A story of two Romands
In conversation with Lorenzo Stoll, head of cargo, Swiss International Air Lines. Air cargo has gained in importance in Swiss International Air Lines of late. The unit’s motto – ‘Connecting Switzerland to the World, we are the Airline of Switzerland’ has now been augmented by ‘and of the Swiss economy’. In May at Air Cargo Europe freight boss Lorenzo Stoll, a Romand himself, told ITJ editor Andreas Haug what this means for trade and industry in the French-speaking part Switzerland.
How did last year go overall for Swiss World Cargo, Mr Stoll?
2022 was the best year we’ve ever had. This was due to a unique combination of an exceptional market environment with very high demand and relatively low overall market capacities. Our contribution to the airline’s overall result was correspondingly large, which makes us very proud. The result vindicated our strategy of operating as a niche carrier that focuses on high-value cargo.
What are your expectations for 2023?
So far, the year has gone better than 2019, but not as well as 2022, of course. This is partially due to the recovery of the market’s belly capacities and of ocean freight. On top of this demand for consumer and technology goods has also contracted. Globally, I see business normalising, but a closer look at regions and routes reveals differences. Exports from Switzerland are doing very well. Volumes from the USA, on the other hand, are a problem child, in my eyes.
Swiss is turning 20 this year. How has the contribution of the freight business developed over this time?
Cargo activities have always represented very important additional business for Swiss International Air Lines – with the exception of the pandemic years. We contribute to the airline’s ability to serve a fairly large network for a relatively small home market.
During the pandemic we became more relevant, and it’s now become clear to everyone in the airline that cargo is much more than just ‘nice to have’. We’re much more closely involved in strategic decision-making processes now, such as planning of our network, routes, aircraft types as well as other investments.
Half of the country’s exports by value now leave Switzerland by air. This isn’t surprising in the light of the importance of the watch and pharmaceutical industries.
These two sectors are pillars of the economy in the Suisse Romande. Other impulses also come from there – how did your cooperation with Swiss Airtainer come about so rapidly, for example? (See also page 10 of the Aviation Special supplement published with ITJ 19-20 / 2023.)
For me, this is Swiss entrepreneurship at its best. I come from the French-speaking part of Switzerland too, as you know. It all started when I read in a regional newspaper about a start-up from Yverdon that was thinking about a new airfreight container that would be self-sufficient, and lighter and more networked than others.
So I picked up the phone immediately and called Eduard Seligman, the local entrepreneur behind Swiss Airtainer, and told him about my interest in his product. He pointed out that it was still being developed, but we soon agreed to ‘innovate together’.
So the Swiss World Cargo, with its wealth of experienced, helped the new company Swiss Airtainer with all the paperwork. We subsequently carried out the first flight with the finished product.
What was it that impressed you most about this new project?
What I like particularly about it are the way it addresses the issues of weight and efficiency. That brings me to the next point close to my heart, namely sustainability. Swiss is committed to achieving its goals by investing in fleet renewal; optimising flight operations and using SAF. We aim to emit 50% less CO2 by 2030 (vs 2019) and become CO2 neutral in flight operations by 2050.
Our division contributes to these efforts by driving innovation to optimise its cargo operations. We work hard on this with SAF, using bioplastics and cardboard instead of wooden pallets, and the like. Now we can additionally point to our partner Swiss Airtainer, whose container is 250 kg lighter than a conventional unit. For an airline such as ours, that specialises in pharmaceuticals and operates thousands of flights a year, that makes a very substantial difference. So we’re glad to have stumbled upon Swiss Airtainer.
We – does that mean you personally?
Exactly. That’s one of the privileges of heading a division and being involved in strategic deliberations. It’s one of the things I find so exciting and so typically Swiss – a small company from nowhere comes up with such a brilliant idea so quickly. I think it’s ‘the next big thing’ in the industry.