Via Dubai Magazine | April 2015 by Nadd Al Shiba PR & Event Management

Monthly Newsletter issued by Dubai Civil Aviation Authority

Shared Responsibility

UAE postal stamps under ICAO’s 70th Anniversary Postal History

DCAA honours employees

UAE in Focus

UAE among global MICE destinations

Middle East 24

Diverse Liquidity

Dangerous Proximity Drones in airspace 18

Aircraft financing picking up

Opinion Panama – A regional aviation model

25 Saudia starts Jeddah-Al Ula service

International Beijing to get a new ‘monster’ airport

Gulf market ‘enables’ Boeing to enhance investments

DIA runways lighting upgraded

Gulf Air upgrading A330 fleet

Issue 23 April 2015

Aviation Safety

Inside DCAA

UAE airlines ask India for capacity increase

www.viadubaionline.com

Tony Tyler

In Focus 34

Pushing boundaries

Managing congestion at hub airports

Michael P. Huerta

Cargo & Logistics 36

Scott Lachut

New technology for air navigation

Technology 38

Frank Brenner

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

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by searching in App Store and Play Store by typing DCAA or scan the QR code

For more information, please call technical support on: email:

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CONTENTS UAE postal stamps under ICAO’s 70th Anniversary Postal History

DCAA hosts Mother’s Day programme

Dubai to set up Museum

of the Future Future of Borders Conference

Gulf market ‘enables’ Boeing

Next Steps

to enhance investments Honeywell braces for high growth in ME

Dangerous Proximity

UAE airlines ask India for

increase in capacity Beijing to have a new ‘monster’ airport

Message from the President 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.

General Supervision Mohammed Abdulla Ahli Coordinator Hanan Al Mazimi Executive Editor Mohammed Abdul Mannan 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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Tel +971 4 25 66 707 Fax +971 4 25 66 704 info@naddalshiba.com www.naddalshiba.com

Memorable Journeys

ubai International has consolidated its global standing as a most-preferred travel hub offering connectivity to 240 destinations given its strategic geographical location and extensive and efficient aviation infrastructure. The amazing growth was amplified with Dubai International flying past the London Heathrow to become the world’s top airport for international passengers with close to 71 million travelers. This is largely due to the government’s unfaltering commitment to aviation infrastructure development with a view to facilitate the global aviation industry. Every stakeholder is working as a unified team to meet the challenges of the changing times and remain far ahead of the expectations of the travelers whose numbers keep growing. Ensuring a smooth, efficient and timesaving flow of travelers through the airports has remained a challenging task for the border control authorities. It requires a clear vision, unfaltering commitment and continuous improvement with unique and innovative smart technologies coming handy in the efforts. GDRFA-Dubai last month provided an excellent opportunity for the top management of border control and associated industries to discuss the smart travel challenges. The Future of Borders

Ahmed bin Saeed Al Maktoum

conference provided insights into the fast-improving travel facilitation. As Dubai’s two international airports are projected to see 126 million passengers by 2020, more efficient systems are needed for border control. We will launch an Advance Passenger Information System (APIS) to reduce the time of passenger-checking procedures to less than 20 seconds. APIS data base can help different government entities to do a risk analysis prior to a passenger’s departure or arrival. Dubai is also going live with a new system to standardize passenger processing and data exchange across the emirates. The system will be integrated with several smart technologies, including ‘eyen’, a new intelligent travel gate which will make passenger flow through immigration a sail-through. A right combination of innovation, investment and talent is required for sustainable aviation as passengers will demand more from their travel experience in the future. Change is the essence of life and it has to be constant. Dubai convincingly proves the point.

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

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Message

from the Director General

DCAA honours employees for voluntary work Mohammed Abdulla Ahli

Shared Responsibility

s global air connectivity gets enhanced, aviation safety remains the focus of attention with airports and airlines facing the challenges of dealing with potential risks and threats. Aviation safety is not limited to territorial boundaries. It is a shared responsibility of all the stakeholders globally. The year 2014 brought into focus several safety challenges, including aircraft tracking, data sharing, personnel training and new technology. The World Aviation Safety Summit (WASS), hosted by DCAA, brought together on one platform regulatory authorities, airline and airport operators, aircraft manufactures, pilot associations, safety organizations and air traffic control service providers to discuss strategies and challenges of aviation safety.

he Dubai Civil Aviation Authority (DCAA) has honoured its employees for their ceaseless efforts and valuable contribution towards the success of events and activities it celebrate the Kuwait National Day.

Khalid Al Arif, Director of Standards and Regulations at the DCAA, felicitated the staff members who were associated with the Kuwait National Day festivities, at a ceremony held at the DCAA Headquarters at the Dubai International Airport recently. Certificates of Appreciation were presented to the employees, drawn from various sections and departments, in recognition of their efforts in community services and events and for promoting the Authority in a prominent and recognizable fashion. ď&#x201A;&#x192;

DCAA honours Abu Dhabi University students

The summit took place against the backdrop of the UAE achieving the worldâ&#x20AC;&#x2122;s highest score for aviation safety in the history of the ICAO. Also, another study has put two UAE carriers, Emirates and Etihad, among the Top 10 airline safety rankings for which 449 airlines were monitored. Flying has remained safest. The past 60 years have seen an ongoing decline in fatal accidents. There was one fatal accident per 2.38 million flights last year, making 2014 the safest in history. The improvement in global airline safety is due to a combination of several positive trends. Aircraft have become more reliable; safety systems have improved enormously. The aviation history is full of continuous safety improvements. We must never lose sight of the need to maintain that dedication. Safety is a critical and fundamental to ensuring air transport continues to play a major role in driving sustainable socio-economic development all over the world.

April 2015

he Dubai Civil Aviation Authority (DCAA) has honoured Abu Dhabi University students on the completion of a training programme as part of their graduation project which lasted for a month. The ceremony, held at the DCAA headquarters, was attended by Abdulrahim Al Mulla, Director of Corporate Support, and Abdul Razzack Al Hashimi, Deputy Director of Corporate Support at DCAA. The goal of the training was to provide knowledge and on-job experience to the Emirati students during the programme. The students visited various departments at the Authority to learn about their various responsibilities and functions to gain working experience at the civil aviation regulatory body. ď&#x201A;&#x192;

Inside DCAA

UAE postal stamps listed under ICAO’s 70th Anniversary Postal History

he Dubai Civil Aviation Authority (DCAA), in collaboration with the Emirates Post, released three commemorative postal stamps and a first day cover on 7th December 2014, coinciding with the occasion of the 70th Anniversary of the Convention on International Civil Aviation and the 20th Anniversary of the International Civil Aviation Day, to celebrate Dubai’s inspiring civil aviation growth and development since 1937. These postal stamps reflect the significant developments that took place during the three eras that converged the wonderful journey of civil aviation in Dubai from the Creek, namely the sign-

ing of the Dubai Commercial Air Agreement in 1937, considered as the first to pursue an open skies policy in the world, leading towards establishing a twin-airport city and takings its airlines, Emirates and flydubai, to greater heights besides other areas of the aviation industry. In addition to the release of the postal stamps, DCAA paid tributes to the drafters of the Chicago Convention, the International Civil Aviation Organization and its officials and to all the States for their contribution towards the development of international civil aviation for the benefit of the people and to preserve friendship and understanding amongst nations.

During this occasion, DCAA also released a special edition of its monthly bilingual newsletter, Via Dubai, dedicated to the 70th Anniversary of the Chicago Convention.

We are delighted with ICAO’s decision to list the postal stamps issued during the aforesaid event under the ICAO’s 70th Anniversary Postal History, DCAA said. This will certainly enable the present and future generation of the United Arab Emirates to cherish the wonderful memories of its aviation history and also to tell the world of its commitment to develop the international civil aviation industry for the benefit of the peoples of the world and the travelling public. The Emirate of Dubai has been working closely with the ICAO in many areas and will continue to support ICAO’s endeavors. Amongst the important events is the inaugural ICAO Air Services Negotiation Conference, and held in Dubai in 2008 hosted by the DCAA, a conference that has come to stay as a regular ICAO event. http://www.icao.int/secretariat/ PostalHistory/70th_anniversary_of_icao.htm April 2015

Inside DCAA

DCAA hosts Mother’s Day programme

he Dubai Civil Aviation Authority (DCAA) organized a programme to observe Mother’s Day to highlight and appreciate their important role in the wellbeing of families and communities they live in. The programme involved the participation of women

April 2015

employees and working mothers at the Authority who commended the DCAA for this initiative. March 21 is observed as Mother’s Day in many countries including the UAE. Gift vouchers for Dubai Duty Free at Dubai International Airport

were presented to them as a token of appreciation and in recognition of their role. DCAA is keen on enhancing its participation in all community-related events and initiatives as part of the efforts to generate wider

employees’ satisfaction and consolidate relations among them. Khalif Al Arif, Director of Standards and Regulations at DCAA, was among the senior management team which attended the programme. 

UAE in Focus

Dubai to set up Museum of the Future The strikingly designed iconic museum is backed by a strong endowment and led by international collaborations. The new project’s motto is ‘see the future, create the future’. The design of the museum was decided through a global contest.At the launch ceremony, he said: “His Highness Sheikh Khalifa bin Zayed Al Nahyan, our President, has declared 2015 to be the year of innovation in the UAE. Today we show how serious and committed we are to that mission by turning the UAE into a major international destination for innovators.”

is Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has unveiled plans to set up a Museum of the Future in Dubai. The $500 million museum, set to open in 2017 near the picturesque Sheikh Zayed Road, will host

innovation labs focusing on health, education, smart cities, energy and transport and a permanent section on the greatest global innovations. It will be an incubator for ideas and real designs, a driver  for innovation, and a global destination for inventors and entrepreneurs.

Dubai Customs foil black magic gear smuggling

early 10,000 articles – weighing 97 Kg – associated with the practice of witchcraft and sorcery were seized Dubai Customs inspectors from passengers from different nationalities trying to smuggle them through Dubai International Airport. Ahmed Mahboob Musabih, Director of Dubai Customs, said Dubai Customs provides training and awareness courses for its staff to be able to recognise these materials; their different types and shapes. Upon arrival to the Customs zone in the airport, passengers’ baggage is inspected and screened using x-ray scanning devices. Both large luggage and handbags are then physically

inspected by trained inspectors to make sure they contain no illicit imports. Smugglers of such items were in most cases from Asian, African and European origins. They use clothes, hand bags, travel bags and parcels trying to smuggle in these items. Materials used for sorcery, fraud and black magic are prohibited consistent with the Decree of the GCC Financial and Economic Cooperation Committee, which determined the lists of prohibited commodities agreed upon by GCC countries, including the ones that are inconsistent with the Islamic beliefs and public decency, namely materials used in sorcery and black magic. 

The cladding of the museum — which will be made of 3D printing construction techniques — will have Sheikh Mohammed’s poems that describe his vision of the future. A fee will be charged for entrance into the museum though it has yet to be decided what it will be. The museum will be able to accommodate around 900 visitors at a time. The first of its kind museum will bring together researchers, designers, inventors and financiers under one roof to test, fund and market futuristic prototypes and services. 

Dubai Chamber sets up Ghana office

he Dubai Chamber of Commerce and Industry has established a new office in Accra to enhance economic and trade ties with Ghana. It established an office in Ethiopia in 2013. The new office is in line with the Dubai Chamber’s theme and strategy of enhancing ties with Africa and other untapped markets and with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai. The launch of the Accra office was a vital step in the expansion of the chamber’s footprint in

Africa and was a strong sign of their commitment to enhancing trade ties with Ghana and West Africa. The Dubai Chamber promotes Dubai as an international business hub and supports and represents Dubai’s business community. It currently has a membership of 170,000 companies across the world with the capacity to export over $70 billion worth of products annually. The Chamber created 27 business groups that are divided by industry, and 43 business councils that are divided by country. 

April 2015

Cover Story

Aviation Safety

Shared Responsibility

he World Aviation Safety Summit (WASS) that was hosted by the Dubai Civil Aviation Authority (DCAA) for the third consecutive year from March 16 to 17, under the patronage of His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group at Jumeirah Creekside Hotel in Dubai, with several key concerns and challenges confronting the high-stakes industry under the spotlight, was a mega success. Key industry stakeholders utilized the two-day platform in Dubai for sharing their knowledge about issues of vital importance to the global aviation industry that handled 3.3 billion travellers and 38 million flight movements in the last year. By 2030, the industry is expected to transport approximately 6.6 billion passengers, thereby making safety a continued top priority for air travel around the world. The debate agenda included the aircraft tracking system, flying over conflict zones, safety standards and regulations, impact on aviation from SARS to Ebola, runway accidents, Safety Management Systems (SMS),

April 2015

Improving aviation safety critical to industry growth Remotely Piloted Aircraft Systems (RPAS) and Aviation Safety Culture.Organized by Streamline Marketing Group, the iconic industry event was supported by dnata, Boeing, ENOC, Dietrich, Honeywell, Chevron, Maximus Air, Aeromag Asia, Airlineberg, Airline Suppliers, Airport Suppliers, Arabian Aerospace, Atcnetwork, ATM Global Business, Aviatime, The Business Year, Capital Business, Ch-aviation, Flycorporate and Skytamers.

