Issue 77 - Aug. 2013 Official Monthly Bulletin of AACO Arab world marks an increase of AVIATION WITHIN THE ARAB WORLD GLOBAL ARAB AVIATION 13.6% in June 2013 in international passenger numbers - p. 7 GROWTH p: 10 SPREADING OUT p: 24 PARTNER AIRLINES p: 48 - 59

An extra 12 million international ARAB AIRLINES ECONOMICS p: 11 TOURISM p: 32 INDUSTRY PARTNERS p: 60 - 79 tourists in the first four months of EXPANSION p: 13 AACO & RTC CALENDARS p: 80 - 83 2013 - p. 32 COLLABORATION p: 35 LAURELS p: 17 ENVIRONMENT p: 36 AACO MEMBERS & PARTNERS p: 84 - 87

Middle East airports target carbon TECHNOLOGY & E-COMMERCE p: 17 REGULATORY TONE p: 38 neutrality with environmental and emissions reduction initiatives - p. 36 TRAINING p: 18 AN AVIATION MARKET IN FOCUS: UAE p: 42 ARAB AIRPORTS p: 19 WORLD NEWS p: 44

Daily news on www.aaco.org Issue 77 - Aug. 2013 New open-skies deals are pav- The EU has as well entered open skies bilaterals with Brazil and Can- ing the way for strengthening ada as global strategic partners, in addition to neighborhood coun- trade, investment and partner- tries such as Western Balkan partners and Morocco in 2006, Georgia ships, among other benefits. In and in 2010, and Maldova in 2012. In December the EU an- July, the UAE, and nounced plans to open negotiations with Turkey and , and set a Whether sealed open skies accords with 2015 target for comprehensive open skies agreements with all neigh- New Zealand. The UAE inked an boring countries. An accord with Ukraine is expected by this year’s Bilateral or open skies deal with Finland, while end. Negotiations are under way with Australia, New Zealand and, and the US have agreed recently, with Tunisia. Multilateral, to sign an open skies agreement whereby the date of signing of the On the multilateral level, such efforts are relatively progressing slow- Progress is agreement is yet to be announced. ly. The EU, having its Commission as a central authority, was success- Meanwhile, China and Canada ful in having all EU states on board one single aviation market. Other Slow sealed a new expanded aviation regions in the world which have attempted to have a single aviation accord that allows for a threefold market lack such a central authority. To name few multilateral agree- increase in passenger and cargo ments from around the world, we have the Andean Pact (Open Skies flights. Although there’s some among Colombia, Ecuador, Peru, and Bolivia), Mercosur’s Fortaleza progress in liberalizing air services accord (Open Skies among secondary cities in Argentina, Bolivia, Bra- globally, this progress in generally zil, Chile, Paraguay and Uruguay), the Yamoussukro Decision in Africa, very slow. the MALIAT (Brunei Darussalam, Chile, Cook Islands, Mongolia, New Zealand, Samoa, Singapore, Tonga, and the US), the Single Aviation At the bilateral level, the US has Market (reciprocal cabotage between Australia and New Zealand), sealed more than 100 open-skies southeast Asia’s ASEAN, and the Damascus Convention between Arab accords. Other forms of bilater- states. Such agreements have set timelines and targets to reach single als are between a bloc on one aviation markets, however most of them have lagged way behind hand and a country on the other, schedule. Having no central authority has opened the door for res- for example between the EU and ervations by some states, and picks and chooses by other states. Ac- US, or between ASEAN and China; cordingly the benefits and objectives of such agreements remain un- however, in the latter some ASEAN realized, and even if these agreements are adopted they do not tackle states have not yet ratified the seventh freedom. agreement with China. Daily news on www.aaco.org Issue 77 - Aug. 2013 5 Market access is only one piece of the liberalization puzzle, the other OVERALL TRAFFIC - ARAB WORLD important piece is airlines’ ownership and control which is most of We estimate international passenger numbers to, from, & within the times the hurdle to advancement in liberalized accords. Even in the Arab World to increase by 13.6% in June 2013 compared to June the EU-US negotiations, the US refuses to have airline ownership on 2012, which follows an increase of 12.1% in May 2013 compared to the agenda. May 2012.

Monthly International Passenger Numbers' Change to, from and within the Arab World It is important to refer here to IATA’s Agenda for freedom, whereby Jul 12 to Jun 13* compared to same month in previous year 14% signatories of the Agenda agree to waive on a reciprocal basis any re- 12% 10% strictions in their own bilaterals on ownership by airlines from other 8% signing countries. The agenda was signed or endorsed by Chile, the 6% 4% EC, Kuwait, Malaysia, Panama, Singapore, Switzerland, United Arab 2% 0% , the USA, , , New Zealand and Qatar. -2%

In summary, until a time comes when restrictions on market ac- cess are removed and airlines’ ownership and control provisions are YoY Growth 12-Month Average Growth eased, the huge potentials of airlines and the aviation sector as a Source: AACO, IATA *Estimated In June 2013, AACO members increased the number of their offered whole will still be unrealized, hence, the world will be missing out on seats to, from, and within the Arab world by 13.4%, while other air- the massive potentials of a big contributor to the global economy. lines increased their number of seats offered by 10.7%, leading to 12.6% year-on-year increase in the total number of seats offered.

Daily news on www.aaco.org Issue 77 - Aug. 2013 7 AVIATION WITHIN THE ARAB WORLD Aviation in the Arab World

GROWTH Monthly International Passenger Numbers' Change within the Arab World Jul 12 to Jun 13* compared to same month in previous year PASSENGER TRAFFIC International passenger numbers within the Arab world are estimated to in- 20% crease by 14.7% in June 2013 compared June 2012 following an increase of 15.1% in May 2013 over May 2012. 15% 10%

Passenger traffic within the Arab Sub Regions June 13* over June 12 5% Within Arabian Peninsula 22.9% 0% Within Near East 5.4% Within North Africa 39.8% -5% Between Arabian Peninsula & Near East 4.2% Between the Near East and North Africa 11.0% Between Arabian Peninsula & North Africa 33.9% YoY Growth 12-Month Average Growth Source: AACO, IATA *Estimated Source: AACO, IATA *Estimated International Passenger Numbers' Change Within the Arab World Mar13-May13 & Apr13-Jun13* compared to same period in previous year 80% ARAB AIRLINES ECONOMICS 70% posts record results for second quarter and first half of 2013: 60% Etihad Airways announced its strongest second quarter and half-year financial 50% performances on record, reflecting continued solid growth in its airline alli- 40% ance strategy and global cargo operations. 30% The carrier achieved an 8% increase in Q2 2013 passenger revenues, generat- ing USD 921 million (2012: USD 855 million), while passenger revenues for 20% the first half of 2013 reached USD 1.8 billion (2012: USD 1.6 billion), up by 10% 13%. 0% Revenue generated by codeshare and equity alliance airline partners was USD within within N 184 million in Q2 2013. This was 25% above the USD 147 million turnover in Arabian within N East N East the same period of 2012. Partnership revenue comprised 20% of the airline’s Pen Africa Arabian N East N Mar13-May13 Africa N Africa total passenger revenue in both Q2 and the first half of 2013. Pen Arabian Apr13-Jun13* Etihad Airways increased its codeshare partnerships during Q2, adding Serbia’s Pen JatAirways, and announced new partnerships with Air Canada, South African Source: AACO, IATA *Estimated Airways and Belavia of Belarussia, all to take effect during Q3. With these in- Passenger numbers within the Arab world reported a 14.5% growth between clusions, Etihad Airways will have 45 codeshare partners and a virtual global March 13 & May 13 compared to same period in the previous year. network of more than 350 destinations. In Q2, Etihad Airways’ Available Seat Kilometres (ASKs) – reflecting network Passenger numbers within the Arab world reported a 14.4% increase between seat capacity – rose by 13% to 17.2 billion (2012: 15.2 billion). Revenue Pas- May 13 & June 13* compared to same period in the previous year. senger Kilometres (RPKs) – reflecting traffic – increased by 13% to 13.3 billion in Q2 2013 (2012: 11.8 billion). Etihad Cargo continued to achieve the strongest growth in the company, with 112,963 tons uplifted in Q2 2013 (2012: 89,470 tons) and 215,124 tons in the first half of 2013 (2012: 174,622 tons). This reflected a massive 26% growth in Q2 and 23% growth for the first half of 2013.

Daily news on www.aaco.org Issue 77 - Aug. 2013 11 Aviation in the Arab World

Etihad Airways and Government of Serbia unveil strategic partnership to ’s half year financial and operating results reflect positive restructur- secure future of Serbian national airline:Etihad Airways has unveiled plans to ing progress: Gulf Air announced its restructuring strategy was on-track fol- acquire 49% of JatAirways. The -based carrier has also been award- lowing a robust financial and operational performance in the first half of the ed a five year management contract for the Serbian national airline. These are year, ending June 2013. Currently six months into a restructuring strategy the two of the key components of a wide-ranging strategic partnership agreement, airline posted its best first half-year results. signed by Etihad Airways and the Government of Serbia, which includes a fleet In the first two quarters of 2013, Gulf Air reduced its overall losses by over of new aircraft, and a new integrated network of international destinations 50% compared to the same period in 2012. This achievement was realized pri- enabling greater access for business and leisure travelers to Serbia. marily through a 26% reduction in year-on-year costs across the organization The historic agreement follows the launch of Etihad Airways flights between and bolstered by sound revenue results aided by a Q2 yield increase of +6%. Abu Dhabi and Belgrade in June and will significantly enhance trade and in- Gulf Air performed 15% ahead of its financial target in the first six months of vestment relations between the and Serbia as well as the year. Gulf Air expects to realize additional improvements as it continues to boosting the tourism sector in both countries. remove excess operational cost from the organization, renegotiate contracts The strategic partnership agreement was announced by Mr. James Hogan, with certain vendors and suppliers and fine-tune the network. President and Chief Executive Officer of Etihad Airways and H.E. Aleksandar Vučić, Deputy Prime Minister of the Serbian Government, on 1 August 2013. Tassili Airlines picks France for first international operations: Tassili Airlines Within the agreement Etihad Airways will make available a USD 40 million has launched its first international service with weekly flights Bejaja to St. Eti- loan facility which will be converted into equity on 1 January 2014, subject to enne and Jijel to Grenoble flights on 5 July. The two routes, charter flights, are regulatory approval. This will be matched by an equal funding injection by the aimed at meeting growing demand, particularly from Algerians in the south of Government of Serbia. Etihad Airways and the Government of Serbia will also France during the summer period. The airline said that other charter flights to each provide further funding through shareholder loans and other funding , Morocco, Spain and Turkey “will be operational by the end of 2013.” mechanisms of up to USD 60 million to meet working capital requirements and support network development for the newly created Air Serbia. sells 30% stake in Saudia Aerospace Engineering Industries: Saudia The rebranding and renaming of JatAirways to Air Serbia is a significant mo- sold 30% stake in its MRO subsidiary Saudia Aerospace Engineering Industries ment in the history of the Serbian carrier which is more than 80 years old. Tail to Integrated Transportation Company’s subsidiary Tarabot. The agreement fins on Air Serbia aircraft will feature the Serbian coat of arms and the coun- was signed by H.H. Prince Sultan bin Mohammed bin Saud Al Kabeer, Chair- try’s state colours on both sides. The new livery was designed by a team in Ser- man of Integrated Transportation Company, and H.E. Eng. Khalid Almolhem, bia and the UAE. Director General of Saudia. Among other planned developments will be an enhanced flight network, codesharing with Etihad Airways and airberlin, adding to Air Serbia’s current EXPANSION network of 33 cities another 12 destinations in Africa, Europe and the Middle ROUTES East. The new destinations are Abu Dhabi, as well as Banja Luka, , -Bu charest, Budapest, Cairo, Kiev, Ljubljana, Prague, Sofia, Varna, and Warsaw. Airline From To Date Weekly Aircraft Among the first new destinations to be launched by Air Serbia will be 4 weekly Frequency Type flights between Belgrade and Abu Dhabi. Complementing Etihad Airways’ -cur G9 Ha’il 1 Aug. 13 3x A320 rent daily flights, the new Air Serbia service will start in October 2013 and will QR Jul. 13 7x to 9x A320 move to daily when the new fleet grows to facilitate an increased service. Kuwait The new A319 aircraft will be in Air Serbia livery, with a stylish cabin trim and R5 Amman 27 Oct. 13 2x N/A product of a standard never seen before operating out of Belgrade. Asyut Island 3x to 5x The current JatAirways fleet of 10 Boeing 737-300 aircraft will be retired from RG Abu Dhabi 1 Aug. 13 Embraer AC scheduled operations, and in the short term will be replaced by leased narrow Dubai 3x body aircraft. In the longer term, an Air Serbia order will be made for 10 new Amman 3x narrow body aircraft. Alexandria 1 Jul. 13 SM 2x A320 Air Serbia will become Etihad Airways’ sixth equity partner following invest- Misrata ments in airberlin (29.21%), Air Seychelles (40%), Virgin Australia (10.5%), Aer Asyut 1 Jul 13 1x Lingus (2.99%) and most recently Jet Airways (24% – subject to regulatory ap- WY Madinah 10 Jul. 13 1x N/A proval). RT Ras Khaimah Amman 7 Aug. 13 N/A N/A Daily news on www.aaco.org Issue 77 - Aug. 2013 13 Aviation in the Arab World

Ha’il to become ’s ninth destination in : Air Arabia an- a capacity of 470 seats. nounced the addition of its ninth Saudi Arabian destination, Ha’il. From August The giant Boeing 747 aircraft is serving Umrah passengers throughout the 1, the airline will run three services each week from its hub in Sharjah to Ha’il. Holy Month of Ramadan as part of nasair strategic plan to cater the growing In addition to Ha’il, Air Arabia operates non-stop flights to , , Ma- demand for Umrah trips during Ramadan, demonstrates the airline’s commit- dina, Dammam, Qassim, Yanbu, Taif and Abha in the Kingdom. ment to serve domestic customers. boosts frequency between Doha and Amman: Qatar Airways RAK Airways to fly to Amman: RAK Airways announced that it will launch Am- has added two additional flights between its hub in Doha and Amman, bring- man flights on August 7, 2013. ing the total number of services to Jordan to nine weekly flights. The Doha - Amman route is operated by an Airbus A320, featuring 12 seats in CAPACITY AND DEMAND First Class and up to 132 seats in Economy. Passenger Air Services Within the Arab World - June 2013 - SRS Analyzer AACO members increased the number of seats offered within the Arab world to operate two scheduled routes to Kuwait and Asyut: Jor- by 15.4% compared to June 2012 whereas other airlines decreased that num- dan Aviation announced the launch of two weekly scheduled flights from Am- ber by (9.2%), leading to a 11.0% year-on-year increase in the total number of man to Kuwait and Asyut as from 27 October. seats offered within the Arab world. Available Seats within the Arab world for International and domestic routes connects Abu Dhabi and Sir Bani Yas Island with Dubai for the constituted 25.6% and 9.7% respectively of the total Available Seats to, from, first time; adds two more flights to Sir Bani Yas Island: Rotana Jet increased and within the Arab world in June 2013. capacity on its services to Sir Bani Yas Island on 1 August 2013, with the addi- tion of two more weekly flights to become 5 weekly flights. Capacity* of top 10 carriers within the Arab World (Int’l Operations) Moreover, Commuters searching for a way to shorten their time on the road Airline ASKs (Million) Departures Seats can now take advantage of two new routes Rotana Jet debuted from Dubai - EK 1,116.9 2,392 776,724 to Abu Dhabi and Sir Bani Yas Island. These pioneering, time-efficient flights were launched on 1 August, the airline announced. MS 1,036.0 3,286 652,238 For travelers from the capital, flights are operated between Al Bateen Airport SV 822.6 2,562 543,569 in Abu Dhabi and Dubai Terminal Two 3 times a week. QR 720.5 3,791 648,997 Passengers are traveling on a 50-seat Embraer Jet aircraft, which is also tak- FZ 670.1 3,235 611,415 ing Dubai-based visitors to Sir Bani Yas Island from Dubai International Airport Terminal Two on the same days as the Abu Dhabi flights. EY 458.4 2,016 330,638 G9 392.5 1,855 300,510 launches direct flights to Amman and Misrata: On 1 July Air Cairo RJ 342.9 2,052 261,162 launched direct flights between Alexandria and the Jordanian Capital, and GF 237.7 2,560 361,178 to Libya’s Misrata from Alexandria and Asyut. Air Cairo is operating 3 weekly flights from Alexandria to Amman, 2 weekly flights from Alexandria to Misrata, XY 233.4 1,116 181,560 and one weekly flight from Asyut to Misrata. Grand Total 8,169.4 35,390 6,308,673 It is worth noting that Air Cairo has launched its scheduled services to Riyadh * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer and Tripoli at the beginning of the summer season. FLEET adds Madinah to its expanding network: Oman Air launched a new Emirates to lease new A380 from Doric: Emirates has unveiled plans to lease weekly service between Muscat and Madinah. This new service builds on the new Airbus A380 aircraft from a finance company that will issue USD 630 mil- recent launch of Oman Air’s to Jeddah service and marks the airline’s lion of bond-type certificates to fund the purchase of the aircraft. 43rd destination worldwide. Madinah is Oman Air’s fourth destination in Saudi Citigroup, Goldman Sachs Group and Morgan Stanley have been hired as book Arabia, the other three being Jeddah, Riyadh and Dammam. runners on USD 630 million of enhanced equipment trust certificates (EETCs) issued by DNA Alpha (Doric) to finance the aircraft deal. Doric signed a USD 8 nasair operates Boeing 747 aircraft to serve Umrah passengers:For the first billion deal at the Paris Air Show to buy 20 A380s. time, nasair is operating Boeing 747 flights between Riyadh and Jeddah with

