In February 2024, Etihad Airways appointed Stanislas Brun as its new Vice President of Cargo, based at the carrier’s Abu Dhabi headquarters. Brun is responsible for overseeing commercial operations, including scheduled and charter flights, revenue management, and network planning. He reports directly to Etihad Airways’ chief operating officer, Mohammad Al Bulooki.

Before joining Etihad Cargo, he served as senior vice president of global airfreight at Geodis. Expressing his enthusiasm for his new role, Brun stated on his appointment that it was a privilege to take on the new challenge at Etihad Cargo.

Here in a major media interview, Brun talks airfreight matters with the ACW Middle East supplement.

The Middle Eastern airfreight sector is currently navigating several significant challenges despite an overall positive growth outlook. Do you agree with this opinion?

I agree with the opinion that the Middle Eastern airfreight sector is currently navigating several significant challenges despite an overall positive growth outlook. Over the last five years, the Middle East has experienced a lot of developments, with some companies showing strong growth while others face considerable headwinds. This period has also seen significant changes in management across major airlines in the region, marking a notable shift and a changing of the guard. Such extensive changes within a short timeframe in a region are quite unusual compared to the relative stability seen in other regions.

New players are emerging, contributing to the region’s rapid development and transformation. Government investments in these countries have further bolstered economic growth and development, leading to the establishment of new airlines and expansion of others with ambitious plans each year. These developments are not confined to the Middle East alone; we also observe airlines in India placing orders for new aircraft and targeting expansion, reflecting a broader trend. The Indian and Middle Eastern air cargo markets are evolving significantly to keep pace with their economic advancements, illustrating both the opportunities and challenges facing the sector.

It is reported by IATA that infrastructure at some airports in the region is struggling to keep pace with the growth in cargo volumes. This can lead to bottlenecks and delays. Do you agree with this observation?

Some airports in the Middle East are struggling to keep pace with the growth in cargo volumes, which can lead to bottlenecks and delays. However, there are notable exceptions, such as Abu Dhabi, where significant efforts are being made to develop and enhance infrastructure. Abu Dhabi has demonstrated its capacity to manage challenging situations effectively. For example, during recent adverse weather events and heavy air traffic, Abu Dhabi Airport showcased its ability to handle such conditions efficiently. Despite these challenges, the airport maintained its operations efficiently, with the passenger terminal remaining open and flights from other airlines diverted to Zayed International Airport.

Etihad Cargo is collaborating closely with Abu Dhabi Airports on a master plan for a new cargo terminal, which is slated to open within the next two years. This initiative aims to create a state-of-the-art cargo terminal capable of meeting future demands. Current capabilities already allow e-commerce cargo arriving at Zayed International Airport to be cleared within 12 hours, and ongoing investments are set to support increasing air traffic. Abu Dhabi’s proactive approach, with a robust growth plan and space for expansion, ensures that it is well-prepared to handle increased cargo volumes without facing significant hurdles in the foreseeable future. This contrasts with other airports in the region that may not be as advanced in their infrastructure development, highlighting the varied capacity and preparedness across different Middle Eastern airports.

Etihad Airways management said that the airline has embarked on an exciting period of significant growth in its cargo operations in the UAE. Can you outline what sort of growth you are aiming for?

Etihad Cargo is embarking on a significant growth phase for its operations, driven by substantial investments and strategic initiatives. A key growth area is the pharmaceutical market where Etihad Cargo is developing pharma corridors with the support of Abu Dhabi’s Department of Health, aligning with the vision of making Abu Dhabi a global healthcare hub. Following the successful launch of SecureTech, we are also developing our products further to ensure we are well-placed to meet our customers’ requirements in the future.

Strategic partnerships, such as our collaboration with SF Airlines, have expanded Etihad Cargo’s reach, increasing freighter services to the Chinese market. Etihad Cargo is also focused on enhancing value propositions through improved palletisation, advanced track and trace systems, and temperature-controlled solutions. Additionally, digital integration with customers’ systems is being enhanced for seamless access to Etihad Cargo’s capabilities. These initiatives collectively aim to strengthen Etihad Cargo’s operational footprint, improve service quality, and position Abu Dhabi as a leading global logistics hub. Furthermore, Abu Dhabi is enhancing its infrastructure, including the recent launch of a new passenger terminal and an upcoming dedicated cargo terminal at Zayed International Airport.

How important was it for Etihad Cargo to sponsor MiPharma Global Conference this month? Are you proud to have had such a role?

Sponsoring the MiPharma Global Conference was another way for Etihad Cargo to demonstrate the importance of the industry to the region. Our PharmaLife product is a key focus area for us, emphasising our commitment to the pharmaceutical sector and aligning with Abu Dhabi’s vision of becoming a global hub for healthcare and life sciences.

Hosting such an international event, sponsored by the Department of Culture & Tourism, in Abu Dhabi underscores the emirate’s growing prominence on the global stage. We are proud to have played a significant role in this conference, showcasing our dedication to supporting and advancing the pharmaceutical and healthcare industry.

Do you utilise Road Feeder Services in the region?

Yes, we definitely utilise Road Feeder Services in the region. Etihad Cargo’s network includes daily truck operations within the UAE, providing a 24/7 land bridge between Abu Dhabi, Dubai and Sharjah, connecting various airports, and feeding cargo to and from our hub in Abu Dhabi. In partnership with Noatum Logistics, we operate 26 trucks daily, ensuring efficient cargo movement between airports. Additionally, we extend these services to other countries in the GCC, further enhancing our logistics capabilities and connectivity throughout the region.

How successful have the new temperature-controlled cool dollies added to EASC’s Abu Dhabi fleet been?

