Monthly Newsletter issued by Dubai Civil Aviation Authority
Volume 1 Issue 12 May 2014
Flying High
Inside DCAA DCAA congratulates 3 DGEP winners DCAA film wins gold medal
www.viadubaionline.com
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UAE in Focus UAE launches world’s 8 first Smart Government App stores $15 billion gold traded through Dubai in 2013
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dnata expands into aircraft 10 maintenance at Dubai airports
12 The 14th edition of Airport Show, with Global Airport Leaders’ Forum (GALF) and Travel Catering Expo (TCE) as colocated events, is a not-to-be-missed B2B platform for the aviation industry
Middle East World’s first Arabic iOS 14 travel app launched ME to spend $300 million on eGates
Open Skies contributed to UAE’s aviation growth
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International $17 billion aircraft 17 cabin interior market 17 Aviation safety performance improves in 2013
Flashback Dubai Cargo Village 26 Spectacular Success
Shayma Al Qasemy
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A bigger bag of achievement
Opinion A clear shift of growth towards Asia
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Siim Kallas
In Focus 20
Connectivity is a key strategic policy goal
Timely investment in aviation infrastructure 18
Warren Truss
Arnaud Feist
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Cargo & Logistics
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Profound transformation of Air Cargo industry 19
Frederick W Smith
Technology 24
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 Mohamad Abdulrahman 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.
Editorial, Production, PR & Marketing Nadd AlShiba PR and Event Management
Tel +971 4 25 66 707 Fax +971 4 25 66 704 info@naddalshiba.com www.naddalshiba.com
Promising Results Ahmed bin Saeed Al Maktoum
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he start of the current year brought to us the good news about the passenger and cargo movements at both Dubai International and Al Maktoum International airports posting exceptional growth during the first quarter of this year.
Dubai International Airport crossed the threshold of 18 million passengers and 613876 tonnes of cargo which represents an increase of 11.4 and five per cent respectively compared with the figures for the first quarter of 2013. Al Maktoum International Airport at Dubai World Central also recorded a big increase in the number of flights which reached 9965 during the first quarter of 2014 posting an increase of 142.8 per cent compared with last year’s corresponding period. It also handled 76816 tonnes of cargo, a 43 per cent increase compared with the first quarter of 2013. This exceptional performance comes at a time when we are about to start the Dubai International Airport’s runway upgradation programme between May and July in order to enhance the services and facilities provided for passengers and airlines and to go the extra mile towards the journey of excellence in order to reach the goal of Dubai Interna-
tional becoming the number one airport in the world for international passengers. We have already announced how we will carry out the upgradation of our two runways. We have coordinated with all our strategic partners and other organisations concerned in order to carry out the project within the approved timetable. We have asked our beloved travelers to contact the airlines to know from which airport their flight will take off during this period. It is no secret that some airlines have moved their flights from Dubai International Airport to Al Maktoum International Airport. For us, upgrading two runways is very essential in order to cope up with relentless increase and growth in passengers at Dubai International Airport which is expected to cross the 100 million passenger mark by the year 2020. This summer is going to a period fraught with challenges. We are accustomed to overcoming challenges and obstacles. When the upgradation and expansion of the runways is complete, Dubai International Airport will be able to offer more facilities and services to passengers and airlines and enable us to cope up with our massive expansion drive and also to achieve the desired goals.
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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 observes World Physical Activity Day Mohammed Abdulla Ahli
Documenting our success story
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he development of civil aviation in Dubai is one of most amazing success stories in the modern history. Dubai’s aviation progress has been phenomenal right from the days of being a geographically-convenient stopover on the British air routes in the 1930s. In October 1937, an Imperial Airways C-class flying boat carrying passengers from England to Australia landed in the Dubai Creek waters, marking the start of civil aviation industry in the emirate. Dubai aviation’s spectacular history has been documented lavishly in books and TV programmes. The success story has also been conveyed through documentary films. A documentary commissioned and supported by DCAA has bagged recognition in three categories at the 2014 awards ceremony of the New York Festival which celebrates and acknowledges the world’s best television and films with this year’s entries coming from over 50 countries. Flying A Dream: Dubai Civil Aviation Authority, 75 Years of Open Skies in the UAE, was awarded a Gold World Medal in the category of Society and Social Issues along with the Finalist Certificate in the Industrial Production (Business Theatre) and Direction categories. The award-winning documentary recounts and celebrates 75 years of Open Skies, a milestone that the DCAA reached in 2012. The informative short film documents the vision and the contribution of the leaders of Dubai that led to the exceptional growth of the aviation industry and its monumental impact on the country’s economy. It sheds light on the crucial and contributory role that DCAA plays in the growth of the civil aviation. Last year, Dubai’s aviation success story reached out to half a billion TV viewers across the world with a major documentary on the Dubai International Airport on the National Geographic Channel.Titled Dubai: Ultimate Airport, the 10-episode documentary was premiered in Dubai in September 2013 in the presence of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai. Another documentary titled Flight Into The Future which had voice-over by Academy Award-winning actor Morgan Freeman was launched at the 10th edition of Dubai Airshow in 2007. Dubai will continue to inspire and amaze the world with its pace of developments in the aviation industry in the years to come and I am sure its success stories will be captured in reels for posterity.
