Official Monthly Bulletin of AACO

Issue 88 - Jul 2014 Official Monthly Bulletin of AACO Arab world marks an increase of 5.7% AVIATION WITHIN THE ARAB WORLD GLOBAL ARAB AVIATION in May 2014 in international passenger numbers - p. 7 GROWTH p: 10 SPREADING OUT p: 24 PARTNER AIRLINES p: 44 - 57

Etihad Airways and Alitalia agree on ARAB AIRLINES ECONOMICS p: 11 TOURISM p: 32 INDUSTRY PARTNERS p: 58 - 81 the principal terms and conditions of a proposed transaction - p. 11 NEW APPOINTMENTS p: 12 COLLABORATION p: 32 AACO & RTC CALENDARS p: 82 - 85 EXPANSION p: 12 ENVIRONMENT p: 33 AACO MEMBERS & PARTNERS p: 86 - 89

ICAO expects tracking standard within LAURELS p: 15 REGULATORY TONE p: 34 two years - p. 40 TECHNOLOGY & E-COMMERCE p: 16 AN AVIATION MARKET IN FOCUS: IRAQ p: 38 TRAINING p: 18 WORLD NEWS p: 40 MRO p: 18

ARAB AIRPORTS p: 19

ATM p: 21

Daily news on www.aaco.org Issue 88 - Jul 2014 After months of discussions and On the domestic front, Royal Air Maroc has linked Casablanca with Er- speculations, Etihad Airways and rachidia and EgyptAir Express started operating to Marsah Matrouh. Alitalia have agreed the principal In May, seats within the Arab world have seen an increase of 5.6% terms and conditions of a pro- compared to May 2013 having Qatar Airways offering the highest posed transaction where Etihad number of seats within the Arab world in terms of international seats, will acquire 49% equity stake in followed by Emirates and EgyptAir respectively. Alitalia. The airline has as well expanded its codeshare arrange- Three new CEOs have been appointed to head three Arab airlines ments with Air Seychelles to in- last month; Capt. Khaled Taynaz has replaced Eng. Khaled Ben Alewa clude Air Seychelles’ new services as Libyan Airlines’ CEO, H.E. Eng. Saleh ben Naser Aljassar is the new between Paris and Abu Dhabi. Director General of Saudia replacing H.E. Eng. Khaled Almolhem and Collaborating with other airlines he will assume his position starting 3 August 2014, and Mrs. Saloua as well during the past month is Essghaier is now the new President and Chairman of Tunisair replac- Qatar Airways which has expanding Mr. Rabah Jerad. ed its codeshare agreement with oneworld partner Japan Airlines to On the Technology enhancements, Royal Jordanian launched its include Qatar Airways’ flights be- e-freight system in collaboration with CHAMP Cargosystems allow- Foreword tween Doha and Tokyo (Haneda). ing cargo agents to conduct cargo bookings and create airway bills through system website. In addition, Etihad Airways has introduced New aircraft have joined the Arab mobile boarding passes on select routes, and partnered with Google airlines’ fleet this month whereby to make it more convenient for passengers to view the airline’s flight Etihad Airways received an A321- schedules and fares on the search engine’s flight search tool, while 231 and an A320-200; the airline’s Qatar Airways has developed a new online system that allows passen- 100th and 101st aircraft, while Qa- gers to print their own baggage tags before arrival at the airport. tar Airways Cargo welcomed a new Boeing 777 freighter. On the environment front, the European Commission announced that auctioning of aviation carbon allowances is expected to start in Sep- Traffic within the Arab tember following the recent changes to the EU ETS in April which is world region has seen some now limited to flights over European Economic Area (EEA) airspace. enhancements with Emirates adding 28 flights across the region, A very important issue that has seen a lot of debate lately at the glob- Gulf Air increased its flights to al and regional fronts is the air passenger rights regulations. While Cairo, and flynas launched flights ICAO has started its work on developing guiding principles to states to Cairo International Airport and for the development of air passenger rights regulations following increased flights to Jeddah during ICAO 38th Assembly resolution in this regard, the EC proposal on the the Holy month of Ramadan. EU 261/2004 is still under debate between EU institutions where no agreement is expected before the end of the year. Meanwhile in the

Daily news on www.aaco.org Issue 88 - Jul 2014 5 UK, two court rulings in June will have adverse effect on airlines. The OVERALL TRAFFIC - ARAB WORLD first ruling, involving Jet2, confirmed that normal technical problems that cause flight disruptions such as component failure and general We estimate international passenger numbers to, from, & within the wear and tear should not be considered “extraordinary circumstanc- Arab world to have increased by 5.7% in May 2014 compared to May es”. The second ruling, involving Thomson, confirmed that six years 2013, which follows an increase of 12% in April 2014 compared to is how far back passengers can go when claiming compensation for April 2013. disrupted flights. These two rulings cause serious concerns to carriers Monthly International Passenger Numbers' Change To, From and Within the Arab World and could also have an effect on the discussions taking place in the Jun 13 to May 14* compared to same month in previous year EU on the revision of EU regulation 261/2004. 20%

Iraq is our country of focus for this issue of the Nashra. With a popu- 15% lation of 36 million people, 3.8 million passengers used Iraq’s airports in 2013, which links 40 cities worldwide. The highest share of traffic 10% from Iraq was with the Arab world, noting that the Baghdad-Beirut 5% route witnessed the highest number of seats offered from Iraq in May 0% 2014. More details are available on Page 38. -5%

Effect of Ramadan Effect of Adha Cyclicality YoY Growth 12-Month Average Growth Source: AACO, IATA *Estimated

In May 2014, AACO members increased the number of their offered seats to, from, and within the Arab world by 13%, while other airlines decreased their number of seats offered by (12%), leading to 5.7% year-on-year increase in the total number of seats offered.

Daily news on www.aaco.org Issue 88 - Jul 2014 7 AVIATION WITHIN THE ARAB WORLD Aviation in the Arab World GROWTH PASSENGER TRAFFIC International passenger numbers within the Arab world are estimated to have Monthly International Passenger Numbers' Change Within the Arab World increased by 2.4% in May 2014 compared to May 2013 following an increase Jun 13 to May 14* compared to same month in previous year of 14.5% in April 2014 over April 2013. 20% Passenger traffic within the Arab World May 14* over May 13 15% Within Arabian Peninsula 4.6% Within Near East (0.7%) 10% Within North Africa 29.5% 5% Between Arabian Peninsula & Near East (1.1%) 0% Between the Near East and North Africa 6.7% Between Arabian Peninsula & North Africa (8.2%) -5% Source: AACO, IATA *Estimated Effect of Ramadan Effect of Adha Cyclicality International Passenger Numbers' Change Within the Arab World Feb14-Apr14 & Mar14-May14* compared to same period in previous year YoY Growth 12-Month Average Growth 35% Source: AACO, IATA *Estimated

30% 25% ARAB AIRLINES ECONOMICS 20% Etihad Airways and Alitalia confirmed that they have agreed the principal 15% terms and conditions of a proposed transaction: Etihad Airways and Alitalia confirmed that they have agreed the principal terms and conditions of a pro- 10% posed transaction whereby Etihad Airways will acquire a 49% equity stake in 5% Alitalia. The airlines will now move to finalise the transactional documents, that will 0% include the agreed upon conditions, as soon as possible.The conclusion of the within within N investment is subject to final regulatory approvals. Arabian within N East N East Pen Africa Arabian N East N Etihad Cargo posts record April and May 2014 tonnage: Etihad Cargo uplifted Feb14-Apr14 Africa N Africa Pen Arabian record cargo tonnage in April and May 2014. In April, Etihad Cargo moved Mar14-May14* Pen 44,730 tonnes of cargo around the world, 30% more than in the same period Source: AACO, IATA *Estimated last year (34,352 tonnes). The month of May also saw an increase in cargo tonnage flown across Etihad Passenger numbers within the Arab world reported a 14.1% growth between Cargo’s network with 48,869 tonnes of freight carried, up 31% on May 2013 February 14 & April 14 compared to same period in the previous year. (37,403 tonnes), and an increase of 9% on the previous month.

Passenger numbers within the Arab world reported a 9.4% increase between March 14 & May 14* compared to same period in the previous year.

Daily news on www.aaco.org Issue 88 - Jul 2014 11 Aviation in the Arab World

Gulf Air increases flights to Egypt: Gulf Air announced that it will increase its NEW APPOINTMENTS flights between Bahrain and Cairo from 10 to 12 flights per week. This follows Libyan Airlines appoints Capt. Taynaz as its new CEO: Libyan Airlines an- negotiations held between the Kingdom of Bahrain’s Civil Aviation Author- nounced that Capt. Khaled Taynaz has been appointed as the new Chief Execu- ity and Arab Republic of Egypt’s Civil Aviation Authority, to increase air traffic tive Officer of Libyan Airlines, replacing Eng. Khaled Ben Alewa, the former rights between the two countries. CEO. Gulf Air’s new schedule to Cairo, effective from 23 July, will see additional flights between Manama and the Egyptian capital. Saudia Airlines announces new Director General: H.E. Eng. Saleh Ben Naser Aljasser has been appointed as the new Director General of Saudia. H.E. Al- EgyptAir resumes Aden flights in August 2014:EgyptAir plans to resume its jasser will commence his new role on 3 August 2014. services to Aden on 1 August. The airline plans to serve the route 3 times a week on board an Embraer 170. New Chairman & President heads Tunisair: Mrs. Saloua Essghaier has been appointed as the new Chairman & President of Tunisair. Mrs. Essghaier replac- EgyptAir Express launches two weekly flights to Marsa Matrouh:EgyptAir es Mr. Rabah Jerad, the former Chairman & President of the airline. Express started operating 2 weekly flights to the costal Egyptian city of Marsa Matrouh on 15 June. EXPANSION Addition of Cairo expands flynas’ Egypt route network:flynas announced the ROUTES launch of its flights to Cairo International Airport as part of its expansion plans Weekly Aircraft in Egypt. With the launch of Cairo, flynas is now serving 7 destinations in the Airline From To Date Freq. Type country. Flights are being operated using an Airbus A330 12 seats in Business Class, 24 AT Casablanca Errachidia N/A 3x ATR72 in Economy Plus, and 291 in Economy Class and A320 8 seats in Business and Doha 42x to 49x 156 in Economy Muscat 14x to 21x Source: The Saudi Gazette EK Dubai 1 Dec. 14 N/A Kuwait 35x to 42x flynas operates additional flights with a capacity of 29,520 seats to Jeddah Bahrain 21x to 28x during the Holy Month of Ramadan: flynas announced the addition of 29,520 seats on board its 540 flights during Ramadan with an aim to accommodate Aden 1 Aug. 14 3x E170 MS Cairo the increasing traffic on its flights to Jeddah. flynas is also providing 143,000 Marsa Matrouh 15 Jun. 14 2x N/A meals on 939 domestic and international flights during this Holy Month as a gesture for its guests. GF Bahrain Cairo 23 Jul. 14 10x to 12x N/A flynas is operating a fleet of 27 aircraft including 19 aircraft with a Business XY A330 & Class Cabin. Riyadh Cairo Jun. 14 7x A320 CAPACITY AND DEMAND Royal Air Maroc launches domestic link to Errachidia:Royal Air Maroc has Passenger Air Services Within the Arab World - May 2014 - SRS Analyzer launched a new domestic service that links Casablanca with Errachidia. The AACO members increased the number of seats offered within the Arab world airline will operate three weekly flights on the route using ATR 72 turboprops. by 15.3% compared to May 2013 whereas other airlines decreased that number by (51.5%), leading to a 5.6% year-on-year increase in the total number of Emirates adds 28 flights across Middle East network:Doha is to become Emir- seats offered within the Arab world. ates’ best served destination with seven daily flights going into the Qatari Available Seats within the Arab world for international and domestic routes capital from 1 December. constituted 24.7% and 10.5% respectively of the total available seats to, from, The extra flights into Doha are part of a 28 flight boost to the airline’s Middle and within the Arab world in May 2014. East services. Muscat will go from two to three flights a day, Bahrain from three to four daily services and Kuwait will increase from five to six flights daily.

Daily news on www.aaco.org Issue 88 - Jul 2014 13 Aviation in the Arab World Capacity* of Top 10 Carriers within the Arab World (Int’l Operations) LAURELS Airline ASKs (Million) Departures Seats EK 1,052.4 1,843 663,844 Emirates Group Security awarded TAPA TACSS certification:Emirates Group Security has become the first aviation and airline security organization in the MS 949.9 3,139 612,924 region to be awarded with the TAPA (Transported Asset Protection Associa- SV 794.8 2,565 516,892 tion) Air Cargo Security Standard (TACSS) certifications for its cargo facilities. QR 782.9 4,216 764,010 TACSS is a new TAPA certification program which consolidates security solu- FZ 547.6 2,695 509,355 tions for air cargo, including best known methods from industry and government compliance programs. The TACSS process asseses threats such as theft EY 472.8 2,232 347,904 and use of cargo for terrorist purposes. TACSS can be used with other inde- G9 433.2 2,080 336,960 pendent, regulatory and TAPA requirements. RJ 311.6 1,979 236,602 All of Emirates’ cargo facilities, for both SkyCargo and dnata, are now TACSS GF certified. These include Freight Gate 1 at Cargo Terminal Operation; Freight 269.4 2,868 407,024 Gate 3 & 5 at the Free Zone Logistics Centre); Cargo Mega Terminal (CMT) & XY 260.0 1,024 188,246 Emirates Cargo Centre (ECC); Emirates Group Security/Transguard (including Grand Total 8,103.1 35,992 6,372,250 Valuable Handling, Cash in Transit, Cash Management Centre); Freight Gate 6 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer at Dubai Flower Centre); and Freight Gate 8 at Dubai World Central. FLEET Etihad Airways wins ‘Best Large Call Centre’ accolade at Middle East Call Etihad Airways receives its 100th and 101st aircraft:Etihad Airways took deliv- th st Centre Awards 2014: Etihad Airways has been honoured for the third con- ery of its 100 and 101 aircraft on the same day. secutive year at the INSIGHTS Middle East Call Centre Awards 2014. The airline The one hundredth aircraft, a new Airbus A321-231 (registration A6-AEC), was received the ‘Best Large Call Centre’ award for its Al Ain Contact Centre during delivered from the Airbus Finkenwerder facility in Hamburg. a gala ceremony in Dubai, attended by more than 300 call centre profession- The airline now operates three Airbus A321, with seven more on order. This st als from across the Middle East. The centre previously won the ‘Best Facilities’ A321 delivery is joined by the airline’s 101 aircraft, an Airbus A320-200 (reg- title for two years in a row at the INSIGHTS Middle East Call Centre Awards in istration A6-EIX). Both aircraft are equipped with sharklets, which are blended 2012 and 2013. winglets at each wingtip, designed to enhance the payload-range performance, allowing a significant reduction in fuel-burn. Etihad Airways honoured at Ireland aviation awards for environment and The airline will take delivery of its first Boeing 787-9 and Airbus A380 aircraft sustainability efforts: Etihad Airways was named winner of the ‘Sustainability in October and December of 2014 respectively. & Environment Award’ at Ireland’s inaugural Aviation Industry Awards 2014. The awards, sponsored by the Irish Aviation Authority, were launched this year Qatar Airways Cargo recieves new Boeing 777: Qatar Airways Cargo recently to celebrate excellence within the country’s aviation sector, with winners be- took delivery of its sixth Boeing 777 freighter. ing announced during a gala ceremony in Dublin, `attended by more than 500 The Qatar Airways Cargo B777 freighter has a payload capability of 102 metric senior aviation professionals. An expert panel of judges selected Etihad Air- tonnes. ways as winner of the ‘Sustainability & Environment Award’ in recognition of Source: The Peninsula the airline’s success in “significantly improving sustainability and environment performance in the sector” through a diverse range of CSR initiatives, run in- Tunisair to reinforce its fleet with new aircraft:Tunisair fleet will be rein- ternally and in collaboration with external partners over the past 18 months. forced next November 2014 with a new aircraft type A320, Tunisair Chairman Recent achievements have included improved fuel efficiency and reduced & President, Mrs. Saloua Essghaier, told TAP correspondent in Erbil. carbon emissions through optimised flight planning techniques and the use of By 2017, the fleet will be reinforced by 8 other aircraft, including 6 Airbus A lighter, more durable containers to reduce aircraft weight, as well as significant 320 and two aircraft type A330, she added. investments in modern, more efficient aircraft. Partnership projects have in- Source: TAP cluded BIOjet Abu Dhabi, launched in partnership with Boeing, Takreer, Total and the Masdar Institute of Science and Technology to support a sustainable aviation biofuel industry.

