Dubai2006

BRINGING YOU THE NEWS FROM ROUTES DUBAI NETWORKING FORUM – DAY TWO: MONDAY 18 SEPTEMBER Saudi open sky is good for all

If Saudi Arabia adopts an open skies $32.7 billion in the new Dubai World policy it will benefit the whole of the Central airport. Middle East, said HH Sheikh Ahmed “Some of these projects are underway bin Saeed Al Maktoum, president of and some will be revealed over the next Dubai Civil Aviation (DCA) and chair- decade. What we have spent for this man of Emirates Group. sector will change the face of civil avia- Speaking at a press conference at tion and logistics around the world,” he Routes, Sheikh Ahmed said that said. “And I can say that the best is yet Emirates had “never had any problems” to be.” with Saudi Arabian civil aviation Asked about the delays to delivery of authorities. the Airbus A380 “superjumbo” – “If an open skies policy comes to Emirates has 45 on order – Sheikh Saudi Arabia it will have a positive Ahmed said the has not consid- effect on the whole region and not just ered cancelling the order. “If we want to Saudi Arabia,” he said. come out of this order we can do it Dubai, which has built a world-class today. But we never really went that aviation hub on the back of an open far.” skies policy, has not yet fulfilled all of With the ICAO global symposium on its ambitions in the aviation and aero- air transport liberalisation being held at space sectors, he added. the same time as Routes, Sheikh Ahmed The emirate is investing around 300 was asked about Emirates’ thwarted billion Dirhams ($81.75 billion) to attempts to increase flights to Australia. develop aviation and aerospace, from “We are happy with Australia,” he $27.2 billion in the Emirates fleet to said. “We have 49 flights a week to Australia. We have always found them fair.” Routes’ formal adoption of the Orbis Flying Eye He said he hoped that the open skies Hospital charity paid dividends yesterday with the philosophy would spread further first donation from a delegate to this year’s forum. around the world. “When two countries Naji Al-Ajmi, right, chief executive of National have open skies policies, then any meet- Aviation Services of Kuwait, presented Pam ing on a new bilateral will take two or Williams-Jones of the sight-saving charity with a cheque for $3,000, assisted by NAS business devel- three minutes. Without open skies poli- opment manager Adila al Afla. cies, it will take much longer.” ■ Newark gets thumbs up from The Gulf’s leading aviation lights, Sheikh event. Al Baker, who is here to help show- Ahmed bin Saeed Al Maktoum (right), and case Qatar’s plans for the New Akbar Al Baker, shared a friendly word yester- International Airport, said he hopes to day at Routes. begin services with his carrier’s newly deliv- Al-Baker, the chief executive of the Qatar ered -600s to ’s Airways group and Doha international air- Newark Airport in the first quarter of 2007. port, greeted his counterpart from Dubai, By then the carrier will have taken delivery who is the chairman of Emirates Group and of four A340s. president of Dubai Civil Aviation, as Sheikh Al Baker said he prefers Newark with its Ahmed conducted a tour of the exhibition convenient rail link to downtown New York hall following the formal opening of the over “congested” JFK.

INSIDE TRACK

inshort Low-cost carriers Ryanair eyes Russian routes Following the introduction of its longest route yet to , fire a broadside Ryanair has turned its eyes back to AT LAST WEEK’S WORLD LOW oly. It undermines the competi- the east of , more specifi- Cost Congress in tiveness of the industry. cally Russia. According to its head , chief executive after Neighbouring airports must have of new route development chief executive lined up to take a different owners.” Bernard Berger, the carrier is inter- swipe at what they see as an Airport charges were also under ested in launching service to St increasing evil – airports. attack. “Airports need to lower Petersburg as well as other Europe’s low-cost carriers are costs and offer a better experience Russian cities. “Our plans would ever more vocal in their opposi- from a social perspective. At the depend upon airport costs,” says tion to what easyJet’s Andrew moment it is a worse experience Berger, as well as gaining the Harrison described as airports than ever,” complained Harrison. appropriate bilateral agreements that are “overbuilt and incen- He was less than impressed with Russia. tivised to gold plate” and cited with the new Berlin airport devel- both London Stansted and opment plans too. “Such plans EasyJet’s Andrew Harrison voices LAB restarts Europe service his opinions about airports. Berlin’s planned new airport as need huge investment – and this Troubled Bolivian carrier LAB offenders. is a threat to the low-cost carrier,” Kwiatkowski saw as providing an Airlines has restarted direct servic- When asked his reaction to the he warned. Berlin Airports Group inefficient, costly and poorly es from Madrid to Santa Cruz, purchase of UK airport operator denied that grandiose plans for staffed service. Bolivia, after acquiring a Boeing BAA by ’s Ferrovial, easyJet’s the new facility would drive up “Warsaw is overpriced,” he 767-200. LAB suspended services chief executive insisted that “any costs. “There will be no marble, says. “We would move if the deal between Madrid and Santa Cruz change in the UK would be good no gold, just low fees,” it insists. was good.” He says the carrier has temporarily when accumulated change”. Mike Rutter, chief oper- Warsaw airport also came had offers from other Polish air- debt with lessor Pegasus Aviation ating office at flybe, agreed: “We under fire for what centralwings ports eager to snap up the busi- forced it to return its two 767- must break up the airport monop- chief executive Maciej ness. 300ERs. The scheduled services are currently twice weekly, but could Delta scoops New York-London rights from increase to three times weekly. United Airlines has sold its New York-London route pairs of slots at Gatwick but only uses four – three for Korean Air branches out authority to rival Delta Air Lines, leaving the Star Atlanta and one for Cincinnati – and is reducing its Korean Air is expanding its cargo Alliance without any presence on the most important Atlanta service to double-daily to make room for dou- operations with the addition of transatlantic sector. Delta will acquire United’s rights ble-daily flights to JFK. twice-weekly direct flights to operate up to three daily flights between New York The carrier has long eyed New York-London to between Incheon, Korea, and and London. But the SkyTeam carrier is unable to buy complement its fast-growing transatlantic line-up Stockholm, Sweden. The move is any of United’s excess Heathrow slots because the from JFK, where it now operates 21 routes to Europe part of Korean’s expansion of its current UK-US bilateral limits Heathrow access to including Edinburgh and . JFK-London cargo services, with the introduc- American Airlines and United. has been a missing link in Delta’s route portfolio since tion of routes to Chennai in Delta will initially operate one daily frequency 1991, when it acquired Pan American’s continental February, Seattle in June and between New York JFK and London Gatwick from 15 European route network. in July. This move ties in November. The US Department of Transportation in United will continue to serve Heathrow from with the airline’s new programme August gave Delta approval to begin selling seats on Chicago, Los Angeles, San Francisco and Washington. to convert -400 passen- the new service. Delta plans to add a second frequen- Its decision to abandon JFK-Heathrow is part of an ger aircraft into freighters. Korean cy from 1 May 2007, but to operate a third would overall strategy to focus more on international flights hopes to increase its fleet of 18 require more slots at Gatwick. Delta now holds five that connect with its major hubs. freighters to 30 by 2010.

