Issue 79 - Oct. 2013 Official Monthly Bulletin of AACO Arab world marks an increase of 21.2% AVIATION WITHIN THE ARAB WORLD GLOBAL ARAB AVIATION in August 2013 in international passen- ger numbers - p. 7 GROWTH p: 10 SPREADING OUT p: 24 PARTNER AIRLINES p: 54 - 67

ARAB AIRLINES ECONOMICS p: 11 TOURISM p: 32 INDUSTRY PARTNERS p: 68 - 89 Climate Change: ICAO 38th Assembly agree to develop a global MBM - p. 35 NEW APPOINTMENTS p: 11 COLLABORATION p: 34 AACO & RTC CALENDARS p: 90 - 93

EXPANSION p: 12 ENVIRONMENT p: 35 AACO MEMBERS & PARTNERS p: 94 - 97

th ICAO 38 Assembly urges ratification LAURELS p: 14 REGULATORY TONE p: 39 of Beijing Convention, Beijing Protocol of 2010 and MC99 - p. 39 TECHNOLOGY & E-COMMERCE p: 15 AN AVIATION MARKET IN FOCUS: Bahrain p: 48 TRAINING p: 16 WORLD NEWS p: 50 MRO p: 16

ARAB AIRPORTS p: 17

ATM p: 20

Daily news on www.aaco.org Issue 79 - Oct. 2013 After almost two weeks of meet- collaboration, and responsiveness in safety improvement. In the area ings, side meetings, negotiations, of air navigation, the Assembly endorsed the revised ICAO Global Air discussions, agreements and dis- Navigation Plan (GANP) which will permit ICAO to realize the goal of a agreements, the ICAO 38th Assem- globally harmonized Air Navigation System. With regards to security, International bly adopted a resolution on Climate the Assembly confirmed ICAO’s emphasis on achieving greater bal- Change that has put the industry at ance between effective control measures and system-wide connec- Cooperation isthe forefront of efforts taken by any tivity and efficiency. Risk-management-based prioritization, mutual sector to mitigate its impact on Cli- recognition of equivalent security measures and other key principles Key to the mate Change. Reaching consensus will now serve as foundational components to future Security and Fa- was not an easy task; nonetheless, cilitation discussions in ICAO. Of course, improved international coop- Development governments closed the Assembly eration was reinforced at the Assembly as the basis for success. As for with an agreement to develop by the economic development of air transport, the Assembly endorsed of Air 2016 a global Market Based Mea- the recommendations of ATConf/6; hence, ICAO will be working on sure that can start in 2020. Until the development of international agreements to facilitate liberaliza- Transport then, countries can within certain tion of market access, air carrier ownership and control and air cargo principles implement Market Based service. The development of core principles for consumer protection Measures. was also recognized as a further matter of priority for ICAO. On the legal front, the Assembly urged the ratification of the Beijing Conven- The Assembly as well discussed is- tion and the Beijing Protocol of 2010, in addition to the ratification sues related to aviation safety, se- and universal adoption of the Montreal Convention of 1999. curity & facilitation, air navigation capacity & efficiency, and economic The message was clear. Aviation is a global industry that serves a cus- development of air transport. In tomer who has become global with the availability of advanced com- general, in all issues discussed the munications and technologies, and that is served by airlines that are key message was that cooperation, developing global reach with the advancements in engine and aircraft be it bilateral or multilateral, is the technologies. Hence, the need for global solutions, cooperation be- key to achieving optimal results. In tween states on multilateral and bilateral levels, and more under- particular, in the area of safety, the standing of the airlines’ business by all governments are all needed Assembly endorsed the revised ICAO at this stage more than any other earlier phase. This cooperation is Global Aviation Safety Plan (GASP) to needed in all areas, be it climate change, safety, security, air naviga- drive greater transparency, tion, consumer protection or others. The ICAO Assembly has set Daily news on www.aaco.org Issue 79 - Oct. 2013 5 OVERALL TRAFFIC - ARAB WORLD the foundation for many efforts that will be undertaken by states We estimate international passenger numbers to, from, & within the from around the world for the next three years, proving once again Arab world to increase by 21.2% in August 2013 compared to August that the aviation industry stakeholders have a relatively common un- 2012, which follows a decrease of (0.6%) in July 2013 compared to derstanding of issues that in the end would help in providing the con- July 2012. The variation in the traffic results between August and July sumer with a safe, secure, convenient, environmentally friendly and is due to the cyclicality of the month of Ramadan. smooth mode of transport from any point in the world to any other Monthly International Passenger Numbers' Change to, from and within the Arab World point. Sep 12 to Aug 13* compared to same month in previous year

25% 20% 15% 10% 5% 0% -5%

Effect of Ramadan Effect of Adha Cyclicality YoY Growth 12-Month Average Growth Effect of Ramadan

Source: AACO, IATA *Estimated In August 2013, AACO members increased the number of their of- fered seats to, from, and & within the Arab world by 13.2%, while other airlines increased their number of seats offered by 11.5%, lead- ing to 12.7% year-on-year increase in the total number of seats of- fered.

Daily news on www.aaco.org Issue 79 - Oct. 2013 7 AVIATION WITHIN THE ARAB WORLD Aviation in the Arab World

GROWTH Monthly International Passenger Numbers' Change within the Arab World Sep 12 to Aug 13* compared to same month in previous year PASSENGER TRAFFIC International passenger numbers within the Arab world are estimated to 20% increase by 17.7% in August 2013 compared to August 2012 following a de- 15% crease of (3.8%) in July 2013 over July 2012. 10% Passenger traffic within the Arab Sub Regions Aug 13* over Aug 12 5% Within Arabian Peninsula 25.7% Within Near East 0.7% 0% Within North Africa 54.4% -5% Between Arabian Peninsula & Near East 8.3%

Between the Near East and North Africa 10.3% Effect of Ramadan Effect of Adha Cyclicality Between Arabian Peninsula & North Africa 36% YoY Growth 12-Month Average Growth Effect of Ramadan Source: AACO, IATA *Estimated Source: AACO, IATA *Estimated International Passenger Numbers' Change Within the Arab World May13-Jul13 & Jun13-Aug13* compared to same period in previous year 40% ARAB AIRLINES ECONOMICS 35% Etihad Airways lifts its stake in Virgin Australia: Etihad Airways now has a 30% 13.4% stake in Virgin Australia after buying 16 million new shares. 25% Etihad has approval from the Foreign Investment Review Board to increase its stake in Virgin to 19.9%. It has previously said it is keen to reach that target. 20% Etihad Airways President and CEO Mr. James Hogan has repeatedly pledged his 15% support for Virgin and its alliance strategy with the airline. 10% Etihad Airways opens new European Headquarters in Berlin:Etihad Airways 5% has unveiled its new European headquarters in Berlin, enhancing the airline’s 0% presence in the German domestic market and further cementing its strategic within relationship with airberlin. within N Arabian within N East N East Located in the heart of Berlin’s historic Potsdamer Platz, the new office houses Pen Africa Arabian N East N both Etihad Airways’ European and Germany sales and marketing teams, and May13-Jul13 Africa N Africa Pen Arabian includes joint Etihad Airways-airberlin reservation and ticketing counters. Jun13-Aug13* Pen Source: AACO, IATA *Estimated NEW APPOINTMENTS Passenger numbers within the Arab world reported a 7.6% growth between Palestinian Airlines appoints Capt. Tamim as new Director General:Captain May 13 & July 13 compared to same period in the previous year. Walid Tamim has been appointed as Director General for Palestinian Airlines as at 17 September 2013. Passenger numbers within the Arab world reported a 8.6% increase between June 13 & August 13* compared to same period in the previous year.

Daily news on www.aaco.org Issue 79 - Oct. 2013 11 Aviation in the Arab World EXPANSION ROUTES Airline From To Date Weekly Aircraft Capacity* of top 10 carriers within the Arab World (Int’l Operations) Frequency Type Airline ASKs (Million) Departures Seats EK Dubai Libya via Malta 3 Sep. 13 3x B777-200ER EK 1,197.9 2,528 847,030 EY Abu Dhabi Sana’a 2 Sep. 13 4x A320 MS 1,132.6 3,410 704,798 QR Doha Ta’if 2 Oct. 13 4x A320 SV 897.0 2,619 571,545 QR 775.4 3,991 713,123 Emirates resumes flights to Libya: Emirates has resumed passenger flights to Tripoli from Dubai International Airport on 3 September. Emirates now serves FZ 740.3 3,476 656,964 Tripoli three times a week with a quick stop in Malta, utilizing a Boeing 777- EY 485.8 2,154 350,642 200ER which provides First Class, Business Class and Economy Class travel. G9 428.0 2,012 325,944 RJ 374.8 2,230 284,638 Etihad Airways launches maiden flight to Sana’a: Etihad Airways launched on 2 September its inaugural flight from Abu Dhabi to Sana’a. GF 249.2 2,640 366,936 The airline now serves the Yemeni capital four times a week from Abu Dhabi XY 236.0 1,088 185,176 with an Airbus A320 aircraft equipped with 16 Pearl Business Class seats and Grand Total 8,811.0 37,264 6,751,280 120 seats in Coral Economy Class. * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Qatar Airways launches sixth destination in Saudi Arabia: Qatar Airways fur- FLEET ther expanded its operations in Saudi Arabia on 2 October with the launch of Afriqiyah begins leasing a Tunisair A319 for European flights: Tunisair has scheduled flights to Ta’if - the airline’s sixth destination in the Kingdom. wet-leased one of its four A319-100s to Afriqiyah Airways. Owing to all Libyan Qatar Airways will operate four flights a week non-stop from Doha to Ta’if. The airlines being banned by the European Commission from operating their own addition of this new Saudi city takes the total number of destinations within aircraft to Europe, Afriqiyah is currently using TS-IMQ (c/n 3096) on flights to the airline’s network to 132. Dusseldorf, London Gatwick and Rome Fiumicino. The Ta’if route is operated with an Airbus A320 in a two-class configuration of Source: Ch-aviation 12 seats in Business Class and 132 seats in Economy. Etihad Airways seeks A330s financing: Etihad Airways is expected to shortlist CAPACITY AND DEMAND bids for three Airbus widebody aircraft that are scheduled for delivery in 2014, Passenger Air Services Within the Arab World - August 2013 - SRS Analyzer according to banking sources. AACO members increased the number of seats offered within the Arab world Etihad Airways approached the market in August with a request for propos- by 13.6% compared to August 2012 whereas other airlines decreased that als (RFP) in August covering two Airbus A330-200s and one A330-200Faircraft number by (4.8%), leading to a 10.6% year-on-year in-crease in the total num- seeking various range of financing. ber of seats offered within the Arab world. Etihad is looking for export credit agency-supported proposals, commercial Available Seats within the Arab world for International and domestic routes debt, Japanese operating leases with call option as well as sale and leaseback constituted 25.7% and 9.7% respectively of the total Available Seats to, from, bids. and within the Arab world in August 2013. The RFP covers deliveries in the first quarter of next year. According to Flight- global’s Ascend online database, Etihad Airways will receive one A330-200 in February. In March, it will add one A330-200 and one A330-200F aircraft. In May 2013, Etihad took delivery of a new A330-200F. The aircraft was fi- nanced under a sale and leaseback agreement with Guggenheim Aviation Partners. Next year, Etihad is scheduled to take delivery of a total of 11 new aircraft and will introduce two new aircraft types to its fleet in the fourth quar- ter: the Airbus A380 and the Boeing 787.

Daily news on www.aaco.org Issue 79 - Oct. 2013 13 Aviation in the Arab World TECHNOLOGY & E-COMMERCE Two A380s are expected in October and November 2014 while the two 787-9s Etihad Airways launches first full OnAir connectivity on A320s:Etihad Airways are planned for October and December, says Ascend. has become the first airline to offer both inflight Wi-Fi and GSM on its Airbus In addition Etihad will receive four new A320s during the course of next year. A320 aircraft. The first aircraft, equipped with the combined Mobile OnAir and Source: Flightglobal Internet OnAir services, was delivered to the airline in August 2013. OnAir’s combined Wi-Fi and GSM connectivity service has operated on Etihad Emirates begins parting out its A340-500s:Emirates has retired two of its 10 Airways’ A330-300 aircraft for nearly two years. GSM has proved the more Airbus A340-500s, and is breaking one for spares, as sustained high fuel prices popular of the two options, with passengers using it for a range of activities: take their toll on operations of the four-engined aircraft. The Dubai network 76% use it for mobile data, typically email, while 33% send text messages and carrier introduced the ultra-long range airliner in 2003, meaning that its oldest 21% make and receive calls. aircraft is only 10 years old. But the high cost of fuel makes the aircraft uneco- Wi-Fi is particularly important on flights over four hours on which passengers nomic to fly now, says Emirates Airline President Mr. Tim Clark. spend more time surfing the Internet. Source: Flightglobal Saudia’s new B777s enter service with full connectivity: Mobile OnAir and Airline’s first A380 in Qatar Airways colors takes flight:The delivery of Qatar Internet OnAir went into commercial service on new B777-300ER aircraft. Sau- Airways’ first A380 is one step closer to joining the airline’s fleet, as the aircraft dia’s passengers on these aircraft can now email, browse the Internet, update was ferried from Toulouse to Hamburg during a test flight. The Airbus A380, social media, text and talk on the phone as they fly between the Kingdom of the world’s largest passenger aircraft, is one of thirteen on order by Qatar Air- Saudia Arabia, the UK and the US. In this instance, OnAir connectivity uses ways. The airline is set to take delivery of the aircraft in spring 2014. Thales’ TopConnect solution, which will be line fitted to all remaining deliver- ies of Saudia’s B777-300ERs. This service entry comes just five months after nasair receives Airbus A320 with “Sharklet” specifications:nasair announced the deal for the whole 20-strong B777-300ER fleet was first announced. that it received 4 additional Airbus A320 aircraft, one of which is with Sharklet Passengers on Saudia A330 fleet have already been enjoying OnAir connectiv- specifications, becoming the third airline in the Middle East and first in Saudi ity for the past three years. Over this period, 80% of passengers who connect- Arabia to receive this type of aircraft. ed to Internet OnAir used a mobile phone or tablet. Established in 2007, nasair carried more than 12 million passengers demon- Saudia has completed its preparations to operate its first flight to Toronto, strating customer confidence during a very short time since it was launched. Canada and flights will soon operate to Los Angeles. The airline operates more than 950 flights per week via more than 88 domes- tic and international routes. Qatar Airways Cargo signs multilateral e-Air Waybill Agreement with IATA: Qatar Airways Cargo has announced the signing of a multilateral e-Air Waybill LAURELS (e-AWB) agreement (Resolution 672) with the International Air Transport As- sociation (IATA) which provides a legal framework for parties to conclude cargo Passengers vote Emirates as top Middle East airline for experience: Emirates contracts by electronic means. airline has been recognized as the top airline for passenger experience in the Developed collaboratively by IATA with industry stakeholders, e-AWB removes Middle East. The airline was presented with the award at the 2013 Passenger the requirement for a paper air waybill by providing consent to do an electron- Choice Awards, held at the Airline Passenger Experience Association’s annual ic airway bill while not altering the conditions of contract of carriage. There expo in Anaheim, California is no longer a need to print, handle or archive paper airway bills. An e-AWB The awards program takes the flight experience directly to the passengers, brings accuracy, confidentiality and efficiency while helping to reduce opera- who can rate their travel experience year-round by way of an online survey at tional costs and speed-up the delivery of air freight shipments. www.passengerchoiceawards.com. Results are tabulated by the Nielsen Com- The agreement with IATA enables Qatar Airways Cargo to accept e-AWB from pany. Nielsen is recognized globally for providing market research, insights and all participating freight forwarders. Freight forwarders who have signed mul- data. The 13 categories of awards ranged from best entertainment options tilateral e-AWB agreements with IATA will be able to tender e-AWB shipments and inflight publication to best overall. In its fourth year, the Passenger Choice to Qatar Airways Cargo at multiple airports around the globe. To facilitate Awards are recognized as a leading way to measure industry excellence and to seamless electronic data exchange with freight forwarders, Qatar Airways Car- garner direct passenger feedback. go has appointed Cargo Community Network – Singapore, a provider of cargo Source: Arabian Aerospace community system services (CCS) and e-solutions for the air cargo industry, as its CCS partner. Daily news on www.aaco.org Issue 79 - Oct. 2013 15 Aviation in the Arab World TRAINING ARAB AIRPORTS Boeing subsidiary Jeppesen establishes ‘ab initio’ flight school network: Top 20 Airports by International Seats Offered on Operations To, From, and Jeppesen is teaming with Emirates Aviation College and multiple other pilot Within the Arab World - August 2013 training centers worldwide to guide cadets through the initial, or ‘ab initio’ Top 20 Airports by Int’l Seats Offered on Operations To, From, and Within stage of training to become professional pilots. the Arab world The Jeppesen ab initio pilot training program is the first step in a comprehen- sive Boeing flight training program that will advance student pilots through Airport Number of Seats Airport Number of Seats several stages of training from inexperienced newcomers to becoming li- DXB 7,621,700 AMM 833,775 censed commercial pilots. DOH 2,805,284 BEY 832,325 As part of the Boeing Flight Services portfolio, the Jeppesen ab initio program AUH 1,877,839 SHJ 782,427 prepares the student for the jet bridge training delivered by Boeing. This gives students the advantage of a single source of training to move from cadet to jet CAI 1,837,749 IST 767,484 pilot with the most respected companies in aviation. JED 1,805,543 LHR 751,314 Jeppesen is working with leading international airlines to incorporate airline- KWI 1,199,487 TUN 715,382 oriented elements into an ab initio curriculum. This will enhance the Jeppe- RUH 1,195,454 CDG 582,454 sen program by providing real-world learning opportunities for student pilots. Emirates Aviation College will utilize the Jeppesen flight school network to CMN 924,585 ALG 575,883 provide high quality ground and flight school instruction for cadets and help BAH 920,220 ORY 563,422 support a continued pipeline of qualified candidates destined for commercial MCT 908,785 DMM 507,548 aviation careers. Source: AACO, SRS Analyzer

Cooperation between EgyptAir Training Center and Iraqi Airways:EgyptAir Egypt seeking USD 418 million loan for Sharm El-Sheikh airport: The Civil Training Center has been approved recently by the Iraqi Civil Aviation Author- Aviation Ministry of Egypt has resumed negotiations with the African Develop- ity as a training center certified to provide all the required aviation training ment Bank to secure a pending USD 418 million loan, to construct a new pas- courses for Iraqi Airways teams as cabin crews, pilots and maintenance engi- senger reception building at the Sharm Al-Sheikh International Airport. neers. The advanced fleet of simulators owned by Egyptair training as B777/ H.E. Abd Al-Aziz Fadl, Minister of Civil Aviation, stated that the loan would be B737/A320/A330/A340 in addition to the training devices for cabin crew rain- paid back over a period of 20 years, with an initial seven year grace period. He ing as CST &CEET were extremely admired by the Iraqi inspectors besides the stated that the ministry and airline companies will pay back installments of the huge number of advanced classrooms exist. loan through revenues reaped from sales. After construction of the new building, the airport’s capacity is expected to in- MAINTENANCE, REPAIR & OVERHAUL crease from 10 to 18 million passengers. However, traffic has steadily dropped at the tourist destination. Etihad, SR Technics in long-term deal: Etihad Airways and SR Technics, part of the Mubadala Aerospace MRO network, have signed a deal to extend and Queen Alia International Airport traffic hits all-time record high in August deepen their existing cooperation. 2013: Airport International Group (AIG) has announced record-breaking traffic SR Technics will continue to provide a full suite of Integrated Component Ser- for August 2013 at Queen Alia International Airport (QAIA), following the dip vices (ICS) for the airline’s Airbus A320, A330 and A340 fleets until 2023. in July results. As the busiest month in the airport’s history, August 2013 wit- Additionally, the company will extend its services to cover the Boeing 777 nessed over 694,343 travelers passing through QAIA, representing a 15.09% fleet. The new contract covers all of Etihad’s current 72 aircraft and future de- increase in passenger traffic (PAX) compared to August 2012. liveries of the same type. Year-to-date (YTD) PAX went up by 2.97% compared to the same period in This cornerstone agreement provides a volume of approximately USD 350 2012, standing at 4,408,574 PAX. million and will include SR Technics’ first entry into ICS services for Boeing 777 Aircraft movements (ACM) also reached an all-time high of 6,465 ACM this aircraft. August, an increase of 3.81% over the same month in 2012. Meanwhile, YTD Source: TradeArabia ACM traffic stood at 45,505 ACM, up by a marginal 0.01% as opposed to per- formance in 2012.

