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Voice of Indian Air Cargo Industry Vol 6 - Issue 3 | APRIL - JUNE 2015 www.acaainews.com Freight forwarding A challenging opportunity R K Srivastava draws up plans for AAI to boost revenue from cargo UPDATE 09 10 How air freight stations will change the air cargo industry SPECIAL REPORT 20 Martin Drew of Jet Airways on the launch of freighter operations in India EXCLUSIVE

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Page 1: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

Voice of Indian Air Cargo Industry

Vo l 6 - I ssue 3 | APRIL - JUNE 2015

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w.a

caai

new

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Freight forwarding

A challengingopportunity

R K Srivastava draws up plans for AAI to boost revenue from cargo

update

09 10 How air freight stations will change the air cargo industry

Special RepoRt

20 Martin Drew of Jet Airways on the launch of freighter operations in India

excluSive

Page 2: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

EVENTS

PublicaTioNS

The STAT Media Group was formed in 1986 to cater to the logistics industry in India and worldwide.

www.statmediagroup.com

Page 3: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

Dear Friends,

It is indeed a matter of great significance that the government of India has started

taking tremendous interest in uplifting the air cargo and logistics industries through

positive measures such as improvement of infrastructure, simplification of rules and

regulations, identifying systemic bottlenecks etc. The positive steps being taken by

the government since it assumed office in May 2014 indicate that it is very serious

and keen that India’s manufacturing and export sectors should be improved, and

that India should become a major player globally in these sectors. The Ministry

of Civil Aviation under the visionary leadership of Ashok Gajapathi Raju Pusapati

is playing a major role in this direction. The minister is personally visiting various

airports to acquaint himself with the problems of the stakeholders of the industry.

Not only this, he is very keen on improving the infrastructure, developing airport

hubs of world class standards, focussing on skill development in the industry. These

issues are the critical need of the hour, and it is therefore heartening that they are

being taken up seriously. Economic advisor for the Ministry of Civil Aviation, Renu

Singh Parmar, is also taking keen interest in the issues of the air cargo industry. She

has recently visited Mumbai for an on the spot study of the Air Cargo Complex in

the Mumbai Airport, which is major cargo

hub in the country. She held meetings

with the stakeholders to find solutions to

the various issues of this airport.

Ease of doing business will definitely

play a very positive role to make India a

major player in the manufacturing and

export industries. Growth in these areas

will increase the GDP and foreign exchange earnings for our country. It is indeed

encouraging that the government is paying close attention to these focus areas,

and we can expect bright prospects in the future. The global perception is changing

fast and tremendously. I am quite confident that the days are not far off when

Indian air cargo Industry will reach to its height and have bright future.

Emphasis must be laid on the creation of a common platform for the entire cargo

industry in order to jointly represent the common issues and problems of our

industry. This is also desired by the Ministry of Civil Aviation. Towards this end,

several meetings and seminars have taken place recently with the stakeholders, at

which issues of common interest have been discussed and deliberated at length.

This is a step in the right direction, and such endeavours must be continued. I am

confident that if the issues of all the stakeholders are taken up jointly, our Industry

will grow and its infrastructure will improve at par with the global standards.

Ministry of Commerce has recently announced the country’s trade policy, which, it

is hoped, will be beneficial to the cargo industry and will boost our Exim activities. I

am sure that with the growth of our economy and GDP there will ultimately be great

improvement and enhancement in our business which will ultimately create more

employment opportunities for the young generation.

S L Sharma President, ACAAI

S L SharmaPresident, Air Cargo Agents Association of India (ACAAI)

FRoM tHe PReSIDent'S DeSK

Government on board to support air cargo industry

Page 4: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

Contents

Cover StoryLogistics at the centre of changing times

previewPoPuLar air cargo show returns to Johannesburg

SpeCial reportnew trends suPPorting indian air cargo

With the rapid pace of change happening around the world in trade, commerce and everything else, India’s air cargo fraternity gathered in Shanghai for its annual convention to discuss debate, ideate and network around the convention theme of “Indian logistics in changing times”.

The city of Johannesburg will host AIR CARGO AFRICA, the most popular air cargo exhibition cum conference of the continent, again in February this year bolstering the African continent’s potential in the air freight industry.

2014 saw a new government at the centre with development as its core agenda. Make in India programme and the spread of e-commerce are seen as major trends pushing trade and these are bound to support India’s air cargo industry as well.

04

1410

VOL 6 - ISSUE 2 • APRIL- JUNE 2015

Page 5: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

SpeCial Featureair cargo yet to taP india’s fLower exPort

NEWS

Like pharma, there is a need to give impetus to flower transport by air. The air cargo fraternity needs to explore the untapped potential in the Indian floriculture industry which is likely to cross the INR 8,000-crore mark by 2015.

20

THE OFFICIAL MAGAZINE OFAIR CARGO AGENTS ASSOCIATION OF INDIA

(ACAAI)

aCaaI OFFICE BEarErS

PRESIDENTS L Sharma

VICE PRESIDENThemant Bhatia

SECRETaRy gENERalSunil arora

HON.TREaSURERT a Varghese

EDITORreji John

[email protected]

SPECIal CORRESPONDENTSCandice martins

[email protected]

Jasleen Kaur [email protected]

MaRKETINgVikas Khadtale

[email protected] Mobile: +91 9820397514

DESIgN CONSUlTaNTPrasad mohite

gRaPHIC DESIgNERrajesh Natrajan

DISCLaImErViews expressed in the magazine

are not of aCaaI

EDITOrIaL & aDmIN. OFFICE710, Vindhya Commercial Complex,

Sector 11, CBD Belapur, Navi Mumbai - 400 614 INDIa

Email: editorial@ acaainews.com [email protected]

www.acaainews.com

Printed by lingam Fine arts C-221, ghatkopar Industrial Estate

Behind R City Mall, ghatkopar (West) Mumbai – 400086 – INDIa

Published by Priyo Patra on behalf of STaT MEDIa gROUP

from 710, Vindya Commercial Complex Sector – 11, CBD Belapur

Navi Mumbai – 400614 – India

Ph No: 022 27578891 / 022 27570550

Editor: rEJI JOhN

a STAT MEDIA GROUP venture

23 NEW DGCA AppoiNtEDGovernment of India appointed M Sathiyavathy as the new Director General of Civil Aviation.

25 Air CANADA to rESumE SErviCE to iNDiAAir Canada will resume non stop service from Toronto to New Delhi starting in November this year.

23 viStArA rEADy to tAkE offSingapore Airlines’ Indian joint venture with Tata,Vistara, will start flying from January 9, 2015.

28 AAi GEtS A NEW ChAirmANRavindra Kumar Srivastava is appointed the new chairman of Airports Authority of India (AAI).

airport FoCuSsouth india’s cargo gateway

Positioning itself to be South India’s cargo gateway port, Bangalore International Airport is making substantial investment to develop a world class cargo infrastructure.

16 airline FoCuSgoing where customers are

Saudi Airlines Cargo operates 15 freighters and sells the belly-capacity on 145 passenger aircraft. The airline is now bullish on strengthening its presence in the Indian air cargo industry.

18

Page 6: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

APRIL - JUNE 2015 | www.acaainews.com4

CoVeR StoRY | Freight Forwarding

To match up with the growing bilateral ties and fluctuating EXIM trade, the freight forwarder’s job is not any easy task. Though, they have been working hard to match international standards, they are habituated to fighting infrastructure bottlenecks and honouring commitments to customers. But now with better government intervention and technology adaption opportunities are on the rise.

JASLeen KAur

A challengingopportunity

Page 7: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

APRIL - JUNE 2015| www.acaainews.com 5

The emphasis

placed by the new

government in India

on development

and good governance has

created a new opportunity

to reinvigorate bilateral ties

and enhance cooperation.

Prime Minister Narendra

Modi’s visit to different

nations from Asian countries

to the US to now planned

visit to Europe and the new

initiatives like ‘Make in India’,

‘Clean India’, etc., have

opened up new avenues.

However, unfortunately, as

of now, according to the

ministry of commerce and

industry, the trade deficit for

April-February, 2014-15 was

estimated at USD 125220.94

million which was higher

than the deficit of USD

124844.53 million during

April-February, 2013-14. The

reasons could be economic

meltdown and pending free

trade agreements and some

other economic and political

disturbances.

To match up with the

changing trends in the

bilateral ties and fluctuat-

ing EXIM trade, the freight

forwarder’s job is not any

easy task as it used to be,

simply moving cargo on time

from A to B. However, there is

an immense scope. Recently

a report named ‘freight for-

warding market in India 2015’

stated that India is expected

to witness considerable

growth in freight market

provided freight companies

diversify their business to

other logistic segments. The

Indian freight market is rap-

idly being aided by improved

warehousing infrastructure

and growth in containerized

cargo, which necessitates

a robust freight network.

Amongst the segments, air

and sea freight together

contribute maximum to the

market in terms of value.

Manish Saigal, Managing

Director at Alvarez & Mar-

sal - Leader for Strategy and

M&A/ PE consulting, said, “In

today’s fast-moving business

environment, many shippers

rely on forwarders as key

building blocks in creating

and implementing a logistics

programme pertaining to

Page 8: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

APRIL - JUNE 2015 | www.acaainews.com6

their ‘special’ demands. In a

global scenario, customers

benchmark the services in

India against the best play-

ers in the world. Today, the

customer expects delivery

on the same day the cargo

is offloaded from a ship or

aircraft. They are looking for

scheduled hinterland connec-

tivity from ports and airports

matching with the arrival

time of a vessel or aircraft.

