Issue 90 - Sep 2014 Official Monthly Bulletin of AACO Arab world marks a decrease of 6% AVIATION WITHIN THE ARAB WORLD GLOBAL ARAB AVIATION in July 2014 in international passenger numbers - p. 6 GROWTH p: 10 SPREADING OUT p: 22 PARTNER AIRLINES p: 42 - 53
INDUSTRY PARTNERS p: 54 - 79 AACO members put into service 20 ARAB AIRLINES ECONOMICS p: 11 COLLABORATION p: 30 new aircraft in July 2014 copared to AACO & RTC CALENDARS p: 80 - 83 April 2014 - p. 14 EXPANSION p: 12 ENVIRONMENT p: 30 LAURELS p: 15 REGULATORY TONE p: 31 AACO MEMBERS & PARTNERS p: 84 - 87
IATA World Air Transport Statistics re- TECHNOLOGY & E-COMMERCE p: 15 AN AVIATION MARKET leased - p. 36 IN FOCUS: TURKEY p: 34 MRO p: 16 WORLD NEWS p: 36 ARAB AIRPORTS p: 16
ATM p: 19
Daily news on www.aaco.org Issue 90 - Sep 2014 AACO airlines have put into ser- announced plans for expansion with world regions (more details on vice 20 new aircraft between page 23). April and July 2014 and parked 40 old ones during the same period. Airports in the region have shown positive results in July; Queen Alia Recently, Emirates has agreed on International Airport registered a 5.6% increase in passenger num- a USD 425 million loan for 2 A380 bers, Muscat International Airport witnessed an increase of 7.5% dur- jets, Iraqi Airways DG announced ing the first half of 2014, noting that a world first air traffic monitoring that the airline is expecting to system, developed by Spanish firm Indra, has been installed in Oman receive 16 Boeing aircraft in 2015, to oversee aircraft in the skies above Muscat and Salalah. In the UAE, and Royal Jordanian received its Abu Dhabi International Airport reported a 21.7% increase in passen- first Boeing 787 Dreamliner be- ger traffic in July, and Sharjah saw a 23.1% increase in second quarter coming the second airline in the passenger numbers. Meanwhile, passenger traffic at Dubai Interna- Arab world to use this type after tional Airport remained above the 5 million mark for the 19th straight Qatar Airways; noting that Etihad month in July although passenger numbers slipped by 2.9% during Airways will receive its 787-9 air- the month mainly due to the closure of two runways at the airport craft in late 2014. from 1 May until 21 July.
Foreword With fleet comes expansion with- On the regulatory level, ANA and Lufthansa Cargo have obtained anti- in the region and globally. Emir- trust immunity for Japan-Europe joint venture, while Etihad Airways’ ates has increased its flights to deal to acquire 33% of Darwin Airline is being reviewed by the Swiss Casablanca from a daily to double authorities after the authorities advised Etihad in June that changes daily flights, Qatar Airways an- to the agreement are needed to secure regulatory approval. Also, U.S. nounced plans to enhance its Transportation Security Anthony Foxx rejected recently a Norwegian flights to Muscat, Dubai, and Ma- airline’s request to fly to the U.S. while the airline awaits a permanent dinah, while flynas announced a decision on its oft-criticized application. major expansion in its domestic network by launching flight to Ta- Turkey is our country of focus for this issue of the Nashra. With a buk, Ha’il, and Al-Qassim. In July population of 76.76 million people, 135.4 million passengers used 2014, AACO members increased Turkey’s airports in 2013, which links 296 cities worldwide. The high- the number of their seats offered est share of traffic from Turkey was with Europe, noting that the within the Arab world by 16.5% Ercan-Istanbul route witnessed the highest number of seats offered compared to July 2013. AACO from Turkey in July 2014. More details are available on Page 34. airlines have also increased the number of their offered seats to and from the region by 11.9% in July 2014 compared to July 2013. These airlines have launched and Daily news on www.aaco.org Issue 90 - Sep 2014 5 OVERALL TRAFFIC - ARAB WORLD We estimate international passenger numbers to, from, & within the Arab world to have decreased by (6%) in July 2014 compared to July 2013 during the Holy month of Ramadan, which follows an increase of 4.5% in June 2014 compared to June 2013.
Monthly International Passenger Numbers' Change To, From and Within the Arab World Aug 13 to Jul 14* compared to same month in previous year CLICK BELOW TO REGISTER FOR AACO AGM 20%
15%
10%
5%
0%
-5%
-10% Effect of Adha Cyclicality Effect of Ramadan
YoY Growth 12-Month Average Growth Source: AACO, IATA *Estimated In July 2014, AACO members increased the number of their offered seats to, from, and within the Arab world by 13.8%, while other air- lines decreased their number of seats offered by (13.7%), leading to 5.9% year-on-year increase in the total number of seats offered.
Daily news on www.aaco.org Issue 90 - Sep 2014 7 AVIATION WITHIN THE ARAB WORLD Aviation in the Arab World GROWTH
PASSENGER TRAFFIC Monthly International Passenger Numbers' Change Within the Arab World International passenger numbers within the Arab world are estimated to have Aug13 to Jul 14* compared to same month in previous year shrunk by (9.1%) in July 2014 compared to July 2014. This sharp decrease comes as an effect of the Holy month of ramadan. This follows an increase of 20% 6% in June 2014 over June 2013. 15%
Passenger traffic within the Arab World July 14* over July 13 10% Within Arabian Peninsula (8.1%) 5% Within Near East (12.2%) Within North Africa (12.7%) 0% Between Arabian Peninsula & Near East (4.2%) -5% Between the Near East and North Africa (30.6%) -10% Between Arabian Peninsula & North Africa (18.1%) Source: AACO, IATA *Estimated Effect of Adha Cyclicality Effect of Ramadan International Passenger Numbers' Change Within the Arab World Apr14-Jun14 & May14-Jul14* compared to same period in previous year YoY Growth 12-Month Average Growth 30% Source: AACO, IATA *Estimated 25% ARAB AIRLINES ECONOMICS 20% Gulf Air’s half year financial and operational results build on 2013 successes: 15% Gulf Air has delivered a strong fiscal and operational performance for the first 10% half of the year, ending June 2014, reducing its year-on-year losses by over 30% and building on the airline’s positive 2013 strategic restructuring results 5% that put the carrier firmly on-track towards achieving long-term commercial 0% sustainability. within In the first two quarters of 2014, Gulf Air increased its overall revenue by 10% -5% within N Arabian within N compared to the same period in 2013. This was realised principally through East N East -10% Pen Africa N East N Arabian N Africa an enhanced revenue stream that was driven by augmented operations, im- Africa -15% Pen Arabian proved load factors and increased connecting traffic. Pen With a focus on high-demand and high-yield point-to-point routes that con- Apr14-Jun14 nect Bahraini businesses with regional markets, the first half of 2014 saw Gulf May14-Jul14* Air continue to strengthen its Middle East and North Africa (MENA) operations while maintaining strategic links to select points in Europe, the Far East, India Source: AACO, IATA *Estimated and Pakistan. During this period the carrier commenced services to its fifth Passenger numbers within the Arab world reported a 10.5% growth between destination in Pakistan – Sialkot, recommenced flights to the Iranian capital April 14 & June 14 compared to same period in the previous year. Tehran and the Greek capital Athens. Additionally, the airline increased fre- quencies to Mashhad to now operate daily flights between Bahrain and the Passenger numbers within the Arab world reported a 3% increase between Iranian city. May 14 & July 14* compared to same period in the previous year.
Daily news on www.aaco.org Issue 90 - Sep 2014 11 Aviation in the Arab World EXPANSION Qatar Airways to fly double daily to Madinah from 26 October: Qatar Airways will be launching an additional daily flight to Madinah from 26 October 2014. ROUTES The additional flight will increase the number of Qatar Airways’ weekly flights Aircraft on the Doha – Madinah route from seven to 14 weekly services. Airline From To Date Weekly Freq. Type The new additional flights will be operated with an Airbus A320 in a two-class configuration, with 12 seats in First Class and 132 in Economy Class. EK Dubai Casablanca 1 Sep. 14 7x to 14x 7x A340-500 Muscat 16 Sep. 14 31x to 35x N/A flynas adds flights to Tabuk, Ha’il and Al-Qassim:flynas has announced the launch of new domestic destinations from King Khaled International Airport QR Doha Dubai DXB: 91 to 98x N/A 26 Oct. 14 DWC: 21x to 28x starting 23 September, 2014 with one flight daily to Prince Sultan bin Abdu- Madinah 7x to 14x A320 laziz Airport in Tabuk and an average of four flights per week to Ha’il interna- tional Airport. In addition, flynas will operate daily flights from King Abdulaziz Tabuk 23 Sep. 14 7x International Airport in Jeddah to Prince Naif bin Abdulaziz Airport in Al-Qas- Riyadh XY Ha’il 4x N/A sim starting from the beginning of October 2014. Jeddah Al-Qassim Oct. 14 7x CAPACITY AND DEMAND Emirates boosts connectivity to Morocco:Emirates stepped up services to Passenger Air Services Within the Arab World - July 2014 - SRS Analyzer Morocco with a second daily flight, boosting the service to 14 weekly flights as AACO members increased the number of seats offered within the Arab world of 1 September 2014. From 26 October, Emirates will upgrade this additional by 16.5% compared to July 2013 whereas other airlines decreased that num- daily from an Airbus A340-500 to a Boeing 777-300ER, which means both daily ber by (50.4%), leading to a 7.6% year-on-year increase in the total number of services will be served by Boeing 777s. The 777-300ER offers eight First Class seats offered within the Arab world. Private Suites, 42 flat-bed seats in Business Class and 310 Economy Class seats. Available Seats within the Arab world for international and domestic routes The additional flight, coupled with an aircraft upgrade, will increase Emirates’ constituted 24.9% and 10.3% respectively of the total available seats to, from, weekly passenger capacity to Morocco by 100%. Moreover, Emirates SkyCargo and within the Arab world in July 2014. will have a daily belly-hold capacity of 46 tonnes in each direction, adding 322 tonnes of weekly capacity on the route. Capacity* of Top 10 Carriers within the Arab World (Int’l Operations) Airline ASKs (Million) Departures Seats Qatar Airways increases its number of flights to Muscat:Qatar Airways has increased frequencies to Muscat. The four weekly additional flights will com- MS 1,138.6 3,411 717,802 mence on 16 September. With 31 weekly flights already servicing the Doha- EK 1,086.1 2,038 726,778 Muscat route, the increase in passenger demand has led the airline to add an SV 1,066.2 2,963 655,693 additional four flights, bringing the total number of flights up to 35 per week. QR 773.2 3,951 724,375 Qatar Airways to increase flights on Doha – Dubai routes:Effective 26 -Oc FZ 616.9 2,954 558,306 tober, Qatar Airways will be increasing frequency on its Doha – Dubai routes EY 483.6 2,262 351,956 with additional daily flights to Dubai International Airport (DXB) and Dubai G9 472.4 2,230 361,260 World Central Al Maktoum International Airport (DWC), taking its frequency to RJ 344.3 2,076 255,476 14-flights-per-day to DXB and 4-flights-per-day to DWC. Doha (DOH) – Dubai (DXB) has the highest frequency in Qatar Airways’ route XY 265.0 1,016 192,091 network: this Gulf route is currently served by the airline 91 times a week, and GF 255.8 2,690 381,762 will be increasing to 98 flights a week. DWC which is currently served 21 times Grand Total 8,780.4 36,720 6,690,948 per week will be increasing to 28 flights-per-week from 26 October. * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Apart from DXB and DWC, Qatar Airways also currently operates three-flights- a-day to Sharjah (SHJ) and six daily flights to Abu Dhabi (AUH), and is the only airline which operates to these four airports within the UAE.
Daily news on www.aaco.org Issue 90 - Sep 2014 13 Aviation in the Arab World
FLEET 2014 will also see the introduction of other four Dreamliners, an aircraft each Quarterly Development of Arab Airlines’ Fleet month on average. By the end of 2014, there will be five, whereas the remain- der of the order will join the fleet during the next few years. Oct 13 over Jul 13 Jan 14 over Oct 13 Apr* 14 over Jan 14 Jul** 14 over Apr 14 The Dreamliners will replace the currently operating A340s and A330s. With Added Removed Added Removed Added Removed Added Removed this delivery, Royal Jordanian becomes only the second airline in the Middle A/C A/C A/C A/C A/C A/C A/C A/C East to operate the 787. 15 A320 2 A310 1 A319 1 A310 5 A320 2 A300 12 A320 6 A320 LAURELS 2 A330 3 A320 9 A320 2 A320 4 A330 5 A320 4 A321 1 A321 flynas wins three CMO Asia Golden Awards for excellence in branding and 1 A340 1 A321 1 A321 1 A321 1 A380 6 A321 2 A330 8 A330 marketing:The marketing department of flynas has won three CMO Asia 1 A340F 1 A330 4 A330 1 A340 1 ATR-72 2 A330 1 A340 9 A340 Golden Awards for excellence in branding and marketing. The winners were announced at a presentation ceremony held in Singapore 2 A380 1 A340 1 A340 1 ATR42 1 B727 4 ATR-72 3 A380 1 A310 on 31 July 2014 in the presence of leaders of the global aviation industry and other commercial and industrial sectors. flynas marketing was honoured with 6 B777 3 B737 7 A380 1 B777 36 B737 2 B737 5 ATR 72 7 B737 the awards in three categories: Brand Revitalization, Effective Use of Market- 1 B777F 2 E195 1 B737 1 B737 6 B777 1 B747 6 B737 1 B747 ing Communication, and Marketing Campaign of the Year. 2 B737 8 B777 1 B787 1 B777 5 B777 3 B777 TECHNOLOGY & E-COMMERCE 3 B787 2 E190 3 B787 4 E190 Emirates SkyCargo uses X-Mover from Unitechnik: Emirates SkyCargo now 4 ATR 72 1 MD-90 1 C-130 has the capability to store and retrieve ULDs from high-bay racks and move 1 DHC6 them easily within a cargo terminal using one and the same transport vehicle - following the integration of Unitechnik’s X-Mover system. 4 DHC8 The system allows flexible handling heights of 190 to 7,000 mm. With its elec- tronic all-wheel steering, the transport vehicle is also extremely maneuverable * flydubai fleet added ** 20 new aircraft have entered into service and able to perform 360° turns. The transport vehicle will be used at the air-freight centre for Emirates Sky- Emirates agrees USD 425 million loan for two A380 jets: Emirates Airline has Cargo currently being constructed and equipped with Siemens Logistics and agreed a USD 425 million loan from a group of banks to fund the acquisition of Airport Solutions as master integrator at Dubai World Central Airport. two Airbus A380 superjumbos, one of the lenders said. ULDs that arrive at the terminal are initially transferred to a roller conveyor. Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai and Dubai Islamic X-Mover picks up the load carriers and stores them in the high-bay cold stor- Bank were joint bookrunners and lead arrangers for the sharia-compliant fi- age racks. The system has its own powered roller conveyor as well as friction nancing, ADIB said in a statement. wheels. Compared to other cargo solutions, the X-Mover can leave its aisle at Source: Reuters any time and take on tasks in another aisle or move an ULD to another loca- tion in the hall. Load carriers are easily transferred to slave pallets or roller Iraqi Airways to receive 16 Boeing aircraft in 2015:Capt. Saad Mahdi Saeed conveyors in other warehouse zones. The system reaches different transfer Al-Khafaji, Director General and Chief of Board of Directors for Iraqi Airways, heights of 208 mm for slave pallets and 508 mm in handling operations. told Al-Sabah Newspaper that Iraqi Airways will receive 16 Boeing aircraft in Emirates has the option to also use the X-Mover as a truck dock or dolly dock 2015 according to the signed contract with Boeing. for loading and unloading trucks and trailers. Source: Arabian Aerospace Royal Jordanian receives first Boeing 787 Dreamliner:The first Boeing 787 Dreamliner joined the Royal Jordanian fleet on 27 August, bearing the name Gulf Air rolls out iPad Electronic Fight Bags: Gulf Air rolled out its new genera- of Crown Prince Hussein bin Abdullah II. tion iPad Electronic Flight Bags which will facilitate the airline’s flight-critical The assimilation is part of the strategic plan the airline is implementing to communications while increasing operational efficiency and eliminating paper- modernize its fleet of long-range aircraft. based flight materials.
