Aviation Business - July 2010 by ITP Business Publishing

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

BUSINESS

Licensed by Dubai Media City

“Emirates will never be sold” Executive vice chairman Maurice Flanagan ends the rumour

Event Highlights Berlin Air Show 2010 Which Middle East airline placed a record order for the Airbus A380?

FLYING HIGH With nearly one million passenger bookings to date, FlyDubai hails its first year of operations

MOVERS & SHAKERS | NEWS UPDATE | READER’S LET TERS | FACTS & FIGURES

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CONTENTS

JULY 2010 VOLUME 09 ISSUE 07

9 NEWS UPDATE

A month after the A380 was described as a “US$25 billion write-off ”, Airbus has announced a record multi-billion dollar order from Emirates Airline. Also this month; Air India to upgrade aircraft in GCC; France rejects UAE landing request; London-ME budget airline would be ‘strong’, predicts BA executive; Middle East airlines expected to post first profits since 2005; Bahrain Air moves away from low cost business; UAE considers additional bans on aircraft; Saudi Arabia Airlines warehouse destroyed by fire.

20 COVER FLYDUBAI

With almost one million passenger bookings to date, FlyDubai looks back on its ﬁrst year of operations as the Middle East’s latest low cost carrier.

40 INTERVIEW TURKISH AIRLINES Ayse Misirli Mirza, director of Turkish Airlines in Dubai, explains how the carrier plans to win back Middle East customers from the region’s top carriers.

24 AVIATION SIMULATORS

Training simulators have captured the imagination of the Middle East’s aviation industry. But do these expensive purchases represent value for money?

44 REPORT AIRLINE AWARDS

30 INTERVIEW EMIRATES

No matter what the critics say about its unprecedented success, Emirates Airline is still the biggest aviation story in the region, states founding managing director Maurice Flanagan.

34 REPORT BERLIN AIR SHOW

With US$16.5 billion worth of business announced at last month’s Berlin Air Show, including a major contribution from Emirates with its Airbus A380 order, organisers have hailed 2010 as the most successful year in Berlin Air Show’s history. www.arabiansupplychain.com

Skytrax announced the winners of its annual World Airline Awards at a prestigious ceremony in Europe last month, with trophies being handed out to Emirates, Etihad, Qatar Airways and Air Arabia, amongst other carriers.

50 ASK THE EXPERT

How can airports with a limited number of aircraft parking positions increase their capacity, asks Juergen Strommer, managing director of Cavotec ME.

56 DEPARTURE LOUNGE

Royal Jet’s Nick Maynard explains why the company’s new ‘100 Club’ will bring beneﬁts for customers in the Middle East. July 2010

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EDITOR’S LETTER Raising the bar with Emirates and FlyDubai

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 Managing Director Karam Awad Deputy Managing Director Matthew Southwell Editorial Director David Ingham Publishing Director Diarmuid OMalley Editorial Senior Group Editor Robeel Haq Tel: +971 4 210 597 email:robeel.haq@itp.com Advertising

ith a penchant for breaking industry records, Emirates has just announced the biggest order to date for the Airbus A380, just in time to defend the superjumbo after a month of harsh criticism from various quarters of the aviation industry. The Dubai-based airline was the toast of the Berlin Air Show after revealing its purchase of 32 additional A380s at a jaw-dropping list price of US$11.5 billion. Considering its previous orders for 58 of the aircraft, it’s hard to imagine any other airline in the world replacing Emirates as the ultimate A380 customer, certainly not in the near future. At present, London Heathrow, Toronto, Paris, Jeddah, Sydney, Auckland, Bangkok and Seoul are being served by the carrier’s existing fleet of A380s. It’s safe to assume that a greater roll-out will take place in coming years, starting with Beijing, Manchester and New York in 2010. So much for accusations by Cathay Pacific CEO Tony Tyler earlier this year that Gulf airlines would take at least a “generation” to catch-up with the Hong Kong-based carrier’s service. We found it hard to believe at the time and our

interview with Emirates executive vice chairman Maurice Flanagan in this issue proves that we’re not the only ones. “There is no way in which Cathay is ahead,” he told our reporter. “It is nonsense.” And while Emirates has raised the bar for long-haul carriers, FlyDubai has been doing the same in the low-cost sector. As you’ll read in our cover story, the fellow Dubai-based airline celebrated its first anniversary of operations last month, with a route network that has now reached 16 destinations around the region and beyond, supported by a fleet of nine Boeing 737-800 aircraft and almost one million passenger bookings to date. For a relative newcomer to the industry, these achievements have certainly given CEO Ghaith Al Ghaith a reason to celebrate. And to mark the occasion, we look back at the history of FlyDubai, from the date its name was revealed to the delivery of its ninth Boeing 737-800NG on Wednesday 16th June 2010. We hope you enjoy the read!

Sales Manager Nick Lowe Tel: +971 4 210 8306 email: nick.lowe@itp.com Publishing Director Diarmuid OMalley Tel: +971 4 210 8568 email: diarmuid.omalley@itp.com Europe Sales Rep Stephane De Remusat Tel: +33 680 844 378 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, 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 Marketing Manager Annie Chinoy ITP Digital Director Peter Conmy ITP Group

If you have any comments on this month’s issue, please email Robeel Haq, senior group editor of Aviation Business magazine (robeel.haq@itp.com)

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 4 286 8559 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Masar 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

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July 2010

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TRADE TALK

A regional perspective on open skies

How countries in the Middle East would stand to benefit from a liberal approach By Adel Ali, chief executive officer of Air Arabia

Nationalistic sentiments and fear of competition has hampered the pace of progress

Given the magnitude of the global economic crisis, the Middle East and North Africa (MENA) aviation industry, like its counterparts across the world, experienced an extremely difficult year in 2009. And while those challenges have remained abundant in 2010, airlines in this region have started to experience a steady increase in passenger numbers and load factors. Unfortunately, before celebrating a potential rebound, we must remember that the industryâ&#x20AC;&#x2122;s growth potential has historically underperformed due to a number of different factors, including the limited progress on open skies agreements. Over the last two decades, such agreements across North America, Asia and Europe have expanded the overall market for aviation and produced benefits for millions of passengers in the form of better quality, lower-priced and more competitive services through a liberalised aviation market. Industry studies have also indicated the benefits of open skies agreements with growth between 12-50% in air traffic being experienced in such markets following liberalisation. As regulatory barriers to entry go down, passengers have been the beneficiary with an increasing number of carriers resulting in a more competitive market, with lower fares and increased focus on customer satisfaction. The tangible benefits of a liberalised market also include a higher rate of job creation. Across the aviation sector, more employment opportunities arise from the servicing, management and maintenance of additional air services. Given the wide ranging benefits, one would expect markets and governments across the MENA region to embrace

July 2010

the concept enthusiastically. However, nationalistic sentiments and fear of competition has hampered the pace of progress. While the UAE, Lebanon, Jordan and Morocco have encouraged liberalisation of their aviation markets through open skies agreements, several other countries in the Middle East are still holding back on adopting a full open sky policy. This is a shame, because this region is one of the most vibrant aviation markets in the world today. There are massive investments being made with the ten leading Middle East hubs spending almost US$48 billion in new/expanded airport projects over the next 30 years. Jordan is a prime example where the country is seeing high traffic rates since opening up its skies with a boom in tourism. Lebanon is also exploiting the benefits of open skies despite political challenges. In the case of Morocco, open skies agreements with the European Union are already benefiting the economy, with the country being one of the few tourist destinations in the Middle East and North Africa region to post an increase in tourist arrivals in 2009. The UAE in particular has 41 open sky agreements with other nations and has seen an increase in tourism in 2009. The economic rationale of an open skies policy is clearly becoming more

pronounced to cater to rising demand for more convenient routes and lower fares. With the low cost carriers (LCC) segment accounting for about 6% of the total seat capacity of flights operated within the Middle East in 2009, the potential for growth in this segment is also evident given a gradual liberalisation of air traffic agreements in the region. From an industry perspective, the Arab Air Carrierâ&#x20AC;&#x2122;s Organization, the regional association of Arab Airlines has called upon Arab governments to implement the Jordan 2004 Convention and its economic rules, which would allow easier access to previously closed markets. Countries across the region are increasingly taking centre stage in the world economy with their dynamism and significant capital reserves boosted by their wealth of oil. The aviation industry can be a key catalyst in this new economic order. The regional aviation market is ripe for change. In these challenging times, governments across the region have a real opportunity to facilitate higher growth rates in aviation markets by allowing market forces to determine the development of air services. The aviation industry and passengers will also clearly emerge as winners in such circumstances.

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TRADE TALK

Why the aviation model is broken

A growing need for pro-aviation policy, partnership and global perspective By Paul Griffiths, chief executive officer of Dubai Airports

Most governments around the world treat aviation as a pariah and choke its growth

Airlines around the world have lost around US$50 billion since 2001, which clearly indicates that the present business model in completely and utterly broken. As the aviation industry works to repair this situation, governments worldwide should also take a look at Dubai’s aviation model to stem the flow of red ink and improve the financial sustainability of an industry that generates 8% of global GDP. After all, Dubai has a thriving aviation sector that features the third busiest airport for international passenger and cargo traffic, the world’s largest single airport retail operation and one of the fastest growing and most profitable airlines on the planet. Last year, while global aviation recorded the worst demand decline in postwar years, Dubai International recorded 9.2% passenger traffic growth, making it the world’s fastest growing major international airport. Annual passenger numbers are forecast to grow from 41 million in 2009 to 98 million in 2020 and 150 million passengers by 2030. With this in mind, the emirate’s approach can provide some valuable insight to counterparts throughout the world. There are three primary factors behind Dubai’s success – a pro-aviation government policy, industry-government partnership and a vision that embraces the changing industry dynamics driven by globalisation. At the end of the day, most governments around the world treat aviation as a pariah and choke its growth with costly, misdirected regulation and parasitic forms of taxation, whose revenues usually flow straight out of the sector. Sadly, the UK government is top-in-class in

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this regard. The Air Passenger Duty serves only to pad the Treasury’s coffers. And its recent decision to stop the construction of a third runway at Heathrow effectively snuffs out the considerable economic growth aviation can drive in an already beleaguered economy. Dubai has done the exact opposite. Aviation generates 25% of the emirate’s GDP - a fact that has led to its inclusion in Dubai’s strategic plan and a long-standing open skies policy. Allegations of a tax free environment are correct – but we aren’t the only tax free environment in the world and the policy applies to all companies operating in Dubai. Emirates Airline is run as a fully commercial business and treated like any other airline at Dubai International in terms of airport and landing charges. The airport is government owned, however, it is run efficiently, it is cash positive and revenues generated are re-invested into infrastructure. The alignment of government agencies and industry partners has also boosted growth and efficiency as resource planning, facility investment and expansion are coordinated and supportive of airline growth strategies and fleet acquisition plans. In addition, greater collaboration, information sharing and use of existing technologies across the aviation value chain is also needed to streamline airport processes, improve the customer experience

and boost retail revenues. Almost 50% of the time a customer spends at an airport is absorbed by cumbersome processes - at an opportunity cost as high as US$35 billion per annum. This lost revenue ultimately stems from a chronic lack of trust and cooperation between airlines, airports and retailers. It’s high time for all parties to acknowledge their inter-dependence and leverage their strengths. This could lead to an environment where the travel retail industry records greater profits, airports fund themselves entirely from non-aeronautical income, and airlines are relieved of the burden of airport charges. In the UK and other mature European markets, limited space, congestion and a stifling regulatory environment have all but capped airport expansion. By contrast, in just three airports in the Middle East, investment in airport infrastructure is expected to reach $39 billion over the next 10 years. And while the formula for change is apparent, a lack of trust often impedes progress. Industry partners must learn to cooperate and coordinate activities to better bring their individual strengths to the table. Governments must adopt policies that support liberalisation and sustainable growth. And both must commit to developing a lasting partnership that recognises the changing face of our industry and seeks the greatest efficiencies from an evolving global network.

July 2010

READER’S LETTERS

READER’S LETTERS Got an opinion? Have your say at... Etihad implements new policy for employee housing in UAE I was interested to read your article on Etihad’s new rules for employee housing in Abu Dhabi. The airline did the right thing. I know plenty of Etihad employees who take the fairly large housing allowance, move to Dubai, share a unit and keep the cash for themselves. Etihad is not a charity and needs to contain its costs. And let’s not forget, housing prices have dropped in Abu Dhabi; not to the extent of Dubai, but they definitely have dropped. There is no longer a reason for people to need to live in Dubai. Stuart James

Wrong impression of change in Etihad’s housing policy There seems to be some negative sentiments about the changes in Etihad’s housing policy. However, it’s not about Etihad wanting to save money, after all the airline is still willing to fork out the full allowance in Abu Dhabi. It is not about having to live in the proximity of Abu Dhabi Airport, because there are no issues with staff living in Dubai reporting late at the airport (whether or not on standby). I believe the only reason that this new policy has been adopted is to keep the money inside Abu Dhabi instead of spilling it out to Dubai. Francis Domenech

Etihad entitled to introduce its own policies for employees All Etihad has done is say that if employees live outside of Abu Dhabi, they will have to pay for the rent themselves. No-one is stopping your average Etihad employee from living in Dubai. Housing allowance is not an entitlement. If Etihad is providing a privilege in the form of extra cash,

July 2010

it is perfectly reasonable for them to dictate the terms on which that extra cash is provided. Paul Coult

Air India needs privatisation Further to your news story on the technical malfunctions of Air India in the Middle East, I think its about time that privitisation kicks in here. This is the only way forward. No matter how much one criticises the government unless drastic action is taken, the story will continue. Douglas Logan

Emirates executive slams government protection claims Following the latest comments from Emirates executive vice chairman Maurice Flanagan that the airline does not receive financial assistance from the government, can we please get over these silly accusations once and for all? Perhaps credit is due for this success story, as opposed to constant whining by losers. Instead of attacking with baseless facts, learn from the best I say. Walid Ansari

Emirates should hail success If you looked at Dubai 25 years ago and thought US$10 million would build one of the world’s most successful legacy carriers, you would have been laughed out of town. Whatever the maths, Emirates is one of the world’s most successful brands, much more appealing than Lufthansa or British Airways or United Airlines, which have all had their share of government help. What Emirates needs to do to dispel the doubt is to simply publish an open set of accounts, full and transparent. Without Emirates, Dubai would not be known in most places, so give the flag carrier the credit it is due. Imran Malik

A case of sour grapes? Most of the complaints about the success of Emirates come from legacy airlines that are weighed down by costs that result from stringent regulators, unionised labour or pension obligation, such as BA and Qantas. Emirates has a number of obvious operational advantages - its home base is a low cost environment, be it staff salaries across the board, costs associated with DXB and DNATA, and the simple fact that they can operate aircraft 24 hours a day whereas European airlines have to ground a significant portion of their fleets between midnight and 6am. This enables EK to work their aircraft harder and thus improve yields. At the end of the day, Emirates is a well-run operation that has succeeded in creating a globally recognised brand. For those who denigrate the airline with accusations of subsidies (hidden or otherwise) it’s either hypocrisy or just sour grapes. Jezinho

Etihad expands management with new senior vice president Congratulations to Roy Kinnear on his appointment as senior vice president of Etihad Crystal Cargo. However, I cannot help but notice that the airline is only seven years old and has over 40 vice presidents. Why so many for such a young airline? United Airlines, which is one of the biggest in the world, has no more then 10. Beginning to wonder why this airline has failed to break even yet. Andy Vetren

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NEWS UPDATE

Airbus responds to A380 criticism with record order from Emirates

AIRLINE OPERATIONS

A month after the A380 was described as a “US$25 billion write-off and act of industrial irresponsibility”, Airbus has announced a record multibillion dollar order for the superjumbo from Middle East customer Emirates Airline. The purchase by the Dubaibased airline for 32 additional A380s was revealed at last month’s Berlin Air Show with a list price of $11.5 billion, which takes the total firm order for the superjumbo to 90 aircraft in total. The news has allowed a triumphant Airbus to reinforce the potential of its A380 model, which was heavily criticised earlier this year by Richard Aboulafia, vice president of aerospace analysis company Teal Group. “There are only a handful of routes you can use the A380 on, and if traffic drops on that route you’re stuck,” he stated at the time. “At best, the A380 is regarded as a $25 billion write-off and an act of industrial irresponsibility.” www.arabiansupplychain.com

Responding to the comments, John Leahy, chief operations officer - customers at Airbus, told Aviation Business that the backing of airlines such as Emirates, Qantas and Singapore Airlines would help to silence the A380’s critics. “I’m sure Emirates and other A380 customers would beg to differ with Teal’s views, but we shouldn’t mistake someone’s unfounded opinion for fact,” he stated. “A380 routes are growing by the months and the facts are that people want to travel on the A380, which is why it has experienced higher occupancy than other aircraft.” The latest agreement was signed by His Highness Sheikh Ahmed Bin Saeed AlMaktoum, chairman and chief executive of Emirates Airline, and Tom Enders, president and CEO of Airbus. “This order, adding to the 58 A380s that were previously ordered by Emirates, affirms our strategy to become a world leading carrier and to further establish Dubai as a central

gateway to worldwide air travel,” said Sheikh Ahmed. “The A380 is our flagship in terms of passenger comfort, innovation, operating and environmental efficiency and revenue generation.” From the delivery of its first A380 in July 2008 to receiving its tenth A380 from the Airbus plant in Hamburg last month, Emirates is now serving eight destinations with the aircraft, including London Heathrow, Toronto, Paris, Jeddah, Sydney, Auckland, Bangkok and Seoul. It has also revealed plans to start A380 services to Beijing from

August, Manchester from September and will return to New York’s John F. Kennedy (JFK) airport in October. “Emirates supported the development of the A380 from the earliest days, a project employing tens of thousands of Europe’s best people and today’s increased order, is the best endorsement I can imagine,” stated Enders. “On behalf of all of us at Airbus, we thank Emirates for their support. The A380 is indeed a remarkable eco-efficient aircraft, a profit generator for airlines and a great flying experience for passengers.”

