, he said.
The cargo carriers range of advanced
protective techniques and solutions in
transporting perishable products include:
Cool Chain Premium, Cool Chain
Advanced and Cool Chain Standard,
each of which is designed to meet
specific requirements of customers. This
includes the Emirates SkyCargo Cool
Dolly, a special piece of equipment that
transports cargo from the aircraft to
cool storage areas, while maintaining
temperatures of as a low as -20C.
Pelican BioThermal
opens new Asia HQ in SG
Pelican BioThermal has announced
the opening of its new Asia headquarters
in Singapore as part of its expanding
presence and support network in Asia.
The location will be the central base for
the companys Asia sales office, Crdo on
Demand rental fleet depot and will also
be the regional distribution hub for their
Crdo reusable and Chronos single use
ranges of temperature controlled shippers.
The Pelic an BioTher mal A sia
headquarters is also the location for the
companys Asia based, state-of-the-art
service centre, providing capabilities to
refurbish and repair the Crdo reusable
line of shippers. The new office will be
co-located with Pelican BioThermals
distributor for Singapore, Enviropac.
The latest development follows the
companys recent announcement of its
partnership with Zuellig Pharma in Asia
and further enhances the extensive range
of products and services offered by Pelican
BioThermal in the region.
With the current US$10 billion global
cold chain industry predicted to grow
further, Pelican BioThermal continues
to lead the way by providing thermal
technology solutions. Asia is an area of
pronounced growth for Pelican BioThermal,
so providing critical capabilities through its
extensive network to deliver and manage
assets in all regions, precisely meets its
customers business needs.
Expanding our global footprint with
in Asia, will be particularly beneficial
for our growing customer base, who
operate worldwide themselves, said
David Williams, president of Pelican
BioThermal.
17
LOGI STI C S
DHL opens cutting edge
Singapore facility
DHL Supply Chain, a global leader
for contract logistics solutions, recently
launched its Advanced Regiona l
Center (ARC) in Singapore. Built at an
investment of more than S$160 million
(US$116.8 million), the new 90,000 sqm
facility features an $18.8 million multi-
customer automation system featuring
advanced robotics.
The pioneering system a llows
customers to enjoy the benefits of
automation solution without the need
for significant capital investment.
The technological enhancement uses
130 robotic shuttles to pick and
store products from 72,000 locations
spread across 26 levels, improving
picking efficiency by 20 per cent and
utilising 40 per cent less space than
conventional warehousing operations.
Th is is the fi rst of its kind deployed
by DHL globally and creates a model
for the future of warehousing in land-
scarce countries and dense cities
where land availability is limited and
expensive.
As an organisation, our spirit
thrives on a hunger for new knowledge
and innovations that we can bring
to customers to meet the challenges
of Industry 4.0, the fourth industrial
revolution. We see the Asian region
as a swift adopter of technologies for
enhanced productivity and efficiency.
By 2020, Asia will constitute 30 per
cent of our total revenue. Facilities
like the Advanced Regional Center
offer a ready model of innovations that
reduce complexity, improve accuracy
a nd ma x im ise oppor t u n ities for
productivity gains, said Frank Appel,
CEO Deutsche Post DHL Group.
Co-located within the ARC is the
DHL Asia Pacific Innovation Center
(APIC), DHLs fi rst innovation centre
outside of Germany and a joint
development with the Singapore
Economic Development Board (EDB).
Launched in 2015, APIC is the fi rst
dedicated center for innovative logistics
services in the Asia Pacific region and
showcases futuristic technologies.
We are witnessing a pivotal chapter
in the transformation of the Singapore
logistics industry, as these best-in-class
supply chain practices exemplified by
DHLs Advanced Regional Center start
to take off in Singapore, said Kelvin
Wong , assistant managing director of
18
The DHL Supply Chain Advanced Regional Centre (ARC) in Singapore.
the Singapore Economic Development
Board.
As a multi-customer facility, DHL
says the Advanced Regional Center
also offers bespoke solutions to cater
to specific industry needs, such as
clean rooms for Life Sciences &
Healthcare businesses, specialised
infrastructure for aerospace operations
and customised storage solutions for
managing service parts for technology
customers.
Purpose-built to industry-leading
standards, the ARC facility has been
awarded gold status for its energy and
environmental design. The company
has also implemented robust security
measures that are in accordance with
global TAPA standards.
Weve seen swift take up from
multinational companies using the
Advanced Regional Center (ARC) as
their regional or global logistics hub,
said Oscar de Bok, CEO, Asia Pacific,
DHL Supply Chain. By providing
this solution in a multi-customer
environment, it uniquely opens these
types of solutions and advantages to
a wider customer base. The system is
modular in design and can be expanded
depending on customer needs, he
added.
SPARX Logistics sets up
shop in Ho Chi Minh City
SPARX logistics, a rapidly expanding
global logistics innovator, has opened
its newest office in Ho Chi Minh City,
Vietnam. Located in District 1, the
nations fi nancial centre and the citys
busiest, most fashion-friendly district,
this wholly-owned office sits at the
heart of Vietnams rapidly growing
economy.
A s t he economy i n Viet na m
continues to thrive, commented Wael
Accad, managing director adding that
China along with a growing Southeast
Asia means a host of new trade
opportunities have come to light. By
opening our own office in the countrys
capital and largest city, we can better
support our global client-base by
working closely with Vietnam-based
factories, vendors and local authorities
on their behalf.
By expanding our customer service
to Vietnam, added Jason Manganaro,
director marketing & development,
were anticipating the needs of our
clients in all world regions. Our team
in Ho Chi Minh City brings expertise in
the industry as well as the local market,
enhancing the overall strength of our
Asia operations.
OIA Global launches
Chennai branch
OIA Global, a leading logistics,
packaging and material sourcing
provider, announced the opening of its
new location in Chennai, India. Gandhi
JJ, OIAs senior operations executive
in Chennai said: While OIA has had
a presence in this location through a
network of strategic partnerships for
PAYLOAD ASIA | June 2016
LO GI STI C S
years, increasing customer demand now requires we establish
our own operation.
OIAs managing director, Asia Pacific, Peter Wong
noted that the International Monetary Fund (IMF) expects
economic growth in India to exceed 6.0 per cent in 2016,
a growth that is now expected to outpace China this
year. Growth in Chennai has been led by the automotive,
technology and textile sectors, Wong said.
As OIA continues to experience impressive growth in
Southeast Asia, India is expected to be an important part
of the companys growth over the next few years, he added.
OIA operates 60+ owned offices with a worldwide presence
in 26 countries.

