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Controversy over which companies can provide ground-handling services for air cargo flights at Toledo’s airports has prompted the Toledo-Lucas County Port Authority to consider a revision to its Airport Minimum Standards for businesses.
But Grand Aire Inc., which provides both charter air-cargo service and ground-handling services from its base at Toledo Express Airport, remains skeptical that the port authority’s proposed solution for the issue is fair.
The port authority last week sent an email to Jeffrey Wagner, general counsel for Dallas-based Integrated Airline Services, stating that his firm was authorized to provide services at Toledo Express only to DHL, which has operated cargo flights to and from the local airport since 2011 and uses IAS to load and unload its planes.
That “cease-and-desist” message followed complaints from Grand Aire about IAS’ having loaded or unloaded non-DHL cargo planes in recent weeks — work Grand Aire officials said their firm would otherwise have done for thousands of dollars in revenue.
Port officials agreed during a meeting Monday of the port authority’s airport committee that such a “through-the-fence” operation at Toledo Express — a firm conducting business on the airfield when it has no office or employees there — was improper.
But the proposed change to the agency’s minimum standards would allow such activity if IAS — or any other company offering cargo ground-handling services — signs even a sublease with an existing airport tenant for space at the airport.
The change would specifically add “air cargo ground handling operator” to a list of “special aviation service operators” allowed to conduct business at Express and Toledo Executive Airport — the former Metcalf Field — as long as they comply with the Minimum Standards.
Paul Toth, the port authority’s president, said that category’s absence from the existing list was not meant to exclude such businesses; the list is intended to provide examples of permitted aviation-related businesses, not to be exclusive.
But Jim Renda, Grand Aire’s marketing director, and Katrina Cheema, the company’s chief executive and co-founder, said that competition from IAS would be unfair because the Texas company would not have to maintain the on-airport overhead that Grand Aire incurs with its full-time, around-the-clock operations.
IAS hires part-time workers at minimum wage with no experience required, while Grand Aire’s staff are “full-time aviation professionals,” Mr. Renda told the airport committee.
“We do it right, we do it professionally,” he said. “We don’t think IAS should be allowed to have no stake in the airport, come in, and take this business. We’re not opposed to competition … but it should be a fair playing field.”
Mrs. Cheema said that if business prospects Grand Aire worked to develop at Toledo Express were subject to being poached by other companies, “what is the motivation now” for Grand Aire to continue its efforts to promote itself and the airport.
IAS had no representative at the meeting, and Mr. Wagner did not respond to a request for comment afterward.
Mr. Toth said that if the port authority set its Minimum Standards at such a level as to exclude IAS altogether, a complaint to the Federal Aviation Administration was the likely result.
While Grand Aire’s arguments “are legitimate,” he said, the port authority is obligated to allow fair access to conduct business at the airports, and there is a long history of airport businesses having part-time employees.
“As an airport operator, you’re never right,” Mr. Toth said. “You’re always wrong in this situation, depending on who’s losing.”
Following Monday’s airport committee review, the revised Minimum Standards will be up for discussion and a vote when the port authority’s full board of directors meets at 8 a.m. Thursday in the Port Authority Building.
Contact David Patch at: email@example.com or 419-724-6094.
The Indian Chambers of Commerce honored Air India SATS Airport Services (AISATS) with the ‘Air Cargo Terminal Operator of The Year’ award for the third consecutive year at the Indian Supply Chain Logistics Summit Excellence Award 2014. The award was accepted by Mahenthiran P., Senior Vice President AISATS – Bengaluru from Oscar Fernandes, Honorable Minister, Ministry of Road Transport Highways, Government of India, in the presence of senior government officials, policy makers and eminent industry players.
Each year, the Indian Chambers of Commerce presents a series of awards that celebrate excellence in the Indian Logistics Supply Chain sector. This annual award function evaluates the nominees on the basis of their range of services, operational performance, customer satisfaction and adoption of information technology. The award recognized AISATS for its world-class Air Cargo Terminal at the Kempegowda International Airport on the basis of key parameters, such as range of specialised and value-added services, IT and EDI system, customer satisfaction and responsiveness, security management, energy conservation and innovation, amongst others.
