Monthly Newsletter issued by Dubai Civil Aviation Authority
www.viadubaionline.com
Issue 31 December 2015
Inside DCAA
DCAA celebrates 44th 8 National Day DCAA Participation in 10 Dubai Airshow 2015 Azerbaijan delegation 12 visits Dubai Airshow
13
DCAA joins ‘My Family Reads’ initiative
UAE in Focus
Airline industry
Bologna becomes EK’s 16 new Italian connection
Poor Profitability Persists
Dubai South secures 19 AED4 billion funding line
20
Opinions Tapping ASEAN potential
Full compliance with CITES
36
John E Scanlon
Technology 46
37
Anil Wadhwa
‘A small idea has the power to lead to big innovation’
Cargo & Logistics 42
Bader Belselah
14
Airlines 38
ATM 32
Our Smart Services DCAA Smart App will allow the customers the below services: • • • • • • • • • • • • •
Issuance of Landing permissions Issuance of No Objection Certificate for Carriage of Restricted Articles Issuance of No Objection Certificate for Aerial Work Issuance of No Objection Certificate for Aircraft Warning Light Issuance of No Objection Certificate for Heliport Issuance of No Objection Certificate for Pyrotechnic Display Issuance of No Objection Certificate for Building Height (Below 300m) Issuance of No Objection Certificate for Building Height (Above 300m) Issuance of Approval for Heliports Certification Issuance of Approval for Crane Operation Issuance of Approval for GSM or other communication tower Issuance of Approval for Balloon Operations Issuance of No Objection Certificate for Sky Trackers / Space Cannon
Registration Requirements: • • • • • • •
Company Name Company Address Telephone Number Fax Number PO Box City Choose one secret questions
• • • • • • •
Username Password Email Address Name Mobile Number Emirates ID Number Category (Individual - Airline - Agency - Expert - Provider)
You can download the application
by searching in App Store and Play Store by typing DCAA or scan the QR code
For more information, please call technical support on: +971 56 6810685 December 2015 2 email: it.support@dcaa.gov.ae
www.dcaa.gov.ae
CONTENTS In 2007, the functions of the Department of Civil Aviation were restructured. Accordingly, the Dubai Civil Aviation Authority (DCAA) was established as a regulatory body, by a decree of H.H. Sheikh Mohammed Bin Rashid AlMaktoum, Ruler of Dubai, on proclamation of law No. 21 of 2007, as amended by law No. 19 of 2010, to undertake development of Air Transport Industry in the Emirate of Dubai and to oversee all aviation-related activities.
Via Dubai is the official bilingual monthly newsletter of DCAA, designed to highlight the initiatives and developments in the aviation industry and act as a knowledge-sharing platform for all the stakeholders and aviation professionals.
Inside DCAA 07
General Supervision Mohammed Abdulla Ahli
DCAA Participates in UAE Innovation Week
13 DCAA joins ‘My Family Reads’ initiative
Coordinator Hanan Al Mazimi Creative Manager Mohammed Al Jarouf E-mail: viadubai@naddalshiba.com
Legal Disclaimer The views expressed in the articles are of the writers and not necessarily belong to DCAA. We take all reasonable steps to keep the information current and accurate, but errors can occur. The information is therefore provided as is, with no guarantee of accuracy, completeness or timeliness. The DCAA or Via Dubai does not warrant or assume any legal liability or responsibility for the quality, accuracy, completeness, legality, reliability or usefulness of any information. Via Dubai does not endorse or recommend any article, product, service or information mentioned in the newsletter. Any perceived slight of any person or organisation is completely unintentional.
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DCAA Interview ‘A small idea has the power to lead to big innovation’
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Bader Belselah
Printed by Printwell Dubai
Our Vision Dubai Civil Aviation Authority is driven by the vision of Dubai to become the global Aviation Capital contributing to prosperity and enabling growth for Dubai.
Our Mission Dubai Civil Aviation Authority is committed to support the aviation sector in:
E-mail: dcaa@dcaa.gov.ae Website: www.dcaa.gov.ae Tel: (971) 4 216 2009 Fax: (971) 4 224 4502 P.O.BOX 49888 Dubai, United Arab Emirates
u Capturing the full value potential as a global passenger, tourism, trade, cargo and logistic hub u Providing the capacity, connectivity and leveraging existing assets to meet the aviation sector and economic growth plans of Dubai u Ensuring sustainable and responsible growth committed to safety, health, environment and security u Providing and creating customer-focused services to gain competitive advantage from innovation, knowledge and efficiency u Building and retaining capabilities, for the aviation sector, while offering career opportunities for Nationals u Ensuring a transparent, effective and commercially balanced regulatory framework that reflects the interests of the aviation industry, Dubai and the UAE u Providing efficient and cost-effective services to the aviation sector
http://www.facebook.com/DCAADubai
Decemberyoutube.com/user/dcaadubai 2015 twitter.com/DcaaDubai
1
CONTENTS
Connected Aircraft, Disconnected Airlines
UAE in Focus 16 Bologna becomes EK’s new Italian connection
16 Falcon starts scheduled flights from Al Bateen airport
24
contactless departures
44 Boeing loses freighter order as
18 ADB Group selected for Abu
45 WIN expands e-booking
18 Air Canada inaugurates 787
46 NASA is helping commercial
19 Dubai South secures AED4
cargo market sags platform
airlines save time
Slow adoption of IATA Cargo-XML standards 2
17 Dubai airport readies for
December 2015
Dhabi airport expansion Dreamliner service
billion funding line
42
CONTENTS
Cover Story Airline industry
Poor Profitability Persists 20 Beumer launches new baggage handling innovations
International News 30 Airbus opens US
manufacturing facility
30 Over $250 million pooled in for Concorde’s return
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31 IATA: NDC has value to
corporate travel buyers
December 2015
3
4
December 2015
Message
from the President
Dubai Airshow 2015, a remarkable success W
e are proud to share the remarkable success of the 14th edition of the Dubai Airshow that witnessed a record-breaking $37.2 billion order book. This success reaffirms a strong positive growth outlook for every sector of the region’s aviation industry. Dubai Airshow 2015 was the biggest in the history. This year, the Airshow attracted 1,103 exhibitors, 163 aircraft on static display and with 66,346 sector professionals the visitor numbers, broke all previous records. The biennial Airshow, which has grown over five times since its humble launch as the ‘Arab Civil Aviation Show’, has been playing a pivotal role in bringing the global aerospace community together and providing unparalleled business, networking and educational opportunities. This success also reflects Dubai’s ability to lead and support aviation industry worldwide. I am sincerely grateful to our visionary leader His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE’s Vice-President and Prime Minister and Ruler of Dubai, whose constant wise guidance and directives have led the Dubai Airshow to become one of the world’s largest and best shows.
Ahmed bin Saeed Al Maktoum
I would also like to thank the government bodies, companies, all stakeholders for their participation and ceaseless commitment to make the Dubai Airshow one of the world’s most successful events. I would also thank the organisers for their hard work and dedication to making it the best Airshow so far. Building on this success, we promise to the next edition of the Dubai Airshow in 2017 much bigger. Plans are already in place to expand it by more than a fifth and we promise the next edition will create many landmarks. We will continue our journey toward growth and excellence.
December 2015
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Message
from the Director General
Spirit of Union A
s we celebrate the 44th UAE National Day, our heads are held high with pride about the amazing achievements that the country has made in every socio-economic domain since the formation of the federation on 2nd December 1971. The ‘Spirit of the Union’ is the official theme of the UAE’s 44th National Day celebrations aimed at instilling the spirit of the motto in the public mind. The high standing that the UAE enjoys globally for its massive progress and development is the outcome of the vision and farsighted policies and ceaseless commitment of our leadership. The strong foundations laid by late Sheikh Zayed bin Sultan Al Nahyan and late Sheikh Rashid bin Saeed Al Maktoum for an all-encompassing development of the UAE have been consolidated tremendously under the present leadership of His Highness Sheikh Khalifa bin Zayed Al Nahyan and His Highness Sheikh Mohammed bin Rashid Al Maktoum. The UAE is today the Arab world’s second biggest and most-diversified economy with one of the highest per capita incomes. In 1970s, the air services were minimal. Today, Dubai is home to the world’s number one airport for international passengers and is ranked among the Top 10 most-visited destination in the world. The UAE has been rated the safest aviation destination by the ICAO. The UAE is ranked second, next to the US, for having the most number of Open Skies arrangements in the world. In fact, Open Skies policy was pioneered by Dubai way back in 1937. The UAE airlines, Emirates, Etihad, flydubai and Air Arabia, have been charting a successful journey and have a fleet of about 600 aircrafts. Dubai is home to
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December 2015
Mohammed Abdulla Ahli
the Dubai Airshow which is competing to become the top aerospace event in the world in the coming years. The nation aims to reach the Mars with the government setting up the UAE Space Agency. The country continues to focus on the growth and expansion of the aviation industry which will see Dubai becoming home to the biggest airport in the world. The UAE’s aviation industry contributes 15 per cent or $46 billion to the GDP. The local aviation industry currently provides 250,000 direct jobs and 225,000 indirect jobs. The civil aviation sector’s contribution in Dubai’s GDP is expected to surge to 37.5 per cent or $53 billion by 2020 and $88.1 billion by 2030. We take pride in our successes and achievements and we have many more milestones to cross in the future. The spirit of union remains alive in our words and deeds.