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taff members of Dubai Civil Aviation Authority (DCAA) led by Director General, Mohammed Abdulla Ahli, observed the World Physical Activity Day with enthusiasm on April 6 and participated in a joint brisk walk across the sprawling Dubai International Airport complex from the DCAA headquarters. Employees were offered smartphone software for calories check and distance counting. Across the world, several organisations utilized the World Physical Activity Day to promote physical activity and create awareness about the benefits of physical exercise, healthier lifestyles and prevention of diseases among the communities. DCAA’s participation in the programme is in line with its commitment to community development and employees welfare.
DCAA supports Heritage Festival
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he Dubai Civil Aviation Authority (DCAA) supported the Al Marmoom Heritage Festival which was held in Dubai from April 4 to 16 through tis support extended to . the activities conducted at the Dubai International Airport’s T3 and T2. This Heritage Festival is considered as an important step in developing the tourism sector in Dubai as a part of Vision 2020. The Heritage Festival aims to maintain and build upon the local and traditional sport of camel racing. Al Marmoom Heritage Festival was held under the patronage of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Vice President of the UAE and Ruler of Dubai. His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council and Dubai Sports Council, attended the Sheikh Maktoum bin Rashid Al Maktoum Cup at Al Marmoom Camel Racetrack in Al Lisaili on Dubai-Al Ain Road. Al Marmoom Heritage Festival is considered to be one of the most recognized camel races in the GCC region.
Inside DCAA
DCAA congratulates staff for DGEP recognition
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he Dubai Civil Aviation Authority (DCAA) has congratulated its employees for winning the Dubai Government Excellence Programme (Joint Government Project- Construction Approval Services) with Dubai Municipality. The Authority thanked the team who had worked on this project. It also congratulated the staff who were shortlisted under the DGEP categories and wished them best of luck in the future. Mohammed Al Zarooni (Distinguished Government Employee), Khalid Abdulla, (Distinguished Fieldworker Government Employee) and Nasser Al Najjar (Creative Government Employee) were shortlisted.
DGEP Awards are presented in 21 categories. DGEP, now in its 17th edition, is mandatory for every government organisation in
Dubai. The awards are evaluated by the Secretariat of the Dubai Executive Council.His Highness Sheikh Mohammed bin Rashid
Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, presented the DGEP awards to the winners.
Kazakhstan envoy meets DCAA DG
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skar Shokybayev, Consul General of the Republic of Kazakhstan in Dubai and Northern Emirates, has discussed his country’s bilateral relations with the UAE in general and Dubai particular during his recent meeting with Mohammed Abdulla Ahli, Director General of Dubai Civil Aviation Authority (DCAA). The meeting is part of the Authority’s continuous efforts to strengthen relations
and cooperation with the government and authorities at local, regional and global levels. Welcoming the envoy in his office, Mohammed Ahli utilized the opportunity to discuss a wide range of topics of mutual interest in various domains, including civil aviation. The Kazakh official thanked the authorities for the hospitality and cooperation extended to Kazakhstan’s residents and visitors to Dubai.
DCAA hosts farewell party
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he Dubai Civil Aviation Authority (DCAA) bid farewell to four of its employees, who retired from the organisation after serving it for many years. DCAA Director General, Mohammed Abdulla Ahli, spoke at the farewell ceremony at the DCAA headquarters which was also attended by officials from various government organisations working at the Dubai International Airport. Those who were given a warm send-off were Alan David Skennerton, Osmond De Silva, R R Menon, and Rania Khbais. May 2014
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Inside DCAA
DCAA documentary wins gold medal at New York Festival
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he New York Festival’s World’s Best Television and Films, a highly regarded and respected authority in the industry, has announced its 2014 winners with Ti22 Films bagging Gold World Medal in the category of Society and Social Issues for its documentary film, Flying a Dream. Commissioned and supported by the Dubai Civil Aviation Authority (DCAA), the awardwinning documentary recounts and celebrates 75 years of Open Skies, a milestone the DCAA reached in 2012. The aspirational film documents the vision and the contribution of the Leaders of the Emirate of Dubai that led to the exceptional growth of the aviation industry and its monumental impact on the country’s economy. The documentary features sound bites of and interviews with some of the influential participants in the history of the emirate’s aviation, including H.H. Sheikh Ahmed bin Saeed Al Maktoum, President of the DCAA, Chairman of Dubai Airports and Chairman and Chief Executive Emirates Airline and Group.
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Mohammed Ahli, DCAA Director General, said: “We approached Ti22 Films to produce an informative short film which we could use as part of the celebrations for our 75th year in aviation and to pay tribute to all those who have contributed to this achievement.” “What we received was a visually beautiful film that tells our unique story in a nostalgic and sentimental manner. We weren’t surprised to hear that ‘Flying a Dream’ had won the Gold World Medal as it is an outstanding film and we are delighted to be associated with it.”
