Monthly Newsletter issued by Dubai Authority www.viadubaionline.com Issue 45 February 2017 Inside DCAA Ahmed Bin Saeed: IBPC honours DG 5 with Golden Friends of India Award UAE aviation sector’s importance Raffle draws on 6 Car Free Day growing in global map

DCAA lines up initiatives 7 during ‘Year of Giving’ Sports activities oganised 8 on National Sports Day Sand Storm Al Marmoom 9

UAE in Focus

Dubai Airports 14 discusses 2017-2025 plan with its strategic partners 12 Flydubai revenue 16 rises to $1.37 billion ATM’s A new Committed to vital role chapter enhancing for aviation customer to deploy 18 happiness A380 to Sao Paulo Jeff Violeta Poole, 31 Bulc 30 Maryam Bin Ali 10

Gulfstream sees JetBlue curbs Middle East freight significant pick-up growth volumes and demand rise projection

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Opinions 30 Airlines 32 Cargo & Logistics 34 Technology 38 Our Smart Services DCAA Smart App will allow the customers the below services:

• Issuance of Landing permissions • Issuance of No Objection Certificate for Carriage of Restricted Articles • Issuance of No Objection Certificate for Aerial Work • Issuance of No Objection Certificate for Warning Light • Issuance of No Objection Certificate for Heliport • Issuance of No Objection Certificate for Pyrotechnic Display • Issuance of No Objection Certificate for Building Height (Below 300m) • Issuance of No Objection Certificate for Building Height (Above 300m) • Issuance of Approval for Heliports Certification • Issuance of Approval for Crane Operation • Issuance of Approval for GSM or other communication tower • Issuance of Approval for Balloon Operations • Issuance of No Objection Certificate for Sky Trackers / Space Cannon

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For more information, please call technical support on: +971 56 6810685 2 February 2017 www.dcaa.gov.ae email: [email protected] CONTENTS In 2007, the functions of the Department of Civil Aviation were restructured. Accordingly, the Dubai Civil Aviation Authority (DCAA) was established as a regulatory body, by a decree of H.H. Sheikh Mohammed Bin Rashid Al- Maktoum, Ruler of Dubai, on proclamation of law No. 21 of 2007, as amended by law No. 19 of 2010, to undertake development of Air Transport Industry in the Emirate of Our Smart Services Dubai and to oversee all aviation-related activities. Inside DCAA DCAA Smart App will allow the 06 Raffle draws on Car Free Day customers the below services: Via Dubai is the official bilingual monthly newsletter of DCAA, designed to highlight the initiatives and developments in the aviation industry and act as a knowledge-sharing platform for all the stakeholders and aviation professionals. • Issuance of Landing permissions General Supervision • Issuance of No Objection Certificate for Carriage of Restricted Articles Mohammed Abdulla Ahli • Issuance of No Objection Certificate for Aerial Work Coordinator Hanan Al Mazimi • Issuance of No Objection Certificate for Aircraft Warning Light Creative Manager • Issuance of No Objection Certificate for Heliport Mohammed Al Jarouf • Issuance of No Objection Certificate for Pyrotechnic Display Editor Shveta Pathak • Issuance of No Objection Certificate for Building Height (Below 300m) Sports activities oganised Sand Storm Al Marmoom E-mail: [email protected] 08 09 • Issuance of No Objection Certificate for Building Height (Above 300m) on National Sports Day

• Issuance of Approval for Heliports Certification Legal Disclaimer • Issuance of Approval for Crane Operation The views expressed in the articles are of the writers and not necessarily belong to DCAA. We take all reasonable steps to keep the information current and accurate, but errors can • Issuance of Approval for GSM or other communication tower occur. The information is therefore provided as is, with no guarantee of accuracy, completeness or timeliness. The DCAA • Issuance of Approval for Balloon Operations or Via Dubai does not warrant or assume any legal liability or responsibility for the quality, accuracy, completeness, legality, reliability or usefulness of any information. Via Dubai does • Issuance of No Objection Certificate for Sky Trackers / Space Cannon not endorse or recommend any article, product, service or information mentioned in the newsletter. Any perceived slight of any person or organisation is completely unintentional. DCAA Interview Registration Requirements: Advertise with us Editorial, Production, PR & Marketing • Company Name • Username Nadd AlShiba PR and Event Management • Company Address • Password Committed to • Telephone Number • Email Address • Fax Number • Name enhancing • PO Box • Mobile Number customer • City • Emirates ID Number happiness • Choose one secret questions • Category (Individual - Airline - Agency - Expert - Provider) Maryam Bin Ali 10

Printed by Printwell Dubai You can download the application Our Vision Dubai Civil Aviation Authority is driven by the vision of Dubai to become the global Aviation Capital contributing to by searching in App Store and Play prosperity and enabling growth for Dubai. Our Mission Store by typing DCAA Dubai Civil Aviation Authority is committed to support the aviation sector in: u Capturing the full value potential as a global passenger, tourism, trade, cargo and logistic hub or scan the QR code u Providing the capacity, connectivity and leveraging existing assets to meet the aviation sector and economic growth plans of Dubai E-mail: [email protected] u Ensuring sustainable and responsible growth committed to safety, health, environment and security Website: www.dcaa.gov.ae u Providing and creating customer-focused services to gain competitive advantage from innovation, knowledge and efficiency u Building and retaining capabilities, for the aviation sector, while offering career opportunities for Nationals Tel: (971) 4 216 2009 For more information, please call u Ensuring a transparent, effective and commercially balanced regulatory framework that reflects the interests of the aviation industry, Dubai and the UAE Fax: (971) 4 224 4502 u Providing efficient and cost-effective services to the aviation sector technical support on: +971 56 6810685 P.O.BOX 49888 www.dcaa.gov.ae http://www.facebook.com/DCAADubai .com/DcaaDubai Februaryyoutube.com/user/dcaadubai 2017 1 email: [email protected] Dubai, United Arab Emirates CONTENTS

Dubai Airports discusses 2017- 2025 plan with its strategic partners

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Cross-border A new chapter ATM’s e-commerce to for aviation vital role grow to $900 billion through 2020 30 Violeta Bulc 31 Jeff Poole,

36 Gulfstream sees significant pick-up The ultimate cure for jet lag

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2 February 2017 Message from the President

Continuing success

he New Year continues to bring in good news on Tall fronts in Dubai. The economy is expected to Ahmed bin Saeed Al Maktoum grow by 3.1 per cent this year against 2.7 per cent last year. Our growth projections are based on the fact that sustainability and flexibility are the most nota- ble characteristics of Dubai’s ongoing economic and social transformation envisioned by our leader His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and But we should not be complacent with our achieve- Ruler of Dubai. ments. Every effort has to be made to make the airport top class, appealing to one and all, to attract more The growth vision and strategies adopted by our airlines, services to be beefed up to customers’ liking, leadership have all focused on accelerated and sustain- technology be applied to make it world class and ease able growth which led us to faster integration of our of using. economy into the global economy. One sector that has gained such sustainability is aviation, taking Dubai to The future belongs to us, in whatever changes else- the forefront of global aviation leaders. where in the world. Dubai has already adorned an undeniable top league. Our achievements are legion. Dubai Airport overtook London’s Heathrow as the world’s busiest international Let’s all work together to realise the vision of our airport in 2014 and has since set our sights on overtak- leader, for Dubai to be on the top, and retain the title ing Atlanta and Beijing as the world’s busiest by 2020. always.  It’s only a matter of time when Dubai will be in the league of top aviation hubs in the world.

February 2017 3 Message from the Director General

Sense of satisfaction

Mohammed Abdulla Ahli he good news is Dubai airports are poised to see Tfurther increase in passenger numbers this year and beyond, taking the total to 118 million by 2023. We have already achieved the status as the world’s busiest airport for international passengers when 83.6 million passengers passed through Dubai and this year we will continue to remain at the top as we expect to receive 89 million passengers this year and vide a memorable experience to our passengers and we expect new airlines to use our airports, bringing efficient service to airlines and other stakeholders. in more people and cargo. As in the past, we are committed to adopt the latest technology aimed at offering a pleasant experience We have a sense of satisfaction that we are pro- to our passengers. gressing towards the goal of being among the top in the world as envisioned by His Highness Sheikh As we are moving into a new phase of growth, we Mohammed bin Rashid Al Maktoum, Vice President are increasingly adopting new processes and tech- and Prime Minister of the UAE and Ruler of Dubai, nology to increase passenger movement and to add and achieved with the guidance of His Highness capacity. Going forward, it’s our commitment and Sheikh Ahmed Bin Saeed Al Maktoum, President promise. Further, I take this opportunity to thank of the Dubai Civil Aviation Authority, Chairman the staff of DCAA, Dubai Airports and all strategic of Dubai Airports, and Chief Executive and Chair- partners and stakeholders for their whole-hearted man of Emirates Airline & Group, who has always endeavour to earn these honours. I earnestly solic- remained a beacon of inspiration to us. it your continued support and hard work to mark Dubai another memorable milestone in the aviation The impressive increase in passenger traffic and industry in 2017.  other achievements raise our responsibility to take our services to the next of excellence to pro-

4 February 2017 Inside DCAA

IBPC honours DG with Golden Friends of India Award

is Excellency Mohammed HAbdullah Ahli, Director General of DCAA, attended a ceremony held in celebration of India’s 68th Republic Day by the Indian Business and Professional Council (IBPC).

