Issue 96 - Mar 2015 Official Monthly Bulletin of AACO Arab world marks an increase of 4.1% AVIATION WITHIN THE ARAB WORLD GLOBAL ARAB AVIATION in January 2015 in international passen- ger numbers - p. 9 GROWTH p: 12 SPREADING OUT p: 30 PARTNER AIRLINES p: 50 - 59

ARAB AIRLINES ECONOMICS p: 13 INDUSTRY PARTNERS p: 60 - 87 Group Security signs MoU with TOURISM p: 37 AACO to extend University Diploma Pro- COLLABORATION p: 38 AACO & RTC CALENDARS p: 88 - 91 grammes - p. 22 NEW APPOINTMENTS p: 17 EXPANSION p: 17 ENVIRONMENT p: 40 AACO MEMBERS & PARTNERS p: 92 - 95

UAE ranks number 1 globally in avia- LAURELS p: 20 REGULATORY TONE p: 42 tion safety standards - p. 47 TECHNOLOGY & E-COMMERCE p: 21 AN AVIATION MARKET IN FOCUS: ITALY p: 44 TRAINING p: 22 WORLD NEWS p: 46 MRO p: 24

ARAB AIRPORTS p: 24

ATM p: 27

Daily news on www.aaco.org Issue 96 - Mar 2015 As a strategic initiative to broad- Airlines in the region also announced several plans to enhance and en the platform of education boost connectivity in the Arab world. added Qatar to its in aviation security and ground destinations originating from Ras Al Khaimah, while handling, the Arab Air Carriers debuted its B787 Dreamliner in Tunisia. launched direct flights Organization signed an MoU with between Jeddah and Al-Ula, and plans to start operating direct flights Emirates Group Security to ex- between Tabuk and Cairo starting from 30 March 2015. It’s worth tend two University Diploma Pro- mentioning that passenger traffic between the KSA and Egypt -wit grammes. The University Diploma nessed a record growth in 2014, reaching 1,805,491 passengers in in Aviation Security Management both directions who were transported on board 9,956 scheduled and and the University Diploma in non-scheduled flights. Details on routes connecting the Arab world Ground Handling are being in- with other regions are available on page 31. In addition, page 19 dis- ducted as part of AACO RTC’s plays the latest fleet data of AACO members that are deployed on training curriculum in Jordan and routes within the Arab world and with other regions; the figures show Egypt. These two diplomas are that 41 new aircraft entered into service between November 2014 jointly developed by Edith Cowan and January 2015. Foreword University of Western Australia and Emirates Group Security. Also, aiming at increasing travel choices to the travellers, Arab airlines continue to bolster relations with other airlines, whereby, Royal Air Looking at the latest develop- Maroc will provide its passengers with new destinations in the US by ments during the past month in codesharing on JetBlue flights to 22 destinations; Qatar Airways also the Arab air transport industry, enhanced its codeshare agreement with with the various 2014 figures have been addition of further codeshare routes; while and Air announced by four Arab airlines, Seychelles added more codeshare routes to their agreement. whereby, (RAM) ended 2014 with a traffic increase As for airports, some Arab airports issued figures last month on the of 6% compared to 2013 where number of passengers handled in 2014. King Fahd International Air- the airline carried more than port transported 8.5 million passengers in 2014; an increase of 12% 6 million passengers on board compared to 2013 numbers; whereas, King Abdulaziz International 67,100 flights. revenues Airport handled a record of 28 million passengers in 2014, a 5.6% in- in 2014 reached USD 1.2 billion crease over 2013 figures. Air passenger numbers at Muscat and Sa- of which USD 68 million is a net lalah airports grew in 2014 by 13% and 5% respectively. The new Ha- profit, while Air Arabia’s 2014 mad International Airport (HIA) announced a 13% passenger growth full year net profit climbed by in 2014 in comparison to 2013. This means over three million more 30% to reach USD 154.09 million. passengers travelled using Doha’s airport in 2014 compared to 2013; as well announced an noting that HIA operations were inaugurated in May 2014. In the increase in revenues of 0.81% in UAE, passenger traffic at Abu Dhabi International Airport increased by 2014 compared to 2013. 20.7% in January 2015. Also, January 2015 was a record month in the

Daily news on www.aaco.org Issue 96 - Mar 2015 5 Aviation in the Arab World number of passengers handled at Dubai International Airport, which We focus on the Italian aviation market in this issue. With a popula- reached 6.89 million passengers while DWC’s freight volumes surged tion of 60.78 million people, more than 115 million passengers used by 262.5% to reach 758,371 tons in 2014 compared to 209,209 tons Italian airports in 2013, creating a ratio of 1.89:1 of passengers to in 2013; noting that the completion of the shift of all freighter opera- population. The Italian aviation market linked 217 cities worldwide tors from DXB to DWC in May 2014 triggered this massive surge. With in January 2015, whereby the highest share of traffic of Italy is with the growth of the UAE air traffic that is expected to rise from 2,200 Europe (more than 84% of total traffic share between Italy and other flight movements a day in 2014 to 5,100 flight movements in 2030, regions) with -Milan city pair having the highest number of the UAE GCAA launched a major en-route and flow management ini- seats offered from Italy in January 2015. More details are available on tiative with Airbus ProSky. page 44.

Separately, according to UNWTO forecasts, by 2030 the MENA region could receive 195 million tourist arrivals (almost triple the present volume of 70 million tourists) benefiting both established and emerg- ing destinations. Moreover, the UNWTO stated that governments are further recognising the benefits of visa facilitation; noting that this is- sue is one of the main hindrances standing against stimulating further air travel demand within the Arab world. According to the UNWTO report, 62% of the world’s population was required a traditional visa prior to departure in 2014, down from 77% in 2008. In 2014 too, 19% of the world’s population was able to enter a destination without a visa, while 16% could receive a visa on arrival, as compared to 17% and 6% in 2008.

Meanwhile in the US, the US Environmental Protection Agency (EPA) is due to issue a proposed determination of whether carbon pollution from aircraft endangers public health or welfare in May. The US avia- tion sector and environmental groups are voicing their different posi- tions in open letters to the agency and the FAA.

Globally, The International Civil Aviation Organisation (ICAO)’s Univer- sal Safety Oversight Audit Programme ranked the UAE as the highest in the world in compliance with international aviation safety stan- dards after intensive audit. The UAE scored a success rate of 98.86%, which is the highest rate in history given by ICAO.

Daily news on www.aaco.org Issue 96 - Mar 2015 7 Aviation in the Arab World Happened in 1965 OVERALL TRAFFIC - ARAB WORLD On 25 August 1965 the bylaws of AACO were signed We estimate international passenger numbers to, from, & within the by the following member airlines, at that time: Arab world to have grown by 4.1% in January 2015 compared to Janu- • ary 2014, which follows an increase of 8.8% in December 2014 com- • pared to December 2013.

• Monthly International Passenger Numbers' Change To, From and Within the Arab World • Saudia Feb14 to Jan15* compared to same month in previous year • Syrian Arab Airlines 14% • United Arab Airlines 12% • Misrair 10% • 8% • 6% • 4% • Air Liban 2% • Lebanese International Airways 0% • Trans Mediterranean Airways

Sudan Airways Comet at London - LHR airport in 1965 Effect of Ramadan

YoY Growth 12-Month Average Growth Source: AACO, IATA *Estimated In January 2015, AACO members increased the number of their of- fered seats to, from, and within the Arab world by 18.9%, while other airlines decreased their number of seats offered by (10.8%), leading to 10.4% year-on-year increase in the total number of seats offered.

Daily news on www.aaco.org Issue 96 - Mar 2015 9 AVIATION WITHIN THE ARAB WORLD Aviation in the Arab World

GROWTH Monthly International Passenger Numbers' Change Within the Arab World Feb14 to Jan15* compared to same month in previous year PASSENGER TRAFFIC International passenger numbers within the Arab world are estimated to have 18% grown by 5.1% in January 2015 compared to January 2014. This follows an 16% increase of 7.9% in December 2014 over December 2013. 14% 12% However, the recent developments that are taking place in Libya are behind 10% the decrease in passenger traffic within North Africa, as highlighted below. 8% 6% Passenger traffic within the Arab World Jan 15* over Jan 14 4% Within Arabian Peninsula 8.9% 2% 0% Within Near East 19.1% Within North Africa (56.4%) Between Arabian Peninsula & Near East 13.7% Between the Near East and North Africa (22.3%) Effect of Ramadan Between Arabian Peninsula & North Africa (3%) YoY Growth 12-Month Average Growth Source: AACO, IATA *Estimated Source: AACO, IATA *Estimated International Passenger Numbers' Change Within the Arab World Oct14-Dec14 & Nov14-Jan15* compared to same period in previous year 30% ARAB AIRLINES ECONOMICS 20% Royal Air Maroc reports strong performance in 2014: Royal Air Maroc (RAM) 10% ended 2014 with a traffic increase of 6% compared to 2013. In 2014, RAM car- ried more than 6 million passengers on board 67,100 flights. Nearly 5.4 million 0% passengers were carried on RAM international flights during 2014. within -10% within N East within N Traffic increase was achieved despite the difficult and highly competitive en- Arabian Pen N East Africa N East N Arabian Pen N Africa vironment. Total seats offered by airlines operating to and from the Moroc- -20% Africa Arabian Pen can market grew by 10% in 2014, while air passenger traffic witnessed a 6.7% -30% growth in 2014 compared to 2013.

-40% Furthermore, RAM expanded its fleet by acquiring 4 Embraer E-190s and a B787-8 Dreamliner. Currently, RAM has a fleet of 52 aircraft. -50% Moreover, RAM has signed several agreements to enhance its operations. The -60% company signed a partnership agreement with the Italian operator Trenitalia Railways to provide RAM passengers with discounts on TGV tickets in Italy. -70% RAM signed an interline agreement with GOL Linhas Aéreas Inteligentes to Oct14-Dec14 offer new connection opportunities for travelers between Morocco and Latin

Nov14-Jan15* America. From 1 November 2014, Terminal 2 at Mohammed V International Airport became dedicated for RAM international flights. Source: AACO, IATA *Estimated In 2014 RAM launched new routes from to each of Sao Paulo, Passenger numbers within the Arab world reported a 7.2% growth between Tenerife, Munich, N’Djamena, Montpelier, Paris Charles de Gaulle, Errachidia, October 14 & December 14 compared to same period in the previous year. Zagora, and Tetouan. RAM has also launched routes connecting Marrakech to each of London Gatwick, , Milan, and Genève. A route connecting Passenger numbers within the Arab world reported a 6.6% increase between Béni Mellal with Milan was also launched. RAM Cargo launched four all-cargo November 14 & January 15* compared to same period in the previous year. routes from Casablanca to Dakar, , Ouagadougou and Niamey. RAM also plans to launch a new route between Tangier and Gibraltar in March

Daily news on www.aaco.org Issue 96 - Mar 2015 13 Aviation in the Arab World

2015, following an agreement between the airline and the Department of Using any other airline or alliance on these unique routes would require at Transport of Gibraltar. The new route will connect Europe with Africa in less least one more additional stop. than 30 minutes. Considering the breadth of Emirates’ network and how air travel demand is RAM currently serves 87 destinations in 48 countries. expected to double in the next 5-10 years, Emirates is well positioned to bring a growing number of tourists and business travellers to Europe, further en- Emirates’ operations in Europe: A €6.8 billion impact on GDP: Emirates and abling trade and investment. Frontier Economics released the results of a socio-economic impact study that To read more about Emirates’ economic impact in the EU, please click here. measures Emirates’ contribution to the European economy. *Including Emirates’ operations and the catalytic impact of the 220 unique Frontier estimates that Emirates’ operations, including the catalytic impact of connections it offers. the 220 unique connections it offers, supported 85,100 jobs across the EU in To view the video click here 2013/14, equivalent to €6.8 billion GDP of the total EU GDP. In addition, Emir- Download Emirates’ Economic Impact in the EU - infographic ates’ Airbus A380 deliveries for the same period supported 41,000 jobs, equiv- alent to €3.4 billion GDP. Emirates sees brand value grow for 4th consecutive year to USD 6.6 billion: “Emirates is fully committed to the European market. The relationship goes Emirates has reached the top 200 of the world’s biggest brands for the first back to 1987 when we first started flying from Dubai to London Gatwick. Since time, according to the 2015 Brand Finance Global 500 report released recently. then, we have witnessed growth based on demand and now operate over 350 For the fourth consecutive year, Emirates has steadily climbed the table of the passenger flights a week from Europe, providing global connectivity via our top 500 most valuable brands in the world. Now sitting at #196, an increase of hub in Dubai,” commented Sir Tim Clark, President of Emirates Airline. “Emir- 38 spots in just 12 months, the airline attributes its success to a strong com- ates’ economic impact is significant; based on Frontier’s report, we supported mitment to product and service excellence, as well as investments in its brand. over one hundred thousand jobs across Europe through our operations and Emirates’ estimated brand value has grown more than 21% from USD 5.48 bil- our aircraft purchases from Airbus. By stimulating demand for travel and -car lion to USD 6.6 billion. The airline also retains its long standing position as the go, especially in markets underserved by other airlines, Emirates contributes most valuable brand in the Middle East, and the most valuable airline brand. to the economies of the communities we serve.” The study conducted by Frontier demonstrates that Emirates’ presence in 28 Etihad Airways acquires majority stake in ’s Millemiglia frequent flyer European cities significantly contributes to regional development, especially in program: Etihad Airways has acquired a 75% stake in Alitalia Loyalty S.p.A, the non-hub markets that have traditionally been overlooked by other carriers. owner and operator of MilleMiglia, Alitalia’s frequent flyer program, with Ali- “Some of Emirates’ competitors have in the past accused the airline of hav- talia retaining the remaining 25% stake. ing a negative impact on Europe, but the Frontier analysis paints a different Alitalia Loyalty will become part of Global Loyalty Company (GLC), a loyalty picture. Our research shows that the direct, indirect and induced impact of and lifestyle company that allows Etihad Airways and its partners to target the Emirates’ operations and the development of connectivity to secondary cities global loyalty market more effectively, whilst driving technology and back -of in particular, makes a substantial contribution to EU GDP”, stated Dan Elliott, fice synergies. GLC also consists of Etihad Airways’ Etihad Guest, airberlin’s founder and Director of Frontier Economics. “The economic value this connec- topbonus and Jet Airways’ JetPrivilege programs. Together, Etihad Guest, top- tivity brings to the EU is at times underappreciated, and something that merits bonus, JetPrivilege and MilleMiglia have a combined total of 14 million mem- attention.” bers worldwide. The Value of Connectivity:Traditionally, international travel from Europe in- volved flying from or often backtracking to one of the big European hubs. This 2014 sees flydubai achieve increased revenues of USD 1.2 billion up 19.1% contributed to a connectivity gap for other major European cities, restricting and profits of USD 68 million:flydubai announced its Annual Results for 2014 their ability to develop trade and Foreign Direct Investments (FDI) opportuni- and reported a net profit of USD 68 million an increase of 12.3% compared to ties. Since launching services to Europe in 1987, Emirates has helped bridge 2013 with total revenue of USD 1.2 billion for the 12-month period, ending 31 this gap, by gradually and on the basis of demand, increasing services to major December 2014. and secondary cities across Europe. Operational Performance: flydubai carried 7.25 million passengers in 2014 The Frontier analysis, which covered 28 cities served by Emirates in 16 EU and has carried 24.3 million since it launched its operations. It saw an increase Member States, identified a total of 220 routes from Europe that are unique to in passenger numbers between 2013 and 2014 in Africa (14%), Central Asia Emirates. 21 of these are non-stop connections from European cities to Dubai, (57%), Europe (11%) and the Subcontinent (11%). and the remaining 199 routes are unique one-stop connections, via Dubai.

