Issue 99 - June 2015 Official Monthly Bulletin of AACO Arab world marks an increase of 1.2% AVIATION WITHIN THE ARAB WORLD GLOBAL ARAB AVIATION in April 2015 in international passenger numbers - p. 9 GROWTH p: 12 SPREADING OUT p: 38 PARTNER AIRLINES p: 64 - 75

ARAB AIRLINES ECONOMICS p: 13 TOURISM p: 47 INDUSTRY PARTNERS p: 76 - 101 Quarterly Development of Arab Airlines’ Fleet - p. 22 NEW APPOINTMENTS p: 20 COLLABORATION p: 51 AACO & RTC CALENDARS p: 102 - 105

EXPANSION p: 20 ENVIRONMENT p: 53 AACO MEMBERS & PARTNERS p: 106 - 109

Key Figures for MENA and Other Re- LAURELS p: 23 REGULATORY TONE p: 54 gions Extracted From the UNWTO Barometer - p. 50 TECHNOLOGY & E-COMMERCE p: 28 AN AVIATION MARKET IN FOCUS: BELGIUM p: 58 SAFETY & SECURITY NEW p: 30 WORLD NEWS p: 60 TRAINING p: 31

ARAB AIRPORTS p: 32

Daily news on www.aaco.org Issue 99 - June 2015 Three UAE airlines announced gers flew with Air Arabia between January and March 2015, which is their financial results in May. The 10% higher than the number of 1.6 million for the corresponding pe- Emirates Group announced its riod of 2014. 27th consecutive year of profit, ending the financial year with a A strategic joint business agreement on services between the State profit of AED 5.5 billion (USD 1.5 of Qatar and the Kingdom of Morocco was signed between Qatar billion), up 34% from the previ- Airways and Royal Air Maroc with the aim of benefiting passengers ous year. Emirates Airline made by providing better links between and beyond Qatar and Morocco, record a profit of AED 4.6 billion greater choice of flights to more destinations and enhanced frequent (USD 1.2 billion), an increase of flyer benefits. Royal Air Maroc as well inaugurated a joint venture 40% over last year’s results, and specialized in aircraft painting with STTS Group. On the other hand, a healthy profit margin of 5.1%, Qatar Airways acquired the Novotel Edinburgh Park Hotel in Scotland, the strongest margin since 2010- Saudia endorsed the airline’s strategic plan for the next five years 11. Emirates also carried more (2015-2020), and flynas announced the launch of its first ever loyalty passengers compared to the program called ‘nasmiles’. It’s worth highlighting as well that Leba- Foreword previous year by 11%, reaching non’s MEA saw the official inauguration of its new USD 25 million-car- a record of 49.3 million passen- go center at Beirut-Rafic Hariri International Airport. gers, with a Passenger Seat Fac- tor of 79.6. On the other hand, Looking at fleet developments of airlines in the region, Lebanon’s Etihad Airways’ 2014 financial MEA firmed up one of its two A330-200 options and selected Rolls- results marked the airline’s fourth Royce to supply Trent 700 engines and TotalCare® service support for consecutive year of net profit- this aircraft, and announced placing an order with Embraer Executive ability, achieving the strongest Jets for one midsize Legacy 500 and an option for a second aircraft of financial results to date, posting the same model as the airline is establishing a business jet company a net profit of USD 73 million on to offer charter flights. Another airline, Qatar Executive, increased its total revenues of USD 7.6 billion, Gulfstream aircraft order from 20 to 30 wide-cabin aircraft. Whereas, up 52.1% and 26.7% respectively Air Algerie received a new A330 aircraft and Oman Air received two over 2014. Etihad Airways carried of its three new Boeing B737-900ER aircraft that are on long-term a total of 14.8 million passengers lease. AACO members added in total 31 new aircraft by April 2015 in 2014, an increase of 22.3% compared to January 2015. For further details on the quarterly fleet year-on-year. Meanwhile, Air Ara- development of AACO airlines, please go to the table on page 22. bia announced its financial results for the first quarter of 2015, re- At the IT and distribution levels, Emirates announced the debut porting a net profit of USD 23.14 of the Emirates App for Android following the successful launch of million, an increase of 13% on the its Apple Watch app and Oman Air launched a new App for smart corresponding 2014 figure of USD phones, iPads, tablets and other mobile devices. Travelport signed a 20.42 million. 1.8 million Passen- new multi-year global full content agreements with Air Go Egypt and

Daily news on www.aaco.org Issue 99 - June 2015 5 Aviation in the Arab World Nile Air, and renewed its agreement with Etihad Airways. Moreover, the MENA region. Visa facilitation, open skies, the need to adapt to Etihad Airways chose SITA for end-to-end baggage tracking services. market needs and the role of events in the promotion of intra-region- Whereas, Gulf Air implemented HP latest generation of Intrusion Pre- al tourism in the MENA region were the focus of the debate at the vention System (IPS) to bolster its Information Technology security 2015 UNWTO & ATM Ministerial Forum on Intra-Arab Tourism: Ad- and network data protection. dressing the challenges and seizing the opportunities, which was held in Dubai on 5 May 2015. Lastly, the UNWTO has recently published its The region’s airports continue to expand and handle more passen- preliminary figures for 2014; which highlight that exports from inter- gers. Hamad International Airport (HIA) served 7.3 million passengers national tourism rose to USD 1.5 trillion in 2014. For more informa- during the first quarter of 2015, representing a 17% increase from the tion on some of the MENA figures that were extracted from the latest number of passengers who travelled through the previous hub, Doha UNWTO barometer, please go to page 50. International Airport, during the same period in 2014. The UAE’s main airports handled 17.3% more passengers in the first four months of We focus on the Belgian aviation market in this issue. With a popula- 2015 compared to 2014, whereby a total of 37.84 million passengers tion of 11.24 million people, more than 24.1 million passengers used arrived, transferred and departed at airports in the UAE from January Belgian airports in 2014, creating a ratio of 2.14:1 of passengers to to April compared to 32.24 million in 2014. Moreover, Dubai Airports population. The Belgian aviation market linked 240 cities worldwide confirmed that construction is expected to begin later in 2015 on in April 2015, whereby the highest share of traffic of Belgium is with the expansion of Al Maktoum International at Dubai World Central’s Europe (more than 80.2% of total traffic share within Europe) with (DWC’s) existing passenger terminal which will boost the current ca- Brussels-Rome city pair having the highest number of seats offered pacity of 6 million passengers a year to 26 million. To review the intra- from Belgium in April 2015. More details are available on page 58. Arab and extra-Arab new services and enhancements, please visit pages 20 and 39 respectively.

Airlines have always been a key player in boosting tourism. The past month witnessed Emirates renewing its individual global market- ing agreements with the Tourism Boards of South Africa, Seychelles and Mauritius to utilize Emirates’ growing global network to further boost inbound tourism to these states. Moreover, Etihad Airways has teamed up with Brand USA, a destination marketing organisation for the United States, highlighting its commitment to boosting tourism to the USA from points across its global network. Whereas, Royal Jor- danian and the Jordan Hospitals Association (JHA) signed a memo- randum of understanding in order to build a strategic partnership between the two sides and coordinate with authorities involved in medical and therapeutic tourism. Furthermore, the Egyptian Ministry of Tourism is drafting an ambitious plan to attract 20 million tourists by 2020 and to boost the sector’s total revenues to USD 26 billion. Nevertheless, challenges remain in boosting intra-regional tourism in

Daily news on www.aaco.org Issue 99 - June 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 1.2% in April 2015 compared to April • Royal Jordanian 2014, which follows an increase of 1.4% in March 2015 compared to • Sudan Airways March 2014. • Iraqi Airways Monthly International Passenger Numbers' Change To, From and Within the Arab World • Saudia May14 to Apr15* compared to same month in previous year • Syrian Arab Airlines • United Arab Airlines 14% • Misrair 12% • Yemenia 10% 8%

• Kuwait Airways 6%

• Middle East Airlines 4%

• Air Liban 2% • Lebanese International Airways 0% 14 14 - 14 - 14 - 14 - 14 - 14 -

• Trans Mediterranean Airways 14 - 15 * - 15 Jul - 15 Jun - May - Aug 15 Sep Oct - Nov Jan Dec Feb Mar Apr Royal Jordanian’s SE-210 Caravelle 10R aircraft Effectof Ramadan manufactured by Sud Aviation YoY Growth 12-Month Average Growth Source: AACO, IATA *Estimated In April 2015, AACO members increased the number of their offered seats to, from, and within the Arab world by 6.5%, while other air- lines increased their number of seats offered by 6.6%, leading to 6.5% year-on-year increase in the total number of seats offered.

Daily news on www.aaco.org Issue 99 - June 2015 9 AVIATION WITHIN THE ARAB WORLD Aviation in the Arab World

GROWTH Monthly International Passenger Numbers' Change Within the Arab World May14 to Apr15* compared to same month in previous year PASSENGER TRAFFIC International passenger numbers within the Arab world are estimated to have 20% shrunk by (4.6%) in April 2015 compared to April 2014. This follows a decrease 15% of (3.5%) in March 2015 over March 2014. However, the recent developments that are taking place in Libya are behind 10% the decrease in passenger traffic within North Africa, as highlighted below. 5%

0% Passenger traffic within the Arab World Apr 15* over Apr 14 Within Arabian Peninsula (2.2%) -5% Within Near East (5.1%) -10% Within North Africa (47.2%) Between Arabian Peninsula & Near East 2.8% YoY Growth 12-Month Average Growth Between the Near East and North Africa (22.2%) Between Arabian Peninsula & North Africa (11%) Source: AACO, IATA *Estimated Source: AACO, IATA *Estimated

International Passenger Numbers' Change Within the Arab World Jan15-Mar15 & Feb15-Apr15* compared to same period in previous year 20% ARAB AIRLINES ECONOMICS

10% Royal Air Maroc and STTS Group inaugurate a joint venture specialized in aircraft painting: H.E. Mr. Aziz Rabbah, Minister of Equipment, Transport and 0% Logistics in Morocco, inaugurated STTS Ma, a firm specialized in aircraft paint- within within N East -10% Arabian Pen within N ing, which is owned by Royal Air Maroc (50.1%) and STTS Group (49.9%). STTS N East N East N Africa N Africa Ma is located in the industrial area near to Casablanca Mohammed V Airport, Arabian Pen Africa -20% Arabian Pen and STTS Group is in charge of operating the firm.

-30% This firm abides by the highest environmental standards and is the first of its kind in the African continent. The firm will meet the requirements of Royal Air -40% Maroc in this field and will also develop its work by striking deals with other air carriers in the Mediterranean and Africa regions. -50%

-60% Emirates Group announces 27th consecutive year of profit: The Emirates

-70% Group announced its 27th consecutive year of profit and steady growth across the company, ending the year in a strong position despite the many global and operational challenges during this period. The financial year ending 31 March Jan15-Mar15 Feb15-Apr15* 2015 also marked the achievement of new capacity milestones at both Emir- ates and dnata. Source: AACO, IATA *Estimated Released in its 2014-15 Annual Report, the Emirates Group posted an AED Passenger numbers within the Arab world reported a (0.7%) decline between 5.5 billion (USD 1.5 billion) profit, up 34% from last year. The Group’s revenue January 15 & March 15 compared to same period in the previous year. reached AED 96.5 billion (USD 26.3 billion), an increase of 10% over last year’s results, and the Group’s cash balance remained strong, growing to AED 20 bil- Passenger numbers within the Arab world reported a (4.8%) decline between lion (USD 5.5 billion). February 15 & April 15* compared to same period in the previous year. The strong rise of the US dollar against currencies in many of Emirates’ and dnata’s key markets had an AED 1.5 billion (USD 412 million) impact to the

Daily news on www.aaco.org Issue 99 - June 2015 13 Aviation in the Arab World

Group’s bottom line, while the 80-day disruption at DXB had an estimated im- Under pressure from the weakening of all major currencies against the USD, pact of AED 1.7 billion (USD 467 million) on Group revenue. passenger yield dropped to 29.7 fils (8.1 US cents) per Revenue Passenger Ki- In line with the overall profit increase, the Group declared a dividend of AED lometre (RPKM). 2.6 billion (USD 700 million) to the Investment Corporation of Dubai. In line with its customer-focused proposition, Emirates invested over AED 73 Emirates performance million (USD 20 million) last year to equip its fleet with free Wi-Fi. By 31 March In 2014-15, Emirates increased capacity by 4.0 billion Available TonneKilome- 2015, 107 of its A380 and Boeing 777 aircraft offered Wi-Fi services. The air- tres (ATKMs).For the first time in the airline’s history, Emirates’ total passenger line also opened new dedicated airport lounges in Glasgow and Los Angeles, and cargo capacity crossed the 50 billion mark, to 50.8 billion ATKMs at the taking to 37 the number of dedicated Emirates Lounges across the world. end of the financial year, cementing its position as the world’s largest interna- Emirates also opened a new 300-seat contact centre in Budapest to support its tional airline. growth and supplement its language and response capability. Emirates received 24 new aircraft during the year, including 12 A380s, ten Boe- Looking forward to 2015-16, Emirates has to date announced two new routes ing 777-300ERs and two Boeing 777Fs, bringing its total fleet count to 231. At including Denpasar and Orlando aside from a number of capacity upgrades to the same time 10 aircraft were phased out, taking the average fleet age to 75 existing destinations. months or approximately half the industry average of 140 months. The 2014-15 financial year has been a strong one for Emirates SkyCargo which With the delivery of new aircraft, Emirates launched five new passenger des- reported a revenue of AED 12.3 billion (USD 3.4 billion), a 9% increase over tinations: Abuja, Brussels, Budapest, Chicago, Oslo and four new additional last year. Contributing 15% of the airline’s total transport revenue Emirates freighter-only destinations: Atlanta, Basel, Mexico City, and Ouagadougou. SkyCargo continues to play an integral role in the company’s expanding opera- It also added services and capacity to 34 cities on its existing route network tions. across Africa, Asia, Europe, the Middle East, and North America, offering cus- Emirates SkyCargo’s tonnage strongly increased by 6% to reach 2.4 million tomers even greater choice and connectivity. tonnes in an airfreight market that remained challenging with fast-changing The 80-day runway closure at DXB necessitated the grounding of 19 Emirates demand patterns. Emirates SkyCargo’s performance highlights its ability to aircraft, reducing the airline’s capacity by 9%, and causing the reduction of grow revenues against the industry norm. This year, freight yield per Freight services to 41 destinations over this period. The estimated impact on airline TonneKilometre (FTKM) decreased by 1%, and was also impacted by the weak- revenue was AED 1.6 billion (USD 436 million). The Ebola outbreak in Africa ening of major currencies. prompted route suspensions and increased health and safety screenings at On 1 May 2014, Emirates SkyCargo marked a major milestone with the move other ports; and geopolitics resulted in the suspension of services and re-rout- of its freighter operations to its new cargo terminal at Dubai World Central’s ing of flight paths to avoid overflying conflict zones. Al Maktoum International airport (DWC).At the end of the financial year, the Despite these challenges, Emirates revenue reached a new record of AED 88.8 Emirates SkyCargo freighter fleet had grown to 14 aircraft - 12 Boeing 777Fs, billion (USD 24.2 billion). The average price of jet fuel dropped significantly and 2 Boeing 747-400Fs. during the second half of the financial year and has supported Emirates’ bot- Emirates’ hotels recorded revenue of AED 693 million (USD 189 million), an in- tom line improvement. Emirates’ fuel bill decreased by 7% over last year to crease of 23% over last year. This positive development was supported by the AED 28.7 billion (USD 7.8 billion). Fuel is now 35% of operating costs, down by opening of the second tower of the JW Marriott Marquis Hotel in Dubai, the 4 percentage points compared to last year. However, fuel remained the biggest world’s tallest hotel. cost component for the airline. Total operating costs increased by 6%, com- The full 2014-15 Annual Report of the Emirates Group – comprising Emirates, pared to a revenue increase of 7% over the 2013-14 financial year. dnata and their subsidiaries – is available at: www.theemiratesgroup.com/an- The airline successfully managed increased competitive pressure across all nualreport markets to record a profit of AED 4.6 billion (USD 1.2 billion), an increase of *USD figures are converted at 1USD = 3.67AED and are based on the full AED 40% over last year’s results, and a healthy profit margin of 5.1%, the strongest figures before rounding. margin since 2010-11. Carrying a record 49.3 million passengers, up 11% from last year, Emirates Fourth consecutive year of net profit for Etihad Airways: Etihad Airways managed to achieve a Passenger Seat Factor of 79.6%, an improvement com- achieved its strongest financial results to date in 2014, posting a net profit of pared with last year’s results (79.4%) in spite of a 9% increase in seat capac- USD 73 million on total revenues of USD 7.6 billion, up 52.1% and 26.7% re- ity by Available Seat Kilometres (ASKMs). This highlights the strong consumer spectively over 2014. desire to fly on Emirates’ aircraft, and via efficient routings through its Dubai The record performance, which marked the airline’s fourth consecutive year of hub. net profitability, also saw earnings before interest and tax (EBIT) up 32.5% to

Daily news on www.aaco.org Issue 99 - June 2015 15 Aviation in the Arab World

USD 257 million. Earnings before interest, tax, depreciation, amortisation and also builds greater synergies for participating airlines, which currently include rentals (EBITDAR) were up 16.2% to USD 1.1 billion, representing a 15% mar- airberlin, Air Serbia, Air Seychelles, Alitalia, Etihad Airways, Etihad Regional, gin on total revenues. Jet Airways and NIKI. Etihad Airways’ financial statements are audited by KPMG and are in accor- A further measure of Etihad Airways’ growth was the increased membership dance with International Financial Reporting Standards (IFRS). of the Etihad Guest loyalty program. In 2014, membership numbers increased Etihad Airways carried a total of 14.8 million passengers in 2014, an increase from 2.3 million to 2.9 million, up 26.1%, representing an average increase of of 22.3% year-on-year. Revenue Passenger Kilometres (RPKs) – measuring pas- 50,000 new members each month. Etihad Guest has entered its next phase of senger journeys - increased by 23.6% to 68.6 billion (55.5 billion), while Avail- growth after becoming a separate legal entity in 2014. able Seat Kilometres (ASKs) – representing capacity - grew by 21.8% to 86.6 Etihad Airways’ cargo division also delivered a standout performance in 2014, billion (71.1 billion). The growth in passenger demand and revenue over the becoming a billion dollar company one year ahead of schedule. Cargo rev- 12-month period continued to outstrip Etihad Airways’ capacity increase, high- enues were up 19.2% to USD 1.1 billion, with freight and mail volumes rising lighting the strength of its long-term growth strategy. from 487,000 to 569,000 tons. In 2014, the airline launched services to 10 new destinations in eight countries In 2014, the fixed wing division of Horizon International Flight Academy was - Los Angeles, Dallas, San Francisco, Rome, Zurich, Medina, Yerevan, Jaipur, acquired from Mubadala, leading to the establishment of Etihad Flight College, Phuket and Perth - and increased capacity on 23 existing routes. By the end of which trains up to 200 cadets annually and provides a source of trained pilots the year, the average network-wide seat load factor was 79.2%, compared to to Etihad Airways. The non-engine divisions of Abu Dhabi Aircraft Technologies 78% in 2013. (ADAT) were also acquired from Mubadala and rebranded as Etihad Airways A key driver of Etihad Airways’ growth in 2014 was its partnership strategy, Engineering. based on wide-ranging codeshares and its unique approach of minority equity Etihad Airways continued to diversify its portfolio of global funding sources investments in strategically important airlines. This has accelerated network and expanded its range of borrowing relationships to 75 lenders, investors and growth, giving Etihad Airways route network more than 500 destinations. It lessors. During the year, Etihad Airways secured USD 3.5 billion of debt fund- has boosted sales and marketing opportunities in key markets, as well as al- ing in the financial markets. lowing significant business synergies and cost savings. Etihad Airways’ fleet consisted of 110 aircraft at the end of 2014 (up 23.6% This strategy delivered revenues of USD 1.1 billion in 2014, an increase of year-on-year), with an average age of 5.5 years. The airline took delivery of its 37.7% (USD 820 million), and represented 24% of Etihad Airways’ total passen- first Airbus A380 and its first Boeing 787-9 in December.An additional nine -Air ger revenues. bus aircraft and six Boeing aircraft were received in 2014, while further leased In 2014, Etihad Airways received final approval for its 49% investment in Air capacity was also added. Serbia. It also invested €560 million to acquire a 49% shareholding in New Etihad Airways won more than 55 awards in 2014, including being named Alitalia, a 75% interest in Alitalia Loyalty, which operates the MilleMiglia fre- World’s Leading Airline for the sixth straight year at the World Travel Awards quent flier program, and the future purchase of five pairs of London Heathrow (WTA). Airport slots for lease back to Alitalia. The transaction became effective on 31 Etihad Airways employed 24,206 people from 144 nationalities by the end of December 2014, after receiving European Commission merger clearance. 2014, an increase of 37.5% compared to the previous year. Air Serbia and Alitalia are the latest additions to Etihad Airways’ equity partner network. Etihad Airways also owns minority stakes in airberlin, Air Seychelles, Air Arabia reports first quarter 2015 net profit of USD 23.14 million, up 13%: Aer Lingus (stake increased to 4.99% in 2014), Jet Airways and Virgin Australia Air Arabia announced its financial results for the first quarter of 2015 as the (stake increased to 22.9% in 2014). An investment in Swiss-based Etihad Re- airline’s route and hub expansion strategy continued to deliver strong finan- gional, operated by Darwin Airline, has now been formalised after Swiss Gov- cials and healthy passenger number growth. ernment approval earlier in 2015. For the three months ending 31 March 2015, Air Arabia reported a net profit Etihad Airways launched new codeshare agreements with Air Europa, jetBlue, of USD 23.14 million, an increase of 13% on the corresponding 2014 figure of Philippine Airlines, GOL, SAS, Hong Kong Airlines and Aerolineas Argentinas, USD 20.42 million. During the same period, the airline’s turnover reached USD while Etihad Airways’ existing codeshares with South African Airways, Alitalia 241.21 million, an increase of 7% compared to USD 225.15 million in the first and Jet Airways were significantly expanded. quarter of 2014. In addition, Etihad Airways Partners was unveiled in 2014, using a partnership 1.8 million Passengers flew with Air Arabia between January and March 2015, cooperation model to offer passengers more choice through improved net- which is 10% higher than the number of 1.6 million for the corresponding pe- works and schedules, plus enhanced frequent flyer benefits. The partnership riod of 2014. The airline’s average seat load factor - or passengers carried as a

