Issue 78 - Sep. 2013 Official Monthly Bulletin of AACO Arab world marks a decrease of (4.2%) AVIATION WITHIN THE ARAB WORLD GLOBAL ARAB AVIATION in July 2013 in international passenger numbers - p. 7 GROWTH p: 12 SPREADING OUT p: 28 PARTNER AIRLINES p: 56 - 67

Qatar Airways to host 46th AACO An- ARAB AIRLINES ECONOMICS p: 13 TOURISM p: 36 INDUSTRY PARTNERS p: 68 - 59 nual General Meeting in to be NEW APPOINTMENTS p: 16 AACO & RTC CALENDARS p: 90 - 93 held between November 5 – 7 - p. 8 COLLABORATION p: 39 EXPANSION p: 17 ENVIRONMENT p: 40 AACO MEMBERS & PARTNERS p: 94 - 97

ICAO Council agrees to a compromise LAURELS p: 21 REGULATORY TONE p: 45 solution on the introduction of global MBMs to tackle emissions - p. 40 TECHNOLOGY & E-COMMERCE p: 21 AN AVIATION MARKET IN FOCUS: p: 50 ARAB AIRPORTS p: 22 WORLD NEWS p: 52 ATM p: 24

Daily news on www.aaco.org Issue 78 - Sep. 2013 All eyes are on ICAO 38th Assembly Negotiations and preparations have been going on since the last As- Progress in that will be held from September sembly in an attempt to reach a global agreement for aviation emis- 24 till October 4. The most antici- sions in 2013. The issue witnessed a lot of progress at the level of the Debate pated discussions are those related ICAO since then, which has resulted in the EU stopping the clock on to an ICAO resolution on Climate the inclusion of international aviation in the ETS for one year in No- over Tackling Change. Three years ago, ICAO As- vember 2012, in order to give ICAO time to come up with a global sembly succeeded in reaching a solution in time for the Assembly. Aviation’s resolution on climate change, al- beit with reservations by a num- Twenty days before the Assembly, the ICAO Council agreed to a com- Impact on ber of countries. That resolution promise solution on the introduction of global market based mea- made ICAO the first United Nations sures (MBMs) to tackle aviation emissions. Basically, the Council ac- Climate Agency to try to lead a sector in the cepted the principle of interim regional emissions trading schemes establishment of a globally harmo- until 2020 and agreed to have a single global MBM for aviation to be Change at nized agreement for addressing its implemented from 2020, whereby agreement on that single global CO2 emissions. In a nutshell, in the MBM should be adopted in 2016. Three policy mechanisms are under ICAO 2010 resolution there was a general consideration at ICAO for a possible global MBM: Carbon Offsetting, agreement on short and medium Carbon Offsetting with revenue generating component, and a global term targets and long term aspira- ETS. tional targets. There was an agree- ment to achieve a global annual av- With the ICAO Council’s agreement, the EU announced that they will erage fuel efficiency improvement implement an adapted ‘Stop the Clock’ exemption for foreign airlines of 2% until 2020 and an aspirational until 2020 that will impose ETS on parts of a flight using EU airspace. global fuel efficiency improvement Overflights will not be included. rate of 2% per annum from 2021 to 2050. There was also an agreement A final text of the ICAO resolution still needs to be reached at the As- for states to strive to achieve a col- sembly, with many analysts predicting heated negotiations. lective global aspirational goal of Carbon Neutral Growth from 2020 The crux of the matter is that aviation is a major global element in the at the same level with a number of global economy and plays a key role in promoting sustainable devel- principles to take into account. opment. Nearly 57 million jobs and USD 2.2 trillion in global GDP

Daily news on www.aaco.org Issue 78 - Sep. 2013 5 are supported by aviation. Any measures taken to tackle the impact OVERALL TRAFFIC - ARAB WORLD of aviation on climate change should ensure that the benefits brought We estimate international passenger numbers to, from, & within the by aviation are not compromised; noting that in 2012 aviation pro- Arab World to decrease by (4.2%) in July 2013 compared to July 2012, duced around 2% of the global total CO2 emissions. Not reaching a which follows an increase of 11.2% in June 2013 compared to June global agreement will result in a proliferation of unilateral, duplicated, 2012. The estimated decrease is due to cyclicality related to the oc- or overlapping measures by various states, hence certain principles currence of the holy month of Ramadan. need to be agreed on for the interim solution in order to avoid unfair Monthly International Passenger Numbers' Change to, from and within the Arab World Aug 12 to Jul 13* compared to same month in previous year treatment to carriers and possible market distortions. This interim solution should be looked at as a gap filler until 2020 when a global 15% agreement is anticipated to prevail. 10%

5%

0%

-5%

Effect of Ramadan Effect of Adha Cyclicality

YoY Growth 12-Month Average Growth Effect of Ramadan Source: AACO, IATA *Estimated AACO members increased the number of their offered seats to, from, and within the Arab world by 10.7% during July 2013, while other air- lines Increased their number of seats offered by 6.0%, leading to 9.3% year-on-year increase in the total number of seats offered.

Daily news on www.aaco.org Issue 78 - Sep. 2013 7 PRESS RELEASE Airways to host 46th AACO Annual General Meeting in Doha to be held 125 destinations worldwide.” between November 5 – 7: , the national airline of the State of Qatar, is hosting the 46th Annual General Meeting of the Arab Air Carriers Or- “I am confident that participants of this event will enjoy Qatar Airways’ re- ganization (AACO) in the capital city of Doha. nowned hospitality lead by Qatar Airways Chief Executive Officer and the Chairman of AACO 46th AGM, Akbar Al Baker, and his team,” added Mr. Tef- The three-day event will take place between 5 and 7 November at the Shera- faha. ton Doha Resort and Convention Hotel. Qatar Airways has seen rapid growth in just 16 years of operations, currently Established in 1965 by the Arab League of States and headquartered in , flying a modern fleet of 129 aircraft to 129 key business and leisure destina- AACO is a non-profit organization gathering 30 Arab member airlines and aims tions across Europe, Middle East, Africa, Asia Pacific and The Americas. to promote cooperation, quality and safety standards among its carriers. AACO The airline has so far launched eight destinations this year – Gassim (Saudi as well works on enhancing human resources working in air transport through Arabia), Najaf (Iraq), Phnom Penh (Cambodia), Chicago (USA), (Oman), various training courses provided by AACO’s regional training center based in Basra (Iraq), Sulaymaniyah (Iraq) and Chengdu (China). Over the next few Amman, with a branch in Cairo. In addition, AACO manages a number of joint weeks and months, the network will grow further with Addis Ababa, Ethiopia projects gathering its member airlines. (September 18), Clark , Philippines (October 27) and Phil- adelphia, USA (2 April 2014). The organization continuously cooperates and communicates at various levels with global air transport associations such as IATA (International Air Transport Association) and ICAO (International Civil Aviation Organization). Click on the banner to register for attending this year’s AGM This is the second time that Qatar Airways hosts the annual general meeting of AACO. The first AGM was held in Doha in 2001. As an active member of this regional organization, hosting the next AACO AGM is a part of Qatar Airways’ commitment to the advancement of the glob- al aviation industry and the Arab aviation industry in particular. Qatar Airways Chief Executive Officer H.E. Mr. Akbar Al Baker, who will chair the proceedings of the 46th AACO AGM said: “We welcome leaders of the glob- al and Arab civil aviation industry to the State of Qatar and are delighted that Qatar Airways is hosting the AACO AGM for the second time. This reflects the pivotal role of the State of Qatar in the global and regional aviation industry and also reinforces Qatar Airways’ commitment in developing and strengthen- ing the Arab aviation sector.” AACO Secretary General Mr. Abdul Wahab Teffaha added: “Qatar Airways is an important Arab organization that has been able over the years to reinforce its presence on the global aviation map. Although launched in 1997, the airline has managed to significantly increase its growth globally and establish itself as a quality airline with its unique and innovative service offering enabling it to earn numerous awards based on passengers’ feedback. Twelve years ago, the AACO AGM was held here in Qatar, and this year we return again to this city that has become a hub for a global airline providing connections to more than

Daily news on www.aaco.org Issue 78 - Sep. 2013 9 AVIATION WITHIN THE ARAB WORLD Aviation in the Arab World

GROWTH Monthly International Passenger Numbers' Change within the Arab World Aug 12 to Jul 13* compared to same month in previous year PASSENGER TRAFFIC International passenger numbers within the Arab world are estimated to de- 20% crease by (8.5%) in July 2013 compared July 2012 following an increase of 15% 12.7% in June 2013 over June 2012. The estimated decrease is due to cyclical- ity related to the occurrence of the holy month of Ramadan. 10% 5% Passenger traffic within the Arab Sub Regions July 13* over July 12 0% Within Arabian Peninsula (2.5%) -5% Within Near East (23.9%) -10% Within North Africa (1.8%) Between Arabian Peninsula & Near East (12.3%) Effect of Ramadan Effect of Adha Cyclicality Between the Near East and North Africa (18.3%) Effect of Ramadan YoY Growth 12-Month Average Growth Between Arabian Peninsula & North Africa (0.9%) Source: AACO, IATA *Estimated Source: AACO, IATA *Estimated

International Passenger Numbers' Change Within the Arab World Apr13-Jun13 & May13-Jul13* compared to same period in previous year ARAB AIRLINES ECONOMICS 60% launches Airbus 319 luxury private jet service: Emirates has an- 50% nounced the launch of its luxury private jet service which can now be booked on www.emirates-executive.com. 40% The personalized service for customers includes booking an aircraft at short

30% notice and a premium chauffeur drive service. The A319 aircraft is support- ed by a dedicated team of highly trained and experienced inflight crew and 20% ground staff. 10% Etihad Holidays launches operations in the UK:Etihad Holidays, a division of 0% , is launching services in the United Kingdom (UK), designed to within cater for growing demand from one of the airline’s key global markets. within N Arabian within N An extensive range of Etihad Holidays packages in the UAE are now available, East N East Pen Africa Arabian N East N supporting the airline’s aim to bring greater business and leisure travellers to Apr13-Jun13 Africa N Africa Pen Arabian and the other emirates. May13-Jul13* Pen The UK is Etihad Holidays’ first venture outside the Middle East, reflecting its Source: AACO, IATA *Estimated growing expertise in providing customers with the ideal package of accommo- dation, excursions, transfers and Etihad Airways flights. Passenger numbers within the Arab world reported a 13.7% growth between April 13 & June 13 compared to same period in the previous year. Etihad Cargo and Abu Dhabi hub handle record July tonnage: Etihad Cargo has posted record monthly uplift figures for July of 45,000 tonnes, a 37% in- Passenger numbers within the Arab world reported a 5.9% increase between crease on the same month in 2012 (32,876 tonnes). The impressive tonnage May 13 & July 13* compared to same period in the previous year. figures for July were driven largely by increases in key export markets such as India, Hong Kong and China and demand into the Middle East for foodstuffs ahead of the Holy Month of Ramadan, predominately from The Netherlands.

Daily news on www.aaco.org Issue 78 - Sep. 2013 13 Aviation in the Arab World

The carrier’s Abu Dhabi hub also posted record tonnage for July with 70,500 It received clearance to board oneworld after successfully completing a thor- tonnes handled into, out of and through the cargo facilities, which are now ough review of its readiness, conducted by British Airways, which is sponsoring part of Etihad ‘s subsidiary organisation, Etihad Airport Services - Cargo. Qatar Airways’ entry into the alliance, with oneworld’s central team. Qatar Airways completes its oneworld implementation programme just one clarifies its role in the award of domestic flight license in the KSA: year after receiving its invitation to join, announced at a press conference in Gulf Air issued a statement clarifying the recent awarding of two licenses by the alliance’s New York home in October 2012. This will make its induction into the General Authority of Civil Aviation of Saudi Arabia (GACA) to operate do- oneworld one of the fastest in the alliance’s history. Normally it takes around mestic services within the Kingdom of Saudi Arabia. 18 months for any airline to be readied to enter any alliance. Gulf Air did not bid and has not been awarded domestic traffic rights to oper- Qatar Airways’ addition to oneworld will come shortly before the airline moves ate in the Kingdom of Saudi Arabia. The airline’s involvement is in a consulta- into its new home base, Hamad International Airport, which has been de- tive capacity only to the Al Qahtani Group, a consortium of privately owned signed to strengthen Doha’s position as a premium global hub, with an even- companies based in the Kingdom of Saudi Arabia. Accordingly, Gulf Air’s name tual capacity for 50 million passengers a year. and brand remain independent of the venture. From its first flights on Wednesday, 30 October, Qatar Airways will offer -one world’s full range of services and benefits. net profit soars to USD 36.4 million in first half of 2013, up 17%: From then, the 3 million members of Qatar Airways’ Privilege Club loyalty pro- Air Arabia announced its financial results for the period ending June 30, 2013, gramme will enjoy frequent flyer privileges whenever they fly with any one- highlighting the fundamental strength of Air Arabia’s business model and dem- world member airline, which include leading brands from each global region onstrating sustainable profitability during the first half of 2013. – airberlin, American Airlines, British Airways, Cathay Pacific Airways, Finnair, The company’s net profit for the first half 2013 stood at USD 36.4 million, an Iberia, Japan Airlines, LAN Airlines, Malaysia Airlines, Qantas, , increase of 17% compared to USD 31.3 million for the first six months of 2012. S7 Airlines and some 30 affiliated airlines. This includes earning and redeem- During the first half of 2013, the company registered a turnover of USD 408 ing Qmiles for awards and earning Qpoints for tier status when flying with all million, up 19% from USD 326.7 million for the first half of 2012. these airlines. Air Arabia’s net profit for the second quarter of 2013 exceeded analysts’ fore- Privilege Club Platinum cardholders will have Emerald status in the oneworld cast and registered USD 20.7 million, an increase of 15% compared to USD programme. Privilege Club Gold will be equivalent to oneworld Sapphire and 18 million for the second quarter of 2012. Turnover for the second quarter of Privilege Club Silver will be oneworld Ruby. 2013 rose by 17% to USD 217 million, compared to USD 185.4 million for the From 30 October, Privilege Club Platinum and Gold members will be able to second quarter of 2012. access 550 airport lounges worldwide offered by oneworld member airlines The airline served over 3 million passengers during the first half of 2013; a 16% when they fly with one of the alliance’s carriers. Qatar Airways’ First and increase compared 2.6 million passengers during the same period in 2012. Air Business Class passengers will also be able to use oneworld partner airline Arabia’s average seat load factor – or passengers carried as a percentage of lounges. Also from 30 October, the 130 million members of the established available seats – for the first six month of 2013 stood at an extremely impres- oneworld airlines’ frequent flyer programmes will be able to earn and redeem sive 82%. awards and tier status points and receive all other oneworld benefits on Qatar In the first half of 2013, Air Arabia added five new routes from Sharjah, bring- Airways. ing the total route network to serve 86 destinations from three operating hubs Qatar Airways is already participating in Global Explorer, the round-the-world - UAE, Morocco and . These new destinations include: Sialkot in ; fare offered by all oneworld members and various airlines that are not part Baghdad in Iraq; Abha and Ha’il in Saudi Arabia; and Yerevan in Armenia. The of the alliance. When it becomes part of oneworld, Qatar Airways’ network – first half of 2013 also saw the airline increasing frequency of flights to Beirut in serving 130 destinations in 70 countries across the Middle East, Europe, Africa, , Salalah in Oman, and in . North and South America, Asia and Australasia – will be covered by the full and extensive range of oneworld fare and sales products. Qatar Airways to join oneworld on 30 October 2013: Qatar Airways will be- More than 20 of its destinations and five countries – Ethiopia, Iran, Rwanda, come a full member of oneworld® with effect from Wednesday 30 October Serbia and Tanzania – will be new to the oneworld map. More significantly, 2013. Qatar Airways will substantially strengthen the alliance’s customer offering by One of just seven carriers worldwide rated five-star by the Skytrax airline providing superior routing alternatives across many hundreds of city pairs. For quality agency and the organisation’s Airline of the Year 2011 and 2012 and example, passengers flying between Asia and Southern Europe or between runner-up 2013, Qatar Airways is the only one of the “Gulf Big Three” carriers Asia and Africa will now have convenient one-stop connections not previously slated to join any of the global airline alliances. available within the oneworld network.

Daily news on www.aaco.org Issue 78 - Sep. 2013 15 Aviation in the Arab World Its implementation, making oneworld the leading alliance in the Middle East EXPANSION region, comes as the group undergoes the biggest expansion in its history with: • The addition of Malaysia Airlines, one of this industry’s most frequent ROUTES award winners, six months ago, further strengthening oneworld’s position in Airline From To Date Weekly Aircraft South East Asia, one of the fastest growing regions for air travel demand. Frequency Type • The switch in the second quarter of next year to oneworld from the Star 8U Misrata Cairo 21 Aug. 13 2x A320 Alliance by TAM, the airline in Latin America’s leading economy, Brazil, along EK Libya via Malta 3 Sep. 13 3x B 777-200ER with its Paraguayan affiliate, following the addition to oneworld on 1 Octo- ber 2013 of the newest member of the LAN group, LAN Colombia, solidifying EY Abu Dhabi Sana’a 2 Sep. 13 4x A320 oneworld’s position as the leading alliance in Latin America. MS Sohag 24 Aug. 13 3x N/A • The introduction early next year of SriLankan Airlines, as the first airline A330-200 from the Indian subcontinent to join any global alliance, which, with Qatar Tripoli Casablanca replacing Airways, will make oneworld the leading alliance in the region. A320 In addition, US Airways proposes to switch from Star to oneworld as part of its LN Benghazi planned merger with American Airlines, subject to necessary approvals. Tunis Aug. 13 N/A With Qatar Airways and the other airlines lining up to join, oneworld will: Abraq A320 replac- • Serve almost a thousand airports in more than 150 countries, with 14,000 Tobruk ing CRJ900 daily departures. Abraq Tripoli • Carry 480 million passengers a year on a combined fleet of almost 3,500 RG Abu Dhabi Manama 29 Aug. 13 2x Embraer AC aircraft. • Generate USD 140 billion annual revenues Sulaymaniyah 21 Aug. 13 4x A320 Qatar Airways’ oneworld implementation programme has represented one Ta’if 2 Oct. 13 4x A320 QR Doha of the most extensive projects in the airline’s 16-year history, with working Dubai 1 Aug. 13 77x to 91x N/A groups covering some 20 streams of activity. Projects are nearing completion Manama 15 Sep. 13 47x to 49x N/A to bring its various internal processes and procedures into line with the alli- ance’s requirements, and extensive employee training and communications programmes are now underway at Qatar Airways and the alliance’s established launches flights between Misrata and Cairo: Afriqiyah Air- members, to ensure they are ready to provide oneworld’s customer services ways has launched on 21 August a twice-weekly service between Misrata and and benefits across the expanded alliance from 30 October. Cairo. Flights are being operated by an Airbus A320 aircraft. Qatar Airways Chief Executive Officer H.E. Mr. Akbar Al Baker said: “In Qatar Afriqiyah Airways already flies from Misrata to Tunis, Sfax and Benghazi. Airways’ relatively short history, we have quickly established a reputation for in- novation, quality and excellence in everything we do. We are pleased to build Emirates resumes flights to Libya: Emirates has resumed passenger flights to on that by becoming the only major airline from the Gulf to date to be joining Tripoli. With the departure of the first flight from Dubai International Airport any of the global airline alliances. We are proud to entering the best of them, on 3 September, Emirates has re-established a key route offering Libyan travel- in oneworld – and to be doing so in record quick time. We very much look for- lers access to its global network that spans six continents. ward to flying alongside some of the best airlines in the world from 30 October, Emirates now serves Tripoli three times a week with a quick stop in Malta, bringing the heightened benefits offered by oneworld to our customers.” utilizing a Boeing 777-200ER which provides First Class, Business Class and Economy Class travel. Supporting trade between Tripoli and the rest of the world, Emirates SkyCargo NEW APPOINTMENTS introduced a freighter service to the city in May 2012. The resumption of pas- senger flights also enables Emirates SkyCargo to better serve Libyan cargo Egypt’s Civil Aviation Minister appoints Capt. Hossam Kamal as Chairman & customers by offering a total weekly capacity of over 100 tonnes and more fre- CEO of EgyptAir Holding Company: Egypt’s Civil Aviation Minister appointed quent connections with their supplier markets. Capt. Hossam Kamal as Chairman & CEO of EgyptAir Holding Company as at 12 Emirates has a fleet of 201 aircraft and is the world’s largest operator of A380 August, replacing Mr. Tawfik Assy. Capt. Kamal already held this position from and Boeing 777 aircraft, flying to 134 destinations in 74 countries across six November 2011 till September 2012. continents.