Daily news on www.aaco.org Issue 90 - Sep 2014 15 Aviation in the Arab World
As electronic information management devices, Electronic Flight Bags help compared to July 2013. Since the beginning of 2014 and up until July, year-to- airline crew perform flight management tasks more easily and efficiently, im- date (YTD) PAX and ACM statistics rose by 11.8% and 8.6% respectively as op- proving operational performance, while minimizing paperwork, reducing print- posed to the same period 2013, to come in at 4,154,288 PAX and 42,384 ACM. ing costs, cutting onboard weight and giving faster access to data. All Gulf Air pilots are currently undergoing extensive training on the iPad Electronic Flight 4,430,676 passengers travel via Muscat International Airport through June Bags which were rolled out across the carrier’s entire fleet by early August. 2014: Air traffic movement at Muscat International Airport by the end of the first quarter 2014 witnessed an increase in the total number of flights and passengers. The total number of flights increased by 1.3% standing at 40,204 MAINTENANCE, REPAIR & OVERHAUL flights by the end of June 2014 compared to 39,695 flights in the same period in 2013. The total number of passengers passing through Muscat International New collaboration between flydubai and JorAMCo: flydubai has selected Airport increased by 7.5% over the first half of 2014, reaching 4,430,676 pas- JorAMCo to provide the EIS (Entry Into Service) check for seven of their new sengers compared to 4,122,548 passengers in the same period 2013. Next-Generation Boeing 737-800 aircraft. The aircraft will depart from the Breaking down the figures, the total number of international flights at Boeing Company’s Renton factory in Washington for Amman where they will Muscat International Airport reached 35,510 flights in the first six months of be fitted with seats and inflight entertainment before being flown to Dubai to 2014, compared with 35,206 flights registered over the same period in 2013 enter flydubai’s fleet. representing a growth of %0.9. A recently published air traffic report issued Source: JorAMCo by the National Center for Statistics and Information (NCSI) reveals that the total number of passengers on international flights passing through Muscat ARAB AIRPORTS International Airport - including arrivals, departures and transit passengers - increased by 7.5%, standing at 4,040,128 passenger compared with 3,758,421 Top 20 Airports by International Seats Offered on Operations To, From, and passenger over the same period last year, 2,004,476 of whom were classified Within the Arab World - July 2014 as arriving passengers, 2,018,544 departing passengers and 17,108 transit pas- Top 20 Airports by Int’l Seats Offered on Operations To, From, and Within sengers. the Arab world During the same recording period, the total number of domestic flights through Muscat international Airport until end of June reached 4,694 flights Airport Number of Seats Airport Number of Seats compared with 4,489 flights over the same period last year, representing 4.6% DXB 5,942,414 MCT 913,716 growth. Meanwhile, the total volume of passengers travelling on domestic JED 2,862,371 DMM 893,122 flights reached 390,548 in 2014, compared to last year’s figure of 364,127, DOH 2,516,003 BEY 879,876 representing an annual growth of 7.3%. Meanwhile, air traffic at Salalah Airport witnessed a remarkable activity during RUH 2,210,694 AMM 842,929 the same period, recording a significant rise in the total number of flights and CAI 2,070,882 IST 780,241 passengers. The overall volume of flights by the end of the first half of 2014 AUH 1,746,567 LHR 763,703 stood at 3,982 flights compared with 3,100 flights in the same period last year, KWI 1,203,044 ALG 742,405 representing an increase of 28.5%. Additionally, the total number of passen- gers increased by 15.6% totaling 386,029 compared to 333,979 passengers in CMN 1,001,846 TUN 676,323 the same period in 2013. BAH 943,231 CDG 652,294 Air traffic movement data shows that the total number of international flights SHJ 918,017 BOM 528,271 at Salalah Airport until the end of June 2014 reached 1,490 flights compared Source: AACO, SRS Analyzer with 722 flights during the first half of 2013, representing an annual increase of 106.4%, while the total number of passengers travelling on international Queen Alia International Airport resumes positive passenger and aircraft traf- flights increased by 74.5% standing at 115,913 passengers compared with fic growth during July 2014:Airport International Group (AIG) announced an 66,419 passenger. The total number of domestic flights at Salalah Airport by increase in passenger numbers (PAX) and aircraft movements (ACM) at Queen the end of June 2014 reached 2,492 flights compared with 2,378 flights, repre- Alia International Airport during July 2014. senting an annual increase of 4.8%. The total number of domestic passengers For the seventh consecutive month, PAX and ACM figures are on a steady rise, travelling through Salalah Airport grew by 1% over the same period. surging by 5.6% and 8.4% respectively, to reach 578,026 PAX and 6,335 ACM Source: National Center for Statistics and Information – Oman
Daily news on www.aaco.org Issue 90 - Sep 2014 17 Aviation in the Arab World Abu Dhabi International Airport reports 21.7% increase in traffic for July AIR TRAFFIC MANAGEMENT 2014: Abu Dhabi Airports announced a 21.7% increase in passenger traf- fic at Abu Dhabi International Airport for the month of July 2014. A total of ‘World first’ air traffic control system in Oman: A world first air traffic moni- 1,703,995 passengers passed through Abu Dhabi International Airport in July toring system has been installed in Oman to oversee aircraft in the skies above 2014, compared with 1,399,695 in the same month of 2013. Muscat and Salalah. Aircraft movements reached 13,188, representing a 16.1% increase over the The new system, operated from the transitional air traffic control Centre (ATC), 11,355 movements reported in July 2013. Cargo activity was also on the rise in which serves international airports in both cities, has been installed as part of July 2014 recording 67,456 tonnes handled; a 5.7% increase when compared an expansion and modernization of the airports. to July 2013. In July 2014, the top five routes from Abu Dhabi International Air- It includes 56-inch monitors with multiple views on a single screen and the lat- port were London Heathrow, Doha, Manila, Bangkok and Jeddah accounting est systems and software, officials told the Oman Tribune. for 15% of all traffic. It was developed by Spanish firm Indra, with contribution from Omani air traf- fic controllers. Passenger traffic at Dubai International remains above 5-million for 19th Source: Arabian Business consecutive month: Passenger traffic at Dubai International remained above the 5-million mark for the 19th straight month in July while maintaining its growth trend for the year so far, a report released by Dubai Airports showed. For the month of July, passenger numbers slipped 2.9% to 5,155,771, from 5,310,361 passengers in July 2013. Traffic was impacted by Dubai Interna- tional being reduced to single runway for a period of 80 days from 1 May as the airport’s two runways were consecutively refurbished and upgraded. Both runways were reopened on 21 July. Passenger numbers rose to within a whisker of 40-million in the first seven months of the year, climbing 4.9% to 39,831,861, up from 37,972,464 passengers recorded in the same period 2013. In July Dubai International handled 25,081 aircraft movements, down 11.9% from 28,462 in the same month in 2013. Year to date aircraft move- ments totalled 195,896 during the first seven months, down 7.3% from the 211,373 movements recorded in the same period 2013. With all dedicated freighters moving to Al Maktoum International at Dubai World Central from May 1, both monthly and year-to-date cargo volumes at Dubai International registered a downturn. In July, cargo volumes reached 184,720 tonnes, down 10.7% from the 206,945 tonnes achieved in the same month in 2013. Year to date cargo volumes reached 1,367,967 tonnes, down 3.1% from 1,411,896 tonnes recorded in the first seven months of 2013. Sharjah International sees 23.1% surge in second quarter passenger num- bers: Sharjah International Airport handled 2.6 million passengers in the three months ending 30 June, up 23.1% from the same period a year earlier, accord- ing to data from Sharjah International. A number of airlines switched operations to Sharjah International from May 1 until July 20 because of capacity constraining runway refurbishment work at the nation’s busiest airport, Dubai International. Half-year passenger numbers at Sharjah International for the six months end- ing 30 June were up 13.38% to 5.6 million. Aircraft movements increased 8.67% to 5.6 million, however, handled freight decreased by 10.7% over the six month period to 170.6 thousand tonnes. Source: Gulf News
Daily news on www.aaco.org Issue 90 - Sep 2014 19 GLOBAL ARAB AVIATION Global Arab Aviation
Monthly Passenger Numbers' Change To and From the Arab World SPREADING OUT Aug 13 to Jul 14* compared to same month in previous year PASSENGER TRAFFIC Passenger numbers on routes to and from the Arab world are expected to 20% have shrunk by (4.9%) in July 2014 compared to July 2013 due to the Holy month of Ramadan, after a growth of 4% in June 2014 over June 2013. 15%
10% Traffic to and from the Arab world July 14* over July 13 5% With the Americas 14.5% With Europe (6.8%) 0% With Mid Asia (4%) -5% With Far East and Australasia (3.9%) With Sub Saharan Africa (15.1%) Effect of Adha Cyclicality Source: AACO, IATA *Estimated Effect of Ramadan YoY Growth 12-Month Average Growth Passenger Numbers' Change To and From the Arab World Apr14-Jun14 & May14-Jul14* compared to same period in previous year Source: AACO, IATA *Estimated 14% ROUTES 12% Airline From To Date Weekly Aircraft type 10% Freq. Chicago 6 Aug. 14 7x B777-200LR EK Dubai 8% Oslo 5 Sep. 14 7x B777-300ER 6% Los Angeles - Copen- EK Sky- Mexico City 27 Aug. 14 1x 4% hagen - Dubai (DWC) B777F Cargo Dubai Basel 21 Sep. 14 7x 2% EY Cargo Abu Dhabi Moscow 13 Aug. 14 2x A330-200F 0% Entebbe 7x 27 Sep. 14 -2% With the Kigali via Entebbe 3x With Europe FZ Dubai B737-800 -4% Americas With Mid Asia Bujumbura via En- 30 Sep. 14 2x With tebbe -6% AustralAsia With Sub- Sharjah Antalya 29 Jul. 14 Saharan Africa G9 Ras Al 3x A320 Apr14-Jun14 Khaimah Chittagong 2 Sep. 14 May14-Jul14* GF Bahrain Moscow 28 Oct. 14 4x A320-ER Tehran 1 Sep. 14 14x to 18x Source: AACO, IATA *Estimated Islamabad 3 Sep. 14 7x to 9x N/A Passenger numbers to and from the Arab world market reported an 7.9% Perth unchanged B777-200 to B777- 1 Oct. 14 300 growth between April 14 & June 14 compared to the same period in previous QR Doha Bucharest-Sofia 5x to 7x A320 year. Istanbul Sabiha 26 Oct. 14 4x to 7x N/A Cape Town 3 Nov. 14 5x B787 Passenger numbers to and from the Arab world market reported an 2.6% in- crease between May 14 & July 14* compared to the same period in previous Madrid 16 Nov. 14 7x to 10x B777 Manila 2 Dec. 14 2x year. WY Muscat N/A Jakarta 13 Dec. 14 3x MU Pudong-Kun- ming Dubai 7 Aug. 14 3x A330-300 Daily news on www.aaco.org Issue 90 - Sep 2014 23 Global Arab Aviation
Emirates touches down in Chicago: Emirates has commenced a daily nonstop In addition to operating between Dubai and these three new cities, flydubai passenger service to Chicago’s O’Hare International Airport. has obtained the rights to carry passengers between Uganda and Burundi. The route is being served by the U.S.-built Boeing 777-200LR aircraft powered Within Africa, flydubai currently operates flights to Alexandria in Egypt, Khar- by GE90 engines. toum and Port Sudan in Sudan, Juba in South Sudan, Ethiopia’s Addis Ababa as well as Djibouti’s capital Djibouti. Emirates lands in Oslo: Emirates has expanded its Scandinavian reach with the start of its daily non-stop service to Oslo. Emirates’ daily flight to Oslo is being Air Arabia touches down in Antalya marking its second Turkish destination: operated with a Boeing 777-300ER aircraft. Air Arabia announced the start of its non-stop services to the city of Antalya, Emirates will further expand in Europe with the launch of Brussels flights on 5 in the South West of Turkey. September. The new service from the carrier’s primary hub in Sharjah marks Air Arabia’s second destination in Turkey and 97th worldwide. Starting 29 July 2014, Air Emirates SkyCargo lifts capacity to Los Angeles:Emirates SkyCargo has added Arabia started offering three weekly flights to Antalya. Los Angeles to its network of freighter destinations across the United States, with the start of a weekly service to the city. Air Arabia launches flights to Chittagong, Bangladesh from Ras Al Khaimah: Los Angeles recently joined Chicago, Atlanta and Houston in Emirates SkyCar- Air Arabia announced the launch of three flights per week from its new hub in go’s US freighter network. In addition to freighter flights, Emirates SkyCargo Ras Al Khaimah to Chittagong, Bangladesh on 2 September 2014. also has belly-hold cargo services to Los Angeles, Chicago, Houston, New York, In the first half of 2014, Air Arabia opened its second hub in the UAE and San Francisco, Seattle, Washington D.C., Boston and Dallas. fourth worldwide at Ras Al Khaimah International Airport following a long Emirates SkyCargo uses a Boeing 777 Freighter aircraft on the route, which is term strategic partnership with Ras Al Khaimah Department of Civil Aviation. capable of carrying 103 tonnes of cargo. The first flight took off on 6 May 2014 and the carrier will now offer direct services to eight cities from the hub, including Jeddah in Saudi Arabia; Cairo Emirates SkyCargo to launch freighter service to Basel: Emirates SkyCargo is in Egypt; Muscat in Oman; Islamabad, Lahore and Peshawar in Pakistan, and set to further strengthen trade lanes between Switzerland and its worldwide Dhaka and Chittagong in Bangladesh. network with the introduction of a weekly freighter service from Basel to Dubai starting 21 September 2014. Gulf Air adds Moscow to its network: Gulf Air announced the launch of direct The new freighter flight will supplement the existing belly-hold cargo capacity services to Moscow from 28 October 2014. The airline will operate four flights in the Swiss market provided on Emirates’ double-daily passenger services to per week to Domodedovo International Airport. Zurich as well as on the daily Geneva flights. Emirates SkyCargo currently of- This route announcement follows Gulf Air’s recent commencement of services fers more than 380 tons of capacity each week on its routes into Switzerland. to a number of destinations including Sialkot in Pakistan, Tehran in Iran and Basel will become the 40th European destination to join the Emirates Sky- the Greek capital, Athens, 2014. Gulf Air flights to Moscow’s Domodedovo In- Cargo network, giving a further boost to bilateral trade links already in place ternational Airport will be operated by an A320-ER aircraft in a two-class con- between the UAE and the region. figuration of 14 Falcon Gold seats and 96 seats in Economy. Emirates SkyCargo will use a Boeing 777 freighter aircraft on the Basel-Dubai route. Air routes reopen between Iraq and Europe: Capt. Saad Mahdi Saeed Al-Kha- faji, Director General and Chief of Board of Directors for Iraqi Airways, told Al- Etihad Cargo starts Moscow freighter services:Etihad Cargo launched twice Sabah Newspaper that the Ministry of Transport in Iraq worked on re-opening weekly freighter rotations linking Abu Dhabi (AUH) and Moscow Domodedovo all routes to Europe, the latest were Vienna, Amsterdam and Copenhagen and (DME) airports on 13 August 2014. that the ministry is currently working on the possibility of reopening routes to The dedicated cargo service will operate using an Airbus A330-200F freighter, France and Italy after being stopped for over two decades. Capt. Al-Khafaji also with a capacity of 64 metric tonnes. announced that Iraqi Airways’ first flight to Beijing was launched on 20 August 2014. flydubai reaches 80 destinations with addition of three new routes in East Africa: flydubai announced the addition of three new East African routes, Qatar Airways increases its number of flights to Tehran & Islamabad: Qatar bringing the total number of destinations in the carrier’s network to 80. With Airways has increased frequencies to Tehran and Islamabad. The additional the launch of flights in September 2014 to Bujumbura in Burundi, Entebbe in flights, which include four for Tehran and two for Islamabad per week, com- Uganda and Kigali in Rwanda, flydubai will fly to nine destinations in Africa. menced on 1 September and 3 September 2014 respectively.
