Category Archives: Aviation

Cyrus Katgara, Partner, Jeena & Company notes, “Logistics cost for goods carried by air is already at eight per cent of Cost, Insurance and Freight (CIF) value. It reaches 14 per cent only when all modes of transportation such as road, rail, sea and air are combined together. This also includes inventory holding cost. World bank formula is linked to GDP.” Logistics costs is one of the challenges which the industry is facing at present. According to reports, it accounts for 14 per cent of GDP, with 60 per cent direct costs and 40 per cent indirect costs, compared to an average of 10 per cent indirect costs in developed countries. Also, The value of the Indian logistics sector was $250 billion in 2021. Growing at an impressive CAGR of 10-12 per cent, it may reach $350 billion by 2025.

Neutral Air Partner (NAP) has partnered with the ATEM Group to launch NeX e-commerce supply chain logistics network. “NeX is an international group of experts focused on advancing the interests of the e-commerce supply chain logistics industry. This is a strategic partnership that brings together a collective of industry-leading logistics providers committed to delivering flawless omni-channel fulfilment operations, cross-border transportation, distribution, return logistics, and end-to-end e-supply chain management,” said an official release from NeX. The network includes highly specialised supply chain logistics experts including express couriers, postal brokers/operators, linehaul consolidators, first & last mile operators, gateway customs brokers, return/reverse logisticians, resellers/wholesalers, e-fulfillment providers, e-commerce marketplaces, 3PLs & distribution providers, tech and solution providers, consultants, carriers, e-tailers, and shippers, the release added. “NeX is an innovative platform that will revolutionise the e-commerce supply chain industry,” said Christos Spyrou, CEO, Neutral Air Partner. “We are proud to partner with the ATEM Group to create the most advanced network of supply chain experts. NeX will provide members with the tools and resources they need to stay competitive in the ever-evolving eCommerce landscape with the power of NAP. NeX members benefit from the global reach of e-commerce experts, building trust in a complex sector, express mail and freight buying power, advanced e-logistics community tools, omnichannel network operations, global contracts with carriers and postal operators, volume incentive schemes, and industry recognition of excellence.”

As part of its expansion strategy, Challenge Group is ready to receive investment of over €60m from Investec Aviation Finance to support acquisition and freighter conversion of a batch of four Boeing 767-300ERs. “This conversion programme is the keystone in Challenge Group’s expansion strategy as it allows it to increase its current fleet of eight widebody freighters,” says the company’s chief investment officer, Michael Koish. “This was no straightforward financing deal. But thanks to strong co-operation and out-of-the box thinking, we were able to solve some of the complicated issues that popped up along the way.” Challenge Group’s logistics operation also includes a cargo terminal in Liege. Investec says the funding has been underwritten jointly by its UK and South African aviation arms. Challenge Group operates carrier divisions in Israel – the company formerly known as CAL Cargo Airlines – as well as Belgium and Malta, and its fleet includes Boeing 747-400 as well as 767 freighters.

Vaibhav Vohra, Managing Director, Continental Carriers talked about the benefits of Air Freight Stations (AFS) and services offered by its first Greenfield air freight stations near IGI airport, and how such facilities promote EODB and remove congestion and dwell time. He highlighted, carting order management, truck docks for loading/off loading cargo, availability of customs officials with online ICEGATE connection, customs processing/ clearance, palletization and containerization facility as key services. He also focused on navigating complexities of logistics infrastructure and cross-border services and highlighted few challenges which the freight forwarders face at the terminals like congestion, complex documentation, regulatory compliance, labour management, security measures, coordination and infra limitations. Continental Carriers Group of Companies is set to open one of India’s first Greenfield air freight stations, where Customs Clearance, Cargo Consolidation, and Palletization will all take place at the AFS facility, and goods will be delivered in pallets ready to load on planes at Delhi International Airport.

Talking about Govt. of India’s highly ambitious initiatives like Gati Shakti and National Logistics Policy, Sagar Kadu, Director Logistics, Ministry of Commerce & Industry, Government of India, said, “Both Gati Shakti, and NLP have been launched to enable Ease of Doing Business (EoDB), improve connectivity & make Indian businesses more competitive. We are the facilitators of the industry and the policies are being aligned as per the requirements of the industry.” He was speaking at the second edition of Supply Chain and Logistics conclave 2023 in New Delhi. “To improve the overall multimodal infrastructure of the logistics sector, government of India has launched these two master plans. These schemes will not only improve connectivity but also will bring Ministries including Railways and Roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects like Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN etc., to improve connectivity & make Indian businesses more competitive.”

Qatar Airways Cargo and Envirotainer have joined forces to offer sustainable solution for shipping temperature-sensitive pharmaceuticals to where they are needed most. By capitalising on both organisations’ extensive network capabilities, along with Envirotainer’s cutting-edge Releye® solution, CO2 emissions for shipments can be reduced by up to 90% compared to other solutions. The Releye® RLP and RLP solutions also ensure precise temperature control throughout the entire transportation process, meaning this partnership guarantees the utmost integrity and quality of temperature sensitive cargo like never before. Miguel Rodriguez, Head of Cargo Products at Qatar Airways Cargo said: “I am thrilled to announce the reinforcement of our strategic partnership with Envirotainer, a global leader in temperature-controlled air transportation solutions. This collaboration marks a significant milestone for Qatar Airways Cargo as we continue to enhance our capabilities in delivering pharmaceuticals and other temperature-sensitive cargo worldwide. At Qatar Airways Cargo, we understand the criticality of maintaining the cold chain and ensuring that pharmaceuticals reach their destination in optimal conditions. By joining forces with Envirotainer, we can offer our customers seamless access to their industry-leading containers, which are specifically designed to meet the stringent requirements of the pharmaceutical industry. Commenting on the partnership, Akos Balkanyi, Global Key Account Manager, expressed his enthusiasm, stating, “Through the optimisation of our operations and investment in cutting-edge solutions such the Releye® units, we are actively reducing our environmental impact and contributing to a greener future reducing up to 90% our CO2 emissions. We are excited about this collaboration and the positive impact it will have on our customers and the industry as a whole.” The collaboration between Qatar Airways Cargo and Envirotainer underscores ongoing commitment of both organisations to investing in …

