Official Monthly Bulletin of AACO AACO’S 47Th AGM Adopts 3 Strategic Reso- AVIATION WITHIN the ARAB WORLD GLOBAL ARAB AVIATION Lutions - P

Issue 93 - Dec 2014 Official Monthly Bulletin of AACO AACO’s 47th AGM adopts 3 strategic reso- AVIATION WITHIN THE ARAB WORLD GLOBAL ARAB AVIATION lutions - p. 6 GROWTH p: 16 SPREADING OUT p: 34 PARTNER AIRLINES p: 52 - 61

ARAB AIRLINES ECONOMICS p: 17 INDUSTRY PARTNERS p: 62 - 89 Arab world marks an increase of 4.6% TOURISM p: 41 in October 2014 in international passen- NEW APPOINTMENTS p: 19 COLLABORATION p: 42 AACO & RTC CALENDARS p: 90 - 93 ger numbers - p. 13 EXPANSION p: 20 ENVIRONMENT p: 43 AACO MEMBERS & PARTNERS p: 94 - 97

ICAO Conflict Zone Task Force prepares LAURELS p: 24 REGULATORY TONE p: 44 recommendations for 2015 High-level Safety Conference - p. 48 TECHNOLOGY & E-COMMERCE p: 26 AN AVIATION MARKET IN FOCUS: INDIA p: 46 TRAINING p: 27 WORLD NEWS p: 48 MRO p: 29

ARAB AIRPORTS p: 29

Daily news on www.aaco.org Issue 93 - Dec 2014 Aviation in the Arab World

Daily news on www.aaco.org Issue 93 - Dec 2014 5 The Arab Air Carriers Organiza- latest developments and challenges at industry level in addition to tion (AACO) convened its AGM on the achievements of AACO joint projects over the past year. The dele- 19 November 2014 in Dubai un- gates also received a copy of the Arab Air Transport Statistics publica- der the Chairmanship of Sir Tim tion (AATS) covering 2013 data. Major statistics included in AATS were Clark, AACO 47th AGM Chairman as follows: and President of Emirates Airline. • The Arab air transport market grew by 10.1% in 2013 compared to The AGM was held under the Es- 2012, reaching 156 million passengers. teemed Patronage of HH Sheikh • Passenger numbers using Arab airports in 2013 increased by 5.2% th Ahmed Bin Saeed Al Maktoum, to reach around 274 million passengers. AACO’s 47 President, Dubai Civil Aviation Au- • Cargo movement at Arab airports increased by 5.6% in 2013 thority, Chairman & Chief Execu- reaching 6.5 million tons of cargo. AGM adopts tive Emirates Airline & Group, and • AACO members served 412 destinations in 127 countries with Chairman Dubai Airports. 3,851 average daily flights, offering 750,943 daily seats on 1,069 aircraft. 3 strategic Participation • AACO members’ operating revenues increased by 10% in 2013 to The AGM gathered CEOs of AACO record USD 35.8 billion for 15 member airlines. resolutions member airlines, AACO partner • Same AACO members carried more than 153 million passengers in airlines and industry partners from 2013 (an increase of 7.5% compared to 2012) and 4.8 million tons aircraft and engine manufactur- of cargo (an increase of 11.6% compared to 2012). ers, Global Distribution Systems (GDSs), IT providers and other Tribute to the Late Dr. Assad Kotaite specialized companies relevant At the start of the AGM sessions, Sir Tim Clark asked the to the Arab air transport industry. attendees to dedicate a minute of silence to the late Dr. The AGM also welcomed the Arab Assad Kotaite, who spent most of his life in the aviation Civil Aviation Commission (ACAC), field; mostly leading the International Civil Aviation Orga- the International Air Transport nization during hard times with a vision, diplomacy and Association (IATA), and a number wise leadership that are a role model to be followed in international of regional airline associations, aviation relations. where the number of delegates overpassed 300. Tribute to H.E. Eng. Khalid Almolhem The AGM also paid a tribute to H.E. Eng. Khalid Almolhem, Arab Air Transport Statistics in former Director General of Saudia. During his tenure in 2013 Saudia, H.E. Almolhem was elected as a member of the Delegates received AACO’s Annual Executive Committee in 2006, then as Chairman of the -Ex Report, which reflects the yearly ecutive Committee in 2008 and Chairman of AACO AGM in harvest of AACO’s work during the 2009 where he contributed in strengthening and supporting AACO’s past term and highlights the work.

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AACO Secretary General Report an array of regulations. Most importantly, the Secretary General high- AACO Secretary General presented his report on the Arab air trans- lighted the consultation paper that was issued by the European Com- port, covering strengths and weaknesses of the sector, its opportuni- mission on amending directive 868/2004 on fair competition, noting ties for growth and the threats that this sector faces. In addition, the that the language in the paper implies a protective mentality which, if Secretary General addressed a number of strategic issues that are of applied, will create a bigger dispute than the one created by the infa- interest to members and AACO’s work with regards to those issues. mous EU ETS in its original extraterritorial form. The Secretary Gener- Some of the important industry issues highlighted in the Secretary al hoped that the European Commission takes into consideration the General’s report were as follows: fact that its regulations can only be applied to its countries and insti- • Air Traffic Management as the primary weakness of the Arab air tutions, as other countries have their own laws and regulations which transport do not necessarily mirror European ones, and mutual consent - rather The Secretary General highlighted that the primary weakness of the than one party dictating its point of view- should be the basis of any Arab air transport lies in air traffic management and that the optimal agreement. solution of that issue will have to go through three major milestones: • Airlines’ relation with the customer firstly, the renovation of air navigation systems and equipment, -sec The Secretary General also talked about the relationship between air- ondly coordination between civil and military authorities for flexible lines and customers that is still governed by technologies developed use of airspace by civil aviation when national security does not -re in the 70’s and 80’s and which have so far only received a facelift at quire it to be limited to military use, and thirdly (and most impor- best, and therefore do not provide airlines with the chance to design tantly) the development of a traffic flow management coordination their products’ attributes according to their customers’ needs. The mechanism on regional and sub-regional levels which should evolve Secretary General commended IATA’s NDC as an important step in to cover the whole region. the right direction. He also called upon IT partners and other players • The importance of liberalization and facilitation of the move- to upgrade their technology infrastructure so that the customer can ment of people and goods enjoy the same experience he/she enjoys in his/her interaction with The Secretary General highlighted the second weakness of the Arab suppliers in other industries. air transport, as being some protectionism policies that if adopted as strategies rather than temporary measures could be a threat to the Speech by Director General of ACAC future of Arab air transport, and hence called for liberalization to be Eng. Mohamed Sherif, Director General of the Arab Civil Aviation based on the economic principles of the Damascus Convention and to Commission (ACAC), presented a keynote address about the common be accompanied with the facilitation of the movement of people and issues between AACO and ACAC in the fields of aeropolitics, relations goods in order to fully benefit from growth opportunities of the Arab between the Arab world and the EU, air safety, environment, and air air transport. navigation issues, whereby the two organizations have cooperated • Calls in the EU and US for adopting protectionism measures throughout the years in order to achieve benefits in these areas to The Secretary General also sighted calls in Europe and the US for the Arab air transport industry. adopting measures that protect airlines, highlighting that the deterio- ration of the competitiveness of some airlines and airports in Europe Speech by IATA and the United States is actually due to measures applied by these Mr. Paul Steele, Senior Vice President, Member & External Relations, regions’ governments which consider airlines cash cows and burden Corporate Secretary of IATA, presented IATA’s speech on industry is- airlines and airports, unlike other transportation sectors, with sues. Mr. Steele focused in his speech on safety, air traffic

Daily news on www.aaco.org Issue 93 - Dec 2014 9 Aviation in the Arab World management, and smarter regulations in the areas of liberalization, Furthermore, the AGM directed AACO to continue collaborating with passenger rights, security, taxation and other regulations. ACAC, ICAO, IATA and CANSO to promote, plan and implement regional initiatives aiming at enhancing air traffic management and airspace An Agreement for Emergency Response Mutual Assistance capacity in the region. Under AACO’s framework to enhance cooperation and the sharing of 2. Empowering Governments to prosecute Unruly Passengers on expertise between AACO member airlines, 10 AACO members signed board flights: The AGM called for: an “Emergency Response Mutual Assistance Agreement” during the • Prioritizing the ratification of Montreal Protocol 2014 due to the AGM. The airlines are Air Arabia, EgyptAir, Emirates Airline, Etihad benefits that it brings to governments, airlines, and passengers Airways, Gulf Air, Kuwait Airways, Middle East Airlines, Oman Air, Qa- alike in terms of widening the jurisdiction of governments to pros- tar Airways, and Saudia. ecute unruly passengers, lessening operational disruption and costs incurred by airlines, and bringing convenience to passengers AACO Members’ Closed Session Adopts Three Strategic Resolutions affected by an unruly behavior inflight. The Second Working Session was dedicated to AACO members • Considering the adoption or amendment of supporting domes- where they discussed the Executive Committee report which covered tic legislation to secure the proper activation of jurisdictional and strategic issues in addition to AACO’s financial and administrative is- prosecution powers using ICAO Circular 288 as a guide. sues. • Raising public awareness of the consequences of failing to follow Based on the recommendations of the Executive Committee, AACO’s crew instructions or commit unruly behavior. AGM adopted three strategic resolutions as follows: 3. Safety and Security: Following the unfortunate tragedies that 1. Air Traffic Management and Airspace Capacity in the Arab befell on Malaysia Airlines flights MH370 and MH17, the AGM ex- World: AACO 47th AGM welcomed and acknowledged ICAO’s estab- pressed its profound sympathies to the families of the missing and lishment of the Middle East ATM Enhancement Programme. The the victims. Moreover, the AGM strongly condemned the downing AGM thanked Arab governments for supporting the role of the air of Malaysia Airlines flight MH17. The AGM also called upon the in- transport industry as an essential contributor to the sustainable de- dustry to lead relentless efforts to find the reasons behind the disap- velopment and further appreciated the efforts of Arab governments pearance of MH370. Knowing the reasons behind that disappearance which are developing their aviation infrastructure. Moreover, the will not only bring closure to the grieved families of the missing but AGM also called upon Arab governments to coordinate their aviation also will provide essential information to avoid such a mishap from infrastructure’s developments in order to alleviate bottlenecks from ever happening again. Moreover, the AGM called upon all concerned the region as a whole through three major milestones: stakeholders to develop and implement measures to ensure that sys- • Renovation of air traffic systems and equipment where required. tems communicating the location of the aircraft cannot be tampered • Increase coordination on the national level with military authori- with or interfered in, ensuring the visibility of the flight at all times. ties for flexible use of airspace by civil aviation when national se- Finally, the AGM also believed that it is the duty of the industry to curity does not require it to be limited to military use. establish an exchange mechanism for sharing assessment of airlines • Development of traffic flow management units on sub-regional with regards to the threats affecting air routes so that airlines using levels which should evolve to cover the whole region, and without the same routes may take that into account when assessing the op- which individual investments will only result in relocating bottle- erational safety of those routes. necks within the region.

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Panel Discussion on “What’s Next for Arab Airlines” and “Whether AGM Documentations and Speeches Protectionism Policies Can Really Protect Airlines” 1- Opening Ceremony speech by HH Sheikh Ahmed bin Saeed Al- The Third Working Session, as usual, gathered all invitees of Maktoum - 18 November AACO AGM and witnessed the “Joint Aviation Forum”, which 2 - Opening Ceremony speech by AACO Secretary General - 18 No- is a panel discussion that was moderated this year by Mr. vember (Arabic – English) Richard Quest, CNN Anchor and Correspondent. The Joint 3- State of Industry by AACO Secretary General - 19 November (Ar- Aviation Forum featured a session on “What’s Next for Arab abic – English) Airlines” and “Can Protectionism really protect Airlines?”. Participants 4- PowerPoint Presentation by the Secretary General in this discussion were as follows: 5- Speech of IATA Corporate Secretary - 19 November (English) • H.E. Mr. Akbar Al Baker/ Group Chief Executive Officer/ Qatar -Air 6- PowerPoint Presentation by Paul Steele ways 7- AACO Annual Report (Arabic – English) • Mr. Mohamed Salah Boultif / President & Chief Executive Officer/ Air Algerie OVERALL TRAFFIC - ARAB WORLD • Capt. Sameh El Hefny/ Chairman & CEO / EgyptAir Holding Company • Mr. Ahmed Al Nemah / Acting Undersecretary for Civil Aviation -Af We estimate international passenger numbers to, from, & within the fairs for the Kingdom of Bahrain Arab world to have grown by 4.6% in October 2014 compared to Oc- • Mr. Adel A. Ali/ Group Chief Executive Officer/ Air Arabia tober 2013, which follows an increase of 11.8% in September 2014 • Mr. Paul Gregorowitsch / Chief Executive Officer / Oman Air compared to September 2013. Monthly International Passenger Numbers' Change To, From and Within the Arab World Nov13 to Oct14* compared to same month in previous year

15%

10%

New AACO logo 5% In preparation for the golden jubilee of AACO in 2015, AACO presented a new modern logo that was designed during 2014 in coordination 0% with AACO Executive Committee. The AGM adopted this logo as -AA CO’s new logo with immediate effect. Click here to watch the morphing of AACO’s new logo. Effect of Adha Cyclicality Effect of Ramadan

Closing of the AGM Working Sessions YoY Growth 12-Month Average Growth As the AGM came to a close, AACO members thanked the 47th AGM Source: AACO, IATA *Estimated Chairman, Sir Tim Clark, for chairing the AGM and for the generous In October 2014, AACO members increased the number of their of- hospitality of Emirates for all delegates of this event. Moreover, the fered seats to, from, and within the Arab world by 18%, while other Secretary General announced that the forthcoming AACO AGM will be airlines decreased their number of seats offered by (12%), leading to held in Jeddah, Kingdom of Saudi Arabia, on 24-26 November 2015. 9.4% year-on-year increase in the total number of seats offered. Daily news on www.aaco.org Issue 93 - Dec 2014 13 AVIATION WITHIN THE ARAB WORLD Aviation in the Arab World

GROWTH Monthly International Passenger Numbers' Change Within the Arab World Nov13 to Oct14* compared to same month in previous year PASSENGER TRAFFIC International passenger numbers within the Arab world are estimated to have 18% grown by 5.8% in October 2014 compared to October 2013. This follows an 16% increase of 15.9% in September 2014 over September 2013. 14% 12% 10% Passenger traffic within the Arab World Oct 14* over Oct 13 8% Within Arabian Peninsula 2% 6% Within Near East 32.2% 4% 2% Within North Africa 6.5% 0% Between Arabian Peninsula & Near East 6.2% Between the Near East and North Africa 9% Between Arabian Peninsula & North Africa 3% Effect of Adha Cyclicality Source: AACO, IATA *Estimated Effect of Ramadan YoY Growth 12-Month Average Growth International Passenger Numbers' Change Within the Arab World Source: AACO, IATA *Estimated Jul14-Sep14 & Aug14-Oct14* compared to same period in previous year 40% ARAB AIRLINES ECONOMICS

30% Aviation to contribute USD 53.1 billion to Dubai’s economy: Emirates Airline, Dubai Airports and the aviation sector as a whole contributed USD 26.7 billion 20% to the Dubai economy in 2013, which was almost 27%* of Dubai’s GDP and supported a total of 416,500 jobs accounting for 21% of the emirates’ total employment. These figures were based on the latest report “Quantifying the 10% Economic Impact of Aviation in Dubai” conducted by global research firm, -Ox ford Economics, as a follow-up to a 2011 study done by the same firm. 0% The objective of the report was to quantify the economic impact of the avia- within within N tion sector and its subsequent Dubai-based supply chain. In addition, the -re -10% Arabian within N East N East port explains the benefits that aviation brought to Dubai’s economy in 2013 in Africa N East N Pen Arabian N Africa terms of gross value added (GVA)** and employment, and provides forecasts Africa -20% Pen Arabian for the sector and its knock-on effects in 2020 and 2030. Jul14-Sep14 Pen Core impact of aviation: It is estimated that the aviation sector, including the Emirates Group, Dubai Airports, and other aviation businesses such as airlines Aug14-Oct14* flying into Dubai, regulatory authorities and Dubai Duty Free, had a core im- Source: AACO, IATA *Estimated pact of USD 16.5 billion GVA in 2013. This includes direct, indirect and induced contributions and is equal to 16.5% of Dubai’s GDP, supporting over 259,000 Passenger numbers within the Arab world reported a 12.4% growth between Dubai based jobs. Moreover, for every USD 100 of activity in the aviation sec- July 14 & September 14 compared to same period in the previous year. tor, a further USD 72 is added in other sectors of the local economy from supply chain connections and expenditures. For every 100 jobs created in avia- Passenger numbers within the Arab world reported a 12.5% increase between tion, an additional 116 jobs are created elsewhere in Dubai. August 14 & October 14* compared to same period in the previous year. Tourism benefits: Aviation has proved to be an indispensable catalyst for the growth of Dubai’s tourism industry. Tourism and travel activities in 2013 had an economic impact of USD 10.2 billion GVA supporting a further 157,100

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jobs. In 2013, Dubai welcomed nearly 10 million non-UAE visitors who spent “We will continue to grow at a percentage which is never going to be less than USD 13 billion, accounting for around 1% of foreign visitor spend globally that about 8-10%, and that’s a conservative figure,” Sir Tim Clark said on the side- year. The success of Dubai as a destination has been a public and private effort lines of an aviation conference in Dubai. to invest in world-class aviation and tourism infrastructure to support the in- Sir Clark warned of currency risks that are dampening profit even as the airline flux of visitors. The results have paid dividends and Dubai currently captures a can take advantage of low fuel prices in the months ahead. 0.4% share of the world’s business and tourism traffic, double the share it had “As a dollar-based airline, we are facing collapses of currency in Russia, in Aus- in 2000. tralia; the euro, the pound has gone way down and these are primary income Connectivity: One of Dubai’s greatest assets is its enhanced connectivity. In generating countries,” he said. 2013, Oxford estimated that passengers could connect from Dubai to 25 cities Despite the currency adjustments on the balance sheet of the airline, new air- (or 81% of world cities) with populations of over 10 million people. Overall, craft deliveries and new routes should help bolster growth. Dubai had direct passenger flight connections to 149 cities with populations Source: Arabian Business of over 1 million people, creating potential export markets of over 916 million people, or 13% of the world’s population. Cargo tonnage between 1990-2013 Etihad Airways boosts stake in Virgin Australia to 22.9%:Etihad Airways has handled in Dubai has grown on average of 13.5% per year, compared to global increased its stake in Virgin Australia to 22.9% after purchasing 1.7% of shares, average trade volumes of 5.6% per year. it was reported. The passenger and cargo connectivity provided from Dubai has positively im- The increase means it has reached the maximum allowed by Australia’s For- pacted Foreign Direct Investment (FDI) and trade. It also has provided greater eign Investment Review Board (FIRB) and it will need regulatory approval to access to foreign markets, encouraging exports, and increasing competition in increase its stake further. the local economy, benefiting consumers. The news comes just days after Mr. James Hogan, Etihad’s President and Chief Economic benefits in 2020 and 2030:Between 2014 and 2020, the contribu- Executive Officer, was appointed as a non-executive director to the Virgin Aus- tion of the aviation sector to Dubai’s economy is expected to grow at a faster tralia board. rate than the economy as a whole, on the back of strong growth in interna- Source: Arabian Business tional passenger traffic and cargo. Using industry growth forecasts and modelling projections based on current CEO: Oman Air to be profitable by end of 2017:Oman Air is targeting profit- expansion plans for Dubai International (DXB) and Al Maktoum International ability by the end of 2017, CEO Mr. Paul Gregorowitsch said at the Arab Air at Dubai World Central (DWC), it is estimated that the overall economic impact Carriers Organization AGM in Dubai. of both aviation and tourism related activities will rise to a robust USD 53.1 bil- The airline has made consistent losses in recent years as it invests heavily in lion in 2020. This will be equivalent to 37.5% of Dubai’s GDP, supporting over fleet expansion. Mr. Gregorowitsch said the carrier had created some USD 1 754,500 Dubai-based jobs. billion in benefits for the wider economy in 2013. By 2020, Dubai International is estimated to receive 126.5 million passengers, Speaking during a panel discussion on the future of Arab carriers, Mr. Grego- almost 30% higher than its original 2010 assessments. rowitsch said, “We are on a journey, step-by-step, to become profitable.” He *The Oxford Economics Report only quantifies the direct, indirect, induced and accepted that the Omani government “can’t support [the airline] indefinitely.” tourism benefits, and do not attempt to put a value on ‘connectivity benefits’ Asked if Oman Air was considering joining an alliance, he said the airline was as in the 2011 report Explaining Dubai’s Aviation Model. For comparison, the “currently looking at cooperation, not so much an alliance.” It would prefer to direct, indirect, induced and tourism benefits in the 2011 report totalled USD create some sort of joint venture with another carrier on specific markets or 19.6 billion, or 24% of GDP. routes. **Gross Value Added (GVA) is defined as the contribution an institution, com- Source: Air Transport World pany or industry makes to Gross Domestic Product (GDP). The sum of GVA contributions of all Dubai organizations is equal to Dubai GDP. In simple terms NEW APPOINTMENTS GVA is understood as turnover minus the cost of bought-in goods and services used in the production process. Eng. Elfortia assumes new post as Chairman and CEO of Afriqiyah Airways: Afriqiyah Airways appointed Eng. Abubaker. M. Elfortia as the new Chairman Emirates targets at least 8-10% profit growth on new aircraft, routes: New and Chief Executive Officer of Afriqiyah Airways. Eng. Elfortia replaces Eng. aircraft and fresh routes will help Emirates grow profit by no less than 8 to AbdulHakim Fares, the former Chairman of Afriqiyah Airways. 10% in coming months, its president said on 19 November 2014.

