EGYPTAIR News 17 MAY 2023

ءاعبرلاا 17/5/2023

Bangladesh Rejects Fifth Freedom Rights To United Arab Emirates Airlines

Bangladesh's aviation authority has rejected a proposal to grant fifth freedom rights to airlines from the United Arab Emirates. Nonetheless, the two countries have left the door open for a future agreement.

Fifth freedom proposal denied

The Civil Aviation Authority of Bangladesh )CAAB( and UAE officials held a bilateral meeting this week to discuss the possibility of fifth freedom rights and increased flight operations. Fifth freedom rights would permit UAE carriers to carry passengers between Bangladesh and third countries.

Two days of talks concluded without any major breakthrough, with Bangladeshi authorities rejecting the request for fifth freedom rights amid concerns it would hinder the growth of local airlines.

As reported by BD News, the meeting was attended by 22 representatives from the UAE, including officials from the General Civil Aviation Authority )GCAA(, Air Arabia, Emirates, Etihad Airways and flydubai - Simple Flying has reached out to the airlines and will update this story accordingly.

Flights to remain the same

Another point on the agenda this week was the prospect of boosting flights between the UAE and Bangladesh, but this was also rejected - UAE-based airlines currently operate around 130 weekly flights to Bangladesh and want to further their presence in a growing aviation market.

Bangladesh's main international airport - Hazrat Shahjalal International Airport )DAC( - serving the capital Dhaka, is currently developing a third terminal and doesn't have the capacity to handle an increase in flights.

The CAAB added that proposals to increase flights would be "reviewed subject to future capacity expansion of airports." The third terminal is touted to open in 2024until that happens, the airport won't be able to handle a boost in flight operations.

Wizz Air moves forward Belgrade expansion

Wizz Air is moving forward its planned summer expansion in Belgrade and the basing of its fourth aircraft at Nikola Tesla Airport. Flights from the Serbian capital to Zakynthos have been moved forward by a month and will commence on June 27 instead of August 1. In addition, services to Berlin and Copenhagen will now launch on July 17 instead of July 31 and to Lisbon on July 18 instead of August 1. Operations to Bergamo remain unchanged, with its inaugural scheduled for September 26. The airline previously told EX-YU Aviation News the new routes had been scheduled to launch later on in the summer due to existing aircraft delivery slots.

TAAG Recovery Strategies at African Aviation Summit

TAAG CEO Eduardo Fairen shares his insights on innovative air finance strategies at the 31st African Aviation Summit. The event, held under the theme Air Finance Strategies for Recovery and Growth took place from May 10th to May 12th, 2023, at The Bill Gallagher Room, Sandton Convention Centre, Johannesburg, South Africa, and attracted prominent players in the African aviation industry. One of the most significant changes for airlines post-COVID is the increased reliance on government aid and loans with only limited government grants available in Africa. That means African airlines increasingly need to be inventive in their approach to financing.

In a special one-on-one interview, which took place on Thursday, May 11, 14h0014h40, Fairen shared his insights on air finance strategies for African aviation players. He discussed the critical role that TAAG plays as an international connector linking South Africa to Latin America, Europe, and West Africa via the Luanda hub, as well as the company’s growing cargo business in the South African market.

Fairen also touches on the debate over state-owned versus privatized airlines, which has been an ongoing topic in the aviation industry for many years. This discussion is of particular importance to airlines operating in Africa, as the majority of them are state-owned. He discusses the different strategies that airlines can use to expand their reach and increase their market share via either organic growth and codeshares and alliances.

Attendees can expect to gain invaluable insights from Fairen, a seasoned aviation executive with over 40 years of experience. His extensive experience in the aviation industry spans across four continents, holding senior positions in companies such as Iberia, Lufthansa, and DHL. Additionally, Eduardo was the Co-Founder of Vueling Airlines in 2004 and, most recently, served as CEO of Viva Air Peru.