Daily news on www.aaco.org Issue 99 - June 2015 17 Aviation in the Arab World

percentage of available seats - during the first three months of 2015 stood at prosperity, with a futuristic vision having international dimensions. 81%. Addressing the executives, Eng. Al-Jasser said Saudia would have a total of 200 Air Arabia reached two major milestones in its route and hub expansion strat- aircraft by the next five years. He also disclosed plans to increase the airline’s egy in the first quarter of 2015. In January, the airline announced the opening domestic flights and expand operations to new international destinations. of its fifth global fixed-based operation, located at Amman Queen Alia Interna- Saudia, which celebrates its 70th anniversary in 2015, plans to double its tional Airport in Jordan. achievements during the next seven years. Later in the quarter, Air Arabia became the first low-cost airline from the Mid- During the workshop titled “SV2020: Together Shaping Our Future,” Saudia dle East and Africa to enter the Chinese market when it began regular non- executives discussed 20 major initiatives to transform them into working pro- stop services to Urumqi, the largest city in Western China. grams, of which 10 initiatives would be implemented in 2015. Working teams Air Arabia added a total of eight new routes in the first three months of 2015 presented their plans to implement the programs. from the carrier four operating hubs: Urumqi (China), Gizan (Saudi), Multan The meeting endorsed the airline’s strategic plan for the next five years (2015- (Pakistan) and Isfahan (Iran) from Sharjah; Doha (Qatar) and Kathmandu (Ne- 2020). Prepared by an international consultancy firm, the plan focuses on en- pal) from Ras Al Khaimah; Naples (Italy) and Montpelier (France) from Casa- suring the security and safety of passengers and aircraft, providing advanced blanca. training to staff, rationalization of expenditures, diversification of revenue and Another industry milestone was achieved by Air Arabia in March with the optimum use of human and material resources. launch of the first loyalty program from a regional low-cost carrier, Airewards. The workshop was also attended by executives who presented new initiatives for the airline’s progress as well as a team of experts specialized in change and MEA inaugurates new cargo center: Middle East Airlines saw the official in- transformation. auguration of its new USD 25 million cargo center at Beirut-Rafic Hariri Inter- It is worth mentioning that Boston Consulting Group prepared the airline’s national Airport that was designed to speed up the inspection of goods and five-year strategic plan after conducting several workshops for executives, handle all types and sizes of imported and exported items. holding meetings with different groups of employees and visiting places of The new cargo center could store 165,000 tons of goods, compared to the work. BCG set out the plan taking into consideration Saudia’s present status old facility’s 65,000-ton capacity. The new cargo center is built over an area of and its future corporate goals. 20,645 square meters and is equipped with more than 330 closed-circuit cam- eras, four large scanners, four generators and the latest UPS systems. flynas launches its first ever loyalty program ‘nasmiles’: flynas has announced The center can also handle the freight of other international airlines that use the launch of its first ever loyalty program called ‘nasmiles’, in an effort to the airport. ensure an all-inclusive and truly rewarding experience for its rapidly growing Source: The Daily Star faction of frequent flyers. Under this program, members will receive up to 5% return on spends and other ancillary services including excess baggage, seat Qatar Airways acquires the Novotel Edinburgh Park – a location near the selection, meals and exclusive lounge access. airport for travellers in Scotland: Qatar Airways has acquired the Novotel nasmiles will offer its members exclusive privileges and savings, while encour- Edinburgh Park Hotel in Scotland. The hotel will continue to be managed and aging the use of flynas’ strong digital presence including all of the airline’s operated under the Novotel brand by Accor which operates more than 3,700 social media accounts and mobile application, to oversee all aspects of the loy- hotels worldwide. alty program, including registration and redemption of miles through flynas. The Novotel Edinburgh Park marks the second hotel acquisition by Qatar Air- com. ways outside of Qatar, where it owns the Oryx Rotana Hotel in Doha and runs nasmiles features three tiers, namely, Bronze, Silver, and Gold, with all new the new airside Hamad International Airport Hotel. The first acquisition, -ear members entering the program at the Bronze tier and moving to a higher tier lier in 2015, was the Sheraton Skyline Hotel at Heathrow Airport in London. based on their spend values. To mark the launch of the program and in celebration of the occasion, flynas Saudia endorses the airline’s strategic plan for 2015-2020: Saudia recently CEO Mr. Paul Byrne presented the first nasmiles membership card to H.E. Su- organized a three-day executive workshop at King Abdullah Economic City in laiman Bin Abdullah Al-Hamdan, President of the General Authority of Civil Rabigh, in the presence of all its executive leaders including those working Aviation of the Kingdom of Saudi Arabia. with its affiliated companies and strategic units. flynas has also introduced the element of Family Membership to the program During the workshop, Eng. Saleh bin Nasser Al-Jasser, the Director General of on account of the family-oriented structure of communities based in the Mid- Saudia, launched SV2020 flight to take Saudia to new heights of progress and dle East. As part of this feature, up to eight family members can be linked to

Daily news on www.aaco.org Issue 99 - June 2015 19 Aviation in the Arab World the same nasmiles account, provided that each individual is also a member of the program separately. Qatar Airways to expand its UAE network with the launch of daily flights to Enrolment to nasmiles is free of charge and members will be able to redeem Ras Al Khaimah: Qatar Airways has announced an expansion to its UAE ser- miles from June 2015 onwards. vices with the launch of daily direct flights to Ras Al Khaimah, commencing 1 October 2015. Having launched Sharjah and Dubai World Central in March 2014 and with the announcement to launch Ras Al Khaimah in October 2015, Qatar Airways NEW APPOINTMENTS is significantly increasing its operations to the UAE as a result of growing de- Mr. Bouderbala assumes CEO role of Air Algerie: Mr. Mohamed Abdou Boud- mand for more capacity in and out of the country. erbala has been appointed as the new Chief Executive Officer of Air Algerie. Mr. Bouderbala replaces Mr. Mohamed Salah Boultif, the Former CEO of Air Algerie. EXPANSION CAPACITY AND DEMAND Passenger Air Services Within the Arab World - Apr. 2015 - SRS Analyzer ROUTES AACO members increased the number of seats offered within the Arab world by 1.8% in April 2015 compared to April 2014 whereas other airlines de- Airline From To Date Weekly Freq. Aircraft Type creased that number by (6.4%), leading to a 1.3% year-on-year increase in the total number of seats offered within the Arab world. Kuwait 18 May 15 Available Seats within the Arab world for international and domestic routes Jeddah 19 May 15 constituted 23.3% and 10% respectively of the total available seats to, from, G9 Amman N/A A320 Erbil 20 May 15 and within the Arab world in April 2015. Sharm El Sheikh 21 May 15 Capacity* of Top 10 Carriers within the Arab World (Int’l Operations) Mersa Matruh 24 May 15 2x N/A Airline ASKs (Million) Departures Seats MS Cairo Abha Jun 15 4x N/A EK 1,208.1 2,588 843,007 SV 911.1 2,904 586,542 QR Doha Ras Al Khaimah 1 Oct 15 7x N/A MS 848.1 2,790 546,046 QR 815.2 4,421 841,908 Air Arabia Jordan goes operational with first flight to Kuwait: On 18 May FZ 726.9 3,601 680,589 2015, the first Air Arabia Jordan flight departed from its base at Queen Alia International Airport in Amman and headed to Kuwait. G9 426.6 2,073 335,826 Air Arabia Jordan also launched its services to Jeddah, Erbil and Sharm El EY 376.4 1,702 270,034 Sheikh on 19, 20 and 21 May respectively. XY 282.6 1,262 227,160 The newly established carrier is managed by Air Arabia Group and will operate WY 274.1 1,928 266,640 a fleet of new Airbus A320 aircraft. GF 273.8 2,854 408,064 EgyptAir launches 2 weekly flights between Cairo and Mersa Matruh: Grand Total 7,898.5 35,125 6,401,409 EgyptAir started operating 2 weekly flights between Cairo and Mersa Matruh * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer from 24 May. EgyptAir to resume flights to Abha in June: EgyptAir has announced it will resume flights to Abha, Saudi Arabia, in June 2015. EgyptAir is to operate four weekly flights on this route. Source: Arabian Aerospace

Daily news on www.aaco.org Issue 99 - June 2015 21 Aviation in the Arab World

FLEET Royce powered aircraft over the last 50 years, dating back to Dart-powered Viscount aircraft. Quarterly Development of Arab Airlines’ Fleet (1) (2) (3) (4) Jul 14 over Apr 14 Oct 14 over Jul 14 Jan 15 over Oct 14 Apr 15 over Jan 15 Embraer Executive Jets sells Legacy 500 to MEA: Embraer Executive Jets an- Added Removed Added Removed Added Removed Added Removed nounced that Middle East Airlines has placed an order for one midsize Legacy A/C A/C A/C A/C A/C A/C A/C A/C 500 and an option for a second aircraft of the same model. The delivery of this 12 A320 6 A320 9 A320 1 A300 7 A320 3 A320 7 A320 4 A320 aircraft is scheduled for the fourth quarter of 2015. MEA is establishing a busi- 4 A321 1 A321 1 A321 2 A319 1 A321 2 A330 3 A330 4 A340 ness jet company to offer charter flights, with the base of its operations at its 2 A330 8 A330 8 A330 11 A320 5 A330 7 A340 2 A350 1 E190 corporate headquarters, at Rafik Hariri International Airport in Beirut. 1 A340 9 A340 9 A340 2 A321 1 A340 1 ATR 42 4 A380 3 E195 This order is already included in Embraer’s firm order backlog for the first 3 A380 1 A310 5 A380 6 A330 7 A380 5 B737 1 ATR 72 quarter of 2015. 5 ATR 72 7 B737 7 B737 1 A340 14 B737 2 B777 11 B737 Qatar Executive announces increased aircraft order from Gulfstream: Qatar 6 B737 1 B747 12 B777 1 B727 7 B777 3 CRJ900 6 B777 Executive announced that it has agreed to purchase up to 30 aircraft from 5 B777 3 B777 3 B787 1 B737 7 B787 5 B787 Gulfstream Aerospace Corp. as part of a Memorandum of Understanding origi- 3 B787 4 E190 1 E190 3 CRJ900 3 E190 1 E190 nally announced in October 2014. The original sale called for Qatar Executive to purchase up to 20 Gulfstream 1 C-130 1 DHC8 aircraft, including the all-new Gulfstream G500. The recently signed final 1 DHC6 2 IL-76 agreement increases the purchase to 30 firm orders and options that are a 4 DHC8 1 E195 combination of both of Gulfstream’s new clean-sheet, wide-cabin aircraft, the 4 MD-11F G500 and G600, and the G650ER. Qatar Executive will begin inducting the new aircraft into its private jet fleet (1) 26 new aircraft have entered into service from the end of 2015. (2) Air Go Egypt fleet added; 18 new aircraft have entered into service (3) 41 new aircraft have entered into service (4) 31 new aircraft have entered into service Oman Air agrees with OBALC to lease three new Boeing B737-900ER aircraft: Oman Brunei Aviation Leasing Company (OBALC) was mandated by Oman Air to provide three new Boeing B737-900ER aircraft on long-term lease. Air Algerie receives a new A330 aircraft: Air Algerie received on 30 May a new The aircraft were previously ordered by Oman Air and the first delivery was A330-200 aircraft that accommodates 18 passengers in business class, 14 in completed on 20 May 2015, the second was scheduled for 27 May and the premium economy and 219 in economy class. third is in November 2015. This delivery is part of the carrier’s fleet renewal program that includes the OBALC is Oman’s very first aircraft leasing company, specialising in the provi- purchase of 16 new aircraft. The first new A330 was received in April 2015 and sion of tailored leasing, sales, asset management and re-marketing solutions the third one is expected to be received in June 2015. Moreover, the Boeing to leading airlines and investors. and ATR aircraft are expected to be received between 2015 and 2016. Source: Times of Oman Middle East Airlines orders one more A330: Middle East Airlines has firmed LAURELS up one of its two A330-200 options, Airbus order numbers have revealed. The options are part of an order for four A330s and four A321-200s placed in 2006. Emirates sweeps four titles at the Business Traveller Awards: Emirates’ inno- MEA currently operates four of the type with delivery slots for the two options vation, investments in product, and customer service were recognised with an slated for 2017. array of accolades at the ‎Business Traveller Middle East 2015 Awards. Source: ch-aviation At the ceremony attended by over 350 industry executives, Emirates was crowned “Best Airline Worldwide”. It was also named “Airline with the Best MEA selects Rolls-Royce Trent 700 engines: MEA (Middle East Airlines - Air First Class”, “Airline with the Best Economy Class” and “Airline with the Best Liban) selected Rolls-Royce to supply Trent 700 engines and TotalCare® service Cabin Staff”. support for an additional Airbus A330 aircraft. These prestigious accolades are a testament to Emirates’ on-going commit- The airline, which this year celebrates its 70th anniversary has ordered Rolls- ment to excellence and innovation across its different areas of business.

Daily news on www.aaco.org Issue 99 - June 2015 23 Aviation in the Arab World

Etihad Airways wins three World Travel Awards including Middle East’s Lead- Etihad honoured with Call Centre Awards: Etihad Airways has been honoured ing Airline: For the ninth consecutive year, Etihad Airways has been named with two accolades at the INSIGHTS Middle East Call Centre Awards 2015. This The Middle East’s Leading Airline at the World Travel Awards Middle East. In is the fourth consecutive year in which the airline has been recognised at the addition to the coveted accolade, Etihad Airways also scooped awards for Mid- annual gala ceremony, which was held in Dubai on 12 May and was attended dle East’s Leading Airline - First Class, and Middle East’s Leading Cabin Crew. by almost 300 call centre professionals and service providers from across the The airline’s success at 2015’s World Travel Awards Middle East follows anoth- Middle East. er string of triumphs for Etihad Airways over the month of April. At the Aircraft Etihad Airways received the awards for ‘Best Industry Call Centre (Airline)’ Interiors Expo held in Hamburg, the airline took home the Crystal Cabin Award for its Al Ain Contact Centre, and for ‘Best Career and Skills Path’ for its Team for its innovative A380 upper deck cabins, as well as the PAX International Leader Passport program. awards for Best New IFE/Connectivity Launch by an Airline and Best Inflight Together with Etihad Airways’ two other contact centres located in Abu Dhabi Duty Free Program. Recently, Etihad Airways picked up the awards for Best Air- and Manchester, Etihad Airways employs almost 600 call centre personnel, port Lounge and Best Frequent Flyer Program at the Business Traveller Middle who in 2014 answered 2.6 million calls, in 15 different languages across 39 East Awards. markets around the world. Etihad Airways named ‘Airline of the Year’ in China: Etihad Airways has been Etihad Airways wins three Middle East Procurement awards: Etihad Airways’ named ‘Airline of the Year’ at the 14th Annual China Travel & Meeting Industry Procurement & Supply Management department has received three presti- Awards 2015. gious awards from the Chartered Institute of Procurement & Supply (CIPS). This award was announced during a gala ceremony in Shanghai, attended by The department was shortlisted in five different categories and successful in over 200 senior executives from the Chinese travel and meeting industry, in two categories, namely ‘Best People Development Initiative’ and ‘Best Inter- recognition of the Etihad Airways’ market-leading product and service offering. national Procurement’. The team also carried home the judges’ award for ‘The Overall Winner’. Etihad Guest takes double honours at Freddie Awards: Etihad Airways’ fre- The Middle East Awards ceremony was held on 11 May at the InterContinental quent flyer program, Etihad Guest, has been recognised as one of the best loy- hotel in Abu Dhabi. alty programs globally. The airline received the award for‘Best Elite Program’, During the last two years, Etihad Airways’ Procurement and Supply Manage- for the array of superior benefits it provides to Silver, Gold and Platinum mem- ment team has undergone a complete business transformation in its procure- bers, and the ‘Best Affinity Credit Card’ award for its Abu Dhabi Commercial ment model and processes. Bank (ADCB) co-branded card, at the 2015 Freddie Awards held in Atlanta, GA, United States, on 30 April. Etihad Airways honoured for Emiratisation program: Etihad Airways celebrat- ed a double win at the MENA HR Excellence Awards 2015, after being hon- Etihad Cargo receives Cargo Airline of the Year award: Etihad Cargo has been oured in the ‘Nationalisation Initiative of the Year’ and ‘HR Professional of the recognised as ‘Cargo Airline of the Year’ by Air Cargo Week, at a gala dinner Year’ categories. awards ceremony in Munich. The MENA HR Excellence Awards, now in their seventh year, celebrate excel- Held alternately at Air Cargo Europe in Munich or Air Cargo China in Shanghai, lence in human resource management and development within the Middle the ‘Air Cargo Week Awards’ are presented in nine categories ranging from East and North Africa. ‘Airfreight Forwarder of the Year’ to ‘Cargo Airline of the Year’. Etihad Airways received the ‘Nationalisation Initiative of the Year’ award for Voted for by the industry, the awards were presented during 2015’s Air Cargo pioneering one of the UAE’s most successful nationalisation strategies, with a Europe, an exhibition organised by Air Cargo Week’s owner - Azura Interna- focus on offering dynamic career and development opportunities to Emiratis tional – and the conference venue operator - MesseMuenchen. The maga- in the UAE and other markets worldwide. zine’s ‘World Air Cargo Awards’ took place at a Gala Dinner, at the Bayerischer Etihad Airways currently employs more than 2,300 UAE nationals across its Hof Hotel, on the evening of 6 May 2015, where the Etihad Cargo team were global business. Emiratis remain the number one nationality group amongst presented with their latest award. total employees based in the UAE, and amongst employees at manager level, executive level and within Etihad Airways’ pilot community. Under plans to ac- flydubai named ‘Best Regional Airline serving the Middle East’ at the 2015 celerate its employment of UAE nationals over the next five years, Etihad -Air Business Traveller Middle East Awards: flydubai was named ‘Best Regional ways is expected to recruit more than 6,000 UAE nationals by 2020. Airline serving the Middle East’ at the 2015 Business Traveller Middle East Awards held in Dubai on 3 May. Voted by readers of the magazine, the distinc-

Daily news on www.aaco.org Issue 99 - June 2015 25 Aviation in the Arab World

tion reflects how flydubai’s expanding network, evolving business model, new streamlining their online services that contribute to the competitiveness of fleet and commitment to serving underserved markets has been acknowl- the variety of e-services found in the Middle East. edged by passengers in just five years. Rohan Seneviratne, Qatar Airways Country Manager UAE, received the award on behalf of the airline at the ceremony which attracted more than 500 digni- Air Arabia wins ‘Best Low-Cost Carrier’ award at World Tourism Forum taries and participants from the 21st GCC e-Government and e-Services Con- Awards in Istanbul: Air Arabia has been named “Best Low-Cost Carrier” at the ference, in addition to media from across the region. World Tourism Forum Awards in Istanbul, Turkey. The World Tourism Forum is Experts, specialists and the jury nominated Qatar Airways for the award in an annual gathering of leading business figures and industry experts to discuss acknowledgement of the airline’s efforts to develop e-services, including its the future direction of the global tourism sector. Among the topics discussed organisational shift to smart government and its implementation of best prac- were online tourism, destination marketing and the economic benefits of -tour tices in modern administration and international competitiveness. ism. Air Arabia took home the award for “Best Low-Cost Carrier” based on its per- Qatar Airways wins major accolade at The Onboard Hospitality Awards in formance over 2014, which has included the opening of two new international Hamburg: Qatar Airways emerged victorious at a recently held award night hubs in Ras Al Khaimah, UAE, and Amman, Jordan, and increasing its global in Hamburg for offering excellence in delivering a premium five-star on-board network to 104 destinations. product to its passengers. The Onboard Hospitality Awards awarded the five-star airline’s Missoni sleep- Gulf Air’s Director Information Technology honored at Data Centre Conver- er suits as the best in‘Textiles’ category, chosen through an online vote and gence Middle-East forum and ceremony: Dr. Jassim Haji, Director of Informa- judged by an independent panel of industry experts against set criteria. tion Technology at Gulf Air, was honored during Data Centre Convergence Middle-East forum and ceremony held in Dubai. He was recognized for his Qatar Airways picks up awards from two key airports for Best On-Time Per- unique contribution and innovation in the Data-Centre Technology of Middle- formance: Qatar Airways has picked up two awards from two major global East by Mr. George Rocket- CEO & Co-Founder of DataCentreDynamics UK and airports for its best On-Time Performance (OTP) during the year 2014. other executives. Dubai Airports which owns and manages Dubai International Airport (DXB), awarded Qatar Airways a Gold award for its 84.3% on-time performance aver- Qatar Airways wins Airline with the Best Business Class at the Annual Busi- age in the “over 2,000 movements” category. ness Traveller Middle East Awards: Qatar Airways has been named the Airline Qatar Airways has also been awarded for its on-time performance in Seoul, with the Best Business Class at the Business Traveller Middle East Awards 2015 South Korea, by Incheon International Airport Corporation (IIAC) which -re based on the votes of readers of the Middle East edition of the prominent in- cently held the‘Incheon Airport 2014 Airline Awards’. The IIAC selected airlines dustry magazine Business Traveller. based on their on-time percentage, check-in waiting time, baggage handling, The coveted award was presented at a glittering awards ceremony at the passenger survey for services, level of contribution to the airport’s growth, Conrad Hotel in Dubai, UAE, putting the spotlight on Qatar Airways’ five-star and passenger percentage. service ahead of the Arabian Travel Market, where Qatar Airways has a major Qatar Airways competed with nearly 20 other carriers and won the Best Air- presence. line of the Year Award in the group of over 200,000 passengers carried in Mr. Rohan Seneviratne, Qatar Airways Country Manager UAE, collected the 2014. award on behalf of the airline, adding to the international recognition Qatar Airways has gained with a growing list of awards. Voting by readers of Business Oman Air wins big at World Travel Awards for second consecutive year: Traveller Middle East was based on the strength of Qatar Airways’ renowned Oman Air again came on top in the‘Middle East’s Leading Airline - Business five-star service. Class’ and‘Middle East’s Leading Airline - Economy Class’ categories at a cer- emony held in Dubai on 5 May. Qatar Airways debuts its mobile smart tourism e-services’ title across the Source: Muscat Daily Middle East: Qatar Airways has won the Middle East Smart Government & Smart Services Excellence Award for its Smart Tourism E-Services, at a cere- Annual Freddie Awards honors Saudia’s Alfursan loyalty program: Saudia’s mony held by the Middle East Excellence Awards Institute on May 20, 2015, at loyalty program for the airline’s frequent fliers, Alfursan, scooped the Up and the Ritz-Carlton, Dubai International Financial Center. Coming Program of the Year award at the 2015 Annual Freddie Awards. The institute of Middle East Excellence Awards recognises the significance of honouring excellent organisations and companies for their achievements in

Daily news on www.aaco.org Issue 99 - June 2015 27 Aviation in the Arab World

flynas named Middle East’s leading low-cost airline at World Travel Awards™ more effectively by controlling how their products are visually presented and 2015: flynas has been named as the “Middle East’s Leading Low-Cost Airline” described to travel agents. at the prestigious World Travel Awards™ 2015. This is the first time flynas has Source: Travelport emerged victorious at these Awards which are billed as the Oscars of the trav- el industry. Etihad Airways chooses SITA for comprehensive bag tracking: Etihad Airways has chosen SITA for end-to-end baggage tracking services. Powered by SITA’s TECHNOLOGY & E-COMMERCE Air Transport Industry Cloud, SITA‘s new BagJourney service gives the airline a cost-effective and accurate way to track passengers’ bags anywhere along Emirates debuts its mobile application for Android: On the heels of the suc- their journey, from check-in to the destination airport. cessful launch of its Apple Watch app, Emirates announced the debut of the BagJourney uses baggage data that passes through SITA’s global, fully-man- Emirates App for Android. aged baggage message and distribution service, BagMessage, and provides it With more than one hundred thousand monthly users of its iPhone, iPad and to Etihad Airways via a web application programming interface. This informa- Apple Watch apps, Emirates is ramping up its efforts to enhance its passen- tion can then be shared as needed with Etihad Airways’ crew and airport staff. gers’ travel experience through mobile technologies. In the future, the airline could also extend this service to guests so they can Developed in-house, the Emirates App for Android is a true personal journey follow their own bags via a smartphone app. BagJourney is also integrated planner, enabling users to: with SITA’s global bag tracing and matching solution, WorldTracer®. • Book flights and review travel itineraries Source: SITA • Manage every aspect of a booking, from seat selection to on-board menu and what’s on ice Gulf Air enhances IT security solutions with HP: Gulf Air has engaged with • Download their boarding pass directly to Google Now or send it to a phone Hewlett-Packard (HP) to evaluate the airline’s existing information security via SMS or email solutions and, as a result, has most recently implemented HP latest genera- • Receive quick updates on flight boarding and gate changes tion of Intrusion Prevention System (IPS) to bolster its Information Technology • Get notifications about our Chauffeur-drive service security and network data protection. • Verify the status of a flight and sign up for alerts to know when it has de- It is noteworthy to mention that Gulf Air holds the global ISO certification for parted or arrived its information security management system and was certified with Informa- • Manage all the details of their Skywards account such as favourite destina- tion Technology ISO certifications in the three areas of Quality Management, tions, aisle or window seats, and preferred newspaper Service Management and Information Security Management Systems. Gulf Air’s most recent IT achievements also include being the first organization in Air Go Egypt and Travelport sign a new global full content agreement: Air Go Bahrain to introduce Private Cloud Computing in its IT operations, further en- Egypt and Travelport announced a new multi-year, global full content agree- hancing customer service for the airline’s passengers. ment. As part of the new agreement, Air Go Egypt will now offer 67,000 Trav- elport-connected agencies worldwide access to its fares and inventory, includ- Nile Air and Travelport announce new global full content agreement: Nile Air ing web fares and ancillary offerings. and Travelport have announced the signing of a multi-year, global full content Air Go Egypt has committed to participate in Travelport Rich Content and agreement. This new agreement is set to enable the 67,000 Travelport-con- Branding which enables airlines to market and retail their offering more effec- nected agencies worldwide to access fares and inventory, including web fares, tively by controlling how their products are visually presented and described and ancillaries for Nile Air. to travel agents. Additionally, Nile Air has committed to Travelport Rich Content and Branding, Source: Travelport which aims to allow airlines to market and retail their products more effec- tively by controlling how their product is visually presented and described to Etihad Airways and Travelport renew full content agreement: Etihad Airways travel agents. and Travelport jointly announced the extension of their multi-year, full content Source: TTG MENA Online agreement. This agreement is set to enable Travelport-connected agencies worldwide to search, compare and book Etihad Airways fares and offering via New APP offers instant one-touch access to Oman Air’s services: Oman Air Travelport’s Travel Commerce Platform. has launched a new APP for smart phones, iPads, tablets and other mobile de- Additionally, Etihad Airways has also signed up to participate in Travelport Rich vices. It enables customers to book flights, purchase tickets, check in, update Content and Brandingwhich enables airlines to market and retail their offering