Reim El Houni, founder of Ti22 Films, said: “We are very proud that Ti22 Films has received this prestigious accolade. It’s very exciting knowing that ‘Flying a Dream’ was judged and selected for the Gold World Medal by some of the world’s most-respected industry professionals, competing with entries from over 50 countries.” “What’s even more motivating is that we are one of only four companies in the Middle East who have won and the only company to win a Gold World Medal this year. This is an indication that
the Middle East film industry is gaining world-wide appreciation and interest.” A great achievement for DCAA and Ti22 Films, this recognition also instills a sense of pride for the UAE aviation industry and the country as a whole. The Festival is unquestionably one of the finest platforms to showcase the vision, passion and determination of the UAE and its rulers, echoed through its aviation activities. The award ceremony took place on the 8th April in Las Vegas. This year marks the eighth time that Ti22 Films has been awarded a World Medal for their productions, and the second Gold World Medal in this category, with the previous being for the Breast Cancer Awareness video in 2009. ‘Flying a Dream’ has also received two finalist certificates for Business Theatre and Direction, making a total of eight finalist certificates for Ti22 Films. Previous winning films have included a corporate film for ENOC, a corporate film for BASF, an event film for the Mohammed bin Rashid Foundation and the trailer for TEDx Abu Dhabi.
Inside DCAA 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
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H.E. Mohammed Abdulla Ahli Director General Dubai Civil Aviation Authority
H.E. Eng. Khalifa Al Zaffin Executive Chairman Dubai Aviation City Corporation
H.E. Maj. Gen. Pilot Ahmed Bin Thani Assistant Commander for Seaports and Airports Affairs, Dubai Police
H.E. Maj. Gen. Mohammed Al Marri Director General, General Directorate of Residency and Foreigners' Affairs-Dubai
H.E. Thani Abdulla Al Zaffin Director General & Board Member emaratech
Mr. Mustafa Sani Sener President and CEO TAV Airports Holding
Mr. Sebastien Borel Vice President Customer Affairs Airbus ProSky
Mr. Edward Christie Managing Director Smiths Detection
Mr. Luca Merando Divisional Sales & Marketing Selex ES Finmeccanica Group
Dr. Hamdi Chaouk Director General Civil Aviation Authority Lebanon
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Interview
UAE enhances its aero-political rights Open Skies contributed to UAE’s aviation growth
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he United Arab Emirates (UAE) is amongst the leading countries that practice an Open Skies policy. UAE has entered into over 160 bilateral air services agreements of which majority are open skies or liberal agreements. UAE has always advocated for air transport liberalization.
What is the role of International Affairs at the DCAA? The law that established the Dubai Civil Aviation Authority (DCAA) has assigned several functions, inter alia, to represent the Emirate of Dubai in the negotiations of bilateral or multilateral air service agreements with other States with the General Civil Aviation Authority (GCAA), to follow up the Shayma Al Qasemy
In an interview with Via Dubai, Shayma Al Qasemy, Senior Manager for International Affairs at the Air Transport & International Affairs Department of Dubai Civil Aviation Authority (DCAA) discusses the varying challenges in the exchange of aero political rights and the benefits of the air transport liberalization
implementation of bilateral and multilateral air service agreements within the Emirate, to enter into bilateral memoranda of understandings relating to air transportation through the airports of the Emirate of Dubai. These functions are carried out by the International Affairs Department of the DCAA. The department negotiates, on behalf of the Government of Dubai, bilateral and multilateral air service agreements along with the GCAA. Such agreements provide the basis for the grant of traffic rights for the designated airlines (Emirates and flydubai) to operate international air services (Agreed Services) from the airports in the Emirate of Dubai to the countries involved and also for regulatory provisions relating to such operations. Through these air service agreements, the UAE facilitate the designated carriers (Etihad Airways, Emirates, Air Arabia, flydubai and RAK Airways) to operate international air transport services from UAE to the respective countries and also for the designated airlines of other countries to operate air services to the UAE.
Why do we need to enter into such arrangements? The provisions of the Article 6 of the Convention on International Civil Aviation (Chicago Convention) permission of the other Contracting States to fly in to their territory for commercial purposes. The majority of the Contracting States to the Chicago Convention were not willing to exchange the freedoms of air, other than the first and second freedoms, in a multilateral convention. In the circumstances, it became necessary for the Contracting States to exchange the commercial rights reciprocally. Therefore, the States exchanged
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commercial through Bi-lateral Agreements or Memoranda of Understanding.