Inside DCAA
DCAA Participates in UAE Innovation Week
D
ubai Civil Aviation Authority (DCAA) participated in the United Arab Emirates (UAE) Innovation Week by demonstrating its project to license drones. DCAA’s participation comes in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, aimed at enhancing competitiveness in the UAE in order to contribute to making it one of the most innovative governments in the world. DCAA presented the project prototype and the method for licensing its clients of all nationalities. By participating in the UAE Innovation Week, DCAA seeks to present and explain its services related to this event. The UAE Innovation Week represents an opportunity for all entities to present their innovative ideas and prototypes, in addition to creating an opportunity to acquaint themselves with other entities’ innovative activities, so that they
can benefit and collaborate to create an environment stimulating innovation within the state. DCAA continually looks forward to realizing more innovative and unique projects, in an endeavor to build the culture and innovative capacities needed to create an environment that is in line with development, and in the service of humanity.
The UAE Innovation Week has been launched as part of the UAE’s National Innovation Strategy launched in October last year by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice- President and Prime Minister of the UAE and Ruler of Dubai. Over 214 federal bodies and also private entities participated in more than 850 activities and initiatives during the innovation week.
Walking and Cycling Track, in addition to sports contests dedicated to its employees. The winners were awarded valuable gifts. The event, which highlighted the importance of sports, was conducted in a very friendly atmosphere
and strengthened the bond between employees who come from different nationalities. DCAA makes continuous efforts toward encouraging participation in events that facilitate strengthening of its ties with other bodies.
National Sports Day
I
n line with the initiative of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the Dubai Civil Aviation Authority (DCAA) participated in the National Sports Day under the slogan “UAE Brings us Together”. The event was attended by His Excellency Mohammed Abdulla Ahli, DCAA Director General, and division and department managers and staff. The DCAA’s activities included jogging through Al Khawaneej
December 2015
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DCAA News
DCAA celebrates 44th National Day T
he Dubai Civil Aviation Authority celebrated the 44th UAE National Day. His Excellency Mohammed Abdullah Al-Ahli, Director Gen-
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December 2015
eral, DCAA, gave a speech on the occasion. The DCAA also participated in official celebration of the UAE’s 44th National Day in Abu Dhabi.
DCAA News
Dubai Civil Aviation Authority and Dubai Police General Headquarters sign MoU T
he Dubai Civil Aviation Authority (DCAA) has signed a memorandum of understanding with Dubai Police General Headquarters, under the Partners for Excellence Initiative of the Dubai Government Excellence Program (DGEP), with the aim to activate collaboration and partnership among different government bodies. The signing ceremony took place in the General Secretariat of the Executive Council of Dubai’s head office and was attended by His Excellency. Mohammed Abdulla Ahli, DCAA Director General and His Excellency Major General Khamis Mattar Al Mazeina, General Commander of Dubai Police. The signing was also attended by His Excellency Abdulla Al Shaibani, Secretary-General of Dubai Executive Council and Chairman of Dubai Government Excellence Program and Dr. Ahmad Al Nuseirat, DGEP Coordinator General, in addition to DCAA department managers and its staff. The MoU includes mechanisms to enhance collaboration between the two parties by forming a joint task force to manage and coordinate the partnership based on a joint work plan that includes awareness raising, introduction to excellence standards and evaluation methodologies, and training internal DCAA evaluators by staff of Dubai Police General Headquarters.
The work plan does also foresee the delivery of self-assessment to measure DCAA performance and prepare a work plan to develop improvement areas and opportunities. The MoU emphasises the need to support DCAA in implementing and regularly monitoring the work plan by the leaderships of both parties, and then evaluating performance to measure improvement of DCAA after implementing the development plan. The excellence partners will be awarded at the ceremony by Dubai Government Excellence Program.
The MoU aims to enhance performance via a process of expertise transfer, and by defining distinguished government bodies, in an endeavor to enhance collaboration and to help these bodies develop and rehabilitate their employees. This would also help institutionalize excellence practices and eventually achieve the goals of government excellence set forth in Dubai strategic plan, in addition to upgrading the positioning of Dubai locally and internationally in the field of government excellence. ď‚ƒ
December 2015
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DCAA News
DCAA Participation in Dubai Airshow 2015
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he Dubai Civil Aviation Authority (DCAA) participated in the 14th edition of the Dubai Airshow 2015 in it capacity as the regulatory body responsible for regulating the civil aviation sector in the Emirate of Dubai.
The DCAA’s special platform drew large number of visitors to its services, one of which is registration of unmanned aerial vehicles (UAVs), their smart system, and the applicable procedures to ensure airspace safety.
and illustrating how to present innovative ideas and development comments.
The DCAA also introduced visitors to the Aviation Safety World Summit to be held soon. The event shall feature a host of industry specialists, who would tackle a number of important aviation topics.
The DCAA has also co-participated in the platform of Dubai Airport Free Zone Authority (DAFZA) to demonstrate and explain how to get No-Objection Certificates needed to practice the different aviation activities.
In addition, the regulatory authority introduced visitors to Mohammed Bin Rashid Smart Majlis (Council) application, highlighting its importance,
Since its launch, Dubai Airshow enjoys boundless support on all public and private levels, starting with the leadership represented by His Highness Sheikh
December 2015
It is to be noted that this is the first time the DCAA participated in Dubai Airshow using a platform of its own.
Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, who always stresses on the strategic role of the aviation industry in achieving the comprehensive development of UAE and the Middle East Region. The Dubai Airshow is considered a landmark in the aviation arena bringing all aviation specialists and interested people under one roof to enhance cooperation and forge deals. The aviation sector plays a significant role in achieving sustainable development, and the Show’s strategic location positions Dubai as a global aviation hub connecting East and West.
DCAA News
December 2015
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DCAA News
Azerbaijan delegation visits Dubai Airshow H
is Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority (DCAA) and Chairman of Dubai Airports, Chairman and Chief Executive of Emirates Airline and Group, welcomed a delegation from the Republic of Azerbaijan under the chairmanship of Kamal al-Din Heydarov , Minister of Emergency. His Excellency Mohammed Abdullah Al- Ahli , Director General, DCAA, also received the delegation, who took a round of the Dubai Airshow 2015. ď‚ƒ
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December 2015
DCAA News
DCAA joins ‘My Family Reads’ initiative
H
is Excellency Jamal Bin Huwaireb, Managing Director of Mohammed Bin Rashid Al Maktoum Foundation, visited Dubai Civil Aviation Authority (DCAA) as a part of the “My Family Reads” initiative, launched by Mohammed Bin Rashid Al Maktoum Foundation with the aim to spread knowledge and promote reading in the UAE society.
He was received by His Excellency Mohammed Abdulla Ahli, Director General, DCAA, in the presence of a host of department managers and heads of divisions alongwith DCCA staff. The Foundation made available to DCCA a collection of valuable and diversified books to be circulated to all DCCA staff members, and have them and their families benefit from reading these books. DCCA is keen to cooperate with other entities to sup-
port such cultural and intellectual initiatives, which have a significant role to play in our society. “We continually seek to support such intellectual initiatives, and My Family Reads initiative is one of those valuable initiatives, especially in this current era, which is one of technology and technical information. We thank Mohammed Bin Rashid Al Maktoum Foundation for this initiative, which aims to spread cultur-
al awareness and promote reading amongst all members of the society, and we are very keen on highlighting the role of reading in building one’s character and upgrading their intellectual repertoire,” said Mohammed Abdulla Ahli, Director General, DCAA. DCCA seeks to cooperate and join such societal initiatives, which aim to enhance knowledge about culture and other fields of life and also build creativity, resulting in higher productivity and better future.
December 2015
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DCAA Interview
Bader Belselah, Incharge, Innovations, Dubai Civil Aviation Authority
‘A small idea has the power to lead to big innovation’
B
ader Belselah is the Incharge of Innovations at the Dubai Civil Aviation Authority (DCAA), which is paying special attention to encouraging innovative practices, in line with the ‘National Innovation Strategy’ launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. In his new role, Belselah is strongly committed to making innovation a part of every process in the DCAA. In an interview with Via Dubai, he said he plans to attain this aim through team-work and idea-exchange with other departments to ensure best outcome. “A small idea has the power to lead to a big innovation, which can significantly improve processes,” he said. Excerpts from the interview: Can you share with us details about your role as the Innovations Incharge? My role, alongwith another colleague, is to come up with innovative ideas. In line with the vision of His Highness
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December 2015
Sheikh Mohammed Bin Rashid Al Maktoum, UAE’s Vice-President and Prime Minister and Ruler of Dubai to make the United Arab Emirates one of the world’s most innovative nations, we aim to make innovation an integral part of our functioning with a view to attain excellence, enhance efficiencies, reduce costs and make processes easier. Are there any projects that you have been working on? Our first project has been registration of Remotely Piloted Aircraft Systems (RPAS) on our website or using a mobile application. Through the app you can not only register, it tells you all the rules and regu-
lations related to operating the drones, usage as well as mapping of restricted areas where RPAS cannot be operated. The app gives complete description of usage whether it is for private or governmental users. We recently showcased RPAS and the application during our participation in the UAE Innovation Week. It received a tremendous response from the visitors as they learnt how to apply via the application, how to register drones, we also gave them brochures so they can know more about it. Another idea I am working on is also related to an innovative app about airspace activities, which we will announce in near future.
DCAA Interview
What is ultimate goal in your mind when you work toward coming out with new innovative ideas? Our Director General Mohammed Abdulla Ahli has always encouraged innovation in the DCAA and creative employees are honoured. The aim is to work toward improvement, excellence. For instance, if the workload is more, we need to think of streamlining it, organising it in a better way. If it is training, it should be made easier, understandable as well as useful for people of all levels. We also look at ways to reduce costs, sage time and define the processes and make them smooth and easy to implement. Toward attaining this, our plan is to visit the other departments, spend time with them, understand the work, and see how we can improve things with them .
