Qantas Freight moves to maximise its strengths and add value for customers and other partners
AirCargo archive stories issue 234
Thursday, 29 January 2015
Alison Webster has more than 20 years’ experience in the aviation industry. She currently is executive manager for Qantas Freight and Qantas Catering Group, responsible for the operations of a A$1.5b division that serves the Qantas Group as well as external customers.
Prior to joining Qantas in 2004, she held a range of senior positions with British Airways in both Australia and the UK. There, roles included Sales, Marketing and Brand Management, and from 1997 to 2004 she was senior manager Terminals 3 and 4 at London Heathrow.
Webster was appointed as head of Cabin Crew at Qantas in 2005 and led a significant cultural transformation program across the 6,500 worldwide cabin crew community. This included establishing two new subsidiary companies for new crew employment opportunities.
Prior to taking on her current role in early 2014, she spent four years as executive manager Customer Experience. There, her portfolio included responsibility for the strategic planning, design and implementation of the end to end customer experience, Inflight Services - Procurement and Supply Chain Management, International Cabin Crew, International Airports and Lounges and the Global Customer Care and Baggage Services team.
Your career bio shows a strong role in passenger operations with Qantas. How have you found the transition from passenger to freight? The core principles of the passenger and freight businesses are very similar. In both businesses it’s about placing the customer at the heart of everything we do, using technology to drive better service at lower costs for our customers, and being relentless in the focus on safety and operational reliability. It has been great to get to know the diverse customer base we have around the world and to spend time with our talented employees understanding what they need in order to deliver to our customer and operational goals.
There have been major changes to Qantas Freight’s staffing during 2014. Is the re-structure complete or is it a work in progress? The Executive Lereadership team we have in place across Freight and Catering is working effectively and I’m really pleased with the progress we’ve made in 2014. As our customer needs continue to evolve we of course remain open to adapting our structure so that we are best placed to meet their needs. Freighter services a becoming less relevant on more routes as belly capacity on passenger aircraft increases. What Australian routes look solid for freighters for at least the next two years? Qantas Freight operates a fleet of 11 freighters to supplement capacity on key domestic and international routes. While some global carriers are cutting back on freighter capacity in their local markets, we continue to see good demand for our freighter network. Our 140 weekly overnight domestic freighter services are heavily utilised by postal authorities and large consolidators, and our international freighter network continues to be well supported on the Australia – China – USA triangle and across the Tasman.
Are you aware of any developments at Boeing and/or Airbus that would see belly capacity on passenger aircraft further enhanced? While there are continually new developments, I’m not aware of anything in the pipeline for the Qantas Group fleet at this point in time.
Food miles still is a vexing question for many retailers globally. What food exports will dominate ex Australia next year and what countries will they go to? One of our most exciting developments in 2014 has been establishing a supply chain to deliver fresh Australian milk into China. In 2014 Qantas Freight was the first air freight carrier to carry fresh Australian milk into China, and today it carries the largest quantity of milk between the two countries. Qantas Freight has uplifted 33 bulk shipments this year, and has proven that we have the pioneering spirit and expertise needed to meet the complex quality assurance protocols in the perishable cold chain logistics market.
Do you have any plans to boost your temperature-controlled capabilities? If so, where? Qantas Freight’s network of 22 freight terminals is already well equipped with temperature-controlled capabilities. We’re pleased to be investing in other terminal equipment that reiterates why Qantas Freight is Australia’s industry leading terminal operator. Our Australian fleet of tow tractors and forklifts is in the process of being completely updated, and we’re proud that we will have the first environmentally-friendly battery electric fleet operating in Australia. A new main deck loader just arrived in our Sydney International freight terminal, demonstrating our commitment to delivering reliable freight services.
Does the group’s international relationships with Jetstar’s regional Asian fleets include freight agreements? Qantas Freight markets the belly space of the Jetstar Asia (3K) network based out of Singapore, including Valuair. We regularly sell 3K shipments that connect onto and from the QF and JQ international networks.
Qantas Freight made a financial year profit contribution of A$33 million (FY13/14) to the group. The seasonal run up to Xmas almost always sees an improvement in freight volumes, but is there more substance to the current market conditions? We have been encouraged by the strong volumes leading up to Christmas this year. Our domestic and international networks are doing well and our wholly-owned JETS Transport Express trucking network has seen strong volumes; and we are growing our trailer fleet in response to this demand.
