Aviation Business - May 2010 by ITP Business Publishing

THE MAGAZINE FOR R AVIATION EXECUTIVES IN THE MIDDLE EAST | MA MAY AY 20 2 2010 010 10

Global Airport rport 009 Review 2009 A look at the top op performers in e each ach region last yearr

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Airport Construction tion

READY FOR LIFT-OFF Dubai World Central gets ready to launch its airport cargo operations with a bang

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CONTENTS

MAY 2010 VOLUME 09 ISSUE 05

14 READY FOR LIFTOFF Dubai World Central is getting ready to launch its airport cargo operations in June, but the lead-up to the anticipated launch date has not been without its challenges. Issues with construction have got the rumour-mill buzzing, so we talk to DWC vice president for cargo and logistics Andrew Walsh to find out if the world’s largest airport is ready to receive its first cargo customers and ask, ‘is the vision behind the US$33 billion airport project finally being realised?’

07 REGIONAL NEWS IATA hits back at the ‘lack of leadership’ from European governments over handling of the air travel chaos caused by Iceland’s volcano. Etihad continues its aggressive entry into the Iraqi market proving that the country’s ﬂagship carrier must do more to garner its market share. ﬂydubai and Oman Air expand their networks and Gulf Air’s CEO explains how mass job cuts have helped the airline get promising results.

32 ASK THE EXPERT Asscom managing director Peter Wiggers asks ‘How can regional airlines get the best from MRO services?’

38 MOVERS & SHAKERS Oman Air makes a number of changes to its management team. ADAC anounces its new CEO. Etihad hires an assistant head of hub and Gulf Aviation Academy plants a new CEO in Bahrain. www.arabiansupplychain.com

18 GLOBAL AIRPORT REVIEW Following a turbulent couple of years from the global recession, airports are ﬁnally experiencing an upward swing with their passenger and cargo volumes. Progress is slow but as you will see, it is heading in the right direction. We break down the ﬁgures from the Airports Council International (ACI) to take a look at the top performers in each region for 2009.

27 TOP AVIATION PROJECTS The GCC’s aviation sector has undergone rapid transformation over the last decade. Recognising that establishment of an aviation hub is a strong tool for economic development, GCC countries are investing billions in airport construction. Here, we look at the key projects underway, analysing their construction blueprints and the progress made to date. May 2010

EDITOR’S LETTER Can airlines survive the latest disaster?

he last couple of years have certainly been a period of highs and lows as the successes - and excesses - that the aviation industry saw in 2008 came crashing down just 12 months later. As the industry attempted to put one of the worst performing years on history behind it, 2010 began with renewed confidence; until, that was, a volcano in Iceland erupted. The latest meteorological events caused by the volcanic eruption near the Eyjafjallajoekull glacier during the last couple of weeks have threatened to devastate an already fragile industry. Airlines across the globe were forced to cancel hundreds of flights and ground fleets at a cost amounting to some US$200 million says the airlines’ representative, IATA. It has expressed concern that European governments have lacked leadership when making decisions on closing down airspace, and its director general and CEO Giovanni Bisignani has said that current risk assessment strategies are inadequate

to cope with the scale of the situation. What is clear is that business is counting the cost of the shutdown. The impact on the airline industry is said to have amounted to more than the aftermath of the September 11 terrorist attacks. Whether or not airlines can survive this unforeseen chaos remains to be seen, but insurance companies have said that they are not obliged to offer any payouts to airlines (business interruption policies usually depend on damage being done to planes or airports). Therefore it is left to the airlines to seek compensation from European governments, but judging the way the situation has been handled thus far, some would argue that the financial eruption could rumble on for some time to come.

May 2010

ITP Business Publishing CEO Walid Akawi Managing Director Neil Davies Managing Director ITP Business Karam Awad Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery Commercial Director Diarmuid Omalley Editorial Editor Sarah Cowell Tel: +971 4 2108598 email:sarah.cowell@itp.com Advertising Commercial Director Diarmuid Omalley Tel: +971 4 2108568 email: diarmuid.omalley@itp.com Sales Manager Nick Lowe Tel: +971 4 2108306 email: nick.lowe@itp.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, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav, George Dipin Production & Distribution Group Production Manager Kyle Smith Deputy Production Manager Matthew Grant 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 Marketing Head of Marketing Daniel Fewtrell ITP Digital Director Peter Conmy

Sarah Cowell, Editor sarah.cowell@itp.com

The only way is up ... but it’s a long road, says IBA commercial director Owen Geach Consulting bureau, IBA joined industry colleagues from across the globe to discuss the current state of the aviation mar market at the Gen Geneva Conference last week. But the rea question on real eve everyone’s minds – aaside from the Ice Icelandic volcano –w was what the fu future might hold an how long it and w be before will th market the s stabilises? IBA c commercial d director Owen

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

Geach and senior analyst Alice Gondry hold the view that the industry downturn has now hit rock bottom and that signs of recovery can be seen, although it will be some time yet before values return to base rates, let alone the heady heights of 2007. Key highlights from IBA’s sessions include the following: • Aircraft values have declined across the board. • Most aircraft market values have dropped 10-20% from base values. • Some poor performing aircraft like the MD80 have seen market values dropped 40% from base alone. For a copy of IBA’s full market presentation, please contact Owen Geach on owen.geach@ibagroup.com

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 4 210 8000 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Mazar 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 of fair review.

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READERS LETTERS

READER’S LETTERS Got an opinion? Have your say at... Gulf airlines service ‘generation behind’ Cathay I have to agree with Tyler about Cathay culture building. I have travelled only once with a Gulf carrier and, may I say, the service is not exactly what the airlines claim to offer. It may have excellent condition planes with great in-flight entertainment, but what is the use if the crew can’t even treat the passenger’s right. As a child I remember travelling on Cathay and travelling after many years back on Cathay, nothing seems different with the crew members; they are charming and helpful as ever. Yes there has been improvement over time with plane quality and in-flight services etc. I will always prefer Cathay. Roshan, Dubai

Top 10 Low Cost Airlines Serving The Middle East I always appreciate reports on the grading of airlines to give confidence in our recommendation to passengers, especially in area which both passsenger and travel agents are not familiar with. I hope your report is truthful and not based on how much advertising dollars the media can derive from the carriers. I hope Felix Airways was on the list and not totally left out to be considered. Ronnie Phua, Singapore

Etihad plane refused entry into Chinese airspace EY was technically the first to fly to Tokyo on the 27th.EK flew on the 28th. But EK has been flying to Osaka for many years already and also had NGO flights, so it doesn’t matter anyway. MhuyheN, UAE

Bahrain airport closed following DHL engine blast If in fact it was a bird, as reported, the age of the aircraft is immaterial. As to aging aircraft themselves, with

May 2010

proper, albeit increasingly expensive maintenance, the lifecycle of an aircraft is virtually indefinite. There are DC-3’s still operating. These are pre-World War II aircraft. John Grehan, Midland, USA

Is Royal Jordanian underestimated in the Mideast? I worked for Royal Jordanian for almost 14 years, and witnessed the great progress Royal Jordanian embarked on. RJ may be not as big as Emirates or Etihad but you can be sure the service and the professionalism of RJ on the world aviation arena is something any one can be proud of. I wish RJ all the best and look forward, Enshallah, that RJ will not only be competing with these ‘mega airlines’ but gaining further grounds beyond. My family and I will always be very proud of RJ and its staff. Edmond J Philippi, Clarksville, USA

Oman Air hires female executive as country manager It’s good to see females competing in all professions including aviation. Very challenging as well as exciting, as you are excelling your individual capabilities in very specialised fields of aviation industry. The important factor is to assess how you optimise your airlines operations and market share, while providing quality product and service which is more pertinent in a very competitive environment. I personally follow and keep my self abreast with the aviation industry being a part of this fraternity. Good luck. Asif Ahmed, Karachi

Time to sack striking BA staﬀ There are many more issues at stake than a desire to be a law unto themselves. Well done Anil for taking the time out to have coffee with the maids in Dubai. I bet they wished they hadn’t wasted their time when no doubt he left them holding the bill! As a matter of interest I find BA cabin crew as good as most in the air and more professional than most. Disturbed of Dubai, UAE

ﬂydubai Turns Up The Heat Liberalisation has very positive impact and results. The fact is, all the LCCs are making a place in the market, obviously they are targeting a specific market and giving a choice to the customers. The neighboring countries in the region esspecially Pakistan should learn from Dubai. Asif Ahmed, Karachi

EgyptAir plane strikes lightpoles at Cairo airport Is Captain Hefni serious about his initial assessment? The facts of two light-poles and minor damage to the left wing of the aircraft do not make sense together. The claim that the passengers of the doomed Egypt Air flight were mostly Egyptians is highly disputed as the number of Egyptians traveling from Cairo to Hurghada can not reach 190 passengers in one flight. Ahmed Sultan

Royal Jordanian plane damaged As one of the people that was on board of this plane, I can say that people WERE hurt, there was more then minor damages and the service was terrible, no one told us what is going on, no compensation provided. Diana

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REGIONAL NEWS

IATA erupts over authorities handling of volcano crisis ‘Lack of leadership’ from European governments is to blame for volcanic ash cloud air chaos, says IATA LEAD STORY

The International Air Transport Association (IATA) has sharply criticised European governments for their lack of leadership in handling airspace restrictions in light of the Icelandic volcano eruption and urged a re-think of the decision-making process. Air travel chaos ensued when a massive plume of volcanic ash filled Europe’s skies on April 15. The situation appeared to be improving five days later but travellers’ hopes were soon dashed as a new eruption of the volcano occurred on April 20. During the crisis IATA director general and CEO Giovanni Bisignani, said: “We are far enough into this crisis to express our dissatisfaction on how governments have managed it—with no risk assessment, no consultation, no coordination, and no leadership. This crisis is costing airlines at least US$200 million a day in lost revenues and the European economy is suffering billions of dollars in lost business. “Governments must place greater urgency and focus on how and when we can safely re-open Europe’s skies. This means decisions based on risk-management, facts and utilising operational procedures that maintain safety,” said Bisignani. IATA criticised Europe’s unique methodology of closing The crisis – which began on April 15 and lasted for six days – cost airlines at least US$200 million a day in lost revenues. Emirates grounded 20% of its ﬂeet, which cost the airline somewhere in the region of US$10 million a day.