Daily news on www.aaco.org Issue 96 - Mar 2015 15 Aviation in the Arab World

In a year that saw the airline add 23 new routes, creating a network of 86 numbers. Air Arabia carried over 6.8 million passengers in 2014, 12% more destinations, flydubai also increased frequency on many of its existing routes. than 2013. The average seat load factor – or passengers carried as a percent- Weekly flight frequencies to Beirut increased from 14 to 21, to Kuwait from 53 age of available seats – for the same period stood at 81%. to 77, to Muscat from 28 to 41, to Salalah from 3 to 5 and Tbilisi which went to These results were announced following a meeting of the Board of Directors of a daily service. The airline now operates 1,400 flights per week. Air Arabia, who have proposed a dividend distribution of 9% of capital, which Its network across its geographic focus grew by the number of routes in Africa is equivalent to 2.45 US cents per share. This proposal is subject to ratification (100%), in Central Asia (66%), Europe including Russia (40%), the GCC (7%), by the shareholders of Air Arabia at the company’s upcoming AGM. Middle East (30%) and in the Subcontinent (38%). Air Arabia’s net profit for the fourth quarter, stood at USD 18.51 million, a drop All aircraft delivered since August 2013 have been configured with Business of 28% compared to USD 25.59 million for the same period in 2013. The drop Class. flydubai took delivery of eight new Next-Generation Boeing 737-800 in the fourth quarter 2014 was mainly due to a temporary downward correc- aircraft and ended the year with a fleet of 43 aircraft. tion in the fuel hedge portfolio, which will regain its benefits going forward. In October, it completed to schedule its rolling retrofit programme to config- The airline’s turnover for the last quarter of 2014 was USD 251.56 million, an ure the existing aircraft in its fleet with Business Class. The first seven aircraft it increase of 14% compared to USD 220.79 million reported for the same period received between 2009 and 2010 were not part of the retrofit programme. in 2013. Passenger traffic for the fourth quarter 2014 reached 1.7 million, an flydubai also enhanced the business class offering on the ground with the increase of 8% compared to the same quarter of 2013. opening of the flydubai Business Lounge at Terminal 2, Dubai International. Moreover, flydubai continued to strengthen its experienced team increasing Tunisair revenues increase in 2014: According to figures published by the Tu- the number of staff to 2,883 including 571 pilots, 1,235 cabin crew and 221 nis Stock Exchange, the revenues of Tunisair reached USD 656 million in 2014, engineers representing more than 111 nationalities across flydubai’s -work compared to USD 552 million in 2013, reflecting an increase of 0.81%. force. However, the number of passengers transported by Tunisair fell by 5.11% year- Cost Performance: Total revenue and operating income increased by 19.1% to on-year, from 3,712,960 passengers in 2013 to 3,523,107 passengers in 2014. USD 1.2 billion with a capacity increase (ASKM) of 9.3%. Tunisair’s load factor has improved, reaching 71.8% in 2014 compared to EBITDAR[1] growth is in line with the increase in revenue and is at a healthy 70.5% in 2013. rate of revenue at 22.1%. Source: The North Africa Post Fuel remains the single largest cost at 36% of the total operating costs and though lower than the previous year has benefited from the downward trend in fuel prices starting from the last quarter of 2014. Currently 30% of fuel re- NEW APPOINTMENTS quirements for 2015 are hedged. Other ancillary revenue items including inflight entertainment, onboard sales, Saudia Director General announces Mr. Jonaid as CEO of Saudia Airlines: H.E. seat preferences, checked baggage allowance, car rental, hotel bookings, trav- Eng. Saleh Al Jasser, Director General of Saudia, appointed Mr. Abdulmohsen el insurance and visa facilitation services continue to be strong and comprise Jonaid as Chief Executive Officer of Saudia Airlines. 14.4% of total revenue. Mr. Jonaid replaces Mr. Abdulziz Al Hazmi who was assigned to be the Senior flydubai continued its strategy to diversify its sources of funding. In November Advisor to the Director General of Saudia. it issued a landmark debut Sukuk transaction successfully raising USD 500 mil- lion. EXPANSION [1]EBITDAR is calculated as earnings before interest, taxes, depreciation, amor- tisation and rental costs ROUTES Source: flydubai Aircraft Airline From To Date Weekly Freq. Type Air Arabia 2014 full year net profit climbs 30%:Air Arabia announced its fi- G9 Ras Al Khaimah Doha 22 Feb. 15 4x A320-200 nancial results for the full year ending 31 December 2014, reflecting another year of continued growth and high levels of profitability. QR Doha Tunisia 17 Feb. 15 7x B787 Air Arabia reported a record net profit for the full year ending 31 December Jeddah Al-Ula 26 Feb. 15 2x 2014 of USD 154.09 million, up 30% compared to USD 118.43 million for the SV N/A same period in 2013. The airline’s turnover for the full year 2014 reached USD Tabuk Cairo 30 Mar. 15 3x 1.01 billion, an increase of 17% on 2013, driven by increased passenger

Daily news on www.aaco.org Issue 96 - Mar 2015 17 Aviation in the Arab World

Air Arabia adds Qatar to its destinations originating from Ras Al Khaimah: Capacity* of Top 10 Carriers within the Arab World (Int’l Operations) Air Arabia announced the addition of Doha to the list of destinations it serves Airline ASKs (Million) Departures Seats directly from its recently opened Ras Al Khaimah hub, its second hub in UAE. As at 22 February 2015, the carrier started flying four weekly flights to Qatar, EK 1,312.4 2,710 906,056 bringing the total number of destinations operated from the Ras Al Khaimah MS 972.5 3,042 636,996 International Airport to nine. SV 921.3 2,907 596,011 QR 871.3 4,718 933,275 Qatar Airways’ B787 Dreamliner debuts in Tunisia: Qatar Airways has ex- tended its Boeing 787 Dreamliner route network to Tunisia with the launch of FZ 737.4 3,628 685,692 services to capital city Tunis from 17 February 2015. EY 472.2 2,166 344,552 The introduction of the Dreamliner on the daily flights between Doha and G9 421.0 2,052 332,424 Tunis brings an additional capacity of more than 92% compared to the A320 RJ 304.9 1,718 230,978 which was being operated on the route. Qatar Airways’ daily seat capacity to Tunisia has grown from 132 seats on the A320 to 254 seats on the 787 Dream- GF 281.4 2,872 409,478 liner aircraft. XY 270.2 1,210 217,800 Qatar Airways is the first airline to commence with a scheduled 787 Dream- Grand Total 8,541.1 37,297 6,914,821 liner service to Tunisia. * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Qatar Airways has 254 custom-made seats across its 787 Business and Econo- FLEET my Class cabins. Business Class is configured in a 1–2–1 layout with 22 seats, while Economy has a 232 seating capacity in a 3–3–3 layout. All seats in Busi- Quarterly Development of Arab Airlines’ Fleet ness Class are reclinable with fully-flat beds. Apr 14(1) over Jan 14 Jul 14(2) over Apr 14 Oct 14(3) over Jul 14 Jan 15(4) over Oct 14 Added Removed Added Removed Added Removed Added Removed Saudia launches direct flights between Jeddah and Al-Ula: Saudia started A/C A/C A/C A/C A/C A/C A/C A/C operating direct flights between Jeddah and Al-Ula on 26 February 2015 in its 5 A320 2 A300 12 A320 6 A320 9 A320 1 A300 7 A320 3 A320 strategic framework to meet the demand of the increasing passenger traffic 4 A330 5 A320 4 A321 1 A321 1 A321 2 A319 1 A321 2 A330 between the various Saudi cities, in addition to support and bolster domestic 1 A380 6 A321 2 A330 8 A330 8 A330 11 A320 5 A330 7 A340 tourism. The new service is being operated on biweekly basis. 1 ATR-72 2 A330 1 A340 9 A340 9 A340 2 A321 1 A340 1 ATR 42 1 B727 4 ATR-72 3 A380 1 A310 5 A380 6 A330 7 A380 5 B737 Saudia launches direct flights between Tabuk and Cairo:Saudia announced its plans to start operating direct flights between Tabuk and Cairo starting 36 B737 2 B737 5 ATR 72 7 B737 7 B737 1 A340 14 B737 2 B777 from 30 March 2015. 6 B777 1 B747 6 B737 1 B747 12 B777 1 B727 7 B777 3 CRJ900 Flights between Tabuk and Cairo will be operated three times a week. 1 B787 1 B777 5 B777 3 B777 3 B787 1 B737 7 B787 It is noteworthy to mention that passenger traffic between the KSA and Egypt 2 E190 3 B787 4 E190 1 E190 3 CRJ900 3 E190 witnessed a record growth in 2014, reaching 1,805,491 passengers in both di- 1 MD-90 1 C-130 1 DHC8 rections who were transported on board 9,956 scheduled and non-scheduled flights. 1 DHC6 2 IL-76 4 DHC8 1 E195 CAPACITY AND DEMAND 4 MD-11F

Passenger Air Services Within the Arab World - Jan. 2015 - SRS Analyzer (1) AACO members increased the number of seats offered within the Arab world flydubai fleet added (2) 26 new aircraft have entered into service by 17.5% in January 2015 compared to January 2014 whereas other airlines (3) Air Go Egypt fleet added; 18 new aircraft have entered into service decreased that number by (47.1%), leading to an 8.3% year-on-year increase (4) 41 new aircraft have entered into service in the total number of seats offered within the Arab world. Available Seats within the Arab world for international and domestic routes flydubai takes delivery of its 44th aircraft:flydubai recently took delivery of constituted 24.6% and 10.2% respectively of the total available seats to, from, its 44th Boeing 737-800 NG aircraft. flydubai’s fleet is with an average age of and within the Arab world in January 2015. of 3.1 years. This first delivery in 2015 will see flydubai realize its original busi- ness plan as it will receive its 50th aircraft later in 2015. Daily news on www.aaco.org Issue 96 - Mar 2015 19 Aviation in the Arab World LAURELS wins four awards at OAMC 2nd Annual Awards Ceremony: Oman Air has scooped four awards at the Oman Airports Management Company Second Etihad Airways named “Airline of the Year” at Aviation 100 Awards:Etihad Annual Awards ceremony, held at the Shangri-La Barr Al Jissah Resort and Spa Airways has clinched top honours at the 2015 Aviation 100 Awards, organized in Muscat on 22 February 2015. by Airline Economics magazine. The awards are voted for by the industry and Oman Air was recognized as one of the top five airlines by number of passen- recognize outstanding achievement in the aerospace sector, with Etihad Air- gers carried at Muscat International Airport. It also received an award as one ways claiming the coveted “Airline of the Year” title. of the top three airlines at Salalah International Airport, as well as receiving accolades in the Non-Aeronautical and Stakeholder of the Year 2014 catego- Etihad Airways wins 2015 Airline of the Year award for cabin technology in- ries. novations:Etihad Airways has been presented with the 2015 Airline of the Oman Air has also been recognized for its service quality and punctuality at Year award by leading IFEC and cabin technology magazine Inflight, published airports around the world. by HMG Aerospace. The Inflight awards ceremony took place at the Aircraft Interiors Middle East expo held in Dubai in February. The awards are judged by an independent panel of industry experts against a TECHNOLOGY & E-COMMERCE set criteria. Etihad Airways won the award based on the high levels of service, Etihad Airways sees surge in fleet-wide inflight connectivity usage:Etihad cabin technology and innovation provided to its guests on all its flights. Airways, which in March becomes one of the few airlines in the world to of- fer fleet-wide inflight connectivity services, has witnessed a dramatic surge in Etihad Airways recognized for CSR approach at UAE sustainability awards: Internet and mobile phone usage in 2014. Etihad Airways was successful at the Abu Dhabi Sustainability Group’s first Reflecting the broader trend for people to use their personal devices for work awards ceremony where the airline received two awards for “Best Sustainabil- and entertainment when travelling, the growth was largely driven by people ity Communication Program” and “Sustainability Manager of the Year”. logging onto Etihad Airways’ Wi-Fi network, with usage rising by 80% in 2014. In the first category for Best Sustainability Communication Program, the airline Increased demand for onboard mobile services also contributed to the surge was successful for its “BIOjet: Flight Path to Sustainability” program while Mrs. in usage, with 2.6 million devices connecting to the airline’s onboard mobile Linden Coppell, Head of Sustainability at Etihad Airways, won the “Sustainabil- network in 2014. Inflight texts and mobile phone calls increased by 62% and ity Manager of the Year” award. 61% respectively, compared to the same period in 2013. flydubai wins the award for “Best airline IFEC provider for the Middle East” signs agreement with Intel Security to enhance IT security solutions: at the Inflight workshop and regional awards: The UK’s HMG Aerospace an- Gulf Air announced an agreement with Intel Security™ to provide security so- nounced that flydubai has won for the second year in a row the “Best airline lutions including system security, network security and security management IFEC provider for the Middle East” at the third Inflight Magazine Awards, which solutions to Gulf Air*. took place at the Inflight workshop and conference, during the Aircraft Interi- Gulf Air is committed to protecting its IT systems, and its ongoing commit- ors Middle East show in Dubai on 2 February 2015. ment to securing its critical IT systems both on the ground and onboard its fleet is reflected in a continuous review and assessment of its cyber security EgyptAir goes green with IATA award: EgyptAir has been awarded the IATA measures. By implementing McAfee Data Loss Prevention (DLP) to protect the Fast Travel “Green” status which was instituted by the airline association to most valuable business data, Gulf Air’s Information Security team can help facilitate travel procedures and save time and effort of customers. avert potential risks related to data loss. Implementation of McAfee DLP is de- Mr. Adel Helal, EgyptAir’s stations General Manager said the company got its signed around the “Gulf Air – Data Loss Presentation Model”. “green” status as 20% of its passengers used self-services, the main condition The agreement will address Gulf Air’s Information Security requirements on for getting this status. The airline covered four of the six areas of the project. multiple levels. It will include Intel Security’s professional services which will Source: Arabian Aerospace assist Gulf Air in improving their understanding of security risks, and optimiz- ing its Information Technology security. Intel Security’s Complete Data Protec- Oman Air named Best Airline at Chittagong: Officials in Bangladesh have tion suite includes Encryption to help Gulf Air safeguard data in transit and on named Oman Air as the Best Airline Operating to and from Chittagong. The rest, in addition to Email Security Solution which will help protect Gulf Air’s prestigious award was made on the United Nations International Migration critical email services. Day, by the Bureau of Manpower, Employment and Training Center, part of * No computer system can be absolutely secure. Bangladesh’s Ministry of Expatriates’ Welfare and Overseas Employment.

