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IATA seeks 'transformation' of air cargo, to keep up with passenger side

IATA calls for continued transformation of the air cargo industry at the 10th World Cargo Symposium (WCS) in Berlin, placing a focus on raising service levels to "provide more personalised customer service" and keep revenues ahead of costs amid challenging environment.

"Compared to other modes of shipping, air cargo is a premium service. Yet shippers give the industry a satisfaction rating of only seven out of 10 on average. That is not good enough. The industry must raise the service quality of air cargo," said Mr Tyler.

IATA estimates that volumes will increase by three per cent this year. Under pressure from integrators, competing modes of transport (land and sea) and increased cargo capacity in the passenger fleet, yields are expected to fall a further 5.5 per cent in 2016.

Mr Tyler, former CEO of Hong Kong's Cathay Pacific Airways, questioned why air cargo has not undergone the same thorough transformation process that has spurred strong growth on the passenger side of the business, reported Mumbai's Stattimes.

"Is it a coincidence that after a decade of change, load factors are at record highs and airlines are finally rewarding their investors with adequate returns? We need similar breakthroughs on the cargo side of the business.

"There are lots of potential disruptors out there梔ata-sharing platforms, new market entrants, or e-commerce. The challenge is to stay a step ahead in satisfying customer expectations," said Mr Tyler.

To resolve the issues surrounding the shipment of lithium-ion batteries, the IATA head added: "Banning lithium-ion batteries from air freight does not solve the issue of counterfeit or non-declared goods.

"The issue lies with the lack of enforcement of the regulations by governments. So it is essential that authorities redouble their efforts to enforce the regulations and close the loopholes that prevent prosecutions of serial offenders."