During the ceremony, HE Mohammed Abdullah Ahli was awarded the ‘Golden Friends of India Award’ in recognition of his efforts to support and enhance economic and investment relations.

His Excellency thanked the IBPC in Dubai, and commented: “We value the mutual efforts of the UAE and India aiming to achieve breakthroughs on the cultural, political, trade, and economic fronts, based on such long- standing strong relations between the Attended by representative of both the personalities in the UAE, the ceremony two nations.” UAE and Indian governments, as well saw the recognition of several UAE as a number of businessmen and other officials. 

February 2017 5 Inside DCAA

Raffle draws on Car Free Day

6 February 2017 Inside DCAA

DCAA lines up initiatives during ‘Year of Giving’

he Dubai Civil Aviation Authority (DCAA) has whole- Theartedly welcomed the guidelines and the directives of the President, His Highness Shaikh Khalifa Bin Zayed Al Nahyan, to declare 2017 as ‘The Year of Giving’ and to follow up on UAE Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s directive to make the initiative successful.

“Keeping in line with this initiative of their Highness’, the Corporate Marketing and Communication Office of DCAA will organise charitable initiatives during the year to embed the ubai Civil Aviation Authority (DCAA) virtue of volunteerism, encourage volunteer opportunities, urge Dparticipated in the Car Free Day event partnerships with different sectors to encourage anyone who organised by the Dubai Municipality, which wishes to make a positive impact on our country, coordinate and was attended by Abdul Rahim Al Mulla, cooperate with charity organisations to execute joint initiatives;” Executive Director of Corporate Support and said HE Mohammed Abdulla Ahli, Director General of DCAA. Communications, and Ahmed Al Zarouni, Director of Public Relations. “It will be our earnest endeavour to ensure the success of the great gesture. We will contribute our might to strengthen DCAA organised raffle draws for the employees social responsibility in the private sector, promote spirit of participating in the Car Free Day, which is volunteerism and specialised voluntary programmes in all annually organized by Dubai Municipality, and segments of society, and strengthen the concept of serving the the raffle draw included purchase of coupons nation in the new generations,” he added. from Dubai Duty Free. The following are the initiatives lined up throughout the year: The raffle draws were attended by Abdul Rahim • Introduce gifts for the limited income people on special Al Mulla, Executive Director of Corporate occasions (Ramadan/Eid); Support and Communications, and Abdul Razzaq • Coordinate with the recycling companies to sell the unused al-Hashimi, Director of Finance and Management equipments and materials and donate the amount in the Administration, as well as marketing and charity initiatives; corporate communications departments and • Conduct lectures for DCAA staff and stakeholders, to employees participating in the initiative.  spread the culture of benevolence; • Launch charity exhibitions at DCAA and donate the collected amount in charity initiatives; • Participate in charity progamme shows on the TV channels; and • Open the door of volunteerism and suggestions for DCAA staff to implement giving initiatives throughout the year via [email protected]. 

February 2017 7 Inside DCAA

Sports activities oganised on National Sports Day ubai Civil Aviation Authority The activities included a football football competition and the Colored Dorganised a variety of sports competition between DCAA’s Team won against the Pink Team in activities on the National Sports Day held departments and a basketball the basketball competition. at Al Nasser Club with the attendance competition between the female of His Excellency Mohammed Abudlla employees. HE Mohammed Abudlla Ahli Ahli, Director General, DCAA, as well honoured the winning teams and as executive directors and employees of The Aviation Security and Incident raffles were held to reward the the authority. Investigation Department won the participants. 

8 February 2017 Inside DCAA

Sand Storm Al Marmoom

team from the Dubai Civil Aviation Authority A (DCAA) participated in ‘Sand Storm Al Marmoom’, an obstacle race organised by Dubai Holding Group.

The race was held in a field set across four terrains -- rock, sand, water and mud -- with obstacles that blend perfectly into a backdrop of sand dunes, lakes, greenery and wildlife right in the heart of Dubai’s desert landscape. 

February 2017 9 DCAA Interview

Maryam Bin Ali, Acting Manager, Customer Service, Finance Affairs and Administration Department, Dubai Civil Aviation Authority (DCAA) Committed to enhancing customer happiness

n line with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President Iand Prime Minister of the UAE and Ruler of Dubai, the Dubai Civil Aviation Authority (DCAA) has been taking active initiatives toward ensuring satisfaction and happiness of its customers.

In 2016, the Authority scored Aviation Authority? happiness is amongst the highest approximately 95 per cent on the priorities with the Authority. Happiness Meter and continues to The Customer Service Centre was work toward increasing this level, launched in May 2015 and I joined We do this through various channels Maryam Bin Ali, Acting Manager, DCAA in June 2015. which include handling official Customer Service, told Via Dubai in emails, chat on website to answer an interview. Being associated with building customer queries, customer calls, the centre from early on, I have attending to visitors and responding The Authority has also launched been very closely involved in the to those who contact us through the special service for its customers growth of customer service centre, website. Our goal is to deal with the above 60 years of age and for those from creating and improving the queries in the shortest possible time with disabilities toward easy and procedures to using new technology and most effective way. smooth processing of transactions. for better customer service. How do you ensure high rate In addition, there is a plan for We have worked with different of customer satisfaction and customer service staff to attended departments in the DCAA, whether it happiness? sign language training, in order to is IT, Strategy or Administration, in make DCAA a disabled-friendly order to understand their requirements In line with the vision of our organisation, said Maryam, as she well and come out with methods and great leader His Highness Sheikh shared her role in the DCAA and procedures which ensure that all their Mohammed Bin Rashid Al Maktoum, the initiatives toward enhancing requirements related to customer the DCAA has introduced Happiness customer happiness. service are taken care of. Meter and several other initiatives toward ensuring satisfaction and Excerpts from the interview: The Dubai Civil Aviation Authority happiness of all the customers. (DCAA) is driven by the vision of Can you share with us your Dubai becoming the global Aviation In 2016, we scored near to 95 per cent role and the contribution of Capital, contributing to prosperity, on the Happiness Meter. Our goal is the Customer Service Centre and enabling growth for Dubai. to increase this happiness level to to the vision of the Dubai Civil Ensuring customer satisfaction and 100 per cent. In order to achieve that,

10 February 2017 DCAA Interview

we focus on areas where a customer efforts we have taken to enhance DCAA launched has shown dissatisfaction. customer experience. Recently, we observed that at times our customers special facilities We try to understand their issue, take had to queue up and wait for their for customers their feedback and take the necessary transactions to be completed. action so that the customer is satisfied. above 60 years To address that, we came up with an In addition, any suggestions and electronic queuing system wherein of age and complaints we receive through the customer is issued a token number any of our channels that customers through an SMS and he can wait in the sign language communicate with us, we distribute customer service area which is fully them to the concerned departments equipped and they can have coffee, trainging for for a proper action and also follow tea and water and read magazines. up. employees We have also launched a system We do not ignore any category of our where we integrate the Emirates ID customers. of a customer with our Customer Relationship Management (CRM) As an employee in Customer Toward this, we have launched system, which speed up the Service, how do you find the work a special facility for our senior procedures. culture in the DCAA? customers, above the age of 60 years, and those having disabilities. How does DCAA ensure that its At the DCAA I got the opportunity customer service employees are to work in customer service very When they come to our office, they updated on the latest procedures? closely. The work culture is highly just need to call us and we will help inspiring, new suggestions especially them to complete their transactions The employees are trained well. The those related to technology area while they sit and wait in the office or training is not only to ensure that always welcomed. they can even wait in their car and the the employees engaged in customer transaction will be completed by us. service understand the systems and I feel very honoured to be part of the technology well, but also in all the DCAA and to be in customer Are there any new initiatives the areas where new initiatives are service, especially in Dubai where launched to enhance customer taken which could impact service to our great leader His Highness Sheikh experience? our customers. For instance, we are Mohammed inspires us to give our undergoing training in sign language, best and ensure happiness of all. Customer service is a continuous with which we will be able to cater to process and there are many new our customers with disabilities. I am committed to give my best. 

February 2017 11 Cover Story

UAE aviation sector’s importance growing in global map: HH Sheikh Ahmed MRO business poised for further growth; Growth in the Middle East to reach 5.7% against 4.5% global average; more than 500 aircraft ordered by Emirates, , and other regional airlines; Orders in the Middle East to reach 3,300 aircraft worth $770 billion by 2035.