They demand state-of-the-art

warehousing and distribution

through bonded warehouse,”

adding, “Time being a critical

factor; they demand IT-en-

abled real time information

systems. Freight forwarders

have to match the best global

standards to retain their busi-

ness in India.”

During a trade show,

Shantanu Bhadkamkar, im-

mediate past chairman of the

Federation of Freight Forward-

ers Association said that the

growing Indian marketplace

has a huge demand for

technological inputs in the lo-

gistics sector which represents

a runway to India’s USD385

billion EXIM trade by 2015.

With new security regula-

tions, technology tools, and

infrastructure improvements,

forwarders today need to pull

up their socks to meet a full

range of logistics needs with

an innovative approach.

Impact of eXIM tradeCorresponding to the

recently announced economic

survey 2014-15, it has been

stated that India's export-

import trade has been slightly

affected due to weakened

demand in key developed

markets of Europe and the US.

However, if handled with a

positive attitude, this oppor-

tunity can herald a scope for

value creation.

Samir J Shah, owner, JBS

Group of Companies, said,

“Economic challenges in

the European Union, po-

“Economic challenges in the European Union, political instability and unrest across multiple areas of the globe, and a series of natural disasters have highlighted the often fragile nature of the freight forwarding and logistics business and the industry’s customer environment.”

“The overall global economic scenario has been grim and that surely has had an effect on the overall trade."

Samir J ShahJBS Group of Companies

BiJu ThomaSSevenseas Global Express Logistics

CoVeR StoRY | Freight Forwarding

litical instability and unrest

across multiple areas of the

globe, and a series of natural

disasters have highlighted

the often fragile nature of the

freight forwarding and logis-

tics business and the indus-

try’s customer environment.

However, on the positive side,

rising demand is being expe-

rienced for advanced logistics

capabilities and industry-

specific solutions, especially

in emerging markets. The

increasing number of assem-

bly plants in several markets,

including Turkey, Mexico

and Thailand has positively

pushed up the dynamics of

the logistics industry.”

Yashpal Sharma, Director,

Skyways, says, “Freight for-

warding is directly impacted

by the global business sce-

nario. The current slowdown

is negatively affecting most

of the forwarding companies

across the world, including

India. The companies who ac-

tually stay with their strengths

and do value additions will

continue to be outperform-

ers and the rest will have to

work harder to keep their

head above water.” Another

veteran freight forwarder,

Cyrus Katgara, Partner, Jeena

& Co is of the opinion that the

freight forwarding industry

will survive only through

value creation. “We must all

realise that the present and

the future is for the intelligent

only. Deep pockets and rela-

tionship management would

take a back seat once thinking

freight forwarders increase in

number. Value creation will

happen in finding innova-

tive solutions which are time

bound, cost reducing, tech-

nology intensive and result

finding through detailing.”

Biju Thomas, Managing

Director, Sevenseas Global

Express Logistics, shared,

“The overall global economic

scenario has been grim and

that surely has had an effect

on the overall trade. There is a

Page 9: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

APRIL - JUNE 2015| www.acaainews.com 7

marginal improvement lately

and there is still a lot of hope

based on predictions being

made by the industry experts.

During such a trend, the ideal

solution for an organization to

sustain itself is through diver-

sification and value addition

to the existing product.”

Customs & excise policiesImprovements in the cus-

toms and excise policies ben-

efits importers and exporters

and consequently, smoothens

the working of freight forward-

ing agents. Exports from and

imports into India, need a lot

of regulatory requirements to

be complied with at various

stages. Yet if properly planned,

exports and imports can utilize

a lot of benefits that are avail-

able under various provisions

of the policy. Self-Assessment,

introduced in April 2011, is

expected to usher in a new era

of trust based customs-trade

partnership, leading to greater

facilitation of compliant trad-

ers. Therefore, it is important

that the trade take its respon-

sibility for making correct

self-assessment seriously.

Pertaining to this, Shah averred,

“EDI and self assessment are

great initiatives and can result

in wonderful streamlining of

the cargo movement through

customs and excise. However,

implementation of the same

remains the biggest roadblock.

The ground reality is very dif-

ferent than what is said. Capac-

ity building and a change of

mindset is what the depart-

ments need to work on fast.”

The Customs department

as facilitator has emerged in

India and they have facilitated

the growth of EXIM Trade by

the timely introduction of Cus-

toms EDI System, Ice gate and

RMS System. “The Customs

EDI System has negated the

effect of various constraints

of infrastructure. The trade

facilitation meet of Customs

to co-ordinate with all players

has brought the players in

“We must all realise that the present and the future is for the intelligent only. Deep pockets and relationship management would take a back seat once thinking freight forwarders increase in number."

CyruS KaTgaraJeena & Co

the Industry to resolve issues

amicably. The proactive issue

of trade facilitation circulars

by customs has increased

the confidence level of EXIM

Trade and Freight Forward-

ing Industry with regard to

Customs Policy and Proce-

dures. The major road blocks

faced by the Industry are

due to the fragmented and

disintegrated structure of the

logistic Industry. There is need

for an integral approach of all

players to work for the EXIM

Industry to whom they serve,”

Sharma remarked.

Infrastructure concernsThough a lot of initiatives

have been taken for infra-

structure, the major concern

of the freight forwarding

community is connectivity to

the terminals, airports, freight

stations, etc. The freight for-

warding industry has to face

the challenge of inadequacy

of infrastructure when their

customers demand a commit-

ted delivery time for cargo.

The impediments of infra-

structure are the root cause

of bottlenecks, delays, high

cargo dwell time, increased

transaction costs, and overall

escalation of logistics costs.

Connectivity to terminals,

airports, container freight

stations, etc., according to

Thomas, “is surely a concern

which seems to be growing

rather than getting corrected.

A good case in review was

the congestion at Chennai

and Mumbai ports which

remained an eyesore for the

global industry with fancy

photographs of the mayhem

being published. At a point

when India is being projected

as a market which is looked

at and predicted to overturn

China, such bottlenecks dis-

suade business transactions to

a great extent.” On the other

hand, Shah feels that freight

forwarding issues can be re-

solved by an all round involve-

“The major road blocks faced by the Industry are due to the fragmented and disintegrated structure of the logistic Industry. There is need for an integral approach of all players to work for the EXIM Industry to whom they serve"

yaShpal SharmaSkyways

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CoVeR StoRY | Freight Forwarding

ment. “All stakeholders need

to be continually involved and

work harmonically with each

other. Users are always in the

best position to ascertain and

judge roadblocks as well as

anticipate future problems. A

continual dialogue amongst

all stakeholders backed with

immediate changes in all pos-

sible functions is the need of

the day.”

Sharma is of a clear opinion

that sheer implementation

of infrastructure is not good

enough. It is the people who

will run these that will make

a big difference. “We can see

even with better infrastruc-

ture the processes at these

terminals are not in sync and

thus the trade is not benefit-

ting from the improvement in

infrastructure. There is also a

need to address infrastructure

issues at some of the ports and

airports of the country. Even

the road connectivity is not

adequate. The last mile move-

ment always happens through

road, so this aspect must be

addressed and improved by

the relevant authorities.”

Technology adoptionSeveral freight forwarding

companies invest in latest

software solutions so as to en-

hance their freight operations.

The IT industry has made

a lot of advancements and

is adopting latest software

solutions that are beneficial

for businesses across different

industry verticals. The freight

forwarder software essen-

tially provides the best and

lucrative solutions for supply

chain and logistic opera-

tions. Small, medium or large

freight forwarding companies

can ideally use the software

with web tracking feature to

obtain better visibility of ship-

ment and orders.

Sharma mentions that

there are only two things

that separate the company’s

growth after a level and they

are its team and IT systems.

“Companies who constantly

invest in them will outperform

their peers in the market.

Just to repeat, the key word

is ‘constantly’. Just invest-

ing once will not be enough.

Technology and intelligence

change every day now.”

“In today’s fast-moving business environment, many shippers rely on forwarders as key building blocks in creating and implementing a logistics programme pertaining to their ‘special’ demands. They benchmark the services in India against the best players in the world.”

maniSh SaigalAlvarez & Marsal

Technology is a proven

way to improve performance

and efficiency. It meets with

most requirements of quick

solutions, believes Shah,

adding, “However, software

cannot replace human be-

ings. While I welcome all the

investments and innovation

in software solutions, I feel

equal importance, if not more,

in terms of time and money

should be spent on the people

who run the systems. There

are a number of installations

where the software is not

used as proposed and only to

finish routine jobs. Replicating

manual processes through the

computer needs to be im-

mediately dropped.” Thomas

comments, “Major companies

are investing large sums of

money in customizing and

upgrading their IT capability.

Many others have in house

software development teams.

It is all about tracking, docu-

ment uploading, real time

status and everything that

makes the system replace the

individual. For the logistics

service provider it becomes a

tool that gives them real time

information at the click of a

mouse and enables tracking

status and information.”

Opportunities aheadThe silver lining is that the

freight forwarding industry,

especially related to the EXIM

trade, is extensively affected

due to poor infrastructure and

other issues. However, once an

integrated approach is adopted,

the streamlining of the supply

chain process, in terms of cost,

route and customs, will become

effective. Freight forwarding

companies are diversifying into

the fast-growing logistics

business and are diverging from

their traditional activities to

adapt into a new avatar.

Opportunities are galore and it’s

time to make the most of being

the “travel agents” of the cargo

industry.