Daily news on www.aaco.org Issue 77 - Aug. 2013 15 Aviation in the Arab World Emirates puts batch of long-haul types up for sale: Emirates is offering five LAURELS long-haul aircraft for sale through a public tender. The airline is putting two Airbus A340-500s and two A330-200s on the market. Etihad Cargo recognized with top Italian industry honors: Etihad Cargo has These are being sold alongside a single Boeing 777-200. All five aircraft are -fit been awarded Best Overall Carrier by the Italian Association of Air Cargo ted with Rolls-Royce Trent engines. Agents (ANAMA). The award was presented to Mr. Roberto Casabianca, Etihad Emirates says, in its public announcement, that the A340s are “available now” Cargo’s Head of Global Sales at ANAMA’s annual cargo industry awards cer- while the A330s and 777 will become available from February and May 2014 emony held recently in Milan’s MuseodellaTriennale. respectively. Etihad Cargo was lauded by a 14-member ANAMA jury for its investment in It is inviting expressions of interest by 9 August. Emirates says it is selling the the Italian freight market, innovation, service performance, market competi- aircraft “as part of its regular upgrading exercise”. tiveness, for being the best cargo operator to the Middle East, and for its suc- Source: Flightglobal cessful relationship with the Italian freight forwarding community. Etihad Airways orders first Airbus A380 and Boeing 787 full flight simulators: Etihad Airways has purchased seven full flight simulators (FFS) which will be Mr. James Hogan named aviation industry’s executive leader of the year:Mr. based at the airline’s training academy in Abu Dhabi. James Hogan, President and CEO of Etihad Airways, has been recognized for The deal with Canadian manufacturer CAE, worth more than USD 200 million his “outstanding strategic thinking and leadership” in winning the Executive at list prices, will see Etihad Airways take delivery of its first Airbus A380 and Leadership category at the prestigious annual Airline Strategy Awards, held Boeing 787 FFS, and will support the airline’s growing training requirements. in London. The Executive Leadership Award was chosen by a panel of expert judges from the aviation industry after a thorough examination of Etihad- Air signs initial agreement with Airbus for 25 aircraft: Kuwait Air- ways’ performance in the last 12 months. ways’ Chairman and Managing Director, Mr. Sami AbdulLatif Al Nesf, said that In-depth analysis was conducted on the airline’s increased profitability, indus- the company has signed an initial agreement with Airbus to purchase 25 new try leading growth and unique new partnership strategy with other air carri- aircraft. ers. The agreement will include purchasing ten wide body aircraft A350-900 with The Airline Strategy Award follows Mr. Hogan being named CAPA Aviation Ex- an option to select purchasing five additional aircraft of the same type or ecutive of the Year 2012 in which he was recognized for his “influence on the A350-1000 as well as 15 small size aircraft A320Neo with option to select pur- aviation industry, outstanding strategic thinking, and innovative direction for chasing five additional aircraft of the same type or A321Neo. The delivery will growth”. start in 2019. Source: Arabian Aerospace TECHNOLOGY & E-COMMERCE takes delivery of second A330-200: Libyan Airlines took deliv- Air Arabia increases booking options with new iPhone application:Air Ara- ery of its second Airbus A330-200 aircraft, with the remaining aircraft to arrive bia launched a mobile application for Apple devices. The Air Arabia iOS App, in early 2014. which can be downloaded free from the App Store, allows passengers to eas- Sources from Libyan Airline said to LANA (Libyan News Agency) that the air- ily purchase tickets, review and amend bookings and select seats using their craft accommodates a two-class configuration of 24 business and 235 econo- iPhone. It also offers connectivity to the airline’s website and call centers, as my seats. well as access to an abundance of useful travel information. Simply visit www. appstore.com/Airarabia to download the app. Oman Air orders Rolls-Royce Trent 700 engines for 3 A330s: Oman Air placed The newly launched iOS app allows customers to book tickets, manage their an order for Rolls-Royce Trent 700 engines to power 3 Airbus A330s it current- bookings and add services conveniently through their iPhones. ly has on order. The order also includes long-term TotalCare service support. Air Arabia has always put digital communications channels at the heart of its business model, with new functionality continually added to its online and nasair receives 4 new Airbus A320s: nasair announced that it has received its mobile platforms. first 4 new Airbus A320 as part of its deal to purchase 10 new aircraft which The airline’s iOS App follows the recent launch of its mobile website, which al- are all scheduled to be delivered during the current year of 2013. lows passengers to access the features of www.airarabia.com from any smart- phone, anywhere in the world.

Daily news on www.aaco.org Issue 77 - Aug. 2013 17 Aviation in the Arab World Qatar Airways flies with navigation data from Lufthansa Systems: Qatar Air- ARAB AIRPORTS ways will use the comprehensive navigation data from Lufthansa Systems for their Flight Management System (FMS). Both companies recently signed a five- Top 20 Airports by International Seats Offered on Operations To, From, and year contract to this effect. Within the Arab world - June 2013 The FMS database contains all important route information including altitude Top 20 Airports by Int’l Seats Offered on Operations To, From, and Within and airport data for optimizing routes and supporting autopilots on board the Arab world modern aircraft. The navigation data, which are based on global aeronautical information, are updated every 28 days according to the AIRAC cycle and can Airport Number of Seats Airport Number of Seats be customized to specific routes and for the use in any type of aircraft. Luf- DXB 7,413,308 AMM 791,407 thansa Systems can thus meet the individual requirements and needs of Qa- DOH 2,704,248 BEY 750,521 tar Airways at all times. AUH 1,762,432 SHJ 749,776 Saudia Cargo unveils new online tool to speed up goods shipment: Saudia CAI 1,759,710 IST 735,951 Cargo is launching OK-2-KSA, a new online tool aimed at assisting customers to JED 1,697,537 LHR 722,189 obtain the necessary approvals for the import of five types of goods by air into RUH 1,207,093 TUN 657,681 Saudi Arabia. KWI 1,195,553 CDG 557,141 OK-2-KSA will enable Saudia Cargo’s clients to request approvals online for automotives, dangerous goods, high value goods, human remains and live ani- BAH 914,924 ALG 555,038 mals. MCT 893,980 ORY 484,843 Additionally, OK-2-KSA will enable Proof of Delivery (POD) to be requested on- CMN 816,898 DMM 483,330 line for shipments to the airline’s hubs in Saudi Arabia. Source: AACO, SRS Analyzer TRAINING Abu Dhabi International Airport sees 12.6% increase in traffic in first half of 2013: Abu Dhabi Airports Company (ADAC) released its traffic performance Qatar Airways signs Memorandum of Understanding with Carnegie Mellon results for the first half of 2013 revealing strong double digit growth of 12.6% University: Qatar Airways has signed a Memorandum of Understanding with in passenger traffic between January and June 2013, compared to the same Carnegie Mellon University for collaboration in the fields of education, scien- period last year. During the first six months, the airport welcomed 7.9 million tific research and social development. (7,941,922) passengers and 65,072 flights representing a 10.4% increase in The MoU was signed by Qatar Airways CEO H.E. Akbar Al Baker and Carnegie aircraft movement compared to the same period last year. Mellon University in Qatar Dean and CEO, Dr. Ilker Baybars. Cargo traffic also increased in the first half of 2013, with 325,737 tons passing During the signing ceremony, H.E. Al Baker said the collaboration will improve through the airport, a 21.5% increase compared to the first 6 months of 2012. the integration between the aviation and academic sectors. He emphasized the airline’s commitment to developing the skills of employees working in the Abu Dhabi International Airport’s Al Dhabi Lounge the best in Africa and travel sector, enabling them to keep pace with Qatar’s great achievements in Middle East: Abu Dhabi International Airport’s Al Dhabi Lounge has been vot- this vital industry. ed the best airport lounge in Africa and the Middle East in 2013 by customers The MoU aims to improve and reinforce knowledge for the university’s stu- of the world’s largest independent airport lounge access program – Priority dents as well as airline employees, in the fields of education, scientific- re Pass. Al Dhabi lounge was rated the premier of all lounges in the Africa and search, executive training, social development as well as business manage- Middle East region, placing it among the top 9 award winning lounges for re- ment, IT and public policies. To achieve these goals, both parties will organize gional and specialist excellence. joint conferences and workshops. In 2012, Al Dhabi Lounge was also awarded a “Highly Commended” award from Priority Pass. Record 32.6 million passengers pass through Dubai International Airport in the first half of 2013:Dubai International’s passenger traffic hit 32.6 million in the first half of this year, making it the busiest six months in the airport’s re- cord-studded history, according to the traffic report issued by Dubai Airports.

Daily news on www.aaco.org Issue 77 - Aug. 2013 19 Aviation in the Arab World

According to the report, Dubai International handled a total of 5,537,908 pas- 5,594 ACM recorded during the same month in 2012. YTD ACM also increased sengers in June, a robust growth of 17.5% from the 4,714,746 who passed by 2.27% to record 27,176 ACM compared to the 26,574 ACM counted over through the airport in June 2012. Following seven consecutive months of five the same period in 2012. million-plus traffic, the year to date traffic reached 32,662,103 up 16.9% from 27,931,639 in the first half of 2012. The average monthly passenger traffic Aqaba airport expansion inaugurated: Jordan has inaugurated the expansion recorded in the first six months of the year stood at 5.44 million compared to of the arrivals terminal at King Hussein International Airport in Aqaba. The 4.65 million during the corresponding period in 2012. expansion project is being implemented at a total cost of USD 7 million. Last Aircraft movements in June totaled 30,191 up 10.1% from 27,428 registered year, 2,820 aircraft landed at the airport carrying around 171,000 travelers during the same period in 2012. Year to date aircraft movements totaled to Aqaba. The airport, owned by the airport Aqaba Development Corp, has a 182,911, an increase of 7.4% compared to 170,249 recorded during the first single runway and one terminal building. half of 2012. Dubai International handled a total of 202,077 tons of freight compared to 194,992 tons in June 2012, an increase of 3.6%. During the first Qatar to build mobile hotel at new airport: UK-based architect, Margo Tara- half of 2013, air cargo volumes rose 10.2% to 1,196,894 tons compared to sovich, has been commissioned to build a new mobile hotel for passengers at 1,086,456 tons during the same period in 2012. Qatar’s Hamad International Airport, the Peninsula has reported. The hotel is expected to cater to passengers who would like to stay in Doha for a short New cargo terminal for Emirates SkyCargo at Dubai World Central Al Mak- period without travelling around the city. Once ready, passengers would be toum International Airport:Construction has begun on Emirates SkyCargo’s able to step directly into the hotel from the plane, which would be moving to cargo terminal and supporting facilities at Dubai World Central Al Maktoum different places at the airport. International Airport, which is set to become the home of its freighter opera- tions from May 2014. Saudi Arabia picks JBT for King Abdul-Aziz International Airport deal:Saudi- In addition to the cargo terminal, various facilities and infrastructure will be based Almabani General Contractors and Avicorp Middle East have awarded built including 46 truck docks and 80 truck parking spaces, 12 aircraft stands JBT AeroTech contracts worth more than USD 15 million to supply Jetway Air directly in front of the terminal, while additional interface facilities - east and Handling Units and Pit Distribution Systems for the King Abdul-Aziz Interna- west cross docks – will be built at Dubai International Airport. tional Airport (KAIA) in Jeddah. Dedicated road feeder services between the two airports for connecting car- The order for the gate service systems was received in the second quarter, goes will be introduced to maintain the existing transshipment times between with delivery anticipated to be complete by the fourth quarter of 2013, said freighters to the passenger fleet and vice versa. JBT. The terminal will have an initial capacity to manage 700,000 tons of cargo per annum, which can be expanded to meet future growth. 15.46% increase in passenger traffic at Sharjah International Airport in first half of 2013: Sharjah international Airport recorded a 15.46% rise in passen- ger numbers during the first half of 2013 reaching 4,264,310 passengers com- pared to 3,693,385 passengers in the same period of 2012. Aircraft movements “scheduled and unscheduled” increased to 32,923 flights in the first six months, compared to 32,698 flights in the same period of 2012. Moreover, freight movement registered 159,329 tons in the first half of 2013. Queen Alia International Airport traffic on the rise for fifth month running this May 2013: Airport International Group (AIG) revealed strong growth re- sults for passenger and aircraft traffic at QAIA during May 2013. Passenger traffic (PAX) has risen 11.52% this May to reach 534,898 PAX compared to 479,656 PAX of May 2012. Similarly, Year-to-Date (YTD) PAX has gone up by 5.83%, taking last year’s YTD total from 2,403,884 PAX to 2,543,981 PAX. In turn, aircraft movements (ACM) during May 2013 witnessed a similar in- crease, achieving 2.88% in growth to stand at 5,755 ACM in comparison to the

Daily news on www.aaco.org Issue 74 - April 2013 21 GLOBAL ARAB AVIATION Global Arab Aviation

Monthly Passenger Numbers' Change to and from the Arab world SPREADING OUT Jul 12 to Jun 13* compared to same month in previous year PASSENGER TRAFFIC 14% Passenger numbers on routes to and from the Arab world are expected to in- 12% crease by 13.1% in June 2013 compared June 2012, after a growth of 11.1% in 10% May 2013 over May 2012. 8% 6% 4% Traffic to and from the Arab world June 13* over June 12 2% With the Americas 6.4% 0% -2% With Europe 16.0% -4% With Mid Asia 9.6% With Far East and Australasia 14.9% With Sub Saharan Africa 13.9% YoY Growth 12-Month Average Growth Source: AACO, IATA *Estimated Source: AACO, IATA *Estimated Passenger Numbers' Change To and From the Arab World Mar 13-May 13 & Apr 13-Jun 13* compared to same period in previous year ROUTES 16% Airline From To Date Weekly Freq. Aircraft type AT Casablanca Munich 7 Dec. 13 3x E190 14% Conakry via 27 Oct. 13 4x A340-300 12% Dakar upgraded to B777- 10% Lyon 1 Feb. 14 5x 200LR 8% Amsterdam 4 Dec. 13 7x to 14x 7x A380 EK Dubai 7x B777-200LR 6% Bangkok 27 Oct. 13 35x to 42x B777-200ER 4% Barcelona 1 Feb. 14 7x (unchanged) B777-300ER to A380 2% Kiev 16 Jan. 14 7x A340-500 7x A380 0% Mauritius 16 Dec. 13 14x (unchanged) 7x B777-300 With the IA Baghdad Kuala Lumpur 13 Aug. 13 2x N/A Americas With Europe With Mid Asia RJ Amman Accra via Lagos 3 Jul. 13 2x A330 Mar13-May13 With AustralAsia With Sub- Kochi 1 Aug. 13 11x (unchanged) A321 to A330 Apr13-Jun13* Saharan Africa QR Doha Istanbul 1 Jul. 13 unchanged upgraded to A330 SV Madrid via Jed- 4x (via Milano) to Source: AACO, IATA *Estimated Riyadh dah 29 Oct. 13 3x (non-stop) A320 Passenger numbers within the Arab world market reported an 8.7% growth RT Ras al- February 13 & April 13 compared to the same period in previous year. Khaimah 5 Aug. 13 N/A N/A Hurghada 3x to 7x Passenger numbers within the Arab world market reported a 10.5% increase TK Istanbul Sharm Sheikh 27 Oct. 13 4x to 7x N/A between March 13 & May 13* compared to the same period in previous year. Aqaba 3x to 5x KQ 3 Sep. - 10 Nairobi Jeddah Nov. 13 2x to 4x E190 to B737-800 SG Chennai Muscat late 2013 N/A N/A VY Barcelona Beirut 29 Jun. 13 2x N/A

Daily news on www.aaco.org Issue 77 - Aug. 2013 25 Global Arab Aviation

Royal Air Maroc resumes Munich service from December 2013: Royal Air Increasing overall capacity by almost 44%, Emirates’ new 517 seat A380 ser- Maroc from 7 December 2013 will resume its Casablanca – Munich operation vice will be the first permanent A380 service to operate into Barcelona El Prat starting December 2013, after 7 years of service suspension. The 3 weekly Airport, replacing the route’s existing Boeing 777-300ER service and offering flights will be operated by Denim Air Embraer E190 aircraft. 2,198 additional seats per week between the two cities. The 517-seat Emirates A380 offers 14 Private First Class Suites, 76 lie-flat beds in Business Class and Emirates to link Conakry to its Dakar service: Emirates announced a linked 427 spacious seats in Economy Class. service to Conakry, the capital city of Guinea, from 27 October 2013. The linking of Conakry to the four times weekly Dubai to Dakar service will Emirates to expand presence in Eastern Europe with launch of Kiev: Emir- provide new opportunities for business and leisure travelers in Guinea to ates unveiled new expansion plans for Eastern Europe, with the launch of daily seamlessly connect to Emirates worldwide network through its Dubai hub, services to Kyiv Boryspil International Airport in Kiev from 16th January 2014, particularly destinations in China, the Middle East, India, Far East & Australia. marking its first route to the Ukraine. The Dubai to Dakar route was serviced by an A330-200 aircraft, but since 31 Offering a daily service, operated by an Airbus A340-500, the new flight will March 2013 a slightly larger A340-300 was introduced onto the route, ahead provide convenient global connections, via Dubai, to Ukraine. of the 27 October launch of the Conakry link. The aircraft has 267 seats in a three–class configuration offering 12 First Class seats, 42 seats in Business Emirates to commence a daily A380 service to Mauritius: Emirates an- Class and 213 seats in Economy Class. nounced that it will commence a daily Airbus A380 service from Dubai to Mau- In addition to passenger services, Emirates SkyCargo will offer about 13 tons of ritius from 16 December 2013. The announcement of this daily service follows cargo capacity per flight, supporting Guinea’s key exports of perishables. the special one-off A380 flight that the airline operated to Mauritius in March 2013 to celebrate the island’s 45 years of independence. Emirates announces Boeing 777 upgrade on Lyon service: Less than nine The new flight will replace one of the existing three class Boeing 777-300 ser- months after launching its inaugural service to Lyon, Emirates has announced vices the airline currently operates to Mauritius. This means Emirates will con- it will upgrade the route’s operating aircraft to a Boeing 777-200LR, effective tinue to serve the country on a double daily basis with an additional 153 seats from 1st February 2014. Offering a total of 266 seats in each direction the up- on the route each day across First Class, Business Class and Economy Class. graded aircraft will continue to operate five times per week and will offer cus- The airline operates the flights on a code-share basis with Air Mauritius. tomers eight private suites in First Class, 42 lie-flat seats in Business Class, and 216 seats in Economy Class. launches Baghdad-Kuala Lumpur flights: Iraqi Airways an- nounced its plans to launch a new service between Baghdad and Kuala Lum- Emirates doubles services to Amsterdam: Emirates will serve Amsterdam with pur as from 13 August 2013. The new service between Baghdad and Kuala a second daily non-stop flight from 4th December 2013. The airline’s Boeing Lumpur will be operated twice a week. 777-200LR aircraft will add capacity of more than 3,700 seats a week in both directions. opens a new route to Lagos and Accra on 3 July 2013: Royal The new daily service will complement Emirates’ Airbus A380 flight to Amster- Jordanian launched on 3 July 2013 a regular service between Amman and dam, which commenced last August, less than two years after the launch of each of Lagos, the economic capital of Nigeria and Accra, the capital of Ghana. the route with a Boeing 777. The new additions will raise the number of the Royal Jordanian destinations to The second service will feature 266 seats in a three-class configuration - eight 61 spanned over four continents. seats in First Class, 42 in Business Class and 216 in Economy Class. The company will operate the route (Amman-Lagos-Accra-Lagos-Amman) Emirates SkyCargo will offer 17 tons of belly-hold capacity on every flight. twice weekly with its wide-bodied, 280-seat Airbus A330s. Emirates connects Dubai and Bangkok six times a day: Emirates announced Qatar Airways increases capacity to Kochi: Qatar Airways has announced a a further increase in capacity between Dubai and Bangkok, with a start of a significant increase in the capacity of its flights from Doha to Kochi being up- sixth daily, non-stop service from 27 October 2013. A Boeing 777-200ER will graded from a narrow-body Airbus 321 to a wide-body Airbus 330. operate the new Dubai – Bangkok route with 12 seats in First Class, 42 seats in The A330 will be operational on all 11 weekly frequencies to and from Kochi Business Class and 220 seats in Economy Class. connecting to more than 125 destinations around the world via the airline’s hub in Doha. Emirates A380 to serve Barcelona: Emirates has announced it will commence Qatar Airways operates the A330 flights to Kochi in a two-class configuration a daily A380 service to Barcelona from 1st February 2014. of 248 seats in Economy and 36 seats in Business Class.

