INTERVIEW: Qantas alliance will help SkyCargo grow network, but ‘new family man’ Menen won’t be running it
AirCargo Archive Stories #223
Monday, 27 May 2013
RAM Menen, divisional senior vice president cargo at Emirates Airline is to step down to enjoy a well-deserved retirement.
Regarded as one of the most influential and hard-working executives in and for the industry, his successor has big shoes to fill.
Menen began his aviation career in 1976 at Kuwait Airways. He later moved to British Airways to head its cargo operations in Kuwait. In 1984, he joined the Kuwaiti aviation group Alghanim Al Qutub Shipping Agencies and set up and managed its air freight-forwarding unit in Dubai. He moved again, to head the cargo division of Emirates, when that airline was launched in October 1985.
Trained as an engineer, he spearheaded the concept and development of the LD-36 (AMF) type of ULD (Unit Load Device), which increased usable space on each lower deck pallet base by 33 per cent.
He is one of the founding members of The International Air Cargo Association (TIACA), the premier organisation for the entire air logistics business, serving as vice president in 1993 and 1994, and as president, chief executive and chairman of the Board in 1995 and 1996.
He continues to be involved with TIACA as trustee and member of the chairman’s council. Menen also is a member of the IATA Cargo Committee and is also involved, in an advisory capacity, with several other organisations. He has been a strong champion of the air logistics industry and is actively involved in the development of various IT initiatives to address the needs of the industry, helping to focus attention on cargo as an integral part of the world trade process.
In November 2007, Menen was made Personality of the Year (Air Cargo industry) at the Second Annual Middle East Logistics Awards (MELA 2007). He was inducted into the Asia Hall of Fame at the Asian Logistics Awards in October 2006 and into TIACA’s Hall of Fame in April 2005, in recognition of his efforts and contributions to the air cargo industry and for his achievements as head of Emirates’ cargo division.
In April this year, Emirates Skycargo was awarded ‘Cargo Airline of the Year’ by the UK-based Air Cargo News, a fitting climax to a wonderful career. The award comes at a time of continuous growth for SkyCargo. Earlier this year, it significantly boosted its cargo capacity with the addition of three new Boeing 777F aircraft, taking its freighter fleet to 10 aircraft and its dedicated freighter network to 13 destinations. These are Taipei, Chittagong, Eldoret, Lilongwe, Kabul, Almaty, Gothenburg, Zaragoza, Viracopos, Tripoli, Djibouti, Hanoi and Liege. Emirates SkyCargo currently has a route network of more than 130 destinations in 77 countries, spanning six continents across the globe. Why leave now, when Emirates is one of the few airlines in the world to be making good profits from freight operations? Ram Menen: I have turned 60 and the company has a policy of mandatory retirement. I am actually looking forward to retiring. I have been working almost 18-hour days and have neglected my family and friends and now it’s time for them. Who has had the most influence on your career? I had some great mentors, including Geoff Bridges, Ward Johnson and Des Vertannes. Other great personalties also have influenced my life in some shape or form.
What can you tell us about your most likely successor? The selection process - which is very thorough - is still in progress. Fortunately I have a very strong, competent team so my leaving will not change the productivity levels and I expect a smooth transition for my successor.
You have said the industry is populated “by the same people moving jobs”. What can the industry do to encourage new blood? There are a lot of initiatives now. IATA has launched its Training and Development Institute (ITDI), which is the future air cargo executive program. FIATA also has taken this on board and we expect more action at the undergraduate/post graduate level. And I see Richard Branson has been active in promoting the logistics sector, suggesting it is a good industry for a career. Around nine out of 10 people come into this industry by accident, but fortunately this is changing through better understanding of the role of logistics in commerce and as new entrants identify worthwhile career paths.
What is your proudest career achievement at Emirates? The friendships I have made throughout the world while fulfilling the duties of my role. I have no regrets. It has been a wonderful 20-odd years where we have been able to influence a change in the industry itself. It has been very exciting. Getting the various sections of industry to start working together and understanding better how the supply chain works has been very rewarding. The multi-modality of the industry is now better understood.
Do you believe the global economy will improve for SkyCargo this year? Emirates SkyCargo will continue to grow. The first half of the year we had double-digit growth against a market scenario of general contraction. I believe the world economy will remain sluggish with little change for the year ahead and I see general market volatility for up to five years, though things could change if the oil price continues to come down and levels out at more sustainable levels.
What’s your expectation on fuel charge trends in the next two years? I have a better chance of predicting the jackpot numbers in Las Vegas. Oil prices are no longer supply driven, they are subject to speculative trading and therefore it remains extremely difficult to make forecasts. Today’s oil demand is pretty low, yet oil prices are above A$100 dollars. It won’t come down in a hurry because many parts of the global economy are in turmoil and investors are putting money into commodity markets and stock markets and this is distorting the market fundamentals of supply and demand.