The summit attracted the participation of senior representatives of civil aviation regulatory authorities, airlines, airport operators, aircraft manufactures, pilot associations, safety organizations and Air Traffic Control (ATC) service providers in a number of panel discussions, strategy sessions and group discussions. Regional case studies were also shared to take the debate one notch up. The summit attracted participants from Afghanistan, Australia, Bahrain, Belgium, Canada, China, Egypt, Finland, Germany, Hong Kong, India, Iraq, Jordan, Kuwait, Lebanon, Morocco, Nepal, The Netherlands, Oman, Pakistan, Qatar, Saudi Arabia, Russia, Singapore, Sudan, Switzerland, UK and the US.

Cover Story

Aviation organizations must incorporate top-down safety culture In his opening address, His Excellency Mohammed Abdulla Ahli, Director General of DCAA, remarked: “ Safety is of prime importance to air travellers and the aviation community as a whole. Aviation Safety has become a worldwide priority and aviators have many challenges to face. We need to respond to those challenges positively to strengthen the industry and to positively influence the public perception. He added: “Aviation safety is not limited to territorial boundaries – it’s a global issue. It is a shared responsibility of all the stakeholders globally. The aviation history is full of continuous safety improvements. We must never lose sight of the need to maintain that dedication. Safety is a critical and fundamental to ensuring air transport continues to play a major role in driving sustainable socio-economic development.” The Summit, he said, will help take the deliberation of the ways and means of moving to the next level of safety and addressing the issues that still are concerns for the industry, including training and development. Jeff Johnson, President of Boeing Middle East, utilized his keynote address, to highlight the

vital importance of Middle East for the global aviation industry and its impressive growth curve. He said: “Aviation growth in the Middle East continues to regularly outpace growth in the global industry by an average of 5 to 10 per cent. As air travel continues to expand, airlines and aircraft manufacturers must invest in modernizing their aircraft fleet and technology to ensure greater safety for passengers and aircraft.” Providing fleet growth projections for the next 20 years, he said the global passenger aircraft fleet will double by 2023. In the next 20 years,

the industry will require 38000 new airplanes worth US$5.5 trillion. The Middle East alone will need 2900 new aircraft worth US$640 billion over the next two decades. Moderated by prominent aviation journalist, Alan Peaford, the first panel discussion deliberated about making aircraft tracking systems compulsory. The panelist were Hussein Dabbas, Vice President for Middle East and Africa at IATA, Mohammed Eturki, Executive Director for Group Safety and Quality, flynas, Captain Elias Sadek, Vice President for Safety and Quality at Egypt Air Holding Company, and Chamsou Deen Andjorin, Director of Aviation Safety for Africa and Middle East at Boeing. Jeff said while the technology to install a global tracking system for individual planes exists, it was up to the governments and aviation regulators to enforce such a technology. The tragic incident of Malaysia Airlines flight MH370 which went missing in last March with 239 people on board en route from Kuala Lumpur to Beijing was the main topic of the forum’s first day. Mohammed Eturki said: “We support an international tracking system that can permanently monitor planes airborne and which the pilot cannot switch off or manipulate in order to avoid that plane hijackers can do so.” However, Elias Sadek, Vice-President for Safety at Egypt Air Holding Company, said he opposes a system which the pilot cannot switch off. If the tracking system is linked to an error in the plane and causes smoke or malfunction, he said, “the pilot must be able to switch it off and to steer the aircraft manually in order to land with the passenger safely. “Otherwise the tracking system could trigger the worst case April 2015

Cover Story

Farid Al Bastaki, Senior Manager Aviation Fuel Marketing at ENOC Marketing, said: “ ENOC Aviation had the privilege of being a sponsor for the 3rd World Aviation Safety Summit in Dubai. ENOC congratulates Dubai Civil Aviation Authority in bringing together various local and international aviation stakeholders and safety organizations

to discuss key challenges and strategies in improving safety culture. ENOC believes such events greatly aid safety awareness and education, reinforcing safety culture across the organization. ENOC is proud to be associated with such safety initiatives and wishes this event even greater success in coming years.”

scenario which is more harm to the aircraft and humans on board,” he said. He agreed: “Regulators must make it mandatory for airlines to invest in improving safety technology and systems – we owe it to our passengers, consumers and families. If there is no pressure, the funds will be spent elsewhere.” Hussein Dabbas said he was still surprised that MH370 Boeing 777-200ER plane or any debris or trace of it had still not been tracked. “We must remember that airplanes are still the safest way to travel. Last year, of the 3.3 billion passengers who travelled on airplanes across the world, there were only 12 fatal accidents from 38 million global flights. However, even one fatality is one too many.” IATA has initiated an industry task force to develop recommendations to improve global

Aviation industry must prioritize safety ahead of profits flight tracking. ICAO, to which the recommendations were submitted, will shortly issue guidelines on aircraft tracking. The panel proposed that airlines upgrade their aircraft with real-time, global flight tracking systems in order to improve safety, evaluate their current tracking capabilities against the performance criteria and close any gaps within 12 months. This regulation will require all aircraft to transmit information on their longitude, latitude, altitude and local time to permit four-dimensional tracking, which should be accurate to within at least one nautical mile and reported every 15 minutes — or more

often in the event of an alert. Airlines have argued that implementing an aircraft location tracking system within a year will be challenging. Flying over conflict zones was debated at another panel discussion. Dr. Hamdi Chaouk, Director General of Lebanon Civil Aviation Authority, Captain Samir Sajet, Regional Aviation Safety Officer at World Food Program (WFP), Captain Martin Chalk, Deputy President of International Federation of Airline Pilots Associations participated with Robert Hunter, Head of Flight Safety at British Airline Pilots Association (BALPA) as the moderator. Captain Martin Chalk said: “It is imperative that states share the intelligence they have. Once it is shared between states and their operators, they will each come to their own conclusions. The more data we collect, the better the risk analysis is likely to be.” He added: “The biggest threat is going through a conflict area because they might have small rockets shooting at the aircraft. But it is not possible to stop all risks as the aviation industry is global.” Discussions provided participants an overview of the effect on conflict zones on the safety of civil aviation, while the panelists underscored the need for carrying out appropriate risk assessment to identify hazardous airspace and implement appropriate mitigations. They also highlighted the need for identifying each parties’ responsibilities to ensure flight

April 2015

Cover Story

over conflict zones and risk assessment by governments, civil aviation regulators, local and international organizations and national security agencies. The tragic shot down of a Malaysian Airlines flight in Ukraine provided the backdrop for the debate. In the panel discussion on Production versus Protection – Is aviation industry taking unnecessary risks in pursuit of profit, speakers and delegates joined in the conversation, emphasizing that the relationship between risk and cost is not as simple as it appears. Maintaining the perception of low flying risk is also imperative to the growth of the industry among passengers. “Demonstrating the return on investment for aviation safety is extremely difficult as the relationship between an action and its impact on safety is not linear,” added Dr Ashley Nunes,

Aviation accidents

MENA holds second worst safety record The Middle East and North Africa had the second worst safety record for commercial flights in 2014, with almost three times as many accidents as the global average, according to International Air Transport Association (IATA). There were 0.63 aviation accidents per one million flights in the region last year. Despite a significant increase in the number of flights, the figure was almost half the 1.82 annual average recorded between 2009 and 2013. The global accident rate was the lowest in history,

equivalent of one accident for every 4.4 million flights, despite public concerns and media attention on air safety. There were 12 fatal accidents involving all aircraft types, with 641 fatalities, compared with an average of 19 fatal accidents and 517 fatalities per year in the five-year period (2009-2013). Globally, there were 73 accidents deemed a hull loss, down from 81 in 2013 and the five-year average of 86 per year, according to IATA. Sixteen percent of all accidents were fatal, below the fiveyear average of 22 percent.

an independent analyst from France. “There are multiple layers of defenses, checklists and automation that impact this causal relationship.” Mohammed Ali Bin Yalwan Al-Falahi, Investigation Manager Airport Customs, Passenger Operations at Dubai Customs noted: “Passengers are still unaware about what they should or should not carry on-board an aircraft,” he said. “Many still carry harmful items such as pesticides, chemical powders and even bullets.” Henrick Ambak, Senior Vice President for Cargo Operations at Emirates also participated in the discussions. How can key players collaborate effectively and work together to strengthen air safety? This was the topic of another panel discussion which had on board Hala Azam, Manager of April 2015

Cover Story

Investment in safety is vital as industry expands

Emergency Response Planning at Gulf Air and Chairperson of Emergency Response Planning Taskforce at Arab Air Carriers Organisations (AACO), Abdullah Al Hashmi, Vice President of Operations at Dubai Air Navigation Services (DANS) and Stephen Alcock, Director of AT & R Technical Sales at Honeywell EMEAI. From SARS to Ebola â&#x20AC;&#x201C; What have we learned? How aviation industry was impacted with healthy safety risk was deliberated by a panel which included Dr. Wasif Muhammad Alam,

Director of Public Health and Safety at Dubai Health Authority (DHA), Dr. Khalil M Khalil, Head of Aviation Medicine Department, Civil

Aviation Regulatory Commission, and Dr. Mubarak Aldoub, Consultant Aviation Medicine at the Directorate General of Kuwaitâ&#x20AC;&#x2122;s Civil Aviation. They analyzed pandemics impact and implications on the aviation industry and coordination among the stakeholders to control infectious diseases. Remotely Piloted Aircraft Systems (RPAS) and aviation safety was the discussion topic at another panel. Nils Olof Svan, Vice President, Strategy at Dubai Air Navigation Services (DANS), Michael Rudolph, Head of Aviation Regulations and Safety at DCAA and Robert Hunter, Head of Flight Safety at BALPA, took part in the debate and examined the issue of drones in civilian airspace. New laws to regulate the use of drones in the UAE are due to be introduced from next month, placing restrictions on where they can be flown, how high and what they can be used for.

April 2015

Cover Story

12 fatal accidents from 38 million global flights in 2014

Why ‘ground damage’ is one of the Middle East’s main cause of aviation accidents and how the region’s aviation community could overcome this major threat was discussed at another panel. The panelists were Natalie Bamford, Vice President Safety for UAE Airport Operations at dnata, Capt. Mark Burtonwood, Vice President, Flight Safety at Emirates, Mohamad Issa, Director Ground Operations, Middle East Airlines’ Ground Handling. They debated about the role of airline companies in improving ground safety through stringent safety standards from the ground handlers. They also explored safety regulations for ground operations and identified gaps and areas for improvements. Safety culture, Safety performance indicators and crisis management were discussed at other panels with experts from dnata, FAA, Chevron Al Khalij, Emirates, Etihad Airways and COSCAP-Gulf States debating the issues in details. “The biggest issue with safety culture today is that it doesn’t exist – there is no such thing,” said Stuart Hayman, Senior Vice President Safety, dnata. “The danger is in trying to silo the concept of culture. It’s far more effective to look at organizational culture as a whole which determines safety performance and outcomes. Safety is about engaging with people at the ground level. Senior management must involve front-line staff and lead them down the path of safety improvement by demonstrating what safe behaviour actually looks like.” Ahsan Farooq, Middle East Area Operations Manager, Chevron Al Khalij, agreed. “We must empower employees with the authority to stop work if they suspect that a particular organisational procedure is not safe. Immediate investigations can prevent organizations from a situation where a major hazard is just a single error away.” Boeing Commercial Airplanes presented a case study about the Safety Management Systems (SMS) to strengthen the safety systems, ensure successful air operations and prevent catastrophic events. Honeywell presented a case study about its partnership with Emirates to prevent runway accidents. The summit has undoubtedly taken the debate about aviation safety far and wide and will help in improvements in the coming years.  April 2015

Exclusive Report

Future of Borders Conference

Next Steps

n international conference hosted by the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA-Dubai) provided valuable insights into the current travel trends and how technology and automation will usher in sweeping changes.

Held at the Ritz Carlton DIFC from March 11 to 12 under the patronage of His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, 24 speakers representing borders industry, airline and airport operators and technology firms shared their vision to chalk out a future roadmap. Sheikh Ahmed remarked: â&#x20AC;&#x153;Border control agencies need to be wellprepared to deal with the emerging challenges as the number of passengers travelling across the international borders is set to rise exponentially in the coming years. Borders are strategic partners for airports. They should prepare themselves for more important and challenging role in the future.â&#x20AC;? With representatives of ACI, IATA, FRONTEX and immigration authorities of the US, UK, The Netherlands, Australia and Hong Kong in attendance, the conference gave a clarion call for collaboration

April 2015

among the stakeholders- government, airports and airlines- to enhance passenger experience while ensuring seamless travel facilitation without compromising on security and safety aspects. His Excellency Eng. Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the General Civil Aviation Authority, (GCAA) talked about initiatives to ensure seamless travel facilitation and referred to the rapid strides the aviation industry has made in the UAE over the years due to the visionary policies of the government and ceaseless commitment of the stakeholders to turn the vision into reality. His Excellency Major General Mohammed Ahmed Al Marri, Director General, GDRFA-Dubai, said the coming together of all stakeholders on a single platform will provide a momentum to cooperation and collaboration among them to implement the expansion plans smoothly in line with the changing times and help UAE become the worldâ&#x20AC;&#x2122;s mostsought after travel hub.

Exclusive Report Leila Hareb, Assistant Director General of Strategy and International Affairs, GCAA, said: “The UAE has the most sophisticated API system for enhanced security, monitoring, tracking and interception of transit passengers. The Ministry of Interior, Dubai Customs, GDRFA-Dubai and Dubai Police were among the organizations that benefitted immensely from the API project launched late last year.” Angela Gittens, Director General of Airports Council International (ACI), Micheal Herrero, Gulf Area Manager at International Air Transport Association (IATA), Thani Alzaffin, Director General and Board Member, emaratech, and Hendrick Weijermans, Head of External Relations at FRONTEX, participated in a session. Representing airports which handles 95 per cent of the world’s passenger traffic, ACI, along with ICAO and IATA has supported the proliferation of Automated Border Control (ABC) systems in the US. Micheal Herrero, Gulf Area Manager at IATA, said the number of air passenger globally will increase to 7.3 billion in 2034 from 3.3 billion last year. This projected growth will put enormous pressure on the aviation industry as more people will travel by air and cross international borders.

border control industries. He also announced the launch of ‘eyen’ system, the latest from emaratech in the smart travel technology.