How do you see 2015-16 shaping up for freight operations now that the AUD:USD exchange rate is around 82 cents and forecast to continue falling to around 75 cents? The lower AUD is good news for Australian exporters and we are still seeing healthy demand in the consumer e-tail space.
Qantas and Emirates appear to operate separate cargo agendas. Can we expect to see further synergies developed? Qantas Freight has a solid partnership in place with the Emirates SkyCargo team and you can expect to see the partnership continue to develop and deepen in 2015.
Qantas Freight has indicated greater use of technology in the years ahead. I understand you recently completed installation of self-service kiosks at your terminals with the four main international terminals now on line with e-processing and regional centres across the country have been connected electronically to Qantas Freight’s central operating system. Terminal staff now carry out the check-in sequence and rely on touch screen tablets which process information for each shipment in real time. Have the touch screen tablets in terminals has been as effective as anticipated? What other innovations are planned? I think we’ve completely revolutionised the customer experience in our Australian air freight terminals. We’ve eradicated old bottlenecks, improved visibility of freight in the supply chain and drivers are spending considerably less time waiting at our terminals. Our suite of online tools and smartphone apps gives customers the ability to book and track freight across Australia and the world. In December we enhanced our domestic tracking tool to include even more milestone notifications and the option to set proactive email alerts, so our customers can really keep an eye on where their shipments are.
Recent Free Trade Agreements with Korea and China should assist Australia’s exports. Will Qantas Freight have to make major adjustments to schedules to access the potential? We continually track customer demand, so if we believe a change is necessary we will respond accordingly.
How have recent global trade embargoes and restrictions to places like Russia impacted Qantas Freight sales? There has been very little impact for Qantas Freight. Russia is not a core market for Qantas Freight.
Qantas is acquiring more A380 aircraft for long-haul routes. The A380 has a relatively poor freight capacity when carrying full passenger loads, how will the new aircraft’s shortcomings affect Qantas Freight fleet planning? Are you considering more full freighter options, particularly if the market improves as expected? Our approach has always been to maximise the belly space available on the Qantas Group fleet, and then to supplement capacity on popular cargo routes with additional freighter services. This approach continues to work well for Qantas Freight.
Will the B767 freighter continue on trans-Tasman operations, given the withdrawal of the passenger B767s? Might it perhaps be replaced by B737 freighters? Yes, the freight B767-300 aircraft continues to operate and is a valued part of our freighter fleet. There are no plans to replace it with a B737 freighter.
PNG has not been as large a major freight market as anticipated, with QF surrendering cargo capacity on the route in June. Was this due to competition by other scheduled carriers and charter operators, soft market or sales efforts not being as effective as they could be? Competition on the route intensified and demand dropped, so we made a call not to continue scheduled services to PNG.
Falling aviation fuel prices have not yet been reflected in Qantas Freight surcharges. Why have they not been adjusted to reflect the current costs? Is there a timetable for your surcharges to drop? Qantas Freight lowered its fuel surcharge on 1 December 2014. Our fuel surcharge takes into account global fuel prices but we also factor in the Qantas Group fuel hedging program as well as foreign exchange movements, meaning that our cost of fuel does not necessarily mirror global fuel price indices. On some routes regulatory requirements determine the fuel surcharge level and we comply with such government regulations.
Finding scheduling opportunities for freight ops in a relatively over-serviced market must be challenging. What routes if any offer opportunities for development? Yes there has certainly been more capacity added on many global freight lanes which makes things more challenging, but we really focus on our strengths. We work hard to be the leading air freight supplier into, out of and around Australia. We know our markets well and find that price isn’t the only driver of customer choice. Our customers choose Qantas Freight because they know we can be relied on, and are committed to our markets. For example we’re the only carrier offering dedicated freighter services between Sydney and Shanghai, and we’ve continued to service this route for more than 10 years. We have a dedicated team in Shanghai. This gives our customers confidence that we know the dynamics of this route, and can be a reliable part of their supply chain.
There has been market talk of an expanded alliance with a major Chinese carrier. If so, any progress? Qantas International already has passenger code-share agreements with China Eastern, China Southern and China Airlines. We continually review our opportunities for alliances and partners linked to market growth expectations.