Daily news on www.aaco.org Issue 90 - Sep 2014 25 Global Arab Aviation
Tehran, which is currently served with 14 flights a week, will see an increase to Oman Air launches flights to Manila and Jakarta:Oman Air is launching new 18 flights weekly when it adds four more flights commencing 1 September. services from Muscat to Manila, in the Philippines, and Jakarta, In Indonesia, Additionally, the airline which now flies to Islamabad once-a-day will see two from December 2014. Oman Air will be offering from 2 December two flights a more flights added to the schedule bringing the number of weekly flights up week to Manila, with a third frequency being operated from 13 December. from seven to nine frequencies. Moreover three flights per week will be offered to Jakarta from 12 December, with a fourth frequency being operated from 2 January 2015. Qatar Airways to increase capacity on Perth route: Qatar Airways will be in- creasing the capacity on its Perth route with an aircraft upgrade to a Boeing China Eastern ups Dubai frequency: China Eastern Airlines added a third- 777-300. The increase in capacity will go into effect on 1 October 2014. weekly frequency on its Shanghai Pudong-Kunming-Dubai service. The airline The capacity increase from a Boeing 777-200 to a 777-300 will bring a 30% in- says this took effect on 7 August, with the Airbus A330-300 aircraft used on crease in seats on the direct daily flights to Perth Airport, with the number of the additional frequency. FlightMaps Analytics shows that the carrier is the seats rising by 1,064 per week. only operator on the Kunming-Dubai route. Source: Flightglobal Qatar Airways upgrades Bucharest-Sofia route to daily service: Qatar Airways has further strengthened its commitment to the Bucharest and Sofia routes by CAPACITY AND DEMAND announcing an increase in flight frequency to the popular destinations in East- Passenger Air Services to & from the Arab World - July 2014 - SRS Analyzer ern Europe. The airline, which currently operates to the Bucharest-Sofia linked AACO members increased the number of seats offered to and from the route five times a week, will add two additional frequencies commencing on 1 Arab world by 11.9%, while other airlines decreased the number by (6.7%) October, bringing the number of flights to seven per week. which resulted in a growth of 5% in the total number of offered seats to and With the addition of the two new frequencies, the route, which will be ser- from the Arab world. viced by an A320 aircraft will offer an additional 48 Business Class and 360 Economy Class seats per week, with an overall increase of 408 seats. Percentage of the Total Available Seats To and From the Arab World With Europe 30.4% Qatar Airways to ramp up flights to Istanbul Sabiha Gokcen Airport:Qa - tar Airways announced an addition of three weekly flights to Istanbul Sabiha With Mid Asia 17.5% Gökçen Airport making the route daily, commencing 26 October 2014. With Australasia 9.6% The non-stop four-flights-a-week service from Doha to Istanbul Sabiha Gökçen With the Americas 3% Airport was initially launched on 22 May 2014, marking Qatar Airways’ expan- With Sub Saharan Africa 4.3% sion to its third route in Turkey. With the additional flights from Doha to Is- Source: AACO, SRS Analyzer tanbul Sabiha Gökçen Airport on 26 October, the number of flights to Istanbul rises from 14 to 17 frequencies each week. Capacity* of Top 10 Carriers (Arab World & Europe) Airline ASKs (Million) Departures Seats Qatar Airways to launch non-stop flights to Cape Town:Qatar Airways has EK 7,044.8 3,376 1,420,430 announced that commencing 3 November 2014, the airline will operate a new QR 2,586.6 2,488 575,395 non-stop five-times-weekly service between Doha and Cape Town, South -Af rica. Cape Town is currently served three-times-a-week via Johannesburg. EY 1,895.4 1,663 383,255 The route will be operated by Qatar Airways’ Boeing 787 Dreamliner aircraft TK 1,036.3 2,744 510,098 which features 22 seats in Business Class and 232 seats in Economy Class. BA 825.9 795 185,725 AT 815.8 2,887 432,628 Qatar Airways increases operations to Madrid with three additional flights per week: Qatar Airways will be increasing its operations to Madrid, Spain, MS 649.5 1,430 238,458 with the addition of three extra flights per week. The increase in frequency SV 635.5 788 166,558 will bring the total number of flights up from seven to 10 per week. LH 568.1 864 164,755 With the addition of the three new frequencies, the route, which is serviced AF 542.0 1,340 231,785 by a Boeing 777 aircraft will offer an additional 252 Business Class and 1,758 Economy Class seats per week, for an overall increase of 2,010 seats. Grand Total 25,253.2 40,764 8,162,438 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Daily news on www.aaco.org Issue 90 - Sep 2014 27 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 7,073.5 2,377 1,000,364 EK 2,100.2 1,064 389,752 QR 3,114.2 1,577 453,924 AT 448.3 950 147,297 EY 2,415.0 1,143 339,866 QR 399.6 511 89,292 SV 884.2 337 120,124 MS 369.0 542 94,680 QF 660.5 124 55,800 EY 268.1 277 57,157 CX 434.1 224 69,664 ET 220.8 573 103,236 MS 297.0 122 38,982 SV 103.8 196 35,262 GA 266.2 104 33,514 AH 89.2 176 29,860 JT 244.9 62 30,752 KQ 82.9 130 25,980 PR 240.4 108 32,616 TU 75.6 130 21,732 Grand Total 18,111.7 7,633 2,583,070 Grand Total 4,565.6 5,484 1,156,211 * 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 2,175.2 2,626 942,399 EK 3,431.7 708 285,452 QR 1,146.8 2,072 417,200 QR 1,730.4 496 149,288 SV 965.7 995 290,836 EY 1,250.1 338 106,134 9W 884.2 2,044 338,980 SV 581.5 176 52,826 G9 825.8 2,000 324,000 RJ 342.0 136 35,646 AI 695.9 1,248 244,984 MS 308.5 98 33,854 EY 632.6 1,656 257,845 UA 289.7 96 26,112 IX 557.1 1,170 210,600 9W 259.0 62 23,436 FZ 507.2 1,121 211,869 AT 228.4 165 37,826 WY 448.4 1,344 202,098 DL 203.9 62 16,678 Grand Total 12,032.6 23,479 4,708,537 Grand Total 8,845.7 2,458 797,844 * 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 90 - Sep 2014 29 Global Arab Aviation COLLABORATION found GHG emissions do indeed endanger public health and welfare, and had taken action to regulate them from other sources, including motor vehicles. Royal Air Maroc and Gol sign interline agreement: Gol and Royal Air Maroc They add aviation is one of the fastest-growing sources of CO2 pollution, ac- signed on 26August 2014 an interline agreement allowing passengers of both counting for around 11% of CO2 emissions from the US transportation sector carriers to book for routes operated by the other, with immediate effect. The and rising at three to 5% a year. “Because of the significant role that aircraft agreement covers 52 domestic Brazilian and 15 international destinations from play in global climate change, and in light of the exponential growth projected Gol’s São Paulo GRU hub, as well as Royal Air Maroc’s network across Africa, in air travel, the United States must lead the way in regulating global warming Europe and the Middle East from its Casablanca hub. The agreement is Royal pollutants from these sources,” said the letter. Air Maroc’s first in Latin America, while Gol has similar agreements in place in Work towards approval of a CO2 certification standard for new types of -air the region with Etihad Airways and Qatar Airways. Royal Air Maroc operates craft is ongoing in ICAO’s Committee on Aviation Environmental Protection the sole route between Brazil and Morocco with twice weekly Casablanca-São (CAEP), which is currently preparing a cost-effectiveness analysis of various Paulo service, according to OAG. levels of stringency. It is expected to reach a recommendation that will be ap- Source: CAPA proved at the February 2016 CAEP meeting, before consideration and adop- tion by the governing ICAO Council. Emirates and Arik Air sign Memorandum of Understanding: Emirates and Environmental NGOs also support the development of an international CO2 Arik Air have signed a Memorandum of Understanding (MoU) to develop and standard but have been critical of the process so far. expand their existing commercial relationship and explore further areas of co- Against an ICAO annual global efficiency improvement goal of 2% – the indus- operation. try has committed to a lower 1.5% target through until 2020 – T&E claims the Emirates and Arik Air currently have a one-way interline agreement, whereby historical industry trend of aircraft efficiency improvement is showing a declin- Emirates passengers are connected throughout Nigeria and West Africa via ing rate and is currently around 0.6% per year. Arik Air’s current domestic and regional network. Source: GreenAir Online The MoU was signed by Adnan Kazim, Emirates Divisional Senior Vice Presi- dent, Planning, Aeropolitical and Industry Affairs, and Chris Ndlulue, Arik Air’s REGULATORY TONE Managing Director, at Emirates Group Headquarters in Dubai. Emirates and Arik Air will also explore other areas of cooperation for the fu- Etihad Airways welcomes review by Swiss authorities on Darwin deal:Etihad ture, including frequent flier programmes, passenger and cargo handling. Airways has said that it is comfortable with the process of review being con- ducted by Switzerland’s Federal Office of Civil Aviation (FOCA) regarding an ENVIRONMENT agreement to acquire 33.3% of Swiss carrier Darwin Airline. Etihad was advised in June by FOCA that changes to the agreement would be US conservation groups to sue EPA over delays in finding aviation emissions needed to secure regulatory approval, the airline said in a statement. an endangerment to health: Conservation groups have filed a notice of intent Since then it has been working with FOCA and is amending the agreement to to sue the US Environmental Protection Agency (EPA) over a perceived failure ensure it complies with regulations, it added. and unreasonable delay by the government agency in addressing aviation’s FOCA said that Darwin, rebranded as Etihad Regional, has a deadline of 30 growing aviation emissions. The dispute goes back over six years to when the September to make the required changes, after which the agreement will un- group’s first petitioned EPA to carry out a mandatory duty under the Clean Air dergo a second review. Act to determine whether greenhouse gas (GHG) emissions from aircraft en- Etihad President and CEO Mr. James Hogan clarified that the Abu Dhabi car- gines cause or contribute to air pollution “that may reasonably be anticipated rier welcomes the move. A 66.7% investment in the airline will be retained by to endanger public health or welfare”. The mandate was upheld in a court Swiss investors and no Swiss interests will be compromised by Etihad’s invest- ruling in July 2011, and in 2012 EPA acknowledged its obligation to conduct an ment, the statement said. endangerment finding and indicated it would begin work, but has yet to take Source: Gulf Business any steps in the rulemaking process. EPA said it would “review and respond accordingly” to the notice but that it was currently working through ICAO on US DOT rejects, for now, Norwegian airline amid dispute: The U.S. Transpor- an international CO2 efficiency standard for new type aircraft. tation Security Anthony Foxx rejected on 2 September a Norwegian airline’s The 180-day notice was filed by the Center for Biological Diversity and Friends request to fly to the U.S. while the airline awaits a permanent decision on its of the Earth, which is being represented by Earthjustice. In their letter of no- oft-criticized application. tice to EPA Administrator Gina McCarthy, the organisations point out EPA has Norwegian Air Shuttle has subsidiary temporarily flying to New York,
Daily news on www.aaco.org Issue 90 - Sep 2014 31 Global Arab Aviation
Florida and California. Those flights are not affected by Foxx’s decision. But the company has applied to have another subsidiary, Norwegian Air In- ternational (NAI), fly permanent discount flights between Europe and the U.S. The application sparked intense opposition from rival airlines and unions because it would operate under a certificate from Ireland, where the airline doesn’t fly. Rivals said that would allow it to skirt labor and safety rules. Foxx announced in a three-page decision that it wouldn’t temporarily approve the discount carrier because approval is supposed to be used only in clear-cut cases. The rejection essentially confirms the complexity and contentiousness of the case. A tentative decision on the application will be issued after the department completes its deliberations, which have no deadline. Norwegian said it would continue flying its existing long-haul flights while awaiting a decision on its discount proposal. The carrier urged a quick decision in the case. ANA and Lufthansa Cargo obtain antitrust immunity for Japan-Europe joint venture: All Nippon Airways (ANA) and Lufthansa Cargo AG will launch a stra- tegic air cargo joint venture on routes between Japan and Europe and vice versa. This is the first worldwide cargo joint venture of its kind. ANA has re- ceived antitrust immunity, i. e. approval for the joint venture from the Japa- nese Ministry of Land Infrastructure and Transport after filing for it in spring 2014. In addition, the joint venture has been positively assessed by external counsel for compliance with relevant EU antitrust regulations. Now ANA and Lufthansa Cargo can jointly manage activities covered by the joint venture including network planning, pricing, sales and handling on all routes between Japan and Europe and vice versa. Based on a joint contract which shall be signed in the coming near period, the two carriers aim to in- troduce the joint approach on shipments originating from Japan to Europe in winter 2014/2015 and for shipments from Europe to Japan mid-2015. Source: ANA
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Daily news on www.aaco.org Issue 90 - Sep 2014 33 Global Arab Aviation AN AVIATION MARKET IN FOCUS: TURKEY Turkey’s domestic aviation in July 2014 Republic of Turkey • Population: 76.76 million Route Seat Capacity* 2 • Land area: 783,562 km Istanbul - Izmir 540,243 • Number of passengers in 2013: 135.4 million passengers • Number of commercial airports: 49 commercial airports Antalya - Istanbul 489,669 • Turkish-based airlines: Turkish Airlines, Atlasjet, Pegasus Airlines, Onur Air, Ankara - Istanbul 383,100 SunExpress, Freebird, Corendon, IZair, AnadoluJet, MNG Airlines, ULD Air- Source: AACO, FlightMaps Analytics Bodrum - Istanbul 353,720 lines Cargo, and Borajet Adana - Istanbul 271,915 Aviation Policy: - The General Directorate of Civil Aviation (Sivil Havacılık Genel Müdürlüğü) Istanbul - Trabzon 219,902 (http://web.shgm.gov.tr/) is the governmental body responsible for civil The 10 routes on the right account Dalaman - Istanbul 178,686 aviation in Turkey. for 59.9% of the total seat capac- Gazaiantep - Istanbul 177,567 - Liberalization and deregulation of the air transport sector in Turkey has ity scheduled within Turkey in July Kayseri - Istanbul 148,243 started in 2003. 2014. Istanbul - Samsun 131,093 Source: AACO, FlightMaps Analytics Traffic Share between Turkey and Other Regions Alliances Share of Seat Capacity Serving * This includes seat capacity in both directions in 2013 3.9% Turkey's Market 4.0% 0.9% 2% 2% 12.3% Arab World Airline Seat Capacity 9.2% Unaligned Turkish Airlines 6,444,324 Top 10 airlines operating by seat ca- Europe pacity to, from and within Turkey in Mid Asia Star Alliance Pegasus 2,189,646 July 2014 Australasia 41% Onur Air 434,016 The top 10 airlines on the left offered oneworld Atlasjet 288,880 almost 10.67 million seats (86.67% of Americas 55% Sunexpress 186,354 the scheduled seat capacity) to and Sub Sahrain Africa Sky Team from Turkey in July 2014. 69.6% Condor Flugdienst 187,102 For international passengers and based on O&D Source: AACO, FlightMaps Analytics Monarch Airlines 113,780 Source: AACO, IATA Lufthansa 112,700 Turkey aviation market links 296 cities worldwide(click on image for detailed view) airberlin 96,618 Route Seat Capacity* Aeroflot 93,503 Ercan - Istanbul 205,852 Source: AACO, FlightMaps Analytics Istanbul - London 174,866 Top 10 routes by seat capacity to and Istanbul - Paris 134,628 from Turkey in July 2014 Istanbul - Tel Aviv 125,976 Around 1.26 million seats were of- Istanbul - Tehran 122,656 fered on the top 10 routes to and Frankfurt - Istanbul 111,861 from Turkey in July 2014, represent- ing a 10.26% of the total capacity Amsterdam - Istanbul 108,310 offered to and from Turkey. Istanbul - Munich 97,815 Istanbul - Moscow 97,232 Istanbul - Vienna 83,737 Source: AACO, FlightMaps Analytics Source: AACO, FlightMaps Analytics July 2014 * This includes seat capacity in both directions Daily news on www.aaco.org Issue 90 - Sep 2014 35 Global Arab Aviation
