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Countdown Begins for RACCA 2019 Spring Conference

Countdown Begins for RACCA 2019 Spring Conference

Mark your calendars for the 2019 Regional Air Cargo Carriers Association’s (RACCA) Spring Conference taking place at the beautiful Hilton Scottsdale Resort April 23-25 in Scottsdale, Arizona.

Regional Air Cargo Carrier Association members get in-depth coverage of the core issues affecting the industry and workshops for developing business.

The conference will kick off with the Regional Air Cargo Carrier Association’s golf event at the We-Ko-Pa Golf Golf Club at 8:30 a.m.

Registration is now open and includes the opportunity for RACCA members to participate in a special trip to the Frank Lloyd Wright Museum which includes a lunch and wine tasting vineyard.

For more information about the exciting event, visit: Regional Air Cargo Carriers Association Online

 

SOURCING THE BEST CARRIER/AIRPORT CONNECTIONS

Sourcing the best airport connection can be tough when big-name companies such as Amazon Air continue to announce expansions to create and delegate more space for operations. As a prime example, Amazon Air is aggressively taking over regions in the Midwest and South through increased fulfillment centers and expanding air cargo capabilities.

Back in December, Amazon Air confirmed the expansion investment of the Chicago Rockford Airport region by 120,000 square feet to make room for an additional eight-plus planes. The quickly growing logistics network Amazon prides itself in is provided with all the tools needed to continue leveraging growth momentum. Additionally, the company is not afraid to call out the need for the potential threat the expansion poses to competitors UPS and FedEx by adding that such competitive disruption is necessary.

Additionally, Amazon announced plans to expand its network in the Lone Star State at the Lonestar Dallas Air Hub, projecting “to handle multiple flights daily” that “will be tailored specifically to Amazon Air’s larger-scale regional needs.” A Morgan Stanley report estimates that “Amazon’s volumes moving onto Amazon Air are costing UPS/FDX Air roughly 200-300 bps of volume growth.”

Consider the substantial air-cargo growth reported for Budapest Airport. Most recently, the Central European hub confirmed record rates of double-digit growth for three years straight. It seems every time Budapest Airport makes the news, it’s to report on higher growth rates from before.

“These latest figures are exciting as they represent three years of uninterrupted double-digit growth at the airport,” says René Droese, Budapest Airport’s director of Property and Cargo. “We are focusing all our efforts to make good use of the ideal conditions in Budapest and turn Liszt Ferenc International Airport into a major cargo logistics hub for the Central-Eastern European region. For this, we are establishing appropriate technical, security and traffic conditions; the relevant projects entered the phase of implementation last year, and we can successfully complete them this year. As a first step we handed over a 16,000 m2 new cargo warehouse and office capacity for our integrator partners in 2017; their traffic has been constantly developing for years.”

To continue these significant growth rates for 2019, the airport is preparing a new cargo apron to house and simultaneously operate two Boeing B-747-8F freighters.

“The combined value of this development effort in 2019 reaches EUR46 million and is financed by Budapest Airport itself,” Droese notes. “Our goal is to deliver, by the end of this year, an ideal cargo infrastructure for all segments of our well-balanced customer portfolio, for full freighters, belly cargo, integrators and roader feeder trucking, too.”

The common denominator is proactive efforts to leverage and increase the momentum before it’s too late. Key considerations include regional advantages, current and potential partnerships, operational efficiencies and even integrating technology solutions that streamline communications and transports.

“Rising demand is illustrated by the fact that last year a number of widebody and jumbo freighters were being loaded at the airport each day, including Boeing B-747s operated by Cargolux, AirBridgeCargo and Silk Way West, and Airbus A300s, A310s, A330s used by Turkish Cargo and Qatar Airways Cargo,” Droese says.