Daily news on www.aaco.org Issue 79 - Oct. 2013 17 Aviation in the Arab World

These outcomes are particularly notable when weighed against July 2013’s mixed numbers. Passenger traffic had decreased by 16.3% to reach 547,621 PAX compared UAE GCAA certifies Dubai World Central for passenger operations: The Gen- to results during July 2012, A total of 5,844 ACM was counted for July 2013, eral Civil Aviation Authority (GCAA), the sole regulator of all licensed airfields down 9.52% from July 2012. within the UAE, has certified Al Maktoum International at Dubai World Central (DWC) for operating the new passengers terminal, which will be open for pas- Four million passengers through Beirut-Rafic Hariri International Airport in 8 sengers as at 27 October. This certification follows the assessment made by months: A periodic report revealed that the number of passengers increased GCAA on the facilities and systems of the airport and confirming full compli- at Beirut-Rafic Hariri International Airport by more than 6% in the first 8 ance of the aerodrome with global regulations and standards. months of 2013 compared to the same period in 2012. The number of passen- The new passenger terminal building is designed to accommodate five to gers who used Beirut’s airport until the end of August 2013 reached 4,282,711 seven million passengers per year. When completed, DWC will be the largest passengers. airport in the world with five runways and capacity for 160 million passengers The number of passengers increased despite the steep decline in the transit and 12 million tons of cargo. traffic that decreased by 72% during this period, compared to the same period of last year; although the number of arriving passengers increased by 4% and Dubai International Airport nears 6 million passengers in August: Traffic at the number of departing passengers increased by 10%. the Dubai International Airport surged 23.8% in August making it the busiest In August 2013, passenger traffic at the airport witnessed growth by almost month in terms of passenger numbers in Dubai International’s history. The 16%; by which the number of arriving passengers increased by 21.24% to monthly passenger traffic at Dubai International reached 5,999,375 in August, reach 343,406 arriving passengers and the number of departing passengers a year on year increase of 23.8% compared to 4,847,152 in the corresponding decreased by 12.08% to reach 382,497 passengers. month in 2012. However, the overall number of passengers during August was affected by the With monthly traffic breaching the 5 million passenger mark for nine con- decrease in the number of transit passengers, which witnessed a decline of secutive months, the year to date passenger number increased by 16.4% to 69.03% to reach 1,036 passengers. 43,971,839 compared to 37,784,946 recorded during the first eight months of 2012. Muscat Airport posts growth in passenger, cargo traffic:Oman’s Public Au- Aircraft movements during August reached 31,198, up 11.5% from 27,986 re- thority for Civil Aviation (PACA) has said that Muscat International Airport has corded during the corresponding month in 2012. During the first eight months seen passenger traffic grow by 10% to 5,530,257 passengers by the end of of the year aircraft movements totaled 242,571, up 7.3% compared to 226,064 August, compared with 5,013,927 passengers during the same period in 2012, during the corresponding period in 2012. Times of Oman has reported. Year to date cargo volumes increased by 8.1% to reach 1,588,716 tons com- The rise was attributed to the new airlines that joined the list of those operat- pared to 1,469,476 during the first eight months of 2012. Monthly cargo vol- ing at the airport. Air cargo traffic also saw a 4% increase in the total unload- ume contracted by 3% in August reaching 184,877 tons compared to 190,770 ed and loaded freight, with total shipment pegged at 78,746 tonnes by the tons in August 2012. end of August, compared with 75,600 tonnes during the same period in 2012, said PACA. UAE GCAA reports growth in August air traffic movements: The UAE General Civil Aviation Authority (GCAA) has announced that air traffic movements in Passenger traffic at Abu Dhabi International Airport increases by 18.5% in the UAE grew at a rate of 8.7 in August 2013 compared to the same month last August 2013: Abu Dhabi Airports released Abu Dhabi International Airport’s year. (AUH) traffic report for the month of August 2013. Over 1.5 million (1,538,632) The GCAA monthly report indicates that total air traffic movements in August passengers travelled through the airport, marking a significant growth of were 65,176. 18.5% compared to the same period in 2012. The report for August 2013 provided the number of air traffic movements in Aircraft movement totaled to 11,608 representing a 15.5% increase, while each UAE airport, with Dubai ranked first with 30,392 traffic movements. Over cargo traffic also grew, reaching a 29.9% increase due to more than 60,235 flights stood next at 12,357 air traffic movements. Abu Dhabi ranked third with tons of cargo moved in August. 10,311 air traffic movements. The top five destinations in August 2013 were Bangkok, London, Doha, Manila, According to the report, air traffic movements in Sharjah International Airport and Bahrain. ranked fourth with 5,489 movements.

Daily news on www.aaco.org Issue 79 - Oct. 2013 19 Aviation in the Arab World

Local flights between UAE airports were in the fifth position with 5,194 move- the Job Training” for new Iraqi air traffic controllers in the Area Control Centre ments. Al Maktoum International Airport witnessed 804 movements, Fujairah as well as ATC training in the Control Tower at Baghdad International Airport. International Airport witnessed 63 movements, while Ras Al Khaimah Interna- Under the new contract, Serco will also provide the Aviation Academy with ad- tional Airport had 455 air traffic movements and Al Ain Airport had 91 air traf- ditional Air Traffic Services Instructors to commence the training of up to 100 fic movements. new Iraqi controllers which will help the ICAA build a sustainable ATC system in Source: Arabian Aerospace support of the country’s redevelopment. Source: Arabian Aerospace Saudi GACA to launch second tranche of sukuk: The General Authority of Civil Aviation (GACA) in KSA has named three banks for the issuance of its second UAE GCAA reviews study on UAE’s airspace: The Board of Directors of UAE tranche of sukuk, worth USD 4 billion, to finance expansion projects of King General Civil Aviation Authority (GCAA) discussed reviewed findings of a study Abdulaziz International Airport (KAIA) in Jeddah and King Khalid International the GCAA has conducted in collaboration with Airbus ProSky to restructure the Airport (KKIA) in Riyadh, Arab News has reported. The regulator’s first issue country’s airspace. The GCAA -Airbus experts have consulted all airspace us- was used to finance part of the USD 7.2 billion KAIA expansion project. The ers, navigation services providers and airports of the UAE and delivered a com- Saudi Arabian Monetary Agency has categorised GACA sukuk among bonds prehensive report identifying ways to enhance airspace. that have zero risk. UAE airspace is one of the smallest and most vital in the world and is known for its strategic location, which links the east and west. AIR TRAFFIC MANAGEMENT The study could lead to improvement to ATM at Sheikh Zayed Air Navigation Center, which opened in 2009, making the Middle East’s largest and most ad- LYCAA awards Italy’s ENAV, TechnoSky, ATC overhaul and upgrade contracts: vanced air traffic management facility. The board also reviewed performance The Libyan Civil Aviation Authority has awarded L’Ente Nazionale di Assistenza indicators of the 2013 first half operational plan. A report indicated that the al Volo (ENAV), with its subsidiary Techno Sky, two contracts for the supply of GCAA has successfully implemented the strategic targets set for the second consultancy, technical and training services to assist in the modernisation of quarter. In 2012, the operational plan achieved 98.3% of its goals. the LYCAA’s systems and its organisational and regulatory processes. Source: Emirates News Agency Under the deal, ENAV will establish a development plan aimed at both mod- ernising the North African country’s air navigation services and enhancing its UAE GCAA renews COMSOFT contract for three years: UAE GCAA again se- capacity to manage growing traffic volumes in Libyan airspace. ENAV will like- lected COMSOFT to enhance their existing PRISMA system, in order to handle wise provide a range of skills to LYCAA managers who have the task of guiding continued air traffic growth. the decision-making processes for a transition to new operational scenarios in GCAA has been operating a PRISMA automation system since 2009 as a re- the context of Air Traffic Management. sponse to soaring air traffic growth, and in 2010 and 2013 successfully imple- Techno Sky, on the other hand, will have the strategic task of undertaking a mented software extensions with the latest being the Arrival Manager (AMAN) overall survey in order to provide a clear picture of the current technological function, specifically designed to deliver electronic assistance for sequencing situation, so that medium term goals can be set for improving technical main- air traffic arrivals streams to particular points, such as arrival gates or runway tenance, logistics, plant and ground systems. thresholds. With the new contract COMSOFT will implement a range of fur- ther enhancements to the PRISMA ATM system and a number of new system Serco and Al Burhan win Iraqi ATM contract extension for Baghdad: Interna- features to ensure more automated and accurate applications to enhance air tional service company Serco and Iraq’s Al Burhan Group, have signed a new traffic safety, reduce staff workload and manage more cost efficient operations agreement with the Iraq Civil Aviation Authority (ICAA) to continue providing in order to keep up with the continued pressures of their demanding airspace. Air Traffic Control (ATC) services, training and support at Baghdad International New system features will include PRISMA SDPS – Enhanced Surveillance Data Airport and extending the partnership’s presence in Iraq. Processing, improved DFLOW, SpaceMAN Arrival Director (an AMAN upgrade), Serco has been providing services in Baghdad since January 2011. The partner- Fast Traffic Simulation Tool (ITAM), Surveillance Data Plotting, Tuning Facility ship between Serco and the ICAA has achieved a number of successes, includ- for STCA, and Safety Notification and Inspection Tool with Case History. ing the achievement of the Vertical Separation Minimum, to increase airspace COMSOFT’s ATM automation solution PRISMA combines all modern air navi- capacity, and the successful training and validation of over 40 new Iraqi con- gation service functions, from pre-flight planning to real-time air navigation, trollers, while continuously developing a solid foundation for re-building ATC Approach Units and Tower Applications and can be easily expanded to fit indi- capabilities in Iraq. The new 18 month contract in Iraq, extends the agreement vidual customers’ requirements. until January 2015, and enables Serco to provide the ICAA with continued “On Source: CANSO

Daily news on www.aaco.org Issue 79 - Oct. 2013 21 GLOBAL ARAB AVIATION Global Arab Aviation

SPREADING OUT Monthly Passenger Numbers' Change to and from the Arab World Sep 12 to Aug 13* compared to same month in previous year PASSENGER TRAFFIC Passenger numbers on routes to and from the Arab world are expected to 25% increase by 22.4% in August 2013 compared to August 2012, after a growth of 20% 0.5% in July 2013 over July 2012. 15%

Traffic to and from the Arab world August 13* over August 12 10%

With the Americas 29% 5% With Europe 29.1% 0% With Mid Asia 11% With Far East and Australasia 26% With Sub Saharan Africa 17% Source: AACO, IATA *Estimated Effect of Ramadan Effect of Adha Cyclicality YoY Growth 12-Month Average Growth Passenger Numbers' Change To and From the Arab World Effect of Ramadan May13-Jul13 & Jun13-Aug13* compared to same period in previous year Source: AACO, IATA *Estimated 14% ROUTES 12% Airline From To Date Weekly Freq. Aircraft type 10% Madrid 4x

8% Marseille 3x London Before end 3x 6% AT Rabat N/A Milan of 2013 2x 4% Brussels N/A 2% Paris increase to 14x 0% Milan New York B777-300ER N/A With the Clark 1 Oct. 13 B777-300LR Americas With Europe B777-300ER to With Mid Asia Brisbane unchanged With EK A380 May13-Jul13 AustralAsia With Sub- Dubai Kabul 4 Dec. 13 7x A340-500 Saharan Africa Stockholm 5 Sep. 13 7x Jun13-Aug13* B777-200LR Boston 10 Mar. 14 N/A Source: AACO, IATA *Estimated Kathmandu 1 Nov. 13 7x to 14x A320 Passenger numbers within the Arab world market reported an 7.2% growth Islamabad N/A 9x to 11x May 13 & July 13 compared to the same period in previous year. EY Abu Dhabi Ho Chi Minh 1 Oct. 13 7x A330-200 Mumbai 7x to 14x N/A 1 Nov 13 Passenger numbers within the Arab world market reported an 11% increase Chennai unchanged A320 to A321 between June 13 & August 13* compared to the same period in previous year. Karachi 7x to 10x Islamabad 2x to 3x GF Manama 16 Dec. 13 N/A Lahore 3x to 4x Peshawar 2x to 4x QR Doha Addis Ababa 18 Sep. 13 3x A320

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th Airline From To Date Weekly Freq. Aircraft type Emirates announces Boston as 8 destination in the US: Emirates is to launch Guangzhou 2x to 3x a further transatlantic link with the start of flights to Boston from 10 March Brussels th SV Dhaka Winter 4x to 5x B747-400F & B747- 2014, which will be the airline’s 8 route into the United States. The flight will Cargo Nairobi Amsterdam 2013 5x to 7x 400F be operated by a Boeing 777-200LR configured in 3 classes. Manston KSA 2x As part of an agreement with JetBlue, Emirates and JetBlue passengers are W5 Mashad Dubai N/A 2x A310 able to travel on each other’s flights and earn reciprocal miles. Royal Air Maroc enhances its presence at Rabat-Salé International Airport: Etihad Airways increases flights to Kathmandu: Etihad Airways will increase Royal Air Maroc announced enhancing its presence at Rabat International its Abu Dhabi-Kathmandu service from seven flights per week to a double daily Airport by launching 22 additional flights before the end of 2013. A statement schedule from November 1, 2013. The new services will be operated by A320 by the airline highlights that this step falls within Royal Air Maroc’s strategy to aircraft fitted with 16 Pearl Business Class seats and 120 Economy Class seats. enhance and compliment operations at its hub in Casablanca, and to diversify its offers for passengers. Etihad Airways boosts flights to Islamabad: Etihad Airways has further in- The statement added that Royal Air Maroc will launch 5 new destinations from creased its flights to Islamabad, from nine to eleven a week. Rabat airport to Madrid (4 weekly flights), Marseille (3 weekly flights), Lon- With the addition of the new services, Etihad Airways will now offer 31 weekly don (3 weekly flights), Milan (2 weekly flights) and Brussels. The company also flights from four destinations in Pakistan which, along with Islamabad, include plans to operate additional frequencies between Rabat and Paris (14 weekly Karachi, Lahore and Peshawar. The schedule will be operated using A320 air- flights). According to Royal Air Maroc, the carrier will continue to develop its craft fitted with 16 Pearl Business Class and 120 Economy class seats. strategic base in Rabat by doubling its flights and operating new routes with Etihad Airways also unveiled new winter timings for services to Lahore and the expected arrival of 15-20 new aircraft in the coming 4 years. Peshawar starting from October and November. Four continents, three launches, one day - Emirates highlights its global Etihad Airways commences daily Vietnam flights:Etihad Airways launched on reach: Emirates’ expansion reaches new heights on 1 October with the launch 1 October daily flights to Ho Chi Minh City in Vietnam. The Abu Dhabi-Ho Chi of flights to Clark in the Philippines, the inauguration of a route between Mi- Minh City flights are operated by an Airbus A330-200 aircraft with 22 seats in lan and New York, and a brand new A380 service to Brisbane – all on the same Pearl Business Class and 240 in Coral Economy Class. day in four different continents. With the launch of Etihad Airways’ Vietnam flights, its codeshare partner, Viet- First to take off from Dubai on 1 October, a Boeing 777-200LR, bound for Clark nam Airlines, will place its VN code on the Abu Dhabi-Ho Chi Minh City sector. International in the Philippines. This was followed by a bound flight to Milan, This extends the scope of the airlines’ current codeshare agreement. where the Boeing 777-300ER stops before embarking on a brand new transat- Etihad Airways already has its EY code on Vietnam Airlines’ flights from Bang- lantic connection to New York. Next in line was a flight departing Dubai for the kok and Kuala Lumpur to Hanoi and Ho Chi Minh. Vietnam Airlines has its VN airline’s latest A380 destination, Brisbane. code on Etihad Airways’ flights from Bangkok and Kuala Lumpur to Abu Dhabi and luxury coach services from Abu Dhabi International Airport to Dubai. Emirates to commence daily service to Kabul: Emirates announced it is to commence a daily passenger service to Khwaja Rawash Airport, Kabul, Afghan- Etihad Airways announces plans for major increase in seats and flights be- istan from 4 December 2013. The route will be operated by an Airbus A340- tween Abu Dhabi and India: Etihad Airways will greatly increase options for 500 configured in a 3 cabin configuration, offering 12 First Class, 42 Business travel to and from India, introducing more flights and wide-bodied jets by the Class and 204 Economy Class seats. end of 2013, and further increases and new routes next year. From 1 November 2013, Etihad Airways plans to more than triple the number Emirates starts its daily service to Stockholm: Emirates has further expanded of seats it now offers on the prime Abu Dhabi - Mumbai and Abu Dhabi - New its European reach on 5 September with the start of its daily non-stop service Delhi routes. to Stockholm. The Boeing 777-200LR aircraft operating on the route is well- By 31 December, 2013, Etihad Airways plans to: appointed with the start of its daily non-stop service to Stockholm. The B777- • Increase from daily to double-daily its Abu Dhabi-Mumbai and Abu Dhabi- 200LR aircraft operating on the route is well-appointed with 8 private suites in New Delhi flights; First Class, 42 lie-flat seats in Business Class, and 216 seats in Economy Class. • Use wide-bodied Airbus A340-600 aircraft on one of the daily Abu Dhabi - In addition to passenger operations, Emirates SkyCargo offers 17 tons of belly- Mumbai flights, offering First, Business and Economy Classes; hold cargo capacity between the two cities.