Daily news on www.aaco.org Issue 78 - Sep. 2013 17 Aviation in the Arab World

Etihad Airways launches maiden flight to Sana’a: Etihad Airways launched on Saudi Arabia since it began in 1997 with non-stop flights to Jeddah. Since then 2 September its inaugural flight from Abu Dhabi to Sana’a, Yemen’s political the airline has added Riyadh, Dammam, Madinah and Gassim to its portfolio and commercial capital. of destinations. Sana’a is Etihad Airways’ latest destination on the Arabian Peninsula, joining , Dammam, Doha, Jeddah, Kuwait, and Riyadh. The airline now Qatar Airways increases frequency to Dubai and Manama: Qatar Airways has serves the Yemeni capital four times a week from Abu Dhabi with an Airbus announced frequency increases to a couple of destinations in the Middle East, A320 aircraft equipped with 16 Pearl Business Class seats and 120 seats in which are: Coral Economy Class. Dubai (UAE): 91 flights a week (13 daily flights) from 77 from 1 August Manama (Bahrain): 49 flights a week (7 times a day) from 47 beginning 15 EgyptAir Express starts its new international service between Sohag and September Kuwait: EgyptAir Express started its new operation between Sohag and Kuwait on 24 August. EgyptAir Express will offer 3 flights a week on this route. CAPACITY AND DEMAND Passenger Air Services Within the Arab World - July 2013 - SRS Analyzer increases capacity on several routes: Libyan Airlines has de- AACO members increased the number of seats offered within the Arab world ployed its newly arrived pair of Airbus A330-200 onto its Tripoli - Casablanca by 11.7% compared to July 2012 whereas other airlines decreased that num- flights, replacing the A320 aircraft. As a result, the freed up Airbus A320s have ber by (17.4%), leading to a 6.7% year-on-year increase in the total number of now replaced the CRJ900s between Benghazi and Tunis, Abraq and Tunis, seats offered within the Arab world. Abraq and Tripoli, and Tobruk and Tunis. Available Seats within the Arab world for International and domestic routes constituted 24.9% and 9.8% respectively of the total Available Seats to, from, Rotana Jet continues Middle East expansion with flights to Bahrain from and within the Arab world in July 2013. Abu Dhabi: Rotana Jet announced twice weekly flights between Abu Dhabi Al Bateen Airport and Kingdom of Bahrain. Capacity* of top 10 carriers within the Arab World (Int’l Operations) Kingdom of Bahrain marked the second International destination of Rotana Jet Airline ASKs (Million) Departures Seats after Salalah in Sultanate of Oman. EK 1,143.9 2,506 802,022 Passengers to Bahrain will travel on a 50-seat Embraer Jet aircraft. MS 1,093.7 3,382 690,500 Qatar Airways launches flights to fifth Iraqi destination: Qatar Airways SV 924.6 2,562 567,861 launched flights to its fifth destination in the Republic of Iraq, Sulaymaniyah, QR 737.3 3,555 620,876 increasing the airline’s frequency across Iraq from 16 to 20 flights each week. FZ 638.7 2,965 560,385 The new services, which will operate four-times-a-week non-stop from the air- line’s Doha hub, brings the carrier’s global network to 129 destinations world- EY 480.9 2,144 340,644 wide. G9 406.5 1,918 310,716 The Doha – Sulaymaniyah route is being operated by an Airbus A320 featur- RJ 337.4 2,038 255,990 ing 144 seats in a two-class configuration of 12 seats in Business Class and 132 TU 235.4 701 131,600 seats in Economy. GF 229.8 2,432 339,298 Qatar Airways continues Middle East expansion with flights to Ta’if, Saudi Grand Total 8,408.6 35,051 6,306,825 Arabia: Qatar Airways announced it will begin flights to Ta’if, in the Mecca * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer province of Saudi Arabia, beginning 2 October 2013. The non-stop service from Doha will operate four-times-a-week. The Doha – Ta’if route will be operated by an Airbus A320 with an average travel duration time of just over two hours. The aircraft will feature 144 seats in a two-class configuration of 12 seats in Business Class and 132 seats in Economy. The launch marks the continued expansion of services by Qatar Airways to

Daily news on www.aaco.org Issue 78 - Sep. 2013 19 Aviation in the Arab World FLEET LAURELS Quarterly Development of Arab Airlines’ Fleet Oct 12 over Jul 12 Jan 13 over Oct 12 Apr 13 over Jan 13 Jul 13 over Apr 13 Gulf Air ranked number one global airline for on-time punctuality: Gulf Air Added Removed Added Removed Added Removed Added Removed has been ranked first among major global airlines for on-time-punctuality for A/C A/C A/C* A/C** A/C A/C A/C A/C the month of July 2013. 1 A300 6 A300 4 A300 4 A320 1 A319 2 A319 6 A320 4 A320 Statistics released by FlightStats Data FlightStats On-time Report - July 2013, 9 A320 1 A310 1 A310 2 A330 9 A320 4 A320 2 A321 1 A321 an independent provider of flight information services, showed that Gulf Air 3 A321 4 A320 1 A319 2 ATR 72 5 A321 4 A330 3 A330 2 A300 registered an on-time punctuality of 93.04% for the arrival and departure of 1 A330 4 A330 22 A320 5 B737 4 A330 4 A340 2 A330F 7 A300F its flights within 15 minutes of schedule in July 2013. Furthermore, in 2013 to date, Gulf Air has maintained its number one OTP position among the Middle 2 A380 4 B737 3 A330 2 CRJ200 5 B737 1 B737 4 A380 2 A319 East full service carriers, a spot it held consistently throughout 2012. 2 ATR 72 25 B747 1 A340 2 CRJ702 9 B777 2 B777 8 B777 1 A310 5 B737 1 B767 8 A380 3 B787 3 B777F 1 A330 TECHNOLOGY & E-COMMERCE 1 AN-124 1 B747 1 B777 (Freighter) 2 E190 6 B787 5 A340 Emirates becomes the first airline in the Middle East to use Google Now™: 8 B777 1 CRJ200 5 B737 1 B767 4 B777 Emirates announced that it will start to roll-out Google Now™ cards for their 1 E175 2 E170 1 B747 1 B747 4 ATR 72 passengers who book via Emirates.com. 1 G450 11 B777 2 B747F 1 AN-124 A feature of the Google Search™ app, Google Now is available and fully inte- 1 MD-11 3 B787 1 B737 grated for Android™ (devices running Android 4.1 and above) and iOS (iPhones 3 CRJ900 1 E195 and iPads). Some advantages of the Google Now implementation for Emirates’ 8 DHC8 passengers are: (Freighter) • Google Now is like a smart personal assistant that gives users exactly the 1 E175 travel information they need, when they need it, with minimal effort spent 6 E190 searching. 1 E195 • The app reminds passengers of their upcoming flight, providing flight 2 IL-76 times and departure terminal. (Freighter) • Google Now will give passengers relevant information on their destina- * 9P, MXU, SF and XY Fleet added tion (for example weather conditions locally, currency, local landmarks, ac- ** FO Fleet Removed commodation and attractions). receives Boeing next-generation 737-800 aircraft:Boeing deliv- • Passengers will have information they need about the flight and destina- ered a Next-Generation 737-800 aircraft to Iraqi Airways, the first of 30 that tion delivered at the right place, right time, without having to ask or search. the airline ordered in 2008. With this delivery, Iraqi Airways currently has 39 Google Now is available immediately for Emirates passengers who book on Boeing airplanes on order, including 29 Next-Generation 737-800s and 10 787 Emirates.com, provided they have downloaded the appropriate version of the Dreamliners. app for their smartphone and have a Gmail account. nasair receives Airbus A320 with “Sharklet” specifications:nasair announced Etihad Airport Services and Cargo Community Network to develop Abu that it received 4 additional Airbus A320 aircraft, one of which is with Sharklet Dhabi Cargo Community Portal: Etihad Airport Services - Cargo (EAS-Cargo), a specifications, becoming the third airline in the Middle East and first in Saudi subsidiary of Etihad Airways, is working with the Singapore-based Cargo Com- Arabia to receive this type of aircraft. munity Network (CCN) to rollout a new information technology platform for The announcement was made by Mr. Raja Azmi, CEO of nasair stating: “We the Abu Dhabi cargo community called Cargo Community Service (CCS). The are pleased that nasair is the third airline in the Middle East and first in Saudi one-stop service is designed to facilitate the air cargo booking and shipment Arabia to operate this type of aircraft which is equipped with the latest winglet processes for Abu Dhabi-based freight forwarders and clearing agents, by link- technology “Sharklet”. This aircraft is designed to reduce both fuel consump- ing them directly with air cargo carriers, ground handlers and third parties. tion and carbon emissions.” He added: “To date, nasair has received 8 A320 aircraft from a total of 10 scheduled to be delivered in 2013. These new air- Qatar Airways and Jeppesen agree to Digital Charting and Electronic Flight craft were immediately put into service.” Bag (EFB) service contract: Qatar Airways and Jeppesen have agreed to a five-

Daily news on www.aaco.org Issue 78 - Sep. 2013 21 Aviation in the Arab World

year service renewal agreement that will provide Qatar Airways with tailored Queen Alia International Airport reports overall year-to-date traffic increase electronic charting and Jeppesen FliteDeck Pro electronic flight bag (EFB) ser- in June 2013: Airport International Group (AIG) announced year-to-date (YTD) vices to increase operational efficiency. growth across its passenger, aircraft and cargo traffic for June 2013. Passenger The airline will receive Jeppesen’s digital charting navigation solutions and traffic (PAX) in June 2013 increased by 0.5% to reach 622,629 PAX compared paper chart revision services through the agreement. The agreement includes to the 619,615 PAX registered during same month in 2012. Most notably, YTD access to Jeppesen eLink for Windows which provides PC-based updated elec- PAX exceeded the 3 million mark this June to reach 3,166,610 PAX, represent- tronic terminal charts, documentation and other vital flight information. ing a 4.73% increase compared to the 3,023,499 YTD PAX achieved over the same period 2012. ’s international network gets SITA’s IP telephony:SITA has installed IP Meanwhile, aircraft movements (ACM) reached 6,020 ACM in June 2013, con- telephony across Saudia’s international network, providing Saudia with sig- stituting a 3.5% drop when compared to 6,238 ACM of June 2012. However, nificant savings by eliminating international calls among its 151 offices around YTD ACM rose by 1.17% to stand at 33,196 ACM as opposed to the 32,812 the world. The new solution is part of the International Managed Converged recorded by June 2012. Advanced Network program (IMCAN), a multi-million dollar, five-year, strategic YTD cargo traffic also went up 2.19% by June 2013 to reach 46,475 tons in project run by Saudia and SITA to implement a complete IP-based IT infrastruc- comparison to June 2012’s 45,480 tons. ture in all Saudia offices globally. To date, the airline’s offices in Europe, North America, South Asia, Asia-Pacific, parts of the Middle East and its domestic -of Passenger Traffic at Abu Dhabi International Airport Increased by 4.8% in July fices in Saudi Arabia are all connected to each other over the SITA IP network. 2013: Abu Dhabi Airports Company released Abu Dhabi International Airport’s This means international calls among the airline’s offices no longer rely on (AUH) traffic report for the month of July 2013 which highlights a growth of public networks, which typically are more costly. 4.8% in passenger traffic compared to July 2012, with close to 1.4 million pas- The IMCAN program replaced more than 300 legacy leased lines and 5,000 sengers traveling through the airport. desktops, printers and servers at 100 airports and city offices in 55 countries. In July 2013, aircraft movement totaled 11,355 representing a 12.1% increase One of the program’s key objectives is to provide a platform that will enable compared to aircraft movement in July 2012, and cargo traffic grew by 26.6%, Saudia to implement a wide range of business critical applications. This will reaching 63,794 tons of cargo moved. include a new passenger management system, which will allow Saudia to pro- The top five destinations in July 2013 were Bangkok, London, Manila, Jeddah vide passengers with more mobility services. and Doha. ARAB AIRPORTS Abu Dhabi Airports Company to open new VIP Terminal in fourth quarter of 2013: As part of its Capacity Enhancement Programme (CEP) and in line with Top 20 Airports by International Seats Offered on Operations To, From, and its ambition to provide a world class travel experience, Abu Dhabi Airports Within the Arab world - July 2013 Company is set to open Abu Dhabi International Airport’s VIP terminal to be Top 20 Airports by Int’l Seats Offered on Operations To, From, and Within available to all interested travelers. The new VIP terminal will be operated by the Arab world National Aviation Services (NAS) which also provides Golden Class services in Airport Number of Seats Airport Number of Seats Terminals 1 and 3. Through the VIP terminal, passengers will experience a unique personalized DXB 7,511,805 BEY 808,728 service ensuring completion of all travel procedures in the fastest manner pos- DOH 2,736,138 AMM 790,643 sible while enjoying a range of services within the private terminal. AUH 1,848,108 SHJ 775,633 The VIP Terminal, scheduled to open its doors in the 4th quarter of 2013, will be available to all passengers flying to and from Abu Dhabi International Air- CAI 1,833,896 LHR 750,536 port at a pre-set fee, and will offer added privacy, convenience and luxury - a JED 1,813,580 IST 731,133 completely new proposition. The VIP terminal will have its own facilities, sepa- RUH 1,135,854 TUN 680,406 rate from those of Terminals 1 and 3, which include a dedicated drop off area, KWI 1,113,821 CDG 560,934 with a new road being built specially to accommodate it, and will also provide separate immigration, police and baggage handling services to its passengers. MCT 902,838 ALG 557,033 In the Private Majlis within the new VIP Terminal, passengers will have access BAH 886,213 ORY 538,773 to a range of services and facilities including complimentary food and bever- CMN 879,006 DMM 489,496 ages, and comfort and entertainment facilities. Source: AACO, SRS Analyzer Daily news on www.aaco.org Issue 78 - Sep. 2013 23 Aviation in the Arab World

Dubai International’s passenger traffic rises 6.1% in July:Passenger traffic at Dubai International rose 6.1% in July, according to a traffic report issued by operator Dubai Airports. Passenger traffic in July reached 5,310,361, an increase of 6.1% compared to 5,006,155 during the corresponding month in 2012. Year to date traffic is up 15.3% to 37,972,464 compared to 32,937,794 during the first seven months of 2012. Aircraft movements totaled 28,462 during July, an increase of 2.3% from the 27,829 recorded during the same period in 2012. AIR TRAFFIC MANAGEMENT Libyan CAA launches program to upgrade AFTN and AIS infrastructure: Libyan CAA launched a pioneering programme to perform a fundamental country- wide upgrade of their existing AFTN and AIS infrastructure in order to enhance flight safety. LCAA have been effectively operating COMSOFT’s highly dependable AIDA-NG and CADAS products since 2004, and have again put their full confidence in the German expert to address their high technical and operational expecta- tions. With the upgrade Libya will join the still exclusive club of ANSPs processing their aeronautical information data in line with the ICAO Roadmap AIS to AIM. In addition, LCAA will benefit from the fast and highly reliable AMHS messag- ing that already connects many countries in the Arab peninsula and North Afri- can Region. Home to the world’s hottest desert, The Sahara, Libya’s expansive sandy land- scape makes air travel essential in order to facilitate Libya’s transportation infrastructure; meanwhile a number of national airports are of growing impor- tance. For this reason COMSOFT’s innovative AMHS and AIM solutions will be pro- vided not only to the central site in capital city Tripoli, but countrywide mes- saging and information management services will also be delivered via remote installations at Metiga, Mistrata, Sahba, Benina. During the course of the ambitious project LCAA will upgrade their NOTAM, OPMET, Briefing and Flight Plan Management facilities and simultaneously integrate the components in a state-of-the-art AIXM 5.1-based AIM concept. This includes the central handling of static data and the fully integrated abil- ity to generate electronic AIP and aeronautical charts directly from the central AIXM 5.1 database contents. Source: COMSOFT

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Daily news on www.aaco.org Issue 78 - Sep. 2013 25 GLOBAL ARAB AVIATION Global Arab Aviation

Monthly Passenger Numbers' Change to and from the Arab world SPREADING OUT Aug 12 to Jul 13* compared to same month in previous year PASSENGER TRAFFIC Passenger numbers on routes to and from the Arab world are expected to 14% decrease by 2.7% in July 2013 compared July 2012, after a growth of 10.6% in 12% June 2013 over June 2012. 10% 8% Traffic to and from the Arab world July 13* over July 12 6% 4% With the Americas 5.5% 2% With Europe (8.7%) 0% With Mid Asia 3.7% -2% -4% With Far East and Australasia (4.2%) Effect of Adha Cyclicality With Sub Saharan Africa 8.5% Effect of Ramadan Source: AACO, IATA *Estimated YoY Growth 12-Month Average Growth Effect of Ramadan Passenger Numbers' Change To and From the Arab World Apr 13-Jun 13 & May 13-Jul 13* compared to same period in previous year Source: AACO, IATA *Estimated 16% ROUTES 14% Airline From To Date Weekly Freq. Aircraft type 12% Sialkot 5 Nov. 13 4x A330-200 10% EK Dubai Taipei 10 Feb. 14 6x B777-300ER 8% Stockholm 5 Sep. 13 7x B777-200LR 6% 4% EY Abu Dhabi Kathmandu 1 Nov. 13 7x A320 IA Erbil Ankara 31 Aug. 13 2x N/A 2% 0% LN Tripoli Istanbul Aug. 13 N/A A320 to A330-200 MS Jakarta via Kuala With the Cairo Lumpur end of 2013 4x A330-200 Americas With Europe With Mid Asia Delhi Apr13-Jun13 With 1 Sep. 13 unchanged B787 AustralAsia With Sub- Bangalore May13-Jul13* Saharan Africa Chengdu 3 Sep 13 3x A330 Moscow 1 Sep. 13 10x to 12x Source: AACO, IATA *Estimated Ankara 18 Sep. 13 3x to 4x Passenger numbers within the Arab world market reported an 9.9% growth Belgrade QR Doha April 13 & June 13 compared to the same period in previous year. Bucharest 17 Sep. 13 4x to 5x N/A Passenger numbers within the Arab world market reported a 6.1% increase Islamabad 27 Oct. 13 4x to 7x between May 13 & July 13* compared to the same period in previous year. Jakarta 1 Sep. 13 11x to 14x Sofia 17 Sep. 13 4x to 5x Yangon 27 Oct. 13 3x to 7x Nairobi 1 Sep. 13 14x to 18x A320 Nairobi Aug. 13 5x B747F/MD11F SV Riyadh Toronto Via Jeddah 28 Oct. 13 3x B777-200

