Aviation Business - Feb 2010 by ITP Business Publishing

THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | FEBRUARY 2010

BUSINESS

Licensed by Dubai Media City

We’ve only just begun Dubai Duty Free has more growth plans

Meeting travel needs Does your airline’s website oﬀer a ‘shopping experience?’

MRO MIDDLE EAST Piecing together the hot topics in the maintenance market

TOP 10 TRIPS | READER’S LET TERS | MOVERS & SHAKERS | REGIONAL NEWS

CONTENTS

FEBRUARY 2010 VOLUME 09 ISSUE 02

21 MRO & AIME EVENTS Visitors to Airport Expo this month are in for a double treat as the ever-popular MRO Middle East show is co-located with Aircraft Interiors Miiddle East. Make the most of your time at these two events by turning to our preview piece in this month’s issue. Having two events held at the same time may be convenient, but it means you will have double the exhibitors to visit. Also, our coverage provides information on the upcoming Aerospace & Defence Training show, which will be held in March.

06 REGIONAL NEWS The delivery results are in for Boeing and Airbus, with impressive results, but both manufacturers remain cautious for 2010. Meanwhile, Gulf Air’s ﬁnances are called into question and Jazeera Airways has been forced to downsize its route network. Staying with airlines, Qatar Airways is ploughing ahead with its biofuel project; Etihad has launched its much-hyped new cabin product and business is looking up for Jet Airways.

30 ASK THE EXPERT Amadeus’ Denis Lacroix asks ‘how is technology reinventing the travel shopping experience on airline websites?’

46 MOVERS & SHAKERS There are more new faces at Etihad Airways; Royal Jet drafts in a ﬁnancial specialist; Vistajet expands its team; and Amadeus makes a number of changes to its top tier of management. www.arabiansupplychain.com

JIM MCNERNEY On the back of Boeing’s number crunching, the plane manufacturer has revealed its delivery target figures and its full-year profits, but we find out what exactly it is that continues to make the company’s CEO continue to smile, despite 2009 being a year of order cancellations and dwindling profits – not just for Boeing but for the aviation supply chain as a whole.

COLM MCLOUGHLIN From humble beginnings at Shannon airport in Ireland, Colm McLoughlin has risen to become the head of the most proﬁtable airport retail operation in the world. After almost three decades at Dubai Duty Free, he tells us the secrets to his success and explains why he believes the growth of the money-making – and pioneering – Dubai brand is only just getting started. February 2010

READER’S LETTERS Got an opinion? Have your say at...

BUSINESS Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: + 971 4 210 8000, Fax: + 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP Business Publishing CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery Publishing Director Diarmuid OMalley Editorial Editor Sarah Cowell Tel: +971 4 4356286 email:sarah.cowell@itp.com Advertising

10 events that shaped the Gulf’s aviation industry If you look around and see the figure heads of all the other airlines in the Gulf, like Emirates, Air Arabia, Qatar, Etihad, Bahrain Air, Oman Air and Sama, you will find they are all ex Gulf Air. The proud airline/university has produced all of them and made it possible for the achievements of today’s Gulf aviation industry. Mohammed, undisclosed location

Boeing 787 takes its ﬁrst ﬂight Really … many thanks for the people who make these airplanes and who make our life of travelling easier and more enjoyable with the best of comfort. Fahad A A Almulhim, Saudi Arabia

Air Arabia eyes Belgium and Luxembourg Glad to see this airline growing so fast. I was a passenger of G9 when the airline started with only two A320s based in Sharjah about five years back. Hassana Aly, Cairo

Aaabar plans 2 hour ﬂight from Abu Dhabi to LA This sounds fantastic, but based on what technic? Ramjet? Stefan, Germany This is really a great advance, but can they provide more details, such as launching system, aircraft type, where the flight is going to take place in the atmosphere? Lightning, Romania

Gulf Air’s ﬁnances called into question by MPs The parliament in Bahrain cannot

resist intervention into what is happening in the national airline [Gulf Air]. Facts and figures from within the airline that should be confidential are regularly leaked to members of parliament. Perhaps the restructuring redundancies should start with those who leak information, and save the airline thousands of dinars. Bob, UAE

Business travel budgets bounce back Travel business budgets will see more abundance in 2010 for Middle East, Asia and Africa markets. Jojy Thomas, Dubai

Publishing Director Diarmuid OMalley Tel: +971 4 435 6163 email: diarmuid.omalley@itp.com Sales Manager Nick Lowe Tel: +971 4 435 6364 email: nick.lowe@itp.com European Sales Manager Stephané de Rémusat Tel: +33 53 427 0130 email: sremusat@aol.com Studio Group Art Editor Dan Prescott Designer Angela Ravi Photography Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographers G-nie Arambulo, Efraim Evidor, Thanos Lazopoulos Staff Photographers Isidora Bojovic, George Dipin, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav, Production & Distribution Group Production Manager Kyle Smith Production Co-ordinator Louise Schrieber Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami Circulation Head of Circulation & Database Gaurav Gulati

Iranian plane ﬁre leaves 46 passengers injured

Marketing

Stop cutting corners in the name of cost cutting with audits and maintenance, blaming everything on pilot error. It’s time to wake up, especially on the older fleet - take the Airworthiness Report seriously! Coral, Dubai

ITP Digital

Airline refusal blamed for abandoned lions Maximus Air Cargo offered to fly the animals at cost using our Lockheed Hercules however, the animals had already been moved - if the owners want to send them to a sanctuary or free them we are available in the future ... www.maximus.aero or commercial@maximus.aero Steve Manser, Abu Dhabi Sometimes schedule carriers just do not have the right experienced personal to handle such animals. We are doing air transports with all kinds of animals, including rhinos, elephants, etc. R. Stawinoga, Frankfurt, MD of RSC

Head of Marketing Daniel Fewtrell

Director Peter Conmy ITP Group Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 435 6000 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Horizon Printing Press Controlled distribution by Blue Truck Subscribe online at www.itp.com/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose

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February 2010

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04 Visit www.arabiansupplychain.com for the latest Middle East aviation news

Boeing achieves 2009 delivery target But the airplane manufacturer must work on restoring its customers’ faith, says analyst DATA

Boeing recorded 481 commercial airplane deliveries in 2009, matching the company guidance of 480-485 airplanes. The backlog of aircraft to be delivered by Boeing Commercial Airplanes remains at 3375. But the US plane manufacturer registered only 263 gross and 142 net commercial orders for the year as air travel and freight declined and carriers’ worldwide experienced severe economic challenges. The global recession forced many carriers to re-evaluate their near- and mediumterm fleet requirements, resulting in Boeing receiving 59 cancellations of its new 787 Dreamliner aircraft. Amid ongoing delays, the 787 did manage to complete its first test flight before the end of last year however, with first deliveries of the fuel efficient aircraft – most likely destined for Qatar Airways – scheduled for September 2010. The 747-8 Freighter is slated for first flight early this year with first delivery planned for fourth-quarter 2010, while delivery of the 747-8 Intercontinental passenger airplane is planned for the fourthquarter of 2011.

Boeing Commercial Airplanes president and chief executive officer Jim Albaugh, said 2009 had not been without its challenges, “but it also was a year of exciting achievements for our company and our industry. With signs of economic recovery emerging in 2010, we look forward to better days ahead.” When evaluating Boeing’s performance throughout 2009, FBE Aerospace chief analyst Saj Ahmad said it could not be classed as singularly as either a failure or an outright success. “While Boeing reaffirmed its intention to deliver between 480-485 jets in the year, it still encountered a massive headache in the fifth major delay to the 787 Dreamliner which failed to fly at the end of June 2009. he 787 did fly and the “Despite that, the challenge now is to get the remaining 35% fied.” of the airplane certifi ed.” at 2009 will be Ahmad added that ooks back on a year that Boeing looks xercise. as a huge learning exercise. “Aside from thee cancelled og has held 787 orders, its backlog wn. Boeing up well and has grown. will need to take the momentum from the successes att the end of

FIGURES BOEING’S ORDERS, DELIVERIES AND BACKLOG AT THE END OF 2009: 737 – 197 gross orders; 178 net orders; 372 deliveries; 2076 backlog units 777 – 30 gross orders; 19 net orders; 88 deliveries; 281 backlog units 747 – 5 gross orders; 2 net orders; 8 deliveries; 108 backlog units 767 – 7 gross orders; 2 net orders; 13 deliveries; 59 backlog units 787 – 24 gross orders; -59 net orders; N/A; 851 backlog units the year and translate those into deliveries and revenue. “With huge expenditure coming up on the 747-8 Intercontinental, 787-9, the purchase of Global Aeronautica and a second final assembly line in South Carolina, Boeing has its work cut out and the next few years will be just as difficult. The focus has to be on execution and delivery. Without those, Boeing will struggle to restore its customers’ faith.”

Jim Albaugh said 2009 had not been without its challenges The 787 took to the skies in December, despite ongoing production delays

February 2010

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REGIONAL NEWS

Gulf Air’s ﬁnances called into question

Airbus hits 2009 goals, but sees diﬃcult 2010 BUSINESS

BUSINESS

Bahraini MPs demanded answers to the state of the national carrier Gulf Air’s finances in January, accusing it of delays costing millions of dinars. Ministers accused the airline of “weak action” to collect hundreds of thousands of dinars owed to it by travel agents in Morocco, Saudi Arabia and Lebanon. The carrier’s financial position has also been made significantly worse by its failure to sell two Boeing 767s at the right time, costing it BD23.5 million (US$62.3 million), MPs told Gulf Daily News. “The action Gulf Air has taken to collect its money and ensure that it doesn’t get lost or squandered is weak,” chairman of the financial and economic affairs committee Abduljalil Khalil, told the paper.

Like Boeing, Airbus managed to achieve its deliveries target within guidance range, but the European plane manufacturer is being warned to expect a difficult year ahead. To make way for new customers such as Turkish Airlines (see page 7), Airbus is expected to adjust downward the production rate of its A320 aircraft this year. Not only that, the key numbers at parent company, EADS showed that revenue actually declined by almost 4% yearon-year, so that while deliveries were up to a record high,

costs attached to the increased production rate did not yield much in the way of savings. In fact, costs actually rose, said FBE Aerospace chief analyst Saj Ahmad. ”Airbus’ near-term challenge will be a three-pronged approach. First is the January 31 meeting to decide whether the A400M lives or dies. The second is the ever-changing delivery targets on the lossmaking A380 and finally the push to get the A350XWB family toward the 2013 service entry date. ”In 2010 and 2011, R&D on the A350XWB will peak,

Airbus’ plans to double deliveries of its A380 have been described as ‘miraculous’

further pressurising EADS’ bottom line. The €8 billion (US$11.6 billion) EADS cash nest is under threat if funding for the A400M is pulled and the programme scrapped as the company would have to spend billions to compensate its customers. The A380 is saddled with engineering and supply chain anomalies and any prospect of profitability evaporated long ago. “Throw into the mix lower deliveries in FY10 and revenue will be under severe pressure at a time when it is most needed to shore up the vast expenses that the company has yet to incur. The low-margin profitability of the A320 family cannot carry this burden alone and with a rate cut all but inevitable, the challenges will indeed be difficult.” Ahmad went on to say that the A330 had become somewhat of a saviour for Airbus and added that the news of Airbus’ plans to double its deliveries of the A380 this year was “nothing short of miraculous if it happens.”

