Page 22 - The STAT Trade Times September 2022 Issue
P. 22

industryreport


            "Once the vaccination programmes were
          rolled out, restrictions were lifted and a
          sense of normality started to return to the
          world and the PPE charter flights slowed
          down. But online shopping had become
          integrated into our lives and e-commerce
          boomed. We then started to see container
          shortages with sea freight, and an increase
          with customers using airfreight more and
          more as their only solution to distribute
          their products.
            "Operators started to focus more on
          increasing the frequency of their scheduled
          flights to provide additional cargo space for
          their clients due to high rates and capacity
          shortages on air charters.
            "After this period, while the market was                         required, are there sufficient drivers? What is
          recovering from the effects of the  pandemic,                      the risk of lockdown? Would a secondary or
          sanctions were placed against Russia which                         alternate airport provide a better solution,
          have caused the rise in fuel prices, which has                     given those human factors at play?"
          directly increased the costs on flights."
            "The past few years have been somewhat                           Business challenges, tough
          of a roller coaster in the air charter busi-                       assignments
          ness: during the height of the pandemic,                           Aircraft availability and price escalation are
          there was a big push to source any available                       the key factors affecting charter business,
          aircraft to distribute not only PPE and vac-                       says Ozdabak. "In any normal year, pre-
          cines but also consumer goods, including                           pandemic, carriers and charter providers like
          items that would ordinarily move by sea,"      At one point,       Air Partner could plan for low/high season
          says Liana Coyne, Director and COO, Coyne   operators could        traffic. It seems right now, that it’s hard to
          Airways. "Certain older aircraft came out of                       distinguish between the traditional freight
          retirement and passenger planes were used   name their price       seasons affecting all traffic lanes."
          as preighters. At one point, operators could                         Coyne agrees and adds that the key
          name their price and some felt little shame   and some felt little   challenges for charters are finding the
          in setting aside contracts if they could com-  shame in setting aside   right aircraft for the load, securing the best
          mand more money in spite of longstanding                           economics by finding two-way freight,
          business relationships or multiple flights.  contracts if they could   making sure all the correct permissions and
            “That operator heyday waned a bit as                             traffic rights are in place.. "There is also quite
          supply deadlines were met, the appetite or   command more          a lot of coordination involved to ensure that
          ability to pay premium rates reduced and   money in spite of       everything arrives and is loaded in time,
          because periodic restrictions in China be-                         particularly when a charter is a one-off
          gan to bite. However, it is still a good time to   longstanding business   flight and there may be limited options for
          be a cargo operator: clients are interested in                     recovery in the event of hiccups."
          contracting capacity for multiple flights, and   relationships or    Ozdabak listed out a project executed
          there is now less competition from belly   multiple flights.       by the Dubai team of transporting oil & gas
          space, preighters and Russian fleets.                              equipment from Shanghai to Istanbul. "The
            “Before the pandemic, charter was very           Liana Coyne     cargo was oversized (especially long) and
          much a premium bespoke service reserved           Coyne Airways    all other parties were focused on offering
          for the most pressing, high value shipments                        B747F for this cargo but the Air Partner team
          where we and other brokers would bend   of a discussion with the client to marry up   worked on the packing list very closely with
          over backwards to make sure the customer   their requirements with the realities on   B777F loadmasters for loadability and of-
          got exactly what they wanted. The major   the ground: we have to look more closely   fered the best solution to the client.
          considerations on the ground were prob-  at human factors - how will the crew be   "After confirmation, the client requested a
          ably runway length and the serviceability   affected? What requirements are there for   date change on the flight due to a manufac-
          of ground handling equipment. Now, some   them? Will there be sufficient manpower   turing delay. Shanghai airport permits and
          charters are more ‘standard’ with cargo   for loading and unloading? If something   slots are very hard to get and change due
          that would previously have gone with   is not loaded through human error, what   to Covid-19 restrictions. Besides, availability
          scheduled lift, and we have to have more   recovery options are available? If trucking is   is very tight on such widebody freighters
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