Dubai Customs, JAFZA sign e-commerce cooperation agreement

Within their efforts to boost the role of Dubai and the UAE e-commerce on the global stage, Dubai Customs signed an agreement with Jebel Ali Free Zone (JAFZA) that enables JAFZA to enjoy all the services and benefits Dubai Customs provides through its cross border e-commerce platform.

The innovative platform utilizes blockchain technology to integrate and automate operations between Customs, Free Zones, logistics, and courier companies. It is the first of its kind in the region and aims to help the emirate become a global hub for e-commerce and encourage e-commerce companies to set their businesses in Dubai. This follows the leadership’s vision of increasing Dubai based companies’ local and regional distribution share of e-commerce trade in the emirate to Dh24 billion by 2022 by decreasing the cost of e-commerce operations by 20 percent. E-commerce is expected to contribute AED12 billion to the emirate’s GDP by 2023.

Abdullah Mohammed Al Khaja, Executive Director of Clients Management Division, Dubai Customs, and Abdulla bin Damithan, Chief Commercial Officer, DP World, UAE Region, signed the agreement, which will see Dubai Customs’ highly experienced employees provide e-commerce services to JAFZA to ensure the best performance in enhancing Dubai’s external trade.

“Dubai Customs looks forward to developing the local competencies in the e-commerce sector in support of the advancing e-commerce activity in Dubai and its success in attracting regional and global e-commerce platforms into the emirate,” Al Khaja said.

“The number of e-commerce parcels has increased in the first half of 2020 to 4.3 million marking a staggering 150 percent growth compared to the corresponding period in 2019. We are eager to keep abreast with this growth and to help customers easily access the world’s markets in support of Dubai’s external trade and its role as a global hub for trade and tourism.”

Al Khaja added, “Signing the agreement with JAFZA will help increase the number of beneficiaries and will ensure the delivery of the best e-commerce services to JAFZA companies. Free Zone trade in Dubai touched Dh227 billion in the first half of 2020, which makes 41 percent of the total trade value.”

Commenting on the same, Bin Damithan said, “E-commerce and retail are promising sectors at JAFZA. The sector grew 10.6 percent in the first half of 2020 making Dh37.6 billion in revenues. There is also 300 percent increase in demand for e-commerce services. To this end, we contact companies registered with us to help them take their business online.”

Vels & Consol Alliance to develop air cargo business on Europe-Australian route

Europe-based Wholesale by Vels and Australian firm Consol Alliance have entered into a strategic partnership to develop air cargo business on the Europe-Australia route.

Initially, the new alliance will operate weekly, trade-only unitized airfreight consolidations from Amsterdam Schiphol to major Australian airports.

The service frequency is expected to increase over the coming months, and import services from Australia to Europe are also on the agenda.

Receiving and build-up facilities have been set up by Wholesale by Vels, which launched last year, in Amsterdam, while Consol Alliance will use its own handling centers to break bulk in Sydney, Brisbane and Melbourne, for local release or transfer of cargo to its other regional stations in Adelaide and Fremantle.

The service caters for general cargo, dangerous goods and e-commerce. Discounts will be offered for dense cargo under 6,000 cu cm/kg in volume.

Rinaldo Vels said: “This is still a challenging time for forwarders trying to support their customers. Carrier rates are generally high, capacity is limited and service is often less than optimal.

“Working together, we are determined to restore quality and reliability, as well as value-for-money, to airfreight between Europe and Australia.”

HLT & Nallian to empower Ground Handling Agents with end-to-end solutions for digitization

Cargo Management Systems (CMS) provider Hermes Logistics Technologies (HLT) has teamed up with data sharing and connected cargo community specialist Nallian to empower Ground Handling Agents with an end-to-end solution to digitalize and streamline their landside management processes.

Nallian’s landside management applications will complement Hermes New Generation (NG) Ecosystem solutions, offering GHAs a paperless approach that provides end-to-end visibility and control across their supply chain.

“We are empowering the ground handler by joining our ecosystems together to give them better control and increased efficiency through better customer experience and superior functionality,” commented Yuval Baruch, chief executive officer, HLT.

“Nallian’s complementary offering leant itself to a partnership with Hermes and our collaboration will ensure a best-in-breed process with the technology to work for our customers.”

HLT customers will benefit from additional services including:

A Slot Booking App, which connects handlers, freight forwarders, and trucking companies to coordinate pick-ups and drop-offs, eliminating waiting times and flattening peaks and idle times.

A mobile Acceptance and Delivery App, which gives truck drivers easy access to the booked slots assigned to them, enabling the real-time registration of all actions during the pick-up or drop-off process.