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Libyan Airlines names Mr. Elkedairi as its new CEO: Mr. Ahmed Elkedairi has Oman Air launches Muscat-Sohar route: Oman Air started operating three been appointed as the new Chief Executive Officer of Libyan Airlines. Mr. Elke- flights per week between Muscat and Sohar on 18 November 2014. dairi took over the role of Capt. Taynaz, the former CEO of Libyan Airlines. To start with, the airline will be operating ATR42-500 aircraft on the route. This 46-seat single class configuration aircraft is used for short haul domestic- ser flynas appoints Mr. Byrne as its new CEO:flynas has appointed Mr. Paul Byrne vices as well as within the Gulf. as the CEO of flynas, a position he took up in November 2014 following a three Source: Muscat Daily month term as Commercial Advisor to the airline. With a career spanning more than 35 years in the aviation industry, starting CAPACITY AND DEMAND with Aer Lingus in 1979, Mr. Byrne brings a wealth of wide-ranging experience Passenger Air Services Within the Arab World - Oct. 2014 - SRS Analyzer to flynas, focused mainly on private consultancy in both the emerging low cost AACO members increased the number of seats offered within the Arab world and full service airline sectors. Mr. Byrne replaces Mr. Raja Azmi, former CEO by 16.9% in October 2014 compared to October 2013 whereas other airlines of flynas. decreased that number by (56.4%), leading to an 6.7% year-on-year increase in the total number of seats offered within the Arab world. Available Seats within the Arab world for international and domestic routes EXPANSION constituted 24.3% and 10.4% respectively of the total available seats to, from, and within the Arab world in October 2014. ROUTES Capacity* of Top 10 Carriers within the Arab World (Int’l Operations) Airline From To Date Weekly Freq. Aircraft Type Airline ASKs (Million) Departures Seats EK Dubai Erbil 16 Nov. 14 2x (4x on 4 Dec) A330-200 EK 1,233.3 2,368 810,499 EY Abu Dhabi Erbil 4 Dec. 14 4x A320 MS 904.0 2,857 577,255 QR 827.9 4,596 877,795 MS Sharm El-Sheikh Luxor 16 Dec. 14 2x N/A SV 740.2 2,497 502,738 WY Muscat Sohar 18 Nov. 14 3x ATR42-500 FZ 695.8 3,401 642,789 Emirates resumes services to Erbil: Emirates restarted passenger flights to EY 485.7 2,238 361,068 Erbil on 16 November 2014. G9 453.0 2,122 343,764 Emirates resumed with two weekly flights to Erbil, served by an A330-200 air- GF 295.5 2,942 428,434 craft in a 3-class configuration. Flights were increased to four weekly flights on RJ 286.2 1,791 226,922 4 December 2014. Erbil has been part of Emirates’ route network since 2012. Emirates currently XY 275.6 1,226 224,908 operates services to Baghdad and Basra. Grand Total 8,258.0 36,532 6,657,415 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Etihad Airways resumes Erbil operations:Etihad Airways resumed flights from Abu Dhabi to Erbil on 4 December with four flights being operated per week. The decision has been made after a careful review of operational elements and the security situation in Erbil, in collaboration with the GCAA. Services to Erbil are being operated using a two-class Airbus A320 aircraft configured to carry 136 passengers, with 16 seats in Business Class and 120 seats in Economy Class. EgyptAir operates two weekly flights between Sharm El-Sheikh and Luxor:In light of its care to encourage the traffic between Egypt’s top leisure and touris- tic destinations, EgyptAir Express announced the start of operating two weekly flights between Sharm El- Sheikh and Luxor starting 16 December 2014.

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FLEET Dubai Islamic Bank signs USD 230 million aircraft financing deal with Air Ara- Quarterly Development of Arab Airlines’ Fleet bia: Dubai Islamic Bank (DIB) and Air Arabia announced on 19 November 2014 the signing of an aircraft financing deal to facilitate the delivery of six new Jan 14 over Oct 13 Apr* 14 over Jan 14 Jul** 14 over Apr 14 Oct*** 14 over Jul 14 Airbus A320 aircrafts in 2015.The signing ceremony was held in the DIB head office in the presence of senior executives from both parties. The USD 230 mil- Added Re- Added Removed Added Removed Added Removed A/C moved A/C A/C A/C A/C A/C A/C lion Ijara facility will finance the delivery of a new aircraft every two months A/C starting January 2015, the program culminating with the final unit being hand- 1 A319 1 A310 5 A320 2 A300 12 A320 6 A320 9 A320 1 A300 ed over by the end of 2015. 9 A320 2 A320 4 A330 5 A320 4 A321 1 A321 1 A321 2 A319 Yemenia fleet renewal to include A320neo: Yemenia has included the re-en- 1 A321 1 A321 1 A380 6 A321 2 A330 8 A330 8 A330 11 A320 gined Airbus A320neo in a provisional fleet-modernisation plan. The airline is intending to take five of the type as part of a newly-developed 4 A330 1 A340 1 ATR-72 2 A330 1 A340 9 A340 9 A340 2 A321 renewal strategy. Yemenia Chairman Mr. Ahmed Masood Al-Alwani told Flight- 1 A340 1 ATR42 1 B727 4 ATR-72 3 A380 1 A310 5 A380 6 A330 global at the Arab Air Carriers Organization conference in Dubai that the plan had been approved by the board. 7 A380 1 B777 36 B737 2 B737 5 ATR 72 7 B737 7 B737 1 A340 “Now we have to discuss this with Airbus,” he says. Source: Flightglobal 1 B737 1 B737 6 B777 1 B747 6 B737 1 B747 12 B777 1 B727 8 B777 1 B787 1 B777 5 B777 3 B777 3 B787 1 B737 Qatar Airways, Qatar Aviation lease company sign financing deal with Stan- dard Chartered: Qatar Airways, Qatar Aviation Lease Company and Standard 2 E190 3 B787 4 E190 1 E190 3 CRJ900 Chartered, through its Aviation Finance team, Pembroke, have successfully 1 MD-90 1 C-130 1 DHC8 closed a Sale and Operating Leaseback transaction for three B777-300ER and five B787-8 aircrafts. 1 DHC6 2 IL-76 This transaction is the first sale and leaseback transaction entered into by Qatar Airways and was structured and arranged exclusively by Standard Char- 4 DHC8 1 E195 tered. 4 MD-11F Source: Standard Chartered * flydubai fleet added Royal Jordanian concludes receiving the first five B787 aircraft: Royal Jordani- ** 26 new aircraft have entered into service *** Air Go Egypt fleet added; 18 new aircraft have entered into service an welcomed on 22 November 2014 its fifth 787 aircraft, thus completing the assimilation of the first group of its 787 order. Royal Air Maroc takes delivery of first E190:Royal Air Maroc has taken de- The airline received the fourth 787 on 20 November 2014, while it started the livery of its first of four EMB-190s on lease from Ireland’s Aldus Aviation. The introduction of this model since August 2014, under the airline’s strategic plan aircraft was ferried from Embraer’s São José dos Campos plant in Brazil to to renew its long-haul fleet. Casablanca Int’l via Recife on 22 November. The aircraft is configured with 12 business class and 84 economy class seats. Sudan Airways leases a Ukrainian A320: Sudan Airways has leased an A320- Source: Ch-aviation 200 from Ukrainian ACMI specialist, YanAir. Source: Ch-Aviation flydubai receives 43rd aircraft on 43rd UAE National Day:flydubai took delivery of its 43rd aircraft on 2 December 2014, coinciding with UAE National Day, as Tunisair receives new Sharklet equipped A320 aircraft:At a special ceremony the UAE celebrates its 43rd anniversary. This is the last of eight aircraft to be held in Toulouse on 28 November 2014, Tunisair received its new Sharklet delivered in 2014. equipped A320 aircraft, becoming the first African carrier to receive such air- The aircraft is the latest in the airline’s fleet of new Next-Generation Boeing craft. Sharklets are fuel-saving devices which come as an option on new-built 737-800, which operate over 1,100 flights a week across the Middle East, GCC, Airbus A320 family aircraft. Africa, Caucasus, Central Asia, Europe and the Indian Subcontinent. The airline The delivery comes in line with Tunisair fleet renewal program that will con- will take delivery of more than 100 new Boeing aircraft by the end of 2023. tinue until 2017.

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Arrival of new B737 marks launch of Oman Air’s fleet expansion programme: Etihad Airways named ‘Airline of the year’ at Arabian Business Achievement Oman Air’s fleet received a boost on 14 November 2014 when the second Awards 2014: Etihad Airways has been named ‘Airline of the Year’ at the Ara- Boeing 737-900 came, after its latest Boeing B737-800 touched down for the bian Business Achievement Awards 2014 in recognition of its outstanding per- first time at Muscat International Airport on 6 November 2014. The arrival of formance, customer service levels and innovative developments over the past the brand-new aircraft marks the start of a major three-year expansion pro- 12 months. gramme. The award was presented during a gala reception at the JW Marriott Marquis This latest delivery takes Oman Air ‘s fleet strength to 32. These are the first of Hotel in Dubai on 10 November 2014, attended by over 400 business leaders 24 aircraft which will arrive with the Muscat-based carrier between now and from across the Middle East region. 2018, taking total fleet numbers to around 50 aircraft. The new B737’s Business Class cabin offers 12 seats, designed by Recaro and Etihad Airways named CAPA Airline of the Year:Etihad Airways has been fitted in a 2-2 configuration. The Economy Class cabin offers 150 seats, de- named CAPA Airline of the Year at the CAPA Aviation Awards for Excellence signed by Zodiac Aerospace with a 30-inch pitch. 2014 held in Antwerp, Belgium. The CAPA Aviation Awards for Excellence, the world’s pre-eminent aviation LAURELS strategy awards, are for strategic leadership in the aviation industry. The Air- line of the Year award is given to the carrier which has had the greatest impact Emirates wins 3 awards at the Conde Nast Traveller Awards, Middle East: on the development of the global airline industry, as a strategic leader and by Emirates was honoured with ‘Best Airline – Business’, ‘Best Airline – Leisure’ setting a benchmark for others to follow. and Best Loyalty Rewards Programme’ for Skywards at the prestigious 2014 Condé Nast Traveller Readers’ Choice Awards Middle East. Etihad Airways wins 3 awards on memorable night in Dublin:Etihad Airways Presented by the magazine’s Middle East edition, Emirates was recognized by has won three major travel awards, at two gala ceremonies, on a night to re- leisure travelers as their preferred airline, as well as for its quality service and member in Dublin. product tailored to the needs of the business traveler. With over 12 million The airline received the award for Best Longhaul Airline at the Blue Insurance members, Skywards, the frequent flyer programme from Emirates, also won Travel Media Awards, as well as the Best Longhaul Airline and Best Business top honours. Class Airline at the Irish Travel Trade Awards on Friday 28 November. Etihad Airways first class apartment design wins top SBID Award:The game- flydubai receives CAPA award for ‘Low Cost Carrier of the Year’:flydubai was changing design of Etihad Airways ‘ new Airbus A380 First Class product, called named ‘Low Cost Carrier of the Year’ at the 2014 CAPA Awards for Excellence First Apartments, has been recognised at the annual Society of British and in Aviation held in Antwerp, Belgium. Awarded to the most innovative and in- International Design (SBID) Awards 2014, held at the Dorchester Hotel in Lon- fluential carrier in its peer group, flydubai achieved this distinction in just five don. years of operation by challenging the conventions of air travel. London based Acumen Design Associates, which forms part of the airline-led The winner is selected based on industry leadership in adjusting to a new envi- ‘Etihad Design Consortium’ (EDC), a collection of leading brand and design ronment or setting up new trends and directions within the sector. agencies tasked with creating the airline’s new interiors, picked up the SBID’s top award for designing the industry-leading new cabin. Gulf Air wins threefold at GITEX Technology Week: Gulf Air was recognized The patent-pending design for Etihad Airways’ new A380 First Class cabins was threefold during the recent GITEX Technology Week 2014, a renowned IT expo entered under the category of Best Entertainment Space but took home the that was held in Dubai, winning the GITEX 2014 Cloud Award for ‘Best Big Data most coveted award of the evening, Overall Design Award 2014. Solution’, the ACN Arab Technology Award for Harnessing Innovation of the Year and the Global Enterprise Connect (GEC) Award for Best Company/Orga- Etihad Airways receives 3 awards at the Aviation Business Awards 2014: nization for Green IT initiatives. Etihad Airways was named the ‘Airline of the Year’, ‘Cargo Operator of the Year Winning the prestigious GITEX 2014 Cloud Award in the category of Best Big (Commercial Airline)’ and ‘MRO Service Provider of the Year’ at the Aviation Data Solution, Gulf Air, with its second consecutive win in this category, was Business Awards 2014. recognized for its use of open source Big Data solutions to process complex The awards, organised by ITP Publishing, celebrate achievements within the volumes of data and for developing a system to monitor and analyze market Middle East aviation industry, with winners being announced during a gala situations relating to competitors. In tandem, Gulf Air ‘s IT developments and reception in Dubai on 18 November 2014, attended by senior aviation execu- overall achievements to date were recognized with the Arab Computer News tives from across the world. (ACN) Award for Harnessing Innovation of the Year- the most prestigious

Daily news on www.aaco.org Issue 93 - Dec 2014 25 Aviation in the Arab World

award offered for the use of cutting-edge technology to realize business ad- Emirates sees free onboard Wi-Fi as future standard: In the first three years vantage, making the airline the first Bahraini organization to win it three years since Emirates launched inflight Wi-Fi connectivity, over half a million passen- in a row. Winning its third award, from Global Enterprise Connect (GEC), Gulf gers have connected to the internet onboard an Emirates flight, and this de- Air was heralded as the Best Company/Organization for Green IT initiatives - mand is expected to increase exponentially. the only Bahraini company recognized in this category thanks to its Green IT Emirates today invests over USD 20 million annually on installing and operat- drive. ing inflight connectivity systems which enable onboard Wi-Fi services. On- board Wi-Fi is available on all of Emirates’ 53 A380s and on 28 Boeing 777s, Qatar Airways named ‘Best Mideast airline serving China’: Qatar Airways was which serve routes across six continents. The airline also has an aggressive honoured for the third year in a row as Best Middle East Airline Serving China retrofit programme which will eventually see its entire fleet Wi-Fi enabled. at the 2014 Business Traveller China Awards. This accolade comes barely a Importantly, Emirates is subsidizing or waiving the high cost of buying data for month after Qatar Airways was voted “Best Middle East Airline,” for the fifth passenger use. consecutive year, at the 2014 Business Traveller Asia-Pacific Awards. The Business Traveller China Awards are acknowledged as the airline industry’s Gulf Air renews network services deal with SITA: Gulf Air has signed a two- benchmark for excellence in China. The award ceremony, which was held in year renewal deal with SITA, for network, messaging and voice services. SITA is Shanghai, was attended by key individuals from the aviation, travel and trade providing the airline with a comprehensive global network infrastructure, Type industries. B Messaging services, a mail platform for operational messages and global The awards are based on votes by readers of Business Traveller magazine with voice and data services. the results authenticated by an independent auditing company and are widely SITA’s AirportHub infrastructure will enable Gulf Air to access its Virtual Private recognised as the market’s benchmark for excellence. Network (VPN) and business applications at airports around the world. Gulf Source: The Peninsula Air will also benefit from SITA’s IP VPN service, which provides secure, global IP access connecting its headquarters with offices and outstations around the Qatar Airways Cargo wins ‘Rising Star Carrier’ award: Qatar Airways Cargo world. SITA’s Type B Messaging will underpin every aspect of Gulf Air’s opera- has been named “Rising Star Carrier of the Year” at the 2014 Payload Asia tions, from commercial and flight operations to ground support, baggage and awards in the Industry Choice Category. cargo handling, passenger service and aircraft messaging. The event, which was held in Singapore, honoured the industry’s top perform- ers at a gala dinner and awards ceremony. Air Cairo to offer online payment option from PAYFORT network to its cus- The Rising Star Carrier of the Year award was an acknowledgement of Qatar tomers: PAYFORT announced on 5 November 2014 that it has signed an agree- Airways Cargo’s growth in recent years and its customer service and product ment with Air Cairo which will allow the carrier to offer PAYFORT payment innovations. options to its customers. Source: Gulf Times While less than 10% of the region’s traditional airlines’ bookings are conducted online, nearly 50% of the region’s low-fare carriers’ bookings are made TECHNOLOGY & E-COMMERCE online. By partnering with the low-fare carrier, PAYFORT is poised to benefit from this trend. More generally, the region’s airline industry --a USD 50 billion Emirates App’ launches on iPhone: Emirates has increased its mobile pres- online ticketing market in 2014, of which the Egyptian market share is 12% ence with the launch of The Emirates App for iPhone on the App Store. or USD 6 billion --has experienced considerable growth over the last decade, Already the most popular travel app in 25 countries with a 4.5 star rating, The with the percentage of global passengers using Arab airlines carriers increasing Emirates App for iPhone has enhanced features such as the ability to check-in from 2% in 2002 to 11% (352 million passengers) in 2013. and download their boarding pass directly to Passbook. The App also features push notifications for check-in, flight boarding, gate changes, and baggage belt TRAINING numbers, greatly improving the travel experience by proactively alerting customers to critical travel information. Emirates-CAE Flight Training and flydubai announce type-rating training pro- Personal flight details, credit cards information, and product and service infor- gramme: Emirates-CAE Flight Training (ECFT) announced a long-term pilot mation are stored in the app, so users can view it offline too. training agreement with flydubai. This arrangement will provide instruction Source: Arabian Aerospace on the Boeing 737-800 aircraft to those interested in having an opportunity to fly for flydubai. The programme is offered to commercial pilots who have less than 1,500 flying hours. The programme is currently underway at the