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Daily editorial team Andrea Crisp Distribution The Daily News team can be Editorial head office Mark Pilling George Lowrie contacted at Dubai Room B, Quadrant House, The Quadrant, Alan Peaford Editorial Assistant level 1, outside the Sheikh Sutton, Surrey, SM2 5AS, UK Jackie Thompson Andy Costerton Advertisement sales Maktoum Hall at the Routes Tel: +44 208 652 4996 Mike Martin Robert Hancock event. Telephone: (+9714) Fax: +44 208 652 8914 Layout & production Shawn Buck 331-1408 email: e-mail: airline.business@flight- Contributors Andy Forrester [email protected] global.com Brendan Sobie Printed by David Field Photographer Atlas Printing Press LLC © Airline Business 2005 Visit us on the web Mike Miller Ian Billinghurst Dubai www.airlinebusiness.com Fabrice Tacoun

AIRLINE BUSINESS @ ROUTES 18 September 2006 3 fidn-sep-18-06-p004abig-sep-00-06-p004 1 1 22/8/06 13/9/06 1:45:31 4:17:52 pm pm EXHIBITOR NEWS

‘OPEN AREA’ Keeping it simple is BENEFITS CONSUMERS key to profit says LCC The planned open aviation area between the United Over-engineered and over- States and the European elaborate airport facilities are Union could create €5 bil- under attack from the new lion ($6.3 billion) in con- generation of “pare it to the sumer benefits, Klaus Geil of bone” low-cost carriers (see the European Commission’s story Page 3). Directorate-General for Easyjet has been as vocal as Energy and Transport said at any and the theme was con- Routes yesterday. tinued by the carrier’s airport “Since the US and EU mar- development manager Nigel kets represent 60% of world Fanning at Ernst & Young’s traffic this agreement could airport infrastructure presen- have wide implications,” he tation at Routes yesterday. told delegates. “It provides Fanning considers the need major new opportunities. An to “pass on the pricing pres- open aviation area could cre- sure felt by airlines” as a main ate 5 billion in consumer challenge for the low-cost benefits. It is more than market over the next five to open skies because it has the 10 years. “There are still many bonus of regulatory conver- examples of prestige develop- Tim McDermott – we gence.” ment in Europe,” he adds. need sophisticated Geil said that the EU was London Stansted is a prime yield model. now building on its highly culprit, despite 40% of its traf- successful internal harmoni- fic coming from low-cost car- sation and deregulation pro- riers, it has a £2.5 billion gramme and seeking to cre- expansion planned, “facilities ment model. “We need to ask gambling at the airport. “We ate new aviation relation- that are neither needed nor ourselves ‘What is the product are all trying to up-sell right ships further afield. wanted. All we want is a tin we can build and the airlines across the travel chain,” says Discussions are underway shed and access to our air- will be prepared to pay for?’ McDermott. with China, India, Australia, craft.” What they are agreed on is Spain’s Don Quijote, the first New Zealand and Chile. “We Tim McDermott, airport the need to extract the maxi- privatised airport in the coun- want to deepen aviation rela- development manager at mum ancillary revenues from try, will focus exclusively on tionships with other partners Group their passengers, whether it is attracting low-cost carriers such as China and India,” he says what is needed is a more onboard food and mobile when it starts operations in said. sophisticated yield manage- phone usage, or introducing October 2007. Since construc- He added: “The EU inte- tion began, the low-cost mar- gration has been very suc- ✈ TALKING SHOP - EVENTS AROUND ROUTES TODAY ket has exploded in Spain, cessful. It is a regional inte- which led to original plans for gration example of what 07.30 Registration and Diary Advice & Extra Meetings Desk the terminal being amended or ICAO is calling for. It is an Open scrapped altogether if they example that other regions 08.30 One to One Meetings Commence. were seen as over-elaborate. can learn from.” 11.00 Spotlight: ASM/Sabre “Suppliers” (Location: PT1) “We said no to airbridges, In forging new aviation 11.30 Spotlight: New Orleans Airport Recovery (Location: PT1) pushback and buses,” says agreements with countries 12.00 Pre Lunch Drinks served at tables in the dining area. Rafael Echevarne, airport mar- further afield, the EU was not (Location: Hall 8) ket and business development seeking to impose its rules on 12.25 – 13.45Lunch Sponsored By Vienna Airport (Location: Hall 8) director at Don Quijote. others, insisted Geil. 14.00 One to One Meetings 15.00 Host of Routes 2009 Signing Ceremony 15.30 – 16.00Spotlight: Dubai -- the World’s Global Aviation Hub of the Delta plans major expansion at LAX Future (Location: PT1) Delta Air Lines has unveiled a major expansion from Los Angeles 16.00 – 16.30Spotlight: Emirates Press Briefing (PT1) (LAX) aimed largely at the Hispanic market. It is part of Delta’s bid to 17.40 One to One Meetings finish become the number two US airline after Continental to Mexico. New 19.00 Gala Networking Evening (featuring the OAG Airport destinations from LAX include Acapulco, Culiacan, Hermosillo, Marketing Awards) Location: Al Sahra – courtesy buses Loreto, Manzanillo, Mazatlan, Toreon and Zacatecas in Mexico. Delta leave from all event hotels at 18.20, 18.40 and 19.00) also is launching services from LAX to five US cities, Costa Rica and * PT1 location is the Press Centre on the first level. Guatemala. The new routes will be launched in phases during the first quarter of 2007. AIRLINE BUSINESS @ ROUTES 18 September 2006 5

