FREIGHTER AIRCRAFT\\\


If cargo is heavy, sensitive and expensive, then air charter is a likely alternative, says DSV. Indeed, says the forwarder, if the transport is also required to happen within a very narrow time frame, it is likely to be the only viable solution. DSV’s customer, Siemens,


needed to move a huge component for a generator. It weighed nearly 40 tonnes and was six metres long with a diameter of three metres. It had to travel halfway


around the globe from Germany to Australia, and given the time constraints, realistically this left air charter as the only option. DSV received the first inquiry


Issue 5 2019 - Freight Business Journal


If it’s heavy, sensitive and expensive, it’s the ideal solution


Volga Dnepr Airlines, which can load up to 50 tonnes. The cargo was loaded on


board the chartered aircraft at Leipzig Airport (Germany) and arrived in Townsville (Australia), where it was unloaded and delivered to its final destination on the same day with no issues or delays. “A complex operation


concerning this project in the middle of 2018, received the order in the first quarter of 2019 and completed the transport in April. “The entire process lasted


nine months” says project manager Marco Salvatore,


DSV Australia. “Following negotiation of the contract, we had to deal with the many operational queries and finally, we were ready for the actual transport.” DSV chose to charter an Ilyushin IL-76 aircraft from


successfully completed thanks to careful planning and excellent co-operation with Siemens, the recipient and our own project transport teams in Germany, Australia and Denmark,” senior broker Per List, DSV Project Denmark concludes.


Chapman Freeborn sold to aerospace firm


23


International aerospace business group Avia Solutions Group is to acquire UK-headquartered aircraſt charter firm Chapman Freeborn Group. Avia, headquartered in Vilnius, Lithuania, has 42 subsidiaries worldwide and representative offices in the UK, US, Poland, Serbia, Estonia, Russia, Thailand, and Indonesia operating in aircraſt maintenance, pilot


training, ground handling


and fuelling, aviation IT solutions and business aviation. Chapman Freeborn will maintain its existing product portfolio and continue to operate under its existing brands including Chapman Freeborn Airchartering, Chapman Freeborn OBC, Intradco Cargo Services, Logik Logistics, Magma Aviation, and Wings 24. Avia chairman Gediminas


Ziemelis said: “This acquisition is part of our strategic plan to expand


our presence in key sectors, and significantly strengthens the capabilities of our group. Chapman Freeborn’s client portfolio and its outstanding level of expertise will greatly support our ambition to be the world’s leading aviation services provider.” Chapman Freeborn chief


executive Russi Batliwala, described the acquisition as “an important moment for Chapman Freeborn as we continue to expand the strength of our group around the world. Joining forces with Avia Solutions Group will provide us with a greater level of business scale, resources and expertise to accelerate growth and deliver our services to an even wider client base – all while preserving our unique company culture and ongoing commitment to charter market innovation.”


There will always be a role for the extra capacity that all-cargo aircraſt provide, says Mike Hill, director of freight at charter firm Air Partner. Freighters carry around 50% of total air cargo traffic and are especially important for the Far East–US trade lane, as well as for integrators and express operators which operate freighters into hubs as a vital part of their distribution networks. “On passenger aircraſt of


course freight has a lower priority and therefore bellyhold cargo has to fly where passengers want to fly,” he comments. Freighters moreover have the


advantage of flying into more suitable airports with palletised cargo, avoiding slower bellyhold cargo processing at the busier passenger airports. The biggest freighter fleet


operators are companies like Fedex, although newer operators on the market such as Amazon are also growing their all cargo fleets rapidly. Any operator with a mixed fleet of freighters and passenger aircraſt has good flexibility to adjust their capacities to fit demand. Recently, though, Luſthansa