PROFILE: THE EMIRATES FLEET Emirates, the second largest airline in the world in available seat kilometres, is on track to become one of the largest airlines in the world. In addition to the orders placed last month, Emirates has 48 Airbus A380s, 70 Airbus A350s, 18 Boeing 777-300s and seven Boeing air freighters on order, totalling 143 wide-body aircraft worth more than US$48 billion. In a year where the aviation industry was rocked by the economic downturn, Emirates Airline recently reported its 22nd year of profit, up 416% to close at $964 million (AED3.5 billion) over its 2008-09 profits of $187 million (AED686 million). July 2010

NEWS UPDATE

Air India to upgrade aircraft in GCC AIRLINE OPERATIONS

Air India has confirmed plans to enhance its fleet with newer aircraft on Middle East routes, after experiencing a series of technical malfunctions with its older planes in countries such as Saudi Arabia, Kuwait, Oman and the UAE this year. The national carrier will also deploy a standby aircraft, 24hour call centre and technical support team to address recent concerns from the aviation industry and passengers. “Air India is taking several steps to improve the on-time performance of flights,” stated Arvind Jadhav, chairman of the airline. “Engineering spare

parts are being positioned at various stations, including Dubai, while tie-ups are being finalised with other local airlines and agencies to enable faster rectification of technical snags. A control cell is also being set up to operate round the clock and efficiently mange flight disruptions,” he added. “In addition, flight schedules will be rationalised to improve schedule integrity and keep one aircraft with crew on standby.” Air India and its lowcost arm Air India Express currently operate around 317 flights per week on India-Gulf routes, offering more than 60,000 seats in each direction.

Air India will progressively replace old A320/A310 aircraft on India-Gulf routes

France rejects UAE London-ME budget airline would landing proposal be ‘strong’, predicts BA executive TRANSPORT AGREEMENTS

The French government has rejected an official request to provide airlines based in the United Arab Emirates with a greater number of airport landing slots in Paris, according to a report in the La Tribune last month. The French newspaper stated that Etihad Airways, Emirates Airline and low-cost operator Air Arabia wanted a total of seven new slots in the French capital. The authorities have only agreed to one new landing slot, between Dubai and the city of Lyon, which is based in the Rhône-Alpes region, between Paris and Marseille.

UAE airlines want greater access to Paris

July 2010

AIRLINE OPERATIONS

A low cost long-haul carrier operating between London and the Gulf would be “very strong”, according to a British Airways executive in the Middle East. “In Europe and the UK, we saw huge growth in terms of low cost carriers and I think the Middle East is a very good market for that model, so we might see in the future some developments on that front,” stated Paolo De Renzis, British Airways’ area commercial manager for the Middle East, in relation to the potential for a low cost carrier operating between Europe and the Gulf. Qatar Airways has often spoken about its plans to start operating a low cost carrier if its market share was being threatened by strong demand in the budget travel sector. Earlier this year, CEO Akbar Al Baker said the Dohabased carrier had registered a logo and name as part of its contingency plan for a low

BA’s Paolo De Rensize believes a low cost Dubai-London airline could be viable

cost carrier. While De Renzis confirmed that BA had no plans to launch such a model, he said demand for a LondonDubai low cost operator would be “very strong” in the region. There is certainly room in the market, as a recent report from investment bank UBS found that the Middle East is one of Europe’s biggest destinations and Middle Eastern airlines account for 36% of traffic flow to and from

Europe. The report also found that traffic between the Middle East and Europe is believed to have grown 7.1% in the second quarter of this year. More specifically, the route between Dubai and London was the most popular in the Gulf last year and represented 17% of the combined capacity from the region’s top twenty international routes, operating an average of 1141 passenger flights per week. www.arabiansupplychain.com

NEWS UPDATE

Middle East airlines expected to post first profits since 2005 INDUSTRY STATISTICS

Middle Eastern carriers are expected to post a total profit of US$100 million this year – their first since 2005 – according to a recent trade report from the International Air Transport Association (IATA). The predictions are significantly better than IATA’s global forecast, which indicated that regional carriers would lose around $400 million this year. The trade association claimed its positive outlook for the Middle East was partly due to regional GDP growth of 4.3% outstripping the global average. In addition, Gulf carriers have continued to boost market share through their hubs for long-haul Europe to Asia Pacific traffic. Dubai’s Emirates Airline, the region’s largest carrier, recently posted annual results that massively bucked the global trend. The airline saw net profit rise to $964 million, while revenues rose 0.4% to $11.8 billion. The airline’s chief executive officer Tim Clark forecast profit this year will exceed last year’s figures. “We’re bigger than that this year,” Clark told reporters at the annual meeting of the International Air Transport Association. “We’re well ahead already. Unless something goes wrong, there won’t be a problem.” Meanwhile, James Hogan, chief executive officer of Etihad Airways, stated in March that the national carrier would not be posting a profit this year due to a combination of the economic downturn and the spread of the H1N1 virus last year. However, Hogan said that the Abu Dhabi-based carrier should be in the black in 2011. www.arabiansupplychain.com

Airlines are beneﬁting from a traﬃc rebound that is pushing the industry into the black, stated IATA’s Giovanni Bisignani

The IATA data also revealed that the global airline industry is expected to make a profit of $2.5 billion in 2010, a marked improvement from the previous forecast of a $2.8 billion loss in March. “The global economy is recovering from the depths of the financial crisis much more quickly than could have been anticipated. Airlines are benefiting from a strong traffic rebound that is pushing the industry into the black,” said Giovanni Bisignani, director general and chief executive officer of IATA. “We thought that it would take at least three years to recover the $81 billion (14.3%) drop in revenues in 2009. But the $62 billion top line improvement this year puts us about 75% on the way to precrisis levels,” he added. But it was not all good news, with Bisignani stating that the predicted profit represented a net profit of just 0.5%, a long way from sustainable profitability. In addition, the picture is more glum in certain parts of the world, with Europe now expected to post a $2.8 billion loss. The region has suffered

from sluggish economic growth and also bore the brunt of the highly-publicised ash cloud crisis in April. Meanwhile,

Asia Pacific is expected to post the best overall results, with profits expected to come in at approximately $2.2 billion.

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July 2010

NEWS UPDATE

Air Arabia to launch Jordan venture BUSINESS OPERATIONS

Air Arabia has signed a joint venture with Amman-based investment company Tantash Group to launch a low cost carrier in Jordan. The announcement is the latest in a string of new developments for the airline and follows the recent launch of operations in Alexandria. “We would like to thank the Jordanian Ministry of Transport for granting the support to launch this project. The signing of our new joint venture represents yet another milestone in the ongoing evolution of Air Arabia,” said Adel Ali, CEO of Air Arabia. “At a time when the global and regional economy has

Air Arabia CEO Adel Ali (right) hosts a press conference to launch his joint venture

demonstrated strong signs of sustained recovery, we are confident of the long-term opportunities for the Kingdom’s first low-cost carrier, which

will provide the high-level of service, operational reliability and value-for-money fares that have become hallmarks of the Air Arabia brand,” he added.

The venture will provide direct service to a variety of destinations across the Europe, Middle East and North Africa region from Queen Alia International Airport. “With nearly two decades of experience in Jordan’s travel and tourism sector, Tantash Group, like our partners Air Arabia, is a pioneer in the region’s travel sector,” commented Mazen Tantash, chairman of Tantash Group. “This new partnership therefore represents a unique synergy of skills, experience and management vision, which will provide significant benefits for travellers based in Jordan and across the wider EMEA region,” he added.

Government boosts FlyDubai capital Bahrain Air moves away BUSINESS OPERATIONS

Dubai’s ruler issued a law in June stating the government will more-than-double budget carrier FlyDubai’s capital to US$136.1 million (AED500 million), it has been reported. The decision increases the government-owned airline’s capital from approximately $60 million provided when the carrier was founded in 2008, the government’s media office said in a statement. “We will ensure FlyDubai continues to expand in line

with our stated objectives and we will do our best to ensure the success of our first year continues in the future,” said the airline’s chief executive officer Ghaith al Ghaith in a separate statement. FlyDubai completed its first anniversary of operations last month, with a route network that has reached 16 destinations around the Middle East and neighbouring regions, a fleet of eight Boeing 737-800 aircraft, and almost one million passenger bookings to date.

FlyDubai’s capital will be increased by the government to over US$136 million

July 2010

from low cost business BUSINESS OPERATIONS

Bahrain Air has announced plans to shift away from the low-cost carrier (LCC) model, with a marginal increase in ticket fares for customers. The airline’s commercial operations director Richard Nuttall said Bahrain Air would now adopt a ‘value for money’ model and introduce benefits such as free food on board, free access to premium lounges for premium passengers and the same baggage allowance as regional counterparts. A loyalty programme was also being considered, alongside code shares and alliances with airlines throughout the world. “You need to have a number of factors in place to make a LCC model work. These include web-based bookings, point-to-point operations and flying to secondary airports,” he stated. “Bahrain Air had a close look at the LCC model and found that we do not fit into that bracket in this part of

Bahrain Air is ‘value for money’ carrier

the world. We had to, therefore, reposition ourselves. As part of the new look, we have started offering all facilities offered in any other regular airline, but at a significantly less cost. On the other hand, our costs will now be marginally more than earlier but in some cases, these would be the same as before.” The airline now offers 120 economy and 12 premium seats on an Airbus A319, as well as 150 economy and 12 premium seats on an Airbus A320. “Bahrain Air is looking to expand its network in the near future and we are considering more destinations in India,” added Nuttall. “These will include locations in the north and south of the country.” www.arabiansupplychain.com

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NEWS UPDATE

DWC passenger launch in March 2011 AIRPORT OPERATIONS

Dubai’s newest airport, Al Maktoum International, will begin passenger operations in March next year, according to one of the project’s senior executives. “The planning date is spring of 2011 – so we’re looking at the end of March for the start of passenger flights,” stated Dubai World Central vice president for cargo and logistics Andrew Walsh. “Right now, the passenger terminal is in the final stages of fit-out. Once we’ve got the cargo terminal open and the operations are settled, we’ll move into the operational readiness process for the passenger terminal through the later part of this year and the early part of next year.” Al Maktoum International, the centrepiece of the US$33 billion Dubai World Central

Airlines will not be forced to move from Dubai International, states Andrew Walsh

megaproject, is planned to be the world’s largest airport when it is fully completed. The five-runway airport will eventually be able to handle 160 million passengers a year, up from the previously projected 120 million, as

well as 12 million tonnes of cargo. As yet, there has been no clarification as to which carriers will operate from the new passenger terminal, but Walsh said that the facility itself was probably designed more for regional carriers.

“It’s an all-bus operation and there are no jet bridges,” the executive explained. “It’s a facility that’s about twice the size of Terminal 2 and can handle five to seven million passengers. So the ‘right fit’ would be to get a number of regional operators - as well as potentially a couple of longhaul operators - because clearly one of the aspects they want is a hub carrier in place so they can exchange feed.” But Walsh confirmed that no airlines would be forced to shift current operations from Dubai International Airport to the Jebel Ali project. “We’ve had a very clear direction from His Highness [Sheikh Ahmed, chairman of Dubai Airports] that we won’t force anyone to move,” Walsh commented. “So it’s going to be the carriers’ choice to be there.”

Saudi Arabia to build airport near JEC Saudi Arabian Airlines

warehouse destroyed AIRLINE OPERATIONS

KSA’s latest airport will be tendered for developers in 2011 after design completion

AIRPORT OPERATIONS

Saudi Arabia will develop an airport near Jazan Economic City to handle three million passengers a year, the General Authority of Civil Aviation confirmed last month. The multi-million dollar facility, to be named after King July 2010

Abdullah, will be tendered for developers next year after the design is completed. The authority plans to spend between US$10 billion and $20 billion on developing and upgrading airports by 2020, with private investors set to contribute up to $10 billion.

A warehouse facility operated by Saudi Arabia Airlines was damaged by a large-scale fire in northern Jeddah last month. The blaze was controlled by a team of 13 civil defence teams within four hours, despite the impact of windy conditions. “The fire had started inside a warehouse north of King Abdulaziz International Airport in Jeddah, which belonged to Saudi Arabian Airlines,” explained Captain Abdullah Al-Amiri, Civil Defence spokesperson. “The blaze began in the afternoon and quickly spread in the warehouse that measured 18,000 square metres.” The facility contained a range of spare parts for the national carrier. “Saudi Arabian Airlines will make

Spare parts were damaged by the blaze

every effort not to be affected by this accident,” responded Abdullah Al-Ajhar, assistant director general of public relations for Saudi Arabian Airlines. “The spare parts used for the aircraft under service and new aircraft have not at all been affected by the fire because they were stored at a safe place.” An investigation into the incident has since been launched by the airline. www.arabiansupplychain.com

NEWS UPDATE

UAE considers further aircraft bans CIVIL AVIATION

The UAE’s General Civil Aviation Authority (GCAA) has revealed that there is a list of other aircraft which it is considering barring from the country’s skies, following its ban three months ago of the Antonov 12. “Yes, there are some other types, which I cannot disclose now,” said GCAA director general Saif Mohammed Al Suwaidi. “But yes, we have lists of those old aircraft that we are looking at. Of course, if we reach the same concerns as we did with the An-12, we will do the same.”