H Sheikh Ahmed Bin Saeed Al and Chairman of Emirates Airline & “This means that the regional aviation HMaktoum, President of the Dubai Group, who opened the MRO Middle sector will have higher growth than Civil Aviation Authority, Chairman of East and Aircraft Interiors Middle East the global average. Dubai Airports, and Chief Executive (AIME) at the Dubai World Trade and Chairman of Emirates Airline & Centre (DWTC). While the global aviation industry is Group, opens MRO Exhibition. expected to grow 4.5 per cent yearly Highlighting the impressive growth in the next 20 years, the growth in the The importance of the UAE aviation in the regional aviation sector in an Middle East will reach 5.7 per cent, sector is growing in the global map exclusive comment in the exhibition according to Index.” marked by tremendous growth bulletin, His Highness said there in the past decade thanks to the are more than 500 aircraft ordered The UAE is emerging as the most geographic location and the enormous by Emirates, Etihad Airways, Qatar important market for business investments made by governments Airways and other regional airlines, aviation and private jets with the and the airlines in the region, said His and 80 per cent of the orders are for market outlook is positive as the high Highness Sheikh Ahmed Bin Saeed wide-body aircraft. is expecting networth individuals and corporates Al Maktoum, President of the Dubai the number of orders in the Middle East are increasingly using private jets. Civil Aviation Authority, Chairman of to reach 3,300 aircraft by 2035, worth The business aviation market in the Dubai Airports, and Chief Executive AED2.83 trillion ($770 billion). Middle East is poised to grow further,

12 February 2017 Cover Story

fuelled by strong demand in the UAE, MRO Middle East Conference held The co-located events brought together which is the second-largest buyer of concurrently with the AIME. the region’s key players in aircraft mid- to-large private jets. Along with interiors and maintenance, repair and the business aviation market, MRO He added that global business travel overhaul in addition to representatives (Maintenance, Repairs and Overhaul) spending hit a record $1.5 trillion in from over 100 airlines. The attendees business is poised for further growth. 2016, and economic fundamentals for were able to network and conduct consumer spending are solid going business with the right people in the The two-day AIME attracted a record into 2017. market from the region and beyond. 300 exhibitors and 4,500 trade visitors. Addressing the Ten Year Market “Attendee numbers for the show The exhibition has been growing on Forecast and Key Trends Leader have surpassed our expectations,” a global level, with good participation Insight Panel, David Stewart, Partner said Michele van Akelijen, Managing by more companies and trade visitors, at Oliver Wyman, said that the global Director of show organisers F&E indicating the growth of the MRO airline industry is achieving record Aerospace. “The feedback that we sector in the UAE and the wider passenger volumes, record cargo have had from exhibitors is that they region. volumes, and record net profits. are seeing an increase in the amount of contacts that they are making too, and Shaikh Ahmed visited the stalls and The fleet will increase by nearly doing a larger amount of business.” pavilions to see the latest technology 9,900 aircraft by 2026, representing FedEx Express, a subsidiary of solutions related to maintenance and an average annual growth rate of FedEx Corp., and the world’s largest repairs of aircraft and interior designs. 3.4 per cent, even amid weakening express transportation company, He advised the exhibitors to seize economic conditions and oil price led a discussion on best practices in the opportunity and build strategic uncertainty. shipping oversized cargo at MRO alliances for sustainable growth. Middle East. “By the end of the forecast period, Fastest growing market next generation aircraft will account FedEx sponsored a panel entitled The MENA region’s airline market is the for nearly all new deliveries and ‘Engines, Wings or Fuel Tanks… fastest growing in the world and future comprise over half of the global fleet. Best Practices in Moving Large, aircraft orders are exceeding growth The increase in new technology will Oversized Shipments’, hosted by Chris projections, in addition to significant be the prevailing tailwind behind the Swearingen, Manager of Marketing for spend on airport infrastructure in the changes in the global fleet and the SenseAware of FedEx Services, and region said Adel Ali, CEO of Air airline industry over the next decade, addressed the challenges of delivering Arabia, in his keynote address at the he said.” oversized shipments. 

February 2017 13 UAE in Focus

Dubai Airports expects 143 million passengers in 2020 Dubai Airports discusses 2017-2025 plan with its strategic partners ubai Airports is expecting to carry 143 million passengers through Dubai International and Al Maktoum International DAirport in 2020, the company has confirmed.

The company’s 2017-2025 strategic vice and satisfying customers in com- Dubai International alone carried a plan is targeting an AED195 billion pliance with the UAE government’s total of 83.6 million passengers in ($53 billion) share of the aviation directives, said Majed Al Joker, Senior 2016, up 7.2 per cent on the year be- sector, equivalent to 37.5 per cent of Vice President of Dubai Airports for fore. Dubai’s GDP by 2020. Corporate Assurance and Governance. Al Joker praised the role of the Air- Around 745,000 jobs are expected to Brig. Talal Al Shanqiti, Assistant port Security Department, General be provided by the sector by 2020. to the Director General for Air and Directorate of Residency and For- Land Ports Affairs, Directorate Gen- eigners Affairs in Dubai and Dubai Strategic partners are on top of Dubai eral of Residency and Foreigners Af- Customs, noting that the co-ordination Airports priorities regarding its strate- fairs, said Dubai received 55 million and co-operation among them are the gic plan 2017-2025 to achieve their as- passengers last year, not including secrets behind the success of Dubai pirations of making Dubai International transit passengers – a 7 per cent in- Airports, especially with an expected Airport an international model in ser- crease on 2015. passenger increase from 89 million

14 February 2017 UAE in Focus

Majed Al Joker Talal Al Shanqiti Khalid Ahmed Yousef during the current year to 143 million ing the efficiency of procedures The airports passengers at Dubai International Air- at ports and checkpoints to ensure port and Al Maktoum International passenger comfort. operator targets Airport in 2020. According to forecasts for the Dubai 53$bn share The remarks were made during the Airports’ strategic plan 2017-2025, regular meeting with representa- targeted share of the aviation sector of the aviation tives of strategic partners to discuss will increase Dh195 billion, equiva- the strategic plan 2017-2025 to lent to 37.5 percent of Dubai’s GDP, sector in Dubai’s improve the joint co-operation and which will provide around 745,000 GDP in 2020 promote the security procedures jobs by 2020. by adopting more advanced tech- niques, smart security and increas- The UAE is among the leading coun- tries in the world in implementing the aviation security standards. It gers- the growth of more than 7 per was given a 99.5 percent assessment cent compared to 2015, he said. rating by the International Civil Avi- ation Organisation (ICAO). One of its best achievements was to implement the use of an Emirates The aviation industry, in the UAE in ID card that ended manual entry and general and Dubai specifically, had exit procedures at the airport. The two great achievements in 2016 in number of ID card users exceeded light of the unprecedented classifica- 600,000, he added. tion from an international organisa- tion, as well as professional dealing Khalid Ahmed Yousef, Director of of Emirates Airlines accidents. Passenger Operations Department at Dubai International Airport Ter- Brig. Talal Al Shanqiti praised the minal 1, said: “Teamwork is the level of professional co-ordination feature of the Dubai International among government agencies that Airport.Everyone is having one goal operate in Dubai. to realise the vision of our govern- ment to put our nation on the world Over the past year, Dubai Airports stage and provide better services to received more than 55 million pas- our customers, and make them hap- sengers, not including transit passen- py”.

February 2017 15 UAE in Focus

Flydubai revenue rises to $1.37 billion hese results see flydubai report its fifth consecutive full-year of profitability: His THighness Sheikh Ahmed Bin Saeed Al Maktoum, chairman of flydubai. Flydubai announced its full-year re- sults for 2016 reporting a profit of AED31.6 million ($8.6 million). It has reported total revenue of AED5 billion ($1.37 billion), an increase of 2.4 per cent compared to the same period last year.

The stronger second half, driven by increased passenger numbers, was impacted by downward pressure on yield leading to lower overall reve- nue growth reflecting a continuation of the same adverse factors reported in the first half.

His Highness Sheikh Ahmed Bin onboard offering. The continuation Ancillary revenue comprising bag- Saeed Al Maktoum, chairman of of mainly lower fuel prices and on- gage, cargo and inflight sales con- flydubai, said: “These results see going cost management efforts are tributed 13.8 per cent of revenue; flydubai report its fifth consecutive reflected in the 16 per cent improve- dropping from 15.1 per cent from the full-year of profitability. In 2012, our ment in terms of ASKM over the last previous year. third year of operation, we carried two years. We have however seen a 5.1 million passengers. This year, we difficult pricing and operating envi- Operational performance have carried 10.4 million passengers ronment.” Aircraft deliveries: 8 Next-Genera- demonstrating that flydubai con- tion -800 aircraft joined tinues to help change the way both EBITDAR was healthy at 21.1 per the fleet in 2016 in support of net- business and leisure passengers trav- cent of revenue; an improvement work expansion. The average age of el around the region. An established from the previous year’s figure of the fleet was 3 years 8.5 months. tourism destination and global center 20.5 per cent. for business together with the UAE’s Business Class: The growth in the geographic location has supported The closing cash and cash equiva- number of flydubai’s business class the need for increased connectivity.” lents position, including pre-delivery passengers continued and saw the payments for future aircraft deliver- airline carry 2.4 times the number Ghaith Al Ghaith, chief executive ies, remained strong at AED 2.3 bil- of passengers as in 2014. The Sub- officer (CEO) of flydubai, review- lion. continent saw the strongest demand ing the annual results for 2016, com- for business class carrying more than mented: “Over the last two years we Fuel costs were 25 per cent of oper- double the number of passengers. have seen passenger traffic grow cu- ating costs compared to 30.6 per cent This was followed by the Caucasus mulatively by 52 per cent in terms of in the previous year, against a back- which grew by 88 per cent, as a result RPKM. We continue to demonstrate drop of lower fuel prices for the year, of a liberalization of the visa rules, that we gain loyal customers across with legacy fuel hedges impacting creating an increased demand from our network who recognize the ben- only 21 per cent of the volume for both inbound and outbound traffic efits of direct air links and enjoy our full year 2016. flows. 