The 31st African Aviation Summit, Air Finance Africa 2023, is a significant event that explores the current state of the aviation industry and the strategies necessary for recovery and growth. As one of the major players in the African aviation industry, TAAG’s participation in the event highlights its commitment to the African aviation industry and dedication to providing innovative solutions to support the recovery and growth of the industry.

CoSAFA Issues SAF Accounting Procedure Guidelines

The Council on Sustainable Aviation Fuel )CoSAFA( has published its “Methodology of SAF Environmental Attribute Transactions,” a system of procedures for the accounting and auditing of global book-and-claim programs.

Launched in 2021, CoSAFA—which includes many of the industry alphabet organizations such as NATA, NBAA, EBAA, IBAC, GAMA, and IATA—was designed to provide transparency to book-and-claim, which gives customers the ability to purchase sustainable aviation fuel )SAF( and receive the environmental credits even in areas where SAF is unavailable. Under book-and-claim, the corresponding amount of SAF would be dispensed at a location where actual SAF supply is present—typically situated near SAF production facilities—into an entirely different aircraft. That aircraft operator would not be entitled to any reporting benefits. The process is dependent upon strict bookkeeping to prevent double counting of carbon-reduction benefits. CoSAFA has developed a list of fair rules governing the system, including equal access to decarbonization methods for all global aviation entities, creating an attractive investment environment for commercial decarbonization solutions, and ensuring the integrity of book-and-claim transactions for sustainability compliance requirements.

“CoSAFA has engaged a broad range of stakeholders in developing this methodology, which provides the critical transparency needed in the development of fair rules for book-and-claim,” explained NATA president and CEO Curt Castagna. “Through continued collaboration across the aviation industry, CoSAFA can provide a unified foundation for SAF transactions.”

Textron Aviation Adding CJ Simulator in Farnborough

Beginning in January 2025, pilots in Europe will be able to receive training in a new Cessna Citation CJ3+/M2 Gen2 convertible full-flight simulator at FlightSafety International’s Farnborough, UK learning center. The simulator is being manufactured by Textron’s TRU Simulation + Training division. Equipped with a third-generation control loading system, the simulator features real aircraft parts and Garmin’s G3000 avionics, providing a more realistic experience for trainees. FlightSafety’s Vital 1150 image-generation system provides the simulator's visuals, including high-resolution airfield models and imagery projected onto a 200by 40-degree display. The electric motion base uses TRU’s RealCue system with 42inch-stroke actuators. TRU’s latest simulator frame design accommodates configurable seating and arrangement of the instructor station and ease of access to internal equipment to maintain the device.

“Our customers rely on us to design and deliver the best aviation experience, and that includes supporting them throughout their entire aircraft ownership journey,” said Duncan Van De Velde, Textron Aviation v-p sales for Europe.

“We are excited to expand our extensive Cessna Citation training network into the region,” said Brian Moore, CEO and director of operations at FlightSafety Textron Aviation Training. “Our partnership with Textron Aviation and TRU will provide a highfidelity training device and enable us to deliver a high-quality training experience to our mutual customers.”

Collins Distributes Inmarsat's SwiftJet Connectivity

Collins Aerospace is now a global distribution partner for Inmarsat’s new SwiftJet inflight connectivity service for business aircraft. The L-band-based service is due to enter commercial service this year, offering maximum speeds of 2.6 Mbps. Inmarsat noted the new service is up to six times faster than its SwiftBroadband service.

SwiftJet uses Inmarsat’s Elera satellite network and can support assured global connections in flight, according to the company. Its bandwidth is sufficient to support video calls, web browsing, email, texting, and cloud-syncing, as well as collaborative tools such as Microsoft Teams. Collins, a unit of Raytheon Technologies, is a long-standing partner of Inmarsat. Under the agreement announced today, it will help business aviation customers to upgrade their connectivity installations, as well as manage pricing plans and service contracts. The new service will use more advanced hardware that can be equipped for a wide range of aircraft, including smaller jets. Inmarsat said existing SwiftBroadband customers will require minimal changes to their aircraft system to upgrade to SwiftJet.