Global contract logistics contracts in

2015: Ti
Transport Intelligence (Ti) has released the latest edition
of its Global Contract Logistics report which shows the global
contract logistics market expanded by only 3.8 per cent in
2015, down from 4.4 per cent the previous year.
Tis predicts that this will improve as emerging market
growth is expected to pick up. Ti economist, David Buckby,
explained: Overall, 2015 was a year where there wasnt a
great deal of change in developed contract logistics markets.
What the world really noticed was the weakness in emerging
markets.
Th is is by no means a call to give up on emerging
markets, forecasts for 2016 and beyond are more optimistic.
Rather, it is that logistics providers should perhaps pause
for thought a bit more before ramping up investment in
certain locations.
The new service is almost thrice as fast the traditional LCL and very comparable
to the airfreight door-to-door transit time, while at a reduced cost.
Logistics recently introduced its new road service from
Singapore to Bangkok, Thailand aimed at retail, aerospace,
and healthcare clients. The key objective, the company said,
is to offer customers the fastest door-to-door transit time for
Less-Than-Truckload (LTL) cargo on a weekly basis.
The twice-weekly departures and the speed of the service
(3.5 days door-to-door delivery) at what Bollor says is a very
competitive price make this service almost thrice as fast
the traditional LCL, and very comparable to the airfreight

I am Peace of Mind
For the fi rst time, the report also includes analysis on the
increasing impact of social responsibility, environmental
accountability and ethics in the supply chain. Economic,
environmental and societal issues are bound tightly together,
Ti said.
In order to ensure a long term, sustainable future for
global supply chains, companies must build collaborative,
multi-stakeholder approaches to creating value which dont
impact on the environment or have a negative impact on
peoples wellbeing, said John Manners-Bell, CEO of Ti.
Another key fi nding of the report is the impact of the
inability to seamlessly share information across different
systems in the logistics sector.
The increased integration of IT and technology throughout
operations presents a number of efficiency opportunities for
logistics service providers, Ti noted. But, without a constant
steam of accurate data fed in to the system they become
extremely ineffectual.
Ken Lyon, Advisory Board member for Ti and author of
the chapter, Technology in Contract Logistics said: Th is
inability to share information seamlessly between different
Mambio Ravezzi
systems is possibly the most significant contribution to both Sales Manager Cargo Italy
breakdowns in communication, and failures in efficiency
in the industry. As the demand for collaboration and When your cargo is with us, you can stop worrying.
information sharing increases, the harder it becomes for We care for your cargo.
older systems to cope.

Bollor unveils new SE Asia road service

SWISSWORLDCARGO.COM
Aiming to provide a cheaper option to air freight, Bollor

www.payloadasia.com | June 2016 19

LOGI STI C S
door-to-door transit time, while at a
reduced cost.
The cargo is transported via secured
vehicles equipped with GPS tracking
systems. The vehicles are also under
the supervision of a 24/7 command
center, CCTV integrated with GPS
installed inside the containers. Also
taking automatic pictures once the
containers doors are opened, those will
be sent in real time via GPRS network
to the server.
The trucks are equipped with
enhanced security features such
as an E-lock security mechanism
located inside the container door, an
immobiliser, a panic button, hearing-in
devices and alarm buzzing. Additionally,
the E-lock security mechanism can only
be locked and unlocked by SMS, barcode
scanner, or a unique keypad.
This service also offers full traceability
with the Proof of Delivery (POD)
inputted directly in Bollors LINK
system bringing customers full visibility
and control over their shipments.
Bollor Logistics value-added service
options at Bangkoks warehouse before
delivery include features allowing
the cargo to be cleared directly at its
Bonded Container Freight Station (CFS)
facilities in Thailand, Singapore, and
Malaysia in order to avoid customs
blockage and delays at the border and
to facilitate lift-on, lift-off (LOLO) &
customs issues.
We are excited to offer this new
service to our customers. With regular
shipments and LINKs full traceability
out of Singapore, this service is a
very attractive offer, states Franco
Montalbano, TSL Worldwide director
at Bollor Logistics.
This is a great solution for customers
looking for an alternative which is
both faster than LCL ocean shipments
and cheaper than regular airfreight
shipments, adds Yves Laforgue, director
for South East Asia at Bollor Logistics.
K+N expands Singapore
Control Centre
Kuehne + Nagel has expanded its
Logistics Control Centre at its Singapore
Logistics Hub, offering Integrated
Logistics Services for the fulfilment of
customers orders across international
supply chains.
With upgraded infrastructure and
an expanded Integrated Logistics team
located at the Singapore Logistics Hub,
20
Kuehne + Nagel said the Logistics
Control Centre drives synergies and
strengthens the Groups global hub
concept to provide end-to-end solutions
from a single source.
In order to simplify complexity and
to meet customers requirements for
lean, agile and demand-driven supply
chains, dedicated teams for contract
management, continuous improvement,
logistics partner management and
c ustomer dat a analy tic s clo s ely
collaborate in a shared environment.
The upgraded infrastructure is
specifically designed to create an
environment that fosters and facilitates
team collaboration to drive solutions such
as request and exception management,
visibility and event monitoring, order
management, transport management,
freight settlement, business systems
supp or t , a s well a s re p or t and
performance management.
Jens Drewes, president South Asia
Pacific of Kuehne + Nagel, said: The
Singapore Logistics Hub is part of
Kuehne + Nagels regional strategy
to provide end-to-end supply chain
capabilities to support customers
through Asias dynamic logistics market.
By locating the Logistics Control Centre
in the Singapore Logistics Hub, we
can increase synergies and strengthen
our hub concept to provide a one stop
solution to customers.
To b i a s J e r s c h k e , g l o b a l h e a d
of Integrated Logistics, said: The
enhanced Logistics Control Centre in
Singapore underlines Kuehne + Nagels
commitment to provide modular, value-
added logistics management services
across supply chains and further
strengthens our growing worldwide
network of Integrated Logistics Control
Centres, consisting of six strategic
locations across the globe currently.
IJS Global GEFCO
awarded GDP cert
IJS Global GEFCO Netherlands (NL)
has been awarded a Good Distribution
Practice (GDP) certificate by the Dutch
Ministry of Health, with immediate
effect. The internationally-recognised
GDP certification plays a key role in
assuring the quality and integrity of the
transport and distribution of Medicinal
Products for Human Use and focuses on
the use of specialised equipment, well-
established pharmaceutical working
procedures, and continuously improving
pharma handling expertise.
This is a prestigious certificate that
is only granted to freight forwarders
who can demonstrate that storage and
distribution of medicinal products
take place strictly according to GDP
guidelines , said Sarina Walidin,
compliance manager, IJS Global GEFCO.
This certificate proves that we comply
with European Union guidelines and can
therefore be considered a very reliable
and quality-driven business partner for
handling medicinal products.
In 2014, IJS Global GEFCO NL
received its Wholesale Distribution
Authorisation (WDA), which enables the
company to store medicinal products.
The logistics specialist is also
involved in the International Air
Tr a n s p o r t A s s o c i at i o n ( I ATA ) s
Center of Excellence for Independent
Validators in Pharmaceutical Logistics
(CEIV Pharma) project, which aims
to help the entire air cargo supply
chain achieve pharmaceutical handling
excellence.
Along with the CEIV project, both
certifications will allow IJS Global
GEFCO NL to expand its reach in the
Life Sciences and Healthcare industry.
Last year IJS Global GEFCO opened a
24-hour Life Sciences and Healthcare
warehouse facility at Frankfurt Airport
in Germany.
IJS Global GEFCO also recently
opened a new temperature controlled
facility at Heathrow Airport in London,
UK , as part of ongoing plans to
strengthen its Life Sciences and
Healthcare offering.
The GDP certificate shows that the
company fulfils the requirements of the
European Commission Guidelines on
Good Distribution Practice of Medicinal
Products for Human Use and of
World Health Organization (WHO)
guidelines.
PAYLOAD ASIA | June 2016
 Customer Choice Awards
Online Voting
9 June 3 August
awards.payloadasia.com

