Page 12 - AAA NOVEMBER - DECEMBER 2022 Online Magazine
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continue. “It (22%) sounds like a big number   We expect that things will start getting better from March, just
        and quite dramatic but it isn’t too unreason-  after the Chinese New Year,” said Sanjeev Gadhia, chief execu-
        able given the very strong increases we have   tive, Astral Aviation. “We remain very optimist that we will have
        seen in recent years,” he says.              a great 2023.
        An increase of 3.5 per cent in cargo demand   “What we are experiencing now is kind of a return to normalcy,”
        in October compared to the previous month    said Gabriel Oliva, CEO Avianca Cargo. “I will not be so stressed.
        gives Willie Walsh, IATA’s Director General,   We will face short term headwinds but in the medium and long
        cause for optimism. “This indicates that the   term, I am very positive. I  think  after the Chinese New Year,
        year-end will still bring a traditional peak-sea-  there is a good chance that the market will become better, and
        son boost despite economic uncertainties,”   the situation will ease up. Over the last two years, it was very
        he says.                                     difficult for us to serve customers around the world, but it is
                                                     already getting a little better.”
        Cautious Optimism                            “We are living in quite turbulent times,” said Audrone Keinyte,

        Many industry players do not share Walsh’s   CEO Bluebird Nordic. “Since 2020, aviation has been changing.
        optimistic view about the short-term pros-   For some industry players, it is an opportunity, but for others, it
        pects of the industry but remain confident   can be a crisis. But there are always opportunities; ecommerce
        that the sector will continue to witness growth   is still growing. That gives us a lot of optimism.”
        over this decade and beyond. At a discussion
        on the current business climate during the Air   Investing in Technology, Aircraft
        Cargo Forum in Miami in November,  CEOs of
        many leading companies in the sector were    Notwithstanding the temporary headwinds, many companies in
        cautiously optimistic about the long-term    the sector are already thinking ahead. Amerijet International,
        future of the sector but admitted that they   which was one of the companies in the air cargo sector that
        were bracing themselves for another tough    chose to invest in technology during the pandemic, is planning
        year.                                        to do more of the same in the coming days.
        There was consensus among the executives     “Technology  is the differentiator at this  point,” says Strauss.
        that the industry will experience headwinds in   “We are a  48-year-old company. We had very many old systems
        the immediate future, but opinion remained   that didn’t allow us to operate as we need to. In the middle of
        divided on when the situation would go back   the pandemic, we renewed our IP systems. Whether we like it or
        to  normal.    “Those  who  operate  aircraft   not, we are all in the IT industry at this point. If you do not offer
        around the world say 2025; hopefully it is a   that as key product, I think you are missing an opportunity.”
        little bit better than that,” said  Tim Strauss,   For Avianca cargo, digitalization is as crucial for progress as
        chief executive, Amerijet International, “You   adding new aircraft, improving customer service levels, and
        just have to adjust to the market. There are   investing in its warehouses around the network. “We totally
        pickets of goodness, and we just have to find   revamped our IT eco system; digitalization makes interaction
        those and keep going in the meantime.”       with our customers easier,” says Oliva. “We are also adding four

        Capacity and demand will depend on how the   A330s starting next year.”
        ongoing Russian aggression on Ukraine and
        other global tensions impact the global econ-  © AIRBUS
        omy, said Tobias König, global chief executive,
        Rhenus Air & Ocean. “What will happen world-
        wide with the wars we have at the moment,
        how it will affect the global economy; if we
        put these factors out of the discussion, the
        global economy will continue to grow and in
        the long term I think there will be more cargo
        for airfreight.”
        König believes the current downturn in vol-
        umes is temporary and that the situation
        could improve in the first quarter of next year.
        “It is very difficult to predict when this will
        normalise again,” he said. “At the moment,
        we will definitely have a further downturn for
        the next couple of months then we need to
        see in February-March if it will go up again.”

        12 | NOVEMBER-DECEMBER 2022                                                        WWW.GBP.COM.SG/AAA
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