Daily news on www.aaco.org Issue 77 - Aug. 2013 27 Global Arab Aviation

Qatar Airways upgrades capacity on Istanbul route: Qatar Airways has up- CAPACITY AND DEMAND graded its capacity on its Istanbul - Doha route, with an Airbus A330 aircraft. Passenger Air Services to & from the Arab world - June 2013 - SRS Analyzer As at 1 July, the introduction of the new wide-body aircraft resulted in an in- AACO members increased the number of seats offered to and from the Arab creased capacity on flights to Istanbul by 166 seats per day, a nearly 50% in- World by 12.0%, while other airlines increased the number by 16.1% which crease. resulted in a growth of 13.5% in the total number of offered seats to and from All flights on the Doha – Istanbul routes are operated with a modern Airbus the Arab world. A330, featuring a two-class configuration, including up to 24 seats in Business Class and up to 258 seats in Economy Class. Percentage of the Total Available Seats To and From the Arab World With Europe 30.4% Saudia to operate nonstop flights to Madrid:Saudia will start operating non- With Mid Asia 17.8% stop flights between the Kingdom and Madrid on 29 October. The new nonstop flights will be operated 3 times a week using A320 aircraft With Australasia 9.6% with a capacity of 20 Business Class seats and 96 Guest Class seats for the ser- With the Americas 2.5% vice. With Sub Saharan Africa 4.4% At present Saudia operates four weekly flights from Madrid to Saudi Arabia via Source: AACO, SRS Analyzer Milan; two to Jeddah and two to Riyadh. This will change from 29th October 2013 to three frequencies but direct operation with no stopover in the Italian city of Milan. Saudia flights to Spain after October 29 will be on the route Riyadh-Jeddah Capacity* of top 10 carriers ( Arab World & Europe) Madrid with return flights following the route Madrid-Jeddah-Riyadh. Airline ASKs (Million) Departures Seats RAK Airways to fly to Islamabad:RAK Airways announced Islamabad to be its EK 6,753.6 3,422 1,367,528 first destination launch in 2013, starting from 5 August. QR 2,302.6 2,206 505,838 Islamabad is RAK Airways’ third destination . EY 1,367.9 1,188 272,958 Turkish Airlines to increase flights to Egypt and Jordan:Turkish Airlines has TK 913.4 2,502 462,501 said it is increasing operations to Egypt and Jordan from October 27, where LH 808.3 1,155 228,565 it’ll boost frequencies to Hurghada, Sharm el Sheikh and Aqaba. The carrier BA 804.6 852 188,273 will increase the number of flights from Istanbul to Aqaba from three to five AT 732.7 2,603 390,489 weekly, and to Hurghada from three weekly to daily. Flights to Sharm el Sheikh will be raised from four weekly to daily. MS 648.9 1,470 245,158 AF 648.2 1,457 258,379 SpiceJet to launch services to Oman: SpiceJet has announced plans to launch FR 522.7 1,562 295,218 services to Oman before the end of 2013, Muscat Daily has reported. The Grand Total 23,487.2 37,237 7,500,296 Chennai-based carrier will add Bangkok, Muscat and Macau to its network, as * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer part of the airline’s overseas expansion plans.

Vueling Airlines launches Beirut-Barcelona route: Vueling Airlines has launched a new direct route between Beirut and Barcelona on 29 June. There will be two weekly roundtrip flights between Beirut and Barcelona. Kenya Airways to increase Jeddah service: Kenya Airways has decided to in- crease its Nairobi-Jeddah service from September 3 to November 10. During this period, the airline will operate four weekly flights instead of two and will change the aircraft from Embraer E190 to Boeing 737-800.

Daily news on www.aaco.org Issue 77 - Aug. 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 6,705.6 2,335 947,707 EK 2,225.2 1,207 411,823 QR 2,755.1 1,407 413,237 QR 379.7 480 84,352 EY 2,030.6 923 287,169 MS 331.6 493 84,910 SV 993.9 369 135,063 AT 311.5 675 104,772 QF 639.2 120 54,000 EY 257.6 266 54,946 GA 450.8 159 58,148 ET 237.0 670 108,261 MS 435.2 164 54,745 SV 84.9 166 30,030 CX 346.3 181 56,291 KQ 83.2 170 27,236 JT 237.0 60 29,760 AH 77.4 160 26,616 SQ 224.5 120 37,020 TU 72.7 123 20,922 Grand Total 16,523.8 6,906 2,358,483 Grand Total 4,387.8 5,258 1,093,636 * 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 2,058.5 2,681 878,737 EK 2,880.3 624 238,296 QR 1,051.9 1,982 380,160 QR 1,086.3 310 94,730 SV 976.9 1,105 339,190 EY 875.1 232 76,656 G9 734.0 1,775 287,550 UA 358.4 120 32,640 AI 682.6 1,268 241,404 SV 355.0 120 33,674 9W 610.4 1,564 249,424 RJ 336.5 136 35,124 IX 536.1 1,116 200,880 MS 289.9 92 31,832 FZ 487.1 1,081 204,309 AT 217.3 138 37,816 WY 438.3 1,301 198,186 DL 197.4 60 16,140 PK 423.7 683 172,313 KU 77.3 26 7,566 Grand Total 10,942.0 22,244 4,374,875 Grand Total 6,728.3 1,894 613,186 * 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 77 - Aug. 2013 31 Global Arab Aviation

TOURISM This outlook is confirmed by the UNWTO Panel of Experts Confidence Index survey which shows sustained confidence for this period, though with varia- An extra 12 million international tourists in the first four months of 2013:A tions by region and activity. Confidence picked up significantly in Europe, the total of 298 million international tourists travelled worldwide between January Middle East, among Global operators, tour operators and travel agencies. On and April 2013, 12 million more than in the same period last year according to the other hand, confidence decreased among experts in Asia and the Pacific, the latest UNWTO World Tourism Barometer. Prospects for the current tour- the Americas and Africa, as well as among experts in the transport industry. ism peak season remain positive with some 435 million tourists expected to For the full year of 2013, international tourist arrivals are expected to increase travel abroad in the May-August period. by 3% to 4% in line with UNWTO’s long-term forecast of 3.8% per year for the International tourist arrivals grew by 4.3% in the first four months of 2013 to period 2010 to 2020. reach a total of 298 million, up from 286 million, despite a challenging global Source: UNWTO economic environment. Key Figures for MENA and Other Regions Extracted From the Barometer: Results were positive in all regions, with the strongest growth in Asia and the Pacific (+6%), Europe (+5%) and the Middle East (+5%) and weaker growth in International Tourist Arrivals (World, North Africa & Middle East regions) the Americas (+1%) and Africa (+2%). By subregion, South-East Asia (+12%), Full Year Share Percentage Change South Asia (+9%) and Central & Eastern Europe (+9%) were the star perform- 2000 2005 2010 2011 2012* 2012* 10/09 11/10 12*/11 2013* ers. (million) (%) YTD Emerging economies growing faster World 677 807 949 995 1,035 100 6.4 4.8 4 4.3 Growth was stronger in emerging economy destinations (+4.6%) as compared North 10.2 13.9 18.8 17.1 18.5 1.8 6.7 (9.1) 8.7 (0.1) to advanced economies (+3.3%), a trend which has marked the sector for Africa many years now. By region, growth was positive in all regions, but results were Middle rather mixed. 24.1 36.3 58.2 54.9 52 5 11.6 (5.6) (5.4) 4.7 Asia and the Pacific (+6%) saw the highest relative growth boosted by arrivals East in South-East Asia (+12%) and South Asia (+9%). Source: World Tourism Organization (UNWTO) *estimated International tourist arrivals to Europe, the most visited region in the world, were up by 5%; an excellent result in view of the economic situation in the re- Outlook of International Tourists 2013 gion. Central and Eastern Europe (+9%) continues to lead growth, while South- 2009 2010 2011 2012 2013* ern and Mediterranean Europe (+5%) also turned in strong results. projection real full year, change Africa (+2%) and the Americas (+1%) reported a rather weak growth in the between first four months of 2013, though following the strong progress of 2012 (+6% and +5%, respectively). At the subregional level, results were rather flat in all World (3.9%) 6.40% 4.80% 4.10% 3% and 4% subregions of the Americas except in Central America (+4%). In Africa, the 3% Africa 3.40% 8.70% (0.90%) 4.20% 4% and 6% growth in Subsaharan Africa contrasts with even results in North Africa. Middle East (5.2%) 11.60% (5.6%) (5.3%) 0% and 5% Growth in the Middle East is estimated at 5%, though this figure should be Europe (4.90%) 3% 6.40% 3.60% 2% and 3% taken with caution as it is based on still rather limited available data. Asia and the 435 million tourists expected to travel abroad during the tourism peak season (1.6%) 13.20% 6.40% 7.30% 5% and 6% Prospects remain positive for the period May-August, the Northern Hemi- Pacific sphere’s summer season. Around 435 million tourists are expected to travel Americas (4.7%) 6.60% 3.60% 4.50% 3% and 4% abroad during these four months which account for as much as 40% of all in- Source: World Tourism Organization (UNWTO) *estimated ternational tourist arrivals registered in a year. The pace of growth might slow somewhat, as shoulder seasons tend to show faster growth than the peak season. International air travel reservations for May-August from business intelligence tool Forwardkeys support this outlook with a 4% increase in bookings for that period. The highest growth is recorded in international flight reservations from Africa and the Middle East (+7%) and the Americas (+5%), followed by Europe (+3%) and Asia and the Pacific (+2%)

Daily news on www.aaco.org Issue 74 - April 2013 33 Aviation in the Arab World

Qatar Tourism Authority, UNWTO sign pact to boost tourism: In line with International Tourist Arrivals by (sub)region and selected countries and ter- Qatar’s new tourism strategy, Qatar Tourism Authority (QTA) has signed a ritories of destination 17-month agreement with the United Nations World Tourism Organization 2005 2010 2011 2012* 11/10 12*/11 (UNWTO) to develop the policies, regulations and strategies needed to take Full Year Change Qatar’s booming tourism into the future. The agreement will see UNWTO up- (1,000) (%) date and create benchmarked processes within QTA and also develop a con- sistent and locally relevant monitoring and quality control system across the North Africa 13,911 18,756 17,055 18,536 (9.1) 8.7 wide range of tourism activities as specified under Law 6 of 2012, known as Algeria 1,443 2,070 2,395 - 15.7 - the “Tourism Law”. The agreement also seeks to align the tourism boom with Morocco 5,843 9,288 9,342 9,375 0.6 0.3 Qatar’s 2030 vision, ensuring that tourism is also sustainable. Sudan 246 495 536 - 8.3 - Qatar’s tourism sector grew 13% in the first quarter of 2013 as compared to 2012, fuelled by a hotel boom, says a QTA report. The hospitality sector plays Tunisia 6,378 6,902 4,782 5,950 (30.7) 24.4 a crucial role in the growth of tourism and Qatar’s hotel sector is growing at Middle East 36,339 58,181 54,936 51,966 (5.6) (5.4) an incredible rate - 110 hotels were under construction last year, which when Egypt 8,244 14,051 9,497 11,196 (32.4) 17.9 finished will offer 19,931 rooms to visitors. Jordan 2,987 4,207 3,960 4,162 (5.9) 5.1 Kuwait 104 207 269 - 30.0 - COLLABORATION Lebanon 1,140 2,168 1,655 1,365 (23.7) (17.5) Emirates and Qantas partnership in New Zealand: New Zealanders will soon Palestine 88 522 449 488 (14.1) 8.8 benefit from a partnership between Qantas and Emirates, with the joint net- Qatar 913 1,519 2,527 - 66.4 - work opening for bookings from August 14, 2013. The partnership will make New Zealand part of a joint Qantas-Emirates network, which includes Austra- Saudi Arabia 8,037 10,850 17,498 13,664 61.3 (21.9) lia, Asia, the Middle East, North Africa, Europe and the UK. Syria 3,571 8,546 5,070 - (40.7) - Emirates and Qantas will together operate around 130 services per week from UAE* 5,833 7,432 8,129 8,977 9.4 10.4 Auckland, Christchurch, Wellington and Queenstown to Australian east coast Yemen 336 1,025 829 - (19.1) - cities — then onwards to over 65 destinations in the Middle East, North Africa * Dubai Only and Europe. Existing capacity on trans-Tasman routes that both Qantas and Source: World Tourism Organization (UNWTO) Emirates fly has been guaranteed as part of regulatory approvals. Emirates’ trans-Tasman services are operated by the Airbus A380 and Boeing GCC hotels to see occupancy rates climb to 73% by 2016 -- study: According 777, while Qantas’ services are operated by a fleet of Boeing 737-800s. to a report by Kuwait Financial Centre (Markaz), revenues earned by hotels across the GCC are projected to surge to USD 24.92 billion by 2016, up from Etihad Airways and Air Seychelles expand codeshare to Kuwait:Air Sey- USD 17.83 billion at the end of 2011, Oman Daily Observer has reported. chelles announced an expansion of its codeshare partnership with Etihad Air- Room occupancy, currently averaging 68% for 2012, is expected to climb to ways for travel to Kuwait over Abu Dhabi. The newly added codeshare destina- 73% by 2016, the report said. «There are several growth factors driving the tion will see Air Seychelles and Etihad Airways offer 10 seamless return flights hospitality industry in the GCC but international tourism has to be the most per week from Kuwait to the Seychelles, including a daily service. The agree- significant one,» Markaz said. «The GCC region is home to some of the finest ment will see Air Seychelles place its “HM” code on Etihad Airways flights be- hotels in the world and people visit the region for niche tourism offerings such tween Kuwait and Abu Dhabi. as cultural, religious tourism as well as sports and event based tourism.» Etihad Airways and Korean Air sign codeshare agreement:Etihad Airways has Saudi tourism generated USD 4.53 billion in revenues since 2008: Prince Sul- signed a new codeshare agreement with Korean Air. The partnership brings to tan bin Salman, President of the Saudi Commission for Tourism and Antiquities 46 the number of codeshares operated by Etihad Airways. In the first phase of (SCTA) has said tourism festivals in the kingdom have generated more than cooperation, Korean Air will place its ‘KE’ code on Etihad Airways’ daily ser- USD 4.53 billion in revenues over the past eight years, Arab News has re- vices between Seoul (Incheon) and Abu Dhabi. Members of Etihad Airways’ ported. «These festivals drew a record crowd of 55 million over the past eight Etihad Guest and Korean Air’s SKYPASS loyalty programs will also enjoy full years,» said the SCTA chief. reciprocity.

