Despite pandemic, we introduced new initiatives for quick delivery and prepared for unprecedented situations ahead. We continue to invest and introduce solutions such as ULD Blockchain System, Ultra Track and Skid Fire Containment Bag to speed up processes, says Rajesh Menon, Regional Head, Cargo, Cathay Pacific.
Priyanshi Bana
In the Indian context, how did air cargo fare in 2021 in terms of tonnage?
The cargo industry has seen its share of challenges in the last two years. However, it has emerged as one of the critically vital and resilient industries that assists in keeping the global trade and international supply chain open. While Cathay Pacific Cargo has seen a similar trend in the last two years, despite the disruptions, we have witnessed healthy demand across our ports in India.
Throughout 2021, we deployed additional capacity to meet the demand that helped us achieve strong yields and high load factors. Besides transporting essential medical and humanitarian relief during the first half of the year, we saw significant tonnage and revenue growth in key product segments such as special products, dangerous goods, and pharma.
Moreover, the introduction of our new digital cargo-booking platform, Click & Ship, in India has enabled our customers to book their shipments in just three easy steps. Customers using the Click & Ship platform can view prices and capacity, book cargo shipments, and receive instant confirmation. The platform, which is highly transparent, cost-effective and fast, has been positively received by our customers.
What have been the challenges faced by the air cargo sector in the past two years of pandemic?
The aviation and air cargo industries have witnessed extraordinary circumstances after the outbreak of the pandemic. However, the airlines have been agile enough to adapt to the fast-evolving situation. While the cargo industry faced challenges such as limited handling support on the ground and constraints in cargo capacity, it also explored opportunities to expand its foothold in the supply chain and logistics market. The challenges in the supply chain, particularly due to the disruptions in ocean freight, resulted in the deliveries being delayed as well as a rise in overall costs. Despite the rise in cargo rates and capacity issues, manufacturers and customers turned to air cargo for quick delivery and speed in priority shipments.This not only helped the industry grow, but also helped prepare for multiple unprecedented situations ahead. Also, the industry was able to implement solutions that accommodated the market demand, utilised the current cargo capacity to the maximum and innovated their offerings to customers.
With cargo being one of the key contributors to our business, we are responding to the market demand and maximising our capacity, irrespective of the challenges faced in our hub, Hong Kong. Not only are we fast-tracking our digitalisation projects, but we are also launching multiple projects such as IATA ONE Record and Click & Ship that help accelerate processes. Additionally, we continue to invest in and introduce solutions such as the ULD Blockchain System, Ultra Track, and Skid Fire Containment Bag. The initiatives reflect our commitment to invest in solutions and technology that improve the quality of our services to customers, supporting our brand ambition to become the world’s most customer-centric air cargo service brand.
Do you think airlines still need to convert to preighters or freighters in order to survive?
Air cargo is critical for serving markets that demand speed and reliability for the transport of goods. While most countries are slowly moving towards normalcy, passenger travel has been slow to pick up, which has led to the constraints in capacity. Air cargo will remain a preferred solution for transporting higher-value goods that are time-sensitive and economically perishable. Additionally, freighters are well suited for transporting high-value goods as well as odd-sized shipments.
Cathay Pacific continues to operate 20 Boeing 747 freighters, cargo-only passenger flights, and preighters, allowing us to meet a wide range of cargo demand and product segments such as odd-size shipments, dangerous goods, and perishables.However, we will continue to study and analyse the fast-evolving scenarios and optimise our fleet deployment accordingly.
Cathay Pacific is committed to zero emissions by 2050. Kindly elaborate on the plans?
The Cathay Pacific Group has committed to achieving net-zero carbon emissions by 2050. We recognise that our industry must decarbonise in order to mitigate the impact of climate change, and as one of the leaders in the industry, we aspire to be one of the chief contributors to the global efforts. Cathay Pacific, along with other airlines and Boston Consulting Group, together, has formed the Aviation Climate Taskforce (ACT), a new non-profit organisation founded to tackle the challenge of eliminating carbon emissions in aviation through innovation and collaboration.
We have led the way in decarbonisation efforts over the years, becoming the first airline to invest in Sustainable Aviation Fuel (SAF) developer Fulcrum Bioenergy in 2014 and recently committing to using SAF for 10% of total fuel consumption by 2030. This cross-sector partnership will contribute to the airline’s ongoing decarbonisation efforts and commitment to reaching net-zero carbon emissions by 2050.
Additionally, we have set up a dedicated cross-functional Climate Actions Steering Group and have developed an approach to tackle climate change. This approach extends from managing our own operations to working with industry bodies and helping our customers to reduce their carbon footprint from flying.
We have further identified five core areas of our climate change strategy—Carbon Offsetting and Reduction, Scheme for International Aviation (CORSIA), Sustainable Aviation Fuel, Carbon Offset Programme, Aircraft emissions, and Ground emissions, and have actively been understanding and enhancing our existing efforts in all these areas.