fidn-sep-18-06-p004abig-sep-00-06-p004 1 1 22/8/06 13/9/06 1:45:31 4:17:52 pm pm EXHIBITOR NEWS

Meeting at the spe- cial African network- ing lunch were (from left to right) Raphael Kuuchi, commercial director African Airlines Association; Chileshe Kapewepwe, vice-president African Civil Aviation Commission; Maamoune Chakira, regional secretary ACI Africa and Geoffrey Lipman, assistant sec- retary general World Tourism Organisation. Penauille Africa needs to embrace low cost The rise of low-cost carriers and long-awaited want to continue to protect ourselves we will market liberalisation are essential if Africa is to find that even the strongest African carriers, set for fulfil its air transport potential, according to because of the lack of strong intra-regional mar- speakers at an African networking lunch held kets, will find it impossible to compete.” Cyprus yesterday at Routes. All of the speakers urged the faster adoption of “Low-cost carriers have a bigger role to play in an open skies regime in Africa. Critically this the uplift of air transport in Africa,” said Raphael includes implementing the pan-African liberali- expansion Kuuchi, commercial director of the African sation initiative, the Yamoussoukro Declaration, Penauille Servisair, the Airlines Association. However, the lack of access said Chileshe Kapewepwe, vice-president of the Global Aviation Ground to slots at some airports and the continent’s African Civil Aviation Commission. Services Company, will restrictive bilateral regime mean it is currently “Airlines are losing their intercontinental traf- expand its station network difficult for new carriers to survive in most mar- fic due to globalisation,” said Kuuchi. He esti- to Cyprus following a new kets, he said. mates that African airlines only carry 35% of agreement with Louis However, with fares to and within Africa so traffic to and from the continent. To win this Tourist Agency. high the market stimulation that low-fare carriers back, carriers – most probably through greater Louis services over 30 bring is critical for countries to increase business collaborative initiatives and alliances – need to Airlines operating scheduled and tourism activity. strengthen largely undeveloped intra-African and chartered flights to and “It would be a tragedy if Africa is not able to networks. from Cyprus, serving have that same advantage,” said Geoffrey Despite the challenges, which include improv- around 12,000 flights and Lipman, assistant secretary general of the World ing the region’s safety record, Africa is growing 2,000,000 passengers annu- Tourism Organisation. “The value of a low-fare fast. Traffic rose by 9% last year. ally. airline is what it does to a national economy.” At Routes there are 17 airlines and 25 airports The agreement allows Despite the relative weakness of African carri- from Africa representing three-quarters of the Penauille Servisair to market ers compared to their competitors from Europe, continent’s total traffic. an expanded network of sta- Asia and the Middle East, the region must not try This is a 50% growth from the 2005 event and tions into the Cypriot mar- to protect its markets but open them up. “Even demonstrates the region’s proactive approach to ket. today, without liberalisation, most airlines are developing air services in the region, said Routes dying,” said Kuuchi. “If we remain small and president Alex Strahl. Memphis – the king of cargo airports makes debut Elvis Presley is still alive and the first time and believes that to talk to the US carriers such Cox says there are 11 million well as far as Memphis Airport international carriers could as JetBlue and Frontier. passengers passing through the is concerned – for each year benefit from developing Tourism – particularly with the airport, “but we have the hundreds of thousands of visi- routes into the heart of whole music connection – is capacity to increase this three- tors come from around the Tennessee. very big in Memphis.” fold,” he says. The airport has world to pay homage to the “We have a NorthWest Memphis is already geared four runways with three hav- King of rock and roll. Airlines hub at the airport and up for growth. The airport is ing Cat 3B approaches. Larry Cox, president and have a codeshare daily flight the world’s busiest cargo hub Taxiways are also being modi- chief executive of the with KLM to Amsterdam, but thanks to FedEx and has some fied to enable FedEx to operate Memphis-Shelby County air- there are opportunities for 400,000 aircraft movements a the US’s first Airbus A380 from port authority, is at Routes for many more. We are also keen year. the airport. 6 AIRLINE BUSINESS @ ROUTES 18 September 2006