16 February 2017 UAE in Focus

Passenger traffic at Al Maktoum airport up 84.5%

assenger traffic at Dubai’s Al Maktoum International Airport surged 84.5 per cent in 2016, the state news Pagency of the UAE has reported.

The airport welcomed 850,633 pas- The airport opened for cargo traffic Dubai Airports said that DXB re- sengers last year, up from 461,063 in June 2010 and for passenger traffic corded has an annual traffic of 83.6 passengers in 2015, WAM reported, in October 2013. million passengers in 2016, up 7.2 quoting the airport’s operator, Dubai per cent year-on-year, solidifying its Airports. Passenger traffic growth at DWC is position as the world’s busiest civil mainly driven by the carrier flydu- aviation hub. Al Maktoum International Airport is bai, which operates on average 41 Dubai’s second international hub. weekly flights to five destinations The Dubai government is allocating a from DWC, in addition to its oper- total of $35 billion for the expansion “After having emerged as one of ations at Dubai International’s Ter- of Al Maktoum International Airport. the top 20 international cargo hubs, minal 2. DWC is now growing steadily in stat- Once completed, Al Maktoum aims ure as a passenger hub, and we are Air freight volumes at the airport to become the world’s biggest civil pleased with the growth in passenger slightly increased in 2016 to 897,998 aviation hub, with a capacity of han- traffic in 2016,” said Dubai Airports tonnes, up 0.8 percent compared with dling 143 million passengers annual- CEO Paul Griffiths. 890,912 tonnes in 2015. ly by 2025. 

February 2017 17 UAE in Focus

Emirates to deploy A380 to Sao Paulo

mirates, voted the World’s Best Airline in the 2016 Skytrax World Airline Awards, will operate the first ever scheduled commercial flight to South America Ewhen it upgrades its Dubai (DXB) - Sao Paulo (GRU) service on March 26, 2017.

Replacing the existing - 300ER used on this route, the A380 service will mark the airline’s 10th year of operations in Brazil, which it began with daily flights between Dubai and Sao Paulo in October 2007.

Emirates had already made history becoming the first airline to connect the Middle East and South America with a non-stop direct flight service. In 2012, Emirates expanded its presence in Brazil with the start of a daily service between Dubai and Rio de Janeiro.

“The Emirates A380 is an iconic aircraft that continues to excite our customers and set the benchmark for travel comfort in commercial Sao Paulo will join more than 40 The return flight, EK262, departs flying. destinations on Emirates’ global Sao Paulo (GRU) at 01:25 and lands network served by its highly popular in Dubai (DXB) at 22:55. We look forward to offering the A380 aircraft, including award-winning Emirates A380 Narita, , Hong Kong, Recently in October 2016, Emirates experience to our customers and Beijing, , Seoul, Shanghai, announced a codeshare and frequent to continue contributing to the and Guangzhou. flyer programme partnership with economic success of Brazil,” said GOL Linhas Aéreas Inteligentes Hubert Frach, Emirates Divisional Emirates SkyCargo, the freight S.A (“GOL”) allowing customers Senior Vice President, Commercial division of Emirates, facilitates trade to purchase connecting flights on Operations, West. between Brazil and its global trade both airlines using one reservation, partners. In addition to the cargo and a seamless ticketing, check- “We made significant investments to capacity offered on the A380 to in, boarding and baggage check upgrade the facilities at GRU Airport Sao Paulo, Emirates SkyCargo also experience during the entire journey. - São Paulo International Airport in operates a freighter twice a week order to make it A380-compatible. from Viracopos carrying Brazilian Emirates is the world’s largest We are very excited about Emirates’ exports to other global destinations. operator of A380s, with 92 currently decision to deploy the first A380 in From March 26, EK261 will become in its fleet and a further 50 on order. South America to our airport”, said an A380 flight, leaving Dubai (DXB) Since 2008, the airline has carried Gustavo Figueiredo, GRU Airport every day at 08:35 and arriving in over 65 million passengers on its CEO. Sao Paulo (GRU) at 16:30. flagship aircraft. 

18 February 2017 UAE in Focus

Etihad, in commercial partnership

tihad Aviation Group and Lufthansa German Airlines, part of Europe’s largest aviation group, have entered Einto a new commercial partnership. The two airline groups have concluded a much wider strategic collaboration catering services to Etihad Airways a $100 million global catering between our two organisations. It in 16 cities in Europe, Asia and agreement and a Memorandum of demonstrates the commitment of the Americas. This makes LSG the Understanding (MoU) to cooperate the Etihad Aviation Group Board largest provider of catering services in aircraft maintenance, repair and and to our European to the UAE’s national airline, outside overhaul. growth strategy.” its Abu Dhabi home base.

James Hogan, Etihad Aviation Group Carsten Spohr, Lufthansa Group Etihad Aviation Group and Lufthansa President and Chief Executive Officer, Chairman and Chief Executive Officer, Technik (LHT) also signed an MoU to said: “Partnerships are at the heart of said: “We welcome the opportunity to explore cooperation in maintenance, our strategy and remain fundamental strengthen our cooperation with the repair and overhaul services across for us to compete effectively Etihad Aviation Group. Etihad Airways and its airline and efficiently in a complex and equity partners, and opportunities competitive global market. Together we can create added for synergies with Etihad Airways value for our customers and Engineering. “Our collaboration with one shareholders. Partnering with the of the aviation industry’s most Etihad Aviation Group fits perfectly Etihad Airways and Lufthansa are established and recognised brands is with the Lufthansa Group›s global also exploring further cooperation undoubtedly the most significant non- strategy for our passenger airlines and in a number of areas, including equity partnership with an airline we service companies.» freight operations, procurement and have ever announced. passenger services to improve their The four-year catering contract will see competitive offering globally and in “This partnership is the platform for Lufthansa’s LSG Sky Chefs provide the European market.

The previously announced codeshare between the two airline groups went on sale from February 1, for flights between Abu Dhabi and Germany. Lufthansa will place its ‘LH’ code on Etihad Airways’ twice daily flights between its Abu Dhabi hub and both Frankfurt and Munich.

Etihad will put its ‘EY’ code on Lufthansa’s long-haul, non-stop intercontinental services between its home base of Frankfurt, the business and commercial capital of Germany, and Rio de Janeiro in Brazil and the Colombian capital, Bogota as soon as government approval is obtained. 

February 2017 19 Special Report Gulfstream sees significant pick-up

ulfstream Aerospace Corp., which showcased its flagship Gulfstream G650ER, the high-performing GG550 and the class-leading G280, has a strong presence in the Mena region with more than 120 aircraft. The UAE and Saudi Arabia account for the largest Gulfstream fleet in the Middle East.