APRIL - JUNE 2015 | www.acaainews.com8

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APRIL - JUNE 2015| www.acaainews.com 9

UPDAte | airport authority oF india

In order to cater to the

growth of air cargo

industry, the Airports

Authority of India (AAI)

has taken up extension of

the existing cargo terminals

with the state-of-the-art

technology apart from

introducing automation at

its airports. R K Srivastava,

who took over the seat

merely three months back,

believes that there has been

tremendous growth of air

cargo at metro/non-metro

airports with considerable

scope for improvement

in the basic infrastructure

to tap the potential. This

provides an opportunity for

India to be a major cargo

transshipment centre.

Owning and maintain-

ing 125 airports compris-

ing 68 operational airports

and 26 civil enclaves, the

authority has been making

profits since its inception

and posted net profits of Rs

735 crore and Rs 796 crore

during 2012-13 and 2013-14,

respectively. With more and

more high-density traffic air-

ports going into the hands

of private players, AAI is

now looking at focusing on

the cargo segment to boost

its revenues.

As part of this, AAI plans

to optimally utilise its old

and un-utilised domestic

passenger terminals by

converting them into cargo

facilities after carrying out

the necessary modifica-

tions. “AAI is venturing into

the new area of domestic

cargo operations with an

objective to create the basic

infrastructure at its airports

which have potential for air

cargo growth,” Srivastava

said.

There has been tremen-

dous growth of air cargo at

metro/non-metro airports

with considerable scope for

improvement in the basic

infrastructure to tap the

potential, he said, adding

that "domestic cargo grew

by 10 per cent and interna-

tional by five per cent last

year". The chairman believes

that the potential growth in

air cargo movement across

the country can be tapped

if basic cargo facilities are

created at second tier cities

which can also work on hub

and spoke model

AAI has identified 24

domestic airports across

five regions, including three

civil enclaves, to develop

integrated facilities.

Such facilities have al-

ready commenced at three

airports - Jaipur, Lucknow

and Coimbatore. It would

be started within a couple

of years at the remain-

ing 21 airports. There are

plans to replicate the same

model at other airports as

well besides the 24 which

have been identified going

forward. At present, AAI

manages international air

cargo terminals at the Chen-

nai, Kolkata, Coimbatore,

Amritsar, Guwahati, Luc-

know, Trichy and Mangalore

airports.

Srivastava also held a

meeting with the cargo/

express industry stakehold-

ers. "There are many issues

relating to different sectors.

We have identified them

and discussed them in our

efforts to resolve these

issues. Our role is to provide

infrastructure and facilitate

business," he said. The

chairman finds opportuni-

ties in growth of e-com-

merce, infrastructure,

development of smart cities

and ‘Make in India’ project.

“Projections indicate that

Indian carriers will double

their fleet size by 2020. This

will result in significant

growth of cargo traffic. AAI

is gearing up to meet this

demand,” Srivastava

concluded.

AAI leaps ahead in air cargoIn his zeal to fulfill his dream of creating the best airport infrastructure in India, R K Srivastava, the new chairman of Airports Authority of India (AAI), has been working towards bringing a perceivable change in the ‘skyline’ of Indian civil aviation. With the support of Ministry of Civil Aviation, AAI has taken initiatives to boost air cargo operations which hog headlines from time to time.

JASLeen KAur

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APRIL - JUNE 2015 | www.acaainews.com10

SPeCIAl RePoRt | aFs

Cynosure of all eyesAir Freight stations

The intervention of the new government to improve the air cargo infrastructure by bringing new policy guidelines to set up air freight stations (AFS) has brought a reason for air cargo stakeholders to smile. They are affirmative that once it is fully implemented, AFS will substantially improve the air cargo infrastructure in India.

JASLeen KAur

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APRIL - JUNE 2015| www.acaainews.com 11

In December 2014, an

announcement was made by

Hyderabad Menzies Air Cargo,

a joint venture company

between GMR Hyderabad

International Airport Limited

and London-based Menzies

Aviation Plc, to start an air

freight station (AFS) in Chennai.

The AFS for which the idea

was conceptualised sometime

seven years ago, came into

effect when it was planned

in association with Central

Warehousing Corporation

(CWC), which was one of the

first companies to get an AFS

licence. The Hyderabad airport

will extend services to its airline

customers by expanding their

hinterland to Chennai, enabling

local trade members to route

their shipment through the

Hyderabad airport. Chennai is

second location after Nagpur

for Hyderabad Menzies to

start the AFS service. This

partnership has set an example

that this is the only way to go

forward. ICDs/CFSs or off airport

locations should be flexible

with no restriction to bonded

truckers.

By the time, this news in the

industry showed a window of

opportunity to strengthen the

airport infrastructure; the new

government led by Prime Min-

ister Narendra Modi brought

a New Year gift for air cargo

fraternity, when in January

2015, Ministry of Civil Aviation

came up with guidelines to set

up AFS across the country. “The

initiative of AFS will create an

enabling environment for pro-

moting international air cargo

operations by reaching out to

hinterland regions of the coun-

try besides de-congesting the

congested air cargo terminals

in some gateway international

airports that face high dwell

time,” according to MoCA.

ACAAI’s firm beliefS L Sharma, President, Air

Cargo Agents Association of

India, said, “With the emphasis

on development of cargo infra-

structure, air cargo stakehold-

ers are optimistic. As a part of

infrastructure development,

the government has taken a

decision to set up AFS in 10

cities. These AFSs, to be built

by CWC will ease the supply

of foodgrain.” Today, CWC is

responsible for three air cargo

complexes at international

airports besides the manage-

ment of the cargo warehouse

at Indira Gandhi International

Airport in New Delhi. “However,

it remains to be seen whether

these CWC AFSs are completed

and commissioned in time,”

he stated. Earlier attempts at

starting AFSs have failed or at

best remained half-hearted at-

tempts. In fact, air cargo stake-

holders have been demanding

AFSs at international airports for

quite some time.

ACAAI is confident that the

air cargo and logistics industries

will derive tremendous benefits

when more number of AFSs

become operational, Sharma

added confidently. AFSs will

enable exporters, importers

and the logistics and air cargo

industries to function in greater

harmony with one another. The

customs, security and other

regulators’ formalities can be

completed at the AFS, and the

cleared goods can be speedily

transported to the airport in

the case of export goods, and

to the consignee’s premises in

the case of import goods. It is

expected that the facility will

be able to cope with the high

degree of vehicular move-

ments, thereby, facilitating the

speedy offloading and loading

of export and import goods.

Coordinated initiative - finally arrived

Venkata Reddy, CEO,

Menzies Bobba Bangalore, said,

“The air freight industry has

largely been neglected vis-vis

the focus on the new terminals

and airport facilities on the

passenger front. The most sig-

“The most important thing for success of air freight stations would be seamless co-ordination among all its stakeholders such as airlines, con-sol agent, customs brokers.”

amBer DuBeyKPMG

“By virtue of their strategic location, AFS will become a median between the hinterland and the airports/seaports. Thus, exporters and importers will be able to derive the dual benefits of speed and ease of access to such facilities.”

S l SharmaACAAI President

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nificant hurdle to growth and

efficiency, however, remains

our perennially inadequate

and inefficient airport infra-

structure as also the absence

of any coordinated initiative to

effect the required changes,

improvements, streamlining,

rationalisation and productiv-

ity enhancements so critically

required. Working group with

representation from the air

freight industry has been set up

by the Ministry of Civil Aviation

to look into the various aspects

of the industry. There is an

urgent need to develop more

air freight stations and cargo

villages across India.”

Holistic approach key to world-class infra

Thinking about the future,

one of the veteran freight for-

warders Cyrus Katgara, Partner,

Jeena & Company, said, “To

create a world-class infrastruc-

ture, there is a need for holistic

approach. Railways focus was

on passenger movement while

the National Highways Author-

ity of India (NHAI is responsible

for major highways in the

country) and the ports do not

enter into pre-planning con-

sultations. Therefore, there is a

need to create a new ministry.

A dedicated ministry can en-

sure a world class infrastructure

across all modes and this will

also bring in a seamless supply

chain.”

AFS - key to all problems“Indian air cargo industry has

not matured to world standards

and cargo unitisation happens

only at airports. Only loose

cargo is shifted to airports. In

fact, Indian airports stand out in

the number of loose packages

handled when compared to the

major cargo hubs in Asia and

other parts of the world. In such

a situation, airports must remain

only as throughput areas if

they are to function efficiently,”

averred Amber Dubey, Partner,

KPMG. Suggesting AFS as a solu-

"The most significant hurdle to growth and efficiency, however, remains our perennially inadequate and inefficient airport infrastructure as also the absence of any coordinated initiative to effect the required changes.”

VenKaTa reDDyMenzies Bobba Bangalore

“There is a need to create a new min-istry. A dedicated ministry can ensure a world class infra-structure across all modes and this will also bring in a seam-less supply chain.”

CyruS KaTgaraJeena & Company

tion, he said, “the ideal solution

for all this would be AFS where

loose cargo is processed, uni-

tised, and delivered to airports

for uplift, and in the reverse flow

unitised imports are shifted to

AFS, devanned and delivered.”

ease in cargo clearanceAt present, the infrastructure

and approach roads at several

major airports and sea ports

are grossly inadequate, causing

extensive delays. Consequently,

the dwell time at these ports is

very high, which causes delays

in the prompt dispatch of ex-

port goods, and timely receipt

of import goods by the end

users. The transaction costs also

increase due to such delays,

thereby making exports from

India uncompetitive vis-à-vis

exports from other countries.

AFSs have the scope and

a unique opportunity to con-

tribute meaningfully towards

enhancing and improving

this situation. It would defi-

nitely decongest the saturated

facilities and infrastructure at

various airports. As per the new

policy guidelines all export and

import cargo clearance includ-

ing customs related activities

like assessment, examination,

payment of duties etc. would

be provided at the AFS, as is

done in any other custom

station. Besides the customs

authorities, other cross-border

regulatory agencies such as

plant quarantine office, drug

controller’s office, etc would

also be accommodated by the

respective AFS enterprise in

the same premises. This may

include for example, space for

establishment of laboratory for

immediate inspection and the

area should be well lit.