HLT has a range of NG Apps as part of the Hermes NG Ecosystem including, NG Business Intelligence, and Datalakes, and NG Track&Trace, designed to maximize a GHA’s profit by giving access to data and supply chain visibility.

The NG Ecosystem product range enables GHAs to provide superior service through data sharing and tools to manage exception handling.

Nallian offers a suite of collaborative applications on top of its Open Data Sharing Platform that empowers both cargo communities and individual cargo actors, such as GHAs, to easily connect and share relevant data with their stakeholders, achieving unparalleled levels of efficiency and visibility in cross-company processes.

“Our collaboration will help ground handlers to enjoy the benefits of digitization in their extended processes, enabling them to do more with the same infrastructure,” said Jean Verheyen, chief executive officer, Nallian.

“Our apps have been built with and for air cargo stakeholders and this collaboration perfectly fits Nallian’s open approach, which aims at giving as many cargo actors as possible access to best-in-class solutions and the benefits of digitization.”

Cricket and pizza making for this global tech CEO

No one can deny the pandemic has accelerated the need for more digitalization and smart technologies in all sectors, including the air cargo industry.

And whether you’re a student, a bored housewife, a businessman, a glamorous celebrity, an employee, a chef, an athlete or business executives working for top companies, the internet is a lifeline we all turn to for information. And search engine Google is on top of our list.

Widely known for digital advertising technologies, a search engine, cloud computing, software and hardware, Google has been part of our lives since the late 1990s and it’s going to play an even bigger role in the future in the digital world and economy.

Sundar Pichai, the Chennai-born Indian-American CEO of Google and Alphabet Inc., Google’s multibillion parent company, said their top goal in the post-COVID era is to address the global digital divide by making sure that the benefits of technology reach even the farthest shores on the planet with about 1.7 billion people still no access to the internet.

“Growing up in India, I didn’t have much access to a computer, or a phone. To make a call, I had to wait in long lines to use a shared phone with everyone else,” Pichai shared while speaking at Singapore FinTech Festival held last December.

With his background, anything that promotes common good holds value. “So when our family finally got our first rotary phone, it changed our lives for the better, and it set me on a course to help bring technology to more people around the world.”

“Our goal for the post-Covid world is to ensure the benefits of technology can be shared, as widely and equitably as possible. If we can do that, 2020 will be remembered not as the end of the world, but the beginning of a world that works better for everyone,” noted Pichai who was tapped as Google’s CEO in 2015. He has been with the company since 2004.

An engineering graduate of India’s IIT Kharagpur, Pichai also has M.S. in materials science and engineering from Stanford University and an MBA from the Wharton School of the University of Pennsylvania.

As CEO of giant tech companies, Pichai, who has a knack with numbers, is highly regarded for his leadership skills, innovative ideas, mild temper and humility despite his enormous success in the corporate world.

Pichai says he played cricket in high school. And he still plays the sport when there’s an opportunity. And most recently, he picked up new skills from YouTube—making pizza.

“I made pizza last week from scratch, thanks to some YouTube (an Alphabet company) cooking video. It turned out okay,” Pichai told The Verge.

As he puts it, “A person who is happy is not because everything is right in his life, he is happy because his attitude towards everything in his life is right.”

Etihad, Hub71 to support the expansion of entrepreneurs innovating in Abu Dhabi

Etihad Airways, has signed a memorandum of understanding (MOU) with Hub71, Abu Dhabi’s global tech ecosystem, to support the expansion of entrepreneurs innovating in Abu Dhabi.

Following the MOU signing, Etihad will become the official airline partner of Hub71 which will offer more than 100 global startups within its tech community special rates and access to a dedicated booking platform to simplify their travel needs.

Mohammad Al Bulooki, Chief Operating Officer of Etihad Aviation Group said: “Etihad is looking forward to collaborating with Hub71, a flagship initiative of Ghadan 21, Abu Dhabi’s accelerator program. Together, both entities will play a vital role in supporting the Emirate’s development by investing in business, innovation and people. The MOU will support the government’s efforts in diversifying the economy by rewarding businesses who choose to develop innovative technologies in Abu Dhabi.”

Through the partnership, Etihad will tap into Hub71’s dynamic, fast-growing community and global network of partners to engage with its startup founders and entrepreneurs to launch innovation-driven activities. The airline will also explore mentorship opportunities, workshops, and community events.

“Technology and innovation play a key role in supporting the restart of the aviation industry during the Covid pandemic. Etihad looks forward to working with Hub71’s global pool of innovators to actively source, support and enable the rapid trial and production of promising solutions for the aviation industry,” added Al Bulooki.