We are aiming to come out with random solutions, the goal is to have innovative practices. What is your view of the innovation initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum . Indeed it is a great initiative by our visionary leadership who has always encouraged and inspired us and this will further strengthen UAE’s position on the global map in achieving excellence. In case of the Dubai Civil Aviation Authority (DCAA) in particular, as innovation gets embedded in our culture, we will be able to further enhance efficiencies and ensure safety of our skies. Under the guidance of our wise leadership, we will be able to see innovation become a part of each and every process in the DCAA and be the best.
It requires a thorough understanding of their functioning, challenges that they face so we can come out with innovative ideas that can be implemented in all situations. Our focus would also be on quantifying the outcome so that further improvements can be done when required. The goal is to implement ‘smart working’ . All this not only needs research and understanding of different areas, we would also need to stay constantly updated on the latest international practices in the field of aviation, understand the best practices, think creatively and come out with the best possible ideas. We want to encourage everyone in the organization to come out with ideas. A small idea has the power to lead to a big innovation, that can significantly improve things.
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UAE in Focus
Bologna becomes EK’s new Italian connection
O
n November 3, Emirates Airline launched its daily service to Bologna, the fourth destination in Italy after Rome, Milan and Venice. “Every new route is a new opportunity for us,” said Thierry Antinori, Emirates’ Executive Vice President and Chief Commercial Officer. “This new sector will make Bologna a point of entry to Italy for passengers from the Middle East, Africa and Asia.” He stressed Emirates will continue to thrill new customers (on the new route) with its abiding propositions of “quality, convenience and value-for-money”.
Bologna is the capital of the Emilia Romagna region, boasting a diverse portfolio of art, culture, history - and great food. It has easy access to Florence, Pisa and Tuscany, making it an ideal base for travel to Italy. The fourth Italian destination and 38th in Europe for Emirates will be serviced by a Boeing 777-300ER, adding 5,040 international seats to and from the city. Emirates currently operate a triple daily flight to Rome and Milan and dai-
ly flight to Venice. It also operates a daily flight to New York from Milan. With Bologna, EK’s weekly flights to Italy rose to 56. Emirates Airline has been contributing to Italy’s connectivity since 1992, when it first launched flights to Rome. Over the last 23 years, Emirates has grown its presence in line with demand, and today, measured on the basis of flights and purchases of Italian goods and services, the airline supports more than 10,000 jobs in Italy and contributes 747 million Euros to the economy.
Falcon starts scheduled flights from Al Bateen airport
F
alcon Aviation Services (Falcon), a corporate jet and helicopter service provider, is offering offshore transportation to Abu Dhabi Marine Operating Company (ADMA-OPCO), from its base at Al Bateen Executive Airport,
the region’s only dedicated business aviation airport. Falcon will fly nearly 400 ADMA-OPCO’s staff daily, to and from Das Island and Zirku Island, the main
industrial bases for the emirate’s Upper Zakum, Umm al Dalkh and Satah fields. There will be three flights per day on each of Falcon’s two newly acquired Dash 8 Q400 fixed wing aircraft, taking off from Al Bateen Airport, with the passengers clearing security through the newly refurbished Sheikh Zayed Terminal. Al Bateen Executive Airport has undergone several upgrades to its facilities and lounges in order to continue to offer outstanding services to passengers and private aviation operators.
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UAE in Focus
Dubai airport readies for contactless departures I
mmigration counters will soon be relics of the past as Dubai International airport is pressing on with plans for contactless departures as early as next year.
And since sky is not the limit when it comes to passenger comfort, Emirates passengers could get the immigration facility on board before landing at Dubai airport. “We are coordinating with other partners and the contactless process will be launched in the first quarter of 2016,” Major General Obaid Muhair bin Surour, Deputy Director of the General Directorate of Residency and Foreigners Affairs-Dubai, told Khaleej Times on the sidelines of Gitex Technology Week. In the first phase, departure will be without immigration counters and in the second phase it will be imple-
mented for arrivals, he explained. He also talked about the scenario where passengers can complete the immigration or smart gate process on board Emirates planes before landing at Dubai International airport. The combination of advanced passenger information, biometrics, and IRIS on the move technology (IOM) will help the seamless departures and arrivals of passengers at the airport within seconds, he explained. Emaratech - the leading online, smart and technology solutions company in the Arab region - is behind all smart gates in Dubai.
Earlier this year, Emaratech showcased IOM technology in Dubai with its top official saying: “We are currently working closely with our strategic partner, the General Directorate for Residency and Foreigners Affairs, to maximise the benefit of having IOM. We believe that IRIS on the move is the future of intelligent travelling.” Dubai Airport already has 125 e-gates and smart gates where departure and arrival is possible without stopping at immigration counters. Users of these gates require mandatory registration of their passport and national ID. Al Maktoum International Aiport does not have e-gates or smart gates at the moment. Maj-Gene Surour said the new airport will have them next year. The smart gate is recognised as the most efficient and advanced around the world from a technical, operational and security point of view. The smart gate uses IRIS cameras to capture facial and eye biometrics of registered users. Passengers can speed through immigration in as little as 20 seconds. This means, three passengers will be able to proceed each minute using the smart Gate. The smart gates are free to use by registered UAE citizens and residents.
December 2015
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UAE in Focus
ADB Group selected for Abu Dhabi airport expansion
A
bu Dhabi International Airport is undertaking one of its most ambitious expansion projects, with Abu Dhabi Airports Company (ADAC) selecting ADB Group as the main contractor. This partnership aims to enable the airport to be innovative, dynamic and improve the traveller experience, whilst maintaining world-class standards of airside safety and compliance at its existing terminals to
create additional capacity for traffic growth. Using ADB’s SmartExpansion Path methodology, the airfield will be redesigned after a survey of the existing airside infrastructure. ADB will also optimize the airport’s AGL infrastructure including lighting, power, control and surface guidance systems. ADB will set up its regional headquarters and locate its experts and opera-
tional competencies at Abu Dhabi to support ADAC and the Middle East region. More than 70 personnel across key functions and levels – from project and service management, system engineers and maintenance technicians, to health and safety management will be based at this office. In addition, this Center of Excellence will incorporate a Spare Parts Warehouse to allow for fast intervention in Abu Dhabi Airports and the Middle East region. The airport is tackling its operational challenges in a holistic manner with specific ADB solutions. These include its latest AGL and related systems to improve visual guidance, runway availability and safety, operational flexibility and capacity. ADB will install its AGLAS airfield light control and monitoring system, and integrate an A-SMGCS Level 2 and Level 4 system for smoother ground movement.
Air Canada inaugurates 787 Dreamliner service
A
ir Canada has inaugurated new service between Toronto and Dubai, the newest addition to its growing international network. The new route will be operated using Boeing 787-9 Dreamliner featuring its new cabin interior design with three classes of service, including its next generation, lie flat suites in International Business Class. Since December 2014, Air Canada and Air Canada rouge have announced new international service to Dubai, Delhi, Brisbane, Lyon, London-Gatwick, Casablanca, Prague, Budapest, Glasgow and Warsaw. As a result of its ongoing expansion, Air Canada provides scheduled passenger service directly to 63 airports
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in Canada, 52 in the United States and 86 in Europe, the Middle East, Africa, Asia, Australia, the Caribbean, Mexico, Central America and South America. The three-times-weekly service will be operated with the Boeing 787-9 Dream-
liner in a three cabin configuration, and upgraded In-Flight Entertainment available at every seat throughout the aircraft. Air Canada is Canada’s largest domestic and international airline serving more than 200 airports on six continents.
UAE in Focus
Siemens wins new service deal at Dubai airport
G
erman company Siemens announced that its subsidiary has won a services contract from Dubai Airports. Siemens Postal, Parcel and Airport Logistics will provide operation and maintenance services for baggage and material handling systems at Dubai International airport, a statement said. The contract covers Terminal 1, 2 and 3 and a recently established material handling system close to the Dubai Flower Centre.The agreement covers a period of several years with the option for a further extension, the statement said. The long-term contract will help process re-engineering, energy savings as well as cost and time efficiency, the company added.
Dubai South secures AED4 billion funding line
T
he Italian export credit company SACE has announced a €1 billion credit facility to assist the development of Dubai South. The funding can be used for deals with Italian contractors or other goods and service providers from Italy for the development of Dubai South, which is the world’s first purpose-built Aerotropolis being overseen by Dubai Aviation City Corporation (DACC). An agreement for the funding was one of two signed at Expo Milan yesterday as part of an event marking the forthcoming closure of the 2015 Expo and
looking forward to Expo 2020 in Dubai. An initial agreement was also signed with Abu Dhabi Ports to improve links between both parties. The Dubai South deal was signed by DACC’s Executive Chairman Eng. Khalifa Al Zaffin and the CEO of SACE, Alessandro Castellano.
December 2015
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Cover Story
Airline industry
Poor Profitability Persists
A
2020
n IATA white paper says the airline industry, despite the clear value being created for customers and the broader economy, has found it difficult to make an adequate level of profit.
