< PreviousUPDATE | JULY-AUGUST 2020 10JULY-AUGUST 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com DP World, a leading enabler of global trade, has completed the early stages of integration with TradeLens a blockchain-based digital container logistics platform, jointly developed by A.P. Moller - Maersk and IBM. The collaboration will help accelerate the digitisation of global supply chains as DP World aims to connect all its 82 marine and inland container terminals, as well as feeder companies and logistics divisions with TradeLens. In 2019 DP World’s terminals handled 71.2 million TEU (twenty-foot equivalent units) containers from around 70,000 vessels. TradeLens brings together data from the entire global supply chain ecosystem including shippers, port operators and shipping lines. It also aims to modernise manual and paper-based documents, replacing them with blockchain enabled digital solutions. For DP World the data from its integration with TradeLens DP World and TradeLens partner to digitise global supply chains In 2019 DP World’s terminals handled 71.2 million TEU (twenty-foot equivalent units) containers from around 70,000 vessels. [Representation image The collaboration will help improve operational effi ciency with earlier visibility of container fl ows across multiple carriers will improve operational efficiency with earlier visibility of container flows across multiple carriers. Such visibility includes confirmation of the transport modality that follows the port stay for each container, which in heavy transhipment or rail ports enable better yard planning. It will also expand the capabilities of DP World’s digital platforms created to move online the management of logistics. The DF Alliance, SeaRates, LandRates and AirRates enable shippers to move cargo to and from anywhere at the click of a mouse, across DP World’s network and beyond. Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Office of DP World said: “Our decision to team up with TradeLens is driven by our vision for intelligent logistics, reducing costs and creating value. DP World is working to deliver integrated supply chain solutions to cargo owners, backed by our global network of ports, terminals, economic zones and inland operations. By working with TradeLens we will accelerate the digitisation of global trade. Modernising the processes by which logistics operate is critical to building more robust and more efficient supply chains which will help economic development and generate more prosperity.” “At its core the TradeLens business model is an open and neutral platform to spur collaboration and digitisation between all parties in the supply chain ecosystem. We are excited to welcome DP Sharp drop in air freight demand in the Middle East Cargo demand in the Middle East fell sharply in April as global air freight demand suf- fered its biggest-ever drop amid the coronavirus crunch. Middle Eastern carriers reported a de- cline of 36.2% year-on-year in April, signifi cantly worse than a 14.1% fall in March, and worse than the global average of 27.7%. “There is a severe capacity crunch in air cargo,” said Al- exandre de Juniac, CEO of the International Air Transport As- sociation (IATA), which released the data on global air freight markets. Even though demand plummeted, there was still in- sufficient capacity in April to meet demand as a result of the loss of belly cargo operations on passenger aircraft. “Capacity was down 42% be- cause of the sharp cuts in passen- ger operations which also carry cargo. The result is damaging global supply chains with longer Cargo demand, measured in cargo tonne kilometers, falls more than 36% in Middle East region amid sharpest ever recorded fall in global demand World and eagerly await the creation of new potential ways of working for shippers and consignees in global trade. With 4 of the 5 largest global port operators actively engaged with TradeLens, the coverage of the ecosystem continues to expand rapidly,” Mike White, CEO GTD Solutions and Head of TradeLens DP World has already connected Cochin Port (India) with the TradeLens platform via API technology. shipping times and higher costs,” said Mr de Juniac. “Airlines are deploying as much capacity as possible, including special charter op- erations and the temporary use of passenger cabins for cargo. Governments need to continue to ensure that vital supply lines remain open and efficient. “While many have responded with speed and clarity to facilitate the movement of cargo, govern- ment red-tape—particularly in Africa and Latin America—is preventing the industry from flexibly deploying aircraft to meet the demands of the pandemic and the global economy.” African airlines meanwhile were less affected by disruptions from Covid-19 than other regions in April. They saw year-on-year international CTKs fall by 20.9%. The small Africa-Asia market was the most resilient route in April, down only 1%. International ca- pacity decreased 36.6%.JULY-AUGUST 2020 | UPDATE 11LOGISTICS MIDDLE EAST | JULY-AUGUST 2020www.logisticsmiddleeast.com Emirates Post has launched ‘epostcard’ – a digital postcard ap- plication that will allow users to create customised physical postcards for friends, families, colleagues, and stakeholders. The ‘epostcards’ app, which can be downloaded from iOS App Store and Google Play Store, will