Jazeera Airways downsizes its route network STRATEGY

Jazeera Airways has announced a number of cancelled and postponed services on its network, reflecting the difficult current market conditions in the region. From December 13, services from Kuwait to Hurghada in Egypt ceased operation and will not be reinstated until June 2, 2010. This will now operate as a seasonal summer route. However, some weekend flights to Hurghada will be operational in early 2010 during the holiday periods. In addition, flights to Sana’a will February 2010

now operate via Bahrain, as of January 3. Furthermore, the airline announced that services between Kuwait and Tehran and between Dubai and Bahrain will cease to operate on January 3, 2010 as well. Not only that, the service from Kuwait to Mumbai has been cancelled, while the route from Kuwait to Latakia, originally scheduled for launch on December 15, has been postponed. “We are continually reviewing our services to ensure ongoing profitability in

Jazeera Airways CEO Stefan Pichler

a tough trading environment, while providing our guests with quality and choice. Making the changes to our network gives us the opportunity to operate more frequencies to other destinations or to launch new routes in line with demand,” commented Jazeera Airways CEO Stefan Pichler. On a positive note, the airline took delivery of its newest Airbus A320 last month. The arrival of the new aircraft brings the airline’s total fleet size to 11, with a further 29 aircraft to be delivered over the next few years. www.arabiansupplychain.com

REGIONAL NEWS

Qatar and Airbus Turkish Airlines buys in biofuel project 30 Airbus A320s FLEET

TECHNOLOGY

Qatar Airways will work with Airbus in the development of sustainable bio jet fuel that will also look into ways for production and supply. The world first initiative will also harness the experience of Qatar Science & Technology Park (QSTP) and Qatar Petroleum and follows Qatar Airways first commercial flight powered by a Gasto-Liquid (GTL) fuel blend last October, which proved to be a significant development in the use. The airline’s CEO Akbar Al Baker, said: “Building on the experience and success of the GTL Consortium, we now move to the next phase of alternative fuels.”

Turkish Airlines will add 30 airplanes from Airbus to its fleet as part of its expansion plans. The airline has placed 20 definite orders for the A320 aircraft, while the remaining 10 orders are optional. Turkey’s flag carrier aims to acquire a total of 105 new aircraft over the coming few years. Some 14 A321-200 jets and six A319 -100 jets will be de-

livered to Turkish Airlines between 2011 and 2012. The board of directors has also placed an order for purchase of ten A319/ A321 planes, all with options, to be procured in the year 2013. The number of single aisle jets in the fleet of Turkish Airlines will increase to 126 and the number of twin aisle aircraft will rise to 36 between 2010 and 2012, taking the total number of aircraft to168.

Qatar Airways CEO Akbar Al Baker

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February 2010

REGIONAL NEWS

Jet Airways’ domestic market soars DATA

Jet Airways has recorded growth of 53% in its domestic market in December 2009, when compared to the same period last year. The Indian airlines’ alleconomy services Jet Airways Konnect, which serves domestic routes only, and JetLite, which flies to a number of domestic destinations, as well as two international destinations, are thought to have provided the much-needed surge in passenger numbers. In fact, JetLite posted a 23% growth in passenger traffic at an average seat factor of 81.5% in December.. Meanwhile, international passenger traffic also increased 28% during the abovemen-

tioned period, while the average seat factor for Jet Airways’ international operations for December stood at 84.9%. Jet Airways CEO Nikos Kardassis, said: “We have over the last year introduced several new strategic marketing and network initiatives. “The introduction of new flights to neighbouring countries like Nepal, Bangladesh and Qatar have resulted in increased payloads as well as a robust growth in traffic. “The introduction of a new business model with Jet Airways Konnect, as well as the improvement in reliability and on-time performance of JetLite have helped us in emerging as an efficient and responsive organisation.”

Nikos Kardassis says the airline’s low-cost business has helped to boost ﬁgures

Etihad Airways launches Emirates brings ﬁrst its new cabin product superjumbo to KSA FLEET

FLEET

Etihad Airways has taken delivery of its first Airbus A330300, configured with the airline’s new first, business and economy cabin product. The aircraft is the first of five new A330-300s the Abu Dhabibased airline will take delivery of during the next two years. It carries 12 passengers in first class, 40 passengers in business class and 151 passengers in economy class. Etihad Airways CEO James Hogan, said: “The delivery of a new aircraft is a great moment for an airline but the new A330300 is special for Etihad because it is the first time our customers can experience our new product in all three cabins. “Our first class suite has been a huge success since its launch earlier in the year and we are sure the new business and economy cabin product will be just as popular with our customers.”

Marking the fi rst commercial Airbus A380 into the Kingdom of Saudi Arabia, Emirates will serve Jeddah four times weekly with the superjumbo from this month. Starting February 1, Jeddah will be the eighth destination to be added to the growing list of gateways served by the A380 which include; Sydney, Auckland, Heathrow, Bangkok, Toronto, Seoul and since December 29, Paris. Emirates senior vice president commercial operations Gulf, Middle East and Iran Ahmed Khoory said the aircraft deployment was significant as it was the airline’s first Middle Eastern A380 destination outside of Dubai. “The introduction of the highly acclaimed A380 on the Jeddah route is a true reflection of an increased demand for services in and out of the Kingdom.

February 2010

Hogan is sure of the cabin’s success

Etihad currently has two A340-600 aircraft configured with the new first class suite and the airline will retrofit nine A340s that are currently in service by December 2010. The new first class cabin contains 12 individual suites which offer more privacy, greater comfort and increased storage. Each seat extends to a fully-flat bed that is 80.5 inches in length and each private suite is accessed by its own sliding door.

“This service into Jeddah will mark Emirates’ fi rst Middle Eastern A380 destination outside of Dubai, a significant milestone for both Emirates and Saudi Arabia.” Khoory added that the route had remained busy. “Adding an A380 onto this perpetually busy route will significantly increase our capacity; ensuring passengers have greater access to flights whilst enjoying the distinction of travelling on the world’s largest and most heralded aircraft.” The A380 service to Jeddah will be the first aircraft into the city to contain threeconfiguration cabins. It will feature 14 private suites in first class, 76 new generation, fully flat seats in business class and 427 seats in the economy cabin. Emirates now has eight A380 aircraft in its fleet with a further 50 on order. www.arabiansupplychain.com

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The Airport Show doubles

ADDF proﬁts up $136m

BUSINESS

DATA

The organiser of The Airport Show in Dubai has announced that it expects to see the number of buyers attending the event to double over the previous year. More than 80 purchasing decision makers and project leaders from live and current airport construction projects across the region are expected to attend the event in April. Representatives that have confirmed their participation include, Doha International, Khartoum New International in Sudan, Maharashtra Airport Development Company in Mumbai, Cairo Airport Company in Egypt, as well as some from further afield.

Abu Dhabi Duty Free has reported that revenue passed US$136 million in 2009, yearon-year growth of 12.7%. Average spend per passenger rose by 5.5% over 2008. “We are pleased to have achieved yet another significant milestone in revenue and attribute this success largely to the launch of Abu Dhabi International’s new Terminal 3 facility earlier this year (2009),” said Abu Dhabi Airports Company (ADAC) chief commercial officer Huraiz Almur Bin Huraiz. “In addition to the luxury boutique environment that the new T3 offers, we have also reaped the rewards from being a largely in-house operator of duty free services to that of adopting an international,

Abu Dhabi Duty Free sees year-on-year growth of 12.7% in 2009

The new Terminal 3 at Abu Dhabi International hosts a number of luxury brands

best-in-class partnership approach, such as the partnership with DFS.” As part of the LVMH (MoetHen ne s s y-L ou i s -Vu it t on ) Group, DFS’s arrival in Abu Dhabi has meant that a number of luxury brands, such as Hermes, Jimmy Choo, Loewe, and Chloe, are now available at Abu Dhabi airport.

The company has committed to further growth in 2010, budgeting 18% growth in turnover based on an estimated 12% growth in passenger figures. Dubai Duty Free at Dubai airport generated $1.1 billion in revenue in 2009. See page 33 for a full interview with DDF’s CEO.

marked the seventh consecutive double-digit increase in passenger traffic and the second highest monthly increase after September’s 19.5% rise. The full year passenger throughput reached a record 40,901,752 passengers, up 9.2% compared to 37,441,440 passengers recorded in 2008. Not only that, cargo volumes lowing were up 5.6% in 2009 following er and a 26% jump in December uring double-digit increases during the last quarter of 2009. The full year cargo trafonnes fic reached 1,927,520 tonnes 991 compared to 1,824,991 tonnes during the samee period in 2008. Dubai Airports chairman His Highness Sheikh Ahmed

Bin Saeed Al Maktoum, said: “Dubai Airports is setting the pace globally. “If we can set records in a tough economic environment, the sky is the limit for what we can achieve when future condi conditions improve.”

Mideast airports pour $86bn into Dubai International grows 9.2% in 2009 site expansions DATA

BUSINESS

Middle East airports will spend US$86bn in expansion plans up to 2025, according to the latest research by Frost & Sullivan. The region’s aviation industry has expanded despite the pressures of the global recession and are expected to grow further, the company said. Frost & Sullivan said a backlog of Middle Eastern orders for the A380 jets, which accounts for 50% of global deliveries will drive the aviation sector in the region, while 12 major airports across the region constitute over 90% of the total investment of $86 billion in the region.

February 2010

Dubai International is one of the world’s fastest growing airports for international passenger traffic in 2009, recording growth of 9.2% for the full year. Airports Council International’s (ACI) latest figures reveal 46 of the 50 busiest airports worldwide in terms of international passenger traffic reported negative growth during the first three quarters of 2009. The only airports other than Dubai International reporting increases were Istanbul, Kuala Lumpur and Cairo. Dubai International handled a total of 3,816,360 passengers in December 2009 compared to 3,333,424 passengers during the same month in 2008, an increase of 14.5%. This rise

Sheikh Ahmed says the sky is the limit for Dubai Airports

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Thermal detection Achieve cabin quality comes to the region for a third of the cost FLEET

TECHNOLOGY

Axis Communications ME has launched its thermal detection camera to Middle East buyers for the first time. Capable of detecting human presence in complete darkness using thermal technology, the Axis Q1910-E camera can be used to prevent security breaches around airport perimeters. The camera requires no light source, as it works by detecting radiation, which is emitted by all objects, even very cold objects, like ice. “Thermal imaging has always been considered high cost, but it is now more affordable and becoming an in-

Marketing director Dominic Bruning

tegral part of IP surveillance systems,” said Axis marketing director, Dominic Bruning. “Customers in the Middle East region want the newest and latest technology and quite often they are more advanced in their procurement decisions than say, buyers in the UK.”

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SUPPLIER NEWS

‘Trusted’ Amadeus signs three more European airlines

Middle East Airlines cuts lost baggage costs TECHNOLOGY

TECHNOLOGY

Amadeus has entered into a long-term full content agreement with Lufthansa German Airlines and Swiss International Air Lines. The agreement, which is valid from March 1, 2010 until the end of 2014, will guarantee travel agents worldwide access to the full range of Lufthansa and SWISS content through Amadeus, with no surcharge. In addition, the technology and distribution solutions provider has announced a threeyear extension to its content agreement with British Airways, taking it up to 2013. The renewed agreement guarantees full-content access to Amadeus users worldwide, ensuring travel agents have access to the same range of fares through Amadeus as they would through the airline’s website. “Full content agreements with carriers such as British Airways, are a significant part of our ongoing mission – to provide our customers with stability and clear long-term planning,” said Amadeus vice president, marketing and distribution Ian Wheeler. British Airways added that Amadeus was a trusted distribution channel. www.arabiansupplychain.com

Middle East Airlines has implemented an integrated baggage management system in Lebanon, the first of its kind in the country. The new BagManager and BagMessage system, provided by aviation IT specialist SITA, will reduce the level of mishandled baggage and will facilitate security at Beirut Rafic Hariri International Airport. In addition, it is expected to deliver Middle East Airlines cost savings of up to 30%. It is estimated that a mishandled bag costs an airline on average US$90 and the worldwide cost to the industry is estimated at $2.9 billion per year. According to SITA, the system will benefit 80% of the air-

lines flying to Lebanon whose flights are handled by Middle East Airlines Ground Handling (MEAG) and will also be made available to other ground handlers at the airport. “SITA’s solution will enable Middle East Airlines to meet ICAO’s security rules regarding baggage reconciliation prior to fl ight departure. On-time departures and security levels will both improve because the system makes certain that passengers and their baggage fly together on the same fl ight,” said Middle East Airlines CIO Adib Charif. SITA regional vice president, Middle East & Turkey Hani El Assaad, added: “Any airline that implements SITA BagManager has the poten-

El Assaad says installing BagManager can result in signiﬁcant cost savings

tial of reducing the number of mishandled bags, a welcome improvement for passengers, and of course, a necessary cost saving at any time, not just during the downturn.”

