n°4 - winter 2013-2014
asl aviation group internal newsletter
Year end Message It is once again a great pleasure and a privilage to celebrate together with all asl colleagues, yet another successful year for the asl aviation group! Appropriately the headline cover of the altitude internal newsletter says a great deal about the proud heritage built up over many decades of hard work by exceptionally dedicated people throughout the asl group of companies the world over! While we’ve seen long standing contracts like the dhl a300s and osrl come to an end in 2013, it is very exciting to see new developments for 2014 like the aer lingus b757 contract, the flysafair low cost airline and new dimensions in the aviation support services being initiated.
None of these undertakings would be at all possible were it not for asl’s exceptional people and organisation. Given the continuing challenging economic enviroment and in particular as it affects the cargo industry, it’s essential for us to more than ever, be exceptional in all our undertakings be they small or large. In closing may i thank each and every one of you for your efforts in 2013 and in wishing you and your loved ones a blessed and happy christmas and a healthy and fulfilled 2014! Sincerely, Hugh Flynn
the asl aviation group: a proud heritage 1946
1972
South African Marine Corporation is formed
Air Bridge Carriers in the United Kingdom was formed
1970
1998
1992
1991
The French postal airline L’Aeropostale is formed between La Poste and Air France
Safmarine purchase Tropair (Pty) Ltd. and change name to Safair Freighters (Pty) Ltd.
A
Safair Freighters (Pty)
is renamed Safair 1994 Ltd. (Pty) Ltd.
Purchased by CMB & Safair. Renamed Air Contractors
Hunting Group renamed company Hunting Cargo Airlines
2000
Safair establishes its
division Safair 2001 leasing Lease Finance (Pty) Ltd.
2007 2004
The French La Poste Group creates its own subsidiary Europe Airpost to transport its mail freight
Purchase of BAC Group in Southend, UK
2002
The Company’s aircraft fleet dons its new livery
SL is owned by two European shareholders, being the Belgian company CMB (Compagnie Maritime Belge) and the Irish company 3P Petercam. ASL itself is the sole owner of four major subsidiary companies in the ASL Group.
Shareholding changed to CMB & 3P Airfreighters/ Petercam
2008
2003
Set up of the Cabin Crew Division and development of passenger transportation activities
2010 Formation of ASL Aviation Group Purchase of Europe Airpost
Purchase of Safair Operations and Safair Lease Finance
Intro of BEE and
now a minority 2013 ASL shareholder of Safair
These four companies are the Irish airline Air Contractors (Ireland) Ltd, the French airline Europe Airpost S.A., the English aircraft parts company ACL AS Global Limited and fourthly the Scottish company Air Contractors Engineering Ltd which specialises in heavy maintenance and component repairs. ASL also has a minority shareholding in Safair Operations (Pty) Ltd, the South African airline. The French airline was acquired in 2008 and was followed by the South African airline in 2010.
Black Economic Empowerment in South Africa
B
lack Economic Empowerment (BEE) is a programme launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups (black Africans, Coloureds, Indians and some Chinese) of South African citizens economic privileges previously not available to them. It includes measures such as employment preference, skills development, ownership, management, socioeconomic development, and preferential procurement. Although previously compliant under Imperial ownership Safair needs to address its BEE compliance in accordance with the latest “Aviation Sub-sector Broad-Based Black Economic Empowerment Charter” which becomes mandatory in South Africa late 2014.
France : 0,00€ , Ireland : 0,00€, United Kingdom : 0,00£, South Africa : 0,00 rand
Having consulted various potential BEE partners / investors, similar to what a lot of South African companies do, Safair has proudly decided to embark on its own broad-based black economic empowerment transaction. This is a significant step which essentially provides three fundamental pillars for Safair’s future: • It empowers employees to participate in the share ownership of Safair; • It promotes the continued growth of Safair; and • It enhances the transformation of Safair’s preparedness for the years to come. To this end, Safair has decided to implement an Employee Share Ownership Plan (“ESOP”), which allows all existing
and future “black” employees of Safair to participate in the ownership of Safair. Significantly, all other Safair employees may also participate in the ESOP, but only to the extent that the majority of the benefits of the ESOP (at least 51% of the benefits) will always vest in and accrue to “black” employees of Safair. This is in full compliance with BB-BEE.
2 asl aviation group internal newsletter
Company News air contractors
europe airpost
“Contracting” long haul passenger activities
New regular flights to the Alps!
A busy first quarter for the Air Contractors team In the last edition of this newsletter, we referred to the news that Air Contractors had recently concluded an agreement to operate three Boeing 757 aircraft on long haul routes between Ireland and North America.