Daily news on www.aaco.org Issue 93 - Dec 2014 27 Aviation in the Arab World Emirates-CAE Flight Training (ECFT) and Dubai Silicon Oasis (DSO) centres. MAINTENANCE, REPAIR & OVERHAUL As the aviation industry in the Middle East continues to grow, training facilities for pilots to gain additional experience and skills are essential. This pro- Emirates overhauls its first Airbus A380:Emirates Engineering marked anoth- gramme demonstrates the commitment of ECFT and flydubai to ensuring pi- er milestone when the team performed its first 3C-Check on an A380, a major lots are offered world-class training opportunities. overhaul that restores the airline’s first A380 aircraft to near pristine condition. The ECFT type-rating programme represents an opportunity for low-hour com- In a round-the-clock operation taking 55 days, two teams of highly specialized mercial pilots to accumulate the required number of flying hours and become engineers stripped the entire interior of the double-decked aircraft to the bare type rated. Upon successful completion of the programme, pilots will be able metal hull, inspected and overhauled every single part, and then put the plane to apply for any potential vacancies at flydubai and may then be invited to un- components back together again. dergo a comprehensive evaluation and interview process. Source: CAE Etihad Airways sets new world record for the fastest replacement of GE90 aircraft engine: Etihad Airways’ Technical Maintenance department set a new MEA announces launch of new aviation academy:Middle East Airlines an- world record by replacing a GE90 engine on one of its Boeing 777 passenger nounced the establishment of an aviation academy for initiating and training aircraft in less than seven hours. pilots at its headquarters in Beirut’s Rafik Hariri International Airport, an MEA The time taken to replace an aircraft engine is usually between 20 and 25 statement said. hours, which can cause significant operational disruption to flight schedules Mr. Mohamad El-Hout, Chairman - Director General of Middle East Airlines, and ultimately reduce profitability. was quoted as saying that the academy would start operating in April 2015, The world record was achieved overnight at the Etihad Airways Light Mainte- offering specialized pilot training in a first phase, to be fully completed by early nance facility on 10 November 2014 by a team of 12 mechanics and engineers 2016. The academy consists of a built area of 14,000 square meters above from the airline’s Technical Department, who have been looking at ways to ground and 23,000 square meters underground. enhance efficiency and minimise aircraft down times due to scheduled engine Source: The Daily Star replacements. EgyptAir Training Center cooperates with Eritrean Airlines: EgyptAir Training ARAB AIRPORTS Center received a high-level delegation from Eritrean Airlines to discuss ways to expand cooperation in the fields of cabin crew training for Eritrean Airlines Top 20 Airports by International Seats Offered on Operations To, From, and crews .This cooperation extends to several previous years. Within the Arab World - October 2014 The delegation had a tour to learn about the advanced capabilities available Top 20 Airports by Int’l Seats Offered on Operations To, From, and Within inside the center where the visit included various types of simulators such the Arab world as A320 / A330 / A340 / B777 / B737 to train pilots, as well as the training of Airport Number of Seats Airport Number of Seats cabin crew on advanced training devices such as the emergency procedures training on CEET and training methods provision of services to passengers on DXB 8,564,174 DMM 916,368 CST. Also the center showed how the engineers are trained the maintenance DOH 3,228,170 AMM 844,101 types of aircraft, which is done on the highest level of quality. Discussions have JED 2,720,518 SHJ 836,784 also been completed to discuss aspects of partnership and cooperation. RUH 2,264,330 BEY 806,378 On the other side, cadres of Sudan Airways are being trained on the different services and types of ground services and aircraft maintenance as this AUH 2,202,321 IST 792,214 cooperation extends from 2013, and it is planned to continue to expand with CAI 1,907,311 LHR 771,576 the Sudanese side in multiple areas, such as English language test in Aviation KWI 1,338,821 ALG 709,809 field and other domains. EgyptAir Training Center is keen on the presence and BAH 1,089,928 CDG 636,991 spreading in the black continent. Source: EgyptAir Training Center MCT 994,106 TUN 605,014 CMN 980,594 BOM 538,122 Source: AACO, SRS Analyzer

Daily news on www.aaco.org Issue 93 - Dec 2014 29 Aviation in the Arab World

Queen Alia International Airport continues positive growth trend for -pas year-to-date average was 212 passengers per flight, up 6.5% from the same senger and aircraft traffic in October 2014: Airport International Group (AIG) period last year. announced a continuing positive growth trend for passenger traffic (PAX) and Freight volumes decreased 6.2% in October with 195,824 tonnes passing aircraft movements (ACM) at Queen Alia International Airport (QAIA) during through the facility compared to 208,695 tonnes recorded during the same October 2014, for the tenth consecutive month. month last year due to the move of freighter operations to DWC. Year-to-date During October 2014, PAX increased by 1.3% to come in at 608,605 PAX com- cargo traffic totalled 1,959,108 tonnes compared to 2,002,291 tonnes record- pared to 600,855 PAX over the same month in 2013. Since the beginning of ed in the first 10 months of 2013, down (2.2%). 2014 and up until October, year-to-date (YTD) PAX rose by 10.6% to reach Source: Dubai Airports 6,162,914 as opposed to 5,570,634 YTD PAX during the same period in 2013. ACM registered record growth during October 2014, surging 7.6% to stand at 6,540 ACM in comparison to 6,078 ACM during October 2013. YTD ACM reached 62,561 ACM, represented by a 9.3% increase over the same period in 2013. Source: Airport International Group (AIG) Abu Dhabi International Airport reports 17.4% increase in traffic for Octo- ber 2014: Abu Dhabi Airports announced that passenger traffic at Abu Dhabi International Airport increased by 17.4% in the month of October. A total of 1,689,983 passengers passed through Abu Dhabi International Airport in Octo- ber 2014, compared with 1,439,356 in the same month of 2013. There were 13,700 aircraft movements in October 2014, representing a 15.2% increase over the 11,891 movements that took place in October 2013. Cargo activity in October 2014 was 72,170 tonnes handled at the airport’s three terminals, a 16% increase when compared to October 2013. In October 2014, the top five routes from Abu Dhabi International Airport were Bangkok, Doha, London Heathrow, Manila, and Bahrain. The top five routes accounted for 17% of all traffic through the capital’s airport. Source: Abu Dhabi Airports October traffic boosts year end forecast for Dubai International:Passenger traffic at Dubai International rose 5.7% in October putting the airport on track to eclipse the 71 million passenger mark by year-end, according to the latest traffic report issued by operator Dubai Airports. Passenger traffic in October totalled 5,989,007 compared to 5,667,698 recorded in the corresponding month last year, an increase of 5.7%. Year to date traffic rose 6.1% to 58,411,554 compared to 55,046,863 recorded during the same period in 2013. Aircraft movements grew 1.6% to 32,798, up marginally from the 32, 279 recorded during October 2013. Year to date movements totalled 290,779 compared to 305,596 in the same period last year, a contraction of 4.8% largely due to the shift of all pure cargo flights as well as general aviation to Al -Mak toum International at Dubai World Central (DWC) earlier this year and the temporary reduction of flights experienced during the 80 day runway refur- bishment project earlier this year. Spurred by an ongoing increase in the number of wide bodied aircraft servicing the airport, the number of passengers per flight was 192 during October unchanged from October 2013, while the

Daily news on www.aaco.org Issue 93 - Dec 2014 31 GLOBAL ARAB AVIATION Global Arab Aviation

Monthly Passenger Numbers' Change To and From the Arab World SPREADING OUT Nov13 to Oct14* compared to same month in previous year PASSENGER TRAFFIC Passenger numbers on routes to and from the Arab world are estimated to 14% have grown by 4.1% in October 2014 compared to October 2013, after a 12% growth of 11.4% in September 2014 over September2013. 10% 8% Traffic to and from the Arab world Oct 14* over Oct 13 6% With the Americas 12.6% 4% 2% With Europe 4.4% 0% With Mid Asia 5.2% With Far East and Australasia 0.5% With Sub Saharan Africa (4%) 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 Source: AACO, IATA *Estimated Jul14-Sep14 & Aug14-Oct14* compared to same period in previous year ROUTES 16% Weekly 14% Airline From To Date Freq. Aircraft type 12% AT Tangier Gibraltar 29 Mar. 14 2x ATR-72 10% Maldives 14x to 21x B777-300ER 1 Dec. 14 8% San Francisco 7x Milan Malpensa 2 Dec. 14 A380 6% EK unchanged 4% Dubai Houston 3 Dec. 14 2% Dar es Salaam 1 Jan. 15 7x to 14x A330-200 0% New York 8 Mar. 15 21x to 28x A380 San Francisco 18 Nov. 14 7x B777-300ER With the EY Americas With Europe With Mid Asia Abu Dhabi Peshawar 1 Dec. 14 4x A320 Jul14-Sep14 With EY/HM Seychelles 1 Dec. 14 10x to 13x N/A AustralAsia With Sub- Aug14-Oct14* Saharan Africa GF Bahrain Thiruvananthapuram 5 Dec. 14 7x N/A Source: AACO, IATA *Estimated Istanbul Sabiha 29 Mar. 15 7x to 14x A320 QR Doha Passenger numbers to and from the Arab world market reported a 8% growth Edinburgh 1 May 15 5x to 7x B787 between July 14 & September 14 compared to the same period in previous KC Almaty Dubai 16 Nov. 14 7x A320 year. LH Cargo Frankfurt Tunis 28 Oct. 14 1x MD-11F Passenger numbers to and from the Arab world market reported a 8.7% increase between August 14 & October 14* compared to the same period in Royal Air Maroc to launch Tangier-Gibraltar flights:Royal Air Maroc will previous year. launch services between Tangier and Gibraltar on 29 March 2015. Operating initially twice weekly, the flights will be operated by Royal Air Maroc’s 70-seat ATR-72 aircraft and offer both an economy and business product. Source: VOX Gibraltar News Daily news on www.aaco.org Issue 93 - Dec 2014 35 Global Arab Aviation

Emirates to operate seven additional flights a week to the Maldives:Emir - Etihad Airways and Air Seychelles enhance connectivity with new Abu Dha- ates has launched a third daily service to Malé, the capital of the Maldives, on bi-Seychelles schedule: Etihad Airways and Air Seychelles announced changes 1 December. to their flight schedules on the Abu Dhabi-Seychelles route. On 1 December The seven new flights a week are being operated with Boeing 777-300ER air- 2014, Etihad Airways added one service per week and Air Seychelles a further craft in two class configuration, adding 294 Business Class and 2,702 Economy two services per week, bringing the combined number of weekly return flights Class seats each way per week on the route, as well as 23 tonnes of additional to Seychelles from 10 to 13. capacity for cargo per flight. Etihad Airways resumes Peshawar operations:Etihad Airways resumed flights Emirates launches 3 new A380 routes: Emirates launched three new A380 to Peshawar on 1 December with four flights being operated per week. destinations in three days. These destinations are San Francisco, Milan and The decision has been made after a careful review of operational elements Houston. With these three up-gauges Emirates’ A380 route network totals 33 and the security situation in Peshawar, in collaboration with the GCAA. destinations, spanning from Auckland in the East to Los Angeles in the West. Services to Peshawar will be operated using a two-class Airbus A320 aircraft Emirates’ San Francisco service started operating daily to and from San Fran- configured to carry 136 passengers, with 16 seats in Business Class and 120 cisco International Airport from 1 December 2014. seats in Economy Class. Emirates flight to and from Milan Malpensa Airport in Milano started on 2 De- cember 2014. Gulf Air operates daily flights to Thiruvananthapuram:Gulf Air started operat- Emirates’ daily flight to and from George Bush Intercontinental Airport started ing a daily service starting between Bahrain and Thiruvananthapuram on 5 on 3 December 2014. December 2014. Together with the latest daily services to Thiruvananthapuram Gulf Air op- Emirates’ Dar es Salaam service becomes double daily: Emirates announced erates 10 weekly services to Chennai, double daily flights to New Delhi and that Dar es Salaam, Tanzania’s principal port and commercial city, will become Mumbai, and daily to Kochi in addition to the upcoming 5 weekly service to a double daily operation from 1 January 2015. Hyderabad that will be launched on 15 December. In total Bahrain’s carrier Emirates currently operates 12 flights a week between Dubai and Dar es Sa- provides a total of 57 weekly direct and full service flights between India and laam and with the addition of two extra flights on 1 January, Dar es Salaam Bahrain. will join Nairobi as the second destination in east Africa with a double daily service. Qatar Airways to start double daily services to Istanbul Sabiha Gokcen Air- The second daily service is operated with an Emirates A330-200 in a three port: Qatar Airways will expand its flights to Istanbul Sabiha Gökçen Airport class configuration with 12 seats in First Class, 42 in Business Class and 183 in from 29 March 2015, as it increases its frequency to a double-daily service. Economy Class. The two extra flights will provide an additional 948 seats to the With the launch of the new daily service to Sabiha Gökçen Airport, passen- 2,370 seats available on the current five times weekly service. It also increases gers from the Middle East, Asia Pacific, the Americas and Africa can now take the cargo capacity on the route by more than 65 tonnes. advantage of an additional morning connection to Istanbul via Doha. The new daily flight will be operated by a two-class Airbus A320 aircraft. Emirates to increase its service to New York: Emirates announced that it will launch a fourth daily service from its home and hub, Dubai International Air- Qatar Airways’ flights to Edinburgh to increase to a daily scheduled ser- port to John F. Kennedy International Airport (JFK) in New York commencing vice: Qatar Airways will operate a daily, direct scheduled service from Doha’s 8 March 2015. The fourth JFK service will be operated with one of Emirates’ Hamad International Airport to Edinburgh Airport from 1 May 2015. The an- fleet of A380 aircraft featuring 14 First Class Private Suites, 76 Business Class nouncement comes just six months after the successful launch of the five- lie-flat beds and 399 Economy Class seats on the main deck. weekly service on the route. The extra services will be operated by a Boeing 787 Dreamliner, which has Etihad Airways’ inaugural flight to San Francisco touches down:Etihad Air- a two-cabin configuration, comprising of 22 seats in Business Class and 232 ways ‘ flight EY183 touched down at San Francisco International Airport on 18 Economy Class seats. November 2014, marking the start of its new nonstop daily service between Abu Dhabi and San Francisco, the airline’s fifth destination in the U.S. Air Astana expands in the Middle East with new daily schedule from Dubai The route is being operated using a Jet Airways’ Boeing 777-300ER aircraft to Almaty, Kazakhstan: Air Astana bolstered its presence in the Middle East through a lease agreement. The flights will have a combination of Etihad -Air with the recent inauguration of direct daily flights to Almaty International -Air ways and Jet Airways cabin crew onboard. port (ALA) from Dubai International Airport (DXB) on 16 November. The route

Daily news on www.aaco.org Issue 93 - Dec 2014 37 Global Arab Aviation

is served by Airbus A320 aircraft in a two class layout - 16 business class and 132 economy seats. Source: Air Astana Capacity* of Top 10 Carriers (Arab World & Australasia) Lufthansa Cargo expands freight operations in Tunis:In addition to the exist- Airline ASKs (Million) Departures Seats ing capacities on passenger aircraft, Lufthansa Cargo launched on 28 Octo- EK 7,623.9 2,659 1,097,167 ber 2014 a weekly freighter flight between Frankfurt and Tunis. The freighter QR 3,216.8 1,626 467,564 flights will be operated by an MD-11 Freighter. EY 2,460.6 1,137 343,379 Source: Aerotunisie SV 844.9 325 113,609 CAPACITY AND DEMAND QF 660.5 124 55,800 Passenger Air Services to & from the Arab World - Oct 2014 - SRS Analyzer CX 443.3 229 71,219 AACO members increased the number of seats offered to and from the 5J 397.6 124 54,064 Arab world by 18.7%, while other airlines decreased the number by (2.7%) which resulted in a growth of 10.8% in the total number of offered seats to MS 293.8 114 38,534 and from the Arab world. PR 245.1 110 33,220 JT 244.9 62 30,752 Percentage of the Total Available Seats To and From the Arab World Grand Total 18,852.6 8,020 2,710,258 With Europe 30.2% * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer With Mid Asia 18% With Australasia 9.9% With the Americas 2.9% With Sub Saharan Africa 4.5% Source: AACO, SRS Analyzer Capacity* of Top 10 Carriers (Arab World & Europe) Capacity* of Top 10 Carriers (Arab World & Mid Asia) Airline ASKs (Million) Departures Seats Airline ASKs (Million) Departures Seats EK 7,907.6 3,850 1,598,078 EK 2,405.3 3,068 1,049,427 QR 2,671.1 2,537 595,075 QR 1,152.9 2,088 422,406 EY 2,006.4 1,745 408,174 SV 1,004.4 1,029 287,830 TK 1,048.3 2,721 504,783 G9 852.4 2,058 333,396 AT 798.2 2,783 420,696 9W 849.5 2,012 327,380 BA 794.4 783 177,193 EY 722.8 1,849 293,876 LH 676.5 957 188,215 FZ 706.3 1,512 285,768 SV 627.7 715 157,352 AI 697.6 1,250 245,470 MS 589.1 1,288 218,402 IX 548.4 1,149 206,820 AF 487.2 1,234 208,697 WY 447.2 1,338 200,878 Grand Total 26,525.5 40,446 8,276,428 Grand Total 12,695.6 24,183 4,937,656 * 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 93 - Dec 2014 39 Global Arab Aviation TOURISM Capacity* of Top 10 Carriers (Arab World & Sub Saharan Africa) Emirates and DTCM’s new USD 20 million campaign promoting Dubai:Emir - Airline ASKs (Million) Departures Seats ates and Dubai’s Department of Tourism and Commerce Marketing (DTCM) launched a new global campaign that celebrates different facets of Dubai. EK 2,656.1 1,351 486,086 The USD 20 million “See you in Dubai” campaign, one of Emirates’ largest to QR 407.5 502 90,532 date, is created in partnership with DTCM to reach audiences across the globe, AT 375.6 804 125,156 focusing particularly on markets in Europe, Asia, Africa, Latin America and the Middle East. MS 290.0 450 76,298 Across print, broadcast and outdoor media, the “See you in Dubai” campaign ET 249.2 685 116,874 will highlight the familiar as well as the unexpected experiences that Dubai has EY 245.9 261 53,163 to offer, conveying the spirit of this exciting global city that is always evolving. KQ 100.8 202 34,425 While most visitors are familiar with Dubai’s iconic landmarks such as the Burj Al Arab, Burj Khalifa and The Dubai Mall, the emirate provides plenty more at- FZ 90.5 150 28,350 tractions and experiences – ranging from a host of desert activities, to beauti- SV 75.1 174 27,646 ful beaches and a wealth of water sports, to a growing arts and culture scene, TU 65.0 110 18,834 and amazing cuisines that span the globe. Grand Total 5,066.3 5,616 1,227,578 Source: Arabian Aerospace * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Tourism Australia and Etihad Airways quadruple joint marketing commitment: Tourism Australia and Etihad Airways have deepened their strategic marketing partnership with a significant increase in joint funding for the promotion of tourism to Australia in overseas markets. Under the new arrangements, Tourism Australia and Etihad Airways will quadruple their spend in the 2014/15 season for what will become their strongest ever push to promote Australia to international leisure and business travellers. Capacity* of Top 10 Carriers (Arab World & the Americas) This doubles the total value of the original three-year, USD5 million marketing Airline ASKs (Million) Departures Seats agreement signed in December 2013 to USD 10 million. EK 3,804.1 772 316,748 This additional funding covers a range of joint marketing activities including QR 1,681.1 486 144,722 support for Tourism Australia’s Restaurant Australia campaign, its international media hosting program, Australian Tourism Exchange, and targeted business EY 1,204.8 338 102,306 events in the UK and Europe. SV 709.8 212 65,124 Tourism Australia first announced a global Memorandum of Understanding UA 295.5 98 26,656 with Etihad Airways in December 2013 worth a total of USD 5 million over RJ 263.1 104 27,576 three years. Source: Tourism Australia and Etihad Airways 9W 250.6 60 22,680 MS 219.4 70 24,080 World Committee on Tourism Ethics praises initiatives on Accessible Tourism: DL 190.8 58 15,602 The fourteenth meeting of the World Committee on Tourism Ethics meeting AT 179.3 130 29,900 in Rome, Italy (17-18 November 2014) commended the efforts of UNWTO and its partners to advance Accessible Tourism for All. The Committee firmly sup- Grand Total 8,955.4 2,402 795,034 ported the “Montreal Declaration – A World for All”, the outcome document * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer of the recent World Summit on Destinations for All, and participated actively in the 1st Conference on Accessible Tourism in Europe held in San Marino on 19-20 November. Source: UNWTO

