LBA Cargo Ops

[LBAYORKIE]

That makes sense and Im just hoping WFS closing hasnt come as a surprise and is part of a bigger plan otherwise once WFS go that will be the end of cargo at LBA. Still doesnt excuse the many years of totally blanking the freight community and makes it vital that the forwarding community is kept informed on this occassion. I would love to speak Mark Whitby about this but just how would I get in touch?

 

[oldendays]

I would send an email and see what happens. [email protected]. I think that's the right address.

 

[Bobby Ham]

The word on the street is that WFS are closing as a result of the rent on their shed increasing considerably, no doubt so the airport can redevelop the space in to new office facilities for Jet2. The airlines weren't aware of the impending closure (Emirates, Qatar, Air France/KLM all surprised when they were told). Likely situation is that Swissport or dnata will set up in the old BARC/WFS facility at the airport industrial estate. There's too much freight trucked over to Manchester on a nightly basis for them just to let go. The airlines message has been to let them sort it out, it'll be fine. The airport has nailed its colours to the mast, it's low cost all the way, they may talk about wanting to attract full service and long haul, but it's just talk. They've accepted their bucket and spade niche and are looking to protect it.

 

[LBAYORKIE]

Thanks for that insight Bobby, you clearly have an understanding of how freight 'works'

As far as delivering-in export cargo goes, a move back to the airport industrial estate would work. It would also work for trucked imports provided its a Customs approved facility, but it definitely wont work for anything flown into the airport as the cargo has to be moved within the airside environment into a transit shed for clearance. Clearly moving from the apron to the airport industrial estate will involve movement not only outside the airside environment but also on public highways, which is a definite no-no as far as Customs are concerned
Would still make LBA look 2nd class from a cargo perspective without an on-airport Customs approved transit shed. Remember also this will be the first time for at least 50 years the airport wont have had it own transit shed.

I just get the feeling that LBA management arent joined up on this. Although the building may be of use for other purposes has anyone really thought through the implications? Seems like they haven't and with no engagement with either the local forwarding community or BIFA (British International Freight Association) it just adds to all the uncertainty.

I emailed Mark Whitby twice last week. No reply. Might have been on holiday so lets see what this week brings.

Cargo is an integral part of a serious airports operations and LBA have been in denial about this for far too long.

Alan

 

[oldendays]

Yorkie, his name is Simon Whitby, not Mark.

 

[a300boy]

I do wonder if fee increases are also the cause of our loss of routes and airlines as well !
It is their business at the end of the day and money has to come from somewhere just seems odd we are paddling backward and all our eggs are in two baskets at the moment.

 

[LBAYORKIE]

Firstly- sorry meant Simon (where did Mark come from?)

Secondly- Back to the point of non communication, why would the airport take a decision with such a significant impact without consulting/advising the users, that is to say the forwarders.

Anyway as I have commented previously there has never been a second thought given to cargo users in the recent/medium past so Im not sure things will change now. Lets see if Simon Whitby gets back to me.

 

[Tarn Spotter]

The whole freight business has undergone a major change over the last three decades.
Thirty years ago I used to just rent a warehouse to a freight forwarder, he would run the whole operation, today, I provide the warehouse, staff and vehicles (all in the companies name) and they just look after the sales, admin and customs etc.
ONly by running the air freight operation alongside sea and road freight can you get the economies of scale, necessary to make it pay, we have now added a u.k. parcel operation in as well, which dovetails in to the trunking operation over the whole of the u.k.,
Whilst we could send by air via LBA it would be such a restricted service would not be in either our clients or our best interests.

 

[Bobby Ham]

The whole freight business has undergone a major change over the last three decades.
Thirty years ago I used to just rent a warehouse to a freight forwarder, he would run the whole operation, today, I provide the warehouse, staff and vehicles (all in the companies name) and they just look after the sales, admin and customs etc.
ONly by running the air freight operation alongside sea and road freight can you get the economies of scale, necessary to make it pay, we have now added a u.k. parcel operation in as well, which dovetails in to the trunking operation over the whole of the u.k.,
Whilst we could send by air via LBA it would be such a restricted service would not be in either our clients or our best interests.

Not sure what your point is. But if you think that there aren't the airfreight options from LBA then that's the kind of ill informed nonsense that has put the people at WFS out of a job. As for "economies of scale", it's kilo millionaires that are killing independent forwarding, multinational firms rely on the annual kickbacks that they receive from the airlines to keep margins low and counteract the bloat that large scale multimodal ops cause.. Get your clients to give me a call, I'll give them service and price and I'll fly (truck) it out of LBA, it can be done.

