Monthly Newsletter issued by Dubai Civil Aviation Authority
Issue 44 January 2017
DCAA to co-host Aviation and Law – Dubai 2017
Inside DCAA DCAA signs MoU with District International
www.viadubaionline.com
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DAFZA signs multilateral 6 MoUs with DCAA and other entities DCAA signs cooperation 7 agreement with Al Falah University Canadian Consul 8 General visits DCAA office
UAE in Focus World’s largest VIP 12 Terminal at Dubai South dnata handles record passengers, baggage in 2016
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Emirates, Etihad Airways among the Top 10 safest in the world
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Four points to ponder
Alexandre de Juniac
28
Airlines 30
Mohammed Ahli
10
The next generation in the wings
Boeing forecasts 200,000 new aviation jobs 20
Opinions 28
Dr. Olumuyiwa Benard Aliu
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Tech investments for increased security
Poised for strong growth in 2017
Gift of climate consensus
22
Cargo & Logistics 32
36
Technology 36
Our Smart Services DCAA Smart App will allow the customers the below services: • • • • • • • • • • • • •
Issuance of Landing permissions Issuance of No Objection Certificate for Carriage of Restricted Articles Issuance of No Objection Certificate for Aerial Work Issuance of No Objection Certificate for Aircraft Warning Light Issuance of No Objection Certificate for Heliport Issuance of No Objection Certificate for Pyrotechnic Display Issuance of No Objection Certificate for Building Height (Below 300m) Issuance of No Objection Certificate for Building Height (Above 300m) Issuance of Approval for Heliports Certification Issuance of Approval for Crane Operation Issuance of Approval for GSM or other communication tower Issuance of Approval for Balloon Operations Issuance of No Objection Certificate for Sky Trackers / Space Cannon
Registration Requirements: • • • • • • •
Company Name Company Address Telephone Number Fax Number PO Box City Choose one secret questions
• • • • • • •
Username Password Email Address Name Mobile Number Emirates ID Number Category (Individual - Airline - Agency - Expert - Provider)
You can download the application
by searching in App Store and Play Store by typing DCAA or scan the QR code
For more information, please call technical support on: +971 56 6810685 January 2017 2 email: it.support@dcaa.gov.ae
www.dcaa.gov.ae
CONTENTS In 2007, the functions of the Department of Civil Aviation were restructured. Accordingly, the Dubai Civil Aviation Authority (DCAA) was established as a regulatory body, by a decree of H.H. Sheikh Mohammed Bin Rashid AlMaktoum, Ruler of Dubai, on proclamation of law No. 21 of 2007, as amended by law No. 19 of 2010, to undertake development of Air Transport Industry in the Emirate of Dubai and to oversee all aviation-related activities.
Inside DCAA 05 DCAA signs MoU with District International
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 Creative Manager Mohammed Al Jarouf
07 DCAA signs cooperation agreement
Editor Shveta Pathak
with Al Falah University
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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Nadd AlShiba PR and Event Management
DAFZA signs multilateral MoUs with DCAA and other entities
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Canadian Consul General visits DCAA office
Printed by Printwell Dubai
Our Vision Dubai Civil Aviation Authority is driven by the vision of Dubai to become the global Aviation Capital contributing to prosperity and enabling growth for Dubai.
Our Mission Dubai Civil Aviation Authority is committed to support the aviation sector in:
E-mail: dcaa@dcaa.gov.ae Website: www.dcaa.gov.ae Tel: (971) 4 216 2009 Fax: (971) 4 224 4502 P.O.BOX 49888 Dubai, United Arab Emirates
u Capturing the full value potential as a global passenger, tourism, trade, cargo and logistic hub u Providing the capacity, connectivity and leveraging existing assets to meet the aviation sector and economic growth plans of Dubai u Ensuring sustainable and responsible growth committed to safety, health, environment and security u Providing and creating customer-focused services to gain competitive advantage from innovation, knowledge and efficiency u Building and retaining capabilities, for the aviation sector, while offering career opportunities for Nationals u Ensuring a transparent, effective and commercially balanced regulatory framework that reflects the interests of the aviation industry, Dubai and the UAE u Providing efficient and cost-effective services to the aviation sector
http://www.facebook.com/DCAADubai
twitter.com/DcaaDubai
Januaryyoutube.com/user/dcaadubai 2017
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CONTENTS
World’s largest VIP Terminal at Dubai South 12
Gift of climate consensus
2016: The second safest year in aviation history 28
Dr. Olumuyiwa Benard Aliu
Four points to ponder 29
Alexandre de Juniac
25
Delta ends partnership with Alaska Airlines
Tech investments for increased security
30
Positive momentum in the making
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January 2017
Message
from the President
Eventful New Year
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et’s hope 2017 will be an eventful year for the UAE aviation industry. The outlook is promising as we have lined up a series of events that will further boost the aviation sector in Dubai to reach among the top in the world, as envisioned by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Exciting times are in the offing in the New Year, the most important being the Dubai Airshow in November, 2017. Dubai is continuing to grow and outpace traditional markets as it becomes an increasingly important global aerospace hub. The record-breaking Airshow is one of the largest and most successful air shows in the world, connecting aerospace professionals across all areas of the industry to facilitate successful global trade. Exhibitors and visitors attend the Dubai Airshow to take advantage of this growth and build their brand.
Ahmed bin Saeed Al Maktoum
The first phase of Al Maktoum International at Dubai World Central (DWC) is expected to be completed during 2017, which will increase the passenger handling capacity to 27 millionin first quarter 2018. Al Maktoum International is being designed to become an airport of the future. We are building a range of amenities and facilities that will increase capacity and significantly enrich the airport experience, making it an attractive proposition for airlines as well as passengers. Wish you all a successful and pleasant New Year.
Before that, in May 2017, we will have the Dubai Airport Show, the world’s leading B2B event for airport procurement, supplies, solutions and technology which has solid support from both the government and private sectors.
January 2017
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Message
from the Director General
Exciting 2017
W
e welcome 2017 with much hope and happiness as we are poised to witness more exciting growth in the aviation sector in the New Year. As His Highness Sheikh Ahmed bin Saeed Al Maktoum, Dubai Civil Aviation Authority President, and CEO of Emirates Group and Airlines said: “We are poised to significantly boost Dubai’s economy by creating a world-class facility capable of handling the growing number of passengers visiting and transiting our city.” We look forward to an eventful year. The Dubai Airshow, the Dubai Airport Show and many other exciting happenings that will catapult Dubai into the realm of one of the top aviation hubs in the world, as envisioned by our leader.
Providing the public with the safest and most secure air travel is our goal. Towards this noble purpose we are making all arrangements to provide all facilities to the airport users coming from all countries. Following on the heels of the General Civil Aviation Authority’s 2017-2021 Strategic Plan, we will improve services by involving all stakeholders, and enhancing international links and holding construc-
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Mohammed Abdulla Ahli
tive discussions, as well as develop the existing infrastructure. We also pledge to provide all support to business aviation in the country. The UAE is the second-largest buyer of mid- to-large private jets out of a total of 293 aircraft that were delivered to the Middle East between 2006 and 2015. The largest number of deliveries were to Turkey (77), followed by the UAE (63) and Saudi Arabia (58), while the UAE tops in taking delivery of the most number of large jets. We will also take our innovation initiatives to the next level, as we have seen tremendous success in our new measures initiated in 2016. Wish you a Happy and Blessed New Year.
Inside DCAA
DCAA to co-host Aviation and Law – Dubai 2017
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riven by the vision of H.H. Sheikh Mohammed bin Rashid al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, of making Dubai the global Aviation Capital, the DCAA is actively generating awareness through its support and participation in prominent national and international events focussed on aviation. In 2017, under the Patronage of H.H. Sheikh Ahmed Bin Saeed Al Maktoum, President Dubai Civil Aviation Authority, the Authority will co-host, Aviation and Law – Dubai 2017 conference, the first worldwide conference on the subject of Aviation, Security, and Law, along with UK-based World Organization of Arbitration and Mediation. His Excellency Mohammed Abdulla Ahli, Director General, Dubai Civil Aviation Authority, said: “Through
our support to The Aviation and Law-Dubai 2017 conference, we aim to bring leaders and experts from all over the world under one roof to discuss relevant in the aviation sector, raise awareness and come out with the best solutions and practices that will lead Dubai to become the global aviation capital as well as contribute to boosting aviation sector in the region. We are strongly committed to pursuing our mission to contribute to the development of aviation sector.” The Aviation and Law – Dubai 2017 conference, to be held in March, will be a worldwide conference on the subject and will bring ministers, leaders, developers and law makers of the aviation industry under one roof to discuss international concerns related to aviation, future development of aviation, security of airlines and airports, and law dispute resolution in the Aviation private sector.