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• Use wide-bodied Airbus A330-200 aircraft on one of the daily Abu Dhabi - route, where all MD-11Fs will be replaced by B747-400F aircraft. The revised New Delhi flights, offering Business and Economy Class; and schedule will also see the introduction of a new European destination as the • Upgrade daily Abu Dhabi - Chennai flights from 136-seat Airbus A320s to airline prepares to begin its first ever scheduled freighter services from the UK new Airbus A321s, seating 174 passengers. to KSA, commencing with two flights per week from Manston. Overall capac- Etihad Airways also intends to codeshare on a wide range of flights operated ity from Europe will grow by 5 frequencies to 22 weekly freighter flights to KSA within India by Jet Airways. from its hubs in Brussels, Amsterdam, Frankfurt, Malpensa and Manston. Source: Aviator Aero Gulf Air increases flights to Pakistan from 14 to 21 weekly:Gulf Air an- nounced it will increase its flights between Bahrain and Pakistan by 30% from Mahan Air to launch new service between Mashad and Dubai: Mahan Air is 14 to 21 flights per week to accommodate increasing passenger demand. introducing a new service to Dubai from September 8, Routes Online has re- Gulf Air ‘s new schedule to Pakistan, effective from 16 December 2013, will ported. The airline will operate the route between Mashad and Dubai twice see weekly flights increased to all four destinations that the airline currently weekly, on board an Airbus A310 aircraft. operates to in the country as follows; Karachi from seven to ten, Islamabad from two to three, Lahore from three to four and Peshawar from two to four. CAPACITY AND DEMAND Passenger Air Services to & from the Arab World - August 2013 - SRS Analyzer Iraqi Airways to launch China routes in October: Iraqi Airways plans to begin AACO members increased the number of seats offered to and from the Arab operating to Beijing, Guangzhou, Shanghai and Bangkok in October. World by 12.9%, while other airlines increased the number by 15.7% which Director general Mr. Saad Al-Khafaji tells Flightglobal that the airline is ready to resulted in a growth of 13.9% in the total number of offered seats to and from launch services to China and Thailand after renewing all the requisite bilateral the Arab world. agreements. He says the routes could be operated by the Boeing 767s, 777 or Airbus A330 in its fleet before being upgraded to some of the 10 787s Iraqi Percentage of the Total Available Seats To and From the Arab World Airways has on order, the first four of which are due to be delivered in 2015, With Europe 31.4% Flightglobal’s Ascend Online database shows. Iraqi Airways returned to Malaysia earlier this month after a 34-year hiatus With Mid Asia 16.8% when it began a twice-weekly 777 service to Kuala Lumpur and expanded With Australasia 9.2% operations to neighboring Georgia, with a once weekly Sulaymaniya-Batumi With the Americas 2.5% service in August. Mr. Al-Khafaji says that Iraqi Airways will base roughly half With Sub Saharan Africa 4.5% of its operations at the planned 6 million-passenger capacity Middle Euphrates Source: AACO, SRS Analyzer International Airport which is currently under tender. Source: Flightglobal Capacity* of top 10 carriers (Arab World & Europe) Qatar Airways commences new route to Addis Ababa: Qatar Airways com- Airline ASKs (Million) Departures Seats menced its new route to Ethiopia’s capital city, Addis Ababa. With three- EK 6,992.9 3,534 1,416,362 flights-a-week on this route, Qatar Airways deployed an Airbus A320 featuring QR 2,412.2 2,278 532,277 up to 12 seats in Business Class and up to 132 seats in Economy. EY 1,486.1 1,240 296,960 Saudia Cargo grows belly and freighter network on selected routes: Sau- TK 1,022.3 2,751 513,788 dia Cargo is increasing its belly and freighter capacity on a number of routes AT 978.1 3,423 521,549 across its global network. BA 828.4 852 191,008 In its scheduled freighter service network, the cargo airline will add one addi- LH 827.8 1,195 235,966 tional flight per week from Guangzhou to Brussels, bringing the total number of weekly flights to three; one additional flight per week from Dhaka to Brus- AF 718.3 1,613 294,202 sels, bringing the total number of weekly flights to five; and two additional MS 680.0 1,530 256,406 flights per week from Nairobi to Amsterdam, resulting in a daily service. TU 548.1 2,533 417,859 A number of these routes will benefit from service upgrades, with B747-400Fs Grand Total 25,132.7 41,181 8,252,459 being utilized on the Dhaka-Brussels route as well as on Nairobi-Amsterdam * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Daily news on www.aaco.org Issue 79 - Oct. 2013 29 Global Arab Aviation

Capacity* of top 10 carriers (Arab World & Australasia) Capacity* of top 10 carriers (Arab World & Sub Saharan Africa) Airline ASKs (Million) Departures Seats Airline ASKs (Million) Departures Seats EK 6,962.7 2,418 982,386 EK 2,315.4 1,243 427,841 QR 2,935.6 1,515 440,620 AT 414.5 866 135,780 EY 2,102.2 967 297,606 QR 391.7 496 87,162 SV 786.6 298 106,898 MS 373.9 549 96,063 QF 660.5 124 55,800 EY 267.3 276 56,906 MS 386.6 154 49,604 ET 242.7 681 111,737 CX 355.7 186 57,846 KQ 96.2 192 30,375 GA 350.8 148 46,136 AH 91.0 181 30,500 JT 244.9 62 30,752 SV 88.7 172 31,406 SQ 216.5 116 35,974 TU 83.9 141 23,994 Grand Total 16,852.6 7,166 2,418,109 Grand Total 4,751.2 5,741 1,191,285 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer

Capacity* of top 10 carriers (Arab World & Mid Asia) Capacity* of top 10 carriers (Arab World & the Americas) Airline ASKs (Million) Departures Seats Airline ASKs (Million) Departures Seats EK 2,136.8 2,804 903,384 EK 2,982.8 646 246,826 QR 1,096.4 2,049 395,514 QR 1,183.1 336 103,136 SV 833.0 844 255,836 EY 1,034.1 276 90,068 G9 752.4 1,831 296,622 SV 381.3 126 36,152 AI 707.0 1,312 249,872 UA 370.3 124 33,728 9W 641.8 1,650 263,334 RJ 353.1 144 36,866 IX 562.3 1,170 210,600 MS 309.0 98 33,908 FZ 482.0 1,088 205,632 AT 263.3 154 45,836 WY 455.0 1,349 205,376 DL 203.9 62 16,678 EY 449.4 1,066 182,282 AH 79.2 52 12,584 Grand Total 11,120.0 22,645 4,420,419 Grand Total 7,237.4 2,044 663,348 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer

Daily news on www.aaco.org Issue 79 - Oct. 2013 31 Global Arab Aviation TOURISM Countries call for closer tourism and air transport policies at the UNWTO Visa facilitation can create 2.6 million new jobs in the APEC economies:A General Assembly: The General Debate of the 20th Session of the UNWTO new report by the World Tourism Organization (UNWTO) and the World Travel General Assembly has put a spotlight on the link between tourism and air & Tourism Council (WTTC) shows that visa facilitation could create up to 2.6 transport policies. Countries attending called for closer coordination between million new jobs in the Asia-Pacific Economic Cooperation (APEC) economies both policies highlighting that too often these interlinked sectors are dissoci- by 2016. The report was presented on the occasion of the APEC High Level ated (Victoria Falls, Zambia/Zimbabwe, 28 August). Policy Dialogue on Travel Facilitation (Bali, Indonesia, 1 October 2013). Delegations from the 120 UNWTO Members States intervening at the 20th The report The Impact of Visa Facilitation in APEC Economies indicates that al- Session of the UNWTO Assembly discussed air transport policies in their re- though there has been successful collaboration and advances across the APEC spective countries and called for measures and initiatives to increase connec- region to facilitate visas, including progressive approaches to implement new tivity. Countries further called for closer collaboration between tourism and air visa policies, 21% of expected international tourists arriving into APEC over the transport policies period 2014-2016 would still be required to obtain a traditional visa prior to Issues such as visa facilitation, the need to make airports more visitor friendly, travel under current visa policies. taxation, open skies and the impact of low cost airlines were among the issues Facilitating visas for these tourists could create as much as 2.6 million addi- in debate. tional jobs in the APEC economies by 2016 and an additional USD 89 billion in UNWTO has defined connectivity as one of its policy priorities alongside visa international tourism receipts generated by 57 million more tourists visiting facilitation and fair taxation and is working with the International Civil Avia- APEC destinations. tion Organization (ICAO) on advancing these issues as well as those related to In spite of the great strides made in recent decades to facilitate tourist travel addressing climate change, the modernization of aviation regulations and the all over the world, there are still important areas of opportunity, namely con- development of convergent rules for traveler and enterprise protection. sidering the possibilities to maximize the use of information and communica- More than one billion tourists crossed international borders during 2012, over tion technologies in improving visa procedures. Further opportunities include half of who travelled by air to their destinations. improving the delivery of information, facilitating current processes to obtain Source: UNWTO visas, differentiated treatment to facilitate tourist travel, instituting eVisa pro- grammes and establishing regional agreements for visa facilitation. UNWTO UNWTO approves accessible tourism recommendations:The UNWTO recom- and WTTC have been working closely together in recent years to promote the mendations on “Accessible Tourism for All” (2013) have been approved and value of visa facilitation as a means to stimulate economic growth and devel- endorsed by the General Assembly. Updated from the 2005 version, the rec- opment, namely through joint regional studies and cooperation with the T20, ommendations outline a form of tourism that involves a collaborative process the World Economic Forum (WEF), APEC and the Organisation of Economic Co- among stakeholders to enable people with access requirements to function operation and Development (OECD). independently through universally designed tourism products, services and Source: UNWTO environments. These recommendations were developed within the framework of the UN Convention on the Rights of Persons with Disabilities of 2007. Abu Dhabi sees record growth in first seven months of 2013:Abu Dhabi Accessible Tourism for All defines the appropriate measures to ensure that Tourism & Culture Authority (TCA Abu Dhabi) reports that more guests have persons with disabilities have access, on an equal basis with others, to the checked into Abu Dhabi’s 146 hotels and hotel apartments in the first seven physical environment, transportation, information and communications and months of 2013 than in any other comparative period so far. facilities open to the public or for public use. The figures show that guest arrivals topped 1.5 million – a 10% increase on the Along this line, a manual on “Accessible Tourism for All” is set to be published same period last year, delivering almost 4.8 million guest nights – up 23% on in late 2013, designed to guide tourism stakeholders to improve the accessi- 2012, with guests staying on average 3.17 nights (+12%), driving occupancy up bility for tourism destinations, facilities and services worldwide. The develop- by 7% to 68%. Year-to-date hotel revenues rose 16% to almost USD 81.5 mil- ment of the Manual is a joint effort between UNWTO, the European Network lion, with F&B accounting for USD 32 million. for Accessible Tourism (ENAT) and two Spanish institutions, the ACS Founda- India is now Abu Dhabi’s top overseas source market with 92,529 Indians tion and the ONCE Foundation. According to the World Health Organization checking into the emirate’s accommodation this year – a 21% increase on last (2011), there are approximately 1 billion persons with disabilities in the world, year. These guests delivered 382,913 guest nights – a 37% lift, with an aver- or 15% of the world population having a physical, mental or sensory disability. age-length-of-stay of 4.14 nights – an increase of 13%. Source: UNWTO

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The UK follows with 86,284 Britons having stayed in the emirate’s hotels – a Qatar currently serves 130 destinations in more than 70 countries in the Mid- climb of 8% on 2012. They delivered 406,475 guest nights – up by a fifth on dle East, Europe, Africa, North and South America, Asia, and Australia. From last year with the average-length-of-stay 4.71 nights – an 11% increase on its Doha hub, Qatar serves 22 cities throughout the Middle East and offers 2012. Germany ranks third with 67,968 German guests – a 25% increase – de- more than 1,100 weekly flights, including service to American’s hubs in New livering 322,128 guest nights (up by a third), with an average length of stay of York (JFK) and Chicago (ORD), as well as Houston (IAH), Washington, D.C. (IAD), 4.74 nights – 7% more than in 2012. and, beginning in April of next year, Philadelphia (PHL). Source: TTGMENA In addition to expanding its partnership with American, as previously an- nounced, Qatar Airways will join the oneworld alliance on October 30, making Saudi Arabia to add 50,000 new hotel rooms by 2016: Saudi Arabia’s Gen- it the first of the three major airlines based in the Gulf region to join a global eral Authority for Tourism and Antiquities has said the number of hotel rooms airline alliance. across the country saw a jump of 54% between 2004 and 2012, Arab News has reported. In 2012, the total number of hotel rooms reached more than ENVIRONMENT 185,000 units, representing an increase of about 88,688 rooms, of which 8,105 are in the capital, Riyadh, alone. “There are many projects currently CDM pipeline update: being implemented in major cities and the economic cities, and thus, it is -ex CDM pipeline update 1 Oct. 2013 Status # of Projects pected that about 50,000 more hotel rooms will be added over the next three Status # of Projects Withdrawn 60 years,” said Vice President of Investment and Tourism Development at the Rejected by EB 261 authority, Mr. Salah Al-Bakhit. At Validation 1,435 Source: AMEInfo Request for Registration 65 Validation Negative by 262 Request for Review 23 DOE COLLABORATION Correction Requested 2 Validation Terminated by DOE 1,640 Under Review 0 Etihad Guest set for further expansion with integration of Air Serbia frequent Registered, no issuance flyer program:Etihad Guest, Etihad Airways’ loyalty program, is to expand fur- Total in Registration of CERs 4,823 Process 90 ther with the integration of the Air Serbia, currently Jat Airways’, frequent flyer Registered, CER issued 2,466 program, Extra Flight Club, from Monday 28 October 2013. Source: UNEP RisØ Members of the Etihad Guest program can automatically earn and redeem Total Registered 7,289 Etihad Guest Miles across the entire worldwide partner network, which in- cludes international hotel chains, car hire companies and retailers as well as Settlement Price of ECX EUA and CER Futures on 1 October 2013 hundreds of brands and thousands of products for miles redemptions in the Dec-13 Dec-14 Dec-15 Dec-16 program’s Reward Shop. The integration of the Extra Flight Club follows Etihad EUAs € 5.15 € 5.28 € 5.50 € 5.78 Airways’ acquisition of a 49% stake in Air Serbia, subject to regulatory approv- CERs € 0.62 € 0.58 € 0.66 € 0.69 als, and the Abu Dhabi-based airline gaining a five-year management contract of the Serbian national carrier. Source: IntercontinentalExchange Climate Change: ICAO 38th Assembly agree to develop a global MBM: The Qatar Airways and American Airlines strengthen relationship with reciprocal International Civil Aviation Organization (ICAO) concluded a landmark 38th As- frequent flyer program agreement:Qatar Airways and American Airlines an- sembly on 4 October, receiving endorsement from its Member States on sec- nounce an expansion of their relationship to include a reciprocal frequent flyer tor-wide strategic planning and exceeding many expectations when it agreed program agreement, providing customers more opportunities to earn and to develop a global market-based measure (MBM) for international aviation. redeem miles when traveling across each airline’s global network. ICAO’s States agreed to report back in 2016 with a proposal for a global MBM American Airlines AAdvantage members can earn and redeem AAdvantage scheme capable of being implemented by 2020. Major efforts will need to be miles and Qatar Privilege Club members can earn and redeem Qatar Qmiles undertaken in order to address the challenges and accommodate specific con- when traveling on flights operated by the other carrier. This agreement is in cerns of developing countries going forward. addition to the codeshare relationship the two carriers have in place, which The Assembly recognized ICAO’s tremendous progress during the last trien- includes joint marketing on 170 unique routes throughout the United States, nium, and reaffirmed its collective aspirational goals and agreed on Europe and the Middle East.

Daily news on www.aaco.org Issue 79 - Oct. 2013 35 Global Arab Aviation a comprehensive strategy to progress all elements of the basket of measures EU Climate Change Commissioner Ms. Connie Hedegaard, said: ‘’The EU’s hard namely technology, operations and alternative fuels and set forth a very -am work has paid off. After so many years of talks, ICAO has finally agreed to the bitious work programme for capacity building and assistance to States in the first-ever global deal to curb aviation emissions. If it hadn’t been for the EU’s development and implementation of their action plans to reduce emissions. hard work and determination, we wouldn’t have got this decision today to The development of a new aircraft noise Standard was clearly welcomed by create a global market-based measure. What matters to us is that the aviation the Assembly, and further work towards the establishment of robust particu- sector also contributes to our efforts to reduce emissions. While we would late matter and CO2 emissions Standards by the 39th Assembly in 2016 was have liked more countries to accept our regional scheme, progress was made fully encouraged. ICAO’s achievements with environmental tools were simi- overall and we will now factor this in when, together with the member states larly supported, notably with respect to its Fuel Savings Estimation Tool which and the European Parliament, we decide on the way forward with the EU facilitates assessment of the environmental benefits of operational measures. ETS.’’ Also strongly endorsed was ICAO’s continuing work to aid wider implementa- The agreement tion of sustainable alternative fuels. The UN Assembly has agreed to develop, by 2016, a global MBM for interna- The submission of State Action Plans, representing more than 80% of interna- tional aviation that can start in 2020. Until then countries or groups of coun- tional traffic during the last triennium, was recognized as a significant achieve- tries should – within certain parameters – be able to deploy MBMs. ment by the Assembly. ICAO also received separate and strong signs of sup- The market based measures will go hand in hand with new procedures to port for this work through announcements of related financial assistance by promote more advanced technology, including the use of better alternative the Global Environment Facility and the European Union (EU). aviation fuels and to promote better procedures, including in the area of air In addition to ICAO’s many recent achievements and future work with new navigation. technologies, operational measures and sustainable alternative fuels to im- The agreement also puts in place a fair and equitable solution that respects prove aviation’s environmental performance, the topic of a global solution for the special circumstances and respective capabilities in which a number of a market-based measure to augment these technical and operational efforts countries find themselves. was a more complex area where full Assembly consensus was concerned. Aviation accounts for 3% of global CO2 emissions but ICAO statistics show that In the end, ICAO forged a landmark MBM agreement amongst its States, real- international aviation CO2 emissions are forecast to increase between 4 and 6 izing another historic and important first for air transport as it now becomes times by 2050 from the levels of 2010. the only major industry sector to have a multilateral global MBM agreement in What happens next? place to help govern future greenhouse gas emissions. In the light of this agreement, the European Commission,, in coordination with Source: ICAO the European Parliament and the EU Member States, will now assess the deci- sion taken at ICAO in more detail before deciding on the next steps with re- The European Commission welcomes agreement on global aviation emis- spect to the EU ETS. sions deal: The European Commission welcomed the decision by the UN As- Source: European Commission sembly responsible for International Civil Aviation (ICAO) to decide on a global mechanism to tackle emissions from aviation. The Assembly has agreed to EC proposes EUR 6.5 million for state CO2 reduction activities through ICAO: develop by 2016 a global market based mechanism to tackle emissions, which The International Civil Aviation Organization (ICAO) and the European Com- can come into force in 2020. The market based mechanism will be accompa- mission (EC) signed a Declaration of Intent this evening affirming their collabo- nied by a series of technical and operational measures to reduce emissions. ration on assistance and capacity building activities to support measures to With this deal, the aviation industry becomes the first international transport mitigate CO2 emissions from international aviation. sector to apply a global market-based mechanism to reduce their emissions. This Declaration was signed by the European Commission Vice-President Mr. European Commission Vice President Mr. Kallas, Head of the EU Delegation to Siim Kallas and the ICAO Secretary-General Mr. Raymond Benjamin during a ICAO and EU Commissioner responsible for Transport said, “I am very pleased special ceremony on the first day of the 38th Session of the ICAO Assembly. that after long and hard negotiations we finally have a global deal on aviation The EC intends to commit financial support of EUR 6.5 million towards envi- emissions. This is good news for the travelling public, good news for the avia- ronmental action being undertaken by States in the African and Caribbean tion industry, but most importantly it is very good news for the planet. We regions. have also avoided a damaging conflict among trading partners. We still have A timeline through 2016 has been envisaged to realize this joint ICAO/EC ca- some detailed work to do between now and 2016. But tonight, we have dem- pacity building initiative, with expectations on all sides to consider how these onstrated that we really mean business when it comes to dealing with avia- efforts could be expanded to other States and regions in the future. tion’s environmental footprint.” Source: ICAO