Hanan Al Yafei, Chief Executive Officer of Hub71, said: “As the world prepares to open up, global connectivity will be vital for our growing community of startup founders to be in a position to export their innovative products and services to new markets.

“Our strategic partnership with Etihad Airways reflects the value we place in unlocking global opportunities from Abu Dhabi, and together we will help grow technology-driven businesses that can sustain the aviation industry with bold new ideas and innovations.”

The MOU was signed by Mohammad Al Bulooki, Chief Operating Officer of Etihad Aviation Group, and Hanan Harhara Al Yafei, Chief Executive Officer of Hub71.

Hub71’s tech community expanded from 35 startups to 102 in under two years, representing 191 per cent growth, and raised AED 185 million ($50.4 million) for startups in 2020. Abu Dhabi’s global tech ecosystem now includes startups from Israel, South Korea, Czech Republic and Nigeria, which joined in December 2020.

Wizz Air Abu Dhabi offers travelers easier way to manage bookings with automated refund process

Wizz Air Abu Dhabi has launched an automated refund process that handles cash conversion refund requests within just one week, offering travelers an easy way to manage their bookings.

The automated process means that for passengers whose flights have been cancelled, based on the option selected by the customer, Wizz Air Abu Dhabi will automatically refund 120% of the original fare in airline credit, or provide passengers the option to receive a 100% cash refund to their original payment method, or provide the chance to rebook for free. Passengers can easily request a refund, with just one click in their Wizz Air Abu Dhabi account at wizzair.com or by following the link received via email.

Kees Van Schaick, managing director of Wizz Air Abu Dhabi said, “We are committed to offering our customers the best experience when travelling with Wizz Air Abu Dhabi, which is why we have invested heavily in automating our refund process and are proud to be able to handle cash refund requests within just seven days. We are continuing to invest in new technologies across our business to make travelling with Wizz Air Abu Dhabi an exceptionally smooth and seamless experience.”

EgyptAir Tourism & Duty Free to leverage IBM Cloud capabilities to modernize back-end operations

EgyptAir Tourism and Duty Free have entered a new agreement with IBM to leverage IBM Cloud capabilities to scale and modernize EgyptAir Duty Free back-end operations and host its SAP Travel Retail System.

By adopting IBM Cloud, EgyptAir will also leverage IBM Watson Assistant, an AI virtual agent, to transform their travelers’ shopping experience.

With a hybrid cloud approach from IBM, EgyptAir Duty Free will migrate its ERP workload to IBM Cloud while staying connected and fully integrated with the Frequent-Flyer Program of EgyptAir Airlines and Star Alliance companies to provide shopping services from EgyptAir’s duty free outlets and attract new customers. For example, EgyptAir Duty Free customers will make all payment transactions through a secure point of sale that is part of IBM Cloud infrastructure.

As part of this engagement, IBM will provide technology and industry expertise to enhance the digital services for EgyptAir Duty-Free by using IBM Watson Assistant, running on IBM Cloud.  The AI virtual agent will provide EgyptAir Duty-Free customers with a differentiated shopping experience, enabling them to do online shopping through the Duty-Free website including orders placement, payment and delivery inside the plane, thus ensuring seamless retail experience.

Roshdy Zakaria said, “We have a long history of cooperation with IBM, as our partner for more than 30 years. The technology transformation journey has included many progressive steps to develop our operations, by leveraging IBM Cloud capabilities and providing our customers with a world-class personal experience”.

“The new technology will help us to reinvent our services and unlock an array of new choices for our customers “said Reda Metwally. “With IBM and SAP technology, we will modernize our operations through the supply chain to meet the evolving needs of our customers and suppliers.”

Gulf Air certified with level 4 NDC certification from IATA

Gulf Air was recently certified with level 4 of the New Distribution Capability (NDC) certification from the International Air Transport Association (IATA).

The NDC Certification Program, the only official industry certification program in support of the NDC standard, is provided by IATA to airlines upon completing a set of requirements and achieving a number of deliverables.

NDC is a key transformation project, launched by IATA to modernize airline distribution. The NDC Standard enhances the capability of communications between airlines and travel agents by enabling an airline to make sales offers directly in real time which will also permit airlines to define and price their products in multiple ways. It enables travel agents across the globe to access Gulf Air content such as images of the aircraft cabin, a list of ancillary products and a list of add-on services which were only available on the airline’s website before NDC activation.