“This is an urgent require-

ment, as the air cargo and

logistics industries are currently

undergoing unbearable stress

and strain due to these factors.

By virtue of their strategic loca-

tion, AFS will become a median

between the hinterland, where

many manufacturing hubs are

located, and the airports/sea-

ports. Thus, the exporters and

importers will be able to derive

the dual benefits of speed and

SPeCIAl RePoRt | aFs

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ease of access to such facilities,”

added Sharma.

“To keep pace with the

fast changing pattern of cargo

handling in air cargo industry,

the essence is speedy delivery.

However, the importance of

setting up of AFS throughout

the country has long been felt

intensely and we in Air Cargo

Forum of India (ACFI) have sug-

gested our views in this regard

to the Government in formation

of AFS,” said Katgara, who is

also secretary at ACFI.

The prime object of setting

up AFS is to de-congest the air

cargo terminal at the gateway

airports. This will facilitate expe-

ditious handling of export and

import cargo and will improve

efficiency of cargo handling in

decongesting the customs and

forwarding activities. Thus the

cargo will be brought to the air

cargo terminal in a ‘Ready for

Cargo’ condition. According

to Dubey from KPMG, based

on the faster clearance, the

dispatch of cargo from AFS to

air cargo terminal at the airport

can be planned in advance

and space can accordingly

be booked with the airlines

well in advance. “This will also

help the airlines to plan their

space allotment in time and

cargo can be loaded promptly

on arrival at the loading bays

without any further loss of time.

The most important thing for

success of AFS would be seam-

less co-ordination among all its

stakeholders such as airlines,

consol agent, customs brokers,

etc,” he suggested.

Moving on, Pradeep Panick-

er, President, Air Cargo Forum

of India and Chief Commercial

Officer, Delhi International Air-

port Ltd (DIAL) suggested few

recommendations in the policy

that are important to make AFS

a business viable product:

Ó Only airport operator

should be allowed to operate

an AFS as a first preference to

ensure last mile connectivity

and consistent service levels.

Ó The security screening of

cargo should happen at airport

only and not at the AFS to

secure freight at last port.

Ó Existing ICD/CFS to accom-

up an AFS and ICD/CFS may

not have readily this much area

available initially.

Ó Cargo handling equipment

deployment should be based

on operational requirements.

Ó In the case of airport opera-

tor setting up AFS, approvals

can be waived in view of their

existing air cargo experience.

Echoing similar concerns

and presenting airlines’ view-

point, Vipan Jain, Regional

Manager Logistics, South

Asia & Middle East, Lufthansa

Cargo considers AFS move as

a welcome step and can be a

turning point for the industry,

if implemented in full. “In India,

we have very strong regulatory

requirements which may not

encourage new AFS set-up.

As number of manual pro-

cesses and allied agencies are

involved in the whole export

and import process, I feel it will

be quite difficult to manage

the facility within limited area

which will ultimately cost huge

investment for instance land,

building, equipment, security,

electricity, running cost etc. As a

first step, the existing ICD or CFS

should be promoted to have

AFS facility and later new inde-

pendent facility of AFS should

be considered.”

Success story has begunIndia seemingly has all the

ingredients to be one of the

world’s great air cargo centers.

Rapid growth of international

trade, a huge manufacturing

engine and a population of

more than 1.2 billion all bode

well for the industry. It was

government support and a

healthy communication

between government and air

cargo stakeholders was absent.

With the interest shown by the

new government towards devel-

opment of air freight infrastruc-

ture and a smile on the face of

air cargo fraternity, will set a

bright future for air cargo

industry in India in the way of air

freight stations. Indeed!

“Only airport operator should be allowed to operate an AFS as a first preference to ensure last mile connectivity and consistent service levels."

praDeep paniCKerDIAL & ACFI

"As a first step, the existing ICDs and CFSs should be promoted to have AFS facility and later new independent facility of AFS should be considered”

Vipan JainLufthansa Cargo

modate AFS on request from

airport operator

Ó Area for AFS should be

decided based on market forces

and business requirement. 1000

sq m for export and import

would add to the cost of setting

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ReVIew | air cargo africa 2015

The third iteration of Air Cargo Africa impelled the African continents ambition to be a leader in the global economy where the air freight industry would set the stage towards achieving this goal.

Investing in theAfrica advantage

Arecord number of

visitors attended

the third biennial

international air

logistics conference and

exhibition, AIR CARGO AFRICA

2015, held in Johannesburg,

South Africa from 25 to 27

February. The event in the

course of its three day duration

attracted 527 delegates and 2,915

trade visitors. The exhibition

featured 80 exhibitors, with 29

from across Africa and 32 from

further afield internationally.

The event garnered a great

degree of interest from local and

international visitors.

The executive mayor of

the City of Ekurhuleni, Mondli

Gungubele, opened the

event, stating that the City

of Ekurhuleni region had

become the aviation, logistics

and manufacturing hub of

Africa while adding that OR

Tambo International Airport

was strategically positioned as

a gateway to Africa. This was

keeping in line with the theme

of, ‘Air Cargo à Africa’s path to

sustainable growth’.

Making a strong point

on the continent’s growth,

Nico Bezuidenhout, acting

CEO, South African Airways

said, “As for Africa, growth is

imminent and opportunities

are inevitable. Intra-Africa trade

is a huge opportunity. There is

ample scope to increase trade.”

Key topics raised during

panel discussions and debates

highlighted that trade within

Africa itself must be addressed

to garner better growth

opportunities; an open trade

environment within Africa

would allow air cargo to act as

a catalyst of growth throughout

the continent. There was also

a pertinent need for greater

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APRIL - JUNE 2015| www.acaainews.com 15

transparency and cohesion

across the entire air cargo supply

chain.“With an expected six

percent increase in GDP growth

by 2020, there is a lot of potential

for growth in the continent,”

said Fitsum Abady, Managing

Director, Ethiopian Cargo Services

on a confident note. On the

other hand, Abady pointed out

to a number of hurdles which

come in the way of Africa’s rise.

Being critical on the political

situation, Markus Muecke, head

of airfreight, Panalpina strongly

affirmed that “red tape has to

go from Africa.” Dealing with

red tape within African countries

presents a large issue, which

strangles growth.

Barry Nassberg, Group COO,

Worldwide Flight Services

said, “We see growth in Asia-

Africa trade and investments

are dominated by countries

like China and India.” While

Africa is a somewhat closed

continent as far as investment

is concerned, Nassberg believes

there is a desire for growth and

the opportunity exists there.

How far are we from the near

perfect supply chain when it

comes to moving perishables by

air? That was the central question

in a round table discussion

organised by Amsterdam Airport

Schiphol on the inaugural

day of the event. Different

stakeholders of the air cargo

value chain raised the challenges

and shortfalls in the perishable

transportation particularly with

reference to flowers shipped

from African markets to European

destinations.

The second day of the

event saw some lively debates

featuring panel members

representing Emirates, South

African Airways (SAA), the

National Air Cargo Group,

DHL Global Forwarding, OR

Tambo International Airport and

the United Nations, focused

on beating infrastructure

challenges within air cargo and

strengthening the supply chain.

The intra-African cargo market

is one of the fastest growing

markets currently, with increasing

demand for perishables and

consumer goods like smart

phones in particular.

A second shipper-centric

panel discussion was on oil and

gas industry which is crucial

to many African economies.

With the oil fields, mines

and plants moving to more

remote locations, the demand

to deliver material is getting

more complex for those in the

oil and gas supply chain. A

growing business for air freight,

the industry is trying to play

catch up with sea freight, a

preferred mode of transport

for oil and gas equipment. The

panel discussion on oil and gas

shippers hosted by Liege Airport

focussed on key concerns of

shippers and what airports and

airlines have to offer.

Moderating the last panel

discussion of the three-day

event Boeing Commercial

Airplanes’ regional director for

market analysis, Tom Crabtree,

explained that the rapidly

expanding shares of these

markets are presently gauged

at 14.4 percent for the Middle

East and 12.9 percent market

share for Asia.

In recent years, Africa has

seen major interests from India

in terms of investments and

also air cargo growth. “There is

growth for specialised products

such as pharmaceuticals into

Africa. But the challenge lies

in carriers with less direct

connections into Africa,” said

Manoj Singh, vice president

and head, cargo, Mumbai

International Airport.

Panelists agreed that Asian

imports to the continent will be

the principle driver for growth

of African trade with Asia, and

that e-commerce and the rising

demand for consumer goods,

particularly in India and China,

will boost air trade growth in

the Asia-to-Africa direction.

A major highlight of the

event was the award night on

the second day. The awards

were given away to industry

players for their excellence in

various sectors of the air cargo

industry in style amidst an

evening of fun, entertainment

and African culture.

The STAT Trade Times

Lifetime Achievement Award

went to Desmond Vertannes,

the much-liked and well-

respected previous global head

of cargo at IATA. “A life time

achievement award is given to

someone because the person

has made an impact in the

industry that he or she

represents and the person has a

substantial number of years of

experience. And in this case Des

has both these,” said Glyn

Hughes, Glyn Hughes, global

head of cargo, IATA, who

joined R K Patra, editor-in-chief,

STAT Media Group, publisher of

Indian Transport and Logistics

News, on stage to honour

Vertannes.