Celebrating Excellence in the Air Cargo Industry

29 September 2016, Hong Kong

Customer Choice Awards & Industry Choice Awards

Overall Carrier of the Year Global Express Provider of the Year
Rising Star Carrier of the Year Regional Express Provider of the Year
Combination Carrier of the Year Global Logistics Provider of the Year
Belly Carrier of the Year Regional Logistics Provider of the Year
Low Cost Carrier of the Year IT Provider of the Year
Leasing Provider of the Year Green Award
Charter Operator of the Year Corporate Social Responsibility Award
Charter Broker of the Year X Factor Award
GSA/GSSA of the Year Editors Choice Awards
Asia Pacific Airport of the Year Lifetime Achievement Award
European Airport of the Year Marketing Award of the Year
Ground Handler of the Year Media Award of the Year

For more information on the conference topics, For sponsorship opportunities,

please contact please contact
Donald Urquhart, Editor Susan Ng, Assistant Sales Director
Tel: (65) 6521 9760 Tel: (65) 6521 9773
Email: donald.urquhart@contineomedia.com Email: susan.ng@contineomedia.com

Organiser Official Publication Supporting Publication Supporting Partners Supporting Associations

COV E R S TO RY
Lufthansa Cargo charts new course around
the turbulence
Lufthansa Cargos recent agreement with Cathay Pacific on far reaching cargo
cooperation, between the largest cargo hub in Europe and the largest in Asia and
indeed the world, is the latest plank in the German carriers evolving global strategy
to deal with the changing market. Donald Urquhart reports.
T
he most critical success factor
in this latest move by Europes
largest cargo carrier is mindset,
Michael G o entgens , dire ctor of
communications for Lufthansa Cargo
told Payload Asia. We will not act as
competitors anymore on the routes
between HK and Europe but as one team
with joint sales approaches to the market.
We will coordinate our activities
very closely and this is a major change
compared to rather loose alliances (such
as WOW in the past), he added.
This latest tie-up with friendly
competition repeats a similar strategy
that has been employed by the German
carrier with both Japans ANA Cargo
and United Cargo, although it appears
this time around the tryst could mean a
deeper relationship.
Joint sales on both aircraft families
will be automated and that includes a
close cooperation in IT aspects. We do
also want to offer customers one stop
shopping in as many locations as possible
so we want to have handling in one
facility at an airport wherever possible,
Goentgens added.
The need to innovate
Also abundantly clear is the need to
continue thinking outside the box, given
the global lethargy in the global air cargo
market that continues to stifle growth
and profitability in the industry.
The fact that the prolonged downturn,
one that has emanated from depressed
demand and voracious over-capacity,
has even caught up with arguably one
of the most successful cargo carriers in
the business is testament enough for the
need to innovate and take the business
to a new level.
While undoubtedly pressing on the
minds of Lufthansa management for
some time, the situation became more
visible as last year progressed with a
strong first quarter quickly giving way as
demand in the global air cargo markets
22
weakened steadily. On top of this, there
was turbulence in the Chinese market
and a very strong US dollar, which
affected export-driven industries in the
US in particular.
The numerous strikes of both the
pilots union and cabin attendants union
led to further reductions in transported
cargo volumes and revenues. With an
impairment for the LCCneo project (with
the construction of a new logistics centre
in Frankfurt having been postponed in
spring 2015 for two years initially), 2015s
adjusted EBIT (earnings before interest
and taxes) of 74 million was down 40 per
cent on the previous years 123 million.
Staying on course
While announcing the results in
March, chairman and CEO Peter Gerber
stressed that the company would stick
with the Lufthansa Cargo 2020 future
strategy in spite of the decline in profits:
We have set the right course, and the
first plants of Lufthansa Cargo 2020 are
starting to bear fruit, said Gerber.
With our new Boeing 777Fs, we are
flying more efficiently and saving more
fuel than ever before in our companys
history. The cooperation with ANA has
gotten off to a superb start and we will be
working very closely with another strong
airline, United Airlines, in the future. We
are also marketing the cargo capacities
of Eurowings long-haul flights, which
Peter Gerber
makes our network even more appealing.
Gerber also emphasised the successful
revamp of the IT landscape: This has
been an important requirement to getting
us working efficiently and successfully.
This step has also been a milestone in our
efforts towards achieving a fully digitised
air cargo business.
More planks
Growth is also being supported
through another plank, that being a
focus on offering an innovative product
range. Besides enhancing the existing
product portfolio, including the highly
competitive standard freight market, the
company will also address a completely
new market segment by addressing the
transport needs of individuals.
Through the myAirCargo product,
passengers and private individuals will
now be able to send any kind of personal
item via air freight, quickly, simply and
cost-effectively.
Lufthansa Cargo has often been a
pioneer in the past when it comes to
developing and launching new products
and services, said Gerber. We want to
live up to this again with myAirCargo.
Continued cost cutting is another
plank in Lufthansas strategy as a basis
for further success, in what is expected
to be a continually challenging market
environment going forward. In order to
remain competitive, the Lufthansa Cargo
Board initiated the C40 cost-cutting
programme in the autumn of last year.
It aims to reduce annual costs by at
least 40 million euros by 2018 with a
focus on staff and service provider costs.
We clearly have to further strengthen
our competitiveness on the cost side as
well if we are to be in a position to grow
profitably again in our core business, said
Martin Schmitt, Board member finance
and human resources.
The carrier also plans to further
leverage its key position in Europe, with
Gerber saying: We have a superb base in
PAYLOAD ASIA | June 2016
C OV E R S TO RY
Frankfurt Airport. Nowhere else on our
continent are air cargo volumes higher
than here in the heart of Europe.
Indeed, Lufthansa Cargo remains
Europes top air cargo operator with
volume declining just 2.4 per cent to 1.6
million tonnes last year, year-on-year,
while yields contracted by 0.7 per cent
and the load factor fell by 3.4 percentage
points to 66.3 per cent, well above the
industry average. The Lufthansa Group
subsidiary contributed 7.3 per cent to
total revenue last year compared to
Catering, 7.4 per cent; MRO, 10.2 per
cent; and the passenger airline business,
74.3 per cent.
Reality bites
But Gerber is clearly realistic, noting
that the operating environment will
be an extremely challenging market
environment in the years ahead. The
reality was driven home in the first
quarter this year which saw Lufthansas
Logistics division which includes
the cargo division, the Aerologic joint-
venture and ULD lessor Jettainer
slipped into the red with an EBIT loss
of 19 million compared with a positive
52 million in the same quarter last year.
Revenue at the division fell more than
21 per cent to 480 million while capacity
dropped 1.6 per cent and RTKs dropped
4.8 per cent. Cargo load factors were 67.6
per cent and total operating income fell
23.8 per cent to 493 million.
Lufthansa Cargo is under severe
pressure, said the groups CFO Simone
Menne bluntly. We only expect earnings
to improve again in the fourth quarter,
she added on an optimistic note.
Confronted by this nearly unheard
of loss, Menne said that Lufthansa
Cargo was taking additional steps to
reduce costs and that it was reviewing
its business model and fleet strategy,
including the use of full freighters.
We will look into the strategy and
consider the size of the freighter fleet, and
further measures of the cargo business
model. We are now looking at every
single cost item. We have four MD-11Fs
that are nearly fully depreciated. We will
look at our cargo strategy during the
year, including our fleet, Menne said.
No date had been given for the results
of this review.
The growth focus
For 2016 Lufthansa will increase cargo
capacity slightly as a result of growth in
www.payloadasia.com | June 2016
belly capacity with new passenger aircraft
coming onboard, but this will be partly
offset by reduced freighter capacity with
two MD-11s being parked.
M e a nw h i l e , Lu f t h a n s a C a rg o
continues with its multi-plank strategy
which also includes keeping a sharp focus