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their flight status, find out about Oman Air’s latest offers and access up-to-the- • Unruly Behaviour - Prevention & Management minute service information. • Human Factors The APP is much faster than the mobile web and connects quickly to Oman • Hijacking Air’s site. Furthermore, the APP makes it easier than ever to book flights with • Airport Security Oman Air using credit or debit cards. The APP is enabled with a 3D Secure en- • Fraud Prevention & Investigation hanced security feature and processes online card transactions whilst protect- Furthermore, to honour and recognise outstanding individual and organisa- ing all confidential information. The booking and purchase of tickets is com- tional achievements across the industry, Emirates Group Security will host for pleted in just a couple of clicks or taps on customized screens. the first time the International Awards of Excellence in Aviation Security. To register for the event, please click here. SAFETY & SECURITY TRAINING Morocco and UAE sign a cooperation agreement on civil aviation safety -is sues: The Directorate General of Civil Aviation in Morocco and the UAE Gen- Emirates Aviation University and Airways NZ launch ATC training: Emirates eral Civil Aviation Authority signed a cooperation agreement on civil aviation Aviation University and Airways New Zealand and have officially opened their issues. purpose-built air traffic control training facility in Dubai, one of the world’s The agreement aims at enhancing cooperation and the exchange of expertise largest air transport hubs. between the Kingdom of Morocco and the United Arab Emirates in the field of Vice Chancellor of Emirates Aviation University, Dr Ahmad al Ali, says the pro- civil aviation safety; mainly by implementing mechanisms - in accordance with gramme fills a critical gap in the Middle East region for the training of air traffic Annex 13 of Chicago Convention - that prevent aircraft accidents and help in controllers. conducting investigations in such possible cases. Ms. Sharon Cooke, Airways’ head of training, says the organisation will provide a full suite of ATC ab-initio, air traffic services operations and air traffic man- Emirates Group Security to host AVSEC Symposium & Awards 2015: Emirates agement training programmes at the university. Airways has installed a Total Group Security will host the 2nd biennial AVSEC Symposium & Awards, which Control simulator at the facility, providing students with a highly realistic tower will be held at the Jumeirah Creekside Hotel, Dubai on 4-6 October 2015. experience via three-dimensional high definition graphics. The event will bring together aviation security professionals from around the Airways’ partnership with EAU is helping to fuel growth of the region’s fast world to examine some of the key issues facing the airline industry on the moving aviation sector. In 2013 the aviation sector made an estimated USD ground and in the air and to provide a forum to network and to share ideas. 16.5 billion value-added contribution to Dubai’s economy, equivalent to 16.5% Concurrent to the main event there will be an exhibition by industry service of Dubai’s economy-wide GDP. Beyond 2020, the sector’s contribution is esti- providers and suppliers where the latest innovation & technology will be mated at USD 48.6 billion, or 24.7% of Dubai’s GDP. showcased. Airways has worked in the Middle East region for more than 10 years, primar- Select delegates will also have an opportunity to attend the following planned ily delivering ATC ab-initio training and recruitment solutions within the United sessions: Arab Emirates. The organisation has also worked with the General Authority of • A live hijack exercise will be facilitated using Emirates emergency evacua- Civil Aviation (GACA) in Saudi Arabia, training 60 air traffic control students at tion simulator with the participation of the Armed Forces* its training campuses in New Zealand over the course of two years. • Simultaneously, a restraint workshop will be run by Emirates in-house qual- The training will be provided at EAU in accordance with ICAO Standards and ified self-defence team* Recommended Practices, which means graduates are well prepared to achieve *seats to these exercises will be limited and allocated to those who register ratings at airports and radar centres around the world. early. Source: Arabian Aerospace Moreover, civil aviation regulators, authorities and senior industry figures will present their papers and offer their views on new and emerging challenges, including: • Emerging Threats • Latest Technology • Training & Education • Illegal Immigration / Human Trafficking • Cargo

Daily news on www.aaco.org Issue 99 - June 2015 31 Aviation in the Arab World ARAB AIRPORTS according to data from federal regulator, the General Civil Aviation Authority (GCAA). Top 20 Airports by International Seats Offered on Operations To, From, and Dubai International saw a 14% rise in passenger numbers to 27.5 million. Within the Arab World - April 2015 Passenger numbers at Abu Dhabi International rose 27%, above the five-air- Top 20 Airports by Int’l Seats Offered on Operations To, From, and Within port average, to 7.4 million passengers with an average monthly increase of the Arab world 392,577 passengers. Dubai World Central, Dubai’s airport in the emirate’s south, handled 158,216 Airport Number of Seats Airport Number of Seats passengers in the first four months of 2015, 80% more than the 84,125 pas- DXB 8,666,913 SHJ 850,199 sengers in 2014. DOH 3,417,808 CMN 845,031 Al Ain International, in Abu Dhabi’s east along the Omani border, has seen a AUH 2,195,181 AMM 754,184 sharp increase in the number of passengers in 2015 of 90% to 10,313 passen- gers over the January to April period. JED 1,908,993 LHR 745,244 In Sharjah, 2.6 million passenger passed through Sharjah International from CAI 1,507,511 BEY 720,198 January to April — 23% more than the same period in 2014. KWI 1,315,242 CDG 585,521 Ras Al Khaimah handled 109,411 passengers compared to just 139 in 2014. RUH 1,103,989 BOM 547,974 RAK Airways, ceased operations on 1 January 2014. Air Arabia, which is also based at Sharjah, launched hub operations from RAK in May 2014. MCT 1,092,850 TUN 532,040 Source: Gulf News BAH 1,052,927 DMM 523,163 IST 863,383 ALG 516,439 Passenger terminal at Al Maktoum International Airport to be expanded to Source: AACO, SRS Analyzer accommodate 26 million passengers by 2017: Dubai Airports confirmed that construction is expected to begin later in 2015 on the expansion of Al Mak- Hamad International Airport reports 7.3 million passengers in first quarter toum International at Dubai World Central’s (DWC’s) existing passenger termi- of 2015: Hamad International Airport (HIA) has served 7.3 million passengers nal which will boost the current capacity of 6 million passengers a year to 26 during the first quarter of 2015, representing a 17% increase from the num- million. ber of passengers who travelled through the previous hub, Doha International As Dubai International nears its capacity limit due to the rapid growth of pas- Airport, during the same period in 2014. senger traffic, DWC will play an increasingly important role in absorbing addi- In detail, HIA saw 7,360,308 passengers pass through its gates during the first tional traffic. The project is a precursor to the USD 32 billionexpansion project quarter of 2015, with 2,589,403 passengers departing, arriving and transiting announced inSeptember 2014 to create the world’s biggest airport with an in January; 2,285,221 in February; and 2,485,684 passenger movements in ultimate capacity in excess of 200 million passengers per year. March. The same period in2014 saw 6,294,910 passengers travelling through As part of the existing passenger terminal expansion the check-in area, bag- the Doha International Airport, including 2,191,148 passengers in January; gage and immigration halls, as well as security screening areas, will be sub- 1,973,823 in February; and 2,129,639 in March. stantially expanded while the forecourt will be improved to ensure easier ac- Cargo tonnage totaled 249,769 tons in the first quarter of 2015, representing a cess to the parking and drop-off areas. Once complete the passenger terminal 9% increase, compared to 228,831 tons of cargo transported in the same time- will provide a total of 24 boarding gates, 7 baggage reclaim carousels and an frame in 2014. increase to 104 check-in desks. Construction is currently expected to be com- HIA has also seen an increase in aircraft movements with 49,208 movements pleted by the end of Q1 2017 with the expanded facility opening shortly after- during the first quarter of 2015, a 14% increase in aircraft take-off and landing wards following the successful completion of a thorough testing and trial pro- at the airport, compared to 43,155 movements during same period in 2014. gramme. Source: Hamad International Airport Source: Dubai Airports UAE passenger numbers up 17.3% in first four months: The UAE’s main air- Passenger traffic at Dubai International Airport climbs 7.2% in March ports handled 17.3% more passengers in the first four months of 2015 com- 2015: Passenger traffic at Dubai International Airport in March 2015 totaled pared to 2014. 6,736,932 compared to the 6,285,868 passengers recorded in March 2014, A total of 37.84 million passengers arrived, transferred and departed at air- up 7.2% from 2014. This increased traffic in the first three months of 2015 to ports in the country from January to April compared to 32.24 million in 2014, 19,606,327, up 6.8% from the 18,361,820 achieved in the first quarter of 2014.

Daily news on www.aaco.org Issue 99 - June 2015 33 Aviation in the Arab World

Aircraft movements totaled 34,615 in March 2015, up 5.4% from the 32,849 movements in March 2014. In the first three months of 2015 aircraft move- ments totaled 100,214, up 5.8% from the 94,694 movements in the first quar- ter of 2014. Source: Dubai Airports Sharjah International Airport passenger numbers up 7% in April 2015: Shar- jah International Airport posted a 7% increase in passenger numbers for the month of April. A total of 814,648 passengers used the airport in April com- pared to the 761,313 in April 2014. Sharjah International handled 5,823 aircraft take-offs and landings in April 2015, a 4.47% increase compared to the 5,574 movements a year ago, accord- ing to the airport. The airport handled “more than” 16,000 tons of cargo. Sea- air cargo was around 1,761 tons. Source: Gulf News

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Daily news on www.aaco.org Issue 99 - June 2015 35 GLOBAL ARAB AVIATION Global Arab Aviation

Monthly Passenger Numbers' Change To and From the Arab World SPREADING OUT May14 to Apr15* compared to same month in previous year PASSENGER TRAFFIC Passenger numbers on routes to and from the Arab world are estimated to 12% have grown by 3.2% in April 2015 compared to April 2014, maintaining its 10% growth level in March 2015 over March 2014. 8%

Traffic to and from the Arab world Apr 15* over Apr 14 6%

With the Americas (1.4%) 4% With Europe 2.8% 2% With Mid Asia 7.8% With Far East and Australasia (5.2%) 0% With Sub Saharan Africa 0% Source: AACO, IATA *Estimated

Effectof Ramadan Passenger Numbers' Change To and From the Arab World Jan15-Mar15 & Feb15-Apr15* compared to same period in previous year YoY Growth 12-Month Average Growth 14% Source: AACO, IATA *Estimated 12% ROUTES Weekly 10% Airline From To Date Freq. Aircraft type

8% EK Dubai Bologna 3 Nov. 15 7x B777-300ER

6% EK SkyCargo Dubai Columbus 27 May 15 1x B777F Sydney 31 May 15 no change A380 / B777 4% Brisbane 1 Jun. 15 7x B787-9 2% EY Abu Dhabi Bangkok 1 Jul. 15 21 to 28 B777-300ER 0% With the Singapore 1 Aug. 15 no change B787-9 Americas With Europe With Mid Asia Jan15-Mar15 With FZ Dubai Quetta 11 Jun. 15 3x B737-800 AustralAsia With Sub- Feb15-Apr15* Saharan Africa Multan 1 May 15 4x Source: AACO, IATA *Estimated G9 Sharjah Quetta 17 Jun. 15 A320 Passenger numbers to and from the Arab world market reported a 5.8% 3x growth between January 15 & March 15 compared to the same period in pre- Faisalabad 25 Oct. 15 vious year. KU Kuwait Rome/Paris 21 May 15 no change A330-200

Passenger numbers to and from the Arab world market reported a 3.9% in- QR Doha Singapore 1 Jun. 15 14x to 21x A350 XWB / crease between February 15 & April 15* compared to the same period in pre- B7787 vious year.

Daily news on www.aaco.org Issue 99 - June 2015 39 Global Arab Aviation

Weekly flights will be upgraded to a Boeing 777-300ER aircraft. Airline From To Date Freq. Aircraft type The new daily A380 service, together with an upgrade to a B777-300ER from Amsterdam 16 Jun. 15 6x B787 the current A340-600 for the airline’s other four weekly flights, will increase the total number of two-way seats on the route by 30% to 9,568 seats per Atlanta 1 Jul. 15 7x B777 week. B787 / A350 Munich 1 Oct. 15 no change XWB Etihad Airways launches daily non-stop B787 Dreamliner flights between Brisbane and Abu Dhabi: Etihad Airways has launched on 1 June daily non- QR Doha Los Angeles 1 Jan. 16 7x B777 stop flights between Brisbane and Abu Dhabi. Philadelphia 1 Jan. 16 no change The new non-stop flights are operated by Etihad Airways’ three-class Boeing 787-9 Dreamliner which features next generation First Suite, Business Studio New York 1 Mar. 16 7x to 14x A350 XWB and Economy Smart Seat. The Dreamliner flights offer First Class on the Brisbane – Abu Dhabi route for Boston 16 Mar. 16 7x the first time ever and will replace the daily one-stop services which the airline previously operated via Singapore with a two-class Airbus A330-200 aircraft. SF Algiers Lyon Jul. 15 2x B737-800 Etihad Airways’ new Boeing 787-9 Dreamliner will carry 235 guests – eight in First Class, 28 in Business Class and 199 in Economy Class. WY Muscat Kuala Lumpur 21 Jun. 15 7x N/A Etihad Airways adds fourth daily Bangkok service: Etihad Airways will add a fourth daily service between Abu Dhabi and Bangkok from 1 July 2015. Operated by a B777-300ER aircraft, the new service will increase the number Emirates announces Bologna as its fourth Italian Gateway: Emirates has an- of roundtrip flights which Etihad Airways operates between the two cities to nounced plans to start a daily service to Bologna, Italy, from 3 November 28 per week, and add approximately 5,000 weekly seats to the route. 2015. Bologna will be Emirates’ fourth Italian destination bringing Emirates’ weekly flights to Italy to 56. Etihad Airways new B787 Dreamliner announced for Singapore: Etihad Air- Set to be operated by a Boeing 777-300ER in a three class configuration, Emir- ways announced a significant enhancement to its Abu Dhabi-Singapore route ates will offer the only long-haul wide-bodied service to and from Bologna. with the deployment of a Boeing 787-9 Dreamliner from 1 August 2015. Boeing 777-300ER is equipped with eight private suites in First Class, 42 lie-flat The new B787 operation followed a major upgrade for the route on 1 June, seats in Business Class, and 310 seats in Economy Class. which includes the introduction of First Class and a change in schedule timings With the new daily flight to Bologna, Emirates SkyCargo will offer up to 23 tons which provides better connections to the airline’s network via its Abu Dhabi of cargo capacity per day. hub. Etihad Airways’ new B787 interiors feature eight First Suites, 28 Business Stu- Emirates SkyCargo launches weekly freighter service to Columbus: Emirates dios and 199 Economy Smart Seats. SkyCargo has announced that Columbus has joined its global freighter network Etihad Airways commenced three weekly flights to Singapore on 28 Septem- with the launch of a weekly service to Rickenbacker International Airport from ber 2007 and went daily on 1 February 2013. 27 May 2015. The new freighter service to America’s 15th largest city will become Emirates flydubai announces fourth destination in Pakistan: flydubai announced di- SkyCargo’s 48th destination in its worldwide freighter network and sixth in the rect flights to Quetta in Pakistan. Flights to flydubai’s fourth destination in the US. country will commence on 11 June 2015 with three flights a week. The flight will be operated by an Emirates SkyCargo Boeing 777 Freighter, which has the capacity to carry just over 100 tons of cargo. Air Arabia celebrates inaugural Multan flight: Air Arabia has celebrated its inaugural flight to Multan, Pakistan’s fifth largest city. The flight took off from Etihad Airways commences A380 services to Sydney: Etihad Airways inaugu- Sharjah International Airport on 1 May. ral A380 service arrived to Sydney on 31 May 2015. The A380 will operate one of Etihad Airways’ two daily services between Air Arabia launches service to Quetta: Air Arabia announced that the city of Sydney and Abu Dhabi. The airline’s additional four weekly Airbus A340-600 Quetta will soon become its seventh destination in Pakistan. Quetta services will commence on 17 June 2015. Daily news on www.aaco.org Issue 99 - June 2015 41 Global Arab Aviation Qatar Airways’ A350s feature 283 seats – with 36 seats in Business Class in a Faisalabad joins Air Arabia’s route network in Pakistan: Air Arabia named 1-2-1 configuration, featuring 80” inch fully flat horizontal beds – and a 247 Faisalabad as the latest city to join its Pakistan route network. Faisalabad will seating capacity in Economy Class in a 3-3-3 layout. join Islamabad, Karachi, Lahore, Multan, Peshawar, Quetta and Sialkot as Paki- stani cities served by regular direct Air Arabia flights from the UAE. Qatar Airways set to expand its USA network with the addition of three new Faisalabad services will commence on 25 October 2015. routes: Qatar Airways announces the next phase of its USA route development with the introduction of three new passenger routes to Los Angeles, Boston Kuwait Airways debuted its A330 on Rome/Paris flights: Kuwait Airways de- and Atlanta. With these new destinations, Qatar Airways will offer daily non- ployed its first A330-200 into revenue service on 21 May 2015 on the Kuwait- stop services to all 10 of the largest metropolitan areas of the United States. Rome Fiumicino-Paris CDG-Kuwait route. Effective 1 January 2016, Qatar Airways will commence daily flights to Los The widebody twinjet is part of group of five Kuwait Airways will lease from Angeles, California with Boeing 777 aircraft, which features a two-class cabin Airbus Industrie alongside seven A320-200s. The twelve aircraft will help tide with 42 Business Class fully lie-flat seats in a 2-2-2 configuration. Kuwait Airways over while it awaits delivery of its new fleet of ten A350-900s, From 16 March 2016, Qatar Airways will launch daily flights to Boston, and will fifteen A320neos and ten B777-300(ER)s. operate its latest flagship A350 XWB in a two-class configuration with 36 Busi- ness Class seats in a 1-2-1 configuration, featuring an 80” fully flat bed and 17” Qatar Airways launches Asia’s first A350 XWB service to Singapore Changi HD in-flight entertainment screen. Airport: Qatar Airways became the first airline to operate the A350 XWB air- Atlanta, Georgia will be Qatar Airways’ third new route to the US and will com- craft to Singapore and the Asia Pacific region on 11 May 2015 with the inaugu- mence with daily flights starting on 1 July 2016. The route will be operated ral A350 XWB service arriving in Singapore Changi Airport. with Boeing 777 aircraft. The A350 XWB fits 283 passengers. The Business Class cabin has 36 seats in a Increasing passenger demand to New York has prompted Qatar Airways to add 1-2-1 configuration. The Economy Class features 247 18-inch wide seats in a a second daily service to the city from 1 March 2016. Qatar Airways has served 3-3-3 configuration. the city daily since the initial route launch in 2007. The second daily service Qatar Airways currently operates a double-daily service to Singapore with the to New York’s JFK will be operated by the Airbus A350 XWB aircraft providing Boeing 787 Dreamliner and the aircraft will be progressively replaced by the passengers an opportunity to experience both the Boeing B777 and the A350 next-generation A350 XWB. In addition, from 1 June, Qatar Airways added an aircraft types on the route. additional daily flight to Singapore. All three daily flights will be operated using the A350 XWB by mid-August. Qatar Airways announces first A350 XWB route to USA: Qatar Airways has announced that Philadelphia will be the first destination it will fly to in the USA Amsterdam welcomes Qatar Airways ahead of inaugural flight: Qatar Airways using the A350 XWB aircraft. Group Chief Executive, H.E. Mr. Akbar Al Baker, unveiled Qatar Airways’ vision Qatar Airways plans to begin operating an A350 on its daily service from Ha- for its latest new destination, Amsterdam, at a press conference on 26 May mad International Airport to Philadelphia International Airport from 1 January 2015 at the Intercontinental Amstel Hotel. 2016. The Amsterdam-Doha route will start on 16 June 2015 and will operate six Starting on 1 March 2016 and 16 March 2016, the A350 will fly on one daily times per week with a Boeing 787 Dreamliner. The new passenger services will flight to New York and also to Boston; meaning three of Qatar Airways’ US des- further complement Qatar Airways’ existing freighter services to Amsterdam, tinations will all be served by the A350. boosting capacity by 10%. Qatar Airways Cargo launched airfreight services to Qatar Airways’ A350s feature 36 seats in Business Class in a 1-2-1 configura- Schiphol Airport in 2003. tion, and a 247 seating capacity in Economy Class in a 3-3-3 layout. Qatar Airways to fly the Airbus A350 XWB on its double-daily service to Mu- Tassili Airlines launches flights to Lyon: Tassili Airlines will launch international nich: Qatar Airways has announced the expansion of its A350 services to Ger- flights between Algiers and Lyon as of July 2015. The new flights will be oper- many, with the new aircraft being deployed on its Doha-Munich route. ated twice a week using a B737-800 aircraft. Commencing 1 October 2015, Qatar Airways will be launching the A350 XWB Moreover, to improve its business and to provide customers with optimum to Munich alongside its existing Boeing 787 Dreamliner service on one of the services, Tassili Airlines is relying on Ingenico and Wirecard AG for fully inte- two double-daily flights to Munich. grated solutions comprising payment processing, risk management and bank- Beginning 1 November 2015, the second daily flight to Munich will also be op- ing services. erated with the A350 XWB.

