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Digital success is man-made – Part 2

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Digital success is man-made – Part 2

Following on from Part 1 in CargoForwarder Global (published 07JAN24), on why the Human Factor is crucial for the air cargo industry’s digitalization and business transformation, WIPRO’s Senior Manager for Talent & Change, Philipp Maier, now offers three practical change management activities that companies can adopt right now, to ensure project success.

Many of the human factor barriers to change can be avoided from the start. Here are three practical change management activities you can immediately start off with!

Change management should always begin with a profound Stakeholder Analysis – first and foremost!
Before you even kick off a project, change management should be already in place. Why? Because it is all about the stakeholders and you need to involve the right people at the right time. Has a stakeholder analysis already been conducted? Have you evaluated which motivation your stakeholders have and how you can group them to better manage their communication needs throughout the project? Have you talked to them on a 1:1 level to understand their preliminary concerns? If not, do that first! As a guideline, consider the following image that shows 4 different dimensions of stakeholder interests. Once you have sorted all relevant stakeholders, you can work on appropriate actions to involve them in the best possible way.

Draft an initial communication plan – right now!
I have worked for years both as a project manager as well as a change manager. Let’s be honest – when your main focus is NOT change management but the project itself, the following will happen: When work is getting busy and daily operations are becoming an overwhelming wave of issues, the first thing to fall behind is Communication.

Therefore: Before you start anything, ensure that you have at least an initial communication plan for your identified stakeholders ready. If you don’t do it now, you won’t do it at all. A pragmatic approach is best here, otherwise you will not finish. Try to answer the following question in your communication plan: Which stakeholder group needs which minimum communication at which time? You could use the previous Stakeholder Analysis Groups to arrange and cluster the communication needs of your audiences, and decide what communication you need to do in the first 3 months:

Kick it off with a network of influencers
Ever since the value of social networks has become visible for established brands in the industry, we are all aware of the benefit of using ‘influencers’. Why are they so valuable? Because human beings focus on each other – social contacts have a major impact on our behavior. It starts when we are small: Parents (in the best case) act as a good example for their child. Later, we orientate on a variety of role models. Even if we shouldn’t, we tend to compare ourselves with others, and the human brain loves to swim with the stream, as we are not really made to stand up and resist. Our harmony-driven social habits try to avoid any conflict if we see that we are part of a minority – especially in our professional business. Why? Well, everyone is trying to win and grow their career. And as we rarely really have to deal with big moral decisions in our job, we usually do well when we follow the majority.

What’s the chance for change management? Easy and difficult at the same time: Build up an army of exemplary supporters. Who is popular? Who has informal influence? Who is bright, tough, and competitive? Who really helps the business? Win those people over – help them to get on board and raise their concerns. The good news is: Highly productive people are usually more open to strategic change than the average employee. Therefore, identify high-performers, innovative individuals, and thought leaders, and make them your ‘change ambassadors’, your ‘army of influencers’ to reach the critical mass of energy to take off.

A practical guide to establishing change influencers
Let’s get practical: What could be a model to build up change influencers and what roles do you need? The following visualization gives you an example of how change networks are typically built upon:

  1. You need the buy-in of your C-level sponsor
  2. You need so called ‘change champions’. These are typically middle management leaders who have the resources and – if properly informed about the reasons of the change – have a vital interest in a successful change. They will need to understand the concept of a change network to help you nominate the right candidates.
  3. Change ambassadors or change influencers: With the help of your change champions, you will be able to nominate your ‘army of influencers’. Do not underestimate this step: It takes a bit of time to nominate the right characters, give them attention, explain, and inform them of upcoming changes, and keep them satisfied.

Is that all there is to it?
Is that all? For sure not. We have now talked more about the big 3 frameworks, but those need to be fed with details. Once you have established your Stakeholder Analysis, the next questions to be answered are: Who will go prepare and talk to them to find out about their opinions? Who will create material for your communication plan, maintain it, and take care of feedback? Who will contact sponsors, change champions, and your ‘army of influencers’ if there is no communication material?

Clear recommendation: Do not believe that a project manager can single-handedly do change management. Change management is usually a full-time role. As we are heading into a volatile future where basically everything is being touched by digital transformation, you may need to build up a change department and/or employ external experts to support your projects’ smooth implementation.

