Here’s an in-depth interview with Martin Drew, senior vice president global sales and cargo at Etihad Aviation Group, showing us the ins and outs of the company’s operations to give us a bird’s-eye view of what Abu Dhabi’s main carrier is doing to become the air cargo partner of choice.

Can you describe your fleet and how it meets your clients’ requirements? Are you seeing more demand for certain types of shipments?

Our current fleet comprises five Boeing 777 freighters, seven Boeing 777s, 40 Boeing 787s, 14 Airbus A320s and five Airbus A350s, with more 787s joining the fleet in 2022. To expand our freighter fleet and ensure we can continue to meet our customers’ capacity requirements, Etihad Airways has firmed up its order with Airbus for seven new-generation A350F.

The Airbus 350 freighters will upgrade Etihad’s freight capacity by deploying the most efficient cargo aircraft available in the market. With a 109-tonne payload capability, the aircraft features a large main deck cargo door, with its fuselage length and capacity optimised around the industry’s standard pallets and containers. Additional capacity through the complete conversion of Boeing 777s is another opportunity that Etihad Cargo will explore in partnership with Etihad Engineering.

In terms of demand for certain types of shipments, Etihad Cargo has witnessed growth across several of its premium products, which we have achieved through the introduction of new features and solutions, enabling Etihad Cargo to provide best-in-class services for the safe and efficient transportation of cargo. For example, the performance of Etihad Cargo’s award-winning, CEIV Pharma-certified, dedicated pharmaceutical shipment solution, PharmaLife, increased by 46 percent in the first six months of 2022.

Etihad Cargo’s CEIV Live Animals-certified products dedicated to transporting live animals, LiveAnimals and SkyStables, have also witnessed year-on-year performance increases. We have achieved a 52 percent increase in the movement of live animals, and the performance of SkyStables increased by 137 percent compared to H1 2021. We continue to provide safe and secure transportation solutions for Etihad Cargo’s customers’ high-value cargo. Compared to H1 2021, revenue from FlyCulture, a tailored service for transporting valuable paintings, sculptures and musical instruments, increased by 128 percent.

You recently launched a new cargo service to Guangzhou. What are the new developments that are having a positive impact on your operations on this route?

In terms of regions that show the most growth potential, Asia continues to be our largest market, accounting for 70 percent of our overall operations. China alone contributes over 20 percent of Etihad Cargo’s total operations, and adding 30 tonnes of capacity via direct flights to Guangzhou further demonstrates our commitment to China and the Asian market. With this latest addition to our network, Etihad has become the first international airline to operate long-haul passenger and cargo services to the top three Chinese gateways—Shanghai, Beijing and Guangzhou—since the start of the pandemic.

In addition to adding destinations and frequency to Etihad Cargo’s network across China, Etihad Cargo has launched new solutions and features to fully meet our customers’ needs in the region. In H1 2022, Etihad Cargo launched a Mandarin version of its website and booking portal, becoming the first Middle Eastern airline to launch a dedicated Mandarin website and cementing our strategic footprint in China. The Mandarin website and booking portal provide key features for our customers in China, including information about our products, station capabilities, feedback and claims. Since the launch of our new user-friendly platform, we have achieved an increase in usage and adoption. In H1 2022, 99.2 percent of all China’s bookings were made via the online portal, up from 94 percent at the end of 2021.

How has the pandemic changed the influence of cargo towards the airline’s overall direction in the near term and long haul?
The pandemic demonstrated the importance of cargo operations. With passenger flights grounded because of global travel restrictions, Etihad Cargo became the lifeline of the airline in addition to playing a major role in the UAE government aid programme as the national carrier. While Etihad remains predominantly a passenger airline, Etihad Cargo continues to have a prominent position in the strategy and when making choices related to routes and aircraft deployed to destinations.

Based on your conversations with customers, what stands out as a key improvement when it comes to digitisation that they would like to see?
We continue to work closely with our customers to understand their requirements, and we have listened to what they want in terms of technology and digital solutions. Ultimately, our priority is to be the air cargo partner of choice, and we are achieving that by ensuring we are the easiest carrier to do business with.