Daily news on www.aaco.org Issue 96 - Mar 2015 21 Aviation in the Arab World

Gulf Air signs an Enterprise Agreement with Microsoft to boost ‘Smart’ busi- “We are delighted with this strategic initiative to broaden the platform of -ter ness: Gulf Air announced on 23 February 2015 the renewal of its Enterprise tiary education in aviation security and ground handling education which will Agreement with Microsoft. As technology is changing fast, creating opportu- certainly complement the existing vocational and industry-specific training pro- nities and challenges to businesses, it is vital to empower the business with grammes. Students who sign up for these diploma courses will be embarking Microsoft latest products in order to be better equipped to respond to market not only on a learning journey from the aspects of the civil aviation profession changes. The agreement, which secures better business visibility and higher but also the road towards attaining academic qualifications. This will augur well internal engagement, was signed by Gulf Air A/Chief Executive Officer, Mr. for those who wish to pursue further academic programmes and play a strong Maher Salman Al Musallam, Gulf Air’s Director of Information Technology, Dr. role in professionalising the industry,” said Edith Cowan University’s Professor Jassim Haji and Microsoft’s General Manager in Bahrain and Oman Mr. Sherif Nara Srinivasan, Pro-Vice Chancellor (Emirates Engagement) and Professor of Tawfik, in a meeting held at the airline’s headquarters and attended by senior Security and Risk. management from both organizations. “Aviation security has become a foremost priority, equal in its importance to Under the Enterprise Agreement, Gulf Air will benefit from a range of cloud- safety. The fundamental premise upon which airlines, airports and the whole based solutions and services that will help them improve their operational civil aviation industry is based, depends upon providing safe and secure travel productivity and workforce efficiency in a cost-effective and timely manner. to the public. It is an honour and a privilege to collaborate with Emirates, one Gulf Air will also gain access to extensive technical and operational support of the best airlines in the world and one of the most forward-looking compa- from a team of Microsoft’s experts. nies in the field of aviation,” said Mr. Abdul Wahab Teffaha, Secretary General of AACO. Mr. Teffaha added: “Emirates is known to use the latest technologies and tech- TRAINING niques in all operational domains including aviation security. Combining Emir- ates’ experience with the educational expertise of Edith Cowan University, and Emirates Group Security signs MoU with Arab Air Carriers Organization to the regional expertise of the AACO RTC, we believe these customised courses extend University Diploma Programmes: The Centre of Aviation & Security will deliver high-quality training to industry professionals. I am confident that Studies (CASS), the academic arm of Emirates Group Security and the Arab the MoU that we signed with the Centre of Aviation & Security Studies (CAAS) Air Carriers Organization Regional Training Centre (AACO RTC), have signed a of Emirates Group Security paves the way to future collaborative efforts aimed Memorandum of Understanding (MoU) to extend two University Diploma pro- at furthering the industry’s excellent record in security.” grammes to the members of the Arab Air Carriers Organization (AACO). The University Diploma in Aviation Security Management and the University NAS Holding announces the launch of the Aircraft Engineers Maintenance Diploma in Ground Handling are being inducted as part of AACO RTC’s training Programme (AEMP): NAS Holding announced the launch of new training op- curriculum with its offices in Jordan and Egypt. These two courses are jointly portunities ending with employment as part of the Aircraft Maintenance Engi- developed by Edith Cowan University of Western Australia and Emirates Group neers Programme, which is a NAS Holding Human Resources Programme. Security. The AEMP is the latest in a series of NAS Holding training programmes for “The two University Diploma Programmes are excellent examples of high- Saudi youth, Future Pilots, which targets graduating 150 First Officers and from quality management training which have been tailor-made for professionals which 70 trainees have graduated to date; the Flight Dispatchers Programme working in the aviation industry. Designed specifically to improve management targeting 50 graduates out of which 10 trainees have graduated to date; and practices in aviation security and ground handling, both programmes tap on the Cabin Crew Programme which is currently in progress and has a target the practical experience of Emirates’ CASS, the regional expertise of AACO, and graduating more than 150 cabin crew. the academic excellence of Edith Cowan University of Western Australia. We believe these courses add to the educational and professional development opportunities available to those working in aviation, and ultimately help sup- port the growth of the aviation industry in the MENA region,” said Dr. Abdulla Al Hashimi, Divisional Senior Vice President of the Emirates Group Security. The courses, administered by CASS and academic staff from Edith Cowan Uni- versity, consist of an 18-month programme which involves self-study, tutorials and examinations.

Daily news on www.aaco.org Issue 96 - Mar 2015 23 Aviation in the Arab World MAINTENANCE, REPAIR & OVERHAUL 28,037,867 passengers in 2014, a 5.6% increase over 2013 figures. It is noteworthy to mention that the number of operating air carriers at the Gulf Air and extend cooperation in landing gear:Gulf Air and Luf- airport greatly increased in 2014 to reach 86 air carriers, compared to 60 in thansa Technik have early extended their existing cooperation in landing gear 2013; nevertheless, during Hajj and Umrah seasons of 2014, the number of air overhaul for the airline’s Airbus A320, A321 and A330 fleet. carriers serving the airport reached 98 (scheduled and non-scheduled flights). The new contract, which commenced in February 2015, will end in December 2020. The contract comprises landing gear overhaul and exchange for com- Air passenger numbers at Muscat and Salalah airports grow in 2014: Air pas- plete shipsets. The overhaul work will be executed at the Lufthansa Technik senger numbers at Muscat and Salalah airports have grown in 2014 compared landing gear shop in Hamburg/Germany. to 2013, with Salalah Airport recording a 13% increase in total passenger num- Lufthansa Technik first entered into a landing gear agreement with Gulf Air in bers. Muscat International Airport, meanwhile, recorded almost 5% increase in 2011 and has performed ten overhaul events in total, to date. passenger numbers during the period, including transit travelers. Source: Arabian Aerospace Muscat International Airport received more than 8.7 million passengers in 2014 compared to 8.3 million in 2013; while 841,970 passengers were wel- ARAB AIRPORTS comed at Salalah airport in 2014 up from 745,372 in 2013. Figures indicate that international passengers at Muscat International Airport Top 20 Airports by International Seats Offered on Operations To, From, and rose by 4.6% to 7.87 million whereas the growth in domestic passengers was Within the Arab World - January 2015 higher at 7.4% translating into 837,661 passengers. The growth figures for Top 20 Airports by Int’l Seats Offered on Operations To, From, and Within Salalah airport were 41.9% in terms of international passengers, and 4.8% for the Arab world domestic passengers, or 233,403 and 608,567 passengers respectively. Airport Number of Seats Airport Number of Seats Source: Times of Oman DXB 9,074,553 IST 847,407 Hamad International Airport announces 13% passenger growth in 2014:Ha - DOH 3,454,662 CMN 803,275 mad International Airport (HIA) announced a 13% passenger growth in 2014 in AUH 2,338,520 AMM 786,917 comparison to 2013. This means over three million more passengers travelled JED 2,082,686 LHR 781,202 using Doha’s airport in 2014 compared to 2013. CAI 1,677,485 BEY 728,670 HIA saw a total of 26,356,392 travelers departing, arriving and transiting through its passenger terminal complex in 2014. Of these, 10.6 million passen- KWI 1,337,279 CDG 629,133 gers travelled through Doha International Airport, Doha’s former commercial RUH 1,128,895 BOM 565,311 airport, and 15.7 million passengers travelled through Hamad International BAH 1,099,821 DMM 563,798 Airport, which started its commercial operations on 27 of May 2014. MCT 1,066,277 ALG 561,361 Source: Hamad International Airport SHJ 854,443 TUN 513,782 Abu Dhabi International Airport sees 20.7% increase in traffic for January Source: AACO, SRS Analyzer 2015: Abu Dhabi Airports announced that passenger traffic at Abu Dhabi In- ternational Airport increased by 20.7% in January 2015. A total of 1,887,631 King Fahd International Airport transports 8.5 million passengers in 2014: passengers passed through Abu Dhabi International Airport during the month, The number of passengers at King Fahd International Airport reached 8.5 mil- compared with 1,564,266 in January 2014. lion passengers in 2014, an increase of 12% compared to 2013. Moreover, There were 14,128 aircraft movements in January 2015, which was an 18% aircraft movements at the airport rose by 8.8% in 2014 compared to 2013. At increase over January 2014’s figure of 11,972. Cargo activity comprised 64,479 the freight level, the airport handled more than 120 thousand tons. tons handled at the airport’s three terminals in January 2015, an 11% increase These figures were highlighted in the airport’s annual figures for 2014. Figures when compared to January 2014. also indicated that there 36 airlines operating to and from the airport, serving In January 2015, the top five routes from Abu Dhabi International Airport were 65 domestic and international destinations. Bangkok, London, Doha, Manila and Jeddah. The top five routes accounted for 16% of all traffic in January. King Abdulaziz International Airport welcomes 28 million passengers in 2014: Source: Abu Dhabi Airports King Abdulaziz International Airport reached a record number by welcoming

Daily news on www.aaco.org Issue 96 - Mar 2015 25 Aviation in the Arab World Al Maktoum International Airport registers growth in freight volumes and AIR TRAFFIC MANAGEMENT passenger traffic in 2014:Freight volumes and passenger traffic at Al Mak- toum International at Dubai World Central (DWC) reached record levels in UAE GCAA launches major en route and flow management initiative with 2014 according to the fourth quarter and year-end traffic report released by Airbus ProSky: The aviation industry is a key enabler of the UAE economy. operator Dubai Airports. With growth of air traffic expected to increase from 2,200 flight movements DWC welcomed 845,046 passengers in its first full year of passenger opera- a day in 2014 to 5,100 flight movements daily in 2030, optimizing airspace is tions, boosted mainly by the arrival of a number of passenger carriers during critical to handling increasing capacity demands, efficiency and overall growth. the runway refurbishment programme at Dubai International from 1 May to Recognizing such importance, the General Civil Aviation Authority (GCAA) has 20 July. The annual figures were also increased by traffic during the fourth strategically invested in understanding its airspace challenges and implement- quarter, during which DWC handled 110,920 passengers. ing the necessary changes. Freight volumes at DWC surged 262.5% to 758,371 tons in 2014 compared to The agreement also includes a Collaborative Air Traffic Flow Management 209,209 tons in 2013, due to the completion of the shift of all freighter op- (ATFM) study and operational trial. The output shall result in a concept of erators from DXB to DWC by May 2014. The airport registered growth in the operations specific to the UAE environment. fourth quarter with cargo volumes reaching 238,520 tons, up 278.4% com- In the 2012-2103 airspace study, Airbus ProSky identified Air Traffic Manage- pared to 63,028 tons recorded during the same period in 2013. ment (ATM), airspace and Communication, Navigation and Surveillance (CNS) The increased activity in passenger and freight operations at DWC propelled challenges resulting in 53 recommendations for improvement. the number of annual aircraft movements by 91.6% to 47,655 compared to A comprehensive airspace design is a key element ensuring the airspace will 24,871 during 2013. The airport recorded 11,687 aircraft movements during be optimally used to support growing aviation needs and activity levels. It also the fourth quarter, up 47% compared to 7,948 during the corresponding pe- leverages capabilities as they are deployed as part of ICAO Block Upgrades and riod in 2013. will accommodate the transition to a full Performance Based Navigation (PBN) Source: Dubai Airports airspace environment. The UAE FIR is predominantly a complex En Route environment with the ma- Dubai International Airport welcomes 6.8 million passengers in January jority of traffic spending around 85% of the flight distance flown in a climb or 2015: Dubai International Airport welcomed more than 6.8 million passengers descent phase. The conceptual designs that will be created by Airbus ProSky in January. According to the traffic report issued by operator Dubai Airports will interface the appropriate connectivity to Control Areas CTA’s, which is key on 2 March 2015, passenger traffic rose 7.7% to 6,895,668 in January 2015, up to ensuring integration into the overall UAE network route structure and inter- from 6,400,706 in the same month in 2014. national interfaces. In 2014, the airport welcomed 70.4 million passengers, and is expected to rise Source: Airbus ProSky to 79 million in 2015. Regionally, Eastern Europe remained the fastest-expanding market in terms of percentage growth* (+71.9%), followed by North America (+16.9%), the Indian subcontinent (+12.2%) and Asia (10.5%). Russia & CIS recorded fewer visitors with traffic dropping -22.7% due to the political and economic instabil- ity in the region, while traffic on Australasian routes also registered a marginal dip of -1.6%. Routes to the Indian subcontinent (+171,552 passengers), AGCC (+115,317 passengers), and Western Europe (+105,409) topped in terms of growth in passenger numbers. Aircraft movements totaled 34,643 in January 2015, up 6.2% compared to the 32,625 movements recorded in January 2014. Freight volumes at Dubai International continued the downward trend in Janu- ary, contracting 5.5% to 186,230 tons, from 197,021 recorded in January 2014. The contraction is the result of a total of shift of cargo operations to Al -Mak toum International at Dubai World Central since May 2014. Source: Dubai Airports