Do you see a future for bio-fuels? Bio-fuels are still a long time away. At this time they are much more expensive than traditional fuel supplies and I believe it will be years before they offer a viable alternative.
Emirates SkyCargo’s growth over the last 15 years has been impressive. What are the main remaining markets to conquer? The world is our oyster and we are connecting the dots. We operate into six continents. We are completely market driven, take opportunities where they present themselves and we will continue to expand. Last year we added 15 new destinations and I see no reason why we would slow down. There is a lot to do in Latin America and in Africa. The advantage we have is our location - we are eight hours from 5.8 billion people. Two thirds of the global market is India and China, the fastest developing economies in the world.
Are you experiencing any hostility from rivals or countries such as Germany because of the clout you now have in the market? That’s part of life. We have found a few pockets of resistance, but it’s a competitive world and at the end of the day it’s the customer who decides who they want to go with.
How will the new Qantas alliance impact Emirates SkyCargo? It’s wonderful. It gives both carriers access to a larger network. In Emirates’ case we can draw from Australasia and feed our networks from Dubai. All up we have some 233 destinations that we actually cover. The chemistry is extremely good and so far it has been great working with Qantas.
Do you expect the new Qantas relationship to significantly impact SkyCargo yields? Inbound to Australia or outbound? We want to add value to our customers’ businesses. That’s the focus and once we have that focus everything else flows. Rates are very important and routes need to be viable but those are not always the overriding factors. One must take into account the state of the global economy. We also take pride in our service levels to the customer. Technology is a game-changer. Both Emirates SkyCargo and Qantas Freight Enterprises deliver exceptional levels of service to the customer and we are continually trying to raise the bar. Our customers are coming to realise the value in having good business partners.
Some emerging economies are increasing employee wages and improving living conditions. How does the UAE populace as a whole benefit financially from Emirates’ success? As a successful airline we have this catalytic effect and are proud to have played a part in Dubai’s success. Dubai is now a world-class global destination. Business has prospered and so have the people. Success breeds success. New companies are choosing to set up operations in Dubai. This in turn creates jobs and a wealthy economy. Instead of just being a dot on the map Dubai is now a brand.
At one stage, Etihad made noises about buying Emirates. Is Emirates now so big it makes a buyout almost unachievable? I don’t think it was Etihad making the noise, it was more like the media. Both airlines are independent and very successful and it’s the governments of Dubai and Abu Dhabi that make the aviation decisions.
The A380 has a poor cargo uplift but good passenger loads. Emirates has more than 100 A380s on order, will it need to buy more freighters? The A380 cargo uplift is much better than we expected. In fact the A380 does much better on a 14-hour sector than a B777. On shorter hauls the A380 is not as good but overall we are very happy with the performance. We are getting 12-14 tonnes payload on a 14 hour A380 sector which is good by any standard. The A380 does not compare to the B777 uplift on shorter hauls.
What is the best performing freighter in the fleet? Do you have an ideal cargo fleet mix? We love the B777 and the B747. Both of these aircraft in combination is our perfect solution. The B777 capacity is 100 tonnes with exceptional fuel efficiency. The B747 with its nose capability we use for the bigger type cargo. Using the two in combination enables us to effectively serve all markets. We have achieved the ideal mix with the B777 and B747 freighters. They serve us well as evidenced by our performance.
Why are other carriers seemingly unable to match Emirates’ expansion? I guess you will have to ask them. We believe we are very agile and reactive as well as very proactive. For us it was always about creating a viable global network and that’s what we have done.
You have opened more than 40 destinations in the past decade, but with Europe tipped to be in recession for the next few years and the US in slower than expected recovery mode, do you expect to see a move to consolidation and therefore lower annual growth? We have a good team of guys here at Emirates Skycargo and have met all our objectives to date in terms of expansion. We don’t bring destinations on line without completing a full market analysis backed up by a solid business case. Our bottom line each year shows we have got it right. I see no reason why my successor would change a winning formula.
What are your plans for the future (outside retirement)? Will you stay in the industry on a part-time basis, opt for a consultancy role or is there a ‘how to’ book or two in the mix? There’s nothing part time about me. It’s all or nothing. Why would I leave and then go into a consultancy role elsewhere? I do want to maintain my interest and friendships with the various associations such as IATA and TIACA. All the better if there is some small role I can fill or accomplish in retirement. I am very keen to see the Academy progress and fulfil the vision we have for training new industry management. The future for me is unchartered territory. A book maybe one day. As we speak my immediate target is to do nothing except spend time with my family.
