Monthly Newsletter issued by Dubai Civil Aviation Authority
www.viadubaionline.com
Issue 22 March 2015
UAE attains top global position for aviation safety
Inside DCAA
DCAA and Airside signs cooperation deal DCAA honours American Academy students
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UAE in Focus WASS to review aviation safety in conflict zones
14
Middle East region 15 ‘emblematic’ of the heights of aviation success Dubai to see 100 million air 16 travellers by 2020
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DCAA to launch Happiness Meter
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Middle East Strongest traffic growth 22 by ME airlines in 2014 Saudi Arabia mulls privatizing airports
23 Nasser Al Najjar
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International Perth Airport master plan approved
The Digital Traveller
Opinion Customers are demanding better services
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Airlines Air New Zealand orders 28 787-9 Dreamliners
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Tony Tyler
In Focus 32
The travel landscape evolution
Gulf airports have good A-CDM
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Frank Brenner
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Cargo & Logistics 34
Scott Lachut
Airports are long term investments
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Josephine Teo
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: email:
+971 56 6810685
it.support@dcaa.gov.ae
www.dcaa.gov.ae
CONTENTS DCAA and Airside signs cooperation deal
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DCAA celebrates Kuwait’s National Day
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The UAE attains top global position for aviation safety
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Falcon Aviation’s VIP Completion Centre at DWC by end-2015
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Blue Skies
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WASS to review aviation safety in conflict zones
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UAE improves its global rankings
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UK tests fuel-efficient hybrid electric plane
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Europe wants safer and less-costly flights
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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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Aviation’s key contribution
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he UAE’s progress in every domain has been inspiring and breathtaking, with aviation topping the list of amazing achievements. The UAE people contributed to the success story and their trust and confidence in the leadership has remained solid and unflinching. This is reflected well in the Edelman Trust Barometer of 27 countries that has acknowledged the UAE as the most trusted country in the world. In another survey of 114 economies by the World Economic Forum (WEF), the UAE jumped seven ranks in a year’s time to reach 12th position on the Global Competitiveness Index. The future belongs to those who prepare for it. This statement of His Highness Sheikh Mohammed bin Rashid Al Maktoum was the inspiration behind the Government Summit 2015, that saw its third edition in Dubai under the title, Shaping Future Governments. The event focused on how governments can handle a changing world. Aviation has been playing a key role in the development of the UAE. Days before entering the new year, Dubai notched up the coveted title of being home to the world’s number one airport for international passengers. This is a great achievement, but just the beginning of new journey of excellence. This year, we are hopeful about seeing
Ahmed bin Saeed Al Maktoum
79 million passengers passing through the Dubai International. Concourse D will become a reality this year, thereby offering expanded capacity to handle the ceaseless air traffic growth. 2015 started off in an impressive way for the UAE aviation industry with the International Civil Aviation Organization (ICAO) acknowledging the UAE having the safest skies in the world. The UAE scored a success rate of 98.86 per cent in the ICAO’s Universal Safety Oversight Audit Programme (USOAP), which is the highest rate in the ICAO’s history. This is an enormous and unprecedented achievement by the UAE aviation industry. I have no doubts that the success of Dubai’s aviation model will benefit the global aviation industry. Our vision, expansion plans and commitment to open skies, coupled with consistent hard work and delivery of quality services, are behind our success.
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 and Airside signs cooperation deal
Mohammed Abdulla Ahli
Future dynamism
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he Government Summit 2015 titled “Shaping Future Governments” provided an invaluable insight into the future of governance. This event provided a platform to think and listen to what the people expects from the government in the coming years. The entire gamut of delivery of government services is undergoing change due to the technological advancement. As rightly said by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, we have to innovate to avoid stagnation. The word of praise by His Highness General Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and His Highness Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior, for Dubai’s emergence as the number one airport for international passengers is matter of great pride and honour for our aviation industry.
Our aviation industry added another achievement to its long list with the ICAO acknowledging the UAE having the safest skies in the world. The UAE scored a success rate of 98.86 per cent in the ICAO’s Universal Safety Oversight Audit Programme (USOAP), which is the highest rate in the ICAO’s history. It is a big challenge to be at the top, but with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, and guidance His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA and Chairman of Dubai Airports, we will be able to keep flying higher. At the DCAA, we are committed to making the government’s vision and goals a reality. We have embraced the technological changes and innovative ideas to reach out to the stakeholders in an efficient and satisfactory manner. We have developed a portfolio of e-services and smart services to meet the expectations of our customers. Our smart journey will continue as we develop more smart services. With a clear government vision and unbridled support of all the stakeholders to realize the goals, we are headed in the right direction. 2
March 2015
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he Dubai Civil Aviation Authority (DCAA) and the German company, Airside GmbH, have signed a cooperation and training agreement in the field of civil aviation.
Abdul Rahim Al Mulla, DCAA’s Director of Corporate Support, and Prof. Dr. Ing. Holger Schulz, Director of Airside GmbH, signed the agreement in the presence of Khalid Khalid Al Arif, GCAA’s Director of Standards and Regulations, and Hani Abu El Soud, Head of Strategy and Organizational Excellence Office at DCAA, and representatives of Airside GmbH. The agreement aims to pave the way for the aviation industry professionals to join the training courses conducted by the company. The agreement has provision for free seats and discounts for the DCAA employees for the training courses. A programme with two training sessions of four days was conducted at the Jumeirah Creekside Hotel.
DCAA honours American Academy students
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he Dubai Civil Aviation Authority (DCAA) has honoured a group of students from the American Academy in Al Mizhar at the completion of a training programme which lasted for a week. The ceremony was attended by Abdul Rahim Al Mulla, DCAA’s Director of Corporate Support, and Hamad Al Janahi, Head of Human Resources at DCAA. During the training, the students visited all the departments and sections of the DCAA to learn about their functions and responsibilities and gain practical knowledge about the working of the civil aviation industry. The training programme aims to encourage students to work and engage in the civil aviation sector in the future.
Inside DCAA
DCAA participates in DGAE
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he Dubai Civil Aviation Authority (DCAA) is actively participating in the 2015 edition of Dubai Government Achievements Exhibition (DGAE) in line with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai. Organized by the Dubai Executive Council and Dubai Government Excellence Program (DGEP), the exhibition is designed to highlight the leadership qualities of the government of Dubai in various fields, which has led to excellence and innovation. The exhibition highlights the achievements, services and projects of all the government departments and entities under one umbrella.
This year’s exhibition is taking place from March 30 to April 1 at the Dubai International Convention and Exhibition Centre (DICEC). His Excellency Mohammed Abdulla Al Ahli, Director General of DCAA, said: “We are proud about the achievements of the UAE in the civil aviation and the top global position the country enjoys in the aviation safety domain as spelled out by the International Civil Aviation Organization (ICAO).” “The DCAA is continuously working towards the development of civil aviation sector and enhancing levels of excellence to its services which will contribute to meeting the challenges of the future
to achieve even more achievements at the local and global level.” Through its participation in the DGAE, the DCAA intends to highlight its diverse activities and initiatives in the civil aviation domain and the amazing transformation of the civil aviation in the Emirate of Dubai.
DCAA celebrates Kuwait’s National Day
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he Dubai Civil Aviation Authority (DCAA), in collaboration with the General Department of Airport Security at Dubai Police, organized special celebrations at the Dubai International Airport Terminal 1 to mark the 54th National Day of the State of Kuwait on February 25. As a token of love and appreciation, a DCAA team presented roses and sweets to passengers arriving on a Kuwait Airways flight and the crew
members. National and popular Kuwaiti songs added a musical touch to the festive atmosphere of the celebrations. The celebrations were an embodiment of the distinguished brotherly relations and historical ties between the leaders and people of the UAE and Kuwait. The Kuwaiti nationals expressed their happiness regarding the warm and authentic welcome received by the Emirati people.
March 2015
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DCAA Interview
DCAA to launch Happiness Meter
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he Dubai Civil Aviation Authority (DCAA) has been in the forefront of adopting the Information Technology (IT) in facilitating the ease of work for its employees which helped them contribute towards enhancing the overall organization performance and their professional competencies. The aviation industry regulator of the Emirate of Dubai has been among the first government organizations to offer e-services and smart services to customers, enabling the authority to be responsive to the industry’s needs in the longer term. A slew of initiatives is planned to be launched by DCAA to realize its strategic objectives and implement smart services, smart governance and smart city initiatives outlined by the Dubai government and in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai. In an exclusive interview with Via Dubai, Nasser Mohammed Nasser Al Najjar, Information Technology Manager at the Corporate Support Department at DCAA, disclosed that the authority will soon launch Happiness Meter to evaluate customer satisfaction levels with its services, in line with the government directives to all the government entities in the emirate. Also in the pipeline are ISO 20000 and 27001 certifications and Smart Map launch when DCAA moves to its purpose-built headquarters in the Terminal 1 building of Dubai International Airport.
What are the major roles and responsibilities of IT at DCAA? At the DCAA, we recognize the importance of IT services in enhancing the operational performance and customer services. It is vital to remain in the forefront of the technological advancement that is taking place, especially in the civil aviation domain, especially in terms of making electronic services available to the customers and stakeholders that allows the ease of doing business. We shoulder three main roles and responsibilities.
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Initiative to measure customer satisfaction with services The first is the development of new services to serve the DCAA staff and customers. The second is to support the operations of DCAA. The third is to be an effective and important part all the new technological initiatives that the Dubai government undertakes like the smart government and smart city. DCAA has successfully implemented the smart government initiative and is going ahead in introducing more services aligned with the government’s vision and directives.
For how long have you been with DCAA? I have been with the DCAA since 2009. I joined the DCAA soon after finishing my graduation. Soon after my studies finished, I got a call from the DCAA to join as an IT technician. Over the years, I got promoted. In the past six years, I have seen the IT services in the DCAA growing tremendously in line with the expectations of the employees and customers and also compatible with the technological advancement that has taken place. DCAA has been very supportive to me in my projects that are outside the purview of my official work but are part of the social development of the country. I am a strong support of the UAE Pioneers (First UAE) project launched last year by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai. This initiative recognizes individuals who have been pioneers in various domains in the country.
Though it is not official instagram account for the initiative, but most of the people who nominate individuals for the project are through my instagram account which now has over 15000 followers including celebrities and dignitaries. I was thrilled when I was called to attend the launch ceremony and my services as a supporter were acknowledged. I thank the DCAA management for their support to my endeavors.
What have been the key achievements last year? In 2014, we launched 14 smart services. It is a big achievement transforming all our e-services to smart services. We changed many our DCAA customer services to e-services. We have 14 e-services and smart services each now. Our website ranking has also increased. We have upgraded our systems internally in order to facilitate better services provided to internal and external customers. We are constantly evaluation our performance and taking remedial measure to remain on the cuttingedge. We provide 24/7 technical support to the staff, some of whom work in shifts. We have about 100 staff working with the DCAA. In case of emergency, we provide service to the staff within 30 minutes during the office hours and one hour outside the office hours.
What are the new plans for 2015? We are working on launching Happiness Meter to check the customer satisfaction levels and better our performance in dealing with our customers and stakeholders. We plan to introduce this new initiative in April. Every government entity has been asked to launch Happiness Meter in line with the vision and directive of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai.
DCAA Interview
Two new ISO certifications to be in place soon
Happiness Meter will replace the multi-tier system to gauge customer satisfaction. This system was found to be cumbersome and not yielding the desired results. The Happiness Meter is unique with three options to choose by the customers for each transaction. The initiative was launched to daily measure the public’s happiness and satisfaction with government services. Using electronic devices connected to a central network, Happiness Meter will send daily reports to decision-makers enabling them to understand which services customers are pleased with and are not pleased with on any particular day. While launching the initiative in October last year, HH Sheikh Mohammed said preparing annual or quarterly reports to measure the happiness and satisfaction of the public does not meet our ambitions because today the world is transforming very fast and people’s expectations too are changing rapidly. The ultimate goal of all our initiatives is to make people happy and make their lives simpler by reducing the time taken for completing government services. In the first phase, Happiness Meter initiative will be extended to all government departments this year while phase two will extend the project to selected private sector companies.
IT budget doubled due to expanded services portfolio
It seems DCAA is also going in for more ISO certifications? We are also going in for ISO 27001 and ISO 20000 certifications which are also aligned with the Dubai government’s Information Security Regulations (ISR). Probably, we will be able to do it by April. All government departments are required to have the ISR. ISO 27001 is an information security management standard. The new standard puts more emphasis on measuring and evaluating how well an organization is performing in this domain. Also we decided to implement ISO 20000 for IT services management. We have started implementing the processes and systems towards achieving those certifications in line with the objectives of Smart government strategy.
We have designed and implemented the systems and processes for those certifications and waiting for its assessment by a third party to complete the procedure for getting the certificates. This is important as the DCAA is working on expanding its Smart services portfolio and introducing more e-Services. We are focused on customer service, which is one of our five strategic pillars.
HH Sheikh Mohammed directed all government departments to launch smart applications? How DCAA is progressing on this front? The UAE has the highest mobile phone subscribers in the world and the popularity of smart phones has been increasing tremendously. With all the government entities part of the Dubai Smart Government, DCAA has launched a number of smart services that can be accessed through the smartphones by customers. DCAA participated in the Gulf Information Technology Exhibition (GITEX) Technology Week 2014 and launched 14 smart services for the civil aviation industry customers, in line with the Smart Government. Our smart services include: Landing permission Approvals, carriage of restricted articles, issue of No Objection Certificates (NOCs) of different aviation business activities such as building heights, Crane Operations, GSM Communication Towers, Balloon Operations, and Aircraft Warning Light. DCAA is expanding the Smart services portfolio and will introduce more e-Services in the near future. We plan to launch Smart Map when the DCAA’s purpose-built headquarters in Terminal 1 of
DCAA’s new headquarters in DIA T1 will have Smart Map Dubai International Airport becomes operational. Through this, one can locate the office of any official and his or her appointments for the day and availability. This will probably happen in 2016. This will be of great help to all the departments, especially the Finance, HR, Media and Public Relations. We are also making a documentary on our smart services for release during the GITEX-2015. The short film will chronicle our success in the smart services domain and how these have benefitted the stakeholders.
