No Space for Cargo Agents

DH News Service ,Bangalore :(as published in the Deccan Herald)

The commercial operations at the Bengaluru International Airport (BIA) might have commenced last week providing air commuters finally an opportunity to fly in and out of the much delayed airport.
But, for the Cargo fraternity it is still a long way before they get to use the cargo facilities at the airport. “The Cargo fraternity is unhappy as there is no office space and warehouse for cargo agents. It’s very challenging for our trade as our staff have to travel almost almost 80 kms up and down, spending half a day travelling, which could have been avoided if they had provided office space,” Bangalore Air Cargo Club president Nirmal Singh Sandhu told Deccan Herald.The Cargo fraternity which is presently operating from their old offices at the HAL Airport say that they have to shell out Rs 250 to 300 to each of staff for their travelling and other expenses. Besides, most of them also end up paying overtime wages, said representatives from the Cargo Industry.The Cargo fraternity said they were assured of space at the airport by the BIAL during the time of the airport opening date. However, it has been postponed till June.Monopoly promoted:They were also annoyed with BIAL’s decision to provide office space only to one MNC Company, which they said, was unfair. “The whole trade is struggling to get a little space to operate day-to-day business. We don't know on what criteria BIAL has decided to provide this space to just one company. There were no bidding of any sort while awarding the space to the MNC’s,” said Sandhu. The representatives say that the things will further complicate and that the air cargo operators would meet this week to take a final decision on the next course of action.

Tokyo airport cargo terminal opts for IBS product

As published in Business Line (The Hindu) on May 29, 2008

The Tokyo International Air Cargo Terminal Ltd (TIACT) has become the latest air cargo terminal operator to integrate the new version of ‘iCargo’, the new-generation cargo management system from the IBS Group.
The IBS Group is a leading global provider of new-generation IT solutions to the travel, transportation and logistics industries. iCargo’s operations module will manage the new cargo terminal at Tokyo International Airport, also known as Haneda Airport.
The airport is currently undergoing expansion in terms of both capacity and technology and is scheduled to be fully functional by October 2010.
iCargo will provide Haneda with an integrated system that will optimise operations, enhance profitability and provide the scalability to manage increasing volumes of cargo. It is designed to manage ground handling and warehousing of all cargo processed through the airport. Growing acceptance
Speaking to newspersons here, Mr V.K. Mathews, Chairman and CEO, IBS Group, said that the deal with TIACT signified growing acceptance of IBS’ new-generation cargo solutions in Japan, one of the principal markets for global air cargo businesses. Nippon Cargo Airlines and All Nippon Airways, two of Japan’s leading carriers, have already deployed iCargo for managing their cargo businesses.
According to Mr Terutake Kato, President and CEO, TIACT, the Haneda Airport has great potential to become the main portal to Japan in the near future.
“We chose IBS due to its extensive experience and know-how in the airline cargo industry. We foresee IBS facilitating efficient processes and handling the complex nature of cargo terminal operations. We look forward to developing this into a long-term engagement,” he said. Web-enabled features
The iCargo’s module will provide Haneda airport a wide range of Web-enabled features from reserving airway bills, taking shipment on export, and receiving cargo as import, to final delivery of the shipment to the consignee.
The system provides for guidance and control of trucks, critical to managing influx of transport, and supports radio communications through hand-held terminals.
The air cargo facilities provided by the new terminal will give operators easy access to central Tokyo.

Jet wins the `Best Cargo Airline of Central Asia` award

Announcement / Corporate May 27, 2008, 20:10 IST (Business Standard)
Jet Airways, India's premier international airline, has won the ‘Best Cargo Airline of Central Asia' at the prestigious Cargo Airline of the Year Awards, held at the Royal Lancaster Hotel, London.

This Award is widely acknowledged in the air cargo industry. The winner is determined on the basis of votes cast by the readers of Air Cargo News, the world's best-read air cargo newspaper. These votes are then checked by a neutral body, BIFA (British International Freight Association) and winners in various categories determined.
Mr. Duncan Gambrill, General Manager – UK & Ireland, Jet Airways and Mr. Steve Stewart, Regional Manager Cargo - UK & Ireland , Jet Airways received the award on behalf of the company in the presence of an impressive industry gathering of six hundred distinguished guests who flew in from different corners of the globe to support and acknowledge the achievements of their peers.
Commenting on the honour, Mr. Jay Shelat, Vice President-Cargo, Jet Airways, said, "We are delighted to receive this honour, which is a reflection of the high standards of Jet Airways' cargo services. Accolades such as these spur us on to greater heights as we further expand our services around the world, including the launch of our maiden flight on the Mumbai-Shanghai-San Francisco sector on June 14, 2008. We would like to take this opportunity to thank our customers, front line staff and airport services who helped us achieve this award."
The Cargo Airline of the Year Awards celebrated its Silver Jubilee this year, having recognized for 25 years the very best achievements and highest standards of quality and service provided by airlines around the world.
About Jet Airways:
Jet Airways, with the acquisition of JetLite, today has a combined fleet strength of 106 aircraft and offers customers a schedule of over 525 flights daily.
Jet Airways:
Jet Airways currently operates a fleet of 82 aircraft, which includes 10 Boeing 777-300 ER aircraft, 8 Airbus A330-200 aircraft, 54 classic and next generation Boeing 737-400/700/800/900 aircraft and 10 modern ATR 72-500 turboprop aircraft. With an average fleet age of 4.39 years, the airline has one of the youngest aircraft fleets in the world. Jet Airways operates over 385 flights daily.
Flights to 60 destinations span the length and breadth of India and beyond, including New York (both JFK and Newark) Toronto, Brussels, London (Heathrow), Hong Kong, Singapore, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat, Doha and Abu Dhabi. The airline plans to extend its international operations to other cities in North America, Europe, Africa and Asia in phases with the introduction of additional wide-body aircraft into its fleet.
JetLite:
JetLite is a wholly owned subsidiary of Jet Airways India Ltd. and was acquired by Jet Airways in April 2007. Positioned as a value based Airline, JetLite promises to offer value for money fares. JetLite currently operates a fleet of 24 aircraft, which includes 17 Boeing 737 series and 7 Canadian Regional Jets 200 Series. JetLite operates 141 flights every day to 30 domestic destinations and 2 international destinations (Kathmandu and Colombo)