The Ukrainian-built An12 freighter was issued with a temporary ban in January 2009 due to concerns over its safety record, and was barred again from 1st March this year. The GCAA said that since the time of the initial ban it had set up a technical committee to conduct an audit on the Antonov Design Bureau, which determines the airworthiness of the type in the Ukraine. “It is a permanent ban,” confirmed Al Suwaidi. “We are convinced that this aircraft should not use our airspace because it is very old, it is not maintained as it should

Emirates SkyCargo appoints Asia GSA as sales agent in Cambodia AIRFREIGHT

Emirates SkyCargo has expanded its operations to Cambodia after a surge in demand for airfreight services from the southeast Asian nation. The carrier has also appointed Asia GSA as its sales agent in Cambodia. “Our frequent connections to Cambodia’s key export markets, such as the US, UK and Germany, means that producers can rest easy in the knowledge that their goods will reach their customers swiftly and securely,” stated Ram Menen, Emirates’ divisional vice president of cargo. “And our partnership with Asia GSA makes it even easier for them to capitalise on our network.”

As Emirates does not operate its own flights into Cambodia, cargo – predominantly garments, textiles and shoes – will be flown to nearby Bangkok and Kuala Lumpur, from where Emirates SkyCargo operates 28 and 21 flights a week to Dubai respectively. From Dubai goods are shipped onward to more than 100 destinations around the globe. “Emirates SkyCargo is renowned the world over for the quality of its service,” said Simon Ang, Asia GSA president. “We are proud that, through our new affiliation, Asia GSA is able to bring the services of this muchlauded international airline to Cambodian shippers.”

Oﬃcials from Emirates SkyCargo and Asia GSA sign the Cambodia partnership www.arabiansupplychain.com

be and there is currently no manufacturer support.” Although the GCAA has not revealed which aircraft it is considering whether to ban, speculation will centre on the various types of ‘Soviet-era’ cargo aircraft that are utilised either by operators based in the UAE, or who use the country as a transit point to deliver goods to other destinations. “Since the beginning of last year, we have started a campaign of clearing up our airspace from those operators that do not respect our regulations or international regulation, and do not maintain

Saif Mohammed Al Suwaidi from GCAA

their aircraft,” Al Suwaidi added. “I think we have the total right and the responsibility towards our society to ensure the safety of the aircraft using our airspace.”

Dnata’s Plane Handling returns to Cargo 2000 AIRFREIGHT

Plane Handling, which handles 320,000 tonnes of cargo a year for over 30 airlines in the UK, has rejoined Cargo 2000. The company was formerly a member through the Aviance alliance, but has now joined in its own right following its acquisition by Dnata, the Dubai-based international ground handler. “We believe that Cargo 2000 offers a true industry benchmark for cargo handling performance,” said Paul Williams, commercial director of Plane Handling. “A number of our handled carriers are already members, so it is key that we support them and at the same time measure and continually look to improve upon our own performance.” Plane Handling currently handles 20% of the total air cargo throughput at London Heathrow and 20% of freight moving through Manchester Airport. The company also provides ramp, passenger and transport services.

Lothar Moehle welcomes new member

“We are delighted that Plane Handling’s previous experience of Cargo 2000 has encouraged the company to come back following its change of ownership,” commented Lothar Moehle, regional director for Cargo 2000. “Many of Plane Handling’s customers are themselves active members of Cargo 2000 and they will no doubt take great confidence from knowing they have a handling partner that shares their commitment to quality through performance measurement and improvement,” he added. July 2010

NEWS UPDATE

Airline incident report A monthly summary of the latest airline accidents and other aircraft-related incidents that have occurred in the Middle East and throughout the world Emirates passenger dies on Dubai-Bangkok flight DATE: 5th June 2010 A 66-year-old German national died aboard an Emirates Airline plane on route to Dubai from Bangkok on 5th June 2010 afternoon, forcing a diversion to New Delhi’s Indira Gandhi International Airport. The pilot of Flight EK375 declared a medical emergency after the passenger reportedly stopped breathing. The plane was safely landed at Indira Gandhi International Airport at around 12:50pm, where medical crew were

Saudia plane returned to Damman after malfunction DATE: 7th June 2010 Saudi Arabian Airlines was forced to return a Cochin-bound flight back to King Fahd International Airport in Dammam on 7th June 2010 morning, following technical difficulties on the aircraft. Pilots were alerted about the malfunction by the flight instruments around an hour into the flight, prompting the return

July 2010

waiting. However, the passenger was declared dead on arrival by a local doctor. “EK375 BangkokDubai on 5th June 2010 was diverted to New Delhi’s Indira Gandhi International Airport because of a medical emergency onboard,” a spokesperson from Emirates Airline later conﬁrmed in a statement. “On arrival in Delhi, one of the passengers, a 66-year-old German national, was declared deceased. Emirates has co-operated fully with the airport authorities and extends its sincere condolences to the family of the deceased passenger.”

Cyclone Phet forces Emirates pilots to u-turn their aircraft DATE: 6th June 2010 The impact of Cyclone Phet forced Emirates Airline to abandon a flight to Pakistan on 6th June 2010. A spokesperson for the Dubaibased airline confirmed that flight EK606, which was travelling from Dubai to Karachi, had to return to the emirate after it was unable to land in Karachi due to adverse weather conditions. “The safety of our passengers and crew is of the highest importance and will not be compromised,” explained the spokesperson.

to Dammam. Abdullah Alajhar, a spokesman for Saudi Arabian Airlines, confirmed the incident and said the flight took off after the technical snags were sorted out. According to a passenger on the plane, it took nearly seven hours for the flight to be ready for take off. “We were asked to deplane when it landed at around 4:30am. We then waited for nearly seven hours before the flight took off again,” he said.

Aeroflot and Alitalia aircraft in conflict near Venice DATE: 7th June 2010 Italy’s National Agency for Flight Safety has launched an investigation after a conflict was experienced between an Aeroflot A321-200 and Alitalia McDonnell Douglas MD-82 near Venice’s Tessera Airport. The agency is currently collecting evidence to reconstruct the dynamics of the event, which it Heart attack victim dies on is treating as a serious incident, Oman Air flight DATE: 10th June 2010 according to media reports. Oman Air pilots were forced to divert their flight from Frankfurt/ United Airlines flight returns Main (Germany) to Muscat to JFK after medical incident (Oman) on 10th June 2010, after DATE: 7th June 2010 a passenger suffered symptoms A United Airlines flight to San of a heart attack and fainted. The Francisco was leaving New York’s Airbus A330-300 was travelling JFK airport, when a passenger over the Black Sea, when a 63suffered the symptoms of a heart year old male passenger required attack, around ten minutes into medical assistance. The plane the journey. The Boeing 757-200 was diverted to Samsun in was promptly returned to the Turkey, although the passenger airport and landed approximately was later pronounced dead. The 30 minutes after departure, flight resumed its journey to although the passenger was Muscat and arrived with a fivepronounced dead. hour delay.

www.arabiansupplychain.com

NEWS UPDATE

Lufthansa ‘air rage’ passenger arrested in Canada DATE: 10th June 2010

Smoke smell halts Greecebound Continental flight DATE: 11th June 2010 Continental Airlines has confirmed that pilots on a Greece-bound flight made an emergency landing in Boston after passengers reported smelling smoke in the cabin. The Houston-based airline’s spokesperson, Andrew Ferraro, said Continental Flight 104 to Athens was diverted to Logan

International Airport on 11th June 2010 for safety reasons. The Boeing 767-400, which had 220 passengers and 13 crew on board at the time of the incident, landed without incident. A replacement plane was later dispatched by the airline, reaching Athens with a total delay of seven hours. An investigation has since been launched to discover the cause of the smoke odour.

A passenger travelling from Mexico City to Frankfurt with Lufthansa was arrested last month, following a reported ‘air rage’ incident in which he shouted, swore and ﬁnally urinated in the aisle of a plane. The Boeing 747-200 had to be diverted to Newfoundland and Labrador in Canada after the incident, according to media reports. Pilots were able to land the plane safely and the passenger was taken into custody by Canadian police. 45-year-old Olaf Sverri Peterson was charged with engaging in behaviour that endangered a plane in ﬂight, public disturbance, public indecency and interfering with the lawful use of public property.

Emirates engine shut down on Durban ﬂight DATE: 12th June 2010 Emirates was forced to take action on ﬂight EK776 from Durban to Dubai on 12th June 2010 after noticing low oil pressure on the Airbus A330-200. In response, pilots had to shut the right-hand engine on the

aircraft and return to Durban King Shaka Airport around 35 minutes after the ﬂight’s departure. According to a report by the Aviation Herald website, a replacement Airbus A330-200 was dispatched to Durban the following day and reached Dubai on Sunday 13th June with a total delay of 27.5 hours.

Tyres on Air India A320 deflate soon after landing DATE: 15th June 2010 Officials at New Delhi’s Indira Gandhi International Airport have confirmed an Air India plane malfunction that occurred on 15th June 2010, when two wheels of the left landing gear on an Airbus A320 deflated soon after it landed at the airport. The Mumbai-Bhopal-Indore-Delhi flight had 100 passengers and six crew members on board. “The Air India flight IC-133 landed on Runway 29 around 11:00am, and was on its way to parking bay

12 when ground staﬀ noticed Rattling door forces Ethiopian plane to return to Beirut sparks from the rear wheels and DATE: 17th June 2010 alerted the pilot. The pilot had to immediately apply brakes and the passengers were asked to deplane,” said a source at the IGI airport. Crew members said the landing made by the pilot was perfect and no emergency announcement was made beforehand. “It was only when the aircraft was taxiing towards the parking bay that the ground staﬀ outside was seen shouting and the aircraft stopped with a jerk,” a crew member told the Indian Express newspaper.

and six crew members suffered a bird hit on 16th June 2010 while landing at the city airport. The Mumbai-Indore-BhopalDelhi flight IC-133 was landing at the Devi Ahilyabai Airport when a bird hit the aircraft, airport director Vivek Upadhyaya confirmed. The pilot was able Air India domestic flight suffers bird hit while landing to safely land the aircraft and DATE: 16th June 2010 the flight was resumed after An Air India plane from Mumbai engineers inspected the aircraft to Delhi with 140 passengers and found it airworthy.

www.arabiansupplychain.com

An Ethiopian Airlines plane was forced to return to Lebanon after takeoff early on 17th June 2010 when crew noticed a door was rattling, a Beirut airport official has confirmed. “The door had not been closed properly and some five minutes after takeoff, the pilot was able to return and land in Beirut safely and without having to signal an emergency,” the official told AFP on condition of anonymity. The Boeing 737-800 - the same model as an Ethiopian Airlines jet which crashed off the Lebanese coast in January, killing all 90 on board - took off at around 4:30am (0130 GMT) bound for Addis Ababa. “The flight was delayed another six hours before it was cleared for takeoff,” the official added.

July 2010

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Stowaway arrested on Sheikh’s Boeing 747 A stowaway received his 15 minutes of fame last month, after surviving a one hour 40 minute flight from Vienna to London inside the wheel compartment of a Boeing 747, which is reportedly owned by Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai and prime minister of the United Arab Emirates. The 20-year-old Romanian man, who has not been named, was unhurt despite being exposed to temperatures as low as -41oC inside the jumbo jet’s undercarriage, according to a report in The Telegraph. He was arrested at Heathrow airport and cautioned for entering the United Kingdom without a passport, although Scotland Yard has since released him. An investigation has now been launched by Austrian police into how the man entered the runway at Vienna’s Schwechat airport and reached for the nearest plane, parked near a building site. The aircraft, operated by Dubai Air Wing, the private fleet used by the Dubai royal family, had been sitting on the apron for three days after flying in from Geneva, stated The Telegraph report. It is thought that he survived because the plane was forced to fly lower than usual – at about 33,000ft – because of turbulence. “He must be crazy to do such a dangerous thing,” stated Heinz Resch, the Schwechat assistant police chief. “He told the British police that he didn’t want to stay in Vienna any longer without labour, he was searching for labour anywhere. He didn’t actually know the route of the aircraft.”

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Oman Air celebrates new Pakistan flights The national carrier hosted a series of gala events last month to celebrate the launch of flights to Lahore and Islamabad, with hundreds of VIPs in attendance.

Top 8 Worst Airlines For Losing Luggage British insurance company LV has published the results of its survey on the ‘worst airlines for losing luggage’, which questioned 2000 flyers across the United Kingdom.

AVIATION BUSINESS SPOT POLL

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Such incidents are common in the aviation sector www.arabiansupplychain.com

COVER STORY FLYDUBAI ANNIVERSARY

Flying high With nearly one million passenger bookings to date, FlyDubai looks back on the success of its first year of operations as a low cost carrier.

s the latest entrant in the Middle East’s low cost carrier (LCC) market, FlyDubai completed its first anniversary of operations last month, with a route network that has now reached 16 destinations around the world, a fleet of nine Boeing 737-800 aircraft, and almost one million passenger bookings to date. The airline was actually established in March 2008 by the Government of Dubai, with the ambition to make travelling within a four-and-a-half hour flight radius of Dubai easier, more accessible and more affordable for passengers. That dream became a reality when FlyDubai’s first flight took off to Beirut on 1st June 2009 and just 12 months later, traffic on the Dubai-Beirut route has increased by 33%, which chief executive officer Ghaith Al

Ghaith believes has highlighted a growing level of demand for the airline’s “simple and uncomplicated” low fares. “We are very proud of what we have achieved this year,” he states. “We have a taken a theory and turned it into a reality and that reality is a product that people really like.” Of course, FlyDubai has changed the market in other ways too, such as giving the option to purchase checked baggage, seats and meals. These extras have been very popular, with 83% of passengers purchasing an item of food or drink, 30% of passengers paying to select their seat and 56% paying for checked baggage. At the same time, around 44% of people travelled with only hand luggage, allowing them to benefit from the lowest fares. “These figures indicate how well this different way of travelling has been accepted in the Middle East market,” continues Al Ghaith. In the first year, FlyDubai operated almost 8000 flights and 85% of those

We have a taken a theory and turned it into a reality and that reality is a product that people really like

HH Sheikh Ahmed bin Saeed al Maktoum and Ghaith Al Ghaith mark anniversary with FlyDubai cabin crew

July 2010

departed on time. In May alone, there were more than 1000 flights and 92% of them departed on time, which suggests that FlyDubai’s efforts to constantly improve performance are making an impact. According to Al Ghaith, the airline’s fleet of eight brand new Boeing 737-800 NG aircraft are being worked hard to ensure they are kept in the air as much as possible. The year end average aircraft utilisation is expected to be around 14-and-a-half hours, which would make FlyDubai the industry leader for an airline operating a 737-800. In the coming months, the budget carrier is expecting to receive a further five aircraft and will fly to over 25 destinations by the end of this year, further strengthening its network across the region. The most recent addition was flights to the Sri Lankan capital, Colombo, which started on 23rd June 2010. “We started 2010 with a determination to add new and exciting destinations to our route network. With our recent announcements of destinations as far apart as Istanbul, Lucknow, Colombo and Karachi, we have delivered on our promise to establish ourselves as an affordable, accessible airline with a professional service and a network,” says Al Ghaith. “Sri Lanka is a great destination for us to have in our network, and once again we are complementing the existing services on the route. The more options for passengers the better and we believe our simple, low cost service will be very popular with the 300,000 Sri Lankans expats living in the UAE, as well as tourists looking for an affordable tropical getaway.” There has been tremendous growth in staff numbers too. FlyDubai currently employs more than 500 staff from almost 70 countries, including over 100 pilots and more than 200 cabin crew. “We have big plans for the future and we hope to continue the success that we have experienced in our first year,” concludes Al Ghaith.

www.arabiansupplychain.com

COVER STORY FLYDUBAI ANNIVERSARY

TIME LINE: THE HISTORY OF FLYDUBAI JUNE 2008 - Dubai’s ﬁrst low cost airline was named FlyDubai HH Sheikh Mohammed bin Rashid AlMaktoum, vice president of the UAE and prime minister of Dubai, approved the name FlyDubai from a shortlist presented by HH Sheikh Ahmed bin Saeed Al-Maktoum, chairman of the low-cost airline. “FlyDubai is a simple, yet powerful call to action,” he stated. “It makes an immediate link to our core business, which is providing no-frills ﬂights to bring people to and from Dubai.”