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airspace based on theoretical modeling of the ash cloud. “This means that governments have not taken their responsibility to make clear decisions based on facts. Instead, it has been the air navigation service providers who announced that they would not provide service. And these decisions have been taken without adequately consulting the airlines. This is not an acceptable system particularly when the consequences for safety and the economy are so large.” Bisignani went on to say that airlines had reported missed opportunities to fly due to the European system which results in blanket closures of airspace. “I challenge governments to agree on ways to flexibly re-open airspace. Risk assessments should be able to help us re-open certain corridors, if not entire airspaces.” Not only that, the natural disaster - which forced the European authorities to begin closing down European airspace on April 15 – has had a severe affect on all Middle East airlines. On the fifth day of cancellations (April 19) - at the height of the airspace closures - some 20% of Emirates’ fleet - or 30 aircraft - remained on the ground. The disruption has cost the airline somewhere in the region of $10 million a day as Emirates continued to provide hotel accommodation in Dubai for thousands of passengers who were in transit when the disruption began. As the crisis came to an end on April 21, more than 250 Emirates’ flights had been cancelled and more than 80,000 passengers had been impacted by the ongoing disruption. Speaking

We have seen volcanic activity in many parts of the world but rarely has it resulted in airspace closures—and never at this scale IATA director general & CEO Giovanni Bisignani

at the time, Emirates said: “It’s important to understand that this is a complex situation involving tens of thousands of people and becomes more complicated as the days go by. We appreciate how difficult it is for everyone affected.” Abu Dhabi-based Etihad Airways also said its services to the UK, Ireland and some European destinations had been cancelled, while other Gulf-based airlines had also been impacted by the saga. Bahrain’s Gulf Air handed out free tickets to stranded passengers as a gesture of goodwill, while Oman Air confirmed at the time that its flights to the UK, France, and Germany had been cancelled since April 15, after the air traffic control authorities in each of those countries closed their airspace. “We are closely monitoring the situation and hope to be returning to normal conditions as soon as possible,” stated an Oman Air spokesperson on April 19.

But some carriers refused to sit tight and to assist governments in assessing risk, airlines such as Lufthansa and KLM conducted successful test flights in several European countries. IATA said the results had not shown any irregularities or safety issues and added that the scale of airspace closures currently seen in Europe was unprecedented. “We have seen volcanic activity in many parts of the world but rarely has it resulted in airspace closures—and never at this scale. When Mount St. Helens erupted in the US in 1980, we did not see large scale disruptions, because the decisions to open or close airspace were risk managed with no compromise on safety.” The IATA director general called for an urgent meeting of the International Civil Aviation Organisation (ICAO), the specialised agency of the UN, to define government responsibility for the decisions to open or close airspace in a coordi-

May 2010

REGIONAL NEWS

Oman Air adds RAK to network

Etihad puts the squeeze on Iraqi Airways NETWORK

Oman Air chief executive Peter Hill

Oman Air will begin flights to Ras Al Khaimah on May 2. A daily service will operate between Muscat and the emirate. It is the third destination in the UAE for Oman Air, the other two being Dubai and Abu Dhabi. Oman Air CEO Peter Hill, said: “Ras Al Khaimah is the fourth largest emirate in the UAE in terms of area and population and is a growing leisure destination. “Oman Air’s foray into this new destination is sure to open a new market both for inbound and outbound travellers.” The new route will be operated by Oman Air’s ATR aircrafts.

Etihad Airways has begun to operate flights from Abu Dhabi to Baghdad, becoming the first airline in the UAE to fly to Iraq. The carrier will operate five return services per week to Baghdad, operated by twoclass Airbus A320 aircraft, and will expand its operation with two additional A320 return services to a second Iraq destination – Erbil – from June 1, subject to government and regulatory approvals. But analysts have commented that this could spell trouble for the country’s flag carrier as it continues to struggle with ongoing security concerns. “Iraqi Airways orders for Boeing 737s and 787s will be rendered useless if security cannot be stepped up and improved throughout the country,” FBE Aerospace analyst Saj Ahmad said. “Ravaged by ongoing political uncertainty and sectarian violence – Iraqi Airways represents the country on an

Flagship carrier, Iraqi Airways continues to struggle with ongoing security concerns

international stage, and with many European and Arab carriers looking to re-enter the Iraqi market, there is a risk that the flag carrier could be left on the sidelines in providing air services to millions of people. “With a dysfunctional and disillusioned political apparatus currently moving nowhere fast, the Government is in no position to either bail out or sustain such a niche entity.”

Etihad Airways is pursuing an aggressive line of entry into Iraq. The carrier launched a cargo operation to Baghdad in September 2009, and has recently commenced additional cargo flights to Erbil, which are expected to perform well. During April, Germany’s largest carrier, Lufthansa also launched services from Frankfurt to the city of Erbil in Northern Iraq, flying four times a week.

ﬂydubai announces new routes for May 2010 NETWORK

ﬂydubai will begin flights to Kabul in Afghanistan and the ancient Egyptian city of Luxor. Services will start on May 17 and May 19 respectively. Flights to the Afghan capital will start from AED 725 and will be five times per week, whereas flights to Luxor will be priced at AED 350 and will be thrice weekly. The news comes just one week after the low-cost airline announced new route destinations Assiut in Egypt and Istanbul in Turkey. flydubai CEO Ghaith Al Ghaith, said: “It is great to be May 2010

able to announce another two routes today. This brings our network to 17 destinations and continues our commitment to make travel a little less complex, a little less stressful and a little less expensive and ensure more people travel to more destinations more often. “Again these routes are a combination of the two different types of destinations we were set up to serve – those which have very few direct links to the UAE and those which are already popular routes but would benefit from having an additional lowcost option.”

ﬂydubai CEO Ghaith Al Ghaith has taken the carrier’s network to 17 destinations www.arabiansupplychain.com

REGIONAL NEWS

300 job cuts at Gulf Air in one year STRATEGY

Gulf Air has made 300 staff cutbacks during the past 12 months, its CEO confirmed in April. In a statement, detailing the Bahrain carrier’s performance growth figures for 2009, Samer Majali, said: “We are conscious of the financial impact due to the total number of employees we have on our roll. We have started optimising on this front and as a result, we have now around 300 less staff in our strength than last year.” The cutbacks have been achieved by a strict contractrenewal criteria, a freeze in recruitment except critical positions, and natural attritions such as resignations and retirements, Majali said. As a result, Gulf Air’s figures for 2009 have shown that

its performance is improving. Despite the economic downturn Gulf Air carried around 5.7 million passengers in 2009, which is slightly more than the number of passengers carried in 2008. The Revenue Passenger Kilometres (RPK) also showed a better performance by registering a 2.1% growth. The overall flight punctuality reached 82.5% during the year registering an increase of 12.5% over 2008. Technical Dispatch Reliability reached 98.1%, well above the industry norms. Figures for January and February 2010 have also shown ongoing improvements. The airline has made an overall cost-saving of 12.3%. The seat factor registered a growth of 4.1% for the two months when compared to the same

Gulf Air CEO Samer Majali has maintained a strict recruitment policy to save money

period last year and Technical Dispatch Reliability for two months reached 98.8%.

The airline has flown 870,000 passengers in these two months.

Abu Dhabi named ‘Most Improved’ BUSINESS

Abu Dhabi International Airport has been named the world’s ‘Most Improved Airport’ for 2009/2010 by Skytrax. The title was awarded based on the votes of more than 9.8 million travellers from 100 different countries. Moving up to become the world’s number 26 airport – a jump of 47 places from the previous year – the success has largely been credited to the multi-billion dollar programme of

Abu Dhabi airport’s new Terminal 3 www.arabiansupplychain.com

investments being placed in the airport, including the Terminal 3 launched in Q1, 2009, and the focus in delivering high quality services to passengers. “This is a fantastic endorsement of the hard work of management and staff,” said ADAC chairman HE Khalifa Al Mazrouei, the operator of Abu Dhabi International Airport. “In the last year, ADAC has introduced a new terminal, new parking facilities, free wi-fi and use of new technologies, as well as a unique travel retail and F&B offering, and a comprehensive service quality training programme for our staff. Through these and other initiatives, we are creating exciting new facilities and offer award-wining services to all air travellers through Abu Dhabi International.”

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REGIONAL NEWS

Chapman eyes volcano crisis backlog BUSINESS

Chapman Freeborn is preparing to cash in on the air travel chaos created by the Icelandic volcano, reporting that it has seen an eruption in demand for charters since the natural disaster began. “There is suddenly a large number of charter requests to destinations where there is normally ample scheduled capacity – for example flights from Europe to US hubs like New York and Chicago,” it said in a statement on April 20. “Forwarders have been requesting flights using airports anywhere in mainland Europe (e.g. Spain, Bulgaria etc), even if it means trucking freight far longer distances than would usually be considered.”

In terms of the types of freight, Chapman Freeborn said it was seeing requests for pretty much everything - general cargo, automotive cargo, oil and gas pieces and perishables. “There is going to be a huge backlog and high demand for charters even when airspace reopens - including freight like perishables and other time-sensitive cargo,” the statement continued. “However, freighter aircraft availability is going to be a major issue. There was limited capacity prior to these events, so clearing the backlog quickly is going to be a challenge for the industry.” In other news, Chapman Freeborn has entered an exclu-

Lufthansa Cargo successfully pilots Radio Frequency ID system Lufthansa Cargo and Mojix has successfully completed a pilot deployment of the MOJIX STAR passive Real Time Location System (RTLS). The RFID installation at the Lufthansa Cargo Centre in Frankfurt, Germany is the largest scale pilot application of passive RFID to date in the air cargo industry. Lufthansa is testing the innovative technology to locate single cargo shipments, pallets and containers on a realtime basis enabling better control of loading and shipping processes, sustained improvement in efficiency and quality of processes, and reduced costs.