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Emirates announces its fifth route to Pakistan: Emirates announced it is to He also reaffirmed that Etihad Airways was already moving to increase its launch services to Sialkot, its fifth route to Pakistan. equity in Virgin Australia, following recent approval by the Foreign Investment The service will commence from 5th November 2013 with four weekly flights Review Board to increase from a 10% shareholding to 19.9%. operated by an Airbus A330-200 aircraft in a two-class configuration - 54 seats in Business Class and 183 in Economy Class. The aircraft can carry up to 17 Etihad Airways increases flights to Kathmandu: Etihad Airways will increase tonnes of cargo, giving a boost to trade opportunities. its Abu Dhabi-Kathmandu service from seven flights per week to a double daily schedule from November 1, 2013. The new services will be operated by A320 Emirates announces passenger services to Taipei: Emirates announced the aircraft fitted with 16 Pearl Business Class seats and 120 Economy Class seats. launch of non-stop passenger services to Taipei, its 16th destination in the Far Since the start of flights to Kathmandu in 2007, Etihad Airways has carried East. more than 620,000 passengers on this route. The service will commence from 10 February 2014, initially with six non-stop flights per week to Taipei’s Taoyuan International Airport. The route will be Gulf Air secures operating rights to five Pakistan destinations: Pakistan has operated by a three class Boeing 777-300ER equipped with eight luxurious pri- granted Gulf Air flight operating rights to five major airports including Karachi, vate suites in First Class, 42 lie-flat seats in Business Class, and generous space Lahore, Islamabad, Peshawar and Sialkot, Gulf Daily News has reported. This for 304 passengers in Economy Class. came after a meeting between Bahrain’s CAA and a visiting delegation from Pakistan’s CAA. Emirates starts its daily service to Stockholm: Emirates has further expanded its European reach on 5 September with the start of its daily non-stop service Iraqi Airways to launch Erbil-Ankara service: Iraqi Airways will start flights be- to Stockholm. tween Ankara and Erbil on 31 August, the Anadolu News Agency has reported. The Boeing 777-200LR aircraft operating on the route is well-appointed with Flights are scheduled to be twice a week. In June 2013, Iraqi Airways launched eight luxurious private suites in First Class, 42 lie-flat seats in Business Class, direct flights between Ankara and Baghdad. There are plans to add other and ample space for 216 customers in Economy Class. routes as well. In addition to passenger operations, Emirates SkyCargo offers 17 tonnes of belly-hold cargo capacity between the two cities. Libyan Airlines increases capacity on Istanbul route: Libyan Airlines has de- Emirates now operates services to 135 destinations in 77 countries from ployed its newly arrived pair of Airbus A330-200s onto its Tripoli - Istanbul Dubai. Earlier in 2013, Emirates launched services to Warsaw, Algiers and flights, replacing the A320 aircraft. Haneda. On 1st October, Emirates will launch services to Clark International Airport in the Philippines and on the same day will commence its transatlan- EgyptAir to launch new route between Cairo and Jakarta: EgyptAir an- tic Milan-New York route. Emirates will launch a linked service to Conakry nounced plans to launch flights between Cairo and Jakarta by the end of 2013. in Guinea from 27th October, Sialkot in Pakistan on 5th November, and will The new service will be operated at a rate of 4 weekly flights via Kuala Lumpur expand its presence in Eastern Europe with the launch of Kiev on 16 January on board an Airbus A330-200. 2014, followed by Taipei on 10 February 2014. Qatar Airways’ Dreamliner debuts in India: Qatar Airways has announced Etihad Airways outlines major expansion of Australian operations: Etihad Air- plans to extend its Boeing 787 Dreamliner route network to India with the ways outlined a range of major changes to its Australian operations, including launch of services to and from Delhi and Bangalore starting 1 September 2013. new aircraft, new routes, additional flights and new airport facilities. Speaking in Sydney at the CAPA Australia Pacific Aviation Summit, the Presi- Qatar Airways to boost Moscow service: Qatar Airways is set to increase its dent and Chief Executive Officer of Etihad Airways, Mr. James Hogan, said Aus- services on the Doha-Moscow-Domodedovo route, Routes Online has report- tralia was a key and long-term market for the airline and one for which there ed. Starting from 1 September 2013, the Qatar Airways’ overall service is to were exciting growth plans. rise from 10 weekly to 12 weekly. Mr. Hogan said the airline’s future steps for Australia included: • Airbus A380 aircraft from Sydney and Melbourne to Abu Dhabi Qatar Airways announces frequency increases; launches flights to Chengdu: • Construction of premium lounges at Sydney and Melbourne Air- Qatar Airways has announced frequency increases to destinations in Eastern ports from 2014 Europe, Middle East and Asia Pacific in preparation for the busy winter season. • Additional flights from Melbourne and Brisbane to Abu Dhabi Strong passenger demand and additional aircraft inducted to the fleet has • Commencement of nonstop flights between Perth and Abu Dhabi prompted the Doha-based airline to add frequencies to its popular and

Daily news on www.aaco.org Issue 78 - Sep. 2013 31 Global Arab Aviation

growing routes. Highlights of the frequency increases are: Saudia to operate flights to Toronto as from 28 October 2013:Saudia Airlines Ankara (Turkey): 4 flights a week from 3 beginning 18 September. has completed preparations for the launch of its direct flights to the Canadian Belgrade (Serbia): 4 flights a week from 3 beginning 18 September. city of Toronto beginning Oct. 28 as part of its strategic plan to expand its Bucharest (Romania): 5 flights a week from 4 beginning 17 September. international operations. Saudia will operate three flights weekly, each flight Islamabad (Pakistan): 7 flights a week (daily flights) from 4 beginning 27 Octo- taking 13.5 hours to reach its destination. The outgoing flight will take off from ber. Riyadh for Toronto via Jeddah while the return flight will follow the Toronto- Jakarta (Indonesia): 14 flights a week (double-daily flights) from 11 beginning Jeddah-Riyadh route. 1 September. Saudia will be using Boeing 777-200 aircraft for its Toronto flights. The aircraft Sofia (Bulgaria):5 flights a week from 4 beginning 17 September. has 24 seats in the First Class, 38 seats in Business Class and 170 seats in Econ- Yangon (Myanmar): 7 flights a week (daily flights) from 3 beginning 27 Octo- omy Class. ber. Saudia intends to operate another flight to Los Angeles in the spring of 2014. The numerous increases in frequency on these routes will provide business and leisure passengers travelling to and from these destinations with more flexibility and greater choice to connect onto Qatar Airways’ extensive global CAPACITY AND DEMAND network covering Europe, Middle East, Africa, Asia Pacific, North America and Passenger Air Services to & from the Arab world - July 2013 - SRS Analyzer South America. AACO members increased the number of seats offered to and from the Arab On the other hand, Qatar Airways further expanded its operations in China World by 9.9%, while other airlines increased the number by 12.0% which with the launch of scheduled flights to Chengdu, the airline’s sixth destination resulted in a growth of 10.7% in the total number of offered seats to and from to China. The new thrice weekly flights now join Qatar Airways’ five other Chi- the Arab world. nese gateways - Beijing, Shanghai, Guangzhou, Hong Kong & Chongqing – for a total of 41 flights per week. The Chengdu route is operated with an A330 in a Percentage of the Total Available Seats To and From the Arab World two-class configuration of up to 248 seats in Economy & 36 in Business Class. With Europe 31% Kenya welcomes Qatar Airways increased frequency to Nairobi: Kenya’s East With Mid Asia 17.7% African Affairs, Commerce and Tourism Cabinet Secretary, Mr. Phyllis Kandie, With Australasia 9.5% welcomed Qatar Airways’ decision to increase its frequency between Doha With the Americas 2.5% and Nairobi by adding four additional weekly flights to and from the capital With Sub Saharan Africa 4.6% city. Beginning 1 September 2013, the airline will increase its A320 aircraft Source: AACO, SRS Analyzer flights to 18 flights per week, up from the current 14 flights. Capacity* of top 10 carriers ( Arab World & Europe) Saudia Cargo expands network: Saudia Cargo has announced the re-launch of its Nairobi hub and expansion of its network coverage in sub-Saharan Africa. Airline ASKs (Million) Departures Seats With five weekly scheduled freighter flights into Nairobi and enhanced inter- EK 7,040.1 3,536 1,426,092 line partnerships, Saudia Cargo is now able to provide wider access to 23 addi- QR 2,397.5 2,272 529,296 tional destinations in Eastern, Central and Southern Africa as well as the Horn EY 1,476.9 1,240 295,062 of Africa and Indian Ocean Islands. These comprise Antananarivo, Bujumbura, Brazzaville, Dar Es Salaam, Djibouti, Douala, Entebbe, Harare, Juba, Kigali, TK 920.0 2,563 469,038 Kinshasa, Libreville, Lilongwe, Luanda, Lusaka, Maputo, Mogadishu, Mombasa, AT 866.9 3,030 459,162 Moroni, Mwanza, Pemba, Yaoundé and Zanzibar. Nairobi is a major export sta- BA 831.0 850 191,118 tion for Saudia Cargo with a total export capacity of over 400 tons per week. LH 720.6 1,087 207,918 Apart from Nairobi, Saudia Cargo also serves six other freighter destinations in Africa, namely: Addis Ababa, Johannesburg, Kano, Khartoum, Lagos and MS 651.3 1,473 244,507 N’Djamena. Supplementary belly capacity is also offered from major routes AF 637.5 1,406 253,264 such as Addis Ababa, Johannesburg, Kano, Khartoum and Nairobi as well as FR 542.4 1,620 306,180 Alexandria, Algiers, Cairo, and Casablanca. Grand Total 24,460.7 38,869 7,854,363 Source: The Saudi Gazette * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Daily news on www.aaco.org Issue 78 - Sep. 2013 33 Global Arab Aviation

Capacity* of top 10 carriers ( Arab World & Australasia) Capacity* of top 10 carriers ( Arab World & Sub Saharan Africa) Airline ASKs (Million) Departures Seats Airline ASKs (Million) Departures Seats EK 6,990.5 2,420 985,246 EK 2,274.8 1,243 422,063 QR 2,948.3 1,513 442,456 AT 398.8 845 131,294 EY 2,114.0 956 298,683 QR 377.8 496 84,844 SV 906.5 338 122,919 MS 375.8 553 96,549 QF 660.5 124 55,800 EY 264.3 274 56,192 GA 405.2 165 52,888 ET 245.2 690 112,201 MS 399.5 156 50,823 KQ 97.3 198 31,018 CX 355.8 186 57,846 SV 85.0 168 30,560 JT 244.9 62 30,752 TU 75.5 128 21,732 SQ 216.9 116 35,974 AH 66.8 140 23,380 Grand Total 16,940.9 7,121 2,421,428 Grand Total 4,645.9 5,680 1,168,768 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer

Capacity* of top 10 carriers ( Arab World & Mid Asia) Capacity* of top 10 carriers ( Arab World & the Americas) Airline ASKs (Million) Departures Seats Airline ASKs (Million) Departures Seats EK 2,131.5 2,793 908,090 EK 2,993.7 648 247,804 QR 1,080.4 2,043 389,852 QR 1,178.3 336 102,680 SV 905.7 945 290,976 EY 920.9 238 80,672 G9 759.0 1,835 297,270 UA 370.3 124 33,728 AI 719.9 1,314 255,702 SV 365.6 124 34,650 9W 640.2 1,645 262,534 RJ 333.7 136 34,776 IX 549.3 1,143 205,740 MS 309.0 98 33,908 FZ 495.4 1,109 209,601 DL 203.9 62 16,678 WY 451.2 1,342 204,146 AT 189.7 134 32,990 EY 439.9 1,060 179,562 AH 82.2 54 13,068 Grand Total 11,254.3 22,878 4,493,752 Grand Total 7,024.7 1,980 638,520 * 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 78 - Sep. 2013 35 Global Arab Aviation TOURISM International tourism demand exceeds expectations in the first half of 2013: Tourism expenditure growth driven by emerging economies International tourist arrivals grew by 5% during the first half of 2013 compared Emerging economy outbound markets continue to drive growth both to to the same period of 2012, reaching almost 500 million, according to data emerging and advanced economy destinations. released by UNWTO. Growth was above the projection made at the beginning China (+31%) and Russia (+22%) led the growth in expenditure on travel of the year (+3% to +4%) and is also exceeding the trend of the UNWTO long- abroad among the top ten most important source markets in the world during term outlook Tourism Towards 2030 (+3.8% a year). the first half of 2013. Outside the top ten, Brazil is back with a 15% increase Destinations around the world welcomed an estimated 494 million overnight after a more moderate 2012. visitors in the first six months of 2013, according to the Advance Edition of the Expenditure from traditional markets, on the other hand, was more modest. UNWTO World Tourism Barometer released on the occasion of the UNWTO Canada (+3%) and France (+2%) led the group, followed by the flat results of 20th General Assembly. This represents an increase of 5% or an additional 25 the United States, Germany and the United Kingdom, and negative figures million international tourists compared to the same period of 2012. Growth from Japan, Australia and Italy. was stronger in emerging economy destinations (+6%) than in advanced econ- Source: UNWTO omies (+4%), a trend which has marked the sector for many years now. In a still uneven global economic environment, results were positive in all re- gions and subregions, though the overall picture was mixed. Europe (+5%) Key Figures for MENA and Other Regions Extracted From the Barometer: performed surprisingly stronger than expected, driven by Central and Eastern International Tourist Arrivals (World, North Africa & Middle East regions) Europe (+10%) and Southern and Mediterranean Europe (+6%). Asia and the Full Year Share Percentage Change Pacific (+6%) also exceeded expectations, boosted by South-East Asia (+12%) and South Asia (+7%). On the other hand, results were weaker than anticipat- 2000 2005 2010 2011 2012* 2012* 10/09 11/10 12*/11 2013* ed in the Americas (+2%), as South America and the Caribbean lagged behind. (million) (%) YTD The first semester normally accounts for some 45% of the total arrivals count World 677 807 949 995 1,035 100 6.4 4.9 4 5.2 of the year (the Northern hemisphere high season months of July and August North Africa 10.2 13.9 18.8 17.1 18.5 1.8 6.7 (9.1) 8.3 4 fall into the second semester). Growth is expected to continue in the second Middle East 24.1 36.3 58.2 54.9 51.9 5 11.6 (5.6) (5.4) 12.9 half of 2013 but at a gradually slower pace. UNWTO forecasts 2013 to end at Source: World Tourism Organization (UNWTO) *estimated 4% or slightly above, thus exceeding the initial estimate for the year. Asia and the Pacific and Europe lead Asia and the Pacific (+6%) saw robust growth boosted by the increase in arriv- als to South-East Asia (+12%), a subregion which is maintaining the extraordi- nary momentum of recent years, and South Asia (+7%). Outlook of International Tourists 2013 In Europe, international tourist arrivals were up 5% despite the lingering eco- 2009 2010 2011 2012 2013* nomic difficulties. Growth was led by Central and Eastern Europe (+10%) and projection real full year, change Southern and Mediterranean Europe (+6%). between The Americas (+2%) reported a rather weaker first half of 2013 compared to World (3.9%) 6.4% 4.9% 4.1% 3% and 4% the strong growth of previous years. Central America (+4%) performed above the region’s average, while arrival numbers were flat in the Caribbean and in Africa 3.4% 8.7% (0.8%) 4.4% 4% and 6% South America. Middle East (5.2%) 11.6% (5.6%) (5.2%) 0% and 5% In Africa (+4%), the growth of recent years was sustained during the first half Europe (4.9%) 3% 6.5% 3.6% 2% and 3% of 2013 due to the continued recovery of North Africa (+4%) and the positive Asia and the (1.6%) 13.2% 6.5% 7.2% 5% and 6% results of Sub-Saharan destinations (+4%). Pacific The Middle East rebounded after two years of negative growth with an esti- mated increase in international arrivals of 13%. Yet, results should be taken Americas (4.7%) 6.6% 3.6% 4.5% 3% and 4% with caution as growth is rather uneven across destinations and this assess- Source: World Tourism Organization (UNWTO) *estimated ment is based on still limited available data and reflects data up to June only.

Daily news on www.aaco.org Issue 78 - Sep. 2013 37 Aviation in the Arab World

International Tourist Arrivals by (sub)region and selected countries and ter- Dubai enjoys busiest first half-year ever, attracting 5.5 million visitors:More ritories of destination than 5.5 million tourists visited Dubai in the first half of 2013, representing 2005 2010 2011 2012* 11/10 12*/11 an 11.1% year-on-year increase, indicating that Dubai is on the way to achiev- ing its Tourism Vision for 2020. The first half visitor number results, released Full Year Change by Dubai’s Department of Tourism and Commerce Marketing (DTCM), show (1,000) (%) increases across all key indicators, including hotel establishment guests, hotel North Africa 13,911 18,756 17,055 18,464 (9.1) 8.3 and hotel apartment revenues, room occupancy and average length of stay. Algeria 1,443 2,070 2,395 2,634 15.7 10 Announced earlier in 2013 under the directive of His Highness Sheikh Moham- med bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE Morocco 5,843 9,288 9,342 9,375 0.6 0.3 and Ruler of Dubai and spearheaded by DTCM, Dubai’s Tourism Vision for Sudan 246 495 536 - 8.3 - 2020 sets out how the city will double its annual visitor numbers from 10 mil- Tunisia 6,378 6,902 4,782 5,950 (30.7) 24.4 lion in 2012 to 20 million in 2020. Middle East 36,339 58,181 54,936 51,966 (5.6) (5.4) Egypt 8,244 14,051 9,497 11,196 (32.4) 17.9 COLLABORATION Jordan 2,987 4,207 3,960 4,162 (5.9) 5.1 Emirates and Qantas open joint New Zealand network: Emirates and Qantas Kuwait 104 207 269 - 29.6 - enhanced their joint network as bookings opened for their new schedule be- Lebanon 1,140 2,168 1,655 1,365 (23.7) (17.5) tween New Zealand and Australia. Among a suite of enhancements aimed at providing more convenience and Palestine 88 522 449 488 (14.1) 8.8 better connections for travellers to and from New Zealand, Qantas has retimed Qatar 913 1,519 2,527 - 66.4 - its existing Christchurch-Sydney service enabling more international connec- Saudi Arabia 8,037 10,850 17,498 14,276 61.3 (18.4) tions from Sydney and will launch a new Perth - Auckland service. Syria 3,571 8,546 5,070 - (40.7) - Emirates will continue to operate 28 flights a week to New Zealand, with daily flights to Auckland from Sydney, Melbourne and Brisbane; and the daily flight UAE* 5,833 7,432 8,129 8,977 9.4 10.4 between Sydney and Christchurch. From 1st October all Emirates flights to Yemen 336 1,025 829 - (19.1) - Auckland will be operated by an Airbus A380. Qantas operates double daily * Dubai Only A380 services from Dubai to Australia with connections to over 100 flights per Source: World Tourism Organization (UNWTO) week to New Zealand. Emirates’ trans-Tasman services are operated by Airbus A380 and Boeing 777- Mr. Taleb Rifai reelected as UNWTO Secretary-General: Mr. Taleb Rifai was 300ER aircraft, while Qantas’ services are operated by a dedicated fleet of next reelected for a second term as UNWTO Secretary-General (2014-2017). generation Boeing 737-800s. The announcement was made at the 20th Session of the General Assembly in Livingstone, Victoria Falls. The confirmation follows the decision by the 95th Saudia expands Air France codeshare: Saudia has expanded its codeshare session of the UNWTO Executive Council (Belgrade; Serbia, 28 May) to rec- agreement with Air France to cover domestic routes in the Kingdom, as well as ommend Mr. Rifai as a nominee for the Secretary-General post for the period intra-Europe routes, Airline Route has reported. 2014-2017. In accordance with UNWTO statutes, his candidature was present- Saudia will put its code on Air France flights from Paris CDG to Copenhagen, ed by Jordan, of which Mr. Rifai is a national. Dublin, Munich, Nice and Zurich. In turn, Air France will put its code on Saudia Source: UNWTO flights from Riyadh to Abha, Dammam, Gizan, Ha’il and Jeddah. These new codeshare routes are in addition to existing partnership on Paris Mexico and Burkina Faso official hosts of World Tourism Day 2014 and 2015: CDG–Riyadh and Paris CDG–Jeddah routes. Mexico was selected to be the official host country for World Tourism Day Source: Aviation Business ME (WTD) 2014 and Burkina Faso for WTD 2015. The respective themes will be “Tourism and Community Development” for 2014, and “One billion tourists, one billion opportunities” for 2015. The announcement was made at the 20th UNWTO General Assembly (Victoria Falls, 29 August). Celebrated annually on 27 Sept., World Tourism Day is the biggest international event in tourism.