MAY 2009 - FlyDubai launches more routes and gets green light for take off Just weeks after the launch of its first routes to Beirut and Amman, FlyDubai announced that daily flights to Damascus would start from 8th June 2009 and daily flights to Alexandria from 9th June 2009. Also in the same month, the airline received its Air Operators Certificate from the General Civil Aviation Authority (GCAA). “The award of the operator’s certificate is the green light for FlyDubai to start its commercial operations,” said Ghaith Al Ghaith, CEO of FlyDubai. “A little more than twelve months ago, the FlyDubai venture was just a dream, with even the company’s name yet to be coined. With the licence now granted, the airline has become a reality and it is thanks to the incredible effort from everyone involved that the concept is getting off the ground.”

JULY 2008 - FlyDubai makes aircraft order at Farnborough Air Show FlyDubai announced an historic order for 54 Next-Generation 737-800 aircraft from Boeing. His Highness Sheikh Ahmed Bin Saeed Al-Maktoum, chairman of FlyDubai, signed the deal. “I am delighted to make this announcement on behalf of FlyDubai,” he said. “This aircraft is ideally suited to our core business, which is providing affordable, efficient and flexible options for people.” MARCH 2009 - DXB Terminal 2 is named as the new home for FlyDubai FlyDubai revealed plans to commence operations from a modernised Terminal 2 at Dubai International Airport later in the year. “In Terminal 2 we have found an ideal home which will allow us to bring efficiencies to our operations and a range of facilities and benefits to our customers,” stated the airline’s CEO Ghaith Al Ghaith.

MAY 2009 - FlyDubai’s first class of cabin crew graduates FlyDubai’s inaugural class of cabin crew were cleared for take-off. The 22 flight attendants, which included seven men and 15 women, graduated from an intensive training programme that tested their skills in first-aid, security, safety and service. Among the first set of graduates was a medical professional, a number with previous top-level flight attendant experience and several who come from a five-star hotel background. Languages spoken by the crew included Arabic, English, Swahili, Russian, Hindi and Tamil. “FlyDubai would like to congratulate the company’s first set of graduating cabin crew personnel, who have proved throughout their training program their commitment to providing the highest standards of customer care,” said APRIL 2009 - First routes are revealed Ghaith Al Ghaith, CEO of FlyDubai. “We are FlyDubai confirmed 1st June 2009 as the very proud of our first cabin crew and are start date for a daily service to Beirut in confident they will ensure our passengers Lebanon and from 2nd June for a daily enjoy the highest levels of service and comfort service to Amman in Jordan. possible on board FlyDubai.”

www.arabiansupplychain.com

JUNE 2009 - FlyDubai makes first flight FlyDubai took to the skies on its inaugural commercial flight. The flight, which took off from Dubai International Airport’s Terminal 2 bound for Rafic Hariri International Airport in Beirut, signified an opening of the skies for low cost travel to and from the emirate. FlyDubai chairman, Sheikh Ahmed Bin Saeed Al Maktoum, was present to bid farewell to flight number FZ-157, which carried 189 passengers. “This is an historic moment. Today, we have not only witnessed FlyDubai’s first commercial flight, but we have also seen a new chapter in the history of aviation in the UAE.” In the same month, FlyDubai also took off to Amman, Damascus and Alexandria, whiel announcing its fifth destination - Aleppo - together with a trio of Indian flights to Lucknow, Coimbatore and Chandigarh. JULY 2009 - FlyDubai agrees US$320m aircraft financing deal with GE Capital FlyDubai agreed a deal to finance four Boeing 737-800 aircraft (worth $320m), with GE Capital Aviation Services (GECAS). “This is a significant deal for FlyDubai as it is the first financing that we have secured from outside the UAE,” stated FlyDubai CEO Ghaith Al Ghaith. “This deal ensures our financing needs for the rest of 2009, when we will receive a further four aircraft from Boeing. This will bring our fleet to a total of six aircraft by the end of the year and allows FlyDubai to operate to around 14 destinations.” AUGUST 2009 - FlyDubai strengthens its presence in the African market FlyDubai revealed that it was set to expand its network in Africa with the announcement of flights to Djibouti from 1st September 2009. “Djibouti is an important trading destination with established commercial links with Dubai, most notably through DP World, which operates the Port of Djibouti,” explained Ghaith Al Ghaith, CEO of FlyDubai. “There are very few direct flights from Djibouti to Dubai, so we anticipate strong demand from both the business and leisure markets.”

July 2010

COVER STORY FLYDUBAI ANNIVERSARY

OCTOBER 2009 - FlyDubai names Doha as first GCC destination FlyDubai confirmed it was to begin an intraGCC service to the Qatari capital Doha. The twice daily flights, which would begin in the same month, were the first direct service between Dubai and Qatar to be operated by a low cost airline. H.E. Abdul Aziz Mohd. Al-Noaimi, chairman of Qatar Civil Aviation Authority welcomed the new service. “FlyDubai will be a great addition to the existing flight schedule between Doha and Dubai, as it will give so many more people another option when travelling,” he said. “Doha and Dubai are both great examples of successful cities that have gained international recognition. This new service will strengthen our links and help us both maintain our growth well into the future.”

NOVEMBER 2009 - FlyDubai celebrates first appearance at the Dubai Airshow FlyDubai hailed the 2009 Dubai Airshow as a resounding success. The highlight was a visit to the airline’s newest Boeing 737-800 aircraft by His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the UAE and ruler of Dubai, together with His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman of FlyDubai on the show’s opening day. This was followed by a raft of announcements starting with the two aircraft ﬁnancing deals worth US$160m. “We have been able to show the international aviation community how much we have achieved in such a short space of time,” said Ghaith Al Ghaith, CEO of FlyDubai. DECEMBER 2009 - Sixth aircraft arrives on schedule for FlyDubai FlyDubai took delivery of its sixth aircraft in a little over six months. The newest Boeing 737-800NG began service with the inaugural Bahrain ﬂight on 13th December and also operated the new Kathmandu route on 15th December - FlyDubai’s tenth and eleventh destinations. The airline’s next aircraft was due in March 2010.

July 2010

MARCH 2010 - FlyDubai doubles GCC network to four destinations FlyDubai announced a brace of GCC routes, with Kuwait City and Muscat bringing the airline’s network to thirteen routes. The Muscat flights began on 28th March, while Kuwait flights started on 30th March. “A strong GCC network is at the heart of FlyDubai’s strategy in this region, so Kuwait and Oman were natural choices to be our next two destinations,” said Ghaith Al Ghaith, CEO of FlyDubai. “Both are old friends of the UAE and we are deeply committed to strengthening our links further by providing the friendly low cost air service with the lowest prices that FlyDubai is becoming known for. We have worked closely with the authorities in both countries and we are very appreciative of the help and support they have given us. We look forward to continuing to work with them to provide a service that will be of benefit to all parties.”

APRIL 2010 - FlyDubai announces an additional four new routes Just two weeks after launching ﬂights to Muscat and Kuwait City, FlyDubai announced a further four routes - Assiut and Luxor in Egypt, Istanbul in Turkey and Latakia in Syria, bringing the airline’s network to 18 destinations. “These routes are excellent examples of the type of destinations FlyDubai is committed to serving,” commented Ghaith Al Ghaith, CEO of FlyDubai,. “There is such a demand for short breaks to these locations in general that we anticipate strong demand for our quality, low cost service.”

MAY 2010 - FlyDubai launches its first direct flights to Kabul FlyDubai launched its first direct flights to the Afghan capital on 17th May, followed by Karachi in Pakistan and Lucknow in India. “FlyDubai’s inaugural flight to Kabul speaks volumes about the way in which we are growing the region’s aviation sector,” said CEO Ghaith Al Ghaith. “Meanwhile, there are currently more than 700,000 expatriates from Pakistan and one million from India working in the UAE and an extra opportunity for them to travel back home has to be good news with these Karachi and Lucknow flights.”

JUNE 2010 - FlyDubai lands in India and announces latest addition to fleet FlyDubai landed its first Indian destination in the northeast city of Lucknow. Also in the same month, the airline’s ninth Boeing 737800NG touched down at Dubai International Airport Terminal 2. The brand new aircraft will go straight into service on the latest FlyDubai route, the Dubai-Istanbul service. “The arrival of a ninth aircraft is testament to the planning and hard work of the team and shows FlyDubai’s dedication to providing the highest standards of safety, reliability and quality by investing in the expansion of our fleet of next generation aircraft,” said chief executive officer Ghaith Al Ghaith.

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AVIATION SIMULATORS

Simulator success

Training simulators have captured the imagination of the Middle East’s aviation industry. But do they really represent value for money?

viation simulators have long been a favourite for the gaming industry, as millions of children and adults alike spend hours struggling to land an aircraft safely, whether it be at a virtual airport or enemy territory. For the real aviation professionals, the popularity of simulators has also been on the rise, with more and more airlines turning to the use of these virtual machines to recreate flying scenarios to train their pilots. With the technological advances moving at such a fast pace, the most up-to-date simulators are mind-blowingly advanced July 2010

and realistic – and equally expensive. But as the Middle East’s competitive aviation industry continues to channel millions of dollars into this training niche, does this considerable investment really represent value for money? As one of the heavyweights in the world of full-flight simulators, global manufacturer CAE has deployed more than 1000 simulators around the world, and the Middle East is undoubtedly one of its growing markets. “The Middle East continues to be a growth region for aviation of all types, and therefore the requirements for training continue to expand in the region,” explains Camille Mariamo, managing director of Emirates CAE Flight Training (ECFT), a joint venture between CAE and Dubai-

based Emirates Group to provide a training facility for commercial airlines and business jet operators. Mariamo maintains that simulationbased training plays a vital role in the development of pilots, technicians and cabin crew. “We believe that leveraging simulation-based technologies brings safety, efficiency and productivity improvements for aviation customers,” he explains. “We have invested a significant amount in research and development so that our suite of integrated, simulationbased products continues to offer more technology and capability at lower cost.” Just last month, CAE announced the sale of two full-flight simulators (FFS) to Saudi Arabian Airlines and ECFT in the region, and a third to Bombardier, www.arabiansupplychain.com

AVIATION SIMULATORS

Simulation can provide the training experiences that are not practical or safe to attempt in an aircraft with the three orders valued at a staggering total list price of nearly US$50 million. Not surprisingly, Mariamo believes that despite this enormous cost, simulation-based training remains ‘most definitely’ a solid and wise investment. “It is less expensive than training in the aircraft itself. More importantly, simulation can provide the types of training experiences which are not practical or safe to attempt in an aircraft,” he argues. “Pilots can be presented with equipment malfunctions and realistic emergencies and can also be immersed in a wide range of weather conditions in the complete safety of the simulator.” His partners at the Emirates Group would agree. As part of the airline’s own training programme, Emirates uses several types of training devices, ranging from computer-based trainers to fixed-based simulators as well as full-flight simulators. “The primary objective of any airline when providing training to their pilots is to provide them with the Knowledge, Skills and Attitude (KSA) required for him/her to operate an aircraft safely and efficiently as a crew member, in normal and non-normal conditions,” says Captain Martin Mahoney, senior vice president flight training, Emirates Group. The steps which go into building up an Emirates simulation are tailored to

the airline. When aircraft manufacturers and airlines design a course, a complete breakdown and definition of the tasks and sub-tasks required to operate an aircraft from point A to point B has to be formulated by a team of experts, taking into account operations in normal and non-normal conditions. “The appropriate type and level of simulation device is applied to the task being tested in order to assess the required KSA,” Mahoney continues. “For example, if one was to be trained on how to start an engine, a fixed-based simulator would be deemed sufficient. However, if we wanted to test how to handle an aircraft in an engine failure scenario, a full-flight simulator would be used.” Like Mariamo, Mahoney agrees that, in general, simulators play an important role in providing a realistic environment appropriate to the level of task being trained, in the most cost-effective and safe way possible. “The latest full-flight simulators provide a high level of fidelity in both physical characteristics and sensory cues - which include things like sound, motion and visuals systems,” he says. “At Emirates, all nine full-flight simulators are classified as Level D simulators, allowing the highest level of realism. So much so that regulations

An increasing number of airlines in the Middle East are turning to virtual machines for the training of pilots www.arabiansupplychain.com

allow an experienced pilot to complete all conversion training on this type of simulator, before resuming normal line operations on a real aircraft.” With so many positives in the use of simulators in flight training, surely there must be some disadvantages. Mahoney does not think so. Whilst he admits that simulators are obviously an expensive resource to any airline, in his view the technological advances made in the latest full-flight simulators make it near impossible to find any real disadvantages. “With the technology available today and the level of realism that simulators provide, the use of a full-flight simulator for pilot training, (as opposed to training on a real aircraft), from a financial and safety point of view cannot be over stated,” he emphasises. The popularity in the use of simulators has not only been attracting the airlines, but also finding fans amongst the independent aviation training academies. Bahrain-based Gulf Aviation Academy (GAA) has also recently purchased the CAE 7000 Series Embraer 170/190 full-flight simulator (FFS) to be delivered to its new training centre in Bahrain later this year.

