Iceland's National Air Cargo Carrier Selects Cargo Management Solution

Project results in four-fold increase in capacity capability, quality of customer service

Houten, Netherlands — May 5, 2004 — Magic Software Enterprises, a provider of business integration and development technology, announced today that the e-developer-based Hermes cargo management system has been successfully implemented at Icelandair Cargo as part of a $400,000 project.

The system, implemented by Magic Software, has improved Icelandair Cargo's capacity for cargo handling without an increase in its workforce, according to the international carrier. It has also strengthened customer service through the provision of robust cargo management controls and secured tracking and verification capabilities.

Icelandair Cargo, which is headquartered in Reykjavik, has its main operational hub at Keflavik airport, operations in New York and Liege and multiple European and American routes. The company required a cargo management solution to help it automate its cargo handling process and provide seamless integration with its internal legacy systems, its customer applications and Iceland's Customs' system.

The Hermes system has enabled Icelandair Cargo to absorb an increase in cargo with its existing resource. It transported 26 percent more tons in February than in February last year, and for the first two months of the year there has been a 21 percent increase compared to the same period in 2003.

"We needed to streamline our cargo handling process, and we wanted to work with a partner experienced at implementing solutions for the air cargo handling sector," said Helgi Bjornsson, director of Finance, Icelandair Cargo. "Magic Software and the Hermes solution have more than met our requirements, and we estimate that the Hermes solution will help us handle at least a four-fold increase in capacity without requiring additional manpower."

Using Hermes, Icelandair Cargo said it also plans to improve customer service by automatically notifying customers on cargo availability, providing automated charging and improving the level of reporting.

Some of the key features of Hermes include the ability to manage the building-up and breaking-down of unit loading devices (ULDs), remote scanning/input at point of loading, automated messaging to CARGO-IMP standards (the international standard for cargo handling), full integration with Customs, remote scanning/input at point of offloading/break bulk, scanning/verification of inbound and break bulk, and a financial package for all aspects of charging and collecting fees.

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