Qantas Freight moves to maximise its strengths and add value for customers and other partners
AirCargo archive stories issue 234
Thursday, 29 January 2015
Alison Webster has more than 20 years’ experience in the aviation industry. She currently is executive manager for Qantas Freight and Qantas Catering Group, responsible for the operations of a A$1.5b division that serves the Qantas Group as well as external customers.
Prior to joining Qantas in 2004, she held a range of senior positions with British Airways in both Australia and the UK. There, roles included Sales, Marketing and Brand Management, and from 1997 to 2004 she was senior manager Terminals 3 and 4 at London Heathrow.
Webster was appointed as head of Cabin Crew at Qantas in 2005 and led a significant cultural transformation program across the 6,500 worldwide cabin crew community. This included establishing two new subsidiary companies for new crew employment opportunities.
Prior to taking on her current role in early 2014, she spent four years as executive manager Customer Experience. There, her portfolio included responsibility for the strategic planning, design and implementation of the end to end customer experience, Inflight Services - Procurement and Supply Chain Management, International Cabin Crew, International Airports and Lounges and the Global Customer Care and Baggage Services team.
Your career bio shows a strong role in passenger operations with Qantas. How have you found the transition from passenger to freight? The core principles of the passenger and freight businesses are very similar. In both businesses it’s about placing the customer at the heart of everything we do, using technology to drive better service at lower costs for our customers, and being relentless in the focus on safety and operational reliability. It has been great to get to know the diverse customer base we have around the world and to spend time with our talented employees understanding what they need in order to deliver to our customer and operational goals.
There have been major changes to Qantas Freight’s staffing during 2014. Is the re-structure complete or is it a work in progress? The Executive Lereadership team we have in place across Freight and Catering is working effectively and I’m really pleased with the progress we’ve made in 2014. As our customer needs continue to evolve we of course remain open to adapting our structure so that we are best placed to meet their needs. Freighter services a becoming less relevant on more routes as belly capacity on passenger aircraft increases. What Australian routes look solid for freighters for at least the next two years? Qantas Freight operates a fleet of 11 freighters to supplement capacity on key domestic and international routes. While some global carriers are cutting back on freighter capacity in their local markets, we continue to see good demand for our freighter network. Our 140 weekly overnight domestic freighter services are heavily utilised by postal authorities and large consolidators, and our international freighter network continues to be well supported on the Australia – China – USA triangle and across the Tasman.
Are you aware of any developments at Boeing and/or Airbus that would see belly capacity on passenger aircraft further enhanced? While there are continually new developments, I’m not aware of anything in the pipeline for the Qantas Group fleet at this point in time.
Food miles still is a vexing question for many retailers globally. What food exports will dominate ex Australia next year and what countries will they go to? One of our most exciting developments in 2014 has been establishing a supply chain to deliver fresh Australian milk into China. In 2014 Qantas Freight was the first air freight carrier to carry fresh Australian milk into China, and today it carries the largest quantity of milk between the two countries. Qantas Freight has uplifted 33 bulk shipments this year, and has proven that we have the pioneering spirit and expertise needed to meet the complex quality assurance protocols in the perishable cold chain logistics market.
Do you have any plans to boost your temperature-controlled capabilities? If so, where? Qantas Freight’s network of 22 freight terminals is already well equipped with temperature-controlled capabilities. We’re pleased to be investing in other terminal equipment that reiterates why Qantas Freight is Australia’s industry leading terminal operator. Our Australian fleet of tow tractors and forklifts is in the process of being completely updated, and we’re proud that we will have the first environmentally-friendly battery electric fleet operating in Australia. A new main deck loader just arrived in our Sydney International freight terminal, demonstrating our commitment to delivering reliable freight services.
Does the group’s international relationships with Jetstar’s regional Asian fleets include freight agreements? Qantas Freight markets the belly space of the Jetstar Asia (3K) network based out of Singapore, including Valuair. We regularly sell 3K shipments that connect onto and from the QF and JQ international networks.
Qantas Freight made a financial year profit contribution of A$33 million (FY13/14) to the group. The seasonal run up to Xmas almost always sees an improvement in freight volumes, but is there more substance to the current market conditions? We have been encouraged by the strong volumes leading up to Christmas this year. Our domestic and international networks are doing well and our wholly-owned JETS Transport Express trucking network has seen strong volumes; and we are growing our trailer fleet in response to this demand.
