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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. Daily news on www.aaco.org Issue 93 - Dec 2014 7 Aviation in the Arab World 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 region- al 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.

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