Daily news on www.aaco.org Issue 93 - Dec 2014 41 Aviation in the Arab World COLLABORATION The deal will see SAS place its SK code on Etihad Airways’ flights between Abu Dhabi and Brussels, Düsseldorf, Frankfurt, Rome, Milan, Zurich, Geneva and Starwood Preferred Guest® and Emirates Skywards® join forces to extend London Heathrow. benefits across the sky and around the globe:Starwood Hotels & Resorts In turn, Etihad Airways will place its EY code on SAS-operated flights from Worldwide, Inc. and Emirates Airline announced on 10 November 2014 a new these European destinations, excluding Brussels, onto SAS’ hubs in Copenha- partnership providing reciprocal benefits to Starwood Preferred Guest® (SPG®) gen, Oslo, and Stockholm. and Emirates Skywards® members. The program, Your World Rewards®, began The EY code will also be placed on flights beyond Copenhagen to Billund and on 19 November 2014 and allows SPG and Skywards elite members who regis- Ålesund; beyond Oslo to Ålesund, Kristiansand, Trondheim, and Stavanger; ter for the program, to elevate their earnings and benefits when they fly with and beyond Stockholm to Umeå, Sundsvall, and Östersund. Emirates or stay with SPG Participating Hotels. With Your World Rewards, SPG and Emirates Skywards members will now ENVIRONMENT earn in the air, on the ground and around the world. Whether on business or leisure, registered SPG and Emirates Skywards members will enjoy the best in CDM pipeline update: travel from take-off to check-out with rich benefits, personal service and -ex CDM pipeline update 1 Dec. 2014 Status # of Projects tensive access around the world through this partnership of two loyalty pro- Status # of Projects Withdrawn 63 grams. At Validation 1058 Rejected by EB 270 Etihad Airways and Alitalia codeshare between UAE and Italy with major ex- Request for Registration 9 Validation Negative by DOE 267 pansion: Etihad Airways and Alitalia will offer enhanced connections between Request for Review 1 Validation Terminated Abu Dhabi and three of Italy’s biggest cities in 2015, with combined double- Correction Requested 0 1,940 daily flights to Milan and Rome, and a new daily service to Venice. by DOE The two airlines signed a major codeshare expansion, which subject to govern- Under Review 0 Registered, no issuance 4,884 ment approval, will result in Etihad Airways placing its ‘EY’ code on Alitalia’s Total in Registration 10 of CERs new daily service between Venice and Abu Dhabi. The flights will be launched Process Registered, CER issued 2,695 on 29 March 2015 using an Airbus A330-200 aircraft with 20 Business Class Source: UNEP RisØ seats, 17 Economy Plus Class seats, and 213 Economy Class seats. Total Registered 7,579 In addition, the ‘EY’ code will be placed on Alitalia’s upcoming daily service Settlement Price of ECX EUA and CER Futures on 4 December 2014 between Abu Dhabi and Milan, which also launches on 29 March 2015, and Dec-14 Dec-15 Dec-16 Dec-17 will be operated using a Boeing 777 aircraft with 30 seats in Business Class, 24 seats in Economy Plus Class, and 239 seats in Economy Class. EUAs € 6.84 € 6.94 € 7.08 € 7.25 Both airlines already codeshare on each other’s daily services between Abu CERs € 0.04 € 0.57 € 0.57 € 0.57 Dhabi and Rome, and subject to government approval, Etihad Airways will Source: IntercontinentalExchange codeshare on 15 of Alitalia’s domestic routes from Rome Fiumicino Airport in 2015, offering extensive access to and from the country. EUROCONTROL and ACI Europe publish factsheet to help air transport adapt to a changing climate: EUROCONTROL officially launched the Collaborative Etihad Airways and SAS announce codeshare plans:Etihad Airways and SAS Environmental Management Specification (CEM) at this year’sth 9 Annual ACI are set to begin codeshare operations and provide customers with enhanced AIRPORT EXCHANGE* Conference & Exhibition. travel options between Scandinavia and the UAE. This specification sets out a unique collaborative approach to managing envi- The agreement, which is subject to regulatory approval, will strengthen both ronmental impacts at and around airports, supporting all operational stake- carriers by enabling them to offer greater connectivity to and from a number holders in their quest to reduce their gaseous and noise emissions as well as of key European cities. SAS is Etihad Airways’ th47 airline partnership globally improve local air quality. In practical terms, CEM is based on the formalisation and its 22nd in Europe. For SAS, Etihad is the 23rd codeshare partner and the of local working arrangements between the airport, its airlines and ANSP so as third in the Middle East. to jointly monitor key environmental parameters. This allows for a better iden- Both airlines will also develop and sign a Frequent Flyer agreement, which will tification of trade-offs between different environmental objectives, helping benefit the members of Etihad Airways’ Etihad Guest and SAS’ EuroBonus -loy to resolve environmental and operational challenges based on informed deci- alty programs. sions.

Daily news on www.aaco.org Issue 93 - Dec 2014 43 Global Arab Aviation

On this occasion, EUROCONTROL and ACI EUROPE signed a mutual recognition Antitrust Immunity requested for United-All Nippon Airways joint cargo ven- of their organisations’ support and commitment to aviation’s sustainable de- ture: All Nippon Airways (ANA) filed an application on 21 November with the velopment. This involves the endorsement by ACI EUROPE of the CEM Speci- MLIT (Japan’s Ministry of Land, Infrastructure, Transport and Tourism) for an- fication as one of its Recommended Practice, making it an industry standard. titrust immunity to enable ANA and United Airlines to create a more efficient This new chapter in the cooperation between the two organisations builds on and comprehensive trans-Pacific air cargo business network. their joint efforts to promote airports’ license to grow – which has seen EURO- The trans-Pacific cargo joint venture – the first of its kind between the U.S. CONTROL formally endorsing Airport Carbon Accreditation upon the launch of and Asia –would generate substantial service benefits for freight consumers. the programme by ACI EUROPE in 2009. It would also enable United and ANA to compete more effectively with other *ACI AIRPORT EXCHANGE, presented jointly by ACI EUROPE and ACI ASIA- airlines that maintain a significant presence in both markets. PACIFIC is the biggest annual airport industry event, grouping 5 simultaneous Upon completion of the Japanese and United States regulatory processes, conferences and an exhibition, addressing the many facets and challenges of United and ANA will be able to jointly manage trans-Pacific air cargo business the airport business. To find out more, visit www.airport-exchange.com. activities including scheduling, pricing and sales. This will allow the carriers to offer customers a greater selection of routings and cargo space along with a India’s carbon emissions from airline operations show small increase in 2013 wider range of service options. but fuel efficiency improves:Carbon emissions from Indian and foreign airlines rose 1.57% in 2013 to 15.63 million tonnes, although down from 16.33 million tonnes in 2011 when India’s civil aviation authority (DGCA) first started measuring the sector’s carbon footprint. The total last year represents less than 1% of the country’s anthropogenic emissions, significantly lower than the corresponding global total of 2-3%. Despite the increase in emissions, the carbon efficiency of Indian scheduled passenger airlines improved from 0.99 kgs of CO2 per revenue tonne kilometre in 2012 to 0.96 in 2013, which compares to a global average for the sector of 0.95 last measured in 2011. The DGCA estimates emissions may nearly double to 28 million tons by 2020 in the ab- sence of further efficiency improvements, given the fast growth of the Indian air transport market. India’s more than 100 airports handled around 170 million passengers in the 2013/14 fiscal year, says the DGCA in its ‘Carbon Footprint of Indian Aviation 2013’ report just published, and expects domestic and international passenger traffic to grow at annual rates of 12% and 8% respectively to become the third largest market in the world by 2020. Source: GreenAir Online REGULATORY TONE Alitalia and Etihad Airways receive clearance from the European Commis- sion: Alitalia and Etihad Airways confirmed that they have received merger clearance from the European Commission under EU Regulation No. 139/2004. They can therefore proceed with the proposed strategic partnership announced in August. Following the completion of its review, the European Commission confirmed that the partnership complies with the European regulations on competition. In line with previous cases, the airlines undertook commitments aimed at facilitating the entry of new airlines on the Rome to Belgrade route. The parties continue to work together with a view to completing the transaction before the end of 2014. Source: Alitalia and Etihad Airways

Daily news on www.aaco.org Issue 93 - Dec 2014 45 Global Arab Aviation AN AVIATION MARKET IN FOCUS: INDIA India’s domestic aviation in October 2014 Republic of India Route Seat Capacity* • Population: 1.25 billion Delhi - Mumbai 685,967 2 • Land area: 3,287,590 km Bengaluru - Delhi 362,558 • Number of passengers in 2013: more than 107 million passengers were handled by Indian airports Bengaluru - Mumbai 334,574 • Number of commercial airports: more than 60 commercial airports Kolkata - Mumbai 281,269 • Indian-based airlines: More than 13 airlines including Jet Airways, Indigo, Air Chennai - Delhi 242,690 India, and SpiceJet Chennai - Mumbai 223,723 Aviation Policy: - The Directorate General of Civil Aviation is the statutory authority that over- Source: AACO, FlightMaps Analytics Delhi - Kolkata 221,836 sees and regulates civil aviation in India, under the umbrella of India’s Minis- The top 10 city pairs on the right Delhi - Srinagar 210,530 try of Civil Aviation. accounted for 25.53% of the Goa - Mumbai 205,952 - India does not adopt an open skies policy; however, an open skies agree- total seat capacity scheduled Ahmedabad - Mumbai 202,960 ment was signed with the US in 2005. within India in October 2014. Source: AACO, FlightMaps Analytics - The Indian Government has eased the rules on foreign investment in airlines * This includes seat capacity in both directions in 2013 allowing foreign airlines to buy up to 49% stake into Indian carriers. Traffic Share between India and Other Regions in Alliances Share of Seat Capacity Serving Airline Seat Capacity 2013 Mid Asia (includes India's Market 5.9% 5.3% 1.3% 2% 4% domestic traffic) IndiGo 4,434,660 Top 10 airlines operating by seat ca- 4% 9.9% Arab World Unaligned Air India 2,759,170 pacity to, from and within India in October 2014 Australasia Jet Airways 2,265,258 oneworld The top 10 airlines on the left offered SpiceJet 2,404,603 Europe almost 15.04 million seats (87.78% of Sky Team Go Air 916,020 Americas the scheduled seat capacity) to, from 17.1% 60.5% Emirates 944,508 and within India in October 2014. Sub Sahrain Africa Star Alliance 90% Jet Lite 507,142 For international passengers and based on O&D Source: AACO, FlightMaps Analytics Air-India Express 324,756 Source: AACO, IATA Qatar Airways 299,646 India’s aviation market links 154 cities worldwide(click on image for detailed view) Saudia Airlines 188,793 Route Seat Capacity* Source: AACO, FlightMaps Analytics Dubai - Mumbai 208,894 Delhi - Dubai 158,306 Delhi - London 106,284 Top 10 routes by seat capacity to and from India in October 2014 London - Mumbai 102,228 Around 1.09 million seats were of- Mumbai - New York 90,830 fered on the top 10 city pairs to and Chennai - Singapore 90,376 from India in October 2014, repre- Dubai - Hyderabad 86,666 senting a 6.35% of the total capacity offered to and from India. Mumbai - Singapore 82,418 Delhi - Singapore 81,530 Chennai - Dubai 81,018 Source: AACO, FlightMaps Analytics * This includes seat capacity in both directions Source: AACO, FlightMaps Analytics October 2014 Daily news on www.aaco.org Issue 93 - Dec 2014 47 Global Arab Aviation

WORLD NEWS Record participants take part in ICAO’s 2014 Air Services Negotiation -Con ference: The seventh ICAO Air Services Negotiation Conference (ICAN2014) ICAO Conflict Zone Task Force completes challenging agenda, prepares recom- wound up on a record note in Bali, Indonesia, with 78 States/territories and mendations for 2015 High-level Safety Conference: The Third Meeting of the one regional body taking full advantage of ICAN’s unique and cost-effective International Civil Aviation Organization’s (ICAO’s) Task Force on Risks to Civil multi-negotiation facility to expand air transport liberalization and market ac- Aviation arising from Conflict Zones (TF-RCZ) arrived at its successful conclu- cess. sion, with participants expressing clear satisfaction with the substantial progress Some 440 negotiators conducted 550 meetings during the five-day ICAN mara- achieved. thon, which led to the signing and initialling of 530 air service agreements and The proposed work programme adopted, designed to keep passengers safe from arrangements. Since its inception in 2008, six successive ICANs have been held conflict zone risks wherever they fly and regardless of their airline of choice, will in different regions of the world to advance the liberalization of international now be packaged for assessment by a wider cross-section of ICAO’s 191 Mem- air transport to the benefit of the industry and travelling public. ICAN2014 was ber States during the UN agency’s High-level Safety Conference slated for 2–5 additionally noteworthy in that it was opened to participation from both -gov February 2015. ernments and industry. The Task Force participants reaffirmed during the final session that the world Reflecting the close link between air transport and tourism, and their ongoing civil aviation system can rise to the challenges being presented by conflict zones. collaborative efforts, the World Tourism Organization (UNWTO) was invited They also expressed particular satisfaction with the work completed by its team to the event for a second time in 2014. Mr. Marcio Favilla, Executive Director of international experts on the types of risks to civil aviation over conflict zones. of UNWTO, highlighted the critical links between the work of ICAO and the These risk assessment categories are intended to provide guidance to both air- UNWTO and the need to foster still greater global connectivity and facilitation lines and States in the future and were a key outcome being sought. supporting the travel and tourism sectors. The final Task Force session also saw ICAO being commended for its intention On behalf of 2015 ICAN host nation Turkey, its Director General of Civil Avia- to accept inputs to the 2015 High Level Safety Conference on a prototype cen- tion Mr. Bilal Eksi accepted the handover of ICAN responsibilities from 2014 tralized information sharing system. Centralized information sharing is thought host Indonesia, extending a warm invitation to participants to join ICAN2015 to be critical to improved conflict zone risk mitigation moving forward, and the in Turkey late next year. related recommendations were expected to be largely informed by the promis- Source: ICAO ing trials of a European version of the system which has now undergone some preliminary trials. Air China, Air Canada ink revenue-sharing joint-venture: Air China and Air Source: ICAO Canada have concluded a Memorandum of Understanding setting out the main principles for a comprehensive revenue sharing joint-venture on flights Statement from the Travel and Transport Task Force on Ebola virus disease between the two countries. The announcement was made in Beijing during outbreak in West Africa: Leading international organizations and associations Canadian Prime Minister Stephen Harper’s official visit to China. from the transport, trade and tourism sector stand firmly with the World Health Subject to Air Canada and Air China making the necessary filings, obtaining Organization (WHO) against general bans on travel and trade, as well as restric- competition and other regulatory approvals and finalizing documentation, the tions that include general quarantine of travellers from Ebola-affected countries. joint venture between the Star Alliance carriers is expected to come into effect The Travel and Transport Task Force, established in August 2014, calls for inter- by the end of 2015. national cooperation of governments and the transport sector in following the Source: Ch-aviaiton recommendations of the International Health Regulations Emergency Commit- tee on Ebola, convened by WHO. WHO does not recommend general bans on IATA Figures -- Passenger traffic maintains strong growth in October 2014: travel or trade, or general quarantine of travellers arriving from Ebola-affected The International Air Transport Association (IATA) announced global passenger countries, as measures to contain the outbreak. traffic results for October showing a strengthening in demand growth com- Such measures can create a false impression of control and may have a det- pared to September 2014 and to the year-ago period. Total revenue passenger rimental impact on the number of health care workers volunteering to assist kilometers (RPKs) rose 5.7% over October 2013, slightly ahead of the 5.2% Ebola control or prevention efforts in the affected countries. Such measures may year-on-year rise recorded in September 2014. October capacity (available also adversely reduce essential trade including supplies of food, fuel and medi- seat kilometers or ASKs) increased by 5.5%, causing load factor to rise 0.1 per- cal equipment to the affected countries, contributing to their humanitarian and centage points to 79.1%. economic hardship. Source: ACI

Daily news on www.aaco.org Issue 93 - Dec 2014 49 Global Arab Aviation

Oct 2014 vs. Oct 2013 RPK Growth ASK Growth PLF for South Africa could ease some of the downward pressure on the conti- International 5.5% 6.4% 78.0 nent’s carriers. Additionally, the effect of any Ebola-related traffic down- turn is mostly restricted to Guinea, Liberia and Sierra Leone, markets that Domestic 5.8% 4.0% 81.1 comprise a very small proportion of overall African traffic. Total Market 5.7% 5.5% 79.1 Source: IATA

YTD 2014 vs. YTD 2013 RPK Growth ASK Growth PLF International 6.2% 6.4% 79.7 Domestic 5.2% 4.2% 81.0 Total Market 5.8% 5.6% 80.2

International passenger markets October international passenger demand rose 5.5% compared to the same month last year, with airlines in all regions except Africa recording growth. Ca- pacity climbed 6.4% and load factor dipped 0.6 percentage points to 78.0%. • European airlines saw demand increase by 5.8% in October versus Oc- tober 2013, the strongest growth among the three largest regions. Al- though there has been some slowdown in the Eurozone economy, travel on low cost carriers has remained robust and is helping sustain current results. Capacity rose 5.0% and load factor climbed 0.6 percentage points to 81.9%, highest among regions. • Asia-Pacific carriers’ traffic rose 5.5% compared to the year-ago period, reflecting stronger regional trade activity which encourages business travel. The economic slowdown in China has yet to have any impact on regional trade activity and related business travel. Capacity rose 7.4% and load factor dropped 1.4 percentage points to 74.9%. • North American airlines experienced a 1.8% rise in traffic compared to October a year ago. While a slowdown compared to September year- over-year growth, underlying trends in business activity are positive and growth in trade volumes has accelerated. Capacity rose 3.2%, which caused load factor to dip 1.1 percentage points to 80.3%. • Middle East carriers’ demand climbed 10.3% in October, the largest increase for any region, reflecting strong regional economies with rising export activity that supports regional trade and related international business travel. Capacity climbed 13.5%, causing load factor to fall 2.1 percentage points to 73.5%. • Latin American airlines saw traffic climb 6.5% compared to October 2013, second best among regions. Capacity rose 6.0% and load factor rose 0.5 percentage points to 80.5%. The weak growth in the Brazilian economy may be deteriorating further but regional trade volumes have been improving. • African airlines’ traffic contracted 1.6% in October, while ASKs slipped 0.1%, resulting in a 1.0 percentage point drop in load factor to 66.8%, the lowest for any region. The weakness reflects adverse economic developments in some parts of the continent. However, the improving outlook

Daily news on www.aaco.org Issue 93 - Dec 2014 51 OUR PARTNER AIRLINES Partner Airlines

Looking at the Spanish market traffic flows, the international European- mar ket represented in September 2014 74% of the total market, and is expected to have shrunk to 70.6% in October 2014. Traffic between the Arab world and Spain represented 1.5% of the total Spanish market in September 2014, and is LATEST NEWS estimated to have expanded to 1.6% in October 2014. IAG releases November traffic statistics: In November 2014, IAG traffic mea- Passenger Numbers' Change in the Spanish Air Transport Market sured in Revenue Passenger Kilometres increased by 5.9% versus November Jul14-Sep14 & Aug14-Oct14* compared to same period in previous year 2013; Group capacity measured in Available Seat Kilometres rose by 4.5%. Group premium traffic for the month of November increased by 3.4% com- 30% pared to the previous year. 25% Strategic Developments: On 11 November, British Airways announced that it will add Miami to its Air- 20% bus A380 network next October with two daily flights between London and 15% Florida. In addition, flights to more than 20 destinations will change terminals at Heathrow and by mid October 2015 all of the airline’s services will depart 10% from either Terminal 5 or the main oneworld alliance Heathrow base in Termi- 5% nal 3. 0% Domestic SPAIN TRAFFIC -5% With Arab With World With The Spanish air transport market expanded by 7.5% in September 2014 over Australasia With the Jul14-Sep14 Europe With Mid September 2013 in terms of number of passengers traveling to, from & within Americas with Sub Asia Spain, and is estimated to have grown in October 2014 by 2.5% compared to Aug14-Oct14* Sahran October 2013. Africa Source: AACO, IATA *Estimated Monthly Passenger Numbers' Change in the Spanish Air Transport Market In September 2014, Ryanair was the biggest carrier operating to, from and Nov13 to Oct14* compared to same month in previous year within Spain by number of passengers, boarding 2.96 million pax, which represented a decrease of (1.2) over September 2013 operations. 15% Top 15 Airlines Operating in the Spanish Market 10% Airline Sep-14 Change Airline Sep-14 Change 5% FR 2,967,488 (1.2%) DY 398,969 51.0% 0% IB 1,615,777 2.3% LH 291,595 (14.7%) -5% VY 1,284,808 19.9% 4U 245,850 77.1% -10% U2 1,282,095 5.2% BA 245,695 12.0% -15% AB 1,016,776 (1.9%) DE 238,373 21.4% -20% UX 632,632 4.9% NT 227,039 4.7% ZB 428,499 (0.8%) X3 200,636 4.1%

International Domestic LS 411,111 7.4% Grand Total 14,366,998 7.5% Source: AACO, IATA