Simulators provide a realistic aircraft environment

July 2010

AVIATION SIMULATORS

MANUFACTURER CASE STUDY: CAE Providing simulation and modelling technologies and integrated training solutions, CAE has the largest installed base of civil and military full-flight simulators and training devices. “Our customers include several airlines and flight training centres who use our advanced technology full-flight simulators (FFS), CAE Simfinity integrated procedures trainers (IPT), Airbus pilot transition trainers, flight training devices, flight management system trainers, virtual maintenance trainers, and online self-paced e-Learning courses, “ says Camille Mariamo, managing director of Emirates CAE Flight Training. In 2010, CAE sales have included the CAE 7000 Series Airbus A330/A340 convertible FFS and an enhanced CAE Simfinity Airbus Pilot Transition (APT) trainer to Saudi Arabian Airlines (SVA); a CAE 7000 Series full-flight simulator representing the Boeing 777-300ER aircraft and a CAE Simfinity IPT for the Boeing 737NG for Turkish Airlines (THY); and a CAE 7000 Series Embraer

“The continued evolution of simulator technologies has significantly reduced training requirements in real aircraft, saving time and money and providing a safer, more suitable learning environment than the cockpit of an airplane,” says Captain Ali Sulaiman, chief operating

170/190 FFS for the Gulf Aviation Academy’s new training centre in Bahrain. “CAE also signed a contract with EmiratesCAE Flight Training (ECFT) for the purchase of a CAE 7000 Series Dassault Falcon 900EX/2000EX FFS. The simulator will be ready for training in Dubai in the first quarter of 2011,” adds Mariamo. ECFT is jointly operated by the Emirates Group and CAE and is located close to Dubai International Airport. Approved by both the JAA and the FAA, the facility offers training to commercial airlines, business jet and civil helicopter operators in the Middle East, Europe, Africa, and Asia. In the past year, ECFT has also added simulators for the Hawker 850 XPi and Bombardier Global Express. The 14-bay centre in Dubai currently houses 12 fullflight simulators: two Airbus A320/ACJs, an Airbus A330/340, a Boeing 777, two Boeing 737 NG/BBJs, Bombardier Global Express, a Gulfstream IV, a Gulfstream V/550, a Hawker 800/800XP, a Hawker 800XPi (Pro Line 21),

officer at Gulf Aviation Academy (GAA). As well as the benefits of being taught unusual or emergency procedures safely, he says that simulator training provides a quiet, disruption-free learning environment, enabling more effective communication and for the instructor

UAE-based Spatial Composite Solutions manufactures simulators specifically for training cabin crew

July 2010

and a Bell 412 helicopter simulator. “One development we are excited about at CAE is a family of new helicopter mission simulators for the previously underserved civil helicopter market. The first CAE 3000 Series simulator will be available for training this summer,” says Mariamo. CAE is also the first to incorporate artificially intelligent human form and moving vehicle dynamic simulation for civil helicopter training tasks and mission scenarios.

and trainee to concentrate on the task at hand. “The simulator can be frozen mid task/manoeuvre to allow for discussion or evaluation, and specific lessons can be practiced many times within a short period of time,” he adds. In particular, like his counterparts, Sulaiman is highly impressed by the ‘extraordinary’ level of reality that modern flight simulators possess. “Contemporary simulators are practically identical to the real aircraft; once inside, trainees forget that they are in a simulator and pilot intuition kicks in,” he enthuses. “The motion system has also changed from the old hydraulic motion system to a new electrical motion system which has made the simulators even more realistic and reduced the maintenance costs.” Infact, GAA has been so happy with its simulators that it has expanded their use to also cover its non-aviation programmes. For example, the academy recently devised a leadership and team building programme for a leading international company, which involved participants flying the simulators. “Moreover, we are currently working on developing a Fear of Flight programme www.arabiansupplychain.com

AVIATION SIMULATORS

and will be launching it very soon,” Sulaiman adds. According to CAE’s Mariamo, this diversified use of simulators in other than the traditional pilot training comes as no surprise. “Although much attention is focused on full-flight simulators, aviation training has transitioned to using an entire suite of training devices to teach the systems, operating procedures, and crew coordination knowledge, skills and attitudes required to be a successful airline or business aircraft crew member today,” he says. A classic example is UAE-based Spatial Composite Solutions. The company manufactures aircraft cabin simulators specifically for in-flight training cabin crew, based on 1:1 scale replicas of Airbus and Boeing cabin interiors. As the only manufacturer of these training devices in the Middle East, the company feels that the demand for simulators in cabin crew training has really evolved in the region. “At one time, Gulf Air was the only venue equipped to train cabin crew. Emirates, Oman Air, Etihad, Saudi Airlines and more recently the low cost carriers such as Air Arabia, FlyDubai

The use of a full-flight simulator for pilot training from a financial and safety point of view cannot be over stated and Bahrain Air have emerged and all need facilities to train their crews both for cabin service and evacuation procedures,” says Joseph McKeever, CEO of Spatial Composite Solutions One of its initial (and largest) projects was to design, build and install 13 ‘Cabin Service Trainers’, including the upper and lower deck of the Airbus A380 for Emirates Airline at its crew training academy in Garhoud. “This was a really challenging project as the entire installation was carried out on the fifth and sixth floors of their academy building,” says McKeever. “We had to devise a system whereby all the components were manufactured in our factory and later installed on site. It took two years to complete the project but Emirates were very happy with result.” As McKeever explains, Cabin Emergency Evacuation Trainers (CEETs), for example, fall into two categories –

those with motion systems and those without. A motion system simulates take off and landing dynamics, turbulence and vibration due to sudden loss of altitude. One could question that, with such simulators being so expensive, isn’t there a cheaper way to train cabin crew staff on the ground? McKeever disagrees. “Due to the high cost of having an aircraft on the ground (AOG) it is not practical to carry out training on an actual aircraft,“ he argues. “A training device which simulates the real aircraft in terms of how it looks and how the equipment on board operates is the next best alternative for training purposes.” Infact, before any cabin crew member is licenced to fly, safety and evacuation training has to be undertaken in a training device of that particular type. The appeal of this alternative ‘real-life’ scenario for training aviation professionals

MANUFACTURER CASE STUDY: SPATIAL COMPOSITE SOLUTIONS Founded in 2007, Spatial Composite Solutions is the only specialist manufacturer of cabin crew training equipment in the Middle East. The UAE-based company creates 1:1 scale replicas of Airbus and Boeing cabin interiors that provide a realistic environment for cabin crew in-ﬂight service training. Virtually all the components used in the construction are manufactured in the company’s Jebel Ali factory.

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Last year, the manufacturer was commissioned to design, build and install an Airbus A320 Cabin Service Trainer (CST) for Abu-Dhabi carrier, Etihad Airways. The device provides Etihad with a realistic environment in which to train cabin crew on all aspects of premium cabin service and food preparation procedures. “The A320 device for Etihad was built in two halves (split along the centre line) as there were some access restrictions at Etihad’s Training Academy in Abu Dhabi at the time. The trainer was calibrated using laser equipment and joined together on site,” says Joe McKeever, CEO at Spatial Composite Solutions. “The Etihad A320 is quite a sophisticated trainer featuring galleys equipped with working ovens and beverage makers, functional overhead lockers, PSU panels, crew seats and automated ﬂight attendant panels.” The CST represents a 1:1 scale replica of an actual Airbus A320 fuselage, featuring a forward cabin complete with galleys,

seats, overhead storage bins, door exits and electronic control systems. 400-cycle electrics will power the galley areas, the refrigeration and the A/C systems, while the galleys themselves will be equipped with the same ovens, bun warmers, toasters and coffeemakers that would be used during in-flight service at 30,000 ft. “Spatial is currently working on two ‘Emergency Evacuation Trainers’ for Oman Air - a B737 NG 800 and their new A330-300 flagship. To be installed in Oman Air’s new crew training facility at Muscat International Airport, the project will take 9 months to build,” says McKeever. McKeever is also very excited about the progress in computer graphics and animation which are being employed in place of hydraulic motion systems. Furthermore, he points to improvements in sound effects as well as decompression and smoke generating systems all contributing to a much more realistic training experience.

July 2010

AVIATION SIMULATORS

has also been attracting the airports, and in particular air traffic control departments. With the increasingly amount traffic flying in the skies, the need for air traffic controllers to be trained to a very high standard is essential. Simulaton manufacturer, Micro Nav has completed a number of Air Traffic Control (ATC) projects across the Middle East region. “With the continuing growth in aviation and airport development in the region, there is strong interest in the latest simulators for both training and design work,” says Tom Howard-Jones, new business director of Micro Nav. Amongst its projects, the company has provided a two-position BEST radar ATC simulator to Sharjah Airport to support its on-the-job training. “The simulator helps in keeping the skills of the controllers sharp and allows them to experience and practice for novel and emergency situations,” says HowardJones. “As the airport grows, I am sure the authorities will assess the benefits of expanding their simulator to cover tower and ground operations with realistic panoramic views to meet their needs.” With air traffic control being a pivotal for the safety of the airport, the radar simulators mirror the real equipment in every way, providing what Howard-Jones

The experience of our users is that the investment in simulators has been very worthwhile terms a wholly ‘immersive’ experience. “Even the stand-alone simulators where we provide a copy, or emulation, of the controller workstation are very realistic and give high-fidelity training,” he says. “We have now started adding stimulation interfaces to the tower simulators so that real equipment such as the new generation of electronic flight strip displays, surface movement radars and lighting control panels can be used in the simulated tower cabs.” Howard-Jones maintains that ATC simulators have held an important and cost-saving role for many years. “In ATC more training can be carried out onthe-job; but the growing workloads in the towers and radar centres mean that the use of simulators is being welcomed wore widely in operating units as well as in colleges,” he says. “Of course, the only way that controllers can experience and practice for unusual and emergency situations is on simulators,” he adds.

Micro Nav has been busy introducing new business models as well as new technologies with more flexible time-based payments to further attract the aviation industry. “The feedback from users is that the investment has been very worthwhile,” says Howard-Jones. “By using the simulators to evaluate new designs and procedures, major savings can be made by correcting errors in new concepts.” So, with advances in technology driving the development of simulators further, can the aviation industry expect to see better cost effectiveness coming into play? It certainly appears to be so. “By using simulators the capacities and safety features of the real systems can be tested in a way that is not possible in the working environment,” says HowardJones. “The challenges for the simulation community now are to continue to improve training facilities at reduced costs and to try and help in the other higher-cost areas of the processes.”

MANUFACTURER CASE STUDY: MICRONAV UK-based company MicroNav has been winning some major contracts in the Middle East with its unique brand of Air Traﬃc Control simulators. The MicroNav ATC Tower simulator integrates the best tower simulation software with the latest image generators, visualisation software and display systems making it one of the most enhanced 2D simulators. The ATC Tower simulation systems are used for multiple areas of training ranging from tower and ground operations, civil and military specialisations, tower and radar control and much more. The tower simulators have two dimensional (2D, map-like views) and three dimensional (3D, out-the-window) views with advanced real time graphics, and are used for design and evaluation tasks as well as a range of training programmes. “The performanceto-cost factors for many components of ATC

July 2010

simulators have been growing dramatically thanks to the power of the PC industry. The PCs, the networks, the graphics, the LCDs, the projectors and the software continue to develop quickly. This enables us to increase realism and versatility while reducing prices,” adds Howard-Jones. Sharjah International Airport recently purchased a new 2D simulator from the manufacturer, to be used as part of a facilities and training upgrade at its civil aviation training oﬃces. As well as Sharjah International Airport, Micro Nav has worked on a number of projects in the region. The company has supplied several Radar and Tower ATC simulators for both Dubai and Al Maktoum International Airports, GCAA (Abu Dhabi), BCAA (Bahrain) and Oman Aircraft Control College. “The radar simulators include ‘stimulation’ links to the real Flight Refuelling and Raytheon

radar systems,” explains Howard-Jones. “Stimulation is a powerful technique that uses advanced simulators to drive, or stimulate, examples of the real, operational equipment. This gives the ultimate in realism with on-console training using all the real hardware and software.”

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INTERVIEW EMIRATES AIRLINE

Plane talking

No matter what the critics say, Emirates is still the biggest aviation story in the region, states founding managing director Maurice Flanagan.

July 2010

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INTERVIEW EMIRATES AIRLINE

t 83, Maurice Flanagan may be carrying a peanuts compared to what every other national carrier has had. crutch and a little slower on his feet than he What does Etihad get every year?” he says laughing. “Those were once was, but the man who could easily be the rules of the game. You’ve got to be smart to succeed, smart called the pioneer of aviation in the UAE still even to survive.” packs a punch. Earlier this year, Cathay In fact, Flanagan is especially proud to point out that the Pacific CEO Tony Tyler told the media airline is not only not propped up by the Dubai government, but he believed Gulf carriers would take at rather it is a major contributor to the emirate’s coffers. “Every least a “generation” to catch up with the year we have paid more than a $100 million in dividend to the levels of in-flight service offered by the owner of the company,” he says, and Emirates’ latest annual Hong Kong-based carrier. I have barely report shows the Dubai government was most recently paid a settled into my seat before Flanagan, dividend of AED956 million ($260 million), and AED2.91 billion who was Emirates’ founding managing director and is currently ($792 million) in 2009. Not bad a return for a one off investment executive vice chairman, reacts furiously to the criticism. “What of $80 million. Does Flanagan ever think that the Dubai b*****ks!” he bellows. “We are ahead of Cathay. There is no way government would countenance selling the cash cow in order to in which Cathay is ahead. It is nonsense.” fund its multi-billion dollar debts? “No,” he says immediately, He also takes issue with the manner in which Tyler “lumps” “it would never be sold to anyone else. There might be an IPO Emirates in with the other Gulf carriers. “We are totally different (initial public offering) as time goes on but that is a decision for the from Etihad, totally different from Qatar Airways and totally government. But I think it would be a very successful one.” different from Gulf Air. What’s he talking about?” Next up in Flanagan’s firing line is Air Canada and the There are many who would say Flanagan is right, Emirates is Canadian government, which he believes is stuck in the past. different. After all, it makes money. Only last month, Gulf Air let “They are still there politically in the 1960s. I can’t understand 500 staff go and said it had no that. The market is there for plans to make a profit until at double daily Toronto and I was given $10 million by least 2013. Abu Dhabi’s Etihad double daily to Vancouver — the flag carrier for the UAE and certainly daily, going to Sheikh Mohammed to start the — has never turned a profit double, to Calgary. We are since it was set up in 2004. [only] allowed three a week airline and he said ‘don’t come Backed by the government, to Toronto and that is all CEO James Hogan recently protection to Air Canada back for any more’ said he didn’t expect it to this [but] what good has that year. By contrast, Flanagan, done to Air Canada? Look at when we talk, has just come the state they are in,” he says. from Emirates’ annual results announcement in the company’s “I know of no other country that thinks in those terms. It is to own auditorium — an event broadcast live to the world. No protect Air Canada, I can’t see any other reason. Just open the wonder he is smiling. In the year of its 25th anniversary, the skies and let us in — that is the answer. It will be great benefit to airline — the biggest in the Middle East — announced revenues the Canadian economy.” up 0.4% from the previous year to US$11.8 billion and net profit As part of its lobbying to the Canadian government, Emirates up a massive 416% to $964 million. Of course, no sooner had the released a study in March concluding that Canada could reap billion dollar profit been announced than critics were making economic benefits of around $466 million a year and create 2800 their usual accusation that Emirates has an unfair advantage jobs if it was given the flying slots it is demanding. However, Air over other airlines because it is being propped up by the Dubai Canada has accused Emirates of wanting to “flood” the Canadian government with fuel subsidies and financial assistance. The routes in order to divert passengers through Dubai. Calin charge sends Flanagan into a rage. He says he is confronted with Rovinescu, CEO of Air Canada, the country’s biggest airline, said such accusations “all the time, it is incessant.” that allowing Emirates to increase its capacity would be “severely “It is rubbish,” he says, becoming even more agitated before damaging” to Canadian airports and airlines. apologising for his ever more colourful language. “We incur social Moving east, another hot spot for the airline was its first costs these guys don’t have to think about. Full family medical move outside Dubai and its first and only acquisition. In 1998, service, free furnished accommodation for pilots, cabin crew and Emirates spent around $70 million buying a 43.6% stake in managers, school fees... Those amounted to about $600 million SriLankan Airlines, the national carrier of the Asian island this year, those guys don’t have to think about that. “They say state. In 2008, the Sri Lankan government declined to extend we don’t pay taxes. Of course we pay taxes. Dubai is a city not Emirates’ management contract and cancelled the a country, we pay municipal taxes on all that accommodation, work permit of SriLankan Airlines then chief thousands of it we owe in rent for our staff. It is very costly.” executive Peter Hill. Ever since, Emirates In fact, Flanagan will argue Emirates has virtually always has been trying to sell all or part of the been an independent concern. “We have a stronger imperative stake, which has previously been valued The list price for Emirates’ to be profitable. I was given $10 million by Sheikh Mohammed at as much as $150 million. Earlier this recent order of to start the airline in 1985 and he said ‘don’t come back for any month, the Sri Lankan government said it more, no subsidies of any kind whatsoever, no protectionism had offered $55 million for the stake. “Sri 32 additional whatsoever.’ In fact we have had $80 million in cash in kind Lanka is going to buy it... $55 million is the Airbus A380s since the start of the airline 25 years ago. That’s absolutely price we have indicated… The deal is almost