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FoCUS | airport

Sharjah airport

Middle East region

is the most impor-

tant region when

it comes to the air

cargo fraternity. Be it airports of

the region or airlines, they serve

a dominant role in the air cargo

sector. One such airport that has

scripted a success story in the

cargo world is the Sharjah Inter-

national airport. Serving the emir-

ate of Sharjah in the United Arab

Emirates, the airport is considered

as a key cargo hub in the Middle

East region with five cargo

terminals, catering to freight

demand not only of the region

but from around the world. It

serves around 100 destinations in

the Middle East, North Africa, the

Indian sub-continent, Central Asia

and Europe.

Growth with hiccupsThough the Sharjah airport

is an important airfreight

handler, bad days have

adverse effects on everyone

and the airport is no

exception. The Head of cargo

from the Sharjah airport, who

prefers to remain anonymous,

said, “With the worldly trend,

Sharjah is also experiencing

a drop of tonnage volume

to a tune of six to seven per

cent month on month. This

could be for many reasons of

which the economic down

trend experienced from

November 2014 are yet to be

seen picking up. Air cargo

volumes in our view have

been suffering since the last

year.”

Envisages largest freight share

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The largest freight airport in UAE, Sharjah airport has faced a drop in air cargo volumes due to an economic downtrend. However, hopes are high and head of cargo division strongly feels that the airport has a capacity to manage over 700,000 tonnes a year. He talks about plans for 2015, destinations, commodities, competition and much more.

JASLeen KAur

Sharjah has a capacity to

manage over 700,000 tonnes

a year. The airport handled

314,424 tonnes of cargo in

2012, 262,671 tonnes in 2013

and 237,250 in 2014. This is

surely a positive sign, he said,

“while we accommodate our

growth and new customers

who are wanting to use

Sharjah.”

expanding destinations, eyeing Africa

Though the air cargo volumes

have suffered, the airport’s

optimism has not been affected

and they are quite upbeat with

their expansion plans. “Sharjah

actively serves Europe, Africa,

Indian subcontinents and Middle

East wherein the majority of the

volumes are moved to airports

within these countries. Africa

has been witnessing some

tremendous growth and we are

happy to be part of the African

business serving our customers

through Sharjah operations,

opening new destinations within

Africa,” the senior official said.

India extended to South

Asia always played an active

role promoting traffic over

Middle East both by Air to Air

and Sea-Air. “We as Sharjah do

share a part of this through

the hub and spoke operation

of Air Arabia and few charters

who actively promote this

concept. This in our view

will continue through the

passenger flight capacity from

Indian Subcontinent to Middle

East serving as transhipment to

other destinations.”

Proud to handle all commodities

Sharjah Airport prides itself

in managing all commodity

through its facility of which

perishable for the local market

consumption through its hub

carrier Air Arabia plays a major

role. Pharma is a growing

market for many airports,

Sharjah being one of them.

“Our present facility do cater

to the requirement of our

customers while an in depth

study is being conducted

aligning both our process

and facility to its extended

demand,” he added.

Infrastructure development

Infrastructure is a key to

growth of any airport and Shar-

jah airport has invested a lot for

infrastructural development. In

the recent past, it has invested

in different modern cargo

equipment’s and infrastructure

e.g. ULD X-ray machine, Truck

Dock, Freezers / Chillers, special

dangerous goods location

and RA3 warehouse among

others. “We have a fleet of over

2,000 modern technology GSE

equipment’s including a fleet of

Trepel Champ 350 main deck

hi-loaders, with 35 tonne lifting

capacity adding value while we

serve our customers,” shared

the head from cargo division.

Smart strategy in the competitive environment

According to IATA, the

Middle East is forecast to be the

fastest growing region in air

cargo market. To enhance its

competitiveness, Sharjah airport

is aiming to improve quality

and widen the services it

offers. “Middle East has always

been a Transhipment business

projected market while local

consumptions and demand are

less when compared. With the

Expat working crowd almost

at each of the Middle East

locations or most of all of them

served through the national

carrier do have a good level of

cargo capacity promoting local

terminating and transhipment

cargo,” the senior official stated.

In March 2014, the airport

started e-AWB and e-Clearance

which is a part of the global

initiative to modernize its

processes and keep abreast in

today’s ever changing business

world. “We always aim to give

the best quality of service

to our customers. Speed,

efficiency, safety, reliability and

cost effectiveness are Sharjah’s

USP’s that our customers enjoys.

We are flexible and responsive

to their needs and we make

every effort to exceed their

expectations,” he said.

Plans for 2015The year 2015 seems to be

challenging and economic

downtrend is expected to be

continue, which will affect the

business. However, the hopes

are highs. “2015 will be a

challenging year for all with

the downtrend expected while

we are hoping our processes

and service will attract

customers while they choose

preferred airport,” he

concluded.

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FoCUS | airline

India is an opportunities hub

JASLeen KAur

Lufthansa Cargo has had

a very long association

with customers in the

Indian air cargo industry

ever since its launch in 1959.

The airline further grew with

its first freighter operations in

the 1970s. Lufthansa Cargo

is today offering 59 weekly

flights between India and

Europe including the services

of Lufthansa Passenger Airlines

and Austrian Airlines.

German all cargo carrier,

Lufthansa Cargo, posted an

operating profit of EUR 100

million in 2014, a significant

improvement over the EUR

79 million in 2013. The 2014

result stood out from the

competition and was achieved

in a challenging market

environment. The airline is

continuing to systematically

implement its Lufthansa Cargo

2020 future programme and

expects to raise earnings even

higher in the current year.

The latest success story

of Lufthansa Cargo in India

was scripted when the carrier

greeted India with ‘Namaste’.

The MD-11F with registration

D-ALCJ was the star of the

show at Indira Gandhi Airport

in Delhi recently, when the

freighter was launched. It was

named, ‘Namaste India’ as part

of a lavish ceremony attended

by Alexis von Hoensbroech,

For Lufthansa Cargo,

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APRIL - JUNE 2015| www.acaainews.com 19

Could you highlight Lufthansa Cargo’s

operational profile in India? How many

freighters have you in service to and

out of India? What is the total capacity

that you lift?

We are quite committed to the Indian market

and have a very high focus. Our presence

at all the six major airports in India which

covers nearly 90 per cent of the international

freight clearly indicates our interest. We

operate on a weekly basis, 13 cargo flights

out of India beside freighter services from

our joint venture partner flights of Aerologic.

These flights are turnaround as well as shared

between two stations. Our current freighter

fleet covers Bangalore, Mumbai, Hyderabad

and Chennai. Our total export uplift from India

is approx 55,000 tonnes per annum on all

passenger and cargo flights.

recently, the airline launched A380 in

India. Have you increased the belly cargo?

A380 has the highest load factor for passengers;

however, the same space in the belly is also

needed to accommodate passenger baggage.

We were already operating 747-800 before A380

operations out of Delhi, which is close to the

cargo load available on A380 with full load, so

there has been no major difference in the cargo

load factor.

What is your strategy to consolidate

your position in the Indian market?

Any connectivity plans? What is the

competitive advantage that Lufthansa

Cargo will have?

Lufthansa’s presence in India has been

for over 50 years which itself proves our

position in Indian market. It will not be out

of place to say that we brought the concept

of freighter services in India. Our flexibility

to operate flights on short notice is our

main strength and this gives us a

competitive advantage. We are

trying to develop and participate

in the road feeder service as this

can be a key support towards

connecting the smaller airports and air freight

stations as well.

What sectors you are looking at?

We see tremendous scope for the courier and

express industries to develop in India due to

the high value goods that are now getting

momentum. With the ‘Make in India’ initiative

started by India’s Prime Minister and more

global recognition, we feel that we will get a

boost due to various industries.

Are you worried about competition

from Middle east carriers?

Middle East carriers are developing at a fast

pace and we have developed steadily. We

are not worried about any competition but

are developing and strengthening our high

reliability without comprising on quality and

safety.

What are the future plans of Lufthansa

Cargo in India?

We have a company strategy until 2020 which

covers all the important segments, i.e., new IT

platform (iCAP), new cargo centre at Frankfurt

airport, developing more hubs at Munich and

Vienna airport, new fleet development (777),

e-Cargo, which will certainly support us in

every market, including India. We have plans

to develop a mini hub in India, if our own as

well as government policies allow for it. We

are also planning to develop and provide

regional connectivity from SAARC counties in

near future. We would also like to develop with

the strong Indian economy and feel a sense of

pride to be part of this development that has

had a direct impact on GDP growth.

What are your expectations from the air

cargo sector in India for the year 2015?

We expect 2015 to be slightly better than

2014 and especially more growth for

pharmaceutical products. India is likely to

touch 30 per cent share in the US by pharma

due to its total exports to the country. It is also

likely to further grow by 10 per cent next year.

Board Member Products & Sales

of Lufthansa Cargo, and Ashok

Gajapathi Raju Pusapati, union

minister of civil aviation.

“Trade and commerce are

the new parameters through

which relations between two

countries are now judged. India

and Germany share a strong

trade and commercial link,”

said Ashok Gajapathi Raju, Civil

Aviation Minister. Believing this,

Lufthansa has been committed

to the Indian market.

Considering the growth and

focus of Lufthansa Cargo in

the Indian market and sharing

a moment that is filled with

pride in ‘Namaste India’, Veli

Polat, regional Director,

South Asia and Middle

east, Lufthansa Cargo in an

interview with Jasleen Kaur

talks about Lufthansa Cargo’s

operations in India, expansion

plans, focused sectors,

competition and company’s

2020 strategy.

