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OPENING

PLENARY
Chairman’s Opening
Remarks
Desmond Vertannes, Global Head of Cargo,
IATA
2010: The year air cargo rebounded!

 26% growth versus 2009

 Helped drive business


travel recovery

 Major contributor to
airline profits

3
IATA Cargo achievements in 2010
 e-commerce
efficiency
 Cargo security
propositions
 Industry standards
best practices

 But……

4
Will it continue?

Security

5
Will it continue?

Economic challenges

6
Will it continue?

Unforeseen events

7
Will it continue?

Oil prices escalating

8
Moving forward…

What role can we play, as


an industry, to raise the
profile for governments,
airline CEOs and
consumers?

9
Keynote: IATA State of the
Industry
Giovanni Bisignani, Director General & Chief
Executive Officer, IATA
Giovanni Bisignani
Istanbul, March 2011

To represent, lead and serve the airline industry


Air cargo – connecting the world
We are a $68 billion industry
Transporting 35% by value of all
goods traded internationally
This cannot be achieved
by airlines alone
Governments, customs
authorities, freight
forwarders
and suppliers
Governments, customs
authorities, freight
forwarders
and suppliers
Governments, customs
authorities, freight
forwarders
and suppliers
are critical
partners in the
value chain
We must all
be focused
on serving
the needs of
our common
customer:
The shippers
Aviation is
shell-shocked
and fragile
We made some
money last year
$16 billion
We made some
money last year
$16 billion

…it was just


a 2.9% margin
After a decade in which
we lost $50 billion
After a decade in which
we lost $50 billion

any number
that was not
red was
a major
achievement
Our outlook for 2011:
Our outlook for 2011:
As oil prices rise
profits will fall
Assuming an average
oil price of $96 p.b.

 Profits will
plummet 46%
 To $8.6 billion
 A pathetic
1.4% margin
It could have
been much
worse
The global
economy
continues
to improve
 GDP growth
forecasts have been
upgraded to 3.1%
 We expect cargo
to grow 6.1% to
46.2 million freight
tonnes
 We see yields
improving by 1.9%
There are risks even
to this weak forecast
 With a 1.4%
margin there
is no buffer to
withstand a shock
We must shore up the
competitiveness
of this industry
IATA is playing
a role
 We are keeping
your money safe
 Our financial
systems settle
$300+ billion p.a.
 2010: CASS
handled $29 billion
 With a success
rate of 99.994%
Another important IATA role
is to improve competitiveness
 Since 2004 IATA achieved
over $55 billion in savings
 $15.9 billion
savings: new
routes and more
fuel efficient
operations
 $2.5 billion:
operational costs
 $19.1 billion:
infrastructure
user charges
 $17.6 billion:
Simplifying the
Business
These successes were team
efforts that benefitted
the entire industry
Safety
Safety is our #1 priority

…and we are
delivering results
Hull loss rate for 2010
was the lowest in
aviation history
 1 accident for every
1.6 million flights
 IATA carriers out-
performed the
industry
 IATA carriers:
1 accident for every
4 million flights
The IATA
Operational
Safety Audit
(IOSA) has
played a
big role
 All IATA carriers
have met its 967
standards and
recommended
practices
 And are on the
IOSA registry
IATA Safety Audit for Ground
Operations (ISAGO) sets a
global standard
IATA Safety Audit for Ground
Operations (ISAGO) sets a
global standard

 That will help


us mitigate the
$4 billion cost
of the 11% of
accidents that
occur on the
ground
IATA Safety Audit for Ground
Operations (ISAGO) sets a
global standard
 95 ISAGO
registrations
 Covering 58 ground
handling service
providers
 At 83 airports
The safe handling of dangerous
goods is a paramount
responsibility
The latest advancement
is the web-based
EasyDGR product
An emerging risk
that we must address
The proliferation
of internet-based
commerce

 Individual sellers
are not professional
shippers
 They do not
know their
responsibilities
 They have listened
to our concerns
 But have not taken
any action
Our other top priority
is security
There remains
a real threat
With collaboration
government intelligence
is a critical and effective
component of our defenses
I congratulate governments
 On working with industry to deliver an
effective and targeted response
 The relationship
with Secretary
Napolitano of the
DHS is driving
positive change
Industry and all
governments must
work together to
secure air cargo
The reality
Saying ‘no’ or
‘impossible’ only
excludes us from
the debate