Daily news on www.aaco.org Issue 99 - June 2015 43 Aviation in the Arab World

Oman Air launches non-stop services to Kuala Lumpur: Oman Air is to step up its operation from Muscat to Kuala Lumpur by offering daily non-stop flights to Kuala Lumpur from 21 June 2015. Oman Air currently offers flights between Muscat and Kuala Lumpur both as a Capacity* of Top 10 Carriers (Arab World & Australasia) sole operator and under codeshare partnerships with Malaysian Airlines and Airline ASKs (Million) Departures Seats Sri Lankan Airlines. Customers have the convenience of choosing from up to six flights per day, each of which makes either one or two stops before arriving EK 7,267.0 2,528 1,047,102 at its final destination. QR 3,466.7 1,747 515,824 From 21 June, however, customers will have the opportunity to fly non-stop EY 2,191.5 1,031 308,641 and direct flights. SV 1,077.6 403 142,559 QF 639.2 120 54,000 CX 433.8 224 69,664 CAPACITY AND DEMAND PR 416.5 190 57,380 Passenger Air Services to & from the Arab World - Apr 2015 - SRS Analyzer GA 405.8 172 51,368 AACO members increased the number of seats offered to and from the Arab world by 10.1%, while other airlines increased the number by 7.9% which 5J 375.4 118 51,448 resulted in a growth of 9.3% in the total number of offered seats to and from WY 321.0 242 60,315 the Arab world. Grand Total 19,013.5 8,091 2,738,275 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Percentage of the Total Available Seats To and From the Arab World With Europe 30% With Mid Asia 19.2% With Australasia 10% With the Americas 3% With Sub Saharan Africa 4.5% Capacity* of Top 10 Carriers (Arab World & Mid Asia) Source: AACO, SRS Analyzer Airline ASKs (Million) Departures Seats Capacity* of Top 10 Carriers (Arab World & Europe) EK 2,473.7 3,053 1,069,898 Airline ASKs (Million) Departures Seats QR 1,202.0 2,077 442,644 EK 7,828.0 3,786 1,577,868 SV 1,183.7 1,334 381,632 QR 3,100.0 2,785 691,442 9W 983.4 2,412 401,078 EY 1,895.7 1,534 382,530 G9 886.9 2,231 361,422 TK 1,158.7 2,860 563,926 FZ 785.2 1,794 339,066 AT 770.9 2,783 410,524 AI 681.0 1,193 238,933 BA 729.6 716 162,188 EY 677.9 1,603 265,254 SV 647.2 810 173,904 IX 628.3 1,312 236,160 LH 635.8 934 184,155 WY 495.8 1,456 223,648 MS 523.6 1,145 195,262 Grand Total 13,385.2 25,564 5,270,719 FR 462.8 1,414 267,246 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Grand Total 26,769.5 39,657 8,221,128 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer

Daily news on www.aaco.org Issue 99 - June 2015 45 Global Arab Aviation TOURISM Capacity* of Top 10 Carriers (Arab World & Sub Saharan Africa) Emirates expands marketing agreements with the tourism boards of South Airline ASKs (Million) Departures Seats Africa, Seychelles and Mauritius on the sidelines of the Arabian Travel Mar- ket 2015: Emirates renewed its individual global marketing agreements with EK 2,732.9 1,424 500,798 the Tourism Boards of South Africa, Seychelles and Mauritius. The three QR 481.4 570 104,696 agreements aim to utilize Emirates’ growing global network to further boost AT 423.4 936 139,067 inbound tourism to the Ocean Islands of Seychelles and Mauritius as well as MS 260.7 410 70,606 South Africa. Under the extended Memorandum of Agreements (MoAs), Emirates together ET 241.8 741 117,290 with the Seychelles, Mauritius and South Africa Tourism Boards will put into EY 146.7 205 36,833 effect a range of joint marketing activities focusing on promoting the three FZ 109.3 170 32,130 destinations in various regions. SV 100.9 124 33,786 The Agreements will see marketing activities such as attendance of tourism trade shows and fairs, trade familiarisation trips, product presentations and KQ 100.8 170 31,497 workshops, amongst others, be undertaken to achieve the parties’ objectives. SA 83.6 60 13,320 Grand Total 5,209.3 5,664 1,228,963 Royal Jordanian signs MoU with Jordan Hospitals Association to boost medi- * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer cal tourism: Royal Jordanian and the Jordan Hospitals Association (JHA) signed a memorandum of understanding at RJ’s headquarters, in order to build a strategic partnership between the two sides and coordinate with authorities involved in medical and therapeutic tourism. Under the framework of the MoU, said Misto, the airline will offer all pos- sible travel facilities to the patients and their companions to meet their travel needs, in collaboration with JHA and JTB. He added that national institutions Capacity* of Top 10 Carriers (Arab World & the Americas) should exert more efforts to invest in the sites providing medical care, which are spread around the kingdom, and promote them to the world as Jordan has Airline ASKs (Million) Departures Seats advanced medical and therapeutic capabilities and distinguished expertise in EK 4,138.6 806 346,014 the field. QR 1,728.6 488 148,736 EY 1,266.4 352 106,830 Egypt sets tourism target for 2020: The Egyptian Ministry of Tourism is draft- ing an ambitious plan to attract 20 million tourists by 2020 and to boost the SV 561.9 172 50,878 sector’s total revenues to USD 26 billion. 9W 548.3 120 45,360 Minister of Tourism H.E. Mr. Khaled Rami believes this goal can be achieved UA 280.4 93 25,296 through a new international advertising campaign that is set to begin in De- RJ 241.4 94 25,380 cember 2015. The campaign will focus on the diversity of tourism in Egypt, in particular Nile tourism, as well as desert outings, sports, therapeutic retreats MS 206.1 68 22,618 and religious tourism. DL 197.4 60 16,140 Source: Al-Monitor AT 172.7 116 28,880 Grand Total 9,467.8 2,427 831,442 UNWTO and ATM Ministerial Forum address intra-Arab tourism: Visa facilita- tion, open skies, the need to adapt to market needs and the role of events in * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer the promotion of intra-regional tourism in the MENA region were the focus of the debate at the 2015 UNWTO & ATM Ministerial Forum on Intra-Arab Tour- ism: Addressing the challenges and seizing the opportunities, which was held in Dubai on 5 May 2015.

Daily news on www.aaco.org Issue 99 - June 2015 47 Aviation in the Arab World

A joint UNWTO/ATM initiative, the Ministerial Forum was held under the pa- International tourism (travel and passenger transport) represents 30% of the tronage of H.H. Sheikh Nahyan Bin Mubarak Al Nahyan, Minister of Culture, world’s exports of services and 6% of overall exports of goods and services. As Youth and Social Development and Chairman of the National Council of Tour- a worldwide export category, tourism ranks fourth after fuels, chemicals and ism and Antiquities of the United Arab Emirates. food, ranking first in many developing countries. The Arab market can play a particular role in progressing tourism in the Middle International tourism receipts grew in all regions East as it tends to spend more, stay longer and be more resilient in times of Europe, which accounts for 41% of worldwide international tourism receipts, crisis due to its greater knowledge about the reality of the region. Participants saw an increase in tourism earnings in absolute terms of USD 17 billion to USD agreed that although tourism in MENA reveals a diverse picture with the Gulf 509 billion (Euro 383 billion). Asia and the Pacific (30% share) saw an increase Council Countries (GCC), North Africa and the Levant destinations presenting of USD 16 billion, reaching USD 377 billion (Euro 284 billion). In the Americas, different tourism development levels, there are important opportunities to (22% share), receipts increased by USD 10 billion to a total of USD 274 billion strengthen regional cooperation. (Euro 206 billion). In the Middle East, (4% share) tourism receipts increased by Areas of opportunities identified by participants include visa facilitation and an estimated USD 4 billion to USD 49 billion (Euro 37 billion) and in Africa (3% easier land border crossings through enhanced use of technology, growing share) by USD 1 billion to USD 36 billion (Euro 27 billion). youth and cruise markets, and the development of thematic routes. Further- By subregion, Northern Europe, Southern and Mediterranean Europe, North- more, participants highlighted the importance of a bigger focus on the domes- East Asia, Oceania, South Asia, Caribbean, Central America, South America and tic market and the opportunity to use upcoming mega events, namely sports the Middle East showed fastest growth in relative terms, all recording +5% or events, to change the international image of the region and implement new over in receipts. measures such as visa facilitation. Top earners: China and the United Kingdom move up in the top ten Alongside these opportunities, participants stressed that challenges remain, In the top ten ranking by tourism earnings, China climbed from 5th to 3rd including the lack of air lift and open skies policies making air travel within place following a 10% increase in earnings to USD 57 billion in 2014. The the region still comparatively expensive, talent management and the need to United States (USD 177 billion) and Spain (USD 65 billion) maintained first and promote job mobility, as well as the importance of knowing the Arab tourism second positions in the ranking. The United Kingdom (USD 45 billion) moved market better and adjust product development accordingly. up two positions to 7th, boosted by the lasting effects of the Olympics and Participants also agreed that there are important opportunities to work to- the appreciation of the UK pound (increasing receipts calculated in US dollar gether as a multi-destination to attract tourists from other regions of the terms). France, Macao (China) and Italy occupy the 4th to 6th positions re- world. spectively, while Germany, Thailand and Hong Kong (China) complete the top Globally, around 80% of the world’s 1.1 billion international tourists travel ten. within their own region. In contrast, only 42% of international tourist arriv- Top spenders: spending by advanced economies picks up als to the Middle East originate in other countries in the region, despite the In terms of outbound tourism, the world’s top spender China continued its extraordinary growth of international tourism in the Middle East over the last exceptional pace of growth with a 28% increase in expenditure in 2014, reach- two decades, and the increasing level of outbound travel from MENA to other ing a total of USD 165 billion. While the two other major emerging markets world regions. among the first 10, the Russian Federation ((6%), 5th largest) and Brazil (+2%, Source: UNWTO 10th largest) lost strength, various advanced economy source markets picked up in growth. The world’s second largest spender, the United States posted a Exports from international tourism rise to USD 1.5 trillion in 2014: Receipts 7% increase. The United Kingdom spent 4% more and moved from 5th to 4th from international visitors spending on accommodation, food and drink, enter- in the ranking. France increased expenditure by 11%, retaining the 6th posi- tainment, shopping and other services and goods reached an estimated USD tion, and Italy by 6%, climbing from 9th to 8th. Germany (3rd), Canada (7th) 1,245 billion (Euro 937 billion) in 2014, an increase of 3.7% in real terms (tak- and Australia (9th) take the remaining places of the top ten. ing into account exchange rate fluctuations and inflation). International- tour Please note that the above data is preliminary and subject to revision. ist arrivals increased by 4.4% in 2014, reaching a total 1,135 million, up from Source: UNWTO 1,087 million in 2013. Aside from international tourism receipts (the travel item of the Balance of Payment), tourism also generates export earnings through international pas- senger transport services (rendered to non-residents). The latter amounted to an estimated USD 221 billion in 2014, bringing total exports from international tourism up to USD 1.5 trillion, or USD 4 billion a day on average.

Daily news on www.aaco.org Issue 99 - June 2015 49 Global Arab Aviation

International Tourist Arrivals by (sub)region - selected countries & territories Key Figures for MENA and Other Regions Extracted From the Barometer: 2012 2013 2014* 13/12 14*/13 International Tourist Arrivals (World, North Africa & Middle East regions) Full Year Change Full Year Share Percentage Change (1,000) (%) 2010 2011 2012 2013 2014* 2014* 13/12 14*/13 2015* North Africa 18,534 19,639 19,753 6 0.6 (million) (%) YTD Algeria 2,634 2,733 - 3.7 - World 949 997 1,038 1,087 1,135 100 4.7 4.4 4.7 Morocco 9,375 10,046 10,282 7.2 2.4 North Africa 18.8 17.1 18.5 19.6 19.8 1.7 6 0.6 (8) Sudan 575 591 - 2.9 - Tunisia 5,950 6,269 6,069 5.3 (3.2) Middle East 54.7 52.8 49.8 48.2 50.4 4.4 (3.4) 4.6 2.6 Middle East 49,840 48,156 50,354 (3.4) 4.6 Source: World Tourism Organization (UNWTO) *estimated Bahrain 1,014 1,069 - 5.4 - Egypt 11,196 9,174 9,628 (18.1) 5 Iraq 1,111 892 - (19.7) - Jordan 4,162 3,945 3,990 (5.2) 1.1 Outlook of International Tourists 2014 Kuwait 300 307 - 2 - 2010 2011 2012 2013 2014* 2015* Lebanon 1,366 1,274 1,355 (6.7) 6.3 real change projection Oman 1,438 1,551 - 7.9 - full year Jan-Dec (issued Jan) Palestine 490 545 555 11.3 1.7 Qatar 2,346 2,611 2,826 11.3 8.2 World 6.5% 5.1% 4.2% 4.7% 4.4% 3% and 4% Saudi Arabia 14,276 13,380 15,098 (6.3) 12.8 Africa 8.9% (0.1%) 5.2% 4.8% 1.8% 3% and 5% Syria - - - - - UAE* 8,977 9,990 - 11.3 - Middle East 13.1% (3.5%) (5.6%) (3.4%) 4.6% 2% and 5% Yemen 874 990 - 13.3 - * Dubai Only Europe 3.1% 6.4% 3.9% 4.9% 3% 3% and 4% Source: World Tourism Organization (UNWTO) Asia and the Pacific 13.1% 6.5% 6.9% 6.8% 5.4% 4% and 5% Americas 6.2% 3.6% 4.5% 3.4% 8.1% 4% and 5% COLLABORATION Emirates Skywards and Heathrow announce new service: Emirates and Source: World Tourism Organization (UNWTO) *estimated Heathrow have announced the launch of a new strategic partnership that will bring increased earning and redemption options for members of their custom- er loyalty programmes, Emirates Skywards and Heathrow Rewards. This new partnership brings together two brands, creating great value and benefits for over 14 million combined members who will have the opportunity to convert their Miles into points and points into Miles. Emirates Skywards members can now convert their Skywards Miles to Heath- row Rewards points which can be spent on Instant Rewards at hundreds of stores throughout Heathrow including World Duty Free and Dixons Travel. Heathrow Rewards points can also be redeemed for airport shopping vouchers or used for exclusive discounts on pre-booked Official Heathrow Parking and

Daily news on www.aaco.org Issue 99 - June 2015 51 Global Arab Aviation

Heathrow Express train tickets. Royal Air Maroc will be operating three weekly flights with a Boeing 787 Similarly Heathrow Rewards members can also convert their points into Sky- Dreamliner to Doha complimenting Qatar Airways’ existing seven times weekly wards Miles and put them towards flights, upgrades and other rewards with to Casablanca, giving passengers the flexibility of using a combination of flights Emirates’ lifestyle partners. Both conversions are done in real-time so mem- from both airlines’ and aligned fares on their journey to and from Qatar and bers of the respective programmes are rewarded instantly. Morocco, significantly increasing their options. Qatar Airways and Royal Air Maroc will also be improving flight transfers for Etihad Airways boosts commitment to US tourism by announcing partner- passengers through enhancing and expanding the codeshare network beyond ship with Brand USA: Etihad Airways has teamed up with Brand USA, a desti- their respective hub cities of Doha and Casablanca. nation marketing organisation for the United States, highlighting its commit- ment to boosting tourism to the USA from points across its global network. Etihad Airways sponsored a Brand USA reception at the Armani Hotel in Dubai, ENVIRONMENT as part of the annual Arabian Travel Market (ATM) held in Dubai. CDM pipeline update: Status # of Projects Gulf Air and S7 Airlines enter into a Special Prorate Agreement: Gulf Air has CDM pipeline update 1 Jun. 2015 Withdrawn 63 entered into a Special Prorate Agreement (SPA) with S7 Airlines enabling Gulf Status # of Projects Air passengers to take flights beyond Moscow to and from any S7 Airlines do- Rejected by EB 271 At Validation 969 mestic destination. Validation Negative by According to the new SPA agreement Gulf Air’s fares for flights to and from Request for Registration 3 DOE 267 Moscow are now combined with special, more competitive fares for S7 flights Request for Review 2 Validation Terminated to and from the Russian cities of St Petersburg, Kazan, Samara, Volgograd, Ros- Correction Requested 0 2,007 tov, Nizhny Novgorod, Perm, Ufa, Sochi and Voronezh. With a combined fare by DOE that is more attractive than those purchased separately, this SPA agreement Under Review 0 Registered, no issu- ance of CERs 4,853 allows passengers to purchase only one ticket, at a more competitive fare, for Total in Registration 5 their entire journey instead of separate tickets for each individual carrier. Process Registered, CER issued 2,788 Travelers can now benefit from a special settlement for transfer passengers Source: UNEP RisØ Total Registered 7,641 arriving in Moscow and will be able to continue their trip within Russia with S7 flights while Russian passengers now have the opportunity to travel from Settlement Price of ECX EUA and CER Futures on 4 June 2015 across Russian regions to Bahrain and further to other destinations within Gulf Air’s broad route network which spans the Middle East, Indian Subcontinent Dec-15 Dec-16 Dec-17 Dec-18 and Asia, covering 43 cities in 24 countries. EUAs € 7.43 € 7.51 € 7.61 € 7.77 Gulf Air operates three weekly flights between Bahrain and Moscow with an CERs € 0.41 € 0.40 € 0.40 € 0.39 Airbus A320-ER that features 14 Falcon Gold flatbed seats and 96 economy Source: IntercontinentalExchange class seats. Chinese and Indian airlines come into compliance with EU ETS as Swiss case Qatar Airways and Royal Air Maroc announce the start of strategic joint busi- moves to EU’s highest court: Following a long dispute with the EU over their ness partnership: Qatar Airways and Royal Air Maroc have announced the enforced inclusion in the EU Emissions Trading Scheme (EU ETS), airlines from launch of a strategic joint business agreement on their services between the China and India have finally complied with legislation covering intra-EEA flights State of Qatar and the Kingdom of Morocco. Qatar Airways Group Chief Execu- that took place in 2012, as well as for 2013 and 2014. The airlines had previ- tive, H.E. Mr. Akbar Al Baker and Royal Air Maroc Chairman and CEO, Mr. Driss ously been ordered by their governments not to comply despite a change in Benhima signed the joined business agreement at the Arabian Travel Market the scheme that removed intercontinental flights from the original scope. Air in Dubai, in the presence of international press and travel trade partners. China, China Eastern and China Southern, along with India’s Jet Airways, have The joint business will benefit passengers by providing better links between now opened operator holding accounts and the EU registry shows reported Qatar and Morocco, greater choice of flights to more destinations and en- emissions and surrendered allowances for the three years. However, Air India hanced frequent flyer benefits. With this new agreement, passengers will be has still failed to comply, along with Aeroflot and Saudia, whose authorities able to purchase a single itinerary combining flights on both carriers’ global had also instructed non-compliance. Meanwhile, SWISS has been given per- networks, affording them the ease of one-stop ticketing and baggage check-in.

Daily news on www.aaco.org Issue 99 - June 2015 53 Global Arab Aviation

mission to pursue a discrimination and compensation claim in the EU’s highest alliance, to lower barriers to entry or expansion on three transatlantic routes. court over the inclusion in the EU ETS of its flights between Switzerland and The Commission had concerns that the cooperation between these airlines EEA countries during 2012. may harm competition for all passengers on the Amsterdam-New York and Since the scope was reduced to intra-EEA flights, the United States has Rome-New York routes and for premium passengers on the Paris-New York dropped its opposition to the scheme and most US airlines and cargo and busi- route, in breach of EU antitrust rules. After market testing commitments- of ness jet operators have been in compliance. However, airlines from India, Chi- fered by Air France/KLM, Alitalia and Delta, the Commission is satisfied that na and Russia have up till now failed to report emissions from flights on routes in their final form they address its concerns. It has therefore decided to make between European airports taking place in 2012 and surrender the required them legally binding on these airlines for a period of ten years. permits, even though mandated under the EU legislation to do so by 30 April To address these concerns, the companies have jointly offered a set of com- 2013. mitments aimed at enabling competing airlines to start operating or extend The European Commission reported on 18 May the level of compliance by air- existing operations on the routes in question, by lowering barriers to entry or craft operators for the 2013-2014 period was high, with 99% of aviation emis- expansion. In October 2014, the Commission consulted stakeholders on these sions covered under the EU ETS, including by more than 100 operators based commitments. In light of the results of the market test, the parties proposed outside the EU that operate flights within the EEA. It said verified CO2 emis- some modifications and clarifications to the initial commitments. sions from aviation activities carried out between airports located in the EEA Under the final commitments, the parties will: amounted to 54.9 million tonnes in 2014, up from 53.4 million tonnes in 2013, • make available landing and take-off slots at Amsterdam, Rome and/or New an increase of 2.8%. York airports on the Amsterdam-New York and Rome-New York routes; Source: GreenAir Online • enter into agreements which would enable competitors to offer tickets on the parties’ flights on the three routes (“fare combinability agreements”); REGULATORY TONE • enter into agreements which would facilitate access to the parties’ connect- ing traffic on the three routes (“special prorate agreements”); EU takes Germany to court over airport security controls: The European Com- • provide access to their frequent flyer programmes on all three routes; mission is taking Germany to the European Court of Justice for failing to ad- • allow passengers of competitors who have no equivalent frequent flyer equately monitor security measures at some German airports, the European programme to accrue and redeem miles on the parties’ frequent flyer pro- Union’s executive body said on Thursday. grammes; and “Inspections by the Commission have shown that Germany does not comply • submit data concerning their cooperation, which will facilitate an evalua- with the minimum frequency and the scope of controls required under EU leg- tion of the alliance’s impact on the markets over time. islation,” it said in a statement. The Commission found that the final commitments adequately address the The Commission said such controls were necessary to quickly detect and cor- competition concerns identified and has made them legally binding on Air rect potential failures in airport security measures and to make sure that air- France/KLM, Alitalia and Delta. ports and airlines met common EU standards. An independent trustee will monitor the parties’ compliance with these com- The Commission also said, however, that the move did “by no means” imply mitments. that German airport security was inadequate. “The Commission’s concerns re- Source: European Commission late to the way Germany exercises the controls required under EU legislation”, it said. FAA proposes civil penalties against US enterprises for alleged Hazardous A spokeswoman at the interior ministry in Berlin said the accusations were Materials Violations: The U.S. Department of Transportation’s Federal Avia- related to security measures at German airports in 2012. tion Administration (FAA) proposed a numerous US enterprises for allegedly “We have already changed procedures and we thought the issue was solved,” violating Hazardous Materials Regulations, as follows: the spokeswoman said, adding that the ministry had to look more closely at • USD 227,500 AmplaChem, Inc. of Carmel, Ind. the Commission’s complaints before it could comment any further. • USD 150,000 against Ameriflight LLC of Burbank, Calif. Source: Reuters • USD 81,669 against DGI Menard Inc. • USD 70,050 against the University of Wisconsin-Madison The European Commission accepts commitments by SkyTeam members Air • USD 58,600 against FedEx Corp. of Memphis, Tenn. France/KLM, Alitalia and Delta on three transatlantic routes: The European • USD 54,000 against Aqua-Chem, Inc. of Knoxville, Tenn. Commission has adopted a decision that renders legally binding commitments • USD 54,000 against Rust-Oleum Corp. of Vernon Hills, Ill. offered by Air France/KLM, Alitalia and Delta, members of the SkyTeam airline Source: FAA

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FAA proposes civil penalties against Air Methods Corp. and Allegiant Air, LLC: The FAA proposed a USD 91,500 civil penalty against Air Methods Corp. of Englewood, Colo., for allegedly operating a Bell 407 helicopter when it was not in compliance with Federal Aviation Regulations. Air Methods has been in communication with the FAA about the case. Moreover, the FAA proposed a USD 266,375 civil penalty against Allegiant Air, LLC of Las Vegas for allegedly violating drug and alcohol testing regulations. Allegiant is scheduled to meet with the FAA in mid-June to discuss the case. Source: FAA DOT fines Hawaiian for consumer protection violations: The US Department of Transportation (DOT) has fined Hawaiian Airlines USD 160,000 for violating the agency’s rules related to mishandled luggage and full-fare advertising, says the agency. The DOT says that on numerous occasions the Honolulu-based airline told pas- sengers that its financial liability for damages associated with delayed luggage was capped at USD 30 daily for three days, and on several occasions the car- rier actually limited its payments to that amount. Federal regulations that took effect on 6 June 2013, however, prohibit airlines from limiting such liability to less than USD 3,400. The agency also says Hawaiian violated full-fare advertising rules by offering a discount on fares that were not available. As for the luggage liability violation, the carrier says it has “updated our poli- cies and embarked on employee training to make sure our policies are consis- tently followed.” Source: Flightglobal

