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...more throughGroup's cargo airlines may suffer as angry brokers hit back at Volga-Dnepr snub
12/09/2018
Charter brokers have expressed shock, anger – and sadness –
over Volga-Dnepr Airlines’ decision to end its relationship with brokerages
and only deal directly with customers.
In a note seen by The Loadstar sent to all brokers and some forwarders yesterday
– some of which were informed via Whats App and others by email –
Konstantin Vekshin, executive president, cargo charter operations, wrote:
“I feel sorry we have to reconnect in this manner,
but I have to inform you of the following developments.
“In view of our plans to develop our business further and reinforce our direct sales efforts globally,
it would be fair to inform you herewith that Volga-Dnepr Airlines
discontinues its business with brokers in general.
“I understand that there may be unfinished projects or commitments,
which we will fulfil and finish accordingly.
On behalf of Volga-Dnepr Airlines, I am expressing appreciation for your business.”
Brokers have reacted badly,
and industry sources are expressing grave doubts
over Volga-Dnepr’s future relationship with forwarders
and for the future of charter operations at Volga-Dnepr Group carriers
AirBridgeCargo (ABC) and Cargologicair (CLA).
“We are pretty upset,” said one senior broker.
“We have worked with Volga-Dnepr for 27 years
and done a huge amount of work with them.
We have always been there for them, helped promote them.
“We can’t understand why there hasn’t been dialogue, instead of an email.
We’ve been a big customer,
I’ve closely worked with them – and the email is not even from Alexei [Isaikin, president].
It’s very, very disappointing.
But you know it was decided by Alexei.”
An insider source noted that the decision
had been in the offing for a long time at Volga-Dnepr Airlines (VDA).
More crucially, however, the decision casts doubt on the future charter operations of ABC and CLA,
although Volga-Dnepr told The Loadstar in a statement:
“This decision applies only to the charter operations of Volga-Dnepr Airlines
performed onboard An-124-100 and IL-76TD-90VD airplanes,
which represent the biggest fleet of these aircraft types,
and the airline is aiming to increase the availability of its fleet for the benefit of its customers.”
But the broker added:
“I don’t think Alexei can decide on one part of the business, and not the other.
Absolutely, we won’t be inclined to work with ABC or CLA now.
I think the group is in for a shock.
“It’s a big question for ABC.
There is a lot of competition in the 747 market.
And look at the geopolitical situation – surely,
you want as many friends at the moment as you can get?”
Volga-Dnepr’s plans to “reinforce our direct sales globally”
has also left concerns over whether it still intends to work with forwarders.
It has close relations and direct sales with shippers
such as Boeing, GE, Erikson Helicopters and other AN-124 industry customers.
While the airline said it would continue to work with forwarders,
forwarders did receive the note concerning brokers,
and some are similarly baffled.
“Volga-Dnepr clearly wants to work with industry directly,
which leaves a question mark over forwarders,”
said one senior source.
It could well be that they want to cut out both.”
Another senior broker said it could make relations with forwarders harder.
“This beggars belief. "
Obviously there will be a reluctance by forwarders
to give consignee and consignor information to the group
if they then go out and make direct contact with customers.
“Brokers provide a vital service to airlines in filtering out
the ==censored== enquiries and dealing with nitty gritty issues.
Airlines won’t know how to effectively handle the enquiries they receive.
They are cutting off their nose to spite their face.”
"Will ABC and CLA stop dealing with brokers?
A harder question to answer,
but some of these brokers do control large accounts and
a broker can always deal with another carrier in this space
if ABC and CLA looks to extend the new VDA policy.”
The other AN-124 operator, Antonov, said it was “business as usual”.
A spokesperson told The Loadstar:
“We are not considering a similar move and we value our customers the same,
being a broker, forwarders or principals.
“We’ve always been clear about being loyal to all our customers, including brokers.
“Our strategy remains unchanged.
“For sure it reinforces our message to the market
when we say that we treat all the loyal customers the same way
and it probably shows even better the difference between the approach each company takes.
“But it’s early to know how things will develop and what impact it will have on us,
both short term and long term.”
https://theloadstar.co.uk/groups-cargo- ... nepr-snub/