Travelport renews Gulf Air deal BUSINESS

Alkhalidi says Travelport will continue to increase the accessibility of Gulf Air’s fares

Travelport, a global distribution system (GDS) provider, and Gulf Air have entered into a full content agreement that will give all Galileo and Worldspan-connected travel agents access to the airline’s fares and inventory. The multi-year agreement marks the continuation of a long-standing relationship between the GDS provider and the Bahrain-based airline. “With a respected brand and a strong regional and international route network, Gulf Air is a valued airline partner and we will continue to work closely with them to maximise their distribution capabilities and increase the accessibility of their fares across the globe,” said Travelport MEA director for airline supplier services Khalid Alkhalidi. February 2010

15 Visit www.arabiansupplychain.com for the latest news

Calogi to launch in Sharjah Cargo carrier Air cargo web portal has been made available to Sharjah businesses TECHNOLOGY

Calogi, the business to business (B2B) and business to consumer (B2C) air cargo web portal, is now making its cargo business solutions available to the air cargo community in Sharjah. The Calogi portal is an internet-based platform that allows all stakeholders in the cargo community to conduct their business transactions online. Freight forwarders, airlines, third party logistics providers, customs and government agencies will, through the Calogi platform, have the ability to finalise their business transactions on a real-time basis and to conduct business with the current UAE subscriber base. In addition to various online functions including rating, space bookings, air waybill

Patrick Murray heads the web portal

execution, delivery order printing, track and trace and flight schedules, Calogi has also added a number of new features, including the advertising engine c-Reach, enabling online web page advertising; a credit module c-Trade and the GSAairline sales module feature, c-Power. SNTTA Cargo, the

Sharjah-based GSA provider, which serves a number of the world’s leading international airlines, became the first member from Sharjah to sign a contract for using the Calogi GSA solution, c-Power. Calogi head Patrick Murray said the customer list continued to grow. “Our 19 tailored products are designed to serve both the automation needs of the key stakeholders in Sharjah and the functional needs of the service providers to those industry stakeholders. “We had always expected the demand for the Calogi products to grow very quickly and the signing of this contract with SNTTA in Sharjah is a testament to that.” It is planned for Calogi to be made available to other regional markets in the GCC soon.

Etihad Crystal Cargo ﬂies to Haiti FLEET

Etihad Crystal Cargo operated a special Red Crescent and Khalifa Welfare Foundation charter flight to Haiti on Wednesday January 20, carrying medical and humanitarian supplies to the earthquake-hit country. The MD11 aircraft, which used its full capacity of 88 tonnes, flew first to Casablanca and then onto Santo Domingo in the Dominican Republic. The cargo was unloaded there and taken to neighbouring Haiti. The charter flight is part of the “Care By Air” initiative, founded by Maximus Air Cargo, Etihad Airways and Abu Dhabi Airport Services, which provides cargo space ‘at cost’ to deliver relief aid to

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Relief aid is loaded onto an MD11 aircraft bound for earthquake-hit Haiti

disaster-stricken areas around the world. “Etihad is proud to support the Red Crescent and Khalifa Welfare Foundation as they try to help the people of Haiti to recover from the devastating effects of last week’s earthquake,” commented Etihad Airways CEO James Hogan.

Maximus Air Cargo president and CEO Fathi Hilal Buhazza, said: “Maximus Air Cargo is fully committed to “Care by Air” and as a result we are keen to work together with our partners in helping the Red Crescent and Khalifa Foundation with their shipments to Haiti.”

buys two 747s FLEET

Midex Airlines, the all-cargo carrier based in Al Ain, has bought two used Boeing 747200s to meet a surge in demand in the charter market. According to The National newspaper, the carrier, which calls Al Ain its “mother area” but has a base at Dubai International Airport and is opening a base in Sharjah, has increased its fleet to nine after buying the freighters from Air France. The planes were scheduled for delivery in January. The deliveries will help Midex serve emerging destinations such as Afghanistan and Iraq. It is taking delivery of the aircraft even as it has curtailed services to Paris and other cities due to a glut of cargo capacity from passenger airlines. Where once Midex flew daily from Al Ain to Paris, it now operates only once a week on that route. It has postponed plans to open cargo routes to Mumbai, Cochin, Dhaka and Istanbul. “The market has changed with the recession, but we’ve developed our charter divisions and it has been excellent,” said Jassim Al Bastaki, the airline’s director general. Air freight recovered strongly in November, with Middle East Ea volumes risin rising the fastest of regio any region wo rl dw i d e 21.5% at 21.5%, said IATA IATA. Midex director general Jassim Al Bastaki

February 2010

CARGO NEWS

National Air Cargo plans further expansion in Asia NETWORK

National Air Cargo is investing resources to expand the company’s presence in Asia. The move forms part of a plan to develop new business opportunities in the marketplace, the company said. The firm recently formed a dedicated sales team for Asia and added toll free phone numbers that will be maintained for extended hours through a call centre based in the Malaysian capital, Kuala Lumpur. “This investment is based on our significant growth in the Asian marketplace which has grown by approximately 50% in the last year alone,” National Air Cargo regional director, Pacific Rim Alan White said. “We are confident that this allocation of corporate resources will provide us with a significant return on our investment in this emerging global marketplace.” The new sales team will be directed by White, who heads all National Air Cargo’s operations in Asia. Hari Subramaniam has been reassigned from Dubai to India to lead the sales efforts there. Haryati Nordin has been hired to assist sales efforts in the commercial and charter markets and will be based in Kuala Lumpur. Also joining the new sales team is Walter Edwards as business development manager and Keiko Takatsu who will serve in the capacity of account executive; both will be based in Japan. In addition, Martha Chung has been hired as a sales support executive and will be based in Seoul, Korea, where she will manage the local National Air Cargo office and provide all servicing for the country’s shipping clients. February 2010

Emirates opens Prague trade NETWORK

Emirates’ new daily flights to Prague will be significant to the airline’s cargo division, said the division’s senior vice president, Ram Menen. From July 1, the non-stop service will open up a new trade channel from the Czech Republic’s capital city exporting manufactured goods, machinery, cars, transport equipment and beverages. Asian companies are amongst the key players investing in the country with car giants, Hyundai and Toyota having both established production plants there. Emirates divisional senior vice president, cargo Ram Menen, said: “The launch of services to Prague and the new trade channel it opens up is great news on the cargo side as it coincides with a continuing resurgence of cargo traffic globally. Emerging markets, such as the

Czech Republic, play an important role in that equation.” In 2008, trading volume between the Czech Republic and the UAE reached US$678

million, up 19% on 2007, with exports to the UAE contributing over 93%, according to figures from the Czech Embassy in Abu Dhabi.

Emirates Cargo is hoping to win business from Asian car manufacturers in Prague

GulfNav lifts 4.5m tonnes in 2009 DATA

Approximately 4.5 million tonnes of cargo was lifted by Gulf Navigation (GulfNav) in 2009, the Dubai-based company has confirmed.

From this total, 1.9 million tonnes was crude oil, while 1 million tonnes was petrochemicals and 1.6 million tonnes was dry cargo, such as steel and timber.

Abdullah Al Shuraim says the ﬁgures were a great result during a diﬃcult year

“We are thrilled with the lifting volume results. This has definitely added a greater value to the company’s potential in the local and international market,” commented engineer Abdullah Al Shuraim, chairman of Gulf Navigation’s board of directors. “Despite the economic challenges that the whole world faced during the past year, GulfNav was still able to deliver what it had promised to its global clients and business partners. “It marked great results in terms of number of voyages and total amount of cargo shipped, which really conveys our team’s dedication and enthusiasm in the cargo field,” he added. GulfNav is marketed as the only maritime and shipping company listed in the Dubai Financial Market. www.arabiansupplychain.com

18 Visit www.arabiansupplychain.com for the latest Middle East private jet news

Business travel budgets bounce back BUSINESS

A survey of 1400 business travel managers by the Business Travel & Meetings Show (BTMS) reveals more than a quarter of budgets will be boosted for 2010 and 35% of buyers plan to book more work-related trips. The survey, which was held in the UK, also revealed that around half (46%) of budgets will remain stable, and just 27% of managers will have less money to spend. Four in 10 buyers will manage the same number of trips and only one quarter will make fewer bookings. But despite having more money in the coffers this year, buyers are being very careful spending it. As many as 81% admit they are being forced to adopt even stricter travel policies for 2010. For example, 44% will be booking lower class airline tickets, 22% lower quality

accommodation and 46% plan to increase their use of officebased video conferencing. Business Travel & Meetings Show event director David Chapple, commented: “The

business travel industry has been through a very bumpy ride over the last 18 months, so these survey results are a much needed glimmer of optimism as we enter a new decade: a

Chapple says there are signs that business travel is getting back on track

sign that things are back on track and we are heading in the right direction.” In addition, BTMS has discovered in a separate survey that business travellers view online check-in as the ‘innovation of the decade’; followed closely by wi-fi, flat beds, notebooks and the Eurostar. Survey respondents also threw down the gauntlet to the industry with a list of demands for future innovations to further enhance their enjoyment of business travel. Top of the list was speed, with travellers calling for faster security, check-in and immigration processes. This was followed by the invention of a miracle child silencer, supersonic aircraft, carbon free travel and wi-fi on planes. Notably, 82% of business travellers said they did not want mobile phones to be allowed on board aircraft.

AJA receives Airbus A318 Elite jet

MEBAA president resigns

FLEET

BUSINESS

Al Jaber Aviation (AJA) took delivery in December of its first Airbus aircraft, an A318 Elite jet. The plane is currently undergoing cabin outfitting by Lufthansa Technik and AJA

February 2010

will receive the outfitted A318 Elite in mid-2010, when it will become the first Middle East company to offer Airbus aircraft for VVIP charters. AJA has ordered a further four A318 Elites and two Airbus Corporate Jetliners (ACJ).

After three years with MEBAA as president & CEO, Ammar Balkar has resigned from the post. In an announcement Balkar said the decision had been taken in order to concentrate on his current job as president & CEO of Elite Jet “during this challenging period”. “I would like to thank you all for your support during my time with MEBAA. My three years in this post were full of excitement and challenges, wishing you all the best in the coming years.”

Ammar Balkar has stepped down as president & CEO of MEBAA

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Etihad CEO sees tough year but remains bullish

he CEO of Etihad Airways, the national airline of the UAE, remains “bullish” about the aviation industry but says the economic climate will continue to be tough in 2010. “It will be a tough year but we’re bullish,” James Hogan said. “Like any other business we’ll have to focus on our cost but we’re also growing as a business.” Economy ticket sales are already starting to come back but business class seats will take longer, added Hogan. “The economy traffic we are pretty bullish about; we can see the sales, [but] the issue is the business traffic,” he said.

He added that there is already some improvement in business class ticket sales on long haul flights to Chicago, Melbourne, New York and Toronto. Despite the increase in figures, in November, Etihad pushed back its profitability target to 2011, a year later than originally expected. The airline expects to see its revenues exceed US$3 billion in 2009. Hogan said he remained confident that the carrier would achieve its new deadline for profitability. “If we can get the yields…back to the same levels we had in 2008 we’ll achieve that,” he added.

5 Oman Air launches wi-ﬁ

Most talked about suppliers

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2 Axis Communications Surveillance systems

3 SPS Cabin repair and restoration

EDITOR’S CHOICES ONLINE ANALYSIS

SPECIAL REPORT

2010 aviation market outlook What does the future hold for Middle East airlines?

