Executive Briefings

Head of AA Cargo Speaks Out on High Fuel Costs, Screening and More

To no one's surprise, the high cost of jet fuel and federally mandated security regulations continue to be huge issues for the aviation industry. And few know that better than David Brooks, president of American Airlines Cargo, who oversees more than 2,000 employees and a division that reported $824.5m in 2007 revenues. The airline, which offers more than 100 million pounds of weekly cargo lift capacity, serves more than three dozen countries and more than 250 cities around the world.
"Unfortunately, our largest challenge is one over which we have very little control, and that is the cost of fuel. AA's fuel bill this year will increase by $7.3bn compared to 2001, and increase by $3.5bn in 2008 alone even with a reduction in total fuel used," Brooks says in an interview with WorldCity.
"Closely following higher fuel costs is the impact of new cargo screening requirements," Brooks says. "Last year, Congress irrationally passed legislation requiring 100 percent screening of cargo on passenger aircraft only, and without any funding to accomplish this daunting task. The industry is working closely with the TSA (U.S. Transportation and Security Administration) to implement this program but its success will depend on the participation of carriers, forwarders, and shippers."
In the interview, Brooks has much more to say about what American Airlines Cargo is doing to handle these issues, and about China, Latin America and other matters of interest to the industry.
Source: WorldCity, http://www.worldcityweb.com

To no one's surprise, the high cost of jet fuel and federally mandated security regulations continue to be huge issues for the aviation industry. And few know that better than David Brooks, president of American Airlines Cargo, who oversees more than 2,000 employees and a division that reported $824.5m in 2007 revenues. The airline, which offers more than 100 million pounds of weekly cargo lift capacity, serves more than three dozen countries and more than 250 cities around the world.
"Unfortunately, our largest challenge is one over which we have very little control, and that is the cost of fuel. AA's fuel bill this year will increase by $7.3bn compared to 2001, and increase by $3.5bn in 2008 alone even with a reduction in total fuel used," Brooks says in an interview with WorldCity.
"Closely following higher fuel costs is the impact of new cargo screening requirements," Brooks says. "Last year, Congress irrationally passed legislation requiring 100 percent screening of cargo on passenger aircraft only, and without any funding to accomplish this daunting task. The industry is working closely with the TSA (U.S. Transportation and Security Administration) to implement this program but its success will depend on the participation of carriers, forwarders, and shippers."
In the interview, Brooks has much more to say about what American Airlines Cargo is doing to handle these issues, and about China, Latin America and other matters of interest to the industry.
Source: WorldCity, http://www.worldcityweb.com