December December2015 2015
Cover Story
A whitepaper by International Air Transport Association (IATA) says low profitability could potentially constrain capacity growth and decreased availability of affordable financing in the airline industry which survived and expanded despite extremely poor profitability persisting. It noted: “Low profitability could potentially constrain capacity growth and access to service, due to decreased availability of affordable financing. However, there has been capital available so far to finance capacity growth. There is a need to attract $4-5 trillion of new capital over the next two decades to buy aircraft to renew existing fleet and meet the needs of the expansion in Asia-Pacific and other emerging regions. Whether sufficient capital will be available and affordable to fund this demand remains to be seen. It is also important to note that debt finance is likely to become scarce and costly due to the implementation of Basel III requirements and that the current policy of low interest rates from central banks may not continue.” The report, prepared with valuable inputs from senior finance executives of Emirates, Qatar Airways, Air New Zealand, Cathay Pacific and KLM, noted that over the past forty years, the airline industry has generated one of the lowest returns on invested capital among all industries. However, whereas other industries with low returns have been contracting, the airline industry has expanded regardless. “This apparent defiance of the laws of economics suggests structural issues and government influence, with some capital investment not requiring direct returns. Market forces are
also not working properly to adjust unprofitable capacity. The disappearance of capacity and the exit of companies are two key adjustment mechanisms through which other industries support normal rates of returns, the study noted. However, in the airline industry, neither of these two mechanisms works. Aircraft capacity usually stays in the market, and disappears only in the very long run, even if particular companies might leave the market.
20 airlines exiting the market annually
Since the 1990s, there have been only about 20 airlines exiting the market each year, representing two to three per cent only, partly due to government bail-outs. Over 1,300 new airlines were established in the past 40 years, an average of over 30 each year (excluding those operating non-Western-built jets). Entry rates have shown no sign of slowing down despite low industry profitability.
IATA predicted that 2015 would see industry aggregate return on capital exceed the average cost of capital for the first time. However, this does not suggest that the challenges driving poor airline profitability for most of its history have been overcome. The median airline was only generating a Return On Invested Capital (ROIC) of just over three per cent in 2014, less than half the average cost of capital, and the most common result – the mode – was a zero ROIC. Titled ‘Supporting Airline Industry Achievement of Sustained Financial Health - IATA Financial Committee White Paper’, the report details the progress of industry initiatives for industry’s sustained financial health.
Strategic Objectives
One of IATA’s strategic objectives is to “give the airline industry the means to improve and sustain its financial health”. The IATA’s Vision 2050 recognized that as the industry continues to grow, it must address issues of capacity, environment, safety, security, and financial sustainability.
December 2015
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Cover Story
Connectivity
In the past 40 years the volume of air travel has expanded tenfold and air freight has grown by a factor of fourteen compared to a three to four fold rise in world GDP, and despite repeated shocks from recessions, terrorism, and disease. Despite the clear value being created for customers and the broader economy, the airline industry has found it difficult to make an adequate level of profit. Although profitability amongst airlines varies, the average profit margin of three per cent is representative of the industry. It does not take much of a rise in costs, government tax, or demand shock to eliminate such a thin level of profit. This net profit figure also shows that there is little left to pay equity investors for risking their capital, the research study noted. The Weighted Average Cost of Capital (WACC) shows what both debt and equity investors expect to earn from investing their capital in airlines. Maintenance Repair and Overhaul (MRO), catering, ground services which have been outsourced by around half the industry, earn an average return of 11 per cent compared to a WACC of 7-9 per cent. Air Navigation Service Providers (ANSP), a few of which have been privatized, earns an average return of nine per cent compared to a WACC of 6-8 per cent. Manufacturers, lessors, and airports have earned no more or less than their cost of capital. The highest returns in the air transport supply chain are earned in the distribution sectors. Computer Reservation Systems (CRS) services provided by Global Distribution Services (GDSs) earn an average return on capital of 20 per cent, double their 10-11 per cent cost of capital. Travel agents also seem to earn high returns but these estimates are highly uncertain as it is difficult to
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The four key strategic areas are as follows: Smarter Regulations, Value Chain Optimization, Innovation and Efficient Processes separate revenue flows from non-air travel business. The airline sector earns the lowest return on capital yet faces the second highest volatility of returns or risk. This indicates that market forces are not working to allocate risk efficiently. Competitive rivalry in the industry is high, partly because of the economics (high sunk costs per aircraft, low marginal cost per passenger, perishable product, and limited economies of scale). Competition is also high because of the commoditization of the airline product that is magnified by the indirect distribution channels currently encouraging competition on price and schedule alone.
Customers’ benefits
The industry has managed to successfully halve its unit costs in real terms over the past 40 years. However, all of those efficiency gains have been passed through to customers in lower prices.
This has created a lot of value to customers, a good thing, but the problem is that it has left the airline equity investors unrewarded for providing their capital. In addition to the market forces impacting the industry, the government continues to influence significantly the financial performance of the airline industry.
Future risks
Low airline industry financial health becomes an issue for other stakeholders if it has societal costs, such as the reduction in service quality and reliability, financial burden for governments or employees, fragmentation into smaller companies leads to use of less-efficient small aircrafts, more congestion, higher operational costs, and greater environmental impact. Many of these issues have so far been seen as signs of inefficiency or poor choices from airlines with the public having little awareness of the low profitability of airlines compared to all other industries. There is a need to address and manage new regulatory measures that have the potential to further reduce the financial health of the industry. A study has been taken up on the potential risk and impact on the airline industry coming from players like Google or Facebook entering the airline distribution market.
New approach
A new industry approach is needed to address the above root causes of lack of sustained airline financial health and to enable improved industry agility. To this end, four key strategic areas for the industry have been identified, within each of which there is a proposed supporting role for IATA. The four key strategic areas are as follows: Smarter Regulations, Value Chain Optimization, Innovation and Efficient Processes.
Cover Story
Aircraft costs represent 20-25 per cent of total airline expenses. About half of this cost is related to financing the aircraft, lease payments, lease transfers, costs related to ownership of spare parts, tools, and insurances. The remaining half is attributed to the maintenance of the aircraft and its components. IATA is currently performing an analysis and investigating options available to address the issue of OEM anti-competitive practices as well as an action plan.
Commoditization of air travel
One of the drivers of poor financial health is the commoditization of air travel. This is aggravated by indirect distribution channels currently encouraging competition on price and schedule alone. Today’s customer expects simplified options and door to door service. However, customers cannot experience a seamless integrated journey of a consistently high quality if travel partners
are not connected. Under the Simplifying the Business (StB) program, IATA has launched a number of initiatives to start addressing these issues.
New Distribution Capability (NDC)
New Distribution Capability (NDC) will increase competition in airline distribution for the benefit of the consumer. The NDC capability will enable further revenue generation, yield improvement through product differentiation, and cost efficiency arising from an open standard, the white paper noted.
API in focus
A focus item in 2016 will be the implementation of Advance Passenger Information (API) in various states, following UN Resolution 2178 on the prevention of travel for terrorist activities, and the tendency of governments to pass on the costs of security system development to the users through a user charge or tax.
IATA is in touch with the main system providers to coordinate an industry position and working closely with the security department and the regions to ensure effective implementation according to international standards without creating additional cost to the users. IATA is focusing on improving and leveraging information from the capacity monitoring database to identify capacity constraints and shift towards proactive CAPEX engagement. Proactive CAPEX campaigns in 2016 will focus on Beijing, Taiwan, Hong Kong, Mexico City, Lisbon, Addis Ababa and Navi Mumbai airports. Progress on other initiatives towards a more balanced customer-supplier type relationship between airlines and airports include a Model Service Level Agreement with concerned stakeholders and the adoption of the IATA Ground Operations Manual, already a reality for 87 members. ď‚ƒ
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Special Report
Connected Aircraft, Disconnected Airlines
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he aviation industry continues to focus on the flashy technologies while ignoring holistic business strategies, argues a white paper. New-build eEnabled aircraft will represent 35 per cent of the in-service commercial transport fleet in 2025.
December 2015
Special Report
The aviation industry continues to focus on the flashy technologies while ignoring holistic business strategies and airlines and suppliers will miss their chance to differentiate as agile, efficient players and may even risk their own financial future, argues a white paper on the Future of eEnablement by Avascent and Closed Loop Consulting. It says: “The latest and greatest concept looking to take hold within the airline industry faces an identity crisis. If not resolved quickly, this crisis could compromise billions of dollars in investment and hinder substantial and much-needed efficiency gains for the aviation community; it would ultimately serve as yet another spectacular example of an industry-wide technical initiative gone wrong.” It added: “The massive influx of new technologies connecting aircraft ‘nodes’ with the broader aviation ecosystem has on the one hand been impressive. Holistic strategic and business outcomes have been overlooked…. eEnablement is an organizational and technical challenge…. It will require both airlines and suppliers alike to reexamine ‘business as
usual’ in order to deliver the agility and efficiency necessary to succeed in the 21st century.”
and perceptions of how to actually establish, harness and manage these new data sets and networks.
The study noted that the rapid introduction of advanced IT systems onboard aircraft has made airlines eager for new operational efficiencies and financial gains. In turn, industry has answered with exciting new technologies that improve communications and create mountains of data. Yet for every potential end-user and for every aircraft supplier with a component to ‘connect’, there are wildly different organizational imperatives
What is eEnablement?