WORLD NEWS • The United States is still the largest single air market in the world, in terms of total two-way traffic, international and domestic. ICAO task force sets out immediate actions responding to conflict zone risks: • The top five airlines ranked by total scheduled passengers carried were: The International Civil Aviation Organization (ICAO) has concluded its second 1. Delta Air Lines (120.6 million) two-day meeting in as many weeks of the Task Force on Risks to Civil Aviation 2. Southwest Airlines (115.3 million) arising from Conflict Zones (TF RCZ), establishing a well-defined overall work 3. China Southern Airlines (91.5 million) programme and two immediate projects. 4. United Airlines (90.2 million) The first pilot project agreed by the States, regional organizations and wide- 5. American Airlines (86.8 million) ranging industry groups who comprise the TF RCZ will explore how the Notice • The top three city-pairs based on passengers carried on international to Airmen (NOTAM) system already in place between States and operators routes were: could be better used to share urgent and critical conflict zone risk information. 1. Hong Kong-Chinese Taipei (4.9 million, down 11.5%) The second project will be piloted by key ICAO partners on a new centralized 2. Dublin-London (3.6 million, up 6.9%) system to be established for the prompt sharing of conflict zone risk informa- 3. Jakarta-Singapore (3.4 million, up 8.6%) tion. The ICAO TF RCZ was convened on an emergency basis in the aftermath • The top three city-pairs based on passengers carried on domestic routes of the downing of Malaysia Airlines Flight MH17. It’s main goal is to refine the were: roles and procedures relating to the mitigation of conflict zone risks in civilian 1. Jeju Seoul (9.58 million, up 1.4% over 2012) airspace. The TF RCZ will be meeting again in December for its next round of 2. Sapporo-Tokyo (9.17 million, up 4.7%) talks but ICAO will be delivering the group’s preliminary findings to the 203rd 3. Fukuoka-Tokyo (8.34 million, up 9.3%) Session of the ICAO Council in October 2014. Cargo Source: ICAO • Globally, cargo experienced weak growth with freight tonne kilometers up only 1.8% compared to 2012. However, this represents a reversal of the Tracking airline industry performance in 2013 – IATA World Air Transport 1.1% shrinkage over 2011. Statistics released:IATA published the 58th edition of the World Air Transport • The top five airlines ranked by total scheduled freight tonnes carried were: Statistics (WATS). Snapshot of 2013 industry performance: 1. Federal Express (7.1 million) Passenger 2. UPS Airlines (4.1 million) • System-wide, airlines carried 3.129 billion passengers on scheduled servic- 3. Emirates (2.1 million) es, an increase of 5.1% over 2012. 4. Korean Air (1.4 million) • Airlines in the Asia-Pacific region carried the largest number of passengers 5. Cathay Pacific Airways (1.3 million) of any region. The regional ranking (based on total passengers carried on Consumer and Business scheduled services by airlines registered in that region) is: • Airlines added over 1,100 direct airport-pair services and 600,000 frequen- 1. Asia-Pacific (1.012 billion passengers, an increase of 9.3%) cies in 2013, for a new total of 50,000 direct airport-pair services and 31.5 2. Europe (825.9 million passengers, up 3.4% over 2012) million frequencies. 3. North America (818.9 million, up 0.7% over 2012) • The price of air travel in real terms fell by 7.4% compared to 2012 4. Latin America and the Caribbean (240.5 million, up 7.6%) • The cost of shipping goods by air in real terms fell 7.1% 5. Middle East (157.9 million, an increase of 8.8%) Fuel 6. Africa (73.8 million, 5.6% up over 2012). • Fuel consumption represents about 2% of all fossil fuels burned worldwide • The top countries by region based on passengers carried (total both-ways, for all purposes, or about 12% of the total amount of fossil fuels consumed international and domestic) were: by all transportation. The average price of jet fuel in 2013 decreased by 1. Africa: South Africa (20.4 million, a decline of 0.1% compared to 2012) 3.9% compared to 2012. 2. Asia-Pacific: People’s Republic of China (404.2 million, an increase of • Total estimated cost of fuel was USD 210 billion or 31% of airline operating 11.8%) costs. 3. Europe: United Kingdom (177.9 million, up 3.7% over 2012) • Between 2005 and 2013, fuel efficiency improved by 11%. 4. Latin America and Caribbean: Brazil (92.9 million, an increase of 4.5% Airline Alliances over 2012 • Star Alliance maintained its position as the largest airline alliance in 2013 5. Middle East: United Arab Emirates (45.3 million, an increase of 11.7%) with 26.6% of total scheduled traffic (in revenue passenger kilometers), fol- 6. North America: USA (618.1 million, an increase of 3.3% over 2012.) lowed by SkyTeam (20.1%) and oneworld (15.4%). Source: IATA Daily news on www.aaco.org Issue 90 - Sep 2014 37 Global Arab Aviation
ACI Europe airport traffic report for June, Q2 & S1 2014 - “Europe’s airport Aviation day sets agenda for enhanced intra-African connectivity:The Inter- welcomed 5.5% more passengers during S1”: ACI EUROPE released its traffic national Air Transport Association (IATA) African Aviation Day emphasized the report for the first half of 2014. From January to end June 2014, passenger need for intra-African air connectivity to spread economic and social prosper- traffic at Europe’s airport grew by +5.5%. More specifically, passenger growth ity across the continent. In particular, IATA noted that the liberalization of air at airports in the EU reported a good result of +4.5% year-on-year - a positive rights for intra-Africa flights could yield significant benefits in both jobs and reflection of the return of economic growth of the block. At non-EU airports in GDP growth. Africa is well-placed to enjoy sustained economic growth thanks Europe (including Iceland, Israel, Norway, Russia, Switzerland & Turkey), pas- to a young, expanding and urbanizing population, combined with abundant senger traffic grew by +8.7% over the same period. natural resources. But because intra-African aviation connectivity and the Meanwhile, freight traffic - a universally acknowledged bellwether of eco- economic health of its airlines are weaker than they could be, opportunities nomic performance - reported robust growth of +4.6%. Finally, the growth in for job creation, business growth and innovation are being lost. African airlines aircraft movements (+2.9%) points to a welcome increase in airline capacity. are expected to return a profit of just USD 100 million in 2014, on a net profit During the first half of 2014, airports welcoming more than 25 million pas- margin of 0.8%, the lowest of all aviation regions. sengers per year (Group 1), airports welcoming between 10 and 25 million Enhanced connectivity:To provide African governments with a clearer view passengers (Group 2), airports welcoming between 5 and 10 million passen- of the benefits of intra-African connectivity, IATA formally launched a report gers (Group 3) and airports welcoming less than 5 million passengers per year showing that liberalization of air services across 12 African nations would cre- (Group 4) reported an average adjustment +4.8%,+7.8%, +2.8% and +6.1%. ate 155,000 jobs and boost GDP by USD 1.3 billion. The report by InterVIS- The ‘ACI EUROPE Airport Traffic Report – June, Q2 & S1 2014’ includes 208 TAS, an independent consultancy, calculated the positive economic impact of airports in total representing approximately more than 88% of European air implementing the 1999 Yamoussoukro Decision, which pledged to open up air passenger traffic. transport markets within Africa to transnational competition. The 12 nations Source: ACI Europe in the report are: Algeria, Angola, Egypt, Ethiopia, Ghana, Kenya, Namibia, Ni- geria, Senegal, South Africa, Tunisia and Uganda. ACI Asia-Pacific recorded 5% increase in passenger traffic in first half of 2014: Improved safety: The 2012 Abuja Declaration on African Safety by transport Passenger traffic growth slowed down for the month of June 2014, Asia-Pacific ministers of the African Union set out a goal for African aviation to match airports recorded a year-on-year increase of +3.3% while airports in the Mid- the average safety levels of the rest of the world by 2015. IATA has identified dle East posted an increase of +4.4%. 20 airlines for assistance in implementing IOSA. The Declaration also calls on Traffic growth for June 2014 showed mixed results across reporting airports. states to create well-resourced and autonomous Civil Aviation Authorities and Among the top five airports, Beijing (PEK) was the busiest but with negligible to implement safety management systems. growth (0.1%), while Tokyo Haneda (HND) and Hong Kong (HKG) posted solid Competitive infrastructure and costs:Improved consultation and partnership growth of 7.6% and 4% respectively. Both Jakarta (CGK) and Dubai (DXB) ex- between industry and government is the key to ensuring Africa enjoys compet- perienced a decline in growth from last year at (6.9%) and (8.5%) respectively. itive infrastructure and business costs. In many parts of Africa infrastructure The temporary runway closure at Dubai (DXB) continued to have a negative needs to improve, but it is important that improvements are funded according impact on passenger traffic. For year-to-date passenger traffic from January to to established international principles. Transparency and consultation are criti- June 2014, the Middle East continued to lead the region with a strong increase cal. of 9%, while the Asia-Pacific posted an increase of 5%. Tackling the challenge of Ebola: The spread of Ebola continues to be a sig- The Middle Eastern airports continued to demonstrate sturdy growth in 1H nificant medical challenge in the region. IATA is liaising closely with the World 2014 over last year, with Abu Dhabi (AUH, 19.4%) and Doha (DOH, 14.5%) Health Organization (WHO), which is taking the lead in tackling the disease. leading the pack with double-digit growth. Over 90% of reporting airports in The WHO has consistently stated that travel restrictions are unnecessary, most the Asia-Pacific recorded positive year-on-year growth in 1H 2014. Bangkok recently in their media note of 14 August 2014. The note specifically explains Suvarnabhumi (BKK) however, reported a decline of (12.1%), likely contributed that aviation is “low risk” for Ebola transmission, and that the “WHO does by the continuous political unrest in the city since late 2013. not consider air transport hubs at high risk for further spread of Ebola.” The Cargo traffic growth in the region continued the increasing trend but at a slow- aviation industry is taking all necessary precautions, such as introducing exit er pace in June 2014. Asia-Pacific airports recorded a year-on-year growth of screening at certain airports. Airlines also have well-tested procedures for han- 4.5% for the month of June 2014 while the Middle East recorded a decrease dling suspected cases of infection, including guidelines for isolation and care of (3.9%). Year-to-date growth was 5% for Asia-Pacific and 2.5% for the Middle for ill passengers, and measures for disinfecting aircraft. East. Source: IATA Source: ACI Asia-Pacific
Daily news on www.aaco.org Issue 90 - Sep 2014 39 Global Arab Aviation
EASA announces new organization: The European Aviation Safety Agency YTD 2014 vs. YTD 2013 RPK Growth ASK Growth PLF (EASA) revealed on 1 September 2014 a new organization which aims at pre- International 6.4% 6.4% 78.7 paring the Agency for the challenges of the coming years. The new organization will enable the Agency to engage more pragmatically Domestic 5.1% 4.3% 80.3 with the aviation industry. A strategy and safety management directorate has Total Market 5.9% 5.6% 79.3 been created in order to strengthen EASA’s overall strategy and to promote a data driven and performance-based approach to managing safety. All regu- International passenger markets latory functions have been integrated across the different aviation domains July international passenger demand rose by 5.5% compared to the same and more homogeneity has been introduced to better enable the Agency to month in 2013. This was outstripped by a capacity expansion of 6.2% which speak with one voice. Aviation is constantly evolving with innovative business resulted in a slight weakening of the load factor to 81.9% (down 0.5 percent- models and new technologies in order to achieve greater efficiencies. In turn, age points from the year-ago period, but still at a very high level). authorities are faced with the challenge to be more efficient and flexible to • European carriers reported growth of 5.3% in July compared to a year enable further growth for aviation. The new organization which becomes -ef ago. Capacity expanded slightly more aggressively at 5.6%, but the re- fective on 1 September 2014 also prepares EASA for new opportunities to gion still reported a very high load factor of 85.1%. While this is a robust enhance its role. These may derive from the ongoing revision of the Agency’s performance, latest indicators show a weakening in key European econo- founding regulation that will be finalized in the first quarter of 2015. mies such as Germany reflecting the impact of sanctions associated with The organization chart can be found here. the deepening Russia-Ukraine crisis. • Asia-Pacific airlines are benefitting from an improved economic envi- ICAO to support ground-breaking Solar Impulse around-the-world flight: The ronment. Demand growth was slightly above the global average at 5.6% International Civil Aviation Organization (ICAO) announced that it has officially which lagged a capacity increase of 6.8%. Load factor fell 0.9 percentage concluded an agreement to serve as an Institutional and Aeronautical Partner points to 78.9%. The biggest factor affecting demand developments is for the Solar Impulse 2015 around-the-world flight. ICAO’s partnership with the response of the Chinese economy to stimulus measures which saw Solar Impulse is in line with its current Strategic Objective to reduce green- year-on-year GDP growth reach 7.5% in July. house gas and other emissions from international civil aviation activity using a • North American airlines saw international demand grow by 2.9%--the multi-faceted approach. It also supports Article 44 of the Convention on Inter- slowest of all regions. Capacity expansion was nearly double that at 5.6%; national Civil Aviation, which stipulates in part that ICAO should develop air nonetheless the load factor stood at 85.1%. Overall business conditions navigation techniques and encourage the arts of aircraft design and operation are the strongest since mid-2010, which bodes well for the region’s carri- for peaceful purposes. ers. The Solar Impulse around-the-world series of solar-powered flights are set to • Airlines in the Middle East recorded the strongest growth at 9.2%. This take place over a five month period from March to July, 2015. A host city is was ahead of a capacity expansion of 8.2%. Load factor rose 0.7 percent- currently being identified in the Gulf region which will serve as the departing age points to 78.0%. The carriers are benefitting from the strength of and final landing destination. In order to effectuate pilot transfers, stopovers regional economies and solid growth in business-related premium travel. during its Northern Hemisphere flight will be scheduled in India, Myanmar, • Latin American carriers reported growth of 6.7%, in line with a 6.6% China, the United States and either Southern Europe or Northern Africa. capacity increase. Load factors stood at 82.5%. Robust economic perfor- Source: ICAO mance in Colombia, Peru and Chile is being offset by weakness in Brazil. Furthermore, regional trade volumes are not expanding, the impact of IATA Figures -- July passenger travel shows strong growth: IATA announced which has been a dialing down of travel demand from the 8% growth global passenger traffic results for July showing demand growth of 5.3% (mea- range experienced in 2013. sured in revenue passenger kilometers or RPKs) over the previous July. Capac- • African airlines reported growth of 4.9%, reversing the year-on-year ity expanded exactly in tandem with demand (5.3%), resulting in a global load contraction experienced in June. With capacity rising 4.5%, load factor factor of 82.3%, unchanged from last year. improved slightly to 70.2%. The biggest factor impacting international July 2014 vs. July 2013 RPK Growth ASK Growth PLF traffic demand in July was the slowdown of the South African economy. International 5.5% 6.2% 81.9 The Ebola outbreak in West Africa intensified towards the end of July, the impact of which will likely be seen in August. Domestic 4.9% 3.5% 83.0 Source: IATA Total Market 5.3% 5.3% 82.3
Daily news on www.aaco.org Issue 90 - Sep 2014 41 OUR PARTNER AIRLINES Partner Airlines
Looking at the Spanish market traffic flows, the international European market represented in June 2014 74.3% of the total market, and is expected to have shrunk to 70.3% in July 2014. Traffic between the Arab world and Spain repre- sented 1.3% of the total Spanish market in June 2014, and is estimated to have LATEST NEWS expanded to 1.5% in July 2014. Traffic statistics August 2014 - Group traffic and capacity statistics: In August Passenger Numbers' Change in the Spanish Air Transport Market 2014, Group traffic measured in Revenue Passenger Kilometres increased by Apr14-Jun14 & May14-Jul14* compared to same period in previous year 8.7 per cent versus August 2013; Group capacity measured in Available Seat 25% Kilometres rose by 9.5%. Group premium traffic for the month of August increased by 8.7% compared 20% to the previous year. 15% To download a PDF version of the results, please click here. Strategic developments: British Airways and Iberia have jointly launched a 10% new product which allows customers to hold a reservation and a fare for up 5% to 72 hours before deciding to purchase tickets. It applies to bookings for all flights operated by British Airways, Iberia, Iberia Express and Air Nostrum. The 0% Domestic -5% With Arab new scheme is designed to give travellers the time to make sure they’re happy With World With with their flight choices before paying. Australasia With the -10% Europe With Mid Americas with Sub On 1 September, Iberia resumed its flights between Madrid and Montevideo Asia Apr 14-Jun 14 Sahran as well as Santo Domingo. The airline is offering four weekly services to the Africa Uruguayan capital and five flights per week to the capital of the Dominican May14-Jul14* Republic. Iberia operates more than 200 weekly flights between Madrid and 16 Latin American destinations. Source: AACO, IATA *Estimated
SPAIN TRAFFIC In June 2014, Ryanair was the biggest carrier operating to, from and within The Spanish air transport market expanded by 9.3% in June 2014 over June Spain by number of passengers, boarding 3 million pax, which represented a 2013 in terms of number of passengers traveling to, from & within Spain, and decrease of 0.8% over June 2013 operations. is estimated to have shrunk in July 2014 by (3.1%) compared to July 2013. Monthly Passenger Numbers' Change in the Spanish Air Transport Market Top 15 Airlines Operating in the Spanish Market Aug13 to Jul14* compared to same month in previous year Airline Jun-14 Change Airline Jun-14 Change FR 2,994,166 0.8% DY 420,671 59.7% 15% IB 1,596,259 5.7% LH 297,136 (8.2%) 10% U2 1,235,825 4.2% DE 233,276 20.4% 5% VY 1,171,995 16.2% 4U 223,865 74.8% 0% AB 982,313 0.7% NT 220,595 1% -5% UX 592,329 6.9% BA 215,956 (1.8%) -10% LS X3 -15% 450,487 28.1% 207,276 11.4% -20% ZB 433,446 15% Grand Total 14,109,178 9.3% Source: AACO, IATA -25%
International Domestic Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 90 - Sep 2014 45 Partner Airlines
UK TRAFFIC Passenger Numbers' Change in the UK Air Transport Market The UK air transport market expanded by 5.6% in June 2014 over June 2013 Apr14-Jun14 & May14-Jul14* compared to same period in previous year in terms of number of passengers traveling to, from and within the UK, and is 20% expected to have shrunk by (8.7%) in July 2014 compared to July 2013.