Daily news on www.aaco.org Issue 77 - Aug. 2013 35 Global Arab Aviation

ENVIRONMENT Construction of the new concourse currently includes onsite recycling to avoid landfill disposal and easily accessible areas have been provided for the collec- CDM pipeline update: tion and storage of non-hazardous materials such as paper, corrugated card- CDM pipeline update 1 Aug 2013 Status # of Projects board, glass, plastic and material. Status # of Projects Withdrawn 60 DAEP has pledged to source at least 10% of its building material from within Rejected by EB 256 800km of Dubai International and 20% from recycled materials. In addition, At Validation 1,600 the new building will make use of at least 50% – based on cost – of wood- Request for Registration 88 Validation Negative by 260 based materials and products that are certified in accordance to Forest Stew- Request for Review 28 DOE ardship Council’s principles and criteria. This, says DAEP, will contribute in Correction Requested 2 Validation Terminated 1,588 reducing the negative environmental impacts of irresponsible forest practices. by DOE An array of 192 solar panels covering 450 square meters will be erected on Under Review 0 Registered, no issuance the roof of the building, which will have the dual benefit of generating power Total in Registration of CERs 4,720 while keeping the building cool by reflecting sunlight, and generate around Process 118 Registered, CER issued 2,408 1.8% of the concourse’s total power requirement. The use of improved insula- Source: UNEP RisØ tion in the construction of the building will help better regulate temperature Total Registered 7,128 within the concourse, while thermal technology will be used to absorb sun- light in the day and radiate it during night-time hours. Settlement Price of ECX EUA and CER Futures on 1 August 2013 The design also requires the use of more efficient lighting systems, which in- Dec-13 Dec-14 Dec-15 Dec-16 cludes daylight sensors and less heat-intensive lighting that not only reduces EUAs € 4.35 € 4.49 € 4.67 € 4.88 energy consumption but also cuts the amount of energy needed to cool the concourse. CERs € 0.57 € 0.59 € 0.66 € 0.68 Meanwhile, Amman’s Queen Alia International Airport (QAIA) has become the Source: IntercontinentalExchange second Middle East airport to be accredited under the Airport Carbon Accredi- U.S. environmental groups echo aviation industry’s call for ICAO to adopt tation program after Abu Dhabi International Airport. The airport has achieved global emissions cap this year: Environmental Defense Fund and Natural Re- ‘Mapping’ level, which recognizes its commitment in determining its own CO2 sources Defense Council echoed the new call by the International Air Trans- and other greenhouse gas emissions sources, as well as engaging a third party port Association (IATA) for governments to agree this September on a single to verify the airport’s annual carbon footprint. global cap on emissions of international flights to take effect in 2020. The program is the only institutionally-endorsed carbon management certifi- The NGOs issued their call in response to a resolution, adopted at IATA’s an- cation standard for airports. It was launched by Airports Council International nual general meeting in Cape Town, that urges its member airlines to “strongly (ACI) Europe in 2009 and was extended to ACI Asia-Pacific in November 2011. encourage governments” to adopt such a single global measure at this year’s AIG is ISO 14001 certified and operates in accordance with an environmental International Civil Aviation Organization (ICAO) Assembly. management plan and a waste management plan. Source: GreenAir Online Middle East airports target carbon neutrality with environmental and emis- sions reduction initiatives: Dubai International Airport is undertaking a num- Switzerland seeks ETS compensation for its airlines:Switzerland has asked ber of green initiatives to reduce the environmental impact of its new Con- for compensation from the EU on the grounds that international flights to and course D, which will be the home for more than 100 airlines when it opens in from its airports are unfairly included in the emissions trading system (ETS). 2015. These include adopting recycling programs during construction, utilizing Switzerland’s position is that if the compensation is not provided in cash, it locally sourced and recycled building materials and the use of renewable en- could take the form of free emission allowances. But a number of solutions to ergy sources to reduce the carbon footprint of the facility. the dispute are on the table and nothing has been agreed yet, ENDS under- In addition, the overall volume of the building has been significantly reduced stands. Swiss and EU officials met in Zurich for a fourth round of talks on link- to lessen cooling requirements and a glass facade will allow for more effective ing their respective emissions trading systems. use of daylight. Switzerland is unhappy at being implicitly treated as an EU member state by The intention is to promote healthy, durable, affordable and environmentally being excluded from the ‘stop the clock’ derogation, ENDS understands. Coun- sound practices in design, construction and building materials, say the airport tries that are part of the European Free Trade Association (EFTA) were not operator and Dubai Aviation Engineering Projects. included.

Daily news on www.aaco.org Issue 77 - Aug. 2013 37 Global Arab Aviation

EFTA-member Switzerland considers this to be legally unjust, particularly as In June, the European Union said it would impose the duty on imports from member states benefit from EU ETS inclusion through revenues from auction- (GCC) states starting January 1, 2014 after remov- ing emission allowances, while Switzerland does not. ing the group from the generalised scheme of preferences (GSP), which offers Swiss airlines and industrial facilities will be included in the carbon market link trade advantages to developing economies. with the EU, likely to begin in 2015. At present, aviation is not part of the Swiss Jet fuel imports from India would also pay duty even though the country was ETS. included in the new GSP scheme, as India’s refining industry was seen as suffi- Negotiators are expected to agree the details of the link by the end of this ciently competitive in global markets. year, followed by a 1-2 year ratification process. But following a round of internal talks in the European Commission, it was The talks in Zurich also examined the possible impact on Switzerland of the agreed that hundreds of bilateral aviation agreements were in place that over- EU-Australia ETS link, also due to begin in 2015. Switzerland may need to link ride the duty. its registry with Australia’s to allow Australian firms to trade Swiss allowances. It is likely that Swiss allowances will be exactly the same as EU ones, although The European Commission approves proposed merger between US Airways they may be identifiable by their serial code. and American Airlines› holding company AMR Corporation, subject to con- Source: Airport Watch ditions: The European Commission has cleared under the EU Merger Regula- tion the proposed merger between US Airways Group and AMR Corporation, REGULATORY TONE including its main subsidiary American Airlines, Inc, all of the United States. Both US Airways and American Airlines are major US flag commercial airlines The European Commission updates the European safety list of banned air- providing scheduled air passenger services. The transaction would lead in lines: The European Commission has updated for the 21st time the European particular to a monopoly on the London-Philadelphia route, where US Airways list of airlines subject to an operating ban or operational restrictions within the and American Airlines through its membership in a metal neutral joint venture European Union, better known as “the EU air safety list”. Following improve- with British Airways and Iberia (the “Transatlantic Joint Business”, see back- ments in the safety situation in the Philippines, Philippine Airlines is the first ground) are the only carriers offering non-stop flights (the route is de facto airline from this country allowed back into European skies since 2010. The operated by British Airways). The decision is conditional upon the release of same is true for the Venezuelan airline Conviasa, which was banned in 2012. one daily slot pair at London Heathrow and of other commitments in order to Progress was also noted in Libya but the Libyan authorities agreed that Libyan induce entry on the London-Philadelphia route. In light of these comprehen- airlines would not be allowed to operate in Europe until they are fully recerti- sive commitments, the Commission concluded that the transaction would not fied to the satisfaction of the European Union. raise competition concerns. The new list replaces and updates the previous one, adopted in December The Commission examined the competitive effects of the proposed merger 2012, and can be consulted on the Commission’s website1. on numerous transatlantic routes (one non-stop/non-stop overlap on the Consultations were held with the civil aviation authorities of Libya. Progress London-Philadelphia route, 27 non-stop/one-stop overlap routes and 39 one- was noted by the Committee, but the Libyan civil aviation authorities agreed stop/one-stop overlap routes). to maintain the voluntary restrictions applicable to all airlines licensed in Lib- US Airways and American Airlines submitted commitments to release one ya. This voluntary restriction excludes Libyan airlines from flying into the EU daily slot pair at London Heathrow and Philadelphia airports, and also pro- until when they will be fully recertified in accordance with international safety vided further incentives such as the possibility for a new entrant to acquire standards. The on-going implementation of these measures will remain under grandfathering rights after a certain period of time. Furthermore, the parties, close monitoring by the Commission and the EU Air Safety Committee. supported by their joint venture partners of the Transatlantic Joint Business, The Commission also praised the good progress in Sudan as well as in Mozam- committed to entering into special feed traffic agreements with the likely en- bique. trant airline. Source: European Commission These commitments adequately address the competition concerns identified by the Commission and should facilitate new entry on the London-Philadel- EU scraps plan to levy duty on jet fuel imports: The European Union back- phia route. The Commission therefore concluded that the proposed transac- tracked from plans to levy a 4.7 percent duty on jet fuel imports from the tion would not significantly impede effective competition in the European Eco- Middle East and India after a round of internal consultations and discussions nomic Area (EEA) or a substantial part of it. This decision is conditional upon with the aviation industry. The EU’s June decision to impose the tariff follow- full compliance with the commitments. ing a broad review of its preferential trade agreements sparked concern it Source: European Commission would weaken the region’s struggling airlines and lead to higher flight fares.

Daily news on www.aaco.org Issue 77 - Aug. 2013 39 Global Arab Aviation

UK Parliament MPs sign a motion on air passenger duty:As at 27 June 2013, FAA requires new pilot qualification standards:The Federal Aviation Adminis- 37 MPs have signed the following motion (Number 244) on air passenger duty: tration (FAA) announced that it is increasing the qualification requirements for “That this House believes that the UK’s air passenger duty (APD), the highest first officers who fly for U.S. passenger and cargo airlines. air passenger duty in the world, is acting as a deterrent to both inward invest- The rule requires first officers – also known as co-pilots – to hold an Airline ment and inbound tourism; is concerned about the impact of APD on UK busi- Transport Pilot (ATP) certificate, requiring 1,500 hours total time as a pilot. nesses wishing to export to emerging markets; notes the compelling analysis Previously, first officers were required to have only a commercial pilot certifi- undertaken by PricewaterhouseCoopers about the economic impacts of APD; cate, which requires 250 hours of flight time. further believes changes in APD policy could contribute positively to the UK’s The rule also requires first officers to have an aircraft type rating, which in- economic growth; and calls on HM Treasury to commission a comprehensive volves additional training and testing specific to the airplanes they fly. study into the full economic effects of aviation tax in the UK, including its im- The new regulations stem in part from the tragic crash of Colgan Air 3407 in pact on employment.” February 2009, and address a Congressional mandate in the Airline Safety and Federal Aviation Administration Extension Act of 2010 to ensure that both pi- India panel approves Etihad’s Jet Airways stake deal: India’s foreign invest- lots and co-pilots receive the ATP certification. ment regulator has given its approval to a USD 379 million deal that will see Etihad Airways buy a 24% stake in Jet Airways. It is the first foreign investment UAE, Finland ink open skies agreement: The United Arab Emirates has signed in India’s airline sector since ownership restrictions were eased in 2012. The an Open Skies agreement with the Government of the Finland. deal, announced in April, had come under scrutiny amid concern over who The two delegations agreed that any number of designated airlines of both would control the airline’s operations. parties will have the right to perform scheduled air services between the two According to reports, Etihad Airways agreed to reduce the number of seats it countries. would hold on the Jet Airways’ board. The UAE delegation designated Emirates Airline, Etihad Airways, Air Arabia, The regulators have also imposed other conditions on the airlines. RAK Airways and as UAE national airlines under the Agreement. The The Press Trust of India quoted H.E. Ajit Singh, India’s civil aviation minister, as Delegation of Finland designated its national airlines. saying that if the two airlines “at any time make changes in shareholding pat- The MoU allows full flexibility on the routes, capacity, number of frequencies tern, they have to get permission from the Indian government agencies”. and types of aircraft, in any type of service (passenger or cargo). The signed At the same time, any arbitration between the two carriers must be conducted memorandum also includes the exercise of fifth freedom traffic rights. In addi- under Indian law. tion, both Parties agreed to allow unrestricted non-scheduled / charter opera- The deal still needs to be approved by the capital markets regulator and the tions between the two countries. cabinet. Source: BBC Oman, US to ink open skies pact: The United States of America and the Sul- tanate of Oman have agreed to sign an open skies agreement, permitting India to replace the Directorate General of Civil Aviation, form new Civil Avi- unrestricted air service by the airlines of both countries. The date of signing ation Authority: India has approved replacing its aviation industry regulator— the agreement has not been announced. The United States-Oman open skies the Directorate General of Civil Aviation (DGCA)—with a more powerful Civil agreement eliminates government restrictions on how often carriers fly, the Aviation Authority (CAA). type of aircraft used, and prices they charge. The CAA, which will have broader functions, will also have financial autonomy to ensure it is independent of the government. The CAA is expected to meet Canada and China conclude new, expanded bilateral: Canada and China have ICAO standards and is more in line with aviation regulators such as FAA and forged a new and expanded bilateral aviation agreement that will allow for the UK’s CAA. a threefold increase in passenger and cargo flights between those countries. The recent financial stress on India’s airline industry has caused a lot of con- Canada’s transport minister H.E. Jean-C. Lapierre and international trade min- cern in the government. ister H.E. Jim Peterson announced the agreement. The high-profile bankruptcy of Kingfisher Airlines has left many employees and Source: ATW debtors in a lurch. The draft legislation defining the new regulator emphasizes consumer protec- tion and deals with the impact of financial stress on air safety. The bill is sub- ject to parliamentary approval. Source: Flightglobal

Daily news on www.aaco.org Issue 77 - Aug. 2013 41 Global Arab Aviation AN AVIATION MARKET IN FOCUS: UAE The UAE Domestic Market by Seat Capacity Deployed The United Arab Emirates • Population: 7.89 million • Land area: 83,600 km2 • Number of passengers in 2012: 40.08 million passengers • Number of commercial airports: 8 airports • UAE-based airlines: Emirates; Etihad Airways; Air Arabia; Rotana Jet; Maxi- mus Air; RAK Airways; and flydubai Traffic Share between UAE and Other Regions in 2012 3% 5% 8% 32% Source: AACO, Innovata’s FlightMaps Analytics June 2013 Arab world (Int'l) Mid Asia Top 10 routes by seat capacity to, 18% Route Seat Capacity* Europe from, and within UAE in June 2013 Australasia Doha - Dubai 347,412 The top 10 routes on the left account- Americas Dubai - London 336,444 ed for 21.28% (2.1 million seats) of the Sub Saharan Africa Dubai - Kuwait 244,990 total seat capacity scheduled to, from Dubai - Riyadh 216,276 and within the UAE in June 2013. 34% Around 1.78 million seats were de- Dubai - Jeddah 195,657 Source: AACO, IATA ployed between the UAE and the Aviation Policy: Dubai - Mumbai 171,780 following countries: India (612,424 - UAE General Civil Aviation Authority (http://www.gcaa.gov.ae) is the gov- Dubai - Karachi 158,146 seats), Saudi Arabia (409,342 seats), ernmental body responsible for civil aviation. Delhi - Dubai 146,970 United Kingdom (311,057 seats), Qatar - The UAE has air services agreements with over 160 countries, of which (228,378 seats), and Pakistan (222,584 122 are open skies or fully liberal arrangements. Bahrain - Dubai 146,454 seats). - The UAE has ratified the Damascus Convention. Dubai - Muscat 144,750 UAE aviation market links 220 cities worldwide* Source: AACO, Innovata’s FlightMaps Analytics * This includes seat capacity in both directions Airline Seat Capacity Emirates (EK) 4,373,687 Top 10 airlines operating by seat ca- pacity to, from, and within the UAE in Etihad Airways (EY) 1,271,678 June 2013 Flydubai (FZ) 880,173 The top 10 airlines on the right offered Air Arabia (G9) 643,250 almost 8 million seats (80.6% of the Qatar Airways (QR) 173,022 scheduled seat capacity) to, from, and within the UAE in June 2013. Saudia Airlines (SV) 154,958 Air-India Express (IX) 151,404 Jet Airways (9W) 121,555 Qantas (QF) 111,600 Air India (AI) 111,078 Source: AACO, Innovata’s FlightMaps Analytics Source: AACO, Innovata’s FlightMaps Analytics June 2013 * For a detailed view, please click on the image Daily news on www.aaco.org Issue 77 - Aug. 2013 43 Global Arab Aviation

WORLD NEWS ICAO, IMO and WCO strengthen key ties promoting global supply chain -se curity: The Secretaries General of the International Civil Aviation Organization European Commission invests USD 793 million in new research to unblock (ICAO), International Maritime Organization (IMO) and the World Customs congestion in Europe’s airspace:The European Commission has announced Organization (WCO) met at IMO headquarters in London to enhance collabo- USD 793 million of new funding to unblock congestion in Europe’s airspace. ration between their organizations on aviation, border and maritime security The Commission is looking to head off a capacity crunch as the number of and facilitation. flights is forecast to increase by 50% over the next 10-20 years. The goal is to Mr. Raymond Benjamin (ICAO), Mr. Koji Sekimizu (IMO) and the WCO’s Mr. develop the new technology needed to deliver Europe’s Single Sky – the am- Kunio Mikuriya welcomed the opportunity for a strategic dialogue on supply bitious project to reform Europe’s airspace, doubling capacity and halving air chain risk management issues that cut across the mandates of the internation- traffic management costs. al organizations. ICAO and the IMO perform their roles as specialized agencies of the United Nations, while the WCO is an independent intergovernmental Results of first IATA NDC trials to be known this fall:IATA expects to be able body. The three international organizations also reviewed progress toward to release initial results from up to five pilot programs of its NDC at the end of harmonizing their respective international frameworks for aviation, border October at its World Passenger Symposium in Dublin. IATA has two NDC pilot and maritime supply chain security and facilitation. programs running, each involving at least one airline, IT provider and travel Source: ICAO agency, and is in the planning stages for another two or three pilots. Oil prices could reach USD 115 range by year-end: Barclays Director of Com- Inmarsat announce first flight for passenger Wi-Fi connectivity with a -Chi modity Risk Management Mr. Andy Bookas expects the price of Brent oil to nese airline: Inmarsat announced that the first flight for a Chinese airline reach about USD 115 a barrel by the end of 2013. equipped with passenger Wi-Fi connectivity internet access took place on 3 July, on an Air China A330 flying from Beijing to Chengdu. The aircraft used In- ICAO predicts continued traffic growth through 2015: World scheduled air marsat’s SwiftBroadband service provided by Inmarsat’s Chinese partner MCN. passenger traffic grew by 4.9% in 2012, reaching 5.4 trillion passenger-kilome- ters performed (PKPs) and is expected to increase by 4.8%, 5.9% and 6.3% in Airbus & Boeing deliver total of 315 aircraft in Q2: Airbus delivered 151 air- 2013, 2014 and 2015, respectively, according to the International Civil Avia- craft in the second quarter of 2013, consisting of 119 A320 family aircraft, 28 tion Organization (ICAO). The 4.9% growth in PKPs (international and domestic A330s and four A380s. Boeing made 164 commercial aircraft deliveries during services combined) recorded by airlines of the 191 Member States of ICAO the second quarter, comprised of 111 737 NGs, six 747s, eight 767s, 23 777s was significantly lower than the 6.6% increase posted in 2011. The number of and 16 787s. In May, Boeing resumed deliveries of the 787 Dreamliner, which passengers grew by some 4.7% to almost 3 billion, while departures were up was grounded in January. The manufacturer continued to produce and store 0.7% to 31.2 million globally. ICAO expects world scheduled air traffic, in terms the aircraft through the investigation into battery-related problems. of PKPs, to grow by 4.8% in 2013, close to the growth rate recorded in 2012. Of Airbus’ deliveries, 56 went to the Asia/Pacific region, 39 to Europe, 10 to Air Traffic Medium-Term Forecasts to 2015 (International and Domestic) Africa/Middle East, 13 to Latin America/Caribbean and 33 to North America. Traffic - Passenger-kilometres performed (PKPs) Lessor companies topped the list of Airbus deliveries, with AWAS and GECAS Annual Growth Rates (%) each receiving seven A320s. The A320 dominated deliveries with 89 aircraft, Region of State’s AOC followed by 25 A321s. Four A380s were delivered, all to Emirates Airline. Holders History Forecasts Of Boeing aircraft, 70 went to the Asia/Pacific region, 29 to Europe, 12 to -Af 2011 2012* 2013 2014 2015 rica/Middle East, nine to Latin America/Caribbean, 43 to North America and Europe 9.5 3.9 4.4 5.5 6.2 one to an unidentified customer. American Airlines took delivery of 12 aircraft, receiving nine 737-800s and three long-range 777-300ERs. China Southern Africa 0.9 4.2 5.2 5.7 6.0 received nine 737-800s and one 787-8. There were a total of 94 737-800 deliv- Middle East 9.2 13.7 10.2 11.2 10.8 eries to 35 separate air carriers and lessors in 20 countries. Asia / Pacific 7.1 6.4 5.5 6.4 6.8 Of the 16 787 deliveries, All Nippon Airways and charter airline TUI Travel PLC North America 2.4 1.3 2.3 3.3 3.8 each received three of the aircraft; British Airways, LOT Polish Airlines and Japan Airlines received two each, and Air India, China Southern Airlines, Qatar Latin America / Caribbean 11.1 8.6 7.6 8.7 8.0 Airways and lessor ILFC each took delivery of one Dreamliner. Source: ATW World 6.6 4.9 4.8 5.9 6.3 * preliminary figures Daily news on www.aaco.org Issue 77 - Aug. 2013 45 Global Arab Aviation