Aviation Mega Cities

Paul Moultrie, Head of Marketing at Airbus Middle East, said by 2033, there will be 91 ‘Aviation Mega Cities’ in the world and these cities will account for 95 per cent of the longhaul traffic in the world. He said a survey of 10000 people conducted by the European airplane maker to elicit their opinion about what they want from the future of flight suggested that they want the air transport “cheaper, greener and more fun”.

Hendrick Weijermans, Head of External Relations, FRONTEX, European Agency for Operational Cooperation for borders in the EU, said: “All of our countries face recurring, multiple and partly different challenges in terms of border management and internal security that can only be overcome if we seek mutually trusted cooperation.”

Adel Al Redha, Executive Vice President and Chief Operations Officer, Emirates Airline, said: “Air travel has undergone transformation. Gone are the days when people travelled only one or few times. These days some passengers travel multiple times during the same day. Also the numbers are rising exponentially. In such times, process barriers lower the standards. Airlines can share the data with authorities and we can have a scenario where using a single card the passenger can enter or exit. We must do that.”

Thani Alzaffin, Director General and Board Member, emaratech, said the borders were being redefined due to the constant impact of technological advancement in the travel and

Manuel Van Lijf, Director Product Innovation at Air France-KLM, said: “In near future, the airport processes will be passenger centric. Air travelers have more contact points and are also

24 experts spelled out their future vision about seamless journeys through airports and international borders more connected. They expect timely and accurate information on all platforms, they expect us to recognize their needs and also be transparent. This means that different stakeholders- the airlines, airports and security agencies should communicate with each other.” Fergus Wilson, COO, Aer Lingus, said the Advance Passenger Information (API) enhances the seamless travel experience and airlines expect API requirement to grow in the near future. “Airlines expect the requirement for API to grow. Standard format request are key to fast, cost efficient, accurate and reliable data provision,” he said.

Border Management

John Moorhouse, Regional Director for the Middle East and Africa at the Australian Department of Immigration and Border Protection, said: “Effective border management should have the right infrastructure, the right processes and the right partnerships in place to ensure that we support legitimate trade and travel by ensuring a stable, secure border.” Eric Chan Kwok-Ki, Hong Kong’s Director of Immigration, said despite the hectic growth in passenger traffic tremendous pressure on the handling capacity at checkpoints, the authorities have been able to clear 95 per cent of visitors arriving through the airport within 15 minutes, and 95 per cent of visitors arriving through land and sea checkpoints within 30 minutes. Teresa Hardy, Head of Carrier Delivery at the UK Border Force, said the UK government has introduced initiatives to help improve the way some passengers travel through the UK border. These include the Electronic Visa Waiver (EVW), Registered Traveller scheme, Fast Track and ePassport-gates.  April 2015

Exclusive Interview

Gulf market ‘enables’ Boeing to enhance investments

he UAE and Qatar are key markets for Boeing and the US plane maker is all set to deepen its engagement with the region with more investments and eyeing larger market share.

In an exclusive interview with Via Dubai, Jeff Johnson, President, Boeing Middle East, shared the company’s roadmap for the region, expectations from the Dubai Airshow 2015, aircraft parts sourcing strategy and the Boeing 777X development.

had great success here. You will find us bringing more partnership community engagement and we have great investments throughout the region -- the UAE, Qatar, Kuwait, Jordan, Palestine, Oman, Saudi Arabia and Egypt.

After a successful stint in the Middle East since March 2011, Johnson will be moving to the US as Vice President for Business Development at Boeing Military Aircraft (BMA).

What is the progress of Boing 777X development?

How important is this region in terms of Boeing’s future growth?

This is a key market for us historically and I think, going forward, it will be among the top ten markets for us when you look at both commercial and military combined.

We have designed the 777X, a long-range jet capable of handling 350 to 400 passengers, to meet specific requirements of the trio – Emirates, Etihad and Qatar Airways – as they need to take off in extreme heat and fly extra-long distances. In fact, the three fastest-growing carriers are part of the development process, so they have the say in the final performance and options of the aircraft.

We have done great here and in Qatar on the commercial side. In the Middle East, we have close to 70 per cent of market share in the twin-aisle segment. So, we have

They have been deeply involved in the airplane’s design. As we said earlier, the 777X is tailored to please our customers in the Middle East. Boeing estimates the mar-

Boeing to make Strata one of its world’s top two parts suppliers

ket for 777X-size jets to be worth around US$1.1 trillion over the next 20 years, with the Middle East needing 670, second only to Asia-Pacific.

What will be the effect, particularly for Emirates, of the modifications of 787?

As they move to Dubai Central World over time, there will be a need for more smaller aircraft. And I think 787s have the ability to be deployed point-to-point with 230-plus passengers. They will be a great option for many airlines.

What are your expectations from the Dubai Airshow 2015?

I think we are going to see incremental buys announced by freighters and incremental options that will become operational in the region. What we are going to see is that the focus will be born out of our partnerships, the talk about what we have done with Strata (part of Abu Dhabi government-owned Mubadala) over the past couple of years. You are also going to see some new partnerships with Dubai and Abu Dhabi and Boeing 777 supply contracts.

Will Boeing be increasing investments in the joint venture with Mubadala?

Yes. You are going to see the announcement this year at the Dubai Airshow and we are going to have some exciting new programmes. This market enables Boeing to invest, to bring more people -- in fact, we doubled in size the Boeing team on the ground here in the past four years -- and as part of that when we make a commitment to Mubadala, we basically guarantee that success, which is our strategy.

April 2015

Exclusive Interview

Plan a foot to put the eco system together to build a manufacturing plant in Abu Dhabi to source metal parts What plans are in place for the Boeing suppliers?

We have a great roadmap to make them (Strata Manufacturing) one of the top two world suppliers to us. Our plan is to put the eco system together to build a manufacturing plant in Abu Dhabi to source the metal parts and Strata Manufacturing will be able to source other parts. Right now we are working with 22 individual companies. We are also in discussion with Strata to source metal parts. Strata is gaining manufacturing supply chain capa-

Boeing in the UAE Boeing’s UAE customers include Emirates, Etihad Airways, flydubai and Dubai Aerospace Enterprise (DAE). The Middle East is home to more than 500 Boeing airplanes that represent every single type of jetliner the company has built since 1960s. This includes 707, 717, 727, 737, 747, 757, 767, 777 and 787 Dreamliner airplanes. Last July, Boeing and Emirates finalized an order for 150 777Xs. The order — a combination of 115 7779Xs and 35 777-8Xs — also includes purchase rights for an additional 50 airplanes. Dubai is home to a Boeing Service Center, one of its eight spares distribution facilities worldwide and houses approximately $25 million worth of parts and an inventory of over 26,000 items. The Middle East represents the largest hub for 747s used by governments and private individuals. In addition, all of the 747-8 VIPs — 38 percent of all BBJ orders — have been placed in this region. Of the 487 business jets in the region, more than a quarter are Boeing jets. Of the 20 orders for the 787 and 747-8 VIP airplanes to date, 11 have been bought by customers in the region.In 2012, Boeing entered into an agreement for aircraft financing and leasing cooperation with the National Bank of Abu Dhabi (NBAD). Boeing Capital is currently exploring op-

portunities for Islamic finance in the aviation sector and the possibility of including aircraft finance in the Islamic Sukuk.In April 2012, Boeing and Mubadala Aerospace announced a 10-year direct contract for Strata Manufacturing, Mubadala Aerospace’s advanced composite aerostructures facility in Al Ain, to produce commercial composite aerostructures for the 777 and the 787 Dreamliner. Under the agreement, Strata will initially manufacture composite ribs for the 777 horizontal stabilizer and composite ribs for the 787 vertical fin. Early last year, Strata delivered its first advanced composite parts as a direct supplier to Boeing: a shipset of 777 composite ribs, which were installed in the vertical fin and horizontal stabilizers for a 777300ER (Extended Range) that will be delivered to Emirates Airline. Boeing has also worked with the Masdar Institute of Science and Technology, Etihad Airways and Honeywell’s UOP to establish the Sustainable Bioenergy Research Center (SBRC). In December 2012, three Emirati students were selected for Boeing’s International Business Intern Co-op programme in 2013. Between 2009 and 2012, Boeing funded education programs and entrepreneurship training for a large number of students across the region.

Middle East needs 2900 planes worth $640 billion in 20 years

bility. As it is, we are building almost eight Boeing 777s and 10 Boeing 787s a month, which is going to be 12. This will increase the pressure on Strata.

What’s your call on the Gulf airline subsidy allegations by US carriers?

I am a firm believer in Open Skies. The US stands for free trade. The subsidy issue needs to be resolved between the governments (US and UAE). We have taken up before the competition court of the World Trade Organization (WTO) the issue of subsidies. I don’t think we will see a change in Open Skies policy. Such agreements allow for liberalisation of commercial aviation and fewer restrictions on landing slots.

What is the market outlook?

In the Middle East, 2,900 planes valued at $640 billion will be needed in 20 years and 52,000 pilots and 62,000 technicians. The replacement rate is 26 per cent, which is low. The world will need 38,000 aircraft, including cargo planes, in 20 years, against 21,000 planes in service. Global fleet size will double in 2030 which will triple airports congestion. The largest markets are going to be India and China. Overall, the emerging markets, led by China and the Middle East, continue to grow faster than the global average with doubledigit traffic growth.  April 2015

Exclusive Interview

Honeywell braces for high growth in ME

oneywell Aerospace is a manufacturer of aircraft engines and avionics as well as a producer of auxiliary power units (APUs), aerospace parts, cockpit controls and landing gear components.

In an exclusive interview with Via Dubai during the DCAA-hosted, Honeywellsponsored World Aviation Safety Summit (WASS), Stephen Alcock, Director of Technical Sales for Air Transport and Regional Airlines (EMEAI), shared insights into the Middle East aviation industry.

How strong is Honeywell’s presence in the Middle East? Honeywell’s businesses, including Aerospace, have a long standing and fast growing presence in the Middle East. It is one of our top ‘High Growth Regions’ globally. These regions are expected to deliver an increasing share of our growth in the next five years.

There is a large opportunity in the business aviation space too Within our Aerospace business, all three departments - Defense and Space, Business and General Aviation, and Air Transport and Regional, are active in the Middle East. Our technologies are on board virtually every aircraft flying across the Middle East. The entire region is renowned for having a fleet of some of the world’s largest and most advanced business and commercial jets. It is vital that we maintain our significant and established presence in the local aerospace industry to be in close proximity to our extensive customer and partner base. It is a great market to be in, and we are proud to be doing business here.

April 2015

The region can also benefit from an expanded regional network, having been defined for many years solely as a premier long haul hub

What are the products/solutions that Honeywell deals with businesses in the region? A vast majority of our entire Aerospace technology portfolio is used by the industry in the Middle East, including the full suite of cockpit avionics and mechanical equipment for airline and business jet operators. We have innovative technologies such as SmartRunway / SmartLanding, which reduce runway incursions and excursions by providing pilots with enhanced situational awareness during taxi, approach and landing. SmartRunway / SmartLanding is flying on Emirates’ fleet today. We have cabin products such as Environmental Control Systems and lighting and Auxiliary Power Units for aircraft such as the Boeing 737, Airbus A320 and the new A350. We also provide a wide range of aftermarket services.

What major products are planned to be launched in the region in the near future? The biggest single technology trend in aviation right now is connectivity. Passengers want to be able to stay connected all the time, wherever they are in the world.

In the coming months Inmarsat’s GX Aviation global satellite connectivity service will go live. OnAir has announced it will supply the new Qatar A350 fleet with Inmarsat’s GX Aviation high speed in-flight Wi-Fi service - a service exclusively supported by aircraft connectivity hardware from Honeywell. Only operators flying aircraft with Honeywell’s JetWave hardware installed will be able to connect to this new service, which is capable of delivering bandwidth of up to 50mb per second down to the aircraft. Not only will this give passengers unprecedented

Passengers want to be able to stay connected all the time, wherever they are in the world and globally consistent Wi-Fi speeds, it will allow operators to improve performance and efficiency by enabling them to transfer large volumes of flight critical data, such as detailed weather information and aircraft health data, to and from the plane in real time. Another technology is our Smart Path Ground Based Augmentation System (GBAS). It is the only certified GBAS and has been selected by more than 20 airports around the world. A quantum leap over existing Instrument Landing System (ILS) technology traditionally used at airports for precision guidance, this system enables Air Traffic Control to

Exclusive Interview use complex, curved approaches, improve approach flexibility, reduce the risk of wake vortices, lower noise at ground level, increase airspace capacity and reduce weatherrelated delays. Our SmartPath system is not operating in the region yet. We are very excited to explore what opportunities there are for the technology in the region as traffic volumes increase.