Daily news on www.aaco.org Issue 78 - Sep. 2013 39 Global Arab Aviation ENVIRONMENT CDM pipeline update: nationality of the carrier, have to take part in the EU ETS. The draft working CDM pipeline update 1 Sep 2013 Status # of Projects paper received the support of the majority of the 36 member states that make Status # of Projects Withdrawn 60 up the ICAO Council. All 191 of ICAO’s member states are expected to vote on the Council’s draft working paper as the body’s next assembly, which is being At Validation 1,505 Rejected by EB 256 held in Montreal Sept. 24-Oct. 4. Request for Registration 56 Validation Negative by 261 Source: Aviation Week Request for Review 42 DOE Correction Requested 2 Validation Terminated The Emirates Group’s third environment report highlights key efficiencies: by DOE 1,617 The Emirates Group has published its third annual environment report. It re- Under Review 0 veals improvements in Emirates’ fuel efficiency and reduction of carbon diox- Registered, no issuance 4,776 Total in Registration 100 of CERs ide emissions as the airline added new, modern aircraft and retired older, less Process efficient ones. Covering the 2012-2013 fiscal year, the audited report analyzed Source: UNEP RisØ Registered, CER issued 2,441 environmental performance data from a range of Group activities, including Total Registered 7,217 airline operations, dnata’s cargo and ground handling businesses and a wide range of commercial activities on the ground – from engineering to catering. Settlement Price of ECX EUA and CER Futures on 2 September 2013 The report’s aim is to understand the Group’s environmental impact, as well Dec-13 Dec-14 Dec-15 Dec-16 as identifying opportunities to improve and capture best practice across the EUAs € 4.51 € 4.64 € 4.81 € 5.02 68,000 strong workforce. With airline operations constituting the main envi- ronmental impact of the Emirates Group, total fuel efficiency for all passenger CERs € 0.58 € 0.59 € 0.68 € 0.71 and freighter flights improved by 0.29%, dropping to 0.3103 litres per tonne Source: IntercontinentalExchange kilometre (L/TK). Similarly, carbon dioxide emissions dropped to 0.767 grams ICAO Council agrees to a compromise solution on the introduction of global of CO2 per tonne kilometre (gCO2/TK), improving efficiency by 0.3%. market based measures (MBMs) to tackle aviation emissions:The Interna- During the reporting period, Emirates retired or cancelled the leases of six tional Civil Aviation Organization (ICAO) Council has agreed to a compromise aircraft and took delivery of 34 aircraft. Overall, Emirates airline operates one solution on the introduction of global market based measures (MBMs) to tack- of the youngest and most efficient fleets in the world. Emirates’ average fleet le aviation emissions. age is six years versus the IATA average fleet age of 11.7 years. This directly im- The council accepted the principle of regional emissions trading schemes pacts Emirates’ fuel efficiency, which is 15.7% better than IATA’s 2012 forecast and agreed to have a single global MBM for aviation to be implemented from industry average, and its carbon dioxide emissions efficiency, which was 16.6% 2020. The principles for a global MBM should be adopted at ICAO’s assembly better than the IATA average. in 2016. “At Emirates, we remain committed to operating as an environmentally re- The Council adopted an article proposed by the EU that “recognizes that states sponsible company,” said HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman or groups of states may choose, prior to the full implementation of a global and Chief Executive, Emirates Airline and Group. “This report illustrates our MBM scheme, to implement MBMs that apply to flights to or from third coun- continuing efforts to improve our environmental efficiency, in the air and on tries which depart or arrive at airports in that state or group of states for the the ground. We are pleased that the induction of new modern, more ecologi- portion of those flights within the airspace of that state or group of states, and cally efficient aircraft helped to make an improvement in the fuel and emis- would fully cover all emissions from flights which both depart and arrive at sions efficiency of our fleet. Our employees play a key and integral role in en- airports in that state or group of states.” suring we minimize our environmental impact and in driving efficiencies across With the ICAO Council’s agreement, the EU will implement an adapted ‘Stop the Group.” the Clock’ exemption for foreign airlines until 2020 that will impose ETS on Other significant highlights of the report include: parts of a flight using EU air space. Overflights will not be included, but for in- • Emirates has doubled its total recycling volumes in the reporting stance a flight from London to New York will be included in the scheme for the period, to 10,697 tonnes, primarily due to the inclusion of a used cooking part using European air space. oil recycling programme for one of its subsidiaries, Alpha Catering. The current Stop the Clock measure exempts flights between an EU airport • After coordinating with 34 countries, Emirates Flight Operations is and a non-EU airport and only intra-European flights, irrespective of the saving more than 4,200 tonnes of fuel and 13,200 tonnes of CO2

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emissions per year due to its iFlex programme, which has opened up 25 In the report, Heathrow makes a range of new commitments on noise which new airways structures across the African continent for Emirates’ South include publicly ranking airlines on ‘noise performance’, trialling new depar- American operations. ture routes with NATS, proposing to trial steeper approaches into Heathrow, • Emirates was awarded the ‘Fly Quiet’ Award at San Francisco Air- establishing a new noise insulation scheme to replace the existing schemes, port in 2012 and 2013 for the work done by its Flight Operations team to exploring innovative solutions to noise insulation for schools such as ‘adobe’ reduce the noise impact on surrounding communities. buildings and proposing a significant increase in fines for airlines that break • Emirates Group Central Services team spearheaded a mail reduc- noise limits. tion campaign to reduce the amount of mail items at the Group’s head- The report focuses on five areas: quieter planes, quieter operating procedures, quarters in Dubai by 25%, or 45,000 items per month. noise mitigation and land-use planning, operating restrictions and working • Emirates Flight Catering is seeking to launch one of the first pro- with local communities. These measures mean that aircraft flying in and out of grammes in the UAE for glass recycling. Heathrow are on average 15% quieter than fleets of the same airlines which • The dnata Baggage Services team is planning to purchase 50 elec- land at other world airports. tric vehicle tractors, which should improve air quality for airport ramp These actions mean that Heathrow is significantly quieter than it was four workers, for use at Dubai International Airport for the 2013-14 fiscal year. decades ago. Since the early 1970s, when the jet age began, both the area and • Emirates plans to award funds to one or more deserving organisa- the number of people within Heathrow’s noise footprint have fallen around tions later this year under its new “A Greener Tomorrow” environmental tenfold. This is despite the fact that during the same period the number of air- grant. craft using Heathrow each year has nearly doubled and the number of dwell- Emirates is also taking a leading role in the airline industry when it comes to ings within the footprint has also increased significantly. The fall in population environmental reporting. This year, the report includes Emirates’ proposal to within each contour has continued in recent years, as the newest generation adopt a new measure of industry fuel efficiency to become an industry stan- of aircraft like the A380 ‘superjumbo’ has started to enter service with airlines. dard. The new standard, measured by tonne kilometre per litre (TK/L), will Recent research by industry-body Sustainable Aviation suggests that this trend form the basis of reporting Emirates airline’s fuel efficiency in 2014. will continue. Its Noise Road-Map suggests that by 2050 advances in aircraft technology will allow the number of flights in the UK to double without an Emirates Airline and Airservices reduce aviation impact on the environment: increase in aircraft noise. Airservices played an integral role to demonstrate air traffic management by Source: assisting Emirates in conducting a flight through Australian airspace as part of a demonstration on how improved air traffic management can reduce the Heathrow Airport is supplied with new Gas-to-Liquids aviation fuel: Pas- impact of aviation on the environment. sengers traveling from London’s Heathrow Airport in summer 2013 could be Emirates flight EK434 from Dubai to Brisbane on 1 September was part of the among the first in Europe to fly on synthetic aviation fuel, after suppliers into Indian Ocean Strategic Partnership to Reduce Emissions (INSPIRE) program. the world’s busiest international airport took delivery of gas-to-liquids jet fuel The program aims to yield substantial savings in fuel consumption and carbon from Qatar, according to trading sources and shipping data. dioxide emissions. Trading house Vitol is understood to have delivered barrels of GTL-blended jet Results based on 100 similar flights conducted under the INSPIRE program, fuel into the U.K. terminal of Fawley in August 2013, a month after it first put a indicate a fuel saving of 740kg and 2.3 tonnes of CO2 per flight. GTL cargo into the ExxonMobil complex. Smart Tracking enables suitably equipped aircraft to glide to the runway under Two Europe-based jet traders said they had been tracking the BW Isis, a Long minimal power avoiding long, straight-in approaches. Range 1 tanker chartered by Vitol, since it left Qatar in July. This offers significant environmental benefits, including the reduction of- car They said it loaded GTL jet at the Pearl GTL plant in Ras Laffan, a joint venture bon emissions by reducing the amount of fuel used by aircraft. between Qatar Petroleum and Shell. The vessel arrived in Fawley, Platts vessel The Emirates flight then returned to the skies heading to Auckland to highlight tracking tool cFlow shows. the benefits of the Asia and South Pacific Initiative to Reduce Emissions- (AS Fawley is connected to a network of underground oil pipelines which distrib- PIRE). Emirates Airline is the most recent member of ASPIRE. utes jet fuel to London Heathrow airport, as well as London Gatwick and Bir- Source: Airservices mingham. The first commercial passenger flight fueled by GTL jet was a Qatar Airways Heathrow publishes commitments on noise reduction measures:Heathrow flight from Doha to London Heathrow in January, but the first exports from published ‘A quieter Heathrow’, a report setting out Heathrow’s commitments Pearl did not start flowing until June. to reducing aircraft noise while safeguarding the UK’s connectivity. Tasweeq signed its first semi-term contract to sell just under 1 million barrels

Daily news on www.aaco.org Issue 78 - Sep. 2013 43 Global Arab Aviation of GTL jet to Vitol in April. Under the contract, Vitol would take 321,200 bar- REGULATORY TONE rels (around 40,000 mt) per month between June and August, industry sources said. The European Commission approves proposed merger between US Airways It was later heard Vitol secured more barrels loading over September-Novem- and American Airlines’ holding company AMR Corporation, subject to condi- ber. Tasweeq recently issued another tender for September-December load- tions:The European Commission has cleared under the EU Merger Regulation ings, which closed on 20 August. the proposed merger between US Airways Group and AMR Corporation, in- ExxonMobil and Vitol Aviation were not immediately available for comment. cluding its main subsidiary American Airlines. Both US Airways and American Source: Platts Airlines are major US flag commercial airlines providing scheduled air passen- ger services. The transaction would lead in particular to a monopoly on the European Union’s Joint Undertaking “Follow the Greens” successfully simu- London-Philadelphia route, where US Airways and American Airlines through lated at Frankfurt Airport: “Follow the Greens” – it is under this title that its membership in a metal neutral joint venture with British Airways and Ibe- simulations are being performed currently at Frankfurt Airport. The objective ria are the only carriers offering non-stop flights. The decision is conditional is to speed up the taxiing procedure of aircraft to and from the runway system, upon the release of one daily slot pair at London Heathrow and of other com- making the process more efficient. mitments in order to induce entry on the London-Philadelphia route. In light Source: Fraport of these comprehensive commitments, the Commission concluded that the transaction would not raise competition concerns. India’s DGCA panel to monitor emissions: The Directorate General of Civil US Airways and American Airlines submitted commitments to release one Aviation (DGCA) is planning to establish an aviation climate change task force daily slot pair at London Heathrow and Philadelphia airports, and also pro- to assess carbon emissions, monitor data collection from airports and chart vided further incentives such as the possibility for a new entrant to acquire out measures to deal with climate change. grandfathering rights after a certain period of time. Furthermore, the parties, In a recent circular, Director-General Mr. Arun Mishra said airlines will have to supported by their joint venture partners of the Transatlantic Joint Business, set an aviation environment cell dedicated to reducing emissions and collating committed to entering into special feed traffic agreements with the likely en- data. trant airline. Though major airports have been collecting data on emissions and submitting These commitments adequately address the competition concerns identified it to the aviation regulator, the circular dated June 13 seeks to streamline col- by the Commission and should facilitate new entry on the London-Philadel- lection, analyze information and take action, said Mumbai airport officials. phia route. The Commission therefore concluded that the proposed transac- The task force will comprise various stakeholders, including officials from the tion would not significantly impede effective competition in the European Eco- DGCA, airlines, airports and engineers. nomic Area (EEA) or a substantial part of it. This decision is conditional upon The circular states that all airlines with more than 50,000 movements per year full compliance with the commitments. will set up an environment cell. Source: European Commission Currently, all major airports, including Mumbai airport, collate data provided by airlines and send it to the DGCA headquarters. US Department of Justice moves towards blocking merger of US Airways and The circular makes it mandatory for airlines to furnish data on the fuel con- American Airlines: The US Department of Justice (DOJ) has moved to block sumed by an aircraft’s main engine and ancillary power units. With growing the planned US Airways-American Airlines merger, stating that the combina- concern over climate change, the International Civil Aviation Organization tion “would result in hundreds of millions of dollars of harm to American con- (ICAO) has made it mandatory for every country to monitor emissions from sumers.” the aviation sector and take measures to curb them. Attorneys general of six states joint DOJ in filing a civil antitrust lawsuit in a Role of Aviation Climate Task Force federal court “which seeks to prevent the companies from merging and to pre- • Assess trends in carbon emissions serve the existing head-to-head competition between the firms that the trans- • Facilitate emission data collection from airlines and airports and its anal- action would eliminate,” according to a DOJ statement ysis. DOJ added that the two airlines “engage in head-to-head competition with • Come up with initiatives to improve fuel efficiency, reduction of emis- nonstop service on routes worth about USD 2 billion in annual route-wide sions from airport functions and ground operations. revenues. Eliminating this head-to-head competition would give the merged • Ensure that all airlines have an aviation environment cell. airline the incentive and ability to raise airfares.” DOJ also stated that “The Source: Times of India merger would create the largest airline in the world and result in four airlines controlling more than 80% of the United States commercial air travel market.”

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White House says it played no role in airline merger suit: The White House Aer Lingus welcomed the decision, saying Ryanair had used the stake as a said it played no role in the Justice Department’s decision to file suit to block “Trojan horse” to plot its bids. the merger of American Airlines and U.S. Airways. Source: Bloomberg Justice’s antitrust division reached the decision on its own, White House spokesman Josh Earnest said during a press briefing. ACCC confirms Virgin Australia Air New Zealand pact: The Australian Compe- Source: The Hill tition and Consumer Commission (ACCC) has confirmed that the trans-Tasman airline alliance between Virgin Australia and Air New Zealand can continue, Trial date of November 25 set for U.S. challenge to AMR-US Airways merger: with conditions. A federal judge set a tentative November 25 trial date for the U.S. govern- The Australian Competition and Consumer Commission (ACCC) issued a final ment’s legal challenge to the merger of American Airlines and U.S. Airways determination granting conditional authorization for the partnership until Oc- Group. Judge Colleen Kollar-Kotelly, who will try the case without a jury, an- tober 31, 2018. The ACCC issued a draft determination on the matter in July. nounced the date at a hearing in U.S. district court. The ACCC said the alliance was unlikely to reduce competition on most trans- The U.S. Justice Department had asked for a March trial. The airlines had Tasman routes but it may affect competition on some of them. been pushing for November because holding a deal together for months puts Therefore, the ACCC required that Virgin Australia and Air New Zealand main- a strain on the parties. During the merger review and challenge process, the tain an aggregate base capacity across these routes. companies said they are essentially in limbo, unable to merge but unable to The ACCC would review the airlines’ capacity additions in light of actual de- make independent long-range plans. mand growth over the next two years. The review will start in September Lawyers for the two sides said the trial was expected to last 10 to 12 business 2015. The airlines must also provide performance data to help the ACCC as- days. The judge will appoint a special master to help the discovery process sess whether the alliance is adversely affecting competition. move along faster. She set a status conference for October 1. The Justice Department plans to call about 15 witnesses and the airlines plan Korean Air settles price-fixing lawsuit for USD 65 million: Korean Air said on to call approximately six. The department proposes to conduct pre-trial depo- it had agreed to pay USD 65 million to settle a class-action lawsuit by US pas- sitions of as many as 50 people. The airlines said they want to depose about sengers over alleged price fixing. Korean Air said it would pay USD 39 million 10 people. Lawyers said they could exchange millions of documents. in cash and USD 26 million in coupons to passengers who have accused the Source: Reuters airline of conspiring with local rival Asiana Airlines to establish artificially high prices for travel between South Korea and the United States. Europe extends probe into Greek airlines’ proposed merger: Europe’s investi- A group of passengers launched a lawsuit after the US Department of Justice gation into the proposed merger of Olympic Air and has been ruled a fine of USD 300-million fine against Korean Air and a USD 50-million extended until mid-October in order to consider a fresh plan the carriers have fine against Asiana over anti-trust violations in 2000. submitted in a bid to remedy competition concerns. Source: AFP Ryanair told to cut Aer Lingus stake by UK regulators: Ryanair Holdings was Brazil’s CADE fines four airlines USD 125 million in cartel case:Brazil’s anti- ordered by the U.K. antitrust regulator to cut its stake in Aer Lingus Group to trust regulator, CADE, fined four airlines a total of USD 125 million as part of no more than 5% to address competition concerns, a ruling the discount car- an alleged air cargo cartel in the country. rier vowed to contest. Ryanair’s 29.8% holding in the Irish airline, valued at Brazil’s Administrative Council for Economic Defence, or CADE, imposed a USD about 261 million euros (USD 349 million), affects Aer Lingus’s policy and strat- 61 million fine on VarigLog, which filed for bankruptcy in 2012, while ABSA egy, the UK Competition Commission (UKCC) said in a report. Dublin-based -Ry Aerolineas Brasileiras, currently named TAM Cargo, received a USD 47.96 mil- anair said it will challenge the decision, which it called “manifestly unsound.” lion fine. Tam Cargo is a unit of Tam, which merged in 2012 with Chile’s LAN “This prejudicial approach to an Irish airline is very disturbing, coming from an to form LATAM Airlines Group. American Airlines received a USD 10.94 million English government body that regards itself a model competition authority,” fine. CADE imposed a lower fine on Alitalia-Linee Aeree Italiane. Ryanair Chief Executive Officer Mr. Michael O’Leary said in a statement. Source: The Wall Street Journal Europe’s largest low-cost carrier has been at odds with competition authorities in Europe since it first acquired Aer Lingus shares as part of a takeover bid in China’s CAAC says 21 airlines to receive USD 68 million in subsidies for re- 2006. Mr. O’Leary’s most recent offer for the smaller rival was blocked in Feb- gional services in 2013: Twenty-one Chinese carriers are expected to receive ruary by the European Union, which ruled it would increase fares and reduce USD 68 million in subsidies to operate regional routes, according to the Civil choice. Aviation Administration of China (CAAC).