There is no doubt that the success of digital transformation projects is ‘man-made’. Based on my 20 years of experience with a variety of projects, my clear advice is: Always put the human in the center of your project. If you do so, you will succeed!

Philipp Maier, WIPRO, Senior Manager Talent & Change

Kales markets Pegasus

Heiner Siegmund
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Kales markets Pegasus

General Sales Agent, Kales, has won a tender to become Turkish airline, Pegasus’ new cargo sales agent in the German market. Pegasus is traditionally very strong there, connecting many cities with destinations in Türkiye and the Middle East. The low-cost carrier which is based at Istanbul’s Sabiha Gökçen Airport, had a total turnover of 2,4 billion euros in 2022, and generated a profit of 431 million euros. It is the number two in Türkiye with 25% of the traffic share, surpassed only by Turkish Airlines.

Loading of a Pegasus jetliner – photos: Company courtesy

Since Tuesday (16JAN24), GSA Kales has been responsible for ensuring that the lower deck compartments of Pegasus-operated passenger aircraft on routes from Germany to Turkey or beyond, are well-filled with freight. The sales agent secured the contract from ABDA Cargo Services DMCC. ABDA is the exclusive global sales agent for World Cargo Solutions (WCS). WCS in turn provides Total Cargo Management (TCM) services to Pegasus and a number of mandate airlines such as Flynas, Corendon Airlines, Jazeera Airways, Neos Air, World2Fly, and Nile Air.

Kales manager Nouri Neller and his team are responsible for filling the lower deck compartments of the Pegasus flights ex Germany  – photo: private

Division of labor
When asked, WCS Network Director, Christian Weidener confirmed the new TCM focus of his company, which implies a division of labor with Kales. “This step enables us to present the air freight product of our mandate airline Pegasus differently to the markets,” the WCS executive stated. He also confirmed that the Turkish budget carrier does not intend to operate freighters. This option had been considered by the carrier’s management a few years ago, but was finally skipped.

Turkish airline bears a Greek name
The name Pegasus comes from Greek mythology and stands for a winged horse that could fly. It is headquartered in Istanbul and is a big catch for GSA Kales, even if CEO, Sebastiaan Scholte, diplomatically says: “Every customer is equally important to us.” Pegasus currently serves nine destinations in Germany (BER, CGN, DUS, FRA, HAJ, HAM, MUC, NUE, STR). In total, it conducts around 120 flights [sic!] per week, mainly using Airbus A320 neo/ceo and A321 neo aircraft. The abbreviation neo stands for ‘new engine option’, ceo means ‘current engine option’. The Airbus fleet is supplemented by Boeing 737-800s. The airline operates a total of 109 passenger aircraft and has a further 68 on order.

Many pennies make a dollar
According to Kales manager, Nouri Neller, the aircraft variants just mentioned offer a cargo capacity of between 1500 and 2000 kilograms per takeoff. However, this depends on the number and weight of passengers’ luggage. Yet even assuming an average load factor of 1.7 tons per flight, the total amount that Pegasus could fly out of Germany each week would add up to 200 tons. This is almost equivalent to the capacity of two B777 freighters.

WCS manager, Weidener confirmed that the utilization of Pegasus’ German flights has been good to satisfactory to date. He did not want to comment on the question of what volumes he expects Kales to deliver to fill the fleet’s lower decks in future.

Demanding customer
All in all, Pegasus is an exciting but also demanding new customer for manager Neller and his sales team. Instead of large consignments, it is mainly smaller goods that make up the bulk of the volume. For example, ship spares, aircraft spare parts, medical test kits, automotive parts, and similar items.

This said, Pegasus requires quite complex and labor-intensive services from GSA Kales, with a high level of support and personnel deployment. “We will be hiring new employees to perform the job according to the required quality,” assures Nouri Neller.

Air France-KLM Cargo and CMA CGM split up

Heiner Siegmund
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Air France-KLM Cargo and CMA CGM split up

For insiders, the announcement comes as no surprise. The cooperation between the cargo airline and the French shipping line, announced with great fanfare at the start, is coming to an end before it really began. Both companies are going their separate ways, but CMA CGM will remain a key shareholder in AF-KLM.

