TIACA demonstrates good planning as it prepares to hold its first ever Latin America event, which will follow on from the Intermodal South America 2024, and be held at the Gran Estanplaza in Sao Paulo, Brazil, 04-06MAR24. How? With the signing of a Memorandum of Understanding with The Latin American and Caribbean Transport Association (ALTA). The two associations thus kick-off closer cooperation designed to cover a number of points together. These include a better understanding of aviation’s contribution to economic and social development within the Latin American and Caribbean region, increasing safety in air cargo and its larger supply chain, closer work with governments in terms of education and lobbying for better air cargo circumstances, and promoting sustainable air cargo along the lines of the 17 United Nations Sustainable Development goals.
The Latin American and Caribbean airline association ALTA, comprising of 44 airline members, and TIACA intend to collaborate – Image: ALTA
Steven Polmans, TIACA Chair, explained: “This agreement is vital as we continue our work to strengthen our presence within Latin American and the Caribbean. Working with ALTA will help us not only accomplish this, but it will help push the key issues agreed upon within the region. We look forward to a successful partnership with ALTA.”
Glyn Hughes, Director General, TIACA, emphasized: “The signing of this MoU allows us to get to work ahead of the upcoming TIACA Event – Latin America, where we can ensure that issues relevant to both organizations can be discussed. The event will bring together industry leaders to focus on what it takes to do successful air cargo business within Latin America.”
José Ricardo Botelho, Executive Director & CEO of ALTA, stated: “Air cargo is extremely important for Latin American & Caribbean region. In a continent with huge distances, intricate geography, and lack of other means of transport as safe and efficient, aviation plays a key role to carry essential goods and merchandise that move the economies and generate employment. This partnership with TIACA will allow us to jointly strengthen the work on this matter and achieve better understanding of the sector, therefore, pursuing informed decision making and smart regulatory environments. Currently 50% of international air cargo capacity corresponds to belly capacity in passenger aircraft. It is extremely important to work aligned and we very look forward to this alliance.”
Silk Way West Airlines and ACL Airshop announced this week that they have formally extended their long-standing collaboration. A further multi-year ULD agreement was signed, demonstrating the success of their partnership thus far. The two companies are continuing to improve ULD transports, whether this is on a technological level such as the introduction of Bluetooth to achieve real-time ULD tracking – “a revolutionary step towards optimizing cargo transportation,” according to the press release, or in terms of sustainability. “The partnership emphasizes an ongoing commitment to environmentally sustainable practices and will feature joint initiatives to reduce carbon footprint and promote eco-friendly solutions within the air cargo industry,” it outlines. The desired outcome is fast, efficient ULD management solutions that have a positive knock-on effect down the supply chain, in the form of “accelerated services, streamlined logistics, and substantial cost savings,” alongside, “enhance[d] cargo protection, tracking, and overall supply chain visibility.”
Steve Townes, ACL Airshop CEO, (left), and Vugar Mammadov, VP CIS & Central Asia of Silk Way West Airlines – Image: Silk Way West Airlines
Vugar Mammadov, Vice-President CIS and Central Asia of Silk Way West Airlines, said: “This strategic collaboration with ACL Airshop is a testament to our commitment to delivering exceptional service and value to our customers. By combining our strengths, we aim to set a new benchmark in air freight logistics and contribute to the growth of the global cargo industry.”
Steve Townes, President and CEO of ACL Airshop, enthused: “We are excited about the opportunities that this strategic partnership brings. Together with Silk Way West Airlines, we will drive innovation, enhance operational efficiency, and create a more sustainable and resilient air cargo ecosystem.”
Maurice van Terheijden, Managing Director EMEA for ACL Airshop, stated: “Both companies Silk Way West Airlines and ACL Airshop boast cultures of exceptional performance, making it an honor for us to evolve in tandem with our partner.”