$11.5B

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July 2010

INTERVIEW EMIRATES AIRLINE

done,” PB Jayasundera, secretary of the Sri Lankan finance ministry and the treasury, told Reuters. Flanagan is less certain that a deal will be completed. He says: “there is nothing active at the moment going on there, if you can find someone [to buy] then let me know.” The airline’s first venture overseas certainly seems to have put it off any further acquisitions. “We are not going to go into acquisitions. The relationship with Sri Lanka, managing them, was very, very difficult. It takes up huge amounts of senior management time… we just can’t afford that, so we won’t do any more acquisitions,” he says defiantly. In fact, Flanagan also sees no sense in having any secondary hubs around the world as he considers Dubai to be perfectly ideal geographically for its requirements. “Dubai is perfect. Look at a map of the world with the Americas on one side and Australasia and China on the other. The balancing point is Dubai so with the aircraft that we have we can connect any two points in the world with one stop in Dubai, and we exploit that to the hilt.” The airline currently has 145 aircraft, with another 146 worth $48 billion on order. It is running an average seat factor of 78.1% and the number of passengers it carried last year rose 20.8% year-onyear to 27.5 million. Now the carrier is planning to expand the number of routes it operates beyond the 102 destinations it currently flies to in 62 countries. “We will take on more destinations and we know we can profitably service St Petersburg, Kiev and Chicago. We have traffic right for 80 flights into Australia a week and we are only operating 73 at the moment. We cover every point you care to name now in Africa. All these are long range things that take a huge amount of capacity.” However, there is one prominent European country that the airline currently does not service: Ireland. “That is something which we do keep looking at. Ireland would work for us. It didn’t work for Aer Lingus because [its] model was a low cost one and it wouldn’t work. Ireland would be good as there are good family connections between Ireland and Australia, which the VFR (visiting friends and relatives) traffic itself would be quite substantial. We can’t do everything but we will be there sooner or later,” he says. Lancashire-born Flanagan got his education in Liverpool and it was his

July 2010

Those were the rules of the game. You’ve got to be smart to succeed, smart even to survive ambition to become a footballer for his beloved Blackburn Rovers. Following a night out, his knee was damaged and he had to seek out another dream. However, football’s loss was aviation’s gain and following a stint in the Royal Air Force and British Airways he arrived in Dubai in 1978 and was appointed as director and general manager of Dnata, Dubai’s travel and aviation services division. He later led the ten-man team which took Sheikh Mohammed’s initial $10 million and planned to turn it into a successful airline. He was the managing director for the inaugural Emirates flight in 1985 and in 2006 he was appointed executive vice chairman. “I’ve been very lucky,” Flanagan says of his time building Emirates, but he says there are two things he credits with helping to make Emirates a success: the Gulf War and HH Sheikh Ahmed. “Sheikh Mohammed gave his greatest gift, [which] was Sheikh Ahmed,” he says, any previous ire leaving his face. “He is a brilliant chairman, he really is. Just before they hired staff, Sheikh Mohammed said ‘tell Ahmed everything’ and when I started Sheikh Ahmed, at the age of 25, was made

the chairman and he came to my office and we had airline tutorials day after day and I would give him complex documents in English and he would come back and ask all the right difficult questions. He has a memory like a steel trap… he’s extremely intelligent. We still meet up twice a week, sometimes just for a chat. One of my jobs is to make sure that Sheikh Ahmed knows everything that is going on in the company and he is so hands on, despite all his other responsibilities,” he says with obvious pride. In relation to the Gulf War, Flanagan believes Emirates’ decision to keep flying has helped it stand the test of time. “The first Gulf War we continued to operate, British Airways for example didn’t, most airlines stopped. We continued to operate and therefore increased our market share significantly and when the war was over our market share stayed up.” Flanagan tells me that if he could do it all over again he would change nothing and when asked who he considers Emirates’ main rival, he says “we don’t think in those terms.” Looking at his track record and the airline’s recent results, there are few that would dare argue with him.

Emirates has 145 aircraft at present, with the number of passengers it carries increasing by 20.8% last year

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SHOW REPORT BERLIN AIR SHOW 2010

2010

Berlin Air

SHOW With US$16.5 billion worth of business announced at last month’s Berlin Air Show, organisers have hailed 2010 as the most successful year in the event’s history.

ast month’s Berlin Air Show has been hailed a success by organisers Messe Berlin and the German Aerospace Industries Association (BDLI), with the largest participation in the aviation event’s entire 100-year history. In total, around US$16.5 billion worth of contracts and business agreements were signed at the show, with a serious contribution to this figure from Emirates, which made a record order for the Airbus A380 superjumbo valued at $11.5 billion.

July 2010

However, the Dubai-based airline was only one of 1153 exhibitors from 47 countries around the world, which marketed their portfolio of services and products to a record-breaking 125,000 trade visitors – a healthy increase from the 120,000 trade visitors that attended in 2008. Dietmar Schrick, president of the BDLI, believes that the world’s oldest aviation and space show was in a stronger position than ever in 2010, despite a recent downturn from the global recession. “On the basis of the business conducted this year, the show has once again established itself as a topranking international aerospace event,”

he says. “In 2010, we have been able to record the single biggest order ever achieved at any aerospace anywhere in the world, thanks to Emirates. The enormous growth in almost all sections of this event confirms the strength of the underlying concept, and Berlin Air Show 2010 has set new standards.” More than 100 conferences, seminars and workshops were organised as part of the air show, which were attended by some 8000 representatives from every sector of the global aerospace industry. The presence of more than 130 highranking delegations from all over the world also ensured that the Berlin Air

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SHOW REPORT BERLIN AIR SHOW 2010

Show 2010 was an effective meeting place for business and science, politics and the military. They included 285 participants in the Parliamentarians’ Day, who came from all over Europe, 65 representatives of embassies in Germany, and some 250 delegates to the ILA Space Day, which was also attended by leading representatives of space agencies from the USA, Russia, Ukraine and Kazakhstan. Just under 300 aircraft, which organisers claim is considerably more than any of the world’s other air shows, were on display on the ground and in the air. Aircraft making their world, European or Berlin Air Show debuts included the new A400M military transporter, the CH-53GA (German Advanced) transport helicopter and the DLR-H2 Antares, the world’s first manned aircraft that uses a fuel cell system to eliminate all CO2 emissions.

“The success of this year’s event has given us a powerful momentum for holding the Berlin Air Show in 2012, when the venue will be the new exhibition grounds on the western side of Berlin Brandenburg International Airport,” says Raimund Hosch, CEO of Messe Berlin. “This year, the commercial importance of the ILA was greater than ever. Qualitative improvements were made to the specialist sections, such as the International Suppliers’ Centre, the HeliCentre, the ILA Careers Centre and the ILA Space Pavilion, making a decisive contribution to the success of this year’s event. Of course the Berlin Air Show is also a major attraction for the general public. There is no other event that compares with this in presenting the fascination of aviation and space flight.” The next Berlin Air Show will take place on 12th-17th June 2012.

BOMBARDIER ANNOUNCES INAUGURAL 5000 BUSINESS JET

EMIRATES BUILDS FIRST FOOTBALL PITCH AT BERLIN AIR SHOW 2010 Emirates revealed a special football pitch at the Berlin Air Show, featuring one of its Airbus A380 ‘star players’. The pitch at Berlin-Schönefeld Airport, which measured 90mx40m, took a 20-strong team 48 hours to create, with Italy’s Franco Baresi scoring the ﬁrst goal. The former star of AC Milan, the Italian club which Emirates will be the shirt sponsor of next season, was joined on the pitch by two football freestylers who showcased their tricks to hundreds of visitors, including German model Eva Padberg.

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“As an oﬃcial partner of the 2010 FIFA World Cup, the Berlin pitch was the perfect platform to announce our latest order for 32 more A380s,” reﬂects Boutros Boutros, divisional senior vice president of corporate communications. “Seeing the aircraft on a football pitch is a tremendous way to put its size into perspective. It truly is a giant of the skies and - as we take delivery at a rate of almost one a month - it is exciting that more and more of our passengers will soon be able to enjoy the A380 experience.”

Aircraft manufacturer Bombardier used the Berlin Air Show to announce that its first Global 5000 business jet, which is destined for the Special Air Mission Wing of the German Air Force, has now been granted an airworthiness certificate by the Canadian aviation authorities. “This is an important step towards completing the process of modernising the fleet”, Derek Gilmour, vice president of sales, marketing and administration for Bombardier Specialised and Amphibious Aircraft told Aviation Business. “This certificate of airworthiness represents an important milestone for the Federal Ministry of Defence”. The German Air Force will be taking delivery of four of these aircraft for its Special Air Mission Wing as replacements for the outdated Challenger. They will be fitted out by Lufthansa Technik in Hamburg and maintained by Lufthansa Bombardier Aviation Services in Berlin-Schönefeld.

July 2010

SHOW REPORT BERLIN AIR SHOW 2010

ROCKWELL COLLINS WINS TURKISH AIRLINES ORDER During the Berlin Air Show 2010, a contract was signed between Turkish Airlines and Rockwell Collins for the supply of 40 MultiScan anti-collision systems, data-link installations and sensors for the company’s Airbus A320 and Boeing 737 ﬂeets. In addition, Turkish Airline has also secured options to purchase a further 25 systems. This order speciﬁcally refers to aircraft due for delivery from 2011 onwards.

BOEING PRESENTS A MODEL OF FUTURE TRANSPORT HELICOPTER Boeing showcased its helicopter division at this year’s Berlin Air Show, with a focus on existing models such as the AH-64 Apache, H-47 Chinook and the V-22 Osprey. Details were also provided about project studies such as the Disc Rotor and a Joint Common Airlift System, a fuselage with wings onto which a choice of jet engines or rotors can be mounted. However, visitors to the Boeing exhibition booth were most interested in a model of the company’s Future Transport Helicopter, which has been

designed to meet the needs of the German and French armed forces. The 20 metre long fuselage has the internal dimensions of a C-130 Hercules and would be able to carry a load of some 36 tonnes. Boeing was not willing to comment on the announcement by the head of Eurocopter, Lutz Bertling, concerning a joint venture on this project. The US armed forces have so far not indicated any need for such a helicopter, according to Dave Jones, director rotorcraft strategy and programme development.

EADS KEEN ON EMBRAER ALLIANCE

AIR BERLIN CELEBRATES DELIVERY OF 50TH AIRBUS A320 AIRCRAFT Air Berlin claimed that the Berlin Air Show was a perfect opportunity to accept the delivery of its 50th aircraft from the A320 series. Thomas Enders, president and CEO of Airbus, handed the aircraft over to Air Berlin’s CEO Joachim Hunold while emphasising that, unlike many of its competitors, Air Berlin has not delayed taking delivery of the aircraft because of the economic crisis but added four more aircraft ahead of schedule to its current ﬂeet. “We are proud that our aircraft are playing their part in the expansion of Air Berlin,” states Enders. July 2010

CEO of EADS, Louis Gallois, told journalists at the Berlin Air Show that he was considering a closer cooperation with Brazilian aircraft manufacturer Embraer. “If we can succeed in ﬁnding a way to create a partnership we will do so,” reporters were told at a press conference. Gallois would not reveal whether this could involve the development of a new narrow-body aircraft. He also defended the decision by Airbus to delay the development of a successor to the A320 series until 2025, saying that the development of a model with signiﬁcantly lower fuel consumption would require new types of engines which would not be available any earlier.

AIRBUS EXPECTS AIRCRAFT FLEET TO DOUBLE IN GERMANY Over the next 20 years, the number of passenger aircraft operated by German airlines is expected to increase from the current ﬁgure of 512 to 1220, according to John Leahy, chief operating oﬃcer customers at Airbus. He believes that a market exists in Germany for 780 standard and over 280 wide-body aircraft, as well as 90 very large aircraft such as the A380. Based on list prices this will require a total investment in these aircraft of around US$144 billion. “Germany will rank third in the world in the number of passenger aircraft delivered,” forecasts Leahy. www.arabiansupplychain.com

SHOW REPORT BERLIN AIR SHOW 2010

PHOTO SPECIAL:

Berlin Air Show 2010 97%

visitors of tradesed their s expre n at Berlin ctio satisfa w 2010, stated Air Shorganisers o

Getty Images www.arabiansupplychain.com

July 2010

SHOW REPORT BERLIN AIR SHOW 2010

TH 7 12 -1 TH

JUNE

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Getty Images

July 2010

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INTERVIEW TURKISH AIRLIN AIRLINES NEESS

Tales from

Turkey Tur Turkish Airlines prepares to win bac back Middle East customers from the region’s top carriers.

ppointed as the director of Turkish Airlines in Dubai earlier this year, Ayse Misirli Mirza has emerged as a posterchild for career development at the national carrier. Only moments after graduating from university in 1998, she was recruited as a parttime call centre agent at the airline’s Ankara office, with a focus on ticketing sales and reservations. While these beginnings were undoubtedly humble, the experience was enough to trigger a passion for the aviation world and Mirza wasted no time in climbing the corporate ladder. With a combination of hard work, determination and more than a little natural charm, Mirza was soon made a permanent member of staff and transferred to Istanbul headquarters, where she worked with business analysts to improve all aspects of the airline’s operations. “For those three years in Istanbul, I was involved in every part of the business and learnt the A-to-Z of Turkish Airlines. Although I wasn’t aware at the time, it was the perfect training ground for my move to the Middle East,” she admits with a smile.

July 2010

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INTERVIEW TURKISH AIRLINES

Moving to the Gulf was initially a personal decision for Mirza, who fell in love and planned to resign from Turkish Airlines to settle with her husband in Abu Dhabi. However, the airline was determined to keep her onboard and offered Mirza an opportunity to establish the UAE capital as a new destination. “I like a challenge, so this was hard to resist,” she explains. “I moved here as a sales manager in 2005 and our route at approximately US$15.7 million in between Istanbul and Abu Dhabi 2008, there has been an impact from the became a major success. Then, in April global recession, with last year’s figures 2009, I was promoted to director for Abu dropping to $10.2 million. However, Dhabi operations, and earlier this year, Mirza is confident that growth will resume this year and expects an increase director for Dubai operations.” Mirza heads a team of 14 people of 15% by the end of 2010. With the success of Middle Eastern in Dubai, covering operations, sales, marketing, accounts, administration airlines such as Emirates, Etihad and and cargo operations. While the aviation Qatar Airways, growth will depend on industry has been pushing for more the ability of Turkish Airlines to win women to take senior positions in the back customers from these home-grown Middle East for a number of years now, carriers. “It’s rare for a single region to Mirza’s appointment was still ahead have three strong brands. Emirates has created history and changed the of its time. “That’s true, women are aviation industry, while Qatar not normally appointed as airline Airways has consistently directors in the Middle East. It good standards. However, was a proud achievement both with strong and steady professionally and personally,” growth, I think Etihad she says. “Of course, it came Revenues on the Turkish is the one to watch. Its with a lot of expectations. Airlines route between service quality is high Our clear vision for the UAE Dubai and Istanbul in 2009 and I’m confident it will was continued expansion, with break even in the near a higher number and frequency of routes. It was also important to establish ourselves as a leading airline for flights out of the country.” Turkish Airlines currently operates four flights per week from Istanbul Ataturk Airport to Abu Dhabi International Airport, and twicedaily flights from Istanbul Ataturk Airport and Dubai International. The route between Istanbul and Dubai has traditionally been considered one of the most profitable for Turkish Airlines, constantly remaining in the black over the past decade. With revenues peaking

Our clear vision for the United Arab Emirates was continued expansion, with a higher number and frequency of routes

$10.2M

future,” says Mirza. “All three are strong competition, although we’re currently the leader for routes between Turkey and Abu Dhabi. In Dubai, Emirates is carrying more passengers to Turkey and we need to improve our performance. At present, Istanbul is the final destination for only 15% of our Dubai passengers, while the remaining 85% are transiting, with onward journeys to various other parts of the world. We want to increase that figure from 15% to 50% in the future and there is a strategy in place to make that happen.” Topping the agenda of that strategy is brand awareness. “Our international network is bigger than Emirates, Etihad and Qatar Airways, which is something we need to highlight in the Middle East market. Our geographical location is also an advantage, because we have the minimum connection time to locations in Europe, America and Africa,” says Mirza. “We also have very competitive

FACT FILE: TURKISH AIRLINES Countries: 76 Cities: 157 Airports: 160 Fleet: 142 Employees: 15,269 (including the technical department) Passenger Load Factor: 69.6% Turkish Airlines has increased its number of destinations from 104 to 156 in total between 2003-2009

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July 2010

INTERVIEW TURKISH AIRLINES

rates for tickets and Turkish Airlines is very proud of its service quality.” Understanding the needs of regional customers is also a fundamental part of that strategy, with airline crew being encouraged to gauge customer feedback and complete surveys on a regular basis, with the results being shared across the global workforce. “This feedback is taken very seriously and impacts our services. Since working in this region, I have also noticed that customers have a preference for widebody aircraft, so we are planning to introduce the Airbus A330 on our Dubai routes. It will affect the perception of regional customers and allow us to compete better,” continues Mirza. “In addition, customers in the Middle East have certain eating habits, which we take into account when selecting our menu. It’s the same thing with inflight entertainment. Customers really appreciate our efforts to customise the service to meet their needs. It means

Ayse Misirli Mirza heads a team of 14 people in Dubai, covering operations, sales, marketing and accounts

they will come back to Turkish Airlines in the future.” This attitude has won Turkish Airlines a number of awards over the years, most recently including the World’s Best Economy Class Catering Onboard at the World Airline Awards, in addition

Our international network is bigger than Emirates, Etihad and Qatar Airways, which is something we need to highlight in the Middle East market

to recognition in the World’s Best Inflight Service Quality in Economy Class and Best Airline in Southern Europe categories. The winners were determined after a survey that included more than 17.9 million interviews during a 10 month period between July 2009 - April 2010. “The Skytrax World Airline Awards are highly regarded, so this was a great honour,” states Mirza. “Such initiatives are great for showcasing your strengths and weaknesses. Although we had a great year, I still believe Turkish Airlines can do better and this will motivate the entire team for more achievements in the coming years.”