Many might recall the June 2018 Air Cargo Advance Screening Program mandating foreign shipments to be subject to providing a laundry list of pre-arrival cargo data when the U.S. is the final destination, per measures from the Department of Homeland Security. Strict screenings such as these have been implemented globally, as recently reported for Dubai Customs, which prides itself on significant progress in performance due to the advanced infrastructure as well as supportive government policies assisting in facilitating global trade efforts. The success is also paired with a proactive approach involving careful evaluation and research of trade trends.

Director of Dubai Customs, Ahmed Mahboob Musabih, explains: “We have an integrated strategy in place to develop the external trade performance further following the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, vice president, prime minister and ruler of Dubai, and along with the guidelines of Dubai Plan 2021 and the UAE Centennial 2071. We are watching closely the changes taking place in the international trade and we will turn challenges into opportunities by entering new markets and expanding our existing ones.”

More recently, however, Dubai Customs reported several cases where significant smuggling attempts were stopped because of the diligence and seamless communication strategies in place. One report identified 922 successfully prevented smuggling attempts, of which 38.5 percent were drug contrabands. Even more interesting is the time-frame the attempts occurred: between January and September of 2018.

“Thanks to our inspectors’ vigilance, we are closely in full control of all checkpoints,” explains Ibrahim Al Kamali, Dubai Customs’ director of Passenger Operations. “Our inspection officers receive the best training on body language and different types of drugs, and how to distinguish fake brands from genuine ones.”

“There are challenges facing customs authorities in countries that have strategic locations,” Musabih points out. “Dubai is not an exception. It’s strategically located between East and West, and it has spent billions of dirhams to develop its infrastructure, ports and airports.

“The Emirate has also provided an unprecedented host of services and products, including the iDeclare application which significantly reduces passengers’ time needed to declare different belongings. These advanced services will facilitate passengers’ entry into the country.”

From security and trust to reliability and competition, sourcing the best carrier and airport connection needs to align with customer needs, the types of products being transported, and compliance efforts for the region. Just because an airline is associated with a big brand does not guarantee a seamless transport of goods.

Conduct necessary research and review updated reports to learn and identify an airline’s strengths and areas of improvement. No two carriers are the same, and the options available depend on the amount of knowledge you have going in and what fits your long-term and short-term needs. Consider the partnerships involved with the airline of your choice and how these partnerships create competitive advantage. If you can’t identify what makes a carrier or airline significant, it might be time to reconsider market options.

Descartes Air Cargo Advance Screening Solutions Provides Compliance Technology

Nippon Cargo Airlines confirmed this week the implementation of the Descartes Air Cargo Advance Screening Program to support efforts towards compliance for air cargo imports to the U.S. The announcement confirmed with the mandatory advanced security filings taking place, the company will rely heavily on the required ACAS to meet compliance requirements.

“Compliance with regulations, such as ACAS, is essential to ensuring safe and secure operations for our customers and NCA,” said Keita Sataka, Senior Vice President at NCA. “Descartes has a strong history of providing NCA and the air cargo industry with customs and security filing technology, and their ACAS solution provides a proven, reliable, cost effective way to meet data collection and submission requirements.”

The functionality of the ACAS requires pre-loading data to be submitted, following mandatory data requirements for air forwarders and carriers. The Descartes Global Logistics Network streamlines  the validation process by managing the flow of master and house bill information with automation.

“We’re pleased to help NCA comply with ACAS requirements,” said Scott Sangster, VP Global Logistics Network at Descartes. “Air cargo transportation is a vital part of the growing international logistics market, and Descartes’ solutions help carriers, like NCA, and other stakeholders in the air cargo community accelerate the movement of freight while meeting important security initiatives worldwide.”

Source: Descartes

New Interjet Service Links Houston and Monterrey, Mexico

Houston, TX – Interjet has officially began flight operations linking George Bush Intercontinental Airport in Houston, Texas with Monterrey International Airport in Monterrey, Mexico.

The airline will now offer passengers a choice between two daily flights Monday through Friday and one daily flight on Saturdays and Sundays.