Etihad Cargo committed to its digitalisation journey back in 2018, and we have invested in developing and launching features that have improved the customer experience. For example, we launched an enhanced booking portal to provide a quicker, easier and more intuitive process for our customers. Following the introduction of new updates to our online booking portal, including the enhanced look-to-book feature and the addition of a dynamic newsfeed and personalized dashboards, the booking process is now more intuitive for our customers, resulting in higher quality booking data and a reduced need for booking modifications. As a result, usage of the online booking portal has surged, with 57 percent more bookings made via the portal.

Etihad Cargo has also invested in AI solutions that will boost the capacity of flights. Additionally, we have continued to invest in and support efforts toward automated reporting and real-time information, forming and strengthening partnerships with several ‘smart’ industry initiatives, including One Record, Cargo iQ and the IATA e-AWB. In H1 2022, Etihad Cargo achieved 81 percent e-AWB adoption, benefiting our customers and accelerating our journey to paperless airline operations.

Utilizing technology to ensure the cargo Etihad Cargo transports is fully traceable and trackable has enabled us to simplify interactions with our customers and continue to provide them with a seamless end-to-end experience during all touchpoints throughout their cargo’s journey.

Where does the company stand on sustainability and inclusivity?
Etihad Cargo has built a culture that fully encompasses diversity and inclusivity. We ensure equality throughout the hiring process, and every team member has access to the same world-class learning, development and training opportunities to help them progress in their careers.

In terms of sustainability, Etihad Cargo has, in full alignment with Etihad Aviation Group’s sustainability plans, pledged to achieve net-zero carbon emissions by 2050. We recently became the first Middle Eastern carrier to join TIANA’s BlueSky sustainability verification programme. This demonstrates our ongoing and firm commitment to sustainability and willingness to invest in providing more sustainable solutions for our customers and the broader cargo sector. Becoming one of the first participants was a natural step in our aim to achieve net carbon emissions by 2050. The first phase assessment will enable Etihad Cargo to more effectively measure our performance and track our sustainability progress as we continue our sustainability journey. We hope to see other carriers join the programme in the coming months, so we can collectively start to make air cargo more sustainable.

Furthermore, we have partnered with IATA to trial a CO2 emissions calculation tool developed explicitly for cargo flights. This is another positive step in facilitating the use of real data to enable further improvement within the sector. Together, we will use the calculator to manage and report on sustainability progress to provide the entire value chain, including shippers, forwarders, investors and regulators, with reliable and trustworthy data. Over the three-month trial, Etihad Cargo will track flights and collect actual data on fuel burn, load factors and other key variables to develop an accurate calculator. This partnership demonstrates Etihad Cargo’s strong commitment to innovation, and we actively seek out and facilitate the development, trials and launch of sustainable solutions for its customers and partners through the adoption of state-of-the-art technology and digital solutions.

These partnerships build on the sustainability progress we have already made, which has included replacing 3,000 containers from our original aluminum unit load device (ULD) fleet with a more environmentally friendly, lightweight version. The utilization of these lighter ULDs can provide a weight saving of over 200 kilograms on an average wide-bodied freighter flight, which has lowered fuel consumption and CO2 solutions.

Etihad Cargo has also entered into a memorandum of understanding (MOU) with B Medical Systems to develop and launch the world’s first airline-specific passive temperature-controlled container. The containers, which utilize passive cooling technology, retain temperatures from -80 to 25 degrees Celsius for up to five days without requiring an external power source and offer load capabilities ranging from two to 1,500 liters. These units will significantly reduce carbon emissions by reducing the power needed to maintain the temperature for temperature-sensitive pharmaceutical shipments. Trials of the sustainable container units will commence shortly, and a commercial launch date will be announced following the successful completion of the trials.

Which issues do you foresee will bring headwinds for air cargo in the near term? How prepared is the airline when it comes to unforeseen challenges?
In the near term, the air cargo industry is facing a number of challenges, including high fuel prices and supply shortages. Although border restrictions are easing, a new wave of lockdowns and preventative measures being taken in China as part of the country’s zero-COVID policy will need to be monitored carefully.

At Etihad Cargo, we have worked together with stakeholders to manage the circumstances dynamically, focusing on providing capacity on key routes and expanding our network and operations. We have concentrated on reframing these challenges as opportunities to enhance and improve our products and services, utilizing a proactive and customer-centric approach to dynamically and agility manage these challenges. We have maintained very close relationships with our customers to ensure we can provide innovative solutions to their capacity challenges and can meet any unforeseen challenges in the future.