The cooperation agreed in MAY22 between CMA CGM Cargo and…

In a joint press release published 16JAN24, the two companies announce that their separation will take effect on 28FEB24. Both companies blame this step on the political hurdles set up by governments, as indicated in their release: “The tight regulatory environment in certain important markets has prevented the cooperation from working in an optimal way. As a consequence, Air France-KLM and CMA CGM […] withdraw from their existing agreements from March 31, 2022. Air France-KLM and CMA CGM have begun discussions on new terms and conditions of a commercial relation to operate independently from March 31, 2024, onwards.”

The companies do not specify which ‘important markets’ they are referring to. But it can be expected that tensions between the Netherlands and the USA over antitrust clearance for joint Air France-KLM and CMA CGM cargo flights between Amsterdam and destinations in the U.S. got no clearance by the U.S. regulator after Schiphol announced to cut slots at SCL. This angered operators like JetBlue which asked Washington to pursue countermeasures. However, in their joint statement, Air France-KLM and CMA CGM do not address this aspect.

Long-term partnership ended quickly
Meanwhile they informed their customers that the groups “remain committed to work collaboratively, to ensure cargo customers can continue to benefit from their respective networks.”

Presumably to reassure the stock markets, both players also point out that, despite their split, CMA CGM remains a core shareholder in Air France-KLM, holding 9%.

The joint cooperation dates back to 18MAY22, when the cargo carrier and the container liner joined forces by signing a major long-term strategic partnership in global air cargo, initially set to last for ten years. Practically, the tie aimed at combining their complementary cargo networks and link their full freighter capacity, became effective in MAY22. It was intended to help meet customers’ ever-increasing demands for more integrated and resilient supply chains.

According to the deal, Air France-KLM and CMA CGM planned to operate a fleet of 10 freighter aircraft, with four belonging to the shipping line and six to Air France-KLM Cargo. The partnership also covered Air France-KLM’s belly aircraft capacity available on the Franco-Dutch carrier’s 160 long-haul aircraft.

…Air France-KLM Cargo never really got out of the starting blocks  – courtesy: CMA CGM Cargo / Air France – KLM Cargo

Many questions, few answers
The question now, is what comes after the breakup? Will the air freight newcomer CMA CGM Cargo market the fleet of its four B777Fs on its own or commission a GSA to do so? Prior to the agreement with Air France-KLM, the French group, ECS, was responsible for selling the capacity. An open issue is also what will become of the order for a further 9 freighters, among them 4 A350F. Or will the Shipping Line step out of the air freight business altogether?

It can be expected that CMA CGM will sell their capital shares in Air France-KLM come 2025 since the existing lockup period which originally expired in 2028 was amended and ends now on 28FEB25. Until then, many unresolved issues have to be straightened out which include the role of CMA CGM’s subsidiary, CEVA. Today, the only certainty is that CMA CGM will step down from the Air France-KLM Board of Directors on March 31, 2024 – a clear signal of partition. It must also be noted that the project of cooperation between a cargo airline and a shipping company, which began with great hope, has vanished into thin air.

HNA Cargo capacity to launch on cargo.one this Spring

Brigitte Gledhill
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HNA Cargo capacity to launch on cargo.one this Spring

Chinese air logistics group, HNA Cargo, which operates on behalf of Hainan Aviation Group, including China’s fourth largest airline, Hainan Airlines, has now chosen cargo.one as its first digital marketplace. In a couple of months from now, international forwarders using cargo.one will be able to search and book real-time cargo capacities offered by HNA Cargo on 2000 international and domestic routes to, from and within China. For HNA Cargo, this decision gives it access to freight forwarders across 107 markets and, at the same time, places it as “the air logistics group partner that offers the largest number of portfolio airlines on cargo.one,” according to cargo.one’s press release: “a combined fleet of 600 aircraft spanning 11 airlines including Hainan Airlines, Capital Airlines, Tianjin Airlines and Suparna Airlines.” The digital platform has already seen 400% growth over the past 18 months.