Receiving this award for the third time in a row reinforces the continuous innovation and reliable services AISATS’ is providing its customers. AISATS recently deployed, in its state-of-the-art 200,000 tonne handling capacity air cargo terminal in Bengaluru, the innovative carton clamp that allows for more efficient handling of loose cargo, becoming the first air cargo terminal in India to do so. In addition, AISATS was also the first to introduce the Automated Storage and Retrieval System (ASRS) and Very Narrow Aisle (VNA), to assist in the smooth handling of cargo. AISATS plans to continue to enhance its facilities and will look to invest in more multi- temperature control facilities to cater to the increasing demand of temperature control cargo. The AISATS Bengaluru terminal also has the distinction of being the first Air Cargo Terminal in India, Middle East and Africa region to be awarded a TAPA (Transported Asset Protection Association) Class A certification, showcasing their ability to achieve high security standards in warehouse operations while delivering efficient and excellent services.
On receiving this award, Willy Ko, CEO of AISATS said, “We at AISATS thank the Indian Chamber of Commerce for its recognition of our continuous efforts in innovating and providing high quality services consistently. It is indeed a great honour to receive this prestigious award for three consecutive years. The AISATS team is committed to delivering operational excellence and providing our customers with services in line with global best practices. This award is an important vote of confidence for us and further motivates us to continue to innovate and expand our services. I would like to take this opportunity to thank all AISATS employees for their hard work, contribution and great teamwork. We also appreciate the guidance, support and encouragements given to us by the stakeholders including our airline partners, friends from the industry, the authorities and local agencies without which we will not be able to achieve the results we are seeing this evening. A big thank you to all of you!”
AISATS provides comprehensive ground handling and cargo handling services to 20 international and 5 domestic airlines at Kempegowda International Airport, Bengaluru.
WILMINGTON, MA–(Marketwired – Feb 19, 2014) – Morpho (Safran), through its subsidiary Morpho Detection, today announced that Air Canada has deployed Morpho’s Itemiser® DX desktop explosives trace detector (ETD) to screen air cargo.
Under terms of the contract, Itemiser DX was deployed at Air Canada cargo locations to replace legacy systems and maintain compliance with enhanced U.S. Transportation Security Administration (TSA) cargo screening mandates.
“Morpho is pleased Air Canada has recognized the operational and detection capabilities of Itemiser DX by selecting it to screen cargo and meet new security mandates,” said Karen Bomba, president and CEO, Morpho Detection. “The ability of Itemiser DX to detect and identify explosives in challenging environments, combined with Morpho’s global service teams, gives air cargo companies the capability to maintain regulatory compliance while ensuring peak performance and maximum system uptime.”
A lightweight, portable desktop system, Itemiser DX can detect residue from explosives on parcels, bags, cargo, skin, clothing, vehicles and other surfaces.
“Morpho Detection has helped us upgrade our screening capabilities and maintain TSA compliance in an efficient way and with no impact to our operations,” said Barb Johnson, Senior Associate, Regulatory Affairs at Air Canada.
First qualified for air cargo screening in 2010 and certified by six global regulatory agencies, more than 5,000 Itemiser DX units have been shipped to air cargo screening facilities, airport checkpoints, checked baggage screening and secure locations around the world.
For more information on Morpho’s detection products, visit www.morphodetection.com.
About Morpho Detection
Morpho Detection, part of Morpho, Safran’s (PAR: SAF) security business, is a leading supplier of explosives and narcotics and chemical, radiological, and nuclear detection systems for government, military, air and ground transportation, first responder, critical infrastructure and other high-risk organizations. Morpho Detection integrates computed tomography, Raman spectroscopy, trace (ITMS™), mass spectrometry, X-ray and X-ray Diffraction technologies into solutions that can make security activities more accurate, productive and efficient. Morpho Detection’s solutions are deployed to help protect people and property the world over.
- Air Canada
On 4 April 1975, a Lockheed C-5A Galaxy, participating in the inaugural flight of Operation Babylift, suffered explosive decompression when the rear cargo do…
MISSISSAUGA, ON , Feb. 19, 2014 /CNW/ – Cargojet announced today they
have been awarded the Domestic Air Cargo Network Services contract and
have signed a Master Services Agreement with the Canada Post Group of
Companies (CPGOC) for an initial seven-year (7) term with three (3)
thirty-six month (36) renewal options. Projected revenues are estimated
to be approximately one billion dollars during the initial seven-year
agreement based on projected volumes.