What is your take on the regional aviation industry’s growth? Air traffic across the Middle East has increased dramatically. Middle East carriers saw the largest growth at 13 per cent and RPK rose 5.9 percent last year. This growth isn’t expected to slow in the long term. As the region’s largest airlines continue to place record-breaking orders for the world’s newest and most advanced aircraft, this market represents considerable

The entire region is renowned for having a fleet of some of the world’s largest and most advanced business and commercial jets

long and short term growth prospects for us. There is a large opportunity in the business aviation space too. As both business jet and airline passengers are flying longer and further there will continue to be growth in the aftermarket, with aircraft upgrades bringing new levels of performance and efficiency to the region’s fleets.

What challenges are being faced by the industry? The outlook for the region is positive, but there are still hurdles to overcome. Air traf-

fic is continuing to rise. There is a pressing need for new technologies to ease airspace congestion - advanced flight management systems, communication and connectivity systems, intelligent building management systems, airfield lighting improvements and technologies like GBAS. The region can also benefit from an expanded regional network, having been defined for many years solely as a premier long haul hub. Operators like flydubai and Air Arabia have been able to grow rapidly in the last decade due to the demand for affordable, regional and medium-haul travel across the Middle East. It is important that we continue offer a combination of technology to improve efficiency and lowers costs, and a local presence in the region to support fast growth and low cost airlines in all aspects of their operations. 

April 2015

Special Report

Dangerous Proximity Civil aviation authorities around the world are stepping in to regulate the drone traffic in the airspace.

ast September, air traffic controllers at LaGuardia Airport reported a Republic Airlines flight being “almost hit” by a brightly colored small drone at an altitude of 4,000 feet as the passenger plane was descending to land in New York. Other airlines - Express Jet, Pinnacle and Chautauqua - too reported “very close calls” with drones at an altitude of about 2,000 feet during the aircraft landings. The Federal Aviation Administration (FAA) is receiving about 25 reports a month from pilots who have spotted drones flying in restricted airspace or in close proximity to other aircraft. The FAA is publishing draft regulations on drones as part of its efforts to integrate unmanned aircraft into the US airspace by September 2015. The FAA documented more than 190 close calls in 2014, including instances of drones flying

Aircraft without a pilot on board go by many names—unmanned air vehicle (UAV), remotely piloted aircraft (RPA) system, model aircraft, remote control aircraft, and drone. With low prices, it is easier to buy a small, high performance multi-rotor RPA, equipped with high definition live stream video cameras, GPS, autopilot, and with decent flight time.

The UAE has taken steps to regulate unmanned aerial vehicles – including leisure drones - and would soon initiate an all-inclusive stakeholder consultative process within 50 feet of jetliners landing in New York and other cities. The problem is not confined to the US alone. The UK’s Civil Aviation Authority (CAA) has issued a warning that people who fly their drones recklessly and without authorization face prosecution and a hefty fine. Nick Aldworth of the UK Met’s Specialist Operations unit, said: “I compare them to cars. They are perfectly legal to own but it is very easy to break the laws when you are driving.” Unauthorized drone movements are becoming regular occurrences in several countries, including Australia, Canada, New Zealand, India, Philippines and the UAE.

April 2015

The International Air Transport Association (IATA), a global trade body representing 250 airlines in 117 countries, says the surging popularity of inexpensive radio-controlled aeroplanes and helicopters raises risks that require a firm response from regulators to ensure safety. IATA Director General and CEO, Tony Tyler, remarked: “Drones are an emerging issue. As they grow in number and sophistication, they need to be integrated properly in the airspace. This is a new industry and it will have to share airspace with an existing established industry. With safety issues that it raises, there is a need for regulators to grasp this one and run with it.” An ICAO panel is developing standards and recommended practices for Remotely Piloted Air-

craft Systems (RPAS) on a global level. So far, it has had amendments approved to Annexes 2, 7 and 13 to allow the operation, registration and accident and incident reporting of RPAS. It is currently developing a RPAS Guidance Manual to provide guidance to 191 member-states on how to develop their own regulations, which will be published in August next year. Work will start soon on amending Annexes 1, 6, 8 and 10 to include the licensing, airworthiness, operations and equipment provisions of RPAS by 2018. The UK, US, Canada and Australia have adopted legislation or regulations governing the use of UAVs, particularly in areas close to airports. The EU has launched a study on the integration of UAVs as part of the Single European Sky initiative starting in 2016. The Spanish Civil Aviation General Directorate is giving authorization to operate drones for experimental purposes under a Special Experimental Certificate of Airworthiness. Australia’s Civil Aviation and Safety Authority (CASA) are updating drone regulations. The Civil Aviation Authority of Singapore is reviewing the regulatory framework for unmanned aircraft as public interest grows for drones. The review, being done in collaboration with other stakeholders, takes into account the safety and security risks posed by unmanned aircraft activities, particularly near aerodromes.

Special Report

Six classifications of UAS operations The GCAA has conducted a comprehensive analysis of the significant increase in the Unmanned Aircraft Systems (UAS) activities, which is placing a ‘strain and potential risk’ to the aviation industry. The review has concluded that there is a need for a new regulation (CAR PART VIII, Subpart X), to be introduced in order to regulate the use of all UAS within UAE Civil Airspace, while continuing to provide efficient and sustainable ATS for Manned Aircraft operations to an equal acceptable level of safety which was previously achieved before UAS operations. GCAA has classified UAS operations within the UAE Civil airspace into six: Category 1 Minimum Performance Capability This UAS classification shall be restricted to aircraft 25 kg and less. Category 1A Private Use These UAS shall only be utilised for private leisure and sport purposes. Category 1B Commercial Use These UAS shall be utilized for commercial purposes including but not limited to Parcel Delivery, Surveillance Security/ Safety, Environmental Monitoring, Agricultural Monitoring, Transport Ergonomics, etc..

India’s Directorate General for Civil Aviation has banned all use of drones - even for civilian purposes - and is in the process of framing guidelines for use of UAVs in civil airspace. The Civil Aviation Authority of the Philippines (CAAP) has issued guidelines requiring the registration of UAVs whose operators are required to obtain a license. “If birds can bring down a plane, how much more these drones?” said Rodante Joya, Deputy Director General, CAAP which had to expedite the regulations due to alarming incidents involving drones flying near Ninoy Aquino International Airport (NAIA). The South African Civil Aviation Authority (SACAA) has banned the use of unmanned aerial vehicles (UAVs) due to a lack of regulations guiding its use as it is a relatively new technology. Canada is counting on new rules to keep risks low. Aircraft must fly at 87 knots or less and the flights must take place away from populated areas or controlled airspace including, for example, the skies around airports. The UAE has also taken steps to regulate unmanned aerial vehicles – including leisure drones - and would soon initiate an all-inclusive stakeholder consultative process. The rules and regulations of drone use and operation in the UAE, being drafted by the authorities, will include directives prohibiting their use near airports, populated communities, and individuals as well as restricted areas. The General Civil Aviation Authority (GCAA) is currently drafting the regulations and criteria for using drones in UAE skies, as well as to authorities to draft regulations parallel to those implemented by GCAA in order to control the import and distribution of these aircraft on the local market,

Category 2 Moderate Performance Capability This UAS classification shall be restricted to aircraft more than 25 kg and less than 150 kg. Category 2A Private Use These UAS shall only be utilized for private leisure and sport purposes. Category 2B Commercial Use These UAS shall be utilized for commercial purposes including but not limited to Parcel Delivery, Surveillance Security/ Safety, Environmental Monitoring, Agricultural Monitoring, Transport Ergonomics, etc.. Category 3 Advanced Performance Capability This UAS classification shall be restricted to aircraft 150 kg or more. Category 3A Private Use These UAS shall only be utilised for private leisure and sport purposes. Category 3B Commercial Use These UAS shall be utilized for commercial purposes including but not limited to Parcel Delivery, Surveillance Security/ Safety, Environmental Monitoring, Agricultural Monitoring, Transport Ergonomics, etc..

Work will start soon on amending Annexes 1, 6, 8 and 10 to include the licensing, airworthiness, operations and equipment provisions of RPAS by 2018 develop licensing criteria for the users of large-scale and advanced UAVs, and establish permissible heights and zones for flying. The GCAA Director General Saif Mohammed Al Suwaidi said: “We formed a national committee to conduct a comprehensive study to lay down detailed laws and legislation for these modern systems of drones. These will be added to the regulations currently in place, which prevent the use without prior permission from the GCAA, in coordination with the local aviation authorities.” In drafting the UAV regulations, the GCAA relies on the proposals of a study conducted by the National Committee, formed in October 2013, which included representatives of strategic partners and aviation service providers, in collaboration with the organising committee of the recently held ‘UAE Drones For Good Award.’ The UAVs are strictly “prohibited” in Dubai air space for any purpose without a prior permit from the Dubai Civil Aviation Authority (DCAA). Mohammed Abdulla Ahli, Director General of DCAA, warned that legal action would be taken against offenders. In end-January, people flying recreational drones brought Dubai airport traffic to a halt for almost an hour. It said the late afternoon air traffic was suspended as a result of “malpractices” of some members of the public who flew “recreational” UAV in the air navigation passages of planes.  April 2015

UAE in Focus

UAE airlines ask India for increase in capacity

irlines based in the UAE – Emirates, Etihad and flydubai – carried more passengers to and from India compared to Air India, India’s national carrier. According to data released by the Directorate General of Civil Aviation, Air India carried the second-largest number of passengers in 2014, at 4,984,660, followed by Emirates at 4,834,229. Jet Airways, which has an alliance with Abu Dhabi’s Etihad, topped the list with 5,559,438 passengers. flydubai ferried 147,735 passengers in 2014, and combined with Emirates, ended up carrying just 2,696 passengers fewer than Air India. Etihad stood 16th in the list, and carried 979,276 passengers. UAE carriers have urged India to open up more capacity to them and warned their growth in the country was being held back, The National

reported. Air Arabia said the low-cost carrier experienced “stagnation” in India, having exhausted its allocation of seats. All its flights are full and for four years it had zero growth in India. Air Arabia flies to 13 cities in India. flydubai’s expansion ambitions for India are also hampered because of such restrictions. “If we do get a chance for more capacity, we are always ready to have it,” said Pran S Dasan, head of India, Nepal, and Sri Lanka office for flydubai. “The airline is launching flights to Chennai this month and adding another service to Kochi, which he said “closes the recent increase in the

bilateral [rights]”, in a market which has enormous potential,” he added. “The reality of it is that India should open up and it’s not only to Emirates, it’s to everyone,” said Essa Sulaiman Ahmad, Vice President, India and Nepal, for Emirates Airline. Most carriers in India posted losses last year because of high costs including taxes, airport charges and fuel, while intense competition among airlines in India has led to price wars. The launch of Vistara, a joint venture between Singapore Airlines and Tata, added a third full service carrier to the Indian market, alongside Jet Airways and Air India. 

GCAA launches flow management initiative

he General Civil Aviation Authority (GCAA) has announced the selection of Airbus ProSky to develop a conceptual design for the UAE En Route airspace. It is the logical step following the successful outcome of the UAE airspace study conducted in 2012 and 2013 and will pave the way for further efficiency gains. Saif Mohammed Al Suwaidi, Director General of GCAA, said: Ensuring appropriate readiness for our aviation infrastructure to accommodate the UAE aviation strategies rests as a top strategy for the GCAA. The UAE airspace is considered amongst the busiest in the world and we are determined to continuously enhance the air traffic operations safety and efficiency.” The agreement also includes a Collaborative Air Traffic Flow Management (ATFM) study and operational trial. The output shall result in a concept of operations specific to the UAE environment. In the 2012-2103 airspace study, Airbus ProSky identified Air Traffic Management

April 2015

(ATM), airspace and Communication, Navigation and Surveillance (CNS) challenges resulting in 53 recommendations for improvement. A comprehensive airspace design is a key element ensuring the airspace will be optimally used to support growing aviation needs and activity levels. It also leverages capabilities as they are deployed as part of ICAO Block Upgrades and will accommodate the transition to a full Performance Based Navigation (PBN) airspace environment.

The UAE FIR is predominantly a complex En Route environment with the majority of traffic spending around 85 percent of the flight distance flown in a climb or descent phase. The conceptual designs that will be created by Airbus ProSky will interface the appropriate connectivity to Control Areas CTA’s, a key to ensuring integration into the overall UAE network route structure and international interfaces. Air traffic is expected to increase from 2,200 flight movements a day in 2014 to 5,100 flight movements daily in 2030. 

UAE in Focus

Al Futtaim Group gets airline certification

l Futtaim Group added another feather to its cap when the company’s aviation division flew its first commercial flight from Stuttgart, Germany with officials from the General Civil Aviation Authority (GCAA) on board, and landed at Al Maktoum International Airport in Dubai World Central (DWC). DC Aviation Al Futtaim (DCAF) said it has been issued an Air Operator Certificate (AOC) by the GCAA, thus allowing it to operate and manage third-party business aircraft commercially.

The aircraft that DCAF is allowed to operate include aircraft charter under the UAE’s A6 registration. DCAF will initially begin its commercial operations with a Bombardier Global XRS aircraft, it said. DCAF is a joint venture between Stuttgart-based DC Aviation GmbH, the largest operator of business jets in Germany, and Dubai-based Al Futtaim. DCAF was also the first operation to open a hangar and lounge facility within Dubai World Central. 

DIA runways lighting upgraded

oneywell has installed the world’s first complete LED airfield lighting system at Dubai International Airport. The company installed more than 8,200 LED lights and 1300 km of cabling in just 80 days, completing the work while keeping the airport operational throughout. The project is a game-changer in terms of promoting efficient, safe and reliable airfield operations. Honeywell has played an important role in the current refurbishing of both the southern and northern runways at Dubai International and installation of one of the world’s first complete LED airfield lighting systems.