The addition of new temperature-controlled cool dollies to Etihad Cargo’s Abu Dhabi fleet is extremely important for Etihad Cargo, providing extra measures to maintain product integrity especially in the summer months. Manufactured in partnership with Bombelli in Italy, these cool dollies have significantly enhanced our ability to maintain the temperature of sensitive cargo during transit, which is crucial for pharmaceutical manufacturers and other commodities like flowers and perishables. This innovation ensures temperature control on the apron, which is essential for handling such sensitive items. Following the implementation of these cool dollies, several pharmaceutical companies have expressed their commitment to further development with us.

Moreover, the inauguration of our state-of-the-art, CEIV Pharma-certified pharma hub in Abu Dhabi has reinforced our customers’ confidence in our capabilities. These advancements highlight Etihad Cargo’s dedication to supporting Abu Dhabi’s vision of becoming a global hub for healthcare, pharmaceuticals, and life sciences.

To meet the increased demand for charter services due to a surge in e-commerce in the UAE, which has seen Etihad Cargo receive 35% more charter requests and operate 23% more charters in 2023 compared to the previous year, you have partnered with Awery. Is this e-commerce coming into the UAE or leaving the UAE?

We are seeing both — part of this cargo is in transit via the UAE, and the rest is destined for locations across the GCC. While there is notable growth in e-commerce directed towards destinations within the GCC due to the region’s developing economies, the vast majority of this e-commerce cargo is in transit to other destinations in our global network. This highlights the UAE’s strategic role as a key logistics hub in the region.

How significant is e-commerce traffic compared with ‘traditional’ cargo traffic?

E-commerce traffic is increasingly significant compared to traditional cargo traffic. It is a major driver of global cargo growth, gradually replacing some traditional retail channels. This shift is evident as general cargo volumes decrease globally while e-commerce continues to expand. However, e-commerce generates unbalanced flows, particularly outside of China and Hong Kong, leading to high outbound volumes with relatively low return loads. This dynamic highlights the growing importance of e-commerce in the cargo industry, although it also presents challenges in managing uneven traffic patterns.

What is the average age of cargo staff in the UAE? Do you have any significant number of female employees? How easy is it to get trained personnel at the moment?

The average age of cargo staff in the UAE is 41. Etihad Cargo has a robust recruitment and development programme designed to attract young, tech-savvy talent to continue driving innovation and leveraging technology. Additionally, 30% of Etihad Cargo’s operations and commercial teams are female, and 22% of the senior leadership team are women. The executive leadership team at Etihad Airways is committed to building a diverse, inclusive and equal organisation, as demonstrated by various support programmes. I firmly believe that gender balance in cargo is crucial, and despite traditional perceptions of the industry, we are seeing an increasing number of women in managerial roles across sectors such as revenue management, sales, customer service, and operations.

Securing trained personnel is currently not a challenge for Etihad Cargo, thanks to our strong focus on training and our reputation as an employer of choice. We attract some of the industry’s top talent across a diverse range of specialities, bringing international experience from various parts of the globe. The collective experience and competencies of these professionals enable Etihad Cargo to maintain its status as one of the best organisations to work for.

Do you employ many foreign nationals in the cargo operation?

Naturally, as Etihad Cargo is based in the UAE, we are a diverse organisation and employ different nationalities from around the world. We currently employ 40 nationalities, drawing from their rich international experience. This diversity enriches our operations and contributes to our global perspective and capabilities.

What role do you think AI will have in the airline’s cargo operations and planning in the coming years?

AI is already playing a significant role in Etihad Cargo’s operations and planning, and its importance will continue to grow in the coming years. Digitalisation is a key priority for me personally, and AI is integral to this transformation. For instance, we utilise AI-powered tools to optimise cargo capacity and streamline handling processes. Furthermore, we recently released Sales Cockpit in partnership with Rotate; this tool enhances our sales organisation’s ability to communicate more effectively and deeply with our customers about actual flows and opportunities. As we continue to innovate, AI will be crucial in optimising operations, improving customer interactions, and driving efficiency across our cargo operations.

Rising operational costs, driven by increased fuel prices and higher insurance premiums, are pressuring profit margins. You must balance these costs while trying to maintain competitive pricing and service levels. Easy or difficult?

Balancing rising operational costs while maintaining competitive pricing and service levels is undoubtedly challenging. However, the industry has recognised this necessity, especially in the wake of COVID-19. There is now a significant focus on optimising cost structures across organisations and improving pricing, booking, and communication channels. Digitalisation is a must for freight forwarders and airlines alike to enhance efficiency and reduce costs while ensuring seamless communication of essential information to shippers and authorities. Additionally, the type of aircraft in our fleet plays a vital role in managing fuel consumption and costs. For example, Etihad Cargo’s fleet has an average age of 7.5 years, and we operate the most recent, fuel-efficient aircraft available. This approach helps us control costs while maintaining our commitment to high service levels and competitive pricing.

What utilisation are you getting from your freighters? Any plans to increase the fleet?

Today, we operate five freighters in Etihad Cargo’s fleet, optimising their utilisation to achieve more than 15 flying hours per day. We are committed to maximising efficiency and meeting growing demand. Looking ahead, we have plans to expand our fleet and will continue to explore opportunities to increase our capacity, ensuring we can support our customers’ needs effectively.

Have you any other thought/observation on the Middle East for my report?

The Middle East is undergoing rapid development and strengthening economically, with the UAE at the forefront. The UAE, in particular, offers incredible stability and has a strong vision for future development, making it an attractive hub for various industries. This dynamic environment presents numerous opportunities for growth and innovation, reinforcing the region’s strategic importance on the global stage.

The post Middle East air cargo market evolves significantly appeared first on Air Cargo Week.