Type of Cargo2015-16 (In MMT)

2020-21 (In MMT)

2025-26 ( In MMT)

2030-31 (In MMT)

Domestic Cargo 1.63 2.8 4.54 6.9

International Cargo

2.29 4.18 7.12 11.29

Total Cargo 3.92 6.98 11.66 18.19

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extensive network

Creating value through

InteRVIew | Martin drew

With over two decades of experience in the air cargo industry in multiple roles at leading airlines, Martin Drew comes into India to head the cargo division of India’s popular airline Jet Airways. Before joining Jet Airways, Drew was with Etihad Airways for nine years where he was head of freighters and business partnership. In April2014, he was chosen to head Jet Airways cargo division. As the vice president for cargo, Drew will report to the Chief Commercial Officer and has been entrusted with the responsibility of substantially increasing the airline’s cargo business taking advantage of the airline’s strategic partnership with Etihad. Martin Drew speaks to Reji John about the launch of freighter operations

in India and what it means to head cargo operations for Jet Airways in India.

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APRIL - JUNE 2015| www.acaainews.com 21

What is the brief to you when you joined Jet

Airways to head its cargo division in India?

The mandate has been to enhance revenue,

leverage the strong Jet Airways brand and

strengthen the position of Jet Airways Cargo. A

particular focus area is to improve Cargo revenues

from the domestic market. Jet Airways’ domestic

network is vast, serving 50 Indian cities with around

400 flights each day. The overall capacity per day

is huge at around 650 tonnes. So the main focus is

to better optimize this capacity and enhance the

revenue this generates. Another key part of my

mandate is to work on the strategic partnership with

Etihad, and other interline partners by identifying

opportunities to work together and capitalize on the

synergies.

Please comment on the significance of the

launch of freighter operations in India by

Jet Airways and how do you personally

evaluate this event since you were given

this mandate less than a year ago?

Jet Airways will be the first privately owned Indian

passenger airline to operate a freighter, so this is a

huge milestone. Induction of the freighter is further

evidence that Cargo is a serious growth priority

at Jet Airways. The ability to offer main deck

capability complementing our extensive passenger

network will raise our profile making us even more

relevant to our customers. This development is not

only a major fillip for the Indian air cargo market,

but it also fully backs the Indian Government’s

“Make in India” strategy.

From a personal perspective, the last year with

Jet Airways has been incredibly enjoyable, we

have achieved a lot and launching the freighter

operations is certainly a high point. A lot of hard

work and effort has gone into making this happen

and it really was a team effort. I have to say the

Indian regulatory authorities have been very

helpful.

Where do you see the growth and revenue

coming from for Jet Airways Cargo?

We are certainly benefitting from the huge

demand increase in the domestic market. This is

primarily being driven by the thriving e-commerce

sector in the country. Year on year, we have seen

double digit growth in revenue on our domestic

network. Many of the major agents are key

customers and we have focused on how we can

do more with them as well as trying to capitalize

as much as we can on the growing e-commerce

sector. Another key area where we see improved

performance in the domestic market is in the

movement of valuables and in life sciences

products, which require specialized transportation.

We have also grown our business through

broader distribution and increased customer

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engagement. We have launched a Global

Key Account programme increasing our

engagement with the largest global

forwarders and continue to build on our

strong relationships with the independent

forwarders. Furthermore, we have increased

revenues through the development of high

yield products, greatly increased focus on

partnership, a critical area in enabling us to

expand our network reach.

The launch of our freighter operations

will enhance our network offering, expand

the scope of services we offer, and inject

significant capacity helping us to further

boost our revenues and market presence.

What is your strategy and value

proposition for your Indian

customers?

With our extensive domestic network and

frequency we serve multiple segments

such as the express and courier industry,

auto parts, e-commerce, pharmaceuticals,

consumer goods, life science products,

valuables and perishables. We aim to

deliver greater value to customers of these

market segments by providing customized

solutions to transport their goods swiftly

and reliably. We continue to evaluate

opportunities to broaden our market scope

especially with flights where we compete

with other modes of transport.

As one of India’s major international

airlines with non-stop services to key

destinations, we are extremely well placed

to serve India’s growing economy and

support its trade and commerce within the

country and with international partners. We

are delighted to help facilitate the growth

of India’s pharmaceutical trade and work

closely with key customers

in this industry. Linking

India’s horticulture, and

agriculture industry’s

exports to major

markets, we take

pride in delivering

value to this vital part

of India’s economy.

We support the express

industry and its

customers providing timely, reliable and

consistent services. Similarly we bring

tangible value to multiple segments such

as garments, manufacturing, fashion and

valuables,

To further enhance the value we offer

our customers, we are soon launching

branded products to bolster our offering

in the express, valuables, life sciences,

and pharmaceuticals industries. We will

continue to strive to improve our services,

products and aspire to be the premier

cargo carrier in India.

What is your current assessment of

your operations in India?

We have steadily grown our business

in both the domestic and international

services with growth in tonnage, sizeable

increase in load factor, and strong yield.

Our distribution has expanded as has

our market segmentation. While we

have made much progress, we continue

to seek opportunities to improve not

only the quality of our revenue but also

the services and products we offer our

customers. We are working on ways to

boost performance on domestic flights.

As our business continues to grow,

we are working on ways to overcome

infrastructure challenges, and resource

constraints. We are making significant

investment to strengthen our operations

with additional manpower, equipment,

processes, etc. Our team of committed

and talented people has been

augmented with specific skill-sets

and more defined roles. Testifying

to our commitment to the Indian

market, our freighter operation

adds significant opportunity to expand

relationships with key customers as also

boost our contribution to India’s economy.

How do you remain competitive in

this market without undercutting

your margins?

From the yield perspective we are top-

end. We are very conscious about our cost,

very conscious about maximizing yield. I

think that is something we do very well and

we have improved further. Our product

offering, customer relationships, and

responsiveness allow us to be competitive

and offer excellent value to customers.

Providing services that offer strong value to

customers, focusing on those flights which

offer greatest potential to maximize yield,

as also on market segments that offer yield

premium, enables us to strengthen our yield.

What are the challenges in operating

in India?

India offers tremendous opportunities

and has massive potential. In certain

aspects infrastructure needs improvement.

At times the complexities of doing business

in India adds cost and reduces speed. It

is very encouraging to see the initiatives

the government is taking to address these

challenges... The Honorable Minister for

Civil Aviation has clearly expressed intent to

develop the air cargo sector.

How do you plan to build your

strategy on the back of the etihad

relationship?

Leveraging Etihad’s relationship with

the major multinational forwarders,

we have implemented our Global Key

Accounts programme. Combining with

Etihad, our network is very complimentary

and it is a very powerful proposition. We

have also worked closely to develop a

common product portfolio to better serve

our customers e.g. Fasttrack our express

offering. Products to be soon launched

include Safeguard for our valuables

customers, a life sciences product, and

pharmaceutical product.

Leasing the freighter from Etihad has

allowed us to bring this path-breaking

initiative to fruition relatively quicker and

with greater commercial solidity. Both

airlines have been able to feed into each

other’s networks to offer their customers

broader network reach, expanded

transport solutions, increased access to

hitherto untapped markets thus widening

customer choice. Our partnership benefits

and adds value to our customers as also

both partners.

InteRVIew | Martin drew

Vipan JainLufthansa Cargo

"The launch of our freight-er operations will enhance our network offering, ex-pand the scope of services we offer, and inject signifi-cant capacity helping us to further boost our revenues and market presence."

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eVent | air Cargo ForuM india

Air Cargo Forum India

(ACFI) on comple-

tion of its successful

two years, organised

a full day seminar recently

in Delhi on the theme of

“transforming Indian airports

into international cargo

hubs”. Union Minister of Civil

Aviation P Ashok Gajapathi

Raju was the chief guest

and released ‘The Air Cargo

Forum India Yearbook’, which

contains articles written by

prominent names in the air

cargo industry.

ACFI has been actively

taking up various industry-re-

lated issues at various indus-

try forums and government

agencies. The symposium had

speakers from ministries to in-

dustry players; from corporate

shippers to research bodies;

who from different areas ad-

dressed issues related to the

future outlook of the air cargo

business, current challenges

being faced by the air cargo

supply chain and available

opportunities. However, the

focus of the seminar was on

the transformation of Indian

airports into international

cargo hubs with the adoption

of a more systematic ap-

proach, observing international

standards adopted at airports

worldwide and this can only

happen when the government

and industry work together.

Showing interest in devel-

opment of airports along with

the industry, the minister of

civil aviation said in his key

note address: “The future is

bright for the air cargo sector.

Infrastructure and airlines

have great role to play for

developing cargo hubs. Now

it is the right time to translate

ideas into actions. We (the

government) are eagerly look-

ing for ideas from the industry

players to work together. Let’s

work together to turn our

dreams into a reality.”

Pradeep Panicker, Presi-

dent, ACFI, said, “We welcome

the government’s intervention

into the airport developments.

We welcome the policies and

strategies streamlined by the

new government and the new

minister. The government is

taking up many issues related

to rules, regulations, proce-

dures, infrastructure, etc., for

review and change to make

them contemporary and in

tune with the requirements

of business and industry. This

will definitely enable India to

become a major player in the

global economy.”

The first panel discussion

on ‘government support for

developing air cargo hubs’

brought an air of optimism

in the convention hall, when

government representative

Renu Singh Parmar, Eco-

nomic Advisor, Ministry of Civil

Aviation, welcomed three key

issues from the air cargo fra-

ternity to be presented to the

government and for which

both the industry and govern-

ment will work together.

In another session moder-

ated by Sanjiv Edward, head,

cargo business, DIAL, Parmar

said, “Things need to be

streamlined and the govern-

ment is taking initiatives

for good infrastructure and

multimodal connectivity. We

are trying to solve hindranc-

es.” She announced that the

logistics board will meet the

finance minister Arun Jaitley

soon to launch a single win-

dow clearance soon.