What are the types of Air Transport Agreements? The bilateral agreements could be categorized as Predetermined or the Protectionist agreements, Bermuda-type agreements and the Liberal or the Open Skies agreements. The bilateral agreements were aimed at the operation of international scheduled air services. However, these agreements have now been developed to include non-scheduled services as well. The most important bilateral agreement negotiated after the adoption of the Chicago Convention was the agreement concluded between the US and UK on 11th February 1946 in Bermuda, which is also known as Bermuda I Agreement. The reasons for the negotiations between US and UK has been prompted by the intention of the American carriers to increase the frequencies to London than the limit granted to them by the bilateral agreements made prior to the World War II. At present, there are multilateral air service agreements, such as, agreement between the United States and European Union, the agreement amongst the Asia-Pacific States that provides for multilateral exchange of traffic rights amongst the members to the said agreement. The main provisions contained in bilateral international air transport agreements appear to be similar. Provisions relating to the route schedule, designation, tariff, capacity, commercial opportunities may differ from each other. In a protectionist or pre-determined agreement, the grant of traffic rights is pre-determined by the parties. The countries that had a restrictive policy in aviation preferred this type of agreement. The Bermuda type agreements in general exchanged third and fourth freedoms and most frequently fifth freedom traffic rights between the bilateral partners.
Interview
Freedoms of the Air
These agreements do not refer to the exchange of sixth and seventh freedom traffic rights and restrict the exercise of the eighth freedom traffic rights. Liberal type (or the open skies) agreements provide for open-ended third and fourth freedom traffic rights. They often exchange fifth freedom traffic rights and specifically permit the exercise of sixth freedom traffic rights. These agreements cover non-scheduled international passenger services as well. The method of the exchange of traffic rights in a liberal agreement could be seen in the route schedule. It reads: From points behind (Country A) via (Country A) and intermediate points to a point or points in (Country B) and beyond and vice versa. The designations of airlines to operate agreed routes consequent to bilateral air service agreement are done through diplomatic channels by exchange of diplomatic notes or through a Memorandum of Understanding (MOU). Some of the bilateral agreements do not specifically refer to desig-
nation of airline(s). The Emirate of Dubai and the UAE has always been advocating an Open Skies policy. At present UAE has entered into over 83 open skies agreements, including the agreement entered into with the European Union known as the EU Horizontal Agreement.
What are the ‘Freedoms of the Air’ applicable to commercial aviation? The Paris Convention of 1919 or the Chicago Convention has dealt with the provisions relating to exclusive sovereignty over the airspace above the territory of States. The freedom to move over the air space was first referred to in the two agreements, prepared along with the Chicago Convention, namely International Air Transport Agreement and the International Air Services Transit Agreement. The first five freedoms were mentioned therein, such as, the freedom to fly over a country, the freedom to land for technical purposes, the freedom to carry passengers and
cargo from one country to another country, the freedom to carry passengers and cargo from another country to ones’ country and the freedom to carry passengers or cargo between to foreign countries. The sixth freedom is a combination of third and fourth freedom. The seventh freedom and cabotage or the eighth freedom is rarely practiced. Every bilateral air service agreement recognizes the first two freedoms and the 3rd, 4th and 5th freedoms are always exchanged between the parties. Liberal Open Skies agreements often exchanged all freedoms, except seventh to ninth freedoms. Very few countries have granted seventh freedom for commercial purpose. It is noted that some countries have been liberal in granting these freedoms for exclusive cargo transportation.
What are the benefits of Air Service Agreements? The air service agreements will provide for a clear framework to the airlines to carry out opera-
tions of international air services between UAE and other territories whilst improving the relationship between the respective States. Further the exchange of aero political rights would facilitate the airlines to plan and to carry out their commercial activities.
What are the challenges in negotiating bilateral air service agreements? The Emirate of Dubai and the UAE has been maintaining cordial relationships with other States in the exchange of traffic rights through bilateral ASAs. All of us have experienced the increase exchange of aero-political rights through Open Skies agreements. However, the liberalization of air services appears to be moving on a downward trend and deviating from liberalization to a protectionist or restrictive trend. However, the increasing demand for air travel will certainly require more traffic rights and connectivity, which will eventually benefit the travelling public. May 2014
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UAE in Focus
UAE launches world’s first Smart Government App stores
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he UAE has launched the world’s first smart government app store, with more than 100 apps developed by local and federal agencies capable of providing services to 700 users in a single location on both Android and iOS platforms. “The aim is to make smart services part of the daily life of society,” said His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai. The app store complements the transformation of UAE into a smart government by mid-2015. Sheikh Mohammed encouraged coordination between federal and local agencies to complete this transition. He called for increasing the number of smart services in the app store and encouraged citizens to make use of them.
The project was launched in coordination with Google and Apple to ensure provision of better public services through the new store. Early this year, Sheikh Mohammad revealed the strategy behind
plans to transform the Emirate of Dubai into a “Smart City”. The strategy features six key pillars and 100 initiatives covering transport, communications, infrastructure, electricity, economic services and urban planning. Under the
Seawings launches seaplane shuttle service
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eawings has launched an amphibious seaplane shuttle service to connect Al Maktoum International Airport with the Park Hyatt Hotel in the city center. The new operation has been launched in partnership with flight support provider Jetex, which operates an FBO at the airport. Al Maktoum is part of the Dubai World Central complex and is situated just over 35 miles from downtown Dubai. In off-peak traffic the drive takes 50 minutes; it can take far longer during peak times. According to Seawings, the door-to-door travel time from the Jetex FBO to the Park Hyatt Hotel will be 20 minutes. The operation’s nine-seat Cessna 208 Caravan amphibian will take off from one of the runways at Al Maktoum and land on the Dubai Creek in front of the hotel.