allow individuals to design bespoke postcards to send to friends and family and for com- panies to send to employees and stakeholders. The app allows users to tailor images and cre- ate copy, in addition to adding videos that will be uploaded and accessible via a QR code on the physical postcard. Based on individual specifications, Emir- ates Post will print the physical postcards and arrange for a con- tactless delivery to the intended recipients. “With a network that spans across the entire UAE, we aim to enable communities to reach out and stay connected; some- thing that has never been more important today. This easy to use digital app will offer in- dividuals and companies the opportunity to customize their postcards online, with personal- ised images and videos, and send physical cards of greetings and best wishes,” stated HE Abdulla Mohammed Al Ashram, Group CEO of Emirates Post Group Company. “It is also an organic step for us as an organization. Customi- sation is critical for a brand or Emirates Post introduces digital app to help users stay connected The ‘epostcards’ app will allow individuals to design bespoke postcards. Digital app to create customised postcards with personalised image, copy and video organisation to stand out and as Emirates Post evolves, we are exploring opportunities to create products that combine digital technology with post and that tailor to the needs and wants of our customers,” he added. Emirates Post, which has rolled out the new service during Ramadan, hopes individuals and organisations will start by using this innovative, new service to create tailored Eid wishes for their friends, families, and stake- holders. Starting at AED 20 per postcard, the service is currently available for delivery within the UAE and will be subsequently rolled out for delivery across international markets. ZonesCorp, the largest operator of purpose- built economic zones in the UAE, announced the opening of a factory that produces liquefi ed carbon dioxide, which is widely used in several food and manufacturing industries. Launched by Al Ghaith Industries within the Industrial City of Abu Dhabi I (ICAD I), the new facility covers a total area of 100,000 square metres and has a total production capacity of 60 tonnes per day. Using the latest eco-friendly technologies, the first of its kind facility in the UAE captures harmful gases from the manufacturing process and recycles them into a clean and eco-friendly product. Commenting on the latest facility, His Excellency Mohamed Al Khadar Al Ahmed, Acting Director-General of ZonesCorp, said: “We are proud to host an increasing number of industrial establishments that prioritise their compliance to the highest environmental standards and contribute significantly to the industrial GDP growth of Abu Dhabi Emirate. Such efforts make our economic zones more attractive to all types of investment activities, and further boost our status as the largest operator of economic zones in the emirate.” Al Khadar added: “ZonesCorp’s advanced infrastructure, strategic location, integrated facilities, services and connectivity with neighbouring markets enable the companies and factories operating from our economic zones to increase the efficiency of their production and expand business presence in the region.” Almamoon Al-baadani, General Manager, Al Ghaith Industries, said: “We are pleased to open our latest liquefied carbon dioxide plant within ICAD-I through our strategic partnership with ZonesCorp, which has materialised in a total investment of AED300 million. In addition to reiterating our active role in promoting Abu Dhabi’s leading position as an industrial hub, the facility demonstrates our continued commitment to promoting excellence in customer relations by delivering best-in-class services and products.” Fatima Al Hammadi, director, Industrial Zones, ZonesCorp, said: “The opening of Al Ghaith Liquefied Carbon Dioxide Factory marks an important addition to the quality and range of industrial products manufactured within our zones. The facility also supports our strategic plans to attract more industrial investors and offer innovative products and services that cater to the evolving needs of the industrial sector that continues to drive economic diversification in the emirate.” The new liquefied carbon dioxide production plant uses the latest methods to capture carbon dioxide released from the production of chlorine and alkali in different stages of manufacturing. The facility helps minimise environmentally harmful carbon emissions which are the main cause of climate change and global warming. Using the latest equipment, the end product is purified to a concentration level of 99.9%, making it clean and eco- friendly to be used in beverage, oil, water treatment and many other manufacturing industries. Unlike the old technologies that used geoengineering and bioenergy to treat and store carbon emissions, limiting its commercial utilisation, the state- of-the-art technology used by Al Ghaith Industries converts captured harmful gases into a useful and safe product. New Al Ghaith factory to recycle 60 tonnes of CO2 daily 100,000m2 liquid CO2 plant hosted by ZonesCorp to use the latest technology to capture and recycle industrial emissionEXPERT CORNER 12JULY-AUGUST 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com The