INTERVIEW: Qantas alliance will help SkyCargo grow network, but ‘new family man’ Menen won’t be running it
AirCargo Archive Stories #223
Monday, 27 May 2013
RAM Menen, divisional senior vice president cargo at Emirates Airline is to step down to enjoy a well-deserved retirement.
Regarded as one of the most influential and hard-working executives in and for the industry, his successor has big shoes to fill.
Menen began his aviation career in 1976 at Kuwait Airways. He later moved to British Airways to head its cargo operations in Kuwait. In 1984, he joined the Kuwaiti aviation group Alghanim Al Qutub Shipping Agencies and set up and managed its air freight-forwarding unit in Dubai. He moved again, to head the cargo division of Emirates, when that airline was launched in October 1985.
Trained as an engineer, he spearheaded the concept and development of the LD-36 (AMF) type of ULD (Unit Load Device), which increased usable space on each lower deck pallet base by 33 per cent.
He is one of the founding members of The International Air Cargo Association (TIACA), the premier organisation for the entire air logistics business, serving as vice president in 1993 and 1994, and as president, chief executive and chairman of the Board in 1995 and 1996.
He continues to be involved with TIACA as trustee and member of the chairman’s council. Menen also is a member of the IATA Cargo Committee and is also involved, in an advisory capacity, with several other organisations. He has been a strong champion of the air logistics industry and is actively involved in the development of various IT initiatives to address the needs of the industry, helping to focus attention on cargo as an integral part of the world trade process.
In November 2007, Menen was made Personality of the Year (Air Cargo industry) at the Second Annual Middle East Logistics Awards (MELA 2007). He was inducted into the Asia Hall of Fame at the Asian Logistics Awards in October 2006 and into TIACA’s Hall of Fame in April 2005, in recognition of his efforts and contributions to the air cargo industry and for his achievements as head of Emirates’ cargo division.
In April this year, Emirates Skycargo was awarded ‘Cargo Airline of the Year’ by the UK-based Air Cargo News, a fitting climax to a wonderful career. The award comes at a time of continuous growth for SkyCargo. Earlier this year, it significantly boosted its cargo capacity with the addition of three new Boeing 777F aircraft, taking its freighter fleet to 10 aircraft and its dedicated freighter network to 13 destinations. These are Taipei, Chittagong, Eldoret, Lilongwe, Kabul, Almaty, Gothenburg, Zaragoza, Viracopos, Tripoli, Djibouti, Hanoi and Liege. Emirates SkyCargo currently has a route network of more than 130 destinations in 77 countries, spanning six continents across the globe. Why leave now, when Emirates is one of the few airlines in the world to be making good profits from freight operations? Ram Menen: I have turned 60 and the company has a policy of mandatory retirement. I am actually looking forward to retiring. I have been working almost 18-hour days and have neglected my family and friends and now it’s time for them. Who has had the most influence on your career? I had some great mentors, including Geoff Bridges, Ward Johnson and Des Vertannes. Other great personalties also have influenced my life in some shape or form.
What can you tell us about your most likely successor? The selection process - which is very thorough - is still in progress. Fortunately I have a very strong, competent team so my leaving will not change the productivity levels and I expect a smooth transition for my successor.
You have said the industry is populated “by the same people moving jobs”. What can the industry do to encourage new blood? There are a lot of initiatives now. IATA has launched its Training and Development Institute (ITDI), which is the future air cargo executive program. FIATA also has taken this on board and we expect more action at the undergraduate/post graduate level. And I see Richard Branson has been active in promoting the logistics sector, suggesting it is a good industry for a career. Around nine out of 10 people come into this industry by accident, but fortunately this is changing through better understanding of the role of logistics in commerce and as new entrants identify worthwhile career paths.
What is your proudest career achievement at Emirates? The friendships I have made throughout the world while fulfilling the duties of my role. I have no regrets. It has been a wonderful 20-odd years where we have been able to influence a change in the industry itself. It has been very exciting. Getting the various sections of industry to start working together and understanding better how the supply chain works has been very rewarding. The multi-modality of the industry is now better understood.
Do you believe the global economy will improve for SkyCargo this year? Emirates SkyCargo will continue to grow. The first half of the year we had double-digit growth against a market scenario of general contraction. I believe the world economy will remain sluggish with little change for the year ahead and I see general market volatility for up to five years, though things could change if the oil price continues to come down and levels out at more sustainable levels.
What’s your expectation on fuel charge trends in the next two years? I have a better chance of predicting the jackpot numbers in Las Vegas. Oil prices are no longer supply driven, they are subject to speculative trading and therefore it remains extremely difficult to make forecasts. Today’s oil demand is pretty low, yet oil prices are above A$100 dollars. It won’t come down in a hurry because many parts of the global economy are in turmoil and investors are putting money into commodity markets and stock markets and this is distorting the market fundamentals of supply and demand.