Top 10 travel tips for 2010 The hottest aviation topics to know for the year ahead

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February 2010

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DOUBLE WHAMMY The co-located MRO Middle East and Aircraft Interiors Middle East events are promising to deliver best practice advice along with cutting-edge design

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February 2010

MRO MIDDLE EAST & AIME Delegates wait for the conference sessions to begin

esponding to the encouraging growth of the airline and aircraft maintenance, repair and overhaul industries in the region, the second MRO Middle East conference and exhibition opens its doors on February 28, 2010. The two-day event, organised by F&E Aerospace in conjunction with Aviation Week, will be held at Dubai’s Airport Expo, and will be co-located with the Aircraft Interiors Middle East show. Speakers will address the current and future forecast for the MRO market, asking market experts to share the bigger picture of what is happening in the MRO market worldwide and what affect the glo-

bal economic crisis is having on the Middle East’s MRO sector. In addition, cost and staffing issues and supply chain trends will be addressed, with topics including, the repercussions of over-capacity in global engine overhaul; and managing your maintenance in hot climates. Names of note include, Air Arabia CEO Adel Ali, Mubadala Aerospace associate director Homaid Al Shemmari, Abu Dhabi Aircraft Technologies CEO John Byers and MTU Maintenance president and CEO, commercial maintenance Dr Stefan Weingartner.

MRO MIDDLE EAST & AIME EVENT HOURS Sunday, February 28 Monday, March 1

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MRO MIDDLE EAST INDUSTRY FACTS • Annual civil aviation growth in the Middle East is 5.2% compared to an international average of 3.9% • The number of commercial aircraft serving the region will triple by 2028 • The Middle East region is set to take delivery of 730 aircraft by 2018 with a further 689 on order up until 2028 – according to Airbus’ latest forecast • The Boeing 2009 outlook valued the Middle East market at US$300 billion over the next two decades, which translates into an expected need for 1710 commercial jets Source: Aviation Week Making time to meet people face to face is essential

February 2010

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MRO MIDDLE EAST & AIME In terms of exhibitors, the ever-expanding Abu Dhabi Airports Company will be present, as will AJ Walter Aviation, which has made impressive inroads in the Middle East during the past 18 months. Avtrade, Asscom Middle East, Goodrich, Honeywell and TAP Maintenance & Engineering will be on hand to discuss their latest products and Lufthansa Technik will also be participating. Aircraft Interiors Middle East (AIME) also boasts an impressive line-up of speakers for the workshops running throughout the entire event. Gary Doy of the UK’s Design Q which designed the interior of BAE Systems’ Avro Business Jet (ABJ), and Noureddine Madoui of German design firm Cas4de, who collaborated to produce a unique VVIP Airbus A380 interior for a Middle East customer, will be sharing their experiences. In addition, Patrick Brannelly of Emirates Airline’s passenger communications will take part in a panel discussion on connectivity. A key element of the show is the Hosted Buyers Programme, which will see decision-makers from top airlines, including Air Asia X, Bahrain Air, Embraer, Emirates, Etihad and Wataniya Airways attending pre-scheduled meetings with exhibitors during the show’s two days.

Andrew Muirhead, Anker, AvioInteriors, Percival Aviation, Eastern Aero Marine, Gerflor, Kydex and Sabeti are just a few of the key companies taking part in the exhibition, which will feature fresh cabin designs and technological advancements. F&E Aerospace director Alison Weller, who led the team in organising the Dubai Airshow in 2009, expressed confidence in the future of the aviation industry in the Middle East. “It’s been a difficult year for the industry across the globe but we saw hopeful signs of recovery at the successful Dubai Airshow in November, with visitor numbers up a record 18% on the previous event and 890 exhibitors from 47 countries, the biggest ever number of participants.” Weller added that she was confident that this year’s AIME and MRO events would see some good deals being made between smart decisionmakers in procurement and likeminded exhibitors.

“Come the Spring, operators will be looking to refurbish aircraft interiors and overhaul engines to meet the promise of a recovering world economy when people will start travelling again, so I believe the two co-located exhibitions for interiors and MRO are timely and we look forward to welcoming back to Dubai Expo existing exhibitors, plus attracting new participants and visitors.” Sheikh Ahmed bin Saeed Al Maktoum will, once again, inaugurate this year’s event

THE AEROSPACE & DEFENCE TRAINING SHOW The Aerospace & Defence Training Show (ADTS) is the latest event in the stable of F&E Aerospace. Predominantly a conference with a supporting exhibition, ADTS will debut in 2010 at Dubai Airport Expo, from March 3 - 4. The event is dedicated to the growing Middle East demand for both civil and military aerospace training, recruitment and simulation. Delivering the keynote speech on the ﬁrst day of the civil conference, entitled ‘Training for the 21st Century’ will be Martin Mahoney, SVP Flight Training at Emirates Aviation College in Dubai. Also speaking are Mohammed Ahmed from Air Arabia and Rick James of Abu Dhabi-based Etihad Airways. The d defence training conference will be held under the of the UAE Ministry of Defence and a team of auspices o speakers and international industry Middle East military m present on key topics. specialists will p TThe supporting exhibition will feature companies oﬀering the most up-tocom training courses and simulation date tra equipment and programmes, in equipm addition to recruitment agencies, vocational and a academic institutes universities. and univer For ffurther information visit www.adts.com

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February 2010

THE NEW 747-8 INTERCONTINENTAL. The new 747-8 is great news for everyone. In addition to lowering operating costs for airlines and setting new standards of comfort for passengers, the 747-8 will also be a welcome sight for airport communities — significantly reducing noise and environmental impact. It’s a cleaner flying, quieter 747. Great news that’s easy on your ears.

INTERVIEW: JIM MCNERNEY

Future of

FLIGHT Boeing CEO Jim McNerney tells Jo Bladd how the plane manufacturer is sitting on a US$260 billion order book im McNerney barrels into the office, jacket undone, wide smile, sentences tumbling out of his mouth as he tells me how much he likes Dubai, that it’s his third visit, how the weather is fantastic, but not – he races on – quite as cool as he’d like. He throws himself into a chair, resettles his tie and grins. “So. What can I do for you?” Well. My first question could be why, in the current market, the chairman and CEO of Boeing is so bouncy. Aerospace companies don’t come much sturdier than Boeing. But if Wall Street has taught us anything in the last year, it’s that the bigger they come, the harder they can fall. True to form, then, the US titan has taken an unprecedented battering in the last year. From the much-hyped but muchdelayed 787 Dreamliner, to the death-spiral of the global aviation industry; the hits just keep on coming. And the damage shows. Boeing was an US$87 current value of Boeing’s stock last May. At the time of writing, it trades at a stock. Last May it traded bruised $56. at $87 Yet McNerney, is as charming and chipper as ever. Fresh from third-quarter results (at time of interview) that wiped $1.6 billion off Boeing’s balance sheet, he is, incredibly, already talking of tentative green shoots. Pummelled though it is, the aviation industry has been in worse shape, he says. “To be honest with you, [financing] has been tight, but not as bad as I thought it would be,” he says lightly. “I expected worse. I just think that there are so many stimulus packages and rescue packages being injected around the world, that the financial system is just a little healthier. “More airplane deals are being done; less backstop financing from us than I anticipated. I think real demand...” he pauses. “We are beginning to see real demand pick up.” Results from this month’s Dubai Airshow disagree. Despite being billed as the richest show in the industry, sales of commercial aircraft at the event slumped to their lowest in six years. Just 42 planes, worth a paltry

$56

February 2010

Jim McNerney has plenty to smile about

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INTERVIEW: JIM MCNERNEY

$5.6 billion, were sold during uring the om the 2007 biennial event; a far cry from ommercial airshow where orders for commercial craft topped $100 billion. Dubai’s Emiror 143 new airates alone placed orders for bus, at a value craft from Boeing and Airbus, of nearly $35 billion. stantial In 2009, the only substantial commercial order came from Ethiopian Airlines, which placed a $2.9 rch-rival Airbillion deal with Boeing’s arch-rival bus, for twelve A350 XWB airof development,” he says. “There’s a craft. The world’s airlines, itt price to pay; I don’t know how else would seem, were not in a to say it. Our customers appreci apprecit that h we’re trying to push the buying mood. ate “Obviously, we are envelope and give them somenot immune to the downthing they’ve never had before – million losses recorded by turn,” McNerney allows. in terms of environmental benMiddle East airlines “On our commercial efit, productivity for them and in 2009 business, the Boeing compassenger experience. And yet mercial planes, obviously they’re not happy with us for being our customers are under duress. late. We sort of live by that sword, and Their load factors, their passenger miles we die by that sword.” are down significantly and their ability to Boeing has more than $15 billion in 787 get price is impacted.” orders from Gulf airlines, but at least two According to industry body, the In- – Oman Air and Qatar Airways – have ternational Air Transport Association threatened to rescind their orders in the (IATA), global airline losses would total wake of the delays. Boeing, for its part, $11 billion last year; $500m of which were has made tentative promises the jet will incurred in the Middle East. be delivered to anxious customers before “That puts pressure on us in terms of a the end of the year. deferral here, a deferral there, and orders Still, recession or no recession, Boeing being down,” McNerney says. is in a far better position than most. Adding to Boeing’s gloom is the news First, it remains a 150,000-employee, that the Pentagon is slicing its defence $36.71 billion colossus, with an order list budget; cuts that could take a chunk out stretching to more than 3000 planes, worth of the firm’s military business. Defence an estimated $260 billion in sales. The firm orders account for about half of Boeing’s expected to – and did – deliver around annual sales, and around 80% of these are 480 of them this year. By any measure, completed in the US. it’s an enviable position to be in. Just ask McNerney shrugs. “The Obama ad- Boeing’s rivals. ministration has a very heavy domesSecond, it has cannily navigated its way tic agenda, and there is somewhat less through worse. When McNerney took the available for defence. So we’re feeling reins in June 2005 - following stints at 3M that pressure.” Still, by far the biggest thorn in Boeing’s side is the 787 Dreamliner. The ‘DreamBOEING PROFIT UP IN Q4 on-Liner’, as the aircraft has been dubbed by some in the industry, was first unveiled As Aviation Business went to press, to the world in July 2007, with a promise Boeing reported a fourth quarter proﬁt of a maiden flight that September. of US$1.27 billion. In the fourth quarter More than two years, six delays and a of 2008 Boeing lost $86 million. Revenue slew of technical setbacks later, the 787 firose to $17.9 billion from $12.7 billion a nally made its first test flight in December, year earlier. The healthy ﬁgures came 2009, but both in terms of dollars – the Chicago-based firm has said it will swaldespite Boeing facing an economic low a $2.5 billion charge on the plan – downturn that shrank orders for and reputation. airplanes for the full year. McNerney is rueful. “Look, this is the price we pay for being on the bleeding edge

$500

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Boeing has more than US$15 billion in 787 orders from Gulf airlines

and GE, under the great Jack Welch – it was on the heels of a threeyear binge of corporate scandal. Highlights included the jailin jailing off B Boeing’s fformer CFO, the indictment of a manager for allegedly stealing 250,000 pages of proprietary documents from his former employer Lockheed Martin, and a class action suit that accused the Chicago-based firm of paying male employees more than women. McNerney, you could say, has a track record for riding out storms. Lastly – and a fact lost in the turbulence over the 787 – even delayed, Boeing’s Dreamliner is set to be a game-changing aircraft. Not only is it a quantum leap in technology (the fuselage is made from lightweight carbon composite rather than aluminum), offering unrivalled fuel efficiency, it’s also the test case for a whole new way of building airplanes. With commitments for 840 planes from 55 customers, at an average list price of $178 million each, the Dreamliner is the fastest-selling new aircraft on record. Despite the fuss and froth over the ‘sevenlate-seven’ delays, the firm has ceded just 70 cancellations. All, says McNerney, from airlines that had “failed business models. It’s not that they didn’t want the plane.” In part, this is because Boeing’s timing has been good. Many of the carriers most frustrated with the delays are quietly gleeful that the 787 hasn’t stuck to schedule. With little immediate cash, they would

“We put a strong ﬁnish on 2009 by getting the 787 in the air and generating solid core operating performance across the company,” said CEO Jim McNerney. Following the announcement, Boeing shares jumped $4.22 to $61.93. Boeing has projected it would earn $3.70 to $4 a share in 2010. Activities for 2010 will focus on delivering the 787 and 747-8.