Daily news on www.aaco.org Issue 88 - Jul 2014 15 Aviation in the Arab World

Etihad Airways honoured for sale and leaseback transaction with Jet Air- Etihad Airways partners with Google:Etihad Airways announced a partner- ways: Etihad Airways has been honoured at Treasury Magazine’s Adam Smith ship with Google to make it more convenient for travellers to view the airline’s Awards 2014 for successfully implementing an innovative sales and lease- flight schedules and fares on the search engine’s flight search tool. back (SLB) transaction worth USD 70 million with Jet Airways. The prestigious Using Flight Search, travellers in the US, Canada, the UK, the Netherlands, awards, which are the largest corporate treasury awards program globally, Spain, France, Italy, Germany, Poland and Ireland will be able to explore and take place each year to celebrate innovation and best practice, with winners compare flights to and from any of Etihad Airways’ 103 destinations, and view for 2014 announced at a gala reception in London, attended by more than 200 live ticket prices for more than 1,400 of the airline’s weekly flights. treasury and finance professionals. Etihad Airways was named winner of the Flight Search can be accessed by clicking on “Flights” on the navigation bar on Judge’s Choice award for providing a unique asset-backed lending solution to Google’s search results page, by going directly to www.google.com/flights, or Jet Airways in 2013, which unlocked liquidity from the Indian airline’s three by entering the flight search terms on Google and then clicking on the spon- pairs of take-off and landing slots at London Heathrow airport. sored unit that appears. Once users are on the Google Flight Search tool, they are able to quickly and Gulf Air awarded three Information Technology ISO certifications:Gulf Air easily conduct searches for different flight routings, use an interactive map to recently became the first airline in the region to be certified with Information explore possible destinations and view live ticket prices. Technology ISO certifications in the three areas of Quality Management, -Ser Once users have selected the flights they want, they can click the “Book” but- vice Management and Information Security Management Systems. ton to proceed to the Etihad Airways website to purchase their tickets with- Following a comprehensive internal and external audit conducted by RINA out having to fill in their flight choices again. Services, a leading classification society, Gulf Air was awarded the ISO 9001 Flight Search can be accessed on tablets, smartphones and desktop comput- Certification in Quality Management, ISO 20000 Certification in Service Man- ers. agement and, for the second year in a row, the ISO 27001 Certification in Infor- mation Security Management System. Qatar Airways launches ‘My Q-Tag’: Qatar Airways has developed a new on- To date, Gulf Air is one of few regional airlines to hold the global ISO certifica- line system for passengers who wish to print their own baggage tags before tion for its information security management system. The national carrier’s arrival at the airport. My Q-Tag enables customers to arrive at the airport and most recent IT achievements include being the first organization in Bahrain proceed directly to the web check-in bag drop counter, where a Customer to introduce Private Cloud Computing in its IT operations that enables it to Service representative will process their already labelled baggage.This process achieve much faster and more efficient business performance, resulting in en- adds a further layer of customer service to the online check-in process by enhanced customer service in every step of passengers’ journeys. abling customers to proceed quickly into the departures area where they can avail of more time to relax before boarding their flights. TECHNOLOGY & E-COMMERCE Royal Jordanian launches e-freight system: Royal Jordanian inaugurated the Etihad Airways introduces new mobile boarding passes:Etihad Airways has e-freight system in collaboration with CHAMP Cargosystems (CHAMP). The introduced mobile boarding passes on select routes for guests using its mobile new system will enable cargo agents to conduct cargo bookings and create online check-in facility. The new program offers increased check-in options, -re airway bills through system website here. duces paper wastage, eliminates the risk of boarding pass loss, and enables the e-freighting is one of the initiatives of IATA’s Simplifying the Business (StB) storage of multiple boarding passes on one mobile device. program launched a few years ago. It has become an industry-wide initiative The new mobile boarding passes will contain the same information as tradi- involving carriers, freight forwarders, ground handlers, shippers and customs tional passes including guest name, seat number, flight number, gate number authorities. It aims to take the paper out of air cargo and replace it with elec- and a barcode which will be scanned by an electronic reader at the departure tronic data and messages. gate. Guests will now be able to receive their mobile boarding passes directly to The e-freight system connects directly with the electronic system that is ap- their smart phone, saved using the Passbook feature on iOS operated devices, or plied at the Jordanian Customs Department and other concerned parties, thus saved and sent to an email address, thus allowing maximum flexibility. easing and accelerating clearance of goods and delivery to the consignee. Roy- The number of Etihad Airways airport gateways equipped with the mobile al Jordanian organized training courses for the local cargo agents to acquaint boarding pass readers will steadily increase as the airline installs the new tech- them with the new system, its services and facilities. nology across its global network. Currently the new feature is available for guests Royal Jordanian has two Airbus A310 dedicated to carrying cargo, each of 35- travelling from Abu Dhabi, London LHR, Manchester, Doha, Colombo, Dammam, ton capacity. It also carries cargo in the holds of its passenger aircraft. Dusseldorf, Frankfurt, Sao Paulo, Istanbul, Minsk, Munich, and Tokyo Narita.

Daily news on www.aaco.org Issue 88 - Jul 2014 17 Aviation in the Arab World TRAINING fault repairs for the aircraft systems and passenger cabins. Etihad Airways started a daily non-stop service between Abu Dhabi and Los Etihad Airways hosts IATA safety workshop in Abu Dhabi:Etihad Airways Angeles on 1 June 2014, using a three-class Airbus A340-500 aircraft. From hosted a global airline safety workshop on behalf of the International Air mid-July a Boeing 777-200LR will operate the route. Air New Zealand has op- Transport Association (IATA). The three-day event concluded at the new Eti- erations from Los Angeles to Auckland, London-Heathrow and Rarotonga. had Airways Centre in Abu Dhabi, with officials from IATA and a number of its Air New Zealand operates an average of five flights a day from Melbourne to airline members discussing the importance of moving toward an Integrated Auckland, Christchurch and Wellington, as well as a seasonal service to Queen- Management System (IMS) to enhance the safety standards of airlines. Intro- stown. ducing such a system would help to ensure compliance with global regula- In addition to Melbourne and Sydney, Etihad Airways’ existing line mainte- tions, including the IATA Operational Safety Audit (IOSA) and the International nance facilities are in Chicago, Dublin, Mumbai, Lahore, London-Heathrow, Civil Aviation Organization (ICAO) annexes, while also consolidating key airline Manchester and Singapore. management systems to create a single platform that covers areas such as health and safety, security, environment and personnel. ARAB AIRPORTS Middle East Airlines orders Airbus A320 full-flight simulator and suite Top 20 Airports by International Seats Offered on Operations To, From, and of training devices from CAE: Middle East Airlines announced that it has Within the Arab World - May 2014 purchased from CAE an Airbus A320 full-flight simulator (FFS), as well as a Top 20 Airports by Int’l Seats Offered on Operations To, From, and Within suite of training devices including one A320 Airbus Pilot Transition trainer the Arab world (APT), one A330 APT and an A330/A320 CAE Simfinity desktop simulator or CAE Simfinity Virtual Simulator (VSIM). Airport Number of Seats Airport Number of Seats The A320 simulator is CAE’s latest model, the CAE 7000XR Series. It will be DXB 6,650,088 IST 845,873 delivered and installed in the new MEA Training Centre in Beirut, Lebanon and DOH 2,927,162 AMM 826,127 will be ready for training at the beginning of March 2015. AUH 2,069,308 CMN 816,043 Launched earlier this year, and leveraging the latest advancements in technology and training capabilities, the CAE 7000XR Series full-flight JED 1,922,668 BEY 763,291 simulator is designed to optimize life-cycle costs and to address new and CAI 1,664,527 LHR 755,469 future training requirements. Enhanced features include a re-designed KWI 1,195,916 TUN 646,721 instructor office with support for mobile devices and real-time data analysis RUH 1,085,844 CDG 609,609 and feedback, embedded training capabilities to address the new FAA regulation related to Upset Prevention and Recovery Training, and the CAE BAH 1,001,529 ALG 563,656 Flightscape Insight™ debriefing station with the Simulator Operational SHJ 978,621 BOM 503,368 Quality Assurance (SOQA) system to assess training effectiveness. The CAE MCT 883,340 DMM 497,875 7000XR Series also introduces the new CAE Sentinel diagnostic application, Source: AACO, SRS Analyzer designed to optimize life-cycle operation by real-time monitoring, preventive and predicative maintenance, and advanced capabilities for support and Passenger and aircraft traffic grows at Queen Alia International Airport in troubleshooting. April 2014: Airport International Group (AIG) announced that Queen Alia In- ternational Airport (QAIA) resumed its positive growth trend for passenger MAINTENANCE, REPAIR & OVERHAUL traffic (PAX) and aircraft movement (ACM) at QAIA during April 2014. During the month of April 2014, PAX surged by 17.7% while ACM increased by Etihad Airways and Air New Zealand agree maintenance deal: Etihad Airways 11.1% compared to the same month last year, registering at 631,479 PAX and will soon perform all scheduled and non-scheduled line maintenance on Air 6,111 ACM respectively. Since the beginning of 2014 and up until April, year- New Zealand aircraft in Melbourne at its Tullamarine engineering facility. In to-date (YTD) PAX figures rose by 13.6% and ACM figures were up by 8.1% return, Air New Zealand is already performing full line maintenance for Etihad as opposed to the same period during 2013, coming in at 2,282,894 PAX and Airways in Los Angeles. 23,153 ACM. The maintenance services to be performed in Melbourne and Los Angeles may include transit, daily and weekly checks, scheduled engineering services and

Daily news on www.aaco.org Issue 88 - Jul 2014 19 Aviation in the Arab World

Passenger and aircraft traffic grows at Queen Alia International Airport in AIR TRAFFIC MANAGEMENT April 2014: Airport International Group (AIG) announced that Queen Alia In- ternational Airport (QAIA) resumed its positive growth trend for passenger NATS signs Memorandum of Co-operation with flydubai:UK air traffic service traffic (PAX) and aircraft movement (ACM) at QAIA during April 2014. provider NATS has signed a Memorandum of Co-operation (MoC) with Dubai- During the month of April 2014, PAX surged by 17.7% while ACM increased by based airline flydubai. The MoC will allow the two organisations to explore 11.1% compared to the same month last year, registering at 631,479 PAX and how their core capabilities can be utilised to deliver significant benefits to the 6,111 ACM respectively. Since the beginning of 2014 and up until April, year- airline’s business. to-date (YTD) PAX figures rose by 13.6% and ACM figures were up by 8.1% The initial focus of the co-operation will examine how NATS can use its exten- as opposed to the same period during 2013, coming in at 2,282,894 PAX and sive operations and global air traffic management (ATM) knowledge to benefit 23,153 ACM. current and future flydubai operations. The agreement will aim to deliver measurable improvements in the safety, ca- Number of passengers increases by 13.79% at Moroccan airports during the pacity and efficiency of flydubai’s flights, in addition to enhancing the airline’s first 4 months of 2014:The number of air passengers rose by 13.79% at Mo- productivity, contingency and growth capabilities, which are part of flydubai’s roccan airports during the first four months of 2014 when compared with the seven focal pillars of programme improvement. same period in 2013. Source: NATS Figures released by Office National des Aéroports highlighted that the number of passengers across Morocco’s airports reached 5,421,162 passengers in the first four months of 2014, compared to 4,764,167 passengers during the same period in 2013. Abu Dhabi International Airport posts record 27.4% passenger traffic increase in May 2014: Abu Dhabi International Airport recorded 27.4% increase in passenger traffic for the month of May 2014. A total of 1,633,700 passengers used Abu Dhabi International Airport last May as compared to 1,282,185 in May 2013. Aircraft movements also increased by 15.8% registering 12,931 movements when compared with 11,162 movements logged in May 2013. Cargo activity handling rose to 66,944 tonnes representing a 24.5% increase when compared to 53,788 tonnes in May 2013. Dubai International tops 5 million passengers in May:Dubai International welcomed more than 5 million passengers during May 2014 despite being reduced to a single runway as the airport’s two runways were consecutively closed for refurbishment. Passenger numbers dipped 2.5% to 5,086,910 passengers in May 2014, down marginally from the 5,218,832 passengers recorded in May 2013. This was achieved despite the number of aircraft movements declining 26.6% to 22,856 movements in May 2014, down from the 31,121 movements recorded during the same month in 2013. During the first five months of the year, passenger numbers rose 9.2% to 29,608,364, up from 27,124,195 passengers during the same period last year. Aircraft movements for the same period dropped 2.6% to 148,784 movements, down from the 152,720 movements recorded in the first five months of 2013.

Daily news on www.aaco.org Issue 88 - Jul 2014 21 GLOBAL ARAB AVIATION Global Arab Aviation

Monthly Passenger Numbers' Change To and From the Arab World SPREADING OUT Jun 13 to May 14* compared to same month in previous year

PASSENGER TRAFFIC 18% Passenger numbers on routes to and from the Arab world are expected to 16% have increased by 6.9% in May 2014 compared to May 2013, after a growth of 14% 11.1% in April 2014 over April 2013. 12% 10% Traffic to and from the Arab world May 14* over May 13 8% 6% With the Americas 7.6% 4% With Europe 1.8% 2% With Mid Asia 17.2% 0% With Far East and Australasia 2.8% With Sub Saharan Africa (9.1%) Effect of Ramadan Source: AACO, IATA *Estimated Effect of Adha Cyclicality

Passenger Numbers' Change To and From the Arab World YoY Growth 12-Month Average Growth Feb14-Apr14 & Mar14-May14* compared to same period in previous year Source: AACO, IATA *Estimated 14%

12% ROUTES Weekly 10% Airline From To Date Freq. Aircraft type 8% AT Casablanca N’Djamena 17 Jun. 14 2x B737-800 Boston unchanged upgrade to B777- 6% 1 Aug. 14 300ER Karachi 35x to 42x A330-200 4% EK Dubai Mauritius 1 Dec. 14 2% San Francisco unchanged upgrade to A380

0% Houston 3 Dec. 14 Bangalore, Chennai -2% With the 1 Jul. 14 With Europe and Kozhikode Americas With Mid EY Abu Dhabi 7x to 14x mix of ACs Feb14-Apr14 Asia With Hyderabad 1 Oct. 14 AustralAsia With Sub- Mar14-May14* Saharan EY Cargo Abu Dhabi Dar es Salaam 13 Jun. 14 1x A330-200F Africa Athens 16 Jun. 14 4x B737-800 Source: AACO, IATA *Estimated GF Bahrain Istanbul 19 Jun. 14 5x to 7x A320-ER Passenger numbers to and from the Arab world market reported a 9% growth Larnaca between February 14 & April 14 compared to the same period in previous MS Cairo N’Djamena 2 Aug. 14 3x B737-500 year. Miami 10 Jun. 14 7x B777-200 QR Doha Tokyo Haneda 18 Jun. 14 7x B787 Passenger numbers to and from the Arab world market reported an 8% in- Dallas/Fort Worth 2 Jul. 14 7x B777-200LR crease between March 14 & May 14* compared to the same period in previ- Zagreb 1 Oct. 14 3x A320 ous year. XY Riyadh London Gatwick 27 Jul. 14 2x N/A PC Istanbul Bahrain Jun. 14 3x B737-800

Daily news on www.aaco.org Issue 88 - Jul 2014 25 Global Arab Aviation

Royal Air Maroc begins N’Djamena flights:Royal Air Maroc has launched Oslo will become Emirates SkyCargo’s third gateway in Scandinavia after daily new flights linking Casablanca with the Chad capital N’Djamena. The carrier passenger and cargo services were introduced to Copenhagen, Denmark, in launched the service on 17 June, initially operating the route twice-weekly. It August 2011 and Stockholm, Sweden, in September 2013. The start of a daily plans to add a third weekly rotation shortly. Royal Air Maroc operates the route service to Oslo, with an Emirates Boeing 777-300ER, will provide a total of 322 using Boeing 737-800 via a stop in the Niger capital Niamey, but says it is con- tonnes of belly hold cargo capacity per week. sidering switching to direct flights once its long-haul fleet is strengthened by In addition to the belly-hold cargo operations, Emirates SkyCargo also current- the arrival of its first Boeing 787s later in 2014. ly operates six weekly freighter flights to Copenhagen, which will increase to eight when the two Gothenburg freighter flights are consolidated and shifted Emirates increases capacity on its newly introduced Boston route: Emirates to Copenhagen. will be able to connect even more people and cargo with Boston from 1 August when it switches from its Boeing 777-200LR currently operating the route to a Etihad Airways increases flights to India:Etihad Airways announced that on larger Boeing 777-300ER aircraft, adding passenger and cargo capacity. 1 July a double-daily frequency started operating to Bangalore, Chennai and Emirates launched its Boston service - its eighth US gateway - on 10 March Kozhikode, and from 1 October a double daily frequency will be launched to 2014. The Boeing 777-300ER will offer 88 additional Economy Class seats, rep- Hyderabad. Double-daily frequencies were also introduced to Kochi route in resenting a 40% increase in seating. This is in addition to offering customers a June, as well as Mumbai and New Delhi in November 2013, supporting a long- choice of eight First Class Suites and 42 Business Class seats. term development plan in India. The airline will utilise new Airbus A320s, scheduled for delivery this year, to Emirates to fly six daily flights to Karachi:Emirates launches its sixth daily ser- accommodate much of the increased frequencies. Larger wide-body aircraft vice to Karachi from 1 August. were also introduced on selected routes in November 2013, with a three-class Emirates has served Karachi since it was founded in 1985, and in the past de- A340 on overnight Mumbai flights, marking the debut of Etihad Airways’ First cade alone has transported over six million passengers on the route. Class product on the route, and A330s on overnight Delhi flights. The additional service will be operated by an Emirates Airbus A330-200 in a Kochi flights have also been upgraded with the recent introduction of new two class configuration. The new service means that as of 1st August Emirates Airbus A321 aircraft, while overnight Delhi flights will be further enhanced will offer passengers 14,185 seats each week on the route from Dubai. with three-class Boeing 777 from 15 July. In addition to the seven existing or planned double-daily services, Etihad Airways operates daily to Ahmedabad, Emirates announces double daily A380 service to Mauritius:Emirates will Trivandrum and most recently, Jaipur, where flights commenced in April 2014. serve Mauritius with a double daily A380 service from 1 December 2014. This second A380, which will operate as flight EK 703/704, replaces the existing Etihad Cargo starts freighter operations to Dar es Salaam:Etihad Cargo com- Boeing 777 operation and increases Emirates’ capacity on the route by 19%. menced a weekly freighter service to Dar es Salaam, Tanzania on 13 June Services between Dubai and Mauritius and vice versa is operated in codeshare 2014. On the return sector to Abu Dhabi, the freighter will also stop in Nairobi, with Emirates’ partner Air Mauritius. Kenya. Etihad Cargo is deploying one of its three Airbus A330-200 wide-body The Emirates’ A380 operating as EK703/704 is a wide-bodied double decker freighters on the route, offering customers heavy uplift capability of up to 64 aircraft with a capacity of 519 passengers including 14 First Class Private Suites, metric tonnes. 76 lie-flat beds in Business Class and 429 spacious seats in Economy Class. Gulf Air launches additional flights to Istanbul and Larnaca:Gulf Air has Emirates increases capacity to San Francisco and Houston: Emirates is adding launched additional flights to Istanbul and Larnaca with 7 weekly flights oper- passenger and cargo capacity in San Francisco and Houston on 1 & 3 December ated to each of the two cities. Gulf Air flights to Istanbul Atatürk Airport and respectively when it switches from operating the routes with a Boeing 777- Larnaca International Airport are operated by an Airbus A320-ER, featuring 14 300ER to its Airbus A380. San Francisco and Houston will be Emirates’ 4th and Falcon Gold Class seats and 96 Economy Class seats. 5th U.S. gateways serviced by an A380, joining New York, Los Angeles, and Dal- las/Fort Worth which is due to commence on 1 October 2014. Gulf Air takes off to Athens International Airport: Gulf Air celebrated on 16 June the resumption of operations to Athens International Airport. Emirates SkyCargo strengthens Scandinavian trade lanes: Emirates SkyCargo, Gulf Air will be operating four weekly flights to Athens International Airport the freight division of Emirates, is set to further strengthen trade lanes be- with an Airbus A320-ER aircraft in a two-class configuration, featuring 14 Fal- tween Scandinavia and its worldwide network with the start of operations to con Gold Class seats and 96 Economy Class seats. Oslo, Norway, from the 2nd of September 2014.