EXHIBITOR NEWS The Kuwait package

KUWAIT’S AVIATION commu- nity is here in force in Dubai promoting a comprehensive package of discounted services designed to encourage airlines to serve the Gulf state. Kuwait’s Directorate General of Civil Aviation is heading a delegation of firms that is using Routes to launch the package, which includes free landing fees for a year to new carriers operating to Kuwait International Airport, and a host of other discounts from ground handling, fuelling, catering and hotel operators. “I think this is a good offer, we expect it to attract more air- Left, Mohammad Abdulrahem, specialist-air transport, lines to operate to Kuwait and Salah Al-Majed, acting director of air transport International,” said Salah Al- department, of Kuwait’s Directorate General of Civil Aviation, are wooing carriers here at Routes. Majed, acting director air transport department at the DGCA. The first carrier taking advan- Kuwaiti government to open new approach to boost service, begin later next year. It is tage of the offer is United its skies. It has already signed the DGCA is also planning a planned to open in 2011. Airlines, which is starting a route fully liberalised air transport major expansion of Kuwait Last year Kuwait to Kuwait from Washington deals with Bahrain, Lebanon, International, said Al-Majed. International saw its scheduled Dulles at the end of October. Morocco, Sri Lanka and the Construction on a new 12 mil- traffic grow by 8% to 5.1 mil- The package strategy follows USA with more to come. lion terminal complex linked lion passengers. Around 6 mil- a March decision by the As Kuwait takes this radical to the current airport will lion are expected this year. Abu Dhabi looks east Egyptian regional

Abu Dhabi airport, which is currently boosting capacity by adding a second run- airports can offer more way and building a massive midfield termi- Airline and passenger customers of Egypt’s airports are nal complex, is hoping to cash in on seeing the benefits of the relationship between the China’s galloping economic expansion. Egyptian Airport Company (EAC) with Aeroports de Only China Airlines flies to the Gulf state (AdP). at present, but as all the country’s mainline According to the partners at Routes (stand A11) the carriers are attending Routes, the airport progress on regional airport development is so great that will be particularly targeting them. “China this has encouraged the Egyptian government to take is a big focus for us, although of course we significant steps towards liberalising the domestic air are interested in any long-haul airlines,” traffic market. says Roland Blaney, commercial develop- AdP has been working with EAC to identify ways of ment and projects control manager at the developing the air services to reduce costs for customers airport. and increase capacity. The new terminal will have four gates EAC opened a new facility in Luxor and are close to capable of handling the Airbus A380, which completing the full refurbishment and extension of has been ordered by China Southern as well Hurghada International Airport and new terminal in as Etihad. Sharm El Sheikh by the start of next summer. The region’s embryonic low-cost sector The new government position means that designated could ultimately be another target, particu- carriers will be able to operate unlimited scheduled larly when the new terminal is completed flights to the Egyptian regional markets of Luxor, Sharm in 2010, rendering the present facility obso- EL Sheikh, Aswan, Hurghada, Taba, Saint Catherine, lete. “One idea among others is to convert Patrice Bastid, executive director and Marsa Alam and El Alamain outside the existing coun- it into a low-cost terminal,” says Blaney. Magdeldin Refaat, chairman of EAC are try bilateral with Cairo. Charter airlines will be also be in step for improved air services. able to sell single individual “seat only” tickets. AIRLINE BUSINESS @ ROUTES 18 September 2006 9 ATI In conjunction with Air Transport Intelligence, the 24-hour news and data service from the publisher of Flight International, Airline Business and Flight Daily News. Find us at: www.rati.com