CEO of District International, Sarmad Al Tikriti, the organisers of the conference, appreciated the DCAA and the local governmental entities for their support to the conference in its first edition. He said the strong support of the DCAA designated committee by H.E. Mohammed Ahli, Director General of DCAA, to this prominent international conference ensures the success of the event.
DCAA signs MoU with District International
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he Dubai Civil Aviation Authority (DCAA) has signed a memorandum of understanding (MoU) with District International, Event and Conference Management, for hosting the first Aviation & Law Conference in Dubai. The agreement was signed by Director General of DCAA HE Mohammed Abdulla Ahli. The MoU is to support such conferences specialized in aviation which also enhances the role of the UAE and Dubai in pioneering aviation.
The conference will bring together developers and specialists in the fields of aviation, security and law. The conference will have partici-
pation by government delegations from more than 20 countries with huge local and international media presence.
January 2017
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Inside DCAA
DAFZA signs multilateral MoUs with DCAA and other entities
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oUs in line with launch of the ‘Development of Governmental Services’ Innovation Ecosystem’ initiative at DAFZA’s ‘The Big Conversation’
Dubai Airport Free Zone Authority (DAFZA) has signed multilateral Memorandums of Understanding (MoUs) with Dubai Civil Aviation Authority (DCAA) and five other government entities in line with the launch of the ‘Development of Governmental Services’ Innovation Ecosystem’ initiative. The other entities include the Dubai Police, the Dubai Health Authority, the Dubai Chamber of Commerce and Industry, the Dubai Economic Department, Dubai Customs and the General Directorate of Residency and Foreigners Affairs in Dubai. The move is also in strategic collaboration with Dubai Smart Office. The initiative aims to create innovative solutions and enhance customer experiences in support of national efforts towards making Dubai the most business-friendly city and a preferred
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investment destination in the world in line with Dubai Plan 2021. The official inauguration ceremony of the ‘Development of Governmental Services’ Innovation Ecosystem’ saw the launching of DAFZA’s ‘The Big Conversation,’ a first-of-its-kind event aimed at overcoming obstacles and fostering process, service and product innovation across the government and freezone ecosystems to further enhance the experiences of foreign investors operating within the free zones in cooperation with government entities. His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAFZA, pointed out that the significance of the ‘Big Conversation’ lies in its role in laying strong foundations for making innovation the main driver behind Dubai and the UAE’s global economic leadership. He explained
that the unique initiative is inspired by the wise vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, who said that “Innovation is the secret behind the survival and enhancement of Governments and the main reason for the progress of their peoples and nations.” HE Mohammed Abdullah Ahli, Director General of Dubai Civil Aviation Authority, said: “Dubai Civil Aviation Authority seeks to fully cooperate with all strategic partners to achieve our common strategic objectives. Through the ‘The Big Conversation’ agreement, we seek full cooperation with the signing parties to boost foreign investment and sustain inflows and consequently make a positive impact on the GDP. This is what we are all looking for as entities that influence local economic growth.”
Inside DCAA
DCAA signs cooperation agreement with Al Falah University
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ubai Civil Aviation Authority (DCAA) has signed a cooperation agreement with Al Falah University (AFU) to support all areas of education and the exchange of experiences, information, conferences, scientific research and training workshops. The agreement was signed at the DCAA headquarters in the presence of HE Mohammed Abdullah Ahli, Director General of DCAA, and directors of departments and divisions. Abdul Rahim Al Mulla, Executive Director of Support and Corporate Communications, and Dr Sameer Al Barghouti, Vice President for Academic Affairs at Al Falah University, signed the agreement. Deans and faculties from AFU also attended.
The agreement focused on the fruitful scientific partnership for the transfer of expertise and exchange of knowledge between the two sides in addition to the seminars and scientific research that will help develop the level of education in the UAE.
Under the agreement, Al Falah University will offer 10 per cent discount on tuition fees for all employees of the DCAA, including relatives to first degree, to encourage the demand for education especially in the fields and disciplines that the labour market needs in the UAE. ď‚ƒ
January 2017
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Inside DCAA
Canadian Consul General visits DCAA office
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E Mohammed Abdulla Ahli, Director General of DCAA, received HE Emmanuel Kamarianakis, Consul General of Canada in Dubai, in his office as part of the DCAA’s policy of enhancing relationship and continuous cooperation locally, regionally and globally. He indicated that the visit considered a
good opportunity to exchange opinions which contribute in strengthening the cooperation. The Canadian Consul General expressed his gratitude and appreciation to HE Mohammed Abdulla Ahli on the cooperation, hospitality and giving the opportunity to dis-
cuss different aspects of cooperation between the two sides. This meeting comes within a series of continuous meetings which DCAA aims to have with different sectors for cooperation. At the conclusion of the meeting, the Director General presented a memento to the Canadian Consul General.
DCAA delegation in Bahamas for air transport meet A
delegation from the Dubai Civil Aviation Authority (DCAA) has participated in the Air Transport Conference (ICANN) held in the Bahamas. The delegation was headed by Saud Kinkzar, Executive Director of the air transport sector and international affairs. During the visit, the DCAA delegation held bilateral talks with many of the participating states in order to develop the air transport sector.
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Inside DCAA
DCAA organises workshops on performance assessment
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CAA organized an awareness session titled ‘How to set smart goals to assess individual performance’, which was attended by 90 employees.
There were five workshops. The first one was for executive directors and directors of departments, and the other four were for heads of departments, executives and other staff of the Authority, with training of one day for each group.
The course focused on the following topics:
The sessions were aimed at helping the participants to formulate smart goals, leading to control and evaluation of their individual performance for the benefit of realising the goals of their departments and divisions which will ultimately result in achieving the vision of the Authority
• The importance and the role of management’s assessment of smart objectives in the development of institutional efficiency;
• The importance and the role of management’s assessment of smart objectives in the development of employee performance;
• The importance and the role of management’s assessment of smart goals in discovering aspects of development needed in the labour regulations;
• Linking the results of performance plans for training and development, regulatory and institutional evaluation; and • Skills to deal with superiors in performance development. At the conclusion of the first workshop for executives and directors of departments HE Mohammed Abdullah Ahli, Director General of DCAA, distributed certificates to the participants in the presence of Dr. Hessa Abdullah Mohammed bin Suleiman, Chairman of the Board of Directors, Golden Eagle Management and Training Consulting.
January 2017
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Cover Story
Mohammed Abdulla Ahli, Director General, Dubai Civil Aviation Authority (DCAA)
Poised for strong growth in 2017 T he Dubai Civil Aviation Authority (DCAA), which is responsible in defining the general policy for civil aviation and also managing the aviation activities in the Emirate of Dubai, has been instrumental in fuelling the strong growth of the Dubai economy, contributing almost 30 per cent to the GDP and 19 per cent of employment opportunities. DCAA is poised for continuing the excellent track record of impressive growth in 2017 too.
In an exclusive interview with Via Dubai, His Excellency Mohammed Abdulla Ahli, Director General, DCAA, explained how 2016 was a year of major achievements and shared the 2017 outlook. Excerpts: How was the year 2016 for DCAA in terms of achievements? The year 2016 has been an important year for the civil aviation industry and Dubai economy as well. We could witness an overall growth here in Dubai in spite of slow growth elsewhere.In a way, Dubai could beat the global trend because of the wholehearted support and progressive approach of our visionary leader His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the direction and the continuous support of His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President Dubai Civil Aviation Authority, Chairman & Chief Executive - Emirates Airlines & Group, Chairman Dubai Airports.
