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Lufthansa Cargo and Vienna Airport extend their collaboration

Four years is not just a U.S. presidential term, but also the length of the extended handling contract signed between Lufthansa Cargo and Vienna Airport last week. The airport will continue to provide cargo handling services for the airline until the end of 2028 and looks back to fruitful collaboration since 2010, covering all types of products from general cargo and mail, to temperature-sensitive pharmaceutical shipments and dangerous goods. Good for Vienna Airport, since Lufthansa Cargo is amongst its largest customers – not just of the airport’s cargo handling services, but also of the Vienna Airport Pharma Handling Center. Apparently, Vienna Airport holds the accolade of being the most punctual hub in the Lufthansa network, though it has to be said that much of the cargo travelling into and out of Vienna is via road feeder service, complementing belly capacities on Austrian Airlines flights.

From left: Michael Zach, Airport VIE, Theresa Schlederer, LHC, and Julian Jäger, VIE – image: Flughafen Wien AG

Julian Jäger, Joint CEO and COO of Vienna Airport, declared: “Vienna Airport offers a high level of quality not only in passenger and baggage services, but also in cargo handling. We are therefore pleased that we can gain the trust of Lufthansa Cargo and continue our good cooperation for the next five years. With efficient handling processes, fast turnaround times and a broad range of services, we are well positioned in the cargo sector and see high growth potential, especially with our Pharma Handling Center.

Theresa Schlederer, Director Austria at Lufthansa Cargo AG, commented: “Vienna Airport is an efficient east-west hub with fast turnaround times. This makes it one of our most important hubs in Europe. The handling service includes 24/7 customer service, monitoring, and weekly quality checks. Thanks to this reliable and close cooperation, we can offer our customers fast and easy access to the freight markets, primarily in Southeast Asia. The airport’s Pharma Handling Center also provides ideal conditions for our growing tonnages in the pharmaceutical sector.”

Michael Zach, Head of Handling Services at Flughafen Wien AG, stated: “With a tonnage share of almost 40% in 2023, Lufthansa Cargo is Vienna Airport’s largest customer. The contract extension is therefore of great importance and, together with the top results for handling speed and efficiency, is a confirmation of our quality and a clear signal to the market. We are very grateful for the trust placed in us and will continue to do our utmost to further develop our services with a focus on our customers.”

Ready for Round Six of TIACA’s Sustainability Awards?

Send in your world-improving idea, now! Image: TIACA

As they say, “You’ve got to be in it, to win it!”, and when it comes to TIACA’s Air Cargo Sustainability Awards, we are all winners. Why, because these awards encourage progress for the better – and have been doing so since 2019. On the Corporate side, best-practice initiatives are made public, and in the Start-Up and Small Businesses category, Winners and Runners-Up are presented with cash prizes (USD 10,000 and USD 2,500 respectively) and given a platform to share their projects. This includes “access to exclusive TIACA events and speaking opportunities…[and] submissions received throughout the awards period have the option of being featured in the newly released newsletter ‘Mission Innovation’,” the press release emphasizes.

Applications are open for the next Air Cargo Sustainability Awards at the Air Cargo Forum in Miami, 11-NOV24. A jury of independent industry and sustainability experts will determine the Corporate Category winner and invite the 3 finalists in the Start-Up/Small Business Category, to present their initiatives at the event. Projects can pertain to any of the eight key objectives for more sustainable air cargo industry as illustrated in TIACA’s Sustainability Roadmap: Environment (Decarbonization, Elimination of waste, Protection of biodiversity), Society (Supporting local economies and communities, Improvement of lives and wellbeing), and Culture & Leadership (Improvement of efficiencies and profitability, Attraction, retention, and development of employees, Building and nurturing partnerships).

Deadline for this year’s (again CHAMP Cargosystems sponsored) applications is 15SEP24. CHAMP CEO, Chris McDermott, said: “We are very proud to once again be sponsoring TIACA’s Air Cargo Sustainability Awards, which is an incredibly important industry initiative [and] hope to empower air cargo professionals to innovate with sustainability in mind, and encourage all interested parties to submit an application.”

Steven Polmans, Chairman, TIACA, commented: “The industry has made it very difficult for our jury over the last few years with a wide range of sustainable solutions from drone delivery, use of sustainable aviation fuel, company-wide sustainability focus, and eco-friendly packaging, just to name a few. We are excited to see all entries that will be submitted this year as we are an industry known for ingenuity and innovation.” Glyn Hughes, TIACA Director General, stated: “We look forward to continuing the support of the sustainable transformation of the air cargo industry by continuing to evolve our robust Sustainability Program that includes, the Sustainability Roadmap, the annual Sustainability Survey and Insights Report, Invest in Climate Action and the Air Cargo Training Library.