Daily news on www.aaco.org Issue 79 - Oct. 2013 37 Global Arab Aviation REGULATORY TONE Global environment facility earmarks USD 2 million for UNDP/ICAO environ- ICAO’s 38th Assembly marks major agreements on key issues: In addition to ment project: The Global Environment Facility (GEF) has approved Project environment issues, the 38th ICAO Assembly strongly endorsed two revised Concept and an earmarked USD 2 million for a new United Nations Develop- and significant ICAO Global Plans. Now served by complementary collabora- ment Program (UNDP)/International Civil Aviation Organization (ICAO) aviation tive methodologies and clear operational performance objectives in the areas emissions reduction initiative. of Safety and Air Navigation, the new ICAO strategy documents will be instru- The UNDP/ICAO project objectives include identification of the implementa- mental to how States and industry unite over the coming decades to safely tion needs of States relating to the reduction of international aviation emis- expand air traffic capacity and efficiently accommodate the projected doubling sions as identified through ICAO’s existing State action plan mechanism. It will of air traffic by 2030. also seek to support States in the enhancement of related national capacities 38th ICAO Assembly: Summary of some developments and in developing processes for lowering CO2 emissions from the international Safety still paramount aviation sector. In the Safety domain, the 38th ICAO Assembly reiterated global aviation’s The project helps fulfill ICAO’s mandate to achieve sector-wide transition to a first and guiding commitment is to reduce the rate and number of acci- low carbon future, as well as the GEF mission to play a catalytic role in achiev- dents worldwide. It also confirmed this work will now be guided by incre- ing global environmental benefits. mental targets established in a revised ICAO Global Aviation Safety Plan The GEF conveyed its approval of the Concept Document, which had been de- (GASP) which received strong Assembly endorsement. veloped by ICAO in collaboration with UNDP. The UNDP serves as the imple- The revised GASP gives ICAO a clear mandate to continue driving greater menting agency of the GEF and will be responsible for establishing practical transparency, collaboration and responsiveness in safety improvement tools to aid in the realization of ICAO’s project objectives, while ICAO will liaise through real-time analysis and reporting cycles and greater regional ac- closely with UNDP officials to ensure near-term and long-term objectives are countability. It also sends a strong message that collaboration and partner- suitably addressed. ship on air transport’s sector-wide safety challenges remains essential to The GEF financing makes this the first occasion where a multilateral agency delivering positive results. will assist in addressing CO2 emissions from global international civil aviation. Based on further Assembly support it received, ICAO will be furthering ICAO will continue its separate coordinating work with other multilateral agen- these efforts in the years to come through more intensive engagement cies, financial institutions and international organizations that have funding with all regional players, and the sensible protection and sharing – where streams dedicated to climate change mitigation. appropriate – of critical safety information. Source: ICAO Air navigation capacity & efficiency Continuing Safety progress will now be enhanced by complementary Air Etihad Airways announces Fuel Optimization Week: As part of its on-going Navigation analysis and reporting cycles, as confirmed by the Assembly’s efforts to limit its carbon footprint, Etihad Airways initiated on 22 September similarly strong endorsement of the revised ICAO Global Air Navigation a week-long campaign to promote its company-wide fuel efficiency program Plan (GANP). designed to further raise awareness of its significant efforts to reduce carbon The GANP will permit ICAO to practically and flexibly realize the long- emissions. sought after goal of a globally-harmonized Air Navigation system. With its The Fuel Optimization Week program highlights specific activities designed extensively-detailed aviation system block upgrade modules, the revised to reduce the consumption of aircraft fuel, both on the ground and in the air, GANP provides unprecedented levels of transparency and planning cer- while maintaining the airline’s high levels of safety and guest comfort. The re- tainty to States, regional implementation groups, service providers, air- duction in fuel consumption results in a reduction in carbon emissions, reduc- space users and industry stakeholders. It provides clear guidance on the ing the potential negative impact of aviation on the environment. required operational targets and supporting standards needed over the next 15 years, not to mention the specific technologies, procedures and regulatory approvals these will be based on. Security and facilitation By endorsing the Council’s Decisions on Security and Facilitation, the As- sembly confirmed ICAO’s emphasis on achieving greater balance between effective control measures and system-wide connectivity and efficiency. Risk-management-based prioritization, mutual recognition of equivalent

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security measures and other key principles will now serve as foundational This instrument modernizes the legal regime regarding air carrier liability and components to future Security and Facilitation discussions in ICAO. facilitates the use of paperless air transport documents. ICAO Member States further acknowledged the progress made since the Source: ICAO 37th Assembly in enhancing civil aviation security, notably through the strengthening of Annex 17 Standards and Recommended Practices (SARPs) ICAO Assembly elects new Council for three-year term: The 38th Session of dealing with air cargo, the delivery of technical assistance and cooperation the Assembly of the International Civil Aviation Organization (ICAO) completed in all regions, and the completion of the second cycle of the Organization’s the election of its new Council. The 36-Member Council is the governing body Universal Security Audit Programme (USAP). of the Organization and is elected for a three-year term. The Assembly also endorsed new directions in the Security and Facilitation The election process was divided into three parts, with the following States area, such as the Continuous Monitoring Approach (CMA) to security au- elected: dits and ICAO’s new Traveller Identification Programme strategy. Above all, Part I (States of chief importance in air transport): Australia*, Brazil*, Cana- the Assembly outcomes reinforced that success in aviation Security and da*, China*, France*, Germany*, Italy*, Japan*, Russian Federation*, United Facilitation must be built on a foundation of improved international coop- Kingdom* and the United States*. eration. Part II (States which make the largest contribution to the provision of facili- Economic development of air transport ties for international civil air navigation): Argentina*, Egypt*, India*, Mexico*, The Assembly endorsed the new ICAO Strategic Objective aimed at the Nigeria*, Norway, Portugal, Saudi Arabia*, Singapore*, South Africa*, Spain* economic development of air transport. Also endorsed were the recom- and Venezuela. mendations delivered by the Sixth Worldwide Air Transport Conference Part III (States ensuring geographic representation): Bolivia, Burkina Faso*, (ATConf/6) and the Organization’s future work plan in the areas of forecast- Cameroon*, Chile, Dominican Republic, Kenya, Libya, Malaysia*, Nicaragua, ing, economic analysis and statistics. Poland, Republic of Korea*, United Arab Emirates* and United Republic of ICAO will consequently have a stronger mandate for the coming triennium Tanzania. to lead development on a long-term vision for liberalization, a global regu- *Indicates re-election. latory framework and related policy guidance. Key to these efforts will be Source: ICAO the development of international agreements to facilitate liberalization of market access, air carrier ownership and control and air cargo service, as India’s SEBI and Cabinet give the green light on Etihad-Jet Airways deal:The well as ICAO’s continued provision and enhancement of the ICAN facility market regulator Securities and Exchange Board of India (SEBI) is said to have to support States’ efforts in international air transport liberalization. given a green signal for Etihad-Jet Airways 24% stake sale deal. The development of core principles for consumer protection were recog- Moreover, on 3 October, India’s Cabinet has given the final approval on the nized by the Assembly as a further matter of priority for ICAO, as was the Etihad-Jet Airways deal. The approval will result in foreign investment of 20.6 development of guidance on the impact of taxation and charges on air billion rupees (USD 332 million), the government said in a statement after a transport. The Organization was also directed to provide guidance on: the cabinet decision in New Delhi. India modified airline ownership rules in 2012. funding and financing of aviation infrastructure development; safety, secu- rity and economic oversight functions; as well as incentive mechanisms to Etihad and Jet Airways apply for US codeshare: Etihad Airways and Jet Air- support the timely implementation of the aviation system block upgrade ways have applied to US authorities to expand their existing codeshare to modules. cover their services into the country. Source: ICAO Etihad requests permission to place the Indian carrier’s 9W code on its flights operating between Abu Dhabi and Chicago, New York and Washington. ICAO 38th Assembly urges ratification of Beijing Convention, Beijing Protocol Jet Airways is seeking permission to display Etihad’s code on its services from of 2010 and Montreal Convention of 1999:In the legal field, the 38th ICAO As- Brussels, which is an intermediate point on its India-US services and on flights sembly adopted a resolution to promote the ratification of the Beijing Conven- to Newark. tion and the Beijing Protocol of 2010. These two new treaties have broadened Source: Flightglobal and strengthened the global aviation security regime to meet new and emerg- ing threats. Texas Attorney General announces agreement to support American Airlines, The Assembly also adopted another resolution to promote the ratification and US Airways merger: Texas Attorney General Greg Abbott, AMR Corporation, urge universal adoption of the Montreal Convention of 1999, in order to real- the parent company of American Airlines, Inc., and US Airways Group, Inc. an- ize the full benefits from its implementation. nounced that they have reached an agreement for the Texas Attorney General

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to support the proposed merger of American and US Airways. Airports, regions & MEPs urge EC to revise proposed new State Aid rules: Under the terms of the agreement, the new American Airlines will maintain European airport trade ACI EUROPE, in cooperation with Mr. Franck Proust scheduled daily service to more than twenty airports in Texas. In addition, the MEP (EEP, South West France) and Union des Aéroports Français (UAF) held a agreement provides that Dallas/Fort Worth International Airport be main- joint-hearing in the European Parliament, on the European Commission’s (EC) tained as a large hub airport for the combined airline and that the new Ameri- proposals for revised State Aid Guidelines in the aviation sector. The event can will maintain its headquarters in the Dallas/Fort Worth area. attracted more than 100 participants including individual airports, Member The State of Texas had previously joined the U.S. Department of Justice State representatives - in particular from many local and regional authorities, (“DOJ”) as co-plaintiff in its pending suit to block the merger of American Air- airline associations AEA, ELFAA, ERA, as well as MEPs and EC officials. lines and US Airways. With this agreement, the Texas Attorney General has With these new proposed guidelines, the EC is explicitly seeking to curb the agreed to withdraw his participation in the DOJ’s lawsuit. public financing of airport infrastructure across Europe. National, regional and Source: AMR local authorities would therefore have to comply with more restrictive rules limiting their ability to invest in the development of new or existing airport MEP Mr. Bach, from TRAN Committee in European Parliament, drafts a more infrastructure (investment aid) as well as in the financing of day-to-day opera- strict report on air passenger rights regulation: MEP Mr. George Bach, mem- tions of smaller airports (operating aid). ber of the Transport Committee (TRAN) and rapporteur of passenger rights Protection of growth & jobs – not just competition regulation EU 261/2004, has drafted his report on the EC proposal to amend At the hearing, there was strong consensus from all airports, local & regional the passenger rights regulation. authorities and MEPs on the absolute need for the proposed Guidelines to be In his report, Mr. Bach went further in putting further liabilities on airlines, amended to better reflect and support airports’ positive externalities and in which will eventually lead to higher costs and less choices for passengers. Mr. particular their contribution to the economy and jobs. Bach called for air passenger rights to be tightened up to stop airlines from The proposed new Guidelines do not reflect the economic fundamentals of exploiting the “extraordinary circumstances” clause in order to avoid paying small regional airports. Due to a combination of high fixed costs, low non- compensation to passengers for delays or denied boarding. aeronautical revenues and zero pricing power when it comes to airport charg- Mr. Bach, in the TRAN Committee debate, also urged that passengers should es, smaller airports structurally cannot achieve profitability – and any policy be entitled to Euro 300 compensation after a three hours’ delay on intra-Eu- which ignores this reality will cost economic growth and jobs. ropean-flights. MEPs also debated the need to give customers accurate infor- Yet, the EC is proposing to ban operational aid to all but the smallest of region- mation when booking, as well as in the airport, and on standard claim proce- al airports after a 10 year transitional period, during which such aid will need dures. The TRAN Committee will vote on Bach’s report on 14 November 2013. to be progressively phased out. This will require an increase in airport charges levied on airlines and passengers, which will simply price these airports out of The EU Transport Ministers approve the enlargement of Single European Sky: the market. As a result, airlines will withdraw services and close down routes - The EU Transport Ministers expressed their support for the European Com- and ultimately some of these airports will also face closure. mission’s initiative aiming at developing the Single European Sky and ensuring For regional communities in particular, connectivity is essential for inward safe and efficient air traffic management system. This view was expressed in investment, tourism, trade and productivity. Air access is the only mode of the Informal Meeting of the EU Transport Ministers Single European Sky. Deliv- transport which can deliver this global connectivity in an affordable and timely ering the future: Vision 20XX, held on the 16th September, 2013. manner. Indeed, small regional airports in the EU alone support a GDP contri- The participants of the high-level thematic debate discussed the progress in bution of €16.15 billion, and 265,000 jobs. strengthening the European single air transport market and further action Source: ACI Europe plans. In addition, the EU Transport Ministers, air carriers and civil aviation navigation service providers exchanged their views on the tangible results that European Commission urges Italy, Cyprus and Greece to implement EU rules SES initiative has already produced and stressed the need to accelerate the to unblock congestion in Europe’s airspace:The European Commission has re- modernization of EU air traffic management. quested Italy, Cyprus and Greece to urgently clarify the measures taken to es- The ministers agreed to pursue the major goals of the SES initiative: improve tablish Functional Airspace Blocks (FABs), required under the Single European air safety, increase the capacity of air space, and reduce the cost of travelling, Sky legislation 2004, in order to reform Europe’s out-of-date air traffic control as well as negative environmental effect of aviation emissions. system. The FABs are intended to replace the current patchwork of 27 national Also the air carriers – major users of the SES –expressed their support for fur- air traffic blocks with a network of larger, regional blocks, to gain efficiency, cut ther development of initiative. costs and reduce emissions. The Commission is looking to head off a capacity Source: Presidency of the Council of the EU crunch as the number of flights is forecast to increase by 50% over the next

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10-20 years. Member States have, since 2004, been obliged to establish FABs. the new system, in the meantime the laws and regulations governing the state Due to the slow progress, a binding deadline of 4 December 2012 was set in administrative system will continue to be in force. The headquarters of PACA 2009, but implementation is still far too slow. The Commission is now seeking will be in Muscat but it is possible to set up branches in the governorates if clarification, through a letter of formal notice, of the measures Italy, Cyprus decided by the chairman of the board of directors. and Greece have taken to put the basic legal structures for FABs in place. The new system has introduced 16 new fields of jurisdiction which include: Delays in delivering operational FABs are holding back the implementation of suggesting the general policies of the civil aviation after coordinating with the the EU’s Single European Sky to a significant degree which in turn generates authorities concerned and referring them to the Ministry of Transport and inefficiencies in the entire European air traffic management system, bring- Communications to be reviewed and then to the Council of Ministers for ap- ing extra costs of close to €5 billion a year which are passed on to airlines and proval, proposing laws and regulations relating to the civil aviation, laying their customers — as well as increased journey times, delays and emissions. down and implementing safety programs, signing international agreements Source: European Commission and treaties in the area of air transport in co-ordination with the bodies concerned as well as the implementation of international agreements and Ryanair appeals against sale of Aer Lingus stake: Ryanair Holdings kicked off treaties. As per the Royal Decree, PACA will be responsible for setting up a its appeal against the UK Competition Commission’s ruling to reduce its stake database of aircraft registration, validity certificate as well as identifying the in rival Irish carrier Aer Lingus, which, the watchdog said, stifled competition country of origin and registration in co-ordination with the National Centre for on routes between the UK and Ireland and gave it undue influence over Aer Statistics and Information. Lingus’s commercial policy and strategy, reported Dow Jones Newswires. The board of directors of PACA -- comprised of the chairman and six members Ryanair was ordered to reduce its stake in Aer Lingus to 5%. appointed by the Council of Ministers -- will take the responsibility of manage- In its appeal, the airline said that the UK watchdog’s ruling is inconsistent with ment and organization of Authority. Membership lasts for four years renew- the possibility that the airline will succeed in its appeal against the EU’s rejec- able to another 4-year term on a decision from the Council of Ministers. The tion of its takeover bid. Ryanair also argues that the UK Commission didn’t board of directors will possess the power to issue decisions and take the ap- make its case that any material influence Ryanair has over Aer Lingus would propriate measures that enable PACA to perform its duties. result in a significant lessening of competition. These powers include approving the organizational structure and adminis- The appeal is expected to delay the forced sale of its stake in Aer Lingus by up trative divisions and identifying the jurisdictions of each one after obtaining to a year, according to the UK Competition Commission and anti-trust lawyers. approval from the authorities concerned, approving the regulations and the administrative and financial systems of the Authority without the need to UK CAA launches market power consultation after Ryanair/Stansted accord: comply with the regulations and system of the state administrative apparatus. Following the agreement between Ryanair and Manchester Airport Group The board of directors also approves the annual budget and lays down the (MAG) to grow passenger traffic through Stansted Airport, the UK Civil Avia- programs and projects of PACA and approves the financial and administrative tion Authority (CAA) has said it will defer making final proposals on future reports as per the laws of the Sultanate of Oman. regulation for Stansted from Oct. 3, 2013 to April 1, 2014. Source: Oman Daily Observer Instead, CAA will launch a consultation to give stakeholders a chance to com- ment on how this, and another agreement between MAG and easyJet an- Kuwait inks aviation cooperation deal with Malta: Kuwait has signed an nounced earlier this year, might affect the market power assessment. agreement covering the aviation sector with Malta, Times of Malta has report- Source: ATW ed. The agreement was signed by the deputy Prime Minister and Minister for Foreign Affairs of Kuwait, H.H. Sabah Khalid Al-Hamad Al-Sabah, and Maltese Objectives of Oman’s PACA set by Royal Decree: The system of the Public Foreign Affairs Minister, H.E. George Vella, the report said, without providing Authority for Civil Aviation (PACA) issued by Royal Decree No 43/2013 has set further details on the agreement. the objectives of PACA the most important of which is to uplift the civil avia- tion sector and its related bodies, upgrade the quality of services, improve Qatar and Moldova agree to liberalize air transport: The State of Qatar and civil aviation safety, contribute to the growth that is taking place in different the Republic of Moldova have signed an air transport agreement after talks economic sectors, strengthen the relationships with all countries as well as the the two sides held at the Civil Aviation Authority headquarters in Doha. regional and international organizations while keeping pace with the recent According to the agreement, sky will be open for the national carriers of the advancements in civil aviation on the regional and international levels. As per two countries to operate a number of unlimited passenger and cargo flights the Royal Decree the chairman of PACA board of directors will issue the appro- via any intermediate or points beyond. priate regulations and decisions that are needed for the implementation of

Daily news on www.aaco.org Issue 79 - Oct. 2013 45 Global Arab Aviation The agreement also allows national carriers to collaborate between each oth- er or with other airlines through codeshares. Mr. Ibrahim Abdul Qadir Al-Janahi, Director of the Air Safety Department, signed the agreement for Qatar while Mr. Eugen D., Deputy Director General of the Moldovan Civil Aviation Authority, signed for his country. Qatar is the first Arab country to conclude such an air transport agreement with Moldova. Source: Qatar News Agency (QNA) Qatar Airways granted rights to Johannesburg - Maputo from late October: Qatar Airways has tentatively been granted local traffic rights on the Johan- nesburg - Maputo, Mozambique sectors of its 3x weekly flights between Doha, Qatar and the Southern African nations with effect from October 27, 2013. Source: The African Aviation Tribune UAE and Afghanistan sign an Air Services Agreement (ASA): UAE and Afghani- stan have signed an Air Services Agreement, on the sidelines of UN’s 68th Gen- eral Assembly in New York. The agreement was signed between HH Sheikh Abdullah bin Zayed bin Sultan Al Nahyan, Foreign Minister of the UAE, and his Afaghani counterpart H.E. Dr. Zalmai Rassoul. Spain, Senegal agree to boost traffic frequencies between them: The Span- ish Ministry of Development, through the General Directorate of Civil Avia- tion, has agreed with the Senegalese Ministry of Infrastructure and Transport to increase the number of weekly flights (round trip) that can be operated between the two countries, to twenty (20) - representing an increase of 13 frequencies between Spain and Senegal in the last eight months. The newly signed MoU supersedes the previous one signed in December 2012 which had provision for only 7-14 weekly frequencies. Currently, there are only three airlines operating from Spain to Senegal, all of which are Spanish: Iberia (IB), Air Europa (UX) and Swiftair (W3). A fourth, Bin- terCanarias (NT), is due in October. Source: The African Aviation Tribune

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Daily news on www.aaco.org Issue 79 - Oct. 2013 47 Global Arab Aviation AN AVIATION MARKET IN FOCUS: Bahrain The Kingdom of Bahrain Route Seat Capacity* Top 10 routes by seat capacity to and from Bahrain - August 2013 • Population: 1.23 million Dubai - Manama 150,902 • Land area: 765.3 km2 The top 10 routes on the left account • Number of passengers in 2012: 5.1 million passengers Doha - Manama 147,486 for 72.87% (0.7 million seats) of the • Number of commercial airports: BAH airport is the only commercial air- Abu Dhabi - Manama 99,880 total seat capacity scheduled to and port in Bahrain Kuwait - Manama 72,536 from Bahrain in August 2013. • Bahraini-based airline: Gulf Air Manama - Muscat 57,358 Traffic Share between Bahrain and Other London - Manama 43,338 Regions in 2012 Manama - Riyadh 40,306 6% 3% 1% 10% 57% Arab World Dammam - Manama 36,708 Mid Asia Jeddah - Manama 29,594 Europe Manama - Mumbai 27,032 Australasia Source: AACO, Innovata’s FlightMaps Analytics Americas * This includes seat capacity in both directions Sub Sahrain Africa 23% Airline Seat Capacity Source: AACO, IATA Gulf Air (GF) 530,013 Aviation Policy: Top 10 airlines operating by seat ca- - The Civil Aviation Affairs (http://mot.gov.bh/en/civil-aviation) is the- gov pacity to and from Bahrain - August Qatar Airways (QR) 61,776 ernmental body responsible for civil aviation in Bahrain. 2013 Emirates (EK) 55,388 - Bahrain applies an open skies policy. The top 10 airlines on the right offer al- Etihad Airways (EY) 43,442 most 0.84 million seats (86.76% of the Flydubai (FZ) 38,934 scheduled seat capacity) to and from Bahrain aviation market links 41 cities worldwide* Bahrain in August 2013. British Airways (BA) 30,380 Oman Air (WY) 21,106 Turkish Airlines (TK) 21,000 Air Arabia (G9) 20,584 United Airlines (UA) 16,926 Source: AACO, Innovata’s FlightMaps Analytics