on promising markets and adjusting
capacity as needed.
Earlier this year in Mumbai, Lufthansa
Cargo board member responsible
for product and sales Alexis von
Hoensbroech noted the Indian market
continues to be a healthy market for the
cargo carrier. Lufthansa currently offers
freighter services to Delhi once per
week, Hyderabad three times per week, Aerologic is a joint venture between Lufthansa
Cargo and DHL Express, with a maindeck fleet
Chennai twice per week, Bengaluru
of eight B777Fs based out of both Leipzig/Halle
twice per week and Mumbai five times and Frankfurt airports.
per week.
Von Hoensbroech noted that while the
capital with Ashgabat and Baku. The
carrier might consider adding capacity
carrier will also fly an MD-11F to Doha
to Delhi, but our flexibility to deploy
once a week and there will now be a direct
additional freighters is fairly limited
flight from Frankfurt to Seattle utilising
[given the lay-up of MD-11s].
an AeroLogic B777F which will then fly
And then there is the issue of
on to Los Angeles before returning to
competition. We are generally quite
Frankfurt.
happy with our network, but we have
Lufthansa Cargo will bring in a larger
to acknowledge that the competitive
B777F aircraft for freighter flights from
pressure in India is getting higher and
Frankfurt to Tokyo and Seoul (six times
higher because of the Gulf carriers that
a week) and Beijing (four times a week)
are flooding the market with capacity,
which began end-March.
said von Hoensbroech.
Frankfurt and Hong Kong will be
Last year, the India market grew by
linked by daily flights and in addition
7.0 per cent but we were a little bit less
to the Saturday connection with an
than flat and thats clearly a sign of the
AeroLogic B777F and Lufthansas cargo
increasing competition, so its not easy
arm will also fly an MD-11F to the south
to simply add freighter after freighter.
coast of China six times a week, instead of
That said, if I look at the most recent
four. The frequency to Ho Chi Minh City
figures there is growth again on our own
doubles from one to two weekly services.
services in India and the best argument
A range of new belly hold services
for additional frequencies is growth and
have also been rolled out as result
profitability, he added.
of service changes on the passenger
And with its new summer schedule
network, including: Panama City five
in effect, a weekly MD-11F service from
times a week since the beginning of
Frankfurt to Moscow Domodedovo has
March with an A340 and also San Jos,
been added that connects the Russian
California from July.
Lufthansa has also been selling the
cargo capacity of the Eurowings long-
haul fleet with an A330 already serving
Varadero, Punta Cana and Puerto Plata
from Cologne. Thailands Phuket and
Bangkok were added from the end of
March, along with Cancun and Mauritius
from May, Boston from June and Miami
from September.
Frequencies to Shanghai will also
increase, with Austrian Airlines serving
the Chinese metropolis from Vienna five
times a week initially from April and then
Alexis von Hoensbroech daily with a B777 from May.
23
AIRP ORTS & G R O U N D H A N D L ING
Auditors examine Hactl equipment and procedures
in minute detail, to ensure compliance with ISAGO
standards.
Hactl achieves 3rd
flawless ISAGO audit result
Hong Kongs largest independent
cargo handler has passed its biennial
ISAGO (IATA Safety Audit for Ground
Operations) external audit, once again
achieving a perfect score. The ISAGO
standard covers every aspect of Hactls
operations and facilities, with a team of
26 coordinators ensuring compliance
throughout all departments.
Hactl was the first cargo handler in
the world to achieve ISAGO certification,
when the new standard was introduced
in 2008. Hactl has since achieved flawless
results in each of its three most recent
audits (2012, 2014, 2016), with zero
findings and zero observations.
The ISAG O programme is an
internationally-recognised and accepted
evaluation system, designed to assess
the operational management and control
systems of ground service providers.
ISAGO aims to improve safety standards
and reduce risks related to ground
operations.
ISAGO is based on industry-proven
quality audit principles, with audits
conducted in a standardised manner
to ensure performance is measured
against consistent parameters. All
audits are independently conducted by
IATA-approved assessors. The ISAGO
programme is governed by the ISAGO
Standards Manual (GOSM); IATA
continues to update ISAGO standards
based on stakeholder input, practical
experience and the latest consensus
in operational quality management
principles.
The ISAGO auditors remarked on
the rigid compliance of Hactls Safety
Management System (SMS) with the
international aviation industry standard,
ICAO Annex 19 Safety Management
System. This enabled Hactl to satisfy the
24
many totally new audit items in Edition With this new organisation, we can
5 of the ISAGO GOSM, which came into work even closer together in improving
force just days before Hactls latest audit. our cargo area to the benefit of all.
Brussels Airport FRA aims to be Europes
community forms Air largest CEIV hub
Frankfurt is aiming to become the
Cargo Belgium largest certified pharmaceutical gateway
Brussels Airport launched a new air
in Europe with a number of companies
cargo community organisation from
concurrently pursuing the IATA CEIV
18 April named Air Cargo Belgium
Pharma certification with the support
(ACB). This new organisation groups
of the Air Cargo Community Frankfurt.
all companies at BRUcargo, as well
To date two companies in Frankfurt
as any related stakeholders or official
the Perishable Center and Bollor
organisations, with the clear aim to
Logistics Germany have successfully
further professionalise and improve the
completed the IATA CEIV Pharma
cargo environment at Brussels Airport
certification. Another six companies
to the benefit of all companies.
are either already in the process or are
Among the aims of the ne w
starting the nine-month certification
organisation are, lobbying the government,
process. These include: Celebi Cargo,
dialogue with customs and the civil
FCS Frankfurt Cargo Services, Fraport
aviation authority, as well as createing
(Ground Handling Services), Lufthansa
working groups on topics such as
Cargo (airline operations as well as
digitisation, operational efficiency and
Lufthansa Cargo Cool Center), LUG
pharmaceuticals.
aircargo handling and Swissport Cargo
Traditionally, there have been several
Services Deutschland.
organisation active at Brussels Airport,
The products and services related to
grouping a certain part of the logistical
the transport of pharmaceutical shipments
chain such as airlines or forwarders.
have always been world class in Frankfurt
These organisations continue to exist but
and serve as a role model for many, says
also participate in this new organisation,
Joachim von Winning, executive director
as they are complementary and serving
of Air Cargo Community Frankfurt.
different needs to the cargo community.
With comprehensive certification
Chairman of the new organisation
of the entire process chain we will have
will be Steven Polmans (head of cargo
independent confirmation and can
at Brussels Airport), supported by 2
recommend Frankfurt as the Pharma-
vice chairman: Alain De Heldt (current
Gateway for Europe. At the same time
chairman of BAFI, the forwarders
we also see the certification process as
organisation) and Bas van Goch (current
an opportunity to optimise services and
chairman of ACMAB, the cargo airlines
processes.
organisation).
In doing so we want to respond even
Noting that Brussels Airport, has for
better to the needs and requirements of
a number of years, participated actively
freight forwarders and pharmaceutical
in improving the cargo at the airport,
companies. IATA CEIV Pharma provides
facilitating and taking the lead on several
the perfect setting and implementation
topics, Polmans noted it is the cargo
should be completed by early 2017 at the
community and the different companies
latest, with some companies even earlier,
at BRUcargo that make the difference.
von Winning said.
Without them, nothing happens, he said.
The Frankfurt air cargo community
will be offering a wide range of services
based on the CEIV Pharma standards
said von Winning. He noted that more
than 95 per cent of the freight handling
companies and approximately 85 per cent
of those providing apron transportation
and loading services at Frankfurt Airport
will be certified.
In addition to this , numerous
international airlines with key stations
in Frankfurt, as well as major freight
Founding members of Air Cargo Belgium (ACB) forwarders are also becoming certified
PAYLOAD ASIA | June 2016
AIRP ORTS & G R O U N D H A N D LING
in accordance with IATA CEIV Pharma.
The more than 100,000 tonnes of