Daily news on www.aaco.org Issue 96 - Mar 2015 27 GLOBAL ARAB AVIATION Global Arab Aviation

Monthly Passenger Numbers' Change To and From the Arab World SPREADING OUT Feb14 to Jan15* compared to same month in previous year PASSENGER TRAFFIC Passenger numbers on routes to and from the Arab world are estimated 12% to have grown by 3.8% in January 2015 compared to January 2014, after a 10% growth of 9.1% in December 2014 over December 2013. 8%

Traffic to and from the Arab world Jan 15* over Jan 14 6% With the Americas 0% 4% With Europe 1.7% 2% With Mid Asia 6.7% 0% With Far East and Australasia 1.6% With Sub Saharan Africa 7.5% Source: AACO, IATA *Estimated Effect of Ramadan Passenger Numbers' Change To and From the Arab World Oct14-Dec14 & Nov14-Jan15* compared to same period in previous year YoY Growth 12-Month Average Growth 18% Source: AACO, IATA *Estimated 16% ROUTES 14% Airline From To Date Weekly Aircraft type 12% Freq. AT Casablanca New York 22 Feb. 15 unchanged B787 10% Nairobi 1 May. 15 unchanged A330 to B777- 8% EK Dubai 300ER Bali 3 Jun. 15 7x B777-300ER 6% EY Abu Dhabi Kolkata 15 Feb. 15 7x A320 4% Shiraz 8 Mar. 15 2% Isfahan 11 Mar. 15 FZ Dubai N/A B737-800 0% Ahwaz 14 Mar. 15 Hamadan With the 16 Mar. 15 Americas With Europe Tabriz Oct14-Dec14 With Mid Asia With G9 Ras Al Kathmandu 22 Feb. 15 2x A320-200 AustralAsia With Sub- Khaimah Nov14-Jan15* Saharan Africa Sulaymaniyah IAW Manchester 15 Mar. 15 N/A B737-800 Source: AACO, IATA *Estimated Erbil Passenger numbers to and from the Arab world market reported an 8.5% Singapore 1 Jun. 15 14x to 21x A350 XWB growth between October 14 & December 14 compared to the same period in Cape Town 1 Oct. 15 5x to 7x B787 previous year. QR Doha Durban via Johannes- burg 17 Dec. 15 4x B787 Passenger numbers to and from the Arab world market reported a 6.7% in- crease between November 14 & January 15* compared to the same period in Singapore 29 Mar. 15 7x A330 previous year. WY Muscat Goa 29 Mar. 15 4x B737 Dhaka Aug. 15 4x A330

Daily news on www.aaco.org Issue 96 - Mar 2015 31 Global Arab Aviation

Royal Air Maroc enhances its flights between Casablanca and New York by Air Arabia adds Nepal to Ras Al Khaimah destination list:Air Arabia has an- launching the B787 Dreamliner service: Royal Air Maroc’s B787 Dreamliner nounced Kathmandu as the latest destination to be served from the recently aircraft landed in New York on 22 February 2015, in its first long-haul flight launched Ras Al Khaimah hub. On 22 February 2015, the carrier started flying since it first received the aircraft in January 2015. With this flight, Royal Air two weekly flights to Kathmandu, the 10th destination which travelers can now Maroc has enhanced its operations between Casablanca and New York by of- access from the Northern Emirates. fering this service onboard the B787 Dreamliner aircraft. Air Arabia currently serves Kathmandu with triple daily flights from its main The B787 aircraft offers 274 seats, of which 18 seats of them are dedicated to hub at Sharjah International Airport. the Business Class. Moreover, the new service will reduce the flight time from Casablanca to New York by 25 minutes.It is noteworthy to mention that Royal Iraqi Airways launches two new routes linking Iraq with Manchester Airport: Air Maroc will receive its second B787 aircraft in April 2015, while the other 3 Iraqi Airways announced the addition of two new services linking Iraq with B787s will be received in March 2016, April 2016 and March 2017 respectively. Manchester. Starting from 15 March 2015, the airline will begin services from Sulaymani- Emirates increases capacity on its double daily Nairobi service: Emirates will yah and Erbil to Manchester. Both routes will be operated by a Boeing 737-800 connect more people with Kenya’s capital, Nairobi, when it switches from the with capacity for 162 passengers. current Airbus A330-200 aircraft used on one of the two daily services to a Source: Arabian Aerospace larger Boeing 777-300 ER from 1 May. The introduction of a Boeing 777-300ER will boost capacity on the route by 1,638 seats a week, and make Nairobi an Qatar Airways to add a new frequency to Singapore: Qatar Airways is to all-Boeing 777 operation for Emirates. launch an additional daily flight to Singapore from 1 June 2015. The Emirates Boeing 777-300ER will offer 354 seats in a three-class configura- The airline will be operating the new additional flight and the existing two tion, with eight luxurious private suites in First Class, 42 lie-flat seats in Busi- daily flights to Singapore with its third, fourth and fifth A350 XWB aircraft, ness Class and 304 spacious seats in Economy Class. commencing service in June, July and August 2015. With this, Qatar Airways The larger aircraft also provides a total of 77 tons of additional cargo capacity will become the first airline to operate the A350 XWB to Singapore and the per week on the route. Asia Pacific. The Business Class cabin of the A350 XWB has 36 seats in a 1-2-1 configura- Emirates to commence daily service to Bali: Emirates announced that it will tion. The Economy Class features 247 seats in a 3-3-3 configuration. launch a new daily service to the island of Bali in Indonesia, from 3 June 2015. Bali will be Emirates’ 148th global destination, adding to the airline’s route Qatar Airways announces major expansion in South Africa with launch of network in the Asia Pacific region which currently spans 23 destinations in 13 flights to Durban and frequency increases to Johannesburg and Cape Town: countries. The non-stop service between Dubai and Bali will be operated by a Qatar Airways has announced a major expansion in South Africa with the Boeing 777-300ER aircraft. launch of a new destination Durban while simultaneously increasing its weekly frequencies to Johannesburg. The airline will also increase its weekly frequen- Etihad Airways enters East India with launch of daily Kolkata flights:Etihad cy to Cape Town going up from five flights a week to a daily service. Airways launched on 15 February its daily flights between Abu Dhabi and Kol- Effective from 17 December 2015, the airline will launch four new weekly kata (Calcutta), the airline’s 11th destination in India on its own, and its 15th flights to Durban via Johannesburg bringing the total frequency to Johannes- destination in combination with network partner Jet Airways. burg up from 10 weekly flights to a double-daily service. From 1 October 2015 Etihad Airways operates a two cabin A320 aircraft between Abu Dhabi and Kol- Qatar Airways will be operating daily flights to Cape Town, an increase from kata which is configured to carry 136 passengers, with 16 in Business Class and five weekly flights. 120 in Economy Class. Durban will be Qatar Airways’ third route to South Africa following Johannes- burg and Cape Town, both of which started in January 2005. All three routes flydubai adds five new cities to its Iranian network:flydubai announced the will be operated with a Boeing 787 Dreamliner which offers passengers 254 launch of flights to Ahwaz, Hamadan, Isfahan, Shiraz and Tabriz in Iran. The an- seats across its Business and Economy Class, with its seats in Business Class nouncement will see flydubai’s Iranian network grow to seven points, adding reclining to 180-degree fully flat beds. to the launch of flights to Tehran and Mashhad in 2014. Flights to Shiraz, Isfahan and Ahwaz will commence on 8, 11 and 14 of March Oman Air to launch services to Goa, Singapore and Dhaka: Oman Air will respectively. Hamadan and Tabriz will join the flydubai network on 16 March. launch services to three destinations this spring. Oman Air will fly from Muscat flydubai’s Business Class will be available to the five new destinations. to Singapore and Goa from 29 March and to Dhaka as from August 2015.

Daily news on www.aaco.org Issue 96 - Mar 2015 33 Global Arab Aviation

Oman Air’s new Airbus A330 service between Muscat to Singapore will oper- ate daily. Whereas, Oman Air’s new service, operated using Boeing 737 air- craft, will offer four flights per week between Muscat International Airport and Capacity* of Top 10 Carriers (Arab World & Australasia) Goa International Airport. Moreover, Oman Air’s new service, operated using its A330 aircraft, will offer four flights per week between Muscat International Airline ASKs (Million) Departures Seats Airport and Hazrat Shahjalal International Airport in Dhaka. EK 7,687.3 2,665 1,107,626 QR 3,517.8 1,774 523,602 CAPACITY AND DEMAND EY 2,588.8 1,235 368,190 Passenger Air Services to & from the Arab World - Jan 2015 - SRS Analyzer AACO members increased the number of seats offered to and from the SV 1,186.1 432 156,016 Arab world by 19.8%, while other airlines decreased the number by (3%) QF 660.5 124 55,800 which resulted in a growth of 11.6% in the total number of offered seats to GA 482.2 204 61,230 and from the Arab world. 5J 452.8 142 61,912 Percentage of the Total Available Seats To and From the Arab World CX 445.1 230 71,530 With Europe 28.6% PR 338.1 152 45,904 With Mid Asia 18.7% MS 316.6 123 41,613 With Australasia 10.4% Grand Total 20,271.4 8,626 2,914,946 With the Americas 3% * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer With Sub Saharan Africa 4.6% Source: AACO, SRS Analyzer

Capacity* of Top 10 Carriers (Arab World & Europe) Capacity* of Top 10 Carriers (Arab World & Mid Asia) Airline ASKs (Million) Departures Seats Airline ASKs (Million) Departures Seats EK 8,075.9 3,916 1,629,589 EK 2,580.5 3,090 1,109,815 QR 2,936.3 2,620 651,722 SV 1,224.5 1,376 403,901 EY 1,985.6 1,652 399,464 QR 1,189.6 2,144 437,490 TK 1,145.6 2,778 553,374 9W 1,007.8 2,348 393,470 BA 818.7 771 177,188 G9 890.1 2,167 351,054 SV 714.9 896 203,786 EY 734.2 1,779 297,577 AT 654.9 2,354 346,858 FZ 722.9 1,595 301,455 LH 610.0 739 158,173 AI 707.8 1,249 249,781 MS 564.7 1,214 210,978 IX 618.4 1,294 232,920 AF 468.7 1,147 195,195 PK 561.8 1,094 222,010 Grand Total 26,668.6 38,274 8,036,515 Grand Total 13,305.5 25,510 5,253,862 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer

Daily news on www.aaco.org Issue 96 - Mar 2015 35 Global Arab Aviation TOURISM Capacity* of Top 10 Carriers (Arab World & Sub Saharan Africa) Middle East & North Africa: Tourism adapts to challenges and gains new momentum: The tourism sector in the Middle East and North Africa has been Airline ASKs (Million) Departures Seats largely able to adapt and recover in recent times and even bounce back over EK 2,856.7 1,472 524,828 2014. Against this backdrop, several tourism ministers of the region, Span- QR 507.7 629 112,503 ish authorities and private sector representatives focused on future tourism AT 409.5 876 136,180 prospects at the third Ministerial Round Table on Tourism Development in the MENA Region, during the Madrid International Tourism Fair (29 January, FITUR MS 290.1 455 76,849 Madrid). ET 254.2 731 120,699 According to the most recent UNWTO data, after three successive years of EY 187.2 239 45,103 decline, international tourist arrivals to the Middle East grew by 4% and by 1% FZ 111.4 175 33,075 to North Africa in 2014. Mainly depending on peace and stability, future tour- ism prospects for the Middle East are positive (between 2% and 5% in 2015). SV 107.2 130 35,268 According to UNWTO forecasts, by 2030 the MENA region could receive 195 9W 87.8 62 14,446 million tourist arrivals (almost triple the present volume of 70 million tourists) KQ 72.6 122 22,820 benefiting both established and emerging destinations. Grand Total 5,396.0 5,834 1,288,785 Tourism potential and challenges * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Experts trust in a strong pent up demand for tourism to the region from both intra and inter-regional generating markets, which will continue to be released as uncertainty fades away and consumer confidence returns. Participating Tourism Ministers pointed precisely to the critical contribution of political stability for tourism to prosper and contribute to socio-economic progress, including the need for political will to support tourism (Morocco), consolidation of democracy (Tunisia), an active civil society (Lebanon), as well as the benefits of trans-border cooperation in the MENA region (Jordan and Capacity* of Top 10 Carriers (Arab World & the Americas) Oman). Airline ASKs (Million) Departures Seats A more stable political framework is conducive to successfully addressing chal- EK 3,940.8 770 327,074 lenges which include the removal of barriers to growth, strengthening the QR 1,763.2 504 151,816 sector’s resilience, adapting to changing consumer patterns and technological changes, as well as developing new business models and maximizing tourism’s EY 1,312.3 364 110,924 social and economic benefits, while minimizing possible negative impacts. SV 645.5 182 58,698 Source: UNWTO 9W 566.6 124 46,872 UA 292.6 97 26,384 RJ 251.6 98 26,460 MS 228.8 74 25,114 DL 194.1 59 15,871 AT 178.9 126 29,414 Grand Total 9,525.3 2,470 837,685 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer

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Governments recognize benefits of visa facilitation: Visa facilitation has ex- to Chiang Rai, Udon Thani, Luang Prabang, Vientiane, Nay Pyi Taw and Siem perienced strong progress in recent years, particularly through the implemen- Reap, together with Koh Samui to Singapore, Phuket and Kuala Lumpur and tation of visa on arrival policies according to UNWTO’s latest Visa Openness Phuket to Chiang Mai. Report. This largely reflects an increased awareness among policymakers of This will both strengthen and complement Qatar Airways’ current code-shares the positive impacts of visa facilitation on tourism and economic growth. from Bangkok to Chiang Mai, Phuket, Krabi, Lampang, Trat, Sukhothai, Samui, According to the Report, 62% of the world’s population was required a tradi- Mandalay, Yangon and Phnom Penh. tional visa prior to departure in 2014, down from 77% in 2008. In 2014 too, Those passengers travelling onto code-share destinations from Bangkok will 19% of the world’s population was able to enter a destination without a visa, also benefit from a travel experience on board Qatar Airways’ A380 aircraft, while 16% could receive a visa on arrival, as compared to 17% and 6% in 2008. which commenced service to the city in December 2014. Complementing the The Report also shows that the most prevalent facilitation measure imple- airline’s four-times daily service to Bangkok, this aircraft allows passengers the mented has been “visa on arrival”. Over half of all improvements made in the opportunity to experience the A380 of Qatar Airways. last four years were from “visa required” to “visa on arrival”. Meanwhile, those travelling onwards from Phuket, will also benefit from the Countries in the Americas and in Asia and the Pacific have been at the fore- airline’s direct daily scheduled service from Doha, which commenced in 2014. front of visa facilitation, while Europe and Middle East have more restrictive The route was previously served from Doha via Kuala Lumpur. visa policies. Overall, emerging economies tend to be more open than ad- vanced ones, with South-East Asia, East Africa, the Caribbean and Oceania increases travel options to and from Mumbai following code- among the most open subregions. share expansion with Etihad Airways:Air Seychelles announced an expansion Research by UNWTO and the World Travel and Tourism Council (WTTC) shows of its codeshare agreement with Etihad Airways for travel to Mumbai from 1 that the G20 economies could boost their international tourist numbers by an February 2015. additional 122 million, generate an extra USD 206 billion in tourism exports Under this agreement, Air Seychelles puts its HM flight code on 21 weekly and create over five million additional jobs by improving visa processes and Etihad Airways flights between Mumbai and Abu Dhabi that connect onto its entry formalities. The same research carried out for the APEC and the ASEAN services between Abu Dhabi and Seychelles. countries indicates that visa facilitation could generate important gains for These codeshare flights complement Air Seychelles’ existing direct flights be- both groups, including the creation of 2.6 million jobs in APEC and 650.000 tween Mumbai and Seychelles, which were launched in December 2014. jobs in ASEAN. Source: Air Seychelles Source: UNWTO Air Seychelles boosts presence in Middle East with codeshare flights to Am- COLLABORATION man: Air Seychelles has expanded its reach in the Middle East by adding Am- man to its codeshare agreement with Etihad Airways. Royal Air Maroc and JetBlue sign a codeshare agreement: Royal Air Maroc Effective 5 February, Air Seychelles places its HM code on 14 weekly Etihad has signed a codeshare agreement with JetBlue in Marrakech on 27 February Airways’ flights between Abu Dhabi and Amman. 2015. Royal Air Maroc will provide its passengers with new destinations in the This new route is the seventh codeshare point for Air Seychelles in the region, US by codesharing on JetBlue flights to 22 destinations including Washington, with the carrier already placing its flight code on Etihad Airways’ services to Boston, Chicago, Atlanta, Orlando, Seattle, Houston, Los Angeles, San Francis- Abu Dhabi; Jeddah and Riyadh; Muscat; Bahrain and Kuwait. co, Denver and other destinations originating from Casablanca and passing via Source: Air Seychelles New York. Moreover, JetBlue will offer its passengers a list of new destinations in Morocco and West Africa by codesharing on Royal Air Maroc flights to Mar- rakech and 15 other destinations in Morocco, in addition to 24 destinations in West Africa. Qatar Airways deepens its codeshare agreement with Bangkok Airways: Qatar Airways has strengthened its relationship with Bangkok Airways with the addition of further code-share routes. The expansion of this agreement with Bangkok Airways will enhance Qatar Airways’ passengers’ options as it adds 10 additional sectors from Bangkok

Daily news on www.aaco.org Issue 96 - Mar 2015 39 Global Arab Aviation

ENVIRONMENT should be agreed at an international level through ICAO. The UN agency, through its Committee on Aviation Environmental Protec- CDM pipeline update: tion (CAEP), is currently working on a CO2 emissions standard for new aircraft CDM pipeline update 1 Mar. 2015 Status # of Projects though it is not expected to be approved until 2016. Status # of Projects Withdrawn 62 The letter’s signatories say the US aviation sector took the role of controlling Rejected by EB 271 greenhouse gas (GHG) emissions “very seriously”, and added: “As a result of At Validation 1017 our efforts, US airlines have improved their fuel efficiency 120% since 1978 Request for Registration 25 Validation Negative by 267 and together with other aircraft operators account for only 2% of the nation’s Request for Review 0 DOE GHG inventory, while driving 5% of the nation’s GDP.” Correction Requested 0 Validation Terminated 1,961 By contrast, the environmental groups contest in their letter that aircraft are by DOE one of the fastest-growing carbon emissions sources and point to a recent Under Review 0 Registered, no issuance report by the International Council on Clean Transportation that found despite Total in Registration of CERs 4,852 the airline industry’s claim that fuel costs already force them to operate as Process 25 Registered, CER issued 2,746 efficiently as possible, there was a 27% gap between the most and least fuel- Source: UNEP RisØ efficient airlines serving the US domestic market. Total Registered 7,598 Source: GreenAir Online Settlement Price of ECX EUA and CER Futures on 5 March 2015 Dec-15 Dec-16 Dec-17 Dec-18 UNFCCC agreement paves the way for some aviation emission reduction projects to be eligible under CDM: Projects that lead to reductions in aviation- EUAs € 6.80 € 6.89 € 7.03 € 7.19 related emissions could soon by eligible under the UN’s Clean Development CERs € 0.40 € 0.39 € 0.39 € 0.37 Mechanism (CDM). The CDM allows emission reduction projects in developing Source: IntercontinentalExchange countries to earn certified emission reduction (CER) credits – each equivalent to one ton of CO2 – that can be traded and used by industrialised countries US environmental groups and aviation sector lobby EPA and FAA over air- to meet a part of their targets under the Kyoto Protocol. At a meeting in Feb- craft emissions endangerment:With the US Environmental Protection Agency ruary, the Executive Board that supervises the CDM agreed to develop three (EPA) due to issue in May a proposed determination of whether carbon pollu- methodologies initially that would include projects such as solar power for tion from aircraft endangers public health or welfare, representatives from the at-gate aircraft, green taxiing and aircraft engine washing. Under the Protocol, US aviation sector and environmental groups have spelt out their different po- projects to reduce emissions from domestic flights and at airports in devel- sitions in open letters to the agency and the FAA. The EPA’s decision to address oping countries are already eligible to be included in the CDM but emissions aviation emissions came in September 2014 after environmental organisations resulting from international flights, even if they take off, fly over or land in waged a four-year legal battle to force the agency to act. Six groups are now developing countries, have not so far been eligible. ICAO welcomed the move urging the Administration to move quickly to set emission standards and call towards adopting the new methodologies. on agency officials to simultaneously start analysing how to make airplanes In order to ensure the environmental integrity of the CDM, methodologies less polluting, otherwise regulations could be delayed for years, they claim. are required to establish a project’s emissions baseline, or expected emissions US industry associations say in their joint letter that aviation requires a global without the project, and to monitor the actual ongoing emissions once a proj- rather than national approach to the standards issue. ect is implemented. The difference between the baseline and the actual emis- The six environmental groups – the Center for Biological Diversity, Earthjustice, sions determines what a project is eligible to earn in the form of credits. Once Friends of the Earth, the National Resources Defense Council, the Environmen- developed, a new emissions baseline and monitoring methodology could be tal Defense Fund and the Sierra Club – are demanding quick action on intro- used by projects in the aviation sector to quantify their emissions reductions ducing strong standards that reduce aircraft emissions. They urge the EPA to and earn saleable credits for those reductions. act under the Clean Air Act “with the goal of proposing final standards no later The CDM has so far led to registration of over 7,800 projects and programmes than the end of 2015.” in 107 developing countries, hundreds of billions of dollars in investment and In their letter to the EPA and FAA, five industry associations representing- air 1.5 billion fewer tonnes of greenhouse gas emissions. However, the prices paid lines, aircraft manufacturers and business aviation maintain that as aviation is for CERs have plunged following the global economic slowdown and uncer- global in nature, with aircraft operators operating internationally and manu- tainty over the future of the CDM, with the incentive to create new projects, facturers selling their aircraft in international markets, emission standards and even continuing existing projects, having almost disappeared, admits the

Daily news on www.aaco.org Issue 96 - Mar 2015 41 Global Arab Aviation

UNFCCC. In the run-up to the crucial climate summit in Paris later this year, the Board has therefore urged countries to renew their commitment to the CDM and use it to encourage emissions reductions and drive climate finance, technology transfer, capacity building, sustainable development and adaptation. Source: GreenAir Online REGULATORY TONE

UAE seals Open Skies agreement with Burkina Faso: The United Arab Emir- ates, represented by the General Civil Aviation Authority (GCAA), has signed an Open Skies agreement with the Government of Burkina Faso. The agreement was signed by H.E Eng. Sultan Bin Saeed Al Mansoori, Minister of Economy and Chairman of GCAA and H.E. Daouda Traore, Minister of Infra- structures and Transports of Burkina Faso. The agreement that was signed allows full flexibility on the routes, capacity, number of frequencies and types of aircraft, in any type of service (passenger or cargo). It also includes the exercise of fifth freedom traffic rights. In addi- tion, both Parties agreed to allow unrestricted, non-scheduled/charter opera- tions between the two countries. Source: UAE GCAA Yemen, Iran sign an MoU on air transport: The Civil Aviation and Meteorology Authority (CAMA) of Yemen and Iran’s Civil Aviation Organization (CAO) signed in Tehran a memorandum of understanding in the field of air transport. The MoU gives both Yemen Airways and the right to operate 14 flights a week between the two countries in each direction for each company. The MoU was signed by acting head of the CAMA Mohammed Abdulqadir and Deputy Head of the CAO Kharid Kermani. Source: Yemen News Agency (SABA)

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Daily news on www.aaco.org Issue 96 - Mar 2015 43 Global Arab Aviation AN AVIATION MARKET IN FOCUS: ITALY The Italian domestic aviation in January 2015 The Italian Republic Route Seat Capacity* • Population: 60.78 million Milan - Rome 249,537 2 • Land area: 301,338 km Catania - Rome 181,589 • Number of passengers in 2013: more than 115 million passengers were handled by Italian airports Palermo - Rome 141,951 • Number of commercial airports: more than 32 commercial airports Catania - Milan 135,390 • Major Italian-based airlines: Alidaunia, Alitalia, C.A.I. First, C.A.I. Second, Milan - Naples 127,768 and Meridiana fly Bari - Milan 103,464 Aviation Policy: - ENAC is the primary agency entrusted with the responsibility of regulating Source: AACO, FlightMaps Analytics Cagliari - Rome 100,269 aviation in Italy, as provided by Article 687 of the Italian Navigation Code The top 10 city pairs on the right Rome - Turin 87,261 (INC) and Legislative Decree No. 250/97. accounted for almost 44.57% of Cagliari - Milan 84,512 - Italy enjoys an open market in the EEA; and benefits from comprehensive the total seat capacity sched- Milan - Palermo 79,438 agreements signed between the EU and third countries such as Morocco uled within Italy in January Source: AACO, FlightMaps Analytics and Jordan. 2015. * This includes seat capacity in both directions Traffic Share between Italy and Other Regions in Alliances Share of Seat Capacity Serving 2013 the Italian Market 3.4% 1.1% Europe (includes 7% Airline Seat Capacity 3.2% 1.2% domestic traffic) Alitalia (AZ) 3,434,097 Americas 11% Unaligned Top 10 airlines operating by seat ca- 6.7% Ryanair (FR) 3,281,040 pacity to, from and within Italy in Arab World Sky Team easyJet (U2) 1,174,368 January 2015 Australasia The top 10 airlines on the left offered 55% Airlines (VY) 575,778 Star Alliance 13.74 million seats (75.61% of the Sub Sahrain Africa 27% Meridiana fly (IG) 517,761 scheduled seat capacity) to, from and Mid Asia oneworld Lufthansa (LH) 418,475 within Italy in January 2015. 84.3% For international passengers and based on O&D Source: AACO, FlightMaps Analytics Wizz Air (W6) 294,120 Source: AACO, IATA (AF) 254,416 The Italian aviation market links 217 cities worldwide(click on image for detailed view) (BA) 231,268 Emirates (EK) 208,834 Route Seat Capacity* Source: AACO, FlightMaps Analytics London - Milan 232,161 Milan - Paris 227,461 Top 10 routes by seat capacity to and Paris - Rome 206,356 from Italy in January 2015 London - Rome 175,299 Around 1.49 million seats were of- Madrid - Rome 147,086 fered on the top 10 city pairs to and Barcelona - Milan 105,816 from Itlay in January 2015, represent- ing a 13.81% of the total capacity - Rome 104,799 offered to and from Italy. Madrid - Milan 103,292 Barcelona - Rome 99,015 Paris- Venice 96,250 Source: AACO, FlightMaps Analytics Source: AACO, FlightMaps Analytics January 2015 * This includes seat capacity in both directions Daily news on www.aaco.org Issue 96 - Mar 2015 45 Global Arab Aviation

WORLD NEWS IATA figures -- January passenger demand signals solid start to 2015:The In- ternational Air Transport Association (IATA) announced global passenger traffic UAE ranks number 1 globally in aviation safety standards:The UAE has ac- results for January 2015 showing traffic growth (revenue passenger kilometers complished an enormous and unprecedented achievement by ranking highest or RPKs) of 4.6% compared to January 2014. This represents a slower start to in the world in compliance with international aviation safety standards after the year compared to 2014 full-year growth of 5.9%. However, results likely intensive audit through the International Civil Aviation Organisation (ICAO)’s were affected by the timing of the Lunar New Year in Asia, which occurred one Universal Safety Oversight Audit Programme. The UAE scored a success rate of month later this year compared to 2014. January capacity rose 5.2% and load 98.86 per cent, which is the highest rate in history given by ICAO. factor slipped 0.5 percentage points to 77.7%. While domestic markets drove Source: Emirates News Agency (WAM) growth in the latter part of 2014, international traffic was stronger in January.