Do you see a future for bio-fuels? Bio-fuels are still a long time away. At this time they are much more expensive than traditional fuel supplies and I believe it will be years before they offer a viable alternative.
Emirates SkyCargo’s growth over the last 15 years has been impressive. What are the main remaining markets to conquer? The world is our oyster and we are connecting the dots. We operate into six continents. We are completely market driven, take opportunities where they present themselves and we will continue to expand. Last year we added 15 new destinations and I see no reason why we would slow down. There is a lot to do in Latin America and in Africa. The advantage we have is our location - we are eight hours from 5.8 billion people. Two thirds of the global market is India and China, the fastest developing economies in the world.
Are you experiencing any hostility from rivals or countries such as Germany because of the clout you now have in the market? That’s part of life. We have found a few pockets of resistance, but it’s a competitive world and at the end of the day it’s the customer who decides who they want to go with.
How will the new Qantas alliance impact Emirates SkyCargo? It’s wonderful. It gives both carriers access to a larger network. In Emirates’ case we can draw from Australasia and feed our networks from Dubai. All up we have some 233 destinations that we actually cover. The chemistry is extremely good and so far it has been great working with Qantas.
Do you expect the new Qantas relationship to significantly impact SkyCargo yields? Inbound to Australia or outbound? We want to add value to our customers’ businesses. That’s the focus and once we have that focus everything else flows. Rates are very important and routes need to be viable but those are not always the overriding factors. One must take into account the state of the global economy. We also take pride in our service levels to the customer. Technology is a game-changer. Both Emirates SkyCargo and Qantas Freight Enterprises deliver exceptional levels of service to the customer and we are continually trying to raise the bar. Our customers are coming to realise the value in having good business partners.
Some emerging economies are increasing employee wages and improving living conditions. How does the UAE populace as a whole benefit financially from Emirates’ success? As a successful airline we have this catalytic effect and are proud to have played a part in Dubai’s success. Dubai is now a world-class global destination. Business has prospered and so have the people. Success breeds success. New companies are choosing to set up operations in Dubai. This in turn creates jobs and a wealthy economy. Instead of just being a dot on the map Dubai is now a brand.
At one stage, Etihad made noises about buying Emirates. Is Emirates now so big it makes a buyout almost unachievable? I don’t think it was Etihad making the noise, it was more like the media. Both airlines are independent and very successful and it’s the governments of Dubai and Abu Dhabi that make the aviation decisions.
The A380 has a poor cargo uplift but good passenger loads. Emirates has more than 100 A380s on order, will it need to buy more freighters? The A380 cargo uplift is much better than we expected. In fact the A380 does much better on a 14-hour sector than a B777. On shorter hauls the A380 is not as good but overall we are very happy with the performance. We are getting 12-14 tonnes payload on a 14 hour A380 sector which is good by any standard. The A380 does not compare to the B777 uplift on shorter hauls.
What is the best performing freighter in the fleet? Do you have an ideal cargo fleet mix? We love the B777 and the B747. Both of these aircraft in combination is our perfect solution. The B777 capacity is 100 tonnes with exceptional fuel efficiency. The B747 with its nose capability we use for the bigger type cargo. Using the two in combination enables us to effectively serve all markets. We have achieved the ideal mix with the B777 and B747 freighters. They serve us well as evidenced by our performance.
Why are other carriers seemingly unable to match Emirates’ expansion? I guess you will have to ask them. We believe we are very agile and reactive as well as very proactive. For us it was always about creating a viable global network and that’s what we have done.
You have opened more than 40 destinations in the past decade, but with Europe tipped to be in recession for the next few years and the US in slower than expected recovery mode, do you expect to see a move to consolidation and therefore lower annual growth? We have a good team of guys here at Emirates Skycargo and have met all our objectives to date in terms of expansion. We don’t bring destinations on line without completing a full market analysis backed up by a solid business case. Our bottom line each year shows we have got it right. I see no reason why my successor would change a winning formula.
What are your plans for the future (outside retirement)? Will you stay in the industry on a part-time basis, opt for a consultancy role or is there a ‘how to’ book or two in the mix? There’s nothing part time about me. It’s all or nothing. Why would I leave and then go into a consultancy role elsewhere? I do want to maintain my interest and friendships with the various associations such as IATA and TIACA. All the better if there is some small role I can fill or accomplish in retirement. I am very keen to see the Academy progress and fulfil the vision we have for training new industry management. The future for me is unchartered territory. A book maybe one day. As we speak my immediate target is to do nothing except spend time with my family.
RAM Menen, divisional senior vice president cargo at Emirates Airline is to step down to enjoy a well-deserved retirement. 