Source: AACO, Innovata’s FlightMaps Analytics August 2013 * For a detailed view, please click on the image

Daily news on www.aaco.org Issue 79 - Oct. 2013 49 Global Arab Aviation WORLD NEWS 26% of Pakistan International Airlines’ shares to be privatized:The Govern- IATA figures - Passenger demand growth stays strong in August 2013:The In- ment of Pakistan has decided to privatize the Pakistan International Airlines ternational Air Transport Association (IATA) announced global passenger traffic (PIA), by selling 26% of PIA’s shares. results for August showing a strengthening of the healthy demand trend of the Prime Minister Nawaz Sharif directed the Ministry of Privatization and Civil last few months. Total revenue passenger kilometers (RPKs) rose 6.8% com- Aviation Division to initiate the process of privatization of PIA. He also ordered pared to August 2012. Capacity increases over the year-ago period lagged de- the authorities concerned to ensure transparency in the process. mand at 5.6%. This pushed the load factor to match the record high of 83.4% set in July 2011. TAM Airlines to join oneworld on 31 March 2014: TAM Airlines, a company related to LATAM Airlines Group, will join oneworld with effect from 31 March August 2013 vs. Au- RPK Growth ASK Growth PLF 2014. Confirmation of its oneworld joining date comes on the same day that gust 2012 LAN Colombia – which is, like TAM, a company related to LATAM Airlines International 7.5% 5.6% 84.0 Group - becomes part of oneworld, offering the alliance’s full range of services and benefits. Domestic 5.6% 5.7% 82.4 The addition of TAM from 31 March 2014 and LAN Colombia will mean all pas- Total Market 6.8% 5.6% 83.4 senger airlines in LATAM Airlines Group will be part of oneworld. LAN Airlines has been a full member of oneworld since 2000. All its other passenger air- YTD 2013 vs. YTD RPK Growth ASK Growth PLF line affiliates have subsequently joined the alliance as affiliate members – LAN 2012 Argentina, LAN Ecuador, LAN Peru and, from today, LAN Colombia - and now International 5.2% 4.4% 79.8 TAM from 31 March and with its Paraguayan affiliate to follow on a date yet to be confirmed. This consolidates oneworld’s position as the leading alliance Domestic 4.8% 4.2% 80.4 for flights within Latin America and between the region and both the United Total Market 5.1% 4.3% 80.0 States and Europe - the two most popular destinations for South American international travellers. TAM’s entry into oneworld with effect from the first International passenger markets flights on 31 March 2014 will follow immediately upon its exit from the Star Al- August international passenger demand was up 7.5% compared to the year- liance with effect from the final flights on 30 March 2014. The airline and one- ago period. Capacity rose 5.6% versus August 2012 and load factor climbed 1.5 world are taking every effort to ensure that the alliance transition is as seam- percentage points to 84.0%. All regions recorded year-over-year increases in less as possible for customers. demand. Source: oneworld • Asia-Pacific carriers’recorded an increase of 8.6% compared to August 2012, the strongest performance among the three biggest re- IATA expects DOT decision on NDC-Resolution 787 by end of 2013:IATA is ex- gions. Market indicators for emerging regional markets have been weak. pecting the US Department of Transportation (DOT) to decide by end of 2013 But downward pressure on growth appears to have eased, at least with on whether to approve IATA’s Resolution 787 on NDC. respect to China, where latest indicators show an improvement in new IATA is currently conducting pilot trials of the NDC and will unveil the results at export orders. With capacity up 6.3% over August 2012, load factor rose its World Passenger Symposium in Dublin in October. 1.7 percentage points to 81.6%. • European carriers’ international traffic climbed 5.4% in August IATA: Profits grow in 2013, but at a slower pace - upward trend to continue compared to the year-ago period, on a 3.7% rise in capacity, pushing load in 2014: The International Air Transport Association (IATA) revised its 2013 factor up 1.4 percentage points to 86.4%. Modest economic improve- global industry outlook downwards to USD 11.7 billion on revenues of USD ments and rising consumer confidence are supporting the growth in de- 708 billion. Airline performance continued to improve in the second quarter; mand. Business confidence is also strengthening with increased manufac- however at a slower pace than was expected with the previous projection (in turing and export activity. June) of USD 12.7 billion. This reflects the impact on demand of the oil price • North American airlines saw demand rise 5.1% over a year ago, the spike associated with the Syrian crisis and disappointing growth in several key slowest growth for any region but still close to double the year-to-date emerging markets. increase of 2.7%. This is consistent with indicators of a more supportive Source: IATA business environment, although manufacturing activity remains below

Daily news on www.aaco.org Issue 79 - Oct. 2013 51 Global Arab Aviation

the average seen at the start of 2013. A 4.0% rise in capacity meant that • 65% of airports worldwide registered positive passenger growth at an av- load factor climbed one percentage point to 88.1%, the highest for any erage of 7%, while 35% of airports lost traffic at an average rate of (4.3)%. region. 2012 Airport Traffic Summary Looking ahead, the US Government shutdown is not expected to impact Passengers: total passengers enplaned and deplaned, passengers in transit airline operations but could dampen demand. The 27-day shutdown in counted once. 1996, for example, resulted in delays for tens of thousands of passport Cargo: loaded or unloaded freight and mail. and visa applications. Aircraft Movements: landing or take-off of an aircraft. • Middle East carriers had the strongest year-over-year traffic 2013 Outlook growth at 15.1%. The result was positively biased from the timing of ACI statistics received just before the release of this report showed global pas- Ramadan, which occurred a month earlier (in July) in 2013. Capacity ex- senger traffic up 3% for the first five months of 2013. pansion was held to 10.8% which pushed up load factor 3.1 percentage Source: ACI points to 82.0%. The strong demand trend is expected to continue, with August data showing solid progress in non-oil producing sectors in coun- tries such as Saudi Arabia and the United Arab Emirates. • Latin American airlines posted a demand rise of 9.8% in August, year-over-year. Although Brazil continues to face deteriorating business confidence, Colombia, Peru and Chile, for example, are expanding and the region is also enjoying strong export activity, well above the global trend. Capacity rose 7.6% and load factor climbed 1.6 percentage points to 80.8%. • African airlines’ traffic climbed 5.4% compared to August while capacity rose 6.5%, resulting in a 0.7 percentage point dip in load factor to 70.9%. Africa was the only region to see a decline in the load factor. The growth in demand for passenger travel highlights the important role that global connectivity plays in today’s world. Source: IATA ACI releases its 2012 world airport traffic report: airport passenger traffic maintains momentum; cargo growth remains almost flat for second year as advanced economies face austerity: ACI World announced the launch of its 2012 World Annual Traffic Report (WATR). The Report provides coverage of airport traffic statistics, thematic areas including passengers, cargo (freight and mail), aircraft movements, and new sections. 2012 – Key statistics 1,598 airports located in 159 countries reported that: • Worldwide airport passenger numbers increased by +4.4% in 2012 to 5.7 billion, registering increases in all six regions • Middle East (+13%), Asia-Pacific (+8%), Latin America-Caribbean (+7.6%) and Africa (+6.1%) all showed robust growth in passenger traffic. Europe (+1.7%) and North America (+1.3%) experienced moderate growth • Worldwide domestic traffic increased by +3%, while international traffic jumped by +5.7% • Worldwide aircraft movements increased 0.6% to 79 million • Total cargo volumes handled by airports was almost flat at 0.5%, which represents 93 million tons

Daily news on www.aaco.org Issue 79 - Oct. 2013 53 OUR PARTNER AIRLINES Partner Airlines

SPAIN TRAFFIC The Spanish air transport market shrank by (1.6%) in July 2013 over July 2012 in terms of number of passengers traveling to, from and within Spain, and is ex- pected to contract further in August 2013 by (6.7%) compared to August 2012. LATEST NEWS Traffic statistics September 2013: In September 2013, Group traffic measured Monthly Passenger Numbers' Change in the Spanish Air Transport Market in Revenue Passenger Kilometres increased by 8.8% versus September 2012 Sep 12 to Aug 13* comapred to same month in previous year (down 0.4% on a pro-forma basis); Group capacity measured in Available Seat Kilometres rose by 8.3% (down 1.4% on a pro-forma basis). 10% Group premium traffic for the month of September decreased by 0.1% com- 5% pared to the previous year, on falling capacity. 0% Underlying market conditions remain unchanged from those described at the publication of Quarter Two results on 2 August. -5% -10% Strategic developments: IAG shareholders approved the purchase of 18 Boe- -15% ing 787 and 18 A350 longhaul aircraft for British Airways and 62 A320 short- haul aircraft for Vueling at a shareholder meeting on September 26. The meet- -20% ing also approved the appointment of Mr. Enrique Dupuy de Lômé Chávarri, -25% IAG’s Chief Financial Officer, to the IAG Board. British Airways announced that it will extend its North American network with a new daily service to Austin, Texas from March 2014. Flights will be operated on a Boeing 787 aircraft. International Domestic Iberia launched a new fare structure for domestic and European flights which includes a new “Basic” economy fare for the most price conscious customers Source: AACO, IATA *Estimated who only fly with hand luggage. Looking at the Spanish market traffic flows, the international European market In September two more Airbus A340-600 aircraft were equipped with Iberia’s represented in July 2013 74.4% of the total market, and is expected to shrink to new Business and Economy longhaul cabins, making a total of three A340- 68.2% in August 2013. Traffic between the Arab world and Spain represented 600s with new cabins now flying. 1.4% of the total Spanish market in July 2013, and is expected to grow to 2.4% in August 2013. Passenger Numbers' Change in the Spanish Air Transport Market May13-Jul13 & Jun13-Aug13* compared to same period in previous year 30% 25% 20% 15% 10% 5% 0%

-5% Domestic With Arab With With -10% World With the Australasia Europe With Mid -15% Americas with Sub Asia -20% Sahran Africa -25%

May13-Jul13 Jun13-Aug13* Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 79 - Oct. 2013 57 Partner Airlines

In July 2013, Ryanair was the biggest carrier operating to, from and within Looking at the UK market traffic flows, the international European market rep- Spain by number of passengers, boarding 3.28 million pax, which represented resented in July 2013 67.6% of the total market, and is expected to shrink to a decrease of (8.1%) over July 2012 operations. 59.7% in August 2013.Traffic between the Arab world and the UK represented 2.8% of the total UK market in July 2013, and is expected to grow to 4.4% of Top 15 Airlines Operating in the Spanish Market total traffic in August 2013. Airline Jul-13 Growth Airline Jul-13 Growth Passenger Numbers' Change in the UK Air Transport Market FR 3,283,970 (8.1%) LH 365,482 8.3% May13-Jul13 & Jun13-Aug13* compared to same period in previous year 14% IB 1,733,603 (17.0%) DY 338,608 45.5% 12% U2 1,349,978 (13.1%) BA 237,007 32.2% 10% VY 1,225,394 28.4% NT 235,200 (3.7%) 8% AB 1,079,260 2.7% AF 211,664 (6.0%) 6% UX 646,465 0.7% LX 202,627 2.7% 4% ZB 395,034 15.2% DE 200,718 (5.2%) 2% LS 389,936 24.3% Grand Total 14,752,248 (1.6%) 0% Source: AACO, IATA Domestic -2% With Arab With With World With the -4% Australasia Europe With Mid Americas with Sub Asia -6% Sahran UK TRAFFIC Africa The UK air transport market expanded by 5.8% in July 2013 over July 2012 in May13-Jul13 terms of number of passengers traveling to, from and within the UK, and is Jun13-Aug13* expected to contract in August 2013 by (18.2%) compared to August 2012. Source: AACO, IATA *Estimated Monthly Passenger Numbers' Change in the UK Air Transport Market Sep 12 to Aug 13* compared to same month in previous year In July 2013, easyjet was the biggest carrier operating to, from and within the UK by number of passengers, boarding 3.61 million pax, which represented a growth of 3.9% over July 2012 operations. 10%

5% Top 15 Airlines Operating in the UK Market 0% Airline Jul-13 Growth Airline Jul-13 Growth -5% U2 3,610,967 3.9% LH 441,032 7.6%

-10% FR 3,210,363 7.0% KL 376,813 0.1% BA 2,673,444 10.1% EK 359,077 16.2% -15% ZB 709,703 14.7% W6 286,241 (5.0%) -20% LS 692,898 14.4% AF 258,147 14.6% BE 668,312 6.2% UA 250,103 21.6% EI 473,358 3.3% DY 240,217 56.1% International Domestic VS 467,799 3.6% Grand Total 18,034,968 5.8% Source: AACO, IATA *Estimated Source: AACO, IATA

Daily news on www.aaco.org Issue 79 - Oct. 2013 59 Partner Airlines

Jet Airways JetPrivilege to offer members enhanced retail experience with Louis Philippe: Jet Airways’ JetPrivilege has entered into a partnership with Louis Philippe, a retail brand established in the fashion apparel category for LATEST NEWS gentleman. With this partnership, JetPrivilege members will enjoy an exciting Jet Airways launches its mobile application for Android smartphones:Jet new opportunity to get rewarded with JPMiles in the ever expanding retail Airways announced the launch of its mobile application (app) designed exclu- category. sively for Android smartphones. The mobile application will allow the airline’s JetPrivilege members will be rewarded with 12 JPMiles for every INR 100 guests to conveniently book tickets, check flight status, manage their JetPrivi- spent on purchases made at exclusive Louis Philippe stores across India. lege account and enjoy special promotional offers, among a host of other fea- JetPrivilege members will experience Louis Philippe’s tradition of impeccable tures. gentlemen’s wear reflecting a distinctive lifestyle, at the latter’s outlets and The native mobile application is now available for free download from Google at the same time be rewarded with JPMiles. Thus, the airline’s much awarded Play. The Jet Airways mobile application leverages the Android platform’s in- JetPrivilege programme is able to offer unmatched opportunities for its mem- novative features and design, making it an extremely useful and easy- to -use bers with each new partnership. tool for travelers through every part of their journey. The application offers a convenient booking and secure payment process al- lowing credit card transactions accompanied by the ability to save and access booked itineraries. Other salient features include real time flight status check, with the option to search using flight number, airport or route, registration for receiving real time flight status notification, and the opportunity to avail special offers and news updates. Jet Airways guests can now book & pay for their JetEscapes holidays on je- tairways.com: Jet Airways has now introduced a convenient option for guests to book and pay for their favourite JetEscapes Holidays, on www.jetairways. com. Booking holidays through the online platform will provide guests with a com- plete and seamless travel experience. Jet Airways with a focus on providing exceptional value has crafted theme based holidays for its discerning guests. Guests can select their preferred holi- days from an array of popular themes like Beach, Pilgrim, Historical, Wildlife, Family and Corporate holidays. These attractive holidays include return air travel on Jet Airways, airport trans- fers, hotel stay with breakfast in budget to luxury hotels, sightseeing, travel insurance, besides offering guests the opportunity to earn 5 JP Miles for every INR 100 spent. Jet Airways’ JetEscapes introduces attractive holidays for travellers from Sri Lanka: Jet Airways has introduced a slew of attractive holidays under its JetEs- capes brand. Travelers from Sri Lanka can now enjoy convenient, all-inclusive holidays to popular destinations in India. JetEscapes holidays include return air travel in economy, airport transfers, 3 star hotel accommodation with break- fast and sightseeing. JetEscapes holidays are tailor made to offer flexible op- tions for travel and stay. Holidays can also be customized to include air travel on board Jet Airways’ Premiere (Business class) including accommodation at four or five star hotels.

Daily news on www.aaco.org Issue 79 - Oct. 2013 61 Partner Airlines

INDIA TRAFFIC In July 2013, Indigo Airlines was the biggest carrier operating to, from and The Indian air transport market grew by 3.1% in July 2013 over July 2012 in within India by number of passengers, boarding 1.43 million pax, which repre- terms of number of passengers traveling to, from and within India, and is ex- sented an increase 16.0% over July 2012 operations. pected to grow in August 2013 by 10.6% compared to August 2012.

Monthly Passenger Numbers' Change in the Indian Air Transport Market Top 15 Airlines Operating in the India Market Aug 12 to Jul 13* comapred to same month in previous year Airline Jul-13 Growth Airline Jul-13 Growth 6E 1,431,682 16.0% G9 139,395 11.0% 20% 9W 1,209,654 2.0% QR 138,187 (0.3%) 15% AI 1,035,487 3.3% SQ 126,308 11.8% 10% SG 840,438 2.5% WY 102,919 25.5% 5% EK 388,112 (6.1%) TG 96,810 (6.3%) 0% G8 358,273 22.6% LH 96,560 (6.8%) -5% S2 238,631 (21.4%) SV 95,912 12.0% -10% IX 226,327 28.8% Grand Total 7,647,216 3.1% -15% Source: AACO, IATA

International Domestic Source: AACO, IATA *Estimated Looking at the Indian market traffic flows, the domestic market represented in July 2013 55.7% of the total market, and is expected to grow to 59.2% in August 2013. Traffic between the Arab world and India represented 18.4% of the total Indian market in July 2013, and is expected to shrink to 17.9% of total traffic in August 2013. Passenger Numbers' Change in the Indian Air Transport Market May13-Jul13 & Jun13-Aug13* compared to same period in previous year 14% 12% 10% 8% 6% 4% 2% 0% Domestic -2% With Arab With World With -4% Australasia With the Europe Within Mid Americas with Sub -6% Asia Int'l Sahran Africa May13-Jul13 Jun13-Aug13*

Source: AACO, IATA *Estimated

Daily news on www.aaco.org Issue 79 - Oct. 2013 63 Partner Airlines

Turkish Airlines opens its “Lounge” for Business Class passengers, available after international arrivals in Istanbul: Turkish Airlines inaugurated its new “Istanbul Arrival Lounge” in a ceremony, designed to provide a space where in- bound guests may refresh themselves before exiting the Ataturk Airport. This is the most recent innovation directed at making Business Class travel on Turk- ish Airlines a uniquely pleasurable experience. LATEST NEWS The lounge, which is ​​250m2, has a capacity of 38 seats and provides a comfort- Turkish Airlines, Boeing and Istanbul Technical University (ITU) launch a new able ambience for passengers to relax and refresh after their flight. academic program in Air Transport Management: Turkish Airlines, Boeing The Lounge offers passengers shower facilities, areas for changing clothes and and Istanbul Technical University (ITU) announced a new academic program staff dedicated to ironing clothing items if desired. designed to equip Turkish Airlines’ executives of tomorrow with the necessary Also available are daily local and foreign newspapers and magazines, a full skills to lead the country’s rapidly developing aerospace industry, in a ceremo- wireless internet connection, media walls and charging points for passengers’ ny held in the Macka Campus of Istanbul Technical University (ITU). electronic devices. The new M.Sc. in Air Transport Management, the first of its kind in the region, is initially being offered to 35 executives at Turkish Airlines and will be hosted by ITU at its newly created Aviation Institute. The two-year course also has academic partnerships with Massachusetts Insti- tute of Technology, Cranfield University in the United Kingdom and the Univer- sity of British Columbia. Graduation projects will focus on solving real-life issues facing airline manag- ers. The course will cover the fundamentals of airline management, aviation eco- nomics, air law and compliance management, while students will chose elec- tive modules on topics such as airport planning and airline maintenance. Turkish Cargo opens a new storage area: Turkish Cargo added another com- ponent by inaugurating a new storage area in a ceremony held near the end of runway 06/24 at Ataturk International Airport. The newly built facility will play an important role in the growth of Turkish Airlines’ cargo operations. While operating to 239 destinations using the belly space of the airline’s pas- senger aircraft, Turkish Cargo also flies scheduled cargo flights to 47 destina- tions across the globe with its 10 dedicated cargo aircraft. In addition, Turkish Cargo provides onward land transportation to more than 1,000 off-network points. The technical features of the new storage area: • Total area: 70m X 150m = 10.500m² • Storage for 333 ULDs (Unit Load Devices) + 1000m² for handling mail • 700m² of cold weather storage space • 5 cold storage spaces; 2 providing 2C˚-8C˚, 2 providing 15C˚-25C˚, and one with adjustable temperature settings • A capacity for 56 ULDs (Unit Load Devices) in cold stores • All cold storage has independent power generation in case of blackouts, providing secure facilities even in abnormal situations.