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Seawings expects to add service to other waterfront locations. With a minimum of four passengers booked, a flight will cost $245 per seat.
Customers can opt to take a more scenic 40-minute flight between the two points for $410 per person, said Seawings CEO Stuart Wheeler.
strategy, 1,000 government services will go smart in the next three years. The Smart City project will enable the public to deal with government departments using their smart phones “any time, any day of the year”.
UAE inks Open Skies agreement with Hungary
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he UAE has signed an Open Skies agreement with Hungary, paving the way for the start of flights between the two countries. The Air Services Agreement (ASA) has increased the prospects of Emirates Airlines and Etihad Airways launching flights to Hungary. Presently, Wizz Air is the only Hungarian airline offering direct services between the two countries. Last October it launched flights from Budapest to Al Maktoum International in DWC, becoming the first European low cost airline to fly to the UAE. Wizz Air was able to launch flights to the UAE under a MoU from the GCAA. Emirates and Etihad Airways do not currently fly to Hungary. The Hungarian government has received a letter of intent from Emirates to launch flights in the near future. The UAE has to its credit fully-liberalized or Open Skies agreements with 122 countries out of the total 164 Air Services Agreements (ASAs).
UAE in Focus
EK enhances its A380 fleet
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mirates Airlines has received two more doubledecker aircrafts, its 46th and 47th A380 in Dubai recently. The two new A380s – coded EEU and EET – are already in active service, having completed their first flights on Emirates’ Bangkok and Melbourne routes respectively. Emirates introduced its first
A380 six years ago. Emirates is the first airline to launch giant A380 double-decker service from Gatwick. Emirates was the first carrier to operate an all-A380 service out of Heathrow and is now the first to lead the service out of Gatwick – the same airport from which Emirates flew its inaugural UK flight 26 years ago.
EAC signs deal for ATC training
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mirates Aviation College (EAC) and Airways New Zealand are joining forces to deliver air traffic control training in Dubai. The agreement was signed by Russell Hulstrom, Airways New Zealand’s General Manager for Global Services and Dr Ahmad Al Ali, Vice Chancellor, Emirates Aviation College. Emirates Aviation College is part of Emirates Group and Airways is the state-owned air traffic control organisation from New Zealand. The joint venture will see Airways delivering air traffic control training to up to 200 students per year at the college’s new purpose-built campus in Dubai over the next five years.
The partnership will offer air traffic control short courses from May, and will commence ab-initio training from September. The training is accredited by the ICAO, which means graduates will be able to obtain ratings at airports around the world. More than 1700 aerospace engineers and technicians and 2000 air traffic controllers have graduated from the college, while the number of full-time students has increased from 300 to 1100 during the past five years. There is a world-wide shortage of 3000 air traffic controllers. According to Marc Baumgartner, CEO of the International Federation of Air Traffic Controllers’ Associations, the shortage is evident in all regions, including the Middle East.
Dubai Duty Free Q1 2014 sales up
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ubai Duty Free has announced first quarter sales of AED1.75 billion representing a 10 per cent increase over the same period last year and signaling a positive year ahead for the airport retailer. Sales across all three Terminals showed an upward trend, including an impressive 23 per cent increase in Terminal 2 and an 11 per cent increase in sales in Terminal 3. Perfume, liquor and Gold held on to the top three spots category-wise in the first quarter of the year.
Perfume sales reached AED286.4 million (US$78.5 million), representing a 16 per cent increase over the first quarter in 2013. Colm McLoughlin, Executive Vice Chairman of Dubai Duty Free said Terminal 3 continues to be the biggest in terms of accumulative sales and accounts for 62 per cent of our total turnover. Looking ahead, Dubai Duty Free will continue to enhance its retail operation in 2014 while continuing to plan for the opening of Concourse D next year.
Serco to train ATC personnel in UAE
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erco will continue its air navigation services for the Sharjah International Airport and offer Air Traffic Control (ATC) personnel training, under a $11.6 million contract it signed with the Sharjah Civil Aviation Department. David Greer, Serco CEO for the Middle East, India and Africa, said these services are in support of the development
and growth of the Sharjah International Airport. Serco will be responsible for training Emiratis to become qualified air traffic controllers (ATC) and ATC assistants. Serco, and its predecessor IAL, have delivered services to Sharjah International Airport since 1947 when it was a stopover point for flights en-route to India and Australia. May 2014
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UAE in Focus
$15 billion gold traded through Dubai in 2013
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ubai Metals and Commodities Centre (DMCC) Executive Chairman, Ahmed bin Sulayem, has announced that $75 billion of gold was traded through Dubai in 2013, further cementing the emirate’s global position as the global bullion hub. In 2013, almost 40 per cent of the world’s physical gold trade came through Dubai
and the value of total gold traded through Dubai grew to $75 billion, compared to $6 billion in 2003. Dubai also saw an annual trade volume increase of 73 per cent accounting for 2250 tonnes of gold. With over 220 retail outlets in operation, there are currently over 80,000 people working and living within the DMCC Free Zone. With an average of 200 companies choosing to join DMCC each month and a 94 per cent retention rate, DMCC remains the UAE’s largest and fastest growing free zone. DMCC is a strategic initiative of the Government of Dubai, was established in 2002, with a mandate to provide the physical, market and financial infrastructure required to set up a commodities market place in Dubai.