Impressive year-on-year 32% increase in cherry exports out of Chile on the part of LATAM group, as announced earlier this week. In figures, that translates into around 7,546 tons and places LATAM group in first place on the list of airlines transporting the sweet fruit. Part of the increase was thanks to the group being able to increase its cargo capacity by 16% compared to previous year. The overall tonnage increase is all the more impressive given all the wet weather the country suffered, affecting its cherry production. The 2023-2024 cherry season began mid-OCT23, with a first shipment of Chilean cherries from Santiago to New Zealand and on to China through interline agreements. The airline group’s cargo subsidiaries operated a cargo fleet of 20 planes during the season (including a temporary new freighter), and offered 19 weekly frequencies from Santiago dedicated to cherries. According to its press release: “Chile leads in cherry exports in South America, and LATAM group plays an essential role, transporting 30% of the total volume by air. The majority of cherries, around 90%, are destined for Asia for Chinese New Year celebrations, while a smaller proportion is directed to other markets such as the United States and Brazil.” It goes on to point out the virtue of air transportation which enables the fast transfer of fresh cherries from Chile to China in just 45 hours – a key benefit when it comes to perishable products that the group carefully carries through its FRESH service.
Cheers to Chile for all its cherry cargo exports. Image: LATAM Group
Claudio Torres Faini, Commercial SVP in South America at LATAM Cargo Chile, underlined: “We are fully committed to providing our customers with solutions tailored to their needs. In response to a challenging season, we have implemented flexible measures, adjusting both flight frequencies and destinations. This has not only allowed us to offer our customers a greater variety of alternatives but has also generated growth opportunities, especially in the U.S. market.”
I was first introduced to squAIR-timber over at the ULD Care conference in Canada back in SEP19. At the time, it seemed very new and innovative, yet Cargolux had already begun using it already in 2017 following its branding in 2016 (trilatec exists since 1989, squAIR-timber since 2012), followed by another 25 airlines authorizing its use in 2018. Lufthansa Cargo got on board in 2020, authorizing its use within its BUP500. A look at the website shows 21 logos of companies deploying squAIR-timber to date. Given the many benefits the product offers, it is surprising that the list is still missing a number of other large players vocally intent on becoming more sustainable. Perhaps that was the reason for trilatec’s recent press release – to encourage more movement. The benefits, as enjoyed by DHL in Frankfurt and Paris, Kuehne+Nagel, Lufthansa Cargo, Cargolux, and Emirates SkyCargo, when using squAIR-timber instead of conventional wooden beams during pallet assembly are lower fuel costs and CO2 emissions, since the cardboard fiber composite material weight 80% less. It also saves on handling time and is easier to manage: “Only one person and no forklift truck is required for assembling,” the release states, explaining: “the innovative lightweight construction elements from trilatec are made of 100% recyclable paper and cold-glued joints, manufactured according to the carbon principle,” and that the certified for air freight, fully recyclable product can take the same load as real wood: “When loaded, one meter of the weatherproof material can carry up to 5 tons with a dead weight of just 1.2 kilograms per meter. When using wood, the dead weight is 3 to 4 kilograms per meter.”
trilatec GmbH’s MDs Stefan Trinkaus (left) & Andreas Langemann. Image: trilatec
Johannes Bruijs, Sr. Vice-President Global Logistics at Cargolux, explained: “We use the lightweight squAIR-timber elements as a substructure for all pharmaceutical shipments and they are fully integrated into the processes. They have no disadvantages compared to wood, but their significantly lower weight brings many advantages and helps to save a considerable amount of CO2.”
Andreas Langemann, Managing Director of trilatec GmbH, added: “squAIR-timber offers added value to leading companies in the air cargo industry. Our product has proven to be a reliable alternative in their global networks. According to calculations, airlines such as Cargolux can save around 1,200 tons of fuel per year by using our solutions – the equivalent of three fully loaded jumbo jets.”
Luanda International Airport (LAD) is to benefit from a recent joint venture intention announced by .Menzies Aviation and Sociedade Gestora de Aeroportos (SGA-SA). Menzies Aviation and SGA Angola’s joint venture, called Menzies Angola, will ensure cargo and lounge services at the airport. As well as managing LAD’s VIP lounge which annually sees over 45,000 passing through, it will handle more than 30,000 tons of cargo each year for a number of airline customers including TAAG-Angola Airlines, Air France, TAP Air Portugal, and Ethiopian Airlines.
At the birth of a JV for Luanda International Airport. Image: Menzies Aviation
SGA Angola reports to the Angolan Ministry of Transport, and manages 17 other airports in addition to Angola’s principle airport, LAD. “Its main mission is to provide high quality and safe services, with a focus on operational efficiency and sustainability,” the release states. Values shared by Menzies Aviation which, meanwhile, is now the largest aviation services group in the world in terms of number of countries and aircraft turns, employing more than 40,000 people at 255 airports in over 60 countries across the globe.