On the southern runway, Honeywell helped construct new rapid-exit taxiways to increase capacity and improve operations. New visual guidance signs and navigational lights were also installed in this initial phase. The northern runway component saw Honeywell transforming the current airfield ground lighting (AGL) to an LED lighting system across runways and taxiways. “Given the complex nature of our operations, projects like the runway refurbishment can be extremely challenging and require skill and teamwork to make them a success. 

April 2015

UAE in Focus

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April 2015

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UAE in Focus

UAE among global MICE destinations

he UAE, specifically Dubai, emerged as one of the most popular destinations for meetings, incentives, conferences, and exhibitions (MICE) in Europe, Asia and the Middle East last year, according to a new study. Pacific World research found that India, USA, Eastern Europe, Scandinavia and Benelux were the key source markets for the UAE, with the majority of clients coming from the pharmaceutical, IT and automotive industries. It said the exemption of Eastern European countries from UAE tourist visas has enabled meeting planners from countries including Poland, Slovenia, Slovakia, Czech Republic, Lithuania, Hungary, Latvia, Estonia, Malta, Cyprus, Croatia, Romania and Bulgaria to consider Dubai as a more realistic and less complicated destination for their events in terms of logistics. Secondly, the announcement that Emirates would open several new routes, including

Chicago, Boston, Oslo, Brussels, Kiev, Taipei, Kano, Abuja has also placed Dubai as a much more accessible incentive destination. Dubai and the key MICE players have been able to create and keep the interest for the

destination investing in new hotels and attractions, developing new products for incentives and meetings. Dubai, along with Abu Dhabi, is tapping into the potential of the incentive tourism market. 

DAFZA records big surge in net profit

he Dubai Airport Freezone Authority (DAFZA) announced a 48 per cent surge in net profit with total revenues rising by 13 per cent. The authority, whose total assets also climbed by 3.42 per cent, contributed AED109 billion to Dubai’s non-oil foreign trade last year. DAFZA witnessed an 11.25 per cent increase in office space acquisition and related revenue growth of 18 per cent in 2014. Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA, Chairman of Dubai Airports and DAFZA, said the freezone’s strong performance last year reflected its commitment to effectively contribute to Dubai’s economic development and solidify the leadership of Dubai as a global hub for business and investment. Dr Mohammed Al Zarooni, Director General of DAFZA, said: “We look forward with optimism this 2015 as we work to maintain a leading role in achieving the Dubai government’s strategy through the freezone’s expansion and its thrust towards diversifying its business portfolio and investments to emphasize its role as a major contributor to the emirate’s gross domestic product.” 

April 2015

Middle East in Focus

Gulf Air cuts losses; upgrading A330 fleet

ulf Air has invested $20 million to upgrade four of its Airbus A330s wide-body aircraft in line with global best practices. Bahrain’s national carrier’s retrofit is part of a comprehensive product enhancement strategy. The airline is targeting load factors of 75 per cent this year. The airline took the initiative to turn an obsolete product of 15-year old design and specifications into a modern,

contemporary offering and ensuring consistency in the product standard across the fleet. The newly retrofitted aircraft will mainly service Gulf Air’s London Heathrow T4 and Bangkok routes. Gulf Air flies to London nonstop twice daily and operates six weekly flights to Bangkok. The airline currently operates an all-Airbus fleet with 28 modern aircraft that hold a combined average age of six years.

Gulf Air slashed its losses by a third last year. The governmentowned carrier lost BD63 million last year, compared to BD89.5 million in 2013, Transportation and

Telecommunications Minister Kamal Ahmed said. The carrier had racked up losses of BD211 million in 2011 and around BD200 million in 2012. 

77 new aircraft boost Saudia fleet

audi Arabian Airlines has received a new Boeing 777300ER aircraft, which would strengthen its domestic and inter-

national fleet. The new Boeing aircraft is the 15th of 20 new aircraft ordered by Saudia from the American manufacturer.

The national carrier has so far received 77 new aircraft from a total of 90 aircraft from both Airbus and Boeing. The new aircraft would support the airline to increase its market share of the huge Umrah pilgrimage traffic and confront competition from other airlines. Saudia operates more than 500 domestic and international flights daily. Saudia carried a record 28.18 million passengers, registering an increase of 2.31 million compared to the previous year. The number of seats made available on domestic and international flights reached 32.53

million with an increase of 2.51 million compared to 2013. Saudia has won top place in ontime performance in the Middle East and North Africa (MENA) region and fifth position in the world in 2014, according to a FlightStats, an international organization that specializes in airlines and airports and follows their performance. Saudia achieved 87.76 percent on-time performance after operating 189,297 flights with 33.74 million seats in 2014, according to Arab News. 

New $20 charge for passengers leaving Oman airports

eginning March 2, passengers flying from Muscat and Salalah to international destinations have to pay OMR8 as new charge, up from the previous OMR5. The Times of Oman reported that the Oman Airports Management Company (OAMC) has introduced increased charges for all departing passengers, with a charge of $2.60 levied on transfer passengers. OAMC issued a circular to all airlines using Muscat and Salalah, which outlined the new charges. However, infants under the age of two years, aircraft crew on duty travelling in

April 2015

uniform with a valid airline identity card and domestic departing passengers are exempted from the charges, the circular said. The OAMC has also introduced new landing changes from March 2 at Muscat, Salalah, Sohar and Duqm airports. The minimum charge regardless of the weight of the aircraft per landing has been made OMR5. Aircraft weighing up to 50,000 kg will have to pay OMR1.250 per tonne while aircraft weighing 50,001kg and above will have to pay OMR1.375 per tonne per landing, the circular said. 

Middle East in Focus

AfDB pumps $140 million in Sharm El-Sheikh Airport

he African Development Bank (AfDB) Group has contributed $140 million to the Sharm El-Sheikh Airport development project, investment firm EFG Hermes said. Development at the airport will include increasing the airport’s capacity from 10 million passengers a year to 18 million. This will occur through building a new terminal, developing airfield work,

including runways, taxiway system, visual aids, service roads and tunnels. In October 2014, Islamic Development Bank (IDB) announced it had approved $230.2 million for the development of Sharm El-Sheikh Airport. The bank had previously allocated $226.8 million to the project. In August, Egypt was said to be negotiating with the World Bank for a loan worth $318 million to develop the airport.

Saudia starts Jeddah-Al Ula service

audi Arabian Airlines (Saudia) has started operating two flights weekly between Jeddah and Al-Ula as part of a strategic plan to expand its operations between the Kingdom’s cities. It would help a large number of tourists visit Madain Saleh archeological sites. Madain Saleh, 22 km north of Al-Ula is the first World Heritage property to be inscribed in Saudi Arabia.

Furthermore, the AfDB was said to have refused the loan to Egypt for the same purpose due to the volatile political conditions. Hurghada Airport is currently also being developed to raise its capacity to 13 million passengers annually. The aircraft self-service fees have risen to fund and support the development of civil aviation in Egypt, according to the Ministry of Finance. 

Oman airports reports good performance in 2014

The national carrier currently operates flights to 27 domestic airports to meet the requirements of growing passengers traveling between the Kingdom’s cities. The carrier has allocated 70 percent of its flights for the domestic sector. Last year, Saudia carried 15.7 million passengers on 120,248 domestic flights, registering an increase of 987,636 passengers and 4,384 flights, compared to 2013. 

he year 2014 was an exceptional period for the Oman Airports Management Company. Muscat and Salalah International airports witnessed a success rate in terms of passenger growth, infrastructural developments, and its new route destinations by national carrier Oman Air. Muscat International Airport was busy throughout the months of January to December, 2014, reaching a total growth of 8,711,102

passengers; a growth of five per cent. Last year, the top five routes in volume included Dubai, Salalah, Doha, Bombay and Abu Dhabi. Salalah International Airport has similarly seen an extreme amount of passenger growth during the same period, reaching a total growth of 842,044 passengers, a growth of 13 per cent. The top four routes in volume last year included Muscat, Dubai, Sharjah and Doha.  April 2015

International

Beijing to have a new ‘monster’ airport

t 7.5 million square feet, it covers about the same amount of space as 130 football fields put together—all within one terminal building. Zaha Hadid Architects, the firm charged with designing the new terminal along with French airport design firm ADPI, faces a major challenge: How do you keep a building that must accommodate 45 million passengers a year—and eventually up to 72 million annually—from overwhelming passengers? For Hadid’s designers, the answer lies in its structure: the shape of the airport, its roof, and how it’s divided.Beijing is a vital hub for travel both within China and interna-

tionally, and its current airport is already at full capacity. According to current flight regulations, it just can’t accommodate any more planes than already travel to and from the airport daily. Yet Chinese air travel is booming. The country’s airplane market is expected to become the world’s largest by 2030. That’s where the new airport, located in the southern Beijing suburb of Daxing, comes in. The radial-shaped airport, which looks kind of like what happens when you stretch a blob of silly putty between your hands, will likely be the largest single-terminal airport building in the world when it opens around 2018.

Singapore considers a $3 billion airport expansion

ingapore’s latest budget includes a $3 billion plan to expand its Changi airport with a fifth terminal before the fourth is even completed. The new terminal five, targeted for completion in around 10 years, will be as big as terminals one, two and three combined, more than one million square meters. The additional airport spending is likely a contributor to expectations Singapore’s budget deficit this fiscal year will rise to around $5.3 billion, up from last fiscal

In 2025, a satellite terminal will add 4.5 million square feet of space. It’s estimated that it will cost a total $12.8 billion. The airport check-in system is designed

Ethiopian capital expands airport

year’s smaller-than-expected 100 million Singapore dollar deficit. Singapore is projecting Changi will see passenger growth of around 4-6 percent each year for the rest of this decade, according to a speech by Lui Tuck Yew, the transport minister, a year ago. In 2014, Singapore’s international visitor arrivals fell 3.1 percent on-year to 15.1 million, the first drop since 2009, during the financial crisis, amid a doubledigit decline in Chinese tourist arrivals, the Singapore Tourism Board said. 

thiopia will complete expansion work on the capital’s airport in 2018 to triple the number of passengers it handles from seven million a year now and will soon pick a site for a new hub to deal with 10 times the number in future. Bole International Airport, on the edge of Addis Ababa, is home to Ethiopian Airlines, the stateowned national carrier that is ranked the largest by revenue in Africa. Less than a decade ago, the airport handled 1 million passengers a year but that rose to seven million in 2014. Officials expect it to climb by 18 percent a year in the next few years.

April 2015

to speed up the process of getting in and out of the airport for frequent travelers. A separate floor of the airport is devoted to shortdistance domestic flights. 

Expansion work began in September at the airport, where passengers can face long queues at peak travel and transit times. China Communication Construction Company is carrying out the work at a cost of $300 million, set for completion by 2018. Ethiopia, with one of the fastest growing economies in Africa, was now looking at sites for a new international airport to serve up to 70 million a year. An official said the cost of such an airport could be $2.5 billion to $3 billion. Ethiopian Airlines has been rapidly expanding its fleet. It now has 77 aircraft, with 44 more on order. 

International

Orlando airport starts $1.1 billion expansion

rlando International Airport is embarking on a $1.1 billion expansion that will do away with the long check-in counters that now greet travelers and replace them with small kiosks, as well as add a new parking garage and train terminal. It is the most ambitious undertaking at the airport since the early 1990s, when officials spent $828 million on a 19-story atrium opening onto the main terminal, the 445-room Hyatt Hotel, a parking garage, shopping mall and new airside.The terminal, four airsides and baggage facilities were built to handle 24 million passengers, he said, and the airport now handles about 35 million travelers a year. The

improvements, he said, should allow the airport to move an extra 10 million people through Orlando International. Once the airport hits 45 million passengers — and that date is uncertain — Orlando International leaders say they should start building the southern terminal about a mile south of the existing one. That could cost an additional $1 billion. The airport is financing all the work through a combination of selling bonds that typically are repaid over 30 years; grants and loans from the federal and state governments; and an extension of a $4.50 fee on every ticket into and out of the airport.

Edinburgh airport to get £50 million expansion

That fee, called the passenger facility charge, can be levied for a variety of airport improvements and would not expire until 2038, if all the construction occurs as proposed. 

London City Airport expansion plans approved

ondon City Airport (LCA) is expanding. The £200 million project, due to be completed in the late 2020s, will allow annual flights to increase from the current 70,000 up to 111,000. This increased capacity is intended to ease the congestion crunch on existing London and UK air infrastructure, and better serve the large numbers of business travelers that routinely use LCA. A boosting of runway capacity will accommodate more take-offs and landings at peak times and getting the airport ready for the next generation of less noisy, more fuel efficient aircraft. Such aircraft will have longer ranges, opening up new destinations not currently reachable by the centrally-located facility.

dinburgh Airport has announced a £50 million expansion to triple its space for long-haul aircraft during a visit by Prime Minister David Cameron.

started operating to Chicago, and US Airways to Philadelphia, which will be switched to New York this summer. Etihad Airways launches flights to Abu Dhabi in June.

Scotland’s busiest terminal, which handles 10 million passengers a year, will build a second baggage reclaim area and immigration hall to cater for hoped-for further growth in longdistance flights. The work also includes new stands for aircraft to park, and “air bridges” to link them to the terminal. Construction will take four years, with 50 jobs being created.

Airport chief executive Gordon Dewar said: “The work we’ll be carrying out over the next four years will transform our airside facilities, tripling our capacity to handle bigger aircraft and paving the way for the next ten years of increased international connectivity.