20 February 2017 Special Report

The market demand for business jets Steve Cass, Vice President, Technical is likely to pick up significantly from Marketing and Communications, Gulf- 2018 onwards with strong, sustained stream, said that about 215 G650 ER Supersonic growth projections for global business were sold worldwide since its launch in travel spending over near to medium 2012 and there are already 25 owners of business jets term. G650 ERs in the region, including Qa- tar Airways with three and three more The business jet market is poised The long term demand drivers market on order. for a major technology led trans- fundamentals for business jets remain formation with the era of superson- intact, robust and firmly in place in- Talking about the performance of the ic business jets likely to become a dicating a sustained, steady demand aircraft, he said G650 ER flies at nine reality towards early to mid-2020s growth for business jets over medium tenths of the speed of sound and holds with a number of industry OEMs, led to long term. the world record for the Dubai to New by Gulfstream and Aerion-Airbus, York trip of 13 hours and seven min- actively pursuing R&D programs The global business jet market is ex- utes. aimed at development of a range of pected to reach $33.8 billion by the end supersonic flight technologies capa- of 2020, to grow at a CAGR of 6.86 per Despite a recent slowdown as a result of ble of enabling feasible supersonic cent. the falling oil price, Gulfstream’s fleet flights while meeting regulatory re- in the region has grown 16 per cent in quirements simultaneously. The G650ER, the company’s newest the past five years. flagship, is the world’s longest-range business jet and provides outstanding The Gulfstream G650 and G650ER are The four-living-area G650ER head- mission flexibility. Gulfstream has sold powered by two Rolls-Royce BR725 lined Gulfstream’s presence, “show- 25 G650s to Middle East customers engines and offer the longest range, casing the company’s commitment to including Qatar Executive, which has fastest speed, largest cabin and the most exceeding customers’ expectations for three in service with orders for three advanced flight deck in the Gulfstream customisation, comfort and craftsman- more as it gears up to become the re- fleet. ship,” according to Mark Burns, Presi- gion’s predominant charter operator dent, Gulfstream, who added that: “we with an almost all-Gulfstream fleet. The G650 and G650ER both use an have more than 120 aircraft based in advanced aerodynamic design, have the Middle East and North Africa. With “This has been a great market for the a maximum operating speed of Mach this growth, we continue to invest in G650ER,” said Trevor Esling, Region- 0.925 and can climb to a maximum product support capabilities through- al Senior Vice President, International altitude of 51,000 feet/15,545 meters, out the region, including expanding our Sales for Europe, the Middle East and allowing them to avoid airline-traffic parts and materials inventory at Dubai Africa. congestion and adverse weather. World Central.” 

February 2017 21 Special Report

Interchangeable modular plane interiors he new concept called ‘Transpose’ announced by Airbus uses swappable plane interiors to offer travellers everything from Trestaurants to spas to co-working spaces while aloft.

When it comes to innovation, the Called ‘Transpose’, the concept tinues to Istanbul, airport workers world’s airlines rarely demand mas- breaks an aircraft’s long, cylindri- could switch the bed modules for sive change from aircraft manufac- cal body into identical and repeata- a coffee shop and some desks, and turers. ble sections that can be customized the airline gets to meet the demands to any loadout needs. Through the of a new set of customers. Many don’t even want aircraft that program, an airline could reconfig- can fly farther. Airlines’ needs usu- ure cabins for every flight. One par- A carrier might add sleeping pods ally are basic, practical, and driven ticular section, for example, could and an in-flight coffee bar for a long by finances. be loaded with economy seats for and potentially lucrative Airbus two dozen passengers. Next to it, a A330 flight from to They want planes that will carry as bar, first-class section, sleeping Munich. But then the airline could many people and as much cargo as quarters or even a cargo hold could replace the pods and bar with extra possible, while burning less fuel be arranged. coach seats for the aircraft’s next than previous-generation aircraft. flight to Mumbai, which is shorter Those spaces, along with things and might have fewer high-value Plane maker Airbus has responded like spas and coffee bars, would be customers. to this demand and revealed plans built in modular sections. A plane for a new type of airplane cabin that running the red eye New York to By using technology now common could radically change the travel Paris would be mostly sleeping on all-cargo aircraft, Airbus is bet- experience. compartments. And if the jet con- ting an airline could transform cab-

22 February 2017 Special Report

ins in minutes or hours. Today, an tion arm, called A3, based in Sili- airline that installs a bar is stuck con Valley. The innovation centre Airbus is seeking with it on every flight until it ret- is located far from Airbus’ France to introduce a rofits an aircraft, a time-consuming headquarters so it can “disrupt Air- process that can take weeks or even bus Group and its competitors be- new platform that months. fore someone else does,” according could make it more to the company. Airbus has not fully worked out practical for airlines the technology, and it will be two As basic as the concept is, there is to four years before the compa- one major issue that could spook to temporarily install ny plans to show it off on a flying airlines: Existing passenger aircraft coffee shops, gyms, plane. When Airbus developed the cannot use this technology, in part A380 a decade ago, it promised because they do not have the cargo yoga studios, children’s airlines they could install casinos, door required to accept cabin mod- gyms, beauty salons and showers. ules. play areas, sleeping But except for two airlines that in- pods or bars. stalled showers, none of that stuff But Airbus has a fix. It makes car- ever came to market. go versions of its A330, and these aircraft are designed to cargo pal- Most carriers just prefer more seats. lets. What Airbus wants to do is tend not be as efficient because meld its existing freighter and pas- they’re designed to haul bulky “It’s a matter of, what can you do, senger jet designs to create a new freight. That could result in an air- versus what does it make sense to variant of aircraft capable of han- line being forced to fly a heavier, do?” said Scott Hamilton, an avia- dling modular cabins. It’ll use ex- and less fuel efficient, passenger tion industry consultant and blog- isting freighters as it base. aircraft than it wants. ger, who follows Airbus and Boe- ing closely. “The early 747s had “We are using a modified freighter “Usually, you have to take the piano bars in them. And with the variant of a commercial aircraft as airplane into your hangar or your A380, they talked about casinos our reference point, because that’s maintenance, repair and overhaul and showers. You had the flexibil- an alternative to spending decades vendor and do a complete recon- ity to do that. But it all depends on and billions of dollars on design- figuration of the aircraft,” Hamil- whether you want to give up the ing an entirely new aircraft,” said ton said. “That can take the aircraft seats.” Martin Sieben, the project’s chief out of service for some period of architect. time. Simple technology The technology Airbus proposes is That means an airline that wants If these can be put into modules simple, and similar to what cargo modular cabins will need to buy an and you don’t have a premium cost airlines already use. Airlines would aircraft that’s different than the rest to doing that, so much the better. have modular cabins they could in- of its fleet. But Sieben said carriers But if you are required to order a stall, and uninstall through a mas- should be willing to do so. freighter-type airplane to have that sive cargo door on the cabin’s main flexibility, you could be paying for deck. Carriers could move modules “Most airlines operate fleets that freighter capability that you don’t between flights as cargo operators are composed of a variety of dif- necessarily want.” shift freight pallets. ferent types of aircraft, so taking on Transpose-enabled aircraft Airbus isn’t yet saying exactly how Some flights might get a bar and a wouldn’t change that,” Sieben said. similar the new aircraft will be to gym, while others could have hun- a freighter. That’s partly because dreds of coach seats. Hamilton, the aviation industry con- it’s early. Sieben said the group is sultant, noted that using a freighter working through various problems, Airbus is working out the details platform for a passenger aircraft including how to manage the weight through its one-year-old innova- could be tricky. Freighter aircraft and balance of the aircraft. 

February 2017 23 Middle East News

Middle East carriers record strongest traffic growth

iddle East airlines consolidated the region’s position as the third largest market for international passengers with a capacity growth of 13.7% that Mcontinued to outstrip demand. meet that demand with infrastructure that can accommodate the growth, regulation that facilitates growth and taxes that don’t choke growth. If we can achieve that, there is plenty of po- tential for a safe, secure and sustain- able aviation industry to create more jobs and increase prosperity.”

Global airline capacity rose 6.2 per cent, with the average load factor, or percentage of seats occupied, climbing 0.1 per cent to a record annual high of 80.5 per cent. The IATA chief wel- comed the growing global demand, stressing that “our freedom to connect through air travel drives prosperity Middle East carriers recorded the European airlines saw their inter- and enriches societies.” strongest annual traffic growth in the national traffic expand 4.8 per cent, world for the fifth year in a row as while North saw “That freedom can only be given its global air passenger traffic grew 6.3 demand rise just 2.6 per cent in 2016. fullest expression when governments per cent in 2016 from a year earlier, facilitate the movement of people and according to International Air Trans- Alexandre de Juniac, Director Gen- goods,” he said, insisting that “avia- port Association (IATA). eral and CEO of IATA, warned tion is the business of freedom [and] against “protectionist agendas” that we must defend its social and econom- The strongest overall growth in inter- threaten reining in rising air travel. ic benefits from barriers to travel and national travel was recorded by car- He said the addition of more than protectionist agendas.” riers in the Middle East, with a 11.8 700 new airline routes last year, and per cent surge in revenue passenger the average fall in the price for return De Juniac said that facilitating global kilometres (RPKs), followed by the tickets of $44 “helped to make air travel was beneficial, and urged gov- Asia-Pacific region at 8.3 per cent, travel even more accessible.” This ernments to work with the industry to and Latin America and Africa at 7.4 allowed global passenger numbers to ensure “infrastructure that can accom- per cent. reach a record 3.7 billion. Last year’s modate the growth, regulation that hike was well above the 10-year av- facilitates growth and taxes that don’t Middle East carriers consolidated the erage annual growth rate of 5.5 per choke growth”. region’s position as the third largest cent. market for international passengers “If we can achieve that, there is plenty of with a capacity growth of 13.7 per He said demand for air travel is still potential for a safe, secure and sustaina- cent that continued to outstrip de- expanding. “The challenge for govern- ble aviation industry to create more jobs mand. ments is to work with the industry to and increase prosperity,” he said. 