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China Eastern Airlines is set to receive the highest subsidy of USD 17.2 million, Urumqi, Xining, Kashgar, Yinchuan and Zhengzhou in order to keep up with the followed by China Southern Airlines with USD 15.4 million and Tianjin Airlines growth of air traffic between the two countries. Also, China side agreed unlim- with USD 9.2 million. Other subsidized airlines include Air China (USD 6.7 mil- ited frequencies with 3rd, 4th and 5th freedom traffic rights at Haikou, Sanya lion), Sichuan Airlines (USD 6.3 million), Tibet Airlines (USD 3.5 million), Lucky and Yinchuan for passenger & combination and all-cargo services for the des- Air (USD1.9 million), China United Airlines (USD1.2 million), China Express Air- ignated airline(s). lines (USD1.1 million), and Okay Airways. Canada announces a first air transport agreement with Bangladesh: Canada Ukraine expects EU aviation pact in 2014: Ukrainian authorities are optimistic has concluded a first-ever air transport agreement with Bangladesh, allow- that a liberal air services agreement with the European Union can be put in ing direct scheduled air services between the two countries. The agreement place in early 2015. The two sides have been discussing implementation of a provides flexibility for airlines to access all points in Canada and Bangladesh, common aviation area since late 2007, but have yet to conclude a formal pact. both for passenger and all-cargo services. Airlines may also choose to offer air Deputy infrastructure minister Mr. Vladimir Kornienko says there have been services by sharing space on the flights of other airlines. The agreement allows seven rounds of talks, with an eighth scheduled for October. He expects a sig- airlines to offer new services immediately. Canada has concluded new or ex- nature in summer 2014 leading to entry into force in early 2015, he adds. Mr. panded air transport agreements covering more than 70 countries, including: Kornienko says the agreement will provide new opportunities for airlines. • Open Skies-type agreements with 16 countries: Barbados, Brazil, Costa Source: Flightglobal Rica, Curaçao, the Dominican Republic, El Salvador, Honduras, Iceland, Ire- land, Jamaica, New Zealand, Nicaragua, Saint Maarten, South Korea, Swit- Modernization of Air services Agreement between Qatar and Uganda:The zerland, and Trinidad and Tobago. State of Qatar, represented by the Civil Aviation Authority, has signed an open • Expanded agreements with 15 countries: Algeria, China, Cuba, Egypt, sky air services agreement with the republic of Uganda on 26 August 2013 at India, Japan, Jordan, Mexico, Morocco, Pakistan, Peru, the Philippines, Saudi the Civil Aviation Authority premises. Arabia, Singapore and Turkey. The agreement entitles Qatar Airways to operate unlimited weekly flights • First-time agreements with 18 countries: Bahrain, Bangladesh, Colom- (passenger and cargo) between both countries. Vice chairman / Director of Air bia, Croatia, Ethiopia, the Gambia, Kenya, Kuwait, Panama, Paraguay, Qatar, Safety Dept. Mr. Ebrahim Abdulqader Al-Janahi signed for the state of Qatar, Rwanda, Senegal, Serbia, Sierra Leone, South Africa, Tunisia and Uruguay. Mr. Kalumba Kagawa Assistant commissioner in charge of Air Transport in the • A comprehensive air transport agreement between Canada and the Eu- Ministry of works and transport signed for the republic of Uganda. ropean Union. Source: Qatar Civil Aviation Authority Source: Transport Canada Qatar and Moldova agree to liberalize air transport: The State of Qatar and France to tax airline tickets to fund rail link:France may impose a new tax the Republic of Moldova have signed an air transport agreement after talks on airline tickets to fund a planned rail link between Paris and the capital’s the two sides held at the Civil Aviation Authority headquarters in Doha. Charles de Gaulle airport, the transport ministry said in August. According to the agreement, sky will be open for the national carriers of the The government will finalize plans “in the coming weeks” for funding the two countries to operate a number of unlimited passenger and cargo flights planned CGD Express line, a ministry official told AFP. via any intermediate or points beyond. The agreement also allows national “Such a tax would not be out of the question,” Transport Minister Frederic carriers to collaborate between each other or with other airlines through Cuvillier told newspaper Le Figaro, which said the tax could raise up to €400 codeshares. million for the project. The rail link, which has been in the planning stages for Mr. Ibrahim Abdul Qadir Al-Janahi, Director of the Air Safety Department, years, is expected to cost about €1.7 billion, with the participation of the state- signed the agreement for Qatar while Mr. Eugen D., Deputy Director General owned ADP Paris airport operator and three public transportation companies. of the Moldovan Civil Aviation Authority, signed for his country. Source: AFP Source: Qatar Civil Aviation Authority DOT fines ticket agents for code-share disclosure violations: The U.S. Depart- Agreement for new destinations in China, says UAE GCAA: The United Arab ment of Transportation (DOT) fined on 29 August three ticket agents for violat- Emirates represented by the General Civil Aviation Authority (GCAA) has ing the Department’s rules on disclosure of code-share flights. DOT issued a signed a Record of Discussions with the Government of the People’s Republic USD 100,000 fine against Liberty Travel and USD 40,000 fines against both STA of China in Yinchuan, Ningxia on 15 August 2013. The two delegations agreed Travel and AAA Mid-Atlantic, and all three companies were ordered to cease to increase passenger and combination services frequencies for operations to and desist from further violations. Source: US DOT Daily news on www.aaco.org Issue 78 - Sep. 2013 49 Global Arab Aviation AN AVIATION MARKET IN FOCUS: Oman Oman’s Domestic Market by Seat Capacity Deployed The Sultanate of Oman • Population: 3.86 million • Land area: 83,600 km2 • Number of passengers in 2012: 5.7 million passengers • Number of commercial airports: 10 airports (BYB, RMB, KHS, MSH, MCT, OMM, SLL, SUH, TTH, and WWG) Traffic Share between Oman and Other Regions • Omani-based airline: in 2012 8% 2% 1% 9% 42% Mid Asia Arab World Source: AACO, Innovata’s FlightMaps Analytics June 2013 Europe Australasia Top 10 routes by seat capacity to, 38% Route Seat Capacity* Sub Sahrain Africa from, and within Oman - July 2013 Americas Muscat - Salalah 254,421 The top 10 routes on the left account Dubai - Muscat 147,657 for 60.57% (0.76 million seats) of the Abu Dhabi - Muscat 77,206 total seat capacity scheduled to, from Source: AACO, IATA Aviation Policy: Doha - Muscat 67,195 and within Oman in July 2013. - Oman’s Public Authority for Civil Aviation (http://www.caa.gov.om/) is Bahrain - Muscat 56,081 the governmental body responsible for civil aviation in Oman. Mumbai - Muscat 48,856 - Oman applies an open skies policy. - Oman has ratified the Damascus Convention. Bangkok - Muscat 33,948 Delhi - Muscat 27,714 Oman aviation market links 54 cities worldwide* Chennai - Muscat 27,420 Muscat - Thiruva- nanthapuram 23,932 Source: AACO, Innovata’s FlightMaps Analytics * This includes seat capacity in both directions Airline Seat Capacity Oman Air (WY) 817,005 Top 10 airlines operating by seat ca- pacity to, from, and within Oman - (FZ) 50,274 July 2013 Qatar Airways (QR) 40,317 The top 10 airlines on the right offer Air India (AI) 32,742 almost 1.1 million seats (87.71% of the Emirates (EK) 32,356 scheduled seat capacity) to, from, and within Oman in July 2013. Jet Airways (9W) 29,946 Etihad Airways (EY) 28,728 Air-India Express (IX) 25,668 Source: AACO, Innovata’s FlightMaps Analytics July 2013 Gulf Air (GF) 24,924 * For a detailed view, please click on the image Air Arabia (G9) 24,900 Source: AACO, Innovata’s FlightMaps Analytics

Daily news on www.aaco.org Issue 78 - Sep. 2013 51 Global Arab Aviation WORLD NEWS Jordan’s Civil Aviation Regulatory Commission, IATA sign MoU:The Civil Avia- and North-Africa) posted 3.2% growth. tion Regulatory Commission signed a memorandum of understanding IATA on European airlines are constantly confronted with challenges that jeopardise a leading air cargo program IATA has launched. their profitability. 2013 is a crucial year for our members to overcome these challenges with the implemented cost-cuttings, capacity adjustments and rev- NASA offers FAA delay-reducing software for air traffic controllers:NASA enue improvements. offered the Federal Aviation Administration a prototype version of airplane Airlines once again exercised considerable capacity constraint. With total control software that will speed up air travel in the United States. The system scheduled available seat-kilometres growing by just 1.2%, less than half than works by helping controllers better time the moment they allow planes to de- the rate of RPK traffic growth, resulting in record-high passenger load factors, part from the terminal gate. up by 1.2% points to 78.8%. The new software is called Precision Departure Release Capability or PDRC. Cargo products carried both on all-cargo aircraft and in passenger aircraft belly Tests show that PDRC could help fill up to 80% of the slots in the constant space account for 10% of the total commercial revenue of European network overhead stream of air traffic that go empty because of timing on the ground. carriers. Air freight activity is facing serious challenges: it is still posting nega- The FAA already uses various tools to manage movement of planes on the tive performance with a decline of 0.2% but more recent monthly trend is ground as it tries to slot those planes into the air lanes overhead. showing signs of improvement. The new software will automate the process of deciding when a plane can be- Source: AEA gin taxiing toward a runway. It will be especially helpful in allowing controllers to react more quickly when conditions change because of weather or other U.S. Airlines achieve 2% profit margin in first half of 2013 and deliver solid issues. operational performance despite challenging weather and economic condi- tions: Airlines for America (A4A) reported the airlines achieved a 2% profit UK to green light high-speed aviation broadband by end of 2013: UK commu- margin during the first half of 2013, invested in the travel experience for cus- nications regulator Ofcom has launched a consultation process aimed at giving tomers and delivered strong operational results despite challenging weather the go-ahead for high-speed broadband for aviation. and economic conditions. A4A also recapped the industry’s environmental In a consultation paper, “Earth Stations on Mobile Platforms” (ESOMPs),- Of progress and commitments going forward. com sets out proposals for authorizing the use of ESOMPs in the UK. Ten U.S. passenger airlines – Alaska, Allegiant, American, Delta, Hawaiian, An ESOMP is a satellite earth station mounted on a mobile platform, such as JetBlue, Southwest, Spirit, United and US Airways – collectively reported a an aircraft, which uses the radio spectrum to provide broadband backhaul net profit of approximately USD 1.6 billion, up from USD 1.2 billion during the links via satellite. same period of 2012. Advances in stabilized antenna technology mean that the pointing accuracy of This translates to a net margin of 2.1%, also improved from the 1.6% margin earth station antennas, even if they are mounted on rapidly moving platforms, reported in the first half of 2012. enables them to track satellites in earth orbit. When the ESOMP is combined For the first half of 2013, airlines continued to reinvest this modest profitabil- with onboard access technology, it will allow broadband connectivity over ar- ity at a rate not seen since 2001, spending approximately USD 6 billion. Those eas where other technology is not available. investments included new fuel-efficient aircraft, seats and interiors, modern In addition, it will allow for greater broadband speed (as much as 10x the cur- airport terminals and customer lounges, expanded in-flight entertainment, rent speed), capacity and efficiency. mobile technology, Wi-Fi and gourmet meal offerings. Regulatory provisions are required for aviation because an aircraft-mounted U.S. passenger airlines’ operational performance remained strong in the first ESOMP operating in one country could cause interference to terrestrial sys- half of 2013, showing substantial improvement from the past decade despite tems operating in a neighboring country. numerous thunderstorm and weather events, as well as air traffic control de- Source: ATW lays resulting from federal budget sequestration. According to the Department of Transportation, 99.6% of passengers had their AEA: Passenger growth trend continues in the first half of 2013:In the first six bags properly handled. months of 2013, passenger numbers of the Association of European Airlines’ Also, U.S. airlines completed 98.3% of their flights, of which 78.1% arrived on (AEA) members increased by 2.9 million, a growth of 1.7% compared to the re- time. Consumer complaints fell to just 1.13 per 100,000 passengers. sults of 2012. Long-haul passenger traffic to and from Europe increased by 3%, A4A also reported on the significant advancements airlines have made in their while international short- and medium haul traffic (intra-Europe, Middle-East environmental and emissions reduction efforts. Carriers continue to reduce

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emissions even further through ongoing investments in new aircraft and en- International passenger markets gines, winglets and operational procedures in-flight and on the ground, among July international passenger traffic climbed 5.1% compared to the year-ago many other initiatives. And they are working to deploy commercially viable, period. Capacity rose slightly faster at 5.4%, causing load factor to slip 0.2 environmentally preferred alternative aviation fuels that will bring additional percentage points to 82.7%. Performance across all regions was positive. emissions reductions in the future. • Asia-Pacific carriers’July traffic was up 6.3% on a year ago. Capac- Ms. Young noted that the U.S. airlines improved fuel efficiency by 120% -be ity rose 6.6% and load factor dipped 0.2 points to 79.5%. The support for tween 1978 and 2012 – the equivalent of taking 22 million cars of the road growth at this rate is weakening. The region’s largest economy—China— each of those years. Further demonstrating their environmentally responsible continued to decelerate in the second quarter. With trade volumes in contribution to the nation’s economy, the U.S. airlines carried 16% more pas- emerging Asian markets shrinking by almost 5% over the first half of the sengers and cargo in 2012 than they did in 2000, while emitting 10% less car- year, the softness is not isolated to China. In particular, India’s near term bon dioxide (CO2). The airlines also reduced noise exposures by 95% between growth prospects are looking bleak. For the year we would expect perfor- 1975 and 2012 as enplanements grew 259%. mance to even-out around the 4.1% growth achieved year-to-date. Source: Airlines for America • European carriers recorded a 3.7% increase in demand compared to July 2012, in line with year-to-date growth although a significant de- JetBlue and British Airways connect networks:JetBlue Airways and British cline compared to June results (5.3%). The Eurozone emerged from its Airways announced an interline agreement to connect the carriers’ networks 18-month recession during the second quarter, giving grounds for cau- at New York’s John F. Kennedy International Airport (JFK), Boston Logan Inter- tious optimism for the region’s performance in the second half tempered national Airport (BOS), Orlando International Airport (MCO) and Washington by significant variations by country. Capacity rose 3.6% and load factor Dulles International Airport (IAD), creating new possibilities for travelers. improved marginally to 85.5%. • North American airlines’ international traffic rose 3.6% in July -ver IATA Figures - Solid demand growth continues in July:The International Air sus the same month last year, while capacity climbed 2.9%, pushing load Transport Association (IATA) announced that demand for air travel recorded factor up 0.6 percentage points to 87.4%, highest for any region. Latest another solid month of growth in July. Overall revenue passenger kilometers indicators show July business confidence reaching levels not seen since (RPKs) were up 5.0% compared to July 2012. All regions were up year-on-year, March, with consumer confidence also showing improvement at the end with emerging markets recording the strongest increases. Capacity rose 5.5% of the second quarter. on the previous July, ahead of demand, and industry load factor dropped 0.4 • Middle East carriers experienced the highest growth rate for any percentage points to 82.4%. region, with July traffic up 7.8% compared to a year ago. While this is Although July’s 5.0% performance was not as strong as June’s (6.1%), this a fall-off from even higher year-over-year growth in June (12.1%), part likely reflects both a market correction in line with prevailing economic condi- of the decline can be attributed to the timing of Ramadan, which has a tions as well as the impact of reduced travel in markets observing the Rama- dampening effect on demand. In 2013 Ramadan spanned most of July dan period. whereas in 2012, it occurred mostly in August. Capacity growth of 10.5% sent load factors down two percentage points to 78.3%. July 2013 vs. July • Latin American airlines posted year-on-year demand growth of RPK Growth ASK Growth PLF 2012 7.3%, almost perfectly aligned with capacity growth of 7.4%. The load International 5.1% 5.4% 82.7 factor slipped 0.1 percentage points to 82.4%, slightly below the indus- try average. Although Brazil continues to see inflation rising and domes- Domestic 4.8% 5.8% 82.0 tic demand weakening, this is being partly offset by strong expansion in Total Market 5.0% 5.5% 82.4 Chile and Colombia. • African airlines’ traffic traffic climbed 7.5% compared to July 2012, YTD 2013 vs. YTD second best among the regions, while capacity rose 5.6%, boosting load RPK Growth ASK Growth PLF 2012 factor 1.3 percentage points to 73.6%, still the lowest among the regions. International 4.9% 4.2% 79.2 Expansion in trade is driving the healthy rise in demand for air travel on the continent. Domestic 4.6% 4.0% 80.1 Source: IATA Total Market 4.8% 4.2% 79.5

Daily news on www.aaco.org Issue 78 - Sep. 2013 55 OUR PARTNER AIRLINES Partner Airlines

SPAIN TRAFFIC The Spanish air transport market grew by 0.2% in June 2013 over June 2012 in terms of number of passengers traveling to, from and within Spain, and is expected to contract in July 2013 by (4.6%) compared to July 2012. LATEST NEWS Shorthaul fleet order: International Airlines Group (IAG) has secured firm Monthly Passenger Numbers' Change in the Spanish Air Transport Market orders and options for up to 220 Airbus A320 family shorthaul aircraft - up to Aug 12 to Jul 13* comapred to same month in previous year 120 of these for its subsidiary Vueling. The new aircraft will enable the Bar- celona-based airline to replace some of its existing A320 fleet and expand its 10% business. 5% The Vueling agreement comprises 62 firm orders - 30 A320ceo and 32 A320n- 0% eo - plus 58 options. The firm orders will be delivered to Vueling between 2015 and 2020. -5% In addition, IAG has secured 100 A320neo options which could be used for -10% any of the airlines in the Group - British Airways, Iberia or Vueling - for aircraft -15% replacement requirements. IAG chief executive, Mr. Willie Walsh, said: “Vueling has managed to success- -20% fully expand its business profitably by targeting both growth markets and -25% those areas where weak competitors are reducing capacity. These new aircraft will enable Vueling to continue that expansion and replace some of its older fleet with modern, fuel efficient aircraft, leading to further unit cost reduc- tions. International Domestic “The benefits that the merger brings to all our airlines are highlighted once again. In addition to the Vueling order, we have also been able to secure a fur- Source: AACO, IATA *Estimated ther 100 A320neo options for all the airlines in the Group”. Looking at the Spanish market traffic flows, the international European market The Vueling firm orders are subject to approval by IAG’s shareholders. This or- represented in June 2013 74.0% of the total market, and is expected to shrink der will be reviewed alongside the recent IAG longhaul orders for Boeing 787s to 67.9% in July 2013. Traffic between the Arab world and Spain represented and Airbus A350s, at a shareholder meeting later in 2013. 1.6% of the total Spanish market in June 2013, and is expected to shrink to 1.5% in July 2013. Delisting of Vueling Airlines S.A.’s Shares:International Consolidated Airlines Passenger Numbers' Change in the Spanish Air Transport Market Group, S.A. (“IAG”), in compliance with section 82 of Law 24/1988, of 28 July, Apr13-Jun13 & May13-Jul13* compared to same period in previous year on the Securities Market, announces that following completion of the delisting 25% tender offer over the shares of Vueling Airlines, S.A. (“Vueling”) launched by 20% its wholly-owned subsidiary Veloz Holdco, S.L. (Sociedad Unipersonal), for its 15% delisting from the Stock Exchanges (the “Offer”), Vueling’s shares have been 10% delisted from the Barcelona, Bilbao, Madrid and Valencia Stock Exchanges ef- 5% fective 9 August. 0%

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

Apr13-Jun13 May13-Jul13*

Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 78 - Sep. 2013 59 Partner Airlines

In June 2013, Ryanair was the biggest carrier operating to, from and within Looking at the UK market traffic flows, the international European market Spain by number of passengers, boarding 2.97 million pax, which represented represented in June 2013 67.2% of the total market, and is expected to shrink a decrease of (5.9%) over June 2012 operations. to 64.5% in July 2013.Traffic between the Arab world and the UK represented 3.1% of the total UK market in June 2013, and is expected to grow to 3.2% of Top 15 Airlines Operating in the Spanish Market total traffic in July 2013.

Airline Jun-13 Growth Airline Jun-13 Growth Passenger Numbers' Change in the UK Air Transport Market FR 2,971,745 (5.9%) LH 323,884 6.3% Apr13-Jun13 & May13-Jul13* compared to same period in previous year 14% IB 1,492,317 (18.0%) DY 263,358 63.8% 12% U2 1,186,496 (12.5%) BA 219,750 33.2% VY 1,008,804 30.6% NT 218,394 13.1% 10% AB 975,298 4.2% DE 193,825 (2.2%) 8% UX 554,248 2.3% AF 192,403 (9.0%) 6% ZB 377,072 23.2% LX 191,817 19.5% 4% LS 351,625 20.2% Grand Total 13,003,435 0.2% 2% Source: AACO, IATA 0% Domestic UK TRAFFIC With Arab -2% With World With The UK air transport market expanded by 5.6% in June 2013 over June 2012 Australasia With the Europe With Mid -4% Americas with Sub in terms of number of passengers traveling to, from and within the UK, and is Asia Sahran expected to contract in July 2013 by (8.8%) compared to July 2012. Apr13-Jun13 Africa May13-Jul13* Monthly Passenger Numbers' Change in the UK Air Transport Market Aug 12 to Jul 13* compared to same month in previous year Source: AACO, IATA *Estimated

8% In June 2013, easyjet was the biggest carrier operating to, from and within the 6% UK by number of passengers, boarding 3.33 million pax, which represented a 4% growth of 4.1% over June 2012 operations. 2% 0% Top 15 Airlines Operating in the UK Market -2% -4% Airline Jun-13 Growth Airline Jun-13 Growth -6% U2 3,330,252 4.1% LH 386,638 4.2% -8% FR 2,968,774 7.9% KL 372,939 3.7% -10% BA 2,560,047 10.7% EK 325,158 13.1% ZB 673,728 22.8% W6 258,848 (5.8%) BE 658,103 2.0% UA 248,981 22.5% International Domestic LS 628,236 13.6% AF 234,812 10.0% Source: AACO, IATA *Estimated VS 451,017 2.5% DY 213,100 64.3% EI 416,210 11.4% Grand Total 16,857,229 5.7% Source: AACO, IATA

Daily news on www.aaco.org Issue 78 - Sep. 2013 61 Partner Airlines

Highlights on International operations Q1 FY’14 International operations accounted for 57% of total revenues USD 387.4 mil- lion. Our Revenue per RPKM on the international flights went up by 3.7% YoY. LATEST NEWS We achieved seat factor of 82% in Q1FY14.The EBITDAR margins are at 17.4% Jet Airways enhances its international network with the introduction of a in Q1 FY14 versus 17.0% in Q1 FY13, despite higher ROE impact of around 6% second service from Mumbai to Singapore: Jet Airways announced the intro- YOY. duction of a second daily direct frequency from Mumbai to Singapore. This Outlook new service effective November 1st, 2013. The new frequency into Singapore Q2 domestic traffic trends will reflect seasonality. The industry capacity will also make Jet Airways the only Indian carrier to operate six daily direct growth is expected to be very modest and this will result in overall yields and flights connecting Singapore with Delhi, Chennai and Mumbai. The airline will seat factors remaining stable for the balance part of the year. deploy a Boeing 737-800 Next Generation (NG) aircraft with ‘Sky interiors’ on International business continues to be strong with high seat factors. It will also this route. reflect high seasonality. The significant devaluation of INR and the resultant higher fuel prices, impact Jet Airways JetPrivilege inks partnership with The Mobile Store: Jet Airways’ of increases in airport charges by private airports remains an area of concern. JetPrivilege announced the launch of its partnership with The Mobile Store, This along with weak economic environment could affect the operating results offering new opportunities for its members to earn JPMiles. in short term. The MobileStore format is a one stop mobile solution shop that provides, Passing on high operating costs to the passengers fully in the short term may multi brand handsets, accessories, connections, repairs, VAS etc. all under one not be possible, especially because the current quarter is the weakest in terms roof and currently has over 900 outlets across 100 plus cities, covering every of seasonality. major town across India. The Mobile Store caters to the Indian consumer‘s Our relentless focus remains to keep discretionary costs to its bare minimum choice offering complete telecom solutions right from purchase of handsets, without compromising on safety, security and our quality standards. It will be data cards, connections to post purchase services like theft insurance, extend- our endeavor to improve route rationalization, aircraft utilization, enhance an- ed warranty. cillary revenues, and increase presence in direct channels of distribution. Equity infusion, replacing high costing debt through cheaper debt will help to Jet group reports operating profit of INR 5,299 million in Q1 FY14, despite deleverage Balance sheet. record high levels of indian rupee: The significant devaluation of INR, which Synergies in terms of network and costs will start to impact the numbers posi- crossed the psychological barrier of Rs. 60 versus the US dollar during the tively in the next few quarters. quarter, along with steep increases in Airport charges at key metros and high We have embarked on a 10 year network study which will identify long term fuel prices have impacted the results for the quarter. footprint and our future capacity deployment and orders will get determined However, higher yields and continued cost control measures helped Jet Group as an outcome. We have also commissioned a market research to determine post an operating profit of USD 89 million. where we need to grow over the next few years. The result includes an amount of USD 22 million on account of foreign ex- We believe that these initiatives along with the deleveraging of balance sheet change translation losses. and cost and network synergies will help us overcome these short term chal- The increases in payroll costs due to increments paid in March 2013 which lenges. amounts to USD 7.5 million impacted the numbers for this quarter while were not part of costs for last year Q1. The cancellation of certain long haul flights in Q2 and Q3 of FY 2013 meant that there were instances of aircraft on ground during the quarter. The impact of this was USD 21 million. The above impacts form USD 50.5 million of the losses for the quarter and if not for these, the operating results would have been strong for the quarter Highlights of Jet Airways domestic operations Q1 FY’14 Domestic operations accounted for 43% of total revenues USD 296.9 million. Revenue per RPKM (yields) was up by 7.7% vs. Q1 FY13. Passenger Load fac- tors for Jet Airways Domestic operations was 71.7% for Q1 FY14 and Capacity in terms of ASKMs was 3,189 million.