Monthly Passenger Numbers' Change in the UK Air Transport Market 15% Aug13 to Jul14* compared to same month in previous year 10%
15% 5%
10% 0% Domestic 5% With Arab -5% With With World With the Australasia Europe With Mid Americas with Sub 0% Asia -10% Sahran Africa -5% Apr14-Jun14* May14-Jul14* -10% Source: AACO, IATA *Estimated In June 2014, easyjet was the biggest carrier operating to, from and within the International Domestic UK by number of passengers, boarding 3.4 million pax, which represented an increase of 2.4% over June 2013 operations. Source: AACO, IATA *Estimated Looking at the UK market traffic flows, the international European market Top 15 Airlines Operating in the UK Market represented in June 2014 68.1% of the total market, and is expected to have Airline Jun-14 Change Airline Jun-14 Change shrunk to 65.2% in July 2014. Traffic between the Arab world and the UK rep- resented 3.3% of the total UK market in June 2014, and is expected to have U2 3,409,271 2.4% KL 369,725 (0.9%) slightly decreased to 3.1% of the total traffic in July 2014. FR 2,981,735 0.4% LH 353,949 (8.4%) BA 2,662,266 4.0% W6 335,689 29.7% LS 783,555 24.7% EK 309,597 (3.8%) ZB 779,531 15.7% DY 278,706 30.8% BE 656,413 (0.3%) AF 230,090 (2.%) VS 447,225 (0.7%) UA 229,288 (7.9%) EI 393,224 (5.5%) Grand Total 17,682,457 5.6% Source: AACO, IATA
Daily news on www.aaco.org Issue 90 - Sep 2014 47 Partner Airlines
Monthly Passenger Numbers' Change in the Indian Air Transport Market Aug13 to Jul14* comapred to same month in previous year
LATEST NEWS 20% Jet Airways unveils Master Brand Plan: Jet Airways announced that it will streamline and align its domestic operation, creating a strong, uniform Jet -Air 15% ways master brand, simultaneously revitalizing its product and service offer- ing. Subject to government approvals, the Jet Airways master brand will cover 10% the whole fleet including services currently operated by JetLite, to deliver a consistent, high quality experience for guests. The Jet Airways master brand 5% will provide operational flexibility across the airline’s domestic fleet. JetLite currently operates a fleet of 11 aircraft under the JetKonnect™ brand 0% deployed across Jet Airways’ domestic network which includes more than 50 cities. These aircraft will be progressively repainted in the Jet Airways livery -5% over the coming months. In order to address the challenges of the increasingly competitive domestic market and better meet the needs of the Indian travelling public, the airline International Domestic will further enhance its domestic product offering, including improving con- nectivity within India and to and from international services, along with the Source: AACO, IATA *Estimated expansion of codeshare partnerships. A full service Business Class offering will implemented across all operations to Looking at the Indian market traffic flows, the domestic market represented in ensure a premium experience on the ground and in the air, along with recipro- June 2014 56.5% of the total market, and is estimated to have shrunk to 53.6% cal frequent flyer rewards and recognition in partnership with Etihad Guest. in July 2014. Traffic between the Arab world and India represented 18% of the Uniquely, JetPrivilege, which has recently announced an enhanced accrual and total Indian market in June 2014, and is estimated to have expanded to 19% in redemption structure, will provide more benefits and privileges for Jet Airways July 2014. domestic frequent flyers. In addition to the minimum 500 miles per flight, they Passenger Numbers' Change in the Indian Air Transport Market will now also gain tier and recognition benefits and be able to redeem domes- Mar14-May14 & Apr14-Jun14* compared to same period in previous year tic miles on international flights of Jet Airways and Etihad Airways, with plans to expand the benefits to its partner airlines. 16% 14% Improved Q1 performance shows Jet Airways strategy on track for profit- 12% ability in 2017: Jet Airways Group reported strongly improved performance 10% for the first quarter ending 30 June 2014, as its three year turnaround strategy 8% and the partnership with new minority shareholder Etihad Airways started to 6% impact the business positively. Compared to the same quarter of the previous 4% financial year; Jet Airways’ financial performance improved by INR M 904 or 2% 26%. The net loss before taxes is INR M 2,580 compared to a net loss of INR M 0% 3,485. -2% Domestic With Arab With World With Australasia With the Europe Within Mid Americas with Sub INDIA TRAFFIC Mar14-May14 Asia Int'l The Indian air transport market grew by 0.6% in June 2014 over June 2013 in Sahran terms of number of passengers traveling to, from and within India, and is esti- Apr14-Jun14* Africa mated to have shrunk in July 2014 by (2.4%) compared to July 2013. Source: AACO, IATA *Estimated
Daily news on www.aaco.org Issue 90 - Sep 2014 49 Partner Airlines
In June 2014, Indigo Airlines was the biggest carrier operating to, from and within India by number of passengers, boarding 1.77 million pax, which repre- sented an increase of 5.2% over June 2013 operations. Top 15 Airlines Operating in the Indian Market Airline Jun-14 Change Airline Jun-14 Change 6E 1,768,896 5.2% QR 144,592 5.7% AI 1,198,554 1.0% G9 129,217 (7.0%) 9W 1,130,700 2.0% SQ 124,439 1.2% SG 941,803 (14.3%) EY 109,024 69.2% G8 535,092 16.0% SV 105,696 19.7% EK 432,665 4.8% UL 101,983 17.1% S2 227,530 (34.9%) WY 101,656 0.1% IX 201,359 (8.6%) Grand Total 8,524,776 0.6% Source: AACO, IATA
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Daily news on www.aaco.org Issue 90 - Sep 2014 51 Partner Airlines
Looking at the Turkish market traffic flows, the European market (international traffic between Turkey and Europe) was the biggest market. It accounted for 42.5% of June 2014 traffic, and is expected to have shrunk to 40.8% in July 2014. The Domestic market was the second biggest market, accounting for LATEST NEWS 39.1% of June 2014 traffic, and is expected to have expanded to 42.6% in July Turkish Airlines recorded 398 million TRY net profit in the second quarter and 2014. On the other hand, traffic between the Arab world and Turkey repre- 172 million in first half of 2014:Turkish Airlines’ first half 2014 consolidated sented 7.9% of the total Turkish market in June 2014, and is expected to have financial statements were reported to Borsa Istanbul. Compared to the same expanded to 6.2% in July 2014. period of 2013, sales revenue increased by 37% (15% in USD terms) reaching Passenger Numbers' Change in the Turkish Air Transport Market 11.3 billion TRY. Turkish Airlines recorded 495 million TRY operating profit and Apr14-Jun14 & May14-Jul14* compared to same period in previous year 398 million TRY net profit in the second quarter of 2014, completing the first 25% half year with 312 million TRY operating profit and 172 million TRY net profit. During the first half of 2014, 26 million passengers were carried implying a 17% 20% increase in passenger traffic. Available seat kilometers (ASK) and revenue pas- 15% senger kilometers (RPK) increased by 19%, resulting in a stable load factor of 79%. Number of international to international transfer passengers increased by 10% 28% reaching a 44% share of international passengers. 5% Turkish Airlines adds flights to Asmara:Turkish Airlines added flights to Asmara 0% Domestic on 19 August. Turkish Airlines’ Asmara flights will be operated 3 times a week. With Arab With World With Australasia With the Europe With Mid Americas with Sub Turkish Airlines adds flights to Tlemcen and Batna in Algeria:Tlemcen and Int'l Asia Batna became the newest destinations to of the Turkish Airlines in Algeria. The Apr14-Jun14 Sahran flights to Tlemcen and Batna, have starting on 31 July 2014, twice a week. May14-Jul14* Africa Source: AACO, IATA *Estimated TURKEY TRAFFIC The Turkish air transport market in June 2014 grew by 14.4% over June 2013 In May 2014, Turkish Airlines was the biggest carrier operating to, from and in terms of number of passengers traveling to, from and within Turkey, and is within Turkey by number of passengers, boarding 3.07 million pax, hich repre- estiamted to have grown in July 2014 by 1.8% compared to July 2013. sented an increase of 11.3% over May 2013 operations. Monthly Passenger Numbers' Change in the Turkish Air Transport Market Top 15 Airlines Operating in the Turkish Market Aug13 to Jul14* compared to same month in previous year Airline Jun-14 Change Airline Jun-14 Change 80% TK 3,151,329 10.0% SU 78,681 49.4% 70% PC 1,231,404 19.6% ZB 76,489 6.8% 60% 50% XQ 380,487 89.4% X3 73,986 (3.9%) 40% 8Q 261,590 7.5% U2 60,342 (16.6%) 30% KK 212,287 19.4% UN 44,479 209.5% 20% 10% DE 114,237 18.0% LS 44,347 45.8% 0% AB 92,305 (22.2%) XG 42,653 68.5% -10% LH 87,497 (5.4%) Grand Total 6,856,182 14.4% Source: AACO, IATA
International Domestic Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 90 - Sep 2014 53 OUR INDUSTRY PARTNERS NEWS Our Partners News
Amadeus and United Airlines implement Amadeus’ Ancillary Services Solution to merchandise Econo- my Plus® extra-legroom seats: Amadeus and United Airlines announced the successful launch of Ama- The world’s newest widebody airliner, the Airbus A350-900, successfully completed a series of Route deus’ Airline Ancillary Services Solution using NDC-XML (v1.0) connectivity. This marks the industry’s first Proving trials, receiving an enthusiastic welcome at each of the 14 cities it has visited recently. At the NDC-XML solution in the travel agency channel in North America. technical Route Proving the aircraft must demonstrate its readiness for airline operations on a global “We are excited to be working with Amadeus to merchandise our Economy Plus® extra-legroom seats scale. This last series of trials is required for Type Certification, which is expected in Q3 this year. via our travel agency partners,” said Scott Wilson, United’s Vice President of Merchandising and eCom- merce. “NDC-XML connectivity allows us to use a next-generation industry standard to effectively- mer The A350 XWB completed its Route Proving after landing in Toulouse, France on August 13th (17:00 UTC) chandise our portfolio of products and services to our customers.” coming from Helsinki, Finland. The exercise took the flight test aircraft, MSN 005, across the globe on an Amadeus is committed to delivering leading merchandising technology to its airline customers while giv- impressive 20-day trip flying over the North Pole, each ocean and stopping at 14 major international air- ing agencies extensive new content to best serve traveller needs. Amadeus’ Ancillary Service Solution is ports world-wide. During its World Tour, the aircraft flew approximately 81,700 nm /151,300 km in some now integrated and supporting airlines to deploy ancillary services in over 95 markets worldwide. Cur- 180 flight hours, with all flights performing on schedule. The aircraft was operated by Airbus flight crews rently, 58 airlines have signed up for the leading merchandising technology, with United becoming the as well as Qatar flight crews on the route from Doha to Perth, Moscow and Helsinki. The Airworthiness first to do so using NDC-XML (v1.0) connectivity in North America. Authority pilots from the European Aviation Safety Agency also participated and flew the aircraft on two With this launch, Amadeus subscribers in the U.S., Puerto Rico and the Virgin Islands can now easily and legs. seamlessly book United’s extra-legroom seats for their customers. The integrated ancillary services solu- tion provided by Amadeus enables agents to proactively offer and book United’s Economy Plus seats for On a different note, the Airbus A350 XWB, made its Brazilian debut, arriving at Guarulhos International their customers during the initial booking or after a ticket has been issued. Implementation planning for Airport (GRU), in Sao Paulo, on Wednesday 6 August, its Chilean and South American debut on Thursday rollout of the carrier’s Economy Plus seats in Amadeus’ other global markets is underway. 7 August, arriving at the FIDAE fairgrounds located in the Santiago Arturo Merino Benítez International Airport, its debut in New Zealand, landing at Auckland International Airport carrying VIP guests on South African Airways moves to real-time revenue accounting with Amadeus:South African Airways August 5, from Sydney. Earlier in the day, the A350 XWB touched down in Sydney from Johannesburg, (SAA) and Amadeus announced a landmark agreement that will see the airline and its franchisees mi- South Africa. On top, it made its debut in Australia, landing at Sydney’s Kingsford Smith International grate to Amadeus Passenger Revenue Accounting. airport on August 5, after flying in from Johannesburg, South Africa. SAA, which flies nine million passengers annually and has an international network that connects South Airbus - AACO Partner since 1997 Africa to every major continent in the world, will now adopt the latest addition to Amadeus’ portfolio of airline IT solutions, enabling it to manage complex revenue accounting processes. Amadeus Passenger Revenue Accounting, which is fully integrated with the Altéa Suite, provides real- time sales and usage data for all types of revenue. Interline information is also processed instantly, which streamlines revenue-sharing between airline partners and accelerates the interline cash flow cycle. South African Airways’ adoption of Amadeus’ Passenger Revenue Accounting solution follows customer signatures from two other major airlines, Saudia, a member of Sky Team; and British Airways, a member of the oneworld Alliance. Amadeus - AACO Partner since 2000
Daily news on www.aaco.org Issue 90 - Sep 2014 57 Our Partners News
ADNOC Distribution is an integrated oil energy company. Founded in 1973, ADNOC Dis- tribution market and distributes petroleum products and services within the United Arab Emirates. Creating Value * Sector Expertise * Rigor & Discipline As one of the largest government-owned petroleum companies in the Arab Gulf, ADNOC Distribution has grown to become a national institution and a major economic driver for Founded in 2002, Apollo Aviation Group (“Apollo Aviation”) is a multi-strategy alternative investment the UAE economy. manager specializing in commercial aviation including buying, selling and leasing aircraft and engines. The company is renowned for its innovative and dynamic approach offering a wide variety of petroleum With more than USD 1.30 billion of assets under management as of June 30, 2013, we are one of the and natural gas products and services. world’s leading mid-life and mature commercial aircraft and engine operating lessors and investment ADNOC Distribution is committed to providing its customers and strategic partners with reliable products managers. In the first quarter of 2013, Apollo Aviation formed, AAG Capital Markets LLC, to manage of exceptional quality and services. investments in aviation securities. Led by its founders, William Hoffman and Robert Korn, Apollo Aviation is currently investing a near USD Regional Main Contact 595 million real asset fund, the Sciens Aviation Special Opportunities Investment Fund II (“SASOF II”), Name: Mr. Naser Hasan Saleh, International Aviation Sales Department.Sales Manager-AVSD - Aviation and harvesting a USD 213 million real asset fund, Sciens Aviation Special Opportunities Investment Fund Sales Division (“SASOF”) as well as several private accounts. Telephone: +97126901419 We have built a strong team with deep industry knowledge and extensive relationships throughout the Fax: +97126723399 world’s aviation industry. We seek innovative and creative solutions to create value. Email: [email protected] Website: www.adnoc-dist.ae Regional Main Contact ADNOC - AACO Partner since 2002 Name: Mr. Pascal Picano, Head of Global Marketing Telephone: +353 1 497 6621 Fax: +353 1 497 6317 Email: [email protected] Website: www.apollo.aero Apollo- AACO Partner since 2013 Are you prepared for tomorrow’s challenges? A highly competitive indus- try, rising customer numbers and growing customer demands requires a multi-faceted fare strategy to both protect and improve revenue. In the Air France-KLM and Air France Consulting contribute to set up Congo Airways: The government of the past year alone, AACO members saw a 13% increase in offered seats and 2.4% boost in international Democratic Republic of Congo signed with Air France-KLM and Air France Consulting an agreement to passengers.* Rapid growth requires solid fare management strategies to help effectively capitalize on the manage the launching of a Congolese airline company based in Kinshasa. current momentum and to look to the future for new ways to forge ahead. You need a proven partner in The future national carrier Congo Airways will operate initialy domestic flights with a fleet of about ten distribution excellence and workflow efficiencies. ATPCO is here to help. aircrafts. With a 50-year history of leading the industry in defining standards and implementing industry solu- Air France Consulting - AACO Partner since 2008 tions, ATPCO assists airlines by offering next-generation fare management products that align with New Distribution Capabilities, (NDC), support in-depth analysis of your fare management strategy and boost customer satisfaction through the unbundling of your services. Helping you implement your strategies to overcome the complex challenges of both today and tomorrow is what we do best. Next month we will look at NDC as it relates to your market and detail how a good fare management strategy can help prepare you for these changes. We are available to provide counsel and answer questions. Please contact us: Europe, Middle East and Africa Frank Socha, Regional Director Email: [email protected] +44-20-8572-1322 1 Lampton Road Hounslow, Middlesex TW3 1HY United Kingdom *The NASHRA, July 2014 ATPCO - AACO Partner since 2014
Daily news on www.aaco.org Issue 90 - Sep 2014 59 Our Partners News
Toulouse, Southern France based regional aircraft manufacturerATR is the BOC Aviation reports USD 163 million in first-half net profit after tax:BOC world leader in the 50 to 74-seat turboprop market. The ATR 42 and ATR 72 are Aviation achieved USD 163 million in net profit after tax for the six months the perfect solution on short-haul routes around the world. ATR has become ended 30 June 2014, with a record number of deliveries in the first half to the leader in its category by offering reliable, easy-to-maintain, comfortable and boost the fleet size above 250 for the first time. Total assets rose to USD 10.8 billion. environment-friendly aircraft to airlines operating on the regional transport market, at a cost well below The Company held USD 496 million in total cash and had over USD 2.3 billion in unutilized committed that of its competitors. credit facilities as of 30 June. It paid a dividend of USD 139 million in June 2014 to Bank of China, which ATR was established in November 1981 and benefits from the experience and know-how of two of the acquired the Company in December 2006. BOC Aviation maintained investment grade credit ratings from major leading European aerospace industries, Alenia Aermacchi and the Airbus Group, who each have a Fitch Ratings (A-) and Standard & Poor’s (BBB), and raised over USD 1.2 billion in new financing from the 50% share in the ATR programme. debt capital markets and banking markets in the six-month period. Since its creation, ATR has sold over 1,400 aircraft to over 180 operators based in 91 countries. ATR In the six months ended 30 June, BOC Aviation took delivery of 37 new aircraft, and sold 12 owned and planes have totaled over 21 million flight hours. It currently has 1000 aircraft flying over 90 countries of managed aircraft. At the end of the period, the portfolio comprised 251 aircraft, – 232 owned and 19 the world in the livery of more than 180 airlines. ATR is also well established in the Africa & Middle East managed – in service with 56 airlines in 30 countries worldwide. The Company has one of the youngest region, with more than 100 aircraft flying for 35 carriers over 25 countries. fleets in the industry with an average owned aircraft age of less than four years. ATR is committed to a continuous process of improvement of its aircraft to meet the market needs and First-half highlights include adding two new customers, Aeromexico and WestAir, completing the deliv- passenger appeal. According to this principle, ATR launched in 2007 the newest ATR -600 series aircraft, ery of six Embraer E190 aircraft to KLM’s subsidiary, KLM Cityhopper, and delivering an Airbus A321 to which entered into service in 2011. Both the ATR 42-600 and the ATR 72-600 feature the latest techno- Etihad, making it the airline’s 100th aircraft in its fleet. In April, BOC Aviation also completed the delivery logical enhancements while building upon the well-known advantages of the ‘–500 series’ ATRs, namely of a dozen new Airbus aircraft – eight A330-300 and four A320 aircraft – to Iberia, demonstrating the their high efficiency, proven dispatch reliability and low fuel burn and operating cost. The new ATR -600 company’s ability to support large capital volume transactions. series feature new cabin interior designs and a totally new full-glass avionics suite, and has become the BOC Aviation places first order for Boeing 737 MAX aircraft:BOC Aviation is pleased to announce an new reference among regional aircraft all over the world. order for a total of 80 Boeing 737 series aircraft for delivery from 2016 to 2021, as the company builds Regional Main Contact: Mr. Milco Rappuoli, Sales Director on its pipeline for the next seven years. The order comprises 50 737 MAX 8 and 30 Next Generation 737- Telephone: +33 5 62 21 65 83 Fax: +33 5 62 21 66 76 Email: [email protected] 800 aircraft. The company also ordered two 777-300ER aircraft, which have already been placed with an Website: www.atraircraft.com ATR - AACO Partner since 1998 existing customer. BOC Aviation - AACO Partner since 2003