According to IHS/Global Insight, a major economic forecasting organization, YTD 2013 vs. YTD RPK Growth ASK Growth PLF world Gross Domestic Product (GDP) at Purchasing Power Parity (PPP) in real 2012 terms will grow at 3.1% during 2013, up from 3.0% last year. International 4.8% 4.0% 78.5 In the first half of 2013, the European Union (EU) remained mired in recession, while most other key economies grew at lower-than-expected rates. Results Domestic 4.6% 3.7% 79.7 for the second half of the year should improve, given the impressive resilience Total Market 4.8% 3.9% 79.0 of the US economy, the economic recovery in Japan and the stabilization of Eurozone financial markets. International markets analysis in detail Despite regional turmoil and a pessimistic short-term economic outlook, International air travel expanded strongly, up by 5.9% in June compared to a the airlines of the Middle East should continue to register the fastest traffic year ago. June capacity grew in line with this (5.7%) resulting in a June interna- growth in terms of PKPs, with a 10.2% increase over 2012. This forecast is tional load factor of 81.4%. based on the strong performance of its largest air carriers in gaining market • European carriers recorded 4.7% growth over the previous June. share on international routes outside of the Region. Capacity increased by 3.4% pushing load factors to 83.2%. The airlines of Latin America/Caribbean, Asia/Pacific and African Regions are • Asia-Pacific airlines’ grew by 5.5% on international routes, slightly expected to grow at 7.6, 5.5 and 5.2% in 2013, respectively. Scheduled passen- behind the 6.7% growth in capacity. The load factor stood at 79.0%, the ger air traffic in Europe and North America should increase by 4.4% and 2.3% lowest among the major regions. Slower than expected economic growth in 2013, respectively, leading to a slightly higher share of world traffic for Euro- in China during the first half of 2013 coupled with a decline in both trade pean carriers than for North American operators. The Asia/Pacific Region will and export orders are negatively impacting travel across the region. remain the largest market. Nonetheless, Asia Pacific carriers did account for nearly half of the May Current expectations of a 4.0% (2014) and 4.5% (2015) annual GDP at PPP to June growth in RPKs. growth rate for the world economy over 2014–2015 should translate into • North American airlines’ grew 3.4% in June year-on-year, ahead of world air traffic growth of 5.9% and 6.3%, respectively. the 3.0% growth in capacity. As a result of continued tight capacity man- Source: ICAO agement, the region recorded the highest load factor (87.4%). The June performance was a break from the basically sideways growth of just 1.9% IATA Figures - Robust air passenger growth in June: The International Air over the first half of the year. It is unlikely that June will mark the start of Transport Association (IATA) released June passenger demand figures showing a step change in the growth trend. year-on-year growth of 6.0%. The robust growth, measured in revenue pas- • Middle East carriers expanded 12.1% compared to a year ago. This senger kilometers (RPK), is ahead of the 4.8% demand growth reported over was slightly below the 13.4% capacity expansion resulting in a load factor the first six months of 2013 compared to the same period in 2012. It is also of 78.4%. The demand for new routes to emerging markets in Africa and ahead of the 5.6% expansion in capacity for June over the previous year. This Asia has fuelled the growth of the Gulf hubs. pushed the passenger load factor to 81.7%. • Latin American airlines recorded growth of 8.7% in June, ahead of While the strong growth trend was reflected in all regions it should be noted the 7.7% capacity growth. The region’s load factor stood at 79.2%. The that Asia-Pacific airlines were responsible for half of the increase in RPKs from June performance was boosted by strong business-related demand, as May to June. Due to the volatility of Asia-Pacific performance it is too early to the region posted the strongest trade growth of any region in the second say if this acceleration marks a trend for the rest of the year. quarter. European airlines were another highlight of the month. They reported a • African airlines’ benefitted from strong domestic economic growth second consecutive month of solid growth (4.8%) reflecting an easing in- re in key markets such as Ghana, Nigeria, Ethiopia and the Democratic cessionary conditions in the Eurozone and an improvement in business and Republic of Congo, to post growth of 11.2%. Although African airlines’ consumer confidence. And emerging markets were once again the strongest load factors (70.7%) still lag the global average by around ten percent- performers, particularly Africa (10.8%) and the Middle East (11.0%). age points, they have made consistent progress to close the gap this June 2013 vs. June year, and in June, improved their load factor by almost three percentage RPK Growth ASK Growth PLF 2012 points compared to June 2012. International 5.9% 5.7% 81.4 The bottom line: The July IATA Airline Business Confidence index reported that 61.5% of respon- Domestic 6.1% 5.2% 82.0 dents expect an improvement in demand. But only half (30.8%) expect any Total Market 6.0% 5.6% 81.7 improvement in yields over the next 12 months. Source: IATA Daily news on www.aaco.org Issue 77 - Aug. 2013 47 OUR PARTNER AIRLINES Partner Airlines

SPAIN TRAFFIC The Spanish air transport market shrank by (0.4%) in May 2013 over May 2012 in terms of number of passengers traveling to, from and within Spain, and is expected to Shrink in June 2013 by (2.7%) compared to June 2012. LATEST NEWS 2nd quarter results: International Consolidated Airlines Group (IAG) today Monthly Passenger Numbers' Change in the Spanish Air Transport Market (August 2, 2013) presented Group consolidated results for the six months to Jul 12 to Jun 13* comapred to same month in previous year June 30, 2013. ͳ Second quarter operating profit €245 million (2012: loss €4 million) be- 10% fore exceptional items, based on strong passenger unit revenues and non- 5% fuel unit cost improvements. 0% ͳ Operating loss for the half year €33 million (2012: loss €253 million) be- fore exceptional items. -5% ͳ Revenue for the half year up 2.1% to €8,707 million including 1.7% ad- -10% verse currency impact. -15% ͳ Passenger unit revenue for the half year up 2.8% (4.6% at constant cur- rency), on capacity increase of 1.2%. -20% ͳ Cash €3,627 million at June 30, 2013, up €718 million including €549 mil- -25% lion of Vueling cash. Traffic statistics June 2013: ͳ In July 2013, Group traffic measured in Revenue Passenger Kilometres increased by 6.6% versus July 2012 (down 2.8% on a pro-forma basis); International Domestic Group capacity measured in Available Seat Kilometres rose by 8.5% (down 1.7% on a pro-forma basis). Source: AACO, IATA *Estimated ͳ Group premium traffic for the month of July increased by 0.4% compared Looking at the Spanish market traffic flows, the international European- mar to the previous year, on falling capacity. ket represented in May 2013 74.0% of the total market, and is expected to ͳ Traffic in long haul is still influenced by the Group policy to improve unit decrease to 68.5% in June 2013. Traffic between the Arab world and Spain revenues through yield, rather than load, as well as by the timing of Ra- represented 1.6% of the total Spanish market in May 2013, and is expected to madan. increase to 2.0% in June 2013. ͳ Underlying market conditions remain unchanged from those described at Passenger Numbers' Change in the Spanish Air Transport Market the publication of Quarter Two results on 2 August. Mar13-May13 & Apr13-Jun13* compared to same period in previous year Strategic developments: 30% ͳ On 2 August, IAG announced that the delisting offer for the 9.49 per cent 25% of Vueling shares that the IAG Group did not own was accepted by 73.86 20% per cent of the shares subject to the offer. Following settlement, IAG 15% Group will own 97.52 per cent of Vueling which will be delisted from the 10% Spanish stock exchanges. 5% ͳ British Airways has received the first of its 12 Airbus A380 firm orders. A 0% further two A380s will be delivered in 2013 plus five in 2014. The aircraft Domestic -5% With Arab will begin commercial long-haul flights to Los Angeles from 24 September. With With -10% World With the Australasia Europe With Mid The next two routes after Los Angeles will be Hong Kong (October 2013) Americas with Sub -15% Asia and Johannesburg (February 2014). Sahran ͳ Iberia’s commercial initiatives continue with the retrofit of A340-600s on -20% Africa routes to Latin America. In addition, it launched a new baggage tag on- Mar13-May13 line service, becoming the first carrier worldwide to offer this facility and Apr13-Jun13* updated its website. Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 77 - Aug. 2013 51 Partner Airlines

In May 2013, Ryanair was the biggest carrier operating to, from and within Looking at the UK market traffic flows, the international European market Spain by number of passengers, boarding 2.84 million pax, which represented represented in May 2013 68.0% of the total market, and is expected to grow a decrease of (7.0%) over May 2012 operations. to 66.4% in June 2013.Traffic between the Arab world and the UK represented 3.1% of the total UK market in May 2013, and is expected to grow to 3.3% of Top 15 Airlines Operating in the Spanish Market total traffic in June 2013. Airline May-13 Growth Airline May-13 Growth Passenger Numbers' Change in the UK Air Transport Market Mar13-May13 & Apr13-Jun13* compared to same period in previous year FR 2,834,870 (7.0%) LS 242,687 14.3% 14% IB 1,436,897 (15.5%) DY 241,111 79.9% 12% U2 1,157,054 (11.8%) NT 217,878 9.4% 10% AB 917,116 6.9% BA 199,088 37.0% 8% VY 899,743 28.3% AF 190,548 (8.9%) 6% UX 491,332 (0.8%) DE 187,440 (3.4%) 4% ZB 354,311 38.2% LX 167,804 7.6% 2% LH 317,432 11.9% Grand Total 12,002,069 (0.35%) 0% Domestic Source: AACO, IATA -2% With Arab With With World With the UK TRAFFIC -4% Australasia Europe With Mid Americas with Sub Asia The UK air transport market expanded by 5.6% in May 2013 over May 2012 -6% Sahran Africa in terms of number of passengers traveling to, from and within the UK, and is Mar13-May13 expected to Shrink in June 2013 by (1.0%) compared to June 2012. Apr13-Jun13*

Monthly Passenger Numbers' Change in the UK Air Transport Market Source: AACO, IATA *Estimated Jul 12 to Jun 13* compared to same month in previous year In May 2013, easyjet was the biggest carrier operating to, from and within the UK by number of passengers, boarding 3.31 million pax, which represented a 8% growth of 4.9% over May 2012 operations. 6% Top 15 Airlines Operating in the UK Market 4% Airline May-13 Growth Airline May-13 Growth 2% 0% U2 3,312,599 4.9% KL 379,573 10.1% -2% FR 2,950,695 12.0% LH 375,940 7.0% -4% BA 2,405,216 8.7% EK 288,306 20.9% -6% ZB 639,668 32.4% W6 261,291 2.2% -8% BE 623,856 (4.3%) AF 230,516 14.0% LS 443,161 11.9% DY 215,688 56.1% VS 424,232 5.6% UA 172,222 0.1% EI 398,964 12.7% Grand Total 16,033,904 5.9% International Domestic Source: AACO, IATA Source: AACO, IATA *Estimated

Daily news on www.aaco.org Issue 77 - Aug. 2013 53 Partner Airlines

The application offers a convenient booking and secure payment process via credit card and also allows customers to easily save and access their booked itinerary. Other salient features include real time flight status with the option LATEST NEWS to search using the flight number, airport or route, registration for receiving Jet Airways wins prestigious Monitor award in :Jet Airways has real time flight status notification, and the ability to share special offers and been adjudged the ‘Best In-flight Meal in Economy for 2012’ at the Monitor news updates with other customers on BlackBerry® Messenger (BBM™). Awards held in , Bangladesh. Renowned for the warmth and hospitality The application has been awarded the Built for BlackBerry certification by of its acclaimed in-flight service, Jet Airways emerged victorious from a field BlackBerry- a symbol of assurance for quality, performance and security. comprising of several leading airlines. Jet Airways was also nominated as one The Jet Airways mobile app is available as a free download on BlackBerry® of the three airlines for the ‘Best Short-Haul Airline’. World™. Monitor awards is judged annually and the most prestigious Airline awards in Bangladesh. The winner was selected by a panel of judges and also feedback Jet Airways and HDFC Bank join hands to launch ‘JetPrivilege-HDFC Bank from over 2000 frequent travelers from Bangladesh. World Debit Card’: Jet Airways has enhanced its partnership with HDFC Bank, the country’s second largest private sector bank, by launching India’s first Pre- Jet Airways enters into a reciprocal frequent flyer partnership with Air New mium Debit card, the ‘JetPrivilege-HDFC Bank World Debit Card’. Zealand: Jet Airways has entered into a reciprocal frequent flyer partnership The feature-rich debit card will allow users to earn JPMiles on all daily pur- with Air New Zealand. chases in stores or online, in addition to purchases on Jet Airways. These JP- Air New Zealand an international and domestic airline group provides flights Miles can be redeemed for free flights to over 600 destinations. within New Zealand, to and from Australia, the South West Pacific, Asia, North The JetPrivilege HDFC World Debit Card offers card members 3000 JPMiles on America and the United Kingdom. enrollment during the first year, in addition, the card members can earn 2000 JetPrivilege members may now earn and redeem their JPMiles on the entire JPMiles on renewal. network of Air New Zealand marketed and operated flights. Similarly, Air New As Debit Card usage gains popularity, earning JPMiles now becomes possible Zealand’s Airpoints™ members will be able to accrue and redeem Airpoints to millions of HDFC Bank account holders across its extensive network in India. Dollars™ on the entire network of Jet Airways and JetKonnect marketed and Thus to earn JPMiles, the bank’s customers can now apply for the new JetPrivi- operated flights. lege HDFC Bank World Debit Card in a hassle-free and convenient manner. With the addition of Air New Zealand, JetPrivilege members will be able to earn and redeem their miles across 24 airline partners. Jet Airways enhances regional connectivity with the introduction of new ATR flights from Bengaluru to Vijayawada, Trichy via Kochi: Jet Airways an- nounced that it enhanced domestic connectivity with fresh air links to Vijay- awada and Trichy in the South as from 25 July. The airline, announced the introduction of daily flights between Bengaluru and Vijayawada, and two addi- tional services a day to Mangalore and an afternoon service to Trichy (Tiruchi- rapalli) via Kochi six days a week with effect from July 25, 2013. Jet Airways launches its mobile airline application for BlackBerry 10: Jet Air- ways announced the launch of its mobile application exclusively designed for BlackBerry® 10 smartphones. The mobile application allows customers to con- veniently book tickets, check flight status, manage their JetPrivilege account and enjoy special promotional offers, among other features. The native mobile application is now available for download on the BlackBer- ry® World™ storefront for BlackBerry® Z10 and BlackBerry® Q10 smartphones. The Jet Airways mobile application leverages the BlackBerry 10 platform’s in- novative features, design and gesture support making it an extremely useful tool for customers through every part of their journey.

Daily news on www.aaco.org Issue 77 - Aug. 2013 55 Partner Airlines

INDIA TRAFFIC In May 2013, Indigo Airlines was the biggest carrier operating to, from and The Indian air transport market grew by 4.7% in May 2013 over May 2012 in within India by number of passengers, boarding 1.71 million pax, which repre- terms of number of passengers traveling to, from and within India, and is ex- sented an increase 23.60% over May 2012 operations. pected to Shrink in June 2013 by (5.9%) compared to June 2012.