Daily news on www.aaco.org Issue 99 - June 2015 57 Global Arab Aviation AN AVIATION MARKET IN FOCUS: BELGIUM Alliances Share of Seat Capacity The Kingdom of Belgium Serving the Belgian Market • Population: 11.24 million 4% 2 5% • Land area: 30,528 km Unaligned • Number of passengers in 2014: more than 24.1 million passengers were handled by Belgian airports. Star Alliance • Number of commercial airports: 6 commercial airports 48% • Belgian-based airlines: Brussels Airlines, Jetairfly, Thomas Cook Airlines Belgium, TNT Airways and VLM Airlines Sky Team Aviation Policy: 43% ͳ The Belgian Civil Aviation Authority is responsible for the investigation of oneworld Aircraft Accidents and Incidents, Licensing, International and EU Affairs, Quality Services, Company Source: AACO, FlightMaps Analytics April 2015 Approvals, Airspace and Traffic Share between Belgium and Other Airports and Air Navigation Regions in 2014 2.5% 2.3% Europe (includes Services in Belgium. domestic traffic) 6.7% 1.1% ͳ Belgium enjoys an open Arab World Airline Seat Capacity market in the EEA; and 7.3% Brussels Airlines (SN) 939,948 benefits from comprehen- Americas sive agreements signed Ryanair (FR) 768,488 Top 10 airlines operating by seat ca- pacity to and from Belgium in April between the EU and third Australasia Jetairfly (TB) 222,265 countries such as Morocco Lufthansa (LH) 115,767 2015 and Jordan. Sub Sahrain Africa The top 10 airlines on the left offered easyJet (U2) 92,896 more than 2.48 million seats (72.9% Mid Asia Vueling Airlines (VY) 84,672 of the scheduled seat capacity) to and 80.2% Jet Airways (9W) 70,624 from Belgium in April 2015. Source: AACO, IATA SAS (SK) 65,322 Thomas Cook Bel- The Belgian aviation market links 240 cities worldwide(click on image for detailed view) gium (HQ) 64,720 Wizz Air (W6) 60,144 Route Seat Capacity* Source: AACO, FlightMaps Analytics Brussels - Rome 116,234 Brussels - Madrid 111,817 Top 10 routes by seat capacity to and Barcelona - Brussels 102,288 from Belgium in April 2015 Brussels - Milan 97,686 More than 0.85 million seats were Brussels - Lisbon 77,450 offered on the top 10 routes to and Brussels - London 75,606 from Belgium in April 2015, represent- ing a 25.15% of the total capacity Brussels - Frankfurt 72,037 offered to and from Belgium. Brussels - New York 69,516 Brussels - Geneva 67,750 Brussels - Istanbul 66,889 Source: AACO, FlightMaps Analytics Source: AACO, FlightMaps Analytics April 2015 * This includes seat capacity in both directions Daily news on www.aaco.org Issue 99 - June 2015 59 Global Arab Aviation

WORLD NEWS IATA Figures -- Healthy April Passenger Demand: The International Air Trans- port Association (IATA) announced global passenger traffic results for April UNECE and IATA strengthen cooperation for trade facilitation implementa- showing robust demand growth compared to April 2014. Total revenue pas- tion: The International Air Transport Association (IATA) and the United Nations senger kilometers (RPKs) rose 5.9%. April capacity (available seat kilometers Economic Commission for Europe (UNECE) signed a Memorandum of Under- or ASKs) increased by 6.1%, and load factor slipped 0.1 percentage points to standing (MoU) to strengthen their support to developing countries seeking to 79.4%. implement the World Trade Organization (WTO) Trade Facilitation Agreement. Domestic demand grew by 7.2%, outpacing international demand which grew The Agreement promises enormous potential for countries to reduce trans- by 5.2% compared to April 2014. port costs by up to 10% through more efficient facilitation, making them more “Demand for connectivity remains strong. That’s positive news. But the perfor- competitive in the global economy. Specifically for air cargo, countries imple- mance of the industry is multi-tiered. Middle East and Asia-Pacific based carri- menting the Agreement will need to build capacity to facilitate automated and ers led with growth well above the 5.9% average, while carriers in Europe and smart border solutions and secure supply chain processes. Through the MoU, the Americas were below it. And African airlines reported a contraction com- IATA and UNECE will help developing countries implement the relevant mea- pared to the previous year,” said Tony Tyler, IATA’s DG and CEO. sures to realize the costs savings. Specific areas of collaboration include: Apr 2015 vs. Apr 2014 RPK Growth ASK Growth PLF • Joint promotion of the use of international recommendations and stan- International 5.2% 5.9% 78.6 dards and best practices in Trade Facilitation and Electronic Business; • Joint outreach activities to support countries in their implementation of Domestic 7.2% 6.4% 80.8 such recommendation and standards - subject to available resources; Total Market 5.9% 6.1% 79.4 • Consultation and cooperation in these activities with other international institutions, including the World Customs Organization, World Trade Orga- YTD 2015 vs. YTD 2014 RPK Growth ASK Growth PLF nization, the International Monetary Fund, the World Bank, UNCTAD, ITC, International 6.4% 6.1% 78.2 OECD and the International Chamber of Commerce. Source: IATA Domestic 6.1% 5.4% 80.3 Total Market 6.3% 5.8% 79.0 A6 & EUROCONTROL collaborate on NewPENS: The A6 Alliance of Air Naviga- tion Service Providers (ANSPs) and EUROCONTROL are working together on defining a major piece of communications infrastructure required to underpin the European Commission’s Single European Sky initiative. The two organisa- International passenger markets tions are collaborating to define the provision of the New Pan-European -Net April international passenger demand rose 5.2% compared to April 2014. Air- work Services (NewPENS). lines in all regions except Africa recorded growth led by the Asia-Pacific and NewPENS is the pan-European ground-to-ground network infrastructure used Middle East. Capacity climbed 5.9% and load factor dipped 0.5 percentage for both voice and data communications between ANSPs; and the enabler points to 78.6%. for iSWIM, mandated by the Pilot Common Project (PCP) as ATM Function 5. • Asia-Pacific airlines’April traffic jumped 9.0% compared to the year-ago NewPENS will transport the data from the Network Manager and EUROCON- period. Capacity rose 6.0% and load factor surged 2.2 percentage points TROL Centralised Services to all ATM Stakeholders from EUROCONTROL Mem- to 78.3%. To date the sharp reversal in regional trade activity after strong ber States and other States within the ICAO EUR/NAT Region and its bordering gains in late 2014 has not had an adverse impact on business-related inter- States. national air travel. Better information sharing between all air traffic management (ATM) stake- • European carriers experienced a 3.7% demand increase in April versus holders is fundamental to improving the management of Europe’s airspace April 2014. Capacity rose 4.7% and load factor declined 0.8 percentage and meeting forecast traffic growth. NewPENS will provide a common, secure points to 80.7%, still the highest among the regions for the month. Al- IP-based network service across Europe, making it easier to share information though signs are that a positive response to the European Central Bank while at the same time reducing costs. stimulus has faltered owing to firming in the Euro and oil prices, economic Source: NATS stimulus is helping ease downward pressure on demand.North American airlines had just a 0.7% rise in traffic compared to April a year ago. US eco- nomic growth turned negative in the first quarter of 2015 while the stron-

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ger dollar is likely hampering inbound leisure travel. Capacity rose 4.1% and load factor fell 2.6 percentage points to 78.1%.. • Middle East carriers’ demand climbed 8.2% in April but this was exceeded by a 13.3% jump in capacity with the result that load factor dropped 3.6 percentage points to 77.2% Economies in the region are reasonably well positioned to withstand the plunge in oil revenues and regionally-based carriers continue to gain market-share. • Latin American airlines saw a 6.3% rise in traffic compared to April 2014. Capacity rose 7.3%, however, causing load factor to slip 0.7 percentage points to 77.7%. Regional trade volumes have been improving but Brazil’s economy remains a trouble spot. • African airlines’ endured another month of declining demand, as traf- fic dropped (1.1%) itraffic fell 3.2% in April year-to-year, while capacity dropped 5.0%, resulting in a 1.3 percentage point rise in load factor to 67.5%. Negative economic developments in parts of the continent, includ- ing Nigeria, which relies heavily on oil revenues, are likely contributing to the depressed results. Source: IATA

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Daily news on www.aaco.org Issue 99 - June 2015 63 OUR PARTNER AIRLINES Partner Airlines

Looking at the Spanish market traffic flows, the international European market represented in March 2015 67.9% of the total market, and is expected to have grown to 73.2% in April 2015. Traffic between the Arab world and Spain rep- LATEST NEWS resented 2.3% of the total Spanish market in March 2015, and is estimated to IAG releases May traffic statistics: The Group traffic in May, measured in Rev- have shrunk to 1.9% in April 2015. enue Passenger Kilometres, increased by 5.7% versus May 2014; Group capac- ity measured in Available Seat Kilometres rose by 4.8%. Passenger Numbers' Change in the Spanish Air Transport Market Group premium traffic for the month of May increased by 4.6% compared to Jan15-Mar15 & Feb15-Apr15* compared to same period in previous year the previous year. 20% Strategic Developments: 15% On 13 May, Iberia announced that it won 17 out of 21 tendered licenses to provide handling services at Spanish airports. The airline remains the main 10% handling operator in Spain and highlighted that this outcome has been 5% achieved due to the cost and productivity agreements reached with its em- ployees. 0% Domestic On 27 May, British Airways started daily flights to Kuala Lumpur on a four class -5% With Arab With With Boeing 777-200ER aircraft. The airline also announced two new routes from World With the Australasia Europe With Mid Heathrow for the winter season. From 25 October 2015, it will start flights to -10% Americas with Sub Asia Reykjavik while services to Salzburg will commence on 5 December 2015. Sahran Jan15-Mar15 Africa Feb15-Apr15*

SPAIN TRAFFIC Source: AACO, IATA *Estimated The Spanish air transport market expanded by 7.1% in March 2015 over March 2014 in terms of number of passengers traveling to, from & within Spain, and In March 2015, Ryanair was the biggest carrier operating to, from and within is estimated to have grown in April 2015 by 0.3% compared to April 2014. Spain by number of passengers, boarding 1.66 million pax, which represented an increase of 16.2% over March 2014 operations. Monthly Passenger Numbers' Change in the Spanish Air Transport Market May14 to Apr15* compared to same month in previous year Top 15 Airlines Operating in the Spanish Market Airline Mar-15 Change Airline Mar-15 Change 12% FR 1,663,974 16.2% NT 210,707 4.8% 10% IB 1,289,207 9.9% BA 191,421 32.8% 8% VY 904,169 9.5% AF 171,251 3.0%

6% U2 899,524 4.2% ZB 155,036 (14.3%) UX 584,554 23.3% KL 148,591 (2.2%) 4% AB 530,638 (4.9%) LX 137,213 3.6% 2% DY 360,204 18.3% X3 135,558 (13.4%) 0% LH 217,401 (9.5%) Grand Total 9,588,640 7.1% -2% Source: AACO, IATA

International Domestic Source: AACO, IATA *Estimated

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UK TRAFFIC Passenger Numbers' Change in the UK Air Transport Market The UK air transport market expanded by 9.2% in March 2015 over March Jan15-Mar15 & Feb15-Apr15* compared to same period in previous year 2014 in terms of number of passengers traveling to, from and within the UK, 14% and is expected to have shrunk by (0.7%) in April 2015 compared to April 2014. 12% 10% Monthly Passenger Numbers' Change in the UK Air Transport Market 8% May14 to Apr15* compared to same month in previous year 6%

15% 4%

10% 2% 0% 5% Domestic 0% With Australasia With the Jan15-Mar15 Americas with Sub Sahran -5% Feb15-Apr15* Africa

-10% Source: AACO, IATA *Estimated In March 2015, easyJet was the biggest carrier operating to, from and within the UK by number of passengers, boarding 3.05 million pax, which represent- ed an increase of 13% over March 2014 operations. International Domestic Source: AACO, IATA *Estimated Top 15 Airlines Operating in the UK Market Airline Mar-15 Change Airline Mar-15 Change Looking at the UK market traffic flows, the international European market U2 3,055,303 13.0% KL 309,207 (3.2%) represented in March 2015 63% of the total market, and is expected to have grown to 65.6% in April 2015. Traffic between the Arab world and the UK rep- BA 2,480,943 7.2% DY 296,787 43.9% resented 4% of the total UK market in March 2015, and is expected to have FR 2,381,978 25.1% ZB 284,022 (2.5%) grown to 4.1% in April 2015. BE 660,051 14.6% LH 263,768 (12.3%) VS 396,650 (0.8%) LS 192,298 (19.7%) EK 381,782 13.0% LX 157,163 1.4% EI 352,246 7.8% AF 154,299 (24.3%) W6 320,571 33.9% Grand Total 14,838,372 9.2% Source: AACO, IATA

Daily news on www.aaco.org Issue 99 - June 2015 69 Partner Airlines Jet Airways felicitated at the Changi Airline Awards 2015: Jet Airways has won top honours at the ‘Changi Airline Awards 2015’ in the ‘Absolute Growth in Passenger Carriage - South Asia’ category. LATEST NEWS Jet Airways records 60% improvement in operating performance in FY15: Jet Airways Group announced a 60% improvement in operating performance for the Financial Year 2014-15, just one year into its three-year turnaround plan. INDIA TRAFFIC The improvement in performance is largely attributable to the implementation The Indian air transport market grew by 12.7% in March 2015 over March of a single brand and full service strategy across the domestic operation. The 2014 in terms of number of passengers traveling to, from and within India, and year also saw the optimisation of the network to ensure better integration be- is estimated to have grown by 26.7% in April 2015 compared to April 2014. tween domestic and international operations, an increased focus on premium traffic and improved aircraft utilisation. Monthly Passenger Numbers' Change in the Indian Air Transport Market Cargo’s strong growth continued in FY15, particularly on the domestic network May14 to Apr15* comapred to same month in previous year which experienced an 11 percentage point increase in load factor. Jet Airways continues to focus on developing the booming e-commerce sector and en- 40% hancing its customer offering with the launch of Fast-Track, an airport-to-air- 35% port express product. 30% 25% Jet Airways and Air Seychelles unveil codeshare partnership: Jet Airways 20% and Air Seychelles unveiled a codeshare partnership that offers travellers en- 15% hanced connections on their respective networks. The agreement heralds 10% an era of closer cooperation between the two airlines which, in subsequent 5% months, will include reciprocal frequent flyer programmes, cargo handling, 0% and expansion of codeshare arrangements. -5% Jet Airways will place its “9W” code on Air Seychelles’ four per week flights between Mumbai and Mahé as well as the carrier’s flights to Abu Dhabi and Johannesburg. In turn, Air Seychelles will place its “HM” code on Jet Airways’ domestic services from Mumbai to Ahmedabad, Jaipur, Kochi, and Thiruvanan- International Domestic thapuram, and also on Jet Airways’ international services between Abu Dhabi and Mumbai. Source: AACO, IATA *Estimated Jet Airways launches ‘FAST-TRACK’ - a premium cargo offering on the airline’s domestic network: Jet Airways has launched a premium cargo product brand- ed FAST-TRACK(SM) that offers customers an express service on the airline’s domestic network to send urgent shipments within a defined timeframe. This new offering from Jet Airways Cargo will provide priority access to capac- ity, later bookings and guaranteed uplift with a money back guarantee in case of non-delivery of service. Jet Airways extends ‘Seat Select’ through travel agents: Jet Airways has ex- tended its seat selection product to the airlines’ travel agent partners. This enables guests the opportunity to pre-select their preferred seat, while book- ing through the travel agents. This will be valid on select international and domestic routes serviced by the airlines’ Boeing 737 aircraft to begin with, and will include the entire network shortly. Jet Airways awarded ‘International Cargo Airline of the Year’ at IGI Airport Awards 2015: Jet Airways has been adjudged the ‘International Cargo Airline of the Year’ at the GMR – IGI Airport Awards 2015 held in New Delhi.

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Looking at the Indian market traffic flows, the domestic market represented in March 2015 58.5% of the total market, and is estimated to have grown to 62.7% in April 2015. Traffic between the Arab world and India represented 16.8% of the total Indian market in March 2015, and is estimated to have shrunk to 16.1% in April 2015.

Passenger Numbers' Change in the Indian Air Transport Market Jan15-Mar15 & Feb15-Apr15* compared to same period in previous year 30%

25%

20%

15%

10%

5%

0%

Domestic With Arab World With Australasia With Europe Jan15-Mar15 With the Americas Within Mid Asia Int'l Feb15-Apr15* with Sub Sahran Africa

Source: AACO, IATA *Estimated In March 2015, Indigo Airlines was the biggest carrier operating to, from and within India by number of passengers, boarding 2.26 million pax, which repre- sented an increase of 39.4% over March 2014 operations. Top 15 Airlines Operating in the Indian Market Airline Mar-15 Change Airline Mar-15 Change 6E 2,266,156 39.4% EY 172,026 80.0% 9W 1,569,613 29.8% QR 144,006 (2.0%) AI 1,227,698 (0.9%) G9 135,504 5.1% SG 645,144 (32.2%) SQ 123,853 (2.8%) G8 566,231 32.0% SV 123,686 9.0% EK 458,148 13.0% WY 107,231 4.2% IX 226,292 3.9% TG 105,894 39.4% S2 206,619 (22.4%) Grand Total 9,597,858 12.7% Source: AACO, IATA

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Daily news on www.aaco.org Issue 99 - June 2015 73 Partner Airlines

Looking at the Turkish market traffic flows, the domestic market was the big- gest market. It accounted for 46.4% of March 2015 traffic, and is expected to have shrunk to 42.4% in April 2015. The European market (international traf- fic between Turkey and Europe) was the second biggest market, accounting LATEST NEWS for 33.9% of March 2015 traffic, and is expected to have expanded to 39.6% Turkish Airlines adds Bamako to its network: By adding its 110th country, Turk- in April 2015. On the other hand, traffic between the Arab world and Turkey ish Airlines continues to expand its African network. represented 8.9% of the total Turkish market in March 2015, and is expected Roundtrip flights between Istanbul and Bamako, the capital of Mali, are oper- to have shrunk to 7.8% in April 2015. ated 2 times per week via Ouagadougou. Turkish Cargo announces Dakar as its 10th destination in Africa: Turkish Cargo Passenger Numbers' Change in the Turkish Air Transport Market strengthened its presence in Africa with the launch of freighter services to Jan15-Mar15 & Feb15-Apr15* compared to same period in previous year Dakar. 14% The launch of weekly freighter services to Dakar began on 18 May 2015. 12% Turkish Airlines adds its 12th destination in the Americas by inaugurating flights to Miami: With existing services to Buenos Aires, Sao Paulo, Toronto, 10% Chicago, Houston, Los Angeles, New York, Washington, Boston, Montreal, and 8% San Francisco, Turkish Airlines added flights to Miami as its 12th destination in 6% the Americas. Beginning on 25 October 2015, Miami flights will be operated 7 4% times per week in both directions. Turkish Airlines takes delivery of 125th Boeing airplane: Boeing and Turkish 2% Airlines celebrated a milestone with the delivery of the airline’s 125th airplane 0% purchased from Boeing – a Next-Generation 737-900ER, one of 12 airplanes Domestic With Arab World With Australasia that Turkish Airlines will take delivery of in 2015. With Europe Int'l With the Americas Jan15-Mar15 With Mid Asia TURKEY TRAFFIC with Sub Sahran Africa The Turkish air transport market in March 2015 grew by 7.3% over March Feb15-Apr15* 2014 in terms of number of passengers traveling to, from and within Turkey, & Source: AACO, IATA *Estimated is estiamted to have grown in April 2015 by 5.5% compared to April 2014. In March 2015, Turkish Airlines was the biggest carrier operating to, from and Monthly Passenger Numbers' Change in the Turkish Air Transport Market within Turkey by number of passengers, boarding 2.89 million pax, which rep- May14 to Apr15* compared to same month in previous year resented an increase of 8.6% over March 2014 operations. 80% Top 15 Airlines Operating in the Turkish Market Airline Mar-15 Change Airline Mar-15 Change 60% TK 2,896,440 8.6% SV 40,392 41.0% 40% PC 1,134,165 11.7% EK 37,137 11.6%

20% XQ 315,311 9.4% DE 37,057 18.5% 8Q 215,762 17.6% J2 35,831 7.9% 0% KK 195,922 12.6% QR 28,233 48.6% AB 55,386 19.3% XY 27,705 (15.8%) LH 51,263 (18.2%) W5 26,685 (6.3%) SU 51,161 (3.0%) Grand Total 5,649,714 7.3% Source: AACO, IATA International Domestic Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 99 - June 2015 75 OUR INDUSTRY PARTNERS NEWS Our Partners News

After a thorough evaluation process by over 50 Airbus experts and innova- Airways Aviation partners with Sharaf Aviation:Airways Aviation, has tors judging more than 500 ideas, Airbusselected100 teams that have made announced a new partnership with Sharaf Aviation Services Academy it into Round Two of the fourth edition of the global student competition Fly (SASA). Under this new industry partnership agreement, Airways Aviation and SASA will cross-promote Your Ideas organised in partnership with UNESCO. their respective training courses building upon each company’s brand equity in the region, fostering the value and benefit of high calibre aviation training opportunities in the UAE. Airways Aviation provides In the ‘Best Video Team’ award competition which runs alongside the main ‘Airbus Fly Your Ideas 2015’ a full suite of pilot training, from foundation theory to Airline Transport Pilot Licence courses, across its challenge, the judging panel thoroughly assessed 85 videos submitted by the student teams and short- Pilot Training Academies and Aviation Foundation Schools around the world, including Dubai. SASA offers listed eight global teams who remain as the finalists vying for the award. a wide range of International Air Transport Association (IATA) accredited programmes in Travel, Avia- tion, Ramp and Cargo; with specialized courses in Airport Operations and Revenue Management, among Among the eight finalists is a team representing The German-Jordanian University in Jordan, named ‘The many others. Gunners’. Through their video, ‘The Gunners’ present their idea on how to improve inflight experience Figures support the assertion that the aviation industry is on the rise in the region: passenger traffic for with SERVE – or the System of Entertainment, Relaxation and Virtual Entertainment. Middle East carriers jumped by 8.7% in February 2015 compared to 2014, well above the global average of 6.8%. This reflects an increase in the number of airlines operating in the region and subsequently, the need for more qualified industry-ready graduates. In partnership with Mubadala, Airbus held its Airbus Little Engineer A380 Assembly workshops at Strata Airways Aviation Business Development Manager, Mr. Yuseph Hawatt added, ‘We see this partnership as in Al Ain. The workshop welcomed 75 students, introducing them to the world of aviation. Airbus Little furthering our company vision of providing exceptional training opportunities with real career outcomes. Engineer A380 Assembly workshop is designed for students between 13-15 years old and focuses on This collaboration with SASA builds cross-business synergy and provides students across both businesses identifying various aircraft parts, enhancing understanding of both the manufacturing and assembly pro- with an unprecedented choice in training and an enhanced opportunity to forge a successful career in cesses of an aircraft, while learning programming skills in the process. Students then assemble an A380 the aviation industry.’ model; program it so it is able to manoeuvre on the tarmac, ready for take-off. For further information please contact [email protected] Airways Aviation - AACO Partner since 2014 Airbus Little Engineer workshops aim at preparing students in the region to meet the exponential growth in the aviation sector and contribute to creating a pipeline of local talent for the industry. Through this partnership, Airbus Middle East has been hosting a series of workshops across the region to generate Air France Consulting, a wholly owned subsidiary of Air France is special- excitement amongst school students aged between 10 and 12. ized in air transport consulting, training, management and reengineering services, located at Roissy CDG airport. Airbus had also recently launched the Airbus Little Engineer Space workshop, which introduced students Air France Consulting calls on about 200 highly specialized international experts coming mostly from to the world of space exploration, enhancing their understanding of both the benefits and applications Air France and the SkyTeam Alliance who have built a field proven experience and whose competencies of space technology. The workshop was held at ADNEC and facilitated 75 students. Over the course of are recognized by the industry. Acting independently with flexibility, Air France Consulting proposes a four hours, students assembled and launched a rocket, set up a base and established communications. comprehensive approach on key domains of the air transport such as operations, finance and commer- Airbus - AACO Partner since 1997 cial, maintenance, etc... whether to make you a diagnosis or audit, to set up new or improved processes driven by proven change management techniques or define a coaching and training program. • Performance and conformity of flight and ground operations:EU-Ops, IR-Ops and FCL, CRM, SMS, ETOPS, IOSA & ISAGO Assistance, TRTO, Airline operations organization…) • Drivers to reduce costs and increase revenues (Business Plan, Cost control, Network and Fleet, Reve- nue Management Pricing, Customer Relationship Management, E-business solutions, Fuel conserva- tion Program, ETS, Procurement process…) • Fleet Asset Management: aircraft specifications, acquisition, lease, sales • Maintenance Repair Overhaul & Supply Chain: EASA 145/ 147 / 21 / 66 / 147, MCC, line mainte- nance and operational regulatory support, maintenance IT support, supply chain optimization • Emergency and Crisis Response plan with a strong emphasis on customer oriented solutions • 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

