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Cargo union

by Alex Hawkes on Monday, 02 July 2007

There is little dispute over Germany's leading position in the logistics and transport global market. Companies such as DHL, Schenker and Kuehne + Nagel are all pioneers of the logistics sector, Frankfurt airport's status as the leading air cargo hub in Europe is uncontested, and in Lufthansa it possesses an increasingly prominent airline. It seems little coincidence therefore that one of the most important air cargo event's in the world was staged last month in Munich.

Experiencing a healthy growth in both figure attendance and stature since it first arrived at the Transport Logistic exihibion in 2003, Air Cargo Europe's prominence was highlighted by the frequency of visitors in its hall. Whilst its title may imply a strong European focus, the global representation shown by the exhibitors in fact revealed the opposite. Representatives from as far as Asia, the Middle East and the US were all on show at what many remarked to be a particularly successful year.

The presence of the Middle East was very much felt throughout. Business between the Middle East and Europe in the cargo sector is now so extensive that none of the region's big players failed to miss the opportunity. Airlines such as Etihad, Qatar Airways, Saudi Arabian Airlines and in particular Emirates, which had an exhibition stand to catch most eyes, were joined by representatives from Dubai World Central, Sharjah International Airport, Empost and Dubai Airport Free Zone, in promoting the region as a whole.

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Aside its importance to exhibitors in attracting customers and networking with industry colleagues, Air Cargo Europe also addressed a number of key issues through its range of conferences. Of particular interest for readers, an ‘evolving markets' based session focused intently on the potential for the airfreight sector in India.

Highlighting the subcontinent's phenomenal growth in terms of economy, industry and foreign investment, the conference strongly hinted towards a bright future for its logistics sectors.

Guest speakers at the conference included Ram Menen, divisional senior vice president cargo of Emirates, who believed the Indian market was reaching the "dawn of a new era". Supporting this view, Thomas Hoang, regional director, cargo marketing, Boeing, pinpointed that India's international cargo ATK's has presided at an annual growth of 11.5% for the last five years. With air cargo traffic predicted to triple over the next 20 years, strong hopes were pinned on the Indian market, alongside the Eastern European market to which the panel drew similarities in terms of its potential.

Given this theme and the recent happenings at Air India, it was perhaps no surprise to find the country's government owned airline exhibiting. The merger between Air India and Indian Airlines has gained much media coverage recently, and although plans are finalised, the two entities are yet to completely become one. Nevertheless, the airline cargo division has introduced new flights to Frankfurt, highlighting its focus on extending cargo links between India and Europe.

"We are commencing our first freighter service direct to Frankfurt from Bombay, Madras and Bangalore, which will be served by the Airbus A310 freighter," says Wolfgang Scholinz, cargo sales manager, Air India. "Following the merger, it has become easier for us to expand our freighter operations as effectively, the coming fleet has more than doubled."

"We will possess a fleet of 220 aircraft, allowing us to convert older aircraft into freighters. However, our current focus on freighter services is not a result of the merger, it is a result of the booming Indian economy. The export industry is increasing at such a rate that it has placed demand on India's Civil Aviation Authority to respond, which they are doing so through us," he adds.

Although it would be easy to assume exhibitors were predominantly constituted of airlines and airport representatives, a range of IT solution providers, niche freight products and varying outsource and leasing services were also on hand.

Of such companies, Atlas Airlines specialises in outsourcing freighter aircraft and given its strong connections with Middle East airlines, this year proved to be particularly productive.

"Atlas possesses a fleet of 35 Boeing 747 freighters which we wet lease to other airlines, for example Emirates which currently leases six aircrafts making it one of our longest and largest customers. We cover the entire ACMI (Aircraft, Crew, Maintenance and Insurance), which we provide for an airline to commercialise and then establish a route network," says Tony Carder, senior director sales and marketing, Europe, Middle East, India and Africa, Atlas Air.

"We are at this year's event not only because a number of our exisiting customers are here such as Emirates, Etihad, Qatar Airways and more recently Saudi Arabian Airlines, but also to establish connections with potential customers, such as Empost and Gulf Air. The fact this event has been so well attended by Middle East carriers has provided an opportunity to meet their senior management and discuss future plans," he smiles.

Regional representative: Bahrain International Airport

A successive exhibitor since Air Cargo Europe's formation in 2003, Bahrain International Airport has no doubt about the event's importance. "We are one of the pioneers of this exhibition, and 2007 marks the third time we have participated," says Yousif Mahmoud, head of corporate and public affairs, Kingdom of Bahrain Civil Aviation Affairs. "We have strongly noticed the potential of Europe for Bahrain airport, especially concerning cargo. We feel the Gulf is the main market for many European operators."

This year's event is particularly important for Bahrain airport given the fact it is about to undergo extensive expansion plans. "We need to attract more airlines through Bahrain as the airport is expanding, as is the potential to add more space for cargo facilities. We have recently completed our master plan in which opportunity has been created for our cargo village to grow. We hope this will push Bahrain to become one of the main cargo hubs in the Gulf, this is what we are trying to achieve through a presence at this exhibition," smiles Mahmoud.


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