Bloomberg, the global business and financial information and news leader, gives decision makers a criti- Boeing celebrates delivery of Royal Jordanian’s first 787 Dreamliner:Boeing and Royal Jordanian cal edge by connecting them to a dynamic network of information, people and ideas. celebrated the delivery of the airline’s first 787 Dreamliner. The airplane will play a central role in the Amman-based airline’s strategic plan for fleet modernization. Royal Jordanian acquired this airplane The company’s strength – delivering data, news and analytics through innovative technology, quickly through leasing company AerCap. With this delivery, Royal Jordanian becomes only the second airline in and accurately – is at the core of the Bloomberg Professional service, which provides real time financial the Middle East to operate the 787. information to more than 315,000 subscribers globally. Bloomberg Industries (BI) provides subscrib- Boeing, BOC Aviation announce order for 82 airplanes:Boeing announced an order by BOC Aviation for ers interactive, continuously updated industry research and data. BI’s team of more than 100 research 50 737 MAX 8s, 30 Next-Generation 737-800s and two 777-300ERs (Extended Range). The order, valued professionals covers over 100 industries globally, offering in-depth data and analysis for each industry’s at USD 8.8 billion at list prices, is the largest in BOC Aviation’s 20-year history and part of the Singapore- drivers, metrics, competitors, themes and earnings. The BI portal also aggregates information from more based leasing company’s effort to grow its portfolio of fuel-efficient airplanes. than 200 third-party providers. Boeing partners with South African Airways to turn new tobacco plant into jet fuel: Boeing, South African Airways (SAA) and SkyNRG announced they are collaborating to make sustainable aviation bio- Regional Main Contact fuel from a new type of tobacco plant. This initiative broadens cooperation between Boeing and SAA to Name: Mr. George T. Ferguson, IV, CFA develop renewable jet fuel in ways that support South Africa’s goals for public health as well as economic Position:Senior Analyst Aerospace/Defense & Airlines and rural development. Telephone: +1- 609.279.3591 Boeing, Silk Way Airlines celebrate delivery of two 747-8 Freighters: Boeing and Silk Way Airlines Email: [email protected] celebrated the delivery of the airline’s two 747-8 Freighters. The first airplane delivered last week and Website: www.bloomberg.com the second airplane delivered today. Both new 747-8 Freighters will bring new levels of efficiency to the Bloomberg - AACO Partner since 2013 Baku, Azerbaijan-based cargo carrier. Boeing- AACO Partner since 1998
Daily news on www.aaco.org Issue 90 - Sep 2014 61 Our Partners News
Engine Lease Finance Corporation (ELFC)extended its position as the world’s largest independent aero-engine lessor in 2012 with another record year of spare engine portfolio growth. We maintained keen focus on spare engine support for our numerous customers in the MENA region with further growth in short and long term engine lease support to airline members of AACO. Connected thinking for the air cargo community: CHAMP Cargosystems provides the most comprehen- sive range of integrated IT solutions and distribution services for the air cargo transport chain. The port- We are very proud to play a support role in 2013 in the success of MENA airlines, large and small and will folio spans core management systems, messaging services, and eCargo solutions. These include applica- continue to offer our products during the coming year: tions to meet customs and security requirements, quality optimization as well as e-freight and mobility • Shop Visit Cover – leasing of our spare engines into airlines to cover short term scheduled and un- needs. The products and services are well known under the Cargospot and Traxon brands. scheduled engine removals; The company serves over 200 airlines and GSAs, and links these with some 3,000 forwarders and GHAs • Long term Engine provision – leasing our engines over several years to provide our airline custom- worldwide. CHAMP’s solutions help its customers and their clients adapt to critical and continuous ers with cost efficient operation of spare engines, removing the capital intensive demand of spare changes in air transport logistics to meet global trade demands. engine acquisition; CHAMP Cargosystems is headquartered in Luxembourg and operates offices in London, Zurich, Frankfurt • Purchase-leaseback of engines owned by airlines. With the backing of our parent company Bank of / Main and Manila. For further information see: www.champ.aero Tokyo-Mitsubishi UFJ. Ltd. we have the financial resources required to provide clear financial and operational benefits for our customers. CHAMP Cargosystems – Connected thinking for the air cargo community. We have a wealth of experience to share – without obligation. Regional Main Contact Name: Mrs. Manuela Carvalho, Head of Global Marketing For more information, please contact Senior Vice President Mr. Julian Jordan at e-mail: julian.jordan@ Telephone: +44 (0) 20 8587 8018 elfc.com Email: [email protected] ELFC- AACO Partner since 2003 CHAMP - AACO Partner since 2010
Farelogix executives to take center stage at EMEA fall events:Executives from Farelogix, a recognized BOC Aviation places USD 2 billion order for LEAP-1B and CFM56-7B engines:BOC Aviation today an- travel industry leader whose innovative technology is modernizing the airline commerce and distribution nounced an order for 100 LEAP-1B engines to power 50 new Boeing 737 MAX 8 aircraft, as well as 60 landscape, will be speaking at airline industry events in the Middle East this fall. CFM56-7BE engines to power 30 additional Boeing Next-Generation 737s. CFM values the total engine Farelogix President and CEO Mr. Jim Davidson and Mr. Rui Sequeira, Vice President of Sales and Business order at USD 2 billion at list price. Development, will address attendees at the Arab Air Carriers Organization (AACO) Business Technology In addition to today’s LEAP-1B engine order, BOC Aviation has also placed orders for the LEAP-1A to Forum 2014, in Amman, Jordan, from September 15 to 16, 2014. power Airbus A320neo aircraft and the LEAP-1C engine to power the COMAC C919. Mr. Sequeira will also speak at The Travel Marketing Forum 2014 in Dubai on September 24, 2014. This The foundation of the LEAP engine is heavily rooted in advanced aerodynamics and materials technol- conference brings together travel marketing thought leaders to discuss current issues, insights, and pre- ogy development programs. The engine is designed to provide 15 percent better fuel consumption and dictions. an equivalent reduction in CO2 emissions compared to today’s best CFM engine, along with a 50 percent Mr. Davidson will also present at World Low Cost Airlines MENA 2014 in Dubai in October. reduction in oxides of nitrogen emissions, and up to a 75% reduction in the engines noise footprint. All Farelogix representatives will also be available at the AACO 47th Annual General Meeting from Novem- this technology brings with it CFM’s legendary reliability and low maintenance costs. ber 18 – 20, 2014 in Dubai. All of BOC Aviation’s new Next-Generation 737s will be powered by the CFM56-7BE engine, the produc- Airlines interested in scheduling a meeting with Farelogix at any of these events can contact Mr. Rui Se- tion configuration introduced in mid-2011. CFM used advanced computer codes and three-dimensional queira, Vice President Sales and Business Development at Farelogix ([email protected]), based in design techniques to improve airfoils in the high- and low-pressure turbines for better engine perfor- the United Arab Emirates. mance. In addition, the company improved engine durability and reduced parts count to achieve lower Farelogix - AACO Partner since 2013 maintenance costs. When combined with airplane improvements, the engine provides two percent bet- ter fuel efficiency and up to four percent lower maintenance costs. CFM - AACO Partner since 1998
Daily news on www.aaco.org Issue 90 - Sep 2014 63 Our Partners News
One agreement – unlimited interline opportunities:Interlining has never been easier. Just one IATA industry standard Interline Agreement with the leader in the airline distribution industry, Hahn Air, and you elevate your GE Capital Aviation Services delivers leased Airbus A320 to new customer VietJet Air:GE Capital Avia- airline’s commercial strategy by opening sales in 190 markets and taking advantage of interline possibili- tion Services Limited (GECAS) announced delivery of a leased Airbus A320 aircraft to its new airline ties with over 260 carriers. customer VietJet Air. VietJet Air, a private, low-cost carrier, operates a fleet of 15 aircraft to destinations in Vietnam as well as Hahn Air offers you the opportunity to: Singapore, South Korea and Thailand. • obtain 100% incremental revenue from over 190 markets worldwide GECAS completes purchase and leaseback of Airbus A330-300 with Philippine Airlines: GE Capital • increase your interline volume Aviation Services Limited (GECAS) announced completion of a purchase-and-leaseback transaction with • grow your global presence Philippine Airlines involving a new Airbus A330-300 aircraft. Philippine Airlines, the flag carrier of the • generate sales without risk and complexity Philippines, operates a fleet of some 50 aircraft to more than 40 destinations. • open up new market segments GECAS expands turboprop fleet with purchase and leaseback of two Bombardier Q400 NextGen aircraft with Nok Air: GECAS announced it added a new aircraft type to its owned fleet with the comple- Team up with Hahn Air and you’ll secure the most economical solution that covers all your interlining tion of a purchase-and-leaseback transaction with Nok Air involving two new Bombardier Q400 NextGen needs while mitigating 100% of the risks and complexity associated with sales in over 190 markets. turboprops. The first aircraft delivered to Nok Air on 26 August 2014 and the second is scheduled for delivery in We absorb the responsibility if an agency fails or becomes insolvent. Credit card fraud or currency de- September. The Bombardier Q400 NextGen, also known as the DHC8-400, features updated cabins, LED valuation also falls under our broad umbrella of coverage. No bank guarantees necessary, thus allowing lighting, larger windows, larger overhead bins, and improved landing gear. The Q400 NextGen aircraft is you to concentrate on increasing your distribution. configured to seat 86 passengers. Nok Air currently operates a fleet of 19 aircraft, each featuring a colorful livery resembling a bird. The If you want to learn more about Hahn Air’s solution, please contact Mr. Rick Saggar at r.saggar@hahnair. airline serves more than 24 destinations. GECAS currently leases 3 Boeing 737-800 aircraft to Nok Air. com. GECAS - AACO Partner since 2003 Hahn Air - AACO Partner since 2014 GlobalCollect and Newzoo: Brazil dominates the fast growing Hogan Lovells is a global legal practice that helps corporations, financial institutions, LATAM games market: GlobalCollect announced the publication of and governmental entities across the spectrum of their critical business and legal is- a new report: “The Changing Payment Landscape in LATAM: Pay- sues globally and locally. We have over 2,500 lawyers operating out of more than 40 ments, Intelligence and Trends”. The original research is based on exclusive video game transaction data offices in Africa, Asia, Europe, Latin America, the Middle East, and the United States. from GlobalCollect’s Elevate analytics platform, and core intelligence from international gaming market Hogan Lovells is one of a small number of leading global law firms with in-depth research firm Newzoo, with a special focus on the unique payment landscape in LATAM. knowledge in aviation-related matters worldwide. Our aviation team regularly- re This third report in the ‘GlobalCollect Video Gaming Payments: Knowledge Series’ is a deep look into the ceives first-tier rankings from Chambers USA., which notes in its 2014 edition “An excellent law firm, distinct trends shaping the fast-growing Latin America region. Key takeaways include: staffed by outstanding attorneys, that achieves results; impressive by any measure.” We are also known 1. The LATAM Region will experience a 14% YoY growth in video game revenues by end 2014, dwarfing for strong cross-border and asset finance work in global markets, earning praise from The Legal 500 for both the EMEA (12%) and North America (1%). This makes LATAM the second most rapidly growing “clarity of thought, a solutions-driven approach and exceptionally talented partners.“ games market in the world, exceeded only by APAC region (15%) Clients benefit from our aviation lawyers’ experience in public service, which include positions as Chief 2. Brazil and Mexico account for the biggest share of total LATAM 2014 revenues, with Brazil generat- Counsel of the U.S. Federal Aviation Administration (FAA), Special Assistant to the Secretary of Transpor- ing USD 1.38 BN and Mexico USD 1.0 BN tation, Special Counsel to the Administrator of the FAA, Special Assistant to a member of the National 3. Brazil & Argentina are the most challenging markets from a payments point of view with strict laws Transportation Safety Board and Executive Assistant to the Chair and Vice Chair of the Civil Aeronautics about taxation and repatriation of funds Board. In addition, our aviation lawyers team with lawyers from the firm’s network of more than 40- of 4. Authorization rates for cross-border commerce are much lower than for local acquiring, though lo- fices worldwide to address a broad range of legal issues, including antitrust, corporate, finance, environ- cal acquiring has drawbacks such as higher start-up costs & overhead mental, tax, litigation, lobbying, and regulatory matters. 5. Brazil, Mexico and Argentina contribute the biggest portion of online game transactions in LATAM, We represent all segments of the aviation industry, such as air carriers, airports, corporate aircraft own- especially in the MMORPG segment ers and operators, municipalities, aerospace manufacturers, repair facilities, aviation trade associations, 6. Ecuador and Venezuela, while possessing relatively low transaction numbers compared to countries foreign governments, business aviation operators, fractional ownership providers, unmanned aircraft like Brazil and Mexico, are the countries with the highest LATAM 2014 Fraud Ratios systems providers and operators, and aircraft leasing and financing organizations. The insights we derive The free report can be downloaded here. from our diverse practice enable us to achieve our clients’ goals more efficiently and effectively. GlobalCollect - AACO Partner since 2007 Hogan Lovells - AACO Partner since 2014 Daily news on www.aaco.org Issue 90 - Sep 2014 65 Our Partners News
SwiftBroadband flight deck services take to the skies:Inmarsat has announced Established in January 1980 and based in Toulouse, IAS is the French Aero- the first successful installation and on-going trials of its ACARS1-capable Swift- space Industry Association (GIFAS) agency for international professional Broadband (SB) Safety equipment on an Airbus A319. training. SB Safety enables the fast, efficient transfer of ACARS data messages over the IAS mission is to design and implement professional training solutions dedi- SwiftBroadband link. Installed in May this year, Inmarsat has been closely monitoring the system on cated to foreign professionals operating in the aeronautic and space sector, as partners and/or custom- board the aircraft, which has consistently surpassed performance expectations. ers of the French industry. As well as ACARS, SB Safety also supports flight deck voice services and IP connectivity to the flight Whether based upon the schools’ academic training or tailor-made by IAS, these solutions leverage the deck, enabling other flight operations and cockpit services, such as inflight updates to Electronic Flight know-how of IAS educational partners and the expertise of its industrial lecturers coming from leading Bags and Flight Data Recorder downloads. It also supports aircraft position reporting and tracking, and players such as Airbus Group, Thales Group, Dassault Aviation, and Safran Group. voice transmission for Air Traffic Management communications. A range of terminal variants is available, Backed by GIFAS, IAS can build upon its location in Toulouse (close proximity to ISAE, ENAC, CNES and the ensuring SB Safety can meet the requirements of all aircraft types, from the largest passenger types to future Toulouse Montaudran Aerospace Technoparc), and its strong international network. business jets. IAS fast facts: The A319’s airborne hardware is Cobham’s AVIATOR 300D, part of a range which includes low-cost termi- • more than 3500 professionals from more than 100 countries trained to date, nals with low weight and drag. SITA is the communications service provider and Satcom Direct is respon- • customer portfolio of over 150 leading players in the aeronautic and space industry, sible for the on-board flight deck and cabin services. The entire system has undergone SITA’s Verification • more than 10 training sessions per year, and Qualification (VAQ) testing procedure. • 2013 turnover: 3.6 million Euros, SB Safety is expected to achieve FANS approval in early 2016, following flight trials on commercial air- • permanent staff: 12 (as of end 2013) working in 3 teams: Management, Business Development, and craft. Operations. 