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The aviation sector in particular witnessed an unprecedented growth. Dubai International remained the busiest in terms of number of international passengers. Then, our two international airports are gearing up to serve up to 146 million passengers by 2025 and there will be corresponding huge expansion in related fields in the aviation sector. The Dubai International airport, which overtook leading airports in the world, saw passenger traffic climbing to 83 million in 2016 and expects 89 million people using the facility this year. It was a year of innovation and excellence at the DCAA where we saw a host of major initiatives taken for making innovation a part of work culture within the DCAA and also among our stakeholders. Our ‘Be Innovative’ initiative has been well-received by one and all. The enthusiasm is encouraging us to take up more such initiatives in our
march for a ‘perfectly innovative’ environment in the aviation sector. All our employees have whole-heartedly subscribed to the novel thinking. The ‘Be Innovative’ culture has truly influenced our staff as evidenced by the ‘innovative’ quality in their services. We took innovation initiatives to the next level in line with the UAE’s National Innovation Strategy. The department did everything to inculcate the culture of innovation among one and all, from top echelons to the lowest staff, and even to outsiders and stakeholders, to earn the epithet of ‘The Most Innovative People in the world’. What were the other achievements in adopting technology? We have been continuously upgrading our systems, making the best use of the latest technologies, making procedures more effective and more accurate. We will add more activities to improve our operations. We have adopted ‘e-payment’ for collection of
Cover Story
revenue. It enables all our customers including the airlines, to submit their applications and make the payments online and saves their time. The Corporate Support Department, the procurements division, which is responsible for all procurements within the DCAA, has made 100 per cent of its procedures online including the payments. We have also converted tenders to e committee, wherein the entire process can be done online. Supplier registration is another area where we have gone 100 per cent online. How do you highlight DCAA’s technology initiatives? In addition to directly informing our clients and stakeholders, we actively participate in key events at national and international levels. During our participation in the Gitex Technology Week 2016, as part of the Dubai Government pavilion, we displayed the latest smart and innovative services in order to enhance the experience of our customers. Among the prominent showcasing was ‘Drone Hunter’. The aircraft was introduced to identify rogue drones operating too close to the city’s airports. In cooperation with the General Directorate of Police, we inaugurated the newly created electronic system to issue permits for transportation of dangerous goods from, to and through Dubai International and Al Maktoum International Airport. The new system serves the clients of airlines, licensed cargo companies in dealing with dangerous goods and the system is electronically linked between the departments of accidents investigation and aviation safety and
Dubai Police General Department of airport security. By linking the system with the Dubai Police Head Quarters, we ensure the importance of the strategic partnership in providing excellent services to achieve the best world practices. In April, we organised the 4th World Aviation Safety Summit which brought in the desired effect to highlight the challenges facing the global aviation industry and suggest remedial measures. We could bring together international decision makers in aviation safety, regulatory authorities, airport and airline operators and other stakeholders. What are your initiatives to ensure safety and security to passengers and assets? The unprecedented growth in passenger numbers and airlines necessitates the need for ensuring safety and security for all stakeholders, passengers, airlines and the general public. The DCAA is fully prepared to face this challenge by adopting advanced technology and deploying trained personnel for the job. We are well-equipped to assume this huge responsibility of ensuring safety by virtue of our early planning, far-sighted strategies and above all the ability to deploy the required financial resources and human capital. We made sure that the right and time-tested technology is deployed by world class companies and experts. At a time when the aviation industry continues to grow and become more complex, it is important that we reinforce an effective safety culture. For this, we are adopting global standards involving our human resources, financial resources and the best technology. Going forward, we will deploy
state-of-the-art technology, trained personnel and proven world class processes to see that security is not compromised. How do you foresee 2017 performance and what are your expectations and resolutions? First of all, we welcome 2017 with much hope and happiness as we are poised to continue the winning race in the aviation sector this year also. Dubai international airport is fast approaching the target of 100 million passengers in 2020. More than these enviable numbers, Dubai will be regarded by the world as one of the most modern and safest airports. This growth presents before us the challenge to ensure that we offer the best services while staying committed to safety of the skies. In order to reach this goal and go beyond, we are adopting innovation as our slogan for the benefit of all our passengers, customers and stakeholders at large. Our guiding inspirations are the visions of our leaders. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has set very high standard. His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President Dubai Civil Aviation Authority, Chairman & Chief Executive - Emirates Airlines & Group, Chairman Dubai Airports, said: “We are poised to significantly boost Dubai’s economy by creating a world-class facility capable of handling the growing number of passengers visiting and transiting our city.” We look forward to many new initiatives in 2017 amid the robust growth that Dubai’s aviation sector is witnessing.
January 2017
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UAE in Focus
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January 2017
UAE in Focus
World’s largest VIP Terminal at Dubai South
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he launch of the VIP Terminal at Dubai South’s Aviation District is yet another significant step towards realising Dubai’s vision of becoming the aviation capital of the world: His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President Dubai Civil Aviation Authority, Chairman & Chief Executive - Emirates Airlines & Group, Chairman Dubai Airports. The inauguration of the VIP Terminal at Dubai South marked an important chapter in the aviation history of Dubai. The world’s largest VIP terminal was officially opened at Al Maktoum International at Dubai South on 19 December, 2016 by His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President Dubai Civil Aviation Authority, Chairman & Chief Executive- Emirates Airlines & Group, Chairman Dubai Airports. The 5,600-square metre standalone facility is intended to exclusively cater to private, business and heads of state and government VIP travellers. The largest purpose-built facility of its kind in the world, the terminal is set to create a niche in business aviation sector, offering VIP customers a seamless travel experience, coupled with time and cost efficiencies within a thriving aviation ecosystem. Speaking on the occasion, His Highness Sheikh Ahmed said: “The launch of the VIP Terminal at Dubai South’s Aviation District is yet another significant step towards realising Dubai’s vision of becoming the aviation capital of the world.
With the opening of the world’s largest facility for private aviation, Dubai South has raised the bar on luxury travel, redefining the passenger experience. A significant milestone for Dubai South and for aviation industry as a whole, the opening of the VIP Terminal will cement our position in the world of private aviation, bringing us a step closer to becoming the region’s premier aerospace hub. The world-class facility is complemented by first-class services and experiences, all adding to an exemplary travel experience.” It is the largest of its kind in the world, hosting two Fixed Base Operators (FBOs), JetEx and Falcon Aviation, according to Khalifa Al Zaffin, Chairman of Dubai Aviation City. The VIP Terminal is minutes away from Al Maktoum International, which is shaping up to become the largest airport in the making. The terminal is housed in a bespoke architectural structure reflecting the pioneering spirit and innovation-led heritage of Dubai’s aviation sector. Set inside an opulent and aesthetically rich interior, the terminal features
luxurious duty free retail space. The VIP Terminal currently hosts three operators including Falcon Aviation, Jetex and Jet Aviation. As the world’s first master-planned airport city, Dubai South is concentrating on building state-of-the-art infrastructure around the Al Maktoum International, thus creating a thriving aviation ecosystem. The Aviation District provides a specialised business environment that meets all the needs of the aviation industry. The first flight from the VIP terminal took place in April 2016, carrying 13 passengers on an Embraer Legacy aircraft that was headed to the Maldives. Since then, the terminal has witnessed 1,000 flight movements with the number anticipated to grow to 4,000 movements in 2017. The terminal is part of Al Maktoum International, the planned largest airport in the world, which will involve the construction of five runways and increase in capacity to handle 160 million passengers a year once complete. The facility is located in the Aviation District, which will become the new permanent home of the Dubai Airshow.
January 2017
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UAE in Focus
dnata handles record passengers, baggage in 2016
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arried 91.3 million passengers and 97.8 million bags in 2016; The most travelled sector from Dubai was Doha with over 2.99 million passengers; Busiest day December 23, 2016 witnessed handling of 281,388 passengers.