This paper argues that airlines that have not adopted eEnablement strategies within five years will find it difficult to exist. When viewed as a holistic approach, eEnablement has the potential to usher in a fundamental shift that the entire industry has sought for a long time. In its truest form, eEnablement is not just another “technology-first” program like Digital Data and Electronic Flight Bags (EFB) that have come before it. Rather, it is driven by well-defined business outcomes that are part of an overarching strategy for the entire organization. eEnablement is a means to build operational efficiency, capability and financial gain, all via data creation, subscription, analysis, consolidation and value-added capabilities that extend across all airline divisions. A structured process, an understanding of cultural and organizational nuance, and experience are all underly-
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Special Report
ing necessities to extract value from the rapidly expanding data troves available to airlines, both today and into the future. Boeing first coined the “eEnablement” concept back in 2003 during the launch of the 787. Yet today, too many airlines want to turn off “Big Data” because they are struggling to find any intrinsic value in the terabytes of data driving up 787 ACARS bills nearly 20 fold. A challenge that remains for all interested parties is to identify, prioritize and then pursue the many compelling strategic and business reasons for “connecting the airline.” Boeing’s 787 and Airbus’s A350 have of course laid the groundwork for eEnablement, yet many operators have begun to realize that operating next-generation aircraft alone does not make an airline eEnabled. It is not only an immense challenge to manage the half-terabyte of new data created every flight, but running these “connected” aircraft alongside “unconnected” legacy aircraft has add-
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There are parts of the E-Aircraft concept that are starting to happen now ed significant complexity to airline operations. Despite OEM’s aggressive production schedules, new-build eEnabled aircraft will only represent roughly 35 per cent of the in-service commercial transport fleet in 2025. It is entirely possible to create a seamlessly connected fleet, and an eEnablement strategy will allow airlines to realize the value in doing so. Airlines must now differentiate from competitors through highly efficient operations and exceptional
customer service. Despite major advancements in airspace management technologies (including SESAR and NextGen in Europe and the United States, respectively), congested air transport infrastructure is already the norm. By 2034, 7.3 billion passengers are expected to flow through airports, more than doubling the current 3.3 billion passengers that traveled in 2014. eEnablement will be a critical tool for managing an airline’s response to this demand. eEnablement has primarily just focused on connecting passengers and flight crews. The further that eEnablement programs can extend beyond just the passenger, the higher the effective value of the overall system.
Where Do We Go From Here?
Improving the success of eEnablement does not hinge on better technology. The wide spectrum of connectivity products available today is already impressive enough to meet
Special Report
airline needs, but gadgets and terabytes of “Big Data” alone cannot deliver the desired outcomes of true eEnablement. New organizational and strategic approaches are needed, where solutions are built around desired business outcomes that are unique to each airline’s market position and operating disposition. When an airline CFO recently learned that his airline had three different Satellite Communications capabilities originating from three different departments, his bewildered response – “Do we?” – is indicative of the overwhelming need for new approaches to eEnablement. The true operational and financial benefits of an eEnabled aviation ecosystem are still years from being fully
realized – yet careful planning must be a near-term priority in order to ensure long-term agility and success. Meanwhile, aviation industry experts argue that the full aircraft e-Enablement will take five-plus years. While the E-Aircraft concept sounds simple enough – offering nose-to-tail connectivity to support airline safety and operations, plus crew and passenger applications – a concerted, industry-wide rollout of the concept has been anything but simple. E-Aircraft is referred to as aircraft “e-Enablement” in the airline industry. There are parts of the E-Aircraft concept that are starting to happen now. But, it’s going to be five to seven years before you see an aircraft or an airline that is really up and running with vibrant, real-time data sharing, the expert said.
Airlines must now differentiate from competitors through highly efficient operations and exceptional customer service
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Middle East News
QAIA impacted by regional unrest Q
ueen Alia International Airport (QAIA), the home hub of Royal Jordanian Airlines and a secondary hub for UAE’s Air Arabia, has witnessed regional unrest playing a major role in weighing down its passenger numbers compared with the traffic growth in the Arabian Gulf region. There has been a significant drop in inbound tourism to Jordan as well as in transfer passengers.
the transfer segment and the general slump in inbound tourism.
This is attributed to two main reasons -Royal Jordanian’s decision to cancel multiple routes due to the prevalent regional geopolitical situation, which resulted in a major decrease in
Kjeld Binger, CEO of Airport International Group (AIG) which is responsible for the rehabilitation, expansion and operation of QAIA since 2007, remarked: “Despite the
obstacles we are currently facing, our future outlook remains very positive. We have momentary issues with traffic growth at this particular stage. However, I am confident that by 2030 we will have more than doubled our traffic to 16 million passengers at least.”
Biz jet numbers to soar 88 per cent in MENA
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he number of business jets in the region could grow from current 395 to 745 by 2023, marking an in-
crease of 88.6 per cent, according to a Market Forecast report published by the Bombardier Business Aircraft.
Saudi Arabia, UAE and Turkey took delivery of the largest number of business jet in the Middle East, accounting for more than 70 per cent of the industry’s overall fleet in the region. Saudi Arabia alone took a lion’s share 26 per cent. It said Middle East private jet users have begun to understand the value of hiring a private jet, in terms of less time spent at the airport, and better reliability. It was revealed that Nice was the most popular destination for Gulf private jets users in the first half of 2015, with a total of 328 trips, followed by London with 290 trips and Paris with 260 trips. The global business jet market is projected to grow at a CAGR of 6.86 per cent to $33.8 billion by the end of 2020.
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Middle East News
Gulf Air posts best annual results since 2004
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ulf Air has posted its 2014 financial and operational results, the airline’s strongest financial results in a decade. The results reflect a fall in annual losses from BHD93.3 million in 2013 to BHD62.7 million in 2014 – equivalent to a 32.8 per cent reduction. Sheikh Khalid bin Abdulla Al Khalifa, Bahrain’s Deputy Prime Minister and Chairman of Gulf Air’s Board of Directors, said the performance reflects a steady and continued improvement in its financial and operational business with targeted efforts to maintaining the airline’s strategic direction that ultimately encouraged solid customer growth, enhanced global bookings and a resultant marked improvement in financial and operational results.
Oman Air gets its first Boeing 787 Dreamliner
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man Air has received its first Boeing 787 Dreamliner, one of the six 787-8s the sultanate’s national carrier ordered in November 2011 as part of its expansion plans. Paul Gregorowitsch, CEO, Oman Air, said: “Our decision to invest in this game-changing airplane underlines our confidence in the 787 and the value it will add in terms of reliability, operational efficiency and comfort.”The Boeing 787 Dreamliner will be deployed for services to Saudi
Arabia and Europe. Boeing currently has eight 787 customers in the Middle East with a total of 175 Dreamliners ordered and 140 in backlog. In the past year alone, Oman Air has added a new plane every month, and attracted 1 million extra passengers -- up from five million to six million. “We are growing to 10 million guests on board,” remarked Peter in an interview with CNN. “And we are going to do that in 2020, with 70 aircraft and 75 destinations.”
Last year, the airline continued to strategically shift from low-value transit traffic through Bahrain to high-yield, high-demand, point-to-point routes focused largely in the MENA region which resulted in a 15.4 per cent rise in total revenue passengers.
$600 million savings by ATC enhancements in Oman
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n estimated $600 million in economic benefits can be achieved in the Sultanate of Oman over the next 10 years by delivering enhancements to air traffic control (ATC) systems, according to a new report commissioned by NATS, the UK-based ATM specialists. The independent report, Economic Benefits of Improvement to Air Traffic Control, was undertaken by Oxford Economics, says about $16.3 billion in economic benefits can be generated in the region by avoiding
a doubling in delays over the course of that period. Upgrades to Oman’s air traffic management systems have been ongoing in parallel with airport developments. Oxford Economics also calculated the average flight in Oman was delayed by 27 minutes and that 82 per cent of those delays could be attributable to air traffic capacity issues. By 2025, without further investment in air traffic control, a doubling of delay minutes to 44 minutes would cost the country $600 million.
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International News
Airbus opens US manufacturing facility
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irbus inaugurated operations at its first ever US manufacturing facility. The plant – which assembles the industry-leading family of A319s, A320s and A321s – is officially open for business, with a skilled team of more than 250 Airbus manufacturing employees now at work on the first US-made Airbus aircraft. “Our commercial aircraft production signifies two things: that Airbus has become the first truly global aircraft manufacturer, and that Airbus is now also a truly American manufacturer,” said Airbus President and CEO Fabrice Brégier. “With the addition of our US facility to our production network in Europe and Asia, we have strategically expanded our worldwide industrial base.” The Airbus US Manufacturing Facility is an important step forward in Airbus’ strategy, strengthening our position as a leader and competitor in all of its key markets.
Over $250 million pooled in for Concorde’s return
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he most impressive passenger jet in history could return to our skies, with a committed group of fans raising nearly $250 million to see the supersonic wonder restored to its former glory. The aircraft was retired in the early 2000s, due to a combination of searing fuel prices and a much-publicized catastrophic crash in Paris in July 2000, which killed 113 people. Club Concorde, a group of enthusiasts including pilots and fre-
Boeing begins final assembly of first 737 MAX
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oeing employees in Renton, Washington, have started final assembly on schedule of the first 737 MAX 8, the first member of Boeing’s new, more efficient single-aisle family. After the first fuselage arrived from Spirit Aerosystems in Wichita, mechanics began installing flight systems and insulation blankets. Crews next moved the fuselage to the wing-to-body join position on the new production line where the first MAXs will be built. Mechanics then attached the wings to the body of the airplane. The wings feature Boeing’s new Advanced Technology winglets. Designed exclusively for the 737 MAX, they will give customers up
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quent fliers, has more than $250 million they will use to buy one of the planes for display as a London tourist attraction and to purchase and restore another for air shows, special events, and private charter. Club Concorde President Paul James, during the aircraft’s heyday, worked as a tour operator and chartered Concorde 19 times for luxury trips. A particularly extravagant excursion was a one-day visit to the pyramids in Cairo in 1982; priced at £780, it was marketed as the most expensive day trip in the world.
to 1.8 percent additional fuel-efficiency improvement over today’s inline winglet designs. Boeing will build the first 737 MAXs exclusively on the new production line in the Renton factory. Once mechanics prove out the production process, the team will extend MAX production to the other two final assembly lines in Renton. The 737 MAX team remains on track to roll out the first completed 737 MAX by the end of the year and fly it in early 2016. Launch customer Southwest Airlines is scheduled to take delivery of the first 737 MAX in the third quarter of 2017. In total, the 737 MAX family has 2,869 orders from 58 customers worldwide.