pharmaceutical freight a year make
Frankfurt Europes number one pharma-
hub. However, the IATA CEIV Pharma
certification is only one area where the Air
Cargo Community Frankfurt is involved
with its competence team Temperature
Controlled Transport Pharma for the
transport of pharmaceutical products via
Frankfurt.
As such it is checking each and
every step of the process for possible
optimisation potential. In addition to
this and together with the companies,
the Community is developing new shared
products, such as the Cool Dolly. This
complements the fleet of the thermally
air-conditioned vans in use, making it a
cost-effective solution for temperature-
controlled pharmaceutical shipments on
the apron.
In addition, the Community engages
in a close exchange with consignors and
representatives of the pharmaceutical
industry to make certain that the products
and services on location, optimally meet
the needed requirements.
One part of this is the programme
visit FRA pharma, where representatives
of pharmaceutical companies visit the
location in order to be informed about
the high level of performance and the
many possibilities.
Shanghais PACTL
continues growth in Q1
Shanghai Pudong Intl Airport Cargo
Terminal Co., Ltd. (PACTL) has continued
its growth path achieving two new records
in the first quarter of 2016. Having
processed 142,297 tonnes of air cargo, the
company reached an increase of 6.8 per
cent year-on-year in the month of March.
In total, PACTLs cargo volumes grew
by 1.5 per cent to 367,791 tonnes in the
first three months of 2016. These were
the strongest results in both the month
of March and the first quarter of any year
in the companys history.
PACTLs import cargo volumes
increased by 1.4 per cent year-on-year to
a total figure of 157,270 tonnes during the
first three months. International imports
rose by 1.9 per cent to 146,241 tonnes,
while domestic imports decreased by 4.5
per cent to 11,029 tonnes.
The companys export cargo volumes
grew by 1.5 per cent to a figure of 210,521
tonnes. International exports showed
a growth rate of 1.8 per cent reaching
www.payloadasia.com | June 2016
a total figure of 198,337 tonnes, while
domestic exports declined by 2.6 per cent
to 12,184 tonnes.
In line with the strong overall
performance of Shanghai Pudong
International Airport, we managed to
continue our growth path on a level
similar to the previous year where we
achieved a record result of nearly 1.6
million tonnes of air cargo.
Following several investments in
our infrastructure and the continuous
enhancement of handling processes, we
were even able to further increase our
market share, says Lutz Grzegorz, vice
president of PACTL.
The company processed 49.2 per cent
of the air cargo handled at Shanghai
Pudong International Airport (PVG) in
the first quarter of 2016, an increase of
0.4 per cent in comparison with the first
quarter in 2015.
VD Group and
Sheremetyevo join forces
Volga-Dnepr Group and Sheremetyevo
International Airport (SVO) have signed
an agreement on long-term and mutually-
beneficial cooperation in the field of cargo
hub development at SVO to raise air cargo
quality on par with high global industry
standards.
The two Moscow-based companies
said this is strategic step and a milestone
in the history of the companies long-
term partnership and aims to join forces
of the airport and the airline in the areas
influencing development of air cargo
business.
Besides cargo infrastructure
enhancement at the airport, the agreement
will encourage cooperation with other
international airports in order to increase
cargo flows and exchange experience
in terms of implementation of certain
business-related projects and innovations.
Lieges HORSE INN opens
in for Rio Olympics
Belgiums Liege Airport has opened the
HORSE INN, a new facility designed to
upgrade its overall service provision for
the transportation of live horses which
require specific rest and loading areas.
The HORSE INN, with a total
investment of 2.6 million, is not only
intended for horses being transported by
air but also to accommodate them during
transit by road and was timed to be ready
for the upcoming Rio Olympics.
The official opening of Liege Airports HORSE INN
With a view to developing this
particular sector, Liege Airport has
called on recognised experts, including
Grgory Wathelet, the Belgian no 1 show
jumper and European runner-up. He will
now receive support from the airport, in
return raising its international profile.
In addition, Flix-Marie Brasseur, twice
world individual driving four-in-hand
champion, is now an Ambassador for the
HORSE INN.
dnata hits 1 million tonne
milestone at DWC
Dnata, one of the worlds largest
air services providers, reached a key
milestone in its operation at Dubai World
Central (DWC), handling over one million
tonnes of air freight since its first full year
of operation in 2011. In just five years
dnata has seen a staggering 90 per cent
increase in freight volume, recording
170,260 tonnes in 2015, up from 89,729
tonnes in 2011. The performance has far
exceeded the original growth forecast of
20 per cent.
Bernd Struck, dnatas senior VP, UAE
Cargo, said: This is a hugely significant
milestone for all of us at Dubai World
Central. The growth we have experienced
over the last five years is thanks to not
only dnata, but the combined hard work
and commitment of Dubai Airports
and all of the stakeholders involved in
creating a world-class logistics platform
with unparalleled connectivity, speed and
efficiency.
Struck continued: DWC is the perfect
gateway, offering competitive pricing,
as well as flexibility and the necessary
infrastructure to accommodate all of
our customers requirements. Ever since
we accepted our first flight, dnata has
continued to enhance its structure,
equipment and services to provide a one-
stop cargo offering. This is supported by a
dedicated and highly motivated team, all
of which are committed to helping our
customers grow their business.
25
E- COMME RC E
K+N to manage Unilever e-commerce centre
K
uehne + Nagel has been chosen
by Unilever for the storage and
e-commerce order fulfilment of its
recently introduced tea-brewing machine
launched under the premium brand of T.O
by Lipton. The service scope includes
warehousing and distribution services
out of the fulfilment centre in Contern,
Luxembourg, as well as a range of value
added services. These services include
customised packaging to maximise process
efficiency and minimise waste.
For order processing a pick-by-light
system has been implemented to ensure
fast processing times and real time
Alibaba under pressure to crack down on fakes
T
he Alibaba Group will continue
to crack down on counterfeit
goods in a programme under
the International AntiCounterfeiting
C o a l i t i o n ( I AC C ) , t h e C h i n e s e
e-commerce giant said after the
coalition suspended its membership
recently.
Describing counterfeiting as a
complex, industry-wide issue, the
Internet giant that owns Chinas biggest
online shopping platform Taobao.com
vowed to continue to work with brands,
governments and industry partners in
combating fakes, whether or not it
was a member of the global anti-
counterfeiting body.
In a statement, Alibaba said its
recent membership suspension from
the body will not affect the formulation
and implementation of our policies,
adding that the company will continue
Amazon to launch of pan-Euro fulfillment
A
mazon has announced the launch
of its Pan-European Fulfilment
by Amazon (FBA) programme.
This new service will help sellers of
any size export to millions of Amazon
customers across the EU more efficiently
than ever before, the e-tailing giant said
in a statement. Amazon customers in
turn will be able to receive thousands of
new products from sellers across the EU,
while benefitting from faster shipping
times and lower delivery costs.
The launch is further evidence of
Amazons disruptive ambitions to
move deeper into logistics in Europe
26
visibility of order status. The distribution
to the end consumers will be ensured
through a flexible network of European
parcel integrators that is being managed
by K+N in Luxembourg.
When considering the fact of entering
the B2C market for our premium brand
T.O by Lipton, K+N appeared to be the best
provider due to its recognised expertise in
e-commerce. The high involvement and
professionalism of teams in Luxembourg
have contributed to a perfect execution
on all steps of the supply chain, allowing
Unilever to confirm and develop its growth
ambition in e-commerce for the coming
working to protect the interests of
international brands.
Alibaba has long been pegged as a
haven for cheap imitations of international
brands of all stripes, including everything
from high-end womens hand bags to
home appliances, apparel, car parts, baby
products, consumer electronics including
lithium batteries and even pharmaceuticals.