Dubai-based dnata, the Emirates Group’s aviation and travel services subsidiary, carried more than an unprecedented 91.3 million passengers and 97.8 million bags as its UAE operations continued to expand during 2016. The data represents more than a 16 per cent increase in the number of passengers using the airports, and 4 per cent increase in the number of flights compared to 2015. The most travelled sector from Dubai was Doha with over 2.99 million passengers making the journey from the hub, and 3.2 million bags meeting travellers at the destination. “It’s been a challenging year but our team has demonstrated unwavering commitment to delivering the highest standards to our customers,” said Steve Allen, DSVP dnata Airport Operations. “We have worked hard to stay agile, efficient and innovative, while never compromising our safety and operational excellence. 2017 will require us to be even more tactile and responsive to the needs of the market, and stay on top of our game to ensure a robust year ahead.” On its busiest day of 2016, December 23, dnata was supported by 18,529 staff who handled 281,388 passengers and 329, 341 bags, and one aircraft movement every 73 seconds. dnata closed the year with 419,133 tonnes of cargo at DXB which is a
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monthly average of 46,570 tonnes and an eight per cent increase from the previous year. Al Maktoum International Airport at Dubai World Central (DWC) also saw a spike in passenger numbers with Fly Dubai’s growing operations at the airport in 2016. The airport has also developed into a regional cargo hub with a capacity to grow to 16 million tonnes per year. dnata now handles more than 117.000 tonnes of cargo at DWC and this number is expected to grow. dnata’s Special Handling team at DXB of 980 employees have assisted an average of 4, 000 special needs passengers every day. Over the year, dnata invested millions into new ground support equipment (GSE) to ensure flights landing at the two airports are serviced safely and efficiently.
Currently dnata deploys 10,000 pieces of GSE and vehicles of which 2, 000 are motorised. dnata has introduced environment friendly electric tow tractors, conveyor belts and pushback tractors, GSE with engines meeting Euro III emission standards and testing hybrid and CNG powered vehicles; we have a vision to convert motorised equipment wherever feasible from diesel powered to electric, hybrid or CNG-powered. dnata has worked closely with Dubai Airports and other stakeholders on the opening of Concourse D. The new concourse has increased the airport’s capacity to an additional 16 million passengers. dnata also operates a new marhaba lounge at Concourse D. In addition to Dubai, dnata has ground handling operations in 74 other airports around the world, serving more than 250 airlines, and is the world’s largest ground handler of the Airbus A380 aircraft.
UAE in Focus
Emirates Aviation in tie-up with Airways Aviation for pilot training
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mirates Aviation Services has formed a partnership with training specialist Airways Aviation to offer a direct pathway to a Private Pilot License (PPL) in the UAE through to a Multi-Crew Pilot Licence (MPL) in Europe or Australia.
This new partnership allows aspiring pilots in Dubai and the GCC countries the chance to study for a PPL in their region and, upon completion and being awarded a contract, move onto a MPL at one of Airways Aviation’s EASA or CASA training academies. Emirates Aviation Services will deliver the Airways Aviation core MPL training programme in Dubai, enabling the company to supply exceptional airline pilots for an industry where pilots are in high demand, said a press statement. The partnership with Emirates Aviation Services also provides Airways Aviation with the opportunity to develop new airline training programmes and as well as developing new relationships with airlines in the region. “The UAE is an important region for Airways Aviation. Middle
Eastern airlines are highly desired by prospective pilots, so it makes complete sense for us to partner with Emirates Aviation Services, an established training provider in the UAE. We are now working together to provide high-quality airline pilot training for local students and a direct pathway onto the flight line,” said Ian Cooper, CEO, Airways Aviation. Abdullah Al Ansari, Director, Emir-
ates Aviation Services, said: “This partnership with Airways Aviation will enable us to achieve our vision of being a leading training provider of airline pilots. Utilising the company’s exceptional quality of training programmes and senior teaching staff, we’re confident that we will produce some of the best pilots in the UAE.”
January 2017
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UAE in Focus
Emirates, Etihad Airways among the Top 10 safest in the world
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mirates and Etihad Airways have been listed among the Top 10 safest airlines in the world, according to the Airline Safety Ranking study for 2017 by the Jet Airliner Crash Data Evaluation Centre (Jacdec).
The study found that airlines based in Asia and the Middle East continued to dominate the list of carriers with the best safety track record in 2016. Emirates ranked seventh while Etihad Airways took the eighth slot on the list of the world’s safest airlines. Cathay Pacific, based in Hong Kong, tops the list as the carrier with the best safety record, followed by Air New Zealand in second position. Hainan Airlines comes in third, followed by Qatar Airways, KLM from the Netherlands, Eva Air from Taiwan, followed by Emirates and Etihad. Qantas from Australia and Japan Airlines round up the Top 10.
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Earlier, another similar annual survey of the world’s biggest airlines by safety and product rating website, AirlineRatings.com, placed Emirates in the seventh and Etihad Airways in the eighth position in the list of the safest airlines in the world. Qantas was in the top spot followed by Air New Zealand, Alaska Airlines,
All Nippon Airlines and American Airlines. In selecting Qantas as the world’s safest airline, AirlineRatings.com editors noted that over its 95-year history, the world’s oldest continuously operating airline has amassed an extraordinary record of firsts in operations and safety and is now accepted as the industry’s most experienced carrier.
UAE in Focus
Dubai Duty Free clocks $1.85 billion sales
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ubai Duty Free (DDF) has announced annual sales of $1.85bn in 2016. DDF opened 7,000sq m of retail in Concourse D on February 24 as part of the phased opening of the newest concourse in Dubai International airport.
This brought the retail area under its operation to 36,000sq m in both Dubai’s airports. Perfumes remain the highest selling category with annual sales topping $306.85 million, which represents 16.55 per cent of total annual sales. Beverages followed with sales of $295.4 million while cigarettes and tobacco was in third place with sales of $160.7 million. Cosmetics came in fourth place with sales amounting to $148.8 million followed by Confectionery with $143.75 million . Meanwhile, sales in departures outlets across the concourses accounted for 86.66 per cent of total annual sales at $1.6bn.
During the year, DDF also recorded 27.119 million sales transactions, an average of 74,097 sales transactions per day across Dubai International and Al Maktoum International airports. Its performance won the company 28 awards during the course of the year. Reflecting on the year at DDF, Executive Vice-Chairman and CEO Colm McLoughlin said: “Overall, it has been a good year for the operation and I would like to thank His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free, and Chairman and Chief Executive of Emirates Airline and Group, for his ongoing support.
I also join His Highness in thanking our great team of staff, our suppliers and of course our customers, for their contribution to our growth and success.” Looking ahead to 2017, McLoughlin added: “There is a lot to look forward to [in 2017], including the improvement of our retail offer in Dubai International airport’s Concourse C and in Al Maktoum International airport’s passenger terminal building. “In Concourse C, we have just opened our outlets in the area that links Concourse C to Concourse B, and we will fully renovate the retail areas in the rest of departures and apron levels of Concourse C over the course of the year.”
January 2017
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UAE in Focus
Etihad and Lufthansa announce code-share deal
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nder the deal, Lufthansa will place its LH code on Etihad’s flights between Abu Dhabi and Frankfurt and Munich.
Lufthansa has struck its first cooperation deal with a Gulf airline, agreeing to sell tickets jointly with Etihad Airways on some routes and leaving the door open to further agreements in other areas. Germany’s biggest airline has been a fierce critic of Gulf carriers on the grounds their state backing gives them an unfair competitive advantage and it has in the past objected to code-sharing by German rival Air Berlin and Etihad. Other airlines already work with fast-growing Middle Eastern carriers, however, and the code-sharing deal signed recently comes on top of
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January 2017
Lufthansa’s agreement to lease planes and crew from struggling Air Berlin, which is 29-per cent owned by Etihad. Australia’s Qantas Airways has a similar code-sharing agreement with Emirates while British Airways has a revenue-sharing deal with Qatar Airways, which owns 20 per cent of BA’s parent IAG. Independent industry consultant John Strickland said Lufthansa’s deal with Etihad was a positive move. “Other major airline groups like IAG and Qantas have long seen the value of this,” he said.