Edinburgh’s long-haul traffic increased by 90 per cent last year thanks to new and expanded routes such as the capital’s first Middle East link, by Qatar Airways to Doha. United Airlines

Declan Collier, CEO of London City Airport, delved into specifics. “The development of the airport will culminate in 2023 when, having constructed seven new aircraft stands, a parallel taxiway and terminal extensions to the west and to the east, the airport will be welcoming some six million passengers every year.” 

Cameron said: “The expansion of Edinburgh Airport is great news for Scotland and for the whole of the UK. It will open the door to more long-haul flights and new routes, meaning more tourism, more trade and more jobs for people here in Edinburgh and beyond.”  April 2015

International

Malta investing €4 million in airport expansion

alta International Airport (MIA) expects to host some 4.4 million passengers this year, forecasting a two per cent growth over last year which was a record year for the airport.

passengers, an increase of 6.4 per cent from 2013 which had seen just over 4 million passengers by the end of the year. There was also an increase in aircraft movements by 4.8 per cent, resulting in an equal increase in seat capacity.

The growth is the result of further capacity being deployed to Malta from operating airlines and also due to a number of new airlines and routes which have already been announced, including Aegean, Finnair, Jet2.com and Swiss. Last year saw 4,290,304 million

Besides an increase in available flights and seats to and from Malta, the airlines flying through the airport also succeeded in increasing the seat load factor, meaning that aircraft were on average fuller than in 2013, from 78.5 per cent to 79.7 per cent. 

Macau airport performance improves

acau International Airport received 5.48 million passenger traffic, recorded nine per cent increase in 2014 compared to 2013. As a small to medium sized airport, it is the third consecutive year to achieve net profits.

MIA recorded over 1 million passengers through low cost carriers. After seven consecutive years of negative growth in cargo traffic, it recorded the first time a positive growth of 8.7 per cent in 2014, General Aviation achieved average annual growth of 20 per cent from 20072014, a new general aviation hangar will be in operation in this first half year. The airport forecasted new target of 29,343 tonnes of cargo in 2015, two per cent increase compared with 2014. Macau will continue to be affected by the surrounding economic impacts: new Visa measures of mainland China and limited long-haul aircraft development space. 

April 2015

Fiji aviation sector taking off strongly

iji government plans to develop the infrastructure of the 15 airports operated by Airports Fiji Ltd (AFL). AFL is looking to deliver around $250 million worth of capital upgrades over the next five years. The centrepiece of this programme is the Nadi Airport Terminal Modernisation Project, which commenced in August 2014.There is also a plan to in the near future build at least a 70-room transit hotel located within the Nadi Airport complex.

The major upgrade plans for Nausori Airport are equally exciting. They includes a runway extension – so that larger planes can land in Suva – and a new terminal. This will have huge benefits for the capital city, its people and its businesses. The government will intensify negotiations for the acquisition of about 35 hectares of land necessary for these upgrades and we look forward to finalising this matter this year. Fiji’s 13 outer island airports are also on the radar. 

Victoria airport’s capital spending to improve

he Victoria Airport Authority (VAA) is on track to spend nearly the same amount on capital improvements this year is it did in 2014. Last year, the authority operating Canada’s Victoria International Airport spent a little more than $14 million on interior and exterior improvements. Most people would notice, says James Crowley, an expanded security screening area and additional retail and food services on the other side of the security checkpoint. Terminal renovations cost the VAA around $8 million since 2013. One of the larger expenses in 2014 was $7.17 million to repave the main runway. This year, the VAA plans on spending around $13 million more on such capital upgrades as: an apron expansion ($8.25 million to make room to park two more jets in front of the terminal), public address system ($425,000) and a baggage carousel ($400,000).

Additional money from Canadian Air Traffic Safety Authority could add around $5.5 million to their source funding. The VAA will also spend around $100,000 in 2015 to plan for an expansion of the parking lot. As Canada’s 10th-largest airport, Dickson said Victoria averages 120 flights per day, saw approximately 1.64 million passengers and generated $26 million in revenue. 

Interpreting local traditions, embracing tomorrow’s needs

Engineers and architects creating outstanding and proﬁtable airport facilities

Taiwan Taoyuan International Airport - Control tower Taiwan, Taipei

www.adp-i.com A member company of Aéroports de Paris Group April 2015

Airlines

flydubai posts $68 million net profit

lydubai has reported a net profit of AED250 million ($68 million) an increase of 12.3 percent compared with the 2013 performance. The low-cost carrier flew 7.25 million passengers last year with increases seen on routes to Africa (14 percent), Central Asia (57 percent), Europe (11 percent) and the Subcontinent (11 percent). The airline added 23 new routes last year, creating a network of 86 destinations while also increasing frequency on

Etihad-backed Air Serbia posts $3 million profit

many of its existing routes. The airline now operates 1,400 flights per week. His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA, Chairman of Dubai Airports and Chairman of flydubai, said: “Recording its profitability for the third consecutive full year, the 2014 results show that the recent order for more aircraft as well as investments in the offering on the ground and in the air have been the right strategy for the airline.” 

tion, the airline’s revenues rose by 87 per cent to EUR 262 million, marking the strongest results in the existence of the national carrier.

In its first full year of operation, the airline’s revenues rose by 87 percent to EUR262 million, marking the strongest results in the existence of the national carrier. A total of 2.3 million passengers travelled with the airline in 2014, 68 percent more than in 2013.Air Serbia Cargo also performed significantly better in 2014, carrying 2,700 tonnes of freight, a 67 percent increase on 2013. In its first full year of opera-

Its Available Seat Kilometres (ASKs) increased by 74 per cent to 3.3 billion by the end of 2014. Since Air Serbia’s launch in October 2013, the airline has undertaken a number of initiatives to rebuild the carrier and transform it into a profitable, stable, reliable and strong airline to serve Serbia and the broader Balkan region. The airline was rebranded and ten new generation Airbus aircraft were introduced, with eight A319 and two A320 added to the fleet. 

ir Serbia, the national airline of the Republic of Serbia, in which Etihad Airways holds a 49 percent stake, reported a net profit of EUR2.7 million ($3.02 million) for 2014.

Citilink expects first profitable year

udget airline Citilink is looking to report its first annual profit in 2015 after it started operations in late 2011. While Garuda focuses on the premium segment in Southeast Asia’s biggest airline market, Citilink is part of the flag carrier’s strategy to better compete with the dominant domestic budget carrier, Lion Air. Citilink has benefited from the exit of Tiger Airways’ Indonesian affiliate airline last year and the grounding of indebted

PT Merpati Nusantara Airlines in the competitive low fare market. Citilink flew about eight million passengers last year, up more than 40 percent from the previous year as it increased the number of routes, frequencies and added more aircraft. Citilink captured about 15 percent of the Indonesian lowcost carrier market in 2014, up from about five percent in 2011, according to CAPA. 

Rise in zero-hour contracts among pilots

new EU-funded study has detected a dramatic rise in self-employment and zerohours contracts among pilots on European aircraft, which it describes as a “race to the bottom”. More than one in six pilots in Europe is “atypical” employee - working through a temporary work agency, self-employed, or on a zero-hours contract with no minimum pay guaranteed.According to the European Sectoral Social Dialogue for Civil Aviation, which commissioned the study, 70 per cent of all self-

April 2015

employed pilots work for a low-fares airline, but that self-employment is sometimes used “to disguise what is in reality regular employment”. It says this distorts the aviation market, by creating an unfair competitive advantage for those airlines relying on such practices. Researchers found younger pilots fare worst, with 40 per cent of pilots fewer than 30 selfemployed, on zero-hours contracts, or working through a temporary employment agency. 

Norwegian slumps to a loss

orwegian Air Shuttle reported a wider-than-prediction annual as the Scandinavian low-cost airline’s rapid expansion and fuel hedging for this year weighed on earnings. Norwegian’s 2014 losses marked a dramatic slump after seven years of net profits (five years of operating profit). The net loss last year was $137 million. Norwegian Air is pursuing one of the industry’s most ambitious growth plans, rolling out a long-haul operation with Boeing 787 planes while swelling its European fleet. 

Airlines

Sichuan Airlines to expand global network

Sichuan province, in May. Initially, the service will be operated four times a week using Airbus A330 aircraft.

The airline will launch the first ever direct flight to Moscow from Chengdu, the capital of southwest China’s

This marks the start of the airline’s European expansion, with services to Amsterdam also expected to commence this year. In addition, Sichuan

hengdu-based Sichuan Airlines will expand its international operations this year, with the launch of new routes to Moscow, Tokyo and Osaka.

Nepal Airlines poised for growth

epal Airlines is poised for growth with fleet and route expansion drives. The ailing national carrier of the Himalayan kingdom is left with only two 30-year-old Boeing 757s and two airworthy Twin Otters left. The airline doesn’t fly to any point in India anymore, and connects only five airports within the country. The airline is now preparing to add the first of its two new gener-

ation Airbus 320s and expand its domestic fleet with six Chinese aircrafts. The airline is also facing a crippling shortage of pilots. At present it has only 25 pilots for its 757s, and five of them are retiring. Six pilots have gone for simulator training for Airbus 320s in Toulouse. The first Airbus 320 is expected to resume the airline’s Kathmandu-Delhi route which at the moment is operated by five Indian and one Bhutanese airline, according to Nepal Times. 

Airlines will launch scheduled service to Tokyo and Osaka in the second half of 2015. The airline will offer four weekly flights to Tokyo’s

Haneda International Airport, and fly to Osaka’s Kansai International Airport on the remaining three days of the week. 

United Airlines to cut jobs at 16 US airports

nited Airlines will outsource about 1,150 positions at 16 airports across the US. The Chicago-based carrier began a review of jobs at 28 US airports to reduce costs by $2 billion annually. The airline said it needed to curtail its spending to stay in line

with its less-unionized competitors. United agreed to keep the jobs of ramp workers and customer service employees at six of these airports with contract ‘modifications’. Ramp workers will be outsourced at another six airports, while customer service employees there will retain their jobs. 

US airlines were tardy last year

n 2014, passengers suffered as airlines were on-time less often, lost bags at a higher rate and bumped more people than the year before. But at least airlines canceled fewer flights, and there were fewer lengthy delays leaving travelers stranded on the tarmac. According to data released by the US Department of Transportation today, airlines were on time (within 15 minutes of scheduled arrival) 72.6 per cent of the time last year, down from 78.3 per cent in 2013, reports The Chicago Tribune. As for personal belongings, airlines lost 3.62 bags per every

1,000 passengers, an uptick from 3.22 bags the year before. And more passengers got the boot from flights, with 0.92 involuntary denied boardings per 10,000 passengers, an increase from 0.9 the year before. Passengers didn’t suffer their gripes quietly, either, filing a total of 11,364 complaints against US airlines, up 17.3 per cent from 2013. In 2009, the last full year before the new fines went into effect, a whopping 868 domestic flights had lengthy delays. Even in 2013, there were more than twice as many lengthy delays than last year, with 84 domestic and 55 international that year.  April 2015

Opinion

Panama – A regional aviation model The connectivity that aviation provides can play a major role in helping to drive economic growth. The airlines here are well-positioned to do so. But for aviation to be able to meet rising demand for connectivity, governments in the region have to do their part too. Tony Tyler Director General & CEO IATA

n Latin America and the Caribbean, we expect airlines to earn about $1 billion this year. While the region’s airlines are improving, it is lagging behind the global average. If we look at Panama and the rest of the region, there is reason to be optimistic about the future.

It is a fact that governments in some parts of the world take a more supportive view of how to maximize the benefits of aviation’s connectivity than others. Panama is one example, and there are others such as Chile, Singapore and Dubai, where governments recognize the value of aviation as an economic enabler and use it to drive development. In other regions, like Europe and North America, governments too often see aviation as little more than a cash cow.

They burden passengers and airlines with high fees and taxes to fill government coffers for initiatives that have nothing to do with aviation. Unfortunately, this also happens across this region. We see an extreme example of that mindset at work in Venezuela, where to support the economy, the government is refusing to permit airlines to repatriate their own money except in small amounts at punitive exchange rates. If we look at the region and the Caribbean in particular, there is a clear trend to burden airlines and their passengers with taxes and user charges. There are some 47 different types of taxes and charges in Central and South America, and 34 more for the Caribbean. The same holds true for user charges. For example, in Jamaica, Kingston and Montego Bay airports have

imposed tariff increases of more than 50 per cent. I cannot avoid thinking of the damaging consequences to Jamaica’s tourism industry due to these charges.According to the World Economic Forum, Panama and Barbados rank among the top 35 countries for the quality of their air transport infrastructure. I am hopeful that by working together using global standards and by sharing our expertise we can find ways to manage the infrastructure shortfall in the region. The economic footprint of aviation in Panama is now $5.1 billion per year or 12.6 per cent of the country’s GDP if the catalytic benefits from tourism are included. This is more than three times the global average of 3.4 per cent of GDP.  Edited excerpts from the speech at the Launch of the Economic Benefits from Air Transport in Panama study

Managing congestion at hub airports airports, we’ve been able to dramatically enhance capacity at many airports. This report shows the combined effects of adding 18 new runways and seven extended runways at 21 busy hub airports since 2000.