CHINA, RUSSIA CLOSE TO NEW AIR PACT CHINA SOUTHERN China and Russia are set to con- RPKS UP 13.9% clude a new inter-government China Southern – codeshare agreement that will substantially with Aeroflot soon? China Southern Airlines recorded facilitate air transport between another solid rise in passenger traf- the two countries. fic in August but freight demand Following a session of the bilat- fell. eral commission in Beijing, The Guangzhou-based carrier Russian transport minister Igor says on its website that RPKs were Levitin says both sides have up 13.9% overall, led by 15.2% reached a liberalized air accord growth in international traffic. and agreed to renew it on a year- RPKs from domestic services ly basis. increased 14.3% over August last “We’ll sign it in short order,” year while those from Hong Kong he adds. “It is fully consistent services fell 8.3%. with the burgeoning growth of Capacity in terms of ASKs trade and air travel between our increased 12.1% and passenger countries in recent years.” load factor improved 1.2 points to The new agreement allows 76%. The number of passengers both sides to increase the number carried increased 12.8% to 5.03 of designated carriers operating ter serve the needs of travelers ber of cross-border routes. “We million. on the Russia-Chinese market up and freight shippers, we’ll maxi- understand that China Southern Freight traffic in terms of rev- to ten and introduce direct air mize quotas and cargo rights for Airlines is seeking to join the enue freight tonne kilometres links for more than a dozen city airlines as well as encourage SkyTeam alliance,” says Levitin. (RFTKs) was down 11.3% overall. pairs. Levitin expects bilateral air greater flexibility in pricing.” “Given that Aeroflot is already a Hong Kong RFTKs were down traffic to rise sharply in the run Russian authorities also envis- member, these two carriers could 33.5% while international RFTKs up to the Olympic Games in age opportunities for providing become codeshare partners fell 20.2% and domestic RFTKs fell Bejing in 2008. He says: “To bet- codesharing services on a num- before long.” 3.5%. Capacity in terms of avail- able freight tonne kilometres was FLYBE CONSIDERS CHARGE FOR OFFLINE CHECK-IN down 1.7% and the amount of freight carried fell 3.9% to 69,950t. UK budget carrier Flybe is con- and form “the core of the [low- budget carrier would “need to sidering charging passengers cost] revolution”. reach a critical mass like who check-in for flights at the Flybe is following in the EasyJet and Ryanair before get- JET4YOU’S airport rather than through the footsteps of Irish budget carrier ting partners for ancillary rev- LINKS Internet as a means of boosting Ryanair, which has introduced enues”. ancillary revenues, says Flybe a number of measures designed The success of generating Moroccan budget carrier Jet4you, chief commercial officer Mike to increase ancillary revenues, ancillary revenues also which serves Paris Orly from Rutter. He said the carrier such as charging passengers for depends on the region in Marrakech, Fez and Agadir, is to “would like to start charging” checked baggage. However, not which a carrier operates, add three Casablanca links and passengers “who do not check- all low-cost operators subscribe according to Air Arabia CEO the Moroccan city of Ouarzazate in online”. to this approach. Adel Ali. He says that to suc- to its network. Rutter believes ancillary rev- SkyEurope Airlines CEO ceed on ancillary revenues in Jet4you, which is part-owned enues are “where the low-cost Christian Mandl, for instance, the Middle East would be “a by German tour giant TUI, began business has reinvented itself” says the central European big challenge”. services in March. It operates a single Boeing 737-400 on three AUSTRIAN TRAFFIC AND LOAD FACTORS SLIPS, BUT PASSENGERS UP routes between Morocco and Paris Orly. But the fledgling airline is to Austrian Airlines Group’s passen- last year. As capacity was only cut an increase in passenger num- add a second TUI Boeing 737 this ger load factor and scheduled 1%, this meant passenger load bers on its short- and medium- winter, giving it the capacity to traffic as measured in RPKs were factor slipped nearly two points haul “focus markets”, which open a string of new routes from both down in August, though in August to 77.3%, have been swelled by price pro- the end of October. passenger numbers were up as its But the group’s scheduled pas- motions. Jet4you says the route additions short- and medium-haul routes senger numbers rose by 5.6% to The traffic figures, measured in feature the airline’s first services outperformed its long-haul links. reach 823,000 over the same revenue passenger kilometres, from Casablanca, comprising a Scheduled passenger traffic for period. have been affected by the dispro- daily Paris Orly link and thrice- August, as measured in RPKs, was A company spokesman says portionately strong growth on weekly services to the Belgian down 3.3% on the same month the results have been driven by shorter routes. cities of Charleroi and Liege. 10 AIRLINE BUSINESS @ ROUTES 18 September 2006

NETWORKING

Dato Bashir Ahmad, managing director of Malaysian Getting to Airports welcomes delegates to the Airline Reception. know you

AGAINST THE BACKDROP OF the iconic Burj al Arab the Four of clubs: Ken Hassard, Stan Facey, Khalid Al Halyan and Mansoor Taher play their cards right at Arabian ranches in the Routes golf tournament. sound of Malaysian drummers hammered out a welcome to air- line delegates for the Routes event. Malaysia Airports Holdings Berhad hosted its traditional Saturday night reception at the Madinat conference centre to give airlines and suppliers the chance to meet up with each other. Networking is a key compo- nent of the Routes event and old friends and colleagues made the most of the opportunity to get started at the Malaysian party. Yesterday morning there was another opportunity for dele- gates to do business – this time on the golf course. Players from all over the world found com- mon ground on the fairways of the new Arabian Ranches Golf Course.