Monthly Passenger Numbers' Change in the Indian Air Transport Market Top 15 Airlines Operating in the India Market Jul 12 to Jun 13* comapred to same month in previous year Airline May-13 Growth Airline May-13 Growth 6E 1,708,655 23.60% G9 132,363 12.44% 10% AI 1,270,950 12.27% QR 129,198 (1.06%) 9W 1,183,129 (17.34%) SQ 121,899 10.96% 5% SG 1,133,146 15.15% TG 104,678 (9.96%) 0% G8 463,826 55.41% WY 101,149 29.71% -5% EK 403,320 (6.20%) SV 98,608 7.10% S2 368,894 (2.46%) UL 95,182 (6.62%) -10% IX 215,807 22.48% Grand Total 8,666,383 4.70% -15% Source: AACO, IATA

International Domestic Source: AACO, IATA *Estimated Looking at the Indian market traffic flows, the domestic market represented in May 2013 59.9% of the total market, and is expected to shrink to 54.6% in June 2013. Traffic between the Arab world and India represented 16.2% of the total Indian market in May 2013, and is expected to grow to 19.1% of total traf- fic in June 2013. Passenger Numbers' Change in the Indian Air Transport Market Mar13-May13 & Apr13-Jun13* 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 -8% Africa

Mar13-May13 Apr13-Jun13 Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 77 - Aug. 2013 57 Partner Airlines

Looking at the Turkish market traffic flows, The European market (interna- tional traffic between Turkey & Europe) was the biggest market. It accounted for 44.4% of May 2013 traffic, and is expected to shrink to 39.3% in June 2013. The domestic market was the second biggest market, accounting for 37.5% of May 2013 traffic, and is expected to grow to 41.6% in June 2013. Traffic- be tween the Arab world and Turkey represented 7% of the total Turkish market LATEST NEWS in May 2013, and is expected to grow to 7.7% of total traffic in June 2013. An international photo competition by Turkish Airlines’ In-flight Magazine Skylife: The in-flight magazine of Turkish Airlines, Skylife is holding a photo Passenger Numbers' Change in the Turkish Air Transport Market competition entitled “Bridges and People,” which invites all photography -lov Mar13-May13 & Apr13-Jun13* compared to same period in previous year ers to submit their photos telling of the bridges built between people, cul- 35% tures, and civilizations. 30% Those wishing to participate in the competition can apply online over yarisma. 25% skylife.com/en and upload their photos to the website. Online applications for this competition will start on July 1st, 2013 and continue until November 16th, 20% 2013. 15% 10% TURKEY TRAFFIC 5% The Turkish air transport market in May 2013 grew by 20.3% over May 2012 0% Domestic in terms of number of passengers traveling to, from and within Turkey, and is With Arab With expected to grow in June 2013 by 14.4% compared to June 2012. World With Australasia With the Europe Int'l Mar13-May13 Americas With Mid Asia with Sub Monthly Passenger Numbers' Change in the Turkish Air Transport Market Apr13-Jun13* Sahran Jul 12 to Jun 13* comapred to same month in previous year Africa

80% Source: AACO, IATA *Estimated

60% In May 2013, Turkish Airlines was the biggest carrier operating to, from and within Turkey by number of passengers, boarding 2.76 million pax, growing by 40% 24.45% over May 2012.

20% Top 15 Airlines Operating in the Turkey Market 0% Airline May-13 Growth Airline May-13 Growth TK 2,758,952 24.45% X3 74,653 2.48% PC 961,515 41.97% ZB 70,091 25.48% 8Q 225,305 26.44% U2 68,177 5.15% XQ 191,237 7.15% SU 61,960 3.32% International Domestic KK 156,852 9.06% HV 37,210 12.33% Source: AACO, IATA *Estimated AB 115,314 (0.03%) J2 34,747 31.08% LH 95,551 (2.81%) EK 33,880 16.53% DE 89,304 (3.51%) Grand Total 5,653,282 20.41% Source: AACO, IATA

Daily news on www.aaco.org Issue 77 - Aug. 2013 59 OUR INDUSTRY PARTNERS NEWS Our Partners News

Big data has the potential to transform how travel companies deliver services to travellers, according to a major independent global study re- leased in June. The study cautions, however, that the industry is at a ‘big New milestone for best-selling widebody: Airbus has celebrated the delivery of the 1,000th A330. The data crossroads’, and that businesses must make big data an urgent priority in order to truly maximise its aircraft, an A330-300 powered by Rolls-Royce Trent 700 engines, was handed over to Cathay Pacific benefits and ensure a more intelligent and responsive travel experience in the process. Airways at special ceremony in Toulouse. Cathay Pacific together with its sister airline Dragonair is the At the Big Data Crossroads: turning towards a smarter travel experience charts the emergence of new world’s largest operator of the A330, with a total of 56 now in service. technologies and strategies for managing big data, and outlines how big data can be harnessed to focus travel around customer needs and preferences, not industry processes. Flight envelope opened and key systems tests successfully performed: The A350 XWB MSN1 has per- Based on extensive input from Chief Information Officers and big data experts from companies around formed well during the first 92 flight test hours already achieved since its maiden flight on June 14th the world, including Air France-KLM, Cathay Pacific, Eurostar, Facebook, Frontier Airlines, KAYAK, Marri- 2013. The A350 XWB flight test campaign will total around 2,500 flight hours with a fleet of five develop- ott Hotels and Munich Airport, key findings from the study include: ment aircraft. 1. Now is the time to act: Professor Davenport calls on travel firms to start benchmarking their During the first four weeks of the flight test campaign, ten Airbus experimental test pilots have flown maturity against the industry whilst assembling the necessary data science skills and formulating an MSN1 and have collectively put the aircraft through its paces to get to know its handling qualities and overall big data strategy for their organisations. behavior. This early phase of test flights has resulted in the clearance of the entire flight envelope and 2. Big data offers major opportunities for travel companies to improve both the business and expe- initial testing of all key systems. These include: engines, electrics, Ram Air Turbine (RAT), landing gear rience of travel: the benefits of big data include better decision-making, greater product and service and braking, fuel and cabin pressurization as well as a preliminary assessment of the autopilot and auto- innovation and stronger customer relationships that will be delivered by new approaches to custom- land functions. The A350 MSN1 will now undergo routine maintenance and upgrades of its flight test er management, revenue management and internal operations. installation to ready it for the second phase of the flight test campaign which will start in August, while 3. Pockets of innovation using big data are present in the industry today: the study includes exam- the design office will analyze the results of these initial flight tests. ples of how leading travel firms are making use of big data today: from KAYAK’s price flight forecast- Entry into commercial service of the first customer aircraft is scheduled for the second half of 2014. To ing model, which presents customers with the likely change in a flight’s price over a seven-day win- date, Airbus has recorded 678 firm orders for the A350 XWB from 34 customers worldwide. dow, to Air France-KLM’s use of Hadoop as the basis of a group-wide revenue management system. 4. Emerging technologies will be key to the big data evolution: the onset of new open-source soft- Tunisia’s Syphax Airlines orders the A320neo and the A320ceo: Syphax Airlines has confirmed its or- ware for dividing data processing jobs across multiple commodity servers, together with new types of der to buy three A320neo. The order is the first time an African based carrier has ordered the NEO and databases including ‘columnar’ and ‘vertical’ approaches, and emerging programming languages like marks a significant breakthrough for Airbus in one of the world’s fastest developing markets. Syphax Python, Pig and Hive, combine to deliver the potential to harness big data. have also ordered three A320ceo aircraft. The aircraft will be powered by CFM engines. 5. The effective deployment of big data initiatives is not without challenges: the study finds that The airline already operates 2 A319 and 3 A320 aircraft and will shortly commence operating a leased to access the big data opportunity the travel industry must overcome significant challenges, includ- A330-200. ing: data fragmentation across multiple systems; co-existence of both big data and traditional data management architectures; finding and recruiting scarce big data science skills; and managing data British Airways takes delivery of its first of 12 Airbus A380s: British Airways (BA) has become the tenth responsibly and in the interests of all. operator to receive an Airbus A380 after taking delivery of the first of 12 aircraft on order. BA is the first To download a copy of the study, please go to: www.amadeus.com/bigdata UK operator of the A380 and will start to deploy its new flagship aircraft on routes from London Heath- row to Los Angeles and Hong Kong. Amadeus announced that it has reached agreement with Munich and Copenhagen airports to jointly All BA’s A380s will be powered by Rolls-Royce Trent 900 engines. Airbus currently has 262 firm orders for work in the development and implementation of two new airport IT solutions. The products - Amadeus the A380, from 20 customers. Airport Sequence Manager and Amadeus Airport Fixed Resource Optimiser – will form part of Amadeus’ new suite of solutions for airports. For more information about Amadeus and its offering for airport op- easyJet firms up order for 100 A320neo and 35 A320ceo aircraft: Following its shareholders’ approval, erators, please visit www.amadeus.com/airports easyJet has firmed up the purchase of 135 Airbus A320 family aircraft (100 A320neos and 35 A320ceos). The initial agreement was announced earlier in June. Amadeus announced that it has signed a long-term e-Commerce agreement with Air France-KLM. Ama- The agreement was concluded following a thorough technical and economical evaluation. deus’ agreement with Air France-KLM, which is effective worldwide, will see the airline group use Ama- The A320 offers the best productivity, the lowest operating costs, the fastest turnarounds, and best fuel deus’ shopping technology for a further five years across both its domestic and international websites. efficiency of any single aisle aircraft in the 180 seat sector. The renewed partnership will provide Air France-KLM with Amadeus Flex Pricer to power its revenue and Airbus - AACO Partner since 1997 award shopping flows, covering both its Air France and KLM networks, for domestic, regional and long- haul flights. Amadeus - AACO Partner since 2000

Daily news on www.aaco.org Issue 77 - Aug. 2013 63 Our Partners News

Aon is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through our 61,000 colleagues worldwide, we empower results for clients in over 120 countries via innovative and effective risk and people solutions and through ADNOC Distribution is an integrated oil energy company. Founded in 1973, ADNOC Distribution market industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s and distributes petroleum products and services within the United Arab Emirates. As one of the largest best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee government-owned petroleum companies in the Arab Gulf, ADNOC Distribution has grown to become a benefits consulting firm by multiple industry sources. national institution and a major economic driver for the UAE economy. Aon’s aviation team creates effective risk management strategies for clients across the aviation indus- The company is renowned for its innovative and dynamic approach offering a wide variety of petroleum try, blending global expertise with knowledge of how the industry operates locally. No two businesses and natural gas products and services. ADNOC Distribution is committed to providing its customers and are the same and we treat our clients as individuals. Rather than offering off-the-peg insurance and risk strategic partners with reliable products of exceptional quality and services. management programmes, our specialists work across Aon’s divisions to ensure that our clients have the best available coverage for all of their needs. If you are an airport with ground vehicle exposure or ADNOC - AACO Partner since 2002 an airline with IT risks, our aviation team works with other Aon experts to ensure that you get insurance and risk management support that is precisely tailored to your requirements.

We are at the forefront of development of insurance, utilising our vast experience and international in- surance market knowledge to draft, negotiate and implement the most comprehensive and appropriate 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- EgyptAir selects ARINC’s AviNet®: ARINC announced that EgyptAir has ized in air transport consulting, training, management and reengineering signed a contract for ARINC’s AviNet® Airport service to support check-in services. Air France Consulting calls on about 200 highly specialized international experts coming mostly operations using the Amadeus ALTEA Departure Control System (DCS). from Air France and the SkyTeam Alliance who have built a field proven experience and whose compe- This new agreement is in addition to another recent contract award. In March, ARINC announced that it tencies are recognized by the industry. had won a major contract to install its passenger processing solution vMUSE™ at five regional airports in Acting independently with flexibility, Air France Consulting proposes a comprehensive approach on key Egypt including Sharm El Sheikh, Luxor, Aswan, Borg El Arab and Abu Simbel. domains of the air transport such as operations, finance and commercial, maintenance, etc... whether to As part of the latest agreement, ARINC will install new AviNet Airport services in Egypt and throughout make you a diagnostic or audit, to set up new or improved processes driven by proven change manage- the rest of the world where ARINC vMUSE platforms are operational. In addition to the Egyptian airports, ment techniques or define a coaching and training program. Air France Consulting proposes a compre- EgyptAir will use AviNet Airport at nine other airports including Brussels, London Heathrow, Berlin, Man- hensive approach on how to optimize your processes and solve your concerns such as: chester, and Munich in Europe; Dubai and Cairo in the Middle East; Tokyo Narita in Asia; and Toronto in • Safety and security of operations (EASA 145, M, 21, 147, IOSA, JAR Ops and FCL, SMS, ETOPS, North America. In addition to deploying the AviNet Airport service, ARINC will provide turnkey project IOSA Assistance, TRTO, Airline operations organization…) management to deploy new ALTEA client software to connect the airports to the Amadeus ALTEA host. • Drivers to reduce costs and increase revenues (Business Plan, Cost control, Network and Fleet, By providing this end-to-end service, ARINC is able to eliminate a significant portion of the cost as well as Revenue Management Pricing, Customer Relationship Management, E-business solutions, Fuel provide EgyptAir with a single point of contact, helping the airline effectively manage a major upgrade to conservation Program, ETS, Procurement process…) its critical airport operations worldwide. ARINC will continue to manage future ALTEA software updates • Fleet Asset Management (specification, acquisition, lease, sales) and Repair Overhaul activities as part of the agreement. Management (MCC, line maintenance & operational regulatory support, maintenance IT support) • Human resources and risks prevention optimization (Human factors, Crew management, Staff Jeju International Airport selects ARINC to optimize operations: ARINC announced that Jeju Interna- posting, Emergency response plan…) tional Airport will implement ARINC’s vMUSETM technology to help the airport achieve cost savings and Air France Consulting shares the ambitions of its customers through customized solutions, thanks to a gain increased operational flexibility. With the addition of this contract, ARINC now provides its industry- flexible structure ensuring responsiveness and close proximity. For more information, please contact us leading technology and services to all major international airports in South Korea, including the two big- at: Telephone: +33 1 7425 4162, email: [email protected] gest – Incheon and Gimpo International Airports. Air France Consulting - AACO Partner since 2008 ARINC- AACO Partner since 2002

Daily news on www.aaco.org Issue 77 - Aug. 2013 65 Our Partners News

Firefly welcomes its first ATR 72-600:Firefly, Malaysia Airlines’ subsid- iary carrier has taken ownership of its first brand-new ATR 72-600. The aircraft is the first of 20 latest generation firm ATRs, plus 16 options, BOC Aviation leases six Embraer E190 aircraft to KLM Cityhopper: BOC Aviation has signed an operating ordered by Malaysia Airlines in December 2012. Firefly currently operates 12 ATR 72-500s, and with the lease agreement with KLM subsidiary KLM Cityhopper for six Embraer E190 aircraft as part of the KLM arrival of the new ATR 72-600s will almost triple its exclusively ATR 72 aircraft fleet, taking the total to Group’s program to replace KLM Cityhopper’s fleet of Fokker 70 aircraft. The E190 aircraft will be deliv- over 30 aircraft. ered between November 2013 and April 2014. With this significant fleet expansion Firefly will rapidly increase capacity on their domestic network aug- menting flight frequencies on routes to key destinations in Subang, Penang, Kota Bahru and Johor Bahru. BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 225 modern aircraft The airline will also be able to boost their regional offering ensuring its customers better connectivity operated by 56 airlines worldwide. The Company has one of the youngest fleets in the industry with an within the ASEAN network, -specially Indonesia, Thailand and Singapore-, thus reinforcing the position of average owned aircraft age of less than four years. Firefly in these markets and key business routes. The new-generation ATR-600s are equipped with a new full-glass cockpit and feature a high comfort BOC Aviation is 100% owned by Bank of China, one of the largest banks in the world. The Company has layout seating 72 passengers with larger overhead bins. In addition to the performance advantages and achieved USD 1 billion in cumulative net profits under Bank of China. enhanced comfort, these aircraft offer an improved operational flexibility for the airline. Malaysia’s MASwings takes delivery of its first ATR 72-600: Malaysia Airlines’ regional subsidiary MAS- BOC Aviation will be celebrating its 20th anniversary this year. wings took delivery of its very first ATR 72-600 aircraft. The aircraft was delivered in a handover ceremo- BOC Aviation - AACO Partner since 2003 ny held at the ATR’s facilities in Toulouse and was witnessed by Datuk Ik Pahon, Permanent Secretary, Ministry of Tourism Sarawak and Chairman of BIMP EAGA - Sarawak Chapter. Malaysia Airlines and ATR inked a deal in late 2012 for the purchase of a total of 36 ATR 72-600s (20 firm orders plus 16 options) to be operated by the airline’s regional subsidiaries, MASwings and Firefly. Based on the agreement between ATR and Malaysia Airlines, MASwings –which currently operates a fleet of 10 ATR 72-500s-, will introduce 9 ATR 72-600s until 2017, mostly for further expanding its total fleet. ATR - AACO Partner since 1998 AWAS delivers A330-200 aircraft to new customer Windrose Airlines:AWAS an- First Boeing 787-9 Dreamliner nounced that it has placed one A330-200 widebody passenger aircraft on lease features new Boeing livery: Boeing to Windrose Airlines. This aircraft comes from AWAS’ existing aircraft portfolio. continues to make progress on the Windrose Airlines is a well-established Ukrainian charter operator based in Kiev serving pan-European, first 787-9 Dreamliner, which also has become the first 787 to don South American, and Asian tourist destinations. the new Boeing Commercial Airplanes livery. The airplane has just AWAS adds Travel Service as a new customer with placement of one new 737-800 aircraft:AWAS an- rolled out of the paint hangar. nounced that it entered into an agreement with Travel Service airlines to place one new 737-800 aircraft This refreshed look for the Boeing family began with the 747-8 and on long-term lease with the airline. This aircraft will come from AWAS’ existing new order pipeline. evolved with the 737 MAX. The new livery retains many of the fea- AWAS to place one new 737-800 aircraft with new customer Sunwing Airlines:AWAS announced that tures of the original 787-8 livery, adding a prominent number on it has entered into an agreement with Sunwing Airlines to place one new 737-800 aircraft on long-term the tail to help distinguish among models within the same product lease with the airline. This aircraft will come from AWAS’ existing new order pipeline. family. The 787-9 will complement and extend the 787 family, offering airlines the ability to grow routes AWAS acquires three aircraft portfolio of new passenger aircraft:AWAS announced that it has acquired opened with the 787-8. With the fuselage stretched by 20 feet (6 meters), the 787-9 will carry 40 more a three aircraft portfolio from another lessor. Cebu Pacific joins AWAS as a new customer with the deliv- passengers an additional 300 nautical miles (555 kilometers), with 20 percent less fuel use and 20 per- ery of their first widebody, a new A330-300. The other aircraft involved in this transaction are a 737-800 cent fewer emissions than similarly sized airplanes. The 787-9 leverages the visionary design of the 787- leased to Qantas and an A320-200 to Spirit Airlines, both existing AWAS customers. 8, offering the features passengers prefer such as large, dimmable windows, large stow bins, modern LED AWAS delivers third, new 737-800 passenger aircraft to Solaseed Air:AWAS announced that it has lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride. delivered a third new Boeing 737-800 passenger aircraft from its new order pipeline to Solaseed Air in Boeing is on track to roll out and fly the 787-9, currently in final production, in late summer. First delivery Japan. to launch customer Air New Zealand is set for mid-2014. AWAS delivers second new A320 aircraft with factory-fitted sharklets to Vueling:AWAS announced that Boeing, Turkish Airlines finalize order for five additional 777-300ERs: Boeing and Turkish Airlines have it has delivered one new A320 passenger aircraft to Vueling, the Spanish low cost airline. This second announced an order for five 777-300ER airplanes, valued at USD 1.6 billion at list prices. The Turkish car- A320 delivery from AWAS is from the lessor’s existing new order pipeline and is factory-fitted with ad- rier has exercised options on five 777-300ERs that were first announced in December 2012 as part of a vanced Sharklets. previous firm order for 15 777-300ERs. Turkish Airlines now has 20 777-300ERs on order from Boeing. AWAS - AACO Partner since 2013 Boeing- AACO Partner since 1998