May 2010

After extensive tests and simulations, Lufthansa Cargo will apply this new solution in a set of real processes, to be followed by a fully deployed pilot installation integrated into all real processes of Lufthansa Cargo in Frankfurt. “Lufthansa Cargo proves again its leadership in deploying innovative technologies,” said Lufthansa Cargo board member operation Karl-Heinz Köpfle. “Our target is to integrate the RFID technology into our handling processes to increase the reliability of loading and transport processes.” The tracking of air cargo processes in real-time in large facilities is a competitive advantage for Lufthansa Cargo, Köpfle added. “We want to pass these new improvements and benefits of automated RFID based data exchange on to our customers in the near future.”

Chapman Freeborn says its charter business has jumped during the last two weeks

sive block space agreement with Safi Airways in Europe. Safi, a privately owned Afghan airline, has expanded its service to five flights a week from Frankfurt to Kabul.

Through the agreement with Chapman Freeborn, cargo customers can send kilo shipments on the only regular direct service from Europe to the Afghan capital.

Mubadala hones UAE Nationals’ technical skills STRATEGY

Mubadala Aerospace, a business unit of the Mubadala Development Company, has partnered with the Institute of Applied Technology (IAT) to provide UAE Nationals with specialist training programmes to develop them for a career in Abu Dhabi’s growing aerospace industry. The first batch of students have now begun their training at the Al-Ain International Aviation Academy. The training programmes, which cover both technical and vocational fields for men and women, have been designed for Mubadala Aerospace’s STRATA facility; a state-of-the-art composites facility which will produce composite aerostructure components for existing aircraft such as the Airbus A380 and the next generation of aircrafts.

A family day at STRATA on April 15, 2010

The courses will provide professional training for UAE Nationals to prepare them for careers as aircraft engineers, technicians and other specialist roles. “Through our partnership with IAT, we are committed to developing a highly skilled national workforce that will lead the growth of a world class aerospace industry. It is one of the most exciting career opportunities in the UAE and we encourage all nationals to consider a future in this field,” said Mubadala Aerospace executive director Homaid Al Shemmari. www.arabiansupplychain.com

REGIONAL NEWS

Royal Jet and Al Habtoor sign deal FLEET

Royal Jet has penned an aircraft management agreement with UAE-based business conglomerate Al Habtoor Group. The luxury flight services company will manage the day to day running of Al Habtoor’s

Embraer Lineage 1000 aircraft, for which Royal Jet oversaw the company’s purchase of the plane, prepared the technical specifications and conducted the associated financial, commercial and technical reviews.

Royal Jet CEO Shane O’Hare and Mohammed Al Habtoor agree the deal’s terms

“In 2008, Royal Jet acted as consultants on the purchase of our aircraft and negotiated the deal with us,” said Mohammed Al Habtoor. “Throughout the build, Royal Jet project management team, led by Nizar Jazzar, vice president aircraft project engineering and business development has also supervised production and consulted with the manufacturer, interior design and engineering teams. “As such, we are delighted that Royal Jet will manage the aircraft as well.” The Lineage 1000 advanced business jet can seat up to 19 passengers, with a range of 4400 nautical miles. The 84 ft (25.7 m) luxury interior divides

into five separate zones which include a bedroom and shower. Royal Jet CEO Shane O’Hare added: “We are now able to offer guests the full range of aircraft capacity and prices right through from our Lear Jet 60 with six passengers to the largest fleet in the world of Boeing Business Jets. This enables our guests to manage their needs around the right capacity and price points for their requirements.. This arrangement brings together two of the most established UAE companies and we take great pride in the fact that Al Habtoor are continuing to work with us.” Delivery of Al Habtoor’s Embraer is scheduled for August 1.

Yemenia’s online Bayanat Airports expands UAE services booking goes live Yemen Airways (Yemenia) has launched its online booking service to passengers. The airline has chosen to use the E-Commerce Platform from IT specialist, SITA. Yemen Airways chairman Captain Abdulkhalik Alkadi, said: “Being able to provide self-service booking to our passengers is great progress. “It will bypass the traditional system and make the booking process easier, as well as saving us significant costs,” he added.

SITA’s E-Commerce Platform in use www.arabiansupplychain.com

BUSINESS

Airport systems integration provider, Bayanat Airports Engineering & Supplies (BAES) has been awarded the project to design, supply and install a Navigation Aid system (Instrument Landing System) for Al Bateen Executive Airport by the Supervision Committee for the expansion of the Abu Dhabi International Airport (SCADIA). Bayanat Airports will design, supply and install the Instrument Landing System (ILS), Distance Measuring Equipment (DME) along with fibre optics backbone, appropriate shelters and flight calibrations for successful ICAO CAT I certification at Al Bateen Executive Airport. During previous contracts, the company has supplied, installed and commissioned the Legal Voice and Radar Recording and Replaying systems at Al Bateen Executive

airport and the Wind Direction Indicator and Precision Approach Path Indicator (PAPI) System at the Sir Bani Yas Island Airport. “Bayanat Airports has a great track record having successfully executed a large number of airport projects in the UAE and the Middle East region,” said SCADIA systems design manager Talal Al Jouhi. “Having worked with Bayanat on a number of our projects, we have seen their capabilities and achievements demonstrated at Abu Dhabi International Airport and have offered us the best solution in installing communication and navigation systems at our new projects, Sir Bani Yas Island Airport and Al Bateen Executive Airport.” Bayanat Airports general manager Alain Bourjeily added: “This further strengthens our presence in this territory as we expand our works into

Bayanat Airports GM Alain Bourjeily

other regional airports, which ADAC has recently been appointed to manage. These projects were of very high importance to us as we were able to prove our added values as airport system integrator for the various technology fields.” Prior to completing these projects, Bayanat Airports had also participated in the recently inaugurated Air Traffic Control Centre, ‘The Sheikh Zayed Centre’, operated by the General Civil Aviation Authority for the control and regulation of civil aviation in the UAE. May 2010

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UAE air traﬃc movements up 12% in ﬁrst quarter

he UAE saw a 12% growth in total air movements during the first quarter of 2010, the General Civil Aviation Authority (GCAA) said in April. Total air movements in the first three months of the year were 153,000 compared to 137,000 during the same period last year, the authority said in a statement. Average daily air traffic movements in March were 1734, which represents an increase of 12.5% when compared to the 1,542 air traffic movements in the same period last year.

GCAA’s monthly report for March also showed that total UAE air traffic movements were 53,750 an increase of almost 12.5% when compared to March 2009. Flights from Dubai made up almost 46% of total UAE air traffic movements last month. Through flights were second with 11,535 flights, and Abu Dhabi ranked third. GCAA director general Saif Mohammad Al Suwaidi, said: “The figures highlight the success of the UAE in maintaining a high level of stability amid the current conditions.”

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DUBAI WORLD CENTRAL

Ready for Lift-Oﬀ Dubai World Central ral gets ready to launch its airport cargo operations with a bang

hen Dubai announces that it iss building the world’s largestt airport at its new super-hub ubai World Central (DWC), Dubai the world stands up and pays ation. However, even super-hubs tention. are not completely invincible to delayss caused by a global economic ion. Over a year later than exrecession. pected,, Al Maktoum International ulfil its promise of becoming Airport is now back on track to fulfi the world’s largest passenger and cargo hub with its first section, cargo operations, due to startt from June 27. on airport has always been The vision for the US$33 billion hugely ambitious. Even withoutt a global economic slowdented super-hub project, down on the cards, the unprecedented Dubai World Central, in which the airport is based, was always going to be a monster to manage. The chairman of n, His Highness Sheikh Dubai Aviation City Corporation, Ahmed bin Saeed Al Maktoum himself boldly promised ial, trade and transportaan “unparalleled global commercial, ed multi-modal logistics tion hub with a unique integrated platform….which will change all known air, land and sea transportation parameters”. As part of the team responsiblee for the development ionary development, of the new airport in this revolutionary Andrew Walsh, vice president forr cargo and logistics y asserts that the airat Dubai World Central, defiantly port has in fact made remarkable progress considering the financial climate. on in 2005/2006 and “The airport started construction there was speculation of opening in 2008. But for such ays just unrealistic,” a large development that was always oject of that size, it he argues. “Inevitably with a project

May 2010

Andrew Walsh, vice president for cargo and logistics, Dubai World Central

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DUBAI WORLD CENTRAL

has had some issues with the construction which has led us to say that the middle of 2010 is the right date to open.” Walsh himself has only been involved in the project for 18 months, but has had the satisfaction of seeing the airport become a reality. “This is such an exciting opportunity for Dubai,” he enthuses. “I have been involved in making sure that the new airport is fit for purpose and that it suits our needs as the airport operator.” With the new addition of the cargo and logistics remit under his belt, Walsh’s job has certainly not been an easy one. Meeting such huge expectations from the start, the airport has indeed done well to reduce its delays and start operations. Considering the long-term planning and future development of the project, this setback is unsurprisingly not one Walsh wishes to stagnate upon. Afterall, once fully completed, the new airport will have five runways, four passenger terminals with a potential capacity to accommodate a staggering 160 million arrivals a year and 18 cargo terminals with a capacity of a whopping 600,000 tonnes. Whilst the airport will start with a moderate, at least by its own standards, cargo capacity of 250,000 tonnes a year, the facilities are geared up to handle much more. “The cargo terminal building has been designed for a maximum of 600,000 tonnes per annum,” says Walsh. “ We haven’t yet fitted the entire building out with all the equipment we need to get up to this level but that is part of our phasing process – to increase capacity as demand increases.” Walsh is confident that the demand for cargo will continue to increase and that Al Maktoum International’s ability to offer a cargo capacity unparalleled in the rest of the world will give it an advantage over other super-hubs. Dubai’s own impressive cargo traffic record supports this further. A new report by the Airports Council International (ACI) places Dubai International

The Cargo Terminal at Dubai World Central

It made sense for cargo to start as that was one of the primary drivers for the airport being there