 

[LBAYORKIE]

It is true that air Cargo is very different now to what it was when I started in the 70's. The biggest change is 'Just In Time'. Importers want their goods within a few hours of the international flight landing. Where as once they were prepared to wait for the freight to be transferred at Heathrow to a truck (to arrive the following day) or domestic flight to LBA are long gone. Most importers clear the goods at the first point of arrival. In the past this was Heathrow but now, like as not will be Manchester for those in the north, or to a lesser extent Birmingham and Newcastle, all of which have wide body passenger flights which carry huge amounts of cargo. Emirates for example is a real 'Golden Goose'

All I want at the moment is for Simon Whitby to get back to me so I can discuss the matter with him- put the forwarders side of them matter and remind him that not having the ability to handle import cargo is not going to enhance his chances of attracting any wide body or other operators interested in freight.

 

[paully]

and remind him that not having the ability to handle import cargo is not going to enhance his chances of attracting any wide body or other operators interested in freight.

I think you have answered your own question. As someone above said the owners have accepted that LBA is a bucket and spade airport and are working to keep what they have got. They see the new terminal as a mega investment for holidaymakers and that`s that. I suspect that the admirable Mr Laws saw things your way and was going down that road, until he jumped before he was pushed. The new CEO, whenever that takes place, will give a firm clue as to which way the owners are thinking.Until then, everything else will be just speculation.

 

[a300boy]

Don’t think they have any choices !
No long haul operations feasible and most European destinations covered fron Manchester and the airlines unwilling to risk diluting the market.

 

[LBAYORKIE]

Paully, I always got the impression that David Laws and Chris Sanders were very keen to appeal to the business community (to even up the balance with bucket and spade) and its a real shame they have gone. Nothing was mentioned at my last meeting with Chris Sanders so I was really surprised and disappointed when he/they left after such a short time. I really hoped with their background and enthusiasm they would be able to attract new services.

Having said the above there is no indication that WFS's decision was anything to do with LBA management so on this occasion I think they need to be given the benefit of the doubt. Its how they will react thats important.

 

[White Heather]

Ironic then that on leaving the tunnel under the runway, the large airport banner at the side of the road is now for a Cargo operator!

 

[Aviador]

Don’t think they have any choices !
No long haul operations feasible and most European destinations covered fron Manchester and the airlines unwilling to risk diluting the market.

The dilution of the yeild comes from competing with airlines from the same airport. Offering a unique opportunity for local departures such as Leeds has its advantages for the airlines too if it's unlikley additional airlines will seek to compete on similar routes.

 

[LBAYORKIE]

White Heather- well spotted. Its a smaller local forwarder who have invested in this advertising and one of the ones who will be hit hardest if WFS are not replaced in some form.

a300boy- The situation with cargo is a little complicated. Currently none of the airlines (except FlyBe I think) actually have a cargo handling contract. I think this costs quite a lot of money and used (at least) to be a flat charge made by the airport company to the airline per flight whether cargo was carried or not. For their money they attended each flight and took any cargo to the transit shed (and I suppose in reverse for exports). More airlines would open their flights to cargo if the fees were not so high, having said that the aircraft used at LBA are not ideal for cargo so really only good for small consignments.

To give some idea the WFS facility handles around 3500 tonnes of cargo annually, all of it trucked but each of these shipments has to be Customs cleared at import ,duties/taxes paid and be delivered to the consignee. Exports also have to be delivered to WFS be Customs cleared as well as security scanned. All this is revenue and keeps quite a few people directly at WFS and many more in the wider forwarding community in jobs.

Lets all hope this has a happy ending.

 

[a300boy]

I remember when a man who was an ex staff member of British Airways set up a forwarding company on the estate behind Murgatroyds then Servisair became the cargo forwarder on the Airfield.
Hope we don’t let another local employer and source of income slip away.

 

[White Heather]

The word on the street, as posted above, is wide of the mark. I have been in touch with one of the directors at LBA who confirms LBA only just found out about this matter and it is not arising due to any actions taken by LBA. It is described as a big loss for LBA and they will now try to find a replacement for WFS. The decision to close is due to other issues within WFS (not at LBA) and, as has already been posted, other airports are also losing their presence. Full details as to why the closure was taking place were given to me but it would be incorrect of me to post them on here. LBA have not engineered them out in any shape or form.

 

[Bobby Ham]

The word on the street, as posted above, is wide of the mark. I have been in touch with one of the directors at LBA who confirms LBA only just found out about this matter and it is not arising due to any actions taken by LBA. It is described as a big loss for LBA and they will now try to find a replacement for WFS. The decision to close is due to other issues within WFS (not at LBA) and, as has already been posted, other airports are also losing their presence. Full details as to why the closure was taking place were given to me but it would be incorrect of me to post them on here. LBA have not engineered them out in any shape or form.

So is the hangar not being demolished and a new office building being constructed? Despite the airport knowing nothing about it have Jet2 workers not been told that their days in the portakabins are numbered?

 

[Bobby Ham]

It's not looking good for an alternative being put in place by the way, Swisport aren't at all interested, which given their history you can maybe understand. The other logical option would be dnata who by all accounts are similarly uninterested due to the airports indifference and are looking at possibly setting up a trucking route ex the round boys on the Euroway. But I'm sure this is all nonsense of course, the airport just can't say much as it's confidential.