Wingcopter and ITOCHU gearing up for drone delivery

First time a foreign drone is accepted for type certification in Japan. Image: Wingcopter

Long-time business partner and investor in Wingcopter, ITOCHU Corporation, is working together with Wingcopter to begin the type certification process for the Wingcopter 198 in Japan. Wingcopter is the first foreign drone company to be accepted for type certification under the unmanned aircraft class-1 type certification by the Japan Civil Aviation Bureau (JCAB) of the Ministry of Land, Infrastructure, Transport and Tourism, for its fixed-wing drone. Once certified, this will enable the start of commercial BVLOS operations in populated areas. The two companies already premiered a positive verification experiment back in MAY23, when piloting medical blood product transportation in Japan. Now, many more Proofs of Concept will be carried out with special permission until Wingcopter receives its type certification. Once issued, Wingcopter will be authorized to conduct flights equivalent to Level 4 (I.e.: Flights beyond visual line of sight [BVLOS] in populated areas), giving it much greater commercial versatility – a highly useful permit, given both Japan’s geography (many islands and secluded regions) and demography (an aging population). Also, Wingcopter together with ITOCHU would be among the first to establish commercial BVLOS operations in Japan. “ITOCHU and Wingcopter aim to use the Wingcopter 198 to establish drone delivery networks and services that can provide an air bridge to overcome various social challenges by transporting vital and urgently needed goods quickly and environmentally friendly over many kilometers and above challenging terrain,” the release states.

Florian-Michael Adolf, Head of Certification at Wingcopter, announced: “This milestone represents significant progress towards realizing commercial drone delivery in Japan and beyond. At Wingcopter, we are striving for type certification, as it underscores our commitment to safety of our product, as well as the diligence and professionalism of our entire team. We would like to thank our partners at ITOCHU for supporting us in this process with their extensive knowledge, network, and resources.

Masaharu Sato, Deputy General Manager, Aerospace Department at ITOCHU Corporation, stated: “We see great potential in Wingcopter’s delivery drone to make everybody’s life better and are delighted with the promising progress in realizing this value. It is our honor to collaborate with the dedicated professionals at Wingcopter, led by the management team around Tom, Jonathan and Ansgar. We look forward to continuing this exciting journey together.”

BUD selects KALE for its digital transformation

Signing the deal to digitally revolutionize cargo operations at BUD. Image: Meantime Communications

First came the cargo strategy, then the physical infrastructure, and now – with an ever-increasing number of air cargo customers serving the gateway, Budapest Airport has partnered with Kale Info Solutions to implement its Airport Cargo Community System (ACS). A choice that other airports in North America, India, UAE, and Turkey have already opted to take with proven success. Kale has even been recognition by the United Nations for its “innovative approach to trade facilitation,” the press release underlines. Kale’s next-generation cargo community platform facilitates paperless operations and comes with many features centered around air cargo’s developing business requirements. It streamlines information exchange between the different cargo handlers and integrators operating at the airport. Whereas in the past, they used separate IT systems for data collection, reporting and transmission to the airport and the relevant authorities, leading to error-prone, time-consuming double/parallel-date entry, now Kale’s ACS system streamlines the information in a single source giving stakeholders enhanced visibility and transparency, real-time tracking and monitoring of cargo movements, and automated regulatory compliance checks.

József Kossuth, Cargo Director for BUD, commented: “Budapest Airport aims to become the main cargo hub in the Central and Eastern European region. We are on the right track, as the dedicated development of the BUD Cargo City in recent years has provided world-class infrastructure, which, combined with excellent connectivity and a tight-knit cargo community, is attracting more and more partners. We are now the fastest growing airport in the region in terms of cargo volume, as we handled a record 201,306 tons in 2023 with +48.5% increase compared to 2019. The introduction of the new Airport Cargo Community System adds an important innovative feature to BUD’s profile, further strengthening the hub function of the airport. The ACS will serve as a centralized platform, facilitating seamless communication and data exchange among all stakeholders involved in the cargo handling process.” Vineet Malhotra, Co-Founder, and Director of Kale Logistics Solutions, stated: “We are excited to partner with Budapest Airport in introducing our ACS, which will play a pivotal role in optimizing cargo operations and enhancing overall efficiency. As a leading technology provider to airports worldwide, we are proud to bring our expertise and best practices to this collaboration, ensuring the highest standards of service and innovation. Through this collaboration, we aim to set new benchmarks in cargo handling and contribute to the continued growth and success of Budapest Airport, as a key logistics hub in Europe.