Daily news on www.aaco.org Issue 77 - Aug. 2013 67 Our Partners News

CHAMP Cargosystems monitors over 50% of Cargo 2000 shipments: CHAMP’s Traxon Engine Lease Finance Corporation (ELFC) extended its position CDMP (Cargo Data Management Portal) is an intelligent and intuitive tool to mea- as the world’s largest independent aero-engine lessor in 2012 sure the performance of air cargo processes according to Cargo 2000 standards and with another record year of spare engine portfolio growth. beyond. The service empowers airlines to initiate process improvements. It helps to We maintained keen focus on spare engine support for our numerous customers in the MENA region identify process weaknesses and pinpoint changes that are needed to enhance perfor- with further growth in short and long term engine lease support to airline members of AACO. mance and customer satisfaction. We are very proud to play a support role in 2013 in the success of MENA airlines, large and small and will Traxon CDMP connects different participants of the air cargo supply chain and thus increases transpar- continue to offer our products during the coming year: ency. Time and money spent on manual tracking and tracing of airfreight shipments and the manage- ment of service failures can be reduced. Fewer service incidents have to be dealt with enabling planning • Shop Visit Cover – leasing of our spare engines into airlines to cover short term scheduled and workloads to be carried out more effectively. Traxon CDMP drives “flown as planned” and “delivered and unscheduled engine removals; as promised” performance. This results in cost savings and a better service quality leading to reduced • Long term Engine provision – leasing our engines over several years to provide our airline claims and creating opportunities for revenue growth. customers with cost efficient operation of spare engines, removing the capital intensive demand of spare engine acquisition; Traxon CDMP is CHAMP’s solution for straightforward Airport-to-Airport (A2A) and Door-to-Door (D2D) • Purchase-leaseback of engines owned by airlines. With the backing of our parent com- Cargo 2000 certification. pany Bank of Tokyo-Mitsubishi UFJ. Ltd. we have the financial resources required to provide clear financial and operational benefits for our customers. CHAMP is monitoring over 50% of Cargo 2000 shipments and recently engaged in the specifications -re write and the Master Operating Plan review group. We have a wealth of experience to share – without obligation. CHAMP - AACO Partner since 2010 For more information, please contact Senior Vice President Julian Jordan at e-mail: [email protected]

ELFC- AACO Partner since 2003

GE Capital Aviation Services delivers leased Airbus A320 to new customer Tianjin Airlines:GECAS an- Pegasus selects LEAP-1A engine for A320neo fleet:Pegasus Airlines has selected CFM International’s nounced delivery of a leased Airbus A320 to new customer Tianjin Airlines to expand the carrier’s fleet. advanced LEAP-1A engine to power its new fleet of 75 firm, 25 option A320neo/A321neo aircraft. The Tianjin Airlines operates a fleet of more than 75 aircraft to some 60 destinations in China. airplane order was announced in December 2012 and the airline is scheduled to begin taking delivery of GECAS was the first commercial aircraft lessor in China and currently leases aircraft to 23 different Chi- the aircraft in 2016. nese customers, including Tianjin. GECAS maintains a strong local presence with established offices in Beijing, Hong Kong and Shanghai. The Istanbul-based low cost airline has been a CFM customer since it began operations in 1990. Today, the airline operates a fleet of 43 CFM-powered Boeing 737 aircraft on scheduled routes to 72 domestic GE Capital Aviation Services delivers leased Airbus A321 to Turkey’s Atlasjet: GECAS announced deliv- and international destinations throughout Europe, Russia, Central Asia, Middle East and Africa. ery of a leased Airbus A321 to Turkish airline Atlasjet Havacilik A.S. to help expand the carrier’s fleet. Atlasjet operates a fleet of 15 aircraft to some 20 domestic and international destinations. The foundation of the LEAP engine is heavily rooted in advanced aerodynamics, environmental, and ma- terials technology development programs. It will provide 15% better fuel consumption and an equivalent GECAS - AACO Partner since 2003 reduction in CO2 emissions compared to today’s best CFM engine, along with a 50% reduction in oxides of nitrogen emissions, and up to a 15 decibel reduction in noise. All this technology brings with it CFM’s legendary reliability and low maintenance costs. CFM - AACO Partner since 1998

Daily news on www.aaco.org Issue 77 - Aug. 2013 69 Our Partners News

GlobalCollect releases Global MMO Games Market Report on pay- Jeppesen JetPlan flight planning engine enhanced for ments, intelligence and trends: GlobalCollect announced the pub- European operations:Jeppesen, a part of Boeing Digital lication of its report “The Global MMO Games Market: Payments, Aviation, recently completed upgrades to its JetPlan flight planning engine to enhance flight planning Intelligence and Trends.” The original research is based on GlobalCollect’s extensive gaming transaction capabilities for business and commercial aviation operators, particularly within Europe. data as well as data from international gaming market research firm Newzoo. Over 170 countries are Enhanced JetPlan European Route Availability Document (ERAD) and route optimization functions work represented in the data that contains tens of millions of transactions per quarter. This second report in to quickly comply with Eurocontrol routing requirements and determine flight plans that maximize -ef the GlobalCollect Video Gaming Payments Knowledge Series explores many important aspects of the ficient fuel consumption and flight scheduling. The Jeppesen JetPlan engine powers Jeppesen’s flight business of Massively Multiplayer Online Role-Playing Games. Key findings include: planning solutions, including the JetPlanner application and FlitePlan Online tools. 1. MMO games will account for USD 14.9 billion, or 21.2%, of global gaming revenues in 2013. The enhanced Jeppesen JetPlan engine allows for increased acceptance of optimized route plans by the 2. The Asia Pacific region (APAC), which is now the largest games market in the world, generates 36% Integrated Initial Flight Plan Processing System (IFPS) that are fully compliant with Eurocontrol require- of global game revenues, but accounts for an unprecedented 64% of MMO revenues. ments. Optimized routes determined by the JetPlan engine also are now compliant with other European 3. GlobalCollect’s top 16 MMO growth countries (Q1 2012 vs Q1 2013) each belong to the APAC or efficiency standard organizations, including the UK Standard Route Document (SRD) and the Airspace LATAM region. Top growth country Malaysia grew by an unprecedented 121% over the past year, Use Plan/Updated Airspace Use Plan (AUP/UUP). with Thailand growing by 104% and The republic of Korea by 100% (based on GlobalCollect transac- To maximize efficiency, the JetPlan engine calculates the sum of fuel, enroute charges and time to tion volumes). (See infographic below) achieve cost-effective route plans. Altitude and other air traffic control restrictions are also considered by 4. The top 10 countries by average transaction value in video gaming transactions all come from Eu- JetPlan as part of the process to create efficient flight plans. Overall, the enhanced JetPlan ERAD func- rope and the Middle East. tions ensure compliance with the policies, procedures and descriptions for route and air traffic orienta- 5. Consoles remain the largest gaming segment worldwide but will shrink by (1%) in 2013. Mobile tion, including network and airspace usage rules. The Jeppesen JetPlan flight planning engine has been gaming will see the biggest growth (+35%) followed by the MMO games market which will grow by trusted by business and commercial aviation operators for more than 30 years. For more information +14% and how to subscribe to Jeppesen FlitePlan Online for business aviation operators, powered by the en- 6. Northern Africa and Central America are emerging as hubs for video game fraud according to sta- hanced Jeppesen JetPlan engine, please visit www.jeppesen.com/fpo. tistics produced by GlobalCollect for transactions initiated in Q4 2102 resulting in a chargeback. Jeppesen - AACO Partner since 2008 GlobalCollect - AACO Partner since 2007 Created in 1980, Institut Aéronautique & Spatial, non-profit association, Kennedys announces strong revenue growth: We are pleased to announce is the French Aerospace Industry Association (GIFAS) international further that the firm recorded a 7% increase in turnover for 2012/13 to £117m education agency. IAS members are the major aeronautical & space com- (£109m in 2011/12). panies such as EADS (Airbus, Eurocopter, MBDA, Astrium and ATR), SAFRAN (Snecma, Turbomeca, Labinal), THALES, Dassault Aviation, Aeronautical and Space SME’s. The growth has been achieved through a combination of organic growth and IAS mission is to develop a network of foreign partners, major actors in the aeronautical and space lateral hires, and does not include the £10m boost to turnover from the recent merger with leading avia- domain in their countries. IAS activities are focused on training engineering and educational solutions tion practice Gates and Partners. implementation. IAS site is located in Toulouse, city gathering: Kennedys now has 174 partners and a total of 1,185 people world-wide. Airbus-company headquarters and main assembly lines; ATR company headquarters and main assembly lines; EADS Astrium Assembly plant; Thales Alenia Space Assembly plant and Head Quarters; Thales Avi- The results reflect growth across Kennedys’ international network and the firm’s ability to attract top- onic Manufacturing plant; and CNES plant quality lateral hires. Toulouse, 2nd university city in France, welcomes as well the main French Technical Institutes and uni- versities for aeronautical and space domain with whom IAS is working closely: Commenting on the strong results, Kennedys senior partner Mr. Nick Thomas said: “Kennedys is going ISAE (Institut Supérieur de l’Aéronautique et de l’Espace); ENAC (Ecole Nationale de l’Aviation Civile); from strength to strength despite the challenging economic climate. Our success continues to be predi- ENSEEIHT (Ecole Nationale Supérieure de l’Electronique, Electrotechnique, Informatique, Hydraulique, cated on client need and organic growth. The strategy is simple but highly effective: focus on a particular Télécommunications); University Paul Sabatier; Toulouse Business School; etc… sector and add real value to our clients by combining legal knowledge and industry insight. IAS main activities are synthesized as follows: Master Program (for engineers, managers and future teachers); Modules Program (short training courses “I expect this strategy to lead to further expansion in the coming 12 months as we invest in our network for technicians, engineers, managers, etc); Specific Training Projects for all type of partner. to be in the places our clients need us to be. The merger with Gates and Partners should be seen as a All IAS actions are mandated by IAS directorate and GIFAS : i.e. EADS, Safran, Thales, Dassault Aviation signal of our intent.” and GIFAS SME’s Kennedys - AACO Partner since 2011 www.inst-aero-spatial.org IAS - AACO Partner since 2008

Daily news on www.aaco.org Issue 77 - Aug. 2013 71 Our Partners News

In an unpredictable world, where volcanos suddenly erupt leaving millions stranded and passenger related incidents create hours of delay leaving pas- sengers disgruntled; global aviation authorities highly recommend airlines pay Network planning update and airport infrastructure planning for Air Astana: Air Astana and Lufthansa more attention to an efficient safety management. Consulting have extended their fruitful relationship with a further project. The airline assigned Lufthansa A systematic approach to managing safety means proactively pinpointing potential issues, reactively Consulting to review its network and fleet plan taking into account the capacity constraints the airline is reporting and analyzing those impacting events and predicting potential hazards. facing at Kazakhstan’s two main airports Almaty and Astana. Using the right technology, improves processes and systems for managing risks. Centralised reporting ensures effective communication and coordination necessary for successful incident management. The consultancy developed a new hub structure focusing primarily on regional-to-regional connections Craving a more efficient approach towards safety management, airlines are looking for a tool that covers that is meant to be easy to implement and to serve as backbone of the airline’s development in Kazakh- all aspects, from accident and incident reporting, risk assessment, analysis and investigation, through to stan. The aviation experts also revised the 5-year network and fleet plan in view of the new constraints auditing and corrective action tracking. An application where all information can be captured, managed and potential solutions for it. In line with the traffic projections, Lufthansa Consulting furthermore de- and easily presented for safety experts to analyse and interpret, giving them the means to take appropri- fined the minimum airport infrastructure requirements for the airline’s hub operation. ate actions and prevent recurrences that endanger the safety of the airline, the aircrafts, the passengers and ultimately the airline’s reputation. With Emirates and dnata, mercator understands the aviation in- Air Astana offers scheduled services on more than 60 routes within Kazakhstan, to Central Asia, Russia dustry. No other IT provider can provide insights into airline business technology solutions. mercator has and the CIS, Europe, the Middle East and Far East. In 2012, the carrier transported over three million developed a safety management tool to cater to safety reporting, analysis and compliance needs. mSiD’s passengers. It operates 26 aircraft (A320 family, B757, B767 and E-Jets). During this year’s 50th Interna- unique features include forms and workflow builders providing airlines with the ability to react instantly tional Paris Air Show in June, Kazakhstan’s national airline once again achieved a Skytrax 4 Star rating to process changes, customised dashboards, giving management a snap shot of the airline’s safety, and being named as best airline and also with the best service delivery in Central Asia and India at the 2013 advanced business intelligence modules enabling swift and informed decisions. mSID has enabled Emir- World Airline Awards ceremony. Both awards were previously given to Air Astana in 2012. ates to integrate various disparate systems to capture and manage safety reports, into one streamlined & Lufthansa Consulting - AACO Partner since 2010 efficient solution across the group. mSiD is the motor behind the Emirates Group compliance to report- ing incidents and to the processes enforced by the General Civil Aviation Authority. mSID is the secret behind the trust! For information, visit mercator.com mercator - AACO Partner since 2003 When many people think of MedAire, they think of MedLink, the world’s first global assistance center for in-flight medical events. Today, MedAire delivers an integrated medical and security solution for airlines that includes training, equipment, and professional services for crew and passengers beyond the cabin. Pre-Flight Solutions for Quality Customer Service & Operational Compliance:Cognisant that passengers MTU Maintenance – Global player in commercial engine MRO : MTU Maintenance, a business division with medical issues may be sensitive to differential treatment, MedAire provides a comprehensive suite of MTU Aero Engines, is the world’s largest independent provider of commercial engine maintenance of services for airline personnel working with passengers with disabilities. Through flexible, skills-based services. A primary part of its business is repairing engines for programs in which it is a risk and revenue training options, personnel learn the skills and techniques to provide sensitive, proficient care to custom- sharing partner. Nevertheless, its portfolio covers all engine thrust classes, from small turboprop engines ers with disabilities and those with special medical requirements. to the largest jet engine ever developed, the General Electric GE90-110B/-115B. Besides OEM repairs, Whether or not an airline is required to comply with a fairness-in-access regulation, all airlines strive to MTU Maintenance has developed a broad range of innovative high-tech proprietary EASA/FAA DER re- treat passengers equally and with dignity, respect, and courtesy. The program is delivered in formats that pair capabilities, which are marketed as MTUPlus repairs. meet a carrier’s needs, including e-Learning, Train the Trainer, & classroom workshops. A carrier’s appli- cable regulation requirements are incorporated in the course (EC No.1107/2006; ACAA 14 CFR part 382). A considerable engine lease pool known as e.pool®, along with a compelling choice of customized ser- Medical Kit Delivery & Refurbishment Solutions:MedAire medical kits are designed for timely, accurate vices, ensure cost-effective and efficient solutions for its customers: from fleet management, MTUPlus assistance to routine and emergency medical events. Backed by more than two decades of real-world Engine Trend Monitoring, logistics support, LRU management, spare parts provisioning, 24h AOG service, medical event data from MedAire’s MedLink service, MedAire uses fact-based analysis to provide carriers on-site support and on-wing repairs up to Total Engine Care (TEC®) packages for all engine types in its with the optimal medical kits for their aircraft and itineraries. MedAire provides a full-suite of medical portfolio. equipment solutions, including Emergency Medical Kits, Enhanced Emergency Medical Kits (aka Doctor Bag), First Aid Kits, pharmaceutical supplies, & Automated External Defibrillators (AED), that meet, or MTU Maintenance operates facilities in Hannover and Berlin-Brandenburg (both Germany), Rzeszów exceed, applicable regulations. (Poland), Vancouver (Canada), Dallas (U.S.A.), Zhuhai (China), Ayutthaya (Thailand) and close to Kuala Crisis Management: Our extensive network of nurses, doctors, security experts and logistics personnel Lumpur (Malaysia). allows MedAire to assist airlines should the worse happen. Aviation crises demand extreme sensitivity, precise timing, global delivery capabilities, constant communications, and the best possible medical care. MTU - AACO Partner since 2013 MedAire - AACO Partner since 2008 Daily news on www.aaco.org Issue 77 - Aug. 2013 73 Our Partners News