14 AIRLINE BUSINESS @ ROUTES 18 September 2006

FOCUS Orbis – seeing

is believing Flying high: Orbis nurse, Leo ROUTES DELEGATES WILL today ophthalmology programme, the Mercado, left, and Orbis get the chance to see for them- Orbis team operating the Flying Ophthamologist selves the good work resulting Eye Hospital have been looked Chris Fuller from the event’s link with charity after in Dubai. Handling agent demonstrate the Orbis. Dnata has waived all fees and the flying hospital’s Delegates can take a tour of the aircraft was even cleaned by capabilities. flying hospital itself a 36-year old Emirates. DC-10, once operated by Laker “It was pretty filthy having Each operation is filmed – includ- treatment through the Orbis pro- Airways. done a tour of Africa,” said ing a camera mounted inside the gramme and an estimated 27 mil- “The value of the link with Georgina. microscope focused on the lion patients benefiting from Routes is that it enables us to The aircraft is equipped with a patient’s eyes – and transmitted Orbis-supported programmes. make contact with companies state-of-the-art teaching facility, a to the trainee medics within the Aircraft fans will enjoy the air- within aviation and to develop clinic for laser treatment and an training suite within the aircraft. craft, a venerable DC-10. long-term relationships,” said operating theatre where doctors Two-way communications enable However, said flight engineer Georgina Howson, Orbis in the developing world receive trainee medics to ask questions of Richard Jorgenson, with just fundraising manager, corporates. hands-on surgical training from the surgeon during operations. 36,000 flying hours logged, “it’s “In meeting with people from volunteer surgeons. Since the creation of Orbis in really a young aircraft.” the airports, it may lead to invita- As well as carrying out sight- 1982, nearly 1,000 sight-saving Its future depends on how long tions from governments. These saving operations on patients, programmes have been carried FedEx continues to operate the are all very useful contacts.” each tour by the Flying Eye out in 85 countries around the same type and thus has the pilots En route to Vietnam for anoth- Hospital involves teaching local world. That translates into three available with experience on the er programme of work in the medics the latest techniques. million patients receiving direct type.

16 AIRLINE BUSINESS @ ROUTES 18 September 2006

INTERVIEW After years of losses and government bail-outs a famous airline name, BWIA West Indies Airways, is appearing here at Routes for the last time. Peter Davies, the carrier’s chief executive, explains to Mark Pilling what happens next. A new Caribbean phoenix IS RISING

BANKRUPT BWIA IS expansion drive. “Then we can really put our- disappearing to be replaced by selves on a solid platform. We need to con- a new, fitter model. This new centrate on what we are good at, recognising kid on the block intends to the need to create airlift from the region and Facts: Peter Davies carve out a profitable niche in connectivity for passengers coming to and Peter Davies has over 30 years opera- this notoriously difficult region to make from the Caribbean.” tional experience in the airline and transport money. All this is being made possible by the rad- industry throughout Europe, Australia and The journey leading to the closure of BWIA ical decision to close BWIA. Davies joined the USA. this year and the creation of Caribbean the carrier in April to create a future for an Airlines on 1 January 2007 is being steered by airline headquartered in . Various He was chief executive of SN Brussels Davies. This 57-year-old industry veteran, studies had outlined three options for the Airlines from 2002 to 2005. who has worked at DHL and SN Brussels, is government owners of the carrier: simply also conducting a root and branch review of close it down; profoundly restructure it; or Before joining SN Brussels Davies spent its network as loss-making routes are axed close it and launch a new one. Earlier this 14 years at DHL, originally as managing and new opportunities sought. summer it became clear that union wage director of the UK operations, progressing to BWIA operates a network around the demands would make the preferred option regional director for Europe, before taking Caribbean from its base in Trinidad and serves of a restructuring impossible. “The unions up his final post as chief operating officer Miami, New York, and Washington wanted more than we could afford – they responsible for the Americas, including the in North America and London in Europe, made the BWIA business plan untenable,” Caribbean. with a fleet of seven Boeing 737-800s and two says Davies. Airbus A340s. “My strategy is to provide an The government asked Davies to quickly He is 57 and a qualified pilot. up-market 21st Century airline that’s working prepare a new plan based on the launch sce- proficiently and can hit our colleagues head- nario. It is prepared to inject $250 million on in the marketplace,” says Davies. into the project with the condition that Initially, while the airline’s revenues will never again will the carrier return for more dip by as much as 20% in 2007 as some routes money. Davies presented the Caribbean are culled and two 737s are returned to Airlines plan to the government in early lessors, the end result will be a more cohesive August. By the end of the month he had his “My strategy is to network. Critically, costs at the new carrier answer: do it. will have fallen much further. Things have moved fast. Already the plans provide an up-mar- “Part of the strategy is to build an intra- are well advanced to close BWIA and launch Caribbean network,” says Davies. This means the new carrier. All of BWIA’s liabilities will be ket 21st Century air- expanding into the eastern Caribbean islands honoured, all creditors paid off and negotia- of and and into tions are underway with staff over severance line that’s working in the west. “It is not a question of retreating. terms. All 1,700 staff at BWIA will lose their It is one of reassessing our priorities and jobs as the carrier closes. Some will be taken proficiently and can building a viable network for spring 2007.” on by the new carrier, which will start with a This network will most likely include the workforce of significantly fewer than 700, hit our colleagues addition of turboprops such as the says Davies. Bombardier Q400 to more effectively serve will throw off the legacy head-on in the mar- BWIA’s existing shorter routes in the region, of BWIA and start with a competitive cost and to add new ones, says Davies. “There are base. It will also introduce the latest systems ketplace.” also a couple of acquisition opportunities I’d and processes to enable it to leapfrog its com- like to pursue in the Caribbean,” he adds. The petition, says Davies. “On the current busi- aim is to buy small carriers to take advantage ness plan the aim is to be profitable by 2009,” of their local operating licences to aid the he says. 18 AIRLINE BUSINESS @ ROUTES 18 September 2006

