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Airways Aviation 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.
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