International News
IATA: NDC has value to corporate travel buyers
Ethiopia to break ground for new mega airport
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he Ethiopian Airports Enterprise (EAE) will soon break ground for the mega international airport construction it is planning to undertake in the vicinity of Addis Ababa.
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he leading global airline lobbying group is promoting a study that says corporate travel buyers will like its effort to change the technical standards for distributing airfare content if they are better educated about it. The study confirms the suspicion that most travel managers have relatively low knowledge of what the New Distribution Capability (NDC) effort is all about. Their overall attitude toward it was neutral, on average. wThe study, Global Travel Manager Perspectives & NDC, commissioned by International Air Transport Association (IATA), is based on interviews with 17 corporate travel buyers from five continents. The study suggests that an education effort reaching corporate travel managers could win them
over. That’s a task that the justformed IATA Travel Manager Advisory Group has taken on. The study also suggests that the biggest hurdle the advisory group will have to overcome is a fear among some travel managers that NDC “will increase the practice of price and content variance by channel.” IATA stated: “NDC is a travel industry-supported program launched by IATA for the development and market adoption of a new, XML-based data transmission standard that is intended to enhance communications between airlines and travel agents.” The report says that the travel managers they spoke to represented companies that do in excess of $3 billion a year in business travel expenditure and are thus representative of the industry as a whole.
Ethiopian Minister of Transport, Workneh Gebeyehu, said the new mega hub will move the aviation industry in Ethiopia to a higher level. When completed the new mega airport will have the capacity to handle 120 million passengers a year.It will make Addis Ababa the aviation hub of Africa. The new airport will be the second mega project in the country (next to the Great Ethiopian Renaissance Dam), he said. The EAE has hired the French consultancy firm, ADPI, to undertake the study on new mega hub airport construction. It plans to build an airport city. ADPI has been working on the site location for the past one year. ADPI had selected eight locations as possible construction site. After conducting a thorough detailed technical study and analysis, ADPI proposed three locations. ADPI recently submitted the report to the EAE.
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ATM
ATC organizations embracing VoIP
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he Air Traffic Control (ATC) organizations across the world have started to replace proprietary, time-division multiplexing (TDM) communications hardware with standards-based, VoIP-enabled systems.
There are a number of key factors driving this big chance in its voice communications infrastructure. These include telecom service providers phasing out their leased line TDM services, EUROCONTROL, US Federal Aviation Administration (FAA) and other organizations are mandating interoperability requirements in order to handle increased air traffic and increased move towards Remote Controlled Air Traffic Control Towers. A white paper by the US-based VoLTE Systems says mitigation of these issues through the introduction of new IP technologies presents a challenge for ATC authorities and
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organizations as it will alter the way they provision and manage their business. They will need to make plans now to ensure cost-effective provision and effective management of the new technologies whilst maintaining all important resilience and system interoperability. The challenges facing the ATC organizations will be met with the increasing use of IP technology. VoIP for Radio and Telephony offers operational functionality and flexibility which would have been unthinkable with the TDM sys-
tems. This flexibility does not come without concerns and drawbacks, however. Whilst VoIP can provide savings in terms of operational costs due to the sharing of different services on the IP network, major attention needs to be paid to resilience and quality of service to ensure that no critical voice communications are lost or corrupted due to contention issues related to these other data services using the IP network. Many ATC system operators are already using IP networks to transmit radar and flight plan data. Using this IP infrastructure for voice as well creates synergies in procurement, operation and maintenance;
ATM
all of which can lead to significant savings. In the past, TDM-based systems relied on large, centralized switching nodes. In contrast, modern IP-based systems make use of distributed network intelligence and do not require a central switching system.
A working group made up of ANSPs, equipment manufacturers, regulators and standards bodies has been working under EUROCAE to develop global standards for ATM VoIP such as ED-137. Northrop Grumman is a member of the EUROCAE Working Group 67.
These cost savings can however be harder to achieve during the transition phase as ‘legacy’ TDM and ‘new’ IP networks will have to be run side by side.
Many customers have sourced VoIP solutions from Northrop Grumman. In Uruguay, Northrop Grumman was chosen to provide 86 radios across eight sites for the world’s first countrywide end-to-end VoIP-based VHF ATC system.
Northrop Grumman, in a study, noted: “As telecommunications service providers around the world prepare to replace analogue networks with internet protocol (IP) alternatives, the air traffic management industry is proactively responding…. Telecoms providers are migrating from analogue to IP, with analogue services scheduled to be removed altogether within the next decade, or earlier in some countries. Many customers are deciding to start the transition now, addressing each element – including the network itself, radios and other IP components – in a phased approach that makes the transition more manageable.”
The migration to VoIP in Iceland began in 2010, when the world’s first live VoIP controller to pilot communication based on EUROCAE Working Group 67 standards was achieved. In the UK, a VoIP system was implemented in 2013 for the ATC in the East Shetland Basin. Romanian air navigation service provider ROMATSA relies on IP-based voice communications system for
its distributed tower and approach installations at three locations in Bucharest. Germany’s Rohde & Schwarz says by deploying radio and Voice Communications Systems (VCS) equipment that follows EUROCAE’s ED137 standard, ANSPs can be assured that the various system components interoperate properly with one another. Sharing the same VCS resources between different operational locations connected via redundant layer two networks significantly reduces the investment required of ANSPs. VCS are an essential part of the infrastructure used by air navigation service providers (ANSP) to ensure safe and economical air traffic operation. Geographical redundancy with VCS elements placed at different locations provides additional resilience against system failure. VoIP is the technology of the future in ATC sector.
It added: “By adopting IP instead of analogue technology, customers will be well-placed to meet Single European Sky (SES) requirements, as IP makes it much easier to switch signals from one radio site to another than is possible with analogue signals. In some cases, the desire to adopt IP has also been driven by economics: IP connectivity between radio sites and control rooms and towers can be significantly less expensive than using analogue phone lines.”
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ATM
Thales to modernize Shanghai ATC systems
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hales and Beijing Easy Sky Technology (BEST), a Thales–TEDC joint venture, have signed a contract with the Civil Aviation Authority of China (CAAC) East Air Traffic Management Bureau (East ATMB) to implement a new Air Traffic Management automation system in Shanghai.
Roadmap to harmonize ATM in GCC
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he Gulf Cooperation Council (GCC) Air Navigation Committee has awarded aviation consultancy Helios a contract to develop a detailed study and implementation roadmap to harmonize air traffic management (ATM) provision across the six GCC states. The project is the first step toward a “seamless” airspace for the region and is expected to help deliver additional capacity and improved ef-
ficiency necessary to meet increasing demand. The study is planned to last 15 months and will be based around two scenarios. The “initial operational” scenario focused on increasing interoperability and delivering benefits in the short term by identifying opportunities for developing common standards, operational concepts and improving operational and technical interoperability.
Through this contract, Thales, together with BEST, will upgrade the Shanghai airspace and airport management systems. This will include the Shanghai terminal maneuvering area and surface operations at Shanghai Pudong and Shanghai Hongqiao airports.
Jamaica to commission new ATCs
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wo new state-of-the-art air traffic control towers, constructed at a cost of $2.57 billion, are to be commissioned into service at the island’s two major international airports - Norman Manley in Kingston and Sangster in Montego Bay by December. The towers will “greatly enhance the reliability and efficiency” of Jamaica’s air navigation system, in addition to enhancing the work environment for the air traffic controllers.
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Jamaica Civil Aviation Authority (JCAA) Director General, Nari Williams-Singh, says JCAA provides air navigation services for the estimated 178 flights per day, which traverse Jamaica’s airspace. The investment is part of a comprehensive $4.2 billion modernization and upgrading program to replace major components of its communications, navigation and surveillance systems. The 21-month project is expected to see benefits over the next 12 to 15 months.
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Opinion
Full compliance with CITES and may also give rise to potential legal, reputational and financial risks to all actors in the air transport sector.
John E Scanlon Secretary General CITES
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he Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) regulates international trade in over 35,000 species of wild animals and plants. A significant amount of wildlife and wildlife products are legitimately traded each year under CITES. Many of these items are transported by air. However, air transport is being used by criminals to transport their contraband. Over recent years we have been experiencing a surge in illegal trade in wildlife. We are increasingly being confronted by transnational organized criminals. They are driving this industrial scale poaching and illegal trade destined for illicit markets – with the profits being used for all manner of criminal activities. It continues to be a major problem worldwide, estimated by some to be worth up to $20 billion a year – ranking it amongst other serious transnational crimes such as the trafficking in people and arms. Unfortunately, legitimate forms of transport are being exploited by transnational organized criminals and others to transport their contraband. This can pose a safety risk to airline staff and passengers
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We are certainly not asking the air transport industry to become de facto customs or enforcement agencies, which perform core functions of government. But enforcement agencies cannot operate in isolation, they require access to good information and intelligence from multiple sources and this is where the transport sector can play a critical role. I sometimes get pressed to either encourage airlines to adopt such bans or to lift bans that have been put into place – I do not intend to do either. What I will continue to do is to actively promote full compliance with CITES requirements, both global and national, which form part of the essential fabric of the rule of law. Edited excerpts from the speech at the ATAG Global Sustainable Aviation Summit 2015, Geneva
Opinion
Tapping ASEAN potential E
nhancing connectivity between ASEAN and India has formed a major thrust of our erstwhile Look East Policy, and it’s more recent and refined version as the Act East Policy today. Connectivity in all its aspects - physical, digital, institutional and people-to-people, is one of the foremost priorities in the ASEAN-India strategic partnership. Two-way trade between ASEAN and India crossed $76.53 billion in 2014-15, with ASEAN being India’s fourth largest trading partner, and we being ASEAN’s seventh largest partner. Two factors that have a significant bearing on trade and investment are connectivity and access to infrastructure finance. Enhanced air connectivity will play an important role in reaching our trade target of $200 billion by 2022. As India strives to transform itself into a global manufacturing hub by building regional production and supply chain networks with Southeast and East Asia, improved air connectivity would be essential to fulfilling our economic objectives in the region.