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EgyptAir starts operating to direct flights to Chad:EgyptAir announced the Bahrain International Airport welcomes first Pegasus flight:Bahrain Interna- start of operating direct flights between Cairo and N’Djamena – Chad by 3 tional Airport (BIA) welcomed the first scheduled flight of Pegasus Airlines into weekly flights starting on 2 August 2014. The flights will be operated onboard the Kingdom of Bahrain. the Boeing 737-500 accommodating 104 seats. Pegasus Airlines will operate three weekly flights to Bahrain International Air- port and will be flying out of Bahrain and back to Istanbul via Sabiha Gokcen Qatar Airways launches daily non-stop service to Dallas/Fort Worth: Qatar Airport. Airways commenced daily, non-stop services between the newly unveiled Source: Travel Daily News Hamad International Airport (HIA) in Doha and Dallas/Fort Worth International Airport. The route is operated with a Boeing 777-200LR configured with 217 Economy Class seats and 42 Business Class seats. CAPACITY AND DEMAND Qatar Airways launches non-stop service to Zagreb: Qatar Airways an- Passenger Air Services to & from the Arab World - May 2014 - SRS Analyzer nounced that commencing 1 October 2014, the airline will offer non-stop AACO members increased the number of seats offered to and from the flights from Doha to Zagreb three times weekly. Arab world by 11.4%, while other airlines decreased the number by (3.7%) From 1 October 2014, passengers will be able to fly daily directly to Budapest, which resulted in a growth of 5.7% in the total number of offered seats to and four times a week to Zagreb via Budapest on a linked flight, and three times a from the Arab world. week directly to Zagreb on the delinked flight. The new route schedule will increase seats to 240 Business Class and 2,640 Percentage of the Total Available Seats To and From the Arab World Economy Class per week, an increase of 72 and 384 seats respectively. The With Europe 29.8% airline will continue to fly the A320 aircraft direct to and from Zagreb. With its two-cabin configuration, comprising of 12 seats in Business Class and 132 With Mid Asia 18.1% Economy Class seats. With Australasia 10.1% With the Americas 2.87% Qatar Airways makes its Miami debut: Qatar Airways’ maiden voyage to Mi- With Sub Saharan Africa 4.1% ami International Airport (MIA) touched down on 10 June 2014, commencing Source: AACO, SRS Analyzer service to the airline’s sixth US gateway. With this new route, Qatar Airways is the first and only airline to offer non- Capacity* of Top 10 Carriers (Arab World & Europe) stop service between the Middle East and Miami, Florida. Airline ASKs (Million) Departures Seats Qatar Airways’ Doha to Miami route is being operated with a Boeing 777-200 in a two-class configuration of 42 seats in Business and 217 seats in Economy. EK 6,765.7 3,243 1,360,448 QR 2,501.4 2,394 559,155 Qatar Airways touches down at Tokyo Haneda International Airport:Qatar EY 1,690.1 1,426 337,760 Airways touched down at Tokyo Haneda International Airport for the first time TK 1,151.9 3,111 574,148 on 18 June marking the airlines’ third destination in Japan. The inaugural flight also marked the first time that a Qatar Airways Boeing 787 Dreamliner has op- BA 864.7 855 197,425 erated to one of their three destinations in Japan. AT 777.4 2,731 412,453 The flight signaled the start of a daily service to Tokyo Haneda International LH 668.1 985 186,958 Airport, which joined the daily flights already in operation to Tokyo Narita In- MS 639.3 1,370 233,204 ternational Airport. SV 579.3 705 146,226 flynas announces direct flights from Riyadh to London Gatwick:flynas has AF 479.0 1,216 205,713 announced that it will be operating two direct flights a week between Riyadh Grand Total 24,216.1 38,270 7,696,596 and London Gatwick starting from 27 July 2014. * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer

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Capacity* of Top 10 Carriers (Arab World & Australasia) Capacity* of Top 10 Carriers (Arab World & Sub Saharan Africa) Airline ASKs (Million) Departures Seats Airline ASKs (Million) Departures Seats EK 6,874.7 2,286 967,298 EK 1,911.4 958 356,054 QR 3,010.7 1,549 449,821 QR 408.0 522 91,284 EY 2,344.2 1,111 331,988 AT 365.8 773 120,481 SV 1,014.9 372 136,379 MS 318.0 478 82,840 QF 660.5 124 55,800 EY 267.3 276 56,906 GA 443.0 191 61,312 ET 211.8 566 96,920 CX 438.6 226 70,286 SV 103.8 196 35,262 MS 396.9 153 51,258 AH 92.0 181 30,708 PR 245.0 110 33,220 TU 61.8 107 17,946 JT 244.9 62 30,752 9D 59.3 90 21,377 Grand Total 18,281.9 7,709 2,611,574 Grand Total 4,188.4 5,087 1,065,205 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer

Capacity* of Top 10 Carriers (Arab World & Mid Asia) Capacity* of Top 10 Carriers (Arab World & the Americas) Airline ASKs (Million) Departures Seats Airline ASKs (Million) Departures Seats EK 2,043.8 2,517 882,474 EK 3,426.8 707 285,052 QR 1,148.7 2,013 412,091 QR 1,358.7 398 119,194 SV 1,109.0 1,304 370,840 EY 1,033.9 276 90,068 G9 805.7 1,969 318,978 SV 597.0 180 54,126 9W 769.6 1,924 306,886 UA 292.6 97 26,384 AI 698.3 1,250 245,470 MS 282.4 90 31,032 EY 610.4 1,475 238,888 9W 259.0 62 23,436 IX 567.6 1,191 214,380 RJ 253.8 102 26,662 WY 460.1 1,351 205,948 DL 203.9 62 16,678 FZ 422.9 937 177,093 AT 182.8 132 30,360 Grand Total 11,826.9 23,556 4,676,935 Grand Total 8,049.9 2,184 723,430 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer

Daily news on www.aaco.org Issue 88 - Jul 2014 31 Global Arab Aviation TOURISM ENVIRONMENT UNWTO Executive Council Tourism routes key to regional integration and CDM pipeline update: development: The 98th session of the UNWTO Executive Council meeting in CDM pipeline update 1 July 2014 Status # of Projects Spain highlighted the role of tourism routes in promoting regional integration Status # of Projects Withdrawn 63 and development. The Council further debated key factors to stimulate tour- Rejected by EB 269 ism growth such as visa facilitation and air connectivity while recalling the role At Validation 1,168 Request for Registration 6 Validation Negative by the tourism sector can play in the sustainable development agenda (Santiago DOE 266 de Compostela, Spain, 5 & 6 June 2014). Request for Review 1 Validation Terminated UNWTO Executive Council Members recalled that regional integration trans- Correction Requested 0 1,846 lates into stronger economic development and identified infrastructure, visa by DOE Under Review 0 facilitation, transportation, public/private partnerships, public sector coordina- Registered, no issuance 4,929 tion and branding as fundamental success factors in the development of tour- Total in Registration 7 of CERs ism routes. Process Source: UNEP RisØ Registered, CER issued 2,601 Source: UNWTO Total Registered 7,530 COLLABORATION Settlement Price of ECX EUA and CER Futures on 4 July 2014 Dec-14 Dec-15 Dec-16 Dec-17 Etihad Airways expands codeshare agreement with Air Seychelles:Etihad Air- EUAs € 5.69 € 5.84 € 6.02 € 6.25 ways has extended its codeshare agreement with Air Seychelles to include the island carrier’s new services between Paris and Abu Dhabi, which commenced CERs € 0.17 € 0.43 € 0.43 € 0.43 on 2 July 2014. Source: IntercontinentalExchange Operated by Air Seychelles’ Airbus A330-200 aircraft featuring 18 lie-flat seats Innovative environmental projects win through Emirates’ ‘A Greener Tomor- in Business Class and 236 seats in Economy Class, the Air Seychelles flights will row’ initiative:Emirates announced the recipients of its ‘A Greener Tomorrow’ link the French capital’s Charles de Gaulle (CDG) airport twice weekly with the initiative, which provides funding for not-for profit environmental organisa- Seychelles via Abu Dhabi. tions in developing countries. Etihad Airways will place its EY flight code on the new Air Seychelles services, Globally, more than 400 organisations were nominated for the initiative by providing guests and cargo customers with more travel options to and from passengers, Emirates’ social media network, universities, environmental and France. conservation organisations and the general public. Applications came from countries across the Emirates network and beyond, and spanned environmen- Qatar Airways and JAL further expand codeshare cooperation: Qatar Air- tal initiatives such as animal, land and tree conservation, biogas, environmen- ways and JAL, both members of the oneworld® alliance, have enhanced their tal research, and green transportation. The applications were of such a high codeshare agreement with each other for further cooperation and com- standard that Emirates has awarded the funding to three separate projects. menced codeshare flights from 18 June 2014 on QR-operated flights between The successful projects address a diverse range of issues from fuel-efficient Tokyo(Haneda) and Doha. cooking in Malawi, eco-villages and sustainable farming practices in Pakistan, In addition to JAL’s existing codeshare service on QR-operated flights between and a conversion of Manila’s iconic ‘jeepneys’ into battery-operated versions Tokyo (Narita) and Doha, as well as between Osaka (Kansai) and Doha from that reduce emissions in the city. December 3, 2013, the new codeshare flight between Tokyo (Haneda) and ‘A Greener Tomorrow’, which is funded by revenues from a range of Emirates Doha deliver more convenience to passengers connecting from domestic Group recycling programmes, is the latest step in Emirates’ support for envi- flights arriving at Haneda, and offer more options to passengers traveling to ronmental initiatives. areas such as the Middle East, South Europe and Africa. JAL strengthens its partnership with QR to bring more convenience and en- EU carbon permit auctioning to restart for airlines in September: Auctioning hance services to customers. of aviation carbon allowances is expected to restart in September following amendments to the EU Emissions Trading System (ETS), the European Com- mission says. Based on an estimate of the number of aviation allowances to be handed out

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for free for 2013 and 2014, the EC says aviation allowances to be auctioned Court of Appeal’s decision stands, it will mean a large increase in the number in 2013 and 2014 will number some 5.8 million. The final figure will be made of passengers entitled to compensation for delayed and cancelled flights. The available by the last quarter of 2014. Auctions of allowances will take place CAA will contact passengers who have previously sought its help to provide before 30 April 2015, which is aircraft operators’ compliance deadline for the advice on the matter, and further information will also be available from caa. years 2013 and 2014. The carbon trading system is now limited to flights over co.uk/passengers. The CAA will also provide guidance on the judgment to air- European Economic Area (EEA) airspace after changes were made in April. lines. Source: Flightglobal Source: UK CAA REGULATORY TONE Court of Appeal ruling clarifies air passenger rights on claiming compensation for disrupted flights:The UK Civil Aviation Authority (CAA) welcomed the Signature of the EU-Canada agreement on Passenger Name Records (PNR): clarification on 19 June Court of Appeal ruling brings to the issue of how far The EU and Canada signed their new agreement on the processing and trans- back passengers can go when claiming compensation for disrupted flights. fer of Passenger Name Record (PNR) data by air carriers to the Canadian com- The judgment in the Thomson v Dawson case means that passengers have a petent authorities (12657/1/13 REV 1). It will replace the existing agreement maximum of six years to take their compensation case to court. Thomson had from 2006.The goal of the agreement is to set a legal framework for the trans- argued that a two year limitation on claims should apply, based on the limits fer of PNR data by carriers operating passenger flights between the European included in the Montreal Convention (international aviation law). Union and Canada to the Canadian competent authority and the subsequent However, the Court of Appeal ruled that EC261/2004 – the European regula- use of that data by these authorities. The data may be used to prevent, detect, tion covering passenger rights during disruption is separate from the Montreal investigate and prosecute terrorist offenses or serious transnational crimes. Convention. This means that passengers can refer compensation claims to the Theodoros N. Sotiropoulos, Ambassador, Permanent Representative of the courts for flights going back six years, which is the maximum length of time Hellenic Republic to the EU, signed on behalf of the EU. For Canada, the agree- that courts in England and Wales will allow before cases are barred from being ment was signed by Luc Portelance, President of the Canada Border Services brought. AgencyThe European Parliament will now be asked to give its consent to the The judgment reaffirms the CAA’s view that passengers can pursue compensa- agreement, which is necessary before the Council can adopt its decision on tion claims through the courts for flights from up to six years ago. However, the conclusion of the agreement. the CAA generally advises passengers that do wish to claim compensation for Source: Council of the European Union a disrupted flight to lodge their claim as soon after the flight as possible. This means both the passenger and airline will be able to access the information UK CAA issues advice to air passengers following Jet2 v Huzar Court of Ap- about the flight they need more easily. peal ruling: The UK Civil Aviation Authority (CAA) is advising passengers of Thomson has indicated it will seek permission to appeal the decision to the changes to their rights to compensation for delayed and cancelled flights, fol- Supreme Court, so there may be further developments on this issue. Passen- lowing a ruling in the Jet2 v Huzar case at the Court of Appeal on Wednesday gers should be aware that this might lead to a delay in airlines processing their 11 June. The Court of Appeal’s ruling confirmed that normal technical prob- claims. lems that cause flight disruption such as component failure and general wear This judgment follows a Court of Appeal ruling in the Jet2 v Huzar case on and tear should not be considered “extraordinary circumstances”. This means Wednesday 11 June that meant ordinary technical faults should not be consid- that from now on, airlines can only cite technical faults as a reason for not ered as extraordinary circumstances. paying compensation if the fault was originally caused by an event that was Source: UK CAA “out of the ordinary”. Standard technical faults such as a part on the aircraft failing before departure, will generally not be considered extraordinary cir- U.S. Department of Transportation expands air carrier reporting require- cumstances. ments for incidents involving animals during air transport: U.S. Transporta- The ruling came in to effect so airlines should base any decisions on new tion Secretary Anthony Foxx announced on 2 July a final rule that expands the compensation claims on the court’s decision. Department of Transportation’s current requirement that air carriers report The ruling does not affect claims that airlines rejected prior to Wednesday 11 incidents involving the loss, injury or death of an animal during air transport to June, so it is unlikely that airlines will re-visit previously rejected claims. There the Department. The rule will become effective on 1 January 2015. are also likely to be further developments on the issue, with Jet2 confirming it The final rule will expand the reporting requirement from U.S carriers that ac- will appeal the decision. This may mean airlines delay processing new claims count for at least 1% of domestic scheduled passenger revenue to include all involving technical faults until the outcome of the appeal. However, if the U.S. carriers that operate scheduled service with at least one aircraft with

