Jettainer, a dedicated solutions provider for all ULD-related matters, is in the midst of conducting a large-scale test of lightweight containers – both in the field and laboratory. The company will also be introducing a new intuitive reporting feature to its ULD management IT application “Jettware” and continue to work on a host of refinements and new technology applications. Wong Joon San reports.

According to Peter Ahnert, Jettainer’s director business development, corporate headquarters, the company’s initiatives are aimed at reducing the total cost of ULD ownership/ usage through improved efficiency, increased asset utilisation and lower operating costs.

Regarding Jettainer’s business approach on how it guarantees customers’ cost savings each year, Ahnert said: “We do this by increased asset utilisation through a focus on managing ULDs and by cross utilisation of ULDs across several carriers, leveraging investments into technology over a larger group of users and ULDs, and continuous innovation.”

Asked about the percentage cost reductions customers are seeing through the projects that it has carried out so far,Ahnert said it differed from carrier to carrier, but the general aim was to cutcosts by between 10 to 20 per cent oftotal cost, including all aspects rangingfrom asset ownership and repair to ITand human resources.

ULD demand to rocket
As the air cargo market is expected to more than triple by 2020, this will significantly increase ULDs demand. At the same time, the pressure on every airline to reduce costs will not ease at anytime soon.

Jettainer’s 2005 survey indicates that half of the world’s airlines intend to outsource ULD management by 2010, but not many of them are doing it now. Instead they are continuing to manage ULDs themselves, and their struggles support the case for outsourcing.

According to Jettainer, there are three main reasons to outsource ULD management – flexibility, visibility and cost savings. ULDs are an important part of airlines’ value chain, but they do not always get the attention they deserve.

When using Jettainer’s services, an airline can have an expert team focused solely on its ULDs and use the money, time and attention saved through outsourcing ULD management solution on activities of strategic value to a company.

Jettainer-managed ULDs
Ahnert said that Jettainer had 70,000 ULDs under its management and last year, its business had increased by 40 per cent versus the same period in 2007. Although the financial crisis has hurt the air cargo business, he said the company still managed the same number of ULDs although utilisation had decreased on average by less than 10 per cent depending on the type of ULD. Jettainer’s main customers include Air Astana, Air One, Condor, Lufthansa Cargo, Lufthansa Cargo Charter, Swiss International Air Lines, United Airlines and US Airways. Ahnert said that Jettainer would stay on with its niche in the commercial aviation business, although the company had plenty of opportunities and room for further improvement around in this segment. The company will also continue to invest into the ULD management business, he said.

While many companies are laying off staff, Jettainer does not plan to lay off any staff, and despite the economic crisis is still doing “very well”, said Ahnert.

IMG35

Short- to long-term strategy
Asked about Jettainer’s strategic direction, Ahnert said in the short-term the company is helping its customer airlines to weather the storm by further increasing flexibility and using the opportunities to generate a stronger interest in the company’s services.

In the mid- to long-term, Jettainer will continue to build its position as the largest ULD outsourcing company and will continue to be a technology and innovation leader.

According to IATA, global airlines are expected to post losses of US$9 billion this year and register an unprecedented 15 per cent revenue drop, shrinking by US$80 billion to US$448 billion.

Ahnert said despite IATA’s forecast, Jettainer recorded the decrease in the amount of ULDs required has been far less than the revenue drop experienced by airlines. “Revenue drop is also sharper than reduction in tonnage as yield has come under even stronger pressure than before,” he said.

While Jettainer has no Asian customers, Ahnert noted that the majority of its customer airlines had an extensive presence at major Asian airports. “In the mid-term, we do see Asian airlines coming onboard as the principal market for outsourcing services in Asia matures,” he said.

He added that Jettainer does not own any temperature controlled ULDs, and therefore does not provide ULD management services for the pharma industry that relies on temperature controlled ULDs.

However, Jettainer has “developed a cool container management tool that helps its customers to manage the logistics of temperature controlled ULDs better by integrating capacity management and ULD management applications as well as providing workflow support,” he said.