SwiftJet will be offered alongside both SwiftBroadband and Inmarsat’s Jet ConneX service, which uses the Ka-band satellite constellation. Jet ConneX, for which Collins is also a distributor, has been installed on more than 1.350 aircraft worldwide.

Riyadh’s international airport emerges as top aviation facility in Kingdom

King Khalid International Airport has been ranked top in service levels and travel experience aspects compared to other international airports in the Kingdom, according to the General Authority of Civil Aviation. The Riyadh-based international airport clinched the top spot for achieving a commitment rate of 64 percent in April, even though it dropped from 82 percent in March.

The number of passengers handled annually at the airport exceeded 15 million, according to the GACA monthly performance report. The authority has set 14 key performance indicators to assess an airport’s performance. Those include passengers’ waiting time from checking in, security procedures, and time spent at baggage claims. The study also assessed passport and customs screening areas along with facilities available to people with special needs. According to the monthly report, King Abdulaziz International Airport in Jeddah secured the second spot with a commitment rate of 36 percent, down from 73 percent the month before.

In the second category of international airports across the Kingdom, where the annual passenger volume ranges from 5 million to 15 million, Prince Mohammad bin Abdulaziz International Airport in Madinah topped the list with a 73 percent commitment rate.

Following this was King Fahd International Airport in Dammam, with a commitment rate of 64 percent, noted the report.

Abha International Airport ranked first in the third category of the Kingdom’s international airports, where annual passenger volume ranges between 2 million and 5 million, with a 100 percent commitment rate.

The report further noted that King Abdullah bin Abdulaziz Airport in Jizan came next with a 73 percent commitment rate in April.

In the fourth category, Al-Ahsa International Airport in Qassim ranked first. It handles less than 2 million passengers annually with a 100 percent commitment rate and a higher overall average waiting time for departing and arriving flights than other airports across the Kingdom.

In the fifth category of domestic airports, Arar Airport outperformed all other airports in the average waiting time for departure and flight arrival.

Dubai Civil Aviation in bid to ramp up digitalization

Dubai Civil Aviation Authority )DCAA( has signed an agreement with Dubai Aviation City Corporation and Dubai Integrated Economic Zones to accelerate digitalization of aviation operations

Signed in the presence of Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority, and Chairman and Chief Executive of Emirates Airline and Group, the agreements aim to foster enhanced cooperation and integrated link using ‘Web Service’ technology for issuing commercial activity permits in the aviation sector, thereby enabling immediate approvals from DCAA for commercial licensing transactions in the Al Maktoum International Airport and Dubai Airport Freezone. It also strengthens institutional information and data management cooperation, facilitating systematic integration.

On this remarkable milestone, Sheikh Ahmed bin Saeed Al Maktoum said: “This MoU is a strategic milestone in reshaping Dubai’s aviation industry and consolidates the emirate’s position as a global leader in digital transformation in the aviation industry. “Integrating cutting-edge technology and digital solutions into Dubai’s aviation operations is not just a business strategy but a fundamental dedication to customers, partners, and the city’s future. By creating an environment that encourages the synergy of technology and human ingenuity, Dubai strives to achieve unprecedented efficiency and customer satisfaction.”

The signing of the memorandum of understanding )MoU( outlined crucial objectives, including implementing Dubai’s paperless strategy through advanced technologies, establishing an integrated system for paperless governmental operations, and securing data exchange between entities. The MoU also seeks to automate the DACC’s verification of commercial licenses, providing customers with a seamless and streamlined experience via a single integrated link portal.

The partnership agreement between the Dubai Civil Aviation Authority and the Dubai Integrated Economic Zones Authority entails the integrated link of data and information through a fully-integrated and activated blockchain technology connection. This linkage is realized through a fully-integrated and activated connection designed to employ blockchain technology, thereby enhancing the speed and accuracy of service provision.

The first agreement was signed by Mohammed Abdullah Ahli, Director General of the DCAA, and Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South.