Depending upon demand, the airline will feature service aboard its 150-seat A-320 and its 93-seat Superjet 100 aircraft, with passengers departing from Terminal D at the airport’s Mickey Leland International Terminal.

Interjet’s daily service will include service twice a day Monday through Friday, and once a day on Saturday and Sunday.

The arrival of Interjet is the latest example of an unprecedented level of growth for international air travel in Houston.

George Bush Intercontinental Airport is currently on pace to see more than 10 million international passengers in 2014, a number never  reached in the facility’s 45 year history.

10/23/2014

Global Air Cargo Volume to Double by 2033

Chicago, IL – Boeing has released a report projecting air cargo traffic to grow at an annual rate of 4.7 percent over the next 20 years, with global air freight traffic expected to more than double by 2033.

Major air cargo carriers were severely hit by the global financial crisis in 2008 and, despite a rebound in 2010, worldwide air cargo traffic has remained flat in recent years, the World Air Cargo Forecast said.

The market began to see growth again in second quarter of 2013 reaching 4.4 percent for the first seven months of 2014 compared to the same period a year earlier.

If this trend continues, 2014 will be the highest growth year for the air freight industry since 2010, according to the Boeing report.

“We see strong signs of a recovery as air freight traffic levels continue to strengthen after several years of stagnation,” said Randy Tinseth, Boeing’s Commercial Airplanes’ vice president of marketing.

The global air cargo market “is now growing at nearly the long-term rates,” he said in a statement.

The new forecast shows Asia-North America and Europe-Asia will continue to be the dominant world air cargo markets with the most traffic volume. Intra-Asia, domestic China and Asia-North America markets are expected to have the fastest growth rates over the next 20 years.

With increased air cargo traffic, the world freighter fleet is also expected to grow with deliveries of 840 new factory-built airplanes and 1,330 passenger-to-freighter conversion airplanes.

More than 52 percent of those deliveries are expected to replace retiring airplanes and the remainder used for fleet expansion.

10/17/2014

Norwegian Air Denied Temporary US Service Application

Washington, DC – The US Department of Transportation (DOT) has rejected a ‘procedural application’ from discount air carrier Norwegian Air International (NAI) to temporarily operate in the US.

The decision is seen as a victory for US air carriers and their unions, which had vocally opposed the application, but the DOT said that while the temporary bid had been rejected, the agency would continue to “review the extensive record and deliberate on the application for longer-term operating authority.”

According to aviation industry analysts, the final determination by DOT probably won’t be announced until after the November mid-term elections.

Norwegian Air’s campaign to enter the US market became a magnet for opposition, not only from domestic US air carriers and their employee unions, but from a broad coalition of lawmakers from both parties on Capitol Hill.

More than 40 senators and 100 House members signed letters expressing their “concerns” about the deal with the House recently passing an amendment to the 2014 Transportation, Housing and Urban Development (THUD) appropriations bill in an effort to derail the airline’s efforts.

The Air Line Pilots Association (ALPA), which has labeled NAI as “the wolf at the door,” praised the DOT’s decision, saying that, “The US Department of Transportation took an important stand for fair competition today by denying Norwegian Air International’s request for temporary authorization to fly to and from the United States.”

NAI – which is certified in Ireland and hires its pilots from Singapore – has said that the opposition to its application is protectionism, driven by the major airlines who control more than three-quarters of the highly profitable transatlantic market.

On the company’s existing US routes operated under a separate company called Norwegian Long Haul, tickets are, according to several sources, often more than $100 cheaper than the closest competitors’ fares.

NAI said in a statement it still expected to win final approval from DOT, but it was disappointed with the ruling.

“While we think it is unfortunate that DOT feels the need to further delay issuance of our permit, which has been pending now for over six months, Norwegian Air International stands behind its business — from its pilots and cabin crew to its affordable fare model to its desire to bring competition to the transatlantic market — and looks forward to receiving approval to operate without further delay,” said NAI CEO Asgeir Nyseth.

09/05/2014