newstodate.aero
Jan 19, 2007 (newstodate): 2006 was "a reasonably good year" for Lufthansa Cargo in the Nordic markets of Denmark, Norway, Sweden, Finland and the Baltic states.
-On the tonnage side, the growth was around 5.5 percent, to a total of around 40,000 tonnes which was quite satisfactory, says Kay Wichmann, Lufthansa Cargo director Nordic & Baltic countries since September, 2006.
-However, yields continued to dip, and we did not meet budgets for 2006. Still, given the market conditions, 2006 was a reasonably good year.
-We are, however, challenged by what seems to be a structural shift in the industry and a coresponding change in the mix of products sold.
-Leading airfreight exporters in the Nordic region are still in the process of out-sourcing production to low-cost markets, reducing the air cargo volumes generated in the Nordic markets. Also the quest for minimising costs paired with the abundance of cargo uplift capacity drives customers from ordering premium products to general cargo instead, except in acute or especially demanding situations.
-When price and rates reign supreme, competition intensifies and focuses on pure rate issues alone. We have even observed that some carriers attract customers by offering below-zero rates.
-Our approach to this challenging situation is to strengthen customers' focus on issues of quality and customer service. We will work to tailor-make solutions in cooperation with the individual customer and his forwarder to go beyond the pure rate consideration.
-For 2007 Lufthansa Cargo Nordic's and my top-three priorities will be to see a return to profitable operations, to enhance quality at every stage in our dealings with customers, and to maintain a professional, efficient and customer-oriented service at a high level of excellence, says Mr Wichmann.
-On the tonnage side, the growth was around 5.5 percent, to a total of around 40,000 tonnes which was quite satisfactory, says Kay Wichmann, Lufthansa Cargo director Nordic & Baltic countries since September, 2006.
-However, yields continued to dip, and we did not meet budgets for 2006. Still, given the market conditions, 2006 was a reasonably good year.
-We are, however, challenged by what seems to be a structural shift in the industry and a coresponding change in the mix of products sold.
-Leading airfreight exporters in the Nordic region are still in the process of out-sourcing production to low-cost markets, reducing the air cargo volumes generated in the Nordic markets. Also the quest for minimising costs paired with the abundance of cargo uplift capacity drives customers from ordering premium products to general cargo instead, except in acute or especially demanding situations.
-When price and rates reign supreme, competition intensifies and focuses on pure rate issues alone. We have even observed that some carriers attract customers by offering below-zero rates.
-Our approach to this challenging situation is to strengthen customers' focus on issues of quality and customer service. We will work to tailor-make solutions in cooperation with the individual customer and his forwarder to go beyond the pure rate consideration.
-For 2007 Lufthansa Cargo Nordic's and my top-three priorities will be to see a return to profitable operations, to enhance quality at every stage in our dealings with customers, and to maintain a professional, efficient and customer-oriented service at a high level of excellence, says Mr Wichmann.