Charles Wyley, EVP Middle East, Africa, and Asia, announced: “We are thrilled to announce our joint venture with SGA, and look forward to providing safe, secure and reliable services to our airline customers in the region. Angola’s aviation industry is growing with a bright future ahead, which is why now is the opportune time to forge a strategic partnership with SGA. We look forward to working with SGA to provide services at Luanda International Airport, and support its transition to the new, under construction, Angola International Airport.”
Global Critical Logistics (GCL) announced a new Chief Financial Officer in the form of J.P. Hannan on 16JAN24, and that Erin Cutri had been promoted to Vice President of Finance in DEC23. The two are to drive the global integration of GCL’s financial platform.
J.P. Hannan, Chief Financial Officer, Global Critical Logistics. Image:
As Chief Financial Officer, J.P. Hannan will be responsible for the complete GCL portfolio which includes Rock-it Cargo, Dietl, Dynamic, CARS, Cosdel, Xtreme and Dell Will. Coming over from Cox Media Group (CMG) where he held the position of Executive Vice President & Chief Financial Officer, the New York BSc graduate in Business Administration from the University of Southern California, brings a large portfolio of financial experience in the broadcast media industry. This began at privately-owned Lambert Television, as its Chief Operating Officer and Chief Financial Officer, amongst other positions. He also spent 9 years at Cumulus Media, also as Chief Financial Officer before moving to CMG, and has been involved with numerous financial foundations and private equity-backed and public companies.
Daniel Rosenthal, President and Chief Executive Officer, GCL, exclaimed: “I’m delighted to have J.P. lead the GCL finance team. He is a true finance professional with strong industry background and tremendous experience rationalizing financial and strategic objectives and driving growth on a strengthened business foundation.”
J.P. Hannan stated: “My focus will be on strengthening the financial backbone of the organization, enabling us to navigate challenges and capitalize on new opportunities in the dynamic markets we operate in. It is a privilege to be part of a company that values its employees, embraces diversity, and contributes positively to the community. I am excited to immerse myself in the culture and contribute to its continued success.”
The two shipping lines have entered into an operational partnership called ‘Gemini Cooperation,’ which will officially begin in February 2025. Both players expect their long-term cooperation to result in higher transport quality, greater reliability of transport operations, and a reduction in greenhouse gas emissions. As a result of this decision, Hapag-Lloyd will leave the shipping group ‘THE Alliance’ at the end of JAN25 (Hapag-Lloyd, ONE, Yang Ming, and HMM) which will tear a hole in their global maritime network.
Compared to THE Alliance, Gemini will lead to quicker, cleaner, and more efficient transportation services, benefitting customers and the environment, stated Rolf Habben Jansen, CEO Hapag-Lloyd in an online call informing the media about the specifics of the new partnership. The two liners have a similar business culture, and with Copenhagen-based Maersk “we have found a like-minded partner who shares our passion for quality and sustainability,” the executive exclaimed. Both box carriers together offer the market shipping capacity of 3,4 million TEU, with Maersk accounting for 60% and Hapag-Lloyd for 40%. In his presentation, Mr. Habben Jansen placed great emphasis on quality matters. A survey conducted last October, shows that Hapag-Lloyd is still failing to meet its own targets in this respect, despite increasing approval from customers. Only 58% of respondents were satisfied with the company’s performance. Yet, just a year before, it was a meager 29%.
Strategic decisions of the “Gemini” partners A.P. Moeller-Maersk and …
Major operational network Now Maersk and Hapag-Lloyd intend to set up an operational network at scale, based on joint hub and spoke traffic and mutual terminal access in key ports. Their aim is to offer 26 global services, among them 5 transatlantic services, 9 between the Far East and the USA, 11 Asia-India-Europe, and one linking Asia and ports in the Middle East. Their joint network centers around 12 owned or controlled terminal hubs, such as Tangier, Cartagena, Singapore or Wilhelmshaven, Rotterdam, and Bremerhaven in Northern Europe. Hamburg will lose volumes in the region of 10%, estimated the executive. The main shipping services are complemented by numerous regional feeder and shuttle services, which enable large vessels to save time and up the operational reliability since they call at fewer ports.