TURKISH AIRLINES HAS INCREASED ITS NUMBER OF DESTINATIONS FROM 104 TO 156 IN TOTAL 37 DOMESTIC, 120 INTERNATIONAL BETWEEN 20032009

July 2010

YEAR

DOMESTIC

INTERNATIONAL

TOTAL

2000

104

2001

102

2002

107

2003

104

2004

102

2005

107

2006

103

131

2007

107

139

2008

109

142

2009

120

156

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SPECIAL REPORT WORLD AIRLINE AWARDS 2010

WORLD

AIRLINE AWARDS Skytrax has announced the winners of its annual World Airline Awards, with trophies being handed out to Emirates, Etihad and Qatar Airways, amongst other carriers. In total, ten finalists were short-listed for the ‘Airline of the Year’ category and the winner was selected following a 10-month survey with more than 17.9 million air travellers taking part between July 2009 and April 2010. The survey measures over 38 different items of customer satisfaction for each airline’s product and service standards - from check-in and boarding to seat comfort and in-flight entertainment.

July 2010

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SPECIAL REPORT WORLD AIRLINE AWARDS 2010

SINGAPORE AIRLINES It’s been another solid year for Singapore Airlines, which reported a net profit of US$216 million for the 2009-2010 financial year, maintaining its unbroken record of full-year profitability. And now, Singapore’s flag carrier has been declared the runner-up at this year’s World Airline Awards, with positive feedback from its network of 93 destinations in 38 countries across Asia, North America, Australasia, Europe, Africa and the Middle East.

ASIANA AIRLINES Taking home the trophy of Airline of the Year in 2010 was a historical moment for Seoul’s Asiana Airlines, which commenced services in 1988 and boasts a network of services throughout Asia, as well as North America, Australia and Europe. “We would like to express our most heartfelt appreciation to our customers who voted us for Skytrax 2010 Airline of the Year Award. To be the winner of this trophy is even more special and holds greater meaning, as it is the passenger’s choice,” states Young-Doo Yoon, chief executive oﬃcer and president of Asiana Airlines.

QATAR AIRWAYS Founded in 1993 and based in Doha, Qatar Airways was voted the third best airline of the year at last month’s ceremony, although it also topped the poll in four other categories – Best Business Class, Best Middle East Airline, Best Onboard Catering and Staff Service Excellence in the Middle East. Using a fleet of narrow and wide-body Airbus, Boeing and Bombardier aircraft, the airline operates regional services in Asia and the Middle East, together with international services to Australia, Europe, Africa and North America. “It is extremely gratifying to be honoured with these achievements, which recognise the outstanding efforts of our employees in the air and on the ground,” says Akbar Al Baker, CEO of Qatar Airways.

CATHAY PACIFIC As the flag carrier of Hong Kong and based at Hong Kong International Airport, Cathay Pacific’s network consists of services throughout Asia, Europe, North America, Canada, Australia and New Zealand. The airline, which is a founding member of the oneworld alliance, settled for fourth position in the overall list, but was also awarded Best Airline in the Transpacific, edging out other competitors from the region.

AIR NEW ZEALAND Based in Auckland, Air New Zealand squeezed into the top five list at this year’s World Airline Awards, whilst also being named the Best Airline in Australia/Pacific and Best Service Excellence in Australia/ Pacific. The national carrier uses a fleet of narrow and wide-body Airbus and Boeing aircraft on a domestic and regional network within New Zealand and the Pacific, together with international services to Australia, Asia, North America and Europe.

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July 2010

SPECIAL REPORT WORLD AIRLINE AWARDS 2010

ETIHAD AIRWAYS Founded in 2003, Etihad Airways was voted into the sixth position at this year’s awards, making it the second highest placed airline from the Middle East. It also took home the awards for Best Airline Seat (First Class), Best Onboard Catering (First Class) and Best First Class. “The World Airline Awards are known as the passenger’s choice, underlining the fact that Etihad Airways is clearly satisfying its hardest critics,” states Peter Baumgartner, COO of Etihad Airways.

QANTAS AIRWAYS The national airline of Australia, Qantas was ranked at number seven in the World Airline Awards and was selected as the winner in two other categories – Best Premium Economy Class and Best Airline Seat (Premium Economy Class). Using a large fleet of narrow and wide-body Airbus, Boeing and Bombardier aircraft, Qantas operates a domestic and regional network within Australia, as well as international services to New Zealand, North America, Asia, South Africa and Europe.

EMIRATES Operating a fleet of wide-body Boeing and Airbus Aircraft, including the A380, Emirates was the third Middle Eastern airline to be included in this year’s top ten list. It was also voted as the winner of Best In-flight Entertainment, with the trophy being received by Patrick Brannelly, Emirates’ vice president of corporate communications (product, publishing, digital and events). “When we won this prestigious award for the fifth time in a row last year, we knew that we could not rest on our laurels, and we immediately focused on improving ice even further,” he says. “We’re thrilled that so many Emirates passengers have recognised this by voting for us.”

THAI AIRWAYS Based at Bangkok’s Suvarnabhumi Airport with secondary hubs in Phuket and Chiang Mai, Thai Airways is the national airline of Thailand and owned by the Thai Ministry of Finance. Using a fleet of narrow and wide-body Airbus, Boeing and ATR aircraft, Thai Airways was ranked at number nine at this year’s awards for its domestic and regional services throughout Thailand and Asia and international services to Europe, North America, Australia and New Zealand. It is also a founding member of Star Alliance. July 2010

MALAYSIA AIRLINES The final entry in the top ten, Malaysia Airlines is the flag carrier of Malaysia and one of Asia’s largest carriers, serving over 100 destinations across six continents from its main base at Kuala Lumpur International Airport. It maintains a strong presence within East and South East Asia, and on the Kangaroo Route between Australia and the UK. Its narrowbody fleet comprises solely of Boeing aircraft, and its widebody fleet comprises both Boeing and Airbus aircraft. It is not currently a member of any international trade alliance.

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SPECIAL REPORT WORLD AIRLINE AWARDS 2010

Who else won at the World Airline Awards 2010? AIRLINE EXCELLENCE CATEGORIES  WORLD AIRLINE AWARDS 2010 Airline of the Year: Asiana Airlines Best Low-Cost Airline Worldwide: Air Asia Most Improved Airline: Garuda Indonesia Best Regional Airline: Dragonair Best Leisure / Charter Airline: Thomson Airways Best Cabin Staﬀ: Singapore Airlines Best In-ﬂight Entertainment: Emirates (pictured) Best Airport Services: Thai Airways Best Airline Alliance: Oneworld Alliance

AIRLINE CLASS CATEGORIES  WORLD AIRLINE AWARDS 2010

Best First Class: Etihad Airways (pictured) Best Business Class: Qatar Airways Best Premium Economy Class: Qantas Best Economy Class: Malaysia Airlines

REGIONWIDE CATEGORIES  WORLD AIRLINE AWARDS 2010

Best Airline (Transatlantic): Virgin Atlantic Best Airline (Transpacific): Cathay Pacific Best Airline (Africa): South African Airways Best Airline (Asia): Asiana Airlines Best Airline (Australia/Pacific): Air New Zealand Best Airline (C America/Caribbean): TACA Airlines Best Airline (China): Hainan Airlines Best Airline (Eastern Europe): Malev Hiungarian Airlines Best Airline (Europe): Lufthansa Best Airline (India/Central Asia): Kingfisher Airlines Best Airline (Middle East): Qatar Airways (pictured) Best Airline (North America): Air Canada Best Airline (Northern Europe): Finnair Best Airline (South America): LAN Airlines Best Airline (South East Asia): Singapore Airlines Best Airline (Southern Europe): Turkish Airlines Best Airline (Western Europe): Lufthansa

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July 2010

SPECIAL REPORT WORLD AIRLINE AWARDS 2010

AIRLINE LOUNGE CATEGORIES  WORLD AIRLINE AWARDS 2010

LOW COST AIRLINE CATEGORIES Best Low-Cost Airline (Africa): Kulula Best Low-Cost Airline (Asia): Air Asia (pictured) Best Low-Cost Airline (Australia/Paciﬁc): Virgin Blue Best Low-Cost Airline (Europe): Air Berlin Best Low-Cost Airline (India): IndiGo Best Low-Cost Airline (Middle East): Air Arabia Best Low-Cost Airline (North America): Virgin America Best Low-Cost Airline (South America): GOL

Best Airline Lounge (Business Class): Virgin Atlantic (pictured) Best Airline Lounge (First Class): Thai Airways

ONBOARD CATERING CATEGORIES

STAFF EXCELLENCE CATEGORIES  WORLD AIRLINE AWARDS 2010

Best Onboard Catering (Economy Class): Turkish Airlines Best Onboard Catering (Business Class): Qatar Airways (pictured) Best Onboard Catering (First Class): Etihad Airways

Staff Service Excellence Award (Africa): South African Airways Staff Service Excellence Award (Asia): Malaysia Airlines Staff Service Excellence Award (Australia/Pacific): Air New Zealand Staff Service Excellence Award (C America/Caribbean): TACA Airlines Staff Service Excellence Award (China): Hainan Airlines Staff Service Excellence Award (Europe): Swiss Int’l Airlines Staff Service Excellence Award (India/Central Asia): Kingfisher Airlines (pictured) Staff Service Excellence Award (Middle East): Qatar Airways Staff Service Excellence Award (North America): WestJet Staff Service Excellence Award (South America): LAN Airlines

AIRLINE SEAT CATEGORIES Best Airline Seat (First Class): Etihad Airways (pictured) Best Airline Seat (Business Class): Singapore Airlines Best Airline Seat (Premium Economy Class): Qantas Airways Best Airline Seat (Economy Class): Kingﬁsher Airlines

July 2010

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ASK THE EXPERT

PARKING PROBLEMS Question: How can airports with a limited number of aircraft parking positions increase their capacity? Expert: Juergen Strommer, managing director of Cavotec ME RAPID GROWTH WITHIN THE MIDDLE EAST’S AVIATION SECTOR The Middle East’s aviation sector has always been a little different to what we’ve witnessed in other parts of the world. Air traffic literally boomed, which prompted the development of several new airports in the region. Such an approach has proved vital in increasing airport capacity, as well as grooming the airports as individual international hubs. Now, the trends are moving towards efficiency for existing stands as well as for expansion. One clear trend that we are witnessing at the moment is making parking positions more efficient, and several measures have been adopted in an effort to achieve this objective.

without the need for physical expansion. This development has been supported with the Cavotec Gate Concept, which allows a maximum provision of six aircraft ground services (400Hz – PCAir – Blue Water – Potable Water – Sewage – Air Start) through a single point: Cavotec’s underground popup pit systems. This eliminates the need for mobile ground support equipment (GSE) vehicles, translating to a lower risk of accidents, lower maintenance and repair costs of the support vehicles, and reduced capital investment requirements for GSE vehicles. Less manpower is also required to service multiple aircraft, translating to savings in terms of labour costs, as well as limiting the occurrence of human errors.

THE DOWNSIDE OF REMOTE PARKING POSITIONS AT AIRPORT FACILITIES Originally, many airports in the region were operating remote parking positions. This entailed a number of limitations, such as long bus transfer for embarking and disembarking, as well as a huge GSE fleet to service the aircraft. Clearly, these limitations have been identified by airports when analysing their efficiency. To address this dilemma, consultants, designers and industry experts have come up with a newly-developed gate concept that focuses on point-of-use (POU).

FURTHER BENEFITS OF ADOPTING THE GATE CONCEPT AT AIRPORTS As a partner of the International Air Transport Association (IATA), Cavotec actively supports the FAA-IATA runway incursions prevention programme, which in essence targets the reduction of vehicle or pedestrian deviation (V-PD). In addition, the Cavotec Gate concept

A NEW CONCEPT THAT AIMS TO BOOST THE EFFICIENCY OF OPERATIONS The thinking behind this concept is to provide all the specifics for servicing the aircraft at the point of use on the ground. This is done through fixed and dedicated installations, ensuring lower airport congestion with higher turnaround time, reduced air and noise pollution, and improved security and safety levels. By serving the requirements of the aircraft faster, airport capacities can be increased July 2010

decreases the usage of auxiliary power units (APU) as the system can provide preconditioned cabin air with the Compressed Air PCAir solution as soon as the aircraft is positioned. Slashing just minutes from APU usage registers savings of millions of dollars every year. These savings can then be redirected towards other initiatives in further improving airport efficiency, as well as expanding the airport’s capacity. THE BONUS OF REDUCED INSURANCE COSTS AND IMPROVED SECURITY Since the pop-up pits are fixed equipment that eradicates the risk of collision between traditional mobile GSE, the airports have been able to renegotiate their premiums and reduce their insurance cost. This stands apart from the lower number of vehicle and associated driver insurances needed. The limited number of operators has also improved the security situation, which has been a major topic post 9/11 and the associated cost should not be neglected. SUCCESS STORIES FROM BAHRAIN AND THE UNITED ARAB EMIRATES One of the places where this concept has been initiated is Dubai Airport (DXB) T3/C2. Without a doubt, Emirates Airline has reaped the benefits of Dubai Airport Company’s strategic decision to integrate the gate concept, evidence of which can be ascertained by looking at the airline’s latest financial results. In December 2009, Cavotec Middle East was also awarded a EUR30 million contract by the Bahrain Airport Company to supply various ground support equipment as part of the expansion of Bahrain International Airport. An integral component of the order is the implementation of the gate concept to improve the efficiency and cost-effectiveness of aircraft servicing operations at the airport. www.arabiansupplychain.com

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 figures

orldwide passenger traffic rose by 7.6% in March 2010 compared to March 2009, and increased by 6.1% for the first quarter. Continued strong freight traffic resurgence was reported for March, with a 25.6%

CITY/COUNTRY

rise in total freight compared to March 2009. “Steady improvement of this magnitude tells us that world markets continue to rebound and airport infrastructure serves as a lifeline for that recovery,” comments Angela Gittens, director general of ACI.