Source: AACO, IATA *Estimated

Daily news on www.aaco.org Issue 93 - Dec 2014 55 Partner Airlines

UK TRAFFIC Passenger Numbers' Change in the UK Air Transport Market The UK air transport market expanded by 8% in September 2014 over Septem- Jul14-Sep14 & Aug14-Oct14* compared to same period in previous year ber 2013 in terms of number of passengers traveling to, from and within the 18% UK, and is expected to have grown by 0.5% in October 2014 compared to Oc- 16% tober 2013. 14% Monthly Passenger Numbers' Change in the UK Air Transport Market 12% Nov13 to Oct14* compared to same month in previous year 10% 8% 15% 6% 4% 10% 2% 5% 0% Domestic With Arab With 0% World With Australasia With the Jul14-Sep14 Europe With Mid Americas with Sub Asia -5% Aug14-Oct14* Sahran Africa -10% Source: AACO, IATA *Estimated In September 2014, easyJet was the biggest carrier operating to, from and within the UK by number of passengers, boarding 3.6 million pax, which rep- International Domestic resented an increase of 9.1% over September 2013 operations. Source: AACO, IATA *Estimated Top 15 Airlines Operating in the UK Market Looking at the UK market traffic flows, the international European market Airline Sep-14 Change Airline Sep-14 Change represented in September 2014 67.5% of the total market, and is expected to U2 3,601,679 9.1% KL 374,232 2.5% have shrunk to 65.3% in October 2014. Traffic between the Arab world and the UK represented 3.4% of the total UK market in September 2014, and is expect- FR 3,132,264 7.2% EK 373,354 5.5% ed to have grown to 3.8% in October 2014. BA 2,714,127 3.4% LH 367,824 (10.4%) ZB 794,651 3.6% W6 335,491 28.4% LS 732,530 8.1% DY 296,200 35.7% BE 672,732 (5.8%) UA 220,480 (0.1%) VS 469,386 3.0% SK 192,495 21.5% EI 439,776 14.6% Grand Total 18,320,244 8.0% Source: AACO, IATA

Daily news on www.aaco.org Issue 93 - Dec 2014 57 Partner Airlines

Looking at the Indian market traffic flows, the domestic market represented in September 2014 57.9% of the total market, and is estimated to have grown to 58.1% in October 2014. Traffic between the Arab world and India represented LATEST NEWS 17.9% of the total Indian market in September 2014, and is estimated to have Jet Airways’ commences roll out of full service product across domestic net- shrunk to 17% in October 2014. work: Jet Airways commenced on 2 December the roll out of a full service product on all flights across its domestic network. Passenger Numbers' Change in the Indian Air Transport Market Jet Airways started offering guests a two class, full service product with a Jul14-Sep14 & Aug14-Oct14* compared to same period in previous year complimentary dining experience onboard all domestic flights. Apart from the enhanced service quality levels, the airline will offer easy convenient connec- 16% tions on its domestic network to over 51 destinations across India with over 14% 450 daily domestic flights. Guests will also be able to access 22 international 12% destinations on Jet Airways network and will also offer connectivity to over 10% 135 international destinations across the world with its strategic alliance part- 8% ner Etihad Airways. 6% JetPrivilege members will also earn JPMiles in line with the accrual structure 4% of a full service flights. 2% The move to a full service brand is a part of a Board approved business plan 0% announced in August for the airline’s return to profitability. Domestic With Arab With World With Australasia With the Europe Within Mid Americas with Sub INDIA TRAFFIC Jul14-Sep14 Asia Int'l Sahran The Indian air transport market grew by 9.5% in September 2014 over Sep- Aug14-Oct14* Africa tember 2013 in terms of number of passengers traveling to, from and within India, and is estimated to have grown by 6.3% in October 2014 compared to Source: AACO, IATA *Estimated October 2013. In September 2014, Indigo Airlines was the biggest carrier operating to, from and within India by number of passengers, boarding 1.78 million pax, which Monthly Passenger Numbers' Change in the Indian Air Transport Market represented an increase of 25.9% over September 2013 operations. Nov13 to Oct14* comapred to same month in previous year Top 15 Airlines Operating in the Indian Market 20% Airline Sep-14 Change Airline Sep-14 Change 6E 1,781,330 25.9% QR 133,838 1.0% 15% AI 1,098,418 1.4% G9 126,018 (0.3%) 10% 9W 997,218 (10.9%) EY 119,107 95.5% SG 962,224 12.4% SQ 118,438 3.3% 5% G8 443,837 2.1% WY 99,684 1.5% 0% EK 399,518 14.9% SV 99,573 21.5% S2 339,268 24.7% UL 97,946 10.9% -5% IX 194,825 (10.4%) Grand Total 8,251,773 9.5% Source: AACO, IATA

International Domestic Source: AACO, IATA *Estimated

Daily news on www.aaco.org Issue 93 - Dec 2014 59 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 45.8% of September 2014 traffic, and is expected to have shrunk to 37% in October 2014. The domestic market was the second biggest market, account- LATEST NEWS ing for 36.6% of September 2014 traffic, and is expected to have expanded Turkish Airlines records 1.545 million TRY (USD 069) billion net profit in the to 46.2% in October 2014. On the other hand, traffic between the Arab world in the first nine months of 2014:Turkish Airlines’ first nine months 2014 con- and Turkey represented 7.1% of the total Turkish market in September 2014, solidated financial statements were reported to Borsa Istanbul. Compared to and is expected to have grown to 7.3% in October 2014. the same period of 2013, sales revenue increased by 33% (15% in USD terms) Passenger Numbers' Change in the Turkish Air Transport Market reaching 18.4 billion TRY. Jul14-Sep14 & Aug14-Oct14* compared to same period in previous year Turkish Airlines recorded 1.154 billion TRY operating profit in the third quarter of 2014, implying a 38% increase compared to the same period of 2013 and 35% completed the first nine months of 2014 with 1.467 billion TRY operating prof- 30% it. Net profit stood at 1.373 billion TRY for the third quarter and 1.545 billion TRY (increasing 87%) for the first nine months of 2014. 25% During the first nine months of 2014, 41.4 million passengers were carried im- 20% pliying a 14% increase in passenger traffic. Available seat kilometers (ASK) and revenue passenger kilometers (RPK) increased by 17%, resulting a stable load 15% factor of 79.7%. Number of international to international transfer passengers 10% increased by 23% reaching a 43% share within total international passengers. Turkish Cargo also witnessed a 20% tonnage growth and carried 491 thousand 5% tonnes of cargo in the first nine months of 2014. 0% Domestic With Arab With TURKEY TRAFFIC World With Australasia With the The Turkish air transport market in September 2014 grew by 13.1% over Sep- Jul14-Sep14 Europe With Mid Americas with Sub tember 2013 in terms of number of passengers traveling to, from and within Int'l Asia Aug14-Oct14* Sahran Turkey, and is estiamted to have grown in October 2014 by 16.3% compared to Africa October 2013. Source: AACO, IATA *Estimated Monthly Passenger Numbers' Change in the Turkish Air Transport Market In September 2014, Turkish Airlines was the biggest carrier operating to, from Nov13 to Oct14* compared to same month in previous year and within Turkey by number of passengers, boarding 3.18 million pax, which 80% represented an increase of 11.1% over September 2013 operations.

60% Top 15 Airlines Operating in the Turkish Market Airline Sep-14 Change Airline Sep-14 Change 40% TK 3,187,183 11.1% LH 87,495 (4.7%)

20% PC 1,240,108 21.2% X3 85,565 (6.6%) XQ 418,706 29.2% SU 76,051 27.8% 0% 8Q 247,195 19.5% XG 72,141 42.9% KK 210,475 21.4% U2 71,461 (7.5%) DE 120,233 12.8% 4U 47,499 23.7% AB 103,785 (24.0%) HV 44,421 8.1% International Domestic ZB 90,755 0.1% Grand Total 7,014,854 13.1% Source: AACO, IATA *Estimated Source: AACO, IATA

Daily news on www.aaco.org Issue 93 - Dec 2014 61 OUR INDUSTRY PARTNERS NEWS Our Partners News

Highly positive results for Amadeus in first nine months of 2014: Amadeus IT Holding, S.A. reported year-on-year financial and operating results for the first nine months of 2014 (nine months ended September 30, 2014). -Ad justed profit for the period, including M&A activities, grew 9.0% to €557.2 million. This was backed by an Airbus and Oman Air hold ‘The Future by Airbus’ presentation:Under the Patronage of H.E. Mohsin increase in revenue of 9.4%, to €2,585.0 million, and an EBITDA growth of 9.3%, to €1,037.5 million. Khamis Al Balushi, Advisor to Ministry of Commerce & Industry Board Member of Oman Air, Oman Air Financial highlights and Airbus held ‘The Future by Airbus’ presentation at the Oman Tourism College. The interactive pre- Consolidated net financial debt stood at €1,530.8 million, as of September 30, 2014 (based on cov- sentation aimed to challenge students to think more innovatively for the future of aviation. enants’ definition in senior credit agreement), representing 1.18x the ratio of covenant net debt to the last twelve months’ covenant EBITDA. Airbus also partnered with the The Ministry of Civil Aviation and hosted a three-day robotics workshop On July 29, Amadeus paid a complementary dividend of €111.2 million (gross). Together with the interim for 75 students from various public and private schools in Aswan, Egypt. The workshop, designed by dividend paid at the beginning of the year 2014, the €279.7 million total amount distributed in respect of The Little Engineer, has been developed to introduce the students to the world of robotics, encouraging the 2013 profit represented a 50% pay-out ratio and a 25% increase over the previous year. them to use science, technology, engineering and mathematics in an exciting approach. Distribution - Revenue increased 4.2%, to €1,861.5 million Airbus signed an agreement for aircraft spare parts financing with Abu Dhabi National Leasing Company - Air travel agency bookings rose 4.5%, to 356.2 million (ADNL), the wholly owned lease finance arm of the National Bank of Abu Dhabi (NBAD). Under the facil- - Market share expanded by 0.4 percentage points, reaching 40.4% ity, ADNL will finance spare parts for Airbus’ fast growing Flight Hour Services (FHS). Air travel agency industry bookings grew 4.0% in the third quarter of 2014, an acceleration vs. the 2.6% growth reported in the first six months of the year. All regions’ performance accelerated versus the first Additionally, Airbus announced distinguished jury members of its prestigious GEDC Airbus Diversity half of the year except for Central, Eastern and Southern Europe and the Middle East and Africa, which Award which took place on 3 December at the World Engineering Education Forum (WEEF) in Dubai. This slowed due to geopolitical situations in some key countries in the regions, and Latin America, where prestigious award is given to individuals who have been proactive in bringing more diversity into engi- the industry continued declining, albeit at a lower rate. Asia Pacific registered significant growth, partly neering schools and universities. It rewards initiatives around the world which encourage young people helped by the migration of travel agencies to Amadeus. Year-to-date the industry growth showed a 3.1% of all profiles and backgrounds to study and succeed in engineering. increase. IT Solutions - Revenue grew 21.2%, to €723.5 million. Excluding acquisitions, revenue increased 14.9% to €664.6 million. The first A350-900 for Qatar Airways successfully completed its maiden flight: Taking off from Airbus - Passengers Boarded progressed by 14.1% to total 519.7 million. home base in Toulouse, the A350-900 adorned the airline’s distinctive livery and flew over the Atlantic. - Growth was driven by the implementation of airlines during the year in addition to the full-year impact Following the successful flight, the carrier’s A350 XWB will be entering the next phase of production – of those implemented during 2013 (such as Asiana, Thai Airways, and Sri Lankan Airlines), on top of a cabin completion as well as further ground and flight tests – the final stages in preparing the aircraft for 4.2% organic growth. delivery. Thomas Cook group airlines become first leisure carriers to adopt Amadeus’ complete suite of Altéa solutions:Amadeus and Thomas Cook group airlines announced an agreement which will see the lat- Additionally, the first A350 XWB for Qatar Airways is progressing towards delivery before year end. The ter become the first leisure carriers to adopt the Amadeus Altéa solutions. Four of Thomas Cook group aircraft equipped with Rolls Royce Trent XWB engines rolled out of the Airbus factory in Toulouse fully airlines based in Germany, the UK, Scandinavia and Belgium adopt Amadeus’ Altéa suite as a single plat- painted, prominently bearing Qatar Airways’ livery. form to manage reservations, inventory and departure control. Amadeus and Worldpay partnership further simplifies travel payments:Amadeus and Worldpay, a Following the recent EASA Type Certification, the Qatar Airways A350-900 is now entering into its final global leader in payment processing, risk management and alternative payments, announce at the 8th stage of production during which Airbus and the airline teams are actively working together in order to annual Airline & Travel Payments Summit (ATPS) event, a global agreement to integrate Worldpay’s ex- ensure a seamless hand-over process. The remaining steps up to delivery comprise notably the cabin tensive payment services into the Amadeus Payment Platform (APP). completion as well as ground and flight tests. Amadeus’ travel customers will be able to offer more payment choice to their travellers, therefore enhancing the consumer experience, as they can now accept more payments in more countries and in Airbus - AACO Partner since 1997 more currencies through Worldpay’s leading range of payment solutions. As authorisation is integrated into the ticketing and selling flow, the Amadeus Payment Platform ensures a fast and easy payment process to all its users. Furthermore, enhanced transaction information facilitates the payment reconciliation. Amadeus - AACO Partner since 2000

Daily news on www.aaco.org Issue 93 - Dec 2014 65 Our Partners News

ADNOC Distribution hosts IATA Fuel Quality Pool Workshop and supports three-day IATA Fuel Forum: ADNOC Distribution has successfully hosted this year’s edition of the IATA Fuel Quality Pool (IFQP) Workshop, drawing the participation of 32 aviation inspectors from mul- Creating Value * Sector Expertise * Rigor & Discipline tiple international airlines as well as internal aviation operations staff. The workshop, held at the company’s training facility at the Abu Dhabi International Airport, Founded in 2002, Apollo Aviation Group (“Apollo Aviation”) is a multi-strategy alternative investment validated ADNOC Distribution’s success in hosting the workshop for three consecutive years. manager specializing in commercial aviation including buying, selling and leasing aircraft and engines. ADNOC Distribution is the only authorized IATA training center in the region and one of the four accred- With more than USD 1.30 billion of assets under management as of June 30, 2013, we are one of the ited centers worldwide. world’s leading mid-life and mature commercial aircraft and engine operating lessors and investment The workshop provided significant training opportunities on effective ways to evaluate fuel quality for managers. In the first quarter of 2013, Apollo Aviation formed, AAG Capital Markets LLC, to manage maintaining the performance and safety of fuel depotsat airports. Senior representations from ADNOC investments in aviation securities. Distribution also provided an overview of the operational procedures at the workshop. Led by its founders, William Hoffman and Robert Korn, Apollo Aviation is currently investing a near USD Furthermore, ADNOC Distribution marked an emphatic participation at the three-day IATA Fuel Forum 595 million real asset fund, the Sciens Aviation Special Opportunities Investment Fund II (“SASOF II”), that opened on November 18at theJW Marriott Marquis Hotel in Dubai. The industry event drew the par- and harvesting a USD 213 million real asset fund, Sciens Aviation Special Opportunities Investment Fund ticipation of senior management from the aviation sales and operations divisions of ADNOC Distribution. (“SASOF”) as well as several private accounts. The bi-annual IATA Aviation Forum is a premier industry platform that facilitates opportunities for the We have built a strong team with deep industry knowledge and extensive relationships throughout the world’s aviation fuel community to develop synergies and share best practices through open debates and world’s aviation industry. We seek innovative and creative solutions to create value. round table discussions. Airline representatives, fuel suppliers and IATA’sstrategic partners discuss priority areas for the industry and agree on action plans to enhance efficiency and productivity. Regional Main Contact ADNOC Distribution was selected as partner and member of IATA and associate member of Joint Inspec- Name: Mr. Pascal Picano, Head of Global Marketing tion Group in 2011. ADNOC Distribution has catered to more than 200 regional and international custom- Telephone: +353 1 497 6621 ers in the civil and military sectors since 1982, with superior quality products and services that are distrib- Fax: +353 1 497 6317 uted through state-of-the-art fuelling facilities at seven international airports across the UAE. Email: [email protected] ADNOC - AACO Partner since 2002 Website: www.apollo.aero Apollo- AACO Partner since 2013 Air France Consulting, a wholly owned subsidiary of Air France is special- Airline ancillary revenue is projected to reach USD 49.9 billion* world- ized in air transport consulting, training, management and reengineering wide in 2014: The unbundling of ancillary services is reaching new heights services, located at Roissy CDG airport. across all regions although the services sold varies amongst airlines with Air France Consulting calls on about 200 highly specialized international experts coming mostly from some focusing on frequent flyer sales as opposed to a la carte services. Baggage fees do significantly Air France and the SkyTeam Alliance who have built a field proven experience and whose competencies contribute to this revenue, although they often leave customers unhappy due to miscalculated amounts. are recognized by the industry. Acting independently with flexibility, Air France Consulting proposes a How can you protect this revenue stream while still maintaining quality customer service? comprehensive approach on key domains of the air transport such as operations, finance and commer- ATPCO’s Baggage Calculator calculates all of your baggage allowances and charges quickly and easily cial, maintenance, etc... whether to make you a diagnosis or audit, to set up new or improved processes even on complicated interline and alliance journeys, in accordance with IATA Resolution 302. Baggage driven by proven change management techniques or define a coaching and training program. Calculator ensures your staff is always communicating the appropriate baggage fees to your customers. ●● Performance and conformity of flight and ground operations:EU-Ops, IR-Ops and FCL, CRM, SMS, Two connectivity methods- a dynamic XML-based web-service that can seamlessly connect with your ETOPS, IOSA & ISAGO Assistance, TRTO, Airline operations organization…) pricing, reservations, and departure control systems as well as a standalone web-based application. Both ●● Drivers to reduce costs and increase revenues (Business Plan, Cost control, Network and Fleet, Rev- give you a complete list of what bags are allowed for a particular journey as well as which items cost enue Management Pricing, Customer Relationship Management, E-business solutions, Fuel conser- extra and how much. vation Program, ETS, Procurement process…) As your ancillary services grow, protect your revenue and know that you have a trusted technology part- ●● Fleet Asset Management: aircraft specifications, acquisition, lease, sales ner committed to helping you achieve your revenue goals. Would you like to know more about ATPCO’s ●● Maintenance Repair Overhaul & Supply Chain: EASA 145/ 147 / 21 / 66 / 147, MCC, line mainte- Baggage Calculator? We are available to provide counsel and answer questions. Please feel free to con- nance and operational regulatory support, maintenance IT support, supply chain optimization tact us. ●● Emergency and Crisis Response plan with a strong emphasis on customer oriented solutions Europe, Middle East and Africa ● Air France Consulting shares the ambitions of its customers through customized solutions, thanks to Mr. Frank Socha, Regional Director a flexible structure ensuring responsiveness and close proximity. Email: fsocha@atpco.net For more information, please contact us at, Telephone: +33 1 7425 4162, email:[email protected] +44-20-8572-1322 *Ideaworks Company.com Air France Consulting - AACO Partner since 2008 ATPCO - AACO Partner since 2014