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a design capacity of more than 60 seats. It will also expand the definition of Great Lakes Aviation, SeaPort, Silver Airways and Sun Air provide subsidised “animal” to include all cats and dogs transported by the carrier, regardless service to the 13 airports. of whether the cat or dog is transported as a pet by its owner or as part of a Source: Flightglobal commercial shipment, such as being shipped by a breeder. The previous version of the rule did not apply to breeder shipments. Saudi Arabia and South Korea agree to expand direct air route: Saudi Arabia In addition, the revised rule will require for the first time that all covered -car and South Korea have agreed to increase the allowed number of direct flights riers file a calendar-year report that will include the total number of animals from the current three to seven per week, according to the Korean Ministry of transported in the calendar year as well as the total number of animals that Land, Infrastructure and Transport. were lost, injured, or died during air transport in the calendar year, if any. The additional flight permits will soon be distributed to the countries’ flag -car DOT publishes the reports it receives on incidents involving the loss, injury, or riers. death of animals during air transportation in its monthly Air Travel Consumer Source: Yonhap News Agency Report (ATCR), which is publically available at www.dot.gov/airconsumer. The copies of the incident reports that appear in ATCR are redacted to remove Canada reaches expanded air transport agreement with the Philippines: The identifying information about individuals, including the owner of the pet. DOT Honourable Lisa Raitt, Minister of Transport, announced an expanded Canada- also forwards the reports to the U.S. Department of Agriculture’s Animal and Philippines Air Transport Agreement that allows for more flights between the Plant Health Inspection Service, which enforces the Animal Welfare Act. two countries. Minister Raitt, joined by Senator Tobias Enverga, made the The final rule is available at http://www.ofr.gov/OFRUpload/OFRDa- announcement at the Gateway Centre for New Canadians in Mississauga, On- ta/2014-15503_PI.pdf. tario, home to a growing Canadian-Filipino community. Source: US DOT Reached under Canada’s Blue Sky policy, which encourages long-term, sustainable competition and the development of international air services, the newly US DOT ends air service subsidies for 13 small cities:The US Department of expanded agreement with the Philippines offers: Transportation (DOT) has finalised plans to end essential air service (EAS) sub- • increased flights to any destination between our two countries; sidies for 13 small cities around the USA. • greater flexibility for airlines to offer air services using the flights of -air Athens (Georgia), Bradford (Pennsylvania), El Centro (California), Fort Dodge lines of other countries (i.e. code-sharing); and (Iowa), Franklin/Oil City (Pennsylvania), Greenville (Mississippi), Hagerstown • greater flexibility for airlines to introduce new prices to respond to con- (Maryland), Jackson (Tennessee), Lancaster (Pennsylvania), Kingman (Arizona), sumer demand. Macon (Georgia), Merced (California) and Muscle Shoals (Alabama) have all The new rights under this expanded agreement are available for use by air- been cut from the programme, according to a regulatory filing on 24 June. lines immediately. All were within 281.6km (175 miles) driving distance from a medium or large Source: Transport Canada hub airport, and averaged fewer than 10 boardings per day during the last fis- cal year, according to the DOT. Airports must be further from larger airports or average more than 10 boardings to remain in the programme under the US Federal Aviation Administration (FAA) modernisation and reform act that was passed in 2012. Airports in Alaska and Hawaii are exempt from these rules. Communities were given 20 days to contest the move, which was first announced in April. None of the communities disputed the low passenger numbers cited by the DOT, though some claimed extenuating circumstances, including unreliable service or high fares, for the low numbers, says the regulator. The impacted communities can still apply for waivers from the rules and be reinstated in the EAS programme, adds the DOT. Flights to Bradford, Fort Dodge, Franklin/Oil City, Greenville, Macon and Mus- cle Shoals were scheduled to end prior to the DOT’s decision to end subsidies to the cities.

Daily news on www.aaco.org Issue 88 - Jul 2014 37 Global Arab Aviation AN AVIATION MARKET IN FOCUS: IRAQ Iraq’s domestic aviation in May 2014 Republic of Iraq • Population: 36 million Route Seat Capacity* 2 • Land area: 437,072 km Al Najaf - Baghdad 26,339 • Number of passengers in 2013: 3.8 million passengers • Number of commercial airports: 6 commercial airports Baghdad - Erbil 15,478 • Iraqi-based airlines: Iraqi Airways, AlNaser Airlines, and Zargosjet Erbil - Sulaymaniyah 6,480 Aviation Policy: Basra - Erbil 6,120 - The Iraq Civil Aviation Authority (ICAA) (http://www.iraqcaa.com/) is the Baghdad - Sulaymaniyah 5,760 governmental body responsible for civil aviation in Iraq. - Iraq is a signatory of the Damascus Convention. Baghdad - Basra 4,495 Source: AACO, Innovata’s FlightMaps Analytics Baghdad - Mosul 3,690 Traffic Share between Iraq and Other Regions in Alliances Share of Seat Capacity Serving 2013 Al Najaf - Erbil 3,600 4.2% 1.1% Iraq's Market The 10 routes on the right account 0.6% 3% Al Najaf - Sulaymaniyah 2,880 Arab World for all of the total seat capacity 11.8% 7% Unaligned scheduled within Iraq in May 2014. Basra - Sulaymaniyah 1,620 Europe 12% Source: AACO, Innovata’s FlightMaps Analytics Mid Asia Star Alliance * This includes seat capacity in both directions

Australasia oneworld Airline Seat Capacity Americas Iraqi Airways 412,809 Top 10 airlines operating by seat ca- 49.6% Sub Sahrain Africa Sky Team pacity to, from and within Iraq in May 32.8% 78% Turkish Airlines 79,170 2014 Source: AACO, Innovata’s FlightMaps Analytics Source: AACO, IATA Emirates 42,804 The top 10 airlines on the left offered flydubai 38,728 almost 0.69 million seats (95.89% of Iraq’s aviation market links 40 cities worldwide(click on image for detailed view) Royal Jordanian 26,832 the scheduled seat capacity) to, from and within Iraq in May 2014. Qatar Airways 26,274 Middle East Airlines 21,252 Etihad Airways 18,348 Zagros Air 17,584 Route Seat Capacity* Air Arabia 15,936 Baghdad - Beirut 51,996 Source: AACO, Innovata’s FlightMaps Analytics Baghdad - Dubai 38,766 Top 10 routes by seat capacity to and Baghdad - Istanbul 37,321 from Iraq in May 2014 Beirut - Al Najaf 31,624 Around 293 thousand seats were of- Erbil - Istanbul 26,990 fered on the top 10 routes to and Basra - Dubai 26,224 from Iraq in May 2014, representing a 40.26% of the total capacity offered to Amman - Erbil 22,580 and from Iraq. Amman - Baghdad 21,748 Erbil - Dubai 20,948

Source: AACO, Innovata’s FlightMaps Analytics May 2014 Baghdad - Tehran 15,570 Source: AACO, Innovata’s FlightMaps Analytics * This includes seat capacity in both directions Daily news on www.aaco.org Issue 88 - Jul 2014 39 Global Arab Aviation

WORLD NEWS • Improving safety by a factor of 10. Next steps ICAO expects tracking standard within two years: ICAO expects to complete a This was the first step in the operational deployment of the SESAR project. global standard for aircraft tracking in less than two years, Ms. Nancy Graham, The next steps will be the establishment of the Deployment Manager and the director of the organization’s Air Navigation Bureau, said on 5 June. Some air- launch of the calls for the implementation of each project. lines with the capability have already started automatic tracking, she told the The Deployment Manager will coordinate the deployment of the Pilot Com- RTCA Symposium in Washington, D.C. In the aftermath of the disappearance mon Project with all operational stakeholders based on a Deployment Pro- of Malaysian Airlines flight MH370, air transport industry groups agreed on a gramme. It is expected to be in place by the end of 2014. framework to develop a tracking mandate during a special meeting at ICAO’s Source: European Commission headquarters in Montreal on 12 & 13 May. The International Air Transport As- sociation (IATA) is leading a task force that will develop detailed proposals by ACI EUROPE launches guidelines on the passenger experience: ACI EUROPE the end of September. released its latest publication, Guidelines for Passenger Services at European Source: AIN Online Airports. This publication looks at how airports should conceptualise, plan and deliver their passenger experience. Designed on best practices across the The European Commission starts the deployment phase for air traffic man- industry, these Guidelines are just another reflection of the evolution of Eu- agement of the future: The European Commission adopted a first set of es- rope’s airports from B-to-B businesses to also becoming B-to-C businesses – sential changes for the modernisation of the European Air Traffic Management with their focus expanded from serving airline partners to meeting the needs (ATM) system known as the “Pilot Common Project”. This is the first of a series of passengers and other airport visitors. of projects resulting from SESAR, the technological pillar of the Single Euro- The new Guidelines offer a holistic approach to passenger services at airports, pean Sky. The projects focus in particular on the improvements of air traffic looking at how passenger needs and expectations have changed and at the to and from airports, the increase of aircraft flexibility to fly more direct and role and remits of airports operators and other partners in shaping the overall more efficient routes as well as enhanced sharing of more precise information airport experience. They include a new and multidimensional model to pas- among all actors and better coordination with the military. senger categorisation. They also provide an innovative methodology for defin- By the application of innovative technologies and more efficient operational ing levels of service from the standpoint of the passenger as well as for their procedures, the Pilot Common Project will bring benefits in terms of safety, delivery though the so-called 3P approach (Premises, Processes & People). environment, capacity and cost-efficiency for the whole ATM network, with a The publication also outlines how the emergence of technology such as WiFi, positive impact for passengers and the whole air transport sector. The timely smartphone Apps and other devices have played a role in this development, deployment of these projects will reinforce the European industry’s leading however in today’s highly competitive market, airports have also actively role on the global scene and are a unique opportunity for Europe’s economy. sought to develop a more direct rapport with the passenger. This project is the result of a partnership between ATM stakeholders, includ- Source: ACI Europe ing Eurocontrol, the Commission and the Member States to make operational the innovative concepts defined in the European ATM Master Plan - developed SITA announces new chair of board: SITA’s Board of Directors announced on and validated in the SESAR Joint Undertaking. Building on years of R&D and 18 June the appointment of Mr. Bill Miller of United Airlines as the new Chair preparation, SESAR is now at the final and most important stage, the deploy- of the SITA Board for a one-year term. The appointment was made follow- ment of innovative solutions to modernise the European ATM system. ing SITA’s Annual General Assembly (AGA). Out-going Chair Mr. Paul Coby will The main benefits expected from this first set of changes are: remain on the Board of Directors. In addition, the Board confirmed that Mr. • a reduction of aircraft fuel burn, thanks to more efficient flight trajecto- Francesco Violante will continue as CEO of the organization. ries, and • productivity gains thanks to the optimisation of the provision for air navi- IATA Figures -- Air travel demand stays strong in May 2014: The International gation services through better operational procedures and better infor- Air Transport Association (IATA) announced global passenger traffic results mation sharing between controllers and pilots. for May showing demand growth of 6.2% compared to May 2013. While this The final aim of the SESAR project is: represented a deceleration compared to April year-over-year traffic growth of • Cutting ATM-related expenses for airspace users in half 7.6%, the performance is indicative of improving demand drivers. May capac- • Reducing by 10% the effects flights have on the environment ity rose 5.2% and load factor climbed 0.7 percentage points to 79.0%. All re- • Delivering a 3-fold increase in capacity which will also reduce delays both gions except Africa experienced positive traffic growth. on the ground and in the air

Daily news on www.aaco.org Issue 88 - Jul 2014 41 Global Arab Aviation

May 2014 vs. May 2013 RPK Growth ASK Growth PLF • African airlines experienced the slowest demand growth, up 1.9% International 7.0% 6.0% 78.1 compared to May 2013. With capacity up 4.7%, load factor fell 1.8 percentage points to 64.4%, the lowest among the regions. The weakness Domestic 4.6% 3.8% 80.6 in international air travel for regional carriers could be in part reflecting Total Market 6.2% 5.2% 79.0 adverse economic developments in some parts of the continent, with the slowdown of the major economy of South Africa. YTD 2014 vs. YTD 2013 RPK Growth ASK Growth PLF Source: IATA International 6.5% 6.5% 78.1 Domestic 5.6% 4.5% 80.0 Total Market 6.2% 5.8% 78.8

International passenger markets May international passenger traffic rose 7.0% compared to the year-ago period. Capacity rose 6.0% and load factor climbed 0.8 percentage points to 78.1%. All regions recorded year-over-year increases in demand. • Asia Pacific carriersrecorded an increase of 7.3% compared to May 2013, which was the largest increase among the three biggest regions. The strong performance suggests that downward pressure on demand from sluggishness in the Chinese economy is likely easing. According to JP Morgan/Markit, the measure of manufacturing activity rebounded in May, supported by a strong rise in export order growth. Capacity rose 7.5%, pushing down load factor 0.1 percentage points to 74.1%. • European carriers’ international traffic climbed 6.1% in May compared to the year-ago period. Capacity rose 5.3% and load factor rose 0.6 percentage points to 80.3%. Economic activity in the Eurozone has been gaining momentum slowly and recent data suggest that solid increases in industrial production and trade should result in acceleration in Eurozone GDP in the second quarter. • North American airlines saw demand rise 4.4% in May over a year ago, implying positive underlying economic growth trends with easing pressure on employment levels. Capacity rose 4.8%, pushing down load factor 0.3 percentage points to 83.0%, still the highest among all regions. • Middle East carriers had the strongest year-over-year traffic growth in May at 13.2% as airlines continue to benefit from the strength of regional economies, including non-oil production sectors, and solid growth in business-related premium travel. Capacity rose 6.9% and load factor climbed 4.4 percentage points to 78.0%. • Latin American airlines’ traffic rose 9.1%. Capacity rose 6.0% and load factor climbed 2.2 percentage points to 79.6%. The outlook for Latin American carriers remains broadly positive, with continued robust performance of economies like Colombia, Peru and Chile contributing to the strong demand environment, although the Brazilian economy remains weak, with any benefits from the FIFA World Cup likely to be transitory.

Daily news on www.aaco.org Issue 88 - Jul 2014 43 OUR PARTNER AIRLINES Partner Airlines

SPAIN TRAFFIC The Spanish air transport market expanded by 11.1% in April 2014 over April 2013 in terms of number of passengers traveling to, from and within Spain, and is estimated to have shrunk in May 2014 by (1%) compared to May 2013. LATEST NEWS Traffic statistics June 2014 - Group traffic and capacity statistics: In June 2014, Monthly Passenger Numbers' Change in the Spanish Air Transport Market Group traffic measured in Revenue Passenger Kilometres increased by 5.9% Jun13 to May14* compared to same month in previous year versus June 2013; Group capacity measured in Available Seat Kilometres rose by 8.5%. 15% Group premium traffic for the month of June increased by 4% compared to the 10% previous year. 5% June figures are impacted by World Cup effects, especially in Latin America. 0% To download a PDF version of the results, please click here. -5% -10% Strategic developments: On 19 June, British Airways and Vueling announced a new codeshare agreement on 170 routes. These are largely centred on Vuel- -15% ing’s operation in Italy with 37 international and 11 domestic destinations -20% available from Vueling’s Rome Fiumicino base. Other new routes on offer -25% through the codeshare include Heathrow to Bilbao and La Coruña, Cardiff to Malaga and Alicante, and Edinburgh to Barcelona. On 30 June, Iberia Express announced that it had signed the first bargaining International Domestic agreement with its pilots’ trade union UPPA. The agreement will expire on 31 December 2019 and will allow the airline to set up a stable labour framework. Source: AACO, IATA *Estimated Looking at the Spanish market traffic flows, the international European market IAG AGM resolutions:Notice is served that the Annual Shareholders’ Meeting represented in April 2014 73.3% of the total market, and is estimated to have of INTERNATIONAL CONSOLIDATED AIRLINES GROUP, S.A., validly held on sec- shrunk to 71.8% in May 2014. Traffic between the Arab world and Spain rep- ond call on June 18, 2014, approved all of the proposed resolutions prepared resented 1.8% of the total Spanish market in April 2014, and is estimated to by the Board of Directors with a sufficient majority. have shrunk to 1.7% in May 2014. The full text of the adopted resolutions has been available on the Company’s Passenger Numbers' Change in the Spanish Air Transport Market website (www.iairgroup.com) since the date of call of the Shareholders’ Meet- Feb14-Apr14 & Mar14-May14* compared to same period in previous year ing. The attendance and voting data will also be available on the Company’s website (www.iairgroup.com). 25% The resolutions passed at the Annual General Meeting will be submitted to 20% the National Storage Mechanism and will then be available for inspection at http://www.morningstar.co.uk/uk/NSM shortly. 15%

10%

0% Domestic -5% With Arab With With World With the Australasia Europe With Mid -10% Americas with Sub Asia Sahran Feb14-Apr14 Africa Mar14-May14*

Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 88 - Jul 2014 47 Partner Airlines

In April 2014, Ryanair was the biggest carrier operating to, from and within Looking at the UK market traffic flows, the international European market Spain by number of passengers, boarding 2.7 million pax, which represented a represented in April 2014 66.1% of the total market, and is expected to have decrease of (0.5%) over April 2013 operations. expanded to 66.4% in May 2014. Traffic between the Arab world and the UK represented 4% of the total UK market in April 2014, and is expected to have Top 15 Airlines Operating in the Spanish Market shrunk to3.4% of the total traffic in May 2014. Airline Apr-14 Change Airline Apr-14 Change Passenger Numbers' Change in the UK Air Transport Market Feb14-Apr4 & Mar14-May14* compared to same period in previous year FR 2,700,698 (0.5%) ZB 257,925 48.9% 16% IB 1,377,401 4.7% NT 218,672 6.4% 14% U2 1,086,627 5.2% LS 204,592 21.4% 12% VY 1,009,127 23.0% 4U 192,738 131.0% 10% AB 704,958 (0.3%) BA 179,922 0.6% 8% UX 509,134 9.9% AF 176,480 (3.5%) 6% DY 354,169 69.7% DE 170,045 40.5% 4% LH 259,657 (3.3%) Grand Total 11,587,676 11.1% 2% Source: AACO, IATA 0% Domestic -2% With Arab With World With Europe -4% Australasia With the With Mid Americas with Sub -6% Asia UK TRAFFIC Sahran The UK air transport market expanded by 10.2% in April 2014 over April 2013 Feb14-Apr14 Africa in terms of number of passengers traveling to, from and within the UK, and is Mar14-May14* expected to have shrunk by (3.4%) in May 2014 compared to May 2013. Source: AACO, IATA *Estimated Monthly Passenger Numbers' Change in the UK Air Transport Market Jun13 to May14* compared to same month in previous year In April 2014, easyjet was the biggest carrier operating to, from and within the UK by number of passengers, boarding 3.34 million pax, which represented an increase of 10.3% over April 2013 operations. 15%