Daily news on www.aaco.org Issue 99 - June 2015 79 Our Partners News

Amadeus to roll-out upgraded Selling Platform Connect, Middle East’s first fully online booking platform at Arabian Travel Mar- ket 2015: The global distribution system (GDS) provider launched its new generation Amadeus Selling Platform Connect at the Arabian Travel Market (ATM) 2015 that ran from 4-7 May at the Dubai International Convention and Exhibition Centre. With customisation and person- alisation as its key attributes, the new Amadeus Selling Platform Connect provides travel agencies access to Growth of APG IET product in Middle East: +530% year on year sales growth: this is the impressive their customers’ bookings from anywhere in the world, from any device with an internet connection. The growth of APG IET sales in the Middle East for the first quarter of 2015. platform is simply accessed via a user ID and password, without the installation of any software. Amadeus has used its technological expertise to design a solution that adapts to dynamic requirements, APG now has over 110 airline clients on its APG IET platform and thanks to the support of each APG local enabling agencies to anticipate travellers’ needs while greatly reducing their overheads and running costs. office and the confidence of the travel trade the IET sales are booming, both for second party and third The new navigation model provides seamless interaction between the graphical interface and the com- party ticketing. mand page, thanks to advanced user research design techniques. The online nature of the platform also means that updates or new tools are shared instantaneously with the rest of the network. Unique in the 9 AACO member airlines are participating on APG IET and benefiting from the additional revenue that industry, this feature is set to greatly broaden business opportunities for the travel trade. APG IET delivers and several other AACO members are now reviewing joining APG IET. In the first phase of roll out, the new solution has been deployed in 20 markets in the first phase including APG Network - AACO Partner since 2015 Africa, Eastern Europe, Latin America and North America. Amadeus also offers comprehensive support to enable customers to migrate from existing solutions as well as to new customers keen to join the platform. Amadeus unveils new report on key future travel trends in the Middle East; forecasts 10% jump in online bookings by 2018: Middle East’s online travel market value is projected to advance from USD 18billion to USD 35 billion in the next three years, according to findings from Amadeus’ soon-to-be-published report – Middle East Online Travel Review. The report additionally indicates that growing smart-phone penetra- tion and connectivity among the youth coupled with a thriving airline industry in the region is anticipated to shape the multi-segmented online travel industry. Furthermore, over a period of five years, UAE’s online gross bookings have increased approximately three-folds on the back of a burgeoning affluent middle- Creating Value * Sector Expertise * Rigor & Discipline class possessing an inclination to travel nearly four times in a year. In partnership with PhoCusWright, the Amadeus-commissioned report - to be officially released in October 2015 - forecasts a 42% online travel Founded in 2002, Apollo Aviation Group (“Apollo Aviation”) is a multi-strat- penetration in the UAE market over the next three years, outpacing the entire Gulf region’s 36% growth egy alternative investment manager specializing in commercial aviation in- outlook during the same period. Breaking down, gross bookings across UAE from direct supplier websites cluding buying, selling and leasing aircraft and engines. With more than USD 1.50 billion of assets under are expected to account for 51% of all online revenue, mobile for 17% and OTAs for 32%. management as of December 31, 2013, we are one of the world’s leading mid-life and mature commer- TaqniaTech adopts Amadeus’ revolutionary technology to enhance business customer wing: Amadeus cial aircraft and engine operating lessors and investment managers. has signed a strategic agreement with TaqniaTech. The partnership lays the foundation to a strong business In the first quarter of 2013, Apollo Aviation formed, AAG Capital Markets LLC (AAGCM), to manage relationship between the two conglomerates strengthening their travel and tourism operations. investments in aviation securities. AAGCM now has more than USD 250 million of assets under manage- Under the partnership, Amadeus will deploy its latest and most advanced services-based solutions across ment. all corporate offerings to the Al Tayyar Travel Group. The application developed by Taqniatech for Al Tayyar Led by its founders, William Hoffman and Robert Korn, Apollo Aviation is currently investing a near USD Travel Group is certified by Amadeus for Advanced IT services such as: Amadeus Ticket Changer, Full and 595 million real asset fund, the Sciens Aviation Special Opportunities Investment Fund II (“SASOF II”), Partial Refunds, Waitlist PNR, Queue Processing, Booking and Ticketing with Multiple IATA, Corporate fares, and harvesting a USD 213 million real asset fund, Sciens Aviation Special Opportunities Investment Fund and Airline Special Deals. As a technology partner, TaqniahTech will work with Amadeus to improve func- (“SASOF”) as well as several private accounts. tionality, while extending support and managing content of the online services. We have built a strong team with deep industry knowledge and extensive relationships throughout the The partnership not only provides TaqniaTech access to Amadeus’ vast portfolio of technology products world’s aviation industry. We seek innovative and creative solutions to create value. and solutions, but also provides industry expertise and business intelligence. The synergy is designed to Regional Main Contact reduce Al Tayyar Travel Group’s dependence on redundant terminal technologies and drive the adoption Name: Mr. Pascal Picano, Head of Global Marketing of world-class travel systems and solutions. Speaking about the partnership, Abdulrahman Mutrib, CEO, Telephone: +353 1 497 6621 Al Tayyar Technology Co. said: “The business tourism sector in Saudi Arabia is poised for unprecedented Fax: +353 1 497 6317 growth. As a leading travel agency in the region, we aim to meet the increasing demands of our widening Email: [email protected] client base and serve as a sought-after travel advisor providing the best choices. Amadeus and TaqniaTech Website: www.apollo.aero are working together to ensure we are able to leverage the technology intelligence of Amadeus’ products Apollo- AACO Partner since 2013 for the wider benefit of our customers.” Amadeus - AACO Partner since 2000 Daily news on www.aaco.org Issue 99 - June 2015 81 Our Partners News

Reliable tools are essential for airlines to expedite the monitoring process Bloomberg Business hits traffic record: Bloomberg Business re- in a market that sees hundreds of thousands of fare changes daily. corded its best traffic month ever in April, reaching 20.8 million You need to gather business intelligence for key markets against your top unique visitors in the U.S. and surpassing WSJ.com for the first competitors, but what good is that intelligence if you find out your initia- time[1]. In addition, Bloomberg Business video audiences were larger than AOL Money and Finance for tive was not competitively priced the first time with video unique visitors up 206% year-over-year.[2] Bloomberg Business, which launched after it is too late? Imagine a solution that not only highlights when you are not competitively priced, but on 27 January 2015, is the centerpiece of the company’s consumer media strategy, first announced by it does so up to six months in advance with multiple views to make it easy to spot irregularities. Bloomberg Media CEO Mr. Justin B. Smith in March 2014. ATPCO has that solution. Total Price Comparison is a fare management tool that provides airlines with a comparative view of your lowest filed total price including base fare, carrier-imposed (YQ/YR) fees, Since its debut in January, there has been sustained traffic and advertiser growth. Visitors to Bloomberg taxes, and surcharges, against your competitors. Total Price Comparison helps identify when you are not Business have over USD 100,000 mean income, the highest amongst its competitive set (including WSJ. competitive on key elements of the total price and offers multiple options for viewing your data such as com, CNBC.com, CNNMoney.com, Forbes.com, Economist.com, Reuters.com).[3] New advertisers include calendar and chart views to easily spot trends or pinpoint discrepancies for up to 330 days in advance. Apple, Zurich Financial Services, PwC, Cathay Pacific Airways, Volkswagen Group of America, Lacoste, Total Price Comparison puts all fare elements for your most important markets at your fingertips. As your Qualcomm, and UnitedHealth Group, among others. trusted technology partner, ATPCO provides detailed monitoring tools to make market research faster and easier. Would you like to know more about Total Price Comparison? We are available to provide [1] Source: April 2015 U.S. comScore Multi-Platform counsel and answer questions. Please feel free to contact us. [2] Source: April 2015 U.S. comScore Video Metrix [3] Source: April 2015 U.S. comScore Media Metrix Europe, Middle East and Africa Mr. Frank Socha, Regional Director Bloomberg - AACO Partner since 2013 fsocha@atpco.net +44-20-8572-1322 ATPCO - AACO Partner since 2014

Toulouse, Southern France based regional aircraft manufacturer ATR is the world Boeing names Bernie Dunn as Middle East President: Boeing named Ber- leader in the 50 to 74-seat turboprop market. The ATR 42 and ATR 72 are the per- nie Dunn president of Boeing Middle East. Dunn will be based in Dubai, fect solution on short-haul routes around the world. ATR has become the leader in United Arab Emirates (UAE) and report to Marc Allen, president of Boeing its category by offering reliable, easy-to-maintain, comfortable and environment- International. The change is effective since 20 May. friendly aircraft to airlines operating on the regional transport market, at a cost well below that of its Turkish Airlines takes delivery of 125th Boeing airplane: Boeing and Turkish Airlines celebrated a mile- competitors. ATR was established in November 1981 and benefits from the experience and know-how of stone with the delivery of the airline’s 125th airplane purchased from Boeing – a Next-Generation 737- two of the major leading European aerospace industries, Alenia Aermacchi and the Airbus Group, who 900ER – and one of 12 airplanes Turkish Airlines will take delivery of in 2015. Boeing delivers Transaero’s each have a 50% share in the ATR programme. first Next-Generation 737-800: Boeing delivered Transaero’s first Next-Generation 737-800. Transaero’s Since its creation, ATR has sold over 1,400 aircraft to over 180 operators based in 91 countries. ATR newest 737 has a recognizable radome “bump” on top of the fuselage just behind the wings. The dome- planes have totaled over 21 million flight hours. It currently has 1000 aircraft flying over 90 countries of shaped radome covers a Ku-band satellite antenna system that enables broadband passenger connectiv- the world in the livery of more than 180 airlines. ATR is also well established in the Africa & Middle East ity all over the world — even over oceans. region, with more than 100 aircraft flying for 35 carriers over 25 countries. Boeing, TUI Group finalize order for 787-9 Dreamliner: Boeing and TUI Group have finalized an order ATR is committed to a continuous process of improvement of its aircraft to meet the market needs and for one 787-9 Dreamliner with an option for one further 787-9. The order is valued at USD 257 million at passenger appeal. According to this principle, ATR launched in 2007 the newest ATR -600 series aircraft, current list prices. TUI Group also announced that it will substitute two unfilled orders for 787-8s for two which entered into service in 2011. Both the ATR 42-600 and the ATR 72-600 feature the latest techno- 787-9s. logical enhancements while building upon the well-known advantages of the ‘–500 series’ ATRs, namely Boeing, SWISS finalize order for three additional 777-300ERs: Boeing, the Lufthansa Group and Swiss their high efficiency, proven dispatch reliability and low fuel burn and operating cost. The new ATR -600 International Air Lines (SWISS) have finalized an order for three additional 777-300ER (Extended Range) series feature new cabin interior designs and a totally new full-glass avionics suite, and has become the airplanes, valued at USD 990 million at current list prices. This order, previously attributed to an unidenti- new reference among regional aircraft all over the world. fied customer, follows SWISS’ 2013 order for six 777-300ERs, and will form the backbone of SWISS’ long- Regional Main Contact haul fleet renewal. Mr. Milco Rappuoli, Sales Director Boeing 737 MAX LEAP-1B begins extensive flight test program: Boeing and CFM International an- Telephone: +33 5 62 21 65 83, Fax: +33 5 62 21 66 76 nounced that they successfully initiated flight testing of the LEAP-1B* engine on 29 April on a modified Email: [email protected], Website: www.atraircraft.com 747 flying testbed at GE Aviation Flight Test Operations in Victorville, Calif. ATR - AACO Partner since 1998 *The LEAP-1B is a product of CFM International, a 50/50 joint company between Snecma (Safran) & GE. Daily news on www.aaco.org Boeing- AACO Partner since 1998 Issue 99 - June 2015 83 Our Partners News

CFM LEAP-1B engine begins extensive flight test program: CFM International initiated flight DAE announces sale of StandardAero to Veritas Capital: Dubai Aerospace testing of the LEAP-1B engine on 29 April on a modified 747 flying testbed at GE Aviation Enterprise (DAE) Ltd. announced the signing of a definitive agreement to sell Flight Test Operations in Victorville, California. The testing is the next major milestone in a 100% of StandardAero to an affiliate of Veritas Capital. Terms of the transac- two-year program that will culminate in engine certification in 2016 and delivery of the first tion were not disclosed. Boeing 737 MAX in 2017. The engine behaved well and completed multiple aeromechani- DAE Managing Director Khalifa H. AlDaboos said: “StandardAero is one of the world’s largest indepen- cal test points at various altitudes during the five-hour, 30-minute first flight.The LEAP-1B dent MRO platforms with clients in over 70 countries. DAE acquired StandardAero in 2007 and since then engine is the exclusive power plant for the Boeing 737 MAX family. The first engine began ground testing has nurtured and built its market leading position. This transaction will allow StandardAero to accelerate on 13June 2014, three days ahead of the schedule set when the program was launched in 2011. its growth by leveraging Veritas’ global relationships and in-market presence.” “DAE will now redeploy capital and refocus its efforts on building a world-class aerospace footprint an- First CFM LEAP-1A takes flight powering Airbus A320neo: Advanced LEAP-1A engines successfully com- chored in Dubai. We will focus on both organic and inorganic opportunities. DAE Capital will also aggres- pleted a four-hour, 25-minute first flight powering the new Airbus A320neo. The flight test occurred right sively acquire aircraft assets to expand its aircraft leasing portfolio with a current net book value of USD on schedule, reinforcing the success of the LEAP development program and the confidence shown in the 3.7 billion.” performance and durability of the new product. The engines performed extremely well throughout the DAE was advised by Moelis & Company. Legal counsel was provided by Freshfields Bruckhaus Deringer. flight envelope. This first flight is another major step in the joint airplane/engine development program DAE - AACO Partner since 2014 that will culminate in the entry into commercial service in 2016. CFM is on track for joint U.S. FAA and EASA certification to support the aircraft entry into service. Nearly 60% of the required engine certifica- tion reports have been submitted and approved to date. The LEAP engine was chosen as a power plant for the A320neo in December 2010. Since then, the en- gine has garnered orders and commitments for 2,508 LEAP-1A engines, representing 55% of the orders to date of A320neo aircraft for which an engine selection has been made. There are currently a total of more than 30 LEAP engines (all three models) on test or in final assembly and the program has logged a total of more than 3,660 certification test hours and 5,460 test cycles. CFM - AACO Partner since 1998 CHAMP Cargosystems provides the most comprehensive range of integrated IT solutions Engine Lease Finance Corporation (ELFC) has become the go-to and distribution services for all players in the air cargo transport chain. CHAMP is a byword spare engine lessor in the MENA region. for business-critical content and best of class, reliable connectivity. In 2013 and 2014 we provided short and long term spare engine leases to long-standing customers, who have a clear preference to lease from ELFC over any other, The portfo- lio spans core management systems, messaging services, and eCargo solutions. These in- based on their experience of working with us. clude applications to meet customs and security requirements, quality optimization, as well as e-freight However, we also opened business with new airlines for the first time. Including considerable sale-lease- and mobility needs. The products and services are well-known under the Cargospot and Traxon brands. back transactions. Our message is now almost universally accepted that ELF transactions offer: A means to pass on future engine value risk; The company serves over 200 airlines and GSAs, and links these with some 3,000 forwarders and GHAs Potential to generate profit for your airline; worldwide. CHAMP’s solutions help its customers and their clients adapt to critical and continuous Cost efficiency – ELFC’s fixed monthly rental rates compare favourably to continued ownership costs; changes in air transport logistics to meet global trade demands. Reduced need for airlines to tie-up capital in spare engines, it is more efficient to rent for as long as nec- essary from ELFC. CHAMP Cargosystems is headquartered in Luxembourg and operates offices in London, Zurich, Frankfurt, Open access to ELFC’s independent dedicated technical team. Atlanta and Manila. Our reputation as the largest and most financially capable independent aero-engine lessor is further en- hanced this year by the transition to our new parent, Mitsubishi UFJ Lease and Finance Company (MUL). CHAMP Cargosystems – Connected thinking for the air cargo community. The benefits to ELFC of this transfer of ownership are manifold: on the one hand it retains the strength of the financially-powerful ownership of the Mitsubishi UFJ Financial Group and on the other, by moving Regional Main Contact from the banking side of the Group to the leasing side, it becomes more closely aligned within the asset- Name: Mr. Steven Fayers management culture developed under MUL’s flexible, non-banking organisation. Position: Head of Global Marketing We have spare engines available to lease to your airline and we have the financial strength to provide Email: [email protected] favourable terms for sale-leaseback. Website: www.champ.aero For more information, please contact SVP Mr. Julian Jordan at e-mail: [email protected] CHAMP - AACO Partner since 2010 ELFC - AACO Partner since 2003 Daily news on www.aaco.org Issue 99 - June 2015 85 Our Partners News

Merchandising is transforming the airline industry: It’s no secret that savvy GECAS delivers new Airbus A321 to Air China: GE Capital Aviation Services airlines are becoming increasingly more profitable through merchandising. Bag Limited (GECAS), the commercial aircraft leasing arm of GE, announced de- fees, branded fares, bundled services, a-la-carte offerings, subscription servic- livery of a new leased Airbus A321 aircraft to Air China.The aircraft is part of es, lounge services, premium meals, Wi-Fi, drink coupons, advanced boarding, on-board spa treatments, GECAS’ existing order book with Airbus. champagne service, and other new and creative offerings are all adding significant profits toairline- bot tom lines. Farelogix’FLX Merchandise and NDC-Xpressare two of the key technology solutions helping to GECAS appoints Mr. Todd Freeman as Regional Manager for Middle East, Africa and Russia/CIS: GECAS make it all happen. announced the appointment of Mr. Todd Freeman as Senior Vice President and Regional Manager for the Over the coming weeks, Farelogix is presenting at a series of IATA-sponsored NDC (New Distribution Ca- Middle East, Africa and Russia/CIS effective 1 June. He will be based in Dubai and oversee five regional pability) workshops around the world. This all-new IATA NDC Regional Workshop series is targeted at air- sales offices that serve more than 50 airline customers and manage over 300 leased aircraft. lines and travel technology partners. The goal of these workshops is to provide airlines with information about the latest NDC developments, technology providers,implementation benefits, and best practices GECAS - AACO Partner since 2003 as they embark on a journey to more revenue and happy customers. While the first presentationtook place in Miami, Florida in May, the second istaking place in Singapore on 24 and 25 June, and the third session will be held on1 and 2 July in Geneva, Switzerland. All of these sessions feature discussions on the transformation of distribution and customer experience, touching on technology as a key driver for transforming the airline industry. They will also provide attendees with insights on NDC-Xpress, a technology suite that enables airlines to implement NDC with minimal risk and unprecedented speed to market. Find out how you can differentiate your airline’s brand and delight your customers and shareholders. ContactUAE-based Mr. Rui Sequeira, Vice President, Sales and Business Development at Farelogix for more information ([email protected]) on attending an IATA NDC Workshop at alocation that best suits your needs. Farelogix - AACO Partner since 2013 GE Aviation and Woodward combine fuel systems expertise for new joint venture:GE Gogo announces “Crew Connect” service for airline operational service that al- Aviation and Woodward Inc. announced a strategic 50/50 joint venture for fuel systems lows crews to stay connected while in flight:Gogo Inc. announced the launch of its for GE’s large commercial aircraft engine lines. The new joint venture will design, develop, revolutionary crew messaging service: Crew Connect for Airline Operational Ser- source, supply and service the fuel system, including components from the fuel inlet up to vices. the fuel nozzle for the GE90, GEnx, GE9X and all future large commercial engines developed Crew Connect is a dynamic messaging platform that allows flight crews to communi- by GE Aviation. Woodward will be the preferred supplier to the joint venture. cate by voice or text messaging with each other and with ground crews while the aircraft is in flight. The Under terms of the joint venture agreement, Woodward will receive USD 250 million in cash, and the service is an application-based service, available on Android, Apple and Microsoft devices that offers parties will participate jointly in the operating results of the respective programs. Completion of the group messaging, event-based alerts, multi-media messaging and message tracking. transaction is subject only to customary regulatory approvals, and it is expected to close near the end of calendar 2015. Interest in In-flight connectivity higher for passengers outside the U.S., according to recent Gogoglobal GE Aviation’s H Series selected to re-engine IKHANA Twin Otters: IKHANA Aircraft Services and GE Avia- study on in-flight connectivity:Gogo Inc. recently conducted a global study on traveler interest in in- tion announced a collaborative effort to develop a variant of the de Havilland Twin Otter DHC-6-100/- flight connectivity and connectivity related products and services. The study revealed that interest in 200/-300 aircraft with GE’s H Series turboprop engines. these products and services is significantly higher outside the U.S. despite the fact that fewer connected IKHANA is a specialist in structural upgrades, re-life, systems modifications, and increases to the max aircraft are operating internationally as compared to within the U.S. takeoff gross weight of the Twin Otter. The H Series turboprop engines will extend the performance and capabilities of the Twin Otter beyond what is currently available to operators around the world. Gogo Business Aviation selected by NetJets for major in-flight connectivity and entertainment pro- GE Aviation breaks ground for USD 50 million expansion at facility in Hooksett, N.H.: GE Aviation held a gram: Gogo Inc. announces that its subsidiary, Gogo Business Aviation LLC, has been selected by NetJets ceremony for a new expansion at its facility here today. GE Aviation began building a 55,000 square-foot for a new program that will bring a minimum of 650 Gogo in-flight entertainment and connectivity (IFEC) expansion to increase capacity driven by a record backlog in its commercial engines business. This will systems to the NetJets fleet. represent a nearly USD 50 million investment in Hooksett over the next decade. The program will provide NetJets customers with a full suite of IFEC capabilities including voice and tex- GE exports to every region of the world, making exports critical to GE business. Approximately 60%of GE ting (via passengers’ own smartphones and mobile numbers), Internet, e-mail, on-demand movies, TV Aviation’s USD 24 billion annual revenue comes from exports of their U.S.-made products and services. episodes, news, moving maps, flight progress information, destination weather and more. General Electric - AACO Partner since 2014 Gogo - AACO Partner since 2014 Daily news on www.aaco.org Issue 99 - June 2015 87 Our Partners News

Hahn Air announces 15th interline agreement for 2015: Hahn Air, the lead- HP Enterprise Services is the global business and information technology services divi- ing provider of airline distribution services and ticketing solutions, imple- sion mented 15 interline partners in 2015. They are now available on the HR-169 of Hewlett-Packard. As one of the world’s leading services organizations, serving ticket and can be booked by 95,000 travel agencies worldwide in 190 coun- more than 1,000 businesses and government agencies in 135 countries, we help clients tries through the standard GDS process. Among the new partners are Air Algérie (AH), flynas(XY) and focus their IT investments to better engage with their customers, manage risk, tackle the Jazeera Airways (J9). explosion of data, and transition to a new style of IT. Through our seven interconnected practices, we advise, transform, and manage to advance each enter- With the 15 new carriers, Hahn Air now provides distribution services for a network of over 300 air & rail prise, partners through travel agencies based on its ticketing platform and settlement services. no matter where they are in their journey. We also bring the best of HP together to deliver innovative solutions that matter to our clients. Leveraging HP’s portfolio-one of the most complete in the Join our network or partner airlines today and benefit from global ticket sales while outsourcing five industry-we offer end-to-end solutions for today’s IT environments. major elements of indirect global distribution: For more than 50 years, we have built a strong reputation of industry expertise and delivering the best client experience in the industry. Our clients have relied on HP Enterprise Services as a partner they can • membership in Billing and Settlement Plans (BSPs) covering almost 190 markets worldwide trust to deliver mission-critical services and value to their enterprise. • connectivity with all Global Distribution Systems (GDSs) • international money repatriation Regional Main Contact • global support for 95,000 travel agencies Name: Mr. Mario Louca • risk and fraud management Position: Travel & Transportation Practice Lead EMEA Telephone: +31 (0)20 7211039 Learn how your airline can benefit from cooperating with Hahn Air and contact Mr. Rick Saggar at Email: [email protected] [email protected]. Website: www.hp.com Hahn Air - AACO Partner since 2014 HP - AACO Partner since 2014

Hogan Lovells is a global legal practice that helps corporations, financial institutions, Ingenico Group earns Award for ‘Financial Inclusion Platform of the Year: At and governmental entities across the spectrum of their critical business and legal is- the 5th edition of the annual Mobile Money Expo in Lagos, Nigeria, Ingenico sues globally and locally. We have over 2,500 lawyers operating out of more than 40 Group won the ‘Financial Inclusion Platform of the Year’ Award. In recognition offices in Africa, Asia, Europe, Latin America, the Middle East, and the United States. of its Financial Inclusion initiatives across Africa, Ingenico Group also received Hogan Lovells is one of a small number of leading global law firms with in-depth the Awards for ‘Best Mobile Money/Card Combination’ and ‘Best Data Monitoring Solution’.