Daily news on www.aaco.org Issue 78 - Sep. 2013 63 Partner Airlines

INDIA TRAFFIC In June 2013, Indigo Airlines was the biggest carrier operating to, from and The Indian air transport market grew by 5.0% in June 2013 over June 2012 in within India by number of passengers, boarding 1.68 million pax, which repre- terms of number of passengers traveling to, from and within India, and is ex- sented an increase 24.06% over June 2012 operations. pected to grow in July 2013 by 7.0% compared to July 2012. Monthly Passenger Numbers' Change in the Indian Air Transport Market Top 15 Airlines Operating in the India Market Aug 12 to Jul 13* comapred to same month in previous year Airline Jun-13 Growth Airline Jun-13 Growth 6E 1,681,778 24.06% G9 138,943 16.47% 15% AI 1,187,179 7.22% QR 136,775 3.55% 10% 9W 1,108,349 (16.81%) SQ 125,351 10.08% 5% SG 1,099,239 15.49% TG 107,741 (2.17%) 0% G8 461,123 34.64% WY 101,522 29.01% -5% EK 412,816 (0.52%) LH 94,926 (3.98%) S2 349,543 (3.05%) SV 88,292 0.91% -10% IX 220,342 26.79% Grand Total 8,472,962 5.00% -15% Source: AACO, IATA

International Domestic Source: AACO, IATA *Estimated Looking at the Indian market traffic flows, the domestic market represented in June 2013 57.9% of the total market, and is expected to grow to 59.0% in July 2013. Traffic between the Arab world and India represented 17.1% of the total Indian market in June 2013, and is expected to grow to 17.7% of total traffic in July 2013. Passenger Numbers' Change in the Indian Air Transport Market Apr13-Jun13 & May13-Jul13* compared to same period in previous year 14% 12% 10% 8% 6% 4% 2% 0% Domestic -2% With Arab With World With -4% Australasia With the Europe Within Mid Americas with Sub -6% Asia Int'l Sahran Africa Apr13-Jun13 May13-Jul13* Source: AACO, IATA *Estimated

Daily news on www.aaco.org Issue 78 - Sep. 2013 65 Partner Airlines

LATEST NEWS Looking at the Turkish market traffic flows, The European market (internation- ’ first half consolidated financial al traffic between Turkey and Europe) was the biggest market. It accounted statements were reported: Turkish Airlines’ first for 43.7% of June 2013 traffic, and is expected to grow to 44.6% in July 2013. half consolidated financial statements were re- The domestic market was the second biggest market, accounting for 38.1% of ported to Borsa Istanbul. Compared to the same June 2013 traffic, and is expected to shrink to 37.5% in July 2013. On the other period of 2013, Turkish Airlines sales revenue increased by 23% reaching USD hand, traffic between the Arab world and Turkey represented 7.3% of the total 3.98 billion. Compared to the first half of 2012, overall net operating profit im- Turkish market in June 2013, and is expected to shrink to 6.3% of total traffic proved 192% to USD 212.92 million. Net profit decreased by 29% to USD 58.69 in July 2013. million, mainly due to currency translation differences and tax effect. Passenger Numbers' Change in the Turkish Air Transport Market During the first half of 2013, 22.4 million passengers were carried implying a Apr13-Jun13 & May13-Jul13* compared to same period in previous year 26% increase in passenger traffic. In response to the 21% increase in available 30% seat kilometers (ASK), revenue passenger kilometers (RPK) increased by 27%, 25% resulting in 3.4 points increase in passenger load factor which came to 78.9% systemwide. 20% In 2013, 15 new international and 5 new domestic routes have been launched, 15% bringing the total number of international lines to 196, total number of des- 10% tinations to 237 and the number of countries flown to 103. Turkish Airlines’ 5% fleet size as of mid-August is 232 aircraft. 0% Domestic Turkish Airlines adds a new route to the Asia Pacific region:Turkish Airlines With Ara b -5% With World With added yet another city and country to its Far East network. The capital and the Australasia With the Europe Int'l America s With Mid largest city of Nepal, Kathmandu, is joining the network on 1 September and Asia with Sub Sahran will be the 29th destination served in the Far East. Roundtrip flights between Apr13-Jun13 Africa Istanbul and Kathmandu will be operated 4 times per week. May13-Jul13*

TURKEY TRAFFIC Source: AACO, IATA *Estimated The Turkish air transport market in June 2013 grew by 14.0% over June 2012 in terms of number of passengers traveling to, from and within Turkey, and is In June 2013 , Turkish Airlines was the biggest carrier operating to, from and expected to contract in July 2013 by (9.4%) compared to July 2012. within Turkey by number of passengers, boarding 2.86 million pax, growing by 21.47% over June 2012. Monthly Passenger Numbers' Change in the Turkish Air Transport Market Aug 12 to Jul 13* comapred to same month in previous year Top 15 Airlines Operating in the Turkey Market 80% Airline Jun-13 Growth Airline Jun-13 Growth 60% TK 2,864,705 21.47% X3 76,976 (9.52%) 40% PC 1,029,935 14.21% U2 72,362 5.35%

20% 8Q 243,277 24.47% ZB 71,641 14.34%

0% XQ 200,917 1.67% SU 52,675 (19.62%) KK 177,726 8.67% J2 41,988 16.29% -20% AB 118,701 7.10% HV 39,142 9.59% DE 96,820 (6.12%) EK 34,180 2.42% LH 92,463 (11.58%) Grand Total 6,022,502 14.15% Source: AACO, IATA

International Domestic

Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 78 - Sep. 2013 67 OUR INDUSTRY PARTNERS NEWS Our Partners News

Amadeus, a leading technology partner for the global travel and tourism industry, has enabled travel agents to electronically book and issue tickets on Al Masria Universal Airlines, an Egypt-based private airline, for flights from Egypt to select cities in Saudi Arabia. The agreement ensures that all travel agencies connected to Airbus achieved initial EASA certification of its innovative Runway Overrun Prevention System (ROPS) the Amadeus system can access, book and sell AlMasria Universal Airlines flights from their Amadeus technology on A320ceo Family aircraft. This on-board cockpit technology, which Airbus has pioneered reservation platform. Amadeus users enjoy seamless, efficient and more convenient booking and ticket- over several years and is now in service on the A380, increases pilots’ situational awareness during land- ing workflows when selecting AlMasria flights, without the need to switch to an external application. In ing, reduces exposure to runway excursion risk, and if necessary, provides active protection. In March addition to enhancing airline content portfolio available in the Amadeus Selling Platform, the partnership this year American Airlines selected ROPS to equip its A320 Family fleet. will also contribute to expanding the airline’s distribution beyond its traditional channels and develop its presence in the Saudi Arabian market and beyond, optimising sales opportunities for the carrier. This EASA certification of ROPS on the A320ceo is the next step in making ROPS available for line-fit and AlMasria Universal Airlines operates scheduled flights from Cairo (Cairo International Airport) to Buraidah retrofit to other Airbus models including very soon the A320ceo with Sharklets, the A330 Family, and (Prince Nayef Bin Abdulaziz Regional Airport), Ta’if (Ta’if Regional Airport), (), Tabuk also the A320neo. ROPS was first approved by the European Aviation Safety Agency (EASA) on the A380 and Abha airports. It flies from Alexandria () to Jeddah (King Abdulaziz International in October 2009 and to date is currently in service or ordered on most of the A380 fleet. ROPS is also Airport). part of the A350 XWB’s basic configuration. Mr. Nashat Bukhari, General Manager of Amadeus Saudi Arabia, said: “Saudi Arabia plays a leading role in the MENA region. This agreement will allow us to offer quick and efficient services to our travel agencies. “Already in service on the A380, ROPS is the result of years of continuing research by Airbus,” said Mr. It will also strengthen Amadeus’ commitment to support its travel agency customers, providing them a Yannick Malinge, Airbus’ Senior Vice President and Chief Product Safety Officer. He adds: “This initial competitive edge by granting them direct access to the most relevant air content.” EASA certification for ROPS on the A320 Family is an important new step to offering the enhanced safety Launched in June 2009, Al Masria Universal Airlines has quickly emerged to become the first international benefits across all our aircraft and for the industry.” airline to operate flights to Saudi Arabia’s airports in Yanbu and Qassim. With world-class products and solutions coupled with investment in research and development to en- Runway excursion – meaning either an aircraft veering off the side of the runway, or overrunning at the hance the travel industry’s technology solutions, Amadeus has established itself as a leading player in very end – has become the primary cause of civil airliner hull losses in recent years, particularly as other the region. The company is currently present in the MENA region through 17 local Amadeus Commercial formerly prevalent categories of aircraft accidents have now largely been eliminated. Furthermore, vari- Organizations (ACOs) servicing 21 countries. ous industry bodies including the EASA, NTSB, Eurocontrol and FAA recognize this and are fully behind the introduction of effective measures by commercial aviation stakeholders to not only mitigate, but Regency Travel & Tours the largest and most prominent Travel Management Company in Qatar renewed eliminate the risk of runway excursions. their long term contract with Amadeus, a leading transaction processor and technology partner to the global travel and tourism industry. In line with this, Airbus is working to make ROPS commercially available for aircraft from other manufac- Owing to the partnership, Amadeus commits to continue provide cutting edge solutions to Regency Travel turers. The system will be coupled to the mandatory Terrain Avoidance Warning System already fitted & Tours. The successful adoption of these solutions, clubbed with decades of travel domain expertise, and will utilize an enhanced and specially developed version of its worldwide runway database. will enable Regency Travel & Tours to continue their impressive growth and add to their prestigious list of clients in the Qatari market and beyond. The Airbus-patented ROPS computes minimum realistic in-flight landing and on-ground stopping dis- Regency Travel & Tours services prominent and influential local and regional corporations such as govern- tances while comparing them to available landing distances in real time. The analyses take into account ment and semi-government agencies, universities, banks, multinational companies and a multitude of factors such as runway topography, runway condition, aircraft weight and configuration, wind and- tem SME’s. Being the leading Travel Management Company in the country, the company cultivates a culture perature. The resulting outcome produces audio callouts and alerts for pilots, making ROPS an aware- of innovation and excels at introducing new concepts and services to the market. The partnership with ness tool to assist the crew in the go-around decision making process and also the timely application of Amadeus not only introduces the latest tools and solutions but also includes Consulting and Custom IT retardation/stopping means on touchdown. solutions that will boost RTT’s productivity and enable to offer unrivalled customer service, efficiently catering to the complex travel management requirements of large governmental, Multinational and SME To regularly enhance the A320 Family’s capabilities and performance, Airbus invests approximately 300 organizations in Qatar and the region. As part of the ambitious growth plans, Regency Travel & Tours is million euros annually in keeping the aircraft highly competitive and efficient. More than 9,600 A320 also rapidly expanding into the online and mobile spheres. Family aircraft have been ordered and over 5,600 delivered to operators worldwide. With a record back- A special memento was presented by GM Amadeus Qatar; Mr. Wafiq Al-Wahidi to Regency Travel & Tours log of over 4,000 aircraft, the A320 Family reaffirms its position as the world’s best-selling single-aisle CEO Tareq Abdullatif Taha to celebrate the long standing and successful partnership and on being the aircraft Family. leading and exclusive producer of segments for Amadeus in Qatar, The Award was presented on 31st July Airbus - AACO Partner since 1997 2013. Both companies announced that they are now in full engagement to implement the latest tools, technologies and processes to enhance and power Regency into the next generation of innovation and outstanding customer service. Amadeus - AACO Partner since 2000 Daily news on www.aaco.org Issue 78 - Sep. 2013 71 Our Partners News

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

We are at the forefront of development of insurance, utilising our vast experience and international in- surance market knowledge to draft, negotiate and implement the most comprehensive and appropriate insurance programmes and risk management solutions that best suit our clients’ needs. Aon is the principal sponsor of Manchester United. Aon - AACO Partner since 2007 Air France Consulting, a wholly owned subsidiary of Air France is special- ARINC to be acquired by Rockwell Collins, Inc.: ARINC Incorporated an- ized in air transport consulting, training, management and reengineering nounced that it has entered into a definitive agreement to be purchased services. Air France Consulting calls on about 200 highly specialized international experts coming mostly by Cedar Rapids, Iowa-based Rockwell Collins, Inc. for USD 1.39 billion. The sale is expected to close later from Air France and the SkyTeam Alliance who have built a field proven experience and whose compe- in 2013, subject to customary regulatory closing conditions. tencies are recognized by the industry. Founded in 1929 as a communications provider for airlines during the emergence of commercial air Acting independently with flexibility, Air France Consulting proposes a comprehensive approach on key travel in the United States, ARINC has evolved into a leading provider of engineering solutions in the domains of the air transport such as operations, finance and commercial, maintenance, etc... whether to aerospace, aviation, airports, government, networks, security, transportation industries and public safety make you a diagnostic or audit, to set up new or improved processes driven by proven change manage- with products and services in over 150 countries worldwide. ment techniques or define a coaching and training program. Air France Consulting proposes a compre- hensive approach on how to optimize your processes and solve your concerns such as: Over 1,000 users from airlines and ground handlers chose ARINC’s AviNet® Mail during the first 6 • Safety and security of operations (EASA 145, M, 21, 147, IOSA, JAR Ops and FCL, SMS, ETOPS, months of 2013: ARINC Incorporated announced that over 1,000 users from airlines and ground han- IOSA Assistance, TRTO, Airline operations organization…) dlers have selected ARINC’s AviNet® Mail as their preferred messaging solution during H1 2013. • Drivers to reduce costs and increase revenues (Business Plan, Cost control, Network and Fleet, Revenue Management Pricing, Customer Relationship Management, E-business solutions, Fuel South African Airways renews and expands relationship with ARINC as its exclusive aircraft communi- conservation Program, ETS, Procurement process…) cations provider: ARINC announced that its long-term customer, South African Airways, has signed a 5 • Fleet Asset Management (specification, acquisition, lease, sales) and Repair Overhaul activities year exclusive data link contract for ARINC’s GLOBALink ACARS Services. This new agreement configures Management (MCC, line maintenance & operational regulatory support, maintenance IT support) ARINC for all VHF, HF and Satellite ACARS traffic. ARINC also provides cabin connectivity on South Afri- • Human resources and risks prevention optimization (Human factors, Crew management, Staff can Airways long haul flights. South African Airways cited ARINC’s superior service and technical support posting, Emergency response plan…) coupled with good commercials for the renewal. Air France Consulting shares the ambitions of its customers through customized solutions, thanks to a ARINC supports LOT Polish Airlines with successful integration of ACARS services for Boeing 787 Data flexible structure ensuring responsiveness and close proximity. For more information, please contact us Link pogramme: ARINC Incorporated announced that LOT Polish Airlines have chosen ARINC’s GLOBA- at: Telephone: +33 1 7425 4162, email: [email protected] Link ACARS data link program to provide the airline with the timely, accurate information that it depends Air France Consulting - AACO Partner since 2008 on every day for its new Boeing 787 Dreamliner aircraft. ARINC- AACO Partner since 2002

Daily news on www.aaco.org Issue 78 - Sep. 2013 73 Our Partners News

ATR approved for unpaved runway operations in Russia’s Siberia and Far East:ATR obtained the com- Bloomberg, the global business and financial information and news leader, gives decision makers a criti- pany’s receipt of fleet-wide approval for new generation ATR aircraft to operate from 3 more unpaved cal edge by connecting them to a dynamic network of information, people and ideas. runways in the remote parts of Russia. Russian Interstate Aviation Committee (IAC) delivered the approv- al in late June 2013. This certification brings to 4 a total number of runways already approved for use and The company’s strength – delivering data, news and analytics through innovative technology, quickly operations: Mys Kamenny, Lensk, Bodaibo and Igrim, the latest being certified in 2012. and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to more than 315,000 subscribers globally. Bloomberg Industries (BI) provides subscrib- The certification allows ATR aircraft to operate from gravel, dirt and grass strips. This significant upgrade ers interactive, continuously updated industry research and data. BI’s team of more than 100 research to ATR’s outstanding performance package was accomplished runway per runway, each of which had un- professionals covers over 100 industries globally, offering in-depth data and analysis for each industry’s dergone extensive and thorough operational expertise and testing performed by ATR engineering team. drivers, metrics, competitors, themes and earnings. The BI portal also aggregates information from more More unpaved air strips are being assessed to gain approval for ATR operations. than 200 third-party providers.