10% Top 15 Airlines Operating in the UK Market Airline Apr-14 Change Airline Apr-14 Change 5% U2 3,342,930 10.3% EK 361,117 11.3% 0% FR 2,948,790 4.3% LS 348,794 17.5% BA 2,493,938 7% LH 310,112 (10.6%) -5% BE 561,657 (6.3%) W6 274,555 13.7%

-10% ZB 459,730 54.2% AF 261,949 17% VS 455,002 9% DY 249,823 28.9% EI 397,896 20.1% SK 195,556 17.5% International Domestic KL 396,350 7.8% Grand Total 16,239,128 10.2% Source: AACO, IATA Source: AACO, IATA *Estimated

Daily news on www.aaco.org Issue 88 - Jul 2014 49 Partner Airlines

Monthly Passenger Numbers' Change in the Indian Air Transport Market Jun13 to May14* comapred to same month in previous year LATEST NEWS Jet Airways and Alitalia enter into a code share pact connecting India and 20% Italy: Jet Airways and Alitalia announced the expansion of their code share 15% partnership offering guests enhanced network connectivity between India and Italy and beyond to several Indian and Italian cities of touristic and business 10% importance. 5% Under the expanded code share agreement, Jet Airways is placing its marketing code on the Alitalia operated flights between Abu Dhabi and Rome and 0% beyond to Bologna, Florence, Naples, Turin, Venice and Verona in Italy. -5% Similarly, Alitalia will place its code on Jet Airways flights operated between Abu Dhabi and Delhi, Mumbai and Kochi. Alitalia will also place its code on Jet -10% Airways’ flights beyond Mumbai and Delhi to Amritsar, Bengaluru, Chennai, Kolkata and Udaipur. In addition to the global accrual and redemption options on each other’s -net International Domestic works, our loyalty programme partnership also ensures that Jet Privilege and MilleMiglia members will earn status miles when travelling on these code Source: AACO, IATA *Estimated share flights, thus enabling them to upgrade to high tier levels faster. Guests can now book a ticket between India and Italy with Jet Airways or with Looking at the Indian market traffic flows, the domestic market represented in Alitalia via the airlines’ websites www.jetairways.com or www.alitalia.com or April 2014 57% of the total market, and is estimated to have shrunk to 55.1% through travel agencies. in May 2014. Traffic between the Arab world and India represented 18.2% of the total Indian market in April 2014, and is estimated to have expanded to Jet Airways declared “Best Domestic Airline” at the CNBC Awaaz Travel 18.3% in May 2014. Awards 2014: Jet Airways was declared the ‘Best Domestic Airline” at the Passenger Numbers' Change in the Indian Air Transport Market eighth edition of the CNBC Awaaz Travel Awards 2014. The awards were pre- Feb14-Apr14 & Mar14-May14* compared to same period in previous year sented by CNBC Awaaz, India’s business channel, in association with Madhya 12% Pradesh Tourism, a body of the Government of Madhya Pradesh. The CNBC Awaaz travel awards, seek to recognize and honour the best in class 10% destinations, organizations and service providers based on an objective study conducted across Indian cities, with over 10,000 respondents covering seg- 8% ments such as Adventure, General public, Corporate. 6%

Jet Airways honoured at the prestigious BIAL Pinnacle Awards 2014: Jet Air- 4% ways won “ON TIME AIRLINE - DOMESTIC” award, at BIAL Pinnacle Awards 2014 held in Bengaluru recently. 2% 0% Domestic INDIA TRAFFIC With Arab -2% With The Indian air transport market grew by 5.4% in April 2014 over April 2013 in World With Australasia With the Europe Within Mid terms of number of passengers traveling to, from and within India, and is esti- Americas with Sub Feb14-Apr14 Asia Int'l mated to have expanded in May 2014 by 2.2% compared to May 2013. Sahran Mar14-May14* Africa Source: AACO, IATA *Estimated

Daily news on www.aaco.org Issue 88 - Jul 2014 51 Partner Airlines

In April 2014, Indigo Airlines was the biggest carrier operating to, from and within India by number of passengers, boarding 1.68 million pax, which represented an increase of 7.7% over April 2013 operations. Top 15 Airlines Operating in the Indian Market Airline Apr-14 Change Airline Apr-14 Change 6E 1,629,219 10.1% QR 149,730 14.2% AI 1,265,146 4.6% G9 132,428 (5.8%) 9W 1,240,828 10.1% SQ 128,809 8.0% SG 969,107 (8.4%) SV 115,150 14.8% G8 429,189 7.7% WY 104,385 0.9% EK 411,149 (0.3%) EY 103,350 46.4% S2 273,319 (32.3%) BA 95,337 17.4% IX 218,389 (16.7%) Grand Total 8,529,292 3.2% Source: AACO, IATA

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Daily news on www.aaco.org Issue 88 - Jul 2014 53 Partner Airlines

Monthly Passenger Numbers' Change in the Turkish Air Transport Market Jun13 to May14* compared to same month in previous year

80% LATEST NEWS 70% Turkish Airlines and LOT Polish Airlines announce their 5th frequencies in 60% Warsaw and Istanbul together with their extended commercial cooperation: 50% Turkish Airlines and LOT Polish Airlines began to offer their th5 frequencies be- 40% tween their hubs - Warsaw and Istanbul Ataturk Airport on 29 May, 2014. This 30% additional frequency will provide passengers more flight alternatives between 20% the two countries by enabling both carriers to utilize the total capacity with 10% maximum benefit and as a result by meeting the rising demand in the market. 0% The additional 5th frequency will also be included within the scope of codeshare agreement. Furthermore, the carriers will extend their codeshare cooperation by including their domestic and international sectors. Turkish Airlines adds Montreal to its network: Turkish Airlines added flights to Montreal. Montreal flights will be operated 3 times per week. International Domestic Source: AACO, IATA *Estimated Turkish Airlines adds Bordeaux to its network: Turkish Airlines added flights to Bordeaux as its 6th destination in France. Bordeaux flights are operated 4 Looking at the Turkish market traffic flows, the domestic market was the big- times per week. gest market. It accounted for 42.5% of April 2014 traffic, and is estiamted to have shrunk to 40.3% in May 2014. The European market (international traffic Turkish Airlines expands its presence in Germany: Turkish Airlines added between Turkey and Europe) was the second biggest market, accounting for flights to Münster as its 13th destination in Germany. Münster flights will be 39.5% of April 2014 traffic, and is estimated to have expanded to 41.3% in May operated 4 times per week. 2014. On the other hand, traffic between the Arab world and Turkey represented 7.9% of the total Turkish market in April 2014, and is estimated to have Turkish Airlines adds Pisa to its network: Turkish Airlines added flights to Pisa, shrunk to 7.3% in May 2014. th its 9th destination in Italy and 25 destination in Southern Europe. Passenger Numbers' Change in the Turkish Air Transport Market Pisa flights will be operated in both directions with 4 weekly services. Feb14-Aprr14 & Mar14-May14* compared to same period in previous year 35% TURKEY TRAFFIC 30% The Turkish air transport market in April 2014 grew by 18.6% over April 2013 25% in terms of number of passengers traveling to, from and within Turkey, and is 20% estiamted to have grown in May 2014 by 11.3% compared to May 2013. 15% 10% 5% 0% Domestic -5% With Arab With World With Australasia With the Feb14-Apr14 Europe With Mid Americas with Sub Int'l Asia Mar14-May14* Sahran Africa Source: AACO, IATA *Estimated Daily news on www.aaco.org Issue 88 - Jul 2014 55 Partner Airlines

In April 2014, Turkish Airlines was the biggest carrier operating to, from and within Turkey by number of passengers, boarding 2.94 million pax, growing by 15% over April 2013. Top 15 Airlines Operating in the Turkish Market Airline Apr-14 Change Airline Apr-14 Change TK 2,945,476 15.0% DE 51,255 21.0% PC 1,177,012 30.1% ZB 45,578 N/A XQ 354,306 95.2% U2 43,458 (23.7%) 8Q 220,457 (3.6%) EK 36,280 4.8% KK 169,490 4.9% J2 35,364 1.8% LH 75,079 (12.7%) XY 34,138 135.3% AB 69,826 (15.6%) SV 29,500 9.0% SU 61,374 10.0% Grand Total 5,993,721 18.6% Source: AACO, IATA

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Daily news on www.aaco.org Issue 88 - Jul 2014 57 OUR INDUSTRY PARTNERS NEWS Our Partners News

Rapidly changing demographics to fuel major shift in GCC travel over next 15 years: The coming-of-age of the Gulf Co- operation Council (GCC)’s young population will reshape the travel industry in the region over the next 15 years, with the tech-savvy generation turning instinctively to mobile technologies and social media to plan, book and manage travel. Today, nearly 25% of the GCC population is under 15 years of age, and Airbus, in collaboration with Saudia Airlines hosted a series of hands-on workshops for young students, as this demographic becomes tomorrow’s decision makers, traditional travel behaviours will witness a aimed at promoting science and nurturing a passion for technology. The workshops were held at the transformation and become increasingly self-directed. Saudia Airlines Training Facility in Jeddah on 15th – 17th June, 2014. As outlined in the Amadeus-commissioned new report, Shaping the Future of Travel in the Gulf Coop- eration Council (GCC): Big Travel Effects, additional unfolding demographic factors such as steady inflow Around 150 students, including children of the airline’s staff and from government and private schools of expatriate workers, robust natural population growth and a growing middle class will combine to drive took part in the workshops, designed by The Little Engineer (TLE), an organisation created in partnership a new and divergent set of travel behaviours and needs in the region. with Airbus 2050 Vision to inspire the next generation of innovators. The young scientists, aged between The report, researched and collated by Frost & Sullivan and Insights and commissioned by Amadeus, 12 – 14 years old, were encouraged to play an active role in the workshops, taking the concepts out of examines and contextualises the various ways a new travel landscape will develop in the Gulf region over the classroom and putting the theories in practice. the next 15 years. To download a free copy of the report ‘Shaping the future of Travel in the GCC: Big Travel Effects’ pleaseclick here. Additionally, Airbus launched the fourth editition of it Fly Your Ideas Challenge 2014. Fly Your Ideas is a Cloud will transform the airport experience, according to Amadeus insight paper: Airports are increas- biennial, global competition granted UNESCO patronage in 2012. The challenge offers students a unique ingly identifying the need to switch to next generation cloud systems in order to improve operational opportunity to put their classroom learning and research to the test, by working with a team of aviation efficiencies in a challenging marketplace, according to an insight paper launched by Amadeus. IT makes professionals on real-world challenges, going beyond the aircraft itself. It offers students a chance to sense to share: making the case for the cloud in Common Use airport technology collates the viewpoints apply their creativity in an exceptional learning environment that will equip them in a highly competitive of over 20 senior IT leaders from the airport industry to investigate the business case for adopting cloud job market. The competition is open to students of all nationalities and all disciplines – from engineering based Common Use systems at airports. to marketing; science to design. Rising business pressures from stakeholders and competitors require airports to make the most efficient use of IT resources to operate effectively and collaboratively with airlines, while looking for alternative Speaking at the American Institute for Aeronautics and Astronautics in Atlanta, Georgia, USA, Mr. Charles revenue streams to remain competitive. The paper indicates that modernising approaches to Common Champion, Airbus Executive Vice President Engineering, said: “Innovation is at the heart of Airbus. A Use systems is one route to mitigate these challenges in a world that has access to the latest models of strong pioneering spirit has made Airbus a leading aircraft manufacturer. Airbus people are driven by a cloud computing. The paper goes on to highlight that the industry is now ready to adopt next generation restless desire to find better ways of flying, and this year’s Fly Your Ideas challenge is about delivering Common Use solutions to maximise the operational and commercial performance of the sector. Some just that. Any student with a vision and drive to make their world a better place is invited to enter the airports still have concerns about resilience, privacy, security, and risk although the report suggests at- competition. We know how to put innovation to work and we will take your ideas seriously.” titudes to these issues are gradually changing. CyberSource and Amadeus partner to help travel organizations optimize fraud management opera- The 2014 launch follows the success of Fly Your Ideas’ previous editions which altogether drew entries tions across booking channels:CyberSource, a Visa Inc. company, has formed a strategic global part- from more than 11,000 students representing over 600 universities and some 100 countries. The winner nership with Amadeus. The agreement brings an integrated travel reservation and fraud management from last year, Team Levar, is a group of five design students from the University of Sao Paulo, Brazil, who solution to airlines, travel agencies and other travel organizations worldwide. Leveraging CyberSource’s created an innovative air hockey table inspired air cushion solution for loading and unloading luggage global expertise in fraud management, the solution integrates a fraud management system, Decision which could reduce the workload of airport baggage handlers Manager, into the dedicated travel Amadeus Payment Platform (APP). Decision Manager helps travel organizations accept more legitimate bookings while identifying potential fraudulent transactions and Airbus - AACO Partner since 1997 lowering operational costs. Amadeus Gulf showcases comprehensive business management solution for non-IATA agencies:Ama - deus Gulf, the commercial division responsible for the sectors of Oman, Bahrain and the UAE, recently showcased Amadeus’ Business Management Platform (BMP) solutions to travel professionals outside the IATA ambit. BMP is the most innovative web-based platform specifically designed for travel professionals to enhance the automation capabilities and efficiency of their businesses. Two presentations were made. One at an event held in Abu Dhabi in early April and another recently in Al Ain on 12 May. Amadeus Gulf signs strategic partnership with Mohebi Aviation LLC:Amadeus Gulf has signed a strategic partnership agreement with Mohebi Aviation LLC, the dynamic travel solutions and services division of Zainal Mohebi Holdings, at the Arabian Travel Market (ATM) that took place from 5 – 8 May, 2014. Amadeus - AACO Partner since 2000 Daily news on www.aaco.org Issue 88 - Jul 2014 61 Our Partners News

ADNOC Distribution is an integrated oil energy company. Founded in 1973, ADNOC Dis- tribution market and distributes petroleum products and services within the United Arab Emirates. Creating Value * Sector Expertise * Rigor & Discipline As one of the largest government-owned petroleum companies in the Arab Gulf, ADNOC Distribution has grown to become a national institution and a major economic driver for Founded in 2002, Apollo Aviation Group (“Apollo Aviation”) is a multi-strategy alternative investment the UAE economy. manager specializing in commercial aviation including buying, selling and leasing aircraft and engines. The company is renowned for its innovative and dynamic approach offering a wide variety of petroleum With more than USD 1.30 billion of assets under management as of June 30, 2013, we are one of the and natural gas products and services. world’s leading mid-life and mature commercial aircraft and engine operating lessors and investment ADNOC Distribution is committed to providing its customers and strategic partners with reliable products managers. In the first quarter of 2013, Apollo Aviation formed, AAG Capital Markets LLC, to manage of exceptional quality and services. investments in aviation securities. Led by its founders, William Hoffman and Robert Korn, Apollo Aviation is currently investing a near USD Regional Main Contact 595 million real asset fund, the Sciens Aviation Special Opportunities Investment Fund II (“SASOF II”), Name: Mr. Naser Hasan Saleh, International Aviation Sales Department.Sales Manager-AVSD - Aviation and harvesting a USD 213 million real asset fund, Sciens Aviation Special Opportunities Investment Fund Sales Division (“SASOF”) as well as several private accounts. Telephone: +97126901419 We have built a strong team with deep industry knowledge and extensive relationships throughout the Fax: +97126723399 world’s aviation industry. We seek innovative and creative solutions to create value. Email: [email protected] Website: www.adnoc-dist.ae Regional Main Contact ADNOC - AACO Partner since 2002 Name: Mr. Pascal Picano, Head of Global Marketing Telephone: +353 1 497 6621 Fax: +353 1 497 6317 Email: [email protected] Website: www.apollo.aero Apollo- AACO Partner since 2013 Air France Consulting, a wholly owned subsidiary of Air France is special- ATPCO is an airline-owned organization whose mission is to serve the air- ized in air transport consulting, training, management and reengineering line industry by developing industry standards and solutions related to the services. Air France Consulting calls on about 200 highly specialized international experts coming mostly distribution of fare products. It is our vision to provide the most efficient from Air France and the SkyTeam Alliance who have built a field proven experience and whose compe- and flexible airline fare distribution processes, giving airlines choice and control over their fare distribu- tencies are recognized by the industry. tion. Acting independently with flexibility, Air France Consulting proposes a comprehensive approach on key domains of the air transport such as operations, finance and commercial, maintenance, etc... whether to As the world leader in the collection and distribution of fare and fare-related data, our products and ser- make you a diagnostic or audit, to set up new or improved processes driven by proven change manage- vices organize fares into established formats that seamlessly integrate with global distribution systems, ment techniques or define a coaching and training program. Air France Consulting proposes a compre- pricing systems, computer reservation systems, governments, and related travel organizations. hensive approach on how to optimize your processes and solve your concerns such as: • Safety and security of operations (EASA 145, M, 21, 147, IOSA, JAR Ops and FCL, SMS, ETOPS, ATPCO currently works with more than 500 airlines and systems worldwide, supplying more than 99 per- IOSA Assistance, TRTO, Airline operations organization…) cent of the industry’s fare data to all the major airfare pricing engines. • Drivers to reduce costs and increase revenues (Business Plan, Cost control, Network and Fleet, Revenue Management Pricing, Customer Relationship Management, E-business solutions, Fuel For more information, please visit our website at www.atpco.net conservation Program, ETS, Procurement process…) • Fleet Asset Management (specification, acquisition, lease, sales) and Repair Overhaul activities Regional Main Contact Management (MCC, line maintenance & operational regulatory support, maintenance IT support) Name: Mr. Frank Socha, Regional Director Europe, Middle East, Africa • Human resources and risks prevention optimization (Human factors, Crew management, Staff Telephone: +44 208538 0811 posting, Emergency response plan…) Fax: +44 208570 5889 Air France Consulting shares the ambitions of its customers through customized solutions, thanks to a Email: [email protected] flexible structure ensuring responsiveness and close proximity. For more information, please contact us at: Telephone: +33 1 7425 4162, email: [email protected] ATPCO - AACO Partner since 2014 Air France Consulting - AACO Partner since 2008