Global Press Briefing 14 December 2004


IATA is taking
the lead

 To engage
governments
 With our
knowledge,
expertise and
solutions
IATA will be co-sponsoring
a paper at ICAO
Effective cargo security
must be based on a
combination of 3 measures
1 We must take a
supply chain
approach
 A layered
approach
Secure Freight initiative
 A template for industry and governments
 To work together in countries where
such programs don’t exist
2010: a pilot in Malaysia
 Adopting Secure Freight in 2 other
countries a target by end 2011
 The UAE will be one of those countries
Secure Freight
 Should be driven by government and
industry co-operation
 On investment, processes, technology
and risk assessment
2 We need governments to
certify better screening
technology
We do not advocate
100% screening

 We need the
technology to
screen pallets and
oversize items
 Governments must
co-operate on
mutual recognition
of standards
3 We must make better use
of electronic information
Governments must understand
e-freight’s capabilities
e-freight

 20 documents we have
converted to electronic
format
 Give a clear picture of
who is shipping what
and where
E-freight message standards:
a security declaration

 A clear picture of
who has screened
what and where
The catalyst for
more extensive
use of e-freight
 Including outbound
processing and
risk assessment
IATA Board of Governors has
given us clear targets

 10% e-freight
volumes by the
end of this year
 By 2015 the goal
is 100%
We began e-freight
in 2004
We achieved 100%
e-ticketing in
48 months
E-freight by the
end of 2010

 We had countries
representing 80%
capability
 But only 2.8%
penetration
Most governments
have now implemented
legislation
 To recognize
electronic
documentation
 Thailand, Indonesia,
Russia and Vietnam
still need to ratify
the Montreal
Convention 99
The $4.9 billion
savings that
100% e-freight
will bring
The $4.9 billion
savings that
100% e-freight
will bring

…are critical
to making this
a sustainable
business
If we can be faster
and cheaper
If we can be faster
and cheaper

We need to get it done


A major achievement
was the e-air waybill
 Developed in co-operation
with FIATA
 Cathay Pacific
only accepts e-air
waybills for shipments
originating in Hong Kong
 In Amsterdam freight
forwarders using e-air
waybills bypass the
documentation center
 In South Korea freight
is dispatched as soon
as the e-air waybill is
received
Hundreds of
freight forwarders
are experiencing
savings with
paperless freight
 We know it works
 The network is there
 The cost savings
are being realized
 Expectations have
been set with
aggressive targets

…now it is up
to all of us
 Shippers should
demand e-freight
convenience and
quality
 Governments must
make e-freight a
customs and
intelligence
requirement
 Freight forwarders
and airlines should
target the cost
savings and service
efficiency in their
business plans
Developed
our industry’s
first quality
standards
My vision:
evolve to
global
quality
standards
by end-2011
Cargo is
Cargo is a competitive industry
 98% goes by sea, 2% by air
 We handle the high value goods – 35%
 If our 2% volume increased by just 1%?
The only way
to do it
…is by improving
competitiveness
Customers paying a premium
 Demand quality
Customers paying a premium
 Demand quality
 They want to know that their shipments
are on time
…if not?

 They need to know when they will


arrive
 Basic good business practice
 The air cargo industry must implement
We are partners in an
industry that must change
Over the last 40 years
we earned a margin of 0.1%
Our industry
is weak
The big changes
needed to become a
sustainable industry
Harvard University’s
Professor
Michael Porter
Michael Porter on the
industry’s situation:

“What a
mess”
The inspirational
leadership of
Singapore’s
Minister Mentor
Lee Kuan Yew

+35 key strategic


thinkers
We will present
a vision for the
future at our
next AGM
 Cargo will be a
key component
of that future
 The need for
cargo to change
in the near term
is critical
IATA’s cargo agenda

 Catch-up on using
technology
 Improve safety
and security
 Implement quality
standards
Success will
only come with
collaboration
This symposium
must not just be
a talking shop
We need
actions and
commitments
I will hand over to

Tony Tyler
CEO, Cathy Pacific
IATA will continue
to strengthen its role
IATA will continue
to strengthen its role
as a catalyst bringing industry
and government together
Connecting
the world
Safely, securely,
efficiently, with
high quality
standards
Giovanni Bisignani
Istanbul, March 2011

