FedEx's Asia Pacific hub

The Baiyun International Airport in Guangzhou serves as a comprehensive intra-Asian network providing next business day delivery services among 22 major cities in Asia

GETTING millions of packages from point-to-point and having them arrive on time is no mean feat.But for the world's largest express transport company Federal Express (FedEx), the delivery of these packages - whether they are technology gizmos, chemicals, food items or documents - in a safe and efficient manner is all in a day's work, around the globe.In Asia Pacific where FedEx has been present since 1984, the Baiyun International Airport in Guangzhou, southern China, serves as the new "home" for the company's regional hub.From the moment you arrive at this US$150 million (RM522 million) spanking new facility, it is easy to get carried away by the buzz of activities wrapping the place, even in the dead of the night. Located on the east side of the international airport's passenger terminal, the hub is sprawled over 63ha and has more than 800 people on its payroll. Logistics giant FedEx closed down its Asia Pacific air transhipment hub in the northern Philippines at Subic Bay earlier this year and moved to China.Subic became the regional hub of FedEx's Asia Pacific operations in 1995 after the closure of the US naval base in 1992.The new hub is described by the company as a comprehensive intra-Asian network providing next business day delivery services among 22 major cities in Asia - including Penang and Kuala Lumpur - and linking these cities to over 220 countries and territories in FedEx's global system. A total of 136 flights using MD-11 and Airbus 310 aircraft land at Baiyun airport each week, where the hub boasts of facilities which include the ability to sort up to 35,000 packages and documents per hour using state-of-the art technology which is teamed with manual work carried out with precision and little room for error. "This facility has been built for expansion and will be the centrepoint for our business for the next 20-30 years," FedEx Asia Pacific's vice-president for planning, engineering and support Dennice Wilson told visiting Malaysian journalists recently. This, she notes, is in contrast to the Subic facility which was able to sort 12,000 packages and documents an hour and operated on a completely manual process. In addition to the new hub's unique package and sorting system which is made up of high-speed sorting lines, conveyor belts, along with primary and secondary document-sorting splits, FedEx's Guangzhou hub features a ramp control tower - which is a first for an international air express cargo company facility in China. It also boasts a dedicated security guard force, customs examination area and customs offices, along with showers, locker rooms, canteen and food services for its employees. Baiyun airport currently has three runways, with the third runway leased to FedEx. With five runways outlined in the airport's masterplan, a fourth one is slated for completion by 2010.Wilson notes that the infrastructure of Chinese airports is very good and is pleased that FedEx has been part of the authorities' masterplan in Guangzhou by saying that the goals of the company and those of the local authorities' are "very much aligned.""We are positioned now with everything we need and we hope that business grows around the hub since it is the interest of us, the government and our customers," she adds, saying that the geographical position in southern China for the hub was perfect for FedEx's hub-and-spoke system. Hub-and-spoke is a transportation system design in which large hub terminals are used for freight consolidation.FedEx Asia Pacific president David Cunningham Jr said FedEx is in the region for the long term and will continue investing, in a bid to facilitate global trade. "This is not the first economic cycle we have been through," he told reporters when met in Hong Kong, adding that the new Boeing 777 planes which the company has committed to is one example of the company's commitment to continuously supporting trade in this part of the world. FedEx was reported earlier this year to have 30 Boeing 777 planes on order, with an option to order 15 more. Wilson said some of the aircraft currently in use at Baiyun will be replaced with the new 777's which are more efficient planes and can go further. "We will get the first three flights of 777 in Asia Pacific next year and then transition some of the MD-11's," she added. With its vantage position of operating away from the cargo complex in its stand-alone hub and the addition of more runways at the airport, FedEx is poised to stand out as one of the more important players in the growth of Baiyun, which is on its way to becoming the largest airport in China's Pan-Pearl River Delta.

From the A300 to the A350 XWB: Pioneering leadership

Over the past 40 years, Airbus has played a key role in the international air transport industry’s evolution. Achievements such as improving manufacturing techniques, developing global cooperation, and reducing aviation’s environmental impact result from Airbus’ ability to understand market and passenger expectations, and answer them with solutions that have become world standards.

At a time when others were concentrating on three- or four-engine aircraft, Airbus entered the civil aviation scene by developing the first ever widebody twin-engine, the A300B, in the 1970s. This aircraft featured low fuel consumption, reduced external noise levels and highly efficient operating costs, as well as Category 3 landing technology, enhanced comfort and containerised cargo.

In the early 1980s, Airbus improved the A300B with a new concept of forward-facing crew cockpits – which reduced the crew to two pilots while improving safety and introducing new standards for civil aircraft.

Next, it developed a shortened version of the A300: the A310. It was the first commercial widebody to be certified for two-man crew operations from the start, as well as the initial aircraft to use composites for primary structure components.

In the late 1980s, Airbus broke new ground again with the A320 – which set standards for efficiency and cabin comfort, and introduced fly-by-wire flight controls and side-stick controllers into civil aviation.