Europe Airpost will commence a series of regular passenger flights from Brest and Rennes to Grenoble next February. This is an historic first. A weekly flight is scheduled every Saturday from Brest and Rennes between 22 February and 22 March 2014, the winter holiday period for schools. The new routes will provide better access to the Alps from Brittany, whereas competing airlines have concentrated more on Lyon. The “ski flights” will be undertaken with Europe Airpost’s Boeing 737-300 QC, which is currently based in Brest for night-time postal operations.
Operating a long haul passenger network will present the team at Air Contractors with a number of new challenges. Already the team is hard at work understanding the unique aspects of the Boeing 757 aircraft, obtaining the necessary additional licences and approvals and ensuring that the airline has certification for the Extended range Twin Engine Operations (“ETOPS”) necessary when flying over the Northern Atlantic. A number of team members have been engaged in a full time capacity on this challenging project and we remain on target to meet the January introduction with Aer Lingus.
safair
These flights will allow Europe Airpost to evaluate the concept, while measuring the company’s ability to determine the most profitable flight network. Other, similar flights will follow next summer. According to Eric Vincent, Head of Sales and Planning, “With these flights, Europe Airpost can explore our readiness to develop new markets, as a precursor to future business modelling.” It is a very exciting proposition for the company.
On the 27th of August, Safair formally announced its intention to enter the Low Cost Airline business within South Africa and as such FlySafair was born. On the 23rd of September the website and reservation system went live and we were selling tickets. This was a first for Safair, with a proposed commencement flight of the 17th of October. During the time leading up to this there had been many, many long days and nights of frantic activity ensuring that everything that was required was in place. The preparations ranged from
and how we upload catering. But as always on time, it was agreed, finalised and we were ready to go.
employing and training additional people, acquiring the reservation system and website, and customising these to our specific requirements. We also created a brand, launched an advertising and media strategy, prepared the aircraft and most importantly set about instilling a low-cost culture throughout our operations in every way.
on the 4th and much to our amazement, the court interdict was granted against FlySafair. As such we had to refund all of the tickets that had been purchased, some 5300 sectors, all of which was done as speedily as possible so as to create the least possible inconvenience for our customers. Despite this situation the public support for FlySafair remains very high.
For so many years Safair, as an ACMI operator, has operated other people’s schedules but now it was our own. It required a lot of effort from our dedicated staff to get a schedule that worked for everyone, so that we could fly as much as possible from a commercial perspective, but within the crew limitations and using the shortest turnaround times versus when
Subsequently, we have finalised our Broad Based Black Economic Empowerment (BBBEE) transaction, by way of an employee share ownership program, and reapplied for a new scheduled licence for FlySafair. All things proceeding as planned, we hope to have FlySafair back in the air, where it belongs, shortly thereafter.
Unfortunately whilst we were busy preparing, some of our competitors, namely Comair the owner and operator of Kulula (one of the South African low cost airlines) and the British Airways brand, and Skywise, another new entrant to the market, filed an urgent court application to have our operation interdicted. On the 8th of October, following a court hearing
As part of this project, Air Contractors is also in the process of renewing its IATA Operational Safety Audit (IOSA) qualification. This is an extensive process but will further increase the attractiveness of Air Contractors to similar passenger operators. The organisation is pulling together to achieve an optimum result which will provide Aer Lingus with a service that both Aer Lingus and Air Contractors can be proud of.
Peak activity through December Just when you think it’s time to be slowing down for the end of the year and the festive period, the Integrators peak season arrives. Like the proverbial Santa’s helpers, Air Contractors will be flying all over Europe to deliver all those parcels in time for Christmas. In addition to the route network this year, we will have extra activity out of Cologne for UPS, extra flying for DHL and also will be heading back for a couple of weeks to Sweden for Amapola/Swedish Posten operations.
The new flights are available for purchase on mass-market travel reservation websites as well as on the company’s own reservation website; there is also a call centre for reservations and ticket purchase managed by APG, Europe Airpost’s partner.
aclas global
Far Eastern Promise With the ATR market in Europe continuing to evolve and increased competition, ACLAS Global is looking to the Far East for sustained growth. The ACLAS customer base is already global but with over 50 operators and 300 airframes in Asia, and a concentration of these in the Far East region we want to put a more permanent footprint there with a placement of ATR inventory. Singapore has been identified as a favoured hub due to its free trade zone, excellent transport links to the rest of the region and a large number of logistical support options.