DB Schenker is now GDP-compliant at 157 stations

Thermal cover being added to protect pharmaceutical products. Image: DB Schenker/Ton Paulissen

Just like you expect a McDonald’s burger to look and taste the same wherever you are in the world, you would also hope for the same high level of operational quality when it comes to pharmaceutical supply chain logistics. Particularly in the case of commodities that greatly impact the health of patients around the world. DB Schenker recently completed Good Distribution Practice (GDP) standards certification at 157 of its stations. DB Schenker is now one of the world’s largest GDP-compliant logistics networks, and can cover 80% of the world’s healthcare flows with these certificates – particularly across the most important markets for the global trade of medical goods: the Americas, Europe and Asia. And it plans to have over 180 of its stations certified within the next twelve months. With this seal of approval that denotes the company’s commitment to excellence and regulatory compliance, DB Schenker secures greater standing and is clearly equipped to the global pharmaceutical industry’s growing requirements. Its in-house Global Healthcare Quality Management System addresses the Good Distribution Practices for medicinal products for human and veterinary use and related active substances as set out by the European Union (EU) and the World Health Organization (WHO), and ensures compliance through its internal Directive Healthcare Quality Management.

When DB Schenker started the implementation process for certification, the first goal was to define a global standard valid for all transport modes. This made the GDP certificate suitable. The comprehensive certification ensures that the process, infrastructure, and staffing comply with the stringent requirements of the pharmaceutical industry, using this ideal approach across all business units. After a station is awarded certification following successful completion of an internal certification process, a risk-based re-audit is performed based on continuously measured KPIs. This is repeated at least every 3 years to ensure the highest quality is maintained,” the release details.

Veronique Dameme, Head of Global Vertical Market Healthcare at DB Schenker, said: “At the end of every healthcare supply chain there is a patient. That’s why we ensure that medical products are stored and distributed in accordance with the highest standards. The successful GDP certification of our facilities marks a significant milestone on our roadmap and shows our ongoing pursuit of excellence in pharmaceutical logistics.”

Menzies Aviation’s Recite Me makes it easier to apply for jobs

For a more inclusive, barrier-free recruiting process. Image: Menzies

Recite Me is a software company that aims for break down barriers online to make websites accessible to everyone. It was founded in the UK in 2009 and has since worked with many established companies, assisting them in facilitating all kinds of online processes. Menzies Aviation is the latest to partner Recite Me and has chosen to focus on making its recruitment processes more accessible. Recite Me’s website has this to say about Recruitment: “Everyone should have the opportunity to find their dream job. Discover hidden talent and recruit from a larger talent pool by providing assistive technology. Support your potential candidates who may be disabled, visually impaired or who speak English as a second language, with tools to use your website effectively.” Within such an internationally active company as Menzies Aviation, English as a second language is definitely a large topic. Hence, with Recite Me, existing and potential employees visiting Menzies’ Global Careers Hub now have access to an on-demand live translation feature capable of handling more than 100 languages, including 65 text-to-speech and styling options. They can also customize the page to suit their requirements, using a large variety of tools on the Recite Me assistive toolbar, which include a screen reading functionality, multiple reading aids, and customizable styling options.

This assistive technology supports Menzies’ diversity strategy and opens up opportunities to a greater spectrum of the workforce, ultimately leading to greater diversity and inclusivity within the company.

Juliet Thomson, Chief People Officer, Menzies Aviation, explained: “Ensuring that everyone can access our Global Careers Hub in an inclusive way and that best suits their needs is vital to maximizing the strength and diversity of our workforce. We’re proud to have embraced Recite Me’s innovative assistive technology, which will improve accessibility for anybody wanting to build their career at Menzies.” Ross Linnett, Founder and CEO, Recite Me, said: “It is important to provide an inclusive online experience, where everyone can use our digital world in a way which best suits their needs. As more organizations provide accessibility tools online, those who face online barriers can access information and services hassle-free. The digital world must be accessible for all.”