Covid-19 pandemic has halted most economic activity worldwide, and logistics service providers (LSPs) in the GCC must now contend with major supply-chain disruptions, unpredictable market dynamics, and a looming global recession. For the first three months of 2020, according to Thomson Reuters, the total shareholder return for leading global LSPs fell to -15%, and -25% for those within the GCC. To emerge from this crisis, LSPs in the region need a disciplined and tactical approach to stabilize their business amid the crisis, along with longer-term strategic measures to prepare for the coming recovery. In the short term, LSP leadership teams need to become highly agile and nimble in their operations, enabling them to respond effectively to rapidly changing marketing conditions. For example, given increased volatility in freight rates, LSPs should look at real- time supply and demand to maximize revenue and margins. They should also agree new up-front and retroactive volume discounts with under utilised carriers. Internally, LSPs need to drive costs down to the bare minimum— reducing discretionary spending, road haulage expenses, and deploying off-the-shelf technology solutions to improve business processes. Similarly, LSPs must be attuned to the viability of their customers and carriers alike—many of which could face significant financial challenges. The expression “cash is king” applies. Accordingly, LSPs should adjust their payment requirements, shortening terms and / or requiring cash for some customers, and choosing not to work with others. Longer-term, LSPs will need to develop and execute new strategies in the post-Covid-19 world. Such strategies should contain six critical measures. Grow beyond local operations. Many LSPs in the region operate as local agents, limited to handling the final stage of a shipment into the GCC. To capture more value, they need to expand and Dr Ulrich Koegler and James Thomas, partners, Maha Raad, principal and Susie Almasi, executive advisor, with Strategy & Middle East, part of the PwC network, provide their idea of a recovery plan THE SIX STEPS TO RECOVERY Logistics service providers need to contend with major disruptions but need to arm themselves with a long-term recovery strategy. Chuttersnap / UnsplashEXPERT CORNER 13LOGISTICS MIDDLE EAST | JULY-AUGUST 2020www.logisticsmiddleeast.com There is likely to be a shake-out among LSPs globally and in the region, with a signifi cant number of good assets and businesses for sale. build capabilities to handle the entire process for global inbound transport, from departure to destination. Seamless, best-in-class supply chain services internationally. Cross-border processes in the GCC often are still cumbersome and slow. LSPs, with their local knowledge and access, can differentiate themselves by how efficiently they can navigate these processes — and, consequently, how much they can reduce transit times. A key aspect of offering superlative service is building deep relationships with administrations in the GCC and ports of entry, to become the most trusted and renowned cross-border specialist actively requested by the shipping clientele. Identify the most promising trade lanes and markets. LSPs should analyze shipping volumes to ensure they are operating in the trade lanes and origination markets that will diversify and increase the resilience of GCC supply chains. More specifically, LSPs need to become relevant players on these trade lanes to generate the best rates, up-front and retroactive discounts from carriers. This will be challenging given the scale of the Asia- Europe trade lane on which the GCC sits. To succeed, LSPs will need to build their presence at both ends of the trade lane. Work with governments to improve supply chain resilience. During and after the crisis, LSPs should approach GCC governments proactively and offer their expertise in making supply chains significantly more resilient. In some cases, that applies to governments procuring their own critical supplies. In others, the goal is to support governments in reshaping processes and infrastructure to ensure that policymakers can fulfil societal missions such as ensuring a safe supply of food, medicine, and other important goods. Strategise and identify M&A opportunities. As in the period following the financial crisis of 2008-09, there is likely to be a shake-out among LSPs globally and in the region, with a significant number of good assets and businesses for sale at distressed valuations. For strong, often cash-rich GCC players, this is the time to identify attractive acquisition targets to build up skills and capabilities, enter attractive target markets and trade lanes, increase volumes and scale, and create value. Heavily invest in technology. GCC LSPs have a notoriously low level of automation and technology. It is high time for them to leap-frog and strategically defend their regional position, or risk becoming even more marginalised and commoditised. Successful technology-based firms, such Transporeon and FreightHub, have proven recently how to bring innovative approaches to the industry. Now is the time for GCC LSPs to apply such technology strategies and learn from such firms. LSPs in the GCC region must focus their efforts on a set of measures to improve their market position, during and after the Covid-19 crisis. Strong