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Official Monthly Bulletin of AACO

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Official Monthly Bulletin of AACO Issue 87 - Jun 2014 Official Monthly Bulletin of AACO Arab world marks an increase of 7.7% AVIATION WITHIN THE ARAB WORLD GLOBAL ARAB AVIATION in April 2014 in international passenger numbers - p. 7 GROWTH p: 10 SPREADING OUT p: 26 PARTNER AIRLINES p: 52 - 65 IATA members set out steps needed to ARAB AIRLINES ECONOMICS p: 11 TOURISM p: 34 INDUSTRY PARTNERS p: 66 - 89 tackle problem of unruly passengers - p. 38 EXPANSION p: 13 COLLABORATION p: 36 AACO & RTC CALENDARS p: 90 - 93 LAURELS p: 15 ENVIRONMENT p: 37 AACO MEMBERS & PARTNERS p: 94 - 97 IATA AGM addresses aircraft tracking TECHNOLOGY & E-COMMERCE p: 16 REGULATORY TONE p: 38 options - p. 46 TRAINING p: 16 AN AVIATION MARKET IN FOCUS: JORDAN p: 44 MRO p: 18 WORLD NEWS p: 46 ARAB AIRPORTS p: 20 ATM p: 22 Daily news on www.aaco.org Issue 87 - Jun 2014 A very interesting year has enhance the ability to track and trace aircraft. passed since the last IATA AGM when the industry was working This year, while the 70th IATA AGM in Doha held earlier in June cel- towards a global solution for cli- ebrated the centennial of commercial flight, IATA members have built mate change, calling for harmo- on the issue of dealing with unruly passengers by adopting a resolu- nization of regulations especially tion that calls on governments and industry to work together on a passenger rights regulations and balanced package of measures to effectively deter and manage the giving support to the New Dis- significant problem of unruly air passenger behavior. In brief the IATA tribution Capability. Since then, resolution, in addition to calling on governments to ratify the new ICAO’s States agreed to report protocol adopted in Montreal, agreed on core principles that include back in 2016 with a proposal for calls for: Industry a global MBM scheme capable • Airlines to ensure that they have in place corporate policies and of being implemented by 2020 appropriate training programs for cabin crew and ground staff to Highlights to tackle the impact of aviation enable them to prevent or manage disruptive passenger behavior, on climate change. At the same including at check-in, during security search, and at the gate. time, ICAO states agreed to de- • Governments and airlines to raise awareness of the consequences from Doha velop core principles on passen- of unruly behavior ger rights that would be used by • Airports and airport concessionaires such as bars and restaurants states as guidance in an attempt to implement procedures that could help prevent unruly behavior to harmonize such regulations on flights. amongst states. ICAO has as well witnessed in a Diplomatic con- At the AGM as well, IATA announced new pilot programs to test the ference the official adoption of New Distribution Capability (NDC) schemas. First-time pilot partici- a Protocol to amend the 1963 pants include Aeroflot, Aer Lingus and Qatar Airways, while JR Tech- Tokyo Convention on offenses nologies (JRT) is conducting its second pilot. committed on aircraft. As for the NDC, the US DoT has finally given Separately, IATA confirmed that the Aircraft Tracking Task Force (ATTF) tentative approval to Resolu- expects to be in a position to deliver draft options for enhanced glob- tion 787 which is the foundation al aircraft tracking to the ICAO in September, leading to presentation for the NDC. Separately, an ad- to the industry before year-end. This Taskforce was established under ditional event has made the in- ICAO framework following a special meeting on Global Flight Tracking dustry refocus efforts on an issue of Aircraft. that was considered a done deal and that is the ability of tracking Among the messages of the industry at the IATA AGM was the need an aircraft. The disappearance of to harmonize regulations in order to avoid confusion for both airlines MH370 has triggered an industry and passengers. While the industry is calling for harmonization of wide collaborative effort to regulations, individual uncoordinated regimes still emerge especially Daily news on www.aaco.org Issue 87 - Jun 2014 5 in the area of passenger rights. Last month, the US Dot proposed ad- OVERALL TRAFFIC - ARAB WORLD ditional consumer protection rules for air passengers. A 118-page document that consults stakeholders on how airlines should deal with We estimate international passenger numbers to, from, & within the their customers, what and how to display content, and other issues Arab world to have increased by 7.7% in April 2014 compared to April that fall within the interaction of airlines with their customers and on 2013, which follows an increase of 7.3% in March 