Loaded questions
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Posted Date: 06/05/2008
Issue: Airline Handling International June 2008
Publication: Airline Handling International
Cargolux is an integrated transportation company, operating exclusively for freight forwarders. It operates scheduled and charter services on a network covering all continents using a fleet of 15 747-400F freighters and 20 trucking contractors to move freight. The airline has adapted its structure to grow in line with the global air freight market. For example, the airline’s network links many of the world’s most important production centres through its hub in Luxembourg. It also specialises in the transportation of outsize shipments, perishable goods and live animals.
In terms of fleet, Cargolux is one of the two launch customers for next generation aircraft. It has made a firm order for 13 aircraft and purchase rights for an additional 10 units of the new 747-8 freighter. The first 747-8F will join the Cargolux fleet in the fall of 2009.
Cargolux does not self-handle at all; handling across the entire network is outsourced. Cargolux’s Vice-President, Pierre Wesner, answers our questions:
AHI When you select third party cargo/ramp handlers, what criteria do you apply?
PW For cargo handlers, the important criteria we examine are: warehouse capacity, know-how, staff qualifications and training rates. For ramp handlers, the knowledge of handling 747-400F aircraft is a must. Also important is a demonstration of appropriate GSE, staff qualifications and training.
AHI Are your agreements largely IATA contracts adapted for Cargolux use or are they totally bespoke?
PW The IATA Standard Ground Handling Agreement is applicable.
AHI What about the acquisition of GSE for loading/unloading? Does Cargolux have in place an investment programme for this or do you acquire equipment on an “as needed” basis?
PW No, Cargolux is not investing in GSE.
AHI Where you carry specialist or dangerous cargo, how do you ensure that third party handlers are qualified, trained and experienced in this kind of operation?
PW The ground handling agent’s training qualification must be certified by Cargolux prior to accepting any dangerous goods or live animals. Regular audits are performed at the ground handling agents. If recurrent mistakes or irregularities are noted, Cargolux can embargo that specific station.
AHI What about IT systems and the ability to exchange data with handlers? Is this an area of concern?
PW Yes, and constantly being monitored.
AHI When you go out to tender for handling services, do you always feel confident that handlers available for tender are clear about what handling Cargolux's freight entails and the service levels you require? Do you have a high quality pool of handling talent to choose from?
PW Cargolux is known for having high standards and these are widely recognized in the industry. Ground handling agents know what we expect from them. Obviously, one needs to adapt to some areas and stations. Not all ground handling agents are ready to handle 747s; nor to prepare and distribute cargo.
AHI What is your response to handlers' complaints about pricing? To what extent does price motivate you and to what extent are safety and solid relationships more important?
PW Cost containment is the trigger of the industry in general. Cargolux is trying to balance quality requirements and charges paid to the ground handling agents. Safety is in no way jeopardised by cost reductions. Solid relations are beneficial to both parties.
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