In the early 1990s, Airbus introduced ultra-efficient aircraft for the medium- and long-range markets: the A330 and A340.

The recent introduction of Airbus’ 21st century flagship A380 marked a new era. Not only is it setting new passenger comfort standards, the aircraft is raising the bar for environmental standards with its low fuel consumption and noise levels – as well as reduced CO2 and NOx emissions.

The A350 XWB will continue Airbus innovation, utilising new technologies and advanced materials such as 53 per cent of CFRP (Carbon Fibre Reinforced Plastic) while keeping the benefits of commonality.

Airbus always has been forward-thinking, with the environmental impact of its products high on the agenda. Reducing noise and fuel consumption – and thus emissions – as well as managing the full lifecycle of its aircraft all are major objectives. In addition, Airbus is the first aircraft manufacturer to have each of its sites and products awarded ISO 14001-certified status.

To support its growth, Airbus has developed a logistics system to move components over Europe using the specially-designed Super Guppy and Beluga cargo aircraft, ships and road transportation vehicles. Airbus also has created Centres of Excellence to take advantage of local knowledge and skills, and harmonised CAD/CAM systems to create a single virtual mock-up system.

Finally, Airbus revolutionised the industry by convincing European partners to develop and manufacture aircraft components while assembling the aircraft on a single production line. Airbus continues to pioneer with the opening of the A320 Final Assembly Line China (FALC) in Tianjin last year, a clear sign of its innovative approach to international cooperation. Airbus has been built on its ability to draw on the best of Europe and develop innovative products in anticipation of market needs. Airbus employees – engineers, pilots, salesmen, marketers, managers, technicians or workers on the production lines – always have been driven by a spirit of innovation and passion for aeronautics.

To safeguard this technology leadership position and to ensure its global competitiveness, Airbus relies on its ability to innovate and build the world’s most efficient aircraft. Today, Airbus 2020 sets the path for a huge R&T programme over the next 20 years, which will ensure that innovation remains at the heart of Airbus development.

Airbus’ vision for 2020 is to be a top-performing enterprise building the world’s best aircraft to its customers.

AirAsia spreads its wings to American football

AIRASIA is fast becoming synonymous with sports.
It has already penetrated the hugely popular English Premier League market, is a partner of the AT&T Williams Formula One racing team and is also the official low-cost airline for Manchester United.
Now, it has spread its wings to American football with its two-year sponsorship of the Oakland Raiders in the National Football League (NFL).
American football may not be as famous or as popular as soccer in this part of the world but that has not stopped AirAsia Group CEO Tony Fernandes from trying to promote the game here.
“It’s a very popular game in the US and we also want it to be one of the sports in Asia. We (AirAsia), with the help of Oakland Raiders, will make efforts to promote the game in Asia,” Tony told a press conference in Oakland last week.
His made those comments after AirAsia’s “Xcellence’’ – its Airbus A340 – touched down at the Oakland International Airport for the first time last Monday. On board the flight was a group of 10 journalists from Malaysia, Singapore, Thailand and Indonesia.
Also present were newly-appointed Malaysian Ambassador Datuk Seri Dr Jamaludin Jarjis, the city’s Mayor Ron Dellums, Oakland Raiders owner Mark Davis and CEO Amy Trask, AirAsia X CEO Azran Osman-Rani and director Datuk Lim Kian Onn.
“This is a very proud moment for us.
“We are excited to associate ourselves with an iconic team like Oakland Raiders. This partnership will greatly enhance our efforts to boost our brand globally.
“We are already a well known brand in Asia. We are on our way to becoming a household name in Europe.
“And now, our relationship with the Raiders will allow us to establish our brand in the United States,” said Tony.
The no-frills airline’s foray into the NFL is also a way for AirAsia to get landing rights in the US.
AirAsia had, in March, secured landing rights in Stansted, England, for the European tourists.
“We are now in the process of negotiating with airports in the United States on the possibility of operating flights into America,” said Tony.
“American destinations are very much in our long-term plans as demonstrated by our recent order of 10 Airbus A350 aircraft.
These planes will be delivered beginning 2016.
“However, we are exploring ways of commencing flights to the US by the end of next year.”
Tony also said that it would cost an American tourist just US$350 to fly from Oakland to Malaysia.
Once it takes off, Tony expects the NFL and Oakland Raiders’ fan-base to expand in Asia.
Speaking of the Raiders, the 10 journalists, including yours truly, were treated to the season-opening NFL match between Oakland Raiders and San Diego Charges at the Oakland Alameda County Coliseum Stadium on Sept 14.
Unfortunately, the Raiders lost 20-24. Raiders owner Davis was enthusiastic about AirAsia’s sponsorship, saying: “Not only is Xcellence the name of the plane but it is the driving force behind both our organisations to promote the game.”

ATR delivers 72-500 VIP for Thai elite

Want to know how Thailand's elite travel? Here are pictures of the first of four ATR 72-500s in VIP configuration ordered by the Royal Thai Air Force. This remaining three will be delivered by end-2009, says ATR."This first ATR features a state-of-the-art VIP cabin interior and will be dedicated to the transport of the Thai Royal Family, as well as other government and military officials," says ATR.