dnata expands into aircraft maintenance at Dubai airports
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n response to strong customer demand, dnata has launched aircraft line maintenance to support passenger and cargo airline operators. With the addition of these services, dnata is a one-stop-shop for customers, providing technical assistance for aircraft landing at Dubai International Airport and Al Maktoum International Airport in DWC. dnata has been providing ground handling solutions at Dubai International airport since 1959. The company currently handles 345,000 aircraft movements at Dubai airport and works with more than 145 airlines from the international hub. dnata is actively working with GCAA and other national regulatory authorities to gain approval to maintain nonEuropean registered aircraft.
AED236 billion Dubai properties transactions in 2013
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eal estate transactions rose by 53 per to AED236 billion from AED154 billion in 2013 with Indians, Britons and Pakistanis topping the list of expatriate buyers, according to the Dubai Land Department (DLD). More than 8,092 investors from India notched AED17.93 billion transactions in Dubai
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real estate during the past year, surpassing all foreigner investors in the emirate’s booming property sector. “Indian investors are very active in Dubai property sector. This volume of investment reflects their huge interest in the Dubai market and their confidence in the lucrative returns,” said Sultan Butti Bin Mejren,
Director General of the Dubai Land Department (DLD). The Dubai Land Department revealed that property transactions in 2013 jumped 53 per cent from 2012 figures. Chinese investors are now one of the fastest growing investors in the market. Meanwhile, a report by HSBC Global Research as-
serted that residential property prices in Dubai will increase by 10 to 15 per cent in 2014. In order to control flipping that was rampant during the last property boom cycle, Dubai increased property registration fees in from two per cent to four per cent of the property value in October 2013.
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Cover Story
Flying High
H.H.Sheikh Ahmed touring Airport Show-2013
The 14th edition of Airport Show, with Global Airport Leaders’ Forum (GALF) and Travel Catering Expo (TCE) as colocated events, is a not-to-be-missed B2B platform for the aviation industry.
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hen it takes off on May 11 at the Dubai International Convention and Exhibition Centre (DICEC), the Airport Show is all set to prove once again it strong standing as a successful platform for the aviation industry decision-makers to enhance their knowledge about the latest technological developments. In its successful run since 2001, the threeday B2B event for the high-potential regional aviation markets has been transformed into a top-league global airport industry platform by its organisers, Reed Exhibitions Middle East, by enhancing its role and relevance to the world’s fastest growing aviation market with an estimated $100 billion investments marked for airports expansion and new developments. More than 64 per cent of the exhibitors at the sold-out 2013 edition will be returning to this year’s show, which runs from May 11 to 13, also attracted 54 new companies from almost all the geographical regions. The 2013 edition had 225 exhibitors and six country pavilions. Last year’s show attracted over 6500 visitors from 83 countries, generating substantial business leaders and queries for 225 exhibitors who came from 35 countries. The show organisers are hopeful about crossing the threshold levels it had fixed for this year in terms of exhibitors and participants.
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2014 Held under the patronage of His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority (DCAA), Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, the region’s largest gathering of airport decision-makers, experts and suppliers is supported by DCAA, Dubai Airports, Dubai Aviation Engineering Projects (DAEP) and dnata among others. Leading international and regional trade bodies such as German Airport Technology and Equipment (GATE), Danish Airport Group, British Aviation Group, British Airport Services and Equipment Association, Swiss Airport Suppliers, Netherlands Airport Technology, UBIFRANCE, Middle East Business Aviation Association (MEBAA), UAE Society of Engineers and Supply Chain and Logistics Group have continued their support to the show. H.H. Sheikh Ahmed remarked: “Airports in the MENA region are projected to cater for 400
million passengers by 2020. Based on these forecasts, billions are being invested across the MENA region to provide the additional airport capacity required to accommodate the anticipated demand. With that in mind, we invite you to participate in Airport Show 2014 and its co-located events, GALF and Travel Catering Expo to contribute to our combined efforts to promote the ongoing success of a thriving aviation industry in the region.”
Regional Airport expansion
International Air Transport Association (IATA) said the Middle East continues to be a great success story in the aviation industry. It noted that “about $40 billion are being invested in airport infrastructure in the Arabian Gulf alone by far-sighted” governments. The Middle East region will see the strongest international passenger growth with CAGR of 6.3 per cent. Daniyal Qureshi, Director of Airport Show, said: “The Airport Show and its co-located events, GALF and TCE, provide an ideal opportunity for global companies to meet thousands of regional buyers and also be part of the business platform that has on board global industry leaders like LG, Siemens, Honeywell, ALEC, ADPi, Dar Al Handasah, Smiths Detection, Cofely Besix and Safegate.”