DOCUMENT D’EXECUTION knowledge in aviation-related matters worldwide. Our aviation team regularly- re Ingenico GroupINGENICO_TD.ai to upgrade Banca Transilvania’s POS fleet in Romania: Ingenico Group announced that

INFORMATIONS GENERALESCOULEURS UTILISEES APPROBATION

Client: INGENICO Date : 10 DEC 2013

7540 C1795 C ceives first-tier rankings from Chambers USA., which notes in its 2014 edition “An excellent law firm, BancaUtilisation: Transilvania Impression en tons has selected Ingenico Smart Terminals to replace its existing fleet of 13,000 terminals directs. Ne pas utiliser pour application écran. staffed by outstanding attorneys, that achieves results; impressive by any measure.” We are also known with its contactless terminals. By the end of 2015, Banca Transilvania will deploy Ingenico Group’s POS ter- for strong cross-border and asset finance work in global markets, earning praise from The Legal 500 for minals and accept all cards in all branches across the country, offering their customers a new and enhanced “clarity of thought, a solutions-driven approach and exceptionally talented partners.“ secure payment experience. The Romanian bank chose Ingenico Smart Terminals after its first pilot met with Clients benefit from our aviation lawyers’ experience in public service, which include positions as Chief great success in 2014, leveraging three key factors: Ingenico Group’s comprehensive range of robust and Counsel of the U.S. Federal Aviation Administration (FAA), Special Assistant to the Secretary of Transpor- reliable terminals, the development and delivery of a custom payment application, and the local support tation, Special Counsel to the Administrator of the FAA, Special Assistant to a member of the National provided by Ropeco Bucharest, Ingenico Group’s trusted partner. Transportation Safety Board and Executive Assistant to the Chair and Vice Chair of the Civil Aeronautics Ingenico Group enters strategic partnership with Fosun to accelerate development in China: Ingenico Board. In addition, our aviation lawyers team with lawyers from the firm’s network of more than 40- of Group announced a strategic partnership with Fosun (Fosun International Limited and its affiliates) to fices worldwide to address a broad range of legal issues, including antitrust, corporate, finance, environ- extend its development strategy in China. Under the terms of the deal, the partnership will take the form mental, tax, litigation, lobbying, and regulatory matters. of an investment by a fund managed by Fosun into Ingenico Group’s Hong Kong-based holding. Over 2014, We represent all segments of the aviation industry, such as air carriers, airports, corporate aircraft own- Landi, Ingenico Group’s Chinese subsidiary has significantly expanded its position with banks and payment ers and operators, municipalities, aerospace manufacturers, repair facilities, aviation trade associations, services providers to become the number one payment terminal provider in China. At the same time, the foreign governments, business aviation operators, fractional ownership providers, unmanned aircraft Group launched several initiatives to expand beyond payment terminals, notably through ZIMPAY, a JV with systems providers and operators, and aircraft leasing and financing organizations. The insights we derive Chinese telecom equipment provider ZTE, to deploy services at Point of sales, in interaction with mobile from our diverse practice enable us to achieve our clients’ goals more efficiently and effectively. phones. Through this partnership, both companies will combine Ingenico Group’s technologies and know- Hogan Lovells - AACO Partner since 2014 how in payment with Fosun’s extensive foothold and investment capacity to further expand their position in the fast-growing Chinese payment ecosystem. Global Collect - AACO Partner since 2007 Daily news on www.aaco.org Issue 99 - June 2015 89 Our Partners News

Launch of Inmarsat’s third Global Xpress satellite delayed: Inmarsat provided Established in January 1980 and based in Toulouse, IAS is the French Aero- an initial update on the launch schedule for Inmarsat-5 F3 (I-5 F3) following space Industry Association (GIFAS) agency for international professional the failure of the preceding Proton Breeze M launch from the Baikonur Cosmo- training. IAS mission is to design and implement professional training solu- drome in Kazakhstan on 16 May. According to an announcement by Inmarsat’s tions dedicated to foreign professionals operating in the aeronautic and launch partner, ILS, the Proton Breeze M rocket carrying the Centenario satellite suffered a disabling space sector, as partners and/or customers of the French industry. anomaly during the operation of the third stage, approximately eight minutes after lift-off, resulting in Whether based upon the schools’ academic training or tailor-made by IAS, these solutions leverage the the loss of the satellite and rocket. A Russian State Commission has begun the process of determining know-how of IAS educational partners and the expertise of its industrial lecturers coming from leading the reasons for the failure. In parallel with the State Commission, ILS will form its own Failure Review players such as Airbus Group, Thales Group, Dassault Aviation, and Safran Group. Oversight Board, which will review the State Commission’s final report and corrective action plan, in ac- Backed by GIFAS, IAS can build upon its location in Toulouse (close proximity to ISAE, ENAC, CNES and the cord with U.S. and Russian government export control regulations.The delay in the launch of Inmarsat-5 future Toulouse Montaudran Aerospace Technoparc), and its strong international network. F3 is currently expected to have a small negative effect on 2015 revenue and earnings. The impact in IAS fast facts: subsequent years cannot currently be determined due to timing uncertainty and consequently Inmarsat • more than 3500 professionals from more than 100 countries trained to date, is therefore suspending its guidance of an 8-12% CAGR in wholesale MSS revenues over 2014-16. The • customer portfolio of over 150 leading players in the aeronautic and space industry, medium term expectation for GX to deliver no less than USD 500 million of additional revenues by the • more than 10 training sessions per year, fifth anniversary of the global launch of commercial GX services and the related revenue growth profile • 2013 turnover: 3.6 million Euros, are currently not changed by this delay. Inmarsat will provide further information once this is available. • permanent staff: 12 (as of end 2013) working in 3 teams: Management, Business Development, and SwiftBroadband High Data Rate service testing complete: Flight and lab tests of High Data Rate (HDR) Operations. capabilities for Inmarsat SwiftBroadband have been successfully completed. The new service, developed Regional Main Contact by Inmarsat, Honeywell Aerospace and Eclipse, will double the in-flight Wi-Fi speeds for commercial, Name: Mrs. Monia Zaki, International Project Manager government and helicopter SwiftBroadband users through a simple on-aircraft software upgrade. Telephone: +33 5 62 17 33 83 SwiftBroadband HDR gives aircraft operators and passengers faster and more efficient broadband for Fax: +33 5 61 55 16 97 browsing the internet, checking emails, accessing instant messages and using streaming services while in Email: [email protected], Website: www.inst-aero-spatial.org the air. Inmarsat - AACO Partner since 2013 IAS - AACO Partner since 2008 Innovata, a global leader in travel and hospitality content management and For 80 years, Jeppesen has made it possible for pilots and distribution solutions is recognized as a major industry source for worldwide their passengers to safely and efficiently reach their des- airline schedule and related data. As a partner of IATA in marketing the tinations. Today, this pioneering spirit continues as Jeppesen delivers transformative information and Schedule Reference Service (SRS) to the aviation and consulting industries, optimization solutions to improve the efficiency of air and sea operations around the globe. Innovata maintains one of the world’s largest flight databases (passenger and cargo) representing more than 99% of the air segment miles flown worldwide, containing over 900 airlines, 95% of which are up- Jeppesen is a Boeing subsidiary and part of the Digital Aviation business unit within Boeing Commercial dated and refreshed every week. Aviation Services. Boeing offers the industry’s largest portfolio of services, support and solutions, collec- Innovata delivers comprehensive, accurate and reliable up to date information to meet a wide range of tively known as the Boeing Edge, providing customers a competitive advantage by solving real operation- data service needs for aviation related industries and is the market leader in the provision of timetables al problems, enabling better decisions, maximizing efficiency and improving environmental performance and route mapping services, via all distribution channels, to airlines and airports worldwide. – intelligent information solutions across the entire aviation ecosystem. Take a look on the AACO website at the dynamic and interactive route network mapping service pro- duced by Innovata, showing direct routes, online and interline connections, and a comprehensive timeta- For more information, please contact us at: ble display for all 27 member airlines, dynamically plotted and displayed for users searching and query- Jeppesen GmbH, Frankfurter Strasse 233, 63263 Neu-Isenburg, Germany ing: http://aaco.innosked.com/ Telephone: +49 6102 50 8214, Fax: +49 6102 508121 Headquartered in Atlanta, USA, with regional offices in UK and Singapore, Innovata serves over 200 cus- tomers, in 52 countries. Regional Main Contact Regional Main Contact: Name: Mr. Torsten Domrös Name: Mr. John McAleavy, Regional Account Manager Europe, Africa & Middle East Position: Senior Manager, Navigation Services & Technical Development Commercial & Military Aviation Telephone: +44 (0)1582635018 Telephone: +49 6102 50 8180 Fax: +44 (0)1582635001 Fax: +49 6102 50 8121 Email: [email protected] Email: [email protected] Website: www.innovata-llc.com Website: www.jeppesen.com Innovata - AACO Partner since 2003 Jeppesen - AACO Partner since 2008

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Kennedys is a growing international law firm with particular expertise in litigation and Onboard medical events in commercial air transportation: Medical events on dispute resolution. We have a network of over 1,200 people across the UK and Eu- board commercial airlines are relatively rare; however, they are expected to rise at rope, Middle East, Asia Pacific and Latin America. The firm’s aviation practice has an least in parallel to traffic growth. exclusive focus on the aviation industry. This enables it to bring a depth and breadth of The most important determining factor is never entirely under an airline’s control. But it has everything specific expertise from its team resources which consist of a range of professionals who have worked in mul- to do with passenger health. Based on MedAire’s 30 years of medical advisory service via its MedLink air- tiple areas of the aerospace industry both as private practitioners and in-house counsel. Our driven team of to-ground link between pilots and hospital-based doctors, the company believes there are three types of experienced and highly regarded professionals specialise in providing legal solutions to a wide range of clients passengers who experience medical issues in the air. They are people with: in the aviation industry. We are able to advise on all aspects of aviation, commercial, regulatory and liability • Unknown conditions. The unexpected medical issue happens in the wrong place, at the wrong time. issues. In respect of liability issues, we have lawyers who have significant experience in dealing with major • Predisposed conditions. Underlying medical issues are triggered due to some travel-related factor(s) aviation losses and who are recognized as leading figures in the aviation sector. We are involved in handling • Known conditions. This category is for those who have medical issues and wish to fly because they: a wide spectrum of claims ranging from the legal aftermath of major air accidents through to carriage by air ͳͳ Fell ill at their destination and are desperate to return home. issues involving EU regulations, the Warsaw and Montreal convention regimes. Our team has experience of ͳͳ Desire more appropriate treatment—perhaps in another country, state or territory with better facilities. advising in relation to Insurance and Reinsurance policy interpretation and coverage issues; we have pursued ͳͳ Seek less expensive medical care due to the increase in popularity of ‘medical tourism.’ multiple subrogated claims and, where disputes arise, have conducted numerous arbitrations and mediations. With longer flights, larger capacity aircraft and easier access to air travel in-flight events are expected to Our focus is to provide practical advice to resolve contentious issues. We also have a regulatory team who grow. On the other hand, advances in medical technology are increasing life expectancy by controlling specialise in advising airlines on the effect of international regulations and compliance in respect of these, many conditions which could reappear at any given time. These two factors will likely lead to an increase including EU regulations and directives; the Chicago Convention together with IATA and ICAO recommended in passengers flying with underlying health problems flying in the near future. standards and practices. Our aircraft finance team deliver high quality practical legal advice and our clients Today, airlines approach in-flight medical events in different ways. In fact, many still rely on the occa- include airlines (from major airlines to start ups), private individuals and product manufacturers; we were re- sional presence of a medically qualified person among the passengers. As with every other safety issue, a cently named as one of the world’s top ten law firms in the aircraft finance sector by the leading publication, medical event should be approached in a consistent, structured way. Event data should be captured and Air Finance Journal as well as being the winner of specialist aviation team in the Legal 500 UK Awards 2013. documented. A comprehensive system should also include the ability to prevent events to occur in-flight Kennedys are here to provide answers, recommendations, strategy and tactics. We deliver these in plain Eng- by assessing passengers about their fitness to fly before the aircraft takes-off. lish and it’s what we call Legal advice in black & white. Kennedys - AACO Partner since 2011 MedAire - AACO Partner since 2008 Sharing information on recent developments in the field of civil Air Canada selects Mercator to optimize cargo revenue account- aviation training:Lufthansa Consulting’s Associate Partner Mr. ing processes: Air Canadahas signed an agreement with Merca- Panagiotis Poligenisre presented the aviation consultancy at the “6th International Conference of Flight torto manage and optimize its revenue accounting system for cargo operations using Mercatorbal avia- Safety Foundation Mediterranean” from 28 – 29 May 2015 in Larnaca, Cyprus. Mr. Poligenis participated tion industry. in the roundtable discussion “Practical solutions for achieving a higher level of safety in aviation through training” moderated by the Chairman of the conference. Air Canada will implement RAPID Cargo to help align its processes to industry leading practices, stan- The main objective of the Flight Safety Foundation Mediterranean is to contribute to the enhancement dards and quality. Air Canada was looking for an integrated, modern and scalable revenue accounting of aviation safety, to facilitate training in aviation issues, to encourage the adoption of global and Euro- solution that would seamlessly interface with its existing cargo system, and one that would improve the pean aviation policies and to foster cooperation between the countries of the Mediterranean and Middle efficiency of Accounts Receivables (AR) and Collections, the integration of Cargo Revenue Accounting and Eastern regions. Postal Mail Revenue Accounting, the reduction of manual processing and intervention, and the capability For further information on Lufthansa Consulting’s services in this field, please follow: to generate real-time reports. Link to Lufthansa Consulting Website/Services/Operations Lufthansa Consulting - AACO Partner since 2010 RAPID Cargo is a next-generation cargo revenue accounting solution that gives airlines the tools to effi- ciently manage their complex cargo operations, by providing them with a clear view of how their busi- nesses are performing. It quickly and accurately transforms the data on cargo air waybills into a stream of financial and strategic information. Air Canada and Mercator have begun work on the RAPID Cargo implementation and the airline is sched- uled to migrate to the new system in the fourth quarter of 2015. mercator - AACO Partner since 2003

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MTU Maintenance and Pratt & Whitney Canada Customer Service Centre Eu-rope The world leader in aviation intelligence, OAG is relied upon globally for essential celebrate 4,000 P&WC engine shop visits: MTU Maintenance Berlin-Brandenburg aviation information, data and insight. Only OAG has the capability to deliver accu- and the Pratt & Whitney Canada Customer Service Centre Europe (CSC) are celebrat- rate, comprehensive and up-to-the-minute aviation data – and expertise to convert ing 4,000 repaired Pratt & Whitney Canada engines. The jubilee engine, a PW305A this information into market-leading intelligence and innovative aviation and travel was delivered to Aero-Dienst GmbH & Co. KG, Germany’s second-oldest commercial operator and provider solutions. of business aviation services. A small celebration in honor of the customer was held at 2015 European Unique trusted and respected within the industry for over 80 years OAG is best known for its airline Business Aviation Convention and Exhibition (EBACE) in Geneva. “We are very proud to be celebrating this schedules and flight status databases, which holds future and historical flight details for over 1000 air- milestone with our partners, the CSC and Aero-Dienst GmbH & Co. KG. 4,000 engine shop visits are a major lines and more than 4,000 airports. This aviation data - unrivalled in its accuracy and comprehensiveness achievement and we are confident that we will continue this success into the future,” said Mr. André Sina- feeds the world’s global distribution systems (GDS) and travel portals, and drives the internal systems nian, Managing Director at MTU Maintenance Berlin-Brandenburg. Mr. Carsten Behrens, General Manager of many airlines, airports, air traffic control systems, aircraft manufacturers, government agencies and of the CSC added: “The CSC offers extensive engine know-how and outstanding MRO capabilities through travel brands around the world. MTU Maintenance Berlin-Brandenburg. This has earned us the trust of our customers, and we are eager OAG’s market leading worldwide airline distribution and aviation analytics services are perfectly compli- to continue satisfying their expectations.” Since 1985, MTU Aero Engines has been cooperating with Pratt mented by our advanced suite of multi-media products designed for airlines, airports and travel related & Whitney Canada on a number of PW300 family engines and holds a 25%share in those en-gines.MTU is businesses helping aviation analysts, route development teams, software developers, business travellers responsible for the development and production of the complete three-stage low-pressure turbine, includ- and travel arrangers make better decisions. ing the exit case and the mixer. The PW300 po-wersvarious medium-sized business and regional jets, among Headquartered in Luton, UK, OAG serves the passenger, aviation, air cargo logistics and travel communi- them the Learjet 60. MTU Maintenance Berlin-Brandenburg has been offering MRO services for this en-gine ties from its global network of offices in the UK, USA, Singapore, Japan and China. type since 2001. The location in Berlin-Brandenburg focuses on the repair and overhaul of small-size aircraft engines and industrial gas turbines. It provides service support for Pratt & Whitney Canada (P&WC) engines Regional Main Contact – the PT6A, PW200, PW300 and PW500 series – and is an Authorized CF34 Service Provider. The CSC is a Mr. Mory Camara, Regional Sales Manager for ME and France 50-50 joint venture of MTU Maintenance Berlin-Brandenburg and Pratt & Whitney Canada and engages in Telephone: +441582 69 50 46, Fax: +441582 69 50 46 marketing and sales activities for Pratt & Whitney Canada engines, providing comprehensive service sup- Email: [email protected], Website: www.oag.com port for customers in Europe, Africa and the Middle East. MTU - AACO Partner since 2013 OAG - AACO Partner since 2002 NAHCO, ANCLA reach agreement for 20% increase in cargo tariff: NAHCO and Optiontown is an innovator in the realm of travel options. With our the Association of Nigeria Licensed Customs Agents (ANLCA) reached a consen- patented MIT Technology airlines can generate up to 5-7 % more sus on the issue of adjustment in Air Cargo tariff and agreed for a 20%increase. revenue without cash investment or IT development. Our Post Sale The agreement means that NAHCO would have to revise downward the initial Ancillary Revenue algorithms sell dynamic travel options to customers after ticket purchase. It generates 30%increase it had started implementing while ANLCA would move up from zero to 20%. incremental revenues for airlines and enhances customers travel experience - a win-win for all. Our ro- At the meeting which held at the head office of NAHCO, Lagos, the negotiating team of ANLCA led by the bust Plug-n-play model allows to launch a trial in 4 weeks with NO Cash Investment, NO IT development Vice–Chairman, HonourableMr. Bola Ashiru–Balogun, with the Treasurer, Mr. AfolabiAzeez and the Fi- and minimal resource requirement for the airline. As there is NO cost involved to the airline, the revenue nancial Secretary, Obanla Alex, they said that they reached the agreement with NAHCO in the interest of flows straight to their bottom line. Our ground breaking ancillary revenue solutions have already gen- the overall development of the industry and in realization of the fact that both sides were in this tough erated more than 1% of revenues of our partner airlines. For one of our airline partners, we generated economic situation together. USD 2 in incremental “profit” per passenger boarded. Optiontown offers brand-new, customized travel The MD/CEO, NahcoAviance, Mr. Norbert Bielderman said what happened was in the best spirit of give options; addresses constantly changing travel needs and rewards advantageous travel purchase behav- and take. He thanked everyone involved in the negotiations for their maturity while particularly thanking iors. Our Upgrade Travel Option (UTo), Empty Seat option (ESo), Flexibility Reward option (FRo), Multiple the ANLCA representatives for their professionalism. Booking Option (MBo) and Preferred Flight Option (PFo) are very popular products in the suite of travel Mr.Bielderman urged the association’s leaders to always feel free to approach NAHCO whenever issues products being capitalized by airlines. Optiontown’s latest innovation is the revolutionary “Flight Pass that concern both parties arise. Option” that helps to convert customers into Subscribers, generating Perpetual Revenue Streams and On his part, Mr. Bola Ashiru–Balogun said this was the first time in a long while that NAHCO would get its Perpetual Customer Loyalty. The Flight Pass Option brings a paradigm shift in selling a dynamic booklet acts right; and that the push by the Company for the tariff increase was so organized. of flight coupons for multiple trips, yet still highly customizable to suit the needs of different customer nachco aviance - AACO Partner since 2014 segments (leisure, SME, corporate etc.). We believe, this will bring a revolution in aviation sales by enabling airlines to gain market share and competitive advantage. With these innovative ancillary travel products offered by Optiontown, travel industry can improve their business performance by generating incremental revenues, enhancing customer satisfaction, increasing load factor and decreasing operation- al costs. Optiontown is an innovator in the realm of travel options. Our technology has been developed following extensive research at the Center of Transportation Studies, MIT Boston. Optiontown - AACO Partner since 2011 Daily news on www.aaco.org Issue 99 - June 2015 95 Our Partners News