Kerry Logistics Network has begin with trials of using robots at various locations in Asia to meet rising e-commerce demand. The KoolBee robot has been utilised at facilities in Hong Kong, Tianjin and Dongguan and is said to boost productivity and accuracy. Kerry claimed that by using KoolBee, the overall sorting productivity is increased by 270%. The robots have the advantage of being quickly deployed, reconfigured and scaled up, significantly increasing the accessibility and flexibility of sortation automation compared with traditional fixed automation, the logistics firm explained. Samuel Lau, managing director – integrated logistics North Asia of Kerry Logistics Network, said: “The fashion e-commerce industry is rapidly evolving and consumers’ expectations for fast deliveries are getting higher every year. “KoolBee is our latest robotics roll-out under the ‘Kool’ banner to optimise sorting operations and bolster order fulfilment efficiency according to the specific needs of each customer. “It has proven beneficial in supporting customers in handling enormous orders during seasonal peaks and promotion-driven shopping sprees. Following this launch, we are set to utilise this technology for other customers and verticals.”

SmartLynx Airlines has plans to increase its fleet to 13 by the end of the year by adding four more units by the end of 2024. The charter carrier and lessor currently operates six A321Fs. It is aiming to become the largest operator of A321-200 converted freighters in Europe. SmartLynx Airlines cargo operations manager Dmitrijs Voroncovs said, “This is the first-ever narrow-body freighter to feature containerized both main and lower cargo decks, which allow for automated loading and unloading to achieve exceptional turnaround times.” The airline said the model, which can carry 27 tonnes of cargo and has a range of 2,300 nautical miles, is perfect for the express market. Chief executive of SmartLynx Airlines, Zygimantas Surintas, added, “As we reintroduce the A321-200 freighter to the world, we are confident that it is poised to lead the future of cargo operations. “To start, its exceptional fuel efficiency makes it the most sustainable choice in the cargo market today. Direct operational costs for A321F are up to 30% lower compared to the classic B757-200 and 737, making it the most cost-effective option for our clients.” Most recently, the carrier added an A321 freighter, registered as YL-LDP and freshly converted by Elbe Flugzeugwerke (EFW), to its fleet. The aircraft was added to its Latvian AOC and is the first of the type in the country.

Air Canada Cargo launched their first commercial trip into Punta Cana, Dominican Republic, with a Boeing 767 freighter. The service will be available once a week. “We are excited to add yet another destination to our expanding freighter network. This new service builds upon our capabilities to serve the island through Air Canada’s passenger network, providing consistent year-round cargo capacity for our key customers in the region,” said Jon Turner, Vice President, Cargo at Air Canada. We are pleased to welcome the first freighter flight from Air Canada Cargo. As winners of the Airports Council’s International Airport Service Quality Awards for seven consecutive years, we are confident that this will contribute to the excellence and diversification of our cargo operations,” affirmed Giovanni Rainieri, director of Airside Operations at Punta Cana International Airport. Air Canada Cargo’s flight to Punta Cana is the latest addition to its worldwide freighter network, following recently launched freighter services to San José, Basel, Liege, Dallas, Atlanta and Bogota.”

WFS, a member of the SATS Group marked its India foray with the launch of operations at Kempegowda International Airport (KIA), Bengaluru. WFS (Bengaluru) Private Limited, a 74:26 JV between WFS and airport operator Bangalore International Airport Limited (BIAL), will operate a cargo terminal facility at India’s 3rd largest cargo hub at Kempegowda International Airport, Bengaluru (IATA: BLR), with a concession period of 15 years beginning 24th May 2023. WFS will also be the exclusive operator of BLR’s Dedicated Cold Chain Facility during the concession period. WFS will be making significant investments into upgrading and expanding the two terminal facilities at its BLR Gateway to shortly take the ultimate annual cargo handling capacity to over 250,000 MT of general cargo and over 80,000 MT of cold chain cargo in phases. Commenting on the occasion, Mr John Batten, CEO, Europe, Middle East, Africa & Asia (EMEAA) WFS said “Our operation in Bengaluru represents WFS’ first foray into cargo handing in India. As the global leader in air cargo handling, WFS looks forward to adding value to the Indian air cargo industry through introduction of world class practices, ensuring better efficiency and driving productivity improvements which we believe to be well aligned with the Government of India’s National Air Cargo Policy and related ambitions. We will introduce highest international standards for safety, security, environment and operational excellence and make significant investments into improving and expanding the cargo infrastructure at our BLR Gateway. Ultimately, we believe that WFS can play an important role in aiding and facilitating the air cargo growth ambitions of BIAL, the broader Bengaluru region and India overall.”