LSPs that remain resolute and disciplined in their response will be best positioned to survive and thrive on the strong consumption fundamentals of the GCC. Tyler Franta / UnsplashNEWS ANALYSIS | EMIRATES 14JULY-AUGUST 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Emirates airline turned a profi t of $288 million in its last fi nancial year, a 21% improvement on 2018-19, and its 32nd consecutive year of profi ts. But the ef- fects of the ongoing Covid-19 crisis are beginning to show with chairman HH Sheikh Ahmed bin Saeed Al Maktoum predicting that the pandemic will “have a huge impact” on the airline’s 2020-21 performance. Revenues at the airline slipped by 6% in 2019-20, down to $25 billion compared to the previous year, partly due to the temporary runway closure at Dubai International and because of the suspension of flights in March caused by the Covid-19 crisis. Sheikh Ahmed said: “For the first 11 months of 2019-20, Emirates and dnata were performing strongly, and we were on track to deliver against our business targets. However, from mid-Febru- ary things changed rapidly as the Covid-19 pan- demic swept across the world, causing a sudden and tremendous drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions.” In 2019-20, the group collectively invested $3.2 billion in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and employee initiatives, a decrease following last year’s record investment spend of $3.9 billion. At the 2019 Dubai Air Show in November, Emirates placed a $16 billion order for 50 A350 XWBs, and an $8.8 billion order for 30 Boeing 787 Dreamliner aircraft. With first deliver- ies expected in 2023, these new aircraft will add to Emirates’ current fleet mix, and provide deployment flexibility within its long-haul hub model. Sheikh Ahmed said: “The Covid-19 pandemic will have a huge impact on our 2020-21 performance, with Emirates’ passenger operations temporarily suspended since 25 March, and dnata’s businesses similarly affected by the drying up of flight traffic and travel demand all around the world. We continue to take aggressive cost man- agement measures, and other necessary steps to safeguard our business, while planning for business resumption. We expect it will take 18 months at least, before travel demand returns to a semblance of normality. In the meantime, we are actively engaging with regulators and relevant stakeholders, as they work to define standards to ensure the health and safety of travellers and Emirates scores 32nd consecutive year of profit with 21% spike but warns Covid-19 will have a significant impact on its 2020-21 performance. A YEAR AT A YEAR AT EMIRATES FA ST FACT 21% INCREASE IN AIRLINE PROFITSEMIRATES | NEWS ANALYSIS 15LOGISTICS MIDDLE EAST | JULY-AUGUST 2020www.logisticsmiddleeast.com operators in a post-pandemic world. Emirates and dnata stand to reactivate our operations to serve our customers, as soon as circumstances allow.” Emirates’ total passenger and cargo capacity declined by 8% to 58.6 billion ATKMs at the end of 2019-20, due to the DXB runway closure capacity restrictions and Covid-19 impact with a complete suspension of passenger services as directed by the UAE government during March 2020. Emirates received six new aircraft during the financial year, all A380s. During 2019-20, Emirates phased out six older aircraft comprising of four Boeing 777-300ERs, its last 777-300 and one Boeing 777 freighter leav- ing its total fleet count unchanged at 270 at the end of March. Emirates’ average fleet age remains at a youthful 6.8 years. While Emirates recorded a strong revenue performance during its 2nd and 3rd quarters of 2019-20, the DXB runway closure and Covid-19 crisis in the other quarters impacted its total revenue for the financial year with a decline of 6% to $25.1 billion. The relative strengthening of the US dollar against currencies in many of Emirates’ key markets had a $262 million negative impact to the airline’s bottom line, a substantial increase compared to the previous year’s negative currency impact of $156 million. Crew wave goodbye to fi nal fl ights when services were suspended in March. DNATA’S PROFITS HIT BY COVID-19 AND THOMAS COOK COLLAPSE The Emirates group’s ground services division, dnata, increased revenues by 2% to $4 billion in 2019-20 but saw profi ts fall 57% down to $168 million, which in- cludes $59 million one-time gain from the sale of its stake in Accelya. Profi ts were impacted by goodwill impairments amounting to $45 million, write-offs due to Thomas Cook’s collapse amounting to $26 million and Covid-19, which has so far cost dnata $75 million. But dnata managed to secure a string of new con- tracts across four divisions and saw particular growth in its catering arm. The fi rm’s international business now accounts for 72% of its revenue. dnata invested more than $218 million in acquisitions, new facilities and equipment, technologies and people development during the year. In 2019-20, dnata’s operating costs increased by 8% to $3.9 billion, in line with organic growth across its business divisions. Its cash balance was $1.4 billion, an increase of 4%. Revenue from dnata’s UAE airport operations, in- cluding ground and cargo handling remained steady at $864 million. The number of aircraft movements han- dled by dnata in the UAE declined by 11% to 188,000. This reflects