Airport as fifth in the world for cargo traffic. Even more impressively, Dubai saw an increase of 5.6% in cargo traffic last year – making it one of only three airports to record a growth. Globally, airports in general saw cargo volumes decline by 8.2%. These impressive statistics led the ACI report to positively conclude that the Middle East had had a “more stable overall performance curve” last year compared to other regions. Dubai Airport’s own figures for this year also show a strong growth, with cargo handled in February totalling 171,707 tonnes, up an astonishing 26.7% from a year ago. “If you look back over the first two months of the year, we have seen a growth of cargo in DIA,” agrees Walsh.” Last year we finished the year 5.6% up when the rest of the world was in decline. There is definitively good growth potential in the short, medium, and longer-term.” Certainly on the cargo front, Al Maktoum International promises some very exciting facilities aimed at further driving up this demand. Walsh himself is enthused by the current changes in the way supply chains are delivered, inConstruction work begins on cluding the increase in seaair conversions. With the the airport at Dubai adjacency of Jebel Ali Port, World Central loading freight arriving by sea onto planes at the new air-

2005

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port will be much faster, more efficient and therefore more desirable to its customers. “Cargo and logistics is a hot reinvigorated subject in Dubai at the moment, and it is great to be part of that,” he stresses. “We have an opportunity to actually make Dubai an easier place to do business and to become a really competitive global hub.” Of course, Dubai remains beautifully placed geographically as a hub for the region – providing a go-between for South East Europe, CIS, the Indian subcontinent, Africa and the rest of the Middle East. Being based at the Dubai World Central super-hub with its benefit of years of forward planning, also gives the airport a distinct edge as a part of the integrated multi-modal supply chain. As well as the excellent and renowned facilities at Jebel Ali port, the airport’s other neighbour Dubai Logistics City (DLC) is a massive onestop shop for warehouses and logistics offices. With everything in one neat location, it’s no wonder that the airport’s developer is feeling confident about the future. Unlike many other airports that are geared up specifically for passenger flights, where cargo is almost an afterthought, Al Maktoum International has been developed with at least an equal importance being given to cargo operations. It is almost predictable that the airport would launch with cargo as opposed to passenger operations. “The airport as a whole was developed on that site as part of the vision to have

May 2010

DUBAI WORLD CENTRAL

a multi-modal hub predominantly Unfortunately due to confi- by 2012. With the numbers of arrivals into built around the cargo and lodentiality, Walsh has to remain the region expected to nearly double that gistics operations,” Walsh conquiet about which airlines in the next 15 years, it is clear that the excurs. “A primary reason for have already signed up to isting airport will not be able to cope with the airport to be there is that join the airport in the near this expected growth. So once cargo operaincrease in cargo traﬃc at co-location with the port, the Dubai International Airport future. There has been talk tions at Al Maktoum airport are successdevelopment of the hub and that the region’s flagship car- fully underway, passenger operations look in 2009 the access to the road infrarier, Emirates Airlines, will be set to follow. “What we didn’t want to do structure at that point. It made delaying its relocation to the new was to put too much pressure on the airsense for cargo to start as that was airport by up to 10 years. Walsh port by opening both passenger and cargo one of the primary drivers for the airport however, remains optimistic. at the same time,” Walsh states. being there.” “Our first phase is to show the potential For now, the future for the airport is The other key driver was to reduce the to the airlines and encourage those airlines looking very bright and Walsh expects this pressure on its existing sister airport, Du- to move across. We would like to be able growth to continue. bai International. Nearly a victim of its to get to 250,000 tonnes of cargo within “What I see for DWC is that cargo is goown success in terms of both cargo and the first year through a phasing of airline ing to incrementally grow over the next few passenger throughput, Dubai Airport has moves,” he says. years and we will keep adding capacity as a limit in its capacity to handle the growth Walsh remains similarly hesitant to the demand is there,” he predicts confidentexpected in the future. “We are certainly give a date for the commencement of the ly. “Tenants are taking up facilities in DLC moving up in ranks as the largest cargo passenger side of operations. “We haven’t and as that part of the community grows, airport in the world and we know that in set a date at this time,” he says noncom- there will be a demand for the airlines to the foreseeable future there is going to be mittally. “The passenger facility is at its continue to operate out of the airport. We pressure on that in terms of our overall final stages of construction and is substan- have a phased master plan which increases capacity,” admits Walsh. “It made sense to tially complete now. If you went out to the its capacity over the next 15 years.” make cargo the first move at the new air- site, you’d see that we are fitting out the With so many advantages, the airport port to help start relieving some pressure terminal, building the car park and fore- promises to go from strength to strength. on Dubai International.” court area and doing finishing touches in “We’ve been asked before how do we With the new airport being viewed as a effect.” The passenger terminal aims to compare to our competitors in Sharjah and solution to Dubai’s potential future aviation have a capacity of 7 million passengers, Abu Dhabi, but our competitors are airconstraint, it is envisaged that together both with the space to cater to 160 million an- ports like Hong Kong and Singapore,” says the airports will be able to handle the region’s nually in around 10 year’s time. Walsh. “Although we do obviously look growing cargo and passenger numbers. Last year, Dubai International itself at our regional competitors, we are in the “We are predominantly looking at mov- received over 40 million passengers and is global business here. We want to take our ing airlines from Dubai International rather now being expanded to receive 75 million rightful place in the world.” than taking new airlines in at this point as we do recognise that there needs to be some Inevitably with a project of that size, it relief of some of the pressure there, “ says Walsh. This may even lead to a modificahas had some issues with the construction tion of the cargo facilities, with Dubai Airport cargo operations predominantly being which has led us to say that the middle of 2010 is the around the belly-hold cargo within the passenger aircraft.” right date to open

5.6%

The Passenger Terminal at Dubai World Central

May 2010

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GLOBAL AIRPORT REVIEW

May 2010

Following the recession, airports are ďŹ nally experiencing an upward swing with their passenger and cargo volumes. Airports Council International (ACI) takes a look at the top performers for 2009.

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GLOBAL AIRPORT REVIEW

MIDDLE EAST AIRPORT REVIEW According to the Airports Council International director general Angela Gittens, 2009 was a year of great financial challenge for many airports around the world. The global results for the year were less depressed than originally anticipated however, and this was due, in part, to the continual increase in passenger and freight traffic in the Middle East. Despite a sharp fall in passenger numbers at Dubai International in September, the Middle East maintained a more stable overall performance curve throughout the year when compared to other regions across the globe. The positive numbers and ongoing stability helped boost fourth quarter global traffic growth to 3.5% after a flat third quarter, the ACI confirmed. Cargo declines were somewhat more dramatic across the region, but remained strong when compared to other regions. In January 2009 the Middle East continued to be the only region registering total traffic growth. The decline in international freight was significant indicating a rise in passenger traﬃc collapse of global export in December 2009 when trade. Worldwide the piccompared to 2008 ture was bleak and cargo traffic fell 8.2%.

Dubai International Airport PASSENGER VOLUMES

9.2%

Year-to-date Dec 2009/2008 CITY/COUNTRY

PASSENGERS

CARGO ‘% CHG

MOVEMENTS (tonnes) % CHG

% CHG

ABU DHABI, AE

9,672,330

7.3

382,523

7.4

102,118

9.6

AL AIN, AE

92,389

-38.9

2646

-11.4

3273

17.2

AMMAN, JO

4,770,769

6.5

82,183

-5.8

57,766

12.6

BAHRAIN, BH

9,053,631

3.4

342,734

-6.9

103,727

2.5

BEIRUT, LB

4,985,499

22.0

72,589

5.8

66,741

22.6

DUBAI, AE

40,901,752

9.2

1,927,520

5.6

281,181

4.0

KUWAIT, KW

8,188,044

12.7

197,984

9.9

95,518

8.0

MUSCAT, OM

4,556,502

13.9

64,419

10.1

55,330

21.3

RAL AL KHAIMAH, AE

23,546

n/a

SHARJAH, AE

5,764,098

9.2

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5935 421,398

-29.7 16.1

13,470 64,330

-22.0 1.0

May 2010

GLOBAL AIRPORT REVIEW

ASIA PACIFIC AIRPORT REVIEW Beijing International Airport

Top 20 BANGKOK, TH BEIJING, CN BRISBANE, AU CHENGDU, CN GUANGZHOU, CN HONG KONG, HK INCHEON, KR JAKARTA, ID KUALA LUMPUR, MY KUNMING, CN MANILA, PH MELBOURNE, AU MUMBAI, IN NEW DELHI, IN SHANGHAI, CN SHENZHEN, CN SINGAPORE, SG SYDNEY, AU TAIPEI, TW TOKYO, JP

PASSENGER VOLUMES

Year-to-date Dec 2009/2008 CITY/COUNTRY

PASSENGERS

CARGO ‘% CHG

MOVEMENTS (tonnes) % CHG

% CHG

BANGKOK, TH

40,500,269

4.9

1,045,194

10.9

257,860

3.4

BEIJING, CN

65,329,851

16.8

1,420,977

4.0

488,495

13.6

GUANGZHOU, CN

37,048,550

10.8

955,271

39.3

308,863

10.2

HONG KONG, HK

45,560,888

4.8

3,384,765

7.5

288,166

6.9

INCHEON, KR

28,677,161

4.9

2,313,001

4.6

200,684

5.6

JAKARTA, ID

36,466,823

13.3

433,304

7.0

268,624

7.7

KUALA LUMPUR, MY

29,682,093

7.8

601,409

9.7

226,755

0.4

SHANGHAI, CN

31,902 992

13.0

2,539,284

2.3

287,725

8.5

SINGAPORE, SG

37,203,978

1.3

1,660,851

11.8

244,974

4.3

TOKYO, JP

61,903,656

7.2

779,103

8.3

321,430

1.2

May 2010

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GLOBAL AIRPORT REVIEW

EUROPE AIRPORT REVIEW Heathrow International Airport

Top 20 AMSTERDAM, NL ATHENS, GR BARCELONA, ES BRUSSELS, BE COPENHAGEN, DK DUBLIN, IE FRANKFURT, DE ISTANBUL, TR LONDON, GB MADRID, ES MILAN, IT MOSCOW, RU MUNICH, DE OSLO, NO PALMA DE MALLORCA, ES PARIS, FR ROME, IT STOCKHOLM, SE VIENNA, AT ZURICH, CH