24 February 2017 Middle East News

Kuwait Airways set to secure government funding

uwait Airways has been given the approval to access KWD600 million dinars ($1.96 billion) in capital funding from the KKuwaiti General Reserve Fund (KGRF). The disbursement was approved by ments for a fleet of 37 new Airbus and Chief Executive Officer Rasha Al- Kuwait’s Financial and Economic Af- Boeing aircraft ordered as part of the Roumi said in a press statement that fairs Committee (FEAC). airline’s renewal and growth strategy. the new plane represented a clear suc- cess story which supported plans for Kuwait’s National Assembly had ear- Kuwait Airways also announced the development adopted by the govern- lier rejected an initial application to arrival of its fourth aircraft of a fami- ment of Kuwait to become an attrac- withdraw the amount from KGRF. ly of long-range twin-engine jets, the tive financial and commercial centre Boeing 777-300ER (Kubbar), which for investment. A local MP had said that the airline had is part of a 10-plane deal expected to not provided parliament with an ad- be completed by the third quarter of One of the oldest airlines in the Gulf ministrative work and financial plan to 2017. region, the Kuwaiti government ac- justify the request hence its rejection. quired full ownership of Kuwait Air- The funding will be used to cover pay- Kuwait Airways Chairperson and ways in 1962. 

February 2017 25 Middle East News

Oman Air expands fleet with Boeing B737-800s, Dreamliner

man’s national carrier Oman Air announced that a new Boeing B737-800 Oaircraft has joined its fleet. This new aircraft will be used on of fleet and network expansion. Known for its energy efficient sys- short and medium haul routes and Oman Air has operated B737s for tems, combined with Oman Air’s has a capacity of 162 seats, with 12 many years and the aircraft provides superb maintenance staff and facili- business class seats with a seat pitch the backbone of the airline’s long ties, this is an ideal acquisition as we of 46 inches and 150 economy class and medium haul fleet, with 23 cur- spread our wings to further afield.” seats with a seat pitch of 30 inches. rently in operation. Each seat is equipped with an LCD With the addition of the new Boe- screen measuring 10.6 inches. The new aircraft will be deployed soon ing 737-800, Oman Air’s fleet on its arrival for commercial flights. stands at 48. Currently, Oman Air’s A new B737-800 aircraft will be Abdulaziz Alraisi, Executive Vice fleet consists of four Boeing 787 joining Oman Air’s fleet followed President Products and Brand De- Dreamliners, six Airbus 330-300s, by a Dreamliner B787-9. velopment, said: “In keeping up four Airbus 330-200s, five Boeing with the expansion programme, 737-900s, 23 Boeing 737-800, one The delivery of the new aircraft is part Oman Air is adding new aircraft to Boeing 737-700 and four Embraer of Oman Air’s ambitious programme its fast growing fleet. 175s. 

26 February 2017 International News

Airlines may avoid Heathrow over fears of a rise in landing charges

ajor airlines could drop Heathrow for Amsterdam over a hike in landing charges to pay for the Mairport’s third runway .

Several airlines could ditch flights from Heathrow over fears of a rise in landing charges to fund a third run- way, an industry source has warned.

Major airlines could opt to fly from rival airports such as Amsterdam’s Schiphol instead, over concerns that they could be forced to fork out to- wards Heathrow’s expansion.

Rafael Schvartzman, European Vice-President of the International Air Transport Association, said that airlines would only back the third runway if fees remained at current levels, The Times reported. to use the airport, meaning prices portunity to forge a new role in the could rise and passengers may end world. His comments came as it was re- up paying more for their flights. vealed Heathrow was already put- “We are determined to seize that ting plans in place to pass its expan- It was not immediately clear which opportunity and having the right in- sion costs on to airlines. airlines had suggested they may stop frastructure. By backing the North- running flights into Heathrow. west runway at A third runway at Heathrow Airport and publishing our proposals, we was given the go-ahead by the gov- Amid fresh fears that more house- are sending out a clear signal that ernment in October after proposals holds will be blighted by noise from when we leave the EU, we are open to expand its existing runway, or aircraft, Transport Secretary Chris for business.” build a second runway at Gatwick, Grayling argued that the airport’s were rejected. expansion is essential to post-Brex- Opponents of the third runway, in- it Britain as the country attempts to cluding local councils, MPs and The airport has already been given boost trade links around the world. environmental campaigners, have the go-ahead by the Civil Aviation vowed to continue their resistance. Authority to incorporate £10 million He said: “Aviation expansion is im- of early planning costs into its day- portant for the UK both in boosting Opponents of Heathrow expansion to-day running expenses. our economy and jobs and promot- have also raised concerns that the ing us on the world stage. Leaving government is not revealing where This means that airlines could be the EU is a new chapter for Britain the new flightpaths around the air- forced to foot the bill if they want and provides us with a great op- port will be. 

February 2017 27 International News

Low-cost carriers in Africa turning non-flyers into passengers

band of low-cost carriers is proving that continent Africa holds plenty of potential if proper A marketing strategy is applied. Running an airline in Africa is not for the faint-hearted, and there’s no shortage of carriers that have tried and failed to turn a profit. However, a band of nimble low-cost carriers is proving that the continent holds plenty of potential if you’re paying attention to the market.

When South African low-cost carrier Mango – a subsidiary of state- owned – launched in 2006, part of its mandate was to tap into the “unflown market,” namely people who had never taken it is for people to do business with Mango similarly widened payment a flight. you.” “African low cost carriers options for the budget market by have had to be innovative when it accepting store cards affiliated to The arrival of Mango’s additional comes to distribution because of the major clothing retail chains. capacity, particularly on the trunk costs involved in using the global routes connecting Johannesburg to distribution systems,” says Chris Along with making flying more the coastal cities of Cape Town and Zweigenthal, CEO of the Airlines affordable, carriers have been Durban, led to lower fares, but Mango Association of Southern Africa. “Plus adept at offering products suited to also managed to secure a sizable new it’s a dollar-based cost which, with specialized niche markets. customer base by pioneering entirely volatile exchange rates in Africa, puts new distribution channels. enormous pressure on the bottom line.” While tapping into the unflown market gave Mango its initial boost, Soon after launch, Mango became Online booking has equally allowed it’s also joined the growing number the first airline in Africa to offer low cost carriers to sidestep of low-cost carriers looking for a ticket sales at counters in a national traditional distribution systems. share of cost-conscious corporate mid-range supermarket chain. In bookings. 2016, it widened that reach by adding Through incentivizing customers by a second supermarket brand to the offering the lowest fares online, over distribution network. 60 percent of bookings for Kenyan Its MangoPlus product offers ticket carrier Jambojet are now made via flexibility and rebooking without “A large part of the unflown market the Internet. penalty, access to airport lounge in South Africa may not have access facilities, onboard catering vouchers to credit cards or the Internet,” More familiar to Kenyan travellers and discounted executive parking explains Hein Kaiser, spokesperson is the use of mobile payment at Africa’s largest airport, Oliver for Mango. “The more accessible solution M-Pesa, which Jambojet has Tambo International Airport in you make your product the easier embraced. Johannesburg. 

28 February 2017 International News

European Commission to tackle aviation emissions

he European Commission has said it was amending the European Union (EU) Emissions Trading System to tackle Tcarbon dioxide (CO2) emissions from aviation.

The Commission said in a press re- sectors of the economy, said the re- Global aviation industry CO2 emis- lease that the system would require lease. sions were expected to increase quick- airlines to monitor and report their ly and were set to rise by almost 300 annual CO2 emissions on internation- This step came after the International percent over the next decades, unless al routes and offset those exceeding Civil Aviation Organization (ICAO) adequate action was taken, according 2020 levels. adopted a resolution to establish a to a Commission document. global, market-based measure to off- Between 2013 and 2016, commer- set CO2 emissions from international The Commission’s proposal to revise cial airlines covered by the system aviation and contribute to the carbon the Emission Trading System is to be contributed to more than 65 million neutral growth of the sector from discussed by European Parliament tonnes of CO2 emission reductions 2020 onwards in the tri-annual assem- and the European Council, which are and these reductions have taken place bly in 2016. expected to finalize the process by the either within the sector or in other end of the year. 

February 2017 29 Opinion

A new chapter for aviation

neutrality. This is an impressive result. Over the next two years, ICAO will lay out the technical rules of the GMBM scheme and the EU will ensure that they meet expectations. In parallel, the Commission is currently analysing the impact of the GMBM in the context of the EU Emissions Trading System (EU ETS) for aviation. Non-European flights were temporarily Violeta Bulc excluded from the scope of the EU ETS in 2013 (“stop EU Commissioner for Transport the clock”) and we will shortly need to decide if this exclusion should be prolonged beyond 2016.

However, a market-based measure alone will not be enough to significantly reduce aviation emissions. The agreement reached by the Assembly of the Complementary measures such as aircraft technologies, International Civil Aviation Organisation (ICAO) operational improvements and sustainable alternative on emission opens a new chapter in the history of fuels are equally important if we are to effectively kerb aviation; one where sustainability finally becomes part CO2 emissions from aviation. I sincerely hope that of the way we fly. As of 2021, 66 states – including there will be some breakthrough on these files in 2017. all Europeans – will be covered by a Global Market- All in all, we may have achieved a lot in Montreal but Based Measure (GMBM), whereby airlines flying it is still far from mission accomplished.  between these countries will offset the growth of their CO2 emissions.