MST welcomes Malaysia Airlines’ weekly freighter

From the 13APR24, weekly Malaysia Airline flights will carry cargo to and from Maastricht Aachen Airport. Image: Meantime Communications

Malaysia Airlines has opted to put its cargo eggs into two baskets, it seems – to the benefit of Maastricht Aachen Airport (MST). MST has become the second Dutch airport for the airline’s cargo services from Kuala Lumpur. It already flies to Schiphol Amsterdam Airport (AMS). At the same time, MST is only the second airport in Europe served by Malaysia Airlines. From this month on, Malaysia Airlines will operate a scheduled weekly flight, deploying a “relatively fuel efficient and quieter” Airbus A330F on the route. The year has started well for MST. It welcomed Royal Jordanian Airlines back in JAN24, with its new fleet, and now Malaysia Airlines is the second business win. The airport puts its success down to the recent strategic investments and renovations that were carried out by its two shareholders: RSG (40%) and the province of Limburg (60%). Together, they invested EUR30 million in a new runway (completed last year), and another EUR40+ million are flowing into further infrastructure and hardware upgrades to the airport. Investments that stand it in good stead to deal with possible further fall-out from a slot-limited AMS, around the corner. Jonas Van Stekelenburg, Chief Executive Officer (CEO), MST, said: “This is an important opportunity for MST, as since Royal Schiphol Group (RSG) invested in 40% of the airport last year, we have seen our operations consistently growing. Our new runway and close partnership with AMS are among the many reasons we can offer MH a great option to fly inbound and outbound cargo to and from. Our location, high-performing team, and efficiency are widely known to attract cargo flights, but being part of RSG is accelerating our growth and popularity within Europe as a top cargo destination.”

Challenge Technic exercising expansion techniques

Growing to the Challenge. Image: Challenge Technic

Challenge Group’s maintenance subsidiary, Challenge Technic, has a shopping list of activities scheduled for 2024, as it grows to match its expanding customer portfolio. Among those customers is its own peer, Challenge Airlines, which welcomes new aircraft to its fleet, and thus requires more maintenance flexibility and facilities. A total of three new planes are due, hence Challenge Technic is looking to open a new line station and A-Check line in hangar, and will be recruiting new staff to manage the increased workload. But its customers growth is not limited to in-house. Challenge Technic has already welcomed one external new partner this year, with the addition Leav Aviation GmbH since 01MAR24. The airline’s two A320s are maintained at Challenge Technic’s Cologne/Germany hangar. Another two customers additions are already lined up – in total, nine more aircraft awaiting maintenance.

Infrastructure and digitalization are also on the books. The company hints at the inauguration of a new, large hangar this month, able to hold a B747, but does not reveal where. And it continues on its digital transformation, focusing on a new, activity-based system this year. Sustainability initiatives are also ongoing. These include investments in electric vans, waste recycling programs in three countries, and energy-saving measures at all line stations.

In just six years, Challenge Technic has become an established player on the MRO (Maintenance, Repair, and Overhaul) scene and counts more than 35 airlines as its customers, providing MRO services “with passion, precision, and fair pricing,” the release emphasizes. CEO and Accountable Manager, Erlingur Petur Ulfarsson explains: “Challenge Technic focuses not on being the cheapest, but on maximizing flight hours for clients, ensuring minimal turnover thanks to its stellar reputation. Challenge Technic’s expansion in 2024 is a testament to its unwavering commitment to excellence, customer satisfaction, and sustainability, reinforcing its position as a leader in the aviation maintenance sector.”

Ardian sells Staci to bpost

Belgian postal service provider bpostgroup has acquired Staci (100%), a fulfilment and logistics services specialist registered in the Parisian suburb, Pontoise. Seller is French private investment house Ardian that purchased Staci in 2019, together with some other minor stakeholders. The deal, valued 1.3 billion euros, will enable state-owned Belgian Post to strengthen its position in Europe and secure market shares in the APAC region as well as in North America.

Different names, common goal: business success – picture: courtesy Belga / Staci

The days when state postal services defined themselves primarily as deliverers of letters and small items, are largely over. Today, they are increasingly moving into the business of multichannel logistics and distribution solutions, including B2B, B2C, D2C and e-commerce. Hardly any other company embodies this transformation from letter carrier to full service provider more vividly than Deutsche Post. It bought the U.S. express service DHL in 2000, and now operates internationally under its name.

The Dutch postal service (Posterijen, Telegrafie en Telefonie) pursued a similar strategy when it took over the Australian express service provider TNT in 1998. However, the plan did not materialize. Today, TNT is part of FedEx and the logistics division, TNT Logistics, has been renamed Ceva Logistics, which belongs to the French multinational shipping company CMA CGM.