Anil Wadhwa Secretary (East) Ministry of External Affairs India
services. On the air connectivity front, India and ASEAN carriers are also entering into code share agreements with foreign airlines. Once the market size becomes bigger, more and more carriers between India and ASEAN could engage in joint ventures, for serving new destinations and promoting sales across borders. Business opportunities are therefore ample. However, to unlock such potential, we need both concrete steps and strategy. Edited excerpts from the speech at India-ASEAN Air Connectivity Roundtable, New Delhi
Allowing ASEAN companies in cargo operation could not only bring valuable FDI to India, but also help introduce new technology to the airlines industry in India. The continued growth of low cost carriers (LCCs) and their increased penetration into both Indian and ASEAN markets has made air travel more accessible. However, India’s passenger air travel arrangements with ASEAN countries are not unified at present, with, for example, only five out of 10 ASEAN countries having a direct flight connection to India at present. Rising consumer demand needs to be met with joint efforts between ASEAN and India for improved air
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Airlines
Recipe to boost airlines’ bottom lines
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white paper by Frost & Sullivan has outlined the challenges facing the Chief Financial Officers (CFOs) of airlines and asserts that automation, integration, accuracy of information and speed of processing are the key to a best-in-class approach to financial management.
The report noted that many of the CFOs’ decisions and concerns are cyclical (fuel hedging, aircraft leases, FOREX management and treasury), requiring undivided attention at regular intervals. Other concerns like financial processes can be addressed positively and definitely through strategic initiatives.
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It noted: “There are opportunities to streamline financial processes all the way from the point a sale is performed (via any channel) to the point the corresponding revenue shows up in the revenue accounting system and is transmitted to the financial system. Moreover, Revenue Integrity and Analytics are building blocks of finan-
cial processes because they safeguard the airline’s revenue and provide the necessary visibility to decision makers.” The study explored three basic notions: financial processes have never received enough attention in airlines, but financial executives are about to
Airlines
change that through powerful initiatives that can improve the bottom line; lean and relevant financial processes are an enabler for the development of the airline product, including the customer experience; and integration of financial processes will optimize the top line because it allows airlines to exploit analytics, which will contribute to better management of information and better decision making.
Holistic View
The ability of an airline to holistically manage financial processes will determine the strategic choices available to it, both commercially and operationally. To maintain this holistic view, the study recommended that CFOs first consider the hierarchy of Transaction Accounting, Reporting and Analytics factors within each financial process. CFOs should optimize Transaction Accounting, Reporting and Analytics horizontally across the financial processes. Optimal financial processes will provide the best possible visi-
bility, accuracy and decision support tools, making it much easier to preserve financial health. Taxes aside, CFOs are eager to ensure that correct fares, fees, and charges are billed to interline partners and that correct billings are received from plating carriers. Even within alliances, revenue leakage from partner airlines can be significant. IATA believes its own interline settlement improvements can save the industry $500 million annually, but this is dependent on airlines embracing tools and standards.
Payment methods
Airline financial executives are concerned about the speed, cost, compliance, convenience, and security of payment methods. IATA has found that airlines are increasingly focusing on the impact on cost, payment leakage and fraud prevention of different payment methods. Increased popularity of prepaid services add a level
of complexity to the financial processes because revenue accounting must now get involved in activities that would have gone through the financial system directly had they have been post-paid. In Frost & Sullivan’s opinion, the greatest value of integration is between the processes of Revenue Accounting, Revenue Management, and Revenue Integrity. Numerous top-brand airlines have already made headways into integration. For a medium-size airline with 750,000 interlining passengers, this could boost revenues by up to $1.5 million.
Third-party Relationships
Airlines have simplified sales channels, eliminating bricks-and-mortar points of sale, and indirect channel sales have also declined, as airlines drive sales towards proprietary online channels. Most LCCs realize more than 90 per cent of sales in direct channels. ď‚ƒ
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Airlines
Southwest Airlines pushes for growth
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outhwest Airlines’ efforts to expand global operations through increasing aircraft fleet size and growing the number of destinations is forecasted to give a significant push to its top line growth. To improve its performance, Southwest is successfully expanding globally with the start of its service to Puerto Vallarta (PVR) in June and a daily service connecting Denver and PVR starting in November 2015.In second quarter of 2015, Southwest Airlines enhanced its
Air India to launch San Francisco-Delhi flight
fleet count by 10 to 689 aircraft by the quarter end, reflecting the second quarter delivery of five pre-owned Boeing 737-700s and six new Boeing 737-800s coupled with the retirement of one Boeing 737 Classic aircraft. Southwest Airlines is presently managing approximately 700 aircraft during 2015 and forecasts to expand its net fleet by about two percent on yearover-year basis during 2016.
Wizz Air deal for 110 Airbus A321neos
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ungarian low-cost carrier Wizz Air has formalized the memorandum of understanding (MOU) it announced at the Paris Air Show in June to purchase 110 Airbus A321neos. Wizz Air said the order was worth $13.7 billion at list prices and that Airbus has granted ‘significant’ discounts. The airline added that it retained its commitment to purchase a further 48 aircraft from Airbus, comprising 21 A320ceos and 27 A321ceos.
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ir India has announced the launch of a non-stop flight to San Francisco from December 2. San Francisco will be the national carrier’s fourth destination in the US after New York, Newark and Chicago where it operates daily non-stop flights. The Boeing 777-200 LR (Long Range) flight will be a boon to the Indian diaspora on the US West Coast as it will make travel easy and convenient for students, NRIs and business travellers looking for direct options to connect with India. The new flight would connect passengers from Indian cities of Bengaluru, Mumbai, Chennai, Kochi, Hyderabad, Ahmedabad, Kolkata, Pune and Bhubaneswar.
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The first Wizz Air A321ceo aircraft will enter service in November, configured with 230 seats. All aircraft under the existing order are scheduled for delivery by 2018. The new agreement includes the purchase of 110 Airbus A321neos for delivery between 2019 and 2024.
Airlines
flydubai selects Mindtree as STP
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indtree has announced a strategic partnership with flydubai to shape the full digital experience of the connected traveller. Mindtree will focus on transforming flydubai’s information technology to support passenger sales and service systems, including services such as electronic ticketing and real-time baggage tracking. The agreement will also extend to other strategic business areas such as revenue management, target
monitoring, ancillary revenue and operational optimization. Mindtree will work with flydubai to digitize their value chain, hone operations and create remarkable experiences for each traveller before, during and after their journey. flydubai has a fleet of 49 new Next-Generation Boeing 737-800 aircrafts operating to more than 90 destinations across Africa, Caucasus, Central Asia, Europe, the GCC, Middle East and the Subcontinent.
$250 billion potential for Indian aviation by 2025
AA, Delta to end interline agreement
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merican Airlines and Delta Air Lines have ended their interline agreement that allows them to sell tickets on each other’s flights. “We have been unable to come to terms on an agreement with Delta and, as a result, have mutually agreed to end our interline agreement effective September 15,” American spokesman Casey Norton said. An interline agreement lets one airline sell a ticket on another airline with all or a portion of the trip on the other airline.
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n industry report said that if certain policy measures are undertaken in a time-bound manner, India’s domestic aviation industry has the potential to grow from its current level of $23-25 billion to $250 billion by 2025. The Tata Vistara-CAPA report has identified measures like removing the 5/20 clause, better regula-
tory framework like simplifying route-disbursement-guidelines, reducing fuel taxes, and investment in airport infrastructure, as necessary to give a fillip to the aviation industry. Such measures would lead the domestic air traffic to increase threefold and contribute up to five per cent of the country’s GDP.
Without the interline agreement, a traveler would have to buy two tickets and have to pick up and recheck any checked bags. The interline agreement is the lowest level of cooperation between airlines.
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Cargo & Logistics
Slow adoption of IATA CargoXML standards
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white paper by International Air Transport Association (IATA) has revealed that the wider air cargo community has yet to embrace the Cargo-XML standard. The global trade body says the air cargo industry is in its early stage of implementing the new messaging standards for modernizing the air cargo electronic communications. in air cargo domain. One of the impediments to the adoption of the Cargo-XML standard is the dependency on Cargo-IMP. One common concern of air cargo stakeholders is how to support its partners who continue to use Cargo-IMP once they have transitioned to Cargo-XML. Though it is possible to support users of Cargo-IMP within a Cargo-XML solution, this may result in compromising certain benefits of adopting Cargo-XML. On the other hand, to take the full advantage of the Cargo-XML standard, updates to the existing cargo/messaging systems as well as backend databases is required.
Representing 260 airlines or 83 per cent of total air traffic, IATA stated that air cargo transports over $6.4 trillion worth of goods. In 2014, airlines transported 51.3 million metric tonnes of goods, representing more than 35 per cent of global trade by value but less than one per cent of world trade by volume. The study noted that the air cargo industry is facing a number of challenges in embracing the e-vision in the air cargo supply chain communication.