ACLAS is currently supporting its customers in the region from the UK. The feedback from existing customers and other ATR operators is that we will capture an increased number of operators business with inventory closer to their operations. In addition, they will utilise more of ACLAS’s inventory solutions so we can broaden the level of support to existing and new customers. The MRO business in the region will also be expanding to cater for the increased number of airframes meaning >>>
3 asl aviation group internal newsletter
Indaba Group News
We cannot become what we need to be by remaining what we are !
A “branding” working group has been created to promote the ASL Aviation brand and to strengthen the federation of the Group entities within a highly competitive environment. Over the last few months, this group has worked on the implementation of tools to standardise and systematise the use of the ASL Aviation Group logo in the Group’s support companies and airlines.
terms. The components that were contributed to the program are now being utilised in ACLAS’s rotable exchange program.... of which Air France continues as one of its leading customers.
The group has first worked on identifying logo carriers in order to propose a solution to standardise
Cost efficiencies
ACE is focusing its repair component capability following a successful year of component repair and overhauls in 2013. Prior to 2013 the focus had been ATR leading edge de-ice boot replacements. With the acquisition of the ATR flight control repair jig the range of components within our capability increased dramatically. The ability to repair ATR flap units within the ASL Group brings with it a marked reduction in maintenance costs to the customers. Other potential component lines are also being considered, cabin seats, galley components, insulation blankets to mention just a few.
Maintenance
ace
Specialised capability
A
The expansion of the component repair capability has outgrown the current hangar bay facility. A dedicated workshop is being sought to accommodate these activities. The UK Civil Aviation Authority has given its support for the project.
T
he biggest achievement for the heavy maintenance Indaba group during this period has been the improved co-operation and closer working relationship. This was further achieved as a result of the delivery process of the B737-400 Freighters where all three airlines technical departments have worked together to achieve the on time delivery and entry into service of these aircraft. During the period we have also seen an increasing shift in heavy maintenance checks to facilities in Eastern Europe. By moving to these facilities, significant savings on labour rates and ultimately on maintenance costs have been achieved. This trend is set to increase particularly from an Air
Marketing
Communication and efficiency
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The Indaba Marketing Group comprises the Commercial Directors and managers from the Group companies supported by the appointment of three external pathfinders.
The focus of the team is as follows ; Find solutions for immediate opportunities such as surplus aircraft ; Support the companies strategic goals and business plans ; Focus long term planning on emerging industry opportunities. ACLAS Global has also committed its support to the success of the project. ACLAS has the potential to double the throughput through the facility on leading edges work alone. ACE’s approval by ATR for flight control repair has also seen this product line demonstrating the contribution increase potential going forward.
The pathfinders bring a wealth of aviation experience and industry contacts into play. Colin Sach-specialist in the aircraft financing sector with key contacts in all the major EU f lag carriers ; Joe Graven-specialist in the charter tourist market along with geographical reach in Asia and South America ; Andrew Kelly specialist in the Irish aviation industry and
the ASL Aviation Group logo use, in line with the existing standards. In this context, it has been decided that all the aircraft in the Group would be branded with a small ASL Aviation Group logo, preceded by “member of ”. The group is currently finalising a specific study to define where to place aircraft logo, to re-design the logo for this use and to provide the dimensions to brand all different aircraft of the f leet. Aircraft branding will start very shortly.
Contractors perspective as a result of where we find ourselves with ACE. As a result of the termination of the hangar lease with Edinburgh Airport Authority, ACE will be exiting the heavy maintenance business and will focus on its component repair capability. Unfortunately the single combined “Group” heavy maintenance contract with a single MRO provider still eludes us.
F
rom an economic perspective, operational f light preparation is certainly one of the most critical tasks within an airline. Finding the most economical route taking into account regulatory, weather and air traffic constraints is instrumental for any cost-minded operator. Sophisticated computer-based tools help operations staff to complete this complex task.
Operations
brand – proper noun, logo and slogan – is the first identification mark and a real market differentiator as it enables the company to assert its identity.
Two years ago Europe Airpost initiated a benchmark in order to ensure the systems in place were completely up-to-date. After a detailed study, the American company Sabre and their Sabre FPM product were selected.
Sabre is the provider of many airlines worldwide. Since June, teams have been working in order to implement this high-performance software which is one of the most powerful in the market today. The implementation of Sabre FPM which is scheduled for April 2014 will allow Europe Airpost to create optimised flight plans providing cost savings for each flight. This up-to-date solution could well provide benefits to the other ASL airlines.
Preparing Budget 2014
Finance
2013 saw the end of the partnership with Air France Industries in their ATR Support Program. ACLAS has benefited immensely from working together with Air France over the past four years and have parted on good
Branding
ATR Exchange business
Flight planning: Europe Airpost welcomes Sabre
ASL, an emerging brand
>>> ACLAS will also be ideally placed to capture this as well.