MARCH 2010/2009 PASSENGERS (tonnes)

CARGO

% CHG

(tonnes)

YEAR-TO-DATE MARCH 2010/2009 MOVEMENTS

% CHG

(tonnes)

PASSENGERS

% CHG

(tonnes)

CARGO

% CHG

(tonnes)

MOVEMENTS % CHG

(tonnes)

% CHG

MIDDLE EAST ABU DHABI UAE

872,948

13.4

37,837

23.8

9406

15.1

2,578,920

13.8

101,357

22.6

27,000

BAHRAIN BAHRAIN

737,598

8.9

31,398

5.9

9287

8.3

2,190 ,189

6.6

84,299

0.3

26,550

6.9

BEIRUT LEBANON

364,226

20.3

6946

10.1

4903

8.8

1,073,157

21.1

18 ,392

9.6

14,549

11.3

DUBAI UAE

-9.1

3,968,672

21.8

201,589

26.5

26,037

9.7

11,470,520

20.4

544, 750

28.1

74,541

89.8

KUWAIT KUWAIT

641,061

4.9

18,149

16.5

8102

1.0

2,020,643

10.5

47,662

10.6

23,710

16.6

MUSCAT OMAN

457,501

39.3

8155

69.6

5484

34.1

1,311,888

32.7

22,653

64.0

15,936

0.8

SHARJAH UAE

508,658

11.3

36,249

3.5

5865

13.0

1,516,424

9.3

111,792

34.3

16,546

4.2

AFRICA ACCRA GHANA

124,392

18.6

3963

-10.3

2248

38.7

351,870

15.0

10,903

-10.9

6377

35.7

1,278,754

19.3

28,271

17.4

12,631

11.8

3,530,160

15.6

82,777

11.9

36,105

11.5

CAPETOWN SOUTH AFRICA

763,347

9.3

n/a

8287

-1.7

2,057,211

4.3

n/a

23,487

-2.6

CASABLANCA MOROCCO

562,573

16.9

4670

-21.9

6347

12.7

1,540,431

14.6

12,578

-16.5

17,919

11.7

CAIRO EGYPT

DAR ES SALAAM TANZANIA

114,312

9.3

1257

-11.3

4584

4.1

351,997

10.3

3734

-13.1

14,150

5.1

JOHANNESBURG S. AFRICA

1,566,009

8.3

24,973

2.1

17,540

1.9

4,237,483

3.3

71,034

13.0

49,099

-0.3

MARRAKECH MOROCCO

301,153

10.0

n/a

2864

13.2

772,565

10.8

253

n/a

7816

13.8

SHARM EL SHEIKH EGYPT

815,011

28.2

n/a

5759

21.1

2,149,413

32.2

n/a

15,581

23.2

12.6

ASIA PACIFIC BANGKOK THAILAND

4,009,905

15.9

113,035

37.8

23,287

10.3

12,130,133

24.0

309,054

43.1

69,053

BEIJING CHINA

6,001,627

14.8

132,786

8.0

43,027

5.8

16,743,526

10.5

350,392

15.1

122,546

5.6

MANILA PHILIPPINES

2,312,352

10.7

36,562

56.6

20,511

4.3

6,476,212

12.0

100,514

59.4

59,321

6.7 3.3

MUMBAI INDIA

2,094,507

15.9

58,962

24.0

21,151

5.2

6,556,373

13.9

161,112

26.4

61,057

NEW DELHI INDIA

2,338,993

15.9

52,050

34.2

22,250

11.4

6,803,510

14.7

137,338

33.2

62,739

8.1

SINGAPORE SINGAPORE

3,448,617

18.8

159,361

18.4

21,960

10.7

9,941,334

16.5

435,087

18.1

63,788

9.0

SYDNEY AUSTRALIA

3,013,262

10.5

n/a

26,071

5.4

8,864,997

9.4

n/a

73,713

4.4

TOKYO JAPAN

5,679,965

0.2

57,265

-15.4

14,315

-0.5

15,291,994

1.0

172,351

-3.9

41,314

-0.2

FRANKFURT GERMANY

4,363,662

8.3

207,044

35.5

40,083

3.0

11,343,816

3.9

535,305

31.5

108,709

-0.0

LONDON HEATHROW UK

5,226 ,542

0.4

139,669

28.6

37,982

-5.9

14,687,912

1.5

370,480

21.6

110,191

-3.1

MADRID SPAIN

4,102,389

5.7

35,599

36.9

36,979

-0.8

10,953,715

6.2

94 ,134

26.3

103,490

0.0

MUNICH GERMANY

2,874 ,545

11.3

23,707

26.3

33,284

-3.7

7,190,684

3.2

60,214

18.5

88,230

-23.7

PARIS FRANCE

4,654 ,929

2.9

183,100

15.1

42,630

-5.8

12,630,741

1.4

485,750

12.4

118,230

-5.7

EUROPE

NORTH AMERICA ATLANTA

7,619,350

5.0

57,272

25.7

81,428

0.2

20,033,934

-0.8

152,435

18.5

227,388

-13.6

CHICAGO

5,635,218

2.5

118,848

46.0

73,387

2.7

14,696,361

2.6

311,917

33.8

203,442

12.1

DALLAS/FORT WORTH

4,825,963

1.8

56,805

25.8

55,586

4.2

12,948,022

0.5

160,174

17.3

157,112

n/a

LOS ANGELES

4,776,073

4.5

147,926

25.2

48,899

4.7

13,346,290

5.7

404,967

25.2

138,679

-15.1

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

July 2010

www.arabiansupplychain.com

AVIATION DATA

EMIRATES SKYCARGO FUEL PRICE INDEX

AIRLINE ON-TIME STATISTICS & DELAY CAUSES: APRIL 2010

450

Air carrier delay 4.30%

On time 85.31%

Weather delay 0.33%

Diverted 0.18%

National aviation system delay 4.45%

Cancelled 0.69%

30April

430 14 May 410

406

23 April

418

4 June

385 370

21 May

373

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

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

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

WEEKLY CAPACITY

WEEKLY FREQUENCY

ASK Million Change (%)

Total

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

WEEKLY SEATS

Change (%)

Total

AIRLINE

Change (%)

EMIRATES

850

520

172,934

219

200

43,368

GULF AIR

-21

-6

16,124

-20

IRAN AIR

-2

15,628

-3

-25

-33

1,320

-33

128

23,766

334

322

72,348

ROYAL JORDANIAN

152

20,846

SAUDI ARABIAN AIRLINES

17,068

MAHAN AIR

5,140

MIDDLE EAST AIRLINES QATAR AIRWAYS

WEEKLY FREQUENCY

AIR ARABIA MAROC

Total

Change (%) 90

Total

Change (%)

13,500

280

45,280

AIR ALGERIE

447

70,923

BRITISH AIRWAYS

12,288

LUFTHANSA GERMAN AIRLINES

114

19,256

TURKISH AIRLINES

Total

WEEKLY SEATS

Change (%)

Total

Change (%)

1367

954

298,646

ETIHAD AIRWAYS

391

336

73,816

AIR ARABIA

126

296

47,952

GULF AIR

169

-29

216

-9

42,971

-26

-67

-70

9,90

-70

588

534

120,272

7,611

304

219

74,305

MAHAN AIR

10,180

OMAN AIR

220

36,556

JAZEERA AIRWAYS QATAR AIRWAYS

WEEKLY CAPACITY

AIR FRANCE

EGYPTAIR

EMIRATES

WEEKLY SEATS

AIRLINE ASK Million Change (%)

WEEKLY FREQUENCY

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

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

WEEKLY CAPACITY ASK Million Change (%)

ETIHAD AIRWAYS

JAZEERA AIRWAYS

Aircraft arriving late 4.71%

Security delay 0.04%

11 Jun 10

4 Jun 10

28 May 10

21 May 10

14 May 10

07 May 10

30 Apr 10

23 Apr 10

16 Apr 10

09 Apr 10

250

121

266

44,662

132

23,378

TUNISAIR

418

70,234

AIGLE AZUR

254

44,076

AIRLINE

WEEKLY FREQUENCY

ASK Million Change (%)

Total

WEEKLY SEATS

Change (%)

Total

Change (%)

EMIRATES

-4

21,250

-2

ETIHAD AIRWAYS

-4

7540

-6

AIR ARABIA

11,340

GULF AIR

-25

7364

-25

JAZEERA AIRWAYS

-32

9240

-32

MIDDLE EAST AIRLINES

4382

QATAR AIRWAYS

100

20,410

ROYAL JORDANIAN

100

-4

10,916

-3

113

-7

238

-10

69,574

-11

2968

SAUDI ARABIAN AIRLINES OMAN AIR

*Data is for week of 8-14 July 2010 against 7-13 July 2009. Regions follow IATA definition. E-mail: dataservices@oag.com www.arabiansupplychain.com

July 2010

RECRUITMENT

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

MOVERS & SHAKERS E Etihad hires vice president of aviation ssecurity and cadet pilot development E Etihad Airways has appointed Captain Salah A Awadh Alfarjalla Al Ameri as vice president of aaviation security and cadet pilot development. T The executive, who is a UAE national, will ensure Etihad’s complia compliance with international rules and regulations governing airline security. He will also manage the cadet pilot training programme and develop career plans for Emirati pilots. With over 30 years of experience in aviation, Al Ameri joins Etihad from Emirates Airlines, where he was line captain on the A330 and A340 fleet. “I am delighted to welcome Captain Salah to Etihad. His vast amount of experience will be invaluable in these key operational areas,” stated James Hogan, CEO of Etihad Airways.

S Airways welcomes John Roijen Safi as chief financial officer (CFO) a S Airways has recruited John Roijen as chief Safi financial officer (CFO), with responsibility for ooverlooking the finance and administration ooperations of the Afghanistan-based airline. A Dutch national national, Roijen holds a masters degree in business administration and previously served as CFO for Virgin Nigeria Airways and Arik Airways. “John is an accomplished finance professional with more than 15 years of experience, directing substantial growth, building productive financial operations and increasing business development,” commented Claus Fischer, chief commercial officer at Safi Airways.

S Airways appoints vice president of Saﬁ ccargo and general manager for Europe S Safi Airways has hired Christoph Götzmann aas vice president of cargo and general manager fo for the European region. Götzmann comes with sseveral years of experience in the aviation field, especially in areas such as cargo, ground operations and flight operations. Before joining Safi Airways, he held several positions with the likes of Ukraine International Airlines, Aer Lingus and Fraport. “Christoph brings with him a wealth of experience and knowledge, and Safi Airways is bound to benefit from his extensive expertise,” explained Claus Fischer, chief commercial officer of Safi Airways.

E Emirates promotes Sheikh Majid Al Mualla in commercial operations team E Emirates has announced the appointment of a new senior vice president in its commercial ooperations team. Sheikh Majid Al Mualla, who sstarted with the company in 1996, has been promoted to senior vice president for the West Asia and Indian Ocean region, after a 12-month stint as vice president. “Majid is a tremendous asset to the company, showing great dedication and talent during a long and distinguished career at Emirates. The fact that he has come up through the ranks provides him with experience and insight that is invaluable to the team and the organisation,” commented Tim Clark, president Emirates Airline. “Majid’s promotion further strengthens our management team and will enhance our ability to meet the challenges which continue to face the industry.”

S Airways recruits Tom De Geytere Saﬁ as chief development oﬃcer (CDO) a A chief development officer (CDO), Tom De As G Geytere is another recent addition to the Safi A Airways management team. He began his career aas a military pilot with the Belgian Air Force and will be responsible for business development, fleet development, cargo and legal affairs. Prior to joining Safi Airways, De Geytere served as manager of business development at Cargolux, the largest cargo airline in the world. “We are confident Tom’s appointment will help to strengthen our presence in the aviation industry,” said Claus Fischer, chief commercial officer at Safi Airways.

C Christoph Blaha joins Saﬁ Airways a as new director of maintenance The fourth and final addition to the Safi Airways T m management team last month was Christoph B Blaha, who has taken the role of maintenance d director. The executive has a doctorate degree for research on aero en engine compressors from Darmstadt in Germany and is vastly experienced, having held several positions at Lufthansa Technik in Frankfurt prior to joining Safi Airways. “Christoph comes with extensive knowledge in aviation maintenance, repair and overhaul,” commented Claus Fischer, chief commercial officer at Safi Airways.

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

www.arabiansupplychain.com

DEPATURE LOUNGE

REWARDING

LOYALTY

Nick Maynard, marketing and communications manager of Royal Jet, explains why the company’s new ‘100 Club’ will bring a number of benefits for customers in the Middle East.

What prompted Royal Jet to launch its new corporate relationship programme? Although corporates have always played an important role in our business mix, we are aware that a more flexible private jet solution is required for this customer segment. With our 100 Club, Royal Jet provides an entry-level solution, so even the lightest users can unlock the benefits of private jet travel. The programme is designed for corporates looking to fly between 20 and 100 hours per year and offers discounts and other benefits. How does the programme work for these corporate customers? Members receive an upfront discount of 5% on the usual charter prices. In addition, as the number of hours that are utilised increases, so does the discount. For example, members that clock up 60 hours over their 12 month membership enjoy a 7% discount. Additional discounts will be applied at the end of the membership period, based on the actual hours flown and rebated to the customer. We also have a unique aircraft multiplier, which takes into account the higher cost of chartering a larger aircraft. Gulfstream carries a multiplier of 1.25, for instance, for a member that flies 32 hours on a Gulfstream aircraft would qualify for the higher 40 hours discount threshold. What type of customers are you planning to attract with this initiative? The 100 Club is ideal for those that acknowledge the benefits and relative cost effectiveness of private jet travel. Many companies travel frequently within the GCC – often to multiple destinations within the same week or even day – in these cases, the argument for private jet is irrefutable. July 2010

How will this be promoted to existing and potential customers in the region? The initiative is being promoted across all forms of communication and to every stakeholder. Through the press conferences, interviews and advertising we’ve had across print, broadcast and online media, we have conveyed the benefits of the 100 Club. In addition, we are also engaging our existing as well as new customers on a more personal level. What reaction have you received from the market to date for the programme? Since the launch of the programme during Arabian Travel Market in May 2010, we have received a tremendous response from both existing as well as new customers of Royal Jet. Our 100 Club marketing team has been busy in meetings with interested parties and judging from those meetings, we are confident of signing up as many members as we can in the coming weeks and months. How has Royal Jet performed as a whole in the first half of 2010? There were signs of a recovery in many sectors during the first quarter of this year, leading to organic growth overall. Our core charter business is doing well with large VIP aircraft such as the BBJ continuing to enjoy huge demand, and our diversified business activities that are very much still within the aviation sector have had positive results.

How does this compare to the same period last year? Royal Jet maintained solid growth in 2009 as our cost-saving initiatives and diversification strategy paid off. During this time, our core charter business performed well and although there was significant downward pressure in the super-midsize category, charter pricing also held up in the BBJ sector and the larger aircraft have maintained strong demand. Our brokerage operation also experienced phenomenal growth, while our Medevac operation has done extremely well too. How has Royal Jet prepared for future growth in the Middle East region? We are currently implementing our fiveyear plan, which goes on until 2014 and includes a significant growth in aircraft numbers. Addressing the huge demand for large VIP jets, Royal Jet will soon receive its sixth BBJ – the A6-DFR. In addition, our multi-million dollar refurbishment programme will see the return of its other BBJ – the A6-RJY – following a complete makeover. An integral part of our diversification strategy is our aircraft management division. Under such service, we manage aircraft owned by others and maximise the return on investment for those owners. Royal Jet will soon have a brand new Embraer Lineage 1000, which we will be operating on behalf of the Al Habtoor Group. www.arabiansupplychain.com