What are the major challenges the IT department face? Technology is constantly evolving and it is a tough challenge to keep ourselves up to date. The new services that we have introduced and plans to launch soon requires us to expand and update our IT infrastructure substantially, both software and hardware. This has resulted in significant increase in the IT spending at the DCAA. Our IT budget has almost doubled. We have a total of eight employees working in the IT and we plan to recruit two more. Our website is now among the most-visited one in the country and we are taking measures to make it more visitor-friendly and introducing new features in the coming months. March 2015
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Cover Story
The UAE attains top global position for aviation safety
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viation safety affects everybody, from passengers and pilots to ground handlers and airline executives, to freight companies and the myriad companies who use their services to transport goods around the world.
Since the launch of scheduled commercial aviation operations 100 years ago, through the beginning of the jet age 60 years ago, to the present day, stakeholders in the aviation industry have worked continuously to improve the sector’s safety performance. For the UAE which has developed its aviation industry in a sustainable manner over the past 40 years and continues with its investments on infrastructure and aviation safety and security with a view to contribute to the development of international civil aviation and for the benefit of the peoples of the world. 2014 was the year of big achievement for the UAE aviation industry with airports in the Arab world’s second biggest economy surpassing 100 million passengers mark and Dubai International taking over the crown from the London Heathrow as the world’s number one airport for international passengers. Observed a report by Centre for Asia Pacific Aviation (CAPA):“These two achievements aren’t particularly significant on their own: both had been looming on the horizon for some time. It was more a question of when, rather than if. Sustained by forward-looking air transport policies and heavy investment aligned with broader national economic growth objectives, the UAE is now one of the key connecting points in international aviation.”
Safest skies in the world
It is not just the expansion of UAE’s fast-expanding air connectivity and air traffic that has drawn the attention of the world, but its excellent track record in aviation safety which resulted in the International Civil Aviation Organization (ICAO) acknowledging the UAE having the safest skies in the world… ever. Not only is that the highest score of any country in the world – it is the highest score in the 70-year history of the UN organization.
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Three priorities
The ICAO continues to prioritize action in three areas of aviation safety – improving runway safety, reducing the number of Controlled Flight Into Terrain (CFIT) accidents and reducing the number of loss of control in-flight accidents and incidents. All of these actions will contribute to the overarching priority of the Global Aviation Safety Plan (GASP) to
continually reduce the global accident rate. The GASP calls all member-states to implement effective safety oversight capabilities by the year 2017. The focus of the long-term objective is the implementation of predictive risk modeling systems by the year 2027 that assure safety in a real-time, collaborative decisionmaking environment.
The most-coveted distinction had the UAE, especially its vibrant aviation industry, feeling on cloud nine. The UAE accomplished this enormous and unprecedented achievement by ranking highest in the world in compliance with international aviation safety standards.
Aviation Authority (DCAA), Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, commented: “This global recognition comes as a result of persistent efforts for many years in order to reach this high position that the country deserves.”
The UAE scored a success rate of 98.86 per cent in the ICAO’s Universal Safety Oversight Audit Programme (USOAP), which is the highest rate in history given by ICAO. The UAE ranks ahead of South Korea (second) and Singapore (third), according to the General Civil Aviation Authority (GCAA).
He said the aviation sector in the UAE, with its superb infrastructure and services, has become hugely attractive and was qualified to play a key role in steering the global aviation industry. He praised the efforts of the General Civil Aviation Authority (GCAA), DCAA and other relevant authorities, hoping the hard work and achievements will continue.
The sky is the limit
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, tweeted: “From no roads 4 decades ago, UAE today has the world’s most advanced & safe airlines & flight routes. For our dreams, the sky is the limit. We will continue to strive to be the safest hub for facilitating trade, tourism and economic exchange among peoples of the world. Our advanced airports, airworthy planes, sound legislation & skilled staff made our aviation system the safest in the history of aviation.” His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of the Department of Civil
His Excellency Sultan bin Saeed Al Mansoori, UAE Minister of Economy and Chairman of GCAA, said: “Scoring first place in the world in aviation safety comes as a result of GCAA’s hard work locally, regionally and internationally. Efforts and initiatives by the GCAA in deploying aviation safety culture have had a fundamental impact in the improvement that we are witnessing in the country.” He added: “UAE’s aviation sector has, in just a few years, become one of the most prominent aviation sectors in the world. Aviation safety has always been our top priority parallel with exceptional service quality and assurance of growth capability.”
Cover Story He said: “Our ability to execute our strategies and initiatives, along with implementing innovations have greatly improved the status of the civil aviation sector. The deserved position in safety excellence is a result of an interpretation of His Highness Sheikh Mohammed bin Rashid Al Maktoum saying ‘My people and I love number one’ from last year’s Government Summit.”
the aviation industry. We continue to look for ways and means for making the air travel safe and secure in all aspects. As the global aviation hub of the 21st century, the Emirate has an important role to play in ensuring high standards of aviation safety. DCAA’s remit has been enlarged in the recent times with massive growth in air traffic.”
His Excellency Saif Mohammed Al Suwaidi, GCAA Director General, said: “It is an honour to obtain such an assessment result by the ICAO and to accomplish the best result worldwide. It could not have been done without the clear vision supported by a strong will to excel and progress.”
Sir Tim Clark, President of Emirates Airline, said: “In the aviation industry, safety must always be the number one priority. Emirates congratulate the authorities for this outstanding work in this regard. The ICAO audit results are a strong endorsement of the quality and standard of aviation in the UAE.”
He added: “GCAA has strived to develop and implement superb aviation infrastructure consisting of modern regulation framework; state-of-the-art facilities and innovative technology; along with efficient manpower capacity transforming strategies and plans into tangible reality.” He continued: “This ranking is another factor adding to the competiveness amongst other local aviation industries in the regional market but also internationally. We anticipate the ranking will also enhance the opportunities for local carriers and other related services in the country in the coming years.”
Grand achievement: DCAA
His Excellency Mohammed Abdulla Ahli, Director General of DCAA, said: “This grand achievement is the outcome of the combined efforts of all the aviation industry stakeholders in the country and proved that the people and institutions of UAE are capable of achieving greater success and international recognition. This is a testimony of our clear commitment to supporting and enhancing the aviation safety to make the skies safer.” He added: “DCAA firmly believes that safety is paramount for the growth of
Decline in fatal accidents The aviation sector’s safety is critical to the health of the global economy. It is estimated over a third of the value of goods traded internationally are delivered by air. By 2050 it is estimated that some 16 billion passengers– equivalent to more than double the current global population of around seven billion – will need to be flown yearly. The past 60 years have seen an ongoing decline in fatal accidents.
USOAP audit
There are currently fewer than two passenger deaths for every 100 million passengers on commercial flights. The long term improvement in global airline safety is due to a combination of several positive trends, according to a latest global aviation safety study by Allianz Global Corporate & Specialty (AGCS).
Launched in 1996 as a voluntary programme, USOAP’s success led the ICAO to endorse an enhanced programme which commenced on the first day of 1999, replacing the voluntary programme. It was expanded in 2005 to cover provisions contained in all safety-related Annexes to the Chicago Convention. In 2011, the USOAP was given a new approach based on the concept of ‘continuous monitoring’.
Aircraft have become more reliable while safety systems and culture have improved enormously. The standard of training of crew has become notably higher. Improved air traffic control technology and better collision avoidance systems have also impacted. Pilots now have much more live information at their fingertips, including more accurate and up-todate weather data. Safety inspections are now far more effective. Aircraft inspections are much more detailed and stringent and incorporate improved technologies. Problems are increasingly being identified and dealt with long before they become a significant issue. Aviation safety varies across different regions of the world. The state of industrialization is often related to the safety of that region.
The ICAO team visited the UAE last November during which they assessed the country’s civil aviation regulator, airports and airlines. The ICAO launched USOAP to promote global aviation safety through the auditing of its 191 member-states.
The USOAP audit consists of three phases. Core areas audited by the USOAP include primary aviation legislation and civil aviation regulations; civil aviation organization; personnel licensing and training; aircraft operations; airworthiness of aircraft; aircraft accident and incident investigation; air navigation services; and aerodromes and ground aids.
March 2015
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UAE in Focus
Falcon Aviation’s VIP Completion Centre at DWC by end-2015 F alcon Aviation, the Abu Dhabi-based VIP jet and helicopter service provider, is building the Middle East’s first VIP Completion Centre at Dubai World Central (DWC), the world’s first purpose-built aerotropolis.
The ground breaking ceremony took place at the 6th Middle East Business Aviation (MEBAA) exhibition at DWC in December last year. The US$80 million VIP Completion Centre is scheduled for completion by the end of 2015. Spread across 13,705 sq. m, the facility will provide enhanced and customized services to VIP customersand will also feature a state of the art hangar equipped to accommodate up to an Airbus A380. In addition, it will offer VIP lounges, workshops, offices, and an in-house design studio for its elite clientele. His Highness Dr. Sheikh Sultan Bin Khalifa Bin Zayed Al Nahayan, Chairman, Falcon Aviation, said:“We are proud to offer the first facility of its kind in the Middle East. This is a significant achievement – for Falcon, for DWC and for the UAE. With the boom of the aviation industry in the Middle East, the opening of such facilities puts the region at the leading edge of aerospace technology. Falcon Aviation not only fills a niche in the VIP completion market, providing an exclusive service to aircraft owners and operators in the Middle East, it brings the UAE closer to becoming the global trade hub of the world.” His Highness Sheikh Ahmed bin Saeed Al Maktoum, Presi-
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dent of DCAA, Chairman of Dubai Airports and Dubai Aviation City Corporation (DACC), said:“DWC’s partnership with Falcon Aviation is yet another step towards the UAE Vision. The significance of the project is evident not only in the investment behind it but also the purpose it serves. The Falcon VIP completion centre not only serves to bridge a definite gap in the market but enables us to redefine standards of success in the aviation industry, worldwide.” Falcon Aviation has partnered with global market leaders for the development of the completion centre including Bombardier, Integrated Aerospace Alliance, CDG and Rockwell Collins.
His Highness Sheikh Zayed bin Sultan bin Khalifa bin Zayed Al Nahayan, Vice Chairman and Chief Executive Officer, Falcon Aviation, said: “Rising competition in the industry and evertightening budgets have resulted in a shift in the way aircraft owners and operators are doing business. This is a complex business and we have paid careful attention to assess the needs of our customers. Our partnership with Dubai World Central is testament to our commitment to providing our customers with the best-inclass facilities and services that will ultimately contribute to the advancement of the aviation industry at large.” The project brings together nearly 80 years of experience in aviation and engineering.
The Falcon Hangar and state of the art completion facility and MRO will be built by consulting architects ARKIPLAN. ASIGLOBAL has been appointed to design the stressed arch hangar while Mabani Steel will fabricate and erect the steel structure. Leading UAE contractor Al Shafar National Contracting is the builder and main contractor for the project. With a world class MRO and service centre for aircraft manufacturers, Falcon Aviation has been a leading company in the VIP aviation sector since 2006. An approved Embraer and Airbus Helicopter service center, Falcon Aviation operates a fleet of VVIP jet aircrafts along with Bell 412 Helicopters, serving the offshore oil & gas sector. It also provides VIP helicopter charters and tours within the UAE.
March 2015
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Exclusive
Exclusive interview with IATA regional head
Ticket to success 40 million air tickets worth US$16.6 billion sold in the Middle East in 2014 through travel agents
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he International Air Transport Association (IATA) is a global trade body representing 250 major airlines in 117 countries which carry approximately 84 per cent of total Available Seat Kilometers (ASK) air traffic globally.
The IATA forecast that by 2034, Middle East will have more than 383 million passengers passing through the region during that year. Robust passenger growth at UAE airports, according to IATA, is projected at 5.6 per cent annually until 2034. IATA’s Billing and Settlement Plan (BSP) is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents. The worldwide system operates in 179 countries and territories, including the UAE. The IATA accreditation programme authorizes travel agents to sell international and/or domestic tickets on behalf of IATA member airlines. It also allows access to IATA’s BSP, an efficient interface for invoicing and payment between the agent, airlines and transport providers. Over 60,000 IATA travel agents worldwide currently benefit from the accreditation and sold over US$333 billion worth of airline tickets last year on behalf of some 400 airlines. In an exclusive interview with Via Dubai, Michael Herrero, IATA’s Gulf Area Manager, offer insights into airline industry performance, volume of air tickets sold and the expansion of BSP. Excerpts:
How is global BSP performing in terms of reach in 2014 compared with 2013?
Globally, the BSP continues to be a reference for the tickets sold by travel agents and has grown from 545 million transactions to 561 million transactions so approximately three per cent. Value-wise, the BSP managed US$333 billion, including cash and credit card sales.
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March 2015
Michael Herrero, IATA’s Gulf Area Manager
What is the gross number of air tickets processed in the UAE and Middle East (GCC included) and their value in 2014? For the Middle East, 39.9 million tickets in 2014 compared to 38.3 million in 2013. Value-wise, US$16.6 billion in 2014 compared to US$15.2 billion in 2013. For the UAE, 7.4 million tickets in 2014 compared to 7.1 million in 2013. Value-wise, US$4.1 billion in 2014 compared to US$3.7 billion in 2013.