Daily news on www.aaco.org Issue 88 - Jul 2014 63 Our Partners News

Etihad Regional became launch customer for ATR’s iPad mount sys- BOC Aviation announces senior management appointments, London sub- tem with power interface: Darwin Airline, recently rebranded Etihad sidiary: BOC Aviation is pleased to announce the appointment of Mr. Steven Regional, has become a launch customer for ATR’s optimal onboard Townend as Chief Commercial Officer for Europe, Americas & Africa. He tablet-based system for the airline’s electronic flight bag (EFB) initiative. has moved from the company’s Singapore headquarters to London, where a new subsidiary has been The adaptable ATR iPad mount system with the integrated power interface module will be deployed to formed. provide an installed platform for holding the Apple iPad device, as well as supply certified connectivity to Mr. Townend has been Chief Commercial Officer in charge of the revenue side of the company since aircraft power for device charging. The integrated system will allow Etihad Regional to realize maximum 2004. He has more than 20 years of aviation finance and leasing experience, and holds an Honours functionality of the iPad Air tablet as a deployed EFB platform. The Etihad Regional EFB program will be degree in Banking and Finance from Loughborough University in the U.K. Mr. Townend will oversee all implemented on all ATRs in its fleet with installations planned to take place in second half of 2014. senior relationships within Europe, Americas and Africa and have primary responsibility for airline leas- EASA certifies the ATR’s new Pratt & Whitney Canada 127N engines:The European Aviation Safety ing and sales in these regions. He will also lead the company’s strategy for developing capital market Agency (EASA) has certified the ATR 72-600 aircraft for the use of new PW127N engines. Following in the products for both airline customers and third-party investors. PW127M’s flight path with over 10 million hours of operation, the PW127N provides a 4.5% power in- Mr. Graham Lees has been named Head of Aircraft Sales, based in Singapore. Prior to this, he was the crease for Maximum Take-Off ratings (MTO), thus enhancing performance in hot and high operating con- Head of Airline Leasing & Sales for Asia Pacific and the Middle East, backed by more than 25 years of ditions. The PW127N will be rolled out progressively to Avianca’s ATR fleet throughout 2014 and 2015. experience in various disciplines within the commercial aerospace sector, including senior positions with FW: Fiji Airways Group welcomes its first new ATR 72-600 for Fiji Link:The domestic and regional both airframe and engine manufacturers. Mr. Lees graduated in Mechanical Engineering from Derby Uni- subsidiary of Fiji Airways, Fiji Link took delivery of its first brand new ATR 72-600 on operating lease versity and holds a Master of Business Administration degree from Loughborough University in the UK. from Singapore-based aircraft leasing company Avation PLC. The acquisition of the new ATR is as part of Mr. Nick Devall is appointed Head of Airline Leasing & Sales for Asia Pacific and Middle East, adding airline’s dynamic expansion plan to support network growth on its domestic and regional routes in the depth to the management team with 29 years of experience marketing and selling to airlines globally. He Pacific Islands, which it today operates on behalf of Fiji Airways. will be based in Singapore. He holds an Honours degree in Economics and Geography and a Master of Philosophy from Sheffield University, UK. ATR - AACO Partner since 1998 BOC Aviation - AACO Partner since 2003

Boeing 737 MAX LEAP-1B engine begins ground testing:CFM Internation- al announced it has successfully initiated ground testing of the first all- new LEAP-1B engine that will exclusively power the Boeing 737 MAX. CFM Bloomberg, the global business and financial information and news leader, gives decision makers a criti- ran the engine for the first time on June 13, three days ahead of schedule. The LEAP-1B engine, installed cal edge by connecting them to a dynamic network of information, people and ideas. in a test cell at Snecma (Safran) facilities in Villaroche, France, successfully completed a series of break-in runs before reaching full take-off thrust. The company’s strength – delivering data, news and analytics through innovative technology, quickly Boeing expands capabilities for pilot training around the world:Boeing announced on 17 June the and accurately – is at the core of the Bloomberg Professional service, which provides real time financial placement of several new full-flight simulators that expand capabilities for pilot training globally, while information to more than 315,000 subscribers globally. Bloomberg Industries (BI) provides subscrib- bringing more training closer to where airlines operate. Two simulators—a Next-Generation 737 and ers interactive, continuously updated industry research and data. BI’s team of more than 100 research 777—are now ready for training at the Boeing Flight Services Singapore campus. Another 787 Dream- professionals covers over 100 industries globally, offering in-depth data and analysis for each industry’s liner simulator has also been placed at the London Gatwick campus where two other 787 simulators are drivers, metrics, competitors, themes and earnings. The BI portal also aggregates information from more already located. than 200 third-party providers. Boeing, Turkish Airlines finalize order for 15 additional 737 MAX 8s:Boeing and Turkish Airlines finalized an order for 15 additional 737 MAX 8s, valued at USD 1.6 billion at list prices. The order follows the Regional Main Contact announcement in May 2013 when the Turkish flag carrier placed the largest Boeing order in the airline’s Name: Mr. George T. Ferguson, IV, CFA history for 50 737 MAXs and 20 Next-Generation 737s. Position:Senior Analyst Aerospace/Defense & Airlines Boeing statement on China Eastern Airlines’ commitment for 80 737s: Boeing announced that China Telephone: +1- 609.279.3591 Eastern Airlines has committed to purchase 80 737s, including Next-Generation 737 and 737 MAX air- Email: [email protected] planes. When finalized, the order will become China’s largest-ever purchase by an airline for single-aisle Website: www.bloomberg.com airplanes, worth more than USD 8 billion at current list prices. Bloomberg - AACO Partner since 2013 Boeing Delivers 1,500th 747: Boeing has delivered the 1,500th 747 to come off the production line to Frankfurt, Germany-based Lufthansa. The milestone airplane is a 747-8 Intercontinental, the 14th one that Lufthansa will incorporate into its long-haul fleet. Boeing- AACO Partner since 1998

Daily news on www.aaco.org Issue 88 - Jul 2014 65 Our Partners News

Saudia adopts CHAMP’s Weight & Balance solution:Saudia, the flag carrier of Saudi Ara- Engine Lease Finance Corporation (ELFC)extended its position bia and a member of the SkyTeam airline alliance, has signed another deal with CHAMP as the world’s largest independent aero-engine lessor in 2012 Cargosystems, thus strengthening its more than 30-year long, fruitful cooperation with the with another record year of spare engine portfolio growth. IT solutions provider. By selecting CHAMP’s Weight & Balance solution for the load plan- We maintained keen focus on spare engine support for our numerous customers in the MENA region ning of its freighter fleet, the airline will be able to benefit from automated and optimal with further growth in short and long term engine lease support to airline members of AACO. aircraft loading. This will make the loading planning process faster, leading to better aircraft performance at reduced costs. It will also reduce fuel consumption across the freighter fleet. We are very proud to play a support role in 2013 in the success of MENA airlines, large and small and will Saudia has chosen the new Weight & Balance application after an extended trial period, which con- continue to offer our products during the coming year: firmed the solution as the “best in breed” product for managing freighter operations. The web-based so- • Shop Visit Cover – leasing of our spare engines into airlines to cover short term scheduled and un- lution enables Saudia to meet the specific challenges of efficiently planning all loads, however complex, scheduled engine removals; on its freighters. Weight & Balance is optimized to help the freighter operator automate its loadsheet • Long term Engine provision – leasing our engines over several years to provide our airline custom- and load planning processes and further improve its financial and operational performance, reducing ers with cost efficient operation of spare engines, removing the capital intensive demand of spare costs and operational risks. engine acquisition; CHAMP’s Weight & Balance application is easy-to-use with a graphical drag & drop interface and will pro- • Purchase-leaseback of engines owned by airlines. With the backing of our parent company Bank of duce loading instructions, loadsheets (graphical and IATA formats) that can be printed and e-mailed. The Tokyo-Mitsubishi UFJ. Ltd. we have the financial resources required to provide clear financial and tool integrates seamlessly with cargo operational systems such as CHAMP’s Cargospot, which will save operational benefits for our customers. Saudia up to 70% of processing time and eliminate input errors. The solution’s comprehensive audit trail and reporting provides further management insight into the fleet’s performance. We have a wealth of experience to share – without obligation.

CHAMP - AACO Partner since 2010 For more information, please contact Senior Vice President Mr. Julian Jordan at e-mail: julian.jordan@ elfc.com ELFC- AACO Partner since 2003

CFM begins LEAP-1B engine ground test program: CFM International has initiated ground Farelogix taking Merchandising as a Service (MaaS) on the road: Mega testing of the first LEAP-1B engine at Snecma (Safran) facilities in Villaroche, France. The Event Asia Pacific 2014 is fast approaching. The conference takes place in testing launches a two-year program that will culminate in engine certification in 2016 and Singapore from August 20-21, 2014 and Farelogix (www.farelogix.com) is entry into commercial service on the Boeing 737 MAX airplane in 2017. sponsoring the Ancillary Revenue pre-Conference Workshop and MasterClass (on August 19) with Jay The LEAP-1B engine, which is the exclusive powerplant for the 737 MAX family, fired for the Sorensen, author of the Ancillary Revenue Guide. Mega Event Asia Pacific 2014 will host three events in first time on June 13th, three days ahead of the schedule set when the program was launched in 2011. a single venue, covering Frequent Flyer Programs & Frequent Guest Loyalty, Ancillary Revenue & Mer- After a series of break-in runs, the engine has been operating smoothly and has reached full take-off chandising, and Travel Co-branded Credit Cards with a dedicated focus on key issues and challenges. As thrust. consumers take to the skies, what role will loyalty, ancillaries, and co-branded cards have to play in the The engine will be on test for the next several weeks, during which CFM will verify its mechanical opera- airline and travel industry? The Ancillary Revenue pre-Conference Workshop will take place on August tion, its operability (stall margin), engine starts, and further validate the advanced technologies incor- 19, and will consist of these focus areas: porated in the engine, including the woven carbon fiber composite fan, the Twin-Annular, Pre-Mixing - Ancillary Revenues Boost the Bottom Line:This presentation will provide a worldwide overview Swirler (TAPS) combustor, ceramic matrix composite shrouds in the high-pressure turbine and titanium of a-la-carte activity and give practical advice on implementing revenue enhancements, including a aluminide blades in the low-pressure turbine. perfect introduction to ancillary revenue with an emphasis on checked and carry-on bag services. Pakistan International Airlines and CFM celebrate 30-year relationship:Pakistan International Airlines - Profit from Innovation:The benefits of Ancillary Revenue reach all over the world! This session (PIA) and CFM International celebrated a relationship that has been 30 years in the making. will cover new products and the revenue achieved by best-practice airlines and other industries. The Pakistani carrier was one of CFM International’s very first customers and began operating CFM56- - Choice and Creativity: Carriers build Ancillary Revenue by empowering a consumer’s right to 3-powered Boeing 737-300 aircraft in 1985. choose. This presentation will describe three retailing methods that encourage customers to spend PIA operates scheduled services to 24 domestic destinations and 38 international destinations in 27 more: a-la-carte, and fare families. Learn website merchandising tactics that produce premium rev- countries across Asia, Europe and North America from its headquarters at Jinnah International Airport in enues for airline travel. Karachi. - Ancillary Revenue Delivery and Technologies: An interactive discussion to debate the challenges CFM - AACO Partner since 1998 of Ancillary Revenue delivery from both technical and implementation standpoints. Will also feature a demonstration of how modern merchandising technologies enable airlines to quickly deliver new ancillary products and services to grow both revenue and customer loyalty. Click here for more information on Master Class. Farelogix - AACO Partner since 2013 Daily news on www.aaco.org Issue 88 - Jul 2014 67 Our Partners News

Hahn Air’s solution? That’s true global distribution. Risk and hassle free.

Doing business on a worldwide scale involves risks and costs no matter what industry. International financial transactions, political risks and local require- GE Capital Aviation Services delivers new Boeing 787 to TUI Travel in purchase-and-leaseback deal:GE ments cause nightmares even to well established institutions, let alone companies that claim success Capital Aviation Services Limited (GECAS), the commercial aircraft leasing arm of GE, announced delivery but are not recognized or possess the knowhow to make a global impact or that are new to global sales of a new Boeing 787-8 Dreamliner to TUI Travel as part of a purchase-and-leaseback transaction. altogether. As part of its wide body strategy, GECAS placed an order directly with Boeing in September 2013 for 10 Airlines often have to face the insolvency of a partner agency or a financial institution and even fraud, be of the Boeing 787-10 Dreamliner models. These aircraft are scheduled for delivery beginning in 2019. it credit card or travel agency fraud. Along with these risks comes the complexity. When expanding globally, airlines have to face conditions GECAS wins people development award at inaugural Irish Aviation Industry Awards ceremony: GECAS that differ from country to country. This includes legal requirements and money repatriation. Especially won top honors for its employee training and development programs at the 2014 Irish Aviation Industry retrieving funds to the home country requires close monitoring of each market on a daily basis. Awards. Sponsored by the Irish Aviation Authority, the ceremony in Dublin recognized excellence in the aviation Hahn Air, with its global approach, takes the risks and complexity away from the air- sector that employs some 26,000 people in Ireland. Eighteen winners were chosen from more than 120 lines. entries submitted by over 70 companies. Our presence in more than 190 markets, together with our unique business model GECAS was recognized for its employee training and development strategy, a key component of GECAS’ based on partnership with 280 air and rail partners, provides carriers with all business industry leadership. The award highlightd GECAS’ comprehensive program for people development and models and individual requirements with an opportunity to grow beyond their own talent retention, its innovative training programs, and undergraduate partnerships to bring new employ- possibilities. ees into the business. GECAS - AACO Partner since 2003 If you want to know more about our economic solution or want to find out in detail how we manage all risks and challenges, please contact us at [email protected]. Hahn Air - AACO Partner since 2014 European e-commerce grew by 16% to €363 billion in 2013: The Hogan Lovells is a global legal practice that helps corporations, financial institutions, European online revenue of B2C goods and services grew by 16.3% and governmental entities across the spectrum of their critical business and legal is- to € 363.1 billion in 2013. Within this, the EU28 achieved a B2C e- sues globally and locally. We have over 2,500 lawyers operating out of more than 40 commerce turnover of € 276.5 billion. This is 87.6% of the total European B2C e-commerce turnover and offices in Africa, Asia, Europe, Latin America, the Middle East, and the United States. a growth of 15.0% in comparison with the preceding year. This is apparent from the new European B2C Hogan Lovells is one of a small number of leading global law firms with in-depth E-commerce Report 2014, which was published during the Global E-commerce Summit in Barcelona. The knowledge in aviation-related matters worldwide. Our aviation team regularly- re European e-commerce figures are compiled with various national e-commerce associations and in coop- ceives first-tier rankings from Chambers USA., which notes in its 2014 edition “An excellent law firm, eration with GfK. In addition, the report is made possible with the support of GlobalCollect, Informatica staffed by outstanding attorneys, that achieves results; impressive by any measure.” We are also known Corp, RichRelevance and Salesupply. for strong cross-border and asset finance work in global markets, earning praise from The Legal 500 for In 2013, the countries with the highest turnover in the field of e-commerce were once again the United “clarity of thought, a solutions-driven approach and exceptionally talented partners.“ Kingdom (€ 107.1 billion), Germany (€ 63.4 billion) and France (€ 51.1 billion). The total of € 221.6 billion Clients benefit from our aviation lawyers’ experience in public service, which include positions as Chief of these three nations combined represents 61% of the total European B2C e-commerce sector, and 69% Counsel of the U.S. Federal Aviation Administration (FAA), Special Assistant to the Secretary of Transpor- of the EU28. tation, Special Counsel to the Administrator of the FAA, Special Assistant to a member of the National GlobalCollect and QIWI partner to connect international merchants to over 70 million consumers in Transportation Safety Board and Executive Assistant to the Chair and Vice Chair of the Civil Aeronautics Russia and CIS: GlobalCollect announced that it has signed a partnership agreement with QIWI plc. As Board. In addition, our aviation lawyers team with lawyers from the firm’s network of more than 40- of part of the deal, GlobalCollect has integrated QIWI into its portfolio of payment products. fices worldwide to address a broad range of legal issues, including antitrust, corporate, finance, environ- By adding QIWI to their payment mix, GlobalCollect merchants gain access to over 70 million consumers mental, tax, litigation, lobbying, and regulatory matters. in Russia and the CIS. The company is already seeing strong demand across all industries, with gaming We represent all segments of the aviation industry, such as air carriers, airports, corporate aircraft own- and digital media companies among the first to start accepting QIWI payments through GlobalCollect. ers and operators, municipalities, aerospace manufacturers, repair facilities, aviation trade associations, foreign governments, business aviation operators, fractional ownership providers, unmanned aircraft GlobalCollect - AACO Partner since 2007 systems providers and operators, and aircraft leasing and financing organizations. The insights we derive from our diverse practice enable us to achieve our clients’ goals more efficiently and effectively. Hogan Lovells - AACO Partner since 2014

