1. What are the main drivers of air cargo growth at RFD in 2013?
If you take a look at the international cargo market during the past decade, it is hard not to see the reflection of the ups and downs of the world economies. The next year or so still looks somewhat turbulent from my perspective.
During difficult periods in our industry, all carriers seek to cut costs. The fact that RFD is so close to Chicago O’Hare International Airport and has the facilities and the capabilities to handle any aircraft flying today, combined with huge savings, should prompt senior management to look closely at our airport.
Part of our strategy is to engage with the air carriers and the airfreight forwarders in proving the viability of RFD. We have proven the model and it works exceptionally well, with the deliveries of inbound cargo landing at RFD reaching the forwarder in ORD two to three hours quicker than the flights landing directly in ORD.
2. What advantages do smaller, alternative airports offer the cargo sector?
That depends on the airport. In most cases there will be serious cost reductions and less congestion, which is always good. However, it is not enough to have all the facilities and capabilities to handle the aircraft. The airport must be located very conveniently to where the customer base is.
The primary issue for air carriers is that they are close to their customer base. Another very important issue is access to the informal networks of road feeder and other services, which feed the airport in question. We realized that the forwarder does not want any additional costs such as shuttles between the two airports.
My point is that well located alternative airports can increase efficiency and customer service while reducing costs substantially and continuously to air cargo carriers.
3. What is RFD’s strategy regarding cargo test flights?
Bring ‘em! Really, bring your test flights to RFD. Try it. We offer great incentives to those interested. No landing fees, no parking fees for scheduled carriers landing with cargo.
Each operation adds to our database of times and numbers, which adds to our creditability as a major Midwestern cargo hub. Our board of commissioners continues to invest in the capabilities of our airport. We have recently completed runway improvements. We will begin this year to improve road access to the airport. We want all these assets to be used. We encourage all carriers to give us a try.
4. What are your observations on the changing demands of the air cargo industry?
You are well aware that no one flies freight within a 500 mile radius of a major airport these days. Road feeder services have taken over that role. They are more efficient and a lot less expensive. Much inefficiency has been wrung out of the logistic system over the years resulting in reduced costs and quicker time to market. Those of us involved in the industry over the years are finding it more difficult to find areas to squeeze. Nevertheless the demands from the customer for ever-more effective ways to move their goods will not cease. To some degree that might leave air cargo vulnerable. Higher speed for ocean cargo may begin to eat into some traditional air cargo products such as electronics or possibly even Pharma.
5. What are the industry’s biggest challenges moving forward?
We serve industries that strive for agility and high speed direction changes. Yet we seem to be slow or reluctant to change ourselves. Despite major efforts on the part of IATA, TIACA, GACAG and others, we remain mired in paper as an example. I know it is changing, but we are too slow in this high speed world. I have heard the following implications from quite a few of my airline colleagues, “We absolutely see the value of RFD. We do not want to be the first one to make the move. If someone else goes we almost certainly will follow.” To me, the reluctance to change until change is forced upon us seems to be a barrier to survival. I am not speaking of the industry in general but of some of the actors in it.
1. What are the main drivers of air cargo growth at RFD in 2013?
If you take a look at the international cargo market during the past decade, it is hard not to see the reflection of the ups and downs of the world economies. The next year or so still looks somewhat turbulent from my perspective.
During difficult periods in our industry, all carriers seek to cut costs. The fact that RFD is so close to Chicago O’Hare International Airport and has the facilities and the capabilities to handle any aircraft flying today, combined with huge savings, should prompt senior management to look closely at our airport.
Part of our strategy is to engage with the air carriers and the airfreight forwarders in proving the viability of RFD. We have proven the model and it works exceptionally well, with the deliveries of inbound cargo landing at RFD reaching the forwarder in ORD two to three hours quicker than the flights landing directly in ORD.
2. What advantages do smaller, alternative airports offer the cargo sector?
That depends on the airport. In most cases there will be serious cost reductions and less congestion, which is always good. However, it is not enough to have all the facilities and capabilities to handle the aircraft. The airport must be located very conveniently to where the customer base is.
The primary issue for air carriers is that they are close to their customer base. Another very important issue is access to the informal networks of road feeder and other services, which feed the airport in question. We realized that the forwarder does not want any additional costs such as shuttles between the two airports.
My point is that well located alternative airports can increase efficiency and customer service while reducing costs substantially and continuously to air cargo carriers.
3. What is RFD’s strategy regarding cargo test flights?
Bring ‘em! Really, bring your test flights to RFD. Try it. We offer great incentives to those interested. No landing fees, no parking fees for scheduled carriers landing with cargo.
Each operation adds to our database of times and numbers, which adds to our creditability as a major Midwestern cargo hub. Our board of commissioners continues to invest in the capabilities of our airport. We have recently completed runway improvements. We will begin this year to improve road access to the airport. We want all these assets to be used. We encourage all carriers to give us a try.
4. What are your observations on the changing demands of the air cargo industry?
You are well aware that no one flies freight within a 500 mile radius of a major airport these days. Road feeder services have taken over that role. They are more efficient and a lot less expensive. Much inefficiency has been wrung out of the logistic system over the years resulting in reduced costs and quicker time to market. Those of us involved in the industry over the years are finding it more difficult to find areas to squeeze. Nevertheless the demands from the customer for ever-more effective ways to move their goods will not cease. To some degree that might leave air cargo vulnerable. Higher speed for ocean cargo may begin to eat into some traditional air cargo products such as electronics or possibly even Pharma.
5. What are the industry’s biggest challenges moving forward?
We serve industries that strive for agility and high speed direction changes. Yet we seem to be slow or reluctant to change ourselves. Despite major efforts on the part of IATA, TIACA, GACAG and others, we remain mired in paper as an example. I know it is changing, but we are too slow in this high speed world. I have heard the following implications from quite a few of my airline colleagues, “We absolutely see the value of RFD. We do not want to be the first one to make the move. If someone else goes we almost certainly will follow.” To me, the reluctance to change until change is forced upon us seems to be a barrier to survival. I am not speaking of the industry in general but of some of the actors in it.