How many IATA-approved agencies are there in the GCC?
By the end of 2014, there were 2900 IATAapproved agencies in the six GCC states – Saudi Arabia, UAE, Kuwait, Qatar, Oman and Bahrain as against 2748 in 2013. This is a growth of 5.5 per cent. The number of agencies in Saudi Arabia is now 1538 as against 1456 in 2013. The UAE numbers too increased, from 604 to 621. Kuwait and Qatar too recorded slight increase, from 325
US$4.1 billion air tickets picked up in the UAE in 2014 to 364, and 143 to 151, respectively. Oman and Bahrain have seen the agencies going up from 121 and 99 in 2013 to 126 and 100, respectively.
Is the UAE and GCC better in terms of bad debts picture for the IATA in BSP?
In general, we can say that in 2014 the Middle East has been better than the global average in terms of bad debts, but mainly due to two giants’ European defaults that impacted the global figures and caused millions of losses for airlines. In the Gulf specifically, most of the default amounts are recovered but markets’ growth make airlines stay alert as giant defaults could also happen in this part of the world.
Exclusive
IATA member-airlines in the Middle East Air Arabia, AlMasria Universal Airlines, DHL Aviation Bahrain, Egyptair, Emirates, Etihad Airways, Gulf Air, Iran Air, Aseman Airlines, Jazeera Airways, Jordan Aviation, Kish Air, Kuwait Airways, Libyan Airlines, Mahan Air, Middle East Airlines (MEA), Nesma Airlines, Nile Air, Oman Air, Qatar Airways, Royal Air Maroc, Royal Jordanian, Safi Airways, Saudi Arabian Airlines, Sudan Airways, Syrianair and Yemenia.
IATA-approved agents sold 7.4 million air tickets in UAE last year
What the future highlights for BSP in terms of expansion and development?
In the Gulf, IATA is looking at introducing an insurance programme in addition to the existing form of financial securities provided by the agents (e.g. bank guarantees). We hope the programme will be implemented during 2015. Also direct debit options in the UAE are being explored in order to make travel agents’ payments easier. IATA has started piloting a BSP in Sudan in December 2014. And globally, IATA is reviewing several areas of the current BSP model in order to adapt it to today’s new environment. New models of risk management, adaption to new methods of payment and of course alignment with the New Distribution Capability (NDC) initiative are on the table.
Where do the UAE stand in terms of ranking in the BSP in terms of sales and volume of business?
The UAE holds the 22nd and 18th country position in 2014 in terms of sales and volumes of tickets, respectively.
How is the airline industry business in the Middle East?
Middle East carriers had in 2014 the strongest annual traffic growth of all regions at 13.0 per cent. An important portion of this growth came from the GCC. The region’s economies continue to show robust growth in non-oil sectors, and are
5.5 per cent increase in IATAaccredited agencies in GCC
therefore well-placed to withstand the plunge in oil revenues. Capacity rose 11.9 per cent and load factor climbed 0.8 percentage points to 78.1 per cent. Middle East airlines have one of the lowest breakeven load factors (58.6 per cent). Average yields are low but unit costs are even lower, partly driven by the strength of capacity growth. Passenger capacity is expected to expand by 15.6 per cent in 2015, up from 11.4 per cent in 2014. Post-tax net profits are expected to grow to $1.6 billion in 2015, up from $1.1 billion in 2014. This represents a profit of $7.98 per passenger and a net profit margin of 2.5 per cent.
This positive story of growth for 2015 is good news for GDP and jobs. However, unexpected events, such as oil price spikes or political unrest have the ability to spring nasty surprises for the airline industry. The 2015 growth plans could also be negatively impacted if aviation stakeholders forget the circumstances behind the Middle East aviation success story. For example, in the last three months there have been several cases in the GCC of new or increased airport, fuel or ATC charges without proper consultation with the airlines. We have also seen proposals for new passenger rights regulations which are not appropriate for liberalized economies and could have an important effect on the price of the tickets. IATA believes the wonderful story of aviation in this region has been founded on a high spirit of coordination and cooperation between the aviation stakeholders, and we hope that this will continue, to the benefit of the economies and consumers in the Middle East.. March 2015
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Special Report
Blue Skies
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n a new report, the International Air Transport Association (IATA), an association of 250 major airlines, including 28 across the MENA region, which carry approximately 84 per cent of total air traffic globally, offered a broader look at how the industry will shape this year.
Consumers will see a substantial increase in the value they derive from air transport. We expect one per cent of world GDP to be spent on air transport, totaling over $820 billion. Air travel is accelerating, with growth of seven per cent expected this year, the best since 2010, well above the 5.5 per cent trend of the past 20 years. This is being driven partly by the upturn of the economic cycle. Consumers will also benefit from cheaper travel, due to the fall of fuel prices, with the average return fare (before surcharges and tax) of $458. Business will also benefit from the cost of shipping freight falling 5.8 per cent in real terms. Air freight had been in the doldrums since 2010 but now a moderate cyclical upturn is evident. Cargo is also expected to see its strongest growth since 2010. The upturn in economic activity driving these expectations is fragile, as weakness in Europe and Asia has shown. However, an easing in fiscal austerity policies, continued expansionary monetary policy and progress in deleveraging the private sector, are all coming together to boost growth, particularly in economies like the US.
Wider economy
Economic development worldwide is getting a significant boost from air transport. This wider economic benefit is being generated by increasing connections between cities. The number of unique city-pair connections is estimated at more than 16,000, almost double the connectivity by
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March 2015
Global airlines industry is poised to fly high air twenty years ago. Lower transport costs and improving connectivity have boosted trade flows; trade itself has resulted from globalizing supply chains and associated foreign direct investment (FDI). We forecast that the value of international trade shipped by air this year will be $7.3 trillion. People travelling by air will spend $644 billion.
Government
Governments have also gained substantially from the good performance of the airline industry. Airlines and their customers are forecast to generate $125 billion in tax revenues. That’s the equivalent of almost 50 per cent of the industry’s Gross Value Added (GVA). The commercial activities of the industry remain highly constrained by bilateral and other regulations. Moreover, regulation is far from ‘smart’ with unnecessarily high costs in many situations. There are now 59 regimes currently in force, based on information currently available.
Capital providers
Debt providers to the airline industry are well rewarded for their capital, usually invested with the security of a very mobile aircraft asset to back it. Net post-tax profits are forecast to rise to $25 billion, so the industry is generating enough rev-
enue to pay its suppliers bills and service its debt. But $25 billion is a margin on revenues of only 3.2 per cent. Equity owners are not rewarded adequately for risking their capital, except at a handful of airlines. Investors should expect to earn at least the normal return generated by assets of a similar risk profile, the weighted average cost of capital (WACC). The average return on invested capital (ROIC) in the airline industry is expected to reach seven per cent, 0.8 per cent points lower than it should be in an industry that is highly competitive. Improved performance by the industry has significantly reduced the rate of investor value loss, on almost $700 billion of invested capital, to a forecast $5.7 billion this year.
Aircraft
This year commercial airlines will take delivery of more than 1,700 new aircraft, representing an investment by the industry of around $180 billion. The ROIC has given the industry the confidence to invest on this scale. Sustained high fuel costs had also made it economic to retire older aircraft at a higher rate, but that effect will clearly weaken this year. Over half of this year’s deliveries will replace existing fleet, making a significant contribution to increasing fleet fuel efficiency. The average size of aircraft in the fleet is continuing to rise slowly. So by the end of next year there will be some 3.7 million available seats. These seats are also being used more intensively,
Special Report
Consumers to benefit from lower fares due to oil price fall which is critical for profitability in a capital intensive industry – and it also reduces environmental impact. Passenger load factors are expected to fall a little as capacity growth accelerates, but remain relatively high. Aircraft are also being flown more intensively. The number of scheduled departures is forecast to exceed more than 35 million. That’s an average of 67 aircraft departing each minute of 2015.
“Without aviation our world would be very different— less connected and much less prosperous. In the first century of air travel, 65 billion passengers took to the skies and the next 65 billion will fly in the coming 20 years alone.”
Fuel
We forecast the airlines fuel bill will fall to $192 billion this year, which will represent 26 per cent of their total operating costs. Jet fuel prices have fallen substantially. We forecast that purchases of jet fuel by the airline industry will generate $16 billion of profit for the upstream part of the jet fuel supply chain. We forecast that fuel efficiency, in terms of capacity use (per ATK), will improve at a slower rate of 1.6 per cent in 2015, as less fuel efficient aircraft are kept in service. Continued fuel efficiency gains have partially decoupled CO2 emissions from expanding air transport services. In the absence of the expected fuel efficiency gain this year, fuel burn and CO2 emissions would be 1.6 per cent higher in 2014. That represents a saving of 12 million tonnes of CO2, as well as saving on fuel that would have cost the industry and its consumers an additional $3 billion.
Labour
Airlines are expecting to slow the pace of hiring. Growth in employment has been strong in 2014, but IATA’s survey of airline CFOs showed a net balance between those saying they would and would not increase hiring this year.
$820 billion to be spent on air transport this year ers, affecting the experience, the timeliness of the journey, and its cost. The direct cost paid for using infrastructure has increasingly been transferred to the passenger. Overall the cost of using airport and Air Navigation Service Provider (ANSP) infrastructure has risen steeply over the past decade. This contrasts with the relatively limited rise in other non-fuel airline costs. Moreover, inefficiencies causing delay and inefficient routings add to the direct cost. We forecast that the delays caused by inefficient airspace management in Europe alone will cost the industry $3.9 billion, as well as generating unnecessary CO2 emissions. The time passengers waste in these delays is a consumer cost worth an estimated $7.8 billion.
Regions
Tony Tyler Director General & CEO IATA We estimate that total employment by airlines will reach 2.45 million, a gain of 1.5 per cent over 2014. We estimate that the direct GVA for national economies, generated by the average airline employee, will rise 6.3 per cent to almost $109,000 a year, which is well above the economy-wide average.
Infrastructure
Infrastructure partners play an important role in the service airlines provide to their custom-
The strongest financial performance is being delivered by airlines in North America. Net post-tax profits are the highest at $13.2 billion this year. That represents a net profit of $15.54 per enplaned passenger, which is a marked improvement from just three years earlier. Breakeven load factors are highest in Europe, caused by a combination of low yields due to the highly competitive open aviation area, and high regulatory costs. Net profits of $4 billion this year will represent only $4.27 per passenger and a margin of 1.8 per cent. Airlines in Asia-Pacific are doing better than those in Europe. Profit per passenger is a little higher at $4.30 as lower fuel costs and stronger cargo markets, particularly important in this manufacturing region, help to boost net margins moderately to 2.2 per cent and net profits to $5 billion. Middle Eastern airlines have one of the lower breakeven load factors. Average yields are low but unit costs are even lower, partly driven by the strength of capacity growth; 15.6 per cent this year. Post-tax profits are expected to grow to $1.6 billion. Latin American airlines will see a degree of consolidation and some long-haul success will boost net profit to $1 billion this year. Africa is the weakest region, as in the past two years. Profits are barely positive, and represent just $2.51 per passenger. Breakeven load factors are relatively low, as yields are a little higher than average and costs are lower. However, few airlines in the region are able to achieve adequate load factors, which are the lowest by five per cent points. Performance is improving, but slowly. March 2015
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UAE in Focus
WASS to review aviation safety in conflict zones
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s conflict zones continue to sprout up across the Middle East, aviation players must collaborate to identify, assess and respond to risks civil aircraft face from hazardous activities in conflict areas.
“We long for the support of the international community and ICAO member states with conflict-striken territories to take proactive actions and impose no-fly zones above their conflict areas,” said Mohammed Eturki, Executive Director Group Safety and Quality from FlyNas.
Industry debate on the issue is heating up once again after regional airlines suspended flights to Baghdad following the recent shooting at the flydubai airplane in Iraq.
manufactures, pilot associations, safety organisations and air traffic control service providers.
The risks associated with flying aircraft over conflict zones will be a key area of discussion at the 3rd World Aviation Safety Summit (WASS) in Dubai.
Experts will also share regional case studies on how the challenges of integrating and implementing new and existing safety procedures can be overcome.
Regional and international aviation experts will explore how this rising set of threats and challenges for global civil aviation can be successfully handled and mitigated.
The International Air Transport Association (IATA) has declared that gaps exist in global aviation security and recognised that airlines require the calibre of state-level intelligence to decide when and where aircraft should not be flying.
The Summit will be hosted by the Dubai Civil Aviation Authority (DCAA) and organised by the Streamline Marketing Group
Shortly after the Malaysia Airlines flight MH17 was shot down over Ukraine on 17 July last year, the International Civil Aviation Organization’s (ICAO) and IATA jointly set up a task force with other industry players to study what information airlines should be receiving from governments when flying over or near known conflict zones.
“Collecting and disseminating clear, accurate and timely information about conflict zones is critical to the safety of civil aircraft,” said Captain Elias Sadek, Vice President for Safety & Quality at EgyptAir Holding Company, who will also be speaking at the summit.
Held under the Patronage of His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports, Chairman and Chief Executive of Emirates Group, the Summit will be hosted by the Dubai Civil Aviation Authority (DCAA) and organised by the Streamline Marketing Group. Running from March 16 to 17, the summit is expected to attract more than 300 regional and international stakeholders from regulatory authorities, airline operators, airport operators, aircraft
Airlines have highlighted that detours over the Middle East’s various high risk areas has a significant impact on airlines’ bottom lines.