Cargo reduced freighter capacity due to soſtness in the market from China, and other airlines are expected to follow. Many airlines oſten tend to over-react when cutting capacity, so when the market picks up again it takes


longer for the operators to release more capacity. Charter business therefore oſten picks up the shortfall, especially during spikes in demand. Compared to other modes


of transport, airfreight is more expensive. However, there is sometimes no alternative method that can be used, such as when travelling to remote regions. And, when compared to


the penalties for not having a project completed in time, or the cost incurred by shutting down factory production, it is not at all expensive. Additionally, part-charters can reduce the cost significantly, and using an experienced broker such as Air Partner to find the best aircraſt and strike the best deals with airlines will also help to keep costs down. Are there any ‘do’s and ‘don’t’s forwarders


for and others


considering chartering an aircraſt? Airline contracts are


notoriously one-sided, Hill says. Any mistake can become very costly if


the liability has not


been correctly considered or contracted. A specialist broker can correctly assess risks and mitigate them, while understanding the full implications of a charter, such as traffic rights. “For example, during one


project we worked on last year, the contracted airline could not attain


traffic rights in Kenya for an urgent charter and thus wanted to step back from the flight. Air Partner, however, was able to secure the flight rights themselves from local contacts in Kenya, despite it being a public holiday there. Without our involvement


there would


have been catastrophic financial consequences for the client if they were not able to fly. “We work directly with freight forwarders as consultants,


to


protect their position in the business and enable them to offer optimal charter solutions within their service portfolio.


We can also help to protect the forwarder’s business from being approached directly by the airlines or competitors, which happens more oſten nowadays.” Another thing to be aware of


is aircraſt availability, Hill adds, as it is dependent on a wide range of factors and so can be highly volatile. The industry tends to be very reactive, so circumstances can change very quickly. A charter price can change


from one hour to the next as it is based on a constantly changing availability situation.


Thankfully, the broker can oſten foresee when rates are going to move. He concludes: “In our


experience, most mistakes happen when forwarders over-promise or misinterpret


information to their client. Brokers such as Air Partner can avoid this happening, by ensuring the forwarders have the straight facts and are prepared with solutions for every eventuality.”


Volga-Dnepr signs long-term deal with Leipzig


Volga-Dnepr Group has signed a long-term partnership to expand its operations at Leipzig/Halle Airport in Germany. In


a understanding


memorandum signed


of in the


presence of the Saxon State Minister of Finances, Dr Matthias Hass, at the International Paris Air Show, they pledged to join forces to create an effective logistics system and to transform the airport into a multimodal hub for the group’s scheduled and charter operations with investments of up to €500 million during the next few years. Volga-Dnepr Group will operate


charter and scheduled operations to/from Leipzig/Halle Airport. The freighter fleet will fly up to 20


weekly flights to and from Leipzig from the end of 2021, increasing to 50 by 2030. The €500 million investments will be made in new apron areas, logistics and office buildings in the northern and southern parts of Leipzig/Halle Airport during the next few years. Both companies will intensify their cooperation in marketing and sales and will create up to 500 new jobs. Volga-Dnepr executive of


president charter cargo


operations Konstantin Vekshin said: “We have been striving to set up and develop regional hubs throughout the world. Nearly three decades of our experience, bolstered


by knowledge and


expertise will serve as a guarantee for the transformation of Leipzig airport into a vertically integrated multimodal hub.” Dr Matthias Hass added: “The


long-term commitment by the Volga-Dnepr Group is a huge success


story for Leipzig/Halle


Airport. This achievement in attracting the company once again shows that we’ve adopted the right course.” Leipzig airport already hosts


Volga-Dnepr’s operational base. The airport handled more than 1.22 million tonnes of cargo in 2018, making it the fiſth-largest air freight hub in Europe and the number two in Germany. The main driving force for growth is the DHL hub


but other cargo business is also developing, with over 50 airlines flying to over 200 destinations around the globe every year. The airport has a 24-hour


operating permit for cargo flights and two parallel runways, each 3,600 metres long, which can be used independently of each other. Plans are also currently


being drawn up to expand the infrastructure in the apron area used by DHL, which currently offers space for as many as 60 aircraſt to provide up to 36 more parking positions. Leipzig/Halle is also the home


base for AeroLogic, a joint venture operated by DHL Express and Luſthansa Cargo.


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