Fortune Character Institute, which
studies consumer consumption patterns
in China, says counterfeit luxury products
in the country outnumber genuine items
six to one.
The inclusion of Alibaba within the
IACC reportedly created unhappiness
amongst a number of members, who
said the Chinese company was not doing
enough to prevent and remove fakes
from its online platforms. As a result,
Alibabas membership was suspended
only one month after the IACC created
- essentially serving as a Europe-wide
third-party logistics provider (3PL) by
offering retailers the use of its logistics
network for warehousing and fulfilment,
as well as the benefits of its scale and
purchasing power.
Pan-European FBA enables sellers
to deliver their inventory to a local
fulfilment centre for Amazon to take care
of the logistics; automatically shipping
sellers products across its European
Fulfilment Network according to the
anticipated local customer demand.
Amazon will then pick, pack and ship
orders to customers from the closest
years, states Herv Pignault, logistics
procurement manager at Unilever.
Gianfranco Sgro, member of the
Management Board of the Kuehne + Nagel
International AG, responsible for Contract
Logistics, commented: We are pleased
to expand our global partnership with
Unilever by implementing the European
fulfilment centre for T.O by Lipton.
Kuehne + Nagel strategically addresses
the logistics needs of global consumer
customers through its Centre of Excellence
for e-commerce, which develops state-of-
the-art supply chain solutions specifically
designed for omni-channel business.
a new membership category enabling the
company to join.
Meanwhile, Alibaba said it would go
on implementing the IACC MarketSafe
Expansion Programme, which expedites
the procedure of taking down fakes
that have been identified on its Internet
marketplaces.
The company added that in its view,
the only way to solve the problem of
counterfeit goods was through strong
industry collaboration, and we believe
that intermediaries, like Alibaba, must
be an integral part of the solution.
Alibaba has said that its biggest
website, Taobao.com has revised the
rules on luxury brands on its platform
this month as part of its efforts to fight
fakes. From 20 May, luxury product
sellers will be required to submit
evidence to prove the goods are genuine
before they can list them for sale online.
fulfilment centre where the product is
available, as well as handling all customer
service inquiries for the seller. For the
delivery, sellers will only pay the local
fulfilment fee of the marketplace in
which the product was ordered, Amazon
underlining that there is no European
Fulfilment Network cross-border fee.
Tens of thousands of SMEs already
sell to Amazon customers across the EU
with over 50 per cent of EU sellers, selling
on more than one Amazon Marketplace
in the EU as at Q1 2016. Globally, FBA
delivered more than one billion items to
customers worldwide in 2015.
PAYLOAD ASIA | June 2016
EX P RE SS & M A IL
UPS partners on Rwanda
drone network
The UPS Foundation has struck a
partnership with Zipline, a California-
based robotics company, and Gavi,
the Vaccine Alliance, to explore using
drones to transform the way life-saving
medicines like blood and vaccines
are delivered across the world. To the
support the initiative UPS has awarded
a US$800,000 grant to support the initial
launch of this initiative in Rwanda.
This public-private partnership
combines a century of global logistics
expertise, cold chain and healthcare
delivery from UPS with Ziplines national
drone delivery network and Gavis
experience in developing countries
focused on saving lives and protecting
health in the most remote places of the
world.
Public-private partnerships
are the key to solving many of the
worlds challenges, with each partner
contributing its unique expertise, said
Eduardo Martinez, president of The
UPS Foundation and chief diversity and
inclusion officer at UPS.
www.payloadasia.com | June 2016
Australias StarTrack
network set to launch
Australia Post along with Qantas is set
to launch a dedicated domestic freighter
network for StarTrack, a subsidiary that
provides e-commerce-driven, parcel
delivery and supply chain solutions for
local, international and online businesses.
To be launched in July this year, Qantas
will provide three B737Fs and three
BAE146-300Fs as part of a A$500 million
(US$366.8 million) contract signed last year
with Australia Post to carry domestic mail,
parcels and express post until mid-2020.
This strategic alliance creates a greater
opportunity for us to be first to deliver for
our customers, combining our unrivalled
delivery network and existing freight
network with a dedicated and flexible air
network, said Ahmed Fahour, Australia
Post group CEO and managing director.
Qantas will also offer access to the
collective belly space on domestic Qantas
and Jetstar passenger flights, as well as
eight more freighters. This network,
combined with the strength of our
partnership and interline agreements,
gives Qantas Freight significant network
reach to more than 500 international and
80 domestic destinations, Qantas Group
CEO Alan Joyce said.
Time:matters expands
Sameday from Lisbon
Time:matters, the expert for global
Special Speed Logistics, continues
to expand its Sameday network with
customers now able avail of numerous
direct connections to and from Lisbon,
Portugal from April.
By directly integrating TAP Air Portugal
into the time:matters Sameday network,
an additional 20 direct connections can
be offered between Lisbon, the capital
of Portugal, and numerous European
business centres, such as Frankfurt,
Munich Vienna. Prague will soon be
integrated, with plans for further stations
to follow.
Combined with the exceptional
turnaround times on the ground, transport
time can be reduced to a minimum, said
Franz-Joseph Miller, managing director
of time:matters citing a door-to-door
shipment from Lisbon to Vienna, which
can be completed in less than five hours.
27
FREIGHTER SUPPLEMENT
FREIGHTER SUPPLEMENT
Atlas Air to operate 20 B767-300 freighters
for Amazon
Under the long-term agreements announced recently Atlas will, starting in the second
half of this year, operate 20 B767-300 converted freighters for Amazon on a CMI
(crew, maintenance and insurance) basis by the groups airline subsidiary Atlas Air.
A
tlas Air Worldwide Holdings,
Inc. announced today that it
has become the latest aviation
partner of e-commerce retailing giant
Amazon with an agreement to operate
20 freighters on behalf of the company
which will take up as much as a 30 per
cent share in Atlas.
Under the long-term agreements
announced today Atlas will, starting
in the second half of this year, operate
20 B767-300 converted freighters for
Amazon on a CMI (crew, maintenance
and insurance) basis by the groups airline
subsidiary Atlas Air, as well as dry leasing
by its Titan Aviation leasing unit.
The dry leases will have a term of 10
years, while the CMI operations will be
for seven years (with extension provisions
for a total term of 10 years). Operations
under the agreements are expected to
begin in the second half of 2016 and ramp
up to full service through 2018.
28
We are excited to begin a strategic
long-term relationship with Amazon to
support the continuing expansion of its
e-commerce business and to enhance
its customer delivery capabilities, said
president and CEO William J. Flynn. We
appreciate Amazons confidence in our
capabilities, global scale and operating
excellence, he added.
As part of the deal Atlas Air Worldwide
granted Amazon warrants to acquire up
to 20 per cent (after the issuance) of Atlas
Air Worldwides common shares - with
the option for a further 10 per cent going
forward - which the group said was part
of the inherent value creation and to align
interests and strengthen the long-term
relationship.
These share will be sold to Amazon
at a price of US$37.50 per share over a
period of five
years, with vesting tied in part to the
commencement of operations of the 20
B767-300 freighter aircraft and other
conditions while the additional 10 per
cent is structured over a period of seven
years.
Dave Clark, Amazons senior vice
president of worldwide operations said:
We are excited to welcome a great
provider, Atlas Air, to support package
delivery to the rapidly growing number
of Prime members who love ultra-fast
delivery, great prices and vast selection
from Amazon, said .
The move is part of the e-commerce
giants moves to take more control
over its supply chain and reduce its
dependence on integrators such as UPS
and FedEx which saw it strike its first
similar deal with Air Transport Services
Group (ATSG) In March, involving 20
B767 freighters. It has built a ground
network of couriers and new warehouses
near or within urban centers for faster
and cheaper delivery.
PAYLOAD ASIA | June 2016