Daily news on www.aaco.org Issue 88 - Jul 2014 69 Our Partners News

Inmarsat to lead EU-wide roll out of in-flight passenger broadband services: IAS launches new website: In the continuity of 2013, marked by the com- Inmarsat announced its decision to deploy an integrated telecommunications plete overhaul of its major material communication tools and support network to deliver aviation passenger connectivity services on a EU-wide basis. (marketing brochure, institutional presentation, poster, activity report, etc.), To achieve this ambition, Inmarsat confirms its order for a new S-band satel- IAS has undertaken a similar process regarding its major digital communica- lite, to be called Europasat, and expects to complement this satellite with a fully integrated air-to-ground tion tools and support. As a result, after issuing a new quarterly newsletter (now both paper and digital network across the EU. versions) in the first quarter of 2014, IAS will announce in July the launch of its new website, built with Inmarsat’s new aviation network will deliver high speed broadband services to commercial and busi- the help of its partners: 31ème arrondissement and Studio Oui Oui. Our next issue will dedicate a few ness aviation passengers. These capabilities will be offered alongside Inmarsat’s Global Xpress aviation lines to the main contents and features. This latest development will be followed by the production of an services, extending Inmarsat’s service coverage for aviation passengers seamlessly across the rest of the institutional video by the end of the year. globe, and placing Inmarsat in a leadership position in the global in-flight passenger connectivity market. IAS holds 2014 board meeting: The 2014 IAS Board meeting took place on the 10th of June at the GIFAS A market that is already both substantial and rapidly growing in North American and which offers -ex in Paris, in order to submit and validate the annual accounts for 2013. For the record, IAS 2013 accounts ceptional growth potential globally. To reduce initial programme costs, Inmarsat and Hellas-Sat, a non- show a significant increase in operating revenues (+10% at 3.680 million Euros), driven by a strong sales competing European satellite operator, have contracted with Thales Alenia Space for the construction growth (+15% at 2.784 million Euros). of a satellite on a shared basis such that each partner will retain exclusive rights to a separate payload. In 2013, IAS trained 392 professionals through eight specific training sessions (short training and proj- Inmarsat’s S-band payload will be called Europasat and the satellite is expected to be delivered for ects), representing around a thousand hours training. This is sustained by a solid activity related to the launch at the end of 2016. As a result of the shared payload agreement, Inmarsat’s costs for the manu- Master program (specialized masters and doctorates), with 59 trainees for the 2012-2013 class. facture, launch, insurance and operations of Europasat are expected to be approximately USD 200m or IAS to hold 2014 FASIA ceremony in September: IAS is pleased to announce that the traditional FASIA half of what it would have cost to deploy an S-band satellite on a stand-alone basis. The majority of the ceremony will take place on Thursday the 25th of September in Toulouse. You will soon receive an e-mail expected cost will be incurred over a 3-year period. to allow you to save the date in your diary. The aviation network deployment will be enabled by Inmarsat’s existing authorisation to operate inte- This event will provide our new General Management and our teams with the opportunity to present IAS grated satellite/terrestrial communications services in 30MHz of S-band frequencies across the 28 Mem- operational activities over the last year, to give the floor to some major partners, and of course to pres- ber States of the EU. ent the French Aeronautic & Space Industry Award to the 41 trainees of the 2013-2014 class of the IAS Inmarsat - AACO Partner since 2013 Master Program. IAS - AACO Partner since 2008 Innovata, a global leader in travel and hospitality content management Danish Air Transport EFB use authorized with Jeppesen and distribution solutions is recognized as a major industry source for FliteDeck Pro: Danish Air Transport recently gained autho- worldwide airline schedule and related data. As a partner of IATA in mar- rization from the Danish Transport Authority to operate with Jeppesen FliteDeck Pro as its mobile elec- keting the Schedule Reference Service (SRS) to the aviation and consulting industries, Innovata maintains tronic flight bag (EFB) solution. Jeppesen, a part of Boeing Digital Aviation, provides Danish Air Transport one of the world’s largest flight databases (passenger and cargo) representing more than 99% of the air with FliteDeck Pro for Windows to increase operational efficiency. segment miles flown worldwide, containing over 900 airlines, 95% of which are updated and refreshed Danish Air Transport uses both installed and mobile EFB platforms in its operations to access critical flight every week. information more efficiently. Primary data display for Danish Air Transport pilots is provided through na- Innovata delivers comprehensive, accurate and reliable up to date information to meet a wide range of vAero units and Panasonic tablets integrated with the AvioBook EFB suite application. Supplemental data data service needs for aviation related industries and is the market leader in the provision of timetables is accessed through iPad by the airline. and route mapping services, via all distribution channels, to airlines and airports worldwide. Jeppesen FliteDeck Pro for Windows 8 now available: Jeppesen introduced its FliteDeck Pro electronic Take a look on the AACO website at the dynamic and interactive route network mapping service pro- flight bag (EFB) solution for Microsoft Windows 8 tablets. Jeppesen FliteDeck Pro helps streamline the duced by Innovata, showing direct routes, online and interline connections, and a comprehensive time- use of navigational information for airlines, fractional business jet operators and military fleet programs. table display for all 27 member airlines, dynamically plotted and displayed for users searching and query- Delta Air Lines is equipping 11,000 pilots with FliteDeck Pro on Surface 2 tablets across its fleet to in- ing: http://aaco.innosked.com/ crease operational efficiency. Jeppesen FliteDeck Pro enables significant weight savings with reduced fuel Headquartered in Atlanta, USA, with regional offices in UK and Singapore, Innovata serves over 200 cus- consumption through the removal of paper content from the operation. Improved safety margins are tomers, in 52 countries. also achieved through increased situational awareness. Jeppesen customers can choose from a full range Regional Main Contact: of portable, secured, and installed EFB configurations, all centrally managed by the global Jeppesen Dis- Name: Mr. John McAleavy, Regional Account Manager Europe, Africa & Middle East tribution Manager Pro (JDM Pro) secure network. Telephone: +44 (0)1582635018 Jeppesen helps Air Malta achieve paperless operations: Air Malta recently received authorization to Fax: +44 (0)1582635001 operate in a fully digital capacity, using Jeppesen FliteDeck Pro on iPad as its electronic flight bag (EFB) Email: [email protected] solution. Jeppesen helped Air Malta achieve the significant clearance from the Civil Aviation Directorate Website: www.innovata-llc.com in Malta to operate as one of the initial paperless carriers in Europe. Innovata - AACO Partner since 2003 Jeppesen - AACO Partner since 2008

Daily news on www.aaco.org Issue 88 - Jul 2014 71 Our Partners News

Assisting passengers with special needs and annual CRO training

Annual Complaints Resolution Official (CRO) training is required for carriers to be in compliance with 14 Kennedys accelerates growth with 10% increase in turnover: Kennedys has reported a 10% increase in CFR Part 382, Nondiscrimination on the Basis of Disability in Air Travel, in support of the Air Carrier Ac- turnover for 2013/14 to £128.5m, up from £117m in 2012/13. Of that increase, £98.3m came from UK cess Act. activity alone. If you haven’t scheduled your 2014 CRO training and need a class to ensure compliance, MedAire contin- Our merger with aviation practice Gates and Partners gave a boost to turnover in the UK, Singapore and ues to offer Air Carrier Access Act Training courses worldwide to assist carriers with compliance to Part Dubai, and allowed an expansion of our service to the insurance and aviation industries. 382.

We made strong lateral hires last year including: To date, more than 100,000 crewmembers have participated in MedAire’s CRO Training. The course is - Michael Skrbic (global insurance/capital markets, London) offered in 7 languages. - Martin Cox (costs, Sheffield) - Claire Bushen (professional indemnity, Manchester) You may also be interested in learning more about CRO Assistance, a 24/7 resource to assist carriers with - Simon Taylor (sport/entertainment insurance, Manchester) appropriate and compliant responses to situations involving passengers with disabilities. - Andrew Crocombe (professional indemnity, Taunton). Whether or not an airline is required to comply with a fairness-in-access regulation, every customer in- An association with Bogota-based insurance law boutique Botero Salazar Tobón & Abogados also helped teraction with crew members, gate agents, reservation agents, customer service personnel, and baggage us increase our reach into Latin America. handlers affects the overall travel experience and the image & reputation of an airline and airport. Across the globe, Kennedys now has 19 offices with over 1,200 people. Kennedys - AACO Partner since 2011 Learn more: www.medaire.com/airlines or email [email protected] MedAire - AACO Partner since 2008 New Lufthansa Consulting headquarters in Frankfurt:Lufthansa Get passengers and cargo to their destinations—safely and on time. That’s the Consulting will move its German-based offices to new headquarters promise of every airline. Rising complexity puts the burden on technology to in the Frankfurt Airport Center (FAC). The company will bring employees from the former Frankfurt and keep it. Cologne offices together to one new joint home base. The relocation will take place in August 2014. As mercator provides business technology solutions and services to the global from then you can contact Lufthansa Consulting at the new head office close to terminal 1, just a step airline industry. Our value proposition is a compelling one: reduced costs, improved processes and in- away from your next stop at Frankfurt airport. Working together at the new centralized location will creased performance. Our mission is to bring our airline clients and passengers closer to the technology improve communications and thus the efficiency of the management consultancy’s organization. It also solutions they need for smooth, efficient travel. makes it easier for the consultants to reach their project sites all over the world. mercator’s solutions cover five key areas of service excellence: Safety, Passenger, Cargo, Loyalty and Improve your on-time performance: Lufthansa Consulting identifies your airline’s cost and delay drivers Finance. For example, our new safety and compliance management system, mSID, focuses on ensuring and enables you to reduce the cost of delays sustainably. We also define together with you improvement that standards of safety are continually improved, protects the welfare and safety of customers, col- potentials on the entire ground handling value chain as well as interfaces to other activities such as flight leagues and equipment; and predictably improves operational performance. operations, maintenance and external service providers, as fuel provider or ATC. mercator’s newly-developed baggage tracking and management technology, mBELT gives ground han- Any airline can tackle cost and delays by 5 – 20 % with the right approach, tools and methodology. dlers and airports an end-to-end tool to help them manage the entire lifecycle of their passengers’ bags, Lufthansa Consulting offers services which match your needs and improve your performance manage- adding high visibility and transparency to baggage movement. ment: Our clients span the globe and include award-winning carriers, hybrid, low-cost and regional airlines. - Gap analysis on processes, IT, training, etc. While aviation has always driven our technology, the variety of operations we serve has taken our indus- - Best practice benchmarking of delay situation try expertise to another level. Our IT infrastructure helps any airline reduce costs, streamline processes - On-time-performance concept development and increase productivity-enabling you to deliver your essential promise. - Action plan development Regional Main Contact: - Reference model development for aircraft turn around process Name: Mrs. Bashira A Nashawati, Sales Support: mercator - Emirates Group - Definition of ground, maintenance and turnaround times Telephone: +971 42032036 - Schedule adjustments Email: [email protected] - Best arrival time concept Lufthansa Consulting - AACO Partner since 2010 Website: www.mercator.com mercator - AACO Partner since 2003

Daily news on www.aaco.org Issue 88 - Jul 2014 73 Our Partners News

MTU Maintenance honored as “Best Engine MRO Provider” by ATE&M: MTU Optiontown is the pioneer in the world of ‘Dynamic Travel Options’. Maintenance was named “Best Engine MRO Provider” by the renowned Aircraft Our technology developed following extensive research at the Center of Technology Engineering & Maintenance magazine, one of the most read periodi- Transportation Studies at the MIT in Boston, Optiontown gives airlines cals in the commercial aviation community. MTU Maintenance received this year’s a ground-breaking platform to use patented post-ticket-purchase algorithms based on the principles of award for providing unique alternatives for the engine MRO market. ‘Concurrent Optimization’. “We are very grateful that ATE&M has honored us with this fiercely contested award,” said Dr. Stefan We- Without cash investment for the carrier or complex and lengthy IT integration, airlines can generate ingartner, President MTU Maintenance at MTU Aero Engines. between 3 and 7% incremental revenues from its core business – the airline seat - while enhancing util- The ATE&M Awards acknowledge outstanding performance and success in the commercial avia-tion after- ity for their customers by creating a unique travel experience of increased comfort and convenience at market and have succeeded in establishing themselves as a annual highlight. The winners of the ATE&M affordable prices – fulfilling the consumers’ unmet desires. Awards 2014 were announced at a gala ceremony at The Royal Garden Hotel in London which was at- The Optiontown product portfolio includes Upgrade Travel Option (UTo), Flexibility Reward Option (FRO), tended by over 200 guests from across the global aviation industry. The honor is based on the decision of Empty Seat Option (ESO) etc. and is based on patented algorithms using the latest concepts of artificial an international judging panel of 19 industry experts who voted on the industry winners in fourteen main intelligence. These options on ancillary services are available to the passengers after purchasing a ticket categories. A total of 1,600 nominations from all areas of the aviation industry were given by industry from the airline or a travel agent. peers, highlighting the competitive environment of this award. The shortlisted entries were then reviewed World-class international airline clients use the Optiontown suite of algorithms to enable interaction by the judges who chose the winners. It is the second time that MTU Maintenance has won the ATE&M with their passengers. Optiontown is head-quartered in Boston, Massachusetts and operates branches in Award which was first presented in 2010. Canada, India and Europe. MTU Maintenance is one of the world’s leading providers of commercial aero engine maintenance, re- For more information, please contact: pair and overhaul. Apart from core engine maintenance, the company also repairs engine com-ponents Mr. Anuj Goel/ Vice President Sales & Marketing and accessories. In addition MTU Maintenance provides engine leasing solutions, on-site and on-wing Tel : +1-617-207-5554 services, as well as technical and logistical support including LRU management. Re-cently, the company in- email : [email protected] troduced new aftermarket services for mature engines under the name MTUPlus Mature Engine Solutions, Visit : www.optiontown.com which cater to the specific needs of operators of mature engines offering considerable savings potential. Optiontown - Enjoy unique travel options www.mtu.de MTU - AACO Partner since 2013 Optiontown - AACO Partner since 2011 Free Wi-Fi for Saudia’s premium passengers: Saudia has become the first airline Established in 2006, Quali-audit is an Audit Organization (AO) officially accred- in the Middle East to offer free Wi-Fi to its first class and business class passen- ited by IATA to conduct IOSA audit (IATA Operational Safety Audit), ISAGO audits gers. The promotion, which started on 19 May, is available on flights between (IATA Safety Audit for Ground Operations) and Endorsed Training Organization the Kingdom of Saudia Arabia and US destinations, as well as London Heathrow, (ETO) to train IOSA auditors. Quali-audit is an independent, wholly-owned subsidiary of Air France group, Paris Charles de Gaulle and Dubai. Saudia’s inflight connectivity is provided by OnAir. The airline is giving with principal offices at Paris Charles de Gaulle airport (France) and additional offices in Atlanta, Georgia all premium passengers vouchers for Internet OnAir, providing free Internet access for the entire flight. (USA) and Buenos Aires (Argentina). We offer a complete range of services including safety and opera- Iberia flies across the Atlantic with OnAir connectivity: Iberia is offering OnAir’s inflight connectivity on tional audits, training and operational assistance in the fields of air operations. We are committed to transatlantic routes. Iberia passengers flying between Europe and the Americas can use the inflight Wi-Fi assist airlines in achieving a higher level of safety, security and quality. and GSM during the flight. The Quali-audit team includes 56 highly experienced professionals with multi-cultural background and By 2015, both Mobile OnAir and Internet OnAir will be installed on 25 Iberia A330s and A340s. Passen- experience. Our teams of auditors / instructors have an average experience of 30 years in aviation. gers on these long-haul aircraft can use their phones and tablets to chat, tweet and send text messages. Many of our auditors were founding members of the IOSA Task Forces that created the IOSA standards OnAir calls for US airlines to be given the freedom of choice about inflight cell phone usage: With the and several continue to be actively engaged in the continued evolution of IOSA. ending of the FCC’s consultation period on the extension of the access to mobile wireless services on- Our services include: IOSA Audit, Gap analysis, Preparation, Follow-up; ISAGO Audit, Gap analysis, Prepa- board aircraft, OnAir is once again urging the telecoms regulator, as well as the FAA, to define the legal ration, Follow-up; Operational Safety Audit and Evaluation; US-Department of Defense (DoD) Audit; framework and to give the decision about inflight cell phone usage to airlines. It is also calling on the Line Operations Safety Audit expanded (LOSAe); Other audits including against EASA, FAA, ICAO scope; Federal Government not to pass legislation banning inflight cell phone use. It is clear that inflight con- IOSA Auditor Training (IAT); IOSA Familiarization Training; Quality Auditor Training; SAFA Training; Airline nectivity is a growing market in the US, as it is across the world. Skift recently published the results of Operational Management Training; Safety Management System (SMS) (Training, Audit, Implementation); a survey showing that only 18% of air passengers in the US have used inflight connectivity, suggested a Human Factor and CRM Training; Dangerous Goods Training; and Security (SEMS) Training. significant potential for growth. We are pleased to offer our services to AACO members and we thank the airline members who already The survey also showed that 18-24 year olds are the most likely to use inflight connectivity to communi- have chosen to work with Quali-audit. Presently we have already offered our services to the following cate with their friends, family and colleagues on the ground. AACO members: Saudia, Yemen Airways, Royal Air Maroc, Middle East Airlines, Air Algérie, Tunisair, Jor- OnAir’s is not the only voice calling for airlines to have the choice. dan Aviation, Oman Air, Afriqiyah Airways, Libyan Airlines and Nouvelair with excellent feedback. OnAir - AACO Partner since 2009 Quali-audit - AACO Partner since 2008 Daily news on www.aaco.org Issue 88 - Jul 2014 75 Our Partners News

