“I’ve really got the best job!”
Peter Gerber has been a Lufthansa employee since 1992. In 2014, after many years working in the passenger segment, he took charge of the airline’s freight business. ITJ editor Andreas Haug got the impression at Air Cargo Africa in February that he has not regretted the move. The Johannesburg trade fair was another opportunity for Peter Gerber to promote the company’s international reputation.
Mr Gerber, does the end of Airbus’s A380 suggest that aircraft with more than two engines have had their day?
Yes, definitely. You can see this from the fact that not one airline has ordered an aircraft with more than two engines in recent years. We’re gradually and flexibly removing the triple-engined MD-11Fs from our fleet; at the end of this process we’ll only have the more modern Boeing B777Fs in our cargo fleet.
Today you can work with smaller aircraft, but with the same unit cost basis, which is mainly due to lower fuel consumption – and that’s good for everyone: the environment, our own costs, and the like.
Let’s address some hard facts: overall, how did 2018 go for Lufthansa Cargo?
We managed to improve the record result we attained in 2017 by 2%, bringing it to EUR 268 million. Our airfreight performance rose by 1% to 8.934 billion ftk.
And what do you expect for 2019?
First of all – I don’t see any reason why things should go badly. The year did start a little slower than in 2018, though, and you can feel a degree of reticence all around. I think this is the same caveat that everyone else has at the moment.
It’s difficult for me to tell at the moment quite what this will lead to. It’s not clear yet whether it’s only a temporary phase, or whether the industry as a whole will actually have to adjust to a declining business opportunities.
There’s the unforeseeable and the foreseeable, really, isn’t there? The Sino-American trade conflict and Brexit sort of fall in both categories, don’t they?
Sort of, yes. Let’s see whether Brexit really happens, and how. But even if these factors don’t have a direct impact on airfreight, it also makes a difference what people think. I believe a degree of insecurity predominates at the moment, leading to restraint. If too many consumers hold back at once, there may be a real decline in business activity.
What are the business conditions at your hub at Frankfurt airport like?
They’re actually quite stable. One good aspect is the hub’s perfect geo-economic location. I always say that Frankfurt is to freight operations what London is to passenger services.
There’s also a downside to the hub though, for example some operational restrictions. A ban on night flights, for example, cut approximately EUR 40 million out of our annual balance sheet. Frankfurt can’t be replaced, however; we pay for the location.
What is the contribution of Swiss WorldCargo to the group’s result?
We operate two different brands and have two separate AWBs, but we have the clear aim of harmonising processes comprehensively over the next five years. This includes both IT as well as sales activities.
Looking beyond the group itself for a moment here – how are your various joint ventures developing?
Every project that has already been implemented is actually running incredibly well. Expansion is taking place step by step. We’re active in both directions with ANA Cargo, and in the first half of this year we’ll also be ready with United Cargo and Cathay Pacific Cargo.
