BFS Cargo E-Newsletter Vol.4/2015

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1 Vol. 4/2015 Handling with CARE Customer Attentive Responsive Efficient Dear Friends, Welcome to the April edition of the BFS Cargo E-Newsletter. The start of April represents the end of the first quarter of the year and the news is not great. Whilst we have seen a growth in Imports of around 2,700 tonnes year on year, the Export numbers are down by 2,200 tonnes and so is the Transhipment traffic. Overall we are over 1,700 tonnes down on 2014 and that cannot be good David Ambridge General Manager - Cargo The start of April represents the end of the first quarter of the year and the news is not great. news for any of us. The Export numbers would have been even worse if we had not had several Charter flights this year owing to the strike in the USA West Coast ports. Given this situation it becomes even more important for us all to focus on reducing costs and increasing efficiency in our businesses. To this end on April 2nd we held a workshop for E-AWB here in BFS. We were overwhelmed with requests to join this and had to limit it to 40 people. We will hold a second workshop just after Songkran so that the important message reaches a much wider audience. The room was full with Airlines and Agents all keen to listen and learn how E-AWB can help them and I hope that they all went away from the event with a renewed interest in this. I certainly hope to see us improve on the very poor performance we have to date where only around 1% of shipments are actually moving electronically. More good news for BFS as another Airline moves to us on May 11th. I will announce the name of the Airline next month but it s great to see more and more Airlines trusting BFS with their Cargo Handling here in BKK. I m sure by now you have all seen the recent announcement regarding Charter flights from Thailand to Japan and Korea. While this has no direct impact on the many scheduled flights we have each day it is still not good news. Let s hope the Government can resolve this very quickly and more flights can take place. I was also very sad to see the announcement from Thai Airways that they are grounding their 2 x B747F until further notice. This really falls in line with my opening paragraph and the fact that Exports are just not growing. Again let s all hope for an upturn in business and seeing these aircraft, and many more, flying again soon. The Songkran festival is just a few days away now so please let me take this opportunity to wish you SAWASDEE PEE MAI and a happy and safe holiday. Regards, David Ambridge General Manager Bangkok Flight Services Cargo (WFS affiliate)

2 Cargo not flown as booked John Yep Director Cargo Service Delivery Cargo not flown as booked is a key performance measure for all airlines. Similar to your high expectations when using an Integrator (Fedex/DHL/TNT/UPS) to delivery an important package; delivered as promised ; to arrive at a specific date/time to its final destination; if cargo is not loaded on its booked flight, the customer expectations are not met and potential loss of future revenue from the customer is a possibility in addition to a loss of confidence in your service levels. We measure this performance by comparing the # of cargo not flown as booked verses the # of AWBs handled, although our monthly performance is consistently above 99.97%, it s the.03% of cargo mishandled which requires our attention and caused customer dissatisfaction. The familiar saying you are only as good as your last mistake holds very true in our demanding business. Total Airline Mishandling in February 2015 MAWB Mishandling Achieve (%) 21, % Our internal procedures are robust requiring our build-up staff to crosscheck many items to ensure the # of cargo pieces booked are built-up for the proper Airline flight. However, we face many challenges in Thailand on meeting this critical service expectation: Cargo delivered not ready for carriage ( no labels, no AWBs)

3 To avoid delayed build-up and possibly delaying the Airline departure expectations, we begin build-up without the proper AWB documentation. Cargo delivered after required Airline cut-off times Unfortunately on a daily basis, agents are delivering cargo after the expected Airline cut-off time, as a result, our build-up teams must hurriedly build the cargo to avoid a departure delay. Contributing to this are last minute load plan changes by Airline staff to maximize aircraft cargo loads or cargo offloaded from aircraft due to space control, maintenance problems & other factors affecting cargo build-up for the next flight. With the goal of continuous improvement, daily reports are generated to the airlines for their knowledge & action plans to improve the current situation. We are currently working on internal IT solutions to deal with the above issues to further improve the local cargo logistics chain & maximize cargo loads/revenue for our customers, announcements will be made later this year. Thank you John Yep Director Cargo Service Delivery Bangkok Flight Services- Cargo