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One of the major challenges is the limitations of electronic messaging. Cargo-IMP were initially developed for interline purposes, but later the use of these messages was extended to large freight forwarders and ground handlers for booking and operational purposes. The document says the wider air cargo community has yet to embrace the Cargo-XML standard. Industry members are highly dependent on the IT companies providing solutions
The white paper noted that the common challenges associated with the Cargo-IMP Messages include airport to airport focus, airline centric, for large players only, limited internet connectivity, costly to develop and maintain, high transaction cost, poor data quality and length and character limitations. The IATA Cargo Services Conference (CSC) decided to freeze the Cargo-IMP Messages and discontinuation of the IATA Cargo-IMP Manual. IATA is actively working on the development of new Car-
Cargo & Logistics
go-XML Messaging standards as the successor to the existing Cargo-IMP Standard. The Cargo-XML Task Force (CXMLTF) is responsible for the development of the standard and has already developed the Cargo-XML Messages for core air cargo documents including Air Waybill, Flight Manifest and House Air Waybill These messages have been endorsed by IATA Cargo Businesses Processes Panel (CBPP) and adopted by the CSC. The CXMLTF has developed 15 Cargo-XML messages. The Cargo-XML standards offer a wide variety of benefits - reduction in cost of development, maintenance and support, extended facilitation in implementing e-AWB, e-Freight and Advance Electronic Information, broader participation in e-commerce
by small and medium size businesses and compatibility with other industry standards from World Customs Organization (WCO) and International Standards Organization (ISO). Large airlines including Delta, Air Canada, Cathay Pacific, and IAG Cargo have already implemented Cargo-XML. The two large freight forwarders who have implemented Cargo-XML are DHL Global Forwarding (DGF) and Kuehne Nagel (K+N). Adoption of Cargo-XML is increasing with airlines such as Emirates and LAN Cargo currently in the process of implementing Cargo-XML as are freight forwarders such as Panalpina. Ground handlers are the key component of air cargo supply chain but the large GHAs have yet to embrace Cargo-XML.
Customs administrations are much keener in implementing their ACI based on the IATA Cargo-XML Messages than any other air cargo stakeholder. IATA has introduced a new business model for how it offers the Cargo-XML standard to IT system, software and service providers. Any IT service/system/solution provider interested in developing solution or offering products using the IATA Cargo-XML Messages must first license the standard from IATA. Other industry members such as airlines, freight forwarders and ground handlers can directly buy the toolkit from IATA to implement the Cargo-XML Messages. Currently, 30 of the top industry IT system providers and the messaging service providers have licensed the Cargo-XML standard from IATA. ď‚ƒ
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Cargo & Logistics
China to have a new cargo airline next year
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new express cargo airline is being launched next year that will initially provide services for the growing e-commerce industry within China but has global ambitions. The new airline, United Star Express, is a joint venture between Chinese carrier Okay Airline, US-based lessor and transport provider ATSG West and online discount retailer Vipshop Holdings. It will be launched in mid2016 to serve China, including Hong Kong, Macau and Taiwan.
Global campaign to stop cargo theft
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he Transported Asset Protection Association (TAPA) has launched a campaign to double the amount of TAPA-certified warehouses to more than 2,000 in Europe, the Americas and the Asia-Pacific region in the next three years to curb cargo theft. TAPA was formed in 1997 to fight the growing problem of cargo theft. Today, there are more than 800 member companies globally, in-
cluding many of the world’s biggest manufacturers and logistics service providers, as well as leading small-to-medium freight forwarding and other stakeholders. TAPA’s facility security requirements and trucking security requirements have been developed by supply chain security professionals and logistics specialists. Many supplier contracts now demand compliance with TAPA standards.
The new cargo airline will have a registered capital of $63 million. The joint venture is pending approval by related governments. Okay Airlines is putting up the lion’s share of the money. The founding of this airline is driven by the rapid growth of e-commerce in China. Presently express air services in China depend on the belly space in passenger aircraft.
Boeing loses freighter order as cargo market sags
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oeing lost an order for four 7478 jumbo freighter aircraft from Japan’s biggest cargo carrier as the air freight market recovery receded. After giving a cautiously optimistic outlook on air cargo earlier this year, the plane maker confirmed that Nippon Cargo Airlines canceled an order for four 747-8F freighters. The cancellation is another warning sign for the manufacturers of
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large, dedicated freighter aircraft as worries about economic growth, especially in Asia, threatens to chill demand. Boeing executives earlier this year forecast a rebound in cargo traffic after years of weakness following the 2008 global financial crisis. While the loss of four 747s is small, it cuts Boeing’s backlog by nearly 14 per cent according to its orders outstanding as of the end of August.
Cargo & Logistics
WIN expands e-booking platform
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echnology specialist WIN is helping independent forwarders save on time and costs after expanding its e-booking system to connect them to 16 airlines. WIN already connects to over 90 airlines for electronic Air Waybill (e-AWB). The carriers available for e-bookings include British Airways, Iberia, Etihad Airways, SAS, Singapore Airlines, Jet Airways, Swiss, American Airlines, Air France, Finnair, Korean Air, KLM, Lufthansa, United Airlines, Emirates,
Air Djibouti sets sights on air freight
and Gulf Air. The all-in-one tool includes the ability for customers to look up flight schedules, create and manage bookings in real-time, transmit AWB data, and receive full AWB tracking automatically. Over the next months, WIN expects to grow the number of carriers available via a single, standardized e-booking process to more than 50. WIN’s online collaboration platform for freight forwarders is used by agents in 111 countries and 450 cities.
SkyTeam Cargo upgrades tracking tool
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he SkyTeam Cargo alliance, which consists of 12 different carriers, has launched an upgraded version of its online track and trace tool whereby customers can track their shipments across the combined network by entering the airway bill number on the website’s home page.
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jibouti’s re-launched national airline is looking to remake itself as an Africa-wide air freight service. The return of Air Djibouti, which went bankrupt in 2002, is part of the government’s goal of becoming a major logistics hub. It is building four new ports, two airports, and a $3.5 billion-free trade zone set to be partially open by the middle of next year.
The centralized IT system shared by all of the participating carriers displays the most recent status of each shipment for both cargo and passenger operations.
By enabling members’ individual IT systems to communicate, SkyLink is facilitating freight forwarding for our customers throughout 175 countries, said Eric Hartmann, vice president SkyTeam Cargo. The tool can be used by customers of all 12 SkyTeam Cargo members who include Aeroflot, Aerolineas Cargo, AeroMéxico Cargo, Air France Cargo, Alitalia Cargo, China Airlines, China Cargo Airlines, Czech Airlines Cargo, Delta Cargo, KLM Cargo and Korean Air Cargo.
“It happens to be our major target, the air cargo business,” Dawit Michael Gebre-Ab, the airline’s senior director of strategic planning, said.
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Technology
NASA is helping commercial airlines save time
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he US National Aeronautics and Space Administration (NASA) is offering commercial airlines the opportunity to leverage its software in order to save time and reduce fuel consumption and carbon emissions.
The NASA-developed application is being tested by two passenger airlines, Virgin America and Alaska Airlines. During the next three years, they will use the Traffic Aware Planner (TAP) to make Traffic Aware Strategic Aircrew Requests (TASAR). TAP connects to the avionics information hub on an aircraft to find out its current position, altitude and route. Then it automatically searches for different options that could save fuel or reduce the flight time and sends these details to the flight crew.
TAP can also scan the signals of nearby air traffic to avoid potential conflicts in proposed flight path changes, so air traffic controllers can more easily approve a pilot’s route change request. If airlines have Internet connectivity in the cockpit, TAP can access info such as real-time weather conditions, wind forecast updates and restricted airspace status to further increase flight efficiency. David Wing, TASAR project lead at NASA’s Langley Research Center
in Hampton, Virginia, said: “The system is meant to help pilots make better route requests that air traffic controllers can more often approve. This should help pilots and controllers work more effectively together and reduce workload on both sides from un-approvable requests.” TASAR takes advantage of NASA’s state-of-the-art TAP software, flight information directly from the aircraft and the emerging ADS-B and Internet infrastructure to help pilots get approved to fly the most efficient or time-saving trajectory possible. Wing and his team have tested the TASAR software and during its initial test flight from Virginia to Kentucky the flight time was reduced by four minutes. A dozen pilots provided feedback on the technology in a simulation at the University of Iowa Operator Performance Laboratory, and aerospace systems manufacturer Rockwell Collins analyzed the system to ensure it is safe and can be certified by the Federal Aviation Administration.
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Technology
Beumer launches new baggage handling innovations
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eumer Group with Crisplant, a leading global supplier of automated baggage handling systems, have launched two innovations in baggage handling efficiency: the CrisStore rack-based storage system and the semi-automatic Baggage Unloader. Also released was new software controls for OCR/VCS and baggage handling system visualization and management which have been added to its Airport Software Suite. The space-efficient CrisStore rackbased storage system is designed to
enable airports of all sizes to improve the capacity, accuracy and security of Early Baggage Storage (EBS). It features 100 per cent tracking and traceability of baggage in addition to dynamic allocation of
luggage between different storage modules. These features enhance security and provide on-demand retrieval of an individual bag, or sorting of multiple bags for batch-loading onto ULDs. These capabilities enable a more flexible check-in process and increase the speed and accuracy of transferring baggage to the makeup area.The Baggage Unloader is part of BEUMER Group’s award-winning range of semi-automatic lifting aids. The Baggage Unloader enables a single operator to slide arrivals baggage from the trolley and onto the reclaims conveyor by using the Baggage Unloader’s extendable ramp. This simple system increases throughput to around 10 seconds per bag in addition to significantly reducing the risk of injury associated with manual handling of ingauge baggage.
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