Aside their network integration, both Gemini partners point out that they will continue operating parts of their fleets on their own accounts. There is no time limit on the agreement. “We are assuming long-term cooperation with Maersk,” the executive said.
… Hapag-Lloyd have to be consented by both parties in order to become effective – photos: credit Maersk & Hapag-Lloyd.
Counting on approval by Q3 of 2024 Asked if Maersk Air Cargo is part of the Gemini concept, he clearly denied this issue. At the same time, he pointed out that his company’s major stakeholders, Kuehne+Nagel and the City of Hamburg, were informed before the Gemini deal was inked.
Habben Jansen expects no surprises from the competition watchdogs. “All necessary filings have been done, so we are counting on regulatory approval in Q3 of 2024.”
For THE Alliance, the imminent exit of Hapag-Lloyd, its largest and most influential member, in January 2025, is a bitter loss. It will leave a large gap in its global network, that will be difficult to fill.
The three companies signed an agreement last week, securing continuous and long-term supply of fossil-free aviation fuel for both carriers. The Oslo-based project developer speaks of a “landmark agreement on offtake and investment.” It is Norsk’s first major pact with airlines.
An airline is fueled with SAF – credit: Norsk e-Fuel
Market observers expect that similar contracts with other carriers will follow suit since green aviation fuel is much sought after. It allows carriers to lower their CO2 footprint and benefits them financially in the mid-term, since greenhouse gas emissions will increasingly be taxed by Brussels.
Just a few days earlier, Norsk e-Fuel and Gen2 Energy had agreed to work together on the use of green hydrogen, by utilizing H2 as feedstock for the production of sustainable aviation fuels.
Mosjøen and more The rapid rise of Norsk e-Fuel is breathtaking. Founded as recently as 2019, the newcomer started establishing large-scale production sites in the Nordics to deliver synthetic fuels to the aviation industry. The first facility will be set up in Mosjøen, Norway, 700 km (by road) north of Oslo. Investing in two additional facilities and creating a new value chain for sustainable fuels complement the initial project. The first deliveries will be available from 2026 onwards and on a larger scale come 2030, when the production plants number two and three are scheduled to go online.
The Norwegian energy provider is financially backed by the Luxembourg-based Paul Wurth Group, a subsidiary of the Duesseldorf, Germany headquartered industry giant sms Group.
According to the deals now signed, Cargolux and Norwegian have committed to the offtake of a total volume of 140,000 tons of e-SAF (Sustainable Aviation Fuel). In addition, both companies announced to strategically support the setup of the two facilities mentioned above, also located in Norway.
“Cargolux is proud to join the Norsk e-Fuel project. e-fuels are based on abundant feedstock such as carbon dioxide and when produced with green electricity, this project will provide one of the highest greenhouse gas savings compared to conventional jet fuel. We look forward to offering our customers the option to have the ability to voluntarily enhance their sustainability initiatives through the use of e-fuels for their shipments as of late 2026,” stated Richard Forson, CEO and President of Cargolux.
Future vs. tradition In plain language, this means that customers have the option of booking SAF-based transports of their air consignments, or they can stick to traditional kerosene burn to get their goods from A to B. However, the latter decision might not be the smartest move since most market experts forecast that the price for conventional fuel will tend to surpass expenditures for e-fuels by 2030 – latest. Consequently, those who have committed to booking climate-friendly air transports will not have to wait in line for e-fuel supply. It can be assumed that established SAF customers will be treated preferentially when requesting e-fuel supply.
This scenario is indirectly confirmed by Geir Karlsen, CEO of Norwegian Air Shuttle. Commenting on his airline’s deal with Norsk e-Fuel, he stated: “Sustainable aviation fuels will be in high demand in the years to come. The agreement entails that we will invest a total of around € 5 million and will secure Norwegian early access to the product. The use of fossil-free aviation fuels is key to achieving our goal of reduced carbon emissions by 45% in 2030.”