“Their air traffic controllers (ATC) should ban flying over such dangerous zones as well as set up alternative routes to support continued safe flying. There is an urgent need for the aviation community to cooperate in the sharing of information about dangerous flying zones through a well-organized system.”
“A wealth of important data is available – what’s lacking in the industry is the efficient exchange of useful information. A centralised global intelligence system must be set up to provide airlines with clear guidance on the threats to their passengers, crew and aircraft,” he added. Cengiz Turkoglu, Chairman of the Technical Committee, International Federation of Airworthiness, commented: “Growing commercial air transport is fuelling economic growth in many countries and the only way to sustain this growth is to continue maintaining public confidence in the system.” He added: “The commercial aviation accident rate has decreased significantly over the decades and the commercial air transport system has become ultra-safe. However, if further reduction in accident rate cannot be achieved in the coming years, by 2030, the predicted traffic growth will inevitably generate one fatal accident per week.”
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March 2015
UAE in Focus
Middle East region ‘emblematic’ of the heights of aviation success Under the Patronage of H.H. Sheikh Ahmed bin Saeed Al Maktoum President of Dubai Civil Aviation Authority, Chairman of Dubai Airports Chairman and Chief Executive of Emirates Airline and Group
11-12 May 2015 | DICEC, Dubai, UAE
O
Leading Collaborative Sustainable Airport Growth
ne of the foremost contributors to the global
Meet, learn and network with global aviation experts and decision-makers at the 3rd Global Airport Leaders' passenger and cargo airconference traffic, thefor Middle Forum, the region's leading aviation regulators, airports, airlines, manufacturers, academia and Eaststakeholders. region is “emblematic of the heights” aviation
to which aviation can rise when governments fully your seat todayasto hear from these expert speakers: support the industryBook and understand its potential a powerful driver of social and economic progress, remarked the chief of global airports operators body. Angela Gittens, Director General of Airports Council International (ACI) which has 591 memH.E. Mohammed Al Marri H.E. Sultan Al Mansoori bers Minister operating more than 1861 airports 177 Directorin General of Economy & Chairman General Civil Aviation Authority (GCAA) General Directorate of countries, said the annual passenger traffic growth Residency and Foreigners Affairs, Dubai globally was expected to average 4.1 per cent annually to 2031 to reach 12 billion. “Preliminary statistics for 2014 indicate total worldwide passenger traffic of 6.6 billion, so we’re talking about nearly doubling worldwide traffic over the next decade and a half. The airports H.E. Thani Abdulla Al Zafn Angela Gittens handled million 83 Director100 General & Board metric Member tonnes of cargo Directorand General emaratech World million aircraft movements,” said AngelaACI who will be sharing her vision about the industry and its future at the Global Airport Leaders’ Forum (GALF) in Dubai from May 11 and 12.
H.E. Eng. Khalifa Al Zafn Executive Chairman Dubai Aviation City Corporation
H.E. Maj. Gen. Pilot Ahmed Bin Thani Assistant Commander for Seaports and Airports Affairs Dubai Police
Hussein Dabbas Regional Vice President for the Middle East and North Africa (MENA) IATA
David Chawota Chief Executive Ofcer Civil Aviation Authority, Zimbabwe
Khalifa Al Zaffin: GCC enjoys a natural affinity to aviation
are highly complex businesses in their own right which require the coordination of a vast number of stakeholders if safety, security and efficiency are to be maximized. If one piece of the puzzle is out of sync there are often far-reaching consequences.”
Angela Gittens: Aviation drives social and economic progress
of GDP in 2012, is a fair indicator of the industry’s forward march in our region.”
Khalifa, who will be a speaker at the GALF-2015, said: “The UAE has always been very passionate The third edition of GALF will be collocated with about its airlines and airports. Aviation is poised the 15th edition of Airport Show at the Dubai As the industry is complex and cooperation has to contribute $53 billion to the UAE economy and Philippe Merlo Serfontein Mohammed Al-Rais Massimiliano Fuksas been and will Matthys International Convention and Exhibition Centre continue to be the key toRegional navigating will generate up to 750,000 jobs by 2020. Mega Director ATM VP Airport Solutions President (Middle East) Architect Eurocontrol SITA Hill and International Studio Fuksas (DICEC). the many challenges it faces, the Airport Show projects like the Al Maktoum International, which the GALF are useful forums for discussing these will be the world’s largest airport when complete, Both the events will be the patronagePremier of issues,Aviation she stated. Leadership Conference and the Aviation District, the region’s only aviaJoin usheld at under the region’s His Highness Sheikh Ahmed bin Saeed Al Maktion and aerospace hub, underline the long-term For sponsorship opportunities, please contact Raed El Forkh - raed.elforkh@reedexpo.ae or call +971 50 653 1941 toum, President of Dubai Civilsales, Aviation His - Highness Sheikh Ahmed said:50 “The impor- commitment the UAE has towards the industry.” For delegate pleaseAuthority contact Imran Khan imran.khan@reedexpo.ae or call +971 613 7627 Visit www.globalairportleadersforum.com for more information. (DCAA), Chairman of Dubai Airports and Chair- tance of airports as global travel hubs has been man and Chief Executive of Emirates Airline and growing. In Dubai, the massive airport expan- Stating that success in tackling airspace and reguOFFICIAL HOTEL GOLD SPONSOR PARTNER SPONSOR Group. sions SESSION are needed to accommodate the growth in air latory issues are the key to sustained growth, he traffic and airport development continues to play said the Airport Show and GALF are apex platShe said the Air Transport Action Group’s (ATAG) a strategic role in our future growth agenda. The forms that facilitate meaningful debates by bringlatest figures indicate that airports support over huge and consistent aviation investments will have ing together key stakeholders, thus paving the way five million jobs worldwide, making them vital a positive impact not just for Dubai alone but for to partnerships, opportunities and issue resolution. SUPPORTERS elements of their local economies. When we con- the UAE, Gulf region and the world.” ORGANISED BY sider aviation in general, this number balloons to According to IATA, $40 billion airport invest58.1 million jobs worldwide. Aviation is a strong Khalifa Al Zaffin, Executive Chairman of Dubai ments are in the GCC states alone, with the UAE enabler of the global economy, representing 3.4 Aviation City Corporation which is developing the taking the top slot. The UAE airports handled over per cent of global GDP, she added. Dubai World Central (DWC), said the Middle East 101 million passengers last year, with Dubai tak– particularly the GCC – enjoys a natural affinity ing the major share of about 71 million passengers The industry veteran said the progress that Dubai to the aviation industry. The region owns some of followed by Abu Dhabi with 20 million passenhas made over the years to become the world- the world’s fastest growing airlines and most ac- gers. The UAE airspace had an average of 2250 class centre of aviation was “truly remarkable” tive airports. The fact that Middle East aviation daily aircraft movements in 2014, which by 2030 and “exemplary”.Angela said: “Airports are no supported – directly and indirectly – nearly two will reach 5100, making the UAE one of the busilonger simply points of departure and arrival; they million jobs and contributed $116 billion in terms est airspaces in the world. March 2015
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UAE in Focus
Dubai to see 100 million air travellers by 2020 The new systems and procedures will be implemented soon to speed up travel for arrivals, including the APIS. These systems and procedures will reduce travel time for arrivals by 60 per cent. So far, the GDRFA has invested AED100 million in smart gates to speed up the arrival and departure procedures, Major-General Mohammed Al Marri, Director-General of GDRFADubai, said. He said: “While the Dubai International Airports now have over 2,800 smart gates and counters, half of the passengers are expected to use these latest devices within five years.” The Dubai Civil Aviation Authority (DCAA) forecasts aircraft movements for both airports, Dubai International and Al Maktoum International, rising to 665,000 in 2020, bringing in millions of passengers annually.
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s the Dubai Airports saw 71 million passengers in 2014 and are expected to receive over 100 million passengers by 2020, the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFADubai) is working on an Advance Passenger Information System (APIS).GDRFA has taken
another major step to fasten and smooth passenger facilitation at the Dubai International through an electronic linkage with Emirates Airlines. The first of its kind project in the Middle East region will reduce travel time for departures by a whopping 50 per cent from the current 30 minutes when completed.
Dubai sees 13 per cent rise in business licences
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nvestors continued to pursue new opportunities in Dubai during 2014 as the emirate recorded more than 13 per cent growth in business licences issued last year, the Department of Economic Development (DED) announced.
118,953 from 114,218 during the same period. In terms of licences classified under the legal form, Limited Liability Companies (LLC) accounted 14,701 of the licences in 2014 compared to 12,549 in 2013, a growth rate of 17 per cent.
The total number of licences increased to 21,358 in 2014, with industrial licences showing the biggest increase (27 per cent) followed by commercial and tourism licences at 16 per cent each and professional licences at five per cent.
Sole proprietorship licences rose six per cent, from 5,375 in 2013 to 5,090 in 2014. Licences issued to branches of free zone companies in 2014 showed a 129 per cent increase — from 45 in 2013 to 103 in 2014.
The DED’s report on 2014 shows the number of amended licences reached 85,548 in 2014, an increase of 14 per cent, while the total licences renewed increased four per cent to reach
LLCs accounted for 67 per cent of the total licenses issued in 2014, followed by sole proprietorship companies (27 per cent) and Civil Works companies (four per cent).
March 2015
By 2020, Dubai expects to welcome over 20 million tourists for Expo 2020 and Emirates Airline will fly 70 million passengers. Overall, Dubai had direct passenger flight connections to 149 cities with populations of over one million people, creating potential export markets of over 916 million people, or 13 per cent of the world’s population.
RTA records ridership of over 531 million in 2014
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he ridership of Dubai’s public transport reached 531.350 million in 2014, according to the Roads and Transport Authority (RTA).
In 2013, it recorded 440.672 million riders and clocked a ridership of 367 million using RTA’s public transport means comprising the Metro, tram, buses and marine transit modes (abras, ferry, water taxi and water bus) in addition to taxis (Dubai Taxi and franchise companies). Mattar Al Tayer, Chairman of the Board and Executive Director of RTA, said the share of public transport in the mobility of people has jumped from six per cent in 2006 to 14 per cent in 2014 and the RTA is endeavouring to push it to as much as 20 per cent by 2020. He said there are over 35 mega projects in hand to boost the use of public transport means for the hosting of Expo 2020.
UAE in Focus
Emirates to hire over 11,000 new staff
E Al Maktoum airport records impressive growth
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total of 845,046 passengers travelled through the Al Maktoum International Airport at Dubai World Central (DWC) in 2014, its first full year of passenger operations. Dubai’s second international airport opened to passenger traffic in late October 2013. The airport saw increased passenger numbers midyear when a number of flights relocated from Dubai International during its 80-day runway refurbishment, Dubai Airports said. In
the three months ending December 31, 2014, as many as 110,920 passengers used the airport.
mirates Group, comprising Emirates Airline and dnata, plans to hire over 11,000 new staff in the coming year across its business, in line with its projected growth across six continents. This would increase its staff size by six per cent by March 2016. Approximately half of the new recruits will comprise Dubaibased cabin crew as the airline gears up to receive over 20 new
aircraft this year. It is also actively recruiting talent in areas such as Flight Operations, Engineering, Airport Services and Corporate functions. The group has over 75,000 employees in Dubai and around the world. In 2014, Emirates received nearly 483,944 online applications for over 2,000 jobs, from over 227 countries. It also receives an average of 1,500 career-related enquiries each month on its social media channels.
In 2014, all freighter operators from Dubai International moved to Al Maktoum International, which saw 758,371 tonnes handled at the airport compared to 209,209 tonnes in 2013. The number of aircraft landing and taking off in 2014 were 47,655, up 91.6 per cent compared to 24,871 in 2013.
Abu Dhabi airport sees record traffic
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bu Dhabi Airports reported that in 2014 it welcomed 20 million inbound, outbound and transfer passengers, representing an annual growth of 20 per cent — the highest in Abu Dhabi International Airport’s history. The airport handled 154,821 traffic movements, up 14.5 per cent compared to last year. Cargo throughput rose 12.8 per cent year on year, reaching 797,069 million tonnes. Ali Majid Al Mansouri, Chairman of Abu Dhabi Airports, said: “The continuing growth in passenger numbers ... strengthens Abu Dhabi’s position as a growing global transportation hub.”In 2014, two new airlines joined Abu Dhabi International Airport -the Greek Aegean Airline and Nikki Airways from Austria - and a further 12 new destinations were added during the year. The top five destinations from Abu Dhabi were India, Germany, United Kingdom, Pakistan and Saudi Arabia.