Rockwell Collins announces STARS Airlines Tunisia’s selection of ARINC AviNet Mail Enterprise Messaging Service: Rockwell Collins announced on 4 June that STARS Airlines Tunisia has selected its ARINC AviNet Mail Enterprise Hub (eHub) as its cloud-based messaging delivery service. STARS Airlines provides ground support for all Tunisian and Moroccan airports, with services that include ground handling supervision, operations support, permit requests, fuel request, hotel accommodation, ground transportation and catering. Rockwell Collins’ eHub was selected as the primary messaging platform because it provides a cost- effective solution that enables STARS Airlines to send and receive passenger processing and cargo system messages from airline handling agents. As a cloud-based service, AviNet eHub requires no expensive internal server installs or software licensing fees, offers free local traffic routing and reduces customer costs for training, infrastructure and messaging transactions. São Paulo International Airport goes live with Rockwell Collins’ ARINC passenger reconciliation system: Rockwell Collins is implementing its ARINC VeriPax™ passenger reconciliation system at São Paulo International Airport (GRU) through a contract with Concessionária do Aeroporto Internacional de Gua- rulhos S.A. The first phase of the project went live prior to the start of the 2014 World Cup on June 12. ARINC VeriPax streamlines the entire check-in process by dramatically decreasing the time needed to screen passengers at security checkpoints. Using automated security screening capabilities, ARINC VeriPax reads boarding passes using new 2D barcode scanners, automatically screens passengers against flight information systems in real time, determines clearance and provides alerts to agents when necessary. In the future, it will also screen passengers against airline host systems. Rockwell Collins - AACO Partner since 2002

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“Our Economy Plus seats provide tremendous value to our customers,” said John Slater, United’s vice president of sales for the Americas. “This next-generation travel technology enables our travel management partners and travel agencies to offer the same Economy Plus shopping experience as we do on united.com.” Sabre appoints Shahin Taromsari as Vice President, Airline Solutions, Europe, Middle East and Africa: United joins more than 20 airlines worldwide using Sabre’s supplier merchandising capabilities to sell Sabre Corporation (NASDAQ: SABR), a global technology provider to the travel and tourism industry, their products in new ways. Sabre’s solutions allow airlines to sell their ancillaries in over 120 countries, has appointed Shahin Taromsari as Vice President of Airline Solutions, Europe, Middle East and Africa more than any other GDS, and are directly imbedded in an agent’s shopping workflow for seamless ef- (EMEA). Taromsari will lead Sabre’s airline business in EMEA, a key growth region for the company. He is ficiency tasked with growing the company’s revenue and customer base in EMEA, and maintaining successful and trusted partnerships with existing airline customers. A technology industry veteran, Taromsari brings more than 20 years of technology experience from lead- Sabre unlocks possibilities in travel with new developer platform: Sabre Corporation is launching a new ership positions with EDS, IBM and most recently as Vice President of Global Sales with Oracle. He holds developer platform as well as new travel services and application programming interfaces (APIs) to allow a BSe in Information Technology from Manchester Metropolitan University, a PhD in Business Informa- developers all over the world to integrate travel into their applications. tion Management Systems from Manchester University, a PhD in Artificial Intelligence from Massachu- Leveraging a new, open portal, called Sabre Dev Studio, developers from travel companies, online travel setts Institute of Technology (MIT) and an MBA in International Business Studies & Strategic Thinking sites, start-ups, meta-search and social sites, can access more than 150 APIs, as well as testing tools, from Harvard Business School. “Shahin Taromsari is an accomplished IT and business leader who brings documentation, prototypes and sample code, and additional resources available from Sabre in an open tremendous experience from blue-chip technology companies,” said Greg Gilchrist, senior vice president, developer community. In addition, the company is introducing several new, mobile friendly, sub-second Airline Solutions. “Airlines in EMEA are looking for cost efficiencies and revenue opportunities to support response-time shopping and intelligence APIs that developers can use to build new search capabilities for their expansion plans, and Sabre is increasingly selected as the preferred technology partner to support travel. The move to a new developer platform reinforces Sabre’s leadership efforts to make travel more them. Taromsari’s deep IT knowledge, impressive academic credentials, and constant drive for innova- personalized and easily accessible to consumers through new travel apps and services provided by travel tion will help accelerate our growth plans in this important region.” suppliers, travel agencies, online travel sites, and social sites. It also supports the company’s strong com- Sabre’s airline technology is used by 225 airlines worldwide including most of the world’s largest carri- mitment to helping airline, hotel, and travel agency customers identify new revenue opportunities, and ers. Its flexible software helps airlines optimize day-to-day airline operations and overcome their biggest deliver differentiated services. challenges – to increase revenues, reduce costs and deliver better travel experiences. Sabre’s passenger “At USD 6.6 trillion, travel and tourism is one of the largest sectors of the global economy, and it is ex- reservations system, used by 85 airlines worldwide and recently selected by airberlin, helps airlines cre- pected to grow over 4 percent in 2014,” said Greg Webb, president of Sabre Travel Network. “Sabre ate a more personal travel experience for consumers through targeted flight offers and tailored services. Dev Studio will unlock potential for developers to accelerate software solutions in the areas of mobility, personalization and data analytics – all of which ultimately will result in innovation that will benefit the whole industry.” Sabre launches the capability to sell United conomy Plus seating:Sabre Corporation (NASDAQ: SABR) Examples of Sabre’s new travel services include six-month calendar shopping, shopping across hundreds and United Airlines announced that the airline’s Economy Plus seats are available for sale globally of alternate airports, and shopping by budget or theme. Built on a patent-pending platform, the new ser- through travel agents using the Sabre global distribution system (GDS), which enables airlines to bring vices allow developers to experiment with different APIs and create prototypes quickly and easily, signifi- unique products and a multitude of personalized offers to travelers. cantly reducing development cycles and time-to-market – a unique offering in the travel industry. United’s Economy Plus seats, which are located at the front of the Economy cabin, enable customers to For travelers, the APIs available through Sabre Dev Studio will result in new ways to shop for travel, en- stretch out with more room to work and relax. The airline offers more extra-legroom economy-class seat- abling applications to answer questions like, “Where can I fly for USD 500?,” “What beach destinations ing than any other airline in North America. have the best fares in August?,” and “When is the best time to buy my tickets?”. “Travelers want more In addition to having the ability to book United’s Economy Plus seats within their existing workflow, trav- personalization. They want to shop for travel in new ways and in the places they choose, whether at travel consultants can view a multitude of detailed seat characteristics and expanded cabin layouts, which el agencies, online travel sites, search engines, or social sites. Travelers want to be inspired and they want also include flat-bed seats, via Sabre’s enhanced interactive seat map. the experience to be easy and intuitive,” Webb said. “Sabre Dev Studio makes this possible by stimulat- The airline seats can be purchased on United flights, regardless of destination, by Sabre subscribing ing innovation, resulting in great experiences for travelers and new revenue streams for travel suppliers, agencies. Sabre agents can also assign Economy Plus seats to United’s eligible frequent flyers and those developers, agencies, and online travel and social sites.” who have purchased an annual subscription. The Sabre travel marketplace processes more than USD100 billion in travel spending annually and pro- “Sabre continues to invest in technology to support airlines’ merchandising strategies and into the vides information on millions of airline flights and fares, hotel availability and rates, and other travel offer- future,” said Shelly Terry, Sabre Travel Network’s vice president of supplier merchandising. “The Sabre ings. Sabre will be hosting a global hack-a-thon event in late July to provide developers inside and outside travel marketplace provides an invaluable platform for airlines to market and sell their products the way of the travel industry the opportunity to showcase their talents and ideas across a series of company- they choose, and for agents to best serve leisure and business travelers in the most seamless and effi- sponsored challenges using Sabre Dev Studio. cient manner. We are thrilled to have United’s Economy Plus seats back in our marketplace.” Sabre - AACO Partner since 2002

Daily news on www.aaco.org Issue 88 - Jul 2014 79 Our Partners News

SITA survey reports 90% of airlines plan new initiatives over next three WHY WE DO WHAT WE DO years: Airlines are investing in smart technologies to manage flight disruptions better, according to the 2014 Airline IT Trends Survey, co-sponsored by We believe expert support makes a difference. That is why our teams blend former industry executives, SITA and Airline Business. The survey, launched, reports that by 2017, 90% top-tier consultants and seasoned investment bankers. of airlines plan to use business intelligence solutions to manage flight disruptions more effectively and We believe designing projects with change in mind allows our clients to navigate towards improved re- efficiently, and 87% plan to use self-service technologies to improve passenger services during periods of sults faster, and make them more sustainable. That is why we prefer to work onsite with our clients and disruption. focus on sharing our expertise to build internal competence and embed new ways of doing things. American Airlines to become the first airline to use SITA’s new Common-use Beacon Registry: SITA is We believe strong business intelligence capabilities enable feedback loops that allow our clients to con- leading the way for airlines and airports using Apple’s iBeacon technology. As part of the world’s largest tinually learn and innovate. That is why we always respect and use the data at hand. We have developed implementation of beacons at an airport, American Airlines will become the first airline to use the SITA a suite of software tools considered the best globally for in-depth analysis and supporting rapid decision Common-use Beacon Registry, which was launched in June. This new service from SITA will mean passen- making. gers can look forward to getting up-to-date and relevant information on their mobile devices in airports We believe in partnering and sharing risk with our clients, combining their unique perspective with our everywhere. broad experience. That is why since 1995 we completed over 1,000 client engagements globally includ- iBeacon is a technology Apple introduced with iOS 7 that uses Bluetooth Low Energy and geofencing to ing advising on fleet orders valued at >USD 250B (list price) and serving as restructuring advisor for 10 of trigger the display of location-relevant information on devices at the right time and in the right situation. the largest 15 airline turnarounds. With beacons, airlines can easily provide passengers with indoor directions, walk times to gates, lounge And we believe there is still huge untapped potential in this industry. That is why we love to work with access and alerts about boarding. Knowing where a passenger is before sending information enables clients to help them confront big challenges and experience the feeling that comes with big wins. more effective communication. THAT IS WHY WE DO WHAT WE DO. THAT IS WHY OUR CLIENTS CHOOSE US. SITA to introduce enhanced aircraft tracking capability:SITA announced that it will introduce an innova- Seabury - AACO Partner since 2008 tive technology solution which will allow airlines to efficiently and cost effectively track their aircraft. The solution, which is currently being evaluated by several airlines for testing, will utilize technology that is already installed in the aircraft to provide advanced tracking capabilities. SITA - AACO Partner since 2008 Travelport builds momentum in Nigeria with significant product launches: Travel- port has reinforced its commitment to Nigeria by announcing the launch of six new technology solutions to benefit the local travel industry. Launching these new innovative solutions in Nigeria will enable both corporate and leisure agencies to take full advantage of the Shell Aviation celebrates a decade of collaboration with Rotax:Global producer of fuels and lubricants latest travel technology to help their agents work in a much more streamlined and efficient manner. Shell Aviation and leading manufacturer of ultralight and light sport aircraft engines BRP* are celebrating Travelport signs new global distribution agreement with United Airlines: Travelport announced a new over a decade of collaboration as the BRP prepares to mark the 25th anniversary of its renowned Rotax long-term agreement with United Airlines. This will add to the availability of United’s best inventory and 912 engine family. The product has dominated the light sport and ultralight aircraft industry in the last prices, and provide access to ancillary products through the airline merchandising technology offered two decades and is currently using AeroShell Oil Sport Plus 4 (ASO Sport Plus 4), Shell’s latest aviation oil under the Travelport Merchandising Platform umbrella, including the adoption of Travelport’s Rich Con- for light sport four stroke engines, as its factory fill. tent and Branding. place Holder Rich Content and Branding enables airlines to more effectively present the value proposition for their To mark the anniversary of the Rotax engine family, BRP has organised the Rotax Fly-In, a celebratory products through detailing their offers, including services and/or ancillary services available for pur- event which takes place from 5 to 7 June 2014 at Weisse Moewe Wels Flying Club, Wels, in Upper Aus- chase, as well as options to upgrade to alternative products via the Travelport travel commerce platform tria. The event brings together customers, personnel and suppliers and offers an opportunity to visit the and travel agencies in a manner more similar to the airline’s own consumer-focused website experience. BRP-Powertrain factory in nearby Gunskirchen. Guests can see where Rotax engines are produced, meet Travelport was the first global distribution system to re-launch the capability for travel agents to sell the with the engineers and participate in a variety of training sessions run by experienced service partners. additional space and comfort of United’s Economy Plus seating. Travelport-connected agents have the Shell Aviation is pleased to be able to mark the occasion by making a presentation about the long-term ability to access Economy Plus seat availability and prices within the Travelport travel commerce platform collaboration between the two companies. with real-time booking and automated integration into the trip built for the travelling leisure or corporate consumer who has elected to use the services of a travel agency. This includes United’s complimen- Shell Aviation- AACO Partner since 2002 tary Economy Plus seats for qualified MileagePlus customers and their companions. Travelport and TAME sign new full content agreement: Travelport and TAME announced a new, multi- year agreement. Galileo-, Worldspan- and Apollo-connected travel agents worldwide will now be able to access and sell TAME’s full published inventory. Travelport - AACO Partner since 2000

Daily news on www.aaco.org Issue 88 - Jul 2014 81 AACO & RTC CALENDARS AACO & RTC Calendars AACO CALENDAR AACO RTC CALENDAR September 2014 August 2014 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 1 2

7 8 9 10 11 12 13 3 4 5 6 7 8 9 AACO Amadeus Steering Board Meeting / Training of Trainers Course / Cairo Cairo Aviation Emergency Response and Crisis Management (Foundation) Course / Amman 14 15 16 17 18 19 20 Principles of Air Transport Economics Course / Cairo AACO Business Technology Forum 2014 / Amman 10 11 12 13 14 15 16

21 22 23 24 25 26 27 Air Law & Air Transport Agreements Course / Amman Developing your Managerial Mindset Course AACO / IATA Regulatory Affairs / Amman Forum / Amman Transport of Dangerous Goods by Sea / Cairo Human Performance Leader- Stress Management / 28 29 30 ship Seminar / Hurghada Cairo AACO ERP Task Force Meeting/ Manama 17 18 19 20 21 22 23 Air Cargo Rating Course / Amman October 2014 Ground Handling Agreements Course / Cairo Sun Mon Tue Wed Thu Fri Sat 24 25 26 27 28 29 30 1 2 3 4 Aviation Law for Managers / Amman 31 September 2014

5 6 7 8 9 10 11 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6

7 8 9 10 11 12 13 Training of Trainers Course / Cairo 12 13 14 15 16 17 18 Aviation Emergency Response and Crisis Management (Foundation) Course / Amman AACO Aeropolitical Principles of Air Transport Economics Course / Cairo Watch Group Meeting / Cairo 14 15 16 17 18 19 20 Air Law & Air Transport Agreements Course / Amman

19 20 21 22 23 24 25 Developing your Managerial Mindset Course / Amman Transport of Dangerous Goods by Sea / Cairo Human Performance Leader- Stress Management / 26 27 28 29 30 31 ship Seminar / Hurghada Cairo 21 22 23 24 25 26 27

28 29 30 For additional information, kindly contact Mr. Emad M. Abouzeid / Executive Director Training at [email protected] Daily news on www.aaco.org Issue 88 - Jul 2014 85 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. TMA (1953) 11. Kuwait Airways (1954) 12. Royal Air Maroc (1957) 13. Yemen Airways (1962) 14. Royal Jordanian (1963) 15. Libyan Airlines (1964) 16. Emirates (1985) 17. Nouvelair (1989) 18. Oman Air (1993) 19. Qatar Airways (1995) 20. Palestinian Airways (1995) 21. Tassili Airlines (1997) 22. Jordan Aviation (2000) 23. Afriqiyah Airways (2001) 24. Etihad Airways (2003) 25. Air Arabia (2003) 26. Air Cairo (2003) 27. Maximus Air (2005) 28. Petra Airlines (2005) 29. flynas (2006) 30. Nile Air (2006) 31. Rotana Jet Aviation (2010) 32. flydubai (2008)

Daily news on www.aaco.org Issue 88 - Jul 2014 89 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 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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