December February 2010 2009

INTERVIEW: JIM MCNERNEY

have struggled to secure financing in the Over the past ﬁve to 10 years, it’s [the current credit climate, had Boeing delivered on time. Middle East] become a big deal ... a very big That said, few carriers want to ditch an order for an all-new plane that, if Boeing deal, and not just commercially is true to its word, will fly faster than the competition and cost substantially less to spot, with one labour force. Any business run and maintain. that pursues an ever more globalised mar“And that, really, is the point,” McNket has to be mindful of globalising both erney says, bracing his hands on the tatheir presence and their costs. ble. “Planes will be made this way for the Does he think the trade unions in Seatnext 80 years. We went through the pain tle understand that? of doing it this way, but once we get out “I think – the quick answer is not althe other side, we’ll be a generation – two ways,” he says, sitting back in his chair. generations even – ahead of anybody else. “They’re fighting for the jobs of their peoThese planes are 20% lighter, they have a ple, and trying to get the best deal possismaller environmental footprint, and they ble. So there is natural tension there.” go a long, long way. It will be more than The recession has taken its toll in other worth it.” ways. Boeing sliced 8000 workers off its He stops to grin. “I only hope I live payroll in 2009, and is set to lose another long enough to enjoy the ‘worth it’ part, 2000 in the first quarter of this year. Mcfor as long as I’ve enjoyed the ‘getting-itNerney expects to shed more, as the year done’ part.” goes on. Despite threatened cuts at the White “We’ve talked about the 10,000 and House, Boeing’s military business is fast then maybe some more [in 2010],” he admaking up ground abroad. International mits. “Not in the magnitude of another sales have more than doubled in recent 10,000, but there will be a continuation years to around 20% of Boeing’s defence of the trend lines through to the end of business. In the Middle East, the aerothe year.” space giant is making a mint. For the first McNerney is preparing to make job cuts in 2010 In the grand scheme of things, Boetime, its military trade has the potential to ing is sitting pretty amid the recessionoutstrip its commercial business. “Over the past five to 10 years, it’s [the It is the company’s first full produc- plagued aviation industry. Getting the 787 in the air by the end of Middle East] become a big deal,” McNer- tion line outside the Jet City, where it ney says. “Not a little deal, but a very big employs some 54,000 people. The move 2009, went a long way towards soothing deal. And not just on the commercial side has partly been forced by the pressures of disgruntled buyers and buying back goodbut the military side. The order book on the financial crisis, and Boeing’s need to will. And, as McNerney knows, all will be the commercial side is somewhere in the drive a harder labour deal. But the lure of forgiven once Dreamliners start rolling off 5-8% range [of Boeing’s total order list]. South Carolina’s trade laws - which limit the production line. Looking back now, I ask, does McNOn the military side, the size of the oppor- the power of unions - and the promise of tunities we are pursuing here are probably an up to $400 million incentive package erney wish he‘d handled the 787 differsomewhat more than that. For four or five are likely to have sealed the deal. McNer- ently? He sighs. “It was just a bridge too relatively small countries, that’s a lot.” ney, however, insists that the bottom line far,” he says. “[We] had an overly ambitious schedule and an overly ambitious In its Seattle stronghold, however, the is competitiveness. aerospace giant is facing turbulence. Boe“There is no doubt that this industry is partner strategy.” For the first time, Boeing outsourced ing and the International Association of globalised, and there is no doubt that ChiMachinists and Aerospace Workers, which na and other countries will be far bigger almost the whole production of a plane. “We could have done a new material, represents 25,000 workers in Washington factors, and that Boeing and Airbus will state, have been at each other’s throats for not be the only games in town,” he argues. and kept the old partnership structure. Or much of the past decade. “We have to assume that’ll happen, changed the structure, but not changed the material to make the plane. We tried The union has shuttered Boeing and I believe it will. factories four times in 20 years, “That also means at the to change it all at once and...it was just a including a two-month strike end of the day we have to bridge too far.” There is a moment’s pause before he in 2008. Last year, following address our costs in the weight reduction of Boeing States, and that gets into brightens. “Still,” he says. “We learn from a high noon stand-off with the 787 when compared to union, Boeing announced it having a diversified labour it. Next time, we’ll do it better.” similar passenger jets was blowing town in favour of base, which is the course Jo Bladd is deputy editor of Arabian building its new 787 Dreamliner we’ve chosen in the US, to factory in South Carolina. not build forever, all in one Business magazine.

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February 2010

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ASK THE EXPERT

Meeting travel needs Question: How is new technology reinventing the travel shopping experience on airline websites? Expert: Amadeus VP e-commerce Denis Lacroix

ravellers are getting increasingly fed up with confusing and complicated websites that often force them to wade through endless pages of information. In fact, only 33% of American travellers feel that travel websites do a good job presenting travel choices. According to Forrester Research, by 2013, the number of travellers researching and booking their trip online will have grown, but only by a modest 16%. Forrester argues that the main reason for this modest growth is that many sites are not up to standard. A combination of poor design, concerns about security and most significantly, inflexible options are to blame. Current search facilities operate in a linear way and travel queries are primarily conducted based on known destination and specific travel dates. Consumers have to spend significant time and effort to narrow the options down to what they are truly looking for. We know from traveller feedback that leisure travellers often don’t know what they really want. Even if they do, they still want to compare options and offers. Amadeus has been working on a concept called Extreme Search which is designed to address this issue. Extreme Search serves the leisure traveller with solutions that are more intuitive, allowing them to search in the way they think. Holiday makers are able to explore and determine the trip they are interested in based on their desired travel experience, not the linear origin and destination parameters our industry relies on today. Affinity Shopper is the first incarnation of the Amadeus Extreme Search concept for airlines. It is a search tool that enables leisure customers to search for options that satisfy their true reasons for travel without needing to specify precise travel dates or a particular destination. The solution February 2010

brings together all the search functions available in the marketplace including; calendar display, price, destination and map display, but Affinity Shopper changes how leisure travellers engage with airlines online and significantly improves the efficiency of the online channel for airlines. Search is integrated with the booking process, making it simple for the customer to move directly from the shopping stage to the booking itself. From the consumer perspective Affinity Shopper allows a traveller to ask a complex series of questions within a very easy to use interface on an airline’s website. Results can be returned for highly personalised questions such as: “I would like to go to the beach, I have a budget of US$300 and I’m keen on a temperature of over 30C, oh and I’m looking for somewhere with good water sports”. As you’ve probably noticed there is no mention of a specific destination – that’s because most

leisure travellers don’t mind where they fly to, as long as it meets their motivations for travel. The secret ingredient in travel search is access and the ability to process travelspecific data; this includes flight schedules, availability and pricing information. Only by aggregating, organising and indexing this data at lightning speed are consumers offered the usability and relevance they expect from, say, a general Google search. We’ve worked hard to combine this specific data with the investments made in our highly scalable computing systems and the result is Affinity Shopper. Airlines can realise a number of benefits from Affinity Shopper, the first being increased customer satisfaction. This is made possible by quickly delivering search results that are specifically in line with customer requirements and reducing the time taken to plan and book. Reduced costs and increased revenues as a result of better look-to-book ratios due to the improved user experience and quality of personalised search results have also been reported. Airlines incur a cost for every search conducted on their website and by reducing the need to shop based on a destination and allowing customers to search in the way they think, airlines can reduce searches and therefore technology costs. In addition, airlines implementing Affinity Shopper on their website are able to promote specific or under-used routes by matching them to certain activities within the search process such as winter sports, culture or fine cuisine. There have been many and significant strides made in search and shopping capabilities and it will be those airlines that can offer leisure travellers the most relevant, simple to use and effective online experience that will foster loyalty and ultimately drive revenue. www.arabiansupplychain.com

FACE TO FACE

UNITED FRONT New systems and a fresh approach will change the way that air traffic control operates, says SITA head of air traffic management Akhil Sharma Should Dubai centralise air traffic control in the Gulf region in a bid to reduce congestion? If one was to design a global air traffic control system starting with a clean sheet of paper and without taking into account institutional/military/sovereignty/political issues it would look very different to what we have today. Each region could operate a limited number of en-route air traffic control centres for the entire upper space of that region and under the responsibility of a single regional air navigation service provider. This would, result in increased efficiencies (reduce costs), increased capacity and most importantly increased safety. The implementation of such a system from a technology point of view would be straightforward as it can be deployed using technology available today. The social, political and economic issues on the other hand would not be so straightforward and would require the strongest political will at the highest levels in government to make it happen. Obvious potential showstoppers would be where such a regional ATC system should be located, who should operate the system, impact on jobs, implications for national security, etc. Is a lack of communication between various aviation authorities in the region to blame for air traffic issues not being addressed sooner then? It is not a question of blame. The only real solution to the problem is to create a competitive environment. Air navigation service providers should be privatised and the delivery of services should be awarded by the government following a competitive tendering exercise for periwww.arabiansupplychain.com

ods of up to five to 10 years. The services contracted should be against defined service level agreements and investment plans for continued modernisation. What will the opening of the new Jebel Ali airport mean for air traﬃc in the UAE? There is an urgent need to increase airspace capacity in the region itself and adjacent regions. This challenge can only be realistically addressed through regional and inter-regional collaboration between the governments, militaries and air navigation service providers. The introduction of air/ground data link services enabling pilot/controller exchange of text messages, which is mandated for implementation in Europe from 2011, will contribute to enhancing both safety and increasing airspace capacity as it will enable significant reductions in controller workloads currently spent on delivering

voice instructions over the VHF radio/ telephone service. Ultimately it may be necessary to evaluate the benefits of introducing a regional flow management system that will be able to manage airspace capacity versus demand. What are the beneﬁts to the Middle East region in adopting IP networks for ATC communications? The primary driver is to enable the seamless exchange of air traffic management information (e.g. flight plan data, radar data) between air navigation service providers in the region through a common infrastructure that will enhance both the efficiency and safety of the air navigation service. An equally important driver is that such a network is readily scalable to include additional stakeholders (e.g. military, airlines, airport operators) to enable the efficient and timely exchange of information. This should result in the basis of what the industry terms collaborative decision making and eventually system wide information management, the latter being a key objective of the multi-billion dollar European SESAR and US NextGen air traffic modernisation programmes. A final key driver is to support air traffic control voice communications between ATC centres over IP. Estimates in Europe indicate that in excess of €20 million (US$28.3 million) per year is spent on ATC voice communications lines. The migration of these ATC voice services over a regional IP backbone has the potential to deliver significant savings. The availability of regional IP backbones is essential and indeed a pre-requisite to the deployment of regionalised ATC applications. February 2010

INTERVIEW: COLM MCLOUGHLIN

We’ve only just

BEGUN The head of Dubai Duty Free shares the secrets of running the world’s most successful airport retail operation

olm McLoughlin was only set to stay in Throughout McLoughlin’s time in charge, one of the keys Dubai for six months when he came over to the organisation’s success has been stability. Of the 100 peoin 1983 to help set up the airport’s duty ple who were with DDF when it started in 1983, 57 are still f r e e operation. Sent on secondment from Shannon employed there and most have moved up the corporate ladder. airport in Ireland, he was asked to stay on as head of In the IT department, all staff bar the person in charge were in the new operation when his contract was up. non-IT positions at DDF and were retrained to do tech jobs. Almost three decades later, he is still here “Except for only one small period, all our jobs in the duty and loving life as managing director of Du- free have been internal promotions,” the managing director exbai Duty Free (DDF). In that time, Dubai plains. “That’s something we decided right at the beginning.” Duty Free has doubled its revenue six times Recently, there has, of course, been the small matter of 2009 and it was recently confirmed that DDF was the world’s larg- and the worst recession since the 1930s to contend with. “2009 est duty free operation by sales in 2009. started a little bit shakily, like the rest of the duty free industry, The company now employs 3500 people, sells one and and after a few months of the year we were down on a half million pieces of merchandise every week and 2008 in revenue,” McLoughlin confirms. “But, we processes more than 55,000 transactions every day. reckoned we should do something about it and we Revenue for 2009 came in at US$1.1 billion, did various things.” around 3% up on 2008. Measures included more billion in revenue was “I’d say we’ve only just begun,” says McLoughuse of promotions, disrecorded by Dubai Duty lin, of DDF’s progress so far. “I think there’s a counts and one-off great future.” special offers to entice Free in 2009 – 3% up Dubai Duty Free has grown hand in hand with reluctant customers to on 2008 Dubai, its airport and its airline and has played a maspend. A series of onejor part in building up the Dubai brand. Dubai Duty Free day promotions, when all has been a pioneer in the field of sports marketing, sponsoring prices in a category would be cut a number of events over the years and creating its own high by 20%, was particularly successful. profile events, like the Dubai Tennis Championships, that are On December 20, the now part of the international sports calendar. day in which The diverse nature of the job, which includes managing DDF celebrata huge retail operation, events management and running a number of Dubai Duty Free has leisure destinations, such as the Aviagrown hand in hand tion Club, is one reason why with Dubai McLoughlin is still in it after 26 years. “Every single day, we deal with different kinds of things,” he says. “Going to work is very exciting and I think we all love it.”

