Keywords: Digitalization and Sustainability. The Italian Board of Airlines Representatives (IBAR ), which represents 50 airlines operating in Italy, is committed to the implementation of shared standards and initiatives to accelerate the digitalization of processes – and a greener approach – in the air cargo industry. According to Luciano Neri and Edvino Corradi, who hold the roles of Secretary General and Counsellor Delegate of the association respectively, we are on the right track.
CS: Mr Neri, one of the takeaways of the Osservatorio Cargo Aereo 2023 conference, which was held in Milan last May, was the need to accelerate digital adoption in the Italian air cargo sector, to become more competitive on an international scale. In your opinion, where do we stand on the «digital transformation journey» of our industry?
LN: The digitalization of air cargo processes in our country cannot be postponed any longer.
IT solutions are now widely accessible and, thanks to experiences borrowed from other industries, it is no longer a question of planning large investments to implement communication protocols compatible with other systems: in fact, we can rely on plug & play technologies, which enable interoperability even between systems and networks that “do not speak the same language”.
Therefore, now that IT bottlenecks have been removed and players are overcoming reluctance in making investments, it is important that the air cargo competitiveness of a country is not only measured by air connectivity indexes – which remain essential – but also by the degree of digitalization of processes.
CS: One of the benefits of digitalization is the improvement of data quality. In this regard, the IATA Cargo iQ interest group has defined the industry standards. To what extent does Cargo iQ contribute to improving air cargo carriers’ service quality?
LN: Air passenger and cargo transport is a global industry. Therefore, IATA’s role in defining shared standards is crucial.
Cargo IQ goes exactly in this direction: it is significant that the list of members today includes, in addition to some thirty airlines, freight forwarders, ground handlers, various industry associations and technology providers; by the way, we are pleased to note that CARGO START is an active member, too.
With Cargo iQ, the quality of service, and thus of the data available across all the steps of the airport-to-airport segment, is ensured by the combination of three elements: the Master Operating Plan, an operating manual that defines in detail the processes to ensure seamless transportation of goods from shipper to consignee; the certification of CiQ members’ quality standards by external auditors, following strict testing criteria; and, finally, the possibility for CiQ members to compare their performance with industry averages, thanks to the Air Cargo Intelligence Hub.
CS: Data quality is particularly important with regard to shipment tracking. When it comes to pharma logistics, it is even vital; not surprisingly, improving shipment transparency and visibility is one of the priorities of the working groups within the technical community Pharmacom Italia, which sees the collaboration of IBAR, too; can you tell us more about the projects your association is involved in?
LN: Among the major users of air cargo, the pharmaceutical industry demands cutting-edge track & tracing solutions that also enable the collection of data to protect product integrity.
Pharmacom Italia is therefore a natural partner of ours and we are very pleased with the collaboration that sees us side by side in the implementation of the pilot projects we are working on.
Local trade associations, including IBAR as far as airlines are concerned, play an important role in raising awareness among members and in the general coordination of projects.
We are now very close to the phase that will see the direct participation of pharma companies in the tests that will take place in the field.
CS: Mr Corradi, let’s talk about Milan Malpensa and the Cargo Community System platform SmartCityMXP.The airport operator SEA Milano Aeroporti, with the endorsement of trade associations, has made it mandatory for all stakeholders operating at the airport to provide information about essential shipment documents to the platform as of 1st January 2024. What advantages do you think this initiative will bring?
EC: We followed the development of the project from the early stages many years ago. We believe the idea of a Cargo Community System platform was a good approach – and still is.
Probably in the past, the lack of digital capabilities of many stakeholders slowed down the adoption.
Today, in the era of digital natives, we can expect a wider adoption, that will bring significant benefits, especially in speeding up delivery and pick-up operations.
Moreover, due to its modular architecture, the platform is a good starting point for future developments; not least, it enables interoperability with the IATA ONE Record universe.
CS: Speaking of ONE Record, at the last «World Cargo Symposium» IATA announced that, from 2026, «ONE Record» will be the sole, universal standard for data exchange in the cargo industry. Where are we in the implementation of this standard?
EC: IATA gave a very important signal and showed the way forward.
Years ago, the e-AWB was confirmed as the ‘preferred mode of transport contract’. This was only the first step towards the ‘ONE Record revolution’. With ONE Record, digital standards are defined with the involvement of all players in the air transport chain.
At the moment, many tests are taking place worldwide and, in some cases, there are also some implementations; in Italy, we are still at the preliminary stage, but we hope to be able to move from words to deeds in the first half of 2024.
CS: What do you see as the challenges and opportunities of this important initiative?
EC: The biggest challenge is, as already happened with the e-freight initiative, the change of mindset.
We have to move forward and look to the future, which means accelerating digitalization to achieve a full-chain cargo data exchange. Certainly, the financial aspect has an impact, but it can no longer be considered a showstopper.
The opportunities offered by ONE Record are, in fact, endless. The possibility of finally connecting all players in the transport chain (from the shipper to the authorities, to name but two stakeholders) using a single data model is the future of air cargo. And this future is already available.
CS: The association of the word “future” with the word “sustainability” comes naturally: as you pointed out during the Osservatorio Cargo Aereo 2023 conference, the issue of sustainability still does not seem to be a priority for the Italian air cargo community. How big is the gap compared to other European countries? And what can be done to encourage more commitment?
EC: Sustainability is definitely taking up more and more space in our lives.
Sustainability is in everything we do, both in our private lives and in our work.
A lot is being done in Italy, too, perhaps more than we think, but we are still behind other countries.
Airlines have already taken many initiatives and offered their customers a choice to reduce their environmental impact. Fortunately, we notice an increasing attention to this aspect.
CS: In your opinion, is the goal of the FlyNetZero initiative («Zero emissions by 2050») realistic?
EC: FlyNetZero is no longer just a goal defined within IATA but is now a ‘Long Term Aspirational Goal’ (LTAG) formally adopted by the 41st ICAO Assembly in October 2022. Therefore, not only the aviation industry but also governments and institutions see it as a realistic and achievable goal. Now, to translate it into reality, the commitment of each and every one of us is required
CS: CARGO START has been a member of IBAR since autumn 2022. What can be the role/contribution of a technology provider within an association such as IBAR?
LN: IBAR’s main goals include maintaining relations with the institutions and authorities of reference for our industry, as well as constantly updating the local management of the 50 airlines we represent.
This also means promoting the latest technological innovations, in order to boost airlines’ business opportunities and to improve their service levels.
For this reason, a technology provider like CARGO START seems to us to have the ideal profile to further raise the bar of innovation in our industry. We therefore expect very positive results from this collaboration!
More information at ibarair.eu