“No future without change”
Jacques Leijssenaar, United Cargo’s vice-president for the Emeia region since 2015, addressed some of the key challenges facing the aviation sector in his talk to the Propeller Club, Port of Basel. Digitalisation, sustainability, demographic developments are all putting the industry – and the classic business model of the division of the US carrier United Airlines – to the test as never before.
Jacques Leijssenaar started his lecture to the Propeller Club, Port of Basel, on 21 March 2023 with a rather striking contrast. His assessment of the latest developments in the aviation industry is that “technically highly sophisticated aircraft sometimes seem to be backed by operating processes that seem to date from aviation’s equivalent of the Stone Age.”
United Airlines is setting a good example, however. It has plans to order 100 widebody units to rejuvenate its fleet, and has also decided to tackle the major challenges of the industry beyond day-to-day business operations.
Finding the overarching theme
Despite some lean spells, airfreight has been one of the winners of the past decades, according to Leijssenaar. “Globalisation has led to a general expansion, and profits were in full flow during the outbreak of Covid-19.”
At Schiphol, the leading airport in the Benelux region, for example, 25% of all economic activity now depends on air cargo. Despite some red flags – political and economic conflict around the world, amongst many others – the outlook is rather bright, even though some major challenges remain.
Leijssenaar likes to keep one eye trained on the meta-themes digitalisation, sustainability and demographics. Digital progress is a given, with e-AWB market penetration now standing at 70%, and online booking rates at 20–50% for most airlines. “However, we don’t yet have a standard for API interfaces, amongst other things,” Leijssenaar commented.
Technological innovation a key to the future
When it comes to sustainability, United Cargo believes in technological innovation. Efficiency measures, such as route optimisation, should go hand in hand with more fuel-efficient aircraft and alternative fuels. “Using SAF emits up to 80% less CO2,” Leijssenaar knows. The crux of sustainable solutions with viable business models must be solved on a permanent basis.
However, Leijssenaar believes demographic change is the greatest challenge we face in the future. The lack of personnel can indeed be partially countered through robotics and automation – but, he underlined, “you simply cannot do without the personal touch.”
“We have to compete with players such as Amazon in terms of personnel policy, and ensure that we have our own junior staff,” he continued. One key to alleviating staffing needs he cited could be more standardisation in the CEP sector, for example.
Open ears, open minds
These challenges won’t tolerate delay. “No future without change,” Leijssenaar concluded. “We don’t have a choice but to move on.” His theses met with open ears and open minds in his Propeller Club audience.