EU January traffic: EU airports surpass non-EU for first time since 2009:Euro - Jan 2015 vs. Jan 2014 RPK Growth ASK Growth PLF pean airport trade body, ACI EUROPE today released its traffic report for Janu- International 5.4% 6.0% 78.0 ary 2015, providing the first indication of air traffic performance so far this year. The report is the only air transport report which includes all types of civil avia- Domestic 3.2% 3.9% 77.3 tion passenger flights: full service, low cost and charter. It reveals that passen- Total Market 4.6% 5.2% 77.7 ger traffic at Europe’s airports grew by an average 4.8%, when compared with January 2014. 2014 vs. 2013 RPK Growth ASK Growth PLF Reviewing the result in more detail, passenger traffic in the EU grew by a International 6.1% 6.4% 79.2 healthy 5.1% while non-EU airports posted a lower rate of passenger traffic growth 3.8% for the first time in nearly 6 years. Domestic 5.4% 4.3% 80.6 More worryingly, freight traffic across the European airport network – an es- Total Market 5.9% 5.6% 79.7 tablished bellwether of economic performance - fell by (0.5%) with the de- crease at non-EU airports (5.3%) weighing heavily on the overall figure (freight International passenger markets traffic at EU airports fell by (0.1%)). January international passenger traffic rose 5.4% compared to the year-ago Aircraft movements were up +1.1%, reflecting limited additional airline capac- period. Capacity rose 6.0% and load factor slipped 0.5 percentage points to ity being put back in the market. 78.0%. All regions recorded year-over increases in demand except for Africa. During the month of January, airports welcoming more than 25 million pas- • European carriers’ international traffic climbed 5.0% in January com- sengers per year (Group 1), airports welcoming between 10 and 25 million pared to the year-ago period, which was the largest increase among the passengers (Group 2), airports welcoming between 5 and 10 million passen- three biggest regions. Capacity rose 4.6% and load factor rose 0.3 per- gers (Group 3) and airports welcoming less than 5 million passengers per year centage points to 77.7%. Air travel growth in Europe reflects robust travel (Group 4) reported an average adjustment +3.4%, +6.5%, +5.6% and +5.1%. on low cost carriers as well as on airlines registered in Turkey which is Source: ACI Europe helping to overcome some of the impact on travel of the ongoing eco- nomic weakness in the region. • Asia-Pacific carriersrecorded an increase of 4.7% compared to January 2014, which is below the 2014 annual trend of 5.8% expansion. In addi- tion, the seasonally-adjusted level of traffic has been broadly flat over the past five months. The timing of the Lunar New Year in mid-February (one month later than it fell in 2014) also impacted the results. Capacity rose 5.8%, pushing down load factor 0.8 percentage points to 77.6%. • North saw demand rise 2.7% in January over a year ago. While this was the weakest traffic growth for all regions save Africa, the US economy is a stand-out performer among developed economies. Capacity rose 3.8%, pushing down load factor 0.9 percentage points to 79.5%.

Daily news on www.aaco.org Issue 96 - Mar 2015 47 Global Arab Aviation

• Middle East carriers had the strongest year-over-year traffic growth in January at 11.4%. Market’s measures of business activity in non-oil sec- tors in the region’s economies continue to show improvement, suggest- ing Middle Eastern economies are comparatively well-placed to with- stand the plunge in oil revenues. Capacity rose 13.3% and load factor dipped 1.3 percentage points to 79.7%. • Latin American airlines’ traffic rose 5.6%. Capacity rose 5.1% and load factor climbed 0.4 percentage points to 81.2%, highest among the re- gions. While growth in the Brazilian economy has stagnated, regional trade volumes have continued to improve in recent months. • African airlines saw January traffic slip 0.7% compared to January 2014. The weakness in international air travel for regional carriers is not be- lieved to be attributable to the Ebola outbreak. Rather, it appears to re- flect negative economic developments in parts of the continent including Nigeria, the continent’s largest economy, which is suffering from the col- lapse in oil prices. With capacity up 0.7%, load factor fell 1.0 percentage point to 68.1%, the lowest among the regions. Source: IATA

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Daily news on www.aaco.org Issue 96 - Mar 2015 49 OUR PARTNER AIRLINES Partner Airlines

Looking at the Spanish market traffic flows, the international European- mar ket represented in December 2014 65.8% of the total market, and is expected to have grown to 67.2% in January 2015. Traffic between the Arab world and Spain represented 2.5% of the total Spanish market in December 2014, and is LATEST NEWS estimated to have shrunk to 2.1% in January 2015.

IAG releases February traffic statistics: Group traffic inFebruary, measured in Passenger Numbers' Change in the Spanish Air Transport Market Revenue Passenger Kilometres, increased by 5.5% versus February 2014; Group Oct14-Dec14 & Nov14-Jan15* compared to same period in previous year capacity measured in Available Seat Kilometres rose by 4.3%. Group premium traffic for the month of February increased by 2.8% compared to 2014. 25% Strategic Developments: 20% and its subsidiary Iberia Express were the world’s most punctual airlines in January according to the latest ranking published by FlightStats. Iberia led 15% network carriers with 92.72% of flights on time while Iberia Express achieved 10% 96.34% punctuality the highest score among LCCs. The airline’s improvement in operational performance has been a key aspect of its restructuring. 5% British Airways is changing its ‘On Business’ loyalty scheme for small and medi- 0% Domestic um sized businesses to incorporate American Airlines and Iberia. The new part- -5% With Arab With With World With the nership will allow On Business members to benefit from collecting and spend- Australasia Europe With Mid Americas with Sub -10% Asia ing across all three airlines under one programme. Sahran Africa Vueling has become the first airline to offer a self service baggage check-in at -15% its hub in Barcelona. Oct14-Dec14 Nov14-Jan15* SPAIN TRAFFIC The Spanish air transport market expanded by 9.1% in December 2014 over Source: AACO, IATA *Estimated December 2013 in terms of number of passengers traveling to, from & within In December 2014, Ryanair was the biggest carrier operating to, from and Spain, and is estimated to have grown in January 2015 by 10.9% compared to within Spain by number of passengers, boarding 1.6 million pax, which repre- January 2014. sented an increase of 12.6% over December 2013 operations. Monthly Passenger Numbers' Change in the Spanish Air Transport Market Feb14 to Jan15* compared to same month in previous year Top 15 Airlines Operating in the Spanish Market Airline Dec-14 Change Airline Dec-14 Change 15% FR 1,600,932 12.6% ZB 176,827 23.4% 10% IB 1,119,181 5.7% LH 169,747 (10.9%)

5% VY 823,818 4.6% AF 155,065 (0.4%)

0% U2 736,249 2.3% BA 146,273 29.3% UX 552,107 8.6% KL 126,848 (3.5%) -5% AB 406,934 (1.0%) DE 123,942 5.6% -10% DY 306,104 20.4% X3 112,330 (3.9%) -15% NT 204,811 (1.0%) Grand Total 8,417,034 9.1% -20% Source: AACO, IATA

International Domestic Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 96 - Mar 2015 53 Partner Airlines

UK TRAFFIC Passenger Numbers' Change in the UK Air Transport Market Oct14-Dec14 & Nov14-Jan15* compared to same period in previous year The UK air transport market expanded by 10.1% in December 2014 over De- 14% cember 2013 in terms of number of passengers traveling to, from and within the UK, and is expected to have grown by 13.2% in January 2015 compared to 12% January 2014. 10% Monthly Passenger Numbers' Change in the UK Air Transport Market 8% Feb14 to Jan15* compared to same month in previous year 6%

15% 4%

10% 2%

0% 5% Domestic With Arab -2% With World With 0% Australasia With the Europe With Mid Oct14-Dec14 Americas with Sub Asia Nov14-Jan15* Sahran -5% Africa Source: AACO, IATA *Estimated -10% In December 2014, easyJet was the biggest carrier operating to, from and within the UK by number of passengers, boarding 2.68 million pax, which rep- resented an increase of 10.7% over December 2013 operations. International Domestic Top 15 Airlines Operating in the UK Market Source: AACO, IATA *Estimated Airline Dec-14 Change Airline Dec-14 Change Looking at the UK market traffic flows, the international European market rep- U2 2,685,541 10.7% W6 296,234 26.5% resented in December 2014 61.2% of the total market, and is expected to have FR 2,249,449 20.9% ZB 283,178 21.8% grown to 61.9% in January 2015. Traffic between the Arab world and the UK BA 2,183,097 5.7% LH 266,376 (19.7%) represented 4.3% of the total UK market in December 2014, and is expected BE 546,841 3.9% DY 261,781 34.0% to have maintained its level in January 2015. VS 400,198 2.2% AF 181,661 (15.9%) EK 371,200 11.4% 4U 169,561 115.8% KL 321,817 3.6% LX 154,216 2.8% EI 318,536 (3.2%) Grand Total 13,665,564 10.1% Source: AACO, IATA

Daily news on www.aaco.org Issue 96 - Mar 2015 55 Partner Airlines

Looking at the Indian market traffic flows, the domestic market represented in December 2014 58.9% of the total market, and is estimated to have shrunk to 57.9% in January 2015. Traffic between the Arab world and India represented LATEST NEWS 16.3% of the total Indian market in December 2014, and is estimated to have Jet Airways unveils ‘#JetInstant’ on Twitter: Jet Airways unveiled #JetInstant, expanded to 16.5% in January 2015. a first of its kind online feature that enables guests to access information on Passenger Numbers' Change in the Indian Air Transport Market fares and flight status in real-time through Twitter. Oct14-Dec14 & Nov14-Jan15* compared to same period in previous year The customer-centric initiative is part of Jet Airways’ strategy to simplify the 20% travel experience and engage with guests on a real-time basis. The initiative, 18% developed in collaboration with Twitter and technology partner, TravelSpends, will see Jet Airways set a new industry benchmark in customer service. 16% Jet Airways posts first quarterly operating profit since December 2012 as 14% turnaround strategy gains momentum: Jet Airways Group today posted its 12% first profit in seven quarters and announced a significantly improved perfor- mance for the third quarter ending 31 December 2014, with key operating 10% parameters showing strong progress. Compared to the same quarter of the 8% previous financial year, Jet Airways’ financial performance improved by INR 6% 287 crores or 101%. The net profit before taxes is INR 3 crores compared to a 4% net loss of INR 284 crores for the same period in 2014. 2% INDIA TRAFFIC 0% The Indian air transport market grew by 9.5% in December 2014 over Decem- Domestic With Arab With ber 2013 in terms of number of passengers traveling to, from and within India, World With Australasia With the and is estimated to have grown by 20.4% in January 2015 compared to Janu- Europe Within Mid Oct14-Dec14 Americas ary 2014. Asia Int'l with Sub Sahran Monthly Passenger Numbers' Change in the Indian Air Transport Market Nov14-Jan15* Africa Feb14 to Jan15* comapred to same month in previous year Source: AACO, IATA *Estimated

35% In December 2014, Indigo Airlines was the biggest carrier operating to, from 30% and within India by number of passengers, boarding 2.23 million pax, which represented an increase of 37.1% over December 2013 operations. 25% 20% Top 15 Airlines Operating in the Indian Market 15% Airline Dec-14 Change Airline Dec-14 Change 10% 6E 2,239,779 37.1% EY 148,603 74.4% 5% 9W 1,557,885 18.1% QR 146,438 7.7% 0% AI 1,387,445 15.5% SQ 133,681 (5.1%) SG 984,220 (35.3%) G9 131,497 (3.0%) -5% G8 563,458 18.0% TG 120,720 22.4% EK 492,731 13.3% SV 111,155 14.7% S2 241,519 (17.6%) WY 106,045 2.9% International Domestic IX 216,702 (9.9%) Grand Total 10,069,679 9.5% Source: AACO, IATA *Estimated Source: AACO, IATA

Daily news on www.aaco.org Issue 96 - Mar 2015 57 Partner Airlines

Looking at the Turkish market traffic flows, the domestic market was the big- gest market. It accounted for 47.5% of December 2014 traffic, and is expected to have shrunk to 46.1% in January 2015. The European market (international traffic between Turkey and Europe) was the second biggest market, account- LATEST NEWS ing for 33.2% of December 2014 traffic, and is expected to have expanded to records USD 845 million net profit, and USD 638 million op- 35.4% in January 2015. On the other hand, traffic between the Arab world and erating profit in 2014:Turkish Airlines’ 2014 consolidated financial statements Turkey represented 7.9% of the total Turkish market in December 2014, and is were reported to Borsa Istanbul. Compared to 2013, Turkish Airlines sales expected to have grown to 8.3% in January 2015. revenue increased by 13% in 2014, reaching a total of USD 11 billion. While operating profit stood at USD 638 million, more than doubling compared to previous year USD 845 million net profit was recorded. Turkish Airlines increases the number of flight destinations to 17 from Sabi- ha Gokcen International Airport:Turkish Airlines will commence Sabiha Gok- cen-Baku flights on 15 March. Flights between Sabiha Gokcen and Baku will be operated on a daily basis. Turkish Airlines begins operations to Abuja:Turkish Airlines added its 262nd network destination with the addition of Abuja as from 3 March.