Cargojet will provide comprehensive Canada -wide air cargo services for
the Group of Companies, including Purolator’s national air cargo
network. Cargojet’s domestic overnight network will be expanded and
enhanced significantly to handle the additional volumes and provide a
virtual dedicated Air Cargo Network to the Canada Post Group of
“Cargojet is extremely pleased to have been successfully chosen as the
exclusive primary domestic air cargo service provider to the Canada
Post Group of Companies. Cargojet operates an extensive overnight air
cargo model, which will provide the most cost-effective and scalable
solution to the Canada Post Group of Companies,” said Ajay Virmani
President and CEO of Cargojet. “Cargojet and the Canada Post Group of
Companies will work together to provide Canadians with world-class and
flexible air cargo services in today’s changing business environment, ”
“We are excited about the prospect of working with Cargojet. Their
extensive air network, combined with Purolator’s extensive ground
network will enable us to continue to enhance and expand our service
offerings for customers while assuring our market competitiveness in
the long term,” said Patrick Nangle President and CEO of Purolator. “At
the heart of all our decisions at Purolator is delivering on our
promises to our customers. We are confident that this new partnership
will be instrumental in helping us meet this commitment as we continue
to evolve and grow.”
“Canada Post is undergoing a major transformation as customer demand
shifts from mail to parcel delivery with online shopping,” said Jacques
Côté, Group President, Physical Delivery Network, Canada Post. “This
move will drive operational efficiencies, lower our transportation
costs and help ensure our parcel delivery remains competitive from a
cost and reliability perspective.”
Cargojet is Canada’s leading provider of time sensitive overnight air
cargo services and carry over 500,000 pounds of cargo each business
night. Cargojet operates its network across North America each
business night, utilizing a fleet of all-cargo aircraft. Cargojet
recently signed an LOI with Air Canada to explore strategic
opportunities in both cargo and airline operations within Canada and
international markets. For more information, please visit: www.cargojet.com.
Ranked one of the top 25 brands among Canadian consumers since 2011,
Purolator is Canada’s leading integrated freight and parcel solutions
provider. Celebrating over 50 years of delivering Canada on time,
Purolator continues to expand its reach and renowned service levels and
reliability to more people, more businesses and more places across the
country and around the world. Purolator is proud of its Canadian
heritage and is focused on sustainably positioning itself for future
growth and success. Purolator is also committed to contributing to the
well-being of the communities it serves and where more than 12,000 of
its teammates live, work and play.
About Canada Post
Canada Post is the country’s leading provider of electronic commerce and
customer communication solutions. It reaches more than 15.3 million
addresses, operates the country’s largest retail network, and offers
affordable and reliable service with convenient pickup and return
options for online shoppers. Together, Canada Post, Purolator Inc. and
SCI Logistics offer market-leading end-to-end solutions for e-commerce
shippers by leveraging the assets and expertise of the Canada Post
Group of Companies
Notice on Forward Looking Statements:
Certain statements contained herein constitute “forward-looking
statements”. Forward-looking statements look into the future and
provide an opinion as to the effect of certain events and trends on the
business. Forward-looking statements may include words such as
“plans,” “intends,” “anticipates,” “should,” “estimates,” “expects,”
“believes,” “indicates,” “targeting,” “suggests” and similar
expressions. These forward-looking statements are based on current
expectations and entail various risks and uncertainties. Reference
should be made to the issuer’s most recent Annual Information Form
filed with the Canadian securities regulators, and its most recent
Annual Consolidated Financial Statements and Quarterly Financial
Statements and Notes thereto and related Management’s Discussion and
Analysis (MDA), for a summary of major risks. Actual results may
materially differ from expectations, if known and unknown risks or
uncertainties affect our business, or if our estimates or assumptions
prove inaccurate. The issuer assumes no obligation to update or revise
any forward-looking statement, whether as a result of new information,
future events or any other reason, other than as required by applicable
securities laws. In the event the issuer does update any
forward-looking statement, no inference should be made that the issuer
will make additional updates with respect to that statement, related
matters, or any other forward-looking statement.
SOURCE Cargojet Inc.
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- Air Canada
Vice President Marketing, Public Government Relations
Tel: (905) 501 7373
Director, Corporate Communications
905 712-1084 ext. 23241
General Manager, Communications
Tel: (613) 734 4366
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Airlines will have to comply with the European Union (EU)’s new norms for air cargo security by July 1 or face a ban in transporting cargo or carrying cargo to the region’s airports. Airlines will now have to ensure cargo bound for the region is screened or comes from a secure supply chain. Airlines, including European ones, will need a security verification certificate for cargo operations at an airport outside the region. This means airlines will need to get their cargo security processes followed at the airports (from where the cargo is shipped) audited by EU-authorised validators. The International Air Cargo Association has warned of implementation challenges, though airports and cargo operators in India are confident of meeting the deadline.
Air India and Jet Airways did not respond to emails.
Airports have begun steps to comply with the norms. “The government could have lobbied with EU and secured an exemption from the verification process,” an industry source said. In April-November 2013, airports in India handled 950,000 tonnes of international freight.