PASSENGER VOLUMES

Year-to-date Dec 2009/2008 CITY/COUNTRY

PASSENGERS

CARGO ‘% CHG

MOVEMENTS (tonnes) % CHG

% CHG

AMSTERDAM, NL

43,569,553

8.1

1,314,938

17.9

406,969

8.9

BARCELONA, ES

27,301,493

9.7

92,181

13.1

278,965

13.3

FRANKFURT, DE

50,932,840

4.7

1,887,718

10.6

463,111

4.7

ISTANBUL, TR

29,854,119

4.3

381,177

6.0

283,929

2.8

LONDON, GB

66,037,578

1.5

1,349,574

9.2

466,393

2.6

MADRID, ES

48,248,890

5.1

331,422

7.9

435,179

7.4

MUNICH, DE

32,681,067

5.4

229,094

11.8

396,805

8.2

PARIS, FR

57,884,954

4.9

1,818,503

10.8

525,314

6.2

ROME, IT

33,723,213

4.0

138,780

9.3

324,485

6.4

ZURICH, CH

21,879,095

0.8

283,034

7.9

262,188

4.7

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May 2010

GLOBAL AIRPORT REVIEW

NORTH AMERICA AIRPORT REVIEW Atlanta City Airport

Top 20 ATLANTA GA, US BOSTON MA, US CHARLOTTE NC, US CHICAGO IL, US DALLAS/FORT WORTH TX, US DENVER CO, US DETROIT MI, US HOUSTON TX, US LAS VEGAS NV, US LOS ANGELES CA, US MIAMI FL, US MINNEAPOLIS MN, US NEW YORK NY, US NEWARK NJ, US ORLANDO FL, US PHILADELPHIA PA, US PHOENIX AZ, US SAN FRANCISCO CA, US SEATTLE WA, US TORONTO ON, CA

PASSENGER VOLUMES

JAN

FEB MAR APR MA Y JUN JUL A UG SEP OCT NOV DE C

Year-to-date Dec 2009/2008 CITY/COUNTRY

PASSENGERS

CARGO ‘% CHG

MOVEMENTS (tonnes) % CHG

% CHG

ATLANTA GA, US

87,993,451

2.3

559,081

14.0

970,235

0.8

CHICAGO IL, US

64,397,891

8.8

1,150,027

14.1

827,679

6.1

DALLAS/FORT WORTH TX, US

56,030,457

1.9

601,780

8.6

638,782

2.5

DENVER CO, US

50,167,485

2.1

224,387

10.6

606,006

2.2

HOUSTON TX, US

39,993,236

4.1

372,554

9.6

578,150

5.8

LAS VEGAS NV, US

40,460,310

8.2

87,561

2.1

511,064

11.7

LOS ANGELES CA, US

56,518,605

5.5

1,506,295

7.6

545,210

12.4

NEW YORK NY, US

45,912,430

3.9

1,135,043

21.8

412,980

5.2

PHOENIX AZ, US

37,824,982

5.2

217,320

12.4

457,207

9.0

SAN FRANCISCO CA, US

37,366,287

0.2

408,101

17.1

379,751

2.1

May 2010

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GLOBAL AIRPORT REVIEW

SOUTH AMERICA AIRPORT REVIEW Mexico City Airport

Top 20 BELO HORIZONTE, BR BRASILIA, BR BUENOS AIRES, AR CAMPINAS, BR CANCUN, MX CARACAS, VE GUADALAJARA, MX LIMA, PE MEXICO CITY, MX MONTERREY, MX PANAMA CITY, PA PORTO ALEGRE, BR PUNTA CANA, DO QUITO, EC RECIFE, BR RIO DE JANEIRO, BR SALVADOR, BR SANTIAGO., CL SÃO PAULO, BR TIJUANA, MX

PASSENGER VOLUMES

Year-to-date Dec 2009/2008 CITY/COUNTRY

PASSENGERS

CARGO ‘% CHG

MOVEMENTS (tonnes) % CHG

% CHG

BRASILIA, BR

12,645,739

16.1

50,388

11.0

162,349

14.8

BUENOS AIRES, AR

7,910,048

1.3

162,806

20.8

67,488

5.0

CANCUN, MX

11,330,442

11.4

16,385

0.7

110,958

8.6

CARACAS, VE

8,773,461

0.6

61,355

9.5

145,124

0.1

LIMA, PE

8,771,060

5.9

232,375

2.8

104,966

6.3

MEXICO CITY, MX

24,396,682

6.9

324,837

15.1

348,060

5.0

RIO DE JANEIRO, BR

12,106,945

9.2

110,853

7.0

119,287

8.7

SALVADOR, BR

7,774,620

15.9

44,796

23.0

102,211

6.7

SANTIAGO., CL

9,024,611

0.2

255,789

14.2

99,080

2.0

SÃO PAULO, BR

22,331,569

6.4

382,723

19.5

209,636

8.0

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May 2010

GLOBAL AIRPORT REVIEW

AFRICA AIRPORT REVIEW Johannesburg Airport

Top 20 ADDIS ABABA, ET AGADIR, MA ALGIERS, DZ CAIRO, EG CAPE TOWN, ZA CASABLANCA, MA DAKAR, SN DAR ES SALAAM, TZ DJERBA, TN DURBAN, ZA HURGHADA, EG JOHANNESBURG, ZA LAGOS, NG LUXOR, EG MARRAKECH, MA MONASTIR, TN NAIROBI, KE PLAINE MAGNIEN, MU SHARM EL SHEIKH, EG TUNIS, TN

PASSENGER VOLUMES

Year-to-date Dec 2009/2008 CITY/COUNTRY

PASSENGERS

CARGO ‘% CHG

MOVEMENTS (tonnes) % CHG

% CHG

ALGIERS, DZ

4,474,970

8.4

21,931

3.8

61,596

12.7

CAIRO, EG

14,378,842

0.1

285,839

1.5

142,355

3.7

CAPE TOWN, ZA

7,725,223

4.4

N/A

93,235

4.5

CASABLANCA, MA

6,393,165

3.0

53,795

6.0

72,760

1.5

DURBAN, ZA

4,310,095

3.3

4707

148.9

52,382

0.7

JOHANNESBURG, ZA

17,607,255

5.5

252,063

19.5

202,421

5.5

LAGOS, NG

5,654,122

9.1

175,827

9.4

83,149

1.2

NAIROBI, KE

5,077,968

7.0

263,070

12.5

80,195

5.1

SHARM EL SHEIKH, EG

7,420,215

4.2

N/A

56,179

5.2

TUNIS, TN

4,257,455

0.8

19,390

3.9

57,795

2.8

May 2010

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TOP AVIATION PROJECTS

Big hitters A look at the biggest aviation projects currently underway in the GCC The kingdom’s vision for King Abdulaziz International Airport, Jeddah

he GCC’s aviation sector has undergone rapid transformation over the last decade. Recognising that establishing a hub – backed by an international brand – was a strong tool for development, Dubai with Emirates, Abu Dhabi with Etihad and Qatar with Qatar Airways have ploughed billions of dollars into their respective aviation markets. Kuwait, Bahrain and Oman too have established strong regional hubs and are continuing to modernise their airport infrastructure.

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We take a look at five of the biggest KING ABDULAZIZ INTERNATIONAL aviation projects currently underway in AIRPORT, JEDDAH the GCC, beginning with the biggest po- The kingdom’s largest contractor, Saudi tential market, Saudi Arabia. Binladin Group this month secured the Despite being left behind by the invest- low-bid for two of the largest contracts ment of its GCC neighbours, the kingdom set to be awarded in 2010 for the upgrade – buoyed by record budget spending – has of the King Abdulaziz International airembarked upon a massive upport in Jeddah. grade programme. In particuA number of international and lar, the kingdom’s airports local firms had submitted bids for are undergoing extensive two design and build contracts, and radical overhaul’s to which covered infrastructure ensure Saudi Arabia will SBG’s bid to win the up grade and construction of the terminal become a major hub by contract for King Ab and affiliated works. SBG subdulaziz 2035 – and at the same mitted bids valued at US$3bn International Airpor t time catch up with newer (SR11.3bn) for the terminal and hubs such as Dubai. $3.7bn for the infrastructure. Other

US$3b

May 2010

TOP AVIATION PROJECTS

Unlike the rest of the GCC, Saudi Arabia’s primary target is to meet demand from religious tourists embarking upon the Hajj and Umrah pilgrimages bidders for the work included Almabani General Contractors, El-Seif Engineering & Contracting Company, China Harbour Engineering Company and Joannou & Paraskevaides with Murray & Roberts. Known as the King Abdulaziz International Airport Development Project (KADP), it will be developed in three phases. Phase one – which includes the overhaul and construction of two passenger terminals, construction of a general aviation terminal, desalination plant and other facilities – is scheduled for completion in 2012, while phase 3 is scheduled for 2035. The new terminal will include a new terminal with 42 departure gates, aircraft hangers, new control tower, railway station zone and maintenance facilities. Unlike the rest of the GCC, Saudi Arabia’s primary target is to meet demand from religious tourists embarking upon the Hajj and Umrah pilgrimages. Jeddah acts as the gateway to the holy cities of Mecca and Medina, with approximately

2.5 million visitors during the Hajj period alone. Up to seven million perform the Umrah over the course of a year. In addition to these plans, Saudi Arabia plans a number of ‘airport cities’ within the kingdom where people can live, shop, study and attend conferences. Jeddah, Riyadh and Dammam have all been earmarked as sites where these cities will be developed. Arabian Business, citing Bloomberg reported the General Authority for Civil Aviation (GACA) had shortlisted four groups for a $2.4bn project to build and operate facilities at an Airport City linked to Jeddah. It will take approximately 10 years to complete and is part of a plan to attract $5.86bn in investment to build, own and operate an airport and terminal related facilities, according to Alaa Samman, director of business development for domestic airports at GACA. The winning bids are expected in August, he added.