Coming this Spring: HNA Cargo’s substantial capacity portfolio on cargo.one. Image: cargo.one

Qiushi Zheng, Vice President of HNA Cargo, explained: “With our network covering more than 300 cities and regions at home and abroad, HNA Cargo holds a strong resource advantage. This digital partnership helps ensure that we benefit fully from our transportation capacity and can achieve optimal distribution. As our first global digital sales channel, cargo.one adds value with its high-quality booking solutions and delivers us unique access to thousands of freight forwarders of all sizes through its impressive footprint. During our collaboration, cargo.one has impressed our teams with its technical proficiency and strength of purpose to accelerate and optimize our digital sales gains.”

Moritz Claussen, Founder & Co-CEO of cargo.one, stated: “We are delighted that HNA Group is choosing us to help deliver their digital ambitions. With currently more than 50 digitally connected airlines, no other platform can deliver forwarders access to such superior differentiated supply, whether through our web-based application or API suite. As the go-to partner for digital distribution, cargo.one will ensure that HNA Cargo offers are always front of mind in every relevant market.”

New year, new aircraft for Atlas Air

Brigitte Gledhill
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New year, new aircraft for Atlas Air

Atlas Air Worldwide Holdings, Inc subsidiary, Atlas Air kicked off the new year with a happy event: the delivery of a fourth new Boeing 777 freighter that it will operate for MSC Air Cargo (the virtual airline fraction of MSC Mediterranean Shipping Company SA, launched at the end of 2022). This means increased weekly air cargo services, including its successful first commercial flight from Hong Kong (HKG) to Dallas/Fort Worth (DFW). The first of the four B777 aircraft under ACMI (aircraft, crew, maintenance, and insurance) contract that Atlas Air operates for MSC Cargo, was delivered in NOV22. Freighters two and three in JUL23 and NOV23, respectively. This fleet of four modern freighters which can cover the greatest distance in comparison to other freighters, allows Atlas and MSC Cargo to offer a cleaner, quieter, more cost and fuel-efficient service, with a possible uplift of 107 tons per flight.

A new plane is always a good reason to smile. Image: MSC Mediterranean Shipping Company

Richard Broekman, Chief Commercial Officer and Head of Sustainability, Atlas Air Worldwide, commented: “The delivery of this fourth 777 Freighter that we are operating for MSC, marks an incredibly exciting milestone of our long-term strategic partnership. We value our partnership and look forward to building upon our relationship with MSC as the company continues to grow its air cargo solution for its customers.”

Anders Matikka, Vice President, Air Cargo, MSC, said: “This latest 777 Freighter delivery represents a pivotal moment and significant milestone for our company as it marks the completion of our first set of aircrafts in partnership with Atlas Air. This new and enhanced fleet will empower us to elevate our offering, ensuring enhanced support for our valued clients and a stronger presence in the market.”

Silk Way West Airlines takes another step to sustainability

Brigitte Gledhill
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Silk Way West Airlines takes another step to sustainability

When it comes to a less negative environmental impact in air cargo, every little bit helps – and that can be anywhere along the logistics chain. In Silk Way West Airlines’ case, the focus in this particular milestone, is on operation in the cockpit. It has chosen to adopt Electronic Flight Bag (EFB) solutions developed for the aviation industry by Essen, Germany-based Logipad. The company’s software has been developed with the aim of increasing efficiency and safety in aviation operations, and provides crews with access to real-time data and critical information and resources. Given the fact that all this information is available at the touch of a screen button, this greatly reduces the amount of, or need for, hard-copy paper versions of those documents.

Finger on the pulse of tech for good. Image: Silk Way West Airlines

Not that Silk Way West Airlines has partnered with Logipad, it will also benefit from more efficient, environmentally friendly process. The decision to adopt Logipad solutions was taken as an action within the airline’s sustainability strategy as well as its focus on digital transformation.

Wolfgang Meier, President of Silk Way West Airlines, summarized: “Joining the Logipad community is a significant milestone in our journey towards a global sustainable future. By introducing a paper and wood-saving program, we not only streamline our logistics processes but also contribute to environmental conservation. Silk Way West Airlines is dedicated to making responsible choices that benefit our planet and the communities we serve.”