Cover Story
Sharp Minds, Bright Ideas Leadership plays a significant role in the airport’s overall performance. A key aspect of good airport management is the ability to identify and develop the leaders of tomorrow. Every airport needs to prepare its leadership cadres to meet the future business challenges. The challenges of future air travel and opportunities for growth for airports, along with leadership development, will be debated and deliberated at the 2nd edition of Global Airport Leaders’ Forum (GALF) that will be held alongside the Airport Show. An Advisory Board consisting of representatives from international, government and
Country Pavilions
This year’s event will feature country pavilions of the US, Canada, Germany, France, China, Germany and Switzerland. For the first time, key aviation industry players from the US and Canada will collectively showcase their wide variety of products, services and solutions through a joint pavilion at the show. The US-Canada Pavilion will feature seven exhibitors - AccessAir Systems, Aviation Parts & Support Corporation, Bradley Corporation, Hall Technical, Nilfisk-Advance, WASP and Searidge Technologies. German companies have been participating in the Airport Show over the past decade under the umbrella of German Airport Technology and Equipment (GATE). Germany Pavilion will be the biggest in terms of exhibitors – a total of 31 including 11 new ones. The pavilion organizer is the Federal Ministry for Economic Affairs and Energy. The exhibitors represent almost every segment of the aviation industry, making the pavilion strongly attractive to the visitors. At France Pavilion, eight companies, including one new, will showcase a wide range of innovative products and technologies. UBIFRANCE, the French Agency for International Business Development is the organizer of the pavilion which made its first appearance at the Airport Show eight years ago. Twelve Swiss companies,
private sector organisations provided valuable inputs in giving shape to the agenda and lineup of speakers for GALF-2014 from May 12 to 13. Reed Exhibitions Middle East, which is working with Nadd Al Shiba PR & Event Management as the Conference Producer for GALF, said there has been an overwhelming response from the aviation industry professionals to GALF which is combined with the Airport Show for powerful double-impact knowledge and insights about the world’s most promising aviation market. Leading Collaborative Sustainable Airport Growth is the theme of this year’s gathering of
including three new exhibitors, will be participating under the Swiss Pavilion. China Pavilion will see the participation of eight companies including five new ones at this year’s show. China Pavilion was first featured at the Airport Show in 2010.
high-caliber airport leaders. As many as 30 key speakers will address the forum spread out in 10 sessions, each dealing with a pertinent topic of interest to the industry professionals with Q&A opportunities for the participants.
Hosted Buyers Programme confident about reaching the 100 Decision-makers from key regional airports and aviation organisations have signed up as Hosted Buyers for Airport Show. This year’s event has already attracted 71 Hosted Buyers, up from the 60 last year and the organisers, Reed Exhibitions Middle East, are
The world on a platter The debut edition of TCE will benefit from access by over 1,000 trade visitors from all the major airports and related aviation catering businesses in the Middle East, North Africa and South Asia region. Travel Catering Expo is held under the patronage of His Highness Sheikh Ahmed bin Saeed Al Maktoum and is supported by Emirates Flight Catering, Food Point, Dubai Civil Aviation Authority and Dubai Airports. The Expo will complete the civil aviation industry’s business jigsaw and will enable the key travel catering market players to tap the high-potential region whose share in the $15 billion travel catering market has been fast rising above the global average growth of five per cent due to massive expansion of airports and airline networks. TCE has generated huge global response with key decision-makers from 21 airport operators
and companies from 9 countries confirming their participation in the Hosted Buyers programme designed to facilitate face-to-face meetings between buyers and suppliers. More than 50 exhibitors from UAE, Turkey, Jordan, China, Bahrain, France, Italy, Slovakia, Spain, UK,Canada and The Netherlands, amongst other countries are expected to make the TCE the most-appealing and beneficial platform. The countries which will be represented at the TCE under the Hosted Buyers Programme are Bahrain, Egypt, Saudi Arabia, Oman, Tunisia, UAE, Mauritius, South Africa and Libya.
mark by the time the event takes off. Last year’s Hosted Buyers Programme had gathered 60 representatives from 20 aviation authorities from 13 countries. In Airport Show 2013, there were a total of 1,128 pre-arranged meetings between hosted buyers and exhibitors. This year’s show will see Hosted Buyers from Oman, Iraq, Morocco, Sudan, Bahrain, Djibouti, Egypt, India, Jordan, Kuwait, Pakistan, Tunisia, Zimbabwe and the host country, UAE. The combined investments planned by these countries in aviation-related developments are estimated to be worth $40 billion in the short term. Daniyal said: “We are extremely pleased with the response and support we have received for the Hosted Buyers Programme. The record number of decision-makers signing up for the programme this year reflects the success of the Airport Show as a platform for regional airports to procure their requirements at their doorsteps from global manufacturers and suppliers. This also speaks volumes about the growing appeal and reach of the Airport Show.” The Hosted Buyer Programme has been established as a well-received and highly-acclaimed feature of the iconic event since 2009, providing exhibitors an unparalleled opportunity to meet key officials and decision-makers from regional airports. In its first year, 41 officials from 19 airports and 11 countries participated in the programme. May 2014
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Middle East in Focus
World’s first Arabic iOS travel app launched
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ravel search engine Wego has launched the world’s first dedicated flights and hotels travel mobile app in Arabic for iOS. In the Middle East, Wego has partnered with local travel tourism businesses including Emirates, Qatar Airways, Etihad Airways and Gulf Air. The travel search site provides over 400,000 hotel options and more than 700 low-cost and full service carrier airfares on mobile. Wego is available in more than 50 localised country sites and 30 languages. Wego refers in excess of $10 million per day of potential bookings to the websites of its travel
partners. The app for iOS comes complete with right to left language support (Arabic RTL support for android coming soon).