4 BFS Cargo Update BFS with Worldwide Global Network (WIN) organized E-AWB & E-Weight Slip Workshop On Thursday, 2nd April 2015, Mr. David Ambridge (General Manager - Cargo) and Mr. John DeBenedette from Worldwide Global Network (WIN) hosted an E-AWB & E-Weight Slip workshop at the BFS GSE building. There are many participants from both Airlines and Agents who interested in E-AWB joined this workshop. The purpose of this workshop is to enlighten and provide more information about E-AWB & E-Weight slip as well as the benefit of using E-AWB in Air Cargo business. After the workshop, we received positive feedback and appreciation from our value customer which we would like to share as below. Khun Suradet Pakavaleetorn (Air France, KLM cargo & Martin Air Cargo): Thank you BFS Cargo for inviting all colleagues in air cargo business and myself to join this e-awb and e-weight Slip workshop on 02April. Good presentation given by David and the team from WIN, I personally believe, shows how all partners in our air cargo business can benefit from e-freight, especially the freight forwarder who is one of the key players to make e-freight successful in Thailand Khun Nuttavut Pimtara (Lufhansa Cargo): On this workshop, I found its value and very useful for Air Cargo business. But in my opinion, I would like to see this workshop organized in Thai & English version so some representative from Freight forwarder could better understand about the E-AWB Khun Suphakij Mayanondha (Delta Cargo): Thank you BFS for always pushing e-awb adoption. For Delta Cargo, we recently adopted the e-awb Single process which we had informed Freight Forwarder regarding this issue. We hope that BFS will keep pushing e-awb continuously in order to achieve the target Khun Piyawat Duangsrikaew (Qatar Airways): From this E-AWB Workshop, we can gain more knowledge of E-AWB concept and we totally agree with WIN that E-weigh slip is very useful for Freight Forwarder as late AWB Submission will be reduced and eliminated if E-weigh slip is implemented

5 Latest News Worldwide Flight Services Bangkok Air Ground Handling Co., Ltd. Received the Corporate Service Excellence Awards 2014 Worldwide Flight Services Bangkok Air Ground Handling Co.,Ltd. (BFS Ground) was selected as one of the winners of the Corporate Service Excellence Awards On Friday 20, March 2015, Airport of Thailand Public Company Limited (AOT), Mrs. Suwanna Natpracha, the Deputy General Manager of Suvarnabhumi Airport (Business Supports) invited Mrs. Suporn Thiravanitkul, Chief Financial Officer of BFS to receive the award. The awards aimed to honor both the front line staff and the companies that have demonstrated exceptional customer service and outstanding performances during the period of 1 January 31 December Worldwide Flight Services Bangkok Air Ground Handling Co., Ltd. received the Corporate Service Excellence award which covered 3 areas; The contribution to the improvement of passenger service awarded for the launch of the I CARE service campaign; Quality development and improvement for the considerable investment in new additional ramp equipment. The category Support and cooperation with AOT was also rewarded for the project that led to the acceptance of Wireless Hand Held Technology (HHT) for the ramp operations. This Corporate Service Excellence Award highlights BFS s dedication and contribution to the continuous improvement of the service standards at Suvarnabhumi Airport.

6 Total Airline Mishandling in March 2015 MAWB Mishandling Achieve (%) 23, % Tonnage handled by BFS in March and from January to March 2015 March 2015 January March 2015 (Cumulative) Service Types Tonnage Year-on-Year Tonnage Year-on-Year (KGs) Growth (KGs) Growth Export 16,271,014-3% 42,726,568-5% Import 11,645,814 7% 29,589,355 10% Transshipment 3,770,887-29% 9,725,339-19% Total 31,687,715-4% 82,041,262-2% BFS Cargo Contact Tel: +66 (0) Fax: +66 (0) CargoCustomerCare@BFSAsia.com