Under the deal, Lufthansa will place its LH code on Etihad’s flights between Abu Dhabi and Frankfurt and Munich. Lufthansa had previously scrapped its Frankfurt-Abu Dhabi flights saying they were not profitable due to overcapacity created by the code-share deal between Etihad and Air Berlin. Etihad will in turn put its EY code on Lufthansa’s long-haul services between Frankfurt and Rio de Janeiro and Bogota. The two will also consider extending their cooperation in other areas, Lufthansa CEO Carsten Spohr said in a statement.
UAE in Focus
Boeing, Mubadala aim to boost UAE aerospace industry A ircraft manufacturer Boeing announced that the Boeing-Mubadala Co-op internship programme is on course to provide aerospace engineering expertise to bolster the UAE’s aviation capabilities. The programme was launched by Boeing and Mubadala in 2015 to support the development of a sustainable aerospace industry in the UAE. Six students have graduated from the programme to date, and 10 Emirati students will join in August 2017. The 18-week programme includes professional development activities designed to build the students’ network and broaden their exposure to Boeing and aerospace engineering.
Flydubai certifies its 100th batch of cabin crew
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lydubai has announced the successful graduation of its 100th batch of certified Cabin Crew mem-
bers from the Flydubai Training Centre. The batch of 27 candidates will join flydubai’s community of
1,650 Cabin Crew members who represent more than 100 nationalities. The graduates of the training programme received their certificates from Ghaith Al Ghaith, Chief Executive Officer for Flydubai, Jilly Sims, senior vice president, In-Flight Services for flydubai and Carolyn O’Brien, Flydubai’s Cabin Crew Training Manager. Ghaith Al Ghaith said: “Over the past eight years, flydubai has trained thousands of cabin crew who have applied their learnings to make flying a pleasant experience for the millions of passengers who travel with us each year. “I would like to congratulate each graduate on their achievement and the highly skilled and professional trainers who have helped us reach this important milestone.”
January 2017
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Special Report
Tech investments for increased security
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nvestment in passenger processing technology ranks the number one priority for airports as airports give higher priority on IT investments for passenger and airport security.
Airports are placing a higher priority on IT investments for passenger and airport security with 50 per cent rating it a high priority, up from 37 per cent in 2015, according to the 2016 Airport IT Trends Survey, jointly sponsored by SITA and Air-
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ports Council International (ACI) in association with Airline Business. For many airports, the investment focus has shifted to security in the wake of heightened regional tensions, some of which directly target air travel.
While investment in passenger processing technology still ranks the number one priority for airports, it has dropped from 73 per cent in 2015 to 59 per cent this year as security rises in priority.
Special Report
The survey shows that self-service and mobile dominate the airport landscape. For the first time SITA’s research indicates the majority of airports worldwide provide self-service check-in for both passengers and bags. Looking ahead, self-service will continue to dominate with two-thirds of airports planning major IT investments in this area. The growing influence of mobile is also evident with nearly every airport worldwide (90 per cent) undertaking either a major program or a trial project related to mobile services and 74 per cent trialing or piloting context-aware and location-based technology in the next five years. Matthys Serfontein, SITA Vice President, Airport Solutions, said: “The technology trends at airports reflect the changing world. Investments to support passenger and airport security are up while the increasing demands of the connected traveller for self-service and mobile services are also being met.
“We see a shift where airports are also looking to technology to generate non-aeronautical revenue. By 2019, 84 per cent hope to make money by enabling the purchase of airport services through their mobile app. And there is also a clear trend to provide hybrid public Wi-Fi services that combine the convenience of limited free Wi-Fi with commercial offerings. Over the next three years the proportion of airports planning to offer unrestricted free Wi-Fi will drop from 74 per cent to 54 per cent. This change is mainly driven by airports in North America and the Middle East.” Using kiosks for services beyond check-in and bag drop to generate revenue will also appear at the world’s airports. Today a very small number of airports have kiosks that allow passengers to download digital content, such as the latest films, before they board the flight but by 2019, 30 per cent plan to do so. By that time 42 per cent also expect to have kiosks that enable sales transactions.
SITA’s research takes a look further into the airport’s digital transformation exploring areas such as wearables, biometrics, robotics and context-aware services and how airports plan to use these innovative technologies over the next five to ten years. In the light of the increased focus on security it is not surprising that interest in biometric technology, which supports fast and secure passenger processing, is high. More than one third of airports will invest in single biometric travel token projects in the next five years jumping to the majority (52 per cent) within the decade. These findings are from the 13th annual SITA Airport IT Trends and reflect the views of more than 225 airports who together manage 36 per cent of the global traffic or 2.3 billion passengers. Almost 50 per cent of survey respondents came from airports within the Top 100 in terms of revenue.
January 2017
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Middle East News
Boeing forecasts 200,000 new aviation jobs
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irline industry in the Middle East to require 92,000 additional cabin crew, 58,000 pilots to support the growing demand for new aircraft deliveries.
Airlines in the UAE and the rest of the Middle East will require an additional 200,000 personnel to support the growing demand for new aircraft deliveries over the next two decades, according to Boeing. The US plane maker announced in its report that the region’s commercial aviation industry will need about 92,000 cabin crew, 58,000 pilots and 66,000 technicians alone. The recruitment of aviation personnel will be one of the largest in the world. “We are continuing to see significant need for new pilots and maintenance technicians. This
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translates into exciting career opportunities for those interested in the aerospace industry,” said Sherry Carbary, Vice President, Boeing Flight Services.
“The demand for new pilots is primarily driven by new airplane deliveries and fleet mix, while new technician demand is primarily driven by fleet growth.”
Across the globe, the total number of new aviation personnel required between 2016 and 2035 will touch 2.1 million, according to the 20162035 Boeing Pilot and Technician Outlook.
Overall, the Asia-Pacific region will lead the recruitment activity, with more than 500,000 new pilots and technicians. China alone is expected to require 111,000 pilots and 119,000 technicians; Southeast Asia 62,000 pilots and 67,000 technicians; South Asia 41,000 pilots and 39,000 technicians and Oceanic region 13,000 pilots and 17,000 technicians.
The aircraft manufacturer said its forecast is tied to projections for new airplane deliveries around the globe.
Middle East News
Qatar Airways finalises LATAM investment Q atar Airways has completed the acquisition of 10 per cent of South America’s largest airline group, LATAM.
Qatar’s investment in its One World alliance partner came through an approximately $600 million purchase of newly subscribed LATAM shares. Both airlines are members of the Oneworld Global Alliance. “The entrance of Qatar Airways as a shareholder of LATAM represents a unique opportunity to develop a long-term relationship and explore new opportunities for connectivity with Asia and the Middle East,” LATAM said in a statement. Qatar flies to 10 US cities from its hub in Doha. LATAM flies to Miami, Los
Angeles, Washington Dulles, Orlando and New York. Its primary hubs are in Sao Paulo; Bogota, Colombia; and Santiago, Chile.
operate flights between North America and six South American countries: Brazil, Chile, Columbia, Paraguay, Peru and Uruguay.
In addition, LATAM and American have an application for antitrust immunity pending with regulatory agencies in several countries throughout the Americas. The carriers are seeking approval to jointly plan, market and
Along with its new investment in LATAM, Qatar is a 20 per cent owner of IAG, the airline group that owns British Airways, Spanish carriers Iberia and Vueling, and Ireland’s Aer Lingus.
Oman Air introduces baggage piece concept
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man Air, Oman’s national carrier, has introduced a new baggage piece concept which will help the airline to standardise and in many cases reduce the charges currently in place for additional luggage. All passengers travelling on Oman Air will receive a free allowance of
one 30 kg piece of checked-in baggage with linear dimensions 158 cm. Passengers travelling in Business and First Class will be permitted one extra bag with a maximum weight 20 kg. This will increase to 30 kg for passengers with valid Gold and Silver Sindbad cards. Passengers travelling in Economy with valid Gold and Silver Sindbad
cards will be permitted one extra bag of a maximum weight 20 kg. Oman Air’s current pricing model for additional baggage will be replaced with an additional piece concept whereby passengers will be able to purchase additional pieces of luggage with a maximum weight of 20 kg per piece to be checked in, the airline said. Oman Air has also introduced pricing for Specialist luggage which includes items such as pets, sporting equipment and anything above the stated dimensions of 158 cm. The measures represents Oman Air efforts to make the carriage of additional baggage more affordable for passengers, the airline said.