Quali-audit is an independent Audit Organization (AO) accredited by IATA to Sabre enhances virtual payment solution with new pre-funded cards: conduct IOSA and ISAGO audits. As Endorsed Training Organization (ETO), Quali- Sabre Corporation together with payment services partner Confermaan- audit provides IOSA auditor training for operators. Conducting IOSA audits since nounced the North American launch of a pre-funded virtual payment solu- 2006, and also with a large range of operational assistance and training for operators, our experts have tion for travel buyers, building upon the payment and settlement capabilities of Sabre Virtual Payments. worked in the continuity of the IOSA program. Our team now counts more than 56 auditors. Used by an increasing number of corporations and travel management companies, Sabre Virtual Payments For the first semester, Quali-audit has performed thirty IOSA audits, near than ten trainings and safety automates the assignment of a unique virtual credit card number to each travel segment. By adding a pre- evaluation for operators in different regions. funded payment option, travel buyers now have the flexibility to fund their own cards and do not need to Quali-audit is proud to perform in 2015 the IOSA audit of the following AACO members: Middle East set up an additional line of credit with their bank. The new pre-funded capability can also be applied to trips Airlines, Royal Air Maroc and Saudia. that are made by travelers in the GetThere corporate booking solution. Announced in March, the integra- Developinga key change to theIOSA program, IATA put a step forward with the Enhanced IOSA model, tion of Sabre Virtual Payments with GetThere is an industry-first and will be featured along with the pre- assisting operators in a more effective evaluation of operational safety and security practices, and add- fund option at the upcoming Sabre Connect 2015 customer summit being held June 2-4 in Las Vegas. ing value to the IOSA experience. Airlines have thus undertaken this challenge throughout a necessary Sabre’s Flight Explorer expands tracking data to increase global coverage: Sabre Corporation has enhanced preparation. Some of them have already volunteered to undergo their first E-IOSA audit before its man- its AirCentre Flight Explorer solution using Planefinder data, offering additional coverage globally for aircraft datory requirement by September 2015. position information as part of the Next Generation Air Transportation System (NextGen). Quali-audit has already conducted Enhanced IOSA audits near Saudia, Nordavia, Surinam airways, and- Planefinder receives next generation tracking technology (Automatic Dependent Surveillance Broadcast will soonly performthe E-IOSA audit of Air Botswana. System – ADS-B) data feeds used by aircraft to transmit their name, position, call sign, status and more. The Besides, as a significant partnership,Quali-audit hasconcluded a close collaboration with Saudia in staff addition of Planefinder data furthers Sabre Flight Explorer’s expansion of flight-tracking capabilities toward allocation of IOSA auditors. Saudia will have trained and maintained IOSA auditor with Quali-audit. complete global coverage, particularly in Europe, Asia Pacific, and Central and South America where cover- Our next IOSA Auditor training session in Paris CDG: 5 - 9 October and 7 - 11 December 2015. age was often limited to proprietary flight data. ADS-B data enables airlines to track aircraft with increased Upon request, trainings can be realized on the operators’ premises. awareness of conditions that could impact flights, resulting in reduced air traffic delays and increased fuel For any queries concerning Quali-audit, please contact our Business Development Director, and flight time efficiency. The airline industry continues to evolve from a ground-based radar system to the Mr. Joris DUTHEIL, E-mail: [email protected] more reliable ADS-B based system, which in the future will be satellite-based. Tel: +33(0)1 74 25 41 88; Mob: +33(0)6 62 15 87 13 Quali-audit - AACO Partner since 2008 Sabre to acquire Abacus International:Sabre Corporation announcedthat it has entered into a definitive agreement to acquire Abacus International, the global distribution system (GDS) in the Asia-Pacific region. Rockwell Collins begins worldwide customer evaluation of ARINC Abacus is currently owned by a consortium of 11 Asian airlines along with Sabre, which has a 35% stake in MultiLinkSM flight tracking service: Rockwell Collins and nine undis- the company. Sabre will purchase the remaining portion of Abacus for net cash consideration of USD 411 closed airlines from around the world have launched a trial program million. Abacus serves more than 100,000 travel agents across the Asia-Pacific region’s 59 markets and for the company’s new ARINC MultiLinkSM flight tracking service. The has both global and uniquely local relationships with airlines and hotels, including the leading portfolio of service, which was announced in March, offers a comprehensive and cost-effective global flight tracking low-cost content and Chinese airline content. Separately, the acquisition includes new long-term distribu- solution for the world’s airlines. The airlines testing the program are based in Europe, Asia, Middle East, tion agreements between Sabre and the 11 airline owners of Abacus. Abacus will operate as a region of North America and Latin America and operate both regionally and globally. Sabre Travel Network, and Sabre expects its expanded Asia-Pacific direct presence will benefit Sabre Airline ARINC MultiLink brings together multiple data sources to reliably report the location of an aircraft- any Solutions and Sabre Hospitality Solutions, which already provide mission-critical support to 78 airlines and where in the world. In addition to utilizing Rockwell Collins’ proprietary high-frequency data link (HFDL) thousands of hotels throughout the Asia-Pacific region. Sabre also will continue its partnership to provide performance data, the service merges multiple other data sources including ADS-C, ADS-B, ASDI radar technology services to INFINI, a local Japanese GDS. Subject to regulatory approvals and other closing condi- data, EUROCONTROL position information and ACARS position reports, many of which the airlines al- tions, the transaction is expected to close in the third quarter of 2015. ready generate, to provide a highly economical solution for airlines. Aeroflot selects Sabre Intelligence Exchange technology to accelerate data-driven growth:Aeroflot has In addition, the service is designed to support flexible position reporting frequency, enabling it to meet signed a new agreement with global technology provider, Sabre Corporation to implement Sabre’s Intel- industry recommendations of providing position reports at least every 15 minutes. Airlines can also ligence Exchange solution. Through Intelligence Exchange, Sabre has addressed one of the airline industry’s receive notifications when an aircraft has unexpectedly stopped reporting positional data or when the biggest challenges – how to gather, analyze and take action on disparate data from across an airline’s opera- aircraft has deviated from its expected path. tions. Solving this challenge drives immediate results by enabling the airline to generate incremental rev- RwandAir chooses Rockwell Collins’ ARINC airport systems to improve operations and enhance pas- enue, reduce costs and deliver a truly personalized experience to air travelers. senger processing: RwandAir has selected Rockwell Collins’ ARINC common use passenger processing LATAM Airlines Group and its affiliated carriers select Sabre technology to unify and power its passenger systems (CUPPS) and related technologies to support the airline’s passenger growth. reservations:LATAM Airlines Group S.A. has selected Sabre Corporation as the technology provider for its Under a new, five-year contract, RwandAir will implement the company’s ARINC vMUSE™ common use combined reservation system, in addition to delivering integrated software to transform the way the airlines check-in platform, ARINC AirVue Flight Information Display System (FIDS) and AirDB 7, the latest genera- operate. In 2012, LAN Airlines’ and its respective affiliates implemented the SabreSonic® Customer Sales & tion ARINC Airport Operational Database (AODB) system. Service (CSS) passenger reservation system. As part of this new agreement, Brazil-based TAM Airlines will Rockwell Collins - AACO Partner since 2002 migrate to the SabreSonic CSS technology, creating a unified reservation system for the entire airline group. Sabre - AACO Partner since 2002 Daily news on www.aaco.org Issue 99 - June 2015 97 Our Partners News

Seabury Group acquires Argentina-based Aerospace Information Technolo- Etihad Airways chooses SITA for comprehensive bag tracking: Etihad gy Company Volartec: Seabury Enterprise Solutions LLC (“SES”) has acquired Airwayshas chosen SITAfor end-to-end baggage tracking services. Powered Aero Transport Engineering Consulting S.A. (“Volartec”). Volartec is a profes- by SITA’s Air Transport Industry Cloud, SITA‘s new BagJourney service gives sional services and IT company that provides integrated and flexible Maintenance, Repair and Overhaul Etihad Airwaysa cost-effective and accurate way to track passengers’ bags software solutions for the Aerospace industry. anywhere along their journey, from check-in to the destination airport. SES will add Volartec’sAlkym® suite of products, which integrates control and management software for Abu Dhabi Airports deploys new automated boarding pass technology from SITA: Abu Dhabi Airports aircraft maintenance, to Seabury’s aviation software tools, such as Enterprise Performance Analysis Sys- announced it will deploy a new traveler document authentication system using boarding pass valida- tem (“EPAS”), which enables commercial airlines to improve financial performance one flight at a time, tion technology from SITA. Airport iValidate will enhance security, accelerate passenger processing and and Contract Performance Analysis System (“CPAS”), a highly configurable and efficient software for reduce waiting times for passengers by automatically verifying all types of boarding passes, including defining and applying contractual terms and conditions for transactions in order to generate an expected mobile boarding passes and home-printed passes. The use of iValidate at Abu Dhabi International Airport financial value. Seabury’s IT solutions and software tools serve the needs of a global network of clients in will be the first deployment of the product in the Middle East. Aviation, Aerospace, Cargo/Global Trade, FX Trading and Human Capital. Abu Dhabi Airport selects SITA technology for new 30 million passenger terminal: SITA’s advanced tech- Seabury - AACO Partner since 2008 nology will set the foundation for Abu Dhabi International Airport’s new Midfield Terminal, which will serve an estimated 30 million passengers annually from July 2017. In a five-year deal,SITA will provide a full range of integrated airport solutions. This includes SITA’s next generation airport management sys- tem, common-use passenger processing platform, automated boarding gates, flight information display systems and baggage management services. South India’s busiest airport selects SITA for passenger processing: Kempegowda International Airport, Bengaluru (KIAB) which serves India’s “Silicon Valley” tech hub, will use passenger processing technology from SITA to help manage its more than 15 million annual passengers. Passengers at Clinton National Airport welcome improvements to security lines: Passengers at LIT in Little Rock, Arkansas are benefiting from a new technology introduced to streamline security processing: Airport iQueue, provided by SITA. SITA - AACO Partner since 2008 Shell Aviation becomes exclusive supplier at Saarbrücken, Germany: SITA OnAir’s EFB Weather solutionavailable for all Aircraft:EFB Weather Shell Aviation has announced the expansion of its refuelling network in is a new SITA OnAir product that sends live weather data, including turbu- Germany as the exclusive supplier at Saarbrücken Airport (SCN). The air- lence, thunderstorms and icing information, directly to Electronic Flight port is located about 16 kilometres outside Saarbrücken, the state capital Bags (EFBs). EFB Weather gives pilots the necessary information to track and avoid bad weather so they of Saarland in the South West of Germany, bordering Luxembourg and France. A dynamic regional con- can re-route the flight to make it more efficient. Passengers benefit from a more comfortable and safer nection point, it serves a number of scheduled and charter flights, connecting business hubs and holiday journey. destinations. Shell will provide Jet A1 and Avgas 100LL and implement its Aviation Centre of Excellence EFB Weather gives the airline a full range of benefits for its connected aircraft. In the cockpit, it offers (ACE) programme at the airport, where passenger numbers are expected to increase by 20% in 2015. pilots with a graphically optimized view, specifically designed for commercial pilots, of live weather infor- Shell Aviation becomes the exclusive supplier at Saarbrücken Airport in Germany expanding its European mation for the entire flight. It provides a 4D view of the weather, covers both the horizontal and vertical refueling network. Shell Aviation currently serves about 1,000 European customers in 17 European coun- planes, as well as the direction of the weather’s movement. With the whole picture, they can plan the tries. most efficient route to avoid dynamic weather conditions, reducing fuel burn and emissions, and any Shell Aviation’s ACE programme focuses on delivering efficient operations, establishing and maintain- potential damage to the aircraft. This provides clear benefits for flight operations, as well as airlines’ ing high safety standards, utilisingequipment, and providing marketing support through the Shell brand. maintenance teams. In the cabin, EFB Weather makes for safer flights, as well as giving passengers a Shell Aviation customers will be able to benefit from flexible fuel purchasing options either through more comfortable and convenient journey. Bad weather can cause delays and diversions; turbulence is a supply contract with Shell or by presenting their Shell fuel & fly cards for ad-hoc refuelling services. often uncomfortable and it can exacerbate fear of flying. Avoiding bad weather, therefore, improves the Customers will also have access to electronic invoicing via Shell Aviation’s eServe system and dedicated passenger experience. account managers. SITA OnAir has developed EFB Weather to be totally ubiquitous. It is therefore simple for airlines to Shell Aviation- AACO Partner since 2002 equip all their aircraft, despite many having mixed connectivity on different aircraft types. It can operate over either a broadband link or a narrowband ACARS link, using advanced optimization and compression technology. It can also be updated at the gate using a 3G or 4G mobile phone data link. And it is compat- ible with any EFB hardware, including both Apple and Windows devices, as well as the major avionics systems. SITA OnAir - AACO Partner since 2009

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Travelport and Etihad Airways renew full content agreement & include Rich Willis is one of the leading global providers of insurance and reinsurance Content & Branding: Etihad Airways joins over 100 airlines to sign up for Travel- brokerage, risk management, and human capital solutions. Willis operates on port’s Rich Content and Branding merchandising solution. The agreement means every continent with more than 17,000 colleagues working from a global network that Travelport-connected agents worldwide will have continued access to effectively search, compare of 400 offices. and book Etihad Airways fares and offering via Travelport’s industry-leading Travel Commerce Platform. Positioning ourselves in the heart of the specialist insurance capital, the Willis Building is situated directly Etihad Airways has signed up to participate in Travelport Rich Content and Branding – one of the key opposite the Lloyd’s Building in the centre of the financial ‘Square Mile’. components of Travelport’s suite of innovative merchandising solutions for airlines. Travelport Rich Con- The combination of global reach and insurance market focus delivers to AACO members three unique tent and Branding enables airlines to market and retail their products more effectively and fully display advantages: their products and brand propositioning to travel agencies. It includes richer product descriptions and • Customised solutions, tailored specifically to your business needs and regional circumstances graphics, optional or ancillary products for sale and encourages further upselling. • A world-class network of resources to strategically transact and sell your risks in the global marketplace Travelport and Nile Air announce new global full content agreement: Travelport and Nile Air have an- • Your own dedicated team skilled in servicing your programme, in your language, respecting your working nounced the signing of a multi-year, global full content agreement. The new agreement with Nile Air will • culture and time zone enable the 67,000 Travelport-connected agencies worldwide to access fares and inventory, including web In this way Willis meets AACO members’ risk management and insurance transfer needs wherever in the fares, and ancillaries for Nile Air. Additionally, Nile Air has also committed to Travelport Rich Content and world you fly. Branding, which allows airlines to market and retail their products more effectively by controlling how Willis is honoured to represent almost half of AACO’s member airlines and was for many years lead their product is visually presented and described to travel agents. broker to the former G.C.C. Airline Insurance Programme . We have long-standing relationships with Travelport and Air Go Egypt sign a new multi-year global full content agreement: Travelport and Air Arab carriers some of which exceed 25 years and it has been an exciting journey to be playing our part in Go Egypt have announced a new multi-year, global full content agreement. As part of the new agree- exceptional growth of airlines and aviation in your region. ment, Air Go Egypt will now offer 67,000 Travelport-connected agencies worldwide access to its fares Today there are new challenges of market price volatility following well-publicised accidents that have and inventory, including web fares and ancillary offerings. The carrier has committed to participate in affected both All Risk and War Risk insurers alike. Willis is speaking daily with key insurers to encourage Travelport Rich Content and Branding – one of the key components of Travelport’s suite of innovative moderation in response and recognition of a market with over-supply of capacity. merchandising solutions for airlines. Further information can be found at www.willis.com Travelport - AACO Partner since 2000 Willis - AACO Partner since 2014 Cloud collaboration, sensors and digital commerce are driving rapid transforma- tion of air cargo carriers into dynamic, data-driven businesses, reports Unisys: Unisys Corporation announced that air cargo industry experts participating in the Unisys Cargo User Group (UCUG) community report that disruptive innovations driven by cloud computing collaboration, sensor technology, and digital business are radically transforming the way air cargo organizations work and integrate in the supply-chain. This is creating a fast-growing gap be- tween leaders and laggards. Mr. Christopher Shawdon, VP Logistics Solutions for Unisysidentified three key trends based on discussions at the recent 61st meeting of the Unisys Cargo User Group held in April: 1) Sensors and integration drive insights and help businesses manage by exception 2) Cloud-based models speed technology change and enhancements 3) Electronic-supply chains enable more dynamic and optimized business Unisys logistics solutions are used by carriers that move approximately 25% of the world’s air cargo. Carri- ers using the Unisys Logistics Management System include Air Canada, Gollog, MASkargo, Modern Logistics, and TravelSky on behalf of Chinese carriers, who collaborate via the Unisys Cargo User Group. This group of clients works closely with Unisys to discuss industry issues and to identify and prioritize enhancements and upgrades to the Unisys services. TravelSky gears up for growth in China’s air travel sector with additional Unisys ClearPath technology:Uni - sys Corporation announced that TravelSky has signed a new contract with Unisys to provide expanded pro- cessing power for TravelSky’s reservation and distribution systems in China’s rapidly growing aviation sector using Unisys’ advanced ClearPath Dorado technology. Under the contract, Unisys will provide and implement a high-end ClearPath Dorado system as well as additional storage, virtual tape library and OS 2200 operating- environment upgrades. The power of the implementation will be further boosted using enhanced automa- tion and Unisys Extended Transaction Capacity (XTC) clustering capability to link up to six ClearPath systems and significantly increase transaction processing capacity and redundancy compared to a single–host system. Daily news on www.aaco.org Unisys - AACO Partner since 2014 Issue 99 - June 2015 101 AACO & RTC CALENDARS AACO & RTC Calendars AACO CALENDAR AACO RTC CALENDAR June 2015 June 2015 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 1 2 3 4 5 6

7 8 9 10 11 12 13

7 8 9 10 11 12 13 Live Animals Regulations / Amman AACO Joint Purchasing of Consum- ables Delivery Team Meeting / Cairo Cost Reduction Strategies/ Abu Dhabi

14 15 16 17 18 19 20 14 15 16 17 18 19 20

21 22 23 24 25 26 27 21 22 23 24 25 26 27

28 29 30 28 29 30

July 2015 August 2015 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 1

2 3 4 5 6 7 8 Coaching & Mentoring / Amman 5 6 7 8 9 10 11 Advanced Airline Sales Strategies / Tunisia 9 Effective delegation skills 10 11 12 13 14 15 12 13 14 15 16 17 18 / Cairo Efficient Strategic Planning / Cairo 16 17 18 19 20 21 22 19 20 21 22 23 24 25 Revenue and Network Planning for Airline Managers / Amman 23 24 25 26 27 28 29 26 27 28 29 30 31 Customer Service & VIP Handling / Cairo 30 31 The Management of Mis- AACO Jet Fuel Tender AACO Aviation Fuel behaviour / Cairo 2016 - Evaluation of Technical Group Steer- Suppliers Committee ing Board Meeting / Aviation Security for Airline Staff (Foundation) / Tunisia Meeting / Beirut Beirut Aviation Emergency Response & Crisis Manage- ment Foundation / Tunisia

For additional information, kindly contact Mr. Mohamed Osman / Senior Manager RTC at [email protected]

Daily news on www.aaco.org Issue 99 - June 2015 105 OUR MEMBER AIRLINES & INDUSTRY PARTNERS Our Member Airlines, & Industry Partners AACO MEMBER AIRLINES AACO INDUSTRY PARTNERS AACO member airlines were established in the following sequence: 1. Egypt Air (1932) 2. Iraqi Airways (1945) 3. Middle East Airlines (1945) 4. Saudia (1945) 5. Syrian Arab Airlines (1946) 6. Sudan Airways (1946) 7. Tunis Air (1948) 8. Gulf Air (1950) 9. Air Algerie (1953) 10. Kuwait Airways (1954) 11. Royal Air Maroc (1957) 12. Yemen Airways (1962) 13. Royal Jordanian (1963) 14. Libyan Airlines (1964) 15. Emirates (1985) 16. Nouvelair (1989) 17. Oman Air (1993) 18. Qatar Airways (1995) 19. Palestinian Airways (1995) 20. Tassili Airlines (1997) 21. Jordan Aviation (2000) 22. Afriqiyah Airways (2001) 23. Etihad Airways (2003) 24. Air Arabia (2003) 25. Air Cairo (2003) 26. flynas (2006) 27. Nile Air (2006) 28. Rotana Jet Aviation (2010) 29. flydubai (2008) 30. Air Go Egypt (2010)

Daily news on www.aaco.org Issue 99 - June 2015 109 References: About AACO: The Arab Air Carriers Organization “AACO”, established in 1965 The news included in this bulletin are collected from various sources as fol- within the framework of the Arab League of States, is the Regional Association lows: of the Arab Airlines who have their homebase in countries members of the AACO ATW Online Arabian Aerospace Arab League. IATA Innovata Arab News ICAO GreenAir Online MENAFN AACO’s Vision is to stand out globally as THE association that serves with dedi- EU institutions AMEInfo Arabian Business cation the Arab airlines and be instrumental in dealing with an evolving avia- Industry press releases Airports’ websites Gulf News tion industry. Khaleej Times ch-aviation Others... Where the news item was not based on various sources, AACO clearly men- AACO’s Mission is to serve the Arab airlines, represent their common interests tions the source. and facilitate, in a manner consistent with all applicable competition and other When the source is AACO, other parties may publish the information provided laws their cooperation so as to improve their operational efficiencies and- bet by AACO, but with reference to the source. ter serve the travelling public. Definitions: AACO’s Objectives: 1. Geographical Areas: • To support the Arab airlines’ quest for highest safety and security stan- Americas: Includes North, Central, and South American countries. dards. Mid Asia: Includes the following countries: Bangladesh, India, Iran, Afghani- • To support the Arab airlines’ quest for developing their environmental poli- stan, Pakistan, Sri Lanka, Nepal, Maldives. cies for processes in harmony with the environment. Australasia: Includes the following countries: China, Hong Kong, Malaysia, Tai- • To actively contribute in the development of human resources. wan, Myanmar, Cambodia, Vietnam, Philippines, Singapore, Thailand, Japan, • To interact with the regulatory bodies to support and protect the interests Indonesia, Australia. of the Arab airlines. Europe: Includes the European countries. • To launch joint projects between member airlines with the objective of Arab World: Includes the Arab countries. achieving efficiencies that will lower their costs in a manner consistent with Sub-Saharan Africa: Includes the African countries except Arab countries in all applicable competition and other laws and that enhances the members’ North Africa which are: Egypt, Sudan, Libya, Tunisia, Algeria, and Morocco. best practices. • To provide forums for members and for industry partners to enhance the 2. Abbreviations: knowledge base. RPK: Revenue Passenger Kilometer • To reflect the positive image of The Arab Airlines Globally. ASK: Available Seat Kilometer. PLF: Passenger Load Factor. RTK: Revenue Tonnes Kilometer. ATK: Available Tonnes Kilometer. WLF: Weight Load Factor. For any comments or suggestions, please e-mail: 85 Anis Nsouli St., Verdun Mrs. Manal Fares P.O.Box: 13-5468 3. All statistics in this bulletin represent the absolute number of passengers Senior Manager - Industry Affairs 2044-1408 Beirut– Lebanon unless mentioned otherwise. [email protected] Phone: 00961-1-861297/8/9 [email protected] Fax: 00961-1-863168 4. Connotations: Or To and From the Arab world: indicates traffic between the Arab world and Mr. Rashad Karaky other world regions. Senior Manager - Economics, IT & Technical Within the Arab world: indicates traffic within the Arab world region Management To, From, and Within the Arab world: indicates the sum of the above [email protected]

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