$1.1

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December D De eec February ecem eb ebm mb ubaer eyr 2 2010 200 20 2009 0 00 09 0

INTERVIEW: COLM MCLOUGHLIN

ed its 26th anniversary, daily 2009 was also the first full year of The increase in net profit sales reached $17.3 million, has helped offset a recession- operation for Terminal 3, the dedicated with perfumes, cosmetics ary decline in average spend Emirates terminal that opened at Dubai and watches proving parper customer. Overall, 2009 International in late 2008. The opening rise in sales at Dubai Duty ticularly popular. has been a valuable learn- has more than doubled the airport’s duty Free in 2009, compared DDF’s consumption of ing experience for DFF free space from 7000 to 15,000 square to 2008 packaging, water and elecand many of the things that metres in a single swoop. tricity was reviewed and kept McLoughlin describes the first year of worked last year will continue under tight control. Overtime operation as “successful” overall, saying to be implemented in the future. was kept down to a minimum and when “I think we learned a lot from 2009, that Terminal 3 accounted for around overtime was worked, time off in-lieu from the point of view of the merchan- 54% of revenue in 2009. Sales of ladies was offered to employees. Recruitment dise we sell, the value that customers ex- fashion saw an increase of 36% in 2009, was put on hold for six months of the pect, the kind of sales efforts we should which is no doubt attributed to the exyear, but one thing DDF has not done is be making and how important it is to tended fashion offer available following lay off employees. keep your staff with you as a group. We the opening of Terminal 3. “We met all our staff and tried to share have the notion in Duty Free that we are Lessons have been learned though the problems with them, we tried to en- a team, that we’re all kicking with the and key points to have emerged from thuse them and the response was fantas- same foot and I think this year tested year one are that spend per head is lowtic,” says McLoughlin. “We have targets that and we came out very positively. We er there than in Terminal 1; the termito reach and there was great excitement think it was a great year.” nal’s distinctive central spine is likely when we reached our targets. As a result of the measures impleI think we learned a lot from 2009, from the mented, sales picked up after a sluggish first quarter and were 3.76% up in 2009, point of view of the merchandise we sell compared to 2008. Net profit is growing faster than revenue and was up 11% year and the value that customers expect on year for the period January-October.

3.76%

A panoramic view of Dubai Duty Free’s operations in Terminal 3

February 2010

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INTERVIEW: COLM MCLOUGHLIN

The opening of Terminal 3 in October 2008 to be changed and duty free’s location added 8000 square metres to the in arrivals “isn’t the best position in duty free space the world”. “In our design of the shops there, we have some things that are very good, some things that are not so good and we are correcting them,” the managing director says. While the opening of Terminal 3 has been a big event for DDF, there is a lot more scheduled to come. The construction of Concourse 3 is underway at Dubai International and when it opens in 2012, another 8500 square metres of retail space will be added to the 15,000 already at the airport. Before that, however, phase one of Al Maktoum International, the brand new airport near Jebel Ali, is scheduled to open in rise in sales of ladies fashion at Dubai Duty Free’s new June 2010. Dubai Duty Free will years. So we think that Terminal 3 in 2009 have 3000 square metres of retail in five years, we will be space at the airport on day one. doing nearly $2.5 billion By June 2012, McLoughlin exin sales.” pects the new developments to have Expansion at Al Makdriven Dubai Duty Free’s headcount up toum International all depends, of to 5000 people. course, on the success of the project Big as both these developments un- and doubts have been raised about the doubtedly are, there is even more in the likelihood of the 160 million target ever pipeline. The masterplan for Al Mak- being reached. toum International envisages the export Asked how he feels about the new airbeing expanded, over time and in stages, port and its chances of success, McLouto accommodate 160 million passengers glin replies: “I think it’s great. The foreper year. Dubai International, by com- casts indicate that traffic is going to conparison, currently handles around 40 tinue growing here. We have witnessed it million per year. ourselves growing from 3 million a year When the new airport reaches that to 40 million. Dubai is a small place, but level of 160 million, probably in around it’s a hub in the centre of millions and a decade and a half, DDF will be operat- millions of people.” ing 64,000 square metres of retail space Asked how he feels about the possiubai International eventually across its various terminals. With its ex- bility of Dubai wn and all air traffic movpansion into Al Maktoum International closing down in mind, DDF has recently purchased ing to the new airport, he jokes: “It 730 apartments in Discovery Gardens matters at the moment because I live for staff use. across the road,” adding, “If I was ne in the whole world that “We’ve doubled our business six times the only one ide, I would opt for Dubai over the last 25 years,” says McLough- had to decide, ntral with bigger capaclin. “Our ten year strategic plan, if we’ve World Central got it nearly right, means we will double ity and six runways.” ccess has not, our business again in the next five or six DDF’s success

39%

of course, gone unnoticed by others, but the company’s overseas forays have been somewhat limited. The company helped Jordan set up its duty free operations, though purely on a consultancy basis, and it made unsuccessful bids to run duty free operations at Beirut and Colombo’s international airports. The main reason why it hasn’t tried to expand more aggressively overseas is simply the phenomenal rate of growth at home. “Doing something in a small airport hasn’t been that high up our list. When proposals have come in we have studied them, one or two we have followed up, but we haven’t gone and done work anywhere except in Jordan,” explains Mcloughlin. “We have been fairly busy trying to stay abreast of what we are doing, he concludes.

McLoughlin has helped to set up Queen Alia airport’s duty free operations

We will double our business ess ix again in the next ﬁve or six ink years; In ﬁve years, we think we will be doing nearly US$2.5 billion in sales www.arabiansupplychain.com

December February 2010 2009

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PROJECT FOCUS: NEW DOHA

Qatar’s

BIG G PLAN A look at the ambitious project for the state-of-the-art New Doha International

he New Doha International Airport (NDIA) is a key project in Qatar’s national development strategy. The airport will fulfill three critical roles: for Qatar to be the gateway to the world, to be the hub for Qatar Airways and other airlines, and to serve as a cargo and aircraft maintenance centre. NDIA will be one of the first airports in the world to accommodate unrestricted operations by all commercial aircraft, includ-

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ing the new Airbus A380 airliner that will more than 100 aircraft stands, a full range soon be added to Qatar Airways’ fleet. At of airport support facilities, and extensive opening day (2011), NDIA is designed to commercial developments. In time for the opening day, two runannually accommodate 24 million passengers, 1.4 million tonnes of cargo and more ways with lengths of 4850 metres and 4250 metres, separated 2 kilometres than 360,000 aircraft movements. apart will be provided. The pasThe ultimate master plan alsenger terminal and concourse lows NDIA an ultimate capacwill be about 600,000 square ity to annually accommodate metres and will provide 41 nearly 50 million passengers million passengers will be contact gates and 22 remote and 2.5 million tonnes of cargo. The site area of 22 accommodated at NDIA once gates. Other facilities include the ultimate master plan the Emiri Terminal, air traffic square kilometres has the is complete control tower, cargo complex capacity for two runways, and maintenance centre. a mega passenger terminal,

December February 2010 2009

PROJECT FOCUS: NEW DOHA

PASSENGER COMPLEX The design of the roof structure alone is enough to ensure that NDIA stays in the mind of the international traveller as a landmark structure in the world of aviation. Reflecting the terminals’ seaside setting, the roof will be wave-like in structure. The transparent façade of the terminal beneath, further emphasises its state-of-theart curves. Inside the terminal, the design focus has been on the creation of a spacious but efficient and convenient airport experience. The result is a multi-level building with arched columns, generous skylights and highlighted finishes that enhance the feeling of space. The passenger terminal is deless passenger experience within signed so that all passenger transthe facility. In addition to this, fers can occur under one roof. passenger processing will be With short walking distances managed to ensure quick between gates, and shorter passenger processing. connection times between square metres will make up An extensive central the space covered by the flights, passenger waiting and area has been designed for terminal and concourse walking times are minimised, duty free, retail, food and all helping to ensure an effortbeverage amenities and air-

600,000

line lounges. All departing passengers will walk through this area. The terminal will also have a 100-room transit hotel with health and entertainment facilities. Signiﬁcant thought has also been given to the exterior of the facility. Featuring a man-made lagoon and strategic landscaping, the intent has been to create a lush green space.

AIR TRAFFIC CONTROL TOWER Like a pivot in the centre of the airport, the crescent-shaped Airport Traffic Control Tower will provide the control between the two parallel runways and airside facilities at the New Doha International Airport. The Air Traffic Control Tower will be an elevated, triangular shaped structure, topped by a glazed control room, about 85 metres above the airport. From here, air traffic control staff will have unobstructed views of all aircraft movements, on runways, taxiways and aprons. The technical complex at the base of the tower will comprise multi-storey buildings, parking facilities and access roads. This will house the advanced technical systems for the control tower – in particular that relating to the approach control room. There will also be a training room that can be used as a control room in case of emergency.

CARGO TERMINAL Located in the midﬁeld area, NDIA’s cargo complex is made up of seven facilities covering more than 290,000 square metres and will have the capacity for processing 1.4 million tonnes of cargo per year, making it amongst the largest cargo terminals in the world. A main feature of the cargo complex is the 48,000 square metres Cargo Terminal building which houses the Air Cargo Handling System. The system has the capacity to accommodate more than 1000 main deck ULDs and more than 5000 individual consignments. The Cargo Warehouse Information System (CWIS) will ensure that the locations of all of the cargo in the terminal million tonnes of cargo are tracked so that the cargo per year can be processed can be processed quickly. at NDIA’s new Other features are the special cargo complex cargo, hazardous cargo and high value cargo areas.

1.4

February 2010

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PROJECT FOCUS: NEW DOHA

AIRCRAFT MAINTENANCE BASE The Aircraft Maintenance Base at NDIA will be the central maintenance hub for Qatar Airways’ international fleet. Located in the midfield area, it will be capable of holding a maximum of eight wide body, and two narrow body aircraft, with two positions capable of servicing the future Airbus A380s. The base is in the form of a large hangar for both line-base and heavy maintenance. The design of its layout and column-free spacing is focused on ensuring flexible aircraft parking at all times to deliver maximum maintenance efficiency. The workshop building at the back of the aircraft hangar bays will provide specialised maintenance and automated spare parts storage. The central engineering office for Qatar Airways will be located wide body aircraft can be adjacent to the hangar and housed in NDIA’s Aircraft workshops. This building will Maintenance Base at any house the airline’s engineering one time departments including maintenance and quality assurance.

CATERING BUILDING The NDIA catering facility will be one of the world’s largest in-flight catering facilities when completed, equipped with a fully automated in-flight and bulk kitchen catering facility covering approximately 65,000 square metres of food operations and production area for a daily meal production capacity of 85,000. The facility comprising a three-storey structure and basement will be a stateof-the-art facility within the industry and will include an automatic cart transport system, automatic bin conveyor system, automatic storing and retrieval systems, high bay pallet store, kitchen by food types, freezing and chilled rooms, linen storage and laundry in-flight meals per day can facilities, airside be produced at NDIA’s threeand landside storey kitchen food production, catering facility and administrative and staff amenities, amongst others.