APEX meets in Abu Dhabi
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irline Passenger Experience Association (APEX), a New York-based network of the world’s leading airlines, suppliers and related companies, including Airbus and Boeing, has announced that APEX Middle East Conference will be held in Abu Dhabi from March 24 to 25. The one-of-a-kind industry event will feature exclusive access to the aviation industry’s most-influential players as they discuss strategies, examine the future of air travel and share insights on how they’ve increased business while infusing luxury into the passenger experience. This conference is important as the Gulf carriers are often regarded as the most luxurious in the sky. Passenger and airline expectations are continually rising. Etihad Airways is offering APEX guests an exclusive tour of their world-class Innovation Centre in Abu Dhabi. March 2015
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UAE in Focus
UAE airlines ask India for increase in capacity
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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
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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 (ATM), airspace and Communication,
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March 2015
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
UAE improves its global rankings
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ubai ranks number five in performance among 300 world cities in the 2014 economic ranki ngs of cities worldwide released by the Brookings Institution and JPMorgan Chase. Abu Dhabi and four other GCC cities also figured in the annual list. The UAE also figured on a new ranking in Edelman Trust Barometer, climbing five ranks from last year to top the world with 85 per cent trust index, covering trust in government, business, media and non-government organizations (NGOs). The UAE topped the government trust index with 90 per cent, two per cent more than last year. It also came first in business trust with 85 per cent, compared with 82 per cent last year. The UAE also ranked first in the trust in business innovation. The UAE is a top nation in terms of the proportion of rural population covered by at least a 3G mobile network. The UAE’s ranking jumped up 14 ranks to 32 from 46 in the sixth edition of the International Telecommunications Union (ITU) report titled Measuring the Information Society (MIS) 2014. The report classified the UAE as being among the “most dynamic” group of countries, having recorded above-average improvements in the ICT (information and communication technology) Development Index (IDI) ranking in 2014. The report stated that the UAE is the highest ranking country in the world in terms of the proportion
of the rural population covered by at least a 3G mobile network. The UAE jumped 12 places from ranking 36 in 2012 to 24 in 2013 in use sub-index and from 38 to 36 in access sub-index. The UAE ranks among the most affordable countries in mobile and fixed sub baskets, which cost less than half a per cent of GNI (gross national income). The report also ranks the UAE as sixth in the mobile cellular sub-basket and 14th in the fixed telephone sub-index. The UAE ranked second among all Arab countries in terms of having the largest proportion of its population online at 88 per cent. The MIS 2014 shows that the UAE is well above the world, Arab
states and developing countries average in terms of the IDI value. In the 2014 edition of the annual Global Talent Competitiveness Index (GTCI) by INSEAD, a leading international business school, the UAE was ranked second in the Middle East and 22nd globally. The UAE is the most connected country in the Middle East and North Africa as it is ranked 12th out of 140 countries worldwide, jumping six places since 2013, according to the third edition of the Global Connectedness Index, GCI, report by DHL. The report documents that global connectedness, measured by cross-border flows of trade, capital, information and people from 140 countries, has recovered most of its losses incurred during the financial crisis.
GDRFA-Dubai set target for Smart Gate usage He said around 138 smart gates are being installed and there are already 28 smart gates in terminal three, Dubai airport.
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he General Directorate of Residency and Foreigners Affairs in Dubai (GDRFADubai) aims to see 50 per cent of the people use the smart gates at the Dubai International Airport in the next five years.Major General Obaid Muhair Bin Surour, Deputy DirectorGeneral, GDRFA-Dubai, said the number of passengers passing through Dubai International
Airport will rise to more than 100 million by 2020, up from 71 million in 2014. “To meet the needs of the expected number of people, we believe that we must use technology, which is why Dubai airports and Emirates airline have invested AED100 million to transform Dubai airports into smart airports.”
The existing gates (the e-gates, which need ecards and fingerprints for users to pass through immigration) were also being updated and all gates will be unified to become smart gates (which depend on scanning registered barcoded passports and e-scans to pass through immigration) by 2017. Around seven million people used the Smart gates in 2014. GDRFA-D is hosting the Future of Borders International Conference from March 11 to 12 at the Ritz Carlton, Dubai International Financial Centre. Over 24 globally-renowned experts from 12 countries and international organizations will address the conference. March 2015
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Under the Patronage of
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March 2015
21
Middle East in Focus
Strongest traffic growth by ME airlines in 2014
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he Middle East carriers had the strongest annual traffic growth at 13 per cent last year, the International Air Transport Association (IATA) said. The regional airlines’ capacity rose 11.9 per cent and load factor climbed 0.8 percentage points to 78.1 per cent. Globally, demand (revenue passenger kilometers or RPKs) rose 5.9 per cent compared with 2013.
The 2014 performance was above the 10-year average growth rate of 5.6 per cent and the 5.2 per cent annual growth experienced in 2013. It said more than half of the growth in passenger travel occurred on airlines in emerging markets including the Middle East. Carriers in the Middle East posted double-digit growth. For the Middle Eastern carriers, domestic travel represents just five per cent of operations.
Jazeera Airways inks deal to sell planes
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Overall a record 3.3 billion passengers boarded aircraft last year—some 170 million more than in 2013. Total passenger traffic market shares by region of carriers in terms of RPK are: Asia-Pacific 32.8 per cent, Europe 23.7 per cent, North America 25.2 per cent, Middle East 10.0 per cent, Latin America 6.0 per cent, and Africa 2.3 per cent. IATA represents some 250 airlines comprising 84 per cent of global air traffic.
Egypt Air apply for Fast Travel programme
azeera Airways Group has announced the sale of 15 Airbus A320 aircraft for $507 million.The Kuwait-based company said it is moving to a leased aircraft operation with a focus on the passenger airline business which now contributes 81 percent to its bottom line, up from 50 percent four years ago. The buyer purchasing the fleet is a joint venture between Investec Bank and Chow Tai Fook Enterprises Limited. The transaction will result in additional cash surplus of KWD24 million and will lift Jazeera Airways Group’s cash balance to KWD82 million ($278.4 million) in 2015. The transaction is subject to regulatory approvals and is likely to be completed during the second quarter of 2015. Jazeera Airways Group chairman Marwan Boodai said: “The move to divest from the leasing business, though profitable, by selling our fleet and continuing with a leased-aircraft operation was a strategic decision to enhance the airline’s business model and focus on future growth opportunities, boost shareholder value and enhance return on equity.
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gypt Air has become the first airlines in Africa to be granted the green light for the application of the Fast Travel programme, accredited by the International Air Transport Association (IATA). The programme allows passengers to perform their travel arrangements via self-service channels, such as the internet, kiosks, smart phones or automated check in. Arrangements involve six areas check in, bags ready to go, document check, flight rebooking, self-boarding and fast recovery.
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At least four areas must be covered by airlines in order to facilitate the travel procedures and help customers in saving time and effort. Egypt Air officials said the company was and will be keen to provide more services that would make their customers’ travel experience more comfortable and easy. According to MENA news agency, officials indicated that reaching the green light for applying the programme requires 20 per cent of Egypt Air passengers to use travel self-services, which the company achieved.
Middle East in Focus
Saudi Arabia mulls privatizing airports
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he Kingdom of Saudi Arabia is considering privatizing the operation of some of its largest airports, according to Arabic business newspaper, Al Eqtisadiah.“The management and operation of some major airports with intensive local and international air traffic may soon be offered to the private sector,” General Authority of Civil Aviation (GACA) spokesman Khaled Al Khaibary was quoted as saying.
The government would retain ownership of the airports.The Haj Terminal at King Abdulaziz International Airport in Riyadh and Prince Muhammad Bin Abdulaziz Airport in Madinah already have been privatized and Taif Airport is due to be handed over to a private firm by the end of the year.Saudi Arabia has committed to a SR40 billion programme to upgrade or build more than 20 airports to help accommodate its fast growing but
underserved aviation industry. It already is part-way through privatizing Saudi Arabian Airlines’ various businesses.Air Arabia buys stake in Petra Airlines
Air Arabia plans to open a new international hub at Amman’s Queen Alia International Airport following the acquisition of a 49 percent stake in Petra Airlines.
flynas aims for profit this year
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audi Arabia’s first and only budget airline, flynas, aims to turn profitable this year for the first time since it was launched in 2007, partly by cutting costs.Saudi Arabian Airlines (Saudia), the national carrier, and privately-held flynas are currently the only
options for flying domestically in the biggest country on the Arabian peninsula. Over 75 million passengers passed through Saudi Arabia’s 28 airports in 2014, according to estimates. In 2010, SAMA Airlines was forced to halt operations after incurring a loss of about
$300 million.Flynas chief executive Paul Byrne said in an interview to Reuters that a combination of demand growth and cost-cutting was likely to push the airline into the black this year. The airline is gearing itself towards an “absolute minimum” of break-even this year and hoping for a small profit at least. flynas carried 6.5 million passengers in 2014, almost double the 3.3 million which it carried in 2013. The company now expects to expand its capacity by around 20 per cent this year, focusing on shorter-haul flights. The Riyadh-based airline, 37 per cent owned by Kingdom Holding and the rest by National Airline Services Holding, now flies to 25 destinations with a fleet of 24 aircraft.
IAFC begins to build portfolio
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ubai-based lessor International Air Finance Corporation (IAFC) has made its first acquisition with the signing of a firm purchase agreement with Airbus for five A330-200s, plus four further options. Based on list prices, the value of the transaction if all four options are exercised is approximately $2 billion.The initial five aircraft have already been placed on long-term operating lease with a carrier in the GCC region. IAFC is the fund manager of the sharia-compliant aircraft-leasing ALIF Fund, which was launched in June 2014 with financial backing from Airbus and Saudi Arabia-based Islamic Development Bank and which is eventually targeted to grow to $5 billion.
The fund will be used solely to buy and place Airbus equipment with lessees. Quantum Investment Bank and Palma Capital have been retained as exclusive placement agents for the launch of the ALIF Fund.
The Middle East accounted for five per cent of the 2014 fleet and seven per cent the air transport MRO demand, but it is poised for a 5.3 per cent CAGR over the next decade, higher than the 3.8 per cent in Latin America.
The fund will purchase both new and secondhand Airbus aircraft to be leased to airlines in the GCC and Organization of Islamic Conference (OIC) member-states.
Figures from Airbus show that 47 per cent of its aircraft deals in the Middle East in the first 11 months of last year were funded by local banks, up from 17 per cent for 2013 as a whole. Emirates Airline has about $107.5 billion worth of aircraft on order from Boeing and Airbus over the coming few years. The order books for Qatar Airways and Etihad Airways are about $57.7 billion and $28.59 billion, respectively, at list price.
According to an ICF International report, the Middle East fleet growth is the fastest of all world regions –at 5.3 per cent compound annual growth rate (CAGR) through to 2024.
March 2015
23
International
World’s first animals terminal to open at JFK Airport
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he world’s first-ever terminal for animals is set to open at the John F Kennedy Airport in 2016 and it will transport 70,000 animals a year once the $48 million facility becomes operational. The 178,000-square-foot stateof-the-art animal handling and intelligent air cargo facility, aptly called The Ark, will be built at a cost of $48 million. ARK Development, an affiliate of leading real estate company Racebrook Capital, has announced that it has signed a
30-year lease with the Port Authority of New York and New Jersey to develop, finance, construct, operate and manage the terminal at the John F Kennedy (JFK) Airport. The ARK will be the world’s only privatelyowned animal handling cargo terminal and USDA-approved, full service 24-hour airport quarantine facility for the import and export of horses, pets, birds, and livestock, it said. JFK is one of the busiest airports in the world, with some 50 million people a year landing and taking off from its runways.
Heathrow remains top Europe hub
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ondon Heathrow, Paris Charles de Gaulle and Frankfurt retained their positions as Europe’s busiest hubs, with Istanbul Ataturk jumping to fourth place over Amsterdam Schiphol as its growth surged.
Istanbul saw an 11 percent surge in passengers to 57 million, taking it past Madrid and Schiphol, with a growth rate that, while slower than last year, suggests it may rank third, or even second, in 2015.
Heathrow attracted 73.4 million travelers in 2014, a 1.4 percent jump, though growth lagged behind the 2.8 percent gain at Paris Charles de Gaulle, which drew 63.8 million people, and thirdranked Frankfurt’s 2.6 percent advance to 59.6 million.
Amsterdam Schiphol, now Europe’s No. 5 airport, posted an increase in passengers of 4.6 percent, with the 2014 total of just under 55 million failing to outstrip Istanbul Ataturk, whose owner is part-controlled by the parent of Charles de Gaulle, according to a Bloomberg report.
Sheremetyevo Airport outlines growth plans
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oscow’s Sheremetyevo Airport has announced plans to increase traffic each year, complete construction of a new terminal and third runway by 2018 and develop business aviation. Moscow Sheremeteyvo Airport’s Deputy CEO Andrey Nikulin said Aeroflot will increase traffic by at least 12 to 14 per cent each year. International passenger numbers are forecast to remain at current levels.
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15 million passengers per annum, and a third runway. These projects will be completed by 2018 as part of the programme for FIFA World Cup preparations.” By 2025, we plan to handle 600,000 tonnes of cargo. The priority next in line is the development of business aviation, he said.
Spain planning to list world’s largest airport operator
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he Spanish government plans to float a section of the world’s largest airport operator as part of a much-delayed privatization of the firm, Europe’s first major stock market listing of the year.
Domestic passenger numbers will grow at a high rate. Regardless of the situation in the world, we are expecting strong growth. Consequently there is a need to develop the domestic terminal.”
The government will list 28 per cent of the operator on the stock market and has agreed to sell another 21 per cent to three private-sector anchor investors. It will retain a narrow majority of 51 per cent in AENA, which runs 46 airports and two heliports in Spain and another 15 in Latin America, the US and Europe. AENA is the world’s largest airport operator by passenger numbers, with nearly 195.9 million traveller arrivals or departures last year.
He said: “In the north section we plan to construct a modern terminal complex with a capacity to process at least 35 million passengers per annum, initially calculated for
It was hit hard by Spain’s economic downturn and underwent a massive overhaul which included firing 20 per cent of its workers and a rise in airport taxes that have help restore it back to financial health.