AL MAKTOUM INTERNATIONAL AIRPORT, DUBAI Al Maktoum International airport – part of the massive $33bn Dubai World Central project – is set to open its first phase on June 27 for cargo. The site will also feature a logistics centre and a number of residential developments. When complete Al Maktoum will be able to handle 160 million passengers a year, making it one of the world’s largest airports. While falling demand and room for renegotiation on contracts has affected the pace of the projects, its overall design has not altered. Anticipating long-term growth, the government is developing the new airport near Jebel Ali Free zone. It is not clear at this stage, however, when commercial flights will begin operating out of the airport. The budget has been revised but when finally completed the site will feature 4km of runways, a cargo terminal, passenger terminal, utilities complex and associated facilities. Other phases will see the construction of further runways, a 10km underground cargo tunnel to Jebel Ali port and baggage and cargo handling facilities. A consortium featuring the local Arabtec Construction and Malaysia’s WCT Engineering won the construction contract for the airport in 2006. Meanwhile, Dubai airport’s $1.17bn concourse three, designed specifically to take the A380 is scheduled to open in 2012.

A computer generated image of the Passenger Terminal at Al Maktoum International Airport at Dubai World Central

May 2010

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TOP AVIATION PROJECTS

Etihad Airways’ dedicated Terminal 3 at Abu Dhabi International Airport

ABU DHABI EXPANSION Like its neighbouring emirate, Abu Dhabi is anticipating a marked increase in passenger and cargo traffic over the coming years and has subsequently planned for this. The Abu Dhabi Airports Company is constructing a new airport near the existing site, under the Supervision Committee for Expansion of Abu Dhabi International Airport (SCADIA) to increase passenger traffic from seven million currently to 32 million. To be completed in two phases the project will include a 21-storey air traffic control tower (ATCC), Etihad passenger terminal, midfield terminal complex, 4.1km runway and a number of taxiways and commercial areas. The contract for the midfield terminal complex is expected to be awarded in the fourth quarter this year and will be completed by 2015. The contract will see a

new terminal built between Abu Dhabi’s International airport’s two runways with a total built-up area of 630,000 square metres and the capacity of handling up to 20 million passengers per year. It will also feature a multi-storey car park. A number of groups are understood to have submitted prequalification forms. These include ACC with Bouygues, Samsung Corporation and Six Construct Abu Dhabi. Bechtel Corporation with Enka and the Al Jaber Group and Al Habtoor Leighton with Murray & Roberts and Hochtief. Al Habtoor Engineering & Murray & Roberts were awarded the EPC contract for the Etihad passenger terminal, which was completed in 2008. The ATCC is being built by Ascon and Kumho Engineering & Construction Company and is due to be completed in the second quarter. Foundation, piling and excavation works are currently underway.

Abu Dhabi International Airport’s terminal building will have a total built-up area of 630,000 square metres

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PRINCE MOHAMMED BIN ABDULAZIZ AIRPORT, MEDINA In addition to Prince Abdulaziz at Jeddah, GACA is in the process of prequalifying firms for the public-private partnership (PPP) deal to develop the $1.5bn first phase of the Prince Mohammed Bin Abdulaziz Airport expansion at Medina. Bids for the first phase are due in September, with an award expected by the end of November. Construction is then due to start one year later. A number of firms have been prequalified including SBG and Almabani General Contractors. GACA will renovate the airport to enable a much-increased capacity of 14 million passengers per year, compared to the 3.5 million passengers a year. Construction will involve a new passenger terminal, renovation of the existing runway and a possible second runway. This second phase is expected to take place between 2021 and 2024 and is expected to push up the overall cost to $2.4bn. The expansion of Medina airport – the first that GACA is developing under a PPP contract - is part of the kingdom’s wider plan to develop more than $10.5bn of airport projects to increase capacity across the kingdom. In total, GACA is upgrading 16 out of a total of 27 domestic airports. May 2010

TOP AVIATION PROJECTS

NEW DOHA INTERNATIONAL AIRPORT, QATAR Work is also still ongoing on the New Doha International Airport (NDIA) in Doha. Following the success of Qatar Airways, it was decided the existing facilities were inadequate and work is now ongoing to build a new airport in excess of 22 square kilometres with the ability to handle 50 million passengers. This will make it three times the size of the current airport and six times the capacity. With a spiralling budget estimated now at $11bn (previously it was $5.5bn), the first phase of the airport is expected to open in 2011. This will comprise of two runways and a 140,000 square-foot terminal, 24 gates and the capacity to handle 12 million passengers per year. Phase three is due to be completed in 2015. At the beginning of the year, a number of contractors submitted bids for a $600+million contract to build an extension to the passenger terminal. An award is expected in the second quarter of this year. The extension includes a five-storey structure covering 127,000 square metres.

Those firms understood to have bid include Six Construct, Hyundai Engineering & Construction Company and China State Construction Engineering Corporation. This will connect with the main passenger terminal currently being built by a consortium featuring Taisei Corporation and TAV. The second phase of the expansion will double capacity to 24 million. ELSEWHERE IN THE REGION Iraq’s Ministry of Transport is looking to develop aviation facilities, which meet international standards to receive pilgrims and tourists. In total, it plans to meet a capacity of 30 million passengers per year on a site of 220 acres at Karbala. Details of the projects include a runway, taxiway, apron, terminal, passenger bridges, air traffic control tower and administrative buildings. The project has an estimated value of $3bn. Kuwait’s Directorate General of Civil Aviation (DGCA) is looking to expand the number of passengers annually passing through the airport to 20 million,

from the current six million. It will also be able to receive the new Airbus A380. A new terminal building will be linked to the existing terminal via a tunnel and the new design incorporates a hotel, car parks, new maintenance hangers and both existing runways will be extended by 600 metres. Oman’s Ministry of Transport & Communication is pushing ahead with expansion plans for airports at the capital Muscat and Salalah to raise passenger capacity to seven million. Consisting of five phases the Ministry plans to develop airside facilities, an air traffic control tower, a passenger terminal, the redevelopment of Salalah airport and deliver updated airport IT systems. EPC contracts for new passenger terminals at Muscat and Salalah are expected to be awarded in July. For the capital, this will involve the construction of a 290,000 square metre airport terminal. Work is expected to start in the second half of the year. Firms understood to have submitted bids are Joannou & Paraskevaides (J&P), TAV, CCC, Bechtel and Larsen & Toubro.

New Doha International Airport’s Passenger Terminal

May 2010

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ASK THE THEEXPERT EXPERT

Managing change Question: : How can airlines ensure they receive the best maintenance and repair services in the region? Expert: Peter Wiggers, MD of Asscom Middle East

he impact of the international financial crisis for the aviation industry in Middle East and Africa has been less harmful than for other regions in the world. Irrespective of the global downturn, the annual civil aviation growth in the Middle East is 5.2% vs. an international average of 3.9%. The number of commercial aircraft serving the region will triple by 2028. According to Airbus’ latest forecast, the Middle East Region is set to take delivery of 730 aircraft by 2018 with a further 689 on order up until 2028. The International Air Transport Association forecasts a demand growth of 15.2% for Middle East carriers alone. The market of 2.5 billion people stretching from the GCC, India, Pakistan, the states of the former Soviet Union to Africa creates a wealth of opportunities for the aviation industry in the region. The essential role of travel industry and the growing airline fleets are triggering the need for repair and maintenance services for aircraft equipment and systems in the region. Dubai-based asscom Middle East provides airlines in the region with “on-site” avionic and electronic repair services, thus ensuring shortest possible turnaround-times which in turn result into lower investment for airlines. May 2010

The fact that avionic and electronics repairs are carried out on level 3 basis (circuit board level) means additional added value for airlines as defect parts don’t have to be returned to the manufacturer somewhere in Europe or USA for repair which would mean a significant loss of time and money. For specific products asscom Middle East offers its customers advance exchange services as well as emergency repairs in case of AOG situations and if no spare part is available thus ensuring rapid availability of urgently needed parts. The presence in the region allows regular and ad hoc airline visits thus ensuring that individual and specific requirements can be discussed on a face to face basis, a benefit that is also highly valued by the customers. Being situated in the Dubai Airport Free Zone just next to the Dubai International Airport allowing direct access to customs authorities and freight forwarders is another asset when it comes to promptness in service. All of the above addresses the specific needs of airlines in the region and cont r ibutes

to their future growth, profitability and competitiveness. asscom Middle East, the Dubai subsidiary of the Hamburg, Germany based asscom aeronautic support services GmbH, offers excellent service capabilities to both airlines and component and system suppliers (OEMs). As a full service provider, asscom provides 24/7 spares support, repair services (repairs for avionics and electronics as well as non avionic repairs), technical support, and marketing for aviation equipment and system manufacturers. A highly qualified international team provides outstanding services at the same high level of standard as provided by the OEMs themselves.

AIRCRAFT INTERIORS EXPO asscom will be exhibiting at Aircraft Interiors Expo at Hamburg Messe in Germany from May 18-20, 2010. The company’s stand will be located in Hall B6 on the Hanse Aerospace Pavilion. To ﬁnd out more about the show please visit www.aircraftinteriorsexpo.com.

CONTACT DETAILS asscom Middle East P.O. Box 54856 Dubai Airport Free Zone West Ring Road, Plot 20 Tel. +971 4 7030 403 AOG Hotline: +971 50 113 83 23 Fax: +971 4 299 5851 Email: info@asscom-dubai.de

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Retail Bank of the Year Investment Bank of the Year Retail Company of the Year Telecoms Company of the Year Insurance Company of the Year Special CSR Award Businessman of the Year Fast Growing Company of the Year Hospitality and Tourism Company of the Year Technology Company of the Year Most Innovative Investment Bank of the Year Construction Company of the Year Logistics Company of the Year Best Commercial Developer Best Residential Developer Industrial Company of the Year Lifetime Achievement

The Arabian Business Achievement KSA Awards 2010 The premier event for business leaders in the Middle East. 1st June 2010 | Al Faisaliah Hotel Riyadh For nominations contact: andrew.white@itp.com For sponsorship enquiries: Rabih Naderi +966 50 3289818 An ITP Executive Event

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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

mproving traffic results seen in December and January continue into February, according to the ACI. Total global traffic grew 6.8%, boosted by a strong increase of 9% in international traffic and domestic growth of 4.8%. International traffic growth was

led by large airports including Dubai (23%) and Bangkok (24%). It is to be kept in mind that figures are compared to last year when international traffic was down by 12%. Traffic volumes are still down from 2008 levels, but international freight also continues to grow.