TURKEY TRAFFIC The Turkish air transport market in December 2014 grew by 12.1% over De- cember 2013 in terms of number of passengers traveling to, from and within Turkey, and is estiamted to have grown in January 2015 by 5.9% compared to January 2014. Monthly Passenger Numbers' Change in the Turkish Air Transport Market Feb14 to Jan15* compared to same month in previous year

80%

Source: AACO, IATA *Estimated 60% In December 2014, Turkish Airlines was the biggest carrier operating to, from and within Turkey by number of passengers, boarding 2.64 million pax, which 40% represented an increase of 13.9% over December 2013 operations. Top 15 Airlines Operating in the Turkish Market 20% Airline Dec-14 Change Airline Dec-14 Change TK 2,640,369 13.9% AB 35,293 5.1% 0% PC 1,045,526 8.7% J2 31,526 (6.6%) XQ 267,191 8.0% SV 27,444 126.2% 8Q 216,854 32.2% XY 26,239 15.0% KK 203,396 17.5% W5 24,284 4.3% SU 42,354 9.0% QR 22,987 43.1% International Domestic LH 40,338 (22.5%) A3 22,674 171.6% Source: AACO, IATA *Estimated EK 35,764 3.1% Grand Total 5,135,226 12.1% Source: AACO, IATA Daily news on www.aaco.org Issue 96 - Mar 2015 59 OUR INDUSTRY PARTNERS NEWS Our Partners News

Oman to welcome 1.6 million cruise tourists by 2020: Accord- ing to a recent study commissioned by Amadeus the travel mar- ket in Oman is poised for unprecedented growth over the next 15 years. The report titled “Shaping the Future of Travel in the Gulf Cooperation Council (GCC): Big Travel Effects” suggests that diversification of the economy and a youth-driven population may very well be among the key drivers of growth in Oman’s travel sector. The aviation industry is a vital enabler of the UAE economy. With growth of air traffic expected to in- The report states that the increasing focus of GCC countries on enhancing their destination offerings is crease from 2,200 flight movements a day in 2014 to 5,100 flight movements daily in 2030, optimizing positioning the tourism sector as a key contributor to regional economies. More specifically, massive airspace is critical to handling increasing capacity demands, efficiency and overall growth. Recognizing investments on infrastructural development and destination attractions are driving the region’s specialty such importance, the UAE General Civil Aviation Authority (GCAA) has strategically invested in under- tourism sectors such as sports, medical and cruise tourism on a global level. standing its airspace challenges and implementing the necessary changes. To this end, Oman Tourism has joined hands with Abu Dhabi Tourism and Culture Authority and Dubai’s Department of Tourism to peg the Arabian Peninsula as an emerging cruise destination for the world. GCAA has launched major en route and flow management initiative with Airbus ProSky, in fact Airbus With the number of cruise tourists increasing year-on-year, the region is expecting 1.6 million cruise tour- ProSky has identified Air Traffic Management (ATM), airspace and Communication, Navigation and- Sur ists by the year 2020 and 2.1 million by 2030. veillance (CNS) challenges resulting in 53 recommendations for improvement. UAE aviation strategies The report also states that additional unfolding demographic factors such as a steady inflow of expatriate rests as a top strategy for the GCAA. The UAE airspace is considered amongst the busiest in the world workers, robust natural population growth and a growing middle class will combine to drive a new and and therefore enhancing the safety and efficiency of air traffic operations would be key. divergent set of travel behaviours and needs in the region. Among the other factors that drive the growth, the unified visa system that has been implemented for tourists between Oman, the UAE and Qatar, is Airbus has selected the 100 teams that have made it into Round Two of the fourth edition of the global worth a special mention. student competition Fly Your Ideas, organised in partnership with UNESCO, after a thorough evaluation To download a free copy of the report please click here. process by over 50 Airbus experts and innovators judging more than 500 ideas. What is the biggest benefit of personalisation in the travel industry?: Creating a more personalised travel experience not only benefits travellers, but also travel players by presenting them with new mer- The 100 teams comprise of 413 students representing 48 different nationalities. The two teams from chandising opportunities. A truly personalised and dynamic shopping experience has the potential to help the Middle East comprise of four students from the UAE and five from Jordan. The UAE team is working airlines unlock more than USD 130 billion in additional revenues by 2020. on innovating a passenger entertainment system with a noise cancellation headset and a smart goggle. But, we wanted to hear what the industry thought the biggest benefit of personalisation was in the travel The Jordan team, meanwhile, are working towards innovating a sophisticated server which stores data industry based on the results of a poll Amadeus hosted on sha- transmitted from CVR and FDR. Other representatives from the Middle East also come from Syria, Qatar pethefutureoftravel.com. and Saudi Arabia. Here’s what we found: Airbus - AACO Partner since 1997 36.21 % – Improving loyalty: Most of you indicated that personali- sation has the capability to improve customer loyalty. Perhaps, it’s that perfectly organised holiday by your travel agent? Or maybe you’d be more loyal to a travel agency with the ability to anticipate and react to travel disruptionswith alternative options just for you? 27.59% – Increasing differentiation:After improving loyalty, many of you though that personalisation can increase differentiation. Could it be that travellers are more likely to recall your offers if they are distinctively personalised to their tastes giving them the feeling of being a VIP? 25.86% – Reducing costs: Some of you think that reducing costs is the biggest benefit of personalisation in the travel industry. Imagine being able to inspire travellers with exactly the right offer they are looking for at exactly the right time. This would undoubtedly help you make better use of advertising budgets and even lower costs in the long run. 10.34% – Increasing margin per customer: Surprisingly enough, increasing margin per customer was seen as the least significant benefit of personalisation in the travel industry. Could it be that the above -men tioned are much more powerful elements or that you’ve yet to read our posts on using personalisation to drive sales and how it can increase basket size by as much as €12-15 for airlines? Amadeus - AACO Partner since 2000

Daily news on www.aaco.org Issue 96 - Mar 2015 63 Our Partners News

ADNOC Distributionis an integrated oil energy company. Founded in 1973, ADNOC Dis- Air France Consulting, a wholly owned subsidiary of Air France is special- tribution market and distributes petroleum products and services within the United Arab ized in air transport consulting, training, management and reengineering Emirates. services, located at Roissy CDG airport. As one of the largest government-owned petroleum companies in the Arab Gulf, ADNOC Air France Consulting calls on about 200 highly specialized international experts coming mostly from Distribution has grown to become a national institution and a major economic driver for Air France and the SkyTeam Alliance who have built a field proven experience and whose competencies the UAE economy. are recognized by the industry. Acting independently with flexibility, Air France Consulting proposes a The company is renowned for its innovative and dynamic approach offering a wide variety of petroleum comprehensive approach on key domains of the air transport such as operations, finance and commer- and natural gas products and services. cial, maintenance, etc... whether to make you a diagnosis or audit, to set up new or improved processes ADNOC Distribution is committed to providing its customers and strategic partners with reliable products driven by proven change management techniques or define a coaching and training program. of exceptional quality and services. ●● Performance and conformity of flight and ground operations:EU-Ops, IR-Ops and FCL, CRM, SMS, ETOPS, IOSA & ISAGO Assistance, TRTO, Airline operations organization…) Regional Main Contact ●● Drivers to reduce costs and increase revenues (Business Plan, Cost control, Network and Fleet, Rev- Name: Mr. Naser Hasan Saleh, International Aviation Sales Department.Sales Manager-AVSD - Aviation enue Management Pricing, Customer Relationship Management, E-business solutions, Fuel conser- Sales Division vation Program, ETS, Procurement process…) Telephone: +97126901419 ●● Fleet Asset Management: aircraft specifications, acquisition, lease, sales Fax: +97126723399 ●● Maintenance Repair Overhaul & Supply Chain: EASA 145/ 147 / 21 / 66 / 147, MCC, line mainte- Email: [email protected] nance and operational regulatory support, maintenance IT support, supply chain optimization Website: www.adnoc-dist.ae ●● Emergency and Crisis Response plan with a strong emphasis on customer oriented solutions ADNOC - AACO Partner since 2002 ● Air France Consulting shares the ambitions of its customers through customized solutions, thanks to a flexible structure ensuring responsiveness and close proximity. For more information, please contact us at, Telephone: +33 1 7425 4162, email:[email protected] Air France Consulting - AACO Partner since 2008

AIRWAYS AVIATION IS THE LEADING GLOBAL EDUCATOR IN AVIATION. APG starts the year strongly by adding four more airlines to its APG IET We bring together international companies with more than 30 years of platform: APG IET, the Interline E-Ticketing platform operated by APG aviation experience to offer world-class flight training for aspiring pilots from locations around the world. which allows IATA travel agents to e-ticket non-BSP airlines on APG IET Airways Aviation provides a full suite of aeroplane and helicopter flight training courses approved by the e-documents (YO-747) has already added four further airlines to the plat- European Aviation Safety Agency (EASA) as well as pilot education programs approved by the Civil Avia- form in 2015. LIAT, based in the Caribbean, Air Bagan from Myanmar, , and Georgian tion Safety Authority (CASA) in Australia, the Civil Aviation Regulatory Commission (CARC) in Jordan and Airways all went live in January 2015. Juneyao Airlines, based in Shanghai and US Carrier Cape Air also the Civil Aviation Authority (CAA) of Montenegro. joined at the end of 2014. Adding airlines each month, APG IET now features 112 airlines from around the Our Pilot Training Academies located in the UK, Australia, Jordan and Montenegro, provide centralised world. Mr. Richard Burgess, President of the APG Network commented “This constitutes a great start to locations for advanced flight and theory training that prepares students to fly for international commer- the year and further underlines the strong interest from airlines in the additional revenue that APG IET cial airlines. can deliver. A number of AACO member airlines already participate in APG IET and we hope to welcome We have also created a unique international foundation pathway, providing a meaningful introduction to more if its members onto the platform in the future”. the theoretical and practical aspects of aviation for students with little or no aviation experience, which APG IET allows tickets to be issued for airlines not on BSP and combination itineraries with airlines with is delivered at our Aviation Theory Schools in the UAE, Lebanon, Jordan and Malaysia. no direct interline agreements. IATA travel agents simply book flights via their GDS in the normal way and As our reputation grows, our education and training facilities are expanding to meet exponential interna- choose YO-747 as the ticketing carrier. The product is supported locally through the global APG network tional demand for quality flight training and qualified pilots. spanning over 150 countries. For further information please contact us at [email protected] Further information is available at www.apgiet.com Regional Main Contact APG Network is the world’s leading network for Airline Distribution and Financial Services. With 111 APG Name: Mr. Yuseph Hawatt Network Associates and Services Partners, we are present in 176 countries and have commercial rela- Position: Business Development Manager tionships with 180 airlines. Services include GSSA – General Sales Representation Services, IBCS – Vari- Telephone: +971 4368 8607 able Cost Access to BSP, AACP – Variable Cost Access to ARC Settlement System for USA, AATP – APG Air Email: [email protected] Travel Plan, IET – Interline E-Ticketing, FFS – ATPCO Fare Filing services, CCS – Call Centre Services and Website: www.airwaysaviation.com GET – Global Extended Territories services. APG Network organizes yearly the great social and informative Airways Aviation - AACO Partner since 2014 renowned event: the APG World Connect Conference on Airline Distribution. APG Network - AACO Partner since 2015 Daily news on www.aaco.org Issue 96 - Mar 2015 65 Our Partners News

Creating Value * Sector Expertise * Rigor & Discipline Toulouse, Southern France based regional aircraft manufacturerATR is the world leader in the 50 to 74-seat turboprop market. The ATR 42 and ATR 72 are Founded in 2002, Apollo Aviation Group (“Apollo Aviation”) is a multi- the perfect solution on short-haul routes around the world. ATR has become strategy alternative investment manager specializing in commercial avia- the leader in its category by offering reliable, easy-to-maintain, comfortable and tion including buying, selling and leasing aircraft and engines. With more than USD 1.50 billion of assets environment-friendly aircraft to airlines operating on the regional transport market, at a cost well below under management as of December 31, 2013, we are one of the world’s leading mid-life and mature that of its competitors. ATR was established in November 1981 and benefits from the experience and commercial aircraft and engine operating lessors and investment managers. know-how of two of the major leading European aerospace industries, Alenia Aermacchi and the Airbus In the first quarter of 2013, Apollo Aviation formed, AAG Capital Markets LLC (AAGCM), to manage Group, who each have a 50% share in the ATR programme. investments in aviation securities. AAGCM now has more than USD 250 million of assets under manage- Since its creation, ATR has sold over 1,400 aircraft to over 180 operators based in 91 countries. ATR ment. planes have totaled over 21 million flight hours. It currently has 1000 aircraft flying over 90 countries of Led by its founders, William Hoffman and Robert Korn, Apollo Aviation is currently investing a near USD the world in the livery of more than 180 airlines. ATR is also well established in the Africa & Middle East 595 million real asset fund, the Sciens Aviation Special Opportunities Investment Fund II (“SASOF II”), region, with more than 100 aircraft flying for 35 carriers over 25 countries. and harvesting a USD 213 million real asset fund, Sciens Aviation Special Opportunities Investment Fund ATR is committed to a continuous process of improvement of its aircraft to meet the market needs and (“SASOF”) as well as several private accounts. passenger appeal. According to this principle, ATR launched in 2007 the newest ATR -600 series aircraft, We have built a strong team with deep industry knowledge and extensive relationships throughout the which entered into service in 2011. Both the ATR 42-600 and the ATR 72-600 feature the latest techno- world’s aviation industry. We seek innovative and creative solutions to create value. logical enhancements while building upon the well-known advantages of the ‘–500 series’ ATRs, namely Regional Main Contact their high efficiency, proven dispatch reliability and low fuel burn and operating cost. The new ATR -600 Name: Mr. Pascal Picano, Head of Global Marketing series feature new cabin interior designs and a totally new full-glass avionics suite, and has become the Telephone: +353 1 497 6621 new reference among regional aircraft all over the world. Fax: +353 1 497 6317 Regional Main Contact Email: [email protected] Name: Mr. Milco Rappuoli, Sales Director Website: www.apollo.aero Telephone: +33 5 62 21 65 83 Fax: +33 5 62 21 66 76 Apollo- AACO Partner since 2013 Email: [email protected] ATR - AACO Partner since 1998 Brand awareness and loyalty are key pieces to a strong product strategy. Distinguishing your brand from the competition is critical, but establishing the difference between your own brands is also important. Your custom- ers need to know exactly what to look for when they are shopping and what kind of experience they can expect from each of your brands. Whether your customer is a frequent business traveler or the discern- Bloomberg, the global business and financial information and news leader, gives decision makers a critical ing flyer that is looking for a luxury experience, you need to be able to create meaningful brand differen- edge by connecting them to a dynamic network of information, people and ideas. tiation through variation of fares and services based on features that bring value to a particular customer The company’s strength – delivering data, news and analytics through innovative technology, quickly and segment. ATPCO has the solution to help you do exactly that. accurately – is at the core of the Bloomberg Professional service, which provides real time financial infor- mation to more than 315,000 subscribers globally. Bloomberg Industries (BI) provides subscribers interac- ATPCO’s Branded Fares helps you to tailor your services and branding to specific traveler segments to tive, continuously updated industry research and data. BI’s team of more than 100 research professionals emphasize the value of your offering rather than just focusing on price. It helps boost revenue by creat- covers over 100 industries globally, offering in-depth data and analysis for each industry’s drivers, metrics, ing up-sell opportunities; grow customer satisfaction by allowing buyers to choose fares that better suit competitors, themes and earnings. The BI portal also aggregates information from more than 200 third- their needs; and ensure accurate and consistent presentation of fare brands across all points of sale. party providers.