85,000

KEY FEATURES OF NDIA • The home base and hub of Qatar Airways • Provide unconstrained A380 aircraft operations • Be partly reclaimed from the Gulf • Provide state-of-the-art facilities • Provide high level of service, comfort and convenience • Accommodate Qatar’s aviation needs for the next 50 years and beyond

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February 2010

TOP 10

TOP 10 TRAVEL DESTINATIONS FOR 2010 Middle East travellers are preparing to venture further aﬁeld than ever before ritish Airways may operate 26 weekly flights from the UAE to London Heathrow, but experts from the global airline state that landmark sporting events such as the FIFA World Cup and a growing trend towards eco-tourism will influence the travel calendar in 2010. Not only that, but the airline’s New York and Las Vegas routes are tipped to the most popular amongst Middle East customers in 2010.

Eco-tourism puts Stockholm on the map, while Istanbul is expected to be one of the most visited European destinations in recognition of its recent title of ‘European City Of Culture’. “Our regional customers recognise that there’s a world of opportunity out there; from Croatia’s magical Dalmatian Coast, to Las Vegas and New York, and to the breathtaking snow-capped mountains of Vancouver,” says British Airways regional commercial manager for the Middle East Paolo De Renzis. British Airways’ top 10 list for 2010 destinations follows.

VANCOUVER, CANADA Already a must-go destination for skiing and snowboarding, it’s no surprise that Canada will play host to the 2010 Vancouver Winter Olympic and Paralympic Games this month and next.

ISTANBUL, TURKEY As the ‘European Capital of Culture’ for 2010, Istanbul is Europe’s hotspot for the year ahead, oﬀering value for money at its beaches and bazaars.

CAPE TOWN, SOUTH AFRICA Nearly half a million supporters are expected to visit South Africa during the FIFA World Cup in June. With Cape Town home to stunning beaches, mountains, vineyards and the Cape Town Stadium, it’s sure to be a popular base for fans. BA commercial manager in South Africa Sue Botes, says: “Cape Town has always been a popular destination, we expect the World Cup to push it to the top of the longhaul league table as the best place to be in 2010. We are already preparing for the event and have additional ﬂights in place, as well as our local carrier Comair to connect fans to destinations around the republic.”

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LAS VEGAS, USA Not just a haven for partying – Las Vegas is ﬁrmly established as a family friendly destination with everyone from U2 to Cirque de Soleil performing on the famous strip. It is a newly launched route from BA oﬀering greater connectivity to Middle East travellers.

February 2010

TOP 10

PUNTA CANA, DOMINICAN REPUBLIC Punta Cana is one of the emerging destinations for holidaymakers in 2010, with tour operators and industry experts citing local beaches as ‘the most stunning in the Caribbean’. Known for its golf and spa facilities, the island is one of the best-kept property secrets in recent times.

NEW YORK, USA The city that never sleeps has always been hip, and Middle East travellers will continue to make the long-haul ﬂight to the Big Apple, say analysts.

DUBROVNIK, CROATIA Known as the ‘Pearl of the Adriatic’, Croatia oﬀers privacy and tranquility making it a popular hideout for the Middle East jet set. British Airways commercial manager for Croatia Mirjana Dostal, says: “Dubrovnik holds many attractions and delightful boutiques, with each corner of the city oﬀering an individual experience. However, its cluster of private islands has made this a new favourite destination for elite travellers.”

STOCKHOLM, SWEDEN Regularly voted one of the best cities in the world to live in, Stockholm has become the model city for others to follow. Europe’s epicentre of biodiversity and ecology will celebrate its oﬃcial title of ‘European Green Capital’ in 2010, making it a popular choice for eco-tourists.

THE MALDIVES Set in the Indian Ocean, this tropical paradise will be one of the hottest destinations for holidaymakers and honeymooners in 2010. Collections of coral reefs boast unrivalled facilities for diving, while the picture postcard beaches oﬀer chillout bliss to the maximum.

February 2010

DELHI, INDIA Thanks to the growing trend for ‘tiger safari’, nearby destinations Bandhavgarh Wildlife Sanctuary and Kanha National Park provide another reason to get oﬀ the beaten track and visit Delhi in 2010.

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AVIATION DATA

AVIATION FACTS & FIGURES A SUMMARY OF LATEST INDUSTRY STATISTICS FROM AROUND THE WORLD

Knowledge of passenger numbers is crucial to improving the aviation business, particularly during the current economic slowdown. Every month we bring you up-to-date industry ďŹ gures

he improvement trend continued in October 2009, with airports reporting an increase of 1.8% in total global traffic. Continuing growth in Asia Pacific and Middle East markets also contributed to the improving overall results,

with the latter recording a year-on-year increase in total passengers of 8.7%. Global traffic has continued to climb since May 2009, with domestic traffic leading the renewed demand curve, notably from Indian airports reporting particularly good results.

OCTOBER 2009/2008 CITY/COUNTRY

PASSENGERS (tonnes)

CARGO

% CHG

(tonnes)

YEAR-TO-DATE OCTOBER 2009/2008 MOVEMENTS

% CHG

(tonnes)

PASSENGERS

% CHG

(tonnes)

CARGO

% CHG

(tonnes)

MOVEMENTS % CHG

(tonnes)

% CHG

MIDDLE EAST ABU DHABI, UAE

797,433

2.8

36,448

24.8

9131

15.5

7,971,727

7.0

312,390

4.6

83,889

9.0

BAHRAIN

747,401

2.5

27,896

(3.8)

8892

4.7

7,429,328

2.1

281,993

(8.1)

85,071

1.6 23.6

BEIRUT, LEBANON

388,771

10.5

6440

8.9

5935

19.9

4,174,602

24.0

59,530

7.0

55,210

3,496,366

11.7

185,868

17.7

24,730

7.1

33,565,105

8.3

1,552,748

2.2

230,285

3.1

KUWAIT

674,889

15.5

17,668

21.5

8443

17.7

6,849,033

12.7

166,012

10.2

81,570

11.2

MUSCAT, OMAN

396,079

19.2

6418

37.7

4995

30.5

3,690,169

10.5

51,864

5.9

44,748

18.4

SHARJAH, UAE

489,453

15.8

37,544

18.4

5611

1.5

4,668,807

5.9

340,930

14.2

53,005

1.3

ACCRA, GHANA

121,268

10.0

3386

(32.9)

1716

5.1

1,153,122

1.1

38,317

(12.5)

16,625

9.1

1,243, 180

(7.5)

23,012

7.5

12, 252

1.4

11,904,349

(1.5)

233,279

1.2

117,288

2.9

695,617

0.0

*****

8014

(4.7)

6,299,141

(5.8)

*****

77,089

(5.1)

DUBAI, UAE

AFRICA CAIRO, EGYPT CAPETOWN, SA CASABLANCA, MOROCCO

561,450

4.2

4232

2.5

6545

10.1

5,271,777

1.1

45,560

(5.9)

59,740

(0.8)

DAR ES SALAAM, TANZ

129,784

1.9

1583

(8.1)

5492

(4.8)

1,168,803

(9.9)

15,616

(20.0)

48,212

(6.9)

1,579,489

(1.7)

25,274

(2.4)

18,059

(4.6)

14,556,615

(6.8)

203,066

(23.5)

168,331

(6.3)

MARRAKECH, MOROCCO

289,053

(0.0)

14.5

2879

5.1

2,480,066

(5.5)

1251

8.6

24,566

(7.9)

SHARM EL SHEIKH, EGYPT

744,174

2.4

*****

5467

(0.1)

6,021,886

(6.5)

*****

45,518

(7.5)

JOHANNESBURG, SA

ASIA PACIFIC BANGKOK, THAILAND

3,668,422

19.4

100,617

1.6

22,330

7.1

32,686,864

(2.8)

837,259

(18.8)

212,217

(1.1)

BEIJING, CHINA

6,003,374

5.7

121,310

2.9

41.987

3.7

54,503,771

18.1

1,151,240

0.1

406,131

15.1

MANILA, PHILIPPINES

1,872,449

2.9

40,033

30.9

18,524

6.4

19,946,526

9.4

285,133

(5.5)

187,881

11.9

MUMBAI, INDIA

2,258,795

23.3

50,890

10.3

20,521

7.2

20,084,735

(2.0)

464,806

(2.2)

199,273

(1.9)

NEW DELHI, INDIA

2,293,936

26.8

42,924

21.4

21,743

12.2

20,441,461

5.3

386,895

1.1

201,750

1.8

SINGAPORE

3,320,887

6.0

156,738

2.0

21,491

7.9

30,006,400

(3.6)

1,353,703

(15.6)

201,578

3.7

SYDNEY, AUSTRALIA

3,113,830

6.2

*****

25,715

(0.0)

27,416,239

(1.1)

*****

241,010

(4.0)

TOKYO, JAPAN

5,514,329

(9.1)

73,487

(2.6)

28,386

(1.3)

51,754,299

(7.5)

626,614

(9.9)

279,542

(1.3)

FRANKFURT, GERMANY

4,626,179

(1.9)

181,687

(0.1)

40,674

(4.4)

43,183,386

(5.7)

1,514,510

(15.2)

388,793

(5.4)

LONDON, UK

5,696,302

1.1

126,646

(0.4)

39,003

(4.7)

45,667,899

(2.0)

1,090,535

(12.8)

391,361

(2.8)

MADRID, SPAIN

4,211,786

3.4

33,689

1.7

37,367

(3.9)

40,837,010

(6.5)

262,426

(12.5)

364,967

(8.7)

MUNICH, GERMANY

3,113,868

0.1

20,926

(9.9)

35,486

(7.9)

27,733,865

(6.5)

187,017

(15.7)

335,898

(8.8)

PARIS, FRANCE

5,067,874

(1.9)

162,500

(7.4)

44,998

(6.3)

49,195,937

(5.4)

1,482,180

(13.5)

444,894

(6.3)

ATLANTA

7,578,697

(1.1)

53,695

(3.1)

82,304

(0.3)

74,121,172

(2.1)

453,673

(18.2)

813,030

(0.7)

CHICAGO

5,675,097

(5.5)

118,827

0.4

71,755

(4.9)

54,366,313

(10.3)

921,477

(20.0)

692,738

(7.6)

DALLAS FORT WORTH

4,759,285

(0.5)

55,148

(4.5)

54,578

(0.5)

46,971,737

(2.5)

507,724

(9.3)

532,063

(3.5)

LOS ANGELES

4,761,632

1.7

144,314

4.2

46,049

(1.7)

47,272,124

(7.1)

1,212,472

(12.9)

453,728

(14.7)

EUROPE

NORTH AMERICA

Passengers = total passengers enplaned and deplaned (transit passengers counted once). Cargo = loaded and unloaded freight & mail. Source = Airports Council International *Growth rate > 200% or < -50% due to extraordinary circumstances, i.e. war, social and political unrest, major sports events, new routes.