January 2017
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Middle East News
Kuwait Airways to take delivery of 10 B777-300(ER)s
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uwait Airways expects to take delivery of its full fleet of ten B777-300(ER)s by the end of the fourth quarter of 2017.
Kuwait Airways has taken delivery of its first B777-300((ER) following the arrival of 9K-AOC in Kuwait direct from Everett on December 9. Powered by General Electric GE90115B engines, the widebody twinjet features 334 seats with eight in First, thirty-six in Business, and 290 in Economy. Airline Chairwoman and CEO, Rasha A. Al Roumi, said during a welcoming ceremony that the aircraft will initially
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January 2017
be deployed on crew familiarisation flights around the Middle East before being deployed on London Heathrow services, likely in the new year. However, the first commercial service was to Dubai. “While the Boeing 777-300ER is primarily geared to long-haul destinations, Dubai is our highest frequency destinations (21 times per week); so, we felt that for the first commercial flights we would showcase the new product to passengers who are some
of our most loyal and frequent flyers,” she said. Kuwait Airways’ widebody fleet currently consists of five A330-200s, four A340-300s, one B747-400(M), and two B777-200(ER)s. The delivery of the Boeing 777300ER, bearing the airline’s new look livery, represents another positive step forward for the airline, in support of its previously announced five-year transformation strategy, said a statement.
International News
2016: The second safest year in aviation history
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here have been a relatively small number of air accidents in 2016, a testament to the stringent safety standards now in place around the world.
Year 2016 has been one of the safest years in aviation history. There have been a relatively small number of air accidents in 2016, a testament to the stringent safety standards now in place around the world. According to the Aviation Safety Network (ASN), which keeps a database of all air travel incidents, 2016 was the second safest year on record. There were 19 fatal accidents, resulting in 325 deaths -- down from 560 in 2015. Given that the year saw around 3.5 billion air passengers flown, that’s just one death per 10,769,230 travellers. Two of the 19 accidents were on flights operated by airlines on the EU “black list”. Only one year saw fewer deaths - 2013, with 265. But with 3.048 billion boarding a plane that year, according to the World Bank’s data, this amounts to a very similar number of deaths per passenger: one per 11,501,886.
When one discounts hijackings and sabotage, 2015 was actually the safest year on record. The crashes of a Germanwings A320 in March 2015, deliberately caused by co-pilot Andreas Lubitz, and a Metrojet A321 in October, due to a suspected bomb, accounted for the majority of the year’s fatalities. The year also saw the fewest number of fatal crashes involving passenger aircraft - just seven. There have been 11 in 2016. The general trend, however, that air travel has never been safer is easy to see. “Since 1997 the average number of airliner accidents has shown a steady and persistent decline... thanks to the continuing efforts of international aviation organisations such as ICAO, IATA, Flight Safety Foundation and the aviation industry,” said ASN President Harro Ranter. But what of the deadliest year in aviation history? For that, one must go back to 1972, which saw a re-
markable 2,370 deaths and 72 fatal accidents. There were 11 crashes that saw at least 100 perish, including four Aeroflot flights, and others involving Iberia, Sterling Airways, Alitalia, British European Airways, Interflug, Spantax and Eastern Air Lines. Fearful fliers should be grateful the Seventies are over. The following year, 1973, was the second deadliest on record, with 69 fatal crashes and 2,028 deaths. The carriers involved in the biggest disasters that year included Royal Jordanian, Libya Arab Airlines, Invicta International Airlines, Varig and Pan Am. And, of course, Aeroflot, which had a staggering 17 crashes that year. And 1974 was the fourth deadliest year, with 1,989 fatalities from 68 crashes (eight involving Aeroflot). It should be noted that safety standards have improved drastically at the Russian airline since then - it hasn’t been involved in a fatal accident since 1996.
January 2017
25
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January 2017
siemens.com/logistics
International News
Cambodia, Indonesia in direct flight pact
Boeing delivers 500th 787 Dreamliner
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ambodia and Indonesia have signed a memorandum of understanding (MoU) concerning direct flights, according to an official from the State Secretariat of Civil Aviation (SSCA). A spokesman said the Cambodian government has signed the MoU to pave the way for direct flights from Indonesia to Cambodia, but market factors were the main constraint to making the flights a reality. Indonesian airline companies were conducting market research on whether to launch the flights. “The main problem for Indonesian airline companies is the market, but there are still choices for them as they can either conduct a direct flight or codeshare with other airlines to save on the cost of a flight to Cambodia,” he said. The official said Indonesian airlines were reluctant to have direct flights to Cambodia because there are less Indonesian tourists visiting Cambodia compared with Malaysia, Singapore, Thailand and Europe. “Cambodia is not a main destination [for Indonesian tourists], so it is hard to gain profit in this market,” he said. Ho Vandy, the Secretary-General of Cambodia’s National Tourism Alliance, said luring Indonesian tourists to Cambodia was difficult because they are always asking about new tourism sites and products Cambodia has to offer. He added that Indonesia has a large population and direct flights between the two countries would draw more Indonesians to Cambodia.
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oeing has delivered the 500th 787 Dreamliner, a 787-8 to Avianca, marking another milestone in the program’s history. “Achieving 500 deliveries – the fastest to 500 for twin aisles – is a great accomplishment, made possible by the hard work and dedication of our employees and global suppliers,” said Mark Jenks, Vice President and General Manager, 787 Program,
Boeing Commercial Airplanes. Since entering service in 2011, the 787 Dreamliner fleet has grown to include 48 operators, who have collectively flown 696,000 revenue flights, carrying 133 million passengers over 1.7 billion revenue miles. The 787 family is flying more than 530 routes, with customers opening more than 120 new nonstop routes around the world.
China cautiously embraces open skies
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hina has agreed to liberalise passenger flights and remove capacity restrictions with Australia, its largest outbound long haul market after the United States. This is a relief to Chinese airlines, which face bilateral constraints in North America and Europe. The result is already evident as Chinese airlines deploy more capacity and larger aircraft to Australia. In North American and European markets the local governments hold back on traffic
right expansion (let alone open skies). But for Australia it was the Australian government, which signalled some years ago that it wanted to liberalise once China was ready – a time that has now come. Australia’s view was progressive and detached from bygone days of national carrier interest; Chinese airlines hold 90 per cent of the market to Australia. Elsewhere many governments still hold back on Chinese traffic right expansion so their local airlines can continue to grow.
January 2017
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Opinion
Gift of climate consensus needed to be brought on board with its approach, including a wide range of non-governmental organizations. As a result of the clear motivation on behalf of these disparate parties to take meaningful climate action, an effective solution was arrived at. Dr. Olumuyiwa Benard Aliu President, International Civil Aviation Organization
n the face of carbon emission and climate change challenges, one gift which we can all be grateful is the very clear testament to realistic climate progress recently agreed to by the many diverse players in the international air transport sector.
The air transport sector is currently responsible for roughly 1.3 per cent of annual man-made CO2 emissions. While that percentage may seem small, governments, airlines and others clearly recognize that it cannot double in lockstep with the number of flights our network manages.
In September, no fewer than 191 governments came together at the Montreal headquarters of the International Civil Aviation Organization (ICAO) to iron out the final points of a new CO2 emissions solution for international flights.
The new CORSIA solution will now help to complement the wide ranging efforts on emissions reductions that the aviation sector is already pursuing, and that have helped modern aircraft become 80 per cent more fuel efficient than the first commercial jets.
The basic purpose of this global measure is to help aviation mitigate its CO2 emissions that are not already being reduced through new technologies, streamlined operations and improved infrastructure.
It’s my hope that aviation’s gift of climate consensus will become a helpful example for other industries in the years ahead, and lead to further and concrete progress on reining in our collective emissions.
I
Considered an impossible goal by many, especially given the wide-ranging variance in the capabilities and ambitions of the countries that needed to find common ground on it, the Carbon Offset and Reduction Scheme for International Aviation (CORSIA), presented numerous diplomatic challenges. The ultimate agreement was further complicated by the fact that private sector organizations representing airlines, airports and many other air transport interests
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The CORSIA approach is both flexible and pragmatic. It is also a world first for any major industry sector and demonstrates that sufficient leadership and political will does exist today at the national and global levels to safeguard our environment.