March 2015
International
Chengdu plans new $14.9 billion airport
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hengdu, the largest city in southwest China, has received regulatory approval to build a 69.3 billion yuan airport, the official Sichuan Daily said, marking the country’s second major airport investment in less than a year. The new Chengdu facility will have three runways, capable of handling 40 million passengers upon its completion in 2025, according to the paper. China’s airports handled more than 754 million passengers in 2013, up 11 per cent from 2012 and 86 per cent from five years earlier. In December last year, Beijing started construction on a new $14 billion international airport capable of handling 72 million passengers and 2 million tons of cargo annually. Chengdu’s existing Shuangliu International Airport, first built in 1938, is the fifth busiest
airport in the country. Passenger throughput at the Shuangliu facility increased 12.8 per cent to over 37 million last year. It could reach its designed capacity of 40 million as early as next year. Beijing Capital International Airport, which operates the Beijing airport, the country’s largest, handled around 86 million passengers in 2014, up 2.9 per cent from a year earlier. Throughput at Shanghai’s two facilities came to 89.6 million, up 8.2 per cent year on year. Other Chinese cities are also moving to expand their airports to handle fast-rising passenger flows.
Budapest Airport sets new record in passenger traffic
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udapest Airport has announced that it has consigned all previous passenger records to the history books in 2014.
The capital airport of Hungary served 9,155,961 passengers last year, which is a solid 7.5 per cent increase against 2013. A series of new airlines started operating to new destinations from Budapest, while existing airlines either increased capacity or frequency to their earlier destinations.
The dynamic growth of passengers was spread evenly throughout the year. The share of nonSchengen traffic increased to a healthy 36 per cent, which reduces the dependence of Budapest Airport on intra-European traffic. The average load factor of airlines also rose to a record 79 per cent. Early forecasts by Budapest Airport’s aviation experts indicate a further traffic increase for2015,to surpass 9.6million passengers.
Dalian, a coastal city in the northeast, plans to build an airport on a 20.9 square-kilometer (8.07 square-mile) artificial island to be created off its coast at a total cost of 26.3 billion yuan.
Malaysia Airports handles 83.3 million passengers in 2014
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alaysia Airports Holdings (MAHB) group recorded 83.3 million passenger movements in 2014, an increase of 4.7 per cent from a year, but this was below its expectations due to the twin tragedies involving Malaysia Airlines.MAHB said this was the first-time that passenger movements exceeded the 80 million mark, but added passenger traffic performance was affected by the negative sentiment from the two “major unprecedented” MAS incidents. It said of the 83.3 million passengers, the AirAsia and Malaysia Airlines groups accounted for nearly 80 per cent whilst foreign carriers accounted for just below 15 per cent. However, in terms of growth, the largest contributor in 2014 was clearly Malindo Air, and then followed by the AirAsia and then the Malaysia Airlines groups.
March 2015
25
International
Perth Airport master plan approved
LAX becomes second-busiest airport in the US
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outing the region’s burgeoning tourism industry, Mayor Eric Garcetti announced that about 70.7 million passengers passed through Los Angeles International Airport in 2014, making it the second-busiest airport in the US.
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erth Airport Pty Ltd, the operator of Perth Airport, has welcomed the approval by the Australian Government of its 2014 Master Plan. Airport master plans are prepared by all major federal airports, every five years and outline the proposed developments for the next 20 years. The gateway says the approval of the Perth Airport Master Plan 2014 is another important milestone for the company’s plans to continue its redevelopment and investment in the airport and provide aviation infrastructure for Western Australia.
In the past six years, Perth has completed or commenced over A$1 billion (€707 million) of capital works, including 92 projects each valued over A$5 million (€3.5 million). Perth Airport is a major employment centre within the Perth metropolitan area, supporting more than 17,000 jobs and contributing an estimated A$2.61 billion to Gross Regional Product (GRP).These figures are projected to increase to more than 42,000 jobs and a GRP contribution of A$7.04 billion by 2034.
Boeing’s milestone year for commercial planes deliveries
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oeing employees helped the company set a record for the most commercial airplanes delivered in a single year at 723 in 2014, breaking the company record for a second consecutive year. The company’s sales team also booked 1,432 net orders, carrying a value of $232.7 billion at list prices, breaking the previous all-time high set in 2007. Boeing’s unfilled commercial orders stood at 5,789 at the end of the year – also a new company all-time high. Of the 1,432 net commercial orders Boeing booked in 2014, the Next-Generation 737 and 737 MAX led the way with 1,104 orders, followed by the 777 and 777X with 283 orders.
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March 2015
LAX ranked as the nation’s third-busiest in 2013, behind Hartsfield-Jackson Atlanta International and Chicago O’Hare International. The
Atlanta airport is the busiest in the world. LAX had 66.7 million passengers pass through its gates in 2013, according to the airport. The airport also processed 1.9 million tons of cargo and handled 614,917 landings and takeoffs. The 2014 passenger numbers broke the airport’s previous record of 67.3 million passengers, set in 2000.The latest tourism numbers also surpassed previous years.
Bangkok airport lead for budget-carrier connectivity
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angkok’s Don Mueang International Airport will become the best in the region for connectivity for low-cost carriers (LCCs) when it resumes full operations this year, according to the head of the largest budget carrier in Southeast Asia. Airports of Thailand (AOT), which operates six international airports in the Kingdom, has scheduled the resumption of full operations at Don Mueang this year after the completion of a major renovation worth Bt3.2 billion aimed at increasing capacity at the airport from 18 million to 30 million passengers per year. AOT is also planning to expand Suvarnabhumi Airport in a bid to increase the current capacity of 45 million people per year to 60 million. The Bt62-billion expansion projects at Suvarnabhumi will cope with passenger congestion and the continuously increasing number of flights, and will take six years to complete. Currently, more than 15 airlines, including Nok Air, Thai Lion Air and THAI Smile Airways, base their operations at Don Mueang.
March 2015
27
Airlines
Air New Zealand order for 787-9 Dreamliners
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oeing and Air New Zealand have finalized an order for two additional 787-9 Dreamliners, valued at $514 million at current list prices.
This order will eventually increase the airline’s fleet to a total of 12 787-9s, which will operate alongside 15 777-200ERs (Extended Range) and 777-300ERs.
The order, booked in 2014, comes six months after Air New Zealand celebrated the first 787-9 delivery in July last year.
Air New Zealand was the first airline in the world to take delivery of a 787-9 and one of the first to recognize the synergies of operating both the 787 and 777. Air New Zealand is the launch customer of the 787-9 and currently operates three of the aircraft in its fleet. Including today’s announcement, the airline now has nine unfilled 787-9s on order.
Christopher Luxon, CEO, Air New Zealand, said: “These new 787-9 Dreamliners will provide us with additional flexibility as we move forward with our growth plans.”
Oman Air aims for profit in 2017
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man Air is aiming to achieve profitability by the end of 2017 in line with a new 10-year strategy. The airline, which posted a loss of $285.6 million in 2014, aims to cut costs by $259.7 million in the next two years. Paul Gregorowitsch, CEO of Oman Air, said that the savings will help to reduce its reliance on government funding. He said the 21-year-old national airline aims
to become “a more modern, businessdriven enterprise” over the next 10 years. The airline will continue its ambitious expansion strategy, together with the launch of a stringent efficiency programme, entitled ‘Shape and Size’. This will see the airline make cost savings of RO100 million over the next three years, resulting in Oman Air achieving profitability by the end of 2017.
Vistara takes to the skies The airline operates flights to Delhi, Mumbai, Ahmedabad Goa and Hyderabad. With three aircrafts currently and Delhi as its operational hub, Vistara will have a fleet of five aircraft by March.
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ndia’s newest airline, Vistara, has started operations following the inaugural flight from Mumbai to Delhi. Senior executives from the parent companies – Tata Group and SIA – were onboard the first flight. The fully loaded Airbus A320-200 was branded in royal aubergine and gold.
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The airline currently has three Airbus 320 planes in its fleet, which it plans take up to five by March. As per the plan, Vistara will operate flights from its Delhi base to Goa, Bengaluru, Hyderabad, Chandigarh, Srinagar, Jammu and Patna in the first year of operations. It plans to operate 87 flights in the first year, with five leased Airbus A-320s, and then scale it up to 301 flights by the fourth year with a fleet of A320s.
Qatar Airways gets its first A350 XWB
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atar Airways has received its first A350 XWB aircraft as the global launch customer. Qatar Airways Group Chief Executive, Akbar Al Baker, said: “The delivery of this new aircraft category into the Qatar Airways’ fleet is a moment of absolute national pride for Qatar Airways and the State of Qatar. Qatar Airways will be the only airline to fly this aircraft type for the foreseeable future, and was a significant contributor to its cutting-edge design in partnership with aircraft manufacturer, Airbus. The A350 XWB signals a new chapter in aviation history and will be a brand new aircraft type projected for the industry for the next decade, of which Qatar Airways has ordered 80. The delivery is the second significant fleet milestone for the airline in almost as many months, having taken delivery of its first A380 aircraft in September last year. Qatar Airways is the only airline in the world to operate every family of Airbus’ modern airline portfolio. In addition to the 80 A350s it has on order, the airline has a current Airbus fleet comprising of the A320, A330 Freighter, A319LR, A321, A330, A340 and A380 families.
Cyprus Airways ceased operations
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he national carrier of Cyprus has ceased operations after an EU decision it must repay over 65 million euros in illegal state aid. The EU Commission said the Cypriot government had breached rules on support for struggling companies. Cyprus Airways has repeatedly received aid between 2007 and 2013. The government, which owns 93 per cent of Cyprus Airways, had searched unsuccessfully for outside investors. “The company has ceased being a viable entity, and cannot continue to operate,” said finance minister Harris Georgiades. The Commission undertook an in-depth investigation after the government in Nicosia approved repeated state aid packages to the airline.
Airlines
Turkish Airlines to expand Africa services
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urkish Airlines is planning further growth in Africa this year with at least six new destinations. Turkish already has the largest network in Africa among foreign carriers, overtaking Air France and Emirates as it has added a staggering 25 African destinations over the last three years. By the year-end, Turkish will have at least 45 destinations in its African network across 30 countries. North Africa continues to account for most of its African capacity but Turkish also has established a large presence in east, central and West Africa, according to a CAPA analysis.Turkish is able to enter relatively thin underserved African markets by offering
a myriad of connections to Europe, Asia and the Americas. Narrow-body aircraft have been the driver of its African expansion strategy as it has used 737-900ERs to open up destinations as far as seven hours from Istanbul. Turkish Airlines CEO Temel Kotil said six of the 15 destinations the carrier plans to add this year will be in Africa. This includes two unnamed destinations in Egypt, Abuja in Nigeria, Bamako in Mali, Conakry in Guinea and Juba in South Sudan. Among the six planned new African destinations Turkish so far has only set a launch date and begun sales for Abuja, which will be Turkish’s third destination in Nigeria after Lagos and Kano.
Air India to cut costs by $227 million
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he government-owned carrier Air India is attempting to cut annual costs by Rs14 billion ($226.6 million) after the government ordered the loss-making airline to improve its finances. Air India said surplus staff should be identified and overtime and expenses slashed, while flights not meeting their fuel costs should be cut. “The Ministry of Civil Aviation has directed that a 10 per cent cut be imposed...” said its Chairman and Managing Director Robit Nandan in a circular to senior staff.
Once the country’s monopoly airline, Air India has not reported an annual profit since 2007, and received a $5.8 billion bailout package from the government in 2012. The carrier now holds just 20 per cent of the passenger market. Air India pared its financial losses last year thanks to a better all-round performance, reporting a net loss of Rs53.8 billion ($894 million). All but one of India’s main halfdozen carriers are losing money, smarting from fare rivalry, high fuel costs and hefty debts. Indigo is the exception.
Pegasus launches new European destinations
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egasus Airlines, Turkey’s leading low-cost carrier continues its rapid growth with the addition of Lyon, Nice and Milan-Malpensa to its network at the end of March. Pegasus now serves 30 destinations within Turkey and a total of 89 destinations in 36 coun-
tries. Having launched its inaugural flights to Paris, St Etienne and Marseilles five years ago, Pegasus now serves five destinations in France with the addition of Lyon and Nice. Pegasus now serves four destinations in Italy, following Rome, Bologna and Milan-Bergamo.
Etihad reports passenger surge in 2014
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tihad Airways has reported a 23 percent increase in passengers carried for 2014. The airline said that it had flown almost 14.8 million passengers last year, 74 percent of the 19.9 million passengers who travelled through Abu Dhabi International Airport. “Our business model, which focuses on organic network growth, codeshare partnerships and minority equity investments in other airlines, continued to yield positive results in 2014 and surpassed our double-digit targets for passenger
and cargo growth,” said James Hogan, president and chief executive officer of Etihad Airways. Etihad Airways added that 10 additional destinations were added in 2014, while frequencies were increased on 23 existing routes. The airline’s codeshare and equity partnerships delivered over 3.5 million passengers onto Etihad Airways flights, an increase of 40 percent over the 2.5 million passengers in 2013. Etihad Airways’ fleet consisted of 110 aircraft at the end of 2014.
March 2015
29
Opinion
Customers are demanding better services Without the speed and efficiency of air cargo, global supply chains would seize up, perishable goods wouldn’t be able to reach distant markets, and vital medication or emergency aid would not make it to the most vulnerable.
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The pharmaceutical sector transports goods which are highly temperature-sensitive and a single mistake can destroy an entire batch. Mishandling is rare, but it is an unfortunate fact that more than 50 per cent of all temperature excursions occur while the package is in the hands of airlines and airports.
That’s equal to around one-third of the value of all traded goods.
It is therefore essential to establish harmonized handling procedures and strong accountability and cooperation between all the partners in the cold chain. The
By Tony Tyler Director General & CEO International Air Transport Association (IATA)
old chain transportation is facing increasing regulatory burdens which are adding cost and complexity. Each year, the industry carries 50 million tonnes of cargo worth $6.8 trillion.
expansion in both usage and production of biotechnology-derived drugs and other cold-chain products in emerging markets have drawn increased regulatory interest in recent years.
and guidance. New EU guidelines came into effect in 2013 and Australia, Canada, China, Indonesia, Ireland, Malaysia, Saudi Arabia and the US have all updated cold chain rules.