the impact of the DXB runway closure in April-May 2019, and the suspension of scheduled passenger flights at both Dubai airports due to the pandemic. During the year, dnata executed the UAE’s first green turnaround of a flydubai aircraft at DXB. Its airport services brand, marhaba, opened an expanded and refurbished lounge at Dubai International airport, and expanded its international network with a new lounge in Singapore’s Changi Airport. Total operating costs decreased by 10% over the 2018-19 fi- nancial year. The average price of jet fuel declined by 9% during the financial year after last year’s 22% increase. Including a 6% lower uplift in line with capacity reduction, the airline’s fuel bill declined substantially by 15% over last year to $7.2 billion) and accounted for 31% of operating costs, compared to 32% in 2018-19. Fuel remained the biggest cost component for the airline. Overall passenger traffic declined, as Emirates carried 56.2 million passengers (down 4%). With seat capacity down by 6%, the airline achieved a Passenger Seat Factor of 78.5%. An increase in market fares and a favourable route mix was com- pletely offset by the strengthening of the US dollar against most currencies and left the passenger yield unchanged at 26.2 fils (7.1 US cents) per Revenue Passenger Kilometre (RPKM). During the year, Emirates raised a total of $2.5 billion in air- craft financing, funded through term loans and will continue to tap the bank market for further liquidity in the first quarter of 2020-21 to provide a cushion against the impact of Covid-19 on the cash flows in the short term. Emirates closed the financial year with a healthy level of $5.5 billion of cash assets. FEATURE | ETIHAD CARGO 16JULY-AUGUST 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com How has demand for your services been impacted since the pandemic started? Abdulla Mohamed Shadid, managing director cargo and logistics at Etihad Aviation Group Naturally at Etihad Cargo we were not immune to the global capacity crunch and with the suspension of passenger flights in and out of the UAE on 24 March, we lost 65% of Etihad Cargo’s overall cargo capacity to more than 80 destinations worldwide. The limited capacity worldwide fuelled the demand with the need to transport perishables and medical supplies across the world as soon as possible and to ensure connectivity across key global trade lanes. Thankfully, we were prepared for the shifting demands with recent investments in our cool chain products, which were awarded IATA’s Centre of Excellence for pharmaceuticals and perishable logistics in 2019. As a result, we witnessed the demand from our customers for perishables and medical supplies increase by 25 per cent in the UAE and along key east/west trade routes over the past few weeks. We have also experienced a significant demand for addi- tional capacity and increased flights in and out of Beijing and Shanghai as key production hubs for medical equipment. As a result, we now operate eight weekly 777 freighter flights, supported by additional charters and passenger freighters to mainland China. During April, more than 4,421 tonnes were carried by 116 flights to China, with 70% of shipments from Beijing and 90 per cent from Shanghai being medical supplies. The air cargo market has traditionally lagged behind other sectors. How could the pandemic accelerate change within the sector? What changes do you expect to see? Andre Blech, head of operations and service delivery at Etihad Cargo The air cargo industry is traditionally known to be labour intensive. With Covid-19 forcing people around the globe to work from home, conventional carriers that rely on physi- Air cargo operators have come into their own in recent weeks as they have had to react to a massive drop in capacity. Here, market experts from Etihad Cargo provide an insight into how one of the leading operators has adjusted to the changes and how the air freight sector is likely to evolve as a result of the Covid-19 pandemic Joe Peskett reports CARGOCARGO INSIGHTINSIGHTEITHAD CARGO | FEATURE 17LOGISTICS MIDDLE EAST | JULY-AUGUST 2020www.logisticsmiddleeast.com cal administrative tasks face a real challenge. It is obviously very difficult to scan and print paper air waybills, physically carry them to the warehouses, or place them in pouches in this environment that mandates social distancing. At Etihad Cargo, having embarked in our digitalisation journey 24 months ago, we were able to seamlessly shift into mobile teams that can work from home for their safety while ensuring the utmost safety procedures and technologies are in place for our frontline heroes working on ground, ramp and warehouses, in addition to our loadmasters and pilots. Our digital capabilities supported our own operations and clients’ minimising the need for paper airway bills and physical transactions having achieved 75 per cent mark for Electronic Air Waybill penetration in the past quarter - up from 16 per cent during the same period last year. In addi- tion, our investment in the Cargo Control Centre effectively supported our customers’ needs every step of the journey as it continues to be the neve centre of our operations. How important is it that air cargo operators invest in digitalisation post-pandemic? Haleema Al Hosani, senior manager global accounts and loy- alty at Etihad