January January 2017 2017
Opinion
Four points to ponder
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et me share some thoughts on what I see as the Middle East and North Afria (MENA) regions’ four top issues. The airport infrastructure in MENA demonstrates the foresight of governments wanting to capture aviation’s economic and social benefits. To keep this competitive advantage, continuous consultation is needed so that capital expenditure aligns industry growth, required service levels and acceptable costs. I will also sound a note of caution on infrastructure privatization. Saudi Arabia has announced privatization plans for 27 airports. Despite many privatizations around the world we have not seen any examples of airport privatization that have truly met expectations. Whatever be the ownership structure, airlines need airports with sufficient capacity and efficient and technically excellent operations. Even more urgent is the need to modernize air traffic management in the Gulf. A recent study calculates average delays in the Gulf at 29 minutes with the potential to double by 2025. More expensive technology is not the solution. Regional cooperation is. There has been an unprecedented rise in taxes and charges across the region — about $700 million in extra costs over 2015. The majority of that is from passenger facility charges. A low cost structure is a key component of the region’s success. Another trend that we must reverse is the proliferation of disparate consumer protection regulations. Regulators in Saudi Arabia, Oman, Qatar, Jordan and the Arab Civil Aviation Commission are in various stages of activity in this regard.
Alexandre de Juniac Director General and CEO, IATA
The fourth item, security, may well be the most challenging. It is a global issue. There are risks and challenges — insider threats, landside exposure at airports, overflight of conflict zones, and cyber security. Efficient airport checkpoints are important. Our need for cost-efficient infrastructure to meet demand, for reasonable taxation, for the implementation of global standards and for security is in no way selfish. Yes, it will help our business. But the bigger picture is the contribution that safe, secure, efficient and sustainable air transport makes to the welfare of nations. The business of freedom makes people’s lives better. Nothing should stand in the way of its success!
Edited excerpts from a speech at the AGM of Arab Air Carriers’ Organisation in Morocco.
January 2017
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Airlines
Alaska becomes the fifth-largest US airline. Delta is the country’s secondlargest carrier by traffic, after American Airlines.
Delta ends partnership with Alaska Airlines
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elta Air Lines will end its partnership with Alaska Airlines in May 2017. The two airlines for years had kept codesharing and frequent-flyer agreements that let passengers earn miles while flying on the other carrier.
But the companies have grown increasingly more competitive in recent years as Delta expands its presence in the northwestern United States. Atlanta-based Delta is the dominant carrier at Minneapolis-St. Paul International Airport. The move comes just five days after Alaska closed on its acquisition of Virgin America, making Alaska the fifth-largest US airline. Delta is the country’s second-largest carrier by traffic, after American Airlines.
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January 2017
Alaska Airlines touted the Virgin deal, saying it “brings together two of the country’s favourite airlines into a unified force that will provide an attractive alternative to the ‘Big 4’ airlines that currently control 84 per cent of the domestic market.” Alaska noted the Virgin deal “opens up growth opportunities in important East Coast business markets by increasing Alaska Air Group’s access to high-demand airports like Ronald Reagan Washington National Airport and the three primary New York
City-area airports: John F. Kennedy International Airport, LaGuardia Airport and Newark Liberty International Airport.” Delta said it will continue to invest in the Pacific Northwest market. “The decision is a positive milestone for both airlines,” Delta said, “as Alaska focuses on its merger integration with Virgin America and Delta focuses on creating more customer choice at its Seattle-Tacoma International Airport hub, where it now operates more than 150 peak-day flights to more than 40 destinations.”
Airlines
Hong Kong Airlines to grow in Australia H aving built a regional Asian network anchored around mainland China as a source market, HNA Group’s Hong Kong Airlines is leveraging its hub capability from short and medium haul connections to long haul transfers. Hong Kong Airlines resumed long haul flying in early 2016 with a service to Cairns and the Gold Coast. Auckland has been added from November 2016 and Hong Kong Airlines should be able to break up the Air New Zealand-Cathay Pacific joint venture on the route. Hong Kong Airlines is restricted from serving major Australian cities due to bilateral limits (Australia and Hong Kong have not been able to agree on increased capacity levels). Hong Kong Airlines’ owner HNA has bought into Virgin Australia, which
plans to serve the key HNA hubs of Beijing and Hong Kong in 2017, providing access from major Australian cities. Virgin could also help Hong Kong Airlines make viable service to smaller Australian cities. Hong Kong Airlines is receiving a lift in Australia and New Zealand book-
ings, attributed to Asian consumers shifting away from travel in Europe, which has repeatedly been impacted by terrorist acts. Hong Kong Airlines believes that passengers are “viewing Australia and New Zealand together as more of a safe-haven status destination”.
Delta Air Lines cancels order for 18 Boeing 787s
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elta Air Lines has officially cancelled a deal for 18 Boeing widebody jets. The number two US carrier by traffic inherited a 2005 deal for 18 Boeing 787 jets when it bought Northwest Airlines
three years later, and in 2010 deferred deliveries until after 2020 in a move that analysts viewed as a signal it would never take the planes. Northwest had been the US launch customer for the 787 and took op-
tions on 50 more jets that were due to start arriving in 2008. Design and production problems delayed the first 787 delivery—to All Nippon Airways Co.— until 2011. Delta has focused its widebody jet fleet Airbus Group SE planes, but remains a big Boeing customer, ordering 120 of its 737-900ER single-aisle jets. American Airlines Group Inc. and United Continental Holdings Inc. both operate the 787. The terms of the cancellation are not known, though Boeing had kept the 787s in its order book. The company has booked net deals for 70 of the Dreamliner jets in 2016 and has a backlog totalling 721 of the planes.
January 2017
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Cargo & Logistics
Air cargo market could soon be on the upswing in spite of the current challenges of over-capacity and falling yields. There are encouraging signs that growth in air cargo volumes will endure into the New Year.
Positive momentum in the making
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lthough the global airfreight business continues to face headwinds from weak global trade, the International Air Transport Association (IATA) says there are encouraging signs that growth in air cargo volumes, will endure into the New Year. on-year demand in October, the volumes varied considerably. The Middle East market posted a 9.2 per cent growth in airfreight volumes, with capacity increasing 4.2 per cent. African carriers’ freight volumes increased by 7.4 per cent. However, capacity surged by 24.7 per cent on the back of long-haul expansion, in particular, by Ethiopian Airlines. Current slowdown in global trade, geo political concerns and the threat of protectionism pose risks to global trade thus impacting the prospects of air cargo industry.
IATA Director General and CEO Alexandre de Juniac said the uptick in airfreight volumes had been more than anticipated and that purchasing managers were forecasting an increase in new orders going forward, which augured well for the industry. “So, we enter 2017 propelled by some much needed positive momentum,” he said. IATA said there is some optimism over the prospects for the cargo business in 2017. The break in falling yields and a moderate uptick in demand (3.5 per cent) will see cargo industry volumes reaching a record high of 55.7 million tonnes,
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January 2017
up from 53.9 million tonnes in 2016. Industry revenues are expected to rise slightly to $49.4 billion, which is still well below the $60 billion level of annual revenues experienced in 20102014. In October last year, UPS signalled an increased appetite for cargo aircraft, submitting an order to Boeing for 14 747-8 freighters, with the option to purchase an additional 14 over the next three years. UPS officials said the purchases will let the integrator upgrade offerings on current routes, but they also left the door open to using the extra capacity in new markets. While all airfreight markets except Latin America reported an increase in year
Alexandre de Juniac said that world trade is still sluggish, so air cargo is by no means flying easy. “Growth is the way to overcome the world’s current economic challenges,” Juniac said. “The EU-Canada agreement is a welcome respite from the current protectionist rhetoric and positive results should soon be evident. Governments everywhere should take note and move in the same direction.” Boeing in its World Air Cargo Forecast stressed on the aviation industry’s importance to global trade, noting that as trade increases, so too will the need for cargo capacity. This demand will help the airfreight market emerge from what it calls “several years” of lower-than-expected growth.