STAT ATTACK Data-download

Planned capacity growth for top 10 Middle East- Asia Pacific carriers

AIRLINE WEEKLY CAPACITY WEEKLY FREQUENCIES WEEKLY SEATS OFFERED MARKET SHARE FROM THE MIDDLE EAST TO ASK million change total change thousands change South Asia East Asia SoutheastAsia/Pacific EMIRATES 660 27.2% 508 +98 141 22.0% 14.3% 41.1% 34.9% 293 36.5% 286 +57 64 36.9% 8.8% 19.8% 12.2% GULF AIR 228 11.7% 286 +16 64 9.9% 9.4% - 11.9% SAUDI ARABIAN 225 -4.7% 164 +0 56 -0.5% 12.9% - 7.6% ETIHAD AIRWAYS 115 215.6% 128 +76 31 156.6% 3.9% - 6.9% AIR-INDIA 102 -12.9% 158 -30 36 -15.0% 8.9% - - KUWAIT AIRWAYS 84 1.4% 96 +0 23 2.6% 5.5% - 2.1% PAKISTAN AIRLINES 82 3.1% 186 +2 39 2.6% 7.2% - - BIMAN BANGLADESH 81 16.9% 80 +12 20 15.6% 7.1% - - 55 0.0% 32 +0 11 0.0% 0.5% 14.0% - TOTAL MARKET 2,503 14.7% 2,796 +393 652 15.3% 100.0% 100.0% 100.0%

Planned capacity growth for top 10 Middle East-North America carriers

AIRLINE WEEKLY CAPACITY WEEKLY FREQUENCIES WEEKLY SEATS OFFERED MARKET SHARE AVERAGE DISTANCE AVERAGE SEATING ASK MILLION CHANGE TOTAL CHANGE THOUSANDS CHANGE CAPACITY EL AL 200 68.2% 62 26 21,138 62.4% 38.3% 9,484 341 EMIRATES 104 178.6% 28 14 9,478 178.6% 19.9% 11,013 339 CONTINENTAL AIRLINES 72 16.7% 28 4 7,924 16.7% 13.9% 9,149 283 DELTA AIRLINES 39 14 14 3,752 7.4% 10,350 268 ROYAL JORDANIAN 39 -11.3% 16 -2 4,064 -11.8% 7.4% 9,549 254 SAUDI ARABIAN 31 53.8% 11 1 2,990 53.5% 5.9% 10,343 272 KUWAIT AIRWAYS 20 50.0% 6 2 1,920 50.0% 3.7% 10,213 320 AIR 18 -35.7% 9 -5 1,908 -35.7% 3.4% 9,305 212 TOTAL MARKET 523 61.8% 174 54 53,174 56.3% 100.0% 9,841 306

Planned capacity growth for top 10 Middle East-Europe carriers

AIRLINE WEEKLY CAPACITY WEEKLY FREQUENCIES WEEKLY SEATS OFFERED MARKET SHARE AVERAGE DISTANCE AVERAGE SEATING ASK MILLION CHANGE TOTAL CHANGE NO. THOUSANDS CHANGE CAPACITY

EMIRATES 552 8.8% 394 +42 111 10.0% 24.9% 4,986 281 QATAR AIRWAYS 221 50.0% 186 +52 46 48.4% 10.0% 4,760 249 EL AL 138 13.3% 255 +60 48 10.5% 6.2% 2,878 188 BRITISH AIRWAYS 137 -5.9% 140 -9 30 -7.1% 6.2% 4,582 214 ETIHAD AIRWAYS 136 75.9% 102 +42 26 75.3% 6.1% 5,236 255 GULF AIR 129 -4.2% 128 +6 28 -0.9% 5.8% 4,682 215 LUFTHANSA 121 31.2% 126 +16 33 27.5% 5.5% 3,677 261 KLM 97 4.0% 92 -14 21 -0.5% 4.4% 4,533 233 AIR 92 33.9% 112 +25 23 34.4% 4.1% 4,038 202 IRAN AIR 52 0.3% 62 +2 15 3.4% 2.3% 3,556 236 TOTAL MARKET 2,217 17.6% 2,504 +326 553 15.5% 100.0% 4,010 221 NOTE: Data is based on schedules for 17-23 October 2005 against 16-22 October 2006. Figures reflect airlines operating non-stop unrestricted sched- uled passenger services. Market share is based on ASK. Delta Airlines had no US-Middle East services last year.