Cargo Investing in a long-term digital strategy is more important than ever to streamline procedures, accommodate custom- ers with smooth online processes and generally weather the storm of the pandemic. Covid-19 has allowed us to truly leverage the online func- tionalities we began developing 24 months ago when Etihad Cargo begun its digital transformation journey. Customers are responding very well to our enhanced online booking features on etihadcargo.com and our partner portals, and to seamless access to track and trace with in-built messag- ing functionality on our mobile platform which resulted in increased efficiency. Abdulla Mohamed Shadid, managing director cargo and logistics at Etihad Aviation Group Etihad Cargo utilised 787 Dreamliner passenger jets for cargo-only operations at the height of the pandemic.FEATURE | ETIHAD CARGO 18JULY-AUGUST 2020 | LOGISTICS MIDDLE EASTwww.logisticsmiddleeast.com Could we see less reliance on airline belly-hold capacity in the cargo market post-pandemic? What would this mean for competition in the sector? Leonard Rodrigues, senior manager network planning and cargo at Etihad Cargo The pandemic has indeed put cargo operations under the spotlight. It is difficult, however, to pinpoint with certainty what the aviation sector will look like post-pandemic. Nobody wishes for the passenger business to remain grounded and we see airlines, including the Etihad Aviation Group, planning for the restart of passenger operations over the coming months. I am sure I am not the only one hoping we can all go back very soon to planning holidays that include international travel. With that said, I do believe belly-hold capacity will remain key to the air cargo model. It is a superior product for many commodities such as perishables and pharmaceuticals, with smaller capacities coming in more frequent and regular vol- umes. Also, its cost efficiency participates in lowering the overall cost of air cargo transportation, to the point that its absence would disrupt the economics of multiple supply chains. Even from a cargo-only perspective, we need the belly-hold capacity to come back. UAE GOVERNMENT AID FLIGHTS IN APRIL 2020: • Number of countries fl own to with UAE Government Aid: 31 • Number of UAE Government Aid fl ights: 65 • Total tonnage of essential supplies fl own out of the UAE on behalf of UAE Government: 400+ tonnes • Total tonnage of essential supplies fl own into the UAE on behalf of UAE Government: 2,000 tonnes • Number of front-line medical professionals who have benefi ted from the UAE Government Aid: 350,000 (source: MOFA) Etihad Cargo worked closely with various governments to help maintain supply chains and ship humanitarian aid to people impacted by Covid-19.EITHAD CARGO | FEATURE 19LOGISTICS MIDDLE EAST | JULY-AUGUST 2020www.logisticsmiddleeast.com ETIHAD CARGO FLIGHTS IN APRIL 2020: • Tonnage fl own on freighter and passenger aircraft: 36,000 • Tonnage of food and medical supplies fl own: 10,000 • Fleet of passenger aircraft deployed for cargo-only fl ights: 32 • Unique destinations served through scheduled and charter fl ights: 61 • Flights operated by passenger and freighter fl eet: 1,100 When belly-hold capacity returns, carriers will be able to ramp up their cargo operations. Are we seeing governments around the world view air freight differently? If there is a change in attitude, what benefits could it bring to operators? Bader Ahmed Al Ali, senior manager of commercial activi- ties at Etihad Cargo Air cargo emerged as a business and societal continuity champion during the pandemic, transporting critical aid when and where it is needed most and lowering the bur- den of repatriation efforts globally. We have seen several governments extend support to ensure the flow of goods during Covid-19 across the globe and several countries re- duce red tape challenges via quarantine exemptions for crew members on cargo flights. As the UAE’s national carrier, Etihad Cargo is working hand-in-hand with our nation’s government to provide es- sential transportation lifeline of the movement of goods and supplies into the UAE and globally. To date, we have transported more than 570,000 tonnes of critical aid to support general populations and help more than 570,000 frontline medical professionals. What are the main lessons that Covid-19 has taught the air cargo market? Abdulla Mohamed Shadid, managing director Cargo and Logistics at Etihad Aviation Group The aviation industry is currently navigating the biggest crisis in its hisww. Covid-19 has had a bigger impact on the sector than 9/11, SARS, the eruption of the Icelandic volcano Eyjafjallajökull and the 2008 financial crisis. IATA has es- timated that 2020 passenger revenues will fall $314 billion below 2019 levels, or -55%, while airlines are expected to burn through approximately $61 billion in liquidity during Q2 alone. It is unparalleled. One of the main lessons COVID-19 has taught us is that agility and adaptability are key when a crisis presents itself. Global perception of the air cargo industry has shifted 180 degrees, and air cargo companies that managed to adapt to this ever-evolving global situation have proven to be vital. We are proud that our attentiveness and adaptability have seen us through these challenging times and is preparing us for a smooth passenger activity restart. Next >