SkyCell keeps an eye on AFKLMP Cargo containers

Brigitte Gledhill
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SkyCell keeps an eye on AFKLMP Cargo containers
Adriaan den Heijer, EVP Air France-KLM Cargo and Managing Director Martinair Image: AFKLMP Cargo

Swiss pharma supply chain technology company, SkyCell, has been chosen by Air France KLM Martinair Cargo to provide and enhance its ULD tracking and visibility. As the airline group’s preferred unit load device (ULD) tracking partner, SkyCell will deploy its state of the art, built for purpose IoTs across Air France KLM Martinair Cargo’s ULD fleet, thus enabling real-time visibility into its ULD operations. That visibility is shown on the software company’s SkyMind platform. Thanks to the deployment of innovative readers and tags combined with state-of-the-art technology, SkyMind is able to illustrate what is happening with the ULDs and where they are along the journey. This information enables Air France KLM Martinair Cargo to proactively tackle and irregularities and work more efficiently that it has been able to in the past, when tracking and tracing was a much more manual and complex process. Efficient processes naturally also mean significant operational and cost efficiencies, and hence greater customer satisfaction overall.

Adriaan den Heijer, EVP Air France-KLM Cargo and Managing Director Martinair, explained: “We’ve decided to invest in the latest asset tracking technology with SkyCell. A new technology solution called SkyMind has been developed. Implementing state-of-the-art tracking devices to locate our ULDs will not only enable us to track our assets but will also significantly enhance our operational quality. Real-time ULD tracking will enable us to address the issue of ULD losses, whether by ground handling partners or our valued customers, and will ensure seamless movement of cargo. With improved ULD management, we can optimize our operations and deliver exceptional service to our air cargo industry partners.”

Nico Ros, CTO and Co-Founder SkyCell, announced: “We’re excited about our partnership with Air France KLM Martinair Cargo, as we establish a new standard in technology for Air Cargo’s ULD (Unit Load Device) management. This achievement is made possible through our close cooperation with Air France KLM Martinair Cargo and the integration of SkyMind, our IoT-driven visibility platform with specialized ULD management. The partnership marks a major transformation in the airline industry towards automation, with a strong focus on efficient ULD management, streamlined dispositioning and improved asset utilization.”

Dronamics among those launching EU Future Mobility Taskforce

Brigitte Gledhill
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Dronamics among those launching EU Future Mobility Taskforce

“You’ve got to be in it, to win it,” is a popular phrase when it comes to competitions and lotteries. “You’ve got to be in it, to change it” could be a valid adaptation when it comes to driving change and smoothing the path for innovation in mobility. A new taskforce is setting out to do this and Dronamics is among its members. The cargo drone airline has joined forces with 15 other European private mobility companies (a mix of influential unicorns and startups: Aura Aero, Bolt, Cabify, Carto, EVBOX, EV Connect, Fastned, Flix, Lilium, MaasGlobal, Nevomo, Otiv, Volocopter, Voi, Virta), to launch the EU Future Mobility Taskforce. The initiative was announced after a joint meeting with the European Commissioner for Transport, Adina Vălean.

At the launch of the EU Future Mobility Taskforce. Image: Dronamics

The taskforce, brainchild of Bolt and Cabify, sets out to unite the EU’s mobility innovators (focused on cargo, air mobility, shared mobility, EV charging, maglev, rail, transport innovation and deep tech) and collaborate in providing information and guidance to EU policymakers for the next legislative mandate, thus accelerating efforts and ensuring continued European leadership in global transport innovation. First step is a comprehensive report on members’ requirements and recommendations, due for presentation to Commissioner Vălean this Spring. Mobility must be made more sustainable, affordable, and connected, yet its innovators often face outdated and fragmented regulation, a lack of enforcement, market entry barriers, or barriers to accessing finance and data accessibility.

Commissioner for Transport, Adina Vălean, announced: “Today [11JAN24], marked the launch of the EU Future Mobility Taskforce, where 16 CEOs and Founders from Europe’s top private mobility unicorns and startups joined forces. In a dynamic meeting, we delved into the needs of our transport innovators and explored ground-breaking initiatives like Drone Strategy 2.0 and future Hyperloop regulatory frameworks. The European Union is boosting financial support for transportation innovators and startups through Horizon Europe cluster 5 and EIT Urban Mobility. The European Innovation Council, with a EUR 10 billion budget, is calling on transport entrepreneurs to apply.”

