New business segment - Zeitfracht wants to grow with air express parcels
An article by Dominik Bath. Published in the Berliner Morgenpost.
After the Air Berlin insolvency, the Berlin logistics company bought a subsidiary of the bankrupt airline. Now the managing director is working on new freight concepts.On the ground floor of the Berlin logistics company Zeitfracht, every visitor still has to withstand the stare of the company founder. Horst Walter Schröter stands there, cast in bronze, right next to the staircase to the management offices. Schröter, the son of a haulage contractor, founded the haulage company in 1947. Today's Zeitfracht boss Wolfram Simon sits in one of the rooms on the first floor and utters sentences that you hardly ever hear from a company director. "Time has stood still for us to a certain extent," says Simon, for example. And immediately afterwards: "We prefer peace in the company to profit."
The business administration graduate sits back in a leather armchair. He explains that he was uncomfortable with the attention that surrounded him last year. Reporting on the Air Berlin bankruptcy brought Zeitfracht into the spotlight: the Berlin-based company acquired the freight company Leisure Cargo from the airline's insolvency estate. Zeitfracht was also successful with Air Berlin Technik together with the maintenance company Nayak. The Berlin-based company also bought the charter line WDL-Aviation on the open market.
The acquisitions not only made Zeitfracht known throughout Germany. The new acquisitions have also changed the company's business model: For the former lorry freight forwarder Zeitfracht, working above the clouds has become more important. "We now generate a large part of our turnover through freight air transport," says Simon, even if he doesn't really want to talk about figures. According to the Berliner Morgenpost newspaper, revenue rose to 250 million euros in 2017, with around 127 million euros being generated through transport with cargo aircraft. In total, the logistics company shipped around 120,000 tonnes of freight by air.
While Wolfram Simon talks about the new Zeitfracht, he casually crosses his legs. Simon is wearing a shirt, jeans and trainers and explains his move into the air by referring to the vision of Zeitfracht founder Horst Walter Schröter. Schröter, who died in 2013 at the age of 85, had formulated the goal of sending Zeitfracht parcels by plane during his lifetime. Simon is now working consistently on Schröter's idea. One building block is the former Air Berlin freight subsidiary Leisure Cargo. However, the charter company WDL Aviation - also acquired last year - also plays an important role in Simon's new business plan. WDL leases its own aircraft to other airlines as required. The Group subsidiary's four aircraft are currently flying for the British low-cost airline Easyjet, which has significantly expanded its operations in Berlin-Tegel following the Air Berlin bankruptcy. Zeitfracht only bought the fourth aircraft at the beginning of April and integrated it into the WDL fleet. "This is a niche in which we want to continue to grow," says Simon.
However, the aircraft that take off for Easyjet are apparently also part of an experiment with which Zeitfracht wants to revolutionise the logistics of smaller express shipments weighing up to seven kilograms. "The aim is to establish a European network for small express freight items by the end of the year," explains the company boss. Simon has his sights set primarily on the cargo holds of low-cost airlines.
Until now, Easyjet, Ryanair and the like have avoided cargo services, mainly because the additional task could extend the aircraft's downtime. Simon's door opener is a special small container the size of a washing basket, which can be quickly loaded and unloaded while the aircraft are stationary. "This centrepiece is currently being tested," says Simon. Zeitfracht will be working with the parcel service DPD to transport the express shipments between airports and customers. The Berlin-based logistics company was once one of the founding members of DPD. However, the logistics company sold its remaining shares at the end of 2016.
The former headquarters is to close
Zeitfracht will not lose sight of its business on the road. Simon wants to reorganise the division. The freight forwarder's former headquarters in Stendal (Saxony-Anhalt) is to close. In future, freight transport by lorry will be managed from Berlin and Brieselang (Brandenburg). Further takeovers could also bring growth. Acquisitions are conceivable in both lorry logistics and air transport, says Simon. Discussions are currently underway.
Wolfram Simon seems at peace with himself as he talks about the plans. It seems that the many conversations with Horst Walter Schröter have preserved the old Zeitfracht spirit in the new Managing Director. Zeitfracht, says Simon, has never made a loss in the company's history, not even last year. "We only do things that we can pay for," explains Simon.
At the end of the conversation, he says something like this again: "Imagine if we could afford all this on credit and then had no more work." The logistics business is currently going extremely well for Zeitfracht. The conservative handling of finances should ensure that the logistics company stays on track in the future, says Simon. Zeitfracht founder Horst Walter Schröter would certainly be pleased with this commitment.