Gulf Air’s chief commercial officer Vincent Coste said: “As part of our digital transformation, our focus continues to be on driving innovation and strengthening the value proposition through this downturn. With IATA’s NDC Level 4 certification, we are well-poised to improve the retailing and servicing experience across our global multi-channel distribution network, underpinned by a customer-centric approach. Apart from the anticipated cost savings, it will also give us the flexibility to create and fully control our inventory and content distribution across channels – from Online Travel Agencies, travel agents and Travel Management Companies (TMC) – providing easy access to rich content and differentiated, personalized and dynamic offers”.

Gulf Air’s Offer and Order Management solution is being powered by TPConnects, a leading technology company in Middle East and is based on Level 4 NDC Schema 18.2, which will enable Gulf Air to introduce content on NDC channels.

Icelandair to sell 2 aircraft to TAI, to be converted into freighters and leased back to the airline

Icelandair is selling two B767-300ER aircraft to Titan Aircraft Investments (TAI) that will be converted into freighters and leased back to the airline.

TAI, which is a joint venture between Atlas Air-owned Titan Aviation Holdings (TAH) and Bain Capital Credit, said that following conversion, the aircraft would be placed on long-term leases to Icelandair and managed by TAH.

Bogi Nils Bogason, president and chief executive of Icelandair Group, said: “With continued positive outlook for cargo operations post Covid, I am confident that the B767-300ER freighters will allow us to maximize new opportunities in our markets.

“These aircraft carry around 50% more freight than our current two B757-200 freighters and fit very well into our current fleet and network. Our aim is to increase the capacity in our markets, as well as strengthen Iceland as a hub for cargo, in a similar way as our passenger hub that provides attractive connections between continents.”

TAH president and chief executive Michael Steen said: “We are delighted to welcome Icelandair as a strategic customer and to support their long-term expansion plans. The 767-300ER is a very attractive medium-sized freighter and we are excited to manage these two aircraft on behalf of the joint venture. We currently own 21 767-300ER freighters, which provide us with extensive experience in this aircraft type.”

With the addition of these two B767s, TAI’s portfolio has grown to three aircraft, which also includes a 777-200 freighter.
Meanwhile, TAH’s fleet of aircraft includes B777, B767 and B737s and its customer base features Aerologic, Amazon, China Postal, DHL Express and FedEx, among others.

Latam Group to refocus towards Colombian market, following collapse of its Argentinian unit

Latam Airlines Group sees opportunities to refocus its attention and resources towards the Colombian market, following the collapse of its Argentinian unit last year.

Describing the closure of Latam Airlines Argentina in June 2020 as a “very hard decision”, Latam Airlines Group chief executive Roberto Alvo told a Capa Live event on March 10 that “a problem always brings an opportunity, and now we can refocus our resources where we believe we have a better chance of succeeding”.

That means the group – most of which is restructuring under US Chapter 11 protection – is “looking into the Colombian market, which is the second-largest market in the region”.

Having already positioned itself “as clearly the second operator in Colombia”, Latam Airlines still has a “great opportunity” in the country, Alvo stated.

Helpfully, the operator has “come to a very, very solid cost position” at its Bogota base, he said.

And expansion in Colombia – where flag carrier Avianca is also reorganizing under Chapter 11 protection – would complement the group’s Lima hub in neighboring Peru, Alvo noted.

“I think that the complement of our Lima hub with our operation in the northern part of the subcontinent is very clear,” he said, adding that “the geography Colombia has with respect to the rest of the network of Latam is just perfect”.

Indeed, Alvo believes that “the combination of [the hubs] we have today in Sao Paolo, Lima and Santiago, which allows us to connect South America with almost everywhere in the best of ways, is a huge benefit to any large deployment or operation that we could have in the northern part of the South American sub-continent”.

Latam Airlines Argentina’s flights to and from 12 domestic destinations ceased in June 2020.

While Argentina “has huge potential” and is “very underdeveloped” in airline connectivity terms,” we just couldn’t find the set of circumstances where we could believe that we could have a sustainable operation”, Alvo said.

His comments came the day after Latam Airlines Group announced a full-year net loss of US$4.55bn for 2020, on an operating loss of $1.67bn.

Revenue was $4.33bn, a decline of 58.4% year on year, on a 62% drop in passengers carried and a 13% fall in tons of cargo transported.

Operating expenses were 38% lower at $5.99bn.

Latam ended 2020 with $1.7bn in cash and $1.3bn in a fully committed and undrawn debtor-in-possession financing facility.

It had gained bankruptcy-court approval for its DIP financing proposal in September 2020, receiving shortly afterwards the first instalment from its loan of up to $2.45 billion.

With Latam Airlines Group’s reorganization under the Chapter 11 process still under way and expected to be finalized mid-year, Alvo said he has “no doubt that when the crisis passes, Latam will operate as a strengthened group”, despite expectations that the region will be relatively slow to emerge from the pandemic.