It is the first-ever globally binding agreement to address CO2 emissions in a specific sector of the economy. I hope that other sectors, such as Edited excerpts from a presentation at International Airport international shipping, will follow. Approximately 80 Review 2017 Leaders’ Searies. per cent of the growth of emissions above 2020 levels will be offset by the GMBM scheme between 2021 and 2035. It is obviously a very positive development that the aviation industry is moving towards carbon neutral growth.

I note with great satisfaction that the airport industry, especially in Europe, is living up to the challenge, in particular via the Airport Carbon Accreditation Programme.

Out of the 170 accredited airports worldwide, 113 are located in Europe and of these 24 have reached carbon

3030 February February 2017 2017 Opinion

ATM’s vital role

ir traffic management (ATM) has a vital role Ato play in reducing carbon emissions through operational efficiencies such as: getting rid of fixed routes so aircraft can fly the most efficient and shortest flight path; allowing aircraft to fly at the optimum altitude and speed over oceanic airspace rather than mandating a fixed speed and altitude; smoother arrival and departure flight profiles at Jeff Poole, airports rather than traditional stepped profiles; Director General, Civil Air Navigation Services Organisation and reducing delays through collaborative decision making between ATM, airports and airlines.

Air navigation service providers are doing their bit to reduce emissions but states have a vital role to The third area is the harmonisation of airspace, play in three areas. so that a plane can fly using the most efficient operational route, thus saving emissions. Aviation The first is investing in ATM infrastructure. Air transcends national boundaries, so airspace needs to traffic is growing over five per cent annually. Rising be organised, and air navigation services delivered, demand without increases in capacity adversely in line with the operational requirement of airspace impacts safety and efficiency. We need states to users rather than according to national borders. invest in modern, efficient, ATM infrastructure to Our goal is to enable planes to navigate seamlessly cater for growth. Huge investments are made by across national borders, selecting the most efficient airports and airlines. Quite simply, the benefits routes.  of huge investments in airports and airlines are threatened by inefficient and fragmented ATM infrastructure.

Airports, airlines and ATM infrastructure must go hand-in-hand: there is no point in having a modern, Edited excerpts from a speech at the Global Sustainable efficient airport and a modern efficient airline Aviation Forum, Montreal without also modernising ATM to improve capacity and overall performance.

Second, states should modernise air navigation services by implementing the Aviation System Block Upgrades. ASBUs give a clear road map to achieve the necessary infrastructure improvements. They will improve aviation safety, enhance efficiency for airlines, and increase connectivity to boost GDP.

February 2017 31 Airlines

JetBlue curbs growth projection

etBlue is joining other U.S. carriers known as unit revenue, typically range of 5.5 percent to 7.5 percent Jin the effort to keep the number declines when capacity grows faster above last year. Plans for this quarter of seats and flights in check to gain than demand and carriers are forced remained unchanged, the carrier said more control over pricing. to cut fares to fill seats. in a statement.

JetBlue, the New York-based carrier, The carrier estimated last month that “The net impact, along with is trying to catch up with larger unit revenue would fall as much as incremental revenue initiatives U.S. airlines, which have been 9 per cent and said it would review not discussed on the call, should slowing growth to stanch bleeding expansion plans. positively impact earnings, in the closely watched measure of particularly in second half 2017,” revenue from each seat flown a The airline cut its target for capacity Savanthi Syth, a Raymond James mile. The industry benchmark, also growth by 1 percentage point to a Financial Inc. analyst, said in a report.

“We believe investors will view favourably the quick response by JetBlue,” she said. The cuts are focused on April and May, which aren’t months of peak demand, and overnight transcontinental flights, Syth said.

As a result of the capacity change, costs for each seat flown a mile excluding fuel will rise 1.5 percent to 3.5 percent this year from 2016, one-half percentage point more than originally expected, JetBlue said. 

Nepal Airlines rebuilding fleet

epal Airlines, formerly Royal in a nation entirely dependent on its airline’s ageing Boeing 757s, which NNepal Airlines, is acquiring two neighbours for fuel supplies. have been in service since 1987 and new aircraft from Europe and two will be phased out completely by short-haul planes from China. They also offer the potential to serve 2018. more routes, further afield, including The two A320-200 planes purchased Europe, where all Nepali airlines Before the move, the Nepal Airlines from Airbus in Germany are the first have been banned from flying since fleet was notorious for mechanical wide-body aircraft to be operated by 2013. issues, and faith in the airline was a Nepali airline, and were specifically further dented in 2007 when two selected for their suitability for The two aircraft arrived from goats were sacrificed on the tarmac at flights into mountainous areas, with Hamburg in 2015, and have already Kathmandu airport to appease Akash advanced navigation technology and been put to work on routes to Asia Bhairab, the Hindu god of the sky, as superior fuel economy – essential and the Middle East, replacing the part of repairs on a faulty aircraft. 

32 February 2017 Airlines

Southwest has no plan to copy rivals with basic economy fare

n an age where legacy carriers are racing to strip down Iand simplify economy fares, Southwest Airlines made a pro- consumer move by taking a stand.

Southwest Airlines CEO Gary Kelly said his airline has no plan to introduce a basic economy fare and blasted his competitors for treating some passengers like “second-class” customers.

At American Airlines and , passengers who buy some everything, including onboard food reported American and United will cheap fares later this year will not be and drink, advanced seat assignments charge for bin space, but that’s not permitted to stow large carry-on bags. and access to overhead bins. But their true. Customers will not even have that base fares are cheap, and many U.S. option — they will need to pay to check Kelly, who has worked at Southwest for consumers are flying them instead of all larger bags. three decades, argued it’s not prudent legacy airlines. to risk the airline’s brand’s equity Southwest is not a legacy airline, but to squeeze more revenue from cost- In introducing their own no-frills over time, it has lost some of its cost conscious consumers. fares, American, Delta and United say advantage over American, Delta and they are merely reacting to consumer United. Today, it has nowhere near the “We have a very powerful brand,” he preference. They want to give cost base of airlines like Frontier and said on Southwest’s fourth quarter passengers a choice. They can either fly Spirit, so when Southwest competes on earnings call. “There is huge value in on cheap fares with Spirit or Frontier, price with discounters but offers a far offering our customers — 100 per cent or they can buy similarly priced fares better value, its margins suffer. of them — a great product. … We strive on American, Delta and United. But if to keep the customer experience and the they buy those cheap fares on the Big 3, But Kelly said it’s still not a good idea product offering as simple as possible. they’ll forgo some extras, such as free for Southwest to sell a no-frills fare. Any time we contemplate offering advanced seat assignments and ability a choice, we debate that heavily. to change their tickets. “If we were to undertake a ‘basic’ Complication creates confusion and it product, the only thing we could do is dilutes the brand.” There’s also the matter of bin takeaway from [our regular experience,] space. Delta continues to let passengers Kelly said. “We wouldn’t let you American, United and on its basic economy fares bring large make a change. You would board last. view it differently. They argue they carry-ons for overhead bins. But United You couldn’t bring a carry on. That must compete on price with the three and American, both of which will begin complicates the message. We have domestic ultra low cost carriers — selling their fares soon, will only permit spent 45 years educating our customers Frontier, Spirit and Allegiant. The travelers to bring small personal items about what to expect when they come to discounters charge extra for nearly into the cabin. Some publications have Southwest. 

February 2017 33 Cargo & Logistics

Middle East freight volumes and demand rise ir cargo ends 2016 on a positive note as Middle Eastern carriers’ freight volumes increased 11.2% year-on-year in ADecember and capacity increased 5.9%. Middle Eastern carriers’ freight second fastest growth rate of all the Middle East and Asia, and the Middle volumes increased 11.2 per cent year- regions. However this was the region’s East and Europe, according to the on-year in December and capacity slowest pace of growth since 2009 and International Air Transport Association increased 5.9 per cent. well below the 12 per cent average (IATA). annual rate seen over the past decade. This contributed to an annual increase The slowdown in growth is mainly due IATA data for global air freight markets in demand of 6.9 per cent in 2016, the to weak freight volumes between the showing that demand, measured in