Air India and Jet Airways fly to Europe. Jet earns eight-10 per cent of its revenue from cargo. European airlines, including Lufthansa and KLM (Martinair), have direct passenger and freighter flights between India and Europe. Gulf carriers carry cargo from India to Europe and onward to the US via their West Asian hubs. X-ray screening at airports in India is done by the airline or Bureau of Civil Aviation Security (BCAS)-approved agents. The responsibility of securing items in warehouses rests with the airline. Access to the cargo terminal from the landside (the side of an airport terminal to which the public has access) is the responsibility of the airport or cargo terminal operator, supported by the Central Industrial Security Force (CISF). The responsibility of securing cargo when taken to the aircraft rests with the airline or its ground handler and CISF.
Raharamanan Panicker, group chief executive of Cargo Service Centre that runs terminals in Mumbai and Delhi, said: “I don’t think there will be any problem in India to meet the July 1 deadline. We have been carrying out 100 per cent screening of cargo by BCAS norms.” Bharat Thakkar, former president of the Air Cargo Agents Association of India, said: “My understanding is the entire validation process, from application to certification, will take two-three months.”
The Mumbai International Airport said: “The BCAS regulations meet all the requirements (in cases they exceed EU requirements) except a few procedural changes. These gaps have been identified and are being closed. The processes to bridge these gaps need BCAS approval. The Mumbai International Airport-approved regulated agent has requested permission from BCAS to undertake the validation. Similarly, some airlines, like British Airways, UPS, Jet Airways and Lufthansa, have also approached BCAS for undertaking independent validations. The whole process is likely to be completed by April-end.” Delhi International Airport said discussions were on with validators, to be completed before the deadline. The Bangalore airport said: “Our cargo partner, MBBA, is already compliant as of November. The other cargo partner, Air India SATS, has initiated the process and is expected to complete it by May.”
(mt is million tonnes)
- In October 2010, two improvised explosive devices were transported as air cargo for US destinations. Fortunately, these were intercepted en route. These incidents highlighted to regulators and air carriers concerns regarding the security of air cargo
- Air India flies to London (the UK), Paris (France) Frankfurt (Germany). Jet Airways flies to London Brussels (Belgium)
- About 30% of cargo handled at Mumbai Delhi airports, the two busiest in India, goes to Europe. Airports in India handled 1.4 mt of global cargo in 2013-14
The Association of Asia Pacific Airlines (AAPA) has reaffirmed the pattern of continued steady growth in international air passenger demand, in contrast to soft air cargo market conditions in 2013.
Asia Pacific airlines carried a combined total of 220 million international passengers in 2013, 12 million more than in the previous year, representing 6.0% growth.
AAPA noted that the regional economic growth remained a positive driver of increases in business and leisure travel demand, coupled with improving business and consumer confidence in the major developed markets.
Reflecting comparatively strong demand on regional routes, international passenger traffic, measured in revenue passenger kilometer (RPK) terms, registered a more moderate 5.2% increase.
Combined with a 4.8% expansion in available seat capacity, the average international passenger load factor reached 78.2%, 0.3 percentage points higher compared to the previous year.
AAPA said that the international air cargo demand for Asia Pacific carriers, expressed in freight tonne kilometer (FTK) terms, recorded a marginal contraction of 0.6% in 2013, albeit an improvement from the steeper declines seen in 2012 and 2011.
In spite of the fall in demand, the year saw a 1.1% expansion in cargo capacity, resulting in a 1.1 percentage point decline in the average international freight load factor to 65.4%.
Commenting on the results, Mr. Andrew Herdman, AAPA Director General said: “Overall, Asia Pacific airlines recorded another year of solid growth in international passenger traffic in 2013.”
“Regional economies slowed a little but maintained positive growth rates, while signs of recovery in Europe and a stronger pickup in the US economy led to broader improvements in business and consumer sentiment. Air cargo markets remained subdued in 2013, but picked up towards the end of the year in line with increasing demand for Asian exports in the major developed markets.”
“Domestic air travel markets in the Asia Pacific region also enjoyed strong growth, with domestic passenger numbers up 10% to an estimated 740 million for the year, led by China. Overall, therefore, Asia Pacific airlines carried close to 1 billion passengers in 2013, a significant milestone,” said Herdman.
Looking ahead, Herdman concluded that “given expectations of a continuing modest improvement in global economic conditions, the outlook for Asian carriers remains broadly positive.”
“Nevertheless, operating margins remain compressed as a result of weak cargo revenues and other competitive pricing pressures. Airlines are responding by investing in newer more fuel-efficient aircraft, other productivity improvements, and value added service enhancements,” he added.