Daily news on www.aaco.org Issue 93 - Dec 2014 67 Our Partners News

Bangkok Airways receives first of nine ATR 72-600s on order: Bangkok Airways took delivery of its first ATR 72-600 at a special ceremony in Toulouse, France. Lion Group becomes ATR’s largest customer: ATR and Indonesia’s Lion Group have signed a USD 1 Billion purchase agreement for 40 additional ATR 72-600s, BOC Aviation announces official opening of new subsidiary based in Tianjin:BOC Aviation announced hiking the firm order total for the newest generation ATR turboprops to 100 aircraft. This signature marks the official opening of its latest subsidiary, BOC Aviation Leasing (Tianjin) Ltd, located within the Dongji- a milestone in ATR’s history, as Lion Group becomes ATR’s largest customer ever. ang Free Trade Port Zone in Tianjin, China. ATR, certified as Authorized Economic Operator for customs activity: The French Ministry of Finance To mark the opening of this new subsidiary, Mr. Chen Siqing, President and Vice Chairman of Bank of has granted ATR, its Authorized Economic Operator (AEO) status. Having obtained this label, ATR will China, and Mr. Cui Jindu, Member of Standing Committee of the Communist Party of China Tianjin Com- benefit from a streamlined customs process, meaning greater responsiveness for delivering aircraft, ship- mittee and Vice Mayor of Tianjin, signed a Memorandum of Cooperation. ping spare parts and equipment to operators, as well as for receiving equipment for the aircraft’s final assembly line. BOC Aviation names Mr. David Walton new Chief Operating Officer: BOC Aviation announced the ap- ATR obtains EASA certification for the new developments in the ATR -600 avionics suite: ATR is pleased pointment of Mr. David Walton as the new Chief Operating Officer to be based in the Singapore head- to announce that it has obtained certification for the very latest innovations developed for the avion- quarters. Mr. Walton has 28 years of aviation finance and leasing experience. He holds a Bachelor of Arts ics of the ATR 42-600s and ATR 72-600s from the European Aviation Safety Agency. The new certifica- (Honours) from Stanford University, and a law degree from the University of California, Berkeley. tion concerns the LPV (Localizer Performance with Vertical guidance), RNP-AR 0.3 (Required Navigation Performance with Authorization Required) and V-NAV (Vertical Navigation) approach functionalities BOC Aviation - AACO Partner since 2003 coupled to the autopilot. These new improvements will allow the latest generation ATRs to follow more accurate and even more secure approach trajectories thanks to satellite navigation, without requiring ground-based navigation facilities. These new features, which significantly reduce the pilot’s workload, are integrated into a new version of the ATR -600 avionics, the “Standard 2” version. ATR - AACO Partner since 1998

Boeing statement on Kuwait Airways’ intent to purchase 10 777-300ERs: Boeing is pleased that Kuwait Airways has announced its intent to purchase 10 777-300ER (Extended Range) airplanes worth $3.3 billion at Bloomberg, the global business and financial information and news leader, gives decision makers a criti- current list prices. cal edge by connecting them to a dynamic network of information, people and ideas. “We appreciate the start of a new partnership with Kuwait Airways,” said Marty Bentrott, vice president of Sales for Middle East, Russia and Central Asia, Boeing Commercial Airplanes. “Boeing looks forward The company’s strength – delivering data, news and analytics through innovative technology, quickly to an enduring relationship with Kuwait Airways and we are excited to see that the 777-300ER airplane, and accurately – is at the core of the Bloomberg Professional service, which provides real time financial which is the preferred long-haul carrier for so many airlines around the world, will now play an impor- information to more than 315,000 subscribers globally. Bloomberg Industries (BI) provides subscrib- tant role in the airline’s fleet strategy and expansion. ers interactive, continuously updated industry research and data. BI’s team of more than 100 research Boeing, SMBC Aviation Capital announce order for 80 737 MAXs:Boeing and SMBC Aviation Capital an- professionals covers over 100 industries globally, offering in-depth data and analysis for each industry’s nounced an order for 80 737 MAX 8s, valued at more than USD 8.5 billion at list prices. This is the largest drivers, metrics, competitors, themes and earnings. The BI portal also aggregates information from more single order for 737 MAXs from a leasing company and will help SMBC Aviation Capital grow its portfolio than 200 third-party providers. of high-demand, fuel-efficient airplanes. With this agreement SMBC Aviation Capital becomes theth 50 737 MAX customer and grows the program’s order book to more than 2,400 airplanes. Regional Main Contact Boeing, Ryanair finalize order for 100 737 MAX 200s:Boeing and Ryanair have finalized an order for 100 Name: Mr. George T. Ferguson, IV, CFA 737 MAX 200s, valued at USD 11 billion at current list prices. The order, originally announced as a com- Position:Senior Analyst Aerospace/Defense & Airlines mitment in September, includes options for 100 additional 737 MAX 200 airplanes, and makes the Irish Telephone: +1- 609.279.3591 low-cost carrier the launch customer for the newest member of the 737 MAX family of airplanes. Email: [email protected] Boeing ecoDemonstrator 787 tests innovations for more efficient air travel:The Boeing [NYSE: BA] eco- Website: www.bloomberg.com Demonstrator 787 has begun flight testing more than 25 new technologies aimed at improving aviation’s Bloomberg - AACO Partner since 2013 environmental performance through every phase of flight. The Boeing ecoDemonstrator Program accel- erates the testing, refinement and use of new technologies and methods that can improve efficiency and reduce noise. Boeing- AACO Partner since 1998

Daily news on www.aaco.org Issue 93 - Dec 2014 69 Our Partners News

CHAMP Cargosystems provides the most comprehensive range of integrated IT solutions and distribution services for the air cargo transport chain. The portfolio spans core management systems, messaging services, and eCargo solutions. These include applications to meet customs and security requirements, quality optimization, as well as e-freight and mobility needs. The products and services are well-known under the Cargospot and Traxon brands. StandardAero selected to provide PW125B engine maintenance and field services support for VLM The company serves over 200 airlines and GSAs, and links these with some 3,000 forwarders and GHAs Airlines fleet of Fokker 50 Aircraft:StandardAero Airlines & Fleets has been selected to provide PW125B worldwide. CHAMP’s solutions help its customers and their clients adapt to critical and continuous engine maintenance and field services support for Antwerp, Belgium-based VLM Airlines fleet of 12 Fok- changes in air transport logistics to meet global trade demands. ker 50 model aircraft. Engine maintenance will predominately take place at StandardAero’s European Service Center (ESC) located in Tilburg, Netherlands for in-region engine shop support as well as at the CHAMP Cargosystems is headquartered in Luxembourg and operates offices in London, Zurich, Frankfurt, company’s Winnipeg facility with field services support onsite and at VLM’s base in Antwerp . The new, Atlanta and Manila. three-year agreement, was completed on October 16, 2014. “The on-going expertise of our ESC’s PW125B MRO services and capabilities to provide Fokker 50 Quick CHAMP Cargosystems – Connected thinking for the air cargo community. Engine Change (QEC) support solidified our new and expanded relationship,” said Rob Cords, President of StandardAero Airlines & Fleets. “VLM followed a very extensive and in-depth tender offer and we Regional Main Contact were pleased to be selected on the key criteria for their specific service requirements.” Name: Mrs. Manuela Carvalho, Head of Global Marketing “We selected StandardAero because they offer full PW125B engine maintenance, including QEC capabili- Telephone: +44 (0) 20 8587 8018 ties and AOG support, while StandardAero and VLM bring a similar engine maintenance service philoso- Email: [email protected] phy to the new agreement. In addition, the close proximity and central European location of the ESC will Website: www.champ.aero allow for faster and more efficient service delivery for VLM,” confirmed Jaap Horsten, Engineering Man- CHAMP - AACO Partner since 2010 ager for VLM. DAE - AACO Partner since 2014

CFM’s LEAP engine continues successful certification testing:CFM International’s LEAP engine is performing exceptionally well in ground and flight testing on the path to engine certification and flight tests on the Airbus A320neo and COMAC C919 in 2015. The engine took the skies for the first time on 6 October on a modified 747 flying testbed at GE Aviation Flight Test Operations in Victorville, California, and has to date completed more Mitsubishi UFJ Lease and Finance to acquire ELFC: Engine Lease Finance Corporation (ELFC) has been than 75 total hours of flight testing. acquired by Mitsubishi UFJ Lease and Finance Co.(MUL). CFM is currently executing the most extensive ground and flight test certification program in its history. ELFC’s President and CEO, Mr. Jon Sharp, states, “We are very excited by this move to MUL. MUL is one The total program, which encompasses all three LEAP engine variants, includes 28 ground and CFM flight of Japan’s largest leasing companies and is renowned for its innovative approach to asset finance and test engines, along with a total of 32 flight test engines for Airbus, Boeing, and COMAC. for aggressively expanding its global business activities. We are being encouraged to grow and to de- The engine has successfully completed more than 2,600 cycles on many of the most demanding tests, velop our business model, including transitioning into new areas, and being more flexible and creative including early icing; cross wind; bird ingestion; emissions; acoustics; and early endurance testing. in our existing well-proven sphere of business. We anticipate strong support for sustainable growth, for Loong Air selects CFM’s LEAP-1A to power new A320neo fleet:China’s Zhejiang Loong Airlines signed an development of new products, including greater integration of the value chain and facilitation of timely agreement with CFM International to purchase LEAP-1A engines to power nine Airbus A320neo aircraft. responses to customer needs, improving on what we have done well for the last 25 years. We have in CFM values the engine order at $260 million U.S. at list price, including spare engines. place the market position, the infrastructure and skills and I am keen to exploit them to take ELFC to a VietJetAir, CFM sign Rate per Flight Hour Agreement for first 21 Airbus A320ceo aircraft:Vietnam’s new level. This is a great way to celebrate ELFC’s twenty-fifth anniversary.” VietJetAir and CFM International have signed a 12-year Rate Per Flight Hour agreement to support the airline’s fleet 21 Airbus A320ceo aircraft powered by CFM56-5B engines. For more information, please contact Senior Vice President Mr. Julian Jordan at e-mail: julian.jordan@ Under the terms of the agreement, which is valued at USD 300 million U.S., CFM will guarantee mainte- elfc.com nance costs for a total of 45 CFM56-5B engines on a dollar per engine flight hour basis. ELFC - AACO Partner since 2003 Azul selects CFM LEAP-1A to power A320neos: Azul Brazilian Airlines announced it has selected CFM International’s advanced LEAP-1A engine to power 35 Airbus A320neo family aircraft. CFM values engine order at more than USD 900 million U.S. at list price. The airplane order was announced by Airbus earlier. CFM - AACO Partner since 1998 Daily news on www.aaco.org Issue 93 - Dec 2014 71 Our Partners News

Farelogix enhances FLX Merchandise: Farelogix has made a number of enhance- GlobalCollect and UnionPay International announce Worldwide ments to its flagship FLX Merchandise platform, each of which is designed to acquiring partnership: GlobalCollect, an Ingenico Group company, boost revenues for airlines. The new features in FLX Merchandise include pre- and UnionPay International, a subsidiary of the fast growing global mium seat inventory capabilities that deliver personalized seat prices during the shopping process while payment network China UnionPay, today unveiled a worldwide partnership that sees GlobalCollect eliminating costly airline passenger services system (PSS) search charges. become a worldwide acquirer for the UnionPay network. UnionPay is the number one international card There are new options for dynamic, flexible management of loyalty, awards, and redemption rules along brand in the world measured by the number of cards issued. with algorithms designed to bolster both consumer and corporate loyalty programs based on mileage, With the agreement, GlobalCollect can now connect its client base of leading, international eCommerce revenue, flown segment/trips, or a combination of these options. In addition, FLX Merchandise now has companies with the holders of 4.5 billion UnionPay cards, creating access to rapidly growing eCommerce enhanced analytics for offer optimization and role-based security for enterprise-wide use throughout the markets across Asia and beyond. airline. GlobalCollect and UnionPay International announce Worldwide acquiring partnership: GlobalCollect, FLX Merchandise Takes Home Top Honors an Ingenico Group company, and UnionPay International, a subsidiary of the fast growing global pay- FLX Merchandise took home the top honors in the Airline Information 2014 Mega Event Awards for Inno- ment network China UnionPay, today unveiled a worldwide partnership that sees GlobalCollect become vation of the Year in the Ancillary Revenue and Merchandising category. a worldwide acquirer for the UnionPay network. UnionPay is the number one international card brand in Farelogix was nominated by United Airlines based on the airline’s continued success and cross-channel the world measured by the number of cards issued. use of the Farelogix FLX Merchandise product. United set the stage for Farelogix to win by highlighting Avalara and GlobalCollect join to help businesses simplify cross-border ecommerce: Avalara, Inc. and how the company has helped them achieve their goal of increasing ancillary revenue by 11% per passen- GlobalCollect today announced a strategic partnership to provide industry-leading payment and indi- ger in Q3 2014, and generating revenues of USD 3 billion in 2014 from ancillary sales of a variety of prod- rect tax compliance services to ecommerce companies looking to trade cross-border. GlobalCollect, an ucts and services, including Economy Plus seats, priority boarding, bags, and various subscriptions. Ingenico Group company, processes international ecommerce payments for the world’s most recognised While winning this award is great for Farelogix, it also makes a significant statement to all airlines as to the ecommerce brands, while Avalara delivers compliance solutions related to sales tax, VAT and other trans- benefits a merchandising engine like FLX Merchandise can deliver to their organization. Once an airline actional taxes. The partnership will help ecommerce businesses ensure they can offer robust, reliable gets started with FLX Merchandise, growing their merchandising and ancillary program is quite simple. and localised payment solutions to customers around the world, without discarding local culture, while For a more in-depth review on our FLX Merchandise product, please e-mail Mr. Rui Sequeira. ensuring they remain fully compliant with transactional tax regulations. Farelogix - AACO Partner since 2013 GlobalCollect - AACO Partner since 2007 Gogo Receives Supplemental Type Certificates (STC) from the FAA to Install Ku- Satellite Connectivity Service on Boeing 757-200 and 767-400 Aircraft:Gogo has received STCs from the FAA to install its Ku-band satellite equipment on Boeing 757-200 and 767-400 aircraft operated by Delta Air Lines. Gogo now has five STCs GE Capital Aviation Services delivers new leased Airbus A321s to the Thomas Cook Group:GE Capital for its Ku-band satellite service on Delta’s international fleet; Gogo previously received FAA certification Aviation Services (GECAS), the aircraft leasing unit of GE, announced delivery of three new leased Airbus to install its Ku-band equipment on Boeing 747-400, 767-300 and Airbus A330 aircraft operated by Delta. A321 aircraft to the Thomas Cook Group. GECAS is scheduled to deliver a total of nine aircraft to Thomas Gogo receives Supplemental Type Certificate (STC) from the FAA to install Ku-Satellite connectivity Cook Group’s airlines in 2014 and 2015, as part of Thomas Cook’s previously announced program to service on Boeing 777-200ER aircraft:Gogo Inc. has received an STC from the FAA to install its Ku-band renew and modernize its narrowbody fleet. satellite equipment on Boeing 777-200ER aircraft operated by Delta Air Lines. This is the sixth and fi- Thomas Cook Group currently operates a fleet of about 90 aircraft to nearly 100 vacation destinations. nal STC Gogo needs to complete installation of Ku-band satellite based connectivity service on Delta’s GECAS delivers three new Boeing 777-300ERs to China Airlines: GECAS announced delivery of three international fleet; Gogo previously received FAA certification to install its Ku-band equipment on Boeing new Boeing 777-300ERs to China Airlines to expand the airline’s fleet. 757-200, 767-400, 747-400, 767-300 and Airbus A330 aircraft operated by Delta. “China Airlines is very pleased to receive its third new 777-300ER from GECAS,” said Huang-Hsiang Gogo expects to complete installations on Delta’s international fleet in 2016. Gogo’s Ku-band satellite Sun, Chairman of China Airlines. “As we continue the addition of our new 777 aircraft, we will further connectivity service is currently available on more than 50 international aircraft operated by two airlines. strengthen our competitiveness and enhance our overall product offering.” Gogo announces third quarter 2014 results: Gogo Inc. announced its financial results for the quarter A fourth aircraft is scheduled for delivery in January 2015. All four are part of GECAS’ existing order book ended September 30, 2014. with Boeing. Gogo reported record third quarter revenue of USD 104.0 million, up 22% year-over-year. Adjusted GECAS - AACO Partner since 2003 EBITDA for Q3 2014 was USD 1.2 million, down from USD 2.0 million in Q3 2013, reflecting continued revenue and profitability growth in the combined CA-NA and BA segments offset by increased investment in CA-ROW. Net loss attributable to common stock for Q3 2014 was USD 24.9 million, or USD 0.29 per share, compared to USD 18.7 million, or USD 0.22 per share, in Q3 2013. Gogo - AACO Partner since 2014

Daily news on www.aaco.org Issue 93 - Dec 2014 73 Our Partners News

HP expands support for securing electronic payments: HP announced expanded support for new cloud-based payment platforms as well as Europay, MasterCard, Visa (EMV) issuance with its HP Atalla Network Security Processor (NSP). These enhancements extend HP Atalla’s existing support for EMV tokenization and card encryption. At BAI Retail Delivery 2014, HP also unveiled results from a new study revealing the most popular electronic payment systems, adoption trends and most critical technologies in securing electronic payment methods. Despite privacy concerns, consumers are quickly embracing new payment systems, including mobile payments, person-to-person payments and e-wallets. According to the Security & Compliance Trends in Innovative Electronic Payments Report conducted by the Ponemon Institute (@PonemonPrivacy) and sponsored by #HPAtalla, payments with a mobile device or phone number are the most popular electronic payment method, with 75 percent of respondents saying their organizations have plans to support payments with a mobile device or phone number.1 With electronic payment adoption on the rise, the security and integrity of sensitive financial data must be addressed. According to the study, 66 percent of respondents reported the authentication of users to be a key challenge in implementing new payment methods.1 To address this, organizations can look to technologies such as cryptography, key management, hardware security models (HSMs) and interoper- ability. In addition, industry standards play an increasingly important role in securing emerging electronic payment capabilities. 1 “Security & Compliance Trends in Innovative Electronic Payments Report,” Ponemon Institute, October 2014. HP - AACO Partner since 2014

Hahn Air - AACO Partner since 2014 Hogan Lovells is a global legal practice that helps corporations, financial institutions, Inmarsat completes construction of the Global Xpress ground network:Inmar - and governmental entities across the spectrum of their critical business and legal is- sat announced on 7 November 2014 that it has completed construction of the sues globally and locally. We have over 2,500 lawyers operating out of more than 40 final four satellite access stations (SAS) for its Global Xpress (GX) fleet. This repre- offices in Africa, Asia, Europe, Latin America, the Middle East, and the United States. sents a significant milestone in the rollout of GX, the world’s first, global high- Hogan Lovells is one of a small number of leading global law firms with in-depth speed broadband Ka-band network, which is scheduled for global commercial service introduction early in knowledge in aviation-related matters worldwide. Our aviation team regularly- re the second half of 2015. GX Aviation will deliver 50Mbps broadband connectivity to both commercial and ceives first-tier rankings from Chambers USA., which notes in its 2014 edition “An excellent law firm, business aircraft. It is the only Ka-band network to provide consistent global coverage. staffed by outstanding attorneys, that achieves results; impressive by any measure.” We are also known Alcatel-Lucent joins Inmarsat as technology partner for the development of the first EU aviation net- for strong cross-border and asset finance work in global markets, earning praise from The Legal 500 for work: Inmarsat announced on 20 November 2014 that Alcatel-Lucent has become a technology partner “clarity of thought, a solutions-driven approach and exceptionally talented partners.“ for the development of a new, fully integrated telecommunications network to deliver high-speed broad- Clients benefit from our aviation lawyers’ experience in public service, which include positions as Chief band services to commercial and business aviation passengers across the European Union. The unique Counsel of the U.S. Federal Aviation Administration (FAA), Special Assistant to the Secretary of Transpor- network, which places Europe at the forefront of passenger aviation connectivity, is scheduled to enter tation, Special Counsel to the Administrator of the FAA, Special Assistant to a member of the National commercial service by the end of 2016. Transportation Safety Board and Executive Assistant to the Chair and Vice Chair of the Civil Aeronautics European Space Agency contracts Inmarsat to develop space-based aviation data link for European Board. In addition, our aviation lawyers team with lawyers from the firm’s network of more than 40- of airspace: Inmarsat has announced on 26 November 2014 that SwiftBroadband Safety will play an inte- fices worldwide to address a broad range of legal issues, including antitrust, corporate, finance, environ- gral part in the future European ATM infrastructure. The announcement follows the signing of a contract mental, tax, litigation, lobbying, and regulatory matters. between Inmarsat and the European Space Agency (ESA) for the Iris Precursor partnership at the House We represent all segments of the aviation industry, such as air carriers, airports, corporate aircraft own- of Commons in London. The Iris Precursor partnership will upgrade SwiftBroadband to meet the demand- ers and operators, municipalities, aerospace manufacturers, repair facilities, aviation trade associations, ing standards set for ground-based VHF data links. This will enable Single European Skies ATM Research foreign governments, business aviation operators, fractional ownership providers, unmanned aircraft (SESAR) flight management concepts, where flight plans can be continually updated during flight to main- systems providers and operators, and aircraft leasing and financing organizations. The insights we derive tain an optimal trajectory to destination. These trajectory management concepts allow air traffic control from our diverse practice enable us to achieve our clients’ goals more efficiently and effectively. to offer better routings, sequence aircraft far in advance and maximise airport and airspace capacity. This Hogan Lovells - AACO Partner since 2014 benefits air operators by reducing flight time and airborne holding. Inmarsat - AACO Partner since 2013 Daily news on www.aaco.org Issue 93 - Dec 2014 75 Our Partners News