JANUARY 2010/2009 CITY/COUNTRY

PASSENGERS (tonnes)

CARGO

% CHG

(tonnes)

YEAR-TO-DATE JANUARY 2010/2009 MOVEMENTS

% CHG

(tonnes)

PASSENGERS

% CHG

(tonnes)

CARGO

% CHG

(tonnes)

MOVEMENTS % CHG

(tonnes)

% CHG

MIDDLE EAST ABU DHABI, UAE

902,528

11.2

31,753

26.1

9117

13.3

902,528

11.2

31,753

26.1

9117

BAHRAIN

730,782

2.5

26,361

2.4

9013

5.5

730,782

2.5

26,361

2.4

9013

5.5

BEIRUT, LEBANON

369,694

20.7

5369

4.3

5134

12.0

369,694

20.7

5369

4.3

5134

12.0

DUBAI, UAE

13.3

3,861,525

17.0

171,453

31.5

25,522

8.9

3,861,525

17.0

171,453

31.5

25,522

8.9

KUWAIT

665,419

13.6

14,575

5.1

6769

(10.3)

665,419

13.6

14,575

5.1

6769

(10.3)

MUSCAT, OMAN

439,709

24.0

7265

60.6

5382

28.1

439,709

24.0

7265

60.6

5382

28.1

SHARJAH, UAE

529,746

5.7

36,288

50.3

5431

1.7

529,746

5.7

36,288

50.3

5431

1.7

AFRICA ACCRA, GHANA CAIRO, EGYPT

122,670

13.2

3746

(9.9)

2123

30.6

122,670

13.2

3746

(9.9)

2123

30.6

1,098,096

11.6

27,619

1.0

12, 066

10.3

1,098,096

11.6

27,619

1.0

12,066

10.3

CAPETOWN, SA

652,417

1.0

*****

7805

(3.4)

652,417

1.0

*****

7805

(3.4)

CASABLANCA, MOROCCO

514,881

13.7

4045

(10.0)

6071

12.2

514,881

13.7

4045

(10.0)

6071

12.2

DAR ES SALAAM, TANZ

124,279

10.2

1193

(16.6)

4966

6.6

124,279

10.2

1193

(16.6)

4966

6.6

1,389,260

0.6

23,397

30.0

16,069

(3.2)

1,389,260

0.6

23,397

30.0

16,069

(3.2)

JOHANNESBURG, SA MARRAKECH, MOROCCO

231,374

10.0

*****

2619

15.0

231,374

10.0

*****

2619

15.0

SHARM EL SHEIKH, EGYPT

674,449

34.0

*****

5102

22.9

674,449

34.0

*****

5102

22.9

ASIA PACIFIC BANGKOK, THAILAND

4,217,112

28.5

98,515

44.8

23,821

12.6

4,217,112

28.5

98,515

44.8

23,821

12.6

BEIJING, CHINA

5,440,732

7.4

121,647

33.0

40,954

5.4

5,440,732

7.4

121,647

33.0

40,954

5.4

MANILA, PHILIPPINES

2,152,264

9.0

32,418

65.4

20,202

6.4

2,152,264

9.0

32,418

65.4

20,202

6.4

MUMBAI, INDIA

2,358,362

14.2

52,064

30.5

20,687

1.6

2,358,362

14.2

52,064

30.5

20,687

1.6

NEW DELHI, INDIA

2,250,847

18.4

41,370

30.3

20,397

5.3

2,250,847

18.4

41,370

30.3

20,397

5.3

SINGAPORE

3,384,473

10.1

143,338

20.2

21,845

5.6

3,384,473

10.1

143,338

20.2

21,845

5.6

SYDNEY, AUSTRALIA

3,047,513

5.8

*****

24,308

3.0

3,047,513

5.8

*****

24,308

3..0

TOKYO, JAPAN

4,783,373

(0.9)

57,361

3.0

14,194

(0.2)

4,783,373

(0.9)

57,361

3.0

14,194

(0.2)

FRANKFURT, GERMANY

3,672,317

3.5

161,636

30.1

35,278

(0.5)

3,672,317

3.5

161,636

30.1

35,278

(0.5)

LONDON, UK

4,846,720

(0.6)

112,439

13.3

36,640

(4.6)

4,846,720

(0.6)

112,439

13.3

36,640

(4.6)

MADRID, SPAIN

3,437,300

9.6

28,729

18.6

33,817

1.9

3,437,300

9.6

28,729

18.6

33,817

1.9

MUNICH, GERMANY

2,148,380

(1.0)

18,035

17.8

27,421

(5.6)

2,148,380

(1.0)

18,035

17.8

27,421

(5.6)

PARIS, FRANCE

4,154,249

1.1

147,100

11.0

39,340

(5.8)

4,154,249

1.1

147,100

11.0

39,340

(5.8)

EUROPE

NORTH AMERICA ATLANTA

6,448,193

(4.6)

46,661

12.1

77,102

(1.4)

6,448,193

(4.6)

46,661

12.1

77,102

(1.4)

CHICAGO

4,655,695

2.5

96,483

24.3

67,535

0.7

4,655,695

2.5

96,483

24.3

67,535

0.7

DALLAS FORT WORTH

4,278,669

2.6

48,238

13.9

53,969

3.5

4,278,669

2.6

48,238

13.9

53,969

3.5

LOS ANGELES

4,609,720

8.0

128,247

24.9

46,970

3.4

4,609,720

8.0

128,247

24.9

46,970

3.4

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.

May 2010

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AVIATION DATA

EMIRATES SKYCARGO FUEL PRICE INDEX

AIRLINE ONTIME STATISTICS & DELAY CAUSES: FEBRUARY 2010

450

Air carrier delay 5.30%

On time 74.64%

Weather delay 0.75%

Diverted 0.24%

9 April

427 410

12 March

397 19 Febuary

26 March

380

396

370

330

Index 100 = 53.5 US cents per US gallon

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 6.89%

Cancelled 5.45%

Security delay 0.07%

Aircraft arriving late 6.66%

16 Apr 10

09 Apr 10

04 Apr 10

26 Mar 10

19 Mar 10

12 Mar 10

05 Mar 10

26 Feb 10

19 Feb 10

12 Feb 10

250

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

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

WEEKLY FREQUENCY

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

WEEKLY SEATS

WEEKLY CAPACITY

AIRLINE Total

Change (%)

Total

Change (%)

ASK Million Change (%)

EMIRATES

852

520

173,686

ETIHAD AIRWAYS

215

200

42,624

EMIRATES

QATAR AIRWAYS

325

308

70,420

-5

-6

15,628

-8

-33

1320

-33

MIDDLE EAST AIRLINES

114

21,242

ROYAL JORDANIAN

142

19,690

GULF AIR

-32

-23

15,204

-32

MAHAN AIR

100

5040

ROYAL JORDANIAN

SAUDI ARABIAN AIRLINES

-2

13,185

-8

SAUDI ARABIAN AIRLINES

IRAN AIR JAZEERA AIRWAYS

WEEKLY CAPACITY

WEEKLY FREQUENCY

WEEKLY SEATS

Total

Change (%)

Total

Change (%)

Total

Change (%)

123

290

46,980

1349

952

293,028

ETIHAD AIRWAYS

387

336

72,402

GULF AIR

169

-25

212

-7

43,370

-22

-100

MAHAN AIR

100

8820

OMAN AIR

212

34,984

613

534

125,549

6744

249

182

61,915

JAZEERA AIRWAYS

QATAR AIRWAYS

WEEKLY CAPACITY

WEEKLY SEATS

AIRLINE ASK Million Change (%)

AIR ARABIA

Total

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

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

Change (%)

AIRLINE

WEEKLY FREQUENCY

ASK Million Change (%)

Total

WEEKLY SEATS

Change (%)

Total

Change (%)

AIR ARABIA

11,340

EMIRATES

21,818

39,262

-7

ETIHAD AIRWAYS

7676

65,717

GULF AIR

-15

5690

-14

JAZEERA AIRWAYS

9570

AIGLE AZUR

222

37,568

AIR ALGERIE

316

49,025

AIR FRANCE

-7

258

-8

TUNIS AIR

402

BRITISH AIRWAYS

WEEKLY FREQUENCY

AIRLINE ASK Million Change (%)

13,626

123

258

45,504

MIDDLE EAST AIRLINES

-18

4172

KLM-ROYAL DUTCH AIRLINES

6141

OMAN AIR

2968

LUFTHANSA GERMAN AIRLINES

QATAR AIRWAYS

19,816

112

18,590

28 ROYAL JORDANIAN

10,602

-1

TURKISH AIRLINES

118

21,274

25 SAUDI ARABIAN AIRLINES

132

-4

33,116

-2

EGYPT AIR

AIR ARABIA MAROC

12,600

*Data is for week of 10-16 May, 2010 against 11-17 May, 2009. Regions follow IATA deﬁnition. E-mail: dataservices@oag.com

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May 2010

01 1 02 2 03 3 04 EVENTS CALENDAR 06 07 08 09 11 12 133 144 16 177 18 1 21 22 223 24 26 27 28 29 36

EVENTS LISTING

05 10 15

A listing of trade shows, conferences and seminars relating to the Middle East aviation industry 4  6 MAY

4  7 MAY

24  28 MAY

EBACE

Arabian Travel Market

Aviation Outlook Africa

Despite being held in Geneva, Switzerland, the European Business Aviation Convention & Exhibition is a must-attend event for most business aviation people operating in the Middle East. The European event includes exhibits, a static display of aircraft, educational sessions and maintenance and operations sessions and the entire convention is conveniently located at the impressive Geneva Palexpo and Geneva International Airport. You can follow the build-up to EBACE on Twitter.

Arabian Travel Market is the travel and tourism event unlocking business potential within the Middle East for inbound and outbound tourism professionals. Tourism destinations from the Middle East and around the world showcase a diverse range of accommodation options, breathtaking tourism attractions and new airline routes. Held at the Dubai International Convention and Exhibition Centre, this event attracts industry and government decisionmakers at the very highest level and features new products and ideas.