Michael P. Huerta Administrator Federal Aviation Administration

oday, most hub airports in the United States operate efficiently with moderate delays. This is a significant improvement from the past when delays at many airports were growing and causing a ripple effect of system-wide delays. Substantial reductions in congestion that have been achieved during the past 10 years. Working closely with

April 2015

That’s a tremendous amount of new capacity that allows traffic to flow more freely in and out of airports to better serve their communities and the nationwide system. At other airports, air traffic has decreased with structural changes in the airline industry. As a result of both enhanced capacity and traffic changes, congestion has been reduced and the nationwide system is more reliable. Bad weather days have less impact, and we can recover schedules faster once the weather clears. Most (but not all) of our hub airports will be able to function well in terms of capacity through the next decade. NextGen is helping to manage delays resulting from increasing con-

gestion at many airports, but NextGen alone cannot create sufficient additional capacity at some of the largest and busiest airports. This is not surprising, as FAA has always acknowledged that new runways and other solutions will still be necessary to address traffic growth and reduce delays. It’s vital that active airfield work continue at key hubs like Chicago O’Hare and Philadelphia International Airports if we are to keep pace with demand and stay ahead of delays. While capacity and delays have improved nationally, there are a handful of airports with consistent delays – most notably John F. Kennedy, LaGuardia, Newark, Philadelphia, and in the coming years, San Francisco. Airline scheduling is increasingly concentrated at major hubs, which has exacerbated congestion as well. While NextGen will improve performance, it’s likely that significant con-

gestion will continue to plague these airports unless additional airfield capacity enhancements can be achieved. The FAA is committed to supporting continued work in these locations to evaluate and implement effective long-term solutions in collaboration with stakeholders. Looking further into the future, out to 2030, with cumulative traffic growth, more hub airports will become congested. However, due to aviation industry consolidation and other factors, there is uncertainty with these longer-term projections. For example, the airlines may accelerate the current trend in up-gauging to larger aircraft, flying more passengers on fewer flights. With these shortrange fluctuations, it’s challenging to determine when long-term capacity enhancements will be needed.  Edited excerpts from foreword for the FAA’ Future Airport Capacity Task (FACT) report

Opinion

Pushing boundaries

John Crichton President & CEO NAV CANADA

afety has been our top business imperative from our earliest days. Our outstanding safety performance is directly linked to the safety focus of our people and to their success in finding new approaches to managing air traffic and utilizing advanced technologies.Examples include implementing ADSB surveillance in four million kilometers of formerly procedural airspace

and completing the domestic roll-out of Controller-Pilot Data Link Communications (CPDLC). Safety and efficiency are always connected in aviation and air traffic management. Long in use throughout our North Atlantic airspace, CPDLC is now fully functional in all domestic flight information regions above Flight Level 290. Another example of the safety-andefficiency benefits of new technology is Medium Term Conflict Detection (MTCD) which continuously checks correlated flights for any losses of separation that will occur within 20 minutes. It is now available in the high-level airspace sectors of the Moncton, Montreal, Winnipeg, Edmonton and Vancouver. The Collaborative Initiatives for Emissions Reductions (CIFER) helped customers save more than

$500 million-dollars in annual fuel costs, and reduce annual GHG emissions by 1.3 million metric tons. For the period 1997 to 2020, we project cumulative fuel savings of $7.4 billion dollars, with reductions in GHG emissions of 21 million metric tons. Our joint venture with Iridium, ENAV of Italy, the Irish Aviation Authority, and Naviair of Denmark, is to mount ADS-B receivers on Low Earth Orbit satellites, extending air traffic surveillance to the entire globe. Aireon will revolutionize global air traffic surveillance, delivering billions in fuel savings and significant GHG reductions. The service will be fully available, beginning in 2018. Called Aircraft Locating and Emergency Response Tracking (ALERT), this service will be available free-ofcharge for all ADS-B-equipped aircraft. ANSPs will be able to request

the location and last flight track of any ADS-B-equipped aircraft that goes missing, even if they are not subscribers to the Aireon service. The first ADS-B equipped satellites are to be launched this year. We have started the final stage of our multi-year program to replace Instrument Landing Systems (ILS). When this project is complete, more than 110 new ILS will have replaced legacy systems. We have now installed 87 new Automated Weather Observation Systems. We continue to hold service charges steady, as we have for a decade. That 10-year track record of no overall increase in rates is unmatched in most industries anywhere. Air traffic management has gone from light guns to radio to digital technology in 75 years. ď&#x201A;&#x192; Edited excerpts from the speech at the NAV CANADA Annual General Meeting, Ottawa, Ontario

New technology for air navigation TROL member-states, 28 of which are European Union members, in the immediate future. EUROCONTROL has looked at all those new technologies and had identified 18 technologies that should be implemented on a central basis and not on a national or local basis, thereby gaining costefficiency. Frank Brenner Director General EUROCONTROL

n Europe we see more and more new technologies and procedures in support of the global Air Navigation Plan (ANP) and the airspace block upgrades (ASBUs) coming out of the European Single European Sky Research and Development program (SESAR). This means a significant volume of investment by the 41 EUROCON-

For these services, we have developed operational concepts (CONOPS). All of these services are applications that support the system wide information management (SWIM) concept, as in Europe we foresee having only one (or perhaps two of these systems for redundancy purposes) rather than implementing and operating them in our 63 ACCs in Europe. A cost-benefit analysis has been conducted showing significant savings of 1.5 to two billion Eu-

ros in a 10-year time frame.These services are currently being developed and set up for demonstration following a decision of the 41 EUROCONTROL member-states in February 2014. We are reaching out to ANSPs and industries to support us in this endeavour through a contractual arrangement, to demonstrate the concepts. The CS1 is dealing with the capacity constraints at the European airports which ask for airport slot coordination. The central database connects the airport slots with the filed flight plans to ensure that we exploit the capacity to a maximum. The CS4 is a central database for the coordination of military airspace use over all Europe. All the military air forces schedule the activation of their training areas via

this database in cooperation with the civil partners. This database is dealing with confidential information thus there is a requirement for a high level of security to protect the data in the database. ECTL has worked intensively with NATO and the military forces to establish this application of the System Wide Information Management concept. You might have heard about the EAD which we have developed further with the CS5. We built on the very positive experience of the last 10 years of operations, using modern AIXM standards. With CS, we are supporting the global navigation plan and where we see further guidance being needed on architectural solutions updating the SWIM concept. ď&#x201A;&#x192; Edited excerpts from the speech at the ICAO Air Navigation Commission, Montreal, Canada

April 2015

In Focus

Diverse Liquidity Aircraft finance and investment market has remained attractive with more than $120 billion needed for aircraft deliveries this year.

study by Boeing Capital Corporation anticipates continued strength in the primary commercial aircraft finance sectors, with balance among funding sources and an unprecedented diversity of capital providers. Aircraft finance and investment is attracting a broad cross-section of new market participants in response to decades of predictable and attractive

returnsâ&#x20AC;&#x201D;including stable performance through the global financial crisisâ&#x20AC;&#x201D;and investor appetite for asset diversification. This year, commercial aircraft finance strength should result in efficient financing for airlines and historically low levels of export credit usage, with commercial bank debt and the capital markets expected to cumulatively account for approxi-

Strong orders delight investors For full year 2014, Boeing delivered a record 723 commercial airplanes to airlines, surpassing its European competitor Airbus, which delivered 629 airplanes. The US airplane maker posted annual revenue of nearly $91 billion last year, a rise of five per cent from the previous year. Higher production rates driven by rising airplane orders from airlines have been the primary driver of this growth. It will continue to grow as it plans to execute five more production rate hikes over the next five years. In the current year, Boeing forecasts its top line to rise to $94.5 billion to $96.5 billion, on higher commercial airplane deliveries. This will boost Boeingâ&#x20AC;&#x2122;s backlog of nearly 5,800 commercial airplanes, a $440 billion worth business. It registered orders of 1,432 in 2014. At current production rates, it will take Boeing over seven years to clear its existing backlog. The company plans to hike its 737 production rate from 42 per month currently, to 47 per month in 2017 and eventually to 52 per month in 2018. Boeing also plans to raise its 787 production rate from 10 per month currently to 12 and 14 per month in the coming years. Together the 737 and 787 airplanes constitute more than 80 per cent of all Boeing commercial airplane deliveries.

34 34

April April 2015 2015

mately 60 percent of delivery financing. Much of the bank debt and capital markets activity should be for lessors, who are expected to fund about 40 percent of all deliveries, according to the study, Current Aircraft Finance Market Outlook Current Aircraft Finance Market Outlook (CAFMO). With more than $120 billion expected to be needed for aircraft deliveries this year and even higher numbers forecast for future years, there is tremendous opportunity for aircraft finance market participants and investors, but also some unique challenges. The study by the US airplane maker noted that today many of the commercial banks in aviation are relatively new players who are still developing their aircraft finance expertise. Along with a tighter regulatory environment, this is expected to concentrate competition for new commercial bank loans at first-tier airlines, boosting demand for aircraft leasing among second-tier carriers. In addition, investor demand for aircraft-secured debt continues to outstrip supply. Satisfying this unmet appetite for aircraft asset exposure will depend on the ability of global airlines to efficiently access the capital markets as well as innovation in lessor portfolio sell-down structures. Investor

In Focus

About 90 percent of people carry a mobile device when they travel by air, making them what SITA calls the digital travellers demand and portfolio sell-down initiatives should also support continued interest and investment in the used aircraft market. The strength seen in aircraft finance is largely the result of a healthy and balanced global demand for new aircraft, driven by anticipated passenger traffic growth, record airline profitability, and the continuation of a replacement cycle to improve the fuel and performance efficiency of a large portion of the global fleet. The fleet continues to operate at historically high utilization levels and record load factors. Complementing a strong passenger market is the growth in air cargo demand. The growth in this sector’s volumes may signal the anticipated return of air cargo traffic growth to historical levels. Concerns about fuel prices, interest rate hikes, currency volatility, political unrest, and health epidemics are responsible for some market angst. However, as long as these variables do not undermine global economic growth, the current trends for new airplane demand should continue this year, supporting continued strength and balance for the global aircraft finance industry.

Healthy environment

This year, the aircraft finance market is expected to provide diverse liquidity at record low prices. We forecast that lessors should again be responsible for funding the largest share of new deliveries. While politics are creating some uncertainty around export credit, that should be offset by balanced funding from commercial banks and capital markets. The new commercial bank and capital market participants over the coming years should drive continued diversity in these sources. Manufacturer support is expected to remain isolated to a limited number of airline and jurisdiction-specific challenges.

Balanced funding

Funding for Boeing deliveries this year is expected to mirror that of the broader industry, with unprecedented liquidity driving strength and diversity in major sources of financing. Continued deleveraging and resilient airline profitability are expected to support relatively high levels of cash equity, with funding for this year’s deliveries projected to be roughly balanced between cash, commercial bank debt, and capital markets. Export credit usage should be at historically low levels. As with the broader industry, lessors are expected to play a significant role in supporting Boeing deliveries.

Lessors and Capital Markets

Over the past three years, leasing companies shifted the bulk of their leverage from commercial bank debt to more efficient capital market funding. This expanded capital market liquidity is attracting new institutional investors and stimulating interest in the creation and evolution of aircraft portfolio securitization structures. An expanding investor base, a rational balance between secured and unsecured funding, innovative financing structures, and a growing private placement market are helping to propel the growth of capital markets in aircraft finance. This year, the capital markets are expected to support nearly a third of new deliveries through both secured and unsecured funding. Capital markets will be the primary source of leverage for lessors, who are a conduit to the public markets for many airlines. For new deliveries, global airlines will rely on both secured and unsecured issuances, with lessors primarily using unsecured structures. The refinancing activity is expected to remain strong, with a variety of secured structures for both airlines and lessors. In 2015, commercial bank debt is expected to remain the second-largest source of financing for new deliveries. The rise of new participants, especially from the US and Australia, along with the continued participation of existing lenders, should help maintain balance, diversity and strength in the bank markets. First-tier airlines and lessors should continue to be the primary beneficiaries of robust competition among banks. Commercial market strength

Boeing fleet in the UAE

The UAE carriers are set to receive more than 50 planes this year with Emirates alone taking 26 deliveries worth around $10 billion. The aircraft will include 10 Boeing 777 and one Boeing 777 freighter. Last year, Emirates added 12 Boeing 777-300ERs and two 777 Freighters and received its 100th Boeing 777-300ER. Its fleet includes Boeing 777-200LR, Boeing 777-300 and Boeing 777-200 aircraft. Emirates is the largest operator of Boeing 777 aircraft in the world, with a fleet of 122 passenger and 10 freighter Boeing 777s. flydubai received eight Next-Gen Boeing 737-800 aircraft in 2014 worth around $746.4 million. This year, the carrier will receive the remaining seven Boeing 737s from its 2008 order of 50 aircraft worth $4 billion. Its aircraft order includes 75 Boeing 737 MAX 8 and 11 Next-Gen Boeing 737-800 aircraft valued $8.8 billion. The Dubai carrier retains purchase rights for an additional 25 737 MAX 8 aircraft. The first aircraft, Next-Gen Boeing 737-800s from this order, will be delivered between 2016 and 2017. Deliveries of the first Boeing 737 MAX will commence in the second half of 2017 and continue until the end of 2023. Last September, Etihad Airways took its first Boeing 787-9 Dreamliner. This year, it will take delivery of three Boeing 787-9s. The airline’s future deliveries include 71 Boeing 787 Dreamliner and 25 Boeing 777.

and the higher fees and equity requirements are expected to keep export credit usage at historically low levels this year. Export credit usage will likely be limited to emerging market players, new lessor platforms, and a modest amount of funding needed for diversification by established carriers. 

