Airport operators pivot to cargo services to survive pandemic

first_imgThe company also reduced its operational costs at storage facilities across the AP II airports by 40 percent compared to normal operations, Riyanto added.In addition, AP II provided warehouse facilities for airlines via its subsidiaries PT Angkasa Pura Kargo and PT Gapura Angkasa. For example, Gapura Angkasa, which owns a warehouse more than 8,900 square meters in size at Soekarno-Hatta International Airport in Tangerang, Banten, provides access to facilities like cold storage and animal storage.Tapping into these aspects of the cargo business line, as opposed to relying on air passenger traffic, has allowed the airport operator to begin softening the impact COVID-19 has had on the industry.According to Statistics Indonesia (BPS), domestic air passengers fell 85.18 percent yoy in April to around 840,000 people, while international air passengers fell 98.26 percent yoy.The drop in passenger traffic has hit airport revenues hard, as data from the 2019 Airports Economics Report, released by Airports Council International (ACI), shows that 54.6 percent of total airport income in the Asia-Pacific comes from passenger-related revenues.AP I cited revenue diversification through the establishment of an airport ecosystem that includes a cargo village as part of its survival strategy during the pandemic. It aims to create a new business stream that depends little on aircraft and passenger traffic, it stated.“Angkasa Pura I has prepared a rebound strategy to anticipate the new normal and to prepare for a jump in the company’s growth in 2021 through a multidimensional performance improvement program,” AP I president director Faik Fahmi said on Saturday in a press release, adding that the current situation was “challenging for airport operators”.AP I logistics subsidiary Angkasa Pura Logistics (APL) launched its own air freight service on June 4.It aims to provide logistics services that can reach areas that are difficult for commercial planes to access due to short runways. For its operation, APL would focus on the delivery of marine and perishable goods, which require quick shipping times to ensure freshness.Transportation expert Djoko Setijowarno told the Post that the companies made the right decision by focusing their business on the cargo sector.“It’s a step that must be taken during the pandemic as passenger numbers are slumping. Logistics could serve as a source of income for the airports and there is also huge potential for domestic cargo in Indonesia,” Djoko said in a phone interview on Monday.Topics : State-owned airport operators Angkasa Pura I and II are turning to cargo and warehousing services to shift their revenue source as the government’s social restrictions continue to affect air passenger numbers.Operating in an archipelagic nation, where air transportation is essential to connect far-flung islands, Angkasa Pura (AP) II sees potential for growth in the air cargo industry in Indonesia, despite having recorded a decline in cargo volume at its airports during the pandemic.Air freight volume at its 19 airports fell 34 percent year-on-year (yoy) to 79,556 tons between April 1 and June 7, data from AP II cargo subsidiary Angkasa Pura Kargo (APK) show. However, the operator managed to record 34,000 tons of cargo traffic between May 7 and June 7 alone. “The cargo volume is not as high as in normal conditions. But the shipment volume, which still stands at 34,000 tons, shows that business prospects in air shipment remain stable and have the potential to grow this year,” AP II president director Muhammad Awaluddin said in a press statement on Sunday.Awaluddin also noted the absence of restrictions for air cargo amid the pandemic, as well as the decision by commercial airlines to modify their fleets with freighters to support the airport cargo business.To further capitalize its air cargo business, AP II through APK established a partnership with cargo agents while also employing cost-efficiency measures at its storage facilities.“We are consolidating cargo loads from several sub-agents and bundling them together so they can be shipped using a chartered carrier. We already established charter cargo flights twice a week in June, and we aim to double it to four flights per week,” APK operational director Riyanto Cahyono told The Jakarta Post via text message on Monday.last_img read more

Pension fund for DuPont weighs cross-border move to Belgium

first_imgUS chemicals firm DuPont de Nemours has confirmed it is considering to move the pensions of its Dutch workers to its European pension fund in Belgium.The multinational’s €1.15bn Dutch scheme said it intended to join the Mechelen-based European pension plan in 2017.However, it also noted that it still needed approval from Dutch pensions regulator De Nederlandsche Bank (DNB), the Dutch tax authorities and the company’s works council (OR).The employer’s current contract with the pension fund is to expire at the end of 2015, but the scheme made clear it expected the contract to be extended by another year. DuPont Netherlands is no longer the scheme’s main sponsor, following the establishment of Chemours Netherlands as a soon to be fully independent and listed offshoot of the US firm.The pension fund did not respond to requests for comment from IPE sister publication PensioenPro.The Pensioenfonds DuPont is not the only Dutch scheme to consider a cross-border move of late, with the pension plans of energy companies ExxonMobil and BP recently making clear that they were considering such step.Clearing house Euroclear and pharmaceuticals company Johnson & Johnson already moved their pension schemes to Belgium.Companies usually cite synergy benefits, as well as increasing regulatory pressure in the Netherlands, as the chief reasons for merging their international pension plans.The Pensioenfonds DuPont returned 25% on investments last year.Both its official policy funding and its daily coverage stood at approximately 118% at March-end.last_img read more

Family reunion

first_imgMariya Dondonyan | Daily TrojanAlumni from the class of 1989 gather in front of Doheny Library on Saturday for a homecoming tailgate before the football game against the University of Colorado, Boulder. Alumni Park was sectioned off for the day for alumni from different graduating classes to participate in homecoming festivities.last_img

Olympia Named a Top 100 Best Place to Live

first_imgFacebook195Tweet0Pin0Submitted by LiveabilityOlympia has been named one of the Top 100 Best Places to Live 2018 by Livability.com, outpacing more than 2,100 cities (with populations between 20,000 and 350,000) in this data-driven ranking.The list is an exclusive, independent, editorial ranking by Livability.com. The 2018 ranking builds on a process initially developed with one of the world’s leading urban theorists, Richard Florida. Livability.com’s research team worked with the University of Toronto’s Martin Prosperity Institute and later with The Initiative for Creativity and Innovation in Cities at New York University’s Schools of Professional Studies a program he directed along with Steven Pedigo.“The 2018 Best Place to Live list includes a fascinating mix of familiar cities and first-timers that are starting to carve out a reputation as wonderful places to live,” says Winona Dimeo-Ediger, Livability.com’s managing editor.“It’s great to see these under-the-radar cities getting more attention on a national scale — and the accolades are certainly well-deserved.”The capital of Washington, this modest-sized city offers vibrant culture, a charming downtown and a range of outdoor activities for residents. Nisqually National Wildlife Refuge, Tumwater Falls Park and Wolf Haven International are just three of many natural attractions, and Puget Sound provides fantastic views, boating opportunities and great seafood. The economy of Olympia is strong in education, government, healthcare and manufacturing, and abundant neighborhoods offer a variety of housing options and architectural styles. Olympia also earns high livability marks for its abundance of parks as well as Evergreen State College with more than 60 fields of study. In addition, much of the local population is tuned-in to social causes.last_img read more