Additional cash injection The shareholder group that will be led by Paul Wurth and includes Norwegian, has been backing Norsk e-Fuel since its inception and has now decided to raise its investment in the company by an additional €5.5 million. The final statement at the presentation of the plans came from Georges Rassel, Chairman of the Board of Directors in Norsk e-Fuel: “I am truly honored to lead this exceptional team and delighted to announce our new partnerships with two esteemed airlines. Bringing together Norwegian, Cargolux, and Paul Wurth, we are committed to ensuring the success of Norsk e-Fuel, where we can now enter the next phase of the project.”
Four Managing Directors have been responsible for the key business decisions at EMO TRANS GmbH for decades, navigating the logistics company through many storms. Now, however, all members of the quartet are approaching retirement age. To prevent disruptions of the agent’s activities, a timely rejuvenation of the top management has become paramount. The first steps have now been taken with effect 01JAN24…
Ercan Ince (left) and Norman Klinkhammer have stepped up EMO’s career ladder – picture: EMO TRANS
… by appointing two new members to EMO’s Board of Directors: Ercan Ince (45) and Norman Klinkhammer (34). Both already held leading positions within the company: Ince at the logistics agent’s headquarters in Filderstadt near Stuttgart, Klinkhammer in EMO’s station on the outskirts of Hamburg Airport.
Internal staffing of management positions With their promotions, the current management has opted for internal solutions to filling leading management positions. The immediate benefit of this solution: Ince and Klinkhammer do not have to be familiarized with the company since they are aware of most daily processes and the logistics agent’s business model. Another plus point is that they know most of the approximately 200 employees, which facilitates direct communication and collective – team-centered – decision taking.
Ercan Ince steps up the EMO career ladder… Ercan Ince has been with EMO TRANS for nine years and is now responsible for commercial matters. In his previous roles, he managed the company’s finances and headed the personnel department. Therefore, he has gained experience that extends well beyond financial issues. Over the course of his tenure, he elevated the company to a new level in dealing with administrative matters, the current EMO management applauds in a release.
… as, too, does Norman Klinkhammer In his new role, Norman Klinkhammer is responsible for all operational processes and the major sales decisions. He joined EMO-TRANS GmbH in 2019, becoming head of the company’s branch in Hamburg and, in addition, took on responsibility of the Duesseldorf office. Due to his study of logistics and his experiences gained in dealing with daily cargo matters, he is well connected within the industry. Prior to joining EMO, he worked as a regional air freight manager for a market competitor, gaining successful experience in this field.
Signal to the company’s own workforce Like EMO Trans, many companies, especially SMEs and smaller businesses in Germany, the EU, the UK, and North America, are currently facing the need to make timely efforts to fill leading management positions. Otherwise, at some point there is a risk of closure or, at best, takeover by a well-funded competitor. Above all, early personnel decisions also send a signal internally. It is a signal to employees that business will continue, which translates into a comforting degree of job security. This message is extremely important in order to keep capable, experienced staff on board and not lose them to the competition.
Focusing on strategic issues And how will the enlargement of the Executive Board with its two new members change the overall structure of the EMO management? The four current directors will focus more on strategic tasks and less on day-to-day activities. This is also because some of them are in leading positions at EMO subsidiaries in countries outside Europe, meaning they have global responsibility for the wellbeing of the entire Group.
What great news this week: on 17JAN24, with the appointment of Mitsuko Tottori effective 01APR24, Japan Airlines announced its first-ever female president – a cause for celebration in more ways than one: from the point of view of greater equality and diversity within Japan, in aviation’s top management, and from the aspect of truly having worked her way to the top from the very front line of the company. Those who truly know the business from its grass roots, enjoy the most trust from employees.
Mitsuko Tottori Will be leading on personal experience from the front line – image: JAL
And positive news too, on top of what was otherwise a very difficult start into the New Year for Japan and Japan Airlines. Following a devastating earthquake on 01JAN24, a second shocking event happened the next day, when a Japan Coast Guard aircraft collided with JAL Flight 516 at Tokyo’s Haneda Airport, and both aircraft burst into flame. Five of the six occupants of the Coast Guard aircraft tragically lost their lives. The astoundingly exemplary evacuation of the JAL Airbus 350-900 within 18 minutes, however, meant that all 379 passengers and crew survived. A credit to the excellent training of the crew and the discipline of the passengers.