Newbuilds to make up 75% of large widebody
freighters over next 20 years
A
CMG, a leading global
consultancy, released its 20-
year Freighter Forecast for 2016,
forecasting the global fleet will grow to
2,821 freighter aircraft by the year 2035
based on annual growth of 4.3 per cent.
With a fleet currently standing at
1,636 units, during the twenty-year
period more than 2,400 freighters
will be required to meet growth and
replacement needs, ACMG said.
Th e n e w - b u i l d u n i t s w i l l b e
concentrated at the top end of the
market, as nearly two-thirds of these
will be in the large-widebody freighter
market segment, according to the
report. In this large-capacity segment
ACMG predicts that 75 per cent
of the added freighters will be new
production aircraft.
This contrasted with the narrowbody
freighter market in which ACMG
forecasts that all of the units added over
FOR BOOKING, CONTACT
Email:events@stattimes.com / aca@stattimes.com
www.payloadasia.com | June 2016
FREIGHTER SUPPLEMENT
the next twenty years will be P-to-F
conversions.
Much of the good news on the
freighter market today is coming from
the narrowbody sector, said Robert V.
Dahl, managing director, ACMG. Will
that continue? Things are less settled in
the widebody market. As one market
participant commented to us: The
handwriting is on the wall.there will
be fewer widebody conversions and
more production freighters. This trend
is significant.
The rep or t includes ACMGs
prediction for the freighter fleet make-
up in 2035 by aircraft type, taking into
account our assessment of new-build
freighter production, passenger-to-
freighter (P-to-F) conversion activity,
and the retirement of freighters from the
existing freighter fleet.
This enhanced 20-Year Freighter
Forecast includes ACMGs expectations
Make sure to be there
WEBSITE
www.stattimes.com/aca2017
fo r th e f l e e t , a n d th e av i at i o n
consultanc y expects demand for
freighter aircraft to continue trending
higher, albeit not at the same rate as
before the credit crisis.
The ACMG forecast is the only
in-depth, independent assessment of
future demand for freighters. ACMGs
forecast is unique in projecting fleet
growth in five-year increments.
Additionally, purchasers receive
the Freighter Forecast Analysis Tool
that allows users to test the sensitivity
of the forecast results to future
levels of demand growth and aircraft
pro ductiv ity enhancement s , and
to shifts in the portion of freight
carried in passenger aircraft bellies.
In sum, the tool allows purchasers
to easily analyse how their own
freighter-related activities would be
impacted under various user-specified
assumptions.
21-23 FEBRUARY SOUTH AFRICA
Organized By
29
FREIGHTER SUPPLEMENT
PACAVI confirms first A320/321 P2F orders
P
ACAVI Group chief executive
Stephan Hollmann reported on
the progress of the companys
first-to-market Airbus A320/A321
passenger-to-freighter (P2F) conversion
programme today, confirming first orders
for the PACAVI Freighter LITE.
Customers include Colt Aviation/
Colt Cargo, Nor wegian company
Airline Management AS, and two more
companies that cannot be revealed
yet. An additional launch order has
been issued by an undisclosed leasing
customer.
Brazil-based Colt has ordered two
converted A321 freighters with an
option for an additional one; Airline
Management AS will acquire six A320
freighters.
Its the kind of companies like Colt
AEI wins VALLAIR B737-400SF P2Fs
A
eronautical Engineers, Inc.
(AEI) has signed a contract
with European-based aviation
asset management company, Vallair, to
provide it with four 11 pallet position
B737-400SF freighter conversions. All
of the conversions will be modified by
Commercial Jets Dothan, Alabama facility
with the first one commencing in May
2016, followed by the remaining three
modifications in June, July and September
of this year.
The AEI B737-400SF is the only
Precision bags 8 China B757-200 conversions
P
recision Aircraft Solutions has
received a total of eight new orders
for B757-200PCF passenger-to-
freighter conversionstwo from new
airline, China Air Cargo Corp and eight
from China Postal Airlines, based in
Beijing.
AEI wins order for two B737-400SF conversions
A
eronautical Engineers, Inc. (AEI)
has announced the signing
of a contract with Automatic
to provide the company with two 11
pallet position B737-400SF freighter
conversions. The two aircraft, both built
in 1993 are standard gross weight aircraft
30
Cargo that our turnkey packages of
airframe sourcing, purchase, customized
conversion, and leasing or sale are
tailored for. The small to medium sized
operator market is huge, and we have just
the right product for these customers,
says Hollmann.
Alex Eckmann, CEO of Colt Aviation,
adds: The PACAVI A321 freighters
are the perfect addition to our fleet of
Boeing 737-400 and 757-200 freighters;
with the perfect range and payload, state
of the art fly-by-wire technology and low
operating costs. They will be excellent
workhorses and contribute greatly
to our innovative, high-performance
logistics concept.
The PACAVI Airbus A321 Freighter
LITE will carry approximately 27 tonnes
of cargo, flying routes of up to 3,500
passenger to freighter conversion product
that offers operators ten full height 88
x 125 container positions. This unique
capability is achievable due to AEIs
Main Deck Cargo Door location which
is approximately 40 further back than
the competition. The additional container
position increases AEIs volumetric
carrying capability by 10 per cent which
places the freighter in a class by itself,
AEI said.
This unique flexibility has been
designed by AEI to allow cargo operators
We believe the Precision freighter
and our full-service engineering team
add tremendous value to any fleet, said
Precision president Gary Warner. So to
have been selected by a well-established
carrier and an all-new airline for multiple
aircraft is an honor.
and will be modified by Commercial Jets
Miami,FL facility. The freighters will be
re-delivered to Automatic in September
2016 and January 2017, respectively.
The AEI B737-400SF is the only
passenger to freighter conversion product
that offers operators ten full height 88
nautical miles, depending on load
weight.
The Freighter LITE conversion
includes a new 140-inch main deck
cargo door, a Class E cargo interior, a
9G barrier and a manual cargo loading
system. A typical configuration would
accommodate up to 13 88-inch x 125-
inch x 82-inch unit load devices (ULDs)
or pallets and one smaller container or
88-inch x 61.5-inch pallet, resulting in
a main deck container volume of about
5,044 cubic feet and an additional lower
deck cargo volume of 1,828 cubic feet.
The PACAVI Group specialises in sales
and leasing of aircraft, STC programme
management, aircraft conversion
engineering and related activities.
Its principal offices are in San Diego
(California) and Bremen (Germany).
to immediately adapt to multiple ULD
configurations at a moments notice.
VA L L A I R s p e c i a l i s e s i n t h e
acquisition of end-of-life A320, B737
and ATR aircraft and to date, the
company has acquired more than 25
A320s, 20 B737s and 30 CFM56-3/-
5 power plants. The company also
provides solutions for aircraft and
engine trading and leasing, spare parts
sales and inventory management, cargo
conversions and commercial aircraft
disassembly and recycling.
Precision says its B757-200 freighter
and combi configurations lead the
conversion industry with the lowest
operating empty weight in production,
the highest payload possible, the greatest
weight upgrades available, and the only
winglet-compatible design in the world.
x 125 container positions. This unique
capability is achievable due to AEIs
Main Deck Cargo Door location which
is approximately 40 further back than
the competition. The additional container
position increases AEIs volumetric
carrying capability by 10 per cent.
PAYLOAD ASIA | June 2016
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Disruptive technology impacts the air cargo supply chain Disruption