Daily news on www.aaco.org Issue 79 - Oct. 2013 65 Partner Airlines

TURKEY TRAFFIC In July 2013, Turkish Airlines was the biggest carrier operating to, from and The Turkish air transport market in July 2013 grew by 6.6% over July 2012 in within Turkey by number of passengers, boarding 2.69 million pax, growing by terms of number of passengers traveling to, from and within Turkey, and is ex- 9.0% over July 2012. pected to grow in August 2013 by 14.4% compared to August 2012. Monthly Passenger Numbers' Change in the Turkish Air Transport Market Top 15 Airlines Operating in the Turkey Market Sep 12 to Aug 13* comapred to same month in previous year Airline Jul-13 Growth Airline Jul-13 Growth 80% TK 2,689,255 9.0% X3 87,888 -4.9%

60% PC 1,073,252 10.0% ZB 82,844 11.9%

40% XQ 234,155 -0.3% U2 78,152 7.7% 8Q 223,940 8.8% J2 51,682 8.3% 20% KK 199,029 12.4% SU 50,280 (22.8%) 0% AB 136,662 (0.7%) XG 49,927 (38.0%) -20% LH 106,815 -8.2% HV 41,001 0.9% DE 104,415 (2.9%) Grand Total 6,067,279 6.6% Source: AACO, IATA

International Domestic Source: AACO, IATA *Estimated Looking at the Turkish market traffic flows, The European market (internation- al traffic between Turkey and Europe) was the biggest market. It accounted for 47.2% of July 2013 traffic, and is expected to shrink to 39.6% in August 2013. The domestic market was the second biggest market, accounting for 36.8% of July 2013 traffic, and is expected to grow to 42.1% in August 2013. On the other hand, traffic between the Arab world and Turkey represented 5.9% of the total Turkish market in July 2013, and is expected to grow to 7.7% of total traffic in August 2013. Passenger Numbers' Change in the Turkish Air Transport Market May13-Jul13 & Jun13-Aug13* compared to same period in previous year 35% 30% 25% 20% 15% 10% 5% 0% Domestic -5% With Arab With World With Australasia With the Europe Int'l Americas With Mid Asia with Sub Sahran May13-Jul13 Africa Jun13-Aug13*

Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 79 - Oct. 2013 67 OUR INDUSTRY PARTNERS NEWS Our Partners News

A350 XWB joins the A330 and A380 for an Airbus “Xtra-widebody” family A major independent global study appeals to the airline industry to take flight: The Airbus widebody family of flight test aircraft, the A380, A330 and a fresh look at the age-old frustration of delayed or cancelled flights, in the all-new A350 XWB, took off from Toulouse flying together for the first order to drive loyalty and reduce the impact of irregular operations on its time before continuing on separate flight test missions. customers, both now and in the future. Airbus’ full range of modern, widebody aircraft - from the versatile A330, to the super-efficient A350 XWB ‘Passengers first: Re-thinking irregular operations’, written by Norm Rose of PhoCusWright, and commis- and the flagship A380 - not only cover all the requirements of airlines around the world whatever the sioned by Amadeus aims to provide airlines with practical strategies to improve responses to irregular range or payload capabilities, but also deliver the best economics today while providing highest environ- operations, urging airlines to place a greater focus on the impact of disruptions on each passenger’s trip mental standards and unmatched passenger comfort. experience as part of operational decision-making during times of disruption. Qatar Airways’ first A380 takes off for its maiden flight:Qatar Airways’ first A380 took off from Toulouse The report argues that a customer-centric approach to handling irregular operations may overcome some on its maiden flight to Hamburg where the aircraft will be fitted with its cabin before being painted. of the disparities between how airlines and passengers can sometimes perceive delays. For instance, The Doha based carrier has firm orders for ten A380s and will become the eleventh airline to join the providing greater alternative travel choices for travellers that take into account their individual reasons for prestigious club of A380 operators when it takes delivery of this aircraft in 2014. travelling, which in turn could positively affect future booking behaviour. At the same time, the processes Airbus announces lower weight A330 for regional & domestic operations:Airbus has announced a new used to manage delays and cancellations today, including scheduling, customer communications and re- lower weight variant of its versatile A330-300 wide-body aircraft that is optimised for use on domestic accommodation, often tend to be flight-centric, rather than customer-centric; something which the report and regional routes in high growth markets with large populations and concentrated traffic flows. China argues must change. The study, which is based on interviews with leading academics, industry trade orga- will be one of the most important markets for this new version of today’s world’s most efficient and reli- nizations and global airlines, also includes a survey of 2,800 travellers, showing that delayed or cancelled able widebody aircraft. flights meant that nearly 1/5 (18%) of all passengers surveyed could not fulfil the purpose of a trip booked Compared to current A330-300 variants that are adapted to longer-range missions of up to 6,100 nauti- in 2012 (rising to a 1/3 in China). Furthermore, among passengers’ most common frustrations was insuffi- cal miles (nm), the new A330-300 regional and domestic variant will be optimised to seat up to around cient communication, something which may impact a traveller’s loyalty to a particular airline in the future. 400 passengers in Airbus’ best in class 18 inches wide economy seat comfort on missions up to 3,000 nm Key findings from the report: and offer significant cost savings through a reduced operational weight of around 200 tonnes. The reduc- Deliver a standard service approach to disruptions:Airlines should consider incorporating a standard tion in fuel burn per seat and maintenance costs thanks to these innovations will result in an overall cost service approach to deal with passenger itinerary changes. When severe events occur, airlines with such reduction by up to 15% compared with the today’s long-range A330-300 variants. an approach in place merely extend their processes to a larger number of travellers rather than attempt to In addition, the new A330-300 variant will benefit from the latest A350 XWB and A380 technologies. implement a new, reactive process. Over 29,000 new aircraft required in the next 20 years:As aviation becomes increasingly accessible in Offer ‘intelligent re-accommodation’: Automated re-accommodation technology may provide efficien- all parts of the world, future Journeys will increasingly be made by air particularly to and from emerging cies for the operational staff, but it does not always solve the underlying passenger itinerary disruptions. markets. According to Airbus’ latest Global Market Forecast (GMF) in the next 20 years (2013-2032), air Airlines may want to implement an intelligent one-click solution that empowers passengers to choose al- traffic will grow at 4.7% annually requiring over 29,220 new passenger and freighter aircraft valued at ternatives most relevant to their needs. Airlines should also consider investing in systems to gain a greater nearly USD 4.4 trillion. Some 28,350 of these are passenger aircraft valued at USD 4.1 trillion. Of these, understanding of each passenger’s preferences and reasons for travelling, including passengers who book some 10,400 will replace existing aircraft with more efficient ones. With today’s fleet of 17,740 aircraft, it through indirect channels. means that by 2032, the worldwide fleet will double to nearly 36,560 aircraft. Provide transparent communication: In every market surveyed, except China, insufficient communication Economic growth, growing middle classes, affordability, ease of travel, urbanisation, tourism, and migra- was cited as passengers’ top frustration with irregular operations management. Introducing an integrated, tion are some factors increasing connectivity between people and regions and how often they travel. cross-departmental approach to customer service will enable airlines to provide authoritative, person- Increasing urbanisation will lead to a doubling of mega cities from 42 today to 89 by 2032, and 99% of the alised, proactive communication – and lessen the need for travellers to rely on third-party sources. world’s long-haul traffic will be between or through these. Traffic growth has led to average aircraft size Moderate delays hurt the industry more than big ticket disruption: One of the greatest challenges facing ‘growing’ by 25% with airlines selecting larger aircraft or up-sizing existing backlogs. Larger aircraft like airlines is not major weather or force majure events, such as the volcanic ash cloud that disrupted travel the A380 combined with higher load factors make the most efficient use of limited slots and contribute to across Europe in 2011, but rather the far more regular moderate delays of 1-4 hours that matter most to rising passenger numbers without additional flights as announced by London’s Heathrow Airport. A focus customers. on sustainable growth enabled fuel burn and noise reductions of at least 70% in the last 40 years and this Travellers are increasingly venting frustration via social media: Globally, around 1/3 of travellers sur- trend continues with innovations like the A320neo, the A320 Sharklet, the A380 and the A350 XWB. veyed said they had posted comments about delays to their friends on social networks such as Twitter and Lufthansa, Airbus’ biggest airline customer, commits to up to 55 A350s:The Supervisory board of Luf- Facebook, with higher numbers sharing experiences amongst their immediate family or friendship groups thansa, Airbus’ biggest airline customer and operator, has decided to expand and modernise its long- using other means. The study calls on airlines to shift social media strategies from promotional activities haul fleet with a commitment for up to 55 A350-900 aircraft (25 firm and 30 options). Lufthansa also has alone, and to embrace analytical tools that help them to understand the impact of social comments made the flexibility to convert some of the order to the larger A350-1000. This landmark A350 order comes just in relation to disruption. By following this analytical approach, airlines can practice social mapping to- bet six months after Lufthansa made the strategic decision to become an all-Airbus operator for its single- ter understand the impact of disruption on their brand as well as the sentiment of their customers. aisle fleet. To download the report please visit: www.amadeus.com/passengerfirst Airbus - AACO Partner since 1997 Amadeus - AACO Partner since 2000 Daily news on www.aaco.org Issue 79 - Oct. 2013 71 Our Partners News

ADNOC Dist. signs acquisition agreement of EMARAT: Abu Dhabi National Oil Company for Distribution “ADNOC Distribution” and Emirates General Petroleum Corporation “EMA- RAT” signed the acquisition agreement of acquiring the 75 service stations and Sharjah Terminal (Port Khalid) in the Northern Emirates, following the MoU signed earlier. Aon is the leading global provider of risk management, insurance and reinsurance brokerage, and human The acquisition agreement was signed by Mr. Abdullah Salem Al Dhaheri, CEO of ADNOC resources solutions and outsourcing services. Through our 61,000 colleagues worldwide, we empower Distribution, and Mr. Adel Khalifa Al Shaer, Acting General Manager of EMARAT, in the pres- results for clients in over 120 countries via innovative and effective risk and people solutions and through ence of Mr. Mohammad Obaid Al Dhaheri – Senior Vice President for Retail Group at ADNOC Distribu- industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s tion, Dr. Mohammad Abdullah Al Mansoori – Technical Advisor for Retail Group at ADNOC Distribution, best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee Mr. Khalid Mohammad Hadi – Vice President Marketing & Corporate Communications Division at ADNOC benefits consulting firm by multiple industry sources. Distribution, Dr. Rahma Al Shamsi - Retail Sales Manager at EMARAT, Mr. Hassan A Arab - Finance and Ac- counts Manager at EMARAT and other dignitaries from both parties. Aon’s aviation team creates effective risk management strategies for clients across the aviation indus- The agreement was signed to implement acquisition phases and transfer service stations and Sharjah try, blending global expertise with knowledge of how the industry operates locally. No two businesses Terminal to ADNOC Distribution and speed the operational process of achieving the common interests, are the same and we treat our clients as individuals. Rather than offering off-the-peg insurance and risk based on the initial stages of the project. management programmes, our specialists work across Aon’s divisions to ensure that our clients have The collaboration efforts between the parties will enable the gradual transfer of the 75 service stations the best available coverage for all of their needs. If you are an airport with ground vehicle exposure or and Sharjah Terminal to ADNOC Distribution network in the whole of the UAE during the next two years an airline with IT risks, our aviation team works with other Aon experts to ensure that you get insurance according to the plan. and risk management support that is precisely tailored to your requirements. Since the beginning of 2013, ADNOC Distribution started providing all the EMARAT service stations with petroleum products, supplied through Sharjah Terminal, in order to fulfill the needs of the service sta- We are at the forefront of development of insurance, utilising our vast experience and international in- tions and to ensure the operations continuity. surance market knowledge to draft, negotiate and implement the most comprehensive and appropriate ADNOC - AACO Partner since 2002 insurance programmes and risk management solutions that best suit our clients’ needs. Aon is the principal sponsor of Manchester United. Aon - AACO Partner since 2007 Air France Consulting, a wholly owned subsidiary of Air France is special- ARINC’s Airport Systems go-live at UAE’s Ras Al Khaimah International ized in air transport consulting, training, management and reengineering Airport: ARINC Incorporated has completed the implementation of sys- services. Air France Consulting calls on about 200 highly specialized international experts coming mostly tems at the RAK International Airport, part of the multi-million dollar deal signed a year ago. The systems from Air France and the SkyTeam Alliance who have built a field proven experience and whose compe- ‘Go live’ on 1 October. The 10-year contract signed on 30 Sept 2012 was to implement multiple airport tencies are recognized by the industry. systems at the UAE’s northern emirate airport. The project involved the design, supply and installation Acting independently with flexibility, Air France Consulting proposes a comprehensive approach on key of ARINC’s core suite of airport passenger processing solutions, as well as advanced airport operational domains of the air transport such as operations, finance and commercial, maintenance, etc... whether to systems, including a state-of-the-art vMUSE Common Use Passenger Processing Solution (CUPPS), Air- make you a diagnostic or audit, to set up new or improved processes driven by proven change manage- Vue Flight Information Display System (FIDS) and ARINC’s latest generation Airport Operational Database ment techniques or define a coaching and training program. Air France Consulting proposes a compre- (AODB) AirDB 7 system. By utilising Virtualisation technology, ARINC has delivered a robust and scalable hensive approach on how to optimize your processes and solve your concerns such as: platform which will enable RAK Airport to grow its passenger processing capability and introduce addi- • Safety and security of operations (EASA 145, M, 21, 147, IOSA, JAR Ops and FCL, SMS, ETOPS, tional leading edge technologies such as ARINC’s remote check-in and bag drop solutions. IOSA Assistance, TRTO, Airline operations organization…) London Heathrow iMUSE contract extended and expanded: London Heathrow (LHR) has renewed its • Drivers to reduce costs and increase revenues (Business Plan, Cost control, Network and Fleet, current contract for ARINC’s iMUSE common use system at Terminals 1 and 3 and awarded a new iMUSE Revenue Management Pricing, Customer Relationship Management, E-business solutions, Fuel contract for Terminal 2. The contract for Terminals 1 and 3 has been extended until March 2015 by the conservation Program, ETS, Procurement process…) LHR Airline Operators Committee (AOC). At the same time, an additional contract has been awarded • Fleet Asset Management (specification, acquisition, lease, sales) and Repair Overhaul activities to install iMUSE at Terminal 2, with new equipment to support 378 check-in desks and boarding gates. Management (MCC, line maintenance & operational regulatory support, maintenance IT support) ARINC will continue to provide ongoing maintenance and support for all equipment. • Human resources and risks prevention optimization (Human factors, Crew management, Staff ARINC awarded contract for DCNS portion of FAA’s NextGen Data Communications program: ARINC posting, Emergency response plan…) Incorporated announced that it has begun work on the Data Communications Network Services (DCNS) Air France Consulting shares the ambitions of its customers through customized solutions, thanks to a portion of the FAA’s Data Communications Integrated Services (DCIS) program as part of a seven-year, flexible structure ensuring responsiveness and close proximity. For more information, please contact us USD 150 million contract awarded last month to Harris Corporation. The commencement of the work rep- at: Telephone: +33 1 7425 4162, email: [email protected] resents a major milestone in the existing DCIS contract, which was awarded to Harris in September 2012. Air France Consulting - AACO Partner since 2008 ARINC- AACO Partner since 2002

Daily news on www.aaco.org Issue 79 - Oct. 2013 73 Our Partners News

Garuda, ATR and NAC sign agreement to introduce 35 ATR 72-600s in Indonesia: The European manufacturer of turboprop aircraft ATR, Garuda Indonesia and Nordic Aviation Capital (NAC) are pleased to announce an agreement for the introduction of 35 new ATR 72-600 aircraft into Garuda’s fleet. This new Bloomberg, the global business and financial information and news leader, gives decision makers a criti- deal for 35 ATRs, involving NAC as lessor for Garuda, includes orders for 25 firm aircraft and options for cal edge by connecting them to a dynamic network of information, people and ideas. further 10. The order, including the options, is valued at over USD 840 million. The arrival of these new ATR 72-600s will start in November 2013. The aircraft will be configured with 70 The company’s strength – delivering data, news and analytics through innovative technology, quickly seats, and will feature the “Armonia” cabin, giving the ATR ‘-600s’ the highest standards of comfort in a and accurately – is at the core of the Bloomberg Professional service, which provides real time financial regional aircraft. The aircraft will be used for the development of both tourism and business throughout information to more than 315,000 subscribers globally. Bloomberg Industries (BI) provides subscrib- the Indonesian archipelago as well as to feed Garuda Indonesia’s main hubs. ers interactive, continuously updated industry research and data. BI’s team of more than 100 research This agreement confirms ATR’s success in the countries of Southeast Asia, where since 2005 it has won a professionals covers over 100 industries globally, offering in-depth data and analysis for each industry’s large majority of contracts for regional aircraft below 90 seats, with orders for some 170 aircraft region- drivers, metrics, competitors, themes and earnings. The BI portal also aggregates information from more wide. ATR’s success in the region is particularly strong in the Indonesian market, for which it has received than 200 third-party providers. orders for over 85 firm aircraft since 2008, and where some one hundred ATRs will be in operation within the next two years. It clearly illustrates the strong domestic traffic development that Indonesia is living Regional Main Contact and the appropriate solution offered by ATR to fulfil this growth. Name: Mr. George T. Ferguson, IV, CFA This new deal for 35 ATR 72-600s also underlines NAC’s role as a key player in the regional aircraft leas- Position:Senior Analyst Aerospace/Defense & Airlines ing business. The Danish lessor is substantially building up its portfolio with modern ATR turboprops and Telephone: +1- 609.279.3591 recently placed a record order for 90 ATR -600s, at this year’s Paris Airshow. NAC is playing a major con- Email: [email protected] tribution in both developing and expanding regional aviation operations all over the world. In the near Website: www.bloomberg.com future, with the arrival of these new aircraft, NAC will manage a fleet of some 150 ATRs. Bloomberg - AACO Partner since 2013 ATR - AACO Partner since 1998

AWAS is dedicated to airlines serving the African continent and will be present at the AACO AGM, AFRAA AGM, AASA AGM as well as the Middle East & Africa Air- finance conference. We look forward to meeting all industry representatives and discussing how we can best serve their unique markets and business models. BOC Aviation places six A321 aircraft with Eva Airways, first from new Airbus order: BOC Aviation is pleased to announce the placement of six Airbus A321 aircraft with EVA Airways Corp. (EVA) for delivery AWAS delivers first new A320 passenger aircraft on lease to new customer Vietjet:AWAS announced between March and August 2015. that it has delivered on lease to Vietjet, the first of three new A320 aircraft from its new order pipeline. EVA Air has signed the leases as it renews its narrow-body fleet to expand its regional routes. The aircraft will be equipped with CFM engines. AWAS agrees to lease an additional two new A320s to Aeroflot:AWAS announced that it has agreed BOC Aviation has a firm order of 75 A320 family aircraft for delivery from 2015 to 2019. The order com- to place an additional two new A320 aircraft with Aeroflot in Russia. These will be the 7th and 8th A320s prises 35 A320 aircraft and 40 A321 aircraft. that the lessor will have on lease to Aeroflot overall. The aircraft will come from AWAS’ existing new BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 229 owned and man- order pipeline. These new aircraft will be delivered to the airline in the first half of 2014. aged aircraft operated by airlines worldwide and another 108 aircraft on firm order. The Company has one of the youngest fleets in the industry with an average owned aircraft age of less than four years. AWAS delivers fourth new 737-800 passenger aircraft to Solaseed Air:AWAS announced that it has BOC Aviation, 100% owned by Bank of China, will be celebrating its 20th anniversary this year. delivered a fourth new Boeing 737-800 passenger aircraft from its new order pipeline to Solaseed Air in Japan. AWAS was the first lessor to work with Solaseed and helped to develop a fleet solution to enable BOC Aviation - AACO Partner since 2003 the airline to move into new generation 737-800s.