“The Staci acquisition catapults bpost to the next level” – Chris Peeters
Next postal candidate to strive for higher goals is the Belgian bpostgroup. By acquiring Staci, it embarks on an expansion spree with the ambition of opening up new markets and further strengthening existing business areas. Chris Peeters, CEO of bpostgroup, explains the logic behind the Staci purchase: “The contemplated acquisition […] is fully in line with the strategic choices bpostgroup had already made and presents the potential for a robust B2B-service offering. Also, bpost in Belgium can expect extra volumes in its last-mile-delivery network. Moreover, this transaction promises growth, sustainable employment, and enduring value creation.”

bpost emphasizes that Staci’s service portfolio complements that of its own subsidiaries, Active Ants and Radial, and amplifies its existing activities. It will gain immediate access to special know-how and technology of B2B, e-commerce and benefit from successful initiatives lifting the traditional brick-and-mortar businesses to the next level. As a welcome addition to the deal, bpost gets access to Staci’s portfolio of clients in many sectors, including Fast Moving Consumer Goods (FMCG), retail, pharmaceutical, health, cosmetics, industrial, energy, financial services, catering, and public services. Above all, bpost expects that the acquisition accelerates the ongoing transformation of its business model in its traditional Belgian home market, by accelerating processes.

Strategic change
Chris Peeters comments: “I am convinced that with the contemplated acquisition of Staci, we will be ready for robust growth. The B2B logistics sector, including in Belgium, holds immense potential. Our collaboration with Staci will bring us expertise, innovation power, and customer insights, enabling us to craft a complete customer-centric offering tailored to their needs. With this strategic change, we aim at possessing the assets, potential, and ambition to excel as an international logistics player, securing a sustainable future for our company and employees.”

No job-axing, promises bpost
bpost emphasizes that the management team and all employees of Staci will remain on board, so that the group can continue to rely on their expertise and experience. After the transaction closing, Staci CEO Thomas Mortier will become member of the executive committee of bpostgroup and will lead the new business unit 3PL.

The Belgian Post Group plans to pay the transaction by using bridge financing upon closing combined with a portion of its own cash. The transaction is subject to prior communication and consultation with the relevant employee representatives, and is expected to close in fall 2024, depending on green light from the relevant competition authorities.

China invests heavily in drone industry

Drones can be used in multiple ways, for both civilian and military purposes. The latter is demonstrated day after day by Russia’s war against Ukraine. China has now announced its intention to provide the equivalent of USD 70 billion for the development of a ‘low altitude economy’. A gigantic chunk of money.

China is building various models of smaller drones such as the FimiX8 Mini to scan landscapes – courtesy China-Gadgets…

The volume of the market segment of low-altitude aerial vehicles [operating below 1,000 meters], grew by almost 34% last year, reaching a financial volume of USD 70 billion. Market experts forecast it will more than double by 2026. This estimate is based on an analysis from a research institute linked to Beijing’s Ministry of Industry and Information Technology (MIIT), and published last week.

Sun Wensheng, Deputy Director of the Department of General Affairs at the Civil Aviation Administration of China (CAAC), stated that the regulator intends to “continuously improve support services for low-altitude flight activities, including plan approval, air traffic management, meteorological services, communication and surveillance.”

Powerful driving force
The project is outlined in a nine-page guideline for the general aviation industry presented by the MIIT in cooperation with other agencies. The scheme reveals government intentions to provide considerable start-up assistance to pave the way to launching commercial applications in sectors such as urban air transport, drone food deliveries, emergency rescue, and logistics supplies, in general. “By 2030, a new development model for general aviation, characterized by high-end, intelligent and green features, will be established,” the guideline announces. It goes on to say: “General aviation equipment will be fully integrated into production and life, becoming a powerful driving force for economic growth.”

Bright future of drone applications
“In China, civilian drones have pioneered industry-wide adoption in sectors such as agriculture, fishery, forestry, animal husbandry, and aerial photography,” stated Luo Hongjiang, from the civil aviation regulator during a briefing last week. He went on to say: “Logistics services of drones have expanded into urban commercial areas and communities. The airworthiness certification process for eVTOL aircraft is steadily advancing, and the future prospects of drone applications are bright.”

but also large combat drones, like the WZ-7 “Soaring Dragon” –  courtesy: Future Zone

Dual-use considerations
The USD 70 billion project runs under the collective term ‘General Aviation’. Possibly a deliberate name that sounds harmless in order to emphasize the civilian nature of the scheme to the outside world, to avoid raising and spreading mistrust. In a country that keeps its true plans under wraps, it fits that military considerations are not mentioned anywhere. However, experts suspect that the entire plan is of dual-use character, i.e. the high investments in drones also serve to build up a powerful drone infrastructure for the Chinese military, which is under the command of China’s Central Military Commission. Just this March, a large Chinese drone was discovered in the airspace of Taiwan – a country that China regards as part of its own territory and wants to annex – by force if necessary.