Svilen Rangelov, Co-Founder and CEO, said: “As Europe’s cargo drone airline, we are delighted to be part of the EU Future Mobility Taskforce, working with fellow mobility innovators and unicorns. Middle-mile deliveries by cargo drones have a significant potential for the European as well as the global economy at large, enabling faster, cheaper, and green goods mobility, [and are] key to advancing the European Commission’s Sustainable and Smart Mobility Strategy.”

Astral Aviation selects Euro Cargo Aviation and Take Off Aviation as GSAs

Brigitte Gledhill
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Astral Aviation selects Euro Cargo Aviation and Take Off Aviation as GSAs
Sanjeev Gadhia, CEO, Astral Aviation. Image: Meantime Communications

Astral Aviation has appointed Euro Cargo Aviation to act as its cargo GSA in Europe, USA & UAE, and Take Off Aviation as its cargo GSA for South Africa. The Kenyan airline announced the Global Sales Partnership Agreement which came into effect with 01JAN24, earlier this month. The two entities are responsible for marketing the Astral Aviation’s cargo capacities to potential clients, businesses, freight forwarders, and other stakeholders. They published the following statement: “Euro Cargo Aviation and Take Off Aviation are delighted and immensely proud to represent Astral Aviation as its Cargo GSA. Our collaboration with Astral Aviation marks a significant milestone for our organization as we join forces to enhance our business endeavors, leveraging our collective decades of expertise in the dynamic African market. Together, we are poised to achieve new heights, fostering growth, and delivering unparalleled value to our clients. This collaboration underscores our commitment to excellence and innovation in airfreight services to Africa, and we look forward to a successful and mutually beneficial journey ahead with Astral Aviation.”

Sanjeev Gadhia, Astral Aviation’s CEO, added: “We look forward to our partnership with Euro Cargo Aviation, who will act as an extension of our esteemed company, representing its cargo services, driving sales, ensuring operational efficiency, and maintaining customer satisfaction for its scheduled and charter network from Europe, USA & UAE, which will be directed towards Astral’s strategic hubs in Dubai and Nairobi, while Take Off Aviation will promote Astral in South Africa. We are confident of Euro Cargo’s professionalism, expertise, and neutrality to represent us in three of the key markets and look forward to a new partnership.”

Vienna Airport has a new Head of Ground Services

Brigitte Gledhill
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Vienna Airport has a new Head of Ground Services

Since 01JAN24, Michael Zach is Vienna International Airport’s new Head of Ground Services. He succeeds Franz Spitzer, who is partially retiring after almost three decades in the employment of Flughafen Wien AG.

Michael Helm new Ground Services head at VIE. Image: Flughafen Wien AG

Zach, who is now responsible for cargo, baggage, and ramp handling, alongside aircraft de-icing, has been with the airport since 2006, and comes over from Sales, Finance and Cargo within its Handling Services division – a post he held since 2018. His other previous positions include Managing Director of the City Airport Train, Managing Director of Business and General Aviation and the VIP Terminal. Vienna Airport’s press release lauds his many achievements and years of management experience in various leadership roles, and reveals that, in his new position, he now heads the largest division of Flughafen Wien AG, which employs 1,400 staff.

Julian Jäger and Günther Ofner, members of the Management Board of Flughafen Wien AG, agreed: “Michael Zach is the ideal choice for the position of Head of Ground Services – he will continue the airport’s successful course. At the same time, we would like to thank Franz Spitzer for his dedication and commitment to our airport, which he has played a key role in shaping for many years. We wish him all the best for this new chapter in his life.”

Michael Zach, Head of Ground Services at Flughafen Wien AG, commented: “Since 2018, I have been able to help develop ground handling at Vienna Airport together with Franz Spitzer. I am very pleased to now have the opportunity to assume overall responsibility for ground handling services at the airport and to continue the successful cooperation with my colleagues here.”

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