February 2010

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AVIATION DATA

EMIRATES SKYCARGO FUEL PRICE INDEX

AIRLINE ONTIME STATISTICS & DELAY CAUSES: NOVEMBER 2009

410

Air carrier delay 3.39%

Ontime 88.59%

Weather delay 0.20%

Diverted 0.14%

08 January

408

20 November

380

27 November

373

25 December

370 350

Index 100 = 53.5 US cents per US gallon 320

Fuel Price Index The fuel index is based on the average price of aviation fuel in ﬁve key spot markets (Rotterdam, Singapore, New York, US Gulf and US West Coast) 290

National aviation system delay 3.91%

Cancelled 0.54%

13 Nov 09

20 Nov 09

27 Nov 09

04 Dec 09

11 Dec 09

18 Dec 09

25 Dec 09

01 Jan 10

08 Jan 10

15 Jan 10

22 Jan 10

260

SOURCE: Bureau of Transportation Statistics (www.transtats.bts.gov)

Planned capacity growth for top 10 carriers between Middle East and Western Europe (OAG Data February 2010 versus February 2009)* WEEKLY CAPACITY

WEEKLY FREQUENCY

Aircraft arriving late 3.23%

Security delay 0.01%

Planned capacity growth for top 10 carriers between Middle East and Asia/Paciﬁc (OAG Data February 2010 versus February 2009)*

WEEKLY SEATS

WEEKLY CAPACITY

AIRLINE

WEEKLY FREQUENCY

Total

Change (%)

Total

Change (%)

821

506

167,460

ETIHAD AIRWAYS

204

192

40,536

EMIRATES

1289

QATAR AIRWAYS

298

280

63800

ETIHAD AIRWAYS

366

-2

13,414

-2

GULF AIR

182

-17

-100

JAZEERA AIRWAYS

ASK Million Change (%)

EMIRATES

IRAN AIR

WEEKLY SEATS

AIRLINE ASK Million Change (%)

AIR ARABIA

129

Total

Change (%)

302

Total

Change (%)

-2

48,924

938

285,108

322

68,860

222

-13

44,857

-18

-100

-100 43

-33

1320

-33

MIDDLE EAST AIRLINES

108

20,366

MAHAN AIR

9240

ROYAL JORDANIAN

134

17,348

OMAN AIR

192

31,300

GULF AIR

-13

-18

18,490

-15

528

460

107,354

MAHAN AIR

100

5460

6608

271

195

65,515

SAUDI ARABIAN AIRLINES

-13

-20

10,338

-17

WEEKLY CAPACITY

WEEKLY FREQUENCY Change (%)

Total

WEEKLY SEATS

Change (%)

Total

Change (%)

10,044

20,326

ETIHAD AIRWAYS

-9

-14

5880

-13

51,680

GULF AIR

-8

5798

-10

10,982

JAZEERA AIRWAYS

9570

246

45,994

MIDDLE EAST AIRLINES

200

100

4982

139

6894

OMAN AIR

35,836

283

41,901

AIR FRANCE

250

38,652

TUNIS AIR

366

BRITISH AIRWAYS

123

LUFTHANSA GERMAN AIRLINES

-27

-11

13,473

-14

TURKISH AIRLINES

106

19,614

Total

204

WEEKLY FREQUENCY

ASK Million Change (%)

EMIRATES

AIR ARABIA MAROC

AIRLINE AIR ARABIA

AIR ALGERIE

KLM-ROYAL DUTCH AIRLINES

SAUDI ARABIAN AIRLINES

WEEKLY CAPACITY

Change (%)

AIGLE AZUR

EGYPT AIR

ROYAL JORDANIAN

WEEKLY SEATS

AIRLINE Total

QATAR AIRWAYS

Planned capacity growth for top 10 carriers between North Africa and Middle East (OAG Data February 2010 versus February 2009)*

Planned capacity growth for top 10 carriers between North Africa and Western Europe (OAG Data February 2010 versus February 2009)*

ASK Million Change (%)

JAZEERA AIRWAYS

168

25,200

2968

QATAR AIRWAYS

19,784

ROYAL JORDANIAN

100

10,888

SAUDI ARABIAN AIRLINES

133

-6

34,447

-3

*Data is for week of 1-7 February, 2010 against 2-8 February, 2009. Regions follow IATA deﬁnition. E-mail: dataservices@oag.com

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February 2010

RECRUITMENT

TO ADVERTISE HERE CONTACT: Fareed Dubery Tel: +971 4 435 6339 Email: fareed.dubery@itp.com

MOVERS & SHAKERS New faces at Etihad Airways N F Four new members have joined the Etih had Airways team recently. Hareb Al Muh hairy (pictured left) has been appointed as v vice president, corporate communications, V Vijay Poonoosamy (below right) has taken u up the position of vice president, intern national and public affairs, Kumar De Silva joins as the airline’s airl g for Sri Lanka and country manager Maldives, and Roberto ‘Bobby’ Hukom (below left) joins as country manager for the Philippines. Al Muhairy joined Etihad’s corporate affairs department in April 2009 and has been responsible for planning and implementing the media strategy for the airline in the Middle East. Poonoosamy’s overall responsibilities include establishing the aairline’s standing on the international aarena, while De Silva, a Sri Lankan nattional, will be based in Colombo to reeestablish the airline’s office and oversee it its operations in Sri Lanka and the Mald dives. Meanwhile, Hukom replaces Juan T Torres and will be based in Manila. P Previously, he was commercial manager ffor the Philippines for Gulf Air.

Royal Jet hires ﬁnancial specialist R R Richard Roth has joined luxury aviattion operator, Royal Jet as chief fin nancial officer. Roth, a finance expert aand industry veteran has worked in a n number of financial positions in both IICI and Guinness, and was a member oof easyJet’s executive management tteam. Through his own consultancy firm, fi rm, Consulting 4 Aviat Aviation he has worked with MaxJet, SpiceJet and NAS, amongst others.

Vistajet forms advisory board Vistajet has formed an advisory board, which will be led by its new chairman Robert Hersov. As an entrepreneur (he formed Marquis Jet Europe), Hersov has experience in both the private avia-tion market and in the luxury goods business. and Hersov’s family established one of South Africa’s biggest industrial and mining empires. Not ert Murdoch at News only that, he worked directly with Rupert Corporation in New York and with Johann Rupert as an executive director at Richemont. The VistaJet advisory board will be comprised of members drawn from a broad spectrum of interests and across the geographies where VistaJet both currently operates and is seeking to expand.

Amadeus makes key appointments Amadeus, a provider of technology to the travel and tourism industry, has announced that its president & CEO David Jones will be succeeded in January 2011 by present deputy CEO and former CFO Luis Maroto. Ana de Pro will replace Maroto as the company’s new CFO. Prior to joining Amadeus, de Pro held senior management positions at Arthur Andersen, Metrovacesa and Sacyr Vallehermoso. In addition, Sabine Hansen Peck has been appointed vice president, Human Resources, responsible for group HR worldwide. Sabine joins Amadeus from Citigroup where she was head of Human Resources, Europe, Middle East & Africa for the Global Consumer Group.

O Oman Air moves ahead w with Omanisation O Oman Air has appointed Sheikh A Ahmed Himyar Al Nabhani as chief oofficer support services. This move fforms part of Oman Air’s commitment on its Omanisation programme m oof senior positions. Sheikh Al Nabhani Nabhani has been with Oman h Air for the past 15 years and has worked his way up through the HR department.

Please email your ‘movers and shakers’ information to sarah.cowell@itp.com P February 2010 010 0

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RECRUITMENT CLASSI FIEDS

TO ADVERTISE HERE CONTACT: Jeremy Bladon Tel: +971 4 435 6241 Email: jeremy.bladon@itp.com

DIMOCORP. MIDDLE EAST LLC BIN HILAL ENTERPRISES

Commercial - Corporate - Military Providing worldwide aviation logistic support

Large inventory of Boeing and Airbus parts and components at our Abu Dhabi warehouse, ready to be shipped immediately. New - Overhauled - Repaired

P.O. BOX 7349, ABU DHABI, UAE TEL: +971 02 633 3728 / FAX: +971 02 621 4043

WWW.DIMO.COM

IF YOU WOULD LIKE TO ADVERTISE IN THIS SECTION PLEASE CONTACT:

NICK LOWE SALES MANAGER, AVIATION BUSINESS

DIRECT: +971 4 435 6364 EMAIL: nick.lowe@itp.com

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February 2010

01 1 02 2 03 3 04 EVENTS CALENDAR 06 07 08 09 11 12 133 14 16 177 18 1 21 22 223 24 26 27 28 29 48

EVENTS LISTING

05 10 15

A listing of trade shows, conferences and seminars relating to the Middle East aviation industry 2  4 FEBRUARY 2010

2  7 FEBRUARY 2010

9  10 FEBRUARY 2010

Middle East Exclusive

Singapore Airshow

The only duty free travel retail and luxury goods exhibition in the greater Middle East region is fast approaching. It is recognised as being a valuable forum for forging existing and new business partnerships, and sourcing the latest premier goods and ranges for travel retailers and luxury goods providers. The organiser promises new companies and suppliers will be participating this year as the Middle East remains one of the few bright spots in growth for the luxury retail sector.

The Singapore Airshow is Asia’s largest aerospace and defence event, as well as one of the top three air shows in the world. In previous years, the event has attracted such names as ST Engineering, BAE Systems, Boeing, Lockheed Martin and Rolls Royce International. The 2008 Singapore Airshow sealed more than US$13.4 billion worth of trade deals and attracted 30,000 trade visitors, and, impressively, more than 90,000 public visitors.

Business Travel & Meetings Show

VENUE: Dubai EMAIL: channels@channelexhibitions.com WEBSITE: www.middleeastexclusive.com

VENUE: Singapore EMAIL: dannysoong@singaporeairshow.com.sg WEBSITE: www.singaporeairshow.com

24  25 FEBRUARY 2010

28 FEBRUARY  1 MARCH 2010

Indian Business Aviation Expo

Aircraft Interiors Middle East

MIU Events, in association with local partners, is launching the first dedicated business aviation event for the Indian market. The event will provide participants with a detailed insight into how business aviation in India is likely to develop and how to fully understand the characteristics and needs of this vast market. It will be the role of the Indian Business Aviation Expo 2010 (IBAE) to set the agenda for the business aviation market and to provide and agree best practice.

Brought to you by the organiser of the Dubai Airshow, F&E Aerospace is holding its second Aircraft Interiors Middle East (AIME) event in Dubai. Located at the city’s Airport Expo, the two-day conference and exhibition is of use to operators seeking the ultimate in aircraft refinement, connectivity and efficiency, and gives suppliers direct access to airline decision-makers. The event will be co-located with MRO Middle East - F&E’s maintenance, MRO Middle East repair and overhaul event.

VENUE: New Delhi EMAIL: admin@miuevents.com WEBSITE: www.miuevents.com/ibae-10

VENUE: Dubai EMAIL: p.damgaard@fairs-exhibs.com WEBSITE: www.aime.aero

28 FEBRUARY  1 MARCH 2010

3  4 MARCH

23  25 MARCH 2010

MRO Middle East

Aerospace & Defence Training Show

Passenger Terminal Expo

The MRO Middle East conference and exhibition is designed to offer the newest and most innovative concepts and best practices, while encouraging the advancement of the airline and aircraft maintenance repair and overhaul industries in the Middle East. Speakers will address the current and future forecast for this market, cost and staffing issues, supply chain trends, and a wide variety of other concerns. Opening remarks will be delivered by HH Sheikh Ahmed bin Saeed Al Maktoum.

VENUE: Dubai EMAIL: Via website WEBSITE: www.aviationweek.com February 2010

Online visitor registration has opened for this London-based event and it could save you the standard entry fee of GBP30 (US$60) if you are quick to sign up. The website and the show have been revamped and updated in line with the show’s rebranding to incorporate more MICE content. It is billed as Europe’s leading travel and meetings event, and could be well worth a visit if you are involved in the corporate/business jet and premium travel sector.

VENUE: London EMAIL: charlotte@bastion.co.uk WEBSITE: www.businesstravelshow.co.uk

FEBRUARY begins in Dubai

25 30

Middle East Aerospace and Defence event organisers F&E Aerospace have teamed with specialist simulation and training providers Halldale Media to produce the ADTS event, which takes place in March. ADTS will feature an exhibition of the latest training and simulation offerings for regional airlines and air forces and will incorporate two simultaneous conferences. The event is supported by some key industry players including, Emirates and the AACO.

The global event for 2010 will be held in Brussels, Belgium and will bring together more than 200 suppliers for airport and airline teams to meet. The conference agenda will include more than 200 speakers to discuss a number of subjects including terminal design; management and planning; baggage handling; security; border control and check-in, amongst others. As usual, networking events will include one-toone meeting opportunities, dinners and cocktail evenings.

VENUE: Dubai EMAIL: p.damgaard@fairs-exhibs.com WEBSITE: www.adts.aero

VENUE: Brussels EMAIL: s.greenwood@ukipme.com WEBSITE: www.passengerterminal-expo.com

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"Please visit us at Booth No 332, MRO Middle East 2010, Dubai from Feb 28th - March 1st 2010"