1The Aircraft Communications Addressing and Reporting System (ACARS) is a digital datalink system for the transmission of short messages between aircraft and ground stations via Regional Main Contact: airband radio or satellite. It is a highly reliable text-based message system used extensively by the aviation industry. Name: Mrs. Monia Zaki, International Project Manager Inmarsat - AACO Partner since 2013 Telephone: +33 5 62 17 33 83 Fax: +33 5 61 55 16 97 Email: [email protected] IAS - AACO Partner since 2008 Innovata, a global leader in travel and hospitality content management and Jeppesen appointed by Gulf Air to provide FliteDeck Pro distribution solutions is recognized as a major industry source for worldwide on iPad: Jeppesen recently signed a new three-year service airline schedule and related data. As a partner of IATA in marketing the contract with Gulf Air to provide the airline with Jeppesen FliteDeck Pro electronic flight bag (EFB) ser- Schedule Reference Service (SRS) to the aviation and consulting industries, vices on iPad. The agreement allows Gulf Air to continue its digital transformation by eliminating paper- Innovata maintains one of the world’s largest flight databases (passenger and cargo) representing more based flight information on the ground and in the air. The new service agreement continues a long-stand- than 99% of the air segment miles flown worldwide, containing over 900 airlines, 95% of which are up- ing customer relationship, which includes tailored Jeppesen digital navigation information for the airline. dated and refreshed every week. AOPA announces transition back to Jeppesen for online flight planner service:The Aircraft Owners and Innovata delivers comprehensive, accurate and reliable up to date information to meet a wide range of Pilots Association (AOPA) is announcing a change in its online flight planning member benefit. Starting in data service needs for aviation related industries and is the market leader in the provision of timetables 2015, AOPA will return to the AOPA Internet Flight Planner (AIFP) powered by Jeppesen, thus retiring the and route mapping services, via all distribution channels, to airlines and airports worldwide. current flight planner, FlyQ Web. AIFP will remain a free member benefit. Take a look on the AACO website at the dynamic and interactive route network mapping service pro- A “beta” version of AIFP will be available for members to start using this fall. A full transition will occur duced by Innovata, showing direct routes, online and interline connections, and a comprehensive time- after AOPA is comfortable with the user experience and has ensured that the full transition will be as table display for all 27 member airlines, dynamically plotted and displayed for users searching and query- smooth and seamless as possible. AOPA will keep all members and flight planner users informed as the ing: http://aaco.innosked.com/ process goes forward. In late July, AOPA announced it is exiting the electronic flight bag (EFB) market. At Headquartered in Atlanta, USA, with regional offices in UK and Singapore, Innovata serves over 200 cus- that time, AOPA also announced that it would be developing a distinct smartphone application for flight tomers, in 52 countries. planning focusing on content and functions driven by member needs. The new smartphone application, Regional Main Contact: available in 2015, will also remain a free member benefit and will link to the AIFP. Name: Mr. John McAleavy, Regional Account Manager Europe, Africa & Middle East AU - Jeppesen Simplifies Mobile FliteDeck IFR Subscriptions:Jeppesen has introduced a new structure Telephone: +44 (0)1582635018 for Mobile FliteDeck data subscriptions, to simplify the flying experience for general aviation pilots. Pilots Fax: +44 (0)1582635001 using Mobile FliteDeck on iPad now have ten global coverage options for IFR navigation data services Email: [email protected] offered at a lower price point, including a complete Australasia coverage available for USD 244 annually. Website: www.innovata-llc.com The Mobile FliteDeck IFR Australasia coverage area includes Australia, south Asia and the South Pacific. Innovata - AACO Partner since 2003 Jeppesen - AACO Partner since 2008
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Kennedys is a growing international law firm with particular expertise in litiga- tion and dispute resolution. We have a network of over 1,200 people across the Assisting passengers with special needs and annual CRO training UK and Europe, Middle East, Asia Pacific and Latin America. The firm’s aviation practice has an exclusive focus on the aviation industry. This enables it to bring a Annual Complaints Resolution Official (CRO) training is required for carriers to be in compliance with 14 depth and breadth of specific expertise from its team resources which consist of a range of professionals CFR Part 382, Nondiscrimination on the Basis of Disability in Air Travel, in support of the Air Carrier Ac- who have worked in multiple areas of the aerospace industry both as private practitioners and in-house cess Act. counsel. Our driven team of experienced and highly regarded professionals specialise in providing legal If you haven’t scheduled your 2014 CRO training and need a class to ensure compliance, MedAire contin- solutions to a wide range of clients in the aviation industry. We are able to advise on all aspects of avia- ues to offer Air Carrier Access Act Training courses worldwide to assist carriers with compliance to Part tion, commercial, regulatory and liability issues. 382. In respect of liability issues, we have lawyers who have significant experience in dealing with major avia- To date, more than 100,000 crewmembers have participated in MedAire’s CRO Training. The course is tion losses and who are recognized as leading figures in the aviation sector. We are involved in handling offered in 7 languages. a wide spectrum of claims ranging from the legal aftermath of major air accidents through to carriage by You may also be interested in learning more about CRO Assistance, a 24/7 resource to assist carriers with air issues involving EU regulations, the Warsaw and Montreal convention regimes. Our team has experi- appropriate and compliant responses to situations involving passengers with disabilities. ence of advising in relation to Insurance and Reinsurance policy interpretation and coverage issues; we Whether or not an airline is required to comply with a fairness-in-access regulation, every customer in- have pursued multiple subrogated claims and, where disputes arise, have conducted numerous arbitra- teraction with crew members, gate agents, reservation agents, customer service personnel, and baggage tions and mediations. Our focus is to provide practical advice to resolve contentious issues. We also handlers affects the overall travel experience and the image & reputation of an airline and airport. have a regulatory team who specialise in advising airlines on the effect of international regulations and Please contact MedAire to learn more about the services available to support your compliance initia- compliance in respect of these, including EU regulations and directives; the Chicago Convention together tives, or to schedule a call with a MedAire ACAA CRO expert. Additional information about the courses with IATA and ICAO recommended standards and practices. offered is available on our website here. Our aircraft finance team deliver high quality practical legal advice and our clients include airlines (from Tel: + 65 6330 9534 major airlines to start ups), private individuals and product manufacturers. Kennedys are here to provide Email: [email protected] answers, recommendations, strategy and tactics. We deliver these in plain English and it’s what we call www.medaire.com/airlines Legal advice in black and white. Kennedys - AACO Partner since 2011 MedAire - AACO Partner since 2008
Airline Strategy mercator provides business technology solutions and services to the global airline industry. Our value proposition to our customers is a compelling one: reduce costs, improve operational processes and Unclear positioning to a changing market environment leads to competitive disadvantages and brings ultimately achieve the objectives of our valued customers. Our mission is to consistently serve our airline airlines into avoidable financially precarious situation. customers to the highest possible standards, and so establish Mercator as the aviation IT solutions pro- Lufthansa Consulting provides feasible solutions to airline clients with a clear and precise strategy based vider of choice – trusted and respected by airlines around the world. The result of this customer-centric on a comprehensive understanding of market mechanisms and their interdependencies. approach is a pedigree customer base spread across 140 airlines in five continents. Learn more about our related services: Mercator’s solutions cover four key areas of service excellence: reservation and bookings manage- - Start-up planning/new business development ment (PSS) systems; cargo operations management systems; passenger and cargo revenue accounting - Strategic analysis and Due Diligence support systems; and customer loyalty management systems. For example, our end-to-end cargo and logistics - Strategic positioning management system, SkyChain, allows airlines to transform the way they manage their cargo operations, - Business planning increasing revenues, reliability and overall performance. - Implementation planning Our clients span the globe and include award-winning carriers, hybrid, low-cost and regional airlines. - Strategic controlling Aviation is our core business, and as such the needs of our aviation customers has always driven our - Corporate portfolio and business modeling technology. Our focused aim is to develop products which help airlines reduce costs, streamline process- Lufthansa Consulting’s project approach can lead your airline to a sustainable strategic positioning. If you es and increase productivity – enabling our customers to deliver on their promises. are interested in our support services, please contact [email protected]. Regional Main Contact: Lufthansa Consulting - AACO Partner since 2010 Name: Mrs. Michele Drummond, Head of Marketing Email: [email protected] Website: www.mercator.com mercator - AACO Partner since 2003
Daily news on www.aaco.org Issue 90 - Sep 2014 69 Our Partners News
MTU Maintenance – Global player in commercial engine MRO: MTU Maintenance, Optiontown is an innovator in the realm of travel options. With our pat- a business division of MTU Aero Engines, is one of the world’s leading provider of ented MIT Technology airlines can generate up to 5-7 % more revenue commercial engine maintenance services. A primary part of its business is repairing without cash investment or IT development. Our Post Sale Ancillary engines for programs in which it is a risk and revenue sharing partner. Further, MTU Maintenance offers Revenue algorithms sell dynamic travel options to customers after ticket purchase. It generates incremen- alternative solutions for a wide range of engine types. Key programs include the CF34, CF6, CFM56, GE90G, tal revenues for airlines and enhances customers travel experience - a win-win for all. Our robust Plug-n- PW2000 and V2500, as well as industrial gas turbines. In this respect, MTU focuses on developing high- play model allows to launch a trial in 4 weeks with NO Cash Investment, NO IT development and minimal tech repairs that are globally unique, mostly patented and known under the trademark MTUPlus repairs. In resource requirement for the airline. As there is NO cost involved to the airline, the revenue flows straight addition to core engine maintenance and high-tech repairs, MTU Maintenance provides service solutions to their bottom line. Our ground breaking ancillary revenue solutions have already generated more than such as spare engine supply, on-site and on-wing services as well as technical and logistic support includ- 1% of revenues of our partner airlines. For one of our airline partners, we generated USD 2 in incremen- ing accessory and LRU management. This broad range of comprehensive services can be combined under tal “profit” per passenger boarded. Optiontown offers brand-new, customized travel options; addresses MTU’s all-encompassing full service package Total Engine Care (TEC), guaranteeing customers carefree op- constantly changing travel needs and rewards advantageous travel purchase behaviors. Our Upgrade erations of their engines at all times. Aiming to offer one-stop engine life cycle solutions MTU Maintenance Travel Option (UTo), Empty Seat option (ESo), Flexibility Reward option (FRo), Multiple Booking Option expanded its engine lease business with the creation of a new joint venture with Japan-based Sumitomo (MBo) and Preferred Flight Option (PFo) are very popular products in the suite of travel products being Corporation at the end of last year. MTU Maintenance Lease Services B.V., based in Amsterdam’s World capitalized by airlines. Optiontown’s latest innovation is the revolutionary “Flight Pass Option” that helps Trade Center, will provide airlines, MROs and lessors with comprehensive engine solutions which span the to convert customers into Subscribers, generating Perpetual Revenue Streams and Perpetual Customer entire life cycle of an aircraft engine with focus on short- and medium-term engine leasing. Assets will be Loyalty. The Flight Pass Option brings a paradigm shift in selling a dynamic booklet of flight coupons for managed in the most cost-efficient and customized way from the delivery until teardown, including com- multiple trips, yet still highly customizable to suit the needs of different customer segments (leisure, SME, prehensive material management solutions. Next to the Amsterdam location, MTU Maintenance operates corporate etc.). We believe, this will bring a revolution in aviation sales by enabling airlines to gain market a global network of engine MRO facilities in Europe, North America and Asia. While its facilities in Han- share and competitive advantage. With these innovative ancillary travel products offered by Optiontown, nover and Berlin-Brandenburg as well as Zhuhai specialize in the repair and overhaul of small-size to large- travel industry can improve their business performance by generating incremental revenues, enhancing scale commercial engines and industrial gas turbine, its Vancouver location focuses on accessory and LRU customer satisfaction, increasing load factor and decreasing operational costs. Optiontown is an innova- management. The facility in Dallas is MTU’s center of excellence for on-wing and on-site services. tor in the realm of travel options. Our technology has been developed following extensive research at the www.mtu.de MTU - AACO Partner since 2013 Center of Transportation Studies, MIT Boston. Optiontown - AACO Partner since 2011 Free Wi-Fi for Saudia’s premium passengers: Saudia has become the first airline Established in 2006, Quali-audit is an Audit Organization (AO) officially accred- in the Middle East to offer free Wi-Fi to its first class and business class passen- ited by IATA to conduct IOSA audit (IATA Operational Safety Audit), ISAGO audits gers. The promotion, which started on 19 May, is available on flights between (IATA Safety Audit for Ground Operations) and Endorsed Training Organization the Kingdom of Saudia Arabia and US destinations, as well as London Heathrow, (ETO) to train IOSA auditors. Quali-audit is an independent, wholly-owned subsidiary of Air France group, Paris Charles de Gaulle and Dubai. Saudia’s inflight connectivity is provided by OnAir. The airline is giving with principal offices at Paris Charles de Gaulle airport (France) and additional offices in Atlanta, Georgia all premium passengers vouchers for Internet OnAir, providing free Internet access for the entire flight. (USA) and Buenos Aires (Argentina). We offer a complete range of services including safety and opera- In the first few weeks of the promotion, Saudia has seen a dramatic rise in usage figures. The number of tional audits, training and operational assistance in the fields of air operations. We are committed to people using inflight internet is up 140% across the Saudia fleet and those people are consuming triple assist airlines in achieving a higher level of safety, security and quality. the amount of data, compared to figures immediately before the promotion started. The Quali-audit team includes 56 highly experienced professionals with multi-cultural background and Iberia flies across the Atlantic with OnAir connectivity: Iberia is now offering OnAir’s inflight connectiv- experience. Our teams of auditors / instructors have an average experience of 30 years in aviation. ity on transatlantic routes. Starting today, Iberia passengers flying between Europe and the Americas can Many of our auditors were founding members of the IOSA Task Forces that created the IOSA standards use the inflight Wi-Fi and GSM during the flight. and several continue to be actively engaged in the continued evolution of IOSA. By 2015, both Mobile OnAir and Internet OnAir will be installed on 25 Iberia A330s and A340s. Passen- Our services include: IOSA Audit, Gap analysis, Preparation, Follow-up; ISAGO Audit, Gap analysis, Prepa- gers on these long-haul aircraft can use their phones and tablets to chat, tweet and send text messages. ration, Follow-up; Operational Safety Audit and Evaluation; US-Department of Defense (DoD) Audit; OnAir provides global coverage, thanks to its unique network of authorizations from over 100 countries Line Operations Safety Audit expanded (LOSAe); Other audits including against EASA, FAA, ICAO scope; and more than 375 roaming agreements, combined with Inmarsat SwiftBroadband’s worldwide satellite IOSA Auditor Training (IAT); IOSA Familiarization Training; Quality Auditor Training; SAFA Training; Airline coverage. It gives the airline’s passengers exactly the same service wherever they are in the world. Operational Management Training; Safety Management System (SMS) (Training, Audit, Implementation); OnAir calls for US airlines to be given the freedom of choice about inflight cell phone usage: With the Human Factor and CRM Training; Dangerous Goods Training; and Security (SEMS) Training. ending of the FCC’s consultation period on the extension of the access to mobile wireless services on- We are pleased to offer our services to AACO members and we thank the airline members who already board aircraft, OnAir is once again urging the telecoms regulator, as well as the FAA, to define the legal have chosen to work with Quali-audit. Presently we have already offered our services to the following framework and to give the decision about inflight cell phone usage to airlines. It is also calling on the AACO members: Saudia, Yemen Airways, Royal Air Maroc, Middle East Airlines, Air Algérie, Tunisair, Jor- Federal Government not to pass legislation banning inflight cell phone use. dan Aviation, Oman Air, Afriqiyah Airways, Libyan Airlines and Nouvelair with excellent feedback. OnAir - AACO Partner since 2009 Quali-audit - AACO Partner since 2008
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Bermuda accepts Vector SMS safety management system for Rockwell Collins’ ARINC Direct custom- ers: The Bermuda Department of Civil Aviation (DCA) has accepted the Vector Safety Management System (SMS), available to Rockwell Collins’ ARINC Direct customers, to comply with the country’s SMS mandate requiring foreign business aviation operators to have an SMS program in place, or to have started the SMS implementation process. Bermuda is the first country in the world to issue this mandate, which also requires a SMS for flight departments that are based within the nation. The announcement was made today at the 2014 Latin American Business Aviation Conference & Exhibition in São Paulo, Brazil. The Vector SMS program, provided through a strategic agreement with Polaris Aero, LLC, seamlessly in- tegrates with the ARINC Direct flight operation service so that customers can easily implement all of the critical components of a safety management system. This integration enables ARINC Direct Vector SMS users to identify risks and hazards which, once known, can be addressed via guidance or advisories that have a direct impact on safety. In addition, because Vector SMS is a web-based service, it is significantly easier to implement than paper-based programs. Rockwell Collins - AACO Partner since 2002
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Daily news on www.aaco.org Issue 90 - Sep 2014 73 Our Partners News