“We are expecting stake-

holders to work on the effect

of developing hubs. Air freight

stations are likely to come

near manufacturing hinter-

land,” Parmar added.

Tulsi Mirchandani, manag-

ing director, Blue Dart Aviation

said: “Effective logistics distri-

bution system is required and

for this, strong connection is

vital. Mobile phones play a

great role in this regard. We

need to change the mind-set

from survival to growth. If

you have an efficient logistics

segment, you can contribute

more to the GDP of a country.”

EP Hareendranathan, ED,

cargo, Airports Authority of

India, said, “Smaller airports are

also required to handle cargo.

Transition is important. Parking

base is a constraint now.

Terminal is another problem. In

addition, there is a need to

reduce dwell time to one day.

For international operations,

international airports are

required.”

Govt and industry join hands to develop air cargo hubs

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NEWS

Development of airports in small cities

DHL Express plans air cargo facility at Mumbai airport

AIrPOrTS AuTHOrITy OF InDIA (AAI) has undertaken

construction of small airports at five locations during 2014-

2015. These five locations are: Hubli and Belgaum in Karnataka,

Kishangarh in Rajasthan, Jharsuguda in Odisha and Tezu in

Arunachal Pradesh. A task force under the chairmanship of Joint

Secretary, Ministry of Civil Aviation has been constituted for

identification of other locations based on certain broad criteria such

as minimum population of 10 lakhs, tourism potential, commercial

viability details of the flight movements in the past, social

obligations etc.

Government of India is open to private participation in the

process of providing regional and remote area connectivity to

Tier-II and Tier-III cities through construction of small airports across

the country. However, such consideration depends upon various

factors such as willingness of the private players, commercial

viability, socio-economic responsibility of the government, support

from the concerned state governments etc.

DHL eXPreSS is planning to set

up its third air cargo terminal

facility in Mumbai, as it seeks

to increase its market share in

the domestic air cargo business.

The company, which has two

such facilities at Delhi and

Bengaluru airports, currently has

a share of about 50 per cent in

the domestic air cargo market,

handling one million shipments

a month. Its air network

comprises five dedicated

inter-continental freighters,

making 19 flights a week and

six freighters for domestic

connectivity through its group

company Blue Dart. In addition,

it uses belly space of over 60

commercial flights daily.

“We are looking for space

at Mumbai airport for such an

airside terminal. We recently

started a courier clearance

in Ahmedabad, which will

enable us to achieve better

efficiency to facilitate the

growing international trade

from Ahmedabad and Western

India,” R Subramanian, managing

" We will soon be opening a new service centre in Benguluru, which will be the third facility in the city"

R SuBRAMANIANDHL Express India

director, DHL Express India, said.

Its proposed terminal in Mumbai

and at other key locations

are part of the INR 2,097 crore

investment plans in India over

the next few years. “We have

a five-pronged strategy for

India aimed at developing free

trade houses, create specialised

industry verticals, offer products

specific to small enterprises,

cross-sell DHL brands and

invest in talent,” he said. To

strengthen these operations, DHL

is also expanding its network of

service centre facilities, opening

such units in Chandigarh,

Faridabad, Ludhiana, Mysore

and Sriperumbudur in the last 18

months.

“We will soon be opening

a new service centre in

Benguluru, which will be

the third facility in the city,”

Subramanian added. DHL,

which has developed expertise

in fashion logistics by delivering

fashion week events across 11

countries, is supporting the

Lakme Fashion Week that is

currently on. “Fashion logistics

is a complex affair. The dress or

ensemble that one sees on the

ramp passes through so many

hands across countries and

continents, before it takes the

final shape. The entire collection

has not only to arrive in time for

the show, but afterwards has to

be packed again and sent for

the next fashion week in Europe

and Tokyo,” he added.

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NEWS

Oman Air inks pact with Cargolux for India cargo

Cathay Pacific to give Kolkata its second freighter serviceCATHAy PACIFIC AIrWAyS has

introduced freighter service in

Kolkata, boosting the city's trade

opportunities. The freighter

carries goods into Kolkata late

on Wednesday and Saturday

and lift cargo on Thursday and

Sunday. It operates a Boeing

747-400 aircraft with a capacity

of 100 tonne, but Kolkata's share

is likely to be 25 tonne because

it will go to Delhi first. At present,

only Qatar Airways operates a

freighter service on Wednesdays

and Fridays. Other airlines carry

cargo in the belly of passenger

aircraft as does Cathay Pacific

on its 140-plus planes.

Anand Yedery, Airline

regional cargo manager (South

Asia, Middle East and Africa),

said, "The service boosts cargo

not only to and from this

city but entire eastern India,

providing greater connectivity,

flexibility and access to the

world." Cargo James Woodrow,

Cathay Pacific director, said,

"India is a very important

market for us. The new Kolkata

service boosts the flow of

garments and food products

to and from India, taking

advantage of our world-class

facilities in Hong Kong to

connect to our comprehensive

global cargo network."

The cargo situation at

Kolkata airport is not very

bright with the state-of-the-

art facility remaining largely

unutilised. While there are

some exports primarily

leather goods to Europe and

the US and perishables like

fresh vegetables, frozen fish

and live crabs to Singapore,

Taipei, Beijing and Shanghai

the import quantum is poor.

"Kolkata used to import project

material like heavy machinery

and electronic equipment.

But that has gone down

substantially as industrial

activity has slowed down," a

source said.

OMAn AIr has signed a Letter of Intent with Cargolux Airlines

International S.A. to enable the freight specialist to use Oman air's

facilities in Muscat, Salalah and Sohar. The agreement includes the

launch of Cargolux's full freighter services from Luxembourg to India

via Oman on April 15. The formal signing of the pact will take place

when the first Cargolux flight arrives in Muscat on April 16.

The agreement signifies Oman Air's latest step in expanding its

cargo operations. It follows earlier initiatives by the national carrier

of the Sultanate, which includes the launch of the pan-GCC and

pan-European trucking services, and a joint cargo service with DHL

between Oman and Dubai.

Cargolux intends to increase the number of services it operates

to Oman during 2015 to several flights per week, with onward

connections to multiple Indian cities, including Chennai, Mumbai and

Hyderabad. Additional services to cities in India are being considered

and connections to China, Europe, Africa and the United States are also

planned.

In addition, Oman Air will provide Cargolux with access to the freight

capacity of its passenger fleet, which flies to 11 destinations in India and

three in Pakistan, as well as to destinations in Nepal, Bangladesh and Sri

Lanka. This will give the Luxembourg based carrier the opportunity to

feed consolidated freight to Oman from a number of larger markets.

India's first private airport to be operational soonCOunTry'S first private greenfield airport at Durgapur,

christened Kazi Nazrul Islam Airport, promoted by Bengal

Aerotropolis Projects Ltd (BAPL), is likely to be operational

by April 14. "The final calibration of navigational aids

at the airport by Airport Authority is done. Now, we

expect to get final DGCA licence in a month," Alapan

Bandopadhyay, state transport secretary, said.

The West Bengal government has 1.2 per cent stake in

BAPL, and Singapore's Changi Airport is the single largest

shareholder in the airport. Bandyopadhyay said Pinnacle

Air, a non-scheduled airline, will begin its operations from

here four days a week connecting Bagdogra, Coochbehar,

Durgapur and Kolkata soon after getting license from DGCA.

BAPL managing director Partha Ghosh stated that the

company is in negotiations with IndiGo and GoAir for

scheduled flights for connecting Delhi-Durgapur including

Air India and non-schedule airline Air Coasta for connecting

southern cities like Hyderabad and Bangalore. Air Costa

may connect these two south Indian cities for four days

a week. However, the final agreement will depend on

concessions the Kazi Nazrul Islam Airport offers.

The major concessions demanded by the scheduled

airlines are waiver of landing and takeoff fees, underwriting

minimum of seats and 30 per cent surcharge waiver for

ATF for a greater timeframe. State government has already

given a three-year waiver of surcharge on ATF for three

years to Andal, Coochbehar and Bagdogra airports.

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APRIL - JUNE 2015 | www.acaainews.com26

NEWS

AISATS to set up Bengaluru’s first Coolport

InDIA’S PreMIer AIrPOrT SerVICeS

COMPAny, Air India SATS Airport Services

(AISATS), held a ground breaking ceremony

for Bengaluru’s first fully dedicated

perishable cargo handling centre, the

‘AISATS Coolport’, at Kempegowda

International Airport. The event was

inaugurated by Kaushik Mukherjee,

Honorable Chief Secretary, Government

of Karnataka, in line with the vision of

enhancing the State of Karnataka as the

Pharmaceutical, Biotechnological and

Perishable hub of India.

A noteworthy distinction of this facility

is the provision of 135 KVA (approx) power

supply for its operations through solar

energy, a first for an air freight terminal

in India. Once completed, this exclusive

40,000 tonnes AISATS Coolport will cater

to a wide range of commodities such as

pharmaceutical products, fruits, vegetables

and flowers. The facility will be equipped

with a drug controller lab testing facility,

separate ripening zone, land-side truck-

docks, warehousing and re-distribution

centers, cold room facilities with different

temperature zones and a testing facility as

per Plant Quarantine requirements for EU

and US bound shipments. In addition, the

state-of-the-art AISATS Coolport will also

have humidity-control and temperature

monitoring facilities.