As competition on global routes continues to grow, you need the right tool to help you distinguish your Regional Main Contact brand and build customer loyalty. As your trusted technology partner, ATPCO provides you with that tool. Name: Mr. George T. Ferguson, IV, CFA, Senior Analyst Aerospace/Defense & Airlines Would you like to know more about ATPCO’s Branded Fares? We are available to provide counsel and Telephone: +1- 609.279.3591 answer questions. Please feel free to contact us. Email: [email protected] Website: www.bloomberg.com Europe, Middle East and Africa Bloomberg - AACO Partner since 2013 Mr. Frank Socha, Regional Director [email protected] +44-20-8572-1322 ATPCO - AACO Partner since 2014

Daily news on www.aaco.org Issue 96 - Mar 2015 67 Our Partners News

Boeing, LATAM Airlines Group celebrate delivery of airline’s first 787-9 Dreamliner: Boeing and LATAM Airlines Group celebrated the delivery of the airline’s first 787-9 Dreamliner. LATAM Airlines Group is leasing the new airplane from Amsterdam-based lessor AerCap. LATAM Airlines Group will become Latin America’s first operator of both the 787-8 and 787-9 variants of the Dreamliner family when the airline group launches 787-9 services on South American routes in April. With this delivery, LATAM Airlines Group will have 11 787s in its fleet, the most in Latin America. The CFM orders soar in 2014: In 2014, as CFM International celebrated its 40th anniversary, the company ex- company is building a fleet of 32 787 Dreamliners, including 10 787-9s, over the next several years. perienced the highest levels of new engine orders and production in its history. CFM logged orders for a British Airways receives operational approval for Boeing Electronic Logbook:Boeing announced that total of 4,244 engines, including 1,527 CFM56 engines (commercial, military and spares) and 2,717 LEAP British Airways received operational approval from the UK Civil Aviation Authority for use of Boeing’s engines. These orders are valued at more than USD 50 billion at list price. Electronic Logbook (ELB) on their 787 Dreamliner fleet. By comparison, CFM booked a total of 2,723 CFM56 and LEAP engine orders in 2013 at a value of USD 31 Developed in partnership with Ultramain Systems, Inc., ELB enables unprecedented levels of communica- billion at list price. tion between flight crew, cabin crew and ground-based maintenance and engineering staff, which trans- As the company logs record commitments, CFM is also achieving historic production rates for the CFM56 lates into better passenger service and greater airline cost savings. product line. The company delivered 1,560 CFM56 engines in 2014, compared to 1,502 in 2013. CFM has Boeing, announce order for five 777 Freighters:Boeing and Korean Air today finalized an the highest production rate in the industry and has consistently built more than 1,000 engines per year order for five 777 Freighters. The order, valued at more than USD 1.5 billion at current list prices, will add since 2006. further efficiency and reliability to Korean Air’s all-Boeing freighter fleet. CFM - AACO Partner since 1998 Boeing, Transavia announce order for up to 20 Next-Generation 737-800s:Boeing and Transavia Com- pany, a wholly owned subsidiary of the Air France KLM Group, today announced an order for 17 Next- Generation 737-800s, including options for three additional airplanes. The order, valued at USD 1.6 billion at current list prices, was previously booked and attributed to an unidentified customer on the Boeing Orders & Deliveries website. Boeing- AACO Partner since 1998 StandardAero recognized as authorized Lockheed Martin C-130J Super Her- cules Quick Engine Change Service Center: Lockheed Martin has designated StandardAero as an authorized Quick Engine Change (QEC) Service Center to provide QEC maintenance services for the C130J Super Hercules aircraft. Mr. Arnaud Lambert named CEO of CHAMP Cargosystems: CHAMP Cargosystems has appointed Mr. With an effective date of 29 January 2015, this authorization formalizes a support arrangement with a Arnaud Lambert as Chief Executive Officer, effective 1 February 2015. Mr. Arnaud had previously been key original equipment manufacturer (OEM) for C-130J QEC services that StandardAero has been per- a member of the Executive Committee at CHAMP Cargosystems and most recently held the position of forming since 2000. Vice President of Global Service Delivery for CHAMP worldwide. Mr. Arnaud has over 15 years experi- This official designation complements StandardAero’s existing Lockheed Martin QEC authorization to ence in the air cargo industry and previously held management positions at Airlines and Procter support the C-130B-H legacy Hercules aircraft. StandardAero also holds Rolls-Royce Authorized Mainte- & Gamble. Mr. Arnaud holds a Master in Business and Management Engineering from the Louvain nance Center status on the AE2100 and T56 turboprop engines for these aircraft, as well as full capability School of Management in Belgium. on the 54H60 Propeller. This partnership provides current C-130J operators with additional alternatives for propulsion sustain- CHAMP Cargosystems is “International IT Systems Provider of the Year” in Africa:The STAT Trade ment and support by leveraging StandardAero’s more than 50 years of MRO experience on T56 and Times, popularly known as STAT TIMES, recently presented the STAT TIMES INTERNATIONAL AWARDS AE2100 turboprop engines. FOR EXCELLENCE IN AIR CARGO in 11 categories as part of the Air Cargo Africa 2015 conference held in This new license agreement allows StandardAero to perform QEC services through the end of 2017, with South Africa. CHAMP Cargosystems was nominated “International IT Systems Provider of the Year in Af- renewal options available. Services will be provided at the company’s Winnipeg, Canada facility. rica” for the second time in a row. This award recognizes CHAMP’s contribution as an industry leader in StandardAero supports a number of C-130 fleets and operators around the world via contracts with the the provision of the most comprehensive range of integrated IT (Information Technology) solutions and Royal Canadian Air Force, Royal Australian Air Force, Royal Netherlands Air Force, U.S. Air Force, U.S. distribution services for the air cargo industry. CHAMP has achieved this position through the support of Navy, U.S. Marine Corps and U.S. Coast Guard, among others. its customers and partners and thanked them all at the gala award event. In addition, StandardAero’s environmentally friendly repair shops hold the following certifications: ISO/ CHAMP - AACO Partner since 2010 EN 9001 – Quality Management System, ISO 14001 – Environmental Management System, AS 9110 – Aerospace Quality Management System for MRO and many other OEM and customer authorizations. DAE - AACO Partner since 2014

Daily news on www.aaco.org Issue 96 - Mar 2015 69 Our Partners News

Engine Lease Finance Corporation (ELFC) has become the go-to GE’s composite fan blade revolution turns 20 years old:GE Aviation is celebrating the 20th spare engine lessor in the MENA region. anniversary of the first jet engine to certify with composite fan blades. Powering an early In 2013 and 2014 we provided short and long term spare engine model of Boeing’s 777 aircraft, the first GE90 engine certified in February 1995—and thus leases to long-standing customers, who have a clear preference to lease from ELFC over any other, based marked the first aviation use of the revolutionary composite fiber polymeric material on a on their experience of working with us. jet engine’s front fan blade. However, we also opened business with new airlines for the first time. Including considerable sale-lease- In the 1980s, GE Aviation gained experience with composite fan blades on its experimental GE36 open back transactions. Our message is now almost universally accepted that ELF transactions offer: rotor jet engine that successfully ground-tested and flew. This bolstered GE to use composite fan blades A means to pass on future engine value risk; for the GE90 engine, which required a lightweight, durable material solution for the engine’s large front Potential to generate profit for your airline; fan. Cost efficiency – ELFC’s fixed monthly rental rates compare favourably to continued ownership costs; GE’s bet on composite fan blades for the GE90 has paid off. For one, the composite blade is critical to the Reduced need for airlines to tie-up capital in spare engines, it is more efficient to rent for as long as nec- GE90’s record thrust. And the highly-popular GE90-powered 777s are among the most fuel-efficient and essary from ELFC. reliable commercial jetliners in history. With more than 2,000 GE90 engines delivered, the composite fan Open access to ELFC’s independent dedicated technical team. blade has become a landmark technology for GE and has influenced succeeding generations of GE com- Our reputation as the largest and most financially capable independent aero-engine lessor is further en- mercial engines, including the GEnx and the new GE9X. hanced this year by the transition to our new parent, Mitsubishi UFJ Lease and Finance Company (MUL). But achieving certification of that first composite fan blade was no easy feat. GE Aviation encountered The benefits to ELFC of this transfer of ownership are manifold: on the one hand it retains the strength challenges in the design, certification and manufacturing of these unique three-dimensional fan blades. of the financially-powerful ownership of the Mitsubishi UFJ Financial Group and on the other, by moving For certification, GE worked extensively with Boeing, the U.S. Federal Aviation Administration and cus- from the banking side of the Group to the leasing side, it becomes more closely aligned within the asset- tomers to educate them on the attributes of carbon fiber composite material. This information sharing management culture developed under MUL’s flexible, non-banking organisation. paved the way for engine certification. We have spare engines available to lease to your airline and we have the financial strength to provide To manufacture the composite fan blade, GE teamed up with Snecma of France to create CFAN in 1993 favourable terms for sale-leaseback. located in San Marcos, Texas. For more information, please contact SVP Mr. Julian Jordan at e-mail: [email protected] General Electric - AACO Partner since 2014 ELFC - AACO Partner since 2003 Gourmet meals in coach? How do you manage that?: Airline meal options are becoming more plentiful and delicious. Some airlines are going gourmet and others are offering culinary delights from celebrity chefs. What is clear however is that offering more culinary options to travelers has the potential to directly impact an airline’s brand by increasing customer satisfaction and boosting loyalty, making it a great topic for the Farelogix Use GE Capital Aviation Services to lease three new Boeing 737-800s to new customer Express:GE Case Challenge. If your airline is looking for a way to approach premium meals for your economy cabin, Capital Aviation Services Limited (GECAS), the commercial aircraft leasing arm of GE, announced it signed a good starting place is to consider what meals you will offer, what conditions would be required for a a contract to lease three new Boeing 737-800 aircraft to new customer Air India Express. Deliveries of particular meal to make it onto your menu (based on markets, flights, regions, etc.), and what you will the aircraft are scheduled for 2016 and are part of GECAS’ existing order book with Boeing. charge for the meals while taking into account personalization and loyalty status. Air India Express is the low-cost subsidiary of Air India and operates a fleet of 17 aircraft to some 30 des- No matter which elements you consider for a premium meal offering, they can easily be configured in tinations. FLX Merchandise. For example, a full catalog of meal options spanning a range of foods, meals, markets GECAS - AACO Partner since 2003 and tastes – each with corresponding descriptions, images and rich content – can be easily defined. You could even use bundles to group meals together as menu choices, the details of which would re- flect your airline’s business rules. In addition, while a meal’s base price may be USD 4.08, a variety of discounts can be offered depending on which fare brand the traveler has selected or based on frequent traveler status. For example, a traveler with Tier 2 status may get a 50% discount on the meal, as do all travelers who opt for the “FLEX” fare brand. We have only scratched the surface of what is possible when managing meals in a strategic merchandis- ing environment. Whichever way you decide to configure your offerings, Farelogix has the technology you need to support your strategy. Visit the Farelogix blog (blog.farelogix.com) for the complete use case example, or contact UAE-based Mr. Rui Sequeira, Vice President, Sales and Business Development at Farelogix, to schedule a meeting to discuss your airline’s merchandising challenge. Farelogix - AACO Partner since 2013

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Gogo Vision now installed on more than 1700 commercial aircraft:Gogo Inc. an- Hogan Lovells is a global legal practice that helps corporations, financial institutions, nounced that its wireless in-flight entertainment product – Gogo Vision – is now in- and governmental entities across the spectrum of their critical business and legal is- stalled on more than 1,700 commercial aircraft across six major airlines and contin- sues globally and locally. We have over 2,500 lawyers operating out of more than 40 ues to roll out in the business aviation market. Today, more than half of the aircraft offices in Africa, Asia, Europe, Latin America, the Middle East, and the United States. flying around the world with wireless in-flight entertainment are equipped with the Gogo Vision product. Hogan Lovells is one of a small number of leading global law firms with in-depth Gogo Vision allows passengers to rent movies and television shows on their own Wi-Fi enabled laptops, knowledge in aviation-related matters worldwide. Our aviation team regularly- re tablets or smartphones. Gogo has currently licensed more than 200 movies and close to 200 television ceives first-tier rankings from Chambers USA., which notes in its 2014 edition “An excellent law firm, shows from most of the major Hollywood studios. Most content is in the DVD release window, but Gogo staffed by outstanding attorneys, that achieves results; impressive by any measure.” We are also known is the first provider of wireless in-flight entertainment with some content in the early release window. for strong cross-border and asset finance work in global markets, earning praise from The Legal 500 for Gogo on track for record aircraft installs in 2015:Gogo Inc. announcedthat it’s on track for record air- “clarity of thought, a solutions-driven approach and exceptionally talented partners.“ craft installs in 2015. The company now has a backlog of well more than 1,000 commercial aircraft, more Clients benefit from our aviation lawyers’ experience in public service, which include positions as Chief than half of which are expected to be installed in 2015. With the large backlog in commercial aviation Counsel of the U.S. Federal Aviation Administration (FAA), Special Assistant to the Secretary of Transpor- and the company’s current trends in business aviation, Gogo expects to install a record number of air- tation, Special Counsel to the Administrator of the FAA, Special Assistant to a member of the National craft in 2015. Recently announced domestic regional jet installs and certain international fleet wins are Transportation Safety Board and Executive Assistant to the Chair and Vice Chair of the Civil Aeronautics expected to make up the bulk of the installs for 2015. Gogo expects to bring 500 additional commercial Board. In addition, our aviation lawyers team with lawyers from the firm’s network of more than 40- of aircraft online by the end of 2015, which would bring the total number of commercial aircraft equipped fices worldwide to address a broad range of legal issues, including antitrust, corporate, finance, environ- with its connectivity service to more than 2600. Of the new installs, around 25% are expected to be mental, tax, litigation, lobbying, and regulatory matters. international aircraft. We represent all segments of the aviation industry, such as air carriers, airports, corporate aircraft own- In addition to new installs, Gogo continues to upgrade previously-installed ATG systems to its next gen- ers and operators, municipalities, aerospace manufacturers, repair facilities, aviation trade associations, eration ATG-4 technology, which triples peak speeds to the aircraft and brings more capacity to the sky. foreign governments, business aviation operators, fractional ownership providers, unmanned aircraft More than a third of the aircraft on which ATG was installed have been upgraded to ATG-4. Gogo expects systems providers and operators, and aircraft leasing and financing organizations. The insights we derive close to half the commercial fleet operating in the U.S., or more than 1,000 aircraft, to be upgraded to from our diverse practice enable us to achieve our clients’ goals more efficiently and effectively. the newer technology by the end of 2015. Gogo - AACO Partner since 2014 Hogan Lovells - AACO Partner since 2014 HP launches new open network switches for web scale cloud data centers: HP an- nounced a new line of open network switches for the data center that will provide Web scale organizations and service providers more flexibility and control of their data center networks to power cloud, mobile, social media and big data workloads. Go global overnight! HP’s new line of switches provides web scale customers with increased choice in open network environments and the ability to tune their data center networks t