34 February 2017 Cargo & Logistics

freight tonne kilometers (FTKs) grew an increase in the shipment of silicon bounce-back. The increase in demand by 3.8 per cent in 2016 compared materials and a turnaround in new is captured in the positive outlook to 2015. This was nearly double the export orders contributed to the later from business surveys in the region. industry’s average growth rate of 2.0 uptick in demand. Capacity in the region increased 3.6 per cent over the last five years. Freight per cent in 2016. capacity, measured in available freight The early timing of the Lunar New Year tonne kilometers (AFTKs), increased (in January 2017) may also have helped North American airlines saw freight by 5.3 per cent in 2016. push demand higher in December. demand increase by 3.7 per cent in December 2016 year-on-year and All regions, with the exception of Latin “In terms of demand, 2016 was a good capacity decrease 1.4 per cent. This America, experienced positive freight year for air cargo. That was boosted by contributed to modest annual growth in growth in 2016. Carriers in Europe solid year-end performance. Looking 2016 of 2.0 per cent, up from 1.3 per accounted for almost half of the total ahead, strong export orders are good cent the previous year. Capacity grew by annual increase in demand. news. But there are headwinds. The 3.4 per cent in the 2016 calendar year. most significant is stagnant world trade The strength of the US dollar continued After a weak start to 2016, global which also faces the risk of protectionist to boost its inbound market but kept the freight volumes recovered in the second measures. Governments must not forget export market under pressure. half of the year. A strong peak season, that trade is a powerful tool for growth and prosperity,” said Alexandre de European airlines posted a 16.4 per cent Juniac, IATA’s Director General and year-on-year increase in freight demand CEO. in December and a capacity rise of 5.9 per cent. “The air cargo industry must also improve its competitiveness. We know The healthy results helped boost cargo that the way forward is defined by digital volumes for the 2016 calendar year by processes which will drive efficiency 7.6 per cent - the largest increase of all and improve customer satisfaction. We regions, and accounting for almost half must use the momentum of renewed of the total global annual increase in demand growth to drive the important freight demand. innovations of the e-cargo vision,” said de Juniac. The seasonally-adjusted growth trend is strong and corresponds with the Regional Performance sustained increase in export orders in Freight volumes grew by 3.8 per cent in Germany and the ongoing weakness 2016 compared to 2015, outperforming in the Euro. Capacity in the region forecasts. All regions, with the increased by 6.7 per cent in the 2016 exception of Latin America, reported calendar year. an increase in demand in 2016. African carriers’ had the second Asia-Pacific carriers saw demand in fastest growth in year-on-year freight freight volumes grow 9.8 per cent in volumes, up 13.6 per cent in December December 2016 compared to the same 2016 and a capacity increase of period in 2015 and capacity grew by 5.7 5.3 per cent. This contributed to an per cent. This contributed to a growth annual growth in freight demand of in freight demand of 2.1 per cent in 3.1 per cent in 2016, down from 4.5 2016 compared to 2015. This was per cent in 2015. However, capacity slightly below the 2.3 per cent increase surged by 25.5 per cent in the 2016 seen the previous year. However, calendar year on the back of long-haul seasonally-adjusted volumes are now expansion, particularly by Ethiopian back to the levels reached in 2010 Airlines, causing a fall in the freight during the post-global financial crisis load factor. 

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Cross-border e-commerce to grow to $900 billion through 2020

ross-border e-commerce will increase at an annual average rate of 25 per cent till 2020, from $300 billion to $900 billion, Caccording to research published by DHL Express. That rate is twice the pace of shipping and customized last-mile the positive impact that selling to domestic e-commerce retailers options correlated to 60 percent international markets can have on and manufacturers in the six higher growth rates than e-retailers our customers’ business growth,” countries featured in the study, who didn’t offer such options. said Ken Allen, CEO, DHL Express. and underscores the importance of trade in an era when protectionism “Shipping cross-border is much, “We also see that virtually every seems to be on the rise. Faster much easier than many retailers product category has the potential shipping options, such as express believe, and we see every day to upgrade to premium, both by developing higher quality luxury editions and by offering superior levels of service quality to meet the demands of less-price-sensitive customers.

The opportunity to ‘go global’ and ‘go premium’ is there for many retailers in all markets.”

DHL’s study found that supply and demand were increasingly excluding the “middleman” in favour of direct B2C e-commerce.

Manufacturers that take advantage of e-commerce to move to “direct retail models that offer their products online to the end customer can expect to grow 30 percent faster in cross-border e-commerce than other retailer groups. 

36 February 2017 February 2017 37 Technology The ultimate cure for jet lag assengers of long flights really dread jet lag. The medical community has taken the next step Ptoward finding a cure. The longest flights in the world are just getting longer. Emirates’ latest route from Dubai to clocks in at a startling 16.5 hours — it’s the lengthiest flight on the market — and plans to launch a new 17-hour route between and London in 2018. But painful as long-haul flights can be, it’s their aftermath — jet lag — that you should really be dreading.

That might soon change, though. The medical community has taken the next step toward finding a jet- lag cure, thanks to a Salk Institute study published last year in Cell. According to Dr. Ronald Evans, the lead author of the study, a protein called Rev-ErbA (pronounced ree-verb-AY) may be the key to unlocking a regular, healthy circadian rhythm no matter where (or when) in the world you are. Biological clock Turns out, the circadian rhythm, a physiological cycle that roughly matches up with the length of a day, doesn’t just regulate when we feel sleepy — it also regulates when we get hungry and when we feel most active.

“Under normal circumstances,” metabolism. In other words, you regulate itself: Rev-ErbA does. Evans said, “we sleep when it’s dark can fight jet lag by consuming (and According to Evans’s study, the and wake up and eat when the sun burning) calories at the right times as protein acts as a sort of master rises.” well as trying to sleep at proper times. switch that coordinates the “turning on and off” of genes that regulate our Eating is a key point: Circadian Jet lag pills circadian rhythms, including those rhythm is about both sleep and Your circadian rhythm doesn’t involved in metabolism.

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Pinpointing that master switch and understanding how it works is the first step to controlling it artificially. Tips for weary travellers By regulating both the amount of Rev-ErbA in the body as well as how You are what you eat. “Be sure not a trip; thanks to Evans’s study on much it fluctuates over the course of to eat a protein- or fat-rich dinner Rev-ErbA, we now know that you a day, we might eventually find a the night before travel,” said Snyder. can shift your meal schedule, too. cure for jet lag. “Not only will that make you feel Snyder said “we should fast while heavy [on the plane], but it also on the plane, and then eat soon And it doesn’t end there: The same directs energy into digestion through after landing, in order to reset our science may eventually offer relief to the night.” This makes it harder to rhythm.” And if you land with a people with chronic sleeping issues fall asleep in flight — as if it weren’t ravenous appetite at midnight, try and other chronic conditions that challenging already. Skipping the to avoid an absurdly late dinner. can develop as a result of a disrupted plane food doesn’t hurt, either. Instead, “time your first meal to circadian cycle. match the nearest meal time of your You’re also what you drink. “Drink new time zone,” she said. Body’s master switch plenty of water and bring natural A pill that prevents jet lag is still years vitamin C or antioxidant packets to Supplements help. You know to take down the road, but plenty of simple mix into your water on the plane and melatonin if you can’t fall asleep but specific strategies let you take after your flight,” advised Snyder. in your new time zone. But what matters into your own hands. Yes, She said travelers should also avoid about magnesium oxide? It can different strokes work for different caffeine prior to, during, and after keep your digestive health in check folks — frequent road warriors tout travel, since it is dehydrating and can (we’re talking about the end process everything from popping a pill before have deleterious effects the nervous of nutrition here), which contributes takeoff, to doing yoga on arrival, to system. a “regular” circadian rhythm. apps — but the more we understand the mechanisms that create jet lag, If you do drink, go with the frequent Be realistic. If you don’t recover from the better equipped we are to pick travelers’ rule of thumb: two glasses jet lag in the first day or two, don’t and choose our tactics. of water for every cup of coffee. beat yourself up. Some travelers are faster adapters than others, and Evans’s biggest takeaway is to Get ahead of the game. Some circadian clocks can be adjusted only place equal importance on all three shift their sleep schedules before bit by bit. of those pillars of circadian rhythm when resetting your schedule in a new time zone. The sooner you’re moving around, sleeping, and eating Instead, said Evans, you should Sunlight, she said, “helps signal at the right times, the sooner you’ll wake up at a normal hour and head and reset our circadian rhythms,” adjust. off-site for a morning meal: It’ll allowing our bodies to adapt more reset both your activity and feeding quickly. The heightened role of diet in cycles while getting you some fresh fighting jet lag led us to call in air and forcing you to wake up at a Snyder added that what you order nutritionist Kimberly Snyder reasonable time. for breakfast can also make a for extra advice; her clients difference. To combat the stresses include such A-listers as Kerry Counterintuitive as that sounds, of travel, avoid those fatty, sugary Washington, Channing Tatum, and it’s far better than easing into your foods we all crave when we’re Ben Stiller, and she’s recently co- morning under the hotel duvet with a sleepy and instead eat foods rich in written a book with Deepak Chopra cup of coffee. “We can use food and amino acids and antioxidants, such that discusses circadian rhythms at light exposure to adjust more rapidly as asparagus, broccoli, avocado, length. Her pro tip: Skip the hotel by timing when we eat, sleep, wake spinach, and garlic. Avocado toast breakfast. And don’t even think up, and are exposed to natural light,” and veggie omelets never looked about room service. she advised. better. 

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