To represent, lead and serve the airline industry


Welcome Address

Suat Hayri Aka, Deputy Under Secretary,


Ministry of Transport, Turkey
Keynote

Temel Kotil, Chief Executive Officer,


Turkish Airlines
08 March 2011
Istanbul

Temel Kotil, PhD


President and CEO

133
Turkish Airlines Historical Analysis

Turkish Airlines Network

Turkish Cargo

134
Historical Analysis (Passenger)
40,000

Count of Passengers X 1000 34,800


35,000

30,000 29,100

25,102
25,000
22,597

19,636
20,000
16,946

15,000 14,134
12,031 11,991
10,26610,50410,410 10,27710,38310,420
10,000 8,599 9,281
7,274
6,099
4,688
5,000 3,307

0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
F
Historical Analysis (Operating Profit)

800

Operating Profit (million USD)


600 571
538

389
400

255 247
200
100
52 70 60
23
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

-200 -28 -20 -24 -151


-74 -48 -109
-216
-269
-400
Historical Analysis (Operating Profit)
7,000

Diameter depicts number of employees, y axis show the


6,000
value of net sales in million USD

5,000
Net Sales (m USD)

4,000

3,000

2,000

1,000

0
1991

2003
1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2004

2005

2006

2007

2008

2009

2010

2011
Turkish Airlines Historical Analysis

Turkish Airlines Network

Turkish Cargo

138
Our Destinations
200
41
150
37
40 New Routes 2011-
28 32 33 2010
100 34 28 26 28 28
27 Los Angeles
132 144
50 103 107 109 119 Guanzou
78 76 77 76 75 79 Şiraz
Malaga
0 Thessaloniki
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 F Manila
Int Dom Naples
Turin
Toulouse
Genoa
Valencia
Najaf
Mosul
Novosibirsk

139 Winter 2010 Schedule


Our Destinations (World)
Number of Destinations
139 Scheduled International
40 Scheduled Domestic
58 Codeshare

Destinations

Planned
Codeshare 8.
Scheduled In Global Rankings
Will start in 2011

Summer 2011 Schedule


Regional Growth 2001 INTERNATIONAL FLIGHTS

2001 - 2010 Passenger Count Change


ASIA - AFRICA, AMERICA
4.5% , 4.4%
16,000,000 409% 450% FAR
400% EAST,
14,000,000 330% 9.0%
12,000,000 291% 350%
300%
10,000,000
250% MIDDLE
8,000,000 165% 170% 200% EAST,
6,000,000 133% 150% 12.3%
4,000,000 100% EUROPE,
2,000,000 50% 69.9%
- 0%

2001 2010 2010 INTERNATIONAL FLIGHTS


AFRICA, AMERICA
7.4% , 3.3%
Turkish Airlines has a strong market standing in ASIA -
FAR
EAST,
Africa : 4,5 % -> 7,4% 11.3%

Middle East :12,3% -> 17,1%


Asia – Far East : 9,0% -> 11,3% MIDDLE
EAST, EUROPE,
17.1% 60.9%

141
Connection via Istanbul

YTO

IAD

66 %
Right at the intersection of the industry’s major activity. Among intercontinental traffic
66 % of the passengers travel
Unique hub in Istanbul being able to connect in Europe in East - West Corridore
– Asia – Africa – Middle East corridore.

142
Turkish Airlines Historical Analysis

Turkish Airlines Network

Turkish Cargo

143
Turkish Cargo – FTK (2002-2010)

138 %
International Cargo
FTK (Billion)
300 18,000
16,000 Freight Tonne Km
Turkish Airlines FTK (INT)

250 increase to 32 %

IATA Total FTK (INT)


14,000
200 12,000 (2006-2010)
10,000
150
8,000
100 6,000
4,000
50
2,000
0 0
2006 2007 2008 2009 2010

Turkish Airlines IATA Total

144
Turkish Cargo (2002-2010)

International Cargo FREIGHT TONNES


2002 2003 2004 2005 2006 2007 2008 2009 2010 10/09 %
TRANSIT 22,435 27,443 29,892 34,580 46,781 55,508 81,862 116,601 162,632 39.5
TOTAL (INT) 98,400 97,123 105,764 115,211 126,913 141,315 159,109 236,514 312,825 32.3

624%
Transit cargo shipments
increase to 624%
(2002-2010)

39,5%
Last year, transit cargo
shipments increase to 39,5 %.