How do you see 2015-16 shaping up for freight operations now that the AUD:USD exchange rate is around 82 cents and forecast to continue falling to around 75 cents? The lower AUD is good news for Australian exporters and we are still seeing healthy demand in the consumer e-tail space.
Qantas and Emirates appear to operate separate cargo agendas. Can we expect to see further synergies developed? Qantas Freight has a solid partnership in place with the Emirates SkyCargo team and you can expect to see the partnership continue to develop and deepen in 2015.
Qantas Freight has indicated greater use of technology in the years ahead. I understand you recently completed installation of self-service kiosks at your terminals with the four main international terminals now on line with e-processing and regional centres across the country have been connected electronically to Qantas Freight’s central operating system. Terminal staff now carry out the check-in sequence and rely on touch screen tablets which process information for each shipment in real time. Have the touch screen tablets in terminals has been as effective as anticipated? What other innovations are planned? I think we’ve completely revolutionised the customer experience in our Australian air freight terminals. We’ve eradicated old bottlenecks, improved visibility of freight in the supply chain and drivers are spending considerably less time waiting at our terminals. Our suite of online tools and smartphone apps gives customers the ability to book and track freight across Australia and the world. In December we enhanced our domestic tracking tool to include even more milestone notifications and the option to set proactive email alerts, so our customers can really keep an eye on where their shipments are.
Recent Free Trade Agreements with Korea and China should assist Australia’s exports. Will Qantas Freight have to make major adjustments to schedules to access the potential? We continually track customer demand, so if we believe a change is necessary we will respond accordingly.
How have recent global trade embargoes and restrictions to places like Russia impacted Qantas Freight sales? There has been very little impact for Qantas Freight. Russia is not a core market for Qantas Freight.
Qantas is acquiring more A380 aircraft for long-haul routes. The A380 has a relatively poor freight capacity when carrying full passenger loads, how will the new aircraft’s shortcomings affect Qantas Freight fleet planning? Are you considering more full freighter options, particularly if the market improves as expected? Our approach has always been to maximise the belly space available on the Qantas Group fleet, and then to supplement capacity on popular cargo routes with additional freighter services. This approach continues to work well for Qantas Freight.
Will the B767 freighter continue on trans-Tasman operations, given the withdrawal of the passenger B767s? Might it perhaps be replaced by B737 freighters? Yes, the freight B767-300 aircraft continues to operate and is a valued part of our freighter fleet. There are no plans to replace it with a B737 freighter.
PNG has not been as large a major freight market as anticipated, with QF surrendering cargo capacity on the route in June. Was this due to competition by other scheduled carriers and charter operators, soft market or sales efforts not being as effective as they could be? Competition on the route intensified and demand dropped, so we made a call not to continue scheduled services to PNG.
Falling aviation fuel prices have not yet been reflected in Qantas Freight surcharges. Why have they not been adjusted to reflect the current costs? Is there a timetable for your surcharges to drop? Qantas Freight lowered its fuel surcharge on 1 December 2014. Our fuel surcharge takes into account global fuel prices but we also factor in the Qantas Group fuel hedging program as well as foreign exchange movements, meaning that our cost of fuel does not necessarily mirror global fuel price indices. On some routes regulatory requirements determine the fuel surcharge level and we comply with such government regulations.
Finding scheduling opportunities for freight ops in a relatively over-serviced market must be challenging. What routes if any offer opportunities for development? Yes there has certainly been more capacity added on many global freight lanes which makes things more challenging, but we really focus on our strengths. We work hard to be the leading air freight supplier into, out of and around Australia. We know our markets well and find that price isn’t the only driver of customer choice. Our customers choose Qantas Freight because they know we can be relied on, and are committed to our markets. For example we’re the only carrier offering dedicated freighter services between Sydney and Shanghai, and we’ve continued to service this route for more than 10 years. We have a dedicated team in Shanghai. This gives our customers confidence that we know the dynamics of this route, and can be a reliable part of their supply chain.
There has been market talk of an expanded alliance with a major Chinese carrier. If so, any progress? Qantas International already has passenger code-share agreements with China Eastern, China Southern and China Airlines. We continually review our opportunities for alliances and partners linked to market growth expectations.
Prior to joining Qantas in 2004, she held a range of senior positions with British Airways in both Australia and the UK. There, roles included Sales, Marketing and Brand Management, and from 1997 to 2004 she was senior manager Terminals 3 and 4 at London Heathrow.