With this additional performance advantage, ATR aircraft are the only in-production foreign turboprops Regional Main Contact above 50 seats having received the certification for unpaved runway operations from IAC. Name: Mr. George T. Ferguson, IV, CFA Position:Senior Analyst Aerospace/Defense & Airlines With its expanded performance and the ability to operate from unpaved surfaces, ATR proves its com- Telephone: +1- 609.279.3591 mitment and enthusiasm to further invest in Russia’s high potential market. ATR turboprops aim to Email: [email protected] improve communications with Russia’s most remote regions where harsh environmental conditions and Website: www.bloomberg.com country’s vast territory make road transportation impracticable. Bloomberg - AACO Partner since 2013 ATR - AACO Partner since 1998

BOC Aviation reports unaudited first-half net profit of USD 163 million: BOC Aviation’s unaudited net profit after tax for the first six months to 30 June 2013 was USD 163 million, 57% higher than the same period in 2012. AWAS delivers one 737-500 passenger aircraft to Air Méditerranée:AWAS announced that it has deliv- During the first half, the company – which has been consistently profitable since it was founded in No- ered one 737-500 passenger aircraft from its existing portfolio on lease to well-established charter and vember 1993 – also exceeded USD 1 billion in cumulative net profit after tax since Bank of China (BOC) scheduled service airline Air Méditerranée. acquired the Company in December 2006. As of 30 June 2013, BOC Aviation’s total assets had increased to USD 9.9 billion after paying a dividend of USD 113 million for the first time to the Bank of China AWAS delivers one B767-300ER widebody to EuroAtlantic Airways:AWAS announced that it has de- Group. Cash stood at USD 680 million, and debt-to-equity was 4:1. livered one 767-300ER widebody passenger aircraft from its existing portfolio on lease to EuroAtlantic As of 30 June 2013, BOC Aviation had a fleet of 223 modern aircraft flying with more than 50 airlines Airways, based in Portugal. worldwide, comprising 198 owned and 25 managed aircraft, as well as 16 aircraft on committed -pur chase and leaseback with airlines. There were 30 new deliveries during the first half, including 10 aircraft AWAS to place a second new 737-800 aircraft with Sunwing Airlines:AWAS announced that it entered on purchase and leaseback agreements, a record for a six-month period. into an agreement with Sunwing Airlines to place a second new 737-800 aircraft on long-term lease with First-half highlights include leasing and delivering four new Airbus A320-200 aircraft to Vueling Airlines, the airline. This aircraft will come from AWAS’ existing new order pipeline. three Boeing 777-300ER aircraft to Thai Airways, and in a first for the Company, the delivery of two new Embraer E190 aircraft to Jetairfly, an airline subsidiary of TUI Travel PLC. AWAS and Volaris agree to the lease of two new A320 passenger aircraft:AWAS announced that it has The BOC Aviation portfolio is one of the youngest in the leasing business, with an average aircraft age of agreed to place on lease two new A320-200 passenger aircraft with Volaris in Mexico. Earlier in 2013 less than four years. The fleet is primarily based on the popular Airbus A320 family and Boeing Next Gen- Volaris became an AWAS customer when it acquired one A320 in the airline’s fleet from another lessor. eration 737 series as well as the Embraer E190 family aircraft. It also includes select wide-body types, such as the Airbus A330 and Boeing 777. AWAS adds Blue Panorama as new customer with the delivery of one B767-300ER widebody: AWAS “The Company will celebrate its 20th anniversary this year, having achieved two major milestones, ac- announced that it has delivered one 767-300ER widebody passenger aircraft from its existing portfolio to cumulating USD 1 billion in net profit after tax since the Bank of China acquisition and paying our first Blue Panorama Airways, based in Rome and Milan. dividend to the BOC Group in June,” said Mr. Robert Martin, Managing Director and CEO of BOC Aviation. AWAS - AACO Partner since 2013 BOC Aviation is 100% owned by Bank of China. BOC Aviation - AACO Partner since 2003

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Boeing Delivers First Next-Generation 737-800 to Iraqi Airways:Boeing CFM International statement on WestJet’s intent to purchase 65 Boeing 737 MAX aircraft: delivered a Next-Generation 737-800 to Iraqi Airways, the first of 30 that CFM International is pleased that WestJet Airlines has elected to sign a letter of intent with the airline ordered in 2008, marking a milestone in its relationship with Boeing and CFM to purchase 65 737 MAX airplanes powered by the advanced LEAP-1B the airline. With this delivery, Iraqi Airways currently has 29 Next-Generation 737-800s and 10 787. engine. The pending engine order, which consists of 40 737 MAX 8s and 25 737 MAX 7s, is Boeing forecasts increased global demand for airline pilots: Boeing projects the commercial aviation valued USD 1.7 billion at list price. industry will need more than one million new pilots and technicians to support the expanding demand for new airplane deliveries over the next two decades. Projected pilot demand is increasing worldwide, “We are thrilled that WestJet has chosen to make CFM and the advanced new LEAP engine an integral as is demand for technicians in some regions. part of its fleet modernization plans,” said CFM President and CEO Mr. Jean-Paul Ebanga. “This airline The Boeing outlook indicates that by 2032 the world will require 498,000 new commercial airline pilots first became a CFM customer in 2000. Since then, they have grown to be one of our bigger customers, and 556,000 new commercial airline maintenance technicians. operating more than 100 CFM56-7B-powered Next-Generation 737s. We have built a great relationship Projected demand for new pilots and technicians by global region: Asia Pacific – 192,300 pilots and with WestJet over the years and are looking forward to expanding that well into the future as we intro- 215,300 technicians; Europe – 99,700 pilots and 108,200 technicians; North America – 85,700 pilots and duce the LEAP engine to this fleet.” 97,900 technicians; Latin America – 48,600 pilots and 47,600 technicians; Middle East – 40,000 pilots and 53,100 technicians; Africa – 16,500 pilots and 15,900 technicians; and Russia and CIS – 15,200 pilots The foundation of the LEAP engine is heavily rooted in advanced aerodynamics, environmental, and and 18,000 technicians. materials technology development programs. The LEAP-powered 737 MAX will provide 13% better fuel Boeing rolls out first 787-9 Dreamliner: Boeing has completed the first 787-9 Dreamliner. The second consumption and an equivalent reduction in CO2 emissions compared to today’s most fuel-efficient member of the super-efficient 787 family rolled out of the Everett, Wash., factory to the flight line, single-aisle aircraft currently available, along with a 50% reduction in oxides of nitrogen emissions. All where teams are preparing it to fly later in summer 2013. this technology brings with it CFM’s legendary reliability and low maintenance costs. At 20 feet (6m) longer than the 787-8, the 787-9 will extend the 787 family in both capacity and range, carrying 40 more passengers an additional 300 nautical miles (555 km). The 787-9 leverages the vision- CFM - AACO Partner since 1998 ary design of the 787-8 such as its exceptional environmental performance — 20% less fuel use and 20% fewer emissions than similarly sized airplanes — and passenger-pleasing features. Boeing- AACO Partner since 1998 Air Tahiti Nui modernizes IT with CHAMP’s Cargospot:Air Tahiti Nui, French Poly- Engine Lease Finance Corporation (ELFC) extended its position nesia’s national airline, and the IT services provider CHAMP Cargosystems recently as the world’s largest independent aero-engine lessor in 2012 signed a contract for the implementation of the core business applications Cargospot with another record year of spare engine portfolio growth. Airline and Cargospot Revenue. They enable the carrier to embrace eCargo, better We maintained keen focus on spare engine support for our numerous customers in the MENA region exploit the cargo revenue and profit potential of its network, and deliver more value with further growth in short and long term engine lease support to airline members of AACO. to customers. We are very proud to play a support role in 2013 in the success of MENA airlines, large and small and will The French Polynesia’s flag carrier continually strives to optimize operations and enhance its service continue to offer our products during the coming year: quality. The leisure airline has thus decided to implement a cargo management system over their entire network. The aim is to fully automate all commercial and accounting processes that are cornerstones of • Shop Visit Cover – leasing of our spare engines into airlines to cover short term scheduled its commercial strategy. In addition, it wants to further improve the payload management, performance and unscheduled engine removals; efficiency, and commercial agility, and to speed up billing. The carrier opted for an integrated solution • Long term Engine provision – leasing our engines over several years to provide our airline and chose CHAMP’s Cargospot new generation application suite consisting of Cargospot Airline and -Car customers with cost efficient operation of spare engines, removing the capital intensive demand of gospot Revenue. spare engine acquisition; • Purchase-leaseback of engines owned by airlines. With the backing of our parent com- Cargospot applications have been rolled out to over 200 airlines, GSA, and GHA worldwide so far. They pany Bank of Tokyo-Mitsubishi UFJ. Ltd. we have the financial resources required to provide clear address the needs of all kinds of cargo operations – large or small, combination or pure freighter, LCC or financial and operational benefits for our customers. full service. Whilst the solutions are well proven they are being updated continuously and new functions are added in accordance with industry and legislative requirements. Thus Air Tahiti Nui benefits from the We have a wealth of experience to share – without obligation. joint expertise of the CHAMP Cargosystems community. For more information, please contact Senior Vice President Julian Jordan at e-mail: [email protected] CHAMP - AACO Partner since 2010 ELFC- AACO Partner since 2003

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Created in 1980, Institut Aéronautique & Spatial, non-profit association, is the French Aerospace Industry Association (GIFAS) international further education agency. IAS members are the major aeronautical & space com- panies such as EADS (Airbus, Eurocopter, MBDA, Astrium and ATR), SAFRAN GE Capital Aviation Services completes delivery of five leased Airbus A320s to Saudi Arabia’s nasair:GE (Snecma, Turbomeca, Labinal), THALES, Dassault Aviation, Aeronautical and Space SME’s. Capital Aviation Services Limited (GECAS), the commercial aircraft leasing and financing arm of GE, an- IAS mission is to develop a network of foreign partners, major actors in the aeronautical and space nounced delivery of five leased Airbus A320s to National Air Services Company (NAS Holding) to expand domain in their countries. IAS activities are focused on training engineering and educational solutions its nasair airline’s fleet. implementation. nasair operates a fleet of 22 aircraft to 24 domestic and international destinations. IAS site is located in Toulouse, city gathering: Airbus-company headquarters and main assembly lines; ATR company headquarters and main assembly GE Capital Aviation Services Asset Management Services introduces Boeing 777-200 to parts invento- lines; EADS Astrium Assembly plant; Thales Alenia Space Assembly plant and Head Quarters; Thales Avi- ry: GECAS announced the introduction of a new product for its Asset Management Services (AMS) parts onic Manufacturing plant; and CNES plant business … a current generation Boeing 777-200. Toulouse, 2nd university city in France, welcomes as well the main French Technical Institutes and uni- The 777-200 aircraft, powered by Rolls Royce engines, is currently being dismantled at GECAS AMS’ versities for aeronautical and space domain with whom IAS is working closely: teardown facility in the US. “This 777 acquisition complements our global growth strategy. Many of the ISAE (Institut Supérieur de l’Aéronautique et de l’Espace); ENAC (Ecole Nationale de l’Aviation Civile); components harvested off this aircraft will be located at our distribution warehouses in the UK and Sin- ENSEEIHT (Ecole Nationale Supérieure de l’Electronique, Electrotechnique, Informatique, Hydraulique, gapore. GECAS AMS is committed to positioning forward deployed support inventories for our customers Télécommunications); University Paul Sabatier; Toulouse Business School; etc… in these markets in addition to expanding our sales presence across the globe,” said VP Sales & Market- IAS main activities are synthesized as follows: ing Mr. Seamus O’Donnell. Master Program (for engineers, managers and future teachers); Modules Program (short training courses GECAS AMS, headquartered in Memphis, Tennessee, is one of the largest worldwide distributors of re- for technicians, engineers, managers, etc); Specific Training Projects for all type of partner. certified aviation components for Airbus, Boeing, and Bombardier aircraft. The parts trader has an inven- All IAS actions are mandated by IAS directorate and GIFAS : i.e. EADS, Safran, Thales, Dassault Aviation tory of 80,000 part numbers, located in warehouses in the U.S., Great Britain, and Singapore. and GIFAS SME’s GECAS - AACO Partner since 2003 www.inst-aero-spatial.org IAS - AACO Partner since 2008 GlobalCollect is the world’s premier Payment Service Provider of Jeppesen and Qatar Airways agree to Digital Charting and local e-payment solutions for international businesses globally. Electronic Flight Bag (EFB) service contract: Jeppesen and While most providers limit their services to a technical link with Qatar Airways have agreed to a five-year service renewal payment acquirers, for over 16 years GlobalCollect has been a full-service partner consulting clients on agreement that will provide the rapidly growing carrier with tailored electronic charting and Jeppesen how to increase transaction volumes, expand distribution channels, and reduce costs by streamlining FliteDeck Pro electronic flight bag (EFB) services to increase operational efficiency. The Doha-based- air back office processes. line will receive Jeppesen’s digital charting navigation solutions and paper chart revision services through the agreement. The agreement includes access to Jeppesen eLink for Windows which provides PC-based Through a single-interface online payment platform, we offer access to an unrivalled portfolio of local updated electronic terminal charts, documentation and other vital flight information. and international payment methods in over 200 countries, including all major credit and debit cards, di- Qatar Airways will also now integrate mobile Jeppesen FliteDeck Pro EFB service on iPads to increase rect debits, bank transfers, real-time bank transfers, eWallets, cash at outlets, prepaid methods, checks, situational awareness and will enhance Jeppesen FliteDeck Pro service on their EFB class 2 equipped and invoices. aircraft and Airbus 320 aircraft in the near future. In addition, Qatar Airways’ new Boeing 787s are equipped with Jeppesen EFB class 3 solutions. The new service agreement also outlines plans to en- Let GlobalCollect help you convert browsers into buyers and contact us today: Tel: +31 (0) 235671500 or hance Jeppesen EFB class 3 services for the airline’s current fleet of Boeing 777 aircraft. email: [email protected] Jeppesen to optimize Crew Pairing for JetBlue Airways:Jeppesen and JetBlue Airways recently agreed GlobalCollect - AACO Partner since 2007 to a new five-year service contract. Through the agreement, Jeppesen will provide its Crew Pairing solu- tion to optimize JetBlue’s monthly crew pairings for all pilot and in-flight crewmembers. Jeppesen’s crew pairing capabilities will be used to increase operational efficiency and enhance quality of life for -crew members, while reducing overall costs related to crew planning for JetBlue’s 850 daily flights. Jeppesen teams with Gosniias Research Institute of Russia to evaluate prototype integrated navigation solution:Jeppesen recently signed a five year agreement with GosNIIAS, the leading research center of the Russian aviation industry. Through the agreement, GosNIIAS will test and evaluate integration of a comprehensive, prototype Jeppesen navigation information solution with Irkut Corporation MC-21 pas- senger aircraft and related GosNIIAS integrated modular avionics (IMA). Jeppesen - AACO Partner since 2008 Daily news on www.aaco.org Issue 78 - Sep. 2013 79 Our Partners News

Kennedys is a growing international law firm with unrivalled expertise in litigation Solutions for passengers with disabilities & special needs: Whether or not an and dispute resolution. We have a network of over 1,100 people across the UK airline is required to comply with a fairness-in-access regulation, all airlines strive to and Europe, Middle East, Asia Pacific and Latin America. treat passengers equally and with dignity, respect, and courtesy. Every customer in- The firm’s aviation unit, Kennedys Aviation, has an exclusive focus on the aviation teraction with crew members, gate agents, reservation agents, customer service personnel, and baggage industry. This enables it to bring a depth and breadth of specific expertise from its team resources which handlers affects the overall travel experience and the image & reputation of an airline and airport. consist of a range of professionals who have worked in multiple areas of the aerospace industry both as Here are three resources every airline should incorporate in their standard policies and procedures. private practitioners and in-house counsel. Our driven team of experienced and highly regarded profes- Training: Through disability awareness training, carriers gain confidence their personnel will provide con- sionals specialize in providing legal solutions to a wide range of clients in the aviation industry. We are sistent, sensitive, proficient care to customers with disabilities & those with special medical requirements. able to advise on all aspects of aviation, commercial, regulatory and liability issues. The result: quality customer service and operational compliance. Specialized training is available based on In respect of liability issues, we have lawyers who have significant experience in dealing with major avia- specific roles and customer interaction of airport and airline personnel, including baggage handlers, pilots, tion losses and who are recognized as leading figures in the aviation sector. We are involved in handling flight attendants, reservation agents and airport customer service agents. Training provides staff the a wide spectrum of claims ranging from the legal aftermath of major air accidents through to carriage by knowledge and skill to adequately and sensitively assist customers with disabilities and/ or special needs. air issues involving EU regulations, the Warsaw and Montreal convention regimes. Our team has experi- Equipment: Personal Transfer Kits and movable disc boards help facilitate safe passenger transfers to/ ence of advising in relation to Insurance and Reinsurance policy interpretation and coverage issues; we from wheelchairs, onboard aisle chairs and passenger seats in tight or awkward transfer scenarios. Along have pursued multiple subrogated claims and where disputes arise have conducted numerous arbitra- with minimizing potentially painful or embarrassing passenger physical contact, passenger transfer equip- tions and mediations. Our focus is to provide practical advice to resolve contentious issues. ment oftentimes decreases the chances of injury to assisting personnel. We also have a regulatory team who specialize in advising airlines on the effect of international regula- Staff Resources: Airlines may also provide training to staff to improve customer service and conflict reso- tions and compliance in respect of these, including EU regulations and directives; the Chicago Conven- lution processes should they receive complaints from a passenger with a special need. Personnel learn tion together with IATA and ICAO recommended standards and practices. Our aircraft finance team skills to successfully resolve conflicts and review applicable regulations and regulatory reporting proce- deliver high quality/practical legal advice and our clients include airlines (from major airlines to start ups) dures. There are also phone-based services available to assist carriers with appropriate and compliant to private individuals and product manufacturers. Kennedys Aviation are here to provide answers, rec- responses to situations involving passengers with disabilities. ommendations, strategy and tactics. We deliver these in plain English and it’s what we call Legal advice The ultimate goal is always to provide a comfortable and respectful experience for all customers. in black and white. Kennedys - AACO Partner since 2011 Learn more: www.medaire.com/airlines MedAire - AACO Partner since 2008 mercator and United Airlines Cargo launch one of the largest cargo IT solu- tions:mercator and United Airlines have joined forces to migrate the airline’s cargo logistics and revenue accounting systems to mercator’s SkyChain and Successful strategies for every life-cycle-step of an airport: Airports of the world face many future RAPID Cargo solutions. It has created one of the largest cargo IT solutions in challenges, even in cases when they are well-positioned. Notably Asia is vastly expanding its airport the airline industry. The migration has helped United Airlines move away from around 20 legacy systems, infrastructure to ensure that business and leisure tourists can easily commute. Indonesia, in particular, is saving millions of dollars in operational costs. United Airlines expects to have over two million bookings preparing to build and relocate a total of 45 airports over the next decade in order to support the de- and 1.5 million air waybills every year on its more than 6,000 daily flights with over 700 aircraft that fly velopment of Indonesia’s aviation industry. Therefore, Jakarta was the perfect venue for the 2nd Annual to 10 major hubs and over 400 airports worldwide. South East Asian Expansion Summit, which took place from 28 - 29 August 2013. As United Cargo’s IT partner supporting over 20,000 users and 4,500 web customers, mercator signifi- cantly enhanced SkyChain and RAPID to improve mandatory requirements for the North American mar- The airports’ challenges can be anticipated and overcome through targeted strategic approaches. Luf- ket, which serves as a solid base for United Cargo’s expected growth. Such improvements include new thansa Consulting’s Managing Director and Partner Dr. Andreas Jahnke gladly accepted the opportunity features for six Customs authorities - US, UK, Nigeria, Korea, Mexico and Canada of which UK and US are to contribute to this important aviation industry event. He presented insights from a consultant’s per- directly interfaced with SkyChain. Other key features include Quick Pak functionality for small packages, spective about inspired strategies that make airports competitive and attractive to airlines. customization for the Cargo Portal Service (CPS), interaction with United’s Bag Tag System (BDS), & inclu- sion of TSA requirements. This evolution for United also included significant enhancements to streamlin- Click on the below link to access: ing IT systems and processes for a more efficient cargo operation. Your Business/Airports mercator implements Avantik in 29 days:Avantik has gone live with two key carriers, Antrak Air in Ghana and Alsie Express in Denmark in record time as mercator reduced the implementations time by Lufthansa Consulting - AACO Partner since 2010 25%. Alsie Express took just 29 days to reach Go-Live after project kick-off. Avantik’s integrated platform of passenger services will help both airlines to manage web-enabled reservation sales and inventory operations for internet, call center, sales office and airport departure and control functionality whilst benefiting from yield management tools, revenue accounting and planning applications. mercator - AACO Partner since 2003