145
Turkish Cargo – Transit (2002-2010)
60%
TRANSIT Cargo in TOTAL (INT)
51% 52%
50%
37% 39%
40%
28% 28% 30%
30% 23%
20%

10%

0%
2002 2003 2004 2005 2006 2007 2008 2010

146
Turkish Cargo in Europe
Total Cargo Carried (in tons)
Domesticİç HatInternational
Dış Hat
273,900

198,700 32 %
161,200 Last year, cargo shipments
145,200
126,500
increase to 32 %.
114,600

30,300 33,400 39,100 37,700 37,600 39,100


2005 2006 2007 2008 2009 2010

Cargo (Ton/Km) Cargo Capacity Cargo Revenue

9 7 7
9.th carrier of Europe in 7. Rank in Europe in 7. Rank in Europe in
terms of total cargo terms of growth in ATK’ terms of growth in RTK
carried by 15,7 % by 23,2 %
*ATK: CapacityTon Km *RTK: Revenue Ton Km

147
Thank You.

March 2011

148
Networking Coffee Break
Sponsored by:

149
Keynote: Economic Overview
for the Air Cargo Industry
Brian Pearce, Chief Economist, IATA
The outlook: trends,
opportunities and threats
March 2011
Brian Pearce
www.iata.org/economics

To represent, lead and serve the airline industry


Squeeze on cargo profits started late 2010

Profitability of US Cargo Only Airlines


Source: US BTS
12%
Operating Profit Margin
10% Net Profit Margin
8%
% of Revenues

6%
4%
2%
0%
-2%
-4%
1

1
Q

Q
09

10
00

01

02

03

04

05

06

07

08

20

20
20

20

20

20

20

20

20

20

20

Source: US BTS
Weighted Score (50 = No Change)

100

0
10
20
30
40
50
60
70
80
90
Mar 2006

Sep 2006

Apr 2007

Oct 2007

Apr 2008
Last Three Months

Oct 2008
Next Twelve Months

Apr 2009

Oct 2009

Apr 2010

Oct 2010
Source: IATA
Airline CFOs becoming cautious in January
Heads of cargo confidence losing altitude
IATA survey of heads of cargo
Source: IATA Survey
100 Volumes - next 12 months
90
80
Weighted Score

70
60
50
40 Yields - next 12
30 months
20
10
0
Mar 2006

Sep 2006

Apr 2007

Apr 2008

Apr 2009

Apr 2010
Oct 2007

Oct 2008

Oct 2009

Oct 2010
Source: IATA
Travel markets strong trend but cargo?
International air freight and passenger volumes
seasonally adjusted
260 14

RPK
240 13
RPK, billions

FTK, billions
220 FTK 12

200 11

180 10

160 9
2005 2006 2007 2008 2009 2010 2011

Source: IATA
Coincident indicators have slowed sharply
Semi-Conductor Shipments and Air Freight
Source: IATA, SIA 38
54 34
46 30
26

% growth - International FTKs


38
% Growth, Semi-Conductor

22
30 18
22 14
Shipments

10
14 6
6 2
-2
-2
-6
-10 -10
-18 International FTKs -14
-18
-26 Semi-Conductor Shipments
-22
-34 -26

- 03 -03 -04 -04 -05 -05 -06 -06 -07 -07 -08 -08 -09 -09 -10 -10
n c n c n c n c n c n c n c n c
J u De Ju De Ju De Ju De Ju De Ju De J u De Ju De

Source: IATA, SIA


Boost from business restocking is over
Total Business inventories to sales ratio and FTKs
1.6 Source: US Census Bureau and IATA 18

17

Inventories to sales ratio 16


Inventories to sales ratio

1.4
15

FTKs (billion)
14

1.2 13

12

11
1
FTKs 10

0.8 8
00

01

02

03

04

05

06

07

08

09

10

11
n-

n-

n-

n-

n-

n-

n-

n-

n-

n-

n-

n-
Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja
Source: IATA, Haver
World trade rising rapidly once more

World trade in goods and air FTKs


Source: Netherlands CPB and IATA
14 170

160

index of world trade, 2000=100


13
150
International FTKs
12
(left scale) 140
Billion FTKs

11 130

120
10
World goods trade 110
9 volumes
(right scale) 100

8 90
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: IATA, Netherlands CPB


Business is spending on capital goods
Capital spending intentions
70 Source: Haver Analytics 15