Cargo & Logistics
Emirates SkyCargo adds capacity to the US
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mirates has added cargo capacity to the US with the launch of a daily service to Fort Lauderdale.
The route, which started on December 15, is operated by a Boeing 777200LR. It can hold 15 tonnes of cargo per flight. It will be the second route in Florida where Emirates SkyCargo offers belly-hold capacity after the theme park city of Orlando was added last year. The new capacity comes as global cargo volumes decline because of slowing economic growth. Emirates carried 1.3 million tonnes of cargo during the first half of the 2016-2017 fiscal year, unchanged from a year earlier, even as its cargo capacity rose by 9 per cent during the same period.
“Cargo provides an additional revenue source given the significant belly-hold capacity of Emirates Boeing 777s,” said John Strickland, an aviation consultant at London-based JLS Consulting. Emirates has been expanding its US network for the past few years. “The impact of the new US regime for Gulf carriers will depend on whether it looks at the broader benefits to the US economy of direct air services and the jobs created from the large aircraft orders with Boeing and its sub suppliers or whether it listens solely to the complaints of the big three US carriers,” said an official.
Emirates SkyCargo offers about 2,000 tonnes capacity a week from the US. During the 2015-2016 financial year, it handled more than 90,000 tonnes of exports from the US. The Fort Lauderdale service is expected to open up trade opportunities and provide additional connectivity to Emirates’ cargo customers. Emirates offers belly-hold cargo capacity on passenger flights to Boston, Chicago, Dallas, Houston, Los Angeles, New York, Orlando, San Francisco, Seattle and Washington. The carrier also operates freighter services to Atlanta, Chicago, Columbus, Houston, Los Angeles and New York.
January 2017
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Cargo & Logistics
Qatar to add four freighter destinations in the Americas
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atar Airways Cargo will launch twice weekly Boeing 777 freighter operations to four new destinations in the Americas, starting in early February 2017.
The freighters will fly to the South American cities of Buenos Aires, Sao Paulo, Quito (the latter subject to governmental approval) and Miami in the US. They will depart from the Middle East cargo carrier’s Doha home base, via Luxembourg, its European hub, with stops at Sao Paulo in Brazil, Buenos Aires in Argentina and Quito in Ecuador. On the return leg, the freighters will stop in Miami, Florida and Luxembourg before arriving in Doha.
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January 2017
These new freighter services aim to meet the growing demand for import and export trade in the region and will supplement the belly-hold cargo capacity on Qatar Airways’ daily flights to Sao Paulo, Buenos Aires and Miami. The launch of new freighter routes brings the carrier’s total freighter destinations in the Americas to 12 while offering belly-hold services to 13 cities on the continent. Major commodities out of Sao Paulo, Buenos Aires and Quito com-
prise fresh flowers, perishables and pharmaceuticals, whilst imports into South America include a wide variety of products ranging from medicines, automotive, chemical products to high tech commodities and equipment for the oil and gas industry. Miami will serve as the airfreight distribution hub to and from the Latin American and Caribbean regions. Qatar Airways recently took delivery of its 11th B777F, taking the total fleet to 21, including eight Airbus A330Fs and two Boeing 747Fs.
January 2017
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Technology
The next generation of aircraft to come off the production line include the Airbus A350XWB, A320neo, Boeing 737MAX, the 777x, the A330 neo, Embraer E2 series and Bombardier CSeries
The next generation in the wings
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ircraft design and production are set to witness continued technological advancements that will bring in radical improvements in operating efficiency.
Advanced avionics and impressive interior cabin designs and noise reduction capabilities are all driving increased customer demand. But the wider use of composites, advanced manufacturing technology requirements and conversion to new electrical systems are also rapidly changing the way aircraft are manufactured and creating challenges across the supply chain as the supply base struggles to make the changes necessary to keep up with aircraft OEM (original equipment maker) demands. Aviation has been successful at decoupling emissions growth and actual growth. Traffic growth is increasing at an average of 5 per cent annually, while CO2 emissions are growing around 3 per cent. Newer aircraft, like the Airbus A380 and Boeing 787, consume on average less than three litres per 100 passenger kilometres or more than 78 passenger statute miles per US gallon. This is a fuel use which compares favourably to that of compact cars, although aircraft travel much further distances, much faster. The next generation of aircraft to come off the production line, including the Airbus A350XWB, A320neo, Boeing 737MAX, the 777x, the A330 neo, Embraer E2 series and Bombardier CSeries will offer further improve-
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ments in fuel burn and emissions. Turboprop aircraft like the Bombardier Q400 and ATR series can provide a more fuel-efficient alternative to jet aircraft to cover shorter distances. Today, engineers and researchers are making incremental and frequent improvements that offer large savings overall. For instance, the wingtip devices airlines and manufacturers install on new aircraft increase aerodynamic efficiency and reduce fuel usage. Manufacturers are increasingly using light-weight materials such as carbon composites to build aircraft and components.. Manufacturers of engines are also using highly advanced materials and processes such as additive layer manufacturing to develop new engines.
Technology on new aircraft can either be to improve fuel burn through aerodynamic efficiency (mainly airframe), or to reduce actual combustion use (mainly engine-related). Combined, these elements create a new aircraft with a reduced environmental impact. Aircraft have a useful life of around 25-30 years, during which they will cover many millions of nautical miles and carry millions of passengers or tonnes of cargo. Because of the long lead times for developing, designing and manufacturing a modern civil aircraft, there tend to be ‘waves’ of new aircraft entering the fleet. We are currently in the middle of such a wave, with a number of new aircraft types coming into the system and replacing older, less fuel-efficient aircraft.
Technology
A study by researchers from Qatar University and Masdar Institute of Science and Technology, and funded by Boeing, finds that bio-fuel for aviation can be produced from integrated seawater energy and agriculture system.
Aviation bio-fuel from seawater agro system
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ntegrated seawater energy and agriculture system (ISEAS) can produce bio-fuel for the aviation sector with fewer greenhouse gas emissions than its fossil counterpart, along with sustainable aquaculture food products without freshwater, according to a study by researchers from Qatar University (QU) and Masdar Institute of Science and Technology (Masdar Institute) and funded by Boeing Corporation. In a new article in the International Journal of Life Cycle Assessment, co-authored by QU Centre for Sustainable Development research assistant Prof Dr J Jed Brown, a life cycle assessment (LCA) of a potential ISEAS was conducted. The team quantified the energy and material flows throughout the system and calculated the resulting net greenhouse gas emissions. The LCA results showed that the aviation bio-fuel produced from this ISEAS system emits up to 68 per cent less greenhouse gases compared to fossil jet fuel and yields an overall positive net energy balance. In the ISEAS, seawater is pumped into ponds where high value shrimp and fish are grown for human consumption. The nutrient-rich effluent exits the ponds and flows into fields of salt-tolerant plants. The team examined a Salicornia bigelovii halophyte - commonly known as glasswort or samphire - which produces oilseeds similar to soybeans. The oil extracted from the seeds can be processed into a drop-in bio-fuel
for airplanes, Dr Brown said, adding, “The portion of the seed that remains after oil extraction is high in protein and can be recycled into feed for fish and shrimps.
receiving water body. In the ISEAS system, the effluent serves as a fertiliser source for the halophytes and mangroves, which clean the water by removing nutrients.
The dried straw that remains after the oilseeds can be used to generate electricity. Water that leaves the halophyte fields flows into a mangrove wetland where most of the remaining nutrients will be absorbed into mangrove biomass. Branches and leaves from the mangroves can be periodically trimmed to generate electricity with the Salicornia straw.”
Mangroves are also used in many parts of the Gulf region to stabilise erosion-prone coastal regions, rebuild habitats for marine life, and provide permanent carbon sequestration in their biomass.”
“In a conventional aquaculture system, nutrient-rich aquaculture effluent is frequently discharged untreated back into the sea, which can have negative impacts on water quality of the
Dr Brown pointed out that “as the human population continues to rise in the Gulf region, there is a greater need to provide food, water and low-carbon energy for the populace. Since there is a great scarcity of freshwater in this region, any agriculture or bio-energy projects that rely on freshwater will be unsustainable.
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