Some analysts say that 2010 will see a rebirth of the African aviation sector. This four-day conference will endeavour to find out if this is really true. Competition in Africa is becoming fierce, yet airline profits are not a true reflection of the industry’s potential, and Aviation Outlook Africa will look at ways for businesses to optimise the traffic that will be heading into Africa this year. The conference runs over three days and two workshops will take place on the opening and closing days.

VENUE: Geneva EMAIL: info-eu@ebace.aero WEBSITE: www.ebace.aero

VENUE: Dubai EMAIL: arabian.helpline@reedexpo.co.uk WEBSITE: www.arabiantravelmarket.com

VENUE: Cape Town EMAIL: leanne.mathey@terrapinn.co.za WEBSITE: www.terrapinn.com rapinn.com

2  4 JUNE

14  17 JUNE

Low-Cost Airlines World Americas

Asia Luxury Travel Market

The fourth annual Low Cost Airlines World Americas offers the opportunity to gain expert insight, network and strategise with low-cost carriers from around the world and low-cost throughout the Americas and Caribbean. Key decision makers from the world’s top airlines will discuss the future of the commercial airline industry, and how to expand your profits and market share. Speakers include CEOs from Southwest Airlines, WestJet, Republic Airways and Viva Aerobus.

VENUE: Florida EMAIL: michael.weinberg@terrapinn.com WEBSITE: www.terrapinn.com/2010/americas

This four-day show is one-of-its-kind in the region. It brings together the world’s most sought after destinations, ultra-luxurious accommodation, elite transportation and unique travel experiences. The invitationonly-event, offers luxury travel providers the opportunity to reach Asia Pacific’s VIP buyers through its pre-scheduled and online diary programme of up to 69 one-to-one meetings and networking opportunities. If you operate an executive jet company then this is a must-attend event for you. opens in Geneva

4 MAY EBACE

VENUE: Shanghai EMAIL: james.samuel@reedexpo.co.uk WEBSITE: www.altm.com.cn

25 30

21  22 JUNE

7  8 JULY

29 SEPTEMBER

ICAO Civil Aviation Global Search & Rescue Forum

Aviation Outlook China

The Budgies World Low-Cost Airline Awards

Following the recent findings by the International Civil Aviation Organisation (ICAO) that found gaps in service provision, this forum was conceived jointly by the ICAO and the UAE GCAA. It will focus on the requirements of civil aviation search and rescue (SAR), determine policy, establish procedures and implement operations. Experts argue that coordinated structural changes to services are needed if there is to be a speedy and reliable SAR response when civil aircraft emergencies arise.

Senior airline executives, civil aviation authorities, airport operators, investors and aviation service providers will discuss strategies, challenges and the needs facing the Asian aviation industry, with a highlevel focus on the Chinese market. Developments in the context of ancillary revenue and distribution management, IT enablement, aviation financing and equity opportunities, aircraft manufacturing and MRO capabilities to achieve operational and cost efficiencies will all be explored in this twoday regional event.

VENUE: Abu Dhabi EMAIL: bday@gcaa.ae WEBSITE: www.icao.int

VENUE: Beijing EMAIL: michael.weinberg@terrapinn.com WEBSITE: www.terrapinn.com/2010/avchina

May 2010

As low-cost airlines in the Middle East continue to flourish and expand their worldwide networks, it could be worth considering nominating yourself or one of your clients for a Budgie. The Budgies showcase excellence in the global low-cost airline industry and is recognition of the low-cost airline industry’s achievements and contributions to the forward development of the industry. To find out more and to register your place now visit the website address listed below.

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RECRUITMENT

MOVERS & SHAKERS New faces at Oman Air N O Oman Air has bolstered its m management team to include Chris P Phipps (left) as Asia Pacific regional m manager, Ejaz Khan as the Gulf, M Middle East & Africa regional manager aand Don Hunter (below right) as chief oofficer of airport operations. Phipps joins Oman Air from Qatar A Airways, where he was regional m manager in Libya and before joining Qatar Airways he worked aat British Airways for 11 years. In his new role as regional manager, Asia Pacific, Phipps will be responsible for Oman Air markets in India, Pakistan, Sri Lanka, Maldives, Bangladesh, Thailand and the other destinations soon to be announced in Asia. Khan has over 28 years experience in international sales, customers’ service and airport operations in the aviation industry having worked with leading European and regional airlines. Prior to this posting he was working as country manager for Oman Air in Pakistan based in Karachi. Under his new role he will be based in Muscat and will lead his team in meeting the sales target of all the stations in the Gulf, Middle East and Africa. Finally, Hunter joins Oman Air after 19 years with Cathay Pacific Airways where his responsibilities included running both airport and ground handling subsidiaries in Hong Kong and also Cathay’s commercial operation in South Africa. He also spent four years with Virgin Atlantic, heading their Airport Services department, responsible for Virgin’s 31 airports worldwide. Most recently, he held the position of vice president pp with Dnata, both in Dubai and the Philippines. In his current position, Hunter will be responsible for running the ground handling elements of Oman’s airports, including checkin, passenger, baggage handling and Airport Services – Cargo for Oman Air and the 26 other airlines that operate scheduled services in Oman. He will also be responsible for planning and developing those elements into the new airports and facilities, currently under construction in Oman.

ADAC announces its new CEO Abu Dhabi Airports Company (ADAC) will be headed up by its new CEO James Bennett. O Bennett has been president & CEO of the Metropolitan Washington Airportss Authority (MWAA) since 2003 where hee managed and planned all programmess n and activities of the US$650 million umbrella organisation. onsible for the execution Bennett was, among other things, responsible of the $7.1 billion reconstruction and expansion of Dulles Airport; in addition to the $1 billion that it has previously invested in Ronald Reagan Washington National. In addition to his new role in Abu Dhabi, Bennett will become chairman of the American Association of Airport Executives as of May of 2010.

Etihad hires assistant head of hub E E Etihad Airways has appointed Ali Abd dulla Al Shamsi as its assistant head of h hub at Abu Dhabi International Airport. A UAE national, Al Shamsi will assist E Etihad’s head of hub in overseeing the aairline’s airport operations in Abu Dhabi. Al Shamsi has worked in the airline in industry for over 23 years. He joins Etihad from Emirates Airli Airline where he held the position of regional manager of commercial operations for Emirates Holidays. Prior to his eight years with Emirates Airline, Al Shamsi worked for over six years with Gulf Air. The airline’s CEO James Hogan said he was pleased to welcome Al Shamsi’s wealth of market experience.

Gulf Aviation Academy announces CEO in Bahrain Gulf Aviation Academy (GAA) has announced a new management team to overlook its future expansion in the Middle East, with Tim Shattock being appointed as CEO. Captain Ali Sulaiman has also joined GCAA as chief operation officer and will be responsible for pilot and cabin crew training programmes, while engineer Mahmood Al Balooshi is the company’s new chief technical training officer.

Please email your ‘movers and shakers’ information to robeel.haq@itp.com P May 2010

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RECRUITMENT CLASSI FIEDS

TO ADVERTISE HERE CONTACT: Nick Lowe Tel: +971 4 210 8306 Email: nick.lowe@itp.com

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May 2010

DEPARTURE LOUNGE

FACE TO FACE WITH ... NATS Services international business director John Swift explains why Aeronautical Information Management is so important What is Aeronautical Information Management (AIM)? Aeronautical information is something many in the aviation industry take for granted, however it is one of the most valuable and important enabling services within civil aviation and air traffic management today. It is the wealth of information – charts, flight procedures, airport, terrain and hazard data – that is relied upon by pilots and flight management systems to fly both safely and as efficiently as possible. The handling of this vital aeronautical data needs to be actively managed. This is why the industry is currently transitioning from the provision of an Aeronautical Information Service (AIS) to introduce robust and an effective Aeronautical Information Management (AIM) concept. Can you name some of your main international customers? The ongoing growth of the aviation sector within the Middle East means dealing with capacity is a big concern at the moment. We have supported Kuwait, Bahrain, Oman, Qatar and Dubai. How strong is demand for this service in the Middle East? The demand for services such as NATS Services’ suite of AIM related products, called Nucleus, continues to increase. This is a period of change with ICAO legislation requiring real improvements in data management. For many customers, the initial demand lies around knowledge: they’re aware that they have new obligations and opportunities, and they want to gain better understanding of the impact and implications of these changes. May 2010

What type of information do customers in the Middle East typically seek? Conversations often start around understanding requirements: “How do I migrate my current paper-based Integrated Aeronautical Information Package (IAIP) to a data environment?” and “Once I have data, by what means do I keep it up to date?”

Whilst in use in the UK, this has never been sold as a service in the Middle East, or anywhere else, so the challenge is that of all innovative solutions; convincing customers to leave behind old ways of doing things. We’re lucky in that as our AIM solution was specifically developed for ICAO compliance, the benefits it offers are pretty clear and immediate.

How does this information assist your customers? As a bespoke AIM solution, Nucleus provides the most financially efficient way to comply with ICAO standards. As a solution it enables customers to make the judgement on how best to work, either as a traditional systems procurement exercise, or as an outsourced service – or at a point between the two.

What makes NATS Services diﬀerent to the others? As our name suggests, we are a service provider. We aren’t in the business of selling commodities but in working to support the needs of our customers. Like other service providers, we’ve had to respond to needs of ICAO and the European Single European Sky project and their impact upon our customers. We’ve designed an exportable solution that we believe is unique within the market today. Certainly, since we first started to develop our AIM solution in 2004 we have yet to see a competitor with a similar flexible, end to end offering.

What are the challenges you face in selling this service within the region?

How do you think the market for this service will develop in the Middle East? Where we feel we can add real value is in supporting nationalisation programmes and preserving sovereignty through people skills. The service provision model is already being embraced here and this is allowing compliance with ICAO requirements to be met more easily and more cost effectively. It’s my prediction that within the next 18 months one nation will really embrace this approach, satisfying and exceeding their own national requirements through collaboration with neighbour states. www.arabiansupplychain.com

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