Up close and personal

AZRAN Osman-Rani unabashedly confesses that he gets distracted and bored quite easily, which he has self diagnosed as ADD (attention deficit disorder)! It’s a mighty challenge, he admits, to focus on anything for long and he constantly needs to be occupied to keep him going. And by that, he means he persistently craves new challenges. Indefatigable, indeed.
“I am more at ease when I have many things to do. If you do not give me anything to do, I can become very edgy and restless … I will go crazy,” Azran says.
It’s little wonder then that the AirAsia X chief executive officer revels in the high-paced, high-pressure airline industry.
“There is enough challenge here,” he says.

“In the first year, it was all about starting the company, then it was about getting new planes, then expanding the fleet size and routes. It’s been crazy.”
His career path in the turbulent sector began two years ago with a phone call, not just from anyone but from Datuk Seri Tony Fernandes, founder of low cost carrier AirAsia, whose triumphs in the industry are only too well documented.
Azran was then a senior director at Astro All Asia Networks plc. Suffice to say he got an earful of Tony’s pitch about AirAsia X; he wanted Azran to head the airline, which at that point, had only one aircraft and a bold business plan.
“The one thing that got me hooked was when Tony said ‘people think this cannot be done’. I thought – ‘wow, everyone in the world says this model can’t work’. That made me want to do it even more. I jumped at the opportunity and took a huge pay cut to join the team,” he recalls.
Despite the past year being one of the global airline industry’s worst times, the low cost long haul carrier has steadily increased its routes over that period. It’s not done yet of course.

“We are flying into new markets to secure more routes,” he says.
It has not been smooth sailing all the way. More recently, temperatures flared when the airline was denied the rights to fly to Sydney and Seoul.
“It was heartbreaking,” says Azran. But there’s no time to sulk. The company is moving on and as Azran says, there are many other opportunities out there.
When the StarBizWeek interviewed him recently, he had just returned from the Middle East. Sporting a red T-shirt and jeans, he enthuses that AirAsia X is keen on the Mid-East market and expects to launch some routes to the region by year-end.
How does a guy like Azran, with an insatiable thirst for the get-go, pass time when he’s not working? Why, sports of course.
“It’s important to release stress. Otherwise, the stress can build up and you will explode,” he says.
Azran is passionate about running marathons. When he can, he runs a 5km circuit around the Klang Valley on Sunday mornings.
He takes pride in having managed to complete the 42km Gold Coast Airport Marathon in Australia last month. He has also signed up to run in several international marathons in the months ahead, namely the Borneo International Marathon and Melbourne Marathon in October and Hangzhou Marathon in November.
In high school, he was a serious field hockey player. But when he went to the United States for his tertiary education, he discovered that field hockey was regarded as a “girl’s game” and that “real men played ice hockey.”
Soon, he found a new passion – the ultimate frisbee. Ultimate frisbee is relatively new to Malaysians but Azran is keen to build its following. He spends Saturday mornings at Kolej Bandar Utama coaching students in the sport.
Besides, spending time with youths makes him “feel young and sane”, says the father of three boys. Azran is married to Azreen Pharmy, a former news anchor with Astro.
Azran’s background in engineering comes handy at work, as he says it is not easy for the engineers to fool him by giving excuses for any technical problem that crop up in the aircraft.
“I get very upset when people don’t know what they are doing. When someone tells me something is wrong, I will keep on asking them why. This is how we figure out the root cause of the problem,” he explains.
Azran considers himself to be an accessible and engaging boss.
“I am open to new ideas. I do not have as much experience in the aviation industry to claim to be an expert. I also want to create opportunities for our staff.”
“Look at our team. It is small, but it’s diverse,” he says.
Azran says he learnt about the value of diversity from Malaysian tycoon Ananda Krishnan while working under the latter in Astro.
“We should actively seek to form a diverse team that cuts across racial and gender barriers. We have way too many monotonous companies. Just look at the top 50 listed companies, open their annual reports and take note of their management team. Most of the time, they are either very Malay, or very Chinese,” Azran says.
The two gadgets he never leaves home without – his Blackberry and laptop. And this – he’s got a “bucket list”.
“In my laptop, I have a list of things to do before I die,” Azran says, such as personal goals, and those in relation to health, finance and family.
Not surprisingly, one of the things in the list is to fly a plane. With that in mind. Azran is currently trying out the flight simulator.
And surprisingly, Azran wants to be a stand up comedian, to be on stage in front of thousands and make them laugh.
Clearly, an optimist, he says: “The best things have yet to happen.”

JAL retires Boeing 747 classics

Japan Airlines retired its last Boeing 747 classic last week. Here are some pictures of the aircraft, a 747-300, before its last flight from Honolulu (hence the Hawaii garland!).Below are some others from JAL showing the -100, -200 and -300 in operation.

Southwest Airlines "Day in the Life of A 25 Minute Turn"

This video shows you what life is like working on the ramp at Southwest Airlines.