2014 compared to issues that differentiate services of one airline compared to another. March 2013. This is the 3rd update on consumer rules in the US since 2009. Mas- Monthly International Passenger Numbers' Change To, From and Within the Arab World sive penalties have been imposed on a large number of airlines under May 13 to Apr 14* compared to same month in previous year the consumer rules II since its adoption in 2011. This is in addition to the compensations that airlines are paying to passengers in cases of 20% delays and cancellation for reasons that most of the time fall out of 15% the control of the airlines. A similar situation is seen in the EU under 10% the EU passenger rights regulation that is as well undergoing a revi- sion that includes a number of issues that will have adverse effects on 5% connectivity. 0% The efforts of the industry in a nutshell aim at serving the customer in -5% a better, safer, and more appealing way. Be it through developing new Effect of Ramadan technologies for safety, making the customer’s rights clear to him/her, Effect of Adha Cyclicality enhancing his/her travel purchasing experience, or ensuring his/her YoY Growth 12-Month Average Growth comfort through more control on unruly behavior of passengers. Source: AACO, IATA *Estimated Jordan is our country of focus for this issue of the Nashra. With a pop- In April 2014, AACO members increased the number of their offered ulation of 7.9 million people, 5.56 million passengers used Jordan’s seats to, from, and within the Arab world by 18.8%, while other air- airports in 2013, which links 67 cities worldwide. The highest share of lines decreased their number of seats offered by (11.1%), leading to traffic from Jordan was with the Arab world, noting that the Amman- 10% year-on-year increase in the total number of seats offered. Dubai route witnessed the highest number of seats offered from Jor- dan in April 2014. More details are available on Page 44. Daily news on www.aaco.org Issue 87 - Jun 2014 7 AVIATION WITHIN THE ARAB WORLD Aviation in the Arab World GROWTH PASSENGER TRAFFIC Monthly International Passenger Numbers' Change Within the Arab World International passenger numbers within the Arab world are estimated to have May 13 to Apr 14* compared to same month in previous year increased by 1.8% in April 2014 compared to April 2013 following an increase of 11.3% in March 2014 over March 2013. 20% Passenger traffic within the Arab World Apr 14* over Apr 13 15% Within Arabian Peninsula 6.8% 10% Within Near East (11.5%) Within North Africa 30% 5% Between Arabian Peninsula & Near East (2.2%) 0% Between the Near East and North Africa (1%) Between Arabian Peninsula & North Africa (7.4%) -5% Source: AACO, IATA *Estimated Effect of Ramadan Effect of Adha Cyclicality International Passenger Numbers' Change Within the Arab World Jan14-Mar14 & Feb14-Apr14* compared to same period in previous year YoY Growth 12-Month Average Growth 35% Source: AACO, IATA *Estimated 30% ARAB AIRLINES ECONOMICS 25% Etihad Airways lifts stake in Virgin Australia to 21.24%: Etihad Airways upped 20% its stake in Virgin Australia to 21.24% on 19 May 2014 following regulatory ap- 15% proval by the Australian Foreign Investment Review Board (FIRB). Source: Gulf News 10% 5% Air Arabia first quarter 2014 net profit soars to USD 20.42 million, up 27%: Air Arabia announced on 13 May its financial results for the three months 0% ending March 31, 2014. Air Arabia reported a net profit of USD 20.42 mil- within within N lion for the three months ending March 31, 2014, representing an increase of Arabian within N East N East 27% compared to USD 16.06 million reported in the corresponding quarter Pen Africa Arabian N East N of 2013. In the first quarter of this year, Air Arabia posted a turnover of USD Jan14-Mar14 Africa N Africa Pen Arabian 225.16 million, an increase of 14.5% compared to USD 196.57 million in the Feb14-Apr14* Pen same period of 2013. Source: AACO, IATA *Estimated The airline served 1,630,000 passengers in the first quarter of 2014, an in- crease of 12% compared to the 1,450,000 passengers carried in the same Passenger numbers within the Arab world reported a 14.6% growth between period of last year. The airline’s average seat load factor – or passengers car- January 14 & March 14 compared to same period in the previous year. ried as a percentage of available seats – during the first three months of 2014 stood at an impressive 81.5%. Passenger numbers within the Arab world reported a 9.9% increase between The first quarter of 2014 witnessed Air Arabia announce the formation of a February 14 & April 14* compared to same period in the previous year. second hub in the UAE and fourth worldwide.
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