Making the best of the situation
Jan Krems has worked in the USA for 15 years now. The Dutchman first crossed the Atlantic with KLM Cargo; since 2014 he has headed United Airlines’ freight division. What Krems likes about the business culture in the USA is that “it’s very straightforward. People simply go for business.”
As a real cargo man, Mr Krems, you must be particularly happy with the recent developments in the aviation business, right?
Definitely. Being part of a passenger airline with cargo capacity gives you a different perspective. While we’re happy to be operating cargo flights at the level that we are at the moment, it would be a good thing to reduce cargo-only operations, because that would mean that the company was doing better overall.
How did United Cargo perform in 2020?
From the beginning of the pandemic, when demand for emergency medical supplies, e-commerce and vaccines started, United nimbly reshaped and adjusted its schedules in response to customer demand.
What do you think enabled this?
Cargo has always been an important part of United’s overall performance; every year it contributes favourably to the firm and outpaces our US competitors. This effort was never greater than last year. This was down to our team adapting quickly to changes and finding creative solutions for our customers. I believe we have the best team in the industry, filled with people with ‘true cargo hearts’, as I like to say.
Beyond this, how do your joint ventures with Lufthansa Cargo and ANA Cargo contribute to this development?
They really help us to provide a greater network reach for our customers. Our cooperation with our partners helps us to meet changing market conditions with adaptability. We’re very grateful for these strong partnerships.
How do you see the short-term future?
We’re optimistic, but also realistic, about the future. We know that we’ll have to adapt to the new normal. What’s still uncertain is when international borders will re-open. I hope there’ll be some normalisation and we’ll be able to fly directly to more destinations again towards the end of this year. We’re eagerly anticipating the increase in belly capacities from passenger demand rebounding and flights increasing. They’re needed urgently, as we also expect cargo demand to continue to grow as economies worldwide recover from the pandemic.
You’ve overcome problems with the engines of your flagship Boeing B777 (see also ITJ Daily of 24 February 2021). Are you happy with the ‘preighter’ model? Or how likely is it that we’ll see real freighters in United Airlines’ fleet?
Our cargo-only programme will continue to be an important tool for United. We expect a mix of cargo-only and passenger flights to continue in the foreseeable future; and we’ll make sure we make the best use of our aircraft and optimise our network. We don’t have any plans for dedicated freighters. Positioning ourselves to stay as flexible as possible is the most effective way we can ensure support for our customers – whatever the future state of the industry may be.
How has the perception of the air cargo business changed?
If one good thing has come out of the pandemic, then it’s the way the appreciation for air cargo throughout the world has definitely become more apparent. Also, we couldn’t have accomplished what we have without collaboration from our colleagues across the airline.