The event was inaugurated by Kaushik Mukherjee, Honorable Chief Secretary, Government of Karnataka

DIAL to sell stake in Delhi Cargo

THe DeLHI InTernATIOnAL

AIrPOrT LIMITeD (DIAL), a

subsidiary of GMR Infrastructure, has

entered into a definitive agreement

to sell its entire stake of 26 per cent

of the equity capital of Delhi Cargo

Service Centre which operates cargo

operations at Delhi Airport, GMR

informed the exchanges. DIAL shall

sell its India Infrastructure Fund-II for

Rs 28.60 crore.

DIAL has agreed to sell its entire

holding of 1.09 crore equity shares

of face value of Rs 10 each, to India

Infrastructure Fund -II (investment

manager - IDFC Alternatives

Limited), for Rs 26.20 per share

aggregating a total consideration

of Rs 28.60 Crore, GMR said. The

consummation of share sale is

subject to fulfillment of certain

conditions precedent, GMR added.

Çelebi opens its newest station at Ahmedabad AirportMAInTAInInG its growth trajectory, Celebi, a global brand

that is embedded in the Turkish aviation sector, has opened

its latest station abroad in India at the Sardar Vallabhbhai

Patel International Airport. It already provides services at the

Delhi and Mumbai airports. Celebi began its operations in

Ahmedabad by providing comprehensive services to the

flights of Vistara, the youngest airline in India, on December

10, 2014.

This service of Celebi constituted a significant first in

Indian civil aviation history, stressed a release, as it provided,

‘both ramp and terminal services for a local airline company

as a ground handler’. Celebi now provides comprehensive

services to Vistara in Mumbai as well as Ahmedabad. With

Ahmedabad, Celebi has increased its number of stations,

where it provides ground handling and/or cargo and

warehouse services to 6 abroad, and 37 in total.

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NEWS

GVK MIAL meets e-freight compliance standards

FIEO elects new president

Etihad Cargo launches TempCheck

THe InTernATIOnAL AIr TrAnSPOrT

ASSOCIATIOn (IATA) rated the GVK-

Mumbai International Airport (GVK MIAL)

as e-freight compliant for adopting

paperless initiatives at the air cargo

operations in Mumbai. GVK MIAL has been

supporting the e-freight initiative since

the announcement by IATA and has been

actively involved leading the way with the

initiation of e-reception and online carting

order issuance.

In 2014, GVK decided to go ahead with

elimination of hard copy of the Airway

Bill at export cargo acceptance, thus

becoming the first airport operator in India

to achieve this milestone. Subsequently,

paperless air freight handling has been

successfully introduced at various critical

levels of cargo terminal operation both in

BIAL and MIAL. Thereafter, GVK MIAL went

a step further and began implementing

other initiatives such as Advance Shipment

Information in exports; Online Delivery

Order message for Master Airway Bill

and House Airway Bill in imports, and

Automated Vehicle Token generation in

exports to provide real time updates of

cargo vehicles.

eTIHAD CArGO unveiled

TempCheck, its new cargo

solution created to ensure the

integrity of all temperature-

sensitive pharmaceutical and

healthcare products as they

are transported around the

world. All temperature-sensitive

pharmaceutical products,

including blood plasma, tablets,

medicines and anaesthetics,

must be kept within different

temperature ranges in

compliance with industry

and regulatory guidelines, to

ensure the products retain their

integrity and are protected from

degradation due to exposure

to heat and cold during the

transportation process.

Supervised by trained and

experienced service teams

and ground handling staff,

TempCheck incorporates the

latest equipment, processes and

operating procedures that keep

all pharmaceutical products

within a temperature controlled

environment at every stage of

the journey, from the cool room

facility to the ramp, and from

the aircraft to the customer.

said: “Over the last two years

we have seen tremendous

growth in the amount of

pharmaceutical products we

have successfully transported

over our hub in Abu Dhabi as

we continue to expand our

passenger and cargo networks,”

said David Kerr, Etihad Airways

Vice President Cargo.

To meet this increasing

demand, Etihad Cargo has

also upgraded its temperature

controlled storage facilities in

Abu Dhabi, and has refurbished

its existing cool rooms to

meet pharmaceutical-safe

specifications. Extensive new

purpose-built facilities are also

being established and are

scheduled to come online in

2015, prior to the summer period.

Etihad Cargo offers a

combination of belly-hold

capacity and main-deck

freighter services to 111

destinations internationally,

operated by a fleet of 111

passenger and freighter

aircrafts.

S C rALHAn was elected as the new

president of Federation of Indian Export

Organisations (FIEO). He was earlier the

Regional Chairman (Northern Region)

of the federation. Ralhan is one of

the leading exporters of North India

with over four decades of experience

in exports. He represents the hand

tools sector of exports. He was also

the Regional Chairman of Engineering

Export Promotion Council from 1998 to

2011. He has also been the President

of Ludhiana Hand Tools Association,

Ludhiana since 1996.

A widely travelled and experienced

exporter, Ralhan has been associated

with trade and trade bodies to redress

the problems of manufacturer exporters

in general and merchant exporters with

the ministry of commerce, director

general of foreign trade, ministry of

steel and ministry of MSME, various state

governments, Reserve Bank of India and

other banks. He has also represented as

a Member in Zonal Advisory Committee

of Customs and Excise and State Level

Export Promotion Committees.

Page 30: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

APRIL - JUNE 2015 | www.acaainews.com28

Vistara launches flights to Guwahati & Bagdogra

Qatar airways to increase capacity to Bengaluru

Cathay Pacific appoints new cargo managers

VISTArA has started flights

to eastern and north-eastern

parts of India, with an intention

to operate daily flights on the

Delhi-Guwahati-Bagdogra-Delhi

route.

“We’ve had lots of

customers asking us to fly

to the Eastern India over

the past month, so we’re

delighted to launch this new

route in response to the

customer demand.

The addition of this

route reaffirms our

commitment to promote

regional connectivity in

India, and contribute to the

government’s efforts to

boost trade and opening

"We’ve had lots of customers asking us to fly to the Eastern India over the past month, so we’re delighted to launch this new route in response to the customer demand"PHEE TEIK YEOHVistara

up development avenues for

people in these regions,” said

Phee Teik Yeoh, CEO, Vistara.

Flying to far-flung areas is

critical for Vistara as the full-

service airline run by Tata SIA

Airlines is looking at flying to

international cities in the next

two years. Reuters recently

reported that Vistara has plans

to expand its fleet size and start

flying to overseas destinations

within two years, citing its chief

executive officer.

Vistara is a joint venture

between Tata Sons and

Singapore Airlines (SIA) with

Tata Sons holding the majority

stake of 51 percent in the

company and SIA holding

the remaining 49 percent.

Vistara now flies from Delhi

to six destinations Mumbai,

Ahmedabad, Goa, Hyderabad,

Guwahati and Bagdogra. It

will soon commence flights to

Pune. With five aircraft already

in operations, Vistara’s fleet will

grow to six this month and nine

by the end of this year.

QATAr AIrWAys is continuing its expansion plans

in India with a significant increase in capacity on

its flights from Doha to Bengaluru from August this

year to meet the increasing passenger demand on

the route.

Currently Qatar Airways operates a Boeing 787 on

the Doha Bengaluru route with 254 seats. Starting

August 1, the Boeing 787 will be replaced by a

Boeing 777, with a capacity of 335 seats, which will

connect to more than 140 destinations worldwide via

the airline’s state-of-the-art hub in Doha.

“The strengthening of the DohaàBengaluru route

reflects increased passenger demand and reaffirms

our continuous expansion strategy for the Indian

market. India is growing as an economic hub and

shows enormous potential, and our growth strategy

has always stressed the significance of the Indian

market where we plan to seek even more capacity

and increase frequency on existing routes,” said Group

chief executive of Qatar Airways Akbar Al Baker.

Qatar Airways’ Boeing 777 has been designed

to ensure that its passengers can fly long distances

while immersed in complete comfort and enjoy the

five-star airline’s legendary hospitality.

TArun SeTHI has been

appointed Cathay Pacific

Airways’ Cargo Manager for

Karnataka, while J Sajeev

Kumar has been appointed

manager for Tamil Nadu

and Kerala regions. They

will oversee cargo sales and

revenue for Cathay Pacific

and will be responsible

for the development and

execution of cargo sales

strategy for their respective regions.

Sethi joined Cathay Pacific as Cargo

Manager for Bengaluru in 2008, before

moving to Mumbai in 2009 to oversee

cargo sales and operations for Western

India. With the launch of twice weekly

freighters to Bengaluru in August

2011, Sethi moved back to Bengaluru

as Cargo Manager for Karnataka and

Andhra Pradesh and was instrumental

in setting up Cathay Pacific Cargo in

Hyderabad for Sales and Services. In

2014, he moved to Chennai to oversee

the cargo operations for Tamil Nadu

and Kerala.

Kumar has been in the aviation

Industry since 1993 and has worked

with Srilankan Airlines GSA in Kerala

in various capacities. In 2003 joined

Cathay Pacific GSA overseeing Kerala

region’s business development and

later on moved to Hyderabad as

Regional Manger of Andhra Pradesh

for Cathay Pacific Passenger and Cargo.

In 2007, moved to Chennai and took

over Cathay Pacific Cargo GSA Sales

for the Southern region. He joined

Cathay Pacific Cargo, Chennai as

Account Manger in October 2010. In

2012, Kumar was appointed as Cargo

Manager for Andhra Pradesh to oversee

sales and cargo operations in this

region based in Hyderabad.

TARuN SETHI J SAJEEV KuMAR

NEWS

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Page 31: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

Organized ByMake sure to be there.

Page 32: Freight forwarding A challenging opportunity · 4/4/2015  · S L Sharma President, ACAAI S L Sharma President, Air Cargo Agents Association of India (ACAAI) FRoM tHe PReSIDent'S

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