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Dangerous The Lithium battery debate continues to heat up

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BE L LY AC H E

The next level of terrorist threat the

mammary bomber!
A mother of two was recently humiliated after being forced
by Heathrow Airport security to toss almost 15 litres of breast milk.. Jessica Coakley Martinez
hit out at the UKs biggest airport in an open letter published on n Facebook
Facebook, calling the rules incredibly unfair
unfair.
Restrictions for carrying liquids on flights departing the UK have been in place since 2006, when a terrorist plot to detonate
liquid explosives on seven transatlantic airliners was stopped.
But Martinez, who was not travelling with her eight-month-old son at the time, vented frustration at her treatment, saying:
You made me dump out nearly two weeks worth of food for my son. Were guessing it was fair bit of work as well, but really we
cant say as producing breast milk is not something any of the Belly Achers have attempted yet.
According to Heathrows website, exceptions are made for baby food and baby milk, but the passenger must be travelling with
an infant and that excess liquids should be carried as hold luggage.
Martinez, from the US ahh yes, we see part of the problem already admits she should have checked the rules (really? yah
think?), but she believes that not allowing a mother travelling alone to take breast milk through security was incredibly unfair
and exclusionary in consideration of all of the other working mothers like me.
She said that most of the 15 litres of milk was frozen solid but that she was ordered to dump that too. I was willing to let
go of the liquid milk. But you also wanted the solid milk because it could melt and become a liquid, she said. Yes, that does tend
to happen according to some mysterious physics stuff.
I now dont have the option to solely breastfeed my son because I dont have enough milk to supply him while Im at work,
despite all of my best efforts. Security is the priority, but it isnt and shouldnt be your only goal, and it certainly shouldnt punish
those you intend to protect.
Hmmm, while we do feel for Ms Martinez, it seems a wee bit inconceivable she hasnt heard about the 100ml liquid limit. And
to be fair, it could have been explosive milk!
POSTSCRIPT: It turns out that Ms Martinez isnt the first to get done for breast milk at security. Shes actually in the company of
Hollywood actress Alyssa Milano who had 10 ounces of the precious liquid confiscated at Heathrow (were starting to see a pattern
here!) last year. Solilciting the support of her fans, Milano tweeted: @HeathrowAirport just took my pumped breast milk away. 10
ounces. Gone. Not okay. They said they would let the pumped milk through if I had the baby with me. Why would I need to pump
if I had the baby with me????
Yes well, good point! So really the take home lesson here is dont try to bring that unaccompanied milk with you! Bring the
baby! Or just leave the milk in its natural storage errr um, containers.

Whats a shower without a bit of soap?

Chinas Chang An Airlines endured a very
embarrassing first day back in the air as an independent
carrier after firetrucks at Zhuhai Airport accidentally
sprayed B737-800 with fire-suppressing foam instead
of water during the traditional water cannon salute.
At least the airport fire fighters know what that other
lever is for on the fire truck! Guess reading the owners
manual wasnt high on the priority list.
The aircraft, which had just arrived from its inaugural
flight from Xian Xianyang on 9 May was forced to undergo several safety checks after the foam was found
f d to have
h blocked
bl k d the
h engine
i
intakes. The return flight was subsequently cancelled and the passengers put up in hotels.
But after watching the online video of the foam job, the Belly Achers were left a bit perplexed. In the video the aircraft can be
seen approaching the fire trucks, one of which is already spewing a fountain of foam high in the air. One would think that the pilots
might have suspected something a bit odd considering water and foam dont really look the same! Why they didnt stop is a mystery,
but perhaps they reckoned it was Champagne (Great Wall) being sprayed, or perhaps they just wanted to have a nice shiny aircraft.
POSTSCRIPT: As fate would have it, in the midst of writing up this foamy foible, we received a press release in our mailboxes from
the Singapore Aviation Academy, a training arm Singapores aviation authority announcing the commissioning of a new generation of
the Airport Foam Tender Driving Simulator (AFTDS)! Well how about that we certainly know of a few people in Zhuhai who could
use a bit of a refresher course!

32 PAYLOAD ASIA | June 2016