Both governments and industry have put forward practical guidance for qualifying coldchain transportation processes, sensors and packaging in much the same way as manufacturing processes are qualified as part of Good Manufacturing Practices.
The increasing number of regulations around the world is becoming a problem to manage. Implementation and compliance is complex and airlines, GHAs and forwarders are subjected to multiple audits for handling and transportation.
Many of the standards that already govern the way the industry handles time-and temperature-sensitive products have been created by IATA with the help of our industry partners.
Our customers are demanding a better service. Shippers want to see compliance, standardization, accountability and transparency across the supply chain.
A growing number of countries are issuing their own regulations
Edited excerpts from the speech at the CEIV Pharma launch at Brussels Airport
Gulf airports have good A-CDM
By Frank Brenner Director General EUROCONTROL
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he Gulf is an extremely important neighbour for us. We currently see over two hundred and fifty flights a day each way between our regions, excluding the significant number of over-flights. Over the last decade, traffic between European airports and Doha, Abu Dhabi and Dubai has grown by an average of around nine per cent a year. Compared to the growth rates in the Far
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East, that may not sound so impressive, but that’s a very large number for us in Europe.
improve performance on delays and flight efficiency while at the same time staying safe.
That’s why we are working hard with colleagues in the Gulf to see how best to develop systems on airspace, flight planning, flow management and the real-time exchange of flight information between our two regions. The need for this is widely recognized. If we can make sure our systems are compatible, we can share real time flight information not just within each region but also between regions. The necessary data are all available, but they are not yet shared at a time in the needed quality to reduce congestion and delays.
We act as the central coordinating body in Europe, operating flow management, helping to put in place airspace improvements, responding to disruptions and doing what we can to improve the performance of the network. Another aspect of our work in improving both capacity and safety is looking at wake vortices.
Airports are a major concern for us in Europe. It’s actually very hard for us to build new runways due to the environmental impacts and unfortunately the hours of operation are very restricted. Congested skies and congested airports mean that it becomes more and more difficult to
Over the years, we have worked with colleagues at Frankfurt, Charles de Gaulle and Heathrow airports – gathering data, working to understand how airframes in the real world both create and respond to vortices, and also how changes to the current separation minima will work in practice for people involved in arrival management, for the controllers and also for the pilots. It is very clear that the current categorization of aircraft into low, me-
dium and heavy is just not up to the job. Ideally we would move to dynamic pair-wise separation – where the minimum separation between two aircraft is determined by the actual weights of those individual aircraft, also taking into account the wind conditions. Unfortunately that has to be still the long term goal. DANS and EUROCONTROL have signed an agreement on cooperation on the provision of Wake data and its analysis. DANS has, with LIDAR, measured wakes for quite some time and has a rich database which will be complementary to the data from Paris, London and Frankfurt. DANS plans to implement RECAT EU in Dubai in the short term. As of today, we have fifteen major airports in Europe that have fully implemented A-CDM. The Gulf States are a very good example. Edited excerpts from the keynote speech at the World Airport Technovation Forum, Dubai
Opinion
The travel landscape evolution returning home more exhausted than when we left. Until recently, unless you were a seasoned traveler with platinum status across the board or a lavish jet setter with bottomless pockets, these were the realities that awaited you the moment you booked a ticket. By Scott Lachut Director of Research and Strategy PSFK Labs
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he excitement of going away on a trip can often be waylaid by the stresses associated with the air travel experience. We’ve all had to deal with the challenges of wrangling our bags through endless security lines, arriving at the gate only to find it’s been moved, working in close quarters with unreliable Wi-Fi and
However, with the arrival of mobile, social and wearable technologies, every level of traveler finally has access to a host of new services and luxuries that are designed to make vacations and business trips alike more enjoyable and productive. So whether you’re in the midst of planning where to go, waiting at the airport, cruising at 30,000 feet or arriving at your destination for the first time, you can now expect to be supported every step of the way.As digital technologies become more closely integrated into both consumer lifestyles and busi-
ness operations, it’s not a stretch to believe that a fully connected and personalized door-to-door experience is possible. This perfect storm of innovation is poised to completely transform our current notions of what air travel can be.
you’ll soon be able to track your suitcases from gate-to-gate, one day you may not need to bring any luggage at all, as 3D printing allows you to create custom clothing and accessories on the spot so you’ll always be traveling in style.
Imagine a near future where booking systems tailor travel results based on a combination of individual preferences and peer recommendations, while mobile assistants are always on hand to support you around decisions like what to pack and how best to respond to potential delays.
A host of new amenities will allow you to maximize your time en route, no membership required, by giving you the tools to put the finishing touches on an important pitch or network with a new business contact, all without getting up from your seat.
At the airport, wearable devices will keep all of your essential documents easily accessible as you pass through security and make your way to the plane, providing up-to-the-moment information on changes as they happen and helping you find your way. And while
If relaxation is more your thing, then you can look forward to custom entertainment options that you can watch on any device and new wellness technologies focused on delivering optimal rest and comfort. Edited excerpts from a speech at the PSFK’s report launch
Airports are long term investments As we gain a better understanding of how these tragedies occurred, I am confident that ICAO and national regulators will review safety requirements, procedures and regulations so that air travel can become safer.
By Josephine Teo Senior Minister of State Finance and Transport Republic of Singapore
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ast year was a difficult year for aviation in Southeast Asia. The Asia-Pacific region continues to be a key driver of air traffic growth.While air traffic continued to grow in the region, we witnessed three heartwrenching tragedies - Malaysia Airlines Flights 17 and 370, and Air Asia 8501.
Ultimately, our shared hope and efforts must be for aviation to emerge stronger and more resilient as a result of the improvements that will be implemented. Continued improvements in safety standards will help to support and realize the growth of air travel in the Asia-Pacific region. According to the IATA, two-thirds of the world’s air traffic growth over the next two decades will be in this region. Boeing projected that this growing demand would mean that the region will need over 13,000 new aircraft, with a value of over S$2 trillion. ASEAN is also seeing an increase in demand for air travel. By 2030,
half the population in ASEAN would be middle class. Their desire for air travel, as well as their ability to afford it, coupled with the realization of the ASEAN Open Skies Agreement means that air travel in ASEAN is poised for major expansion. ASEAN has embarked on many airport development projects to meet the anticipated growth in air travel. There are ongoing, planned or newly completed airport expansion projects in all ten ASEAN member states. In Hanoi, Vietnam, a new international terminal was opened just a few weeks ago, while in Kuala Lumpur, a new terminal, klia2, was opened in May last year. Indonesia has plans to construct 46 airports as part of the 2030 Airport Master Plan, while Myanmar is also planning to upgrade her international airports in Yangon and Mandalay, as well as another 69 domestic airports.
In Singapore, we are also gearing up. Two new terminals have been planned for at Changi Airport – Terminals 4 and 5. Terminal 4, when ready in 2017, will add 16 million passengers per year to Changi’s capacity. When Terminal 5 is completed in the mid-2020s, Changi will be able to handle 135 million passengers per year, making it one of the largest airports in the Asia-Pacific. A third runway is also in the works to cater for an increase in air traffic movements. Airports are long term investments in infrastructure, and because of that, should be designed not just to meet the needs of today, but also the needs of the future. This is a tall order for any airport planner. Edited excerpts from the speech at inter airport South East Asia, Singapore
March 2015
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In Focus
The Digital Traveller A latest study by Accenture says digital technologies and automation are changing the face of airport and border control towards the goal of seamless travel
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echnology is fast changing the way we travel by air today and the contours and pace of it will drastically change in the future with various applications and technologies allowing quick communication. We now have a new breed of travellers – Digital Travellers. About 90 percent of people carry a mobile device when they travel by air, making them what SITA calls the digital travelers. Digital travelers expect relevant journey information on their mobile devices – mobile check-in and short message service (SMS) texts for flight information are already a reality. Digital travellers expect to use their mobiles to plan and book travel, make payments, check in, clear security procedures, boarding and in-flight.
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About 90 percent of people carry a mobile device when they travel by air, making them what SITA calls the digital travellers
SITA says digital travelers provide airlines and airports the opportunity to increase revenue and improve customer service and efficiency. A latest study by Accenture suggests digital technologies and automation are changing the face of airports and borders towards the goal of seamless travel. “If there’s one thing that the digital traveller should always be, it’s connected. We found strong support for the greater use of biometrics to secure borders and enable more convenient travel and facilitate faster processing,” says Mark Crego, Global Managing Director, Border and Identity Services at Accenture.
For anyone who has waited in a queue that seems longer than their flight, the prospect of passing through a border check in less than 20 seconds is highly appealing; more time to shop, eat or simply relax before the onward journey. Travel can be both exciting and rewarding; yet often, with the additional screening and identification that has been institutionalized over the past few decades, the process that surrounds it can also disappoint. With the introduction of automated border clearance and the employment of digital technologies, reduced passenger processing time is
becoming a reality—and not at the expense of security. By creating a positive end-to-end travel experience, border management solutions can benefit both travelers and border agencies responsible for travel safety and enable admission. For the traveler, opting in to registered travel programs and providing a biometrically-enabled identity can save time and protect privacy. A recent study by Accenture found that 89 percent of people are comfortable sharing biometrics in the context of traveling across international borders and 62 percent say they would be likely to share biometric data specifically to improve border security. For border agencies, the opportunity to assess the relative risk of each traveler in advance and focus on the unknowns in real time helps deliver public service for the future.
In Focus The travel challenge
In recent years, any gains in passenger throughput have been matched by the growth in demand for travel; it is a global phenomenon. In the European Union there are more than 700 million border crossings a year, with projected air crossings likely to increase 80 percent by 2030, while visitors to the US are expected to grow at about four percent through 2018 to a total of 85 million visitors per year.
In many countries immigration, transportation security, customs, and health inspection are handled by different agencies and/or processes within a larger border management operation.
Competing demands
Airports and border agencies are faced with competing demands: managing the floor space for an increasing number of gates, being mindful of budget constraints, and accelerating passenger process-
of the solution that went beyond eGates to realizing a productive system that adds value to Dutch society and government. By implementing a series of manageable projects that create “bottom up and top down” changes, border management agencies can offer more efficient, secure movement of travelers and goods. Automated processes can simplify the travel process for both traveler and border agency. In addition, the
An Asia-Pacific industry forecast indicates that there is likely to be an additional 300 million passengers, 75 percent of which are expected to be domestic passengers. Ongoing increases in cross-border travel highlight the need to adapt border management processes using greater automation and threat analysis. But in reality, measures that may assist, such as the proposed “smart borders” recommendations from the European Union—which includes rolling out a registered traveler program and an entry and exit system for European member states—may take some time to gain agreement. In the US, it has been more than a decade since legislation was introduced for an integrated entry and exit data system and although the nation now has a biometric entry system which requires visitors to be fingerprinted on every encounter, there are still no biometric exit processes.Indeed, in its report released in May 2013, the GAO noted that unmatched arrival records—those that do not have corresponding departure records—remain open and may explain some of their backlogs of 1.6 million potential overstay records. To date, the US has bi-lateral Trusted Traveler Programs, where both countries perform background checks and honor their corresponding results, with Canada, The Netherlands, and Korea with plans to add other countries. Overall, proposals for policies to standardize across regions and geographies are both compelling and daunting.
assess risk. A “top down” approach might involve introducing a registered traveler program—to improve the security checkpoint experience— or entry and exit systems to deal with irregular border crossings and overstays. Indeed, smart gates and registered travel programs could be an effective path to enhancing biometrics acceptance at customs and border control—our research found that 80 percent of those who have used an e-gate or smart gate once are likely to do so again.
Accelerating travel
ing—all while avoiding any compromise to security. By automating travel processes using digital technologies—whether self-service kiosks or mobile check in or employing analytics or biometrics—border management agencies can facilitate legitimate travel without negatively impacting security.
Advantages of automation
From a business perspective, there are some leading practice examples of border management automation across Europe. For instance, in a project undertaken by Accenture, the successful implementation of 36 eGates at Schiphol airport in the Netherlands saw more than 210,000 passengers through the eGates in six weeks, with passengers being processed in less than 15 seconds. As a terminal with an annual expected growth in passengers of approximately five percent but no anticipated increases to its more than 400 border guards, the airport’s new approach has realized returns in respect of greater speed and efficiency, more enjoyable customer experiences and an ability to meet global travel demands. What is more, Accenture was named ICT provider of the year 2013; the award noted the innovative nature
use of analytics and reporting on passenger movement from ticket purchase, to check in, to entry and exit (through manual inspection or automated border clearance) can enhance border agencies’ ability to
Digital technologies—whether related to mobility, analytics, social or cloud—are helping to accelerate the flow and reliability of information that is the core of border management processes—from smartphone check in through to “face in the crowd” border controls. Digital technologies are changing the face of airport and border operations as we know them. By combining technological capabilities with a careful blend of automation and validation throughout the entire process, travel experiences can be enhanced.
Automating travel Departure: Use your smartphone to manage visa applications, online bookings and confirmation, or sign up for services that offer preferential customs and security clearance. Pre-enrolment in registered traveler programs speeds up security checks and enables border agencies to conduct early traveler verification. Advanced biometrics technologies verify your documents and speed your journey through automated eGates. An automated check in kiosk using biometrics validates you and your documentation. Flight: Automated checks and balances have pre-cleared you for arrival. An advanced passenger manifest means your details are shared with the destination country while you are in the air. Pre-registered baggage is tied to your personal biometrics and travel plan. Border and airport officials use cloud computing and analytics to plan resources and be more operationally efficient. Analytics drives the airport’s systems, swiftly identifying unknowns and better managing passenger processing. Detection technology scans for illegal items or banned substances. Face recognition software helps to confirm that you are who you say you are. Arrival: Border control eGates electronically check your identity and travel credentials upon arrival. The electronic baggage tag is checked against your travel plan and facial recognition checks your identity. The automated processes are faster and more efficient, offering you a new, improved travel experience.