Corporate Affairs. In fact congratulations to Andrew who has just accepted to join the Group in a full time capacity. Of late the pathfinders have been instrumental in facilitating four contracts: the sale of A300B4 aircraft and spares to Transcarga of Venezuela ; the sale of redundant spare parts for the Embraer and Fokker aircraft held by ACLAS at Southend ; the initiation of high level discussions for ACMI work in the EU passenger market and holiday charter segments ; the signing of the ACMI deal with Aer Lingus to f ly Bœing 757 aircraft across the Atlantic. Overall the Group has effectively improved internal communications, assisted with joint problem solving, and helped to leverage customer opportunities across the entire groups capabilities.
T
he finance teams across the ASL Group have had a busy Q3 (July to September). While each business continues to deal with the challenging trading environment, the finance teams continue to work behind the scenes improving processes and meeting reporting requirements.
A lot of Q3 has been taken up with planning for and preparation of Budget 2014. While 2014 is expected to be challenging, the budgeted results provide some comfort that the Group should continue to be in a healthy financial position and is well placed to take advantage of opportunities that may arise. While the results for Q3 are somewhat below expectations, each business is working hard to bridge the gap before the end of the 2014 financial year. Although the overall result for the year is expected to be behind that of prior years, given the current economic conditions a solid result is expected nonetheless. The Indaba working group continues to liaise closely on coordinating the Group finance activities. Group treasury has been heavily involved in the recent purchase, delivery and conversion of aircraft. This has been instrumental for the Group in developing and growing the fleet and being in a position to meet and indeed surpass customers’ expectations. The Group tax and accounting function has also been involved with the local finance teams providing support and assistance in relation to a number of different projects which resulted in both cost and improvement initiatives.
4
Altitude Altitude
Is Southend leading the UK out of recession? The International Monetary Fund recently upgraded its UK growth forecasts by more than for any other advanced economy. The UK’s economic recovery is gaining momentum, with growth of 0.8pc in the three months to September, and is now expected to outpace many of its European peers in terms of growth for the next five years. The new Bank of England Governor, Mark Carney, has said that Britain’s recovery is at an early stage and is still reliant on rising house prices and consumer demand.
than London, so said the Halifax, the country’s biggest mortgage lender, and also offers the attractions of living by the sea. Southend is predominantly a Victorian town, with many threeand four-bedroom terrace houses which would cost three times as much in London’s inner boroughs. In Southend’s Thorpe Bay area, Edwardian and 1920’s houses abound, whilst Leighon-Sea, with its independent shops and cafes, has developed into a fashionable destination for young London families looking for an affordable place with a touch of metropolitan buzz. All this, and the home of ACLAS Global!
Some economists are concerned that government schemes to encourage house purchases may lead to untenable price increases, though the rises so far are concentrated in London and neighbouring regions. One of the “neighbouring regions” is Southend-on-Sea. Home of the longest pleasure pier in the world, an expanding airport and less than an hour’s train journey from London, Southend claimed the highest rise in UK house prices during 2012 – 14.8%. Southend is «particularly less expensive»
Edinburgh airport reaching for the sky Edinburgh Airport has been awarded ‘Airport of the Year’ 2013 in the category for ‘over six million passengers’. The celebrations commenced in 21st October 2013 when the Airport Operators Association announced the result at the ceremony in London. The airport has received five awards this year alone, including ‘Best European Airport’ at the ACI Europe awards. Edinburgh Airport has recently announced ambitious plans to extend the existing terminal building in order to create a new state-of-
Dublin city’s newest bridge The bridges arching over the sleepy river Liffey in Dublin’s fair city project the memories of cherished historical and cultural figures. Joining this group of historical structures is the newest bridge which is to be named the Rosie Hackett Bridge. Born in 1892, Rosie Hackett dedicated her life to the trade union movement and struggle for workers’ rights. Rosie also played her part in Ireland’s struggle for national independence; she was a member of the Irish Citizen Army and served during the Easter Rebellion 1916. For her part in the Rebellion, Rosie was sent to Kilmainham Jail in Dublin, whereupon her release she re-founded the Irish Women Workers’
French Municipal Elections Next March Municipal elections will be held in France on consecutive Sundays next 23 and 30 March, 2014. Voters will elect the municipal councillors who govern the country’s townships, or “communes”. A “commune” is a local authority, and is also the next-smallest French government administrative subdivision. The municipal council deliberates and rules on township affairs such as determining the budget, managing community property, deciding on renovation and construction work, granting certain financial aid, and so on. Once they are elected by direct universal suffrage, the municipal councillors elect a mayor, and sometimes a deputy mayor or mayors, from among themselves. France has about 36,700 “communes” and therefore just as many municipal councils and mayors. Voters choose from party lists of candidates. Each list presents the same number of candi-
the-art security hall and shops, ensuring the passenger’s positive experience is maximized. The 6000m2 facility will utilize the allocated space to its full potential, allowing the passengers to move through the airport more efficiently. New technology, training and processes will be introduced in conjunction with the project that will ensure Edinburgh will be unrivalled within the UK airport arena.