Safety is the foundation of an airline company The accident is being investigated, and while it would appear that human error on the part of the Coast Guard aircraft was the cause, Tottori stated in the press event on 17JAN24, that she would continue to be committed to safety as she had been since 1985. Coincidentally, the year she joined JAL was also the year that its JAL Flight 123 crashed into a mountain outside Tokyo, killing 520 out of the 524 people on board of the Boeing 747SR-46. – the worst single-aircraft accident to date in the history of aviation. She said: “The shock at that time is still deeply carved in my heart. And I have maintained a strong sense of responsibility to hand down the importance of aviation safety to younger generations. Safety is the foundation of an airline company, and I will work on safe operations with even stronger conviction.”
Knowing the business inside-out Certainly, her career path has often been focused on safety issues. Having begun as a flight attendant in 1985, she worked her way up through the echelons which included positions such as Senior Manager, Cabin Safety Department, Vice President, Cabin Safety Department, Managing Executive Officer and Senior Vice President, Cabin Attendants, Senior Vice President, Customer Experience, and (currently) Chief Customer Officer, with many Cabin Crew-related functions in between. Having been on the front line and faced with so many different aspects of the company, will stand her in good stead as company leader when she replaces current JAL president and CEO Yuji Akasaka on 01APR24. He will then become JAL Chairman, taking over from Yoshiharu Ueki, who will be retiring.
More women in top management, slowly but surely A woman at the top. A rarity particularly in Japan, which is one of the lowest-ranking countries when it comes to gender equality, coming in at 125th out of the 146 countries that the World Economic Forum tracks in its Gender Gap report. An OECD (Organization for Economic Co-operation and Development) report from 2021, showed that only 13.2% of management positions in Japan were held by women that year – putting the country in last place among the OECD members. It also has a massive gender pay gap. Yet, Japan’s government is pushing for 33% of leadership positions at major businesses to be held by women by 2030 – a goal it had originally set for 2020. Japan Airlines, on the other hand, is aiming to achieve 30% female managers by MAR26. In MAR23, it reported 22.8%. With Tottori’s appointment, this may well be further improved. She stated at the Tokyo press event on 17JAN24: “There are female employees out there who are struggling with their career steps or going through big life events. I hope my appointment as a president can encourage them or give them the courage to take the next step.”
And more aviation top management women, too When it comes to number of women in top management within the aviation industry, other countries are not that great either. In fact, just a week earlier, on 09JAN24, the first ever female CEO of a major US airline was announced with Joanna Geraghty’s appointment at JetBlue. Tottori and Geraghty bring the global number up to 30 airlines that now have a female CEO. An interesting article in Travel News from 05JUL23 [https://www.travelweekly.com/Travel-News/Airline-News/Women-in-aviation-progress], which pointed out that “only slightly more than half of IATA airline members have made the commitment [to sign IATA’s 2019 25by2025 initiative]. Signatories of 25by2025 have pledged that by 2025 they will either increase their proportion of women in senior positions to 25% or achieve a 25% increase in that metric,” also included an excellent statement from Poppy Khoza, CEO of the South African Civil Aviation Authority: “‘As long as we have leaders who don’t have the foresight about the benefits of having both women and men working together to achieve the results of an organization — understanding that one doesn’t have to compete with the other and that both men and women have a lot to offer — I think we’re doomed. We need leaders who take bold steps.’ Khoza said that she is loath to talk about statistics, since women want and deserve to be hired on their merits. Still, she noted that women comprise 51% of the employees at her organization. ‘It’s not that the talent is not there. It is there,’ she said. ‘We just don’t want to go and look for it. To me, not to transform is a decision that you’ve taken already.’”
Coming back to cargo after 13 years
On the same day that Tottori was announced upcoming President, the airline also took delivery of its first cargo plane in 14 years, rekindling its freighter business which it had stopped in 2010, the year it sought bankruptcy protection. The first of three converted Boeing 767-346(ER)s (with an upper-deck cargo capacity of 32 tons and 16 tons in the lower-deck), flew in from Singapore to Tokyo, landing at 16:27. It is set to commence commercial operations next month, and will serve routes out of Tokyo Narita International Airport (NRT) and Nagoya Chubu Centrair International Airport (NGO), to Shanghai Pudong International Airport (PVG), China, Seoul Incheon International Airport (ICN), South Korea, and Taiwan Taoyuan International Airport (TPE).