‘New ground-handling policy to hit quality’

Zeenat Nazir, Posted online on Indian Express Wednesday, May 21, 2008 at 2306 hrs

The Civil Aviation Ministry’s soon-to-be introduced ground handling policy has got a thumbs down from the country’s logistics service providers. Companies like Transport Corporation of India (TCI) and leading courier service provider Blue Dart have said that the new policy would erode their service quality by taking away their right to handle their own cargo, a core competency.

In the new policy, coming into effect from January, only three agencies will be permitted to take up ground handling services at the six major airports at Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. Chosen through competitive bidding, these companies would undertake two basic ground handling activities — passenger handling at the landside and ramp handling which includes loading and unloading of cargo from aircraft.
However, logistics companies say the new policy will reduce the efficiency of their operations. “Currently, airlines either outsource the ground handling work or undertake it on their own. Hence, we can communicate easily with these airlines at any point of time,” says TCI division XPS’s president and CEO K Prabhakar. “Once the new policy comes into play, the ground handler appointed would report directly to Airports Authority of India (AAI) or the airport operator and we can no longer have control on the situation.”
Prabhakar added that the experience at the new Hyderabad International Airport Ltd (HIAL), which has already appointed dedicated ground handlers, has not been good. XPS now has to pay the handler a service fee for undertaking the work, increasing operations costs. “Earlier, we could pay the airlines once every 15 days for the consignment. Now we have to pay them on a cash and carry basis which increases our cash requirements.” XPS expects escalating ground handling costs to contribute to a 10-15 per cent rise in total cost of transporting cargo by air over the next few years.
Blue Dart Express finance director and COO Yogesh Dhingra said, “In our business, timely delivery of the service is extremely essential. The new policy will increase the turnaround time of our aircraft. At present, our own trained team ensures that turnaround happens in 30 minutes flat but common ground handlers may take much more.”
A civil aviation senior ministry official said, “We have taken note and are seeing what we can do about it."

Lufthansa Cargo levies new import handling charges

As published in Business Line (The Hindu) on May 21, 2008

Lufthansa Cargo has implemented new handling charges from May 1 on cargo imported into India. However, the trade is against this and wants the carrier to withdraw the charges immediately.
The new charge will enhance the entire service chain immediately after touch down of aircraft for import handling services.
But the trade feels it is an “unfair trade practice” adopted by the carrier.

Major player
Since Lufthansa Cargo is a major player in the air cargo market with nearly 80 per cent market share, the carrier is taking advantage of this position to generate undue profits, according to the Federation of Indian Export Organisations.
As per the World Air Cargo Forecast-2006-2007, of the total 1.4 million tonnes of international cargo that flew in and out of the Indian sub-continent which include Pakistan, Bangladesh and Sri Lanka, India moved 8.82 lakh tonnes.
Lufthansa Cargo in a circular to its clients said the levy was to realign its services to the new improved level, and charged along with the delivery order fee.

Air Cargo Agents Association of India
The Air Cargo Agents Association of India said that the levy was an “unjustified additional revenue on your (Lufthansa Cargo) part.
In reality, you are required to give consignees all air cargo shipments by you ready for delivery at destination without recovering any further charges. You have already collected freight charges for transporting the shipment from origin to destination.”

SICCI
According to the Southern India Chamber of Commerce and Industry, Lufthansa Cargo being a dominant player in the air cargo export and import business to and from the country has seized upon this dominance to introduce an ‘unjustified and illegal’ additional levy.
Carriage of cargo under ‘Contract of Affreightment’ casts a responsibility on the carrier accepting the freight, at a foreign location to place the same at the disposal of the consignee on arrival in India.

Freight practice
The freight charges for carriage encompass this responsibility.
This is the practice adopted by all airlines, including Lufthansa Cargo carrying import cargo for Indian trade.
The levy seeks to subvert this contractual obligation and impose an additional charge on Indian importers, SICCI said.
With a transport volume of 1.81 million tonnes of freight and mail, Lufthansa Cargo ranks among the world’s biggest cargo carriers.
It operates a fleet of 19 of its own MD-11F aircraft and has several other freighters on charter to cover around 300 destinations, according to the company’s Web site.

AAI to develop Doon airport into international cargo hub

The Statesman, May 11, 2008

The Airport Authority of India (AAI) is to develop the Jolly Grant airport as an international cargo hub. The move is seen as being intended to relieve the Indira Gandhi International Airport at Delhi from some of its burden. A project of Rs 92.16 crores is being prepared for the upgradation of the Jolly Grant airport in Doon for converting it into an international airport, according to official sources. The Jolly Grant airport would be ready for international flights within five weeks, AAI experts who were here in the capital recently in this regard have said. During their visit the AAI experts met the chief secretary Mr SK Das officials discussed at length the progress of the works of development going on at the airport here. According to the AAI officials, the airport would be ready for night landing operations by October this year with runway lighting, taxiway lighting to be installed and a new terminal building with ATC constructed. Automatic elevators, a central AC convener system and fire station facilities are also to be installed. Once these facilities are in place, the Doon airport would be well equipped to handle flights from airports across the country. According to aviation officials, three more private companies are likely to start air taxi services to the Doon airport.