Does your airline let you tweet, text and talk? OnAir’s customers do. We offer Quali-audit is an independent Audit Organization (AO) accredited by IATA to passengers seamlessly connected journeys, year round, wherever you’re headed. conduct IOSA annd ISAGO audits. As Endorsed Training Organization (ETO), Download our new infographic, with lots of facts and figures, from here. Quali¬audit provides IOSA auditorr training for operators. At least 70% of passengers carry a smartphone and people check their phones on Conducting IOSA audits since 2006, and also with a large range of operational as- average 150 times a day. So why not on a plane? When both GSM and Wi-Fi are available, 80% prefer sistance and training for operators, our experts have worked in the continuity of the IOSA program. Our using Mobile OnAir for emailing, text messages and calls. People use Internet OnAir, the Wi-Fi hotspot, team now counts more than 56 auditors. For thee first semester, Quali-audit realized thirty IOSA audits, for tweets and Facebook updates, to check the news and for travel bookings. 94% of passengers bring at near than ten trainings and safety evaluation for operators in different regions. least one personal electronic device onto the plane, so OnAir Play provides inflight entertainment direct The IOSA program is now moving to a next level that will result in an even more effective evaluatioon to your own phone, tablet or laptop. of operational safety and security practices, and add value to the IOSA experience for member airlines. Philippine Airlines becomes first airline customer of TriaGnoSys’ inflight GSMConneX connectivity In the transition, thee project is called Enhanced IOSA. Enhanced IOSA audit started this year with ten hardware: A Philippine Airlines (PAL) Boeing 777-300ER jet that has been fitted with TriaGnoSys’ inflight volunteer operators. Quali-audit will conduct two Enhanced IOSA audits near Air Moldova and Air India. GSMConneX connectivity hardware was officially released, making PAL the first to offer TriaGnoSys’ Quali-audit was selected to perform the IOSA audit of and Airways, mem- inflight GSM and WiFi services. GSMConnex will also be installed in all of PAL’s B777 and Airbus A330-343 bers of the AACO. aircraft. With GSMConneX, PAL passengers will get to enjoy onboard cellphone calls and WiFi connec- Our next training session in Paris CDG: tion. GSMConneX is available as a retrofit option, with Mobile OnAir and Internet OnAir services. OnAir is ͳ Quality Auditor Training session will be held from 24th to 227th of September 20013 and from Philippine Airlines’ GSM and WiFi service provider. GSMConneX was originally intended to power inflight 266th to 29th of November 2013. GSM and TriaGnoSys has now expanded it to include WiFi. It incorporates the hardware and software ͳ IOSA Auditor Training (IAAT) session will be held from 30th of September to 4th of October 2013 parts for both the aircraft and ground segments. The airborne hardware consists of only two lightweight and from 2nd to 6th of December 2013. and small units, combined with wireless access points and a cabin control screen. TriaGnoSys is respon- ͳ Operational Management Training will be held from 18th to 22th of November 2013. sible for supplying GSMConneX itself, as well as integrating the other third party hardware elements into Upon request, trainings can be realized on the operators’ premises. the full turnkey solution. As well as connectivity, the GSMConneX platform has been designed specifically For any queries concerning Quali-audit, please contact our Business Manager, Mr. Joris DUTHEIL, E-mail: to host a wide range of software application modules. These include entertainment and non-flight-criti- [email protected] , Tel: +33(0)1 74 25 41 88, Mob: +33(0)6 62 15 87 13 cal cockpit applications. OnAir - AACO Partner since 2009 Quali-audit - AACO Partner since 2008

Optiontown is a pioneer in the World of ‘Dynamic Travel Options’. Our vision is to develop unique and innovative travel solutions that help to optimize value for both travelers and travel providers. Its cutting edge patented technology (16 patents) was developed following extensive research at the Center of Transportation Studies - MIT, Boston. With our unparalleled and innovative products, airlines generate significant incremental Ancillary Rev- enues and enhanced Customer Satisfaction. The partner airlines use Optiontown’s patented post-sales ancillary travel product purchase algorithms based on the principles of ‘Concurrent Optimization’. Airlines neither require any cash investment nor have to go for complex and lengthy IT integration; and can generate ancillary revenues to their bottom-line from their own core business. Optiontown creates new ways to utilize their unused inventory, to create unique travel experience of increased comfort and convenience at affordable prices – and fulfilling the consumers’ unmet desires. Our Upgrade Travel option (UTo), Empty Seat option (ESo) and Flexibility Reward option (FRo) are very popular products in the suite of travel products being capitalized by airlines. Optiontown has successfully added new feathers to the idea of travel and has created a win-win situa- tion for 14 airline partners worldwide as well as for their customers with unique and exciting 40 product installations. Optiontown is head-quartered in Boston, Massachusetts and operates offices in India, Denmark, Spain, UK, Vietnam and Malaysia. Optiontown - AACO Partner since 2011

Daily news on www.aaco.org Issue 77 - Aug. 2013 75 Our Partners News

Hotels that subscribe to VFM Leonardo’s VBrochure Online Merchandising System will automatically have their 360 degree tours and video available now on Sabre’s Red Workspace, through their multi- media galleries. Hotels wishing to add this feature to their hotel listing on Sabre can do so by subscribing to VBrochure. Hoteliers can also merchandise their offering to individual guests using Sabre’s Custom Offers, which provides hoteliers the ability to create an endless number of unique, personalized offers such as special rates, room upgrades, premium hotel services, free meals, Wi-Fi, spa services and more. Sabre and Gulf Air Extend Joint Venture to provide travel technology services in Middle East: Gulf Air and Sabre Holdings (Sabre) have renewed their longstanding joint venture partnership for Sabre Travel Sabre employees volunteer in record numbers: A record number of Sabre’s global employees recently Network Middle-East (STNME) following continued strong growth and success. completed the annual Give Time Together community volunteer campaign and also doubled the hours of STNME was established as a joint venture between Gulf Air & Sabre in 2005 following a 30-year partner- community service from the previous year’s totals. ship, and has grown substantially since then. A record 51% of Sabre’s 10,000 global employees participated in one or more volunteer events to ben- efit the communities in which they work and live. The 5,300 Sabre employees who served their commu- Azul and Sabre renew technology agreement: Sabre, a global technology company for the travel nities this year was an increase compared to the 3,500 who participated in 2012. industry,and Azul – the third largest airline operating in Brazil – announced the renewal of their long- Employees participated in more than 450 different events in 31 countries. The number of hours reported term business relationship to provide the airline with solutions that support its strategic integration of also leapt from 23,736 in 2012 to more than 35,000 so far this year – a 50% increase. planning, flight operations and revenue opportunities with TRIP Linhas Aéreas. Prior to the merger each airline implemented a number of Sabre Airline Solutions products and capabili- Sabre adds river cruises content through its Cruise offering:Sabre, a global technology company serving ties for their own operations. This extended technology agreement aims to equip Azul with an integrated travel suppliers and agencies, announced voyage inventory for Viking River Cruises will be available im- software portfolio enabling seamless technical and business consolidation processes. mediately to all Sabre-connected travel agencies using Sabre Cruises or Sabre Cruises API. This is the first As part of Sabre Airline Solutions’ products and capabilities included in the extended deal, Azul contin- time Sabre has made river cruise content available for shopping and booking in Sabre Cruises. ues to leverage Network Planning and Scheduling solutions. The airline continues optimizing crew sched- The addition of Viking River Cruises brings the number of cruise lines offered through Sabre’s cruise uling via Sabre’s Crew Management, and recently implemented Sabre’s Load Manager solution to enable shopping and booking tools to 15 with more on the way including AMA Waterways, Avalon and Wind- Azul maximize aircraft fuel efficiency for flight performance. star. The new long-term agreement also applies to Sabre technology that has been implemented by TRIP Viking has recently christened 18 new ships and was recently named a World’s Best by Travel + Leisure Linhas Aéreas, now part of Azul. In addition to Sabre’s Flight Manager and Maintenance Control solu- Magazine. tions, the flight experience is continuously enhanced by technology that tracks flights in real-time and Sabre Cruises offers travel agents quick and easy access to cruise lines’ systems for real-time, shopping dynamic messaging that links its control center and fleet. The Sabre AirVision Revenue Management and booking, 24-hours-a-day, seven-days-a-week. The addition of Viking River Cruises gives agents the solution has provided critical data for decision making. ability to bring diverse options, like river cruises, to their customers with the use of Sabre Cruise booking Azul, an airline company that resulted from the merger of Azul Linhas Aéreas Brasileiras and TRIP Linhas tools. Aéreas, operates a fleet of 118 aircrafts serving 103 destinations within Brazil, and employs nearly 9,000 The content is commissionable and all promotions are also available to agents. Viking River Cruises plans employees. to add ocean voyages in 2015 and that inventory will also be available through Sabre Cruises.

Sabre provides hoteliers with more marketing options:Sabre will further enrich its multi-media hotel Sabre - AACO Partner since 2002 content this week to help hoteliers differentiate themselves and enhance the shopping experience for Sabre-connected travel agents. Sabre will feature videos produced by hotel properties, including 360-degree tours of properties, ameni- ties, and rooms. Hoteliers have previously had the ability to showcase photo images of their property in the Sabre global distribution system but now can show even more. The enhanced, multi-media content will be available this week in the Sabre Red Workspace in classic and graphical views. Sabre is working with VFM Leonardo, a technology leader in online visual content management and display technology, to meet the growing demands for more and richer visuals throughout the hotel research process. VFM Leonardo is powering the enriched hotel digital content in the Sabre Red Work- space with industry-leading multi-media galleries. VFM Leonardo delivers over two million images, virtual tours and videos for over 100,000 hotels worldwide.

Daily news on www.aaco.org Issue 77 - Aug. 2013 77 Our Partners News

SITA named ‘Aviation IT Service Provider of the Year’ by African Airlines Association AFRAA:SITA has been awarded Aviation IT Service Provider of the Year by AFRAA, the African Airlines Association. The award recog- Seabury is a global advisory group providing consulting, human capital, banking, restructuring, and IT nizes SITA for its broad portfolio of solutions for the air transport indus- support, primarily to airlines. Seabury staff includes consultants and investment bankers as well as expe- try, its collaboration with customers to pilot emerging technologies, and its investment in research and rienced former industry executives and technical experts. Seabury’s primary regional offices are located development in innovative solutions for the industry.The Aviation IT Service Provider of the Year award in New York, London and Hong Kong. was presented to SITA at the gala dinner of the African Airlines Association’s Suppliers and Stakeholders Convention (ASASC) by Ms. Sosina Iyabo, who is Secretary General of the African Civil Aviation Commis- With more than 150 professionals across Consulting and Banking, Seabury has served over 75 airline sion (AFCAC) and ICAO Deputy Director for Eastern and Southern Africa.AFRAA is the trade association of clients through nearly 300 projects over the last five years. Our unique team structure sets us apart from airlines from the African Union member states. Its primary purpose is to foster commercial and technical other advisors. We integrate the analytics of top-tier strategy consultants, the functional depth of tech- co-operation among African airlines while representing their common interests. nical experts, the financial acumen of top bankers and the experience of former senior executives. As a result we hit the ground running and inspire trust in our clients by demonstrating expertise and under- Killeen-Fort Hood Regional Airport moves to SITA›s common-use passenger technology: Killeen-Fort standing from the first day. Hood Regional Airport in Texas, has switched its passenger processing technology system to SITA, the global IT provider dedicated to the air transport industry. The regional airport moved to SITA’s Airport- Seabury works with airlines to create enormous value: either on increasing revenue or reducing costs. Connect Open common-use platform for flexibility to support both scheduled and charter airlines using Our current and past clients will testify to the impact we have made to their results: working closely and the airport. Common-use allows airlines to process passengers at any workstation or boarding gate at cooperatively with an airlines’ senior teams. the airport, giving Killeen flexibility when managing its infrastructure. With SITA AirportConnect Open, airlines can use their own applications on the common-use infrastructure and the airport now has the Seabury - AACO Partner since 2008 ability to manage charter flights. The five-year agreement with Killeen Airport includes SITA’s sophisti- cated flight information display (FIDS) technology, AirportVision, which provides airlines and passengers with real-time flight and weather information on easy-to-read displays throughout the airport. SITA - AACO Partner since 2008 Shell Aviation supplies high quality products and services to the Travelport announces new deal with Singapore Airlines and out- aviation industry worldwide. Every day, at over 800 airports across lines east Africa investment plans: Travelport has announced the some 40 countries, Shell Aviation provides fuel for around 7,000 extension of its global content agreement with Singapore Airlines, aircraft, refuelling a plane every 12 seconds. Our customers range from the private pilot to the largest which provides Travelport-connected agents worldwide with access to the airlines’ full range of market global airlines. fares. The new deal will significantly benefit travel agents as Travelport now connects its travel agency Since the birth of modern aviation, Shell has been committed to providing performance enhancing subscribers worldwide to more than 430 airlines. fuels and lubricants to the aviation community. In July 2009, Shell celebrated 100 years of innovation, Travelport’s web-based iPort departure control system launched in Egypt: In addition to new airline based on Louis Blériot’s flight crossing the English Channel in 1909 using Shell fuel. Since this time, Shell customer wins, Travelport has also announced the deployment of the Web-based iPort airline departure has played a crucial part in almost every landmark event for aviation. Shell was involved in yet another control system in Egypt. iPort, developed by Res2 BV for Travelport, has been adopted by Cairo-based aviation first in October 2009 when a Qatar Airways aircraft travelling from London to Doha completed Top Aviation, which has now become the latest ground handling services provider to deploy the iPort the world’s first commercial passenger flight powered by a fuel from natural gas. Shell developed and departure control system (iPort DCS). produced the 50-50 blend of synthetic Gas to Liquids (GTL) kerosene and conventional oil-based kero- Top Aviation will initially use iPort DCS to support 15 airline customers at eight airports throughout sene fuel. Over the last couple of years, Shell has been working with Airbus, Qatar Airways, Qatar Fuel Egypt. The cost-efficient, user-friendly platform will be implemented to transform passenger check-in, Company, Qatar Petroleum, Qatar Science & Technology Park and Rolls-Royce to research the benefits of boarding and aircraft load control processes. using GTL Jet Fuel. Shell Aviation is focused on providing the aviation industry with a comprehensive and Travelport unveils east Africa investment plans: Further to deploying new airline technology in Egypt, reliable supply network and the best possible customer service. In 2010, Shell Aviation signed several Travelport has unveiled its investment plans for east Africa, in response to projected 7% growth in the concession agreements to operate as a fuel supplier in more airports around the world. In 2011, Shell region’s GDP. According to recent research from Euromonitor International (‘East Africa Set to Become launched its new marketing joint venture (MJV) with Topaz, for the sale of aviation fuel in Ireland. Next Emerging Market Region to Watch’), the GDP growth in east Africa is set to peak at 7% by 2017, Shell Aviation has received the Armbrust Award for Top Aviation Refueler Worldwide consistently over making it the fastest growing regional economy in Africa. the past decade. We have been named the Best Aviation Fuel Provider at the Emerging Markets Aviation In light of this growth, Travelport has emphasised its focus on Africa as a strategic investment region by Awards (EMAA) for two consecutive years (2010, 2011).Powered by its distinctive heritage in the indus- unveiling a robust business strategy for the country, focussing on new products, online and mobile tech- try, Shell Aviation will continue with the same determination, ingenuity and vigour that have made it a nologies, and strengthening its regional Nairobi hub. world leader. Shell Aviation- AACO Partner since 2002 Travelport - AACO Partner since 2000

Daily news on www.aaco.org Issue 77 - Aug. 2013 79 AACO, & RTC CALENDARS AACO & RTC Calendars AACO CALENDAR AACO RTC CALENDAR August 2013 August 2013 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 1 2 3

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11 12 13 14 15 16 17 Airport Strategic Management / Amman 25 26 27 28 29 30 31 Airport Strategic Management / Amman 18 19 20 21 22 23 24 AACO 6th Aviation Fuel Forum / Dubai Train of Trainers Course / Amman Dangerous Goods Regulations – Refresher / Am- man 25 26 27 28 29 30 31 International Criminal Air Law / Am- Fuel Project - Ten- Joint EPG, AWG & AACO EPG & man der 2014 - Opening ACAC Environmental AWG Meeting / Business Etiquette of Offers Meeting / Committee Meeting / Abu Dhabi Course / Amman Beirut Abu Dhabi Human Resources for Non Human Resources Managers Course / Am- man September 2013 September 2013 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 AACO Amadeus Steer- 11 12 13 14 Station/Ground Handling Management / Amman Judicial ing Board Subgroup Advanced Airline Sales Strategies Course / Tunisia Officers Meeting / Amman in Civil Developing Airline-Airport relationships / Aviation / 15 16 17 18 19 20 21 Amman 67th Executive Commit- Jeddah tee Meeting / Abu Dhabi 8 9 10 11 12 13 14 22 23 24Emirates Group Security AVSEC25 Symposium26 27 28 Judicial Officers in Civil Aviation / Jeddah Drafting and Evaluation / Dubai of International Aviation Formulating Competitive Airlines Strategies / Agreements Course / Amman Tunisia 29 30 27 28 29 30 31 Healthy Workplace / Amman 15 16 17 18 19 20 21 Predictive Passenger Screening / Amman SMS for Airlines / Amman 22 23 24 25 26 27 28

29 30 27 28 29 30 31 Click on the banner to register for attending this year’s AGM For additional information, kindly contact Mr. Emad M. Abouzeid / Executive Director Training at [email protected] Daily news on www.aaco.org Issue 77 - Aug. 2013 83 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. (1946) 7. Tunis Air (1948) 8. Gulf Air (1950) 9. Air Algerie (1953) 10. TMA (1953) 11. Kuwait Airways (1954) 12. (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. (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 77 - Aug. 2013 87 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, , , 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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