Fuel-efficient airplanes

Boeing expect strong market demand for new, fuel-efficient airplanes to result in about $124 billion of commercial aircraft deliveries industrywide this year, double the amount from 2010. Looking ahead, the next five years are expected to bring robust, albeit slower, growth in airplane delivery financing requirements, with a projected $156 billion of delivery financing needed in 2019. The aircraft finance industry grew and evolved to successfully meet the rapidly-rising demand of the past five years and appears to be well-positioned for the next five as well. April April 2015 2015

35 35

Cargo & Logistics

Global air cargo demand grows 4.5 per cent in 2014

lobal air cargo demand increased by 4.5 per cent in 2014, as compared to 2013, according to the International Air Transport Association (IATA)

“After several years of stagnation, the air cargo business is growing again. This is largely being driven by the uptick in world trade over the second half of 2014.”

Measured by freight tonne kilometers (FTKs), the growth is a major leap from the 1.4 per cent growth recorded in 2013 over 2012. The growth in FTK was maximum in the Asia-Pacific and Middle East regions, which respectively contributed 46 per cent and 29 per cent to the air freight demands. However, cargo revenues remained almost unchanged at $62 billion, which is nearly $5 billion less than the revenue generate in 2011.IATA Director General and CEO, Tony Tyler, said:

Preliminary data from Airports Council International (ACI) showed that Hong Kong International Airport handled the most air cargo in 2014, rising 6.1 percent from the year before to 4.3 million tonnes. Regionally, the Middle Eastern airports increased volume 11.8 percent in 2014, which makes it the highest growth region in 2014. Dubai handled over 2.4 tonnes of cargo. Doha and Abu Dhabi, ranked second and third in freight volume for the region, reporting double-digit gains

ANA Cargo expands its fleet

NA Cargo, the Japanese carrier, has its eyes firmly on the Asian e-commerce market. Not only does it already own an express and courier company, but it is expanding its fleet. This year and next, in June and January, it will receive two additional 767Fs taking its freighter fleet, all 767Fs, to 12. The carrier is also considering ordering two more. “Express and e-commerce is the focus,” said Toshiaki Toyama, executive vice-president, global marketing for the carrier. Noting that the integrators are the main users of 767Fs, he said the carrier is

of 13.2 percent and 12.8 percent respectively in 2014. Growth in the Asia-Pacific airfreight market was also strong, with a 5.7 percent rise overall. The African air cargo market grew by 3.8 percent. Europe appears to be in recovery,

Maximus Air to begin door-to-door service

studying the feasibility of getting a 13th and 14th freighter. While ANA Cargo has intercontinental bellyhold operations, its freighters are focused on the express business. In 2009, it acquired OCS, an express and courier company, while ANA Cargo itself is also a handler and freight forwarder, offering Customs brokerage and other logistics services. The cargo carrier, which leaves the operation of its aircraft to ANA, but markets the capacity, has a triple-hub strategy, connected by frequent road feeder services. 

aximus Air, the specialty heavy-lift carrier has reemerged with plans to offer door-to-door delivery for cargo of almost any size, plus freight forwarding services for air, sea and land transport modes. Abu Dhabibased Maximus Air, known chiefly as one of the largest airfreight charter operators in the Middle East, is re-inventing itself as a “one-stop shop” that will be able to ship “parcels of all shapes and sizes” through its network of partners. Mohamed Ebrahim Al Qassimi, CEO, Maximus Air, said the doorto-door forwarding service will have “a simple pricing structure

April 2015

with airfreight growth at 3.6 percent in 2014.Latin America and the Caribbean results were pretty flat due to weakness in the Brazilian and Argentine markets. Growth in North America in airfreight volume was 3.5 percent. 

and competitive rates”. Besides airfreight, the service will also handle forwarded sea freight, road and rail transport, FCL/LCL and break-bulk loads around the Arabian Peninsula region in the first phase of the operation. The service will also include warehousing, supply chain management, insurance and packaging services.The Maximus Air expects the new service to reach profitability in the first half of this year, “with further market segmentation earmarked for 2016”. The carrier is expecting an average annual growth of 4 percent in airfreight demand between the Middle East and Europe over the next 20 years. 

Cargo & Logistics

Dubai airports cargo volume jumps 18 per cent in 2014

reight volumes handled by Dubai’s two big international airports jumped 18.1 percent in 2014 as the emirate strengthened its position as a regional hub for trade, data provided by the airports’ operator showed. Combined cargo volumes at Dubai International and Al Maktoum International in Dubai World Central (DWC) rose to 3.13 million tons last year from 2.65 million tons in 2013, according to figures from Dubai Airports.Volume at Dubai International dropped 3.1 percent to 2.37 million tons as dedicated

freighter operations were shifted to Al Maktoum International, where volume surged 262.5 percent to 758,371 tons. Dubai Airports has been shifting cargo and some passenger traffic to Al Maktoum International from Dubai International, because of capacity constraints at Dubai International and to allow for the growth of flagship airline Emirates. Airfreight volumes at DWC reached 758,000 tonnes in 2014 compared with 209,000 tonnes in 2013, following the shift of freighter aircraft operators from the Dubai International Airport. 

Cathay Pacific launches new mobile app for cargo

athay Pacific Airways has launched a new cargo mobile application that offers cargo agents, forwarders and customers greater convenience when tracking shipments, in addition to a wide range of other information relevant to the operations of Cathay Pacific Cargo. Building on the services available at www.cathaypacificcargo.com, the new Cathay Pacific mobile app allows customers to track shipments through their smart phone or tablet device at any time and from anywhere. Customers can also review the e-booking status of their shipment by logging into the app, just as they would with the cargo website.

Etihad reports record cargo demand in 2014

The list of functions available on the mobile app includes: tracking of multiple air waybills through Track & Trace; saving air waybills in My Favourites; checking flight schedules and the latest arrival and departure times; checking shipment load ability; Cathay Pacific office locations and the latest news about Cathay Pacific Cargo. The new ‘Cathay Pacific Cargo’ app is now available for download from both the Apple iTunes and Google Play stores. Cathay Pacific is one of the world’s biggest international cargo operators, with services to 97 destinations around the world and a dedicated fleet of freighters. 

IAG Cargo moves to all-in air freight rate

tihad Airways had reported a record-high annual total of nearly 569,000 tonnes of freight and mail, a 17 percent increase over 2013 figures. The airline accounted for nearly 90 percent of cargo imports, exports and transfers at Abu Dhabi International Airport last year. Etihad Cargo added belly hold capacity to 10 new destinations in its route network last year, including Medina, Jaipur, Los Angeles, Zurich, Perth, Rome, Yerevan,

AG Cargo has announced that it is changing its pricing structure to cut two surcharges and switch to an all-in rate. The move follows the same decision taken earlier this year by Emirates and new IAG 10 per cent shareholder Qatar – policies which were announced with a far greater fanfare. IAG stated: “At the start of the summer season, 2015, we will be making some changes to the way IAG Cargo charges for the carriage of freight. We are making these changes to provide greater

Phuket, San Francisco and Dallas. Frequencies were increased on 23 existing global routes during the course of the year. The carrier also expanded freighter services to various cities, such as Dar es Salaam, Entebbe, Hanoi and Moscow. In an agreement with Colombian carrier Avianca Cargo, Etihad added freighter service from Milan to Bogotá and from Bogotá to Amsterdam. 

simplicity. We will be removing our fuel surcharge (FSC) and exceptional handling charge (EHC) in favour of a simpler pricing structure based on one freight rate.” The changes will be made in all markets except Hong Kong, South Korea and Japan, where local regulations apply, said the carrier, which declined to comment further. The end of the fuel surcharge will come as good news to many airline customers increasingly irritated by the failure of FSCs to come down.  April 2015

Technology

Rise in Wi-Fi offering by airlines

ccording to a new survey by airline industry data firm Routehappy, on-board Wi-Fi is now offered on about a quarter of flights worldwide. In the US, 66 percent of domestic flights offering some form of Wi-Fi access— three times the number just 18 months ago. Routehappy analyzed all international commercial flights on a typical mid-week travel day that “met their criteria for having at least some chance of Wi-Fi by subfleet scheduled to fly on a flight.” They found that while connectivity quality and speed are improving across the board, United has had the biggest Wi-Fi growth domestically over the past 18 months, but just over 20 percent of their flights over inflight Internet service. Routehappy CEO Robert Albert told CNN that Wi-Fi is one of the “most sought-after new amenities” fliers are looking for when booking

Oslo Airport tests security scanners

he Norwegian airport operator, Avinor, has announced it has started tests on four different security scanners at Oslo Airport. It aims to learn how they can enhance security and determine whether they can offer a screening method that is more comfortable for passengers. The trial period started with scanners installed in the security check furthest to the left in Oslo’s departures hall. The equipment to be tested is EUapproved and uses millimetre wave technology to identify objects. The technology is harmless and has no adverse health effects. The images

travel and airlines are continuing to experiment with different ways their guests can gain access to the web with set pricing structures or gratis. Nordic Airlines Icelandair and Norwegian lead the charge for international carriers with the greatest web connectivity, offering Wi-Fi on more than 80 percent of their flights. Routehappy does not provide specific numbers in their study. Europe’s airlines are racing to add Wi-Fi to their planes, eager to attract Internet-hungry customers in a cut-throat short-haul market and potentially add millions of dollars of revenue through entertainment, services and advertising. In Europe, adoption of a ground-to-air service such as that in the United States, is harder due to the number of countries in the region, while satellite-based services have been too costly for short flights. 

APC goes live at LPIA

taken of the passenger will not be saved, and the security officer will only see a schematic figure of the passenger during scanning. The image is age-and gender-neutral and resembles a gingerbread figure in appearance. Objects that are detected show up only as markings on the figure on the screen. The equipment that will be tested means that screeners can more effectively detect whether passengers are wearing objects that may be dangerous or illegal, but do not show up in the traditional metal detector used today. 

ynden Pindling International Airport’s Automated Passport Control (APC) system officially went live, allowing US-bound travelers to be processed up to four times faster. Officials expect the new technology – available in only one other airport in the Caribbean – to go a long way in slashing wait times, improving the airport’s efficiency and ultimately providing a more enjoyable experience for millions of visitors passing through the US pre-clearance facility at LPIA.

April 2015

Provided by Vancouver Airport Authority, BorderXpress Automated Passport Control is a self-service kiosk technology, which enables U.S. and Canadian passport holders and other eligible travelers to complete a portion of the U.S. Customs and Border Patrol (CBP) inspection process electronically, expediting the border clearance process. The demand for the destination continues to grow and with more than 3.2 million passengers traveling through LPIA on an annual basis. 

Technology

Alitalia selects Sabre technology for passenger reservations

ne of Europe’s leading carriers, Italy-based Alitalia, has selected Sabre technology to help drive its newly announced “Reinventing Alitalia” modernization program. Under the long-term agreement, Alitalia will migrate to

Sabre’s integrated, Software-asa-Service (SaaS) platform for all critical airline operations. Leveraging the leading capabilities of Sabre’s broad suite of retailing technology, Alitalia will work to

SITA technology transforms Hurghada airport

urghada International Airport—the gateway to Egypt’s Red Sea Riviera—is transforming the passenger experience at its new terminal with airport solutions from air transport IT specialist, SITA.The airport is using SITA’s passenger processing platform, baggage management and airport operations systems to enhance the passenger experience with new self-service options, the latest baggage management solutions and shorter queues. The new solutions are also helping the airport improve operational efficiency by integrating airport systems and providing a single control point for airport operations. SITA has implemented a full range of industry-leading airport solutions in Hurghada. SITA’s AirportCon-

become a customer-first carrier with a radically new and personalized guest experience for its passengers. The carrier also will use capabilities and insights provided by Sabre’s solutions to seek new revenue and cost saving opportunities in its drive toward its 2017 revitalization goal. In addition to passenger reservations, Alitalia will use Sabre’s departure control systems to manage airport check-in and boarding; marketing, planning, inventory and revenue management software;

operational solutions for crew and airport management; and integrated, real-time decision support tools to provide a single view of flight schedules, flight operations, codesharing and revenue management. Sabre’s technology is preferred by 225 airlines worldwide, including most of the world’s largest carriers. Sabre’s broad suite of flexible and scalable software solutions allows airlines to operate how they want to and adapt their business to changing needs and requirements. 

Smiths Detection installs new systems at DWC

nect Open passenger processing platform provides the airport with more than 135 common-use workstations and 10 common-use AirportConnect Kiosk self-service kiosks for check-in. With the new platform, all airlines using the airport can access their respective IT applications in real-time on shared equipment. They can also use any airport desk, gate or self-service kiosk for passenger check-in and boarding for maximum flexibility and convenience. SITA’s Airport Management Solution helps integrate and simplify operations management so the airport has a single control point and can take action as needed. 

miths Detection has successfully installed a range of advanced detection equipment for Emirates Group Security at its facility in Dubai World Central (DWC), a purpose-built economic support zone around the new AI Maktoum International Airport. The HI-SCAN 180180-2is scanners are connected via a dedicated compact server provided by Smiths Detection allowing central storage as required by Emirates and Dubai Airports. The cargo screening developed for this facility also includes centralized monitoring, where an opera-

tor dedicated to each machine works in a closed, isolated central control room analyzing the images with minimum distractions. This solution complements Emirates Group Security’s layered aviation security regime approach. Equipped with a dual view facility and a low conveyor belt, the HISCAN 100100T-2is allows operators to handle heavy objects and containers with ease and shortens inspection times. The HI-SCAN 100100T-2is also includes the new HIMAT Plus technology, which displays more accurate and better material distinction. April 2015