The second agreement was signed by Mohammed Abdullah Ahli, and Dr Mohammed Alzarooni, Executive Chairman of DIEZ Authority, in the presence of senior executives across all entities.

Khalifa Al Zaffin said: “This MoU is a testament to the power of collaboration and digital innovation through which we are strategically creating a digital ecosystem, largely based upon integrated link to fuel growth across multiple sectors. This system of digital cooperation is the key to unlocking the potential of our diversified and resilient economy.

“Our holistic approach allows us to view the digital transformation in the aviation sector as a cornerstone for developing a diversified and resilient economy. We are keen on exploring the opportunities this MoU will present and are committed to harnessing them for sustainable growth.”

Dr Mohammed Alzarooni, said: “Dubai has always been at the forefront of adopting cutting-edge technological solutions to enhance its digital ecosystem and facilitate business operations for companies in the UAE, and such agreements strengthen the integrated link between government agencies in the aviation, transport, and trade sectors by improving customer service.

“This consolidates the emirate's position as a global hub for trade and business, attracting foreign investments and global businesses, in line with the objectives of the Dubai Integrated Economic Zones Authority, which seeks to create a dynamic and advanced business environment through its economic zones. Emphasizing an innovative approach, these agreements also develop an integrated ecosystem of services and facilities that enhance business growth, operational speed, and efficiency.”

Africa’s airline capacity to exceed 2019 levels by 10% this year

In an update on the African Aviation market, IBA, a leading aviation market intelligence and consultancy company, predicts that despite significant headwinds, the African market will continue to see growth, with airline capacity thought to trend at 110% of 2019 available seat kilometres )ASKs( by Q3 2023.

Capacity recovery within Africa reached 103% of 2019 ASK levels in April 2023, compared to the global average of 95%. This makes the region the third to surpass pre-pandemic capacity levels this year, behind Latin America and North America. Airlines are continuing to increase capacity to Africa, with Q2 ASKs up 23% on last year according to data from IBA Insight, an aviation intelligence platform. The African airlines with the highest seat capacity in Q2 2023 are led by Ethiopian Airlines, with 12,664 million ASKs )an increase of 61% over the previous year(, followed by Egyptair with 4,749 million ASKs )an increase of 23%(, and then Royal Air Maroc with 3,513 million ASKs )up 28% compared to 2022(.

Looking at inter-regional travel in Q2 2023, seat capacity to Africa from Europe was up 19% to 32 billion year-on-year, and up 17% from the Middle East, to 14 billion. Both Asia Pacific and North America were at 4 billion, representing year-on-year increases of 180% and 25%, respectively, while Latin America increased to 0.3 billion – a 38% year-on-year growth. Within Africa, seat capacity in Q2 2023 was at 24 billion – an increase of 19% since 2022.

IBA predicts that African airline traffic will recover to pre-Covid levels by 2024, and that it will surpass 140 million passengers carried by 2030. A positive improvement in airline economics is also forecast. African airlines were on-average unprofitable before the pandemic, and posted an estimated cumulative loss of US$638 million in 2022. However, year-on-year, revenue passenger kilometres )RPKs( and ASKs grew by 82% and 53%, respectively, in 2022, with further improvement expected in 2023 that will have a positive impact on airline revenues. However, some of the cost headwinds are likely to persist suppressing profitability for a while yet.

Looking at aircraft orders by African airlines, the Boeing 737 MAX significantly outperforms the Airbus A320neo in the narrowbody segment, with the 737 MAX taking a 93% order share. The picture is slightly more balanced in the widebody segment, with the Airbus A350 accounting for 22 orders and the Boeing 787 for 12. The largest overall order books are held by Ethiopian Airlines )30(, Air Peace )18( and Arik Air )16(.

Strong growth in narrowbody aircraft is expected to drive the overall size of the fleet of all African airlines to 1,750 in 2030 – an increase from 1,423 in 2023, representing a 3.2% CAGR.

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