cargo


super market


AIRBRIDGECARGO AT 10


INTERVIEW:


Denis Ilin Executive President, AirBridgeCargo Airlines


What pl perf


ormanc


eased you most about ABC’ e and devel


s opment in 2013?


In 2013, despite challenging market conditions, ABC achieved volume growth on all of our major routes and this was matched by a 5% improvement in revenue. Our Freight Ton-Kilometres (FTK) rose 15% and our average load factor of 72% showed a marginal 1.7% gain over the previous year, and continued to be well above the industry average.


We expanded our presence in Europe with increasing frequencies to/from Paris and Milan to 3 and 5 weekly flights accordingly. Also in 2013, ABC became part of the Olympic history as the only Russian-appointed air cargo carrier on the Europe-to-Sochi route and this, together with Volga-Dnepr’s ‘cargo supermarket’ concept, enabled us to step in to meet the increased demand for cargo capacity and provide customers with direct access by air to Sochi.


We also strengthened our position in Asia. For example, ABC is now the largest cargo operator from Shanghai to Europe. Our dedicated work on quality resulted in an increase in our DAP (Delivered-as- Promised) index which rose from 40% to almost 80% by the end of the year. And, most importantly our customers appreciate our commitment to constantly finding ways to improve the airline’s quality and performance results. In June, for example,


ABC was recognised as the ‘Best All Cargo Carrier’ in the 28th Asian Freight & Supply Chain Awards (AFSCA).


ABC has invested heavil er?


y to upgrade its


fleet – what advantages does the B747-8 off


It gives us a number of advantages compared to its predecessors, both in terms of cutting operational costs and from the perspective of increasing the quality of the product we offer to our customers. The payload of the -8F is 16% higher, which means the airplane can accommodate four additional main-deck pallets and three additional lower-hold pallets. The new aircraft is also environment-friendly, reducing carbon emissions by 16%, and nitrogen oxide emissions by 52%, exceeding the requirements of the Committee on Aviation Environmental Protection.


ABC operates an all-747 fleet. Ar l


ooking at other air craft types?


In terms of the future development of the airline we are planning to move towards becoming an all Boeing 747-8F type


‘W e you


add in the 10 An-124 and 5 IL-76TD-90VD of our parent company Volga Dnepr Airlines, we already offer a unique fleet that provides a ‘cargo supermarket’ of solutions to meet all of our customers’ requirements.


Asia Pacific is a major mark What tr


ends ar et f or ABC. e you seeing in this mark et?


The Asia Pacific-Europe market grew by 10-12% in 2013 YOY but yields were lower than in 2012 by 3-5% and that created a lot of pressure on airlines. Competition from passenger airlines increased and that is one of the reasons why yields went down.


The China-Russia market grew by 12% last year and we expect this positive trend to continue throughout 2014.


As for commodities, high-tech products fell out of China as more went by sea but industrial equipment and raw materials helped to compensate for this by growing 10-12%. In 2013 we saw a peak season from September-December during which yields went up by 20%-30% on routes out of all major stations. Falling Asian yields were partially compensated for by growing


e are planning to move towards becoming an all Boeing 747-8F type operator so we are considering options to increase our B747-8 fleet as earl


y as October this year


operator so we are considering options to increase our B747-8 fleet as early as October this year, and then eventually replacing our current 747-400 aircraft with new -8s. Medium haul flights are being developed by Atran Airlines, also part of Volga Dnepr Group, and its fleet of 2 Boeing 737 and 3 An-12 aircraft. When you then


.’ demand and yields out of Europe to Asia.


In 2014 we are seeing growing demand out of China to the U.S., up by 10%, and to the EU by +5% but yields will most likely continue their negative trend and competition for high-yield traffic will increase.


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