AWAS delivers fourth new A320 to Starflyer in Japan:AWAS announced that it has delivered a fourth new Airbus A320 passenger aircraft to Starflyer in Japan. This aircraft is from AWAS’ existing new order pipeline and is factory-fitted with advanced fuel saving Sharklets on its wingtips. Starflyer will deploy this A320 on a new route for the airline: Fukuoka to Kansai. AWAS - AACO Partner since 2013

Daily news on www.aaco.org Issue 79 - Oct. 2013 75 Our Partners News

Boeing flies first 787-9 Dreamliner:The Boeing 787-9 Dreamliner took to CFM launches a new era as first LEAP engine begins ground testing:CFM International has the skies for the first time, beginning a comprehensive flight-test program initiated testing of the first full LEAP engine, launching an extensive ground and flight test leading to certification and delivery in mid-2014. certification program that will encompass 60 engine builds over the next three years. The With its distinctive new Boeing livery, the newest member of the efficient 787 family completed a program will culminate in engine certification in 2015 and first entry into commercial- ser 5-hour, 16-minute flight from Paine Field in Everett to Seattle’s Boeing Field. vice on the Airbus A320neo in 2016. The LEAP-1A engine, which is the powerplant for the Powered by two Rolls-Royce Trent 1000 engines, the first 787-9 will be joined in flight test by two addi- Airbus A320neo, fired for the first time on Septemberth 4 , two days ahead of the schedule. After a series tional airplanes, one of which will feature General Electric GEnx engines. Those airplanes are in the final of break-in runs, the engine was operating smoothly and has reached full take-off thrust. stages of assembly in Boeing’s Everett factory. The engine, which shares common turbomachinery with the LEAP-1C, is installed at Site 3B at GE’s Pee- Boeing delivers first Next-Generation 737-900ER to Delta Air Lines: Boeing and Delta Air Lines celebrat- bles, Ohio, outdoor test facility, where it will be on test for the next several weeks. The overall certifica- ed the delivery of the carrier’s first Next-Generation 737-900ER (Extended Range). The delivery is part of tion program, which encompasses all three LEAP engine variants, includes 28 ground and CFM flight test Delta’s 100-airplane order placed in 2011 to renew its single-aisle fleet with more fuel-efficient airplanes. engines, along with a total of 32 flight test engines for Airbus, Boeing, and COMAC. Over the next three Boeing, WestJet announce order for 65 737 MAX airplanes: Boeing and WestJet announced that they years, these engines will accumulate approximately 40,000 cycles leading up to entry into service. have completed an order for 65 737 MAX airplanes, fulfilling the carrier’s letter of intent to purchase the The foundation of the LEAP engine is heavily rooted in advanced aerodynamics, environmental, and ma- airplanes announced on 29 August. The order, valued at USD 6.3 billion at list prices, consists of 40 737 terials technology development programs. It will provide 15% better fuel consumption and an equivalent MAX 8s and 25 737 MAX 7s. reduction in CO2 emissions compared to today’s best CFM engine. Boeing recognized for leadership in climate change disclosure: Boeing has been named one of the CFM expands TRUEngineTM Program, launching TRUEngine LLP Designation:CFM International is ex- world’s leading companies in taking actions to improve environmental performance and reporting panding the TRUEngine program by launching the new TRUEngine LLP designation, designed to offer the climate-change strategy by the CDP, formally known as the Carbon Disclosure Project. industry an easy means of evaluating the operating history of used, life-limited parts (LLP). Boeing launches new maintenance Apps for iPad: Boeing has made performing routine maintenance To earn the TRUEngine LLP designation, which is currently being offered for the CFM56-5B and CFM56- and diagnosing aircraft issues faster and easier for airline technicians with a suite of new mobile appli- 7B engine models, life-limited parts are subjected to a rigorous records audit and engineering review/ cations for iPad. With the apps, technicians will have immediate access to manuals, part numbers and analysis to evaluate their configuration and maintenance history relative to airworthiness limitations other critical information to resolve maintenance issues plane-side and collaborate with co-workers substantiated by CFM and documented in the engine manual. LLP will be qualified at the part level and located elsewhere. Boeing- AACO Partner since 1998 at a specific time-since-new and cycles-since-new. CFM - AACO Partner since 1998 Engine Lease Finance Corporation (ELFC) extended its position as the world’s largest independent aero-engine lessor in 2012 with another record year of spare engine portfolio growth. We maintained keen focus on spare engine support for our numerous customers in the MENA region with further growth in short and long term engine lease support to airline members of AACO.

CHAMP Cargosystems provides the most comprehensive range of integrated, IT solutions and distribu- We are very proud to play a support role in 2013 in the success of MENA airlines, large and small and will tion services for the air cargo transport chain. The portfolio spans core management systems, messaging continue to offer our products during the coming year: services, and eCargo solutions. These include applications to meet customs and security requirements, quality optimization, as well as e-freight and mobility needs. The products and services are renowned • Shop Visit Cover – leasing of our spare engines into airlines to cover short term scheduled under the Cargospot and Traxon brands. and unscheduled engine removals; • Long term Engine provision – leasing our engines over several years to provide our airline The company serves over 100 airlines and GSAs, and links these with some 3,000 forwarders and GHAs customers with cost efficient operation of spare engines, removing the capital intensive demand of worldwide. CHAMP’s solutions help its customers, and their clients, adapt to critical and continuous spare engine acquisition; changes in air transport logistics to meet global trade demands. • Purchase-leaseback of engines owned by airlines. With the backing of our parent com- pany Bank of Tokyo-Mitsubishi UFJ. Ltd. we have the financial resources required to provide clear CHAMP Cargosystems is headquartered in Luxembourg and operates offices in London, Zurich, Frankfurt financial and operational benefits for our customers. / Main, Atlanta, Manila, and Singapore. We have a wealth of experience to share – without obligation. For further information see: www.champ.aero For more information, please contact Senior Vice President Julian Jordan at e-mail: [email protected] CHAMP Cargosystems – Connected thinking for the air cargo community. ELFC- AACO Partner since 2003 CHAMP - AACO Partner since 2010 Daily news on www.aaco.org Issue 79 - Oct. 2013 77 Our Partners News

GECAS finalizes order for 10 Boeing 787-10 Dreamliners:GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric, and Boeing announced that they have IAS commences Saudia Project on 23 September: From 23 September to 8 October, IAS is welcoming its completed an order for 10 787-10 Dreamliners. The order completes the commitment originally an- second group of future managers from Saudia, for the first training session of the Aviation Management nounced during the 2013 Paris Air Show in June and builds momentum in the airplane leasing market for Professional Diploma, taking place in Toulouse, and Paris. the 787-10. The GECAS deliveries begin in 2019. The new 787-10, launched in June 2013, will extend and complement the family, carrying 300 to 330 IAS - AACO Partner since 2008 passengers up to 7,000 nautical miles (12,964 km) and accommodating more than 90% of the world’s twin-aisle routes. The 787-10 also will be 25% more fuel efficient than airplanes of its size today and more than 10% better than anything being offered by the competition for the future. The 787-10 will feature the 787 family’s unique interior. The interior technologies make the passenger experience more enjoyable, including large, dimmable windows; cleaner air; higher humidity; lower cabin altitude; bigger stowage bins; soothing LED lighting and a smoother ride. The 787-10 has 102 -or ders and commitments from five customers. These 787-10s bring the total number of airplanes GECAS has ordered from Boeing to 598 since 1995, including 737s, 747s, 757s, 767s and 777s. To date, GECAS has taken delivery of 444 of the airplanes. GECAS - AACO Partner since 2003

New Jeppesen Mobile FliteDeck functionality streamlines flight preparation and execution capabilities:Jeppesen, a part of Boeing Digital Aviation, recently introduced version GlobalCollect continues its expansion within the Asia-Pacific region: GlobalCollect announced the fur- 2.1 of Jeppesen Mobile FliteDeck for iPad and iPad mini. The new version of Jeppesen Mobile FliteDeck ther expansion of its operations in the Asia-Pacific region with the opening of offices in both Japan and is now available and provides additional capabilities to further enhance pilot situational awareness and Australia. Earlier in 2013, GlobalCollect opened offices in Shanghai and Beijing having had its Asia-Pacific optimizes user interaction. regional headquarters in Singapore since 2008. New Mobile FliteDeck capabilities include the display of own-ship positioning on geo-referenced termi- This expansion will better enable GlobalCollect to deliver its payments knowledge across a region which nal procedures and an integrated distance measuring tool that minimizes the need for pilot interaction is experiencing the most growth in online commerce. with the app. Mobile FliteDeck also introduces automatic display of airport taxi diagrams based on user- Key regional trends and drivers include: configured speed settings. This switch to airport diagram display can occur directly from a STAR proce- Japan: dure or the enroute map to better support a variety of flying needs and requirements. • The e-commerce market in Japan is expected to grow from USD 128 billion in 2012 to USD 182 bil- Additional new capabilities of Mobile FliteDeck include an enhanced ability to preview and select charts lion by 2016. as well as a two finger swipe function to navigate between selected charts. NEXRAD weather data, a cus- • In 2012, m-commerce accounted for almost 25% of online revenues in Japan. Increasing penetra- tom keyboard that supports Mobile FliteDeck’s innovative night theme, multiple alternate options and tion of m-commerce is set to drive growth in overall e-commerce revenues during 2012-16. the ability to save flights are part of the significant enhancements now offered through the app. Australia: Jeppesen introduces CrewAlert Pro for iPad to manage fatigue risk for airline crew:Jeppesen intro- • The m-commerce market in Australia has grown from USD 155 million in 2010 to USD 5.6 billion in duced CrewAlert Pro, a new iPad app designed to assist airline crew with preventing and mitigating fa- 2012 and this is expected to grow further with anticipated increases in smartphone penetration. tigue. Now available for both iPad and iPhone, CrewAlert Pro helps airline crew and safety professionals • In 2012, e-commerce constituted 6.3% of total retail sales in Australia, up from 5.5% in 2011. comply with International Civil Aviation Organization (ICAO) fatigue risk management guidelines. The respective offices will be headed-up by experienced payment professionals. Jeppesen to provide Air Malta with Electronic Flight Bag and Charting Services through new agree- ment: Jeppesen and Air Malta recently agreed to a three-year charting, NavData and electronic flight bag GlobalCollect - AACO Partner since 2007 (EFB) service contract. A long-standing Jeppesen customer, Air Malta will integrate Jeppesen FliteDeck Pro on iPad to streamline access to essential flight information and Jeppesen’s navigation data. Jeppesen - AACO Partner since 2008 Daily news on www.aaco.org Issue 79 - Oct. 2013 79 Our Partners News

Kennedys to merge with Simpson & Marwick: We are very pleased to announce First aid training for crew : MedAire has assisted airlines with more than 200,000 that Kennedys is merging with leading Scottish law firm Simpson & Marwick. The in-flight medical events. We know what happens in flight and harness that informa- merger is expected to go live on 1 November 2013. tion to better equip your crew. When your airline’s training department partners The combined firm will be known as Kennedys, although Simpson and Marwick with MedAire for first aid training, your crew will gain the confidence to effectively manage in-flight will be known as Kennedys Simpson and Marwick in Scotland for a period after the merger. The residen- medical events. tial property business will continue to trade under the name Simpson & Marwick which is a well estab- MedAire instructors are based around the world to bring relevant experience to the courses and are lished brand in the property market in Scotland. medically qualified professionals. The First Aid Training curriculum is engaging, uses real world scenarios, Both firms are leaders in the insurance and claims sectors, as well as in employment law. In Scotland, and is designed to easily integrate into an airline’s approved courses and Advanced Qualification Pro- Simpson & Marwick are also leaders in residential property and family law. grams. Hands-on exercises and easy-to-remember curriculum are hallmarks of the course. Both firms have experienced significant growth over the past five years and the merger gives clients ac- Each student in MedAire’s course receives a personal copy of First Aid for In-Flight Emergencies Instruc- cess to greater resources and services across the whole of the UK, Ireland, and via a significant network tor Manual, in addition to a copy of MedAire’s Manual of In-Flight Medical Care, an invaluable reference of international offices. resource post-course. The manual even includes a glossary of common medical concerns translated in 9 The merger will take the combined number of partners in both firms to 220 and the total number of staff languages. The manual is provided in both hardcopy and as an eBook. to over 1500 worldwide. Combined projected turnover is predicted to exceed £160 million in the current Designed and Developed by Aviation Medical Professionals: Manage in-flight illness and injury; Support financial year. crew resource management; Instill crew confidence; Increase safety & lower risk Flexible Training Solutions: Initial and recurrent training; Train-the-trainer solutions; Crew-direct train- Kennedys strengthens Latin America presence with Colombian association: Kennedys has increased its ing; Computer-based training; Global instructors and facilities worldwide; Training courses are 1 – 5 days reach into Latin America by forming an association with Bogota-based insurance law boutique Botero based on client needs and scope of service Salazar Tobón & Abogados (BST). MedAire’s aviation industry experts have worked within the world’s leading airlines in regulatory compli- The association furthers our international strategy of helping clients develop in jurisdictions with high ance, crew training, policies and procedures, and in-house medical departments. growth potential. Colombia has an expanding insurance market, with a significant number of interna- MedAire has assisted carriers since 1985. Today, more than 120 airlines worldwide rely on MedAire for tional reinsurers having established a local presence in Colombia over the past three years. medical advice, training, and medical kits and equipment. Kennedys - AACO Partner since 2011 MedAire - AACO Partner since 2008 Airport holding strategy for 11 airports in Kazakhstan: Lufthansa Consulting is expanding its engagement in Kazakhstan with a fur- ther assignment. The aviation consultancy has been commissioned by the Railway Company of Kazakhstan: Kazakhstan Temir Zholy (KTZh) to develop an airport holding strategy for 11 state airports. The aim is to successfully develop and coordinate the country’s airport op- mercator’s Avantik fuels Jet Asia’s expansion plans:mercator Asia will now be providing its passenger erations in line with international safety standards as well as international best practice commercial and services system Avantik to Jet Asia Airways. Based out of the Thai capital’s Suvarnabhumi International operational management. To achieve this, the current local and regional governmental ownership will be Airport, Jet Asia Airways specialises in scheduled and charter flights to Japan, South Korea and China. transferred and the airports’ management and services consolidated in a new multimodal management Moving away from the traditional charter model with the introduction of scheduled services, Jet Asia company under the roof of KTZh. The 11 airports comprise the capital airport in Astana as well as larger is outgrowing its current passenger services system and opting for a more flexible, web-based booking and smaller regional airports in Aktobe, Atyrau, Kokshetau, Kostanay, Kyzylorda, Pavlodar, Petropavlovsk, engine, with access to numerous sales distribution channels. Semipalatinsk, Shymkent and Ust-Kamenogorsk. Lufthansa Consulting will define the optimal operating mercator Asia, which is based in Bangkok, will assist Jet Asia with its sales and distribution channels, en- model for the airport holding and develop its overall strategy. The aviation experts will draw on their abling its customers to save time and book online. Flexible technology will not only support the airline in broad experience in all areas required for this project. They have proven expertise in assisting airports its existing daily operations, such as customer check-in and departure control, but also its future opera- and airlines in Russia/CIS and world-wide in the fields of strategy, traffic forecast and master planning as tions as it seeks to expand its network. well as route network, fleet planning and airport privatization processes. Lufthansa Consulting has started the project with the technical and market analysis consisting of a status- mercator - AACO Partner since 2003 quo assessment in all relevant fields for each airport as well as a traffic forecast that defines the strategic market segment and traffic potential per airport until 2030. In the current phase, the aviation experts are evaluating the individual airports’ optimal strategic positioning and developing the overall strategy for the holding and the airport network. In accordance with the infrastructure and equipment requirements identified in the first two phases, Lufthansa Consulting will derive the necessary investment program. Finally, the consultancy will create the organizational structure for the new management company. The project started in July and is scheduled for approximately four months. Lufthansa Consulting - AACO Partner since 2010 Daily news on www.aaco.org Issue 79 - Oct. 2013 81 Our Partners News

MTU Maintenance and Sumitomo Corporation combine competence in en- gine lease business: MTU Maintenance and Japan-based Sumitomo Corpora- tion have created two new joint venture companies to jointly expand their busi- ness with the leasing of commercial aircraft engines. MTU Maintenance Lease Optiontown is the pioneer in the world of ‘Dynamic Travel Options’. Our technology developed follow- Services B.V., an 80:20 joint venture between MTU Maintenance and Sumitomo Corporation, is based in ing extensive research at the Center of Transportation Studies at the MIT in Boston, Optiontown gives Amsterdam, The Netherlands and will provide airlines, MROs and lessors with short- and medium-term airlines a ground-breaking platform to use patented post-ticket-purchase algorithms based on the prin- lease solutions. Sumisho Aero Engine Lease B.V., a 90:10 joint venture between Sumitomo Corporation ciples of ‘Concurrent Optimization’. and MTU Aero Engines, the parent company of MTU Maintenance and Germany’s leading engine manu- Without cash investment for the carrier or complex and lengthy IT integration, airlines can generate facturer, will focus on long-term lease solutions for its customers. The company is also based in Amster- between 3 and 7% incremental revenues from its core business – the airline seat - while enhancing util- dam. The joint ventures are still subject to the approval of the applicable competition authorities. ity for their customers by creating a unique travel experience of increased comfort and convenience at As part of their cooperation, MTU Maintenance will provide Sumitomo with technical assistance and affordable prices – fulfilling the consumers’ unmet desires. extensive MRO know-how, especially on engine programs that are part of MTU’s portfolio. These include The Optiontown product portfolio includes Upgrade Travel Option (UTo), Flexibility Reward Option (FRO), the CFM56, the V2500, the GE90, the CF34, the CF6, and the PW2000 as well as future engine programs. Empty Seat Option (ESO) etc. and is based on patented algorithms using the latest concepts of artificial In turn, Sumitomo’s involvement as risk and revenue partner allows MTU Maintenance to optimize its intelligence. These options on ancillary services are available to the passengers after purchasing a ticket lease business and to gain access to new finance solutions as well as to expand its worldwide sales chan- from the airline or a travel agent. nels. World-class international airline clients use the Optiontown suite of algorithms to enable interaction MTU Maintenance’s lease portfolio currently generates annual revenues of more than 30 million US dol- with their passengers. Optiontown is head-quartered in Boston, Massachusetts and operates branches in lars. For MTU Maintenance Lease Services B.V., annual revenues are expected to grow to well above100 Canada, India and Europe. million US dollars in mid term. With the new joint venture structure, additional engines, including the Optiontown - AACO Partner since 2011 GE90, will be added, allowing MTU Maintenance to increase its foothold in the engine lease business significantly. MTU - AACO Partner since 2013

OnAir launches OnAir Play: OnAir Play is set to revolutionize the way airline Quali-audit is an independent Audit Organization (AO) accredited by IATA to passengers spend their time onboard by combining conduct IOSA annd ISAGO audits. As Endorsed Training Organization (ETO), inflight connectivity with films, TV, live news, music, Quali¬audit provides IOSA auditorr training for operators. games, magazines and newspapers. Passengers will Conducting IOSA audits since 2006, and also with a large range of operational as- now have access to a full range of content including live news and sport, sistance and training for operators, our experts have worked in the continuity of the IOSA program. Our updated throughout the flight and can buy destination-based goods and team now counts more than 56 auditors. For thee first semester, Quali-audit realized thirty IOSA audits, services to ease their arrival. Passengers simply need to connect to the Wi- near than ten trainings and safety evaluation for operators in different regions. Fi hotspot to enjoy a wide range of entertainment features. The passenger The IOSA program is now moving to a next level that will result in an even more effective evaluatioon interface, which is fully customizable, is highly intuitive and is compatible of operational safety and security practices, and add value to the IOSA experience for member airlines. with all device types, regardless of brand, screen size and operating system. In the transition, thee project is called Enhanced IOSA. Enhanced IOSA audit started this year with ten OnAir’s onboard GSM and Wi-Fi networks mean passengers can tweet, volunteer operators. Quali-audit will conduct two Enhanced IOSA audits near Air Moldova and Air India. email, send text messages, browse the Internet and make calls. Quali-audit was selected to perform the IOSA audit of Middle East Airlines and Yemenia Airways, mem- OnAir Play gives airlines the freedom to provide extensive inflight entertain- bers of the AACO. ment (IFE) content directly to passengers’ own personal electronic devices Our next training session in Paris CDG: through the onboard wireless network. Importantly, IFE is now a viable option for short-haul and region- ͳ Quality Auditor Training session was held from 24th to 27th of September 20013 and from 26th to al operators, with a passenger service differentiation and revenue generating opportunities, such as the 29th of November 2013. sale of content and advertising opportunities. Airlines opting to offer OnAir Play have the option to con- ͳ IOSA Auditor Training (IAAT) session was held from 30th of September to 4th of October 2013 and tinue working with existing content providers, or work with OnAir to create content integrated packages. from 2nd to 6th of December 2013. Etihad Airways launches first full OnAir connectivity on A320s:Etihad Airways has become the first air- ͳ Operational Management Training will be held from 18th to 22th of November 2013. line to offer both inflight Wi-Fi and GSM on its Airbus A320 aircraft. The first aircraft, equipped with the Upon request, trainings can be realized on the operators’ premises. combined Mobile OnAir and Internet OnAir services, was delivered to the airline in August 2013. For any queries concerning Quali-audit, please contact our Business Manager, Mr. Joris DUTHEIL, E-mail: Saudia’s new B777s enter service with full connectivity: Mobile OnAir and Internet OnAir went into [email protected] , Tel: +33(0)1 74 25 41 88, Mob: +33(0)6 62 15 87 13 commercial service on new B777-300ER aircraft. OnAir - AACO Partner since 2009 Quali-audit - AACO Partner since 2008 Daily news on www.aaco.org Issue 79 - Oct. 2013 83 Our Partners News

Sabre joins A Fair Tax on Flying’s APD campaign: Sabre has announced its support for A Fair Tax on Fly- ing’s campaign calling for reform of the UK’s Air Passenger Duty (APD). It is the first technology company to officially join the movement.