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Cargo & Logistics
Air cargo records growth after years of stagnation
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he International Air Transport Association (IATA) has released full-year air cargo data for 2014 showing 4.5 per cent demand growth compared to 2013 measured by freight tonne kilometers (FTKs). That is a significant acceleration from the 1.4 per cent recorded in 2013 over 2012. Air cargo market expansion gathered momentum as 2014 progressed. The vast majority of the growth in 2014, howev-
Saudia launches freighter service to Italy
er, was in the Asia-Pacific and Middle East regions, which respectively contributed 46 per cent and 29 per cent of the expansion in FTKs. Growth was recorded in all other regions, but was particularly weak in Latin America. “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.
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audi Airlines Cargo has launched three new weekly flights for freight transportation from Riyadh to Milano Malpensa Airport. The three weekly B747 freighter flights connect the capital of Saudi Arabia with the Milano Malpensa Airport in northern Italy. Saudi Airlines Cargo CEO, Nabil Khojah, said: “By operating direct freighter flights into Malpensa we
Canada bans lithium metal cargo on airliners
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anada has banned shipment of lithium metal batteries as cargo on passenger flights, following the lead of the International Civil Aviation Organization (ICAO). The ICAO implemented the ban last year, after an investigation into two fires linked to the batteries aboard Boeing 787 Dreamliners in 2013. Those fires, one in the air over Japan, the other on the ground in Boston, led to the grounding of the entire Dreamliner fleet.Most Canadian airlines already have stopped accepting lithium metal batteries as cargo. Lithium metal batteries are non-rechargeable batteries used in calculators, pacemakers, hearing aids, remote car locks, and watches. They can overheat and catch fire if kept in the wrong conditions, and there have been multiple recalls of lithium metal products. Only batteries shipped separately as cargo are affected by the ban, not batteries already contained in or packed with equipment. The ban does not affect travelers’ personal devices such as laptops and smartphones, which usually use lithium ion batteries. Air carriers that service remote communities and do not operate separate cargo-only flights may be able to apply to
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Transport Canada for a certificate allowing them to ship lithium metal batteries, if they can demonstrate they have taken safety precautions. Lithium batteries have become the preferred energy source to power a wide variety of consumer goods ranging from mobile phones to children’s toys to e-bikes. Though widely used, most people are not aware that lithium batteries are dangerous goods and can pose a safety risk if not prepared in compliance with the transport regulations.
are offering first class connections from our entire network including Hong Kong, China, Bangladesh and India right to the industrial center of Italy, thus proving our commitment to the Italian market.” Saudi Airlines Cargo operates a fleet of 15 freighters and sells the belly-capacity on 145 passenger aircraft for Saudi Arabia’s flag carrier, spanning a rapidly expanding global network of 225 destinations.
Qatar Airways to order Boeing 777 Freighters
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oeing and Qatar Airways have finalized an order for four 777 freighters, valued at $1.24 billion at current list prices. The airline also has purchase rights for four additional airplanes, which when exercised will bring the combined value to $2.46 billion.The national carrier of Qatar first announced an intent to order the four 777 Freighters at the 2014 Farnborough Airshow. The airline is developing its cargo route network and the four 777 freighters are part of this expansion.It currently operates a fleet of 37 Boeing 777-300ERs (Extended Range) and 777-200LRs (Longer Range), in addition to seven 777 Freighters. “We aim to make Qatar Airways one of the world’s major air cargo players,” said Akbar Al Baker, CEO, Qatar Airways. “The 777 freighters will be a key player in enabling us to grow our footprint and economically deliver cargo further, connecting many long-haul destinations from our hub in Doha, especially with the expansion of Doha’s new freight terminal.”
Cargo & Logistics
GCC states improves ranking on logistics index
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he Agility Emerging Markets Logistics Index -2015 has revealed that while growth in the BRIC economies has slowed, other countries are picking up the slack, including the Arabian Gulf economies. The annual data-driven ranking of 45 emerging economies is accompanied by a separate survey of nearly 1,000 global logistics and supply chain executives. The integrated logistics provider Agility said the 6th edition of the Index ranked emerging markets based on their size, business conditions, infrastructure and other factors that make them attractive
for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution companies. Brazil, Russia, India, China and South Africa accounted for much of the growth and investment in emerging markets, and dominated the Index. The UAE, Qatar and Oman ranked as having the best market compatibility among the 45 countries in the Index, followed by Uruguay, Saudi Arabia and Morocco. The UAE, Malaysia, China, Oman, Saudi Arabia and Chile led in connectivity. Kuwait slipped three spots to No. 21 in the Index and Bahrain fell two to No. 24.
UPS Worldwide Express expands network
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PS has announced the expansion of its UPS Worldwide Express Freight service in 12 new origin and nine new destination countries for urgent, time-sensitive and high-value international heavyweight shipments. UPS now offers the guaranteed service - perfect for product launches, inventory shortages or equipment failure replacement parts - to 50 origin
and 51 destination countries and territories.Countries adding origin service include: Chile, Greece, Indonesia, Liechtenstein, Luxembourg, New Zealand, Portugal, Puerto Rico, Slovakia, Turkey and Vietnam. Countries adding destination service include: Chile, Indonesia, Liechtenstein, Luxembourg, New Zealand, Saudi Arabia, Turkey and Vietnam.
Exceptional year of growth for Maximus
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aximus Air, one of the biggest all-cargo air freight operators in the Middle East, has announced increased profits of 20 percent following what its chairman Homaid Al Shemmari said has been an exceptional year for the oversized cargo specialists. He said the increase in profit is primarily due to interest from European, African, and Asian markets, with positive forecasts in the global airfreight industry also contributing to sustained confidence among shippers.The company expects growth to continue
Global air freight market to grow in 2015
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Most of the growth is being captured by carriers in the dynamic and relatively business-friendly Asia-Pacific and Middle East regions.”
Tony Tyler, IATA’s Director General and CEO, said: “More goods are being traded internationally and that is fueling the growth in air freight.
“Shippers have a choice in modes of transport and, like customers everywhere, demand ever greater value. To turn the growth into sustained stronger profitability, the air cargo industry faces the challenge of investing in more efficient and higher quality processes and facilities that will give it the winning edge over its competitors,” he added.
he International Air Transport Association (IATA) expects global air freight markets to expand by 4.5 per cent this year, outpacing the projected growth for world trade of four per cent. The airlines industry association said increase in cross-border trade has been indicated to be one of the major drivers for cargo traffic in the year.
into 2015, with a number of new initiatives set to diversify services from traditional heavy cargo offerings. One of those services will be the company’s new one-stopshop. The company is also expanding into new markets, which also includes catering to requests for VIP cargo. Based in Abu Dhabi, the company operates a fleet that includes the Antonov 124 and Ilyushin 76 aircraft that are capable of carrying a diverse range of cargo to both established major airports and remote landing strips.
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Technology
UK tests fuel-efficient hybrid electric plane
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he UK has tested a new hybrid-electric aircraft in what is being touted as the first ever attempt to recharge its batteries in flight.
similar model with a petrol engine. The high point of recharging the batteries during flight was never achieved before, according to a report by Business Insider.
The University of Cambridge said the aircraft used parallel hybrid-electric propulsion system, with its electric motor working on a regular petrol motor to drive the propeller.
The aircraft has a combination of 4-stroke piston engine and an electric motor that are coupled by the same drive pulley that spins the propeller. During takeoff and climb, the requirement for maximum power is met by the engine and motor together, in powering the plane.
The fuel efficient plane can save 30 percent fuel compared to a
Lufthansa Group airlines to use biokerosene mixture
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ufthansa Group will be fueling its aircraft at Oslo Airport with a biokerosene mixture, becoming the first airline group to sign this kind of contract with Norwegian oil company Statoil Aviation. Beginning in March, Statoil will feed 2.5 million gallons of sustainably produced, certified biofuel into the tanks at Oslo Airport for one year. Lufthansa Group (Lufthansa, SWISS, Austrian Airlines, Germanwings and Brussels Airlines) operates approximately 5,000 flights from Oslo. Oslo is the world’s first large commercial airport to offer continuous provision of biofuel over a long pe-
First airline with black box data streaming
riod and to fuel aircraft with biokerosene directly from its hydrant system. Lufthansa Group said this is the next step from its previous test flights, made as part of the recently concluded burnFAIR project, toward the use of alternative fuels in regular flight operations. In 2011, Lufthansa became the first airline to run regular flight operations with a biokerosene mixture by operating an Airbus A321 between Frankfurt and Hamburg as part of the project. The A321 flew 8X-daily between Hamburg and Frankfurt from July 15 to Dec. 27, 2011. One engine was powered by a 50/50 blend of biofuel and conventional fuel.
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echnology that could have solved the mystery of the disappearance of Malaysia Airlines Flight MH370 is currently used by only one airline in the world. First Air, which flies in the Canadian Arctic, has installed AFIRS with triggered data streaming in its 18 aircraft. The system, made by Calgary tech company FLYHT Aerospace Solutions, has been around for about five years. The system has two parts. The Automated Flight Information Reporting System, or AFIRS, is a blue box about the size of a briefcase that’s located in the electrical system of an air-
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craft. The box monitors flight paths, fuel and engine levels. The system streams data from an aircraft to the ground in real time. The data streaming is automatically triggered when the AFIRS detects a predefined abnormal event, and can also be turned on by the flight crew or by ground personnel. More than 400 airplanes from 40 different airlines use the reporting system to monitor fuel and engine levels. But only First Air uses the system in tandem with the streaming system. The airline has had the reporting system in its planes for three years, and it brought in the data-streaming system in May last year.
Technology
Honeywell lab to test EMI
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oneywell has partnered with the Puerto Rico Industrial Development Company (PRIDCO) to design, develop and build a new high-technology laboratory in Puerto Rico to test Electromagnetic Interference (EMI). As aircraft become more and more entrenched in connectivity, it also becomes necessary to know exactly how electromagnetic forces, such as those from Personal Electronic Devices (PEDs), will interfere with aviation. Honeywell’s new facility aims to scrub up some of the uncertainty surrounding electronics and provide a clear picture of how and when EMI is an issue for both
GHG emissions to triple by 2050
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f commercial aviation were a country, it would rank seventh in global greenhouse gas emissions according to a recent report by the International Council on Clean Transportation (ICCT). The aviation industry is growing so quickly that its greenhouse gas (GHG) emissions are expected on present trends to triple globally by 2050. The industry itself is committed to reducing its emissions, but technological and political constraints are hindering rapid progress. By 2050, the aviation industry aims to halve its CO2 emissions compared with 2005 levels. Aviation fuel efficiency has been increasing, but it is not keeping pace with the sector’s growth.
operators and regulators. In the aerospace industry, EMI refers to electromagnetic forces that disrupt the function of aircraft equipment. To counteract EMI from uncertain atmospheric conditions, the increasing use of personal electronic devices, and a growing amount of complex equipment aboard aircrafts, the FAA and aviation industry continue to research EMI and test the Electromagnetic Capability (EMC) of equipment. Specifically, the 73,000-square-foot laboratory will be testing electromagnetic compatibility with products Honeywell designs for navigation, electromechanical and cockpit systems.
NTSB targets loss-of-control accidents
The ICCT report finds there was no improvement between 2012 and 2013, and that the gap between the most and least efficient airlines widened—with American Airlines burning 27 percent more fuel than Alaska Airlines for the same level of service.
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This gap suggests the industry could reduce GHG emissions significantly if the least efficient airlines would emulate the most efficient. Most of the reductions so far have come from carrying more passengers per flight, replacing old engines and buying new, more efficient planes.
he US National Transportation Safety Board (NTSB) has named general aviation loss-of-control accidents to its most wanted list of safety concerns, even as general aviation accident rates have declined and the industry continues to push for regulatory reforms that will make it easier to put advanced safety technology into both new and older aircraft.
Aviation needs a global policy and enforcement structure; all major airlines’ aircraft emit GHGs globally.
Safety is the top priority for every pilot on every flight, and that’s reflected in the steady decline in GA accident rates, said AOPA
Single pilots may fly future commercial jets
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arge commercial flights today are flown by a captain with a co-pilot, but a new NASA study is exploring the idea of having a single pilot on board to overcome the shortage of trained airline pilots. The National Aeronautics and Space Administration (NASA) has hired research and development group Rockwell Collins to head its Single Pilot Operations program. NASA has awarded $4 million and a four-year contract to Rockwell. The study will include running simulations, determining where technology is needed
President Mark Baker. “By putting loss-of-control accidents on its Most Wanted list, the NTSB is sustaining the focus on an issue that has been at the forefront of safety efforts by AOPA, the aviation industry, and the FAA for some time.”In 2013, the most recent year for which complete data are available, general aviation pilots in the US flew nearly 23 million hours and the total number of accidents involving helicopters and light airplanes declined 32 percent compared to a decade earlier.
and even potentially undertaking live flight trials. The aviation industry has been looking at the potential for single-pilot operations for quite some time to address concerns about future pilot shortages, but there are a number of technical, certification, and policy considerations that must be addressed. According to Rockwell Collins, the program encompasses research that is exploring concepts and technology for crew capacity, ground support and automation on commercial airlines. March 2015
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