20 AIRLINE BUSINESS @ ROUTES 18 September 2006

afterhours THINGS TO DO IN DUBAI IN YOUR DOWNTIME In the swing at world-class golf courses Those golfing enthusiasts who ued investment has ensured the couldn’t get to the Routes Golf growth of Dubai’s status as a championship at the Arabian major golf destination. Ranches course yesterday missed Perhaps the most popular Contactdetails a great chance to see just how course – certainly the most visi- great the courses are here in ble – is the recently reopened and The Emirate Golf Club Dubai. reshaped Dubai Creek Golf and (Tel: +971 4 347 3222) Golfers from around the world Yacht Club (18 holes, 6,839 The Dubai Creek Golf and are being drawn to the emirate yards, par 72). Situated in the Yacht Club attracted by the magnificent heart of the city along the Creek, (Tel: +971 4 295 6000) grass courses. The climate, espe- it is a spectacular oasis that Nad Al Sheba Club cially in winter months, comple- boasts a distinctive clubhouse in (Tel: +971 4 336 3666) mented by perfectly manicured the shape of a sail. The Montgomerie fairways and greens make a diffi- The first of two courses at the (Tel: +971 4 390 5600) cult combination for any golfer Emirates Golf Club was the Jebel Ali Hotel & Golf Resort to resist. Even for the weekend Majlis (18 holes, 6,839 yards, par (Tel: +971 4 883 6000) or casual golfer, Dubai’s courses 72). It’s second full course, called exert a strong pull. the Wadi, offers a different chal- So if you are staying over at the lenge (18 holes, 7,100 yards, par Montgomerie (18 holes, 7,308 Dubai. Here strutting peacocks end of the Routes event, why not 72). yards, par 72). This course was give their noisy opinion on your go out and try one of the great The Nad Al Sheba Club (18 designed by Colin Montgomerie drive over the different lakes that courses. All the clubs hire out holes, 6,428 yards, par 71), and Desmond Muirhead and make this seafront course so equipment and tee times are usu- designed by Karl Litten, is a links lays claim to having the largest attractive. ally available even on weekends. style course looping half inside single golfing green in the Dubai’s courses give you all the The opening in 1988 of the and half outside Dubai’s famous world. (surprising then how advantages of a country club Emirates Golf Club – the first Nad Al Sheba Race Course that many of the Routes golfers still without actually having to be a grass course in the Middle East – hosts the $6 million Dubai World failed to get their ball to land on member: golf carts, automated heralded the golf boom in Dubai. Cup horse race. It also features it!!) GPS yardage devices, beverage Participation by top golfers in the golf under floodlights. Another popular course is carts, comfortable locker rooms PGA Dubai Desert Classic and The venue for yesterday’s located the Jebel Ali Hotel and and shops stocked with quality subsequent events has done Routes tournament is one of the Golf Resort (9 holes, par 36), equipment and fashionable much for the game, and contin- newest courses in Dubai - the located on the coast 40km from clothing.

ALL YOU NEED: here are some useful telephone numbers to help smooth over your visit to Routes in Dubai.

■ TOURISM: Check local newspapers for 24- Al Amal Hospital Welcare Hospital Department of Tourism and hour pharmacies. ✆ 344 4010 ✆ 282 7788 Commerce Marketing (DTCM) Al Baraha Hospital Welcome Bureau ■ LOST OR STOLEN ITEMS: ✆ 271 0000 ■ TAXIS: ✆ 228 5000 You must report any lost or Al Maktoum Hospital Dubai Transport Corporation E-mail: stolen items to Dubai Police. ✆ 222 1211 ✆ 264 1111 [email protected] The Police operator can be con- Al Wasl Hospital Cars Taxi Website: tacted on 269 2222 or fax: 221 ✆ 324 1111 ✆ 800 4825 www.dubaitourism.co.ae 5158 American Hospital Dubai Taxi ✆ 336 7777 ✆ 208 0808 ■ EMERGENCY: ■ POST OFFICES: Belhoul European Hospital Golden Taxi ✆ Police: 999 Post Offices are open Saturday ✆ 345 4000 ✆ 336 5444 USEFUL INFO Fire: 997 to Thursday 8am – 8pm. Dubai Hospital Gulf Radio Taxi Ambulance: 998/999 However stamps are generally ✆ 271 4444 ✆ 223 6666 Coastguards: 345 0520 available from most supermar- International Private Hospital kets and grocery shops. ✆ 221 2484 ■ FLIGHT ENQUIRES: ■ PHARMACIES: Iranian Hospital Dubai International Airport Most pharmacies are open from ■ HOSPITALS: The following ✆ 344 0250 ✆ 224 5777 9am to 9pm and many can be hospitals c an treat all manner Rashid Hospital To call these numbers from overseas place found at leading supermarkets. of emergencies: ✆ 337 4000 +9714 in front of the number

22 AIRLINE BUSINESS @ ROUTES 18 September 2006