Ms. Elisabeth Martins, Sabre’s commercial director for the UK & Ireland, said: “The constant rises in this stealth tax are harming airlines, leisure and business travelers, and the UK economy as a whole. The Sabre Holdings announces Larry Kellner as new Chairman of the Board: Sabre Holdings announced on 4 exorbitant levels of APD – higher here than in any other country in the world – are making the UK un- September that Larry Kellner will join the company as non-executive Chairman of the board of directors. competitive, and have created a barrier for businesses that rely on international travel to conduct their Kellner joins the Sabre board following a successful 14-year career at Continental Airlines, where he affairs. The current system must be reformed if businesses are to be allowed to grow and expand in the served initially as Chief Financial Officer, then President, Chief Operating Officer, and finally Chairman current challenging economic climate. and CEO before retiring in 2009. He is currently the President of Emerald Creek Group and serves on the boards of The Boeing Company, The Chubb Corporation and Marriott International. Sabre has joined the campaign following the news that more than 450 British business leaders have Kellner succeeds Sam Gilliland, who was previous Chairman and CEO of Sabre. Gilliland will remain on signed a petition calling for a review of the current system of APD. Businesses can support the campaign Sabre’s board of directors. by visiting www.afairtaxonflying.org/business.

Mr. Mark Tanzer, Chief Executive of ABTA – The Travel Association, said: “It’s great that Sabre has joined GOL Linhas Aéreas upgrades to Sabre technology to expand competitive network:GOL Linhas Aéreas the growing number of companies that support A Fair Tax on Flying’s campaign. Sabre’s support is a re- Inteligentes, the largest low-cost airline in Latin America, has selected Sabre’s market intelligence solu- flection of the importance of this campaign for all business sectors. This tax isn’t just damaging to those tion to leverage up-to-date global passenger traffic data from more than 40 industry sources and across directly involved in aviation, it has a domino effect on any business that supports the sector or that relies air travel merchandising channels. on connectivity. It is vital that other companies and organisations affected by this unfair tax join the campaign and call on the Government to reform the current system, which is stunting the UK’s economic The technology agreement means the airline will have a holistic understanding of passenger demand growth and recovery.” data to help drive more revenue, including the personalization of the experience for frequent flyers and corporate travelers while creating business opportunities in their busiest routes. Sabre - AACO Partner since 2002

Mr. Claudio Neves Borges, Director Schedule Planning in GOL, said: “We are confident that Sabre AirVi- sion Market Intelligence is the most comprehensive in-market solution delivering precise competitive landscape, with passenger traffic, airline schedule and fare information. Having this data delivered with high accuracy will be critical to the success of our commercial planning, and will enable us to efficiently respond to market dynamics both tactically and strategically.”

Mr. John Elieson, General Manager for Sabre Airline Solutions in Latin America, said: “We are pleased to extend our long term IT relationship with GOL and continue to help them increase revenue and opera- tional efficiency. Our investment in airline technology allows us to provide them with a cutting-edge solu- tion that expands business intelligence to the next level, so they can make expert decisions in network planning and efficiently serve their highest yield customers.”

Through the Sabre AirVision Market Intelligence implementation the airline will have a consolidated and up-to-date picture of all global markets for analysis. The information is comprised of a robust combina- tion of historical flights and booking data to determine new markets and drive more revenue, identify actual market share and analyze competitors’ performance.

Sabre’s market intelligence information is made available by gathering data from the major global distri- bution systems (GDS) for suppliers merchandising, in addition to 45 proprietary data sources.

Daily news on www.aaco.org Issue 79 - Oct. 2013 85 Our Partners News

Silverpop is the only digital marketing technology provider that unifies marketing automation, email, mobile, and social. Our customers achieve superior Return on Relationship, by uniquely engaging each individual based Seabury is a global advisory group providing consulting, human capital, banking, restructuring, and IT on their behaviours. By utilising Silverpop’s complete digital marketing plat- support, primarily to airlines. Seabury staff includes consultants and investment bankers as well as expe- form, easily achieve success-enabling you to automate personalised experiences for passengers, increase rienced former industry executives and technical experts. Seabury’s primary regional offices are located revenue, improve ROI, and deepen your brand loyalty. Trusted by more than 5,000 brands around the in New York, London and Hong Kong. globe, we offer a world-class services team, 24/7 customer support, and a network of partners. With Sil- verpop, every client gets the right mix of solutions for their specific digital marketing needs. Silverpop has With more than 150 professionals across Consulting and Banking, Seabury has served over 75 airline many Global Airline clients, successfully helping them to deliver personalised communications, enhancing clients through nearly 300 projects over the last five years. Our unique team structure sets us apart from the passenger experience. other advisors. We integrate the analytics of top-tier strategy consultants, the functional depth of tech- Why Silverpop? When searching for a provider, you want to find a vendor who has tools designed to help nical experts, the financial acumen of top bankers and the experience of former senior executives. As a integrate multiple channels—email, mobile, social and local. But you also want a vendor that makes it result we hit the ground running and inspire trust in our clients by demonstrating expertise and under- easy to capture contact behaviour, and then translate this insight into revenue. Ultimately, showing which standing from the first day. campaigns or pieces of content were most effective in motivating passengers to take action. With Silver- pop, you can become more automated, strategic and social all whilst collecting and acting on comprehen- Seabury works with airlines to create enormous value: either on increasing revenue or reducing costs. sive behavioural data, as well as traditional demographics to take your personalisation to the next level. Our current and past clients will testify to the impact we have made to their results: working closely and Although our roots are in email marketing, our vision has evolved. We have expanded our focus on tools cooperatively with an airlines’ senior teams. and techniques that easily capture personalised customer behaviour, and leverage automation-driving higher conversion rates and relevant customer communications. Silverpop continues to combine the best Seabury - AACO Partner since 2008 features of email marketing and marketing automation. We provide our customers with industry thought leadership, a world-class partner network, 24/7 support and the services they need to take their campaigns to the next level. SILVERPOP - AACO Partner since 2013 Shell Aviation supplies high quality products and services to the Passengers say ‘Yes’ to technology but mobile usage still low:More than aviation industry worldwide. Every day, at over 800 airports across 90% of airline passengers say technology helps them when travelling but us- some 40 countries, Shell Aviation provides fuel for around 7,000 ing a smartphone for travel services has yet to go main stream. This is despite aircraft, refuelling a plane every 12 seconds. Our customers range from the private pilot to the largest the finding that three quarters of passengers carry a smartphone according global airlines. to results of the 2013 SITA/Air Transport World Passenger IT Trends Survey. The survey conducted at six Since the birth of modern aviation, Shell has been committed to providing performance enhancing leading airports around the world paints a picture of tech-savvy passengers who are equipped to use the fuels and lubricants to the aviation community. In July 2009, Shell celebrated 100 years of innovation, latest mobile travel services but are cautious about doing so. At 76%, the proportion of passengers carry- based on Louis Blériot’s flight crossing the English Channel in 1909 using Shell fuel. Since this time, Shell ing smartphones outstrips the global average of 40% in the general population. Even though passengers has played a crucial part in almost every landmark event for aviation. Shell was involved in yet another are carrying smartphones and say that they would use mobile services the majority has yet to make the aviation first in October 2009 when a Qatar Airways aircraft travelling from London to Doha completed transition. Despite the increase in recent years, actual rates of usage of these services, such as check-in the world’s first commercial passenger flight powered by a fuel from natural gas. Shell developed and and booking, remain below 5%. The majority of passengers - 78% - cite usability concerns and limitations produced the 50-50 blend of synthetic Gas to Liquids (GTL) kerosene and conventional oil-based kero- of the device as a possible reason for not using mobile for travel. In 2013’s survey, 69% of respondents sene fuel. Over the last couple of years, Shell has been working with Airbus, Qatar Airways, Qatar Fuel booked their travel through a website and 20% used a kiosk for check-in on the day of travel. These fig- Company, Qatar Petroleum, Qatar Science & Technology Park and Rolls-Royce to research the benefits of ures are in line with the levels seen in 2012’s survey, suggesting the first wave of self-service technology is using GTL Jet Fuel. Shell Aviation is focused on providing the aviation industry with a comprehensive and a firmly established part of the travel experience. The next wave will be the widespread adoption of mo- reliable supply network and the best possible customer service. In 2010, Shell Aviation signed several bile services. To persuade people to change their travel habits these will need to deliver additional value concession agreements to operate as a fuel supplier in more airports around the world. In 2011, Shell over existing technology choices. Passengers have said that information services are what they want most launched its new marketing joint venture (MJV) with Topaz, for the sale of aviation fuel in Ireland. on their mobiles – with 63% saying they would definitely use their mobile for flight search and 58% for Shell Aviation has received the Armbrust Award for Top Aviation Refueler Worldwide consistently over flight status. This compares with 29% who would definitely want to receive promotions on their mobile the past decade. We have been named the Best Aviation Fuel Provider at the Emerging Markets Aviation and 37% who would buy tickets. The unique capabilities of smartphone technology, such as localization Awards (EMAA) for two consecutive years (2010, 2011).Powered by its distinctive heritage in the indus- and personalization, provide the ability to offer a seamless travel experience to passengers. Both airlines try, Shell Aviation will continue with the same determination, ingenuity and vigour that have made it a and airports have the opportunity to provide much more personalized and intuitive services – at the right world leader. Shell Aviation- AACO Partner since 2002 time and stage of the journey. Find out more details of the results at the 2013 Passenger IT Trends Survey Webinar which will take place on 17 October. Register here. SITA - AACO Partner since 2008 Daily news on www.aaco.org Issue 79 - Oct. 2013 87 Our Partners News

Travelport kicks off last quarter of 2013 with global expansion and new airline deals: Travelport kicked off the last quarter of 2013 with a number of major announcements – from further expansion and significant product launches in Asia, to notable airline contracts across its European network. Travelport and AXESS unveil new Japanese GDS - Earlier in September, Travelport entered a ground- breaking new partnership with AXESS International Network which sees the GDS provider power Japan’s leading local GDS, introducing enhanced technology to connected travel agents. Currently in its final stages of user testing, the new upgraded travel booking platform powered will be made available exclusively to AXESS-connected travel agents from October 2013. Travelport launches Universal API™ in Asia - In addition to the ground-breaking new GDS in Japan, Trav- elport has also launched its industry-leading Travelport Universal API (Application Programming Interface) to developers in Asia. Now available in over 90 countries, Travelport Universal API is the first API that aggregates content from the GDS (air, car and hotel), accommodation providers, low cost carriers, high speed rail suppliers, and merchandising and ancillary services through a single connection. Travelport Universal API enables developers to gain access to multiple content sources by writing code for only one solution, decreasing the time required to launch new travel applications. New deals reached with European airlines - On the airline side, trasavia.com has become the latest car- rier to sign up for the Travelport Merchandising Platform. The new distribution deal will see transavia. com participate in the aggregated shopping component of Travelport’s merchandising platform that was launched in April 2013. In addition, Travelport has also secured a new distribution agreement with Khors Air, the specialist Ukrainian airline focused primarily on travel to and from Greece. The agreement pro- vides Travelport-connected travel agency customers worldwide with full access to the airline’s published fares. Travelport - AACO Partner since 2000

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Daily news on www.aaco.org Issue 79 - Oct. 2013 88 Issue 79 - Oct. 2013 89 AACO & RTC CALENDARS AACO & RTC Calendars AACO CALENDAR AACO RTC CALENDAR November 2013 October 2013 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 1 2 3 4 5

3 4 5 6 7 8 9 6 7 8 9 10 11 12 AACO 46th AGM / Doha 68th Executive Committee 13 14 15 16 17 18 19 Meeting / Doha 10 11 12 13 14 15 16 20 21 22 23 24 25 26

17 18 19 20 21 22 23 Fuel Project - Tender 2014 - Negotiations Meeting / Casablanca 27 28 29 30 31 24 25 26 27 28 29 30 Advanced Train the Trainer Course / Cairo Fuel Project - Tender 2014 - Negotiations Meeting / Casablanca Call Center Training Course AACO Amadeus Steering Board / Cairo Meeting / Dubai

November 2013 Sun Mon Tue Wed Thu Fri Sat 1 2

3 4 5 6 7 8 9 Click on the banner to register for attending this year’s AGM Managing People Performance / Amman Strategic Management & Planning Course / Tunisia

10 11 12 13 14 15 16 SMS for Airlines / Amman Customer Service in Ser- vice Organizations Course / Abu Dhabi 17 18 19 20 21 22 23 Airport Strategic Management / Amman Action Centered Leadership Training Course / Cairo Human Factors in aviation Maintenance / Beirut

24 25 26 27 28 29 30 Airport Strategic Management / Amman Internal Audit for Ground Service Providers / Amman For additional information, kindly contact Mr. Emad M. Abouzeid / Executive Director Training at [email protected]

Daily news on www.aaco.org Issue 79 - Oct. 2013 93 OUR MEMBER AIRLINES & INDUSTRY PARTNERS Our Member Airlines, & Industry Partners AACO MEMBER AIRLINES AACO INDUSTRY PARTNERS AACO member airlines were established in the following sequence: 1. Egypt Air (1932) 2. Iraqi Airways (1945) 3. Middle East Airlines (1945) 4. Saudia (1945) 5. Syrian Arab Airlines (1946) 6. Sudan Airways (1946) 7. Tunis Air (1948) 8. Gulf Air (1950) 9. Air Algerie (1953) 10. TMA (1953) 11. Kuwait Airways (1954) 12. Royal Air Maroc (1957) 13. Yemen Airways (1962) 14. Royal Jordanian (1963) 15. Libyan Airlines (1964) 16. Emirates (1985) 17. Nouvelair (1989) 18. Oman Air (1993) 19. Qatar Airways (1995) 20. Palestinian Airways (1995) 21. Tassili Airlines (1997) 22. Jordan Aviation (2000) 23. Afriqiyah Airways (2001) 24. Etihad Airways (2003) 25. Air Arabia (2003) 26. Air Cairo (2003) 27. Maximus Air (2005) 28. Petra Airlines (2005) 29. nasair (2006) 30. Rotana Jet Aviation (2010)

Daily news on www.aaco.org Issue 79 - Oct. 2013 97 References: About AACO: The Arab Air Carriers Organization “AACO”, established in 1965 The news included in this bulletin are collected from various sources as fol- within the framework of the Arab League of States, is the Regional Association lows: of the Arab Airlines who have their homebase in countries members of the AACO ATW Online Arabian Aerospace Arab League. IATA Innovata Arab News ICAO GreenAir Online MENAFN AACO’s Vision is to stand out globally as THE association that serves with dedi- EU institutions AMEInfo Arabian Business cation the Arab airlines and be instrumental in dealing with an evolving avia- Industry press releases Airports’ websites Gulf News tion industry. Khaleej Times Others... Where the news item was not based on various sources, AACO clearly men- AACO’s Mission is to serve the Arab airlines, represent their common interests tions the source. and facilitate, in a manner consistent with all applicable competition and other When the source is AACO, other parties may publish the information provided laws their cooperation so as to improve their operational efficiencies and- bet by AACO, but with reference to the source. ter serve the travelling public. Definitions: AACO’s Objectives: 1. Geographical Areas: • To support the Arab airlines’ quest for highest safety and security stan- Americas: Includes North, Central, and South American countries. dards. Mid Asia: Includes the following countries: Bangladesh, India, Iran, Afghani- • To support the Arab airlines’ quest for developing their environmental poli- stan, Pakistan, Sri Lanka, Nepal, Maldives. cies for processes in harmony with the environment. Australasia: Includes the following countries: China, Hong Kong, Malaysia, Tai- • To actively contribute in the development of human resources. wan, Myanmar, Cambodia, Vietnam, Philippines, Singapore, Thailand, Japan, • To interact with the regulatory bodies to support and protect the interests Indonesia, Australia. of the Arab airlines. Europe: Includes the European countries. • To launch and serve joint projects between member airlines with the objec- Arab World: Includes the Arab countries. tive of embracing best practices to assist the airlines in serving their cus- Sub-Saharan Africa: Includes the African countries except Arab countries in tomers within strict adherence to competition laws. North Africa which are: Egypt, Sudan, Libya, Tunisia, Algeria, and Morocco. • To provide forums for members and for industry partners to enhance the knowledge base and improve cooperation amongst them. 2. Abbreviations: • To reflect the positive image of The Arab Airlines Globally. RPK: Revenue Passenger Kilometer ASK: Available Seat Kilometer. PLF: Passenger Load Factor. RTK: Revenue Tonnes Kilometer. ATK: Available Tonnes Kilometer. 85 Anis Nsouli St., Verdun WLF: Weight Load Factor. For any comments or suggestions, please e-mail: P.O.Box: 13-5468 Mrs. Manal Fares 2044-1408 Beirut– Lebanon 3. All statistics in this bulletin represent the absolute number of passengers Manager - Industry Affairs unless mentioned otherwise. [email protected] Phone: 00961-1-861297/8/9 [email protected] Fax: 00961-1-863168 4. Connotations: Or To and From the Arab world: indicates traffic between the Arab world and Mr. Rashad Karaky other world regions. Manager - Economics, IT & Technical Management Within the Arab world: indicates traffic within the Arab world region [email protected] To, From, and Within the Arab world: indicates the sum of the above

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