Nelson Mandela Day Nelson Rolihlahla Mandela was born in Transkei, South Africa, on July 18, 1918. He is one of the most well-known anti-apartheid activists in South Africa.
The expansion project is currently moving at pace and the first stage of the four-stage construction was due to be issued for tender process on 07 October 2013, this is estimated to produce 100 new construction jobs for the local area.
He was jailed in 1964 for leading the liberation movement against apartheid and for his stance on the human right to live in freedom. Mandela’s prisoner number in Robben Island off Cape Town, was 466. The Robben Island prisoners were never referred to by their names, but rather by their numbers and year of imprisonment – hence 46664 was Nelson Mandela’s number. and for years served as clerk in the union which, at its peak, organised about 70,000 women, including bookbinders, contract cleaners, laundry, print and electronic workers. Rosie died in 1976. Every bridge in Dublin city centre is named after an important historical or cultural
After his release in 1990, Nelson Mandela continued addressing racial issues in his country and
figure. However, not one of these 16 bridges was named after a woman. This will become the first. The practice of naming streets, bridges and other landmarks after cherished historical and cultural figures is an important form of recognition for their contributions. Dublin City Council whom made the final decision on naming the bridge, were presented with a shortlist of four other names of historical
Country News
asl aviation group internal newsletter
dates as there are seats on the council, in strict order. The gender parity law requires that each list include as many women as there are men, in alternate order. Mixing and matching between lists is not possible; each voter must select one party list, with no cross-outs. However, the councillors are then chosen in proportion to the number of votes obtained for each list. The “head” of the list which receives the most votes is usually the one who is elected mayor, but lastminute surprises are not unknown! Eligible voters must be citizens of France or of the European Union, be at least 18 years of age, qualify for their civil and political rights (including in their home countries, if they are foreigners) and be registered on the electoral lists of their commune.
What colour (blue stands for the right and red symbolises the left) will the French “communes” be after the vote? Answer on 30 March… supported reconciliation initiatives towards a multi-racial democracy. His efforts resulted in him becoming elected as South Africa’s first black President in 1994. He remained in office as president until 1999. He also won the Nobel Peace Prize in 1993. In 2007 Mandela formed the Elders, an independent group of global leaders who offer their influence and experience to support peace building, help address major human suffering causes and promote shared interests of humanity. On November 10, 2009, the United Nations General Assembly adopted a resolution declaring July 18 as “Nelson Mandela International Day”, also known as Mandela Day. The day marks Nelson Mandela’s contribution to peace through his active involvement in resolving conflicts, promoting human rights, international democracy and reconciliation, and in addressing racial issues. This was the first time the UN dedicated a particular day to a person. Nelson Mandela Day not only celebrates Nelson Mandela’s life, but it is also a global call to action for people to recognize their ability to have a positive effect on others around them. Many people and organizations around the world take part by devoting 67 minutes of their time to public service. These activities include volunteering, sport, art, education, music and culture.
and cultural people: Dracula author Bram Stoker; Willie Bermingham, a firefighter who founded ALONE, a charity which looks after older people in need; Frank Duff, who founded the Legion of Mary; Kay Mills, who won 15 All-Ireland medals for the Dublin Camogie team. This new bridge which is located between O’Connell Bridge and Butt Bridge is costing an estimated €15 million. It will carry buses and the Luas Cross City Line and is expected to be ready for use by February next year.
Director of publication: Hugh Flynn / Contributors: Marlouise Booyse, Delphine Bukva, Liz Daly, Jean-François Dominiak, Veronique Elsea, Colin Grant, Ian Hilton, Linda Little, Philippe Lonnoy, Niall O’Connor, Mark O’Kelly, Ian Reece, John Rooney, David Slipper, Wendy Velzian. Coordination: JetCom / Design: Oxalis média / Photos Credits: ASL, Europe Airpost, Safair, ACLAS, Air Contractors, South Africa The Good News www.sagoodnews.co.za, North Dublin Befriending Service 2011, Edinburgh Airport, ATR.