50
Japan business 10
Net balance intending to increase

Net balance intending to increase


(right scale)
30
5
investment

investment
10
0
-10

-5
-30 UK business
(left scale)
-10
-50

-70 -15
Q1-2004 Q1-2005 Q1-2006 Q1-2007 Q1-2008 Q1-2009 Q1-2010 Q1-2011

Source: Haver
Mixed picture for the consumer

Consumer confidence
Source: Haver Analytics
120 0
China

Balance expecteting improvement, net %


Balance expecting improvement, index

100 -5

-10
80

US -15
60
-20
40
-25

20 Europe -30
(right scale)

0 -35
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

Source: Haver
Leading indicators very positive
Purchasing Managers confidence survey and Air Freight Demand
Source: IATA, JP Morgan

70 38
34
International FTKs
65 30
PMI Value (50 = No-Change)

% Growth, International FTKs


JP Morgan Output PMI (+ 2 months) 26
22
60
18
14
55 10
6
50 2
-2
-6
45
-10
-14
40 -18
-22
35 -26
Ap 6

Ap 7

Ap 8

Ap 9

Ap 0

11
O 5

Ju 6
O 06

Ju 7
O 07

Ju 8
O 08

Ju 9
O 09

Ju 0
O 10
Ja 05

Ja 06

Ja 07

Ja 08

Ja 09

Ja 10
0
l-0

r-0

0
r-0

0
r-0

0
r-0

1
r-1
n-

n-

n-

n-

n-

n-
l-

l-

l-

l-

l-
-

-
ct

ct

ct

ct

ct

ct
Ju

Source: IATA, JP Morgan/Markit


Business travel market remains strong
Premium travel growth and business confidence
20 65

15
60
10
Business
5 confidence 55
% change over year

Confidence index
0
50
-5
45
-10

-15 Premium 40
travel growth
-20
35
-25

-30 30
2006 2007 2008 2009 2010

Source: IATA
Rising oil price is the major threat this year
Jet Fuel and Crude Oil Price ($/barrel)
200

180

160

140

120
Jet fuel price
100 Futures
curve
80

60

40 Crude oil price (Brent)

20
Jan03 Jan04 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11

Source: Platts, Bloomberg


Is the age of cheap oil finally over?

140
Dollars per barrel (2009)

Current Policies Scenario


120
New Policies Scenario
100
450 Scenario
80

60

40

20

0
1980 1990 2000 2010 2020 2030 2035

Source: International Energy Agency


Passenger business partly recouping cost

Jet kerosene price and average international return fare


190 900

170 Jet kerosene price


(left scale) 850

150
800

US$ return fare


US$ per barrel

130
Passenger fare 750
110 (right scale)
700
90
650
70

50 600

30 550
2006 2007 2008 2009 2010 2011

Source: IATA
Cargo yields little better than stable
Air Freight Yields (US$ per kilo)
Seasonally Adjusted
Source: IATA CASS
2.0 4.0
3.6
1.6 3.2
2.8

US$ per kilo


US$ per kilo

1.2 2.4
2.0
0.8 1.6
SE Asia-Europe
SE Asia-Europe (incl other charges)
1.2
0.4 Global - LHS 0.8
Global (incl other charges) - LHS 0.4
0.0 0.0
7

0
Ja 7

Ja 8

Ja 9

0
A 7

O 7

A 8

O 8

A 9

O 9

A 0

O 0
-0

-0

-0

-1
-0

-0

-0

-1
0

l-0

l-0

l-0

l-1
n-

n-

n-

n-
pr

pr

pr

pr
ct

ct

ct

ct
Ju

Ju

Ju

Ju
Ja

Source: IATA
Load factors sliding as capacity expands
Loads factors on international passenger and freight markets

58% 80%

56% Passenger 79%


(right scale)
54% 78%

77%
52% Freight
(left scale) 76%
% AFTKs

% ASKs
50%
75%
48%
74%
46%
73%
44% 72%
42% 71%

40% 70%
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

Source: IATA
Plenty of wide-body capacity arriving

Twin Aisle Aircraft Deliveries by Airline Region


Source: Ascend
350
Other
300 Middle East
North America
250 Europe
Number of Aircraft

Asia Pacific
200

150

100

50

0
2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: Ascend
Europe’s economic situation remains grim
10-year government bond yields, %
14

12
Greece
10

8
Ireland
Portugal
6
Spain
4 Italy
UK
2 US
Germany
0
97 98 99 00 01 02 03 04 05 06 07 08 09 10
Source: Haver
But optimism over ‘emerging’ markets
Forecasts for GDP growth
Source: EIU
9

8 2010 2011
7
% change over year

0
US Japan Europe ASPAC excl Middle East Latin World
Japan North Africa America

Source: EIU
Fuel prices will squeeze airline profitability
Global commercial airline profitability
8.0 20