The Future of Air Travel: Strengthening Your Customers’ Twitter is here today. But what about WhatsApp? BBM? We have to go where the customer is. Brand Affiliation via Big Data:The future of air travel is begin- —Glenn Morgan, head of service transformation at British Airways1 ning to take shape, and big data is the foundation that will drive loyalty and profit. Sabre Airlines Solutions® and The In 1998, Harrah’s began collecting customer data around their casino and resort experience. They added Economist Intelligence Unit (EIU) have produced a comprehensive look at how airlines must take advan- a swipe card to a loyalty program that was already in place and began tracking every customer transac- tage of these data and proven technologies to stay afloat in very challenging times. The industry is at a tion. Not just around betting but what brands were purchased in their stores, what drinks, what food, unique crossroads and is well positioned to redefine travel for the future. gambling habits—the whole experience. This data allowed Harrah’s to predict future customer behavior and how to incentivize and tailor that experience to deepen brand affinity. They can now predict when a For the past ten years, there has been a focus on not just holding down costs but continuously paring guest might book during the year and start offering discounts to guest months in advance to help drive back, and this strategy is reaching the point of diminished return. It has led to an erosion of brand loyalty bookings. If you’ve traveled to a casino lately, you know how successful this model is. It’s been adopted across the board, and travelers are beginning to view the industry as a “point A to point B” commodity. by every major resort group and is considered industry standard. To overcome this perception, airlines should consider these three forward-thinking strategies: Imagine our Twitter customer service example with this layer of data mining. What if an airline had • Take advantage of proven and existing technologies to better personalize the travel experience. strong data partnerships with others in the travel and tourism industry? If our weary traveler was stuck • Build on best practices already being used in and outside the travel industry. without a flight, the booking agent could see that he or she has a rewards program with a nearby high- • Responsibly collect and mine data that travelers provide. end hotel. As the carrier has an existing data partnership with the hotel chain, the agent could book a room the customer typically would like and arrange for their usual turndown service and favorite bottle Imagine arriving at the airport, sailing through your dedicated security lane, picking up your favorite of wine on the house. Suddenly, our traveler’s pain point has turned into the best-case solution for them, meal at the gate, and settling into your seat with a complimentary tablet loaded with your favorite con- for the airline, and for the data partners. And all of it captured and easily shareable through the custom- tent. Upon arrival, your tablet provides you directions as to where you can pick up your luggage. Oh, and er’s social media channels to everyone’s benefit. by the way, since you listened to the Rolling Stones on your flight, you might like the concert going on next to your hotel tonight. Want tickets? Use your miles to buy them now. Recently, Sabre Airlines Solutions partnered with The EIU to produce a white paper around these chal- lenges and the solutions necessary to tackle them. The EIU conducted parallel surveys of 100 airline You would want to share this experience, right? You would want to travel with this airline again and executives and 810 air travel customers in August and September of 2013. Half of the executives hold again because of all that added thoughtfulness to an otherwise disappointingly rated experience. You C-level positions, with the rest being SVPs, VPs, or directors. The regions of North America, Asia-Pacific, would never again consider flying with any carrier that didn’t treat you that well. Customer experience and Europe are equally represented with 30% each, while Latin America, the Middle East, and Africa drives brand loyalty. Word-of-mouth marketing works better than anything advertising can buy you. make up the remaining 10% of responses. What’s amazing is this experience was easily facilitated by a simple Wi-Fi solution and an inexpensive tablet technology. The paper delves into current customer satisfaction and how cost-effective solutions can increase- scor ing in that arena and build strong brand ties. In addition, it goes into great detail on how the industry can China Airlines’ vice president for corporate development, Hsiao-Hsing Tung, points to the “dual-use ben- address pain points around the booking, airport, and in-flight experience. The good news for the airline efits” of making Web-connected tablet computers standard equipment for cabin crew. Tablets can help industry is that many solutions have already been tested and have shown to be successful by several cabin crew recognize most valued customers and pay special attention to them. The crew can also use competitors and partners, making the adoption threshold very low. them to reduce repair time on the tarmac by requesting spare parts for a broken seat, for example, dur- ing a flight.1 How will you succeed in the future world of air travel? Advancement will hinge on big data and the abil- ity to offer ancillary services and products to build profit, provide a personalized travel experience, and Wi-Fi allows you to collect customer data during the travel experience, not afterward, where it might not develop long-term customer relationships with your brand that will benefit the industry as a whole. have as much value. Monitoring customer issues via social media and offering solution work-arounds in Want to learn more? You can access the full white paper or an Executive Summary at: the digital space are cost-effective and capturable and can often happen in real time. www.sabreairlinesolutions.com. In the “whisked through the airport” example above, what would happen if a customer pain point oc- curred along the way – for example, a flight cancellation due to the weather? The results of cost cutting 1 The future of air travel: mean there may be fewer gate agents and booking agents to approach during the travel experience. Improved personalization and profits through the integrated use of customer data Why not backfill that loss with social media monitoring? If our traveler was running late and gate agents An Economist Intelligence Unit white paper, sponsored by Sabre Airline Solutions and phone lines were overwhelmed, they could reach out via Twitter and immediately have a direct dia- July 9, 2014 logue with a booking agent for a solution. Sabre - AACO Partner since 2002
Daily news on www.aaco.org Issue 90 - Sep 2014 75 Our Partners News
Seabury Group Subsidiary SGI Aviation appoints Paolo Lironi as Interim Chief Executive Officer: SGI Aviation Services B.V., a Seabury Group company, has announced the appointment of Paolo Lironi as Air China to cut USD 8 million in fuel costs with SITA technology: Air China is set to save around USD 8 Interim Chief Executive Officer (CEO). The appointment comes after the news earlier in the month of the million a year in fuel costs, thanks to payload and live weather update technology from SITA. Following sudden passing of Wadick Chomyszyn, longtime SGI Aviation CEO. extensive trials on its international routes, Air China has deployed SITA’s FMS Wind Uplink service on all Paolo Lironi has assumed the interim CEO role from his current position of Executive Director, where he international and domestic routes to constantly update key weather information for Flight Management has had a strong track record in aircraft leasing, contract negotiation, redeliveries, buyouts, and end-of- System (FMS) calculations while en route. This enables the crew to adjust its flight path in-flight accord- life scenario planning. Mr. Lironi’s clients include financial institutions, lessors, and commercial airlines. ing to changing wind and weather conditions, so the aircraft uses fuel as cost effectively as possible. SGI Aviation provides technical consulting and advisory services in the areas of aircraft and engine asset With SITA’s Wind Uplink service, the aircraft’s FMS can constantly analyze weather conditions on the management and safety regulations. The company is based in the Netherlands with office locations in route ahead to determine optimum altitude, fuel burn and arrival-time predictions. This helps reduce New York, Guernsey, and Singapore. To read Paolo Lironi’s bio and to learn more about the company, fuel consumption. visit www.sgiaviation.com. SITA Technology transforms operations at Azerbaijan Airport:SITA will provide the IT infrastructure, passenger processing platform and airport operations systems for Heydar Aliev International Airport’s Seabury Group further strengthens its focus on management consulting for global commercial aviation new Terminal 1 in Baku, Azerbaijan. The new technology will transform operations, both for the airport MRO sector Jim Keenan named Senior Advisor to Seabury Global Aviation Group:As the Maintenance and for Azerbaijan Airlines, enhancing the passenger experience with new self-service options and en- Repair & Overhaul (MRO) sector continues on a growth path across the globe, the Seabury Group is abling the airport to handle double its current capacity. poised to broaden its management consulting presence in the industry. The company has partnered with Air Astana set for future growth with SITA support: Air Astana has selected SITA to provide messag- Jim Keenan, an accomplished Aviation industry leader and advisor, to further strengthen its focus on pro- ing for operations, communications with partners and advanced datalink for air traffic control. The deal viding management consulting and support for the MRO industry clients through leveraging Mr. Keenan’s comes as Kazakhstan’s flag carrier prepares for future growth, following a 13.5% traffic increase in 2013. successful track record for more than two decades in the Aviation and Aerospace & Defense sectors. SITA - AACO Partner since 2008 Seabury - AACO Partner since 2008 Shell Aviation is a global supplier of Aviation Fuels and Lubricants, Travelport redefining travel commerce – second quarter 2014 results: Travelport with a strong heritage of innovation of more than 100 years. We are has announced its second quarter results as follows: active across all aviation segments, including commercial, business Year-to-date 2014 growth of +4% for Net Revenue and +6% for Adjusted EBITDA and general aviation; and our customers range from private pilots to Travel Commerce Platform: the largest global airlines. Every day, at over 800 airports across some 40 countries worldwide, Shell Avia- Over 50 airlines have now signed for Travelport’s industry leading Rich Content & Branding in addition to tion fuels around 7,000 aircraft, refueling a plane every 12 seconds. The industry values us for our world- our merchandising capabilities. class safety and operations standards, strong supply chains to deliver supply security, as well as our close Expanded our Beyond Air capabilities through strategic investments: collaborations with our customers and other stakeholders. Hospitality – purchased Hotelzon, a European based provider of corporate hotel booking technology Support for the aviation business in the Middle East:Shell Aviation has been active in the Middle East Corporate Travel – purchased 49% of Locomote, an Australian based corporate travel procurement region since the 1960s, and aims to provide long-term support to its fast growing aviation industry by and management platform providing fuel and comprehensive services at our various airport locations in the Middle East, South Asia Payments – purchased a further 16% of eNett, our B2B payments company, taking our share from and Africa. Our extensive global network also enables us to support the region’s airlines at many of their 57% to 73% in a transaction valuing the company at approximately USD 450 million destinations around the world. We have been an industry partner of AACO since 2002, and have a team of Technology Services: professional and knowledgeable account managers based in the region who are dedicated to providing the Signed a new long term agreement with Delta Air Lines to host their core reservations and opera- best possible customer service to the regions’ airlines. Always at the forefront of innovation, Shell Avia- tions systems tion contributed to a global aviation milestone in 2009 when the world’s first commercial passenger flight Travelport awards dnata with “Top Producing Agency” Award: Travelport has honoured dnata, a lead- (operated by QR) from London Gatwick to Doha was powered by fuel made from natural gas by Shell. ing air services provider based in Dubai, with its “Top Producing Agency” award for achieving the highest Track Record of Excellence: In recognition of its contribution to the region’s aviation and airport industry, number of hotel bookings via Travelport’s travel commerce platform in the UAE region last year. Shell Aviation was named ‘Best Regional Fuels Provider’ at the Emerging Markets Aviation Awards (EMAA) Canadian travel agents can increase sales with free tool available through Travelport’s Galileo Vaca- for three consecutive years (2010-2012). Shell Aviation was also recently voted by airlines as the “Best tions Shopping and Booking System: Travelport in partnership with Softvoyage announced enhanced International Fuel Supplier” in the 2013/2014 Armbrust Awards. In addition, it has won Armbrust’s “Best functionality of its popular Galileo Vacations booking engine.Travelport-connected agents now have im- Technical and Operational Performance” award fourteen times in the awards’ 18-year history. mediate access to the powerful and free TripBook and TripSearch tools — available through Travelport — Shell Aviation- AACO Partner since 2002 which will make it even easier for travel agents to sell and book the perfect vacation for their customers. Travelport - AACO Partner since 2000 Daily news on www.aaco.org Issue 90 - Sep 2014 77 Our Partners News
Unisys delivers first phase of an enhanced 311 system for City of Philadelphia: Unisys Corporation announced that it has been selected to build a more flexible and robust customer relationship management (CRM) solution to support the City of Philadelphia’s “Philly 311” program for responding to citizen requests and inquiries, and proactively reaching out to citizens to improve their quality of life. Based on Salesforce.com’s Service Cloud CRM Platform, the new system will be designed to expand citizens’ access to city services over a diverse range of communication channels including telephone, Internet, mo- bile phone and social media such as Facebook and Twitter. The City of Philadelphia selected Unisys to develop an innovative cloud-based foundation for the govern- ment CRM based on Unisys’ decade of experience delivering 311 solutions to other large municipalities. Unisys will implement and support the system, which aims to provide transparent access to government information and services in support of the city’s citizen engagement and open data initiatives. A Philly 311 pilot project was deployed in June 2014 with an initial user base of city employees and citizens. The pilot will begin the transition from the current system and facilitate the change management process. This pilot will be followed by a citywide rollout in late 2014 that will incorporate lessons learned from the pilot. Unisys expands desktop virtualization offerings with new cloud-based desktop as a service solution:Uni - sys Corporation expanded its portfolio of Unisys Workspace Services with a new solution designed to help IT organizations reduce costs and increase flexibility in providing their workers with cloud-based access to the full suite of business applications and services that they need to stay productive. Combining Unisys services and technology and the VMware Horizon® architecture, the new Unisys Desktop as a Service solution enables CIOs to reduce capital expenses by eliminating the need to buy and maintain costly desktop infrastructure and software licenses. Unisys - AACO Partner since 2014
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Daily news on www.aaco.org Issue 90 - Sep 2014 79 AACO & RTC CALENDARS AACO & RTC Calendars AACO CALENDAR AACO RTC CALENDAR September 2014 September 2014 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 1 2 3 4 5 6
7 8 9 10 11 12 13 7 8 9 10 11 12 13 AASB Meeting/ Cairo Negotiation Skills Course / Cairo 14 15 16 17 18 19 20 AACO FDSTF 14 15 16 17 18 19 20 AACO Business Technology Meeting / Am- Crew Resources Management for Instruc- Forum 2014 / Amman Business Writing / Amman man tors Course / Amman 21 22 23 24 25 26 27 Fuel Consortium’s and Fuel Hedging work- Aeropolitical AACO JPC Meet- shop / Amman ing / Kuwait Affairs Forum 21 22 23 24 25 26 27 / Amman AACO FDSTF Meeting / Geneva Train of Trainers Course / Amman 28 29 30 15th EPG Meet- Aviation Emergency Response & Crisis Management (Foundation) Course / ing / Dubai Amman AACO ERP TF Meeting/ Manama 28 29 30
October 2014 October 2014 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 1 2 3 4
5 6 7 8 9 10 11 5 6 7 8 9 10 11 12 13 14 15 16 17 18 EU / EASA Operational 14 15 16 Business Etiquette 12 13 17 18 Regulations Training Course / Amman Course / Amman AACO Aeropolitical Watch Group Meeting 19 20 21 22 23 24 25 / Cairo Managing an Airline Station Course / Amman Principles of Air Transport Economics Course / Cairo 19 20 21 22 23 24 25 Managing People Performance Course / Cairo AACO Jet Fuel Tender 2015 - Preparatory Meeting IATA - Fatigue Risk Management Systems & Fuel Technical Group Meeting / Cairo (FRMS) / Cairo 26 27 28 29 30 31 26 27 28 29 30 31 Job Descriptions & Job Evaluation / Amman
Fraud Prevention Course / Cairo For additional information, kindly contact Mr. Mohamed Osman / Senior Manager RTC at [email protected]
Daily news on www.aaco.org Issue 90 - Sep 2014 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. Sudan Airways (1946) 7. Tunis Air (1948) 8. Gulf Air (1950) 9. Air Algerie (1953) 10. TMA (1953) 11. Kuwait Airways (1954) 12. Royal Air Maroc (1957) 13. Yemen Airways (1962) 14. Royal Jordanian (1963) 15. Libyan Airlines (1964) 16. Emirates (1985) 17. Nouvelair (1989) 18. Oman Air (1993) 19. Qatar Airways (1995) 20. Palestinian Airways (1995) 21. Tassili Airlines (1997) 22. Jordan Aviation (2000) 23. Afriqiyah Airways (2001) 24. Etihad Airways (2003) 25. Air Arabia (2003) 26. Air Cairo (2003) 27. Maximus Air (2005) 28. Petra Airlines (2005) 29. flynas (2006) 30. Nile Air (2006) 31. Rotana Jet Aviation (2010) 32. flydubai (2008)
Daily news on www.aaco.org Issue 90 - Sep 2014 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, Sri Lanka, Nepal, Maldives. cies for processes in harmony with the environment. Australasia: Includes the following countries: China, Hong Kong, Malaysia, Tai- • To actively contribute in the development of human resources. wan, Myanmar, Cambodia, Vietnam, Philippines, Singapore, Thailand, Japan, • To interact with the regulatory bodies to support and protect the interests Indonesia, Australia. of the Arab airlines. Europe: Includes the European countries. • To launch joint projects between member airlines with the objective of Arab World: Includes the Arab countries. achieving efficiencies that will lower their costs in a manner consistent with Sub-Saharan Africa: Includes the African countries except Arab countries in all applicable competition and other laws and that enhances the members’ North Africa which are: Egypt, Sudan, Libya, Tunisia, Algeria, and Morocco. best practices. • To provide forums for members and for industry partners to enhance the 2. Abbreviations: knowledge base. RPK: Revenue Passenger Kilometer • To reflect the positive image of The Arab Airlines Globally. ASK: Available Seat Kilometer. PLF: Passenger Load Factor. RTK: Revenue Tonnes Kilometer. ATK: Available Tonnes Kilometer. WLF: Weight Load Factor. For any comments or suggestions, please e-mail: 85 Anis Nsouli St., Verdun Mrs. Manal Fares P.O.Box: 13-5468 3. All statistics in this bulletin represent the absolute number of passengers Senior Manager - Industry Affairs 2044-1408 Beirut– Lebanon 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. Senior Manager - Economics, IT & Technical Within the Arab world: indicates traffic within the Arab world region Management To, From, and Within the Arab world: indicates the sum of the above [email protected]
Daily news on www.aaco.org Issue 90 - Sep 2014 89