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MTU Maintenance celebrates 1,500th CF6-80 engine overhaul: MTU Mainte- SpiceJet offers flexi travel solution through Optiontown:Spice - nance, the world’s largest independent maintenance provider for commercial Jet has tied up with travel solutions portal Optiontown to offer aircraft engines, has completed the 1,500th overhaul of a General Electric CF6- customers flexible travel options to purchase empty seats, make 80 engine. The engine was delivered to U.S. based operator US Air-ways with multiple bookings and switch flights while travelling on the airline. whom MTU is celebrating a 20-year business partnership this year. According to Dr. Stefan Weingartner, What is more is that customers with flexible travel plans can earn up to USD 22.78 by agreeing to swap President Commercial Maintenance at MTU Aero Engines, the maintenance of the CF6-80 is one of the their travel time or date from their scheduled travel time. Called the Flexible Reward option (FRo), a pas- company’s key services. The engine has been overhauled in Hannover, MTU’s first maintenance location senger can earn up to USD 22.78 by agreeing to fly on a different time and enabling the airline to make and centre of competence for medium to large aircraft engines, for almost 25 years. money by selling the seat to a last minute passenger. MTU Maintenance’s parent company, Germany’s leading engine manufacturer MTU Aero Engines, has The three other options - Empty Seat option (ESo), Multiple Booking option (MBo) and Preferred Flight been partnering with General Electric since 1972 when MTU produced the first parts for the CF6-50. The option (PFo) — can be availed at a nominal fee. Passengers with SpiceJet tickets can avail these services CF6-80 was included into the maintenance portfolio in 1989. Due to its long experience with the CF6-80, by registering on the Optiontown.com website. Optiontown provides its service to consumers of 15 air- MTU Maintenance has developed a number of innovative high-tech repair techniques which allow the lines globally. engine to stay on-wing longer and help customers reduce their maintenance costs. ESo would allow passengers on SpiceJet to fly with an empty seat beside one’s own by paying just USD The business partnership between MTU Maintenance & US Airways started in 1993 with a maintenance 3.78 for one seat and USD 6 for two empty seats. The sign-up fee for the service is USD 0.77. Airlines contract for the V2500. Since then, the airline has continued to be a customer with over 300 engines would not find it difficult to have empty seats on flights as the passenger load factor for flights ranges overhauled at the MTU Maintenance facilities. As a sign of their strong relationship, the two companies between 75% and 80%. This leaves around 20% of the plane empty to gain incremental revenues. have recently signed a five-year contract for the maintenance of US Airways’ CF34-10E6 engines. Under SpiceJet is the first Indian carrier to launch these options for Indian fliers. the contract, MTU Maintenance will maintain up to 44 engines for the airline’s Embraer E190 aircraft The other options include the facility to make multiple bookings and hold confirmed availability on ad- fleet. The engines will be serviced at MTU Maintenance Berlin Brandenburg, the group’s second largest ditional flights. The customer availing of the MBo service gets the right to decide, up to 24 hours before location and specialist on the CF34. A GE-branded CF34TM Service Provider, the Ludwigsfelde facility departure, the flight they want to fly. was the first maintenance organization worldwide within the network to handle and provide all three The PFo, in the meantime, gives the customer the chance to be moved to his flight of choice at a nominal versions of the engine (CF34-3, CF34-8 and CF34-10). It offers customers the full range of MRO support price. including on-wing services for all CF34 aircraft applications. MTU - AACO Partner since 2013 Optiontown - AACO Partner since 2011 Quali-audit is an independent Audit Organization (AO) accredited by IATA to conduct IOSA annd ISAGO audits. As Endorsed Training Organization (ETO), Quali¬audit provides IOSA auditorr training for operators. Conducting IOSA audits since 2006, and also with a large range of operational as- sistance and training for operators, our experts have worked in the continuity of the IOSA program. Our team now counts more than 56 auditors. For thee first semester, Quali-audit realized thirty IOSA audits, Does your airline let you tweet, text and talk? near than ten trainings and safety evaluation for operators in different regions. The IOSA program is now moving to a next level that will result in an even more effective evaluatioon OnAir’s customers do. We offer passengers seamlessly connected of operational safety and security practices, and add value to the IOSA experience for member airlines. journeys, year round, wherever you’re headed. In the transition, thee project is called Enhanced IOSA. Enhanced IOSA audit started this year with ten volunteer operators. Quali-audit will conduct two Enhanced IOSA audits near Air Moldova and Air India. Find out more here Quali-audit was selected to perform the IOSA audit of and Airways, mem- bers of the AACO. Our next training session in Paris CDG: ͳ Quality Auditor Training session will be held from 24th to 227th of September 20013 and from 266th to 29th of November 2013. OnAir - AACO Partner since 2009 ͳ IOSA Auditor Training (IAAT) session will be held from 30th of September to 4th of October 2013 and from 2nd to 6th of December 2013. ͳ Operational Management Training will be held from 18th to 22th of November 2013. Upon request, trainings can be realized on the operators’ premises. For any queries concerning Quali-audit, please contact our Business Manager, Mr. Joris DUTHEIL, E-mail: [email protected] , Tel: +33(0)1 74 25 41 88, Mob: +33(0)6 62 15 87 13 Quali-audit - AACO Partner since 2008 Daily news on www.aaco.org Issue 78 - Sep. 2013 83 Our Partners News

In addition, American Express customers will have click-to-call access to an American Express Business Travel expert via TripCase. A customer’s specific American Express service number is also incorporated into TripCase’s list of critical phone numbers, for easy access. The new integrated experience will be shown this week at both the Sabre and American Express booths during the GBTA Conference in San Diego.

Sabre Holdings announces leadership transition:Sabre Holdings announced that company President Mr. Expedia, Inc. and Travelocity announce strategic marketing agreement:Expedia, Inc. and Traveloc- Tom Klein is succeeding Mr. Sam Gilliland as the company’s CEO. Mr. Klein will serve as CEO and Presi- ity announced entry into an exclusive, long-term strategic marketing agreement, whereby Expedia will dent, while Mr. Gilliland will continue to serve on the board of directors. power the technology platforms for Travelocity’s existing websites in the US and Canada, while provid- Mr. Klein has been with Sabre for over two decades serving in a broad variety of leadership roles in Latin ing Travelocity access to Expedia, Inc.’s supply and customer services. Upon the implementation of the America, North America, and globally. He assumed the role of president of the company in 2010. agreement, Travelocity will focus its efforts on promoting its brand and marketing the broad offering of travel services and supply made available through this agreement. Travelocity will remain wholly-owned Sabre launches TripCase Corporate to create travel industry’s first consumer mobile app with corpo- by Sabre Holdings Corporation, and independent of Expedia, Inc. Travelocity-owned lastminute.com in rate integration:Sabre launched TripCase Corporate, the travel industry’s first set of integrated corpo- Europe and the Travelocity Partner Network are not included in this marketing arrangement. rate features on mobile, designed to improve travel programs for corporations, while also simplifying Both parties plan to begin development and implementation immediately, with an expected launch in business travel for employees. 2014. Using TripCase Corporate, travelers can make reservations outside their corporate travel program, and designate when a trip or part of a trip, such as a flight or hotel booking, is for business. This information Sabre receives Great Places To Work award as top IT employer in Brazil: Sabre has been named among is then captured and shared with the corporation through an easy-to-read dashboard. This makes it far the top 10 IT employers in Brazil with excellence in workspace and building career opportunities as part easier for travelers to manage their itinerary, make new bookings in and out of corporate travel policy, of the Great Places to Work Institute award. This new recognition results from an assessment conducted share their business travel plans with their company, and receive relevant in-app messages when travel- by the international consultancy “Great Place To Work,” and a survey to all employees in 1,000 participat- ing – all using one mobile app. ing companies.The content is commissionable and all promotions are also available to agents. Viking For corporate travel managers, TripCase Corporate will provide a better view of total travel spend, by River Cruises plans to add ocean voyages in 2015 and that inventory will also be available through Sabre capturing and analyzing travel data booked outside corporate travel programs. In addition to the data Cruises. collection and analytics, corporations can send employees customized messages, which help with secu- rity, duty of care issues and policy compliance. Sabre - AACO Partner since 2002 TripCase Corporate will be available through Sabre’s online booking tool, GetThere, and its resellers, and is one of the first elements of TruTrip, Sabre’s newly announced solution that captures travel data across multiple booking sources. Sabre has also created a set of development tools that will allow corporations to send information from multiple reservation sources and other types of trip information such as meetings, ground transportation and restaurant reservations into TripCase through a set of APIs. These same tools will allow corporations to extract information from the TripCase itinerary for custom reporting capabilities.

American Express and TripCase deliver a personalized mobile travel experience: Sabre and American Express are providing a more personal travel experience for American Express Global Business Travel clients through TripCase, Sabre’s award winning mobile travel app. Through this agreement, travelers from American Express clients can receive real-time flight updates and live, automatic syncing of itinerary information from American Express to the TripCase app. Because TripCase knows where the traveler is in the trip, American Express Corporate Cardmembers also receive relevant in-app messages about Card benefits and deals, such as airport lounge access and in-flight Wi- Fi. Whether an American Express Business Traveler books business trips online or on the phone, the reser- vation is automatically updated and reflected accurately within the TripCase app and website. In addi- tion, the integration makes it simple for business travelers to react to any last-minute changes.

Daily news on www.aaco.org Issue 78 - Sep. 2013 85 Our Partners News

Silverpop extends Engage’s powerful personalization capabilities to the website with the launch of Smart Content: Silverpop announced the launch of Smart Content. With this new feature, Silverpop customers, who Seabury is a global advisory group providing consulting, human capital, banking, restructuring, and IT are already able to deliver incredibly relevant and timely content via email, support, primarily to airlines. Seabury staff includes consultants and investment bankers as well as expe- can easily extend this level of personalization to their external website. When an individual visits the rienced former industry executives and technical experts. Seabury’s primary regional offices are located website, Silverpop technology recognizes them and, in real time, displays the right message within the in New York, London and Hong Kong. page allowing marketers to transform the web experience for their customers. Leveraging Silverpop’s single identity technology, Smart Content connects the marketing database and With more than 150 professionals across Consulting and Banking, Seabury has served over 75 airline the website, allowing for real-time, personal content to be written to the webpage as native HTML. So, clients through nearly 300 projects over the last five years. Our unique team structure sets us apart from unlike with hard coded and inflexible iframes, the Smart Content becomes a fluid part of the entire page other advisors. We integrate the analytics of top-tier strategy consultants, the functional depth of tech- experience and fits seamlessly within its design. With Smart Content on the site marketers can make nical experts, the financial acumen of top bankers and the experience of former senior executives. As a changes and launch new campaigns without reliance on IT. This can be as comprehensive as an entire result we hit the ground running and inspire trust in our clients by demonstrating expertise and under- section of content or as specific as a phrase or sentence. Smart Content works seamlessly with any CMS standing from the first day. and is compatible with responsive and mobile friendly design. The result is a significantly improved expe- rience for IT, the marketer and the customer. Seabury works with airlines to create enormous value: either on increasing revenue or reducing costs. Our current and past clients will testify to the impact we have made to their results: working closely and The Association for Data-Driven Marketing and Advertising (ADMA) announces Silverpop as its official cooperatively with an airlines’ senior teams. marketing automation partner:Silverpop was announced by The Association for Data-driven Marketing and Advertising (ADMA) as its official marketing automation partner. In a three- year partnership, Sil- Seabury - AACO Partner since 2008 verpop will provide digital marketing technology to the largest marketing and advertising association in Australia. SILVERPOP - AACO Partner since 2013

Shell Aviation supplies high quality products and services to the Saudia reaps the benefits of SITA’s IP telephony across 55 countries: aviation industry worldwide. Every day, at over 800 airports across SITA has installed IP telephony across Saudia’s international network, some 40 countries, Shell Aviation provides fuel for around 7,000 providing Saudi Arabia’s leading airline with significant savings by elimi- aircraft, refuelling a plane every 12 seconds. Our customers range from the private pilot to the largest nating international calls among its 151 offices around the world. The global airlines. new solution is part of the International Managed Converged Advanced Network program (IMCAN), a Since the birth of modern aviation, Shell has been committed to providing performance enhancing multi-million dollar, five-year, strategic project run by Saudia and SITA to implement a complete IP-based fuels and lubricants to the aviation community. In July 2009, Shell celebrated 100 years of innovation, IT infrastructure in all Saudia offices globally. To date, the airline’s offices in Europe, North America, based on Louis Blériot’s flight crossing the English Channel in 1909 using Shell fuel. Since this time, Shell South Asia, Asia-Pacific, parts of the Middle East and its domestic offices in Saudi Arabia are all connect- has played a crucial part in almost every landmark event for aviation. Shell was involved in yet another ed to each other over the SITA IP network. This means international calls among the airline’s offices no aviation first in October 2009 when a Qatar Airways aircraft travelling from London to Doha completed longer rely on public networks, which typically are more costly. the world’s first commercial passenger flight powered by a fuel from natural gas. Shell developed and The IMCAN program replaced more than 300 legacy leased lines and 5,000 desktops, printers and serv- produced the 50-50 blend of synthetic Gas to Liquids (GTL) kerosene and conventional oil-based kero- ers at 100 airports and city offices in 55 countries. One of the program’s key objectives is to provide a sene fuel. Over the last couple of years, Shell has been working with Airbus, Qatar Airways, Qatar Fuel platform that will enable Saudia to implement a wide range of business critical applications. This will Company, Qatar Petroleum, Qatar Science & Technology Park and Rolls-Royce to research the benefits of include a new passenger management system, which will allow Saudia to provide passengers with more using GTL Jet Fuel. Shell Aviation is focused on providing the aviation industry with a comprehensive and mobility services, such as remote check-in, mobile boarding passes and self-boarding. reliable supply network and the best possible customer service. In 2010, Shell Aviation signed several concession agreements to operate as a fuel supplier in more airports around the world. In 2011, Shell Malaysia Airlines to reduce fuel costs with SITA’S wind and weather service: Malaysia Airlines aims launched its new marketing joint venture (MJV) with Topaz, for the sale of aviation fuel in Ireland. to reduce fuel costs on 40 aircraft, including their A380 fleet, with SITA’s FMS Wind Uplink service. This Shell Aviation has received the Armbrust Award for Top Aviation Refueler Worldwide consistently over service constantly updates key Flight Management System (FMS) calculations, so the airline can adjust the past decade. We have been named the Best Aviation Fuel Provider at the Emerging Markets Aviation flight plans according to changing wind and weather conditions, enabling the aircraft to use fuel as cost Awards (EMAA) for two consecutive years (2010, 2011).Powered by its distinctive heritage in the indus- effectively as possible. During trials, Wind Uplink delivered savings of up to 600 kilograms of fuel on a try, Shell Aviation will continue with the same determination, ingenuity and vigour that have made it a single flight sector. world leader. Shell Aviation- AACO Partner since 2002 SITA - AACO Partner since 2008

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Travelport executes strategic growth with new airline agreements and strong financial performance: Travelport has reported a string of significant global airline agreements in the past month – all under- lining the GDS provider’s strong financial results in the second quarter of 2013. Most recently, Travelport announced a global full content agreement with Finnair – on of the leading car- riers in the Nordic region. The new, multi-year deal supports Finnair’s growth strategy, which continues to focus on strategically important premium traffic between Asia and Europe. “Travelport sees Finnair as an important, high quality airline partner and we look forward to working closely with them over the coming years,” commented Mr. Mathias Andersson, Head of Travelport’s Nordic Region. In addition, Travelport has also announced the implementation of French airline, Air Méditerranée, and Russian airline, Yakutia, into its GDS systems. For Yakutia, the new deal will give Travelport- connected travel agency customers in Russia, and world- wide, easy access to the Yakutia Sakha Republic-based airline’s published fares. The recent airline wins have contributed significantly to Travelport’s increasing global footprint – espe- cially as the GDS provider announced its financial results for the second quarter of 2013. Between April and June this year, Travelport has achieved several highlights including a new long-term full content agreement with Delta Airlines, and implementation of two further low cost carriers – Jet2.com and Nor- wegian – on its merchandising platform. Commenting on the financial results, Mr. Gordon Wilson, President and CEO of Travelport, said: “Our second quarter and first half 2013 results clearly demonstrate the momentum we have built around our new product innovation, successful delivery in all areas of our growth strategy and positive engagement with all of our customers.” Travelport - AACO Partner since 2000

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Daily news on www.aaco.org Issue 78 - Sep. 2013 88 Issue 78 - Sep. 2013 89 AACO & RTC CALENDARS AACO & RTC Calendars AACO CALENDAR AACO RTC CALENDAR

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8 9 10 11 12 13 14

8 9 10 11 12 13 14 15 16 17 18 19 20 21 AACO Future Distribu- Drafting and Evaluation of Interna- tion Strategies Task 67th Executive Committee tional Aviation Agreements Course Force (FDSTF) Meeting / Meeting / Abu Dhabi / Tunisia Abu Dhabi

22 23 24 25 26 27 28 15 16 17 18 19 20 21 Emirates Group Security AVSEC Symposium / Dubai 22 23 24 25 26 27 28 Station/Ground Handling Management / Amman 29 30 27 28 29 30 29 30 27 28 29 30

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3 4 5 6 7 8 9 6 7 8 9 10 11 12 AACO 46th AGM / Doha 13 14 15 16 17 18 19 10 11 12 13 14 15 16

17 18 19 20 21 22 23 20 21 22 23 24 25 26 Fuel Project - Tender 2014 - Negotiations Meeting / Casablanca Security Audits & Inspection (Quality Control) Course / Amman

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

For additional information, kindly contact Mr. Emad M. Abouzeid / Executive Click on the banner to register for attending this year’s AGM Director Training at [email protected]

Daily news on www.aaco.org Issue 78 - Sep. 2013 93 OUR MEMBER AIRLINES & INDUSTRY PARTNERS Our Member Airlines, & Industry Partners AACO MEMBER AIRLINES AACO INDUSTRY PARTNERS AACO member airlines were established in the following sequence: 1. Egypt Air (1932) 2. Iraqi Airways (1945) 3. Middle East Airlines (1945) 4. Saudia (1945) 5. Syrian Arab Airlines (1946) 6. (1946) 7. Tunis Air (1948) 8. Gulf Air (1950) 9. Air Algerie (1953) 10. TMA (1953) 11. (1954) 12. (1957) 13. Yemen Airways (1962) 14. Royal Jordanian (1963) 15. Libyan Airlines (1964) 16. Emirates (1985) 17. Nouvelair (1989) 18. Oman Air (1993) 19. Qatar Airways (1995) 20. Palestinian Airways (1995) 21. Tassili Airlines (1997) 22. (2000) 23. Afriqiyah Airways (2001) 24. Etihad Airways (2003) 25. Air Arabia (2003) 26. (2003) 27. Maximus Air (2005) 28. Petra Airlines (2005) 29. nasair (2006) 30. Rotana Jet Aviation (2010)

Daily news on www.aaco.org Issue 78 - Sep. 2013 97 References: About AACO: The Arab Air Carriers Organization “AACO”, established in 1965 The news included in this bulletin are collected from various sources as fol- within the framework of the Arab League of States, is the Regional Association lows: of the Arab Airlines who have their homebase in countries members of the AACO ATW Online Arabian Aerospace Arab League. IATA Innovata Arab News ICAO GreenAir Online MENAFN AACO’s Vision is to stand out globally as THE association that serves with dedi- EU institutions AMEInfo Arabian Business cation the Arab airlines and be instrumental in dealing with an evolving avia- Industry press releases Airports’ websites Gulf News tion industry. Khaleej Times Others... Where the news item was not based on various sources, AACO clearly men- AACO’s Mission is to serve the Arab airlines, represent their common interests tions the source. and facilitate, in a manner consistent with all applicable competition and other When the source is AACO, other parties may publish the information provided laws their cooperation so as to improve their operational efficiencies and- bet by AACO, but with reference to the source. ter serve the travelling public. Definitions: AACO’s Objectives: 1. Geographical Areas: • To support the Arab airlines’ quest for highest safety and security stan- Americas: Includes North, Central, and South American countries. dards. Mid Asia: Includes the following countries: Bangladesh, India, Iran, Afghani- • To support the Arab airlines’ quest for developing their environmental poli- stan, Pakistan, , Nepal, Maldives. cies for processes in harmony with the environment. Australasia: Includes the following countries: China, Hong Kong, Malaysia, Tai- • To actively contribute in the development of human resources. wan, Myanmar, Cambodia, Vietnam, Philippines, Singapore, Thailand, Japan, • To interact with the regulatory bodies to support and protect the interests Indonesia, Australia. of the Arab airlines. Europe: Includes the European countries. • To launch and serve joint projects between member airlines with the objec- Arab World: Includes the Arab countries. tive of embracing best practices to assist the airlines in serving their cus- Sub-Saharan Africa: Includes the African countries except Arab countries in tomers within strict adherence to competition laws. North Africa which are: Egypt, Sudan, Libya, Tunisia, Algeria, and Morocco. • To provide forums for members and for industry partners to enhance the knowledge base and improve cooperation amongst them. 2. Abbreviations: • To reflect the positive image of The Arab Airlines Globally. RPK: Revenue Passenger Kilometer ASK: Available Seat Kilometer. PLF: Passenger Load Factor. RTK: Revenue Tonnes Kilometer. ATK: Available Tonnes Kilometer. 85 Anis Nsouli St., Verdun WLF: Weight Load Factor. For any comments or suggestions, please e-mail: P.O.Box: 13-5468 Mrs. Manal Fares 2044-1408 Beirut– Lebanon 3. All statistics in this bulletin represent the absolute number of passengers Manager - Industry Affairs unless mentioned otherwise. [email protected] Phone: 00961-1-861297/8/9 [email protected] Fax: 00961-1-863168 4. Connotations: Or To and From the Arab world: indicates traffic between the Arab world and Mr. Rashad Karaky other world regions. Manager - Economics, IT & Technical Management Within the Arab world: indicates traffic within the Arab world region [email protected] To, From, and Within the Arab world: indicates the sum of the above

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