6.0 15
EBIT margin
4.0 (left scale) 10
% revenues

2.0 5

US$ billion
0.0 0

-2.0 -5

-4.0 Net post-tax losses -10


(right scale)
-6.0 -15

-8.0 -20
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010E
2011F
Source: IATA
Panel: Air Cargo – Connecting the World
Moderator: Aaron Heslehurst, News Anchor & Presenter BBC World

Panel: John Batten, Executive VP Global Cargo, Swissport Intl. Limited


Jean-Claude Delen, President, Intl. Federation of Freight Forwarders Assoc.
Ram Menen, Divisional Senior Vice President, Emirates SkyCargo
Sergio Mujica, Deputy Secretary General, World Customs Organization
Christopher Welsh, Secretary General / General Manager-Global and
European Policy, Global Shippers' Council / Freight Transport Association
Which sector are you from?
1. Airport 7%

2. Airline 33%

3. Customs 2%

4. Forwarder 8%
5. GHA 11%
6. Shipper 3%
7. Supplier 10%
8. Other 25%

020 173 432


Air Cargo – Connecting the World

John Batten
Executive Vice President Global Cargo
Swissport International Ltd

174
Air Cargo – Connecting the World
Key industry challenges in 2011

 Security harmonization

 Skills/Training

 e-freight adoption

 Infrastructure investment (facilities/IT)

175
Air Cargo – Connecting the World

Jean-Claude DELEN

President
FIATA

176
Air Cargo – Connecting the World
Key industry challenges in 2011
 Security measures harmonisation and mutual recognition of
regulated agents programmes

 e-Commerce

 Sustainable logistics solutions

 Vocational training and life long learning programmes

177
Air Cargo – Connecting the World

Ram Menen
Cargo Committee Chairman &
Divisional Senior Vice President Cargo
Emirates

178
Air Cargo – Connecting the World
Key industry challenges in 2011

 Harmonized secure supply chain


 Accelerated adoption of e-commerce
 Better working relationship/communication and
all elements of the supply chain working
seamlessly
 Market access --- open skies

179
Air Cargo – Connecting the World

Sergio Mujica
Deputy Secretary General
World Customs Organization

180
Air Cargo – Connecting the World
Key industry challenges in 2011
 Commitment and Leadership with Regard to Air Cargo Security.
 Partnership with Border Agencies (National Level) and Relevant
International Organizations.
 Provision of Accurate and Timely Advance Data Required for Risk
Assessments.
 Participation in Trusted Operator Programmes: Authorized
Economic Operator/Regulated Agent/Known Consignor.
 Capacity Building: Must Include All Links in the Chain.

181
Air Cargo – Connecting the World
Chris Welsh
Secretary General
Global Shippers’ Forum
and
General Manager Global & European Policy
Freight Transport Association (UK)

182
Air Cargo-Connecting the World
 Global Shippers’ Forum
 Four Priorities
 World wide accredited quality service standards implemented

 Accelerate e freight to optimise air cargo & make mode of first


choice
 Air cargo Security

 Global air cargo supply chain stakeholder collaboration to drive


change and achieve industry goals
Do you forecast your 2011 results to be…

1. better than 2010 39%

2. similar to 2010 35%

3. worse than 2010 26%

013 184 365


What is the single biggest economic threat to our
industry’s financial prosperity?
1. Consumer non spending 20%

2. Government austerity measures 4%

3. Security compliance costs 9%

4. Oil price 60%

5. Taxation 1%

6. Modal switch 3%

7. Other 2%

020 185 360


From the list of key industry priorities discussed please
select which you consider to be the top priority
1. Harmonized secure supply chain 34%

2. Accelerated adoption of e-commerce /


e-freight 25%

3. Customs harmonization 7%

4. Environment & Carbon Emission 2%


reduction program

5. Infrastructure investment (facilities/IT) 7%

6. Improve entire supply chain working 8%


relationship / communication

7. Market access - open skies 4%

8. Skills/Training 8%

9. Other 4%
Do you believe WCS is the event where you can
influence the Air Cargo Industry?
1. Yes 65%

2. No 35%

020 187 337


Is World Cargo Symposium high in your priority of
events in the industry

1. High 51%

2. Medium 36%

3. Low 12%

020 188 348


Chairman’s Closing
Remarks
Desmond Vertannes,
Global Head of Cargo, IATA
Networking Luncheon
Sponsored by:

190

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