Innovata, a global leader in travel and hospitality content management and New Jeppesen electronic flight folder service enhances distribution solutions is recognized as a major industry source for worldwide airline flight planning operations:Jeppesen recently intro- airline schedule and related data. As a partner of IATA in marketing the duced a new Electronic Flight Folder service to enhance flight planning operations for airlines. The new Schedule Reference Service (SRS) to the aviation and consulting industries, Electronic Flight Folder service increases situational awareness in flight for pilots and improves ground-to- Innovata maintains one of the world’s largest flight databases (passenger and cargo) representing more air communication and integration of digital flight plan information. than 99% of the air segment miles flown worldwide, containing over 900 airlines, 95% of which are up- The Electronic Flight Folder service eliminates preparation and handling of paper-based flight planning dated and refreshed every week. documents through wireless delivery of digital flight plan information to an airline’s electronic flight bag Innovata delivers comprehensive, accurate and reliable up to date information to meet a wide range of (EFB) system. Elimination of paper-based flight plan information reduces workload for dispatch staff and data service needs for aviation related industries and is the market leader in the provision of timetables simplifies the sharing of critical data between ground operations and the aircraft’s EFB. Pilot situational and route mapping services, via all distribution channels, to airlines and airports worldwide. awareness in flight also is improved, through at-a-glance access to critical data on screen, instead of sifting Take a look on the AACO website at the dynamic and interactive route network mapping service pro- through cumbersome paper charts and documents. duced by Innovata, showing direct routes, online and interline connections, and a comprehensive time- Jeppesen EFB solutions help Pegasus Airlines transition to digital flight operations:Jeppesen recently table display for all 27 member airlines, dynamically plotted and displayed for users searching and query- signed a new three-year service contract with Pegasus Airlines to provide the airline with Jeppesen Flit- ing: http://aaco.innosked.com/ eDeck Pro electronic flight bag (EFB) services with tailored digital charts. The agreement provides access to Headquartered in Atlanta, USA, with regional offices in UK and Singapore, Innovata serves over 200 cus- Jeppesen’s industry-leading digital navigation charts and NavData information through both FliteDeck Pro tomers, in 52 countries. on Windows-based tablets and the e-Link online platform to reduce use of paper-based flight materials. Regional Main Contact: Rossiya Airlines of Russia gains paperless authorization using Jeppesen FliteDeck Pro:Rossiya Airlines, Name: Mr. John McAleavy, Regional Account Manager Europe, Africa & Middle East a part of the Aeroflot Group, recently gained authorization from the civil aviation authority of Russia to Telephone: +44 (0)1582635018 operate in a paperless cockpit environment, using Jeppesen FliteDeck Pro as its electronic flight bag (EFB) Fax: +44 (0)1582635001 solution. Rossiya Airlines and Jeppesen, a part of Boeing Commercial Aviation Services, earlier teamed to Email: [email protected] integrate the airline’s fleet with iPad-based Class 2 EFB technology. The clearance from the Russian author- Website: www.innovata-llc.com ity allows the airline to eliminate paper-based flight information, which reduces fuel consumption and Innovata - AACO Partner since 2003 increases overall operational efficiency. Jeppesen - AACO Partner since 2008 Kennedys is a growing international law firm with particular expertise in litigation and dispute resolution. We have a network of over 1,200 people across the UK and Eu- rope, 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 depth and breadth November 2014-Djeddah. «Aviation Management Professional Diploma»: rd3 group from Saudia since of specific expertise from its team resources which consist of a range of professionals who have worked in 2011: From November 2nd to 17th, IAS has organized the second session of the Aviation Management multiple areas of the aerospace industry both as private practitioners and in-house counsel. Our driven team Professional Diploma (AMPD) program for the 3rd year in a row. 23 future managers from the national of experienced and highly regarded professionals specialise in providing legal solutions to a wide range of airline have attended this two-week training session at Saudia training center in Djeddah, on “Airline clients in the aviation industry. We are able to advise on all aspects of aviation, commercial, regulatory & Managerial Skills Development and Mindset”. liability issues. In respect of liability issues, we have lawyers who have significant experience in dealing with Ms. Monia Zaki, IAS Key Account Manager for Middle East, is in charge of this project. The design of this major aviation losses and who are recognized as leading figures in the aviation sector. We are involved in program includes a first step of training engineering in order to build the main scheme. In addition, four handling a wide spectrum of claims ranging from the legal aftermath of major air accidents through to car- experts from Airbus and AirBusiness Academy have been selected by IAS to deliver the classes in Djed- riage by air issues involving EU regulations, the Warsaw and Montreal convention regimes. Our team has -ex dah. The objective of this training session was to provide the participants with the managerial compe- perience of advising in relation to Insurance and Reinsurance policy interpretation and coverage issues; we tences, such as project management, change management, or associated soft skills. have pursued multiple subrogated claims and, where disputes arise, have conducted numerous arbitrations At the end of this training session, a third one will be implemented in end January 2015 in Djeddah. The and mediations. Our focus is to provide practical advice to resolve contentious issues. We also have a regu- contents will be focused on “managing an airline” through a specialized workshop, based on the knowl- latory team who specialise in advising airlines on the effect of international regulations and compliance in edge already acquired during the previous sessions. respect of these, including EU regulations and directives; the Chicago Convention together with IATA & ICAO IAS - AACO Partner since 2008 recommended standards and practices. Our aircraft finance team deliver high quality practical legal advice and our clients include airlines (from major airlines to start ups), private individuals and product manufacturers; we were recently named as one of the world’s top ten law firms in the aircraft finance sector by Air Finance Journal & a winner of specialist aviation team in the Legal 500 UK Awards 2013. Kennedys are here to provide answers, recommendations, strategy & tactics. We deliver these in plain English and it’s what we call Legal advice in black and white. Kennedys - AACO Partner since 2011

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Lufthansa Consulting is an international aviation and management Mercator provides business technology solutions and services to consulting company the global airline industry. Our value proposition to our customers Since 1988 Lufthansa Consulting, an independent subsidiary of the Lufthansa Aviation Group, has provid- is a compelling one: reduce costs, improve operational processes ed services and solutions to the air transportation industry worldwide. Our portfolio and our consulting and ultimately achieve the objectives of our valued customers. Our mission is to consistently serve our experts are dedicated to assist aviation specific client groups: airlines, airports and aviation authorities as airline customers to the highest possible standards, and so establish Mercator as the aviation IT solutions well as related industries such as ground handling companies, cargo terminal operators, aircraft manu- provider of choice – trusted and respected by airlines around the world. The result of this customer-cen- facturers and financial institutions. tric approach is a pedigree customer base spread across 140 airlines in five continents. Our experts identify improvement potentials quickly and offer customized consulting solutions includ- Mercator’s solutions cover four key areas of service excellence: reservation and bookings manage- ing know-how transfer and implementation, applying the diversified experience of the entire Lufthansa ment (PSS) systems; cargo operations management systems; passenger and cargo revenue accounting Group. Our clients benefit from customized business solutions designed by consultants with a global systems; and customer loyalty management systems. For example, our end-to-end cargo and logistics understanding of the industry and in-depth knowledge of factors which are critical for success. We know management system, SkyChain, allows airlines to transform the way they manage their cargo operations, the aviation business! increasing revenues, reliability and overall performance. Experienced consultants from 17 nationalities work together closely with the client, based on mutual Our clients span the globe and include award-winning carriers, hybrid, low-cost and regional airlines. trust, ensuring knowledge transfer and mentoring. Lufthansa Consulting has completed more than 2000 Aviation is our core business, and as such the needs of our aviation customers has always driven our projects worldwide during the past 26 years. technology. Our focused aim is to develop products which help airlines reduce costs, streamline processes and increase productivity – enabling our customers to deliver on their promises. Regional Main Contact Name: Mr Alexander Manakos, Partner Regional Main Contact Telephone: +49 (0)69 696 20853 Name: Mrs. Michele Drummond Fax: +49 (0)69 696 20830 Position: Head of Marketing Email: [email protected] Email: [email protected] Website: www.LHConsulting.com Website: www.mercator.com Lufthansa Consulting - AACO Partner since 2010 mercator - AACO Partner since 2003 New Webinar: Responding to Crisis: What the Ebola Outbreak is Revealing to the MTU Maintenance celebrates 35 years of engine MRO: MTU Maintenance will Airline Industry. View the recording at: www.medaire.com/ebolaupdate celebrate its 35th anniversary in the engine MRO business this fall. The company, The largest ever Ebola outbreak is underway in several countries in West Africa and while now one of the leading providers for engine maintenance worldwide, began the situation is rapidly evolving. There are a number of free resources available to education travelers as a small repair shop in Hannover, Germany in 1979. MTU’s excellent repair quali- and air crew to the facts about Ebola, and personal precaution measures. In addition, MedAire provides ties and innovative services offers led to a rapid increase of its customer base – and with that to the a variety of services to airlines for the protection against communicable diseases, including Ebola. company’s global expansion. Today the company boasts a global network of locations, with major facili- Equipment: the ICAO recommends Universal Precaution Kits. The MedAire Universal Precaution Kits ties in Europe, North America and China - one of the fastest growing aviation markets worldwide. “MTU meet and exceed the recommendations for personal protection equipment and supplies. Maintenance has come a long way and today holds a special position in the MRO market,” said Dr. Stefan Training: MedAire’s Crew First Aid Training course reviews blood-borne pathogens, communicable dis- Weingartner, President MTU Maintenance and member of the Executive Board at MTU Aero Engines. eases and proper donning of personal protection equipment. MTU began with the repair of the CF6-50 and the LM2500 gas turbine. Shortly thereafter, the CF6-80 and Information & Advice: Information about Ebola, alerts, and advice are provided via the MedAire Portal. the bestseller engine V2500 followed. Today, the company serves over 20 engine types. MTU stands out Pre-flight passenger screening/ fitness to fly: If you suspect a passenger or crewmember has an infec- for its excellence in engine maintenance and globally unique high-tech repairs, developed in-house and tious disease, contact MedAire for a pre-flight assessment. Our medical team is well versed in the signs marketed under the MTUPlus repair brand. In addition, a set of innovative and individually tailored ser- and symptoms of infectious disease and will provide a recommendation of the person’s fitness to travel vices, among others on-site and leasing, are offered across one of the broadest engine MRO portfolios and provide referrals as necessary. worldwide. New engine types and services are added regularly to better suit evolving customer needs. If communicable disease suspected in flight: MedAire MedLink physicians will assess the symptoms and, As an example, MTU is one of the few maintenance providers with a full repair license for the world’s if requested, assist the captain with contacting the appropriate regulatory authority at, or closest to, the largest engine – the GE90-110B/-115B. arrival airport. The future is set to pose many challenges to the civil engine MRO business, with OEMs seeking to in- MedAire is an International SOS company. MedAire and International SOS have a global network of crease their presence in the aftermarket. MTU Maintenance is well positioned to navigate this transition. medical, logistics and security personnel. We are experts in providing advice, education and assistance “Our success is based on a hybrid business model as we benefit both from our independent approach so that organizations can properly plan for, and mitigate, risks associated with infectious diseases and and our close alliance to the OEMs in engine programs where MTU is a risk and revenue share partner. pandemic situations. We strongly believe that this strategy will continue to be successful, especially for future engine models”, Contact MedAire for more information. MedAire - AACO Partner since 2008 concludes Dr. Weingartner. MTU - AACO Partner since 2013

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nahco aviance partners NEPC, others on export promotion:A joint commit- SriLankan Airlines flies its first fully-connected aircraft: SriLankan Airlines’ first tee made up of representatives of the Lagos State Government, the Nigerian fully-connected A330-300 (registration 4R-ALL) entered commercial service on 9 Export Promotion Council (NEPC), nahco aviance and the Nigerian Agricultural November 2014. It is equipped with both Internet OnAir and Mobile OnAir. This Quarantine Services is to be set up to work out ways to improve export in the is an historic moment for SriLankan Airlines, with the national carrier launching country. Other members of the committee are representatives of vegetable farmers and export mer- a new era of world travel by providing its passengers a more luxurious on-board experience. Putting full chants. Each party is to be represented by two members each. This was the resolution of a workshop inflight connectivity on the aircraft demonstrates the Airline’s growing commitment to redefining the- fly hosted by nahco aviance for stakeholders in the agro – allied export business. ing experience. At the workshop titled “Stakeholders’ workshop on addressing challenges in export of horticulture Passengers on board the delivery flight from Toulouse to Colombo, including SriLankan Airlines’ Chief products from Nigeria” which took place in Lagos recently, the Executive Director of NEPC, Mr. Olusegun Marketing Officer, G. T. Jeyaseelan, all made special mention of the aircraft’s inflight connectivity. Awolowo said that the body had to be part of the workshop in collaboration with other bodies such as Once they’ve tweeted from 35,000 feet and told their friends on Facebook that they’re chatting to them nahco aviance, Nigerian Agricultural Quarantine Services (NAQS) and Lagos State Ministry of Agriculture live from an aircraft, passengers can knuckle down to send emails or simply continue to browse the web. and Cooperative because of the visit made to nahco aviance and NAQS by the officials of the council. Now in service, the aircraft will be deployed on different routes as part of the performance evaluation nahco aviance’s Business Manager, Lagos Region, Mr. Yahaya Hassan who represented nahco at the programme that will last for a period of three months. Consequently, SriLankan Airlines began com- workshop said that the company has put different facilities in place such as freezers, cold rooms etc., to mercial operations of its newly acquired Airbus 330-300 with a direct non-stop service to London on 16 help facilitate the exportation of goods. He also stated that the nahco aviance’s Free Trade Zone which November 2014. will soon commence operations will be an impetus to exportation of goods in the country. At the conclusion of the evaluation programme, the airline will decide on a particular route for the new Mr. Kayode Ashafa who represented the Permanent Secretary, Lagos State Ministry of Agriculture and aircraft, based on passenger volumes, route yields, demand for Business Class, frequency and consis- Cooperative stated that the state government has been supporting and will continue to support the tency of the product, as well as the number of aircraft required to support the frequencies to a particular promotion of export. He said the state government was ready to partner with stakeholders to encourage destination. SriLankan is looking to deploy its new A330-300s primarily on Far-Eastern routes including exportation of agricultural products. He advised exporters to always follow standards in their businesses. Bangkok, Tokyo and Chinese cities of Canton and Beijing. The Zonal Controller of NAQS, Mrs. V.O Atunbi encouraged exporters to make sure that their commodi- OnAir - AACO Partner since 2009 ties meet international standards before exportation. nachco aviance - AACO Partner since 2014 Like bees to a honeypot: low cost carriers swarm to the Middle East: In the first of Optiontown is an innovator in the realm of travel options. With our pat- our new monthly Frequency and Capacity Spotlights OAG takes a look at the rapid ented MIT Technology airlines can generate up to 5-7 % more revenue growth of LCCs in the Middle East. When we think of Middle East aviation, three without cash investment or IT development. Our Post Sale Ancillary well known international airlines come to mind, along with their hub airports and their globe-spanning Revenue algorithms sell dynamic travel options to customers after ticket purchase. It generates incremen- networks. But in recent years there’s been a quiet revolution taking place at a more regional level as tal revenues for airlines and enhances customers travel experience - a win-win for all. Our robust Plug-n- regional air services provided by Low Cost Carriers (LCCs) have grown rapidly. play model allows to launch a trial in 4 weeks with NO Cash Investment, NO IT development and minimal According to OAG Schedules Analyser, LCCs will have flown 37 million air passenger seats to, from and resource requirement for the airline. As there is NO cost involved to the airline, the revenue flows straight within the Middle East in 2014, compared to just nine million five years ago. Providing 13% of all sched- to their bottom line. Our ground breaking ancillary revenue solutions have already generated more than uled airline seats, their contribution is still relatively small compared to the LCC market share in Europe, 1% of revenues of our partner airlines. For one of our airline partners, we generated USD 2 in incremen- the US and parts of Asia, but they’ve grown at a breath-taking rate, averaging 35% per annum over the tal “profit” per passenger boarded. Optiontown offers brand-new, customized travel options; addresses past five years. They have been attracted, no doubt, by the potential rewards of an affluent consumer constantly changing travel needs and rewards advantageous travel purchase behaviors. Our Upgrade base hungry to travel and booming economies dependent on migrant labour. Travel Option (UTo), Empty Seat option (ESo), Flexibility Reward option (FRo), Multiple Booking Option There are now over 40 LCCs operating in the Middle East. Unsurprisingly the largest are based in the Gulf (MBo) and Preferred Flight Option (PFo) are very popular products in the suite of travel products being area, such as UAE-based flydubai, Air Arabia and Saudi-based flynas. capitalized by airlines. Optiontown’s latest innovation is the revolutionary “Flight Pass Option” that helps However, the typical Gulf-based LCC may not be the same as a low cost operation elsewhere. The aver- to convert customers into Subscribers, generating Perpetual Revenue Streams and Perpetual Customer age flydubai sector length is just shy of 2,000km which is significantly longer than the average 1,300- Loyalty. The Flight Pass Option brings a paradigm shift in selling a dynamic booklet of flight coupons for 1,400km lengths operated by other LCCs such as AirAsia, easyJet, Ryanair and Southwest. multiple trips, yet still highly customizable to suit the needs of different customer segments (leisure, SME, Meanwhile, flynas is outspoken about the fact that its business model isn’t meant to be quite like other corporate etc.). We believe, this will bring a revolution in aviation sales by enabling airlines to gain market LCCs’, calling it Low Cost Plus, or LCC+, with its luggage allowance and free on-board meals. This hybrid share and competitive advantage. With these innovative ancillary travel products offered by Optiontown, model is taken one step further by flydubai which offers full business class seats on their services in ad- travel industry can improve their business performance by generating incremental revenues, enhancing dition to a wide range of ancillary services. For these LCCs, it isn’t simply a matter of slashing costs but customer satisfaction, increasing load factor and decreasing operational costs. Optiontown is an innova- maintaining quality standards perceived to be consistent with the expectations of their largely Middle tor in the realm of travel options. Our technology has been developed following extensive research at the East clientele. To read the full report visit www.oag.com/LCCs-Middle-East Center of Transportation Studies, MIT Boston. Optiontown - AACO Partner since 2011 OAG - AACO Partner since 2002 Daily news on www.aaco.org Issue 93 - Dec 2014 81 Our Partners News

Established in 2006, Quali-audit is an Audit Organization (AO) officially accred- ited by IATA to conduct IOSA audit (IATA Operational Safety Audit), ISAGO audits (IATA Safety Audit for Ground Operations) and Endorsed Training Organization (ETO) to train IOSA auditors. Quali-audit is an independent, wholly-owned subsidiary of Air France group, with principal offices at Paris Charles de Gaulle airport (France) and additional offices in Atlanta, Georgia (USA) and Buenos Aires (Argentina). We offer a complete range of services including safety and operational audits, training and operational assistance in the fields of air operations. We are committed to assist airlines in achieving a higher level of safety, security and quality. The Quali-audit team includes 56 highly experienced professionals with multi-cultural background and experience. Our teams of auditors / instructors have an average experience of 30 years in aviation. Many of our auditors were founding members of the IOSA Task Forces that created the IOSA standards and several continue to be actively engaged in the continued evolution of IOSA. Our services include: IOSA Audit, Gap analysis, Preparation, Follow-up; ISAGO Audit, Gap analysis, Prepa- ration, Follow-up; Operational Safety Audit and Evaluation; US-Department of Defense (DoD) Audit; Line Operations Safety Audit expanded (LOSAe); Other audits including against EASA, FAA, ICAO scope; IOSA Auditor Training (IAT); IOSA Familiarization Training; Quality Auditor Training; SAFA Training; Airline Operational Management Training; Safety Management System (SMS) (Training, Audit, Implementation); Human Factor and CRM Training; Dangerous Goods Training; and Security (SEMS) Training. We are pleased to offer our services to AACO members and we thank the airline members who already have chosen to work with Quali-audit. Presently we have already offered our services to the following AACO members: Saudia, Yemen Airways, Royal Air Maroc, Middle East Airlines, Air Algérie, Tunisair, Jor- dan Aviation, Oman Air, Afriqiyah Airways, Libyan Airlines and Nouvelair with excellent feedback. Quali-audit - AACO Partner since 2008 Air Canada renews radio support agreement with Rockwell Collins: Rockwell Collins announced that Air Canada has signed a three-year contract to renew the company’s ARINC Managed Services (AMS) radio support services agreement for the airline’s ground handling operation in Canada. Through its AMS offering, Rockwell Collins provides 24x7 on-site technical support for the UHF ground- to-ground communication system and radio equipment used to manage the airline’s ground handling operations. It also maintains a depot maintenance facility that provides centralized inventory, spares and parts management, significantly improving equipment repair and response time. Six China-based airlines select Rockwell Collins avionics, cabin systems and service for more than 70 aircraft: Rockwell Collins announced it has been awarded six new contracts from China-based airlines for varying combinations of avionics, in-flight entertainment (IFE) and service. The awards span 74 new aircraft, including Boeing 787 Dreamliners, Airbus A320s, Next-Generation Boeing 737s and Bombardier CRJ-900s. Deliveries have begun for one airline and the remainder will begin next year. The following airlines have selected Rockwell Collins systems, including MultiScan ThreatTrack™ weather radar, GLU-925 Multi-Mode Receiver(MMR), Head-up Guidance System (HGS™) and PAVES™ Broadcast in-flight entertainment: China Express, Donghai Airlines, Kunming Airlines, Loong Air, and Ruili Airlines. Indira Gandhi Airport renews six-year contract for Rockwell Collins’ ARINC passenger processing systems: Indira Gandhi International (IGI) Airport, India’s busiest airport in terms of passenger figures and the largest airport in South Asia, has signed an agreement to extend its use of Rockwell Collins’ ARINC passenger processing technology for six more years. Signifying the strength of its relationship with Rockwell Collins, IGI also recently crowned the company “Best IT Service Provider” for the second year in a row. Rockwell Collins - AACO Partner since 2002 THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE

Daily news on www.aaco.org Issue 93 - Dec 2014 83 Our Partners News

British Airways (BA) has also taken steps to leverage technology to improve the customer experience on The future of air travel: Managing the full travel chain the ground and in the air. Glenn Morgan, head of service transformation at International Airlines Group (IAG, the parent company of BA), explains how more than 2,000 iPads have been issued to the airline’s An Economist Intelligence Unit article, sponsored by Sabre Airline Solutions® cabin crews. Onboard these provide faster access to information and enable more personalised interac- To receive a link to view the full report, go to www.sabreairlinesolutions.com/AACOSRCX tions. On the ground, the iPads can cut both frustration and wasted time by allowing airline and airport personnel to communicate and plan more efficiently. Take this example: when luggage goes missing, RFID tagging lets airlines know sooner and they can move Airline executives and their customers agree: the to remedy the problem faster. frustrating trip from the airport door to the aircraft In China, advanced technology doesn’t merely affect the structure and functioning of the airport and cabin is the aspect of air travel that they would airplanes, passengers themselves are being included in the web of continuous data flow. Terminal Three most like to see improved. The multiple lines and of China’s Shenzhen Bao’an International Airport (opened in November 2013; projected final phase by chokepoints to be navigated, and the tangle of 2035), offers a VIP service that uses information technology to smooth a different aspect of the departure paper documents to keep track of, make departure sequence. both time- and labor-intensive for travellers. For In conjunction with Shenzhen Airlines, the terminal provides what amounts to personalised, real-time international arrivals, immigration and customs lines add other layers of frustration. And, of course, -bag departure and passenger-location information. On entering the airline’s VIP lounge, passengers are issued gage anxiety is universal. a “return to launch site” (RTLS) card. GPS functionality allows the airline to keep track of passenger loca- Not surprisingly then, several new airport terminals have been designed with path-clearing as a primary tion; a countdown sequence of visual and auditory signals that can be adjusted for changes in departure aim. Working together, airports and airlines are replacing or reshaping facilities, procedures and equip- times prompts travellers to return to the boarding area—fewer “lost passengers” make for smoother ment, as well as refining, linking and scaling up solutions that allow for a smoother airport experience. departures. New tools of the trade: Technologies to ease the journey before it even begins get less expensive and Respect for past progress: Assessing the efficiency and cost-benefit ratios of new systems can be difficult, more ubiquitous every year. Biometric IDs—digitised fingerprints or retinal scans incorporated into and legacy systems often end up running side-by-side with the technologies meant to replace them. At passports or other documents—are speeding up security lines (something favoured by both executives Heathrow, while T2 points towards the extinction of paper boarding passes and luggage tags—with per- and consumers surveyed: E63%/C54%). Near-field communication (NFC)—built into a growing percent- sonal interaction rare—paper and people are still very much in evidence. Dubai’s Al Maktoum Internation- age of mobile phones and enabling wave-of-the-phone payment—is beginning to replace the boarding al Airport, which offers several advantages for adopting modern technologies—a clean slate, rich funding pass (also favoured by executives and consumers: E62%/C58%). And radio frequency identification tags and minimal administrative barriers to design and construction, also looks to retain some of the old. (RFID) for routing and tracking luggage (E65%/C54%) are increasingly the standard for baggage-handling. Privacy and security issues: Achieving efficiencies through the use of technologies requires passengers to Customers can even purchase their own tags and follow their bags via mobile phone apps. share information about themselves and their travel plans. To take the most extreme example, “chipped” A glimpse of the future today: In May 2014, United Airlines unveiled a new concourse at Boston’s Logan VIP passengers traversing Shenzhen Bao’an’s T3 are clearly willing to exchange a certain amount of per- Airport. Self-service options now make it possible to go through the entire airport process without inter- sonal, physical privacy for efficiency, but how much privacy will these and other travellers be willing to acting with a human being (the top priority for improving the customer experience on the day of travel give up? The prospect of biometric IDs and “pre-clearance” investigations elates some travellers, but in our survey, favoured by executives and consumers: E62%/C58%). concerns others. Debates about privacy implications have so far been muted—that may change as these Using the above-referenced technologies—ID aside—passengers who so choose can entirely replace systems become more common or even obligatory. paper with digital transactions. Still, United has kept the number of customer service agents unchanged It is important to remember that all kinds of procedures and technologies we have come to accept—in- at 400, according to Forbes. Maintaining this level of staffing was a matter of necessity and continuity. deed, to view as basic necessities—were seen, on introduction, as not merely unacceptable, but danger- Mobile phones are common, but not universal; most lack wave-of-the-phone-payment capability. More- ous, a cause for moral panic. Metal detectors, full-body scanners, pat-downs and shoe removal scarcely over, not all passengers are used to a higher degree of automation. Culture and preference also figure in merit a second thought these days. Outside the airport, the arrival of online credit-card transactions and when valuing speed, for example, over personal customer service. electronic medical records caused similar alarm but are now routine. Terminal 2 (T2) at London’s hitherto notoriously convoluted Heathrow Airport opened a month later. Finding a balance: Keeping up with the requirements of that rising cohort of travellers, the Millennials, Minimising walking distance and obstacles between ground transportation and airline gates was one of who are both mobile and connected, while not losing travellers with more traditional expectations will the highest design priorities. Today, the path to the plane is less congested: automated kiosks cut service be no easy task for airlines and airports. But Heathrow, Logan, Dubai’s Al Maktoum and Shenzhen Bao’an desks by more than half while reducing serpentine lines that take up space—and passenger time. are not fantasy airports of the future, showcasing new technologies in glass display cases—they are highly As at Logan and for the same reasons, T2 also integrates biometric IDs, wave-of-the-phone technol- functional and efficient travelling hubs and destinations. In partnership with airlines, facilities designers ogy and RFID tags into a continuous chain—a hybrid of new and old. Passengers can check in, print out and operators are and will be bringing to life and working the kinks out of systems that, over the next boarding passes and bag tags, drop the bags off and board using self-scan gates. On arrival, they find au- decade, will become the gold standard worldwide. tomated immigration kiosks. The terminal will ultimately house 22 Star Alliance carriers, United among To receive a link to view the full report, go to www.sabreairlinesolutions.com/AACOSRCX them, that will reduce duplication of facilities by using a common bag drop. Sabre - AACO Partner since 2002 Daily news on www.aaco.org Issue 93 - Dec 2014 85 Our Partners News

WHY WE DO WHAT WE DO Gulf Air renews network services deal with SITA: Gulf Air has signed a two- We believe expert support makes a difference. That is why our teams blend year renewal deal with SITA for network, messaging and voice services. SITA former industry executives, top-tier consultants and seasoned investment is providing the airline with a comprehensive global network infrastructure, bankers. Type B Messaging services, a mail platform for operational messages and We believe designing projects with change in mind allows our clients to navigate towards improved re- global voice and data services. sults faster, and make them more sustainable. That is why we prefer to work onsite with our clients and New era for air transport communications as SITA transforms global network service: SITA is transform- focus on sharing our expertise to build internal competence and embed new ways of doing things. ing its global network and communication services to offer airlines and airports more value and greater We believe strong business intelligence capabilities enable feedback loops that allow our clients to con- capacity to meet their changing business needs. tinually learn and innovate. That is why we always respect and use the data at hand. We have developed The development of the hybrid airline business model, the entry into service of e-enabled aircraft, the a suite of software tools considered the best globally for in-depth analysis and supporting rapid decision adoption of cloud-based solutions and the growing need for flexible on-demand services at airports are making. some of the major air transport industry trends calling for a new generation of global network services. We believe in partnering and sharing risk with our clients, combining their unique perspective with our By working with its strategic partner, Orange Business Services (OBS), and with five regional service pro- broad experience. That is why since 1995 we completed over 1,000 client engagements globally includ- viders, as well as expanding its communications capabilities at airports, SITA has strengthened the reach; ing advising on fleet orders valued at >$250B (list price) and serving as restructuring advisor for 10 of the focus on operational excellence and relevance of its network services for the air transport industry. largest 15 airline turnarounds. SITA has signed a five-year agreement with OBS, to provide network services in countries and territories And we believe there is still huge untapped potential in this industry. That is why we love to work with worldwide. SITA will provide network services in additional locations directly and will also integrate and clients to help them confront big challenges and experience the feeling that comes with big wins. manage key regional providers in order to strengthen its global coverage. In addition, SITA is launching THAT IS WHY WE DO WHAT WE DO. THAT IS WHY OUR CLIENTS CHOOSE US. seasonal network services at airports, enabling airlines to test new routes, or operate seasonal destina- Regional Main Contact tions more cost effectively. This flexible global connectivity will provide airlines with reduced connection Name: Mr. Jonathan Sullivan, Managing Director, EMEA lead times, connectivity on demand and improved application performance through the network. It will Telephone: +44 7766196087 also allow SITA to better cater to the various business models of LCCs, hybrids and full service carriers. Fax: +44 2081660301 SITA’s new network offering will be rolled out in phases. The SITA Network Services Delivery and Opera- Email: [email protected] Seabury - AACO Partner since 2008 tions Center will be operational by the end of 2014. SITA - AACO Partner since 2008 Flight Centre extends eNett partnership with Virtual Account Numbers: Flight Centre is partnering with eNett, a global provider of payment solutions uniquely tailored to the travel industry, to use Virtual Account Numbers (VANs). The relationship between the two companies began in 2011 when Flight Centre selected eNett to provide an automated credit and debit card payment processing solution. Both companies share similar Shell Aviation receives IATA’s Strategic Partnership Award:Shell Aviation has received a 20-year Strate- paths, starting from humble beginnings as small businesses in the Australian travel industry, and rising gic Partner award from the International Air Transport Association (IATA) for its significant contribution to into global prominence in their specialist fields. The Australian Securities Exchange listed Flight Centre the industry and strong cooperation with the member airlines of the Association since 1994. will now utilise eNett VANs for some of its international supplier payments. eNett International – a joint Anne Anderson, Vice President of Shell Aviation and Adam Harrison, General Manager, Shell Aviation venture between Travelport and Optal – offers an innovative payment solution called Virtual Account Global Accounts accepted the award at the IATA Fuel Forum in Dubai from Louise Denis, Director of IATA Numbers (VANs). Strategic Partnerships and Hemant Mistry, Director Airports and Fuel and Michel Baljet, Head Fuel Ser- Travelport and TravelClick Expand Partnership: Travelport has announced it has expanded its partner- vices Operations. ship with TravelClick, a global provider of innovative cloud-based solutions that enable hotels to grow As a member of IATA Technical Fuel Community, Shell Aviation is able to gain an insight into customers’ revenue. challenges and recommend tailored solutions. The group focuses on the supply and use of aviation fuel The expanded relationship will allow TravelClick to sell advertising products to hotels for display to the and promotes standardization. It aims to develop a better understanding of issues related to jet fuel 67,000 Travelport connected travel agency customers around the world. It includes access to key Trav- and product handling. Through the years, Shell Aviation has carried out important work regarding qual- elport products such as Travelport Featured Property which offers priority placement of a hotel during ity assurance to embolden the aviation fuelling standards across the industry as part of this group. IATA a travel agent’s search, providing hotels with a clear, visible advantage at the point-of-sale. TravelClick’s facilitates direct and concise dialogue among Shell and its customers, resulting in true collaborative focus product offerings continue to include Travelport Headlines, which displays hotel advertising directly on on improving the industry. travel agency screens. Shell Aviation- AACO Partner since 2002 eNett and Conferma partner to provide SMEs with virtual cards:eNett International and Conferma have partnered to provide small and medium sized travel management companies access to low cost, integrated payments with eNett Virtual Account Numbers (VANs). Travelport - AACO Partner since 2000

Daily news on www.aaco.org Issue 93 - Dec 2014 87 Our Partners News

Unisys announces progress in leadership transition; appoints Interim Chair- man and Interim CEO: Unisys Corporation announced that the Board has appointed Weaver as interim Chairman and named Chief Financial Officer Janet Haugen as interim CEO, effective 2 December. Unisys experts predict new mobile applications and the internet of things will create even greater cy- bersecurity challenges in 2015: Security experts at Unisys Corporation predicted even greater cybersecu- rity challenges in the year ahead as continued growth in the use of mobile devices and applications in the workplace, along with increased business-related usage of the Internet of Things, outpace organizations’ ability to protect their critical data. Unisys experts said 2015 will see the public demanding new ways to protect their online identities in the wake of several highly publicized data breaches involving the personal data of millions of U.S. consumers. The introduction of mobile payment solutions like Apple Pay has begun to address this need for stronger online security protection. As mobile devices are used for Internet of Things applications such as remote control of household appli- ances, health monitoring devices and hotel room keys, the need to verify the identities of mobile device users will become even more urgent. Unisys experts also predicted that despite the widespread publicity of recent large data breaches at major retailers, U.S. consumers, retailers and financial institutions will not readily embrace the use of chip-em- bedded credit cards requiring users to enter personal identification numbers when making a transaction. Unisys security experts predicted increased use in 2015 of security analytics and data forensics tools within businesses to combat cybercriminals. Such tools can detect and respond to unusual behavior on the network, allowing organizations to respond to and recover from cyberattacks faster. Unisys - AACO Partner since 2014 Willis is one of the leading global providers of insurance and reinsurance brokerage, risk management, and human capital solutions. Willis operates on every continent with more than 17,000 colleagues working from a global network of 400 offices. Positioning ourselves in the heart of the specialist insurance capital, the Willis Building is situated directly opposite the Lloyd’s Building in the centre of the financial ‘Square Mile’. The combination of global reach and insurance market focus delivers to AACO members three unique advantages: - Customised solutions, tailored specifically to your business needs and regional circumstances - A world-class network of resources to strategically transact and sell your risks in the global marketplace - Your own dedicated team skilled in servicing your programme, in your language, respecting your working culture and time zone In this way Willis meets AACO members’ risk management and insurance transfer needs wherever in the world you fly. Willis is honoured to represent almost half of AACO’s member airlines and was for many years lead broker to the former G.C.C. Airline Insurance Programme . We have long-standing relationships with Arab carriers some of which exceed 25 years and it has been an exciting journey to be playing our part in exceptional growth of airlines and aviation in your region. Today there are new challenges of market price volatility following well-publicised accidents that have affected both All Risk and War Risk insurers alike. Willis is speaking daily with key insurers to encourage moderation in response and recognition of a market with over-supply of capacity. Further information can be found at www.willis.com Willis - AACO Partner since 2014 THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE Daily news on www.aaco.org Issue 93 - Dec 2014 89 AACO & RTC CALENDARS AACO & RTC Calendars AACO CALENDAR AACO RTC CALENDAR December 2014 December 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 14 15 16 17 18 19 20

Ground Handling Steering 14 15 16 17 18 19 20 Board Meeting / Dubai International Aviation Law & Air Transport Agreements Course / Amman

21 22 23 24 25 26 27 21 22 23 24 25 26 27

28 29 30 31 28 29 30 31

February 2015 January 2014 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 1 2 3

73rd Executive Committee 4 5 6 7 8 9 10

Meeting / Abu Dhabi 11 12 13 14 15 16 17

8 9 10 11 12 13 14 Effective Del- egation Skills / Cairo 18 19 20 21 22 23 24 15 16 17 18 19 20 21 Aircraft Maintenance Services Agreements / Amman

25 26 27 28 29 30 31 22 23 24 25 26 27 28 Aviation Security for Airlines (Management) / Tunisia

For additional information, kindly contact Mr. Mohamed Osman / Senior Manager RTC at [email protected]

Daily news on www.aaco.org Issue 93 - Dec 2014 93 OUR MEMBER AIRLINES & INDUSTRY PARTNERS Our Member Airlines, & Industry Partners AACO MEMBER AIRLINES AACO INDUSTRY PARTNERS AACO member airlines were established in the following sequence: 1. Egypt Air (1932) 2. Iraqi Airways (1945) 3. Middle East Airlines (1945) 4. Saudia (1945) 5. Syrian Arab Airlines (1946) 6. Sudan Airways (1946) 7. Tunis Air (1948) 8. Gulf Air (1950) 9. Air Algerie (1953) 10. Kuwait Airways (1954) 11. Royal Air Maroc (1957) 12. Yemen Airways (1962) 13. Royal Jordanian (1963) 14. Libyan Airlines (1964) 15. Emirates (1985) 16. Nouvelair (1989) 17. Oman Air (1993) 18. Qatar Airways (1995) 19. Palestinian Airways (1995) 20. Tassili Airlines (1997) 21. Jordan Aviation (2000) 22. Afriqiyah Airways (2001) 23. Etihad Airways (2003) 24. Air Arabia (2003) 25. Air Cairo (2003) 26. flynas (2006) 27. Nile Air (2006) 28. Rotana Jet Aviation (2010) 29. flydubai (2008) 30. Air Go Egypt (2010)

Daily news on www.aaco.org Issue 93 - Dec 2014 97 References: About AACO: The Arab Air Carriers Organization “AACO”, established in 1965 The news included in this bulletin are collected from various sources as fol- within the framework of the Arab League of States, is the Regional Association lows: of the Arab Airlines who have their homebase in countries members of the AACO ATW Online Arabian Aerospace Arab League. IATA Innovata Arab News ICAO GreenAir Online MENAFN AACO’s Vision is to stand out globally as THE association that serves with dedi- EU institutions AMEInfo Arabian Business cation the Arab airlines and be instrumental in dealing with an evolving avia- Industry press releases Airports’ websites Gulf News tion industry. Khaleej Times Others... Where the news item was not based on various sources, AACO clearly men- AACO’s Mission is to serve the Arab airlines, represent their common interests tions the source. and facilitate, in a manner consistent with all applicable competition and other When the source is AACO, other parties may publish the information provided laws their cooperation so as to improve their operational efficiencies and- bet by AACO, but with reference to the source. ter serve the travelling public. Definitions: AACO’s Objectives: 1. Geographical Areas: • To support the Arab airlines’ quest for highest safety and security stan- Americas: Includes North, Central, and South American countries. dards. Mid Asia: Includes the following countries: Bangladesh, India, Iran, Afghani- • To support the Arab airlines’ quest for developing their environmental poli- stan, Pakistan, Sri Lanka, Nepal, Maldives. cies for processes in harmony with the environment. Australasia: Includes the following countries: China, Hong Kong, Malaysia, Tai- • To actively contribute in the development of human resources. wan, Myanmar, Cambodia, Vietnam, Philippines, Singapore, Thailand, Japan, • To interact with the regulatory bodies to support and protect the interests Indonesia, Australia. of the Arab airlines. Europe: Includes the European countries. • To launch 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]

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