BA enhances ME connectivity
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ritish Airways (BA) has increased the number of flights it operates from the Middle East region to London’s Heathrow airport by 40 percent over the past five years. BA Middle East and Central Asia Manager Paolo De Renzis placed the airliner’s Middle East expansion down to “continuing high demand,” adding, “this allows us to further invest in our routes in the region.” The British flag carrier is constantly investing in its Middle East business. The airline is continually monitoring where and when it can increase routes, capacity and flying schedule in the Middle East.
“Our London to Dubai and Beirut routes are doing extremely well and we are seeing strong demand from both leisure and business travellers,” he said. He told Asharq Al Awsat: “The “investment from the Dubai government into providing a second airport in the emirate, Al Maktoum International, will help cement Dubai’s long-term future in the aviation industry for the UAE and the wider region. When fully complete, Al Maktoum International Airport will have the capacity to handle 160 million passengers, and we definitely feel this will open up more opportunities for British Airways as well as other airlines.”
Oman Air improves performance in 2013
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ccording to a report by Oman News Agency (ONA), Oman Air has witnessed passenger increases on its routes to India and Pakistan that have increased frequencies. Oman Air flies to ten Indian destinations and now operates double daily services to Chennai, Delhi, Hyderabad, Mumbai and Bangalore, with daily services to Jaipur, Kochi, Kozhikode, Lucknow and Thiruvananthapuram. Oman Air increased the number of services it offers to Islamabad and Lahore, in Pakistan, flying daily to both destinations. Oman Air currently operates Embraer E175, ATR 42 and Boeing B737s on domestic routes and, with an additional 11 B737s on order for delivery from 2014, as well as an increased international network, which will also be serviced by six new Boeing B787 Dreamliners and three additional Airbus A330s. The first of Oman Air’s new aircraft - A330s and B737-900ERs - will be arriving in 2014. In the longer term, Oman Air will be taking delivery of further A330s and B737s, as well as Boeing B787 Dreamliners, the first of which should be with Oman Air in 2015.
airBaltic explores ME opportunities
L ME to spend $300 million on eGates
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ccording to a report, airports in the Middle East will spend approximately $300 million on airport Automated Border Control (ABC) eGates and kiosks from 2014 to 2018. The study by the US-based Acuity Market Intelligence says airport operators and border control authorities are
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embracing ABC eGates and kiosks to improve both the passenger experience and the bottom. It said Middle East spending will spike in 2014, then decreases in 2015 before climbing again in 2017. The Middle East deploys a total of 2,101 airport ABC eGates and kiosks during this time.
atvian airline airBaltic, which has achieved profitability one year ahead of the initial schedule, is exploring Middle East markets for growth. Martin Gauss, CEO of airBaltic, said: “We will continue to explore opportunities in the Middle East and GCC markets. airBaltic has recently expanded its codeshare agreement with Etihad Airways to include routes from Amsterdam, Brussels, Frankfurt, Munich and Zurich to Abu Dhabi and Riga. airBaltic serves 60 destinations, including Abu Dhabi, the only destination in the GCC, from its home base in Riga. The airBaltic fleet consists of 25 aircraft - five Boeing 737-500s, eight Boeing 737300s and twelve Bombardier Q400Next Gen.
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
Tomorrow’s Airport Industry, Today
• Join the largest annual gathering of Aviation Decision-Makers, Experts and Suppliers in the Middle East, South Asia and North Africa region • Get first-hand knowledge about the US$100 billion regional airport expansion and modernization programmes from airport projects owners attending the event
Register online @ www.theairportshow.com/registernow 11 – 13 May 2014 | Dubai International Convention and Exhibition Centre www.theairportshow.com PLATINUM SPONSOR
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Inspired Engineering 16
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International
Dubai moves up on ACI ranking
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irports Council International (ACI) has released preliminary passenger traffic results for 2013 which showed six airports continuing their positions as the world’s busiest airports. Atlanta remains the world’s busiest airport followed by Beijing, London-Heathrow, TokyoHaneda, Chicago-O’Hare and Los Angeles. Dubai moved three positions up from the last year’s tenth position. Dubai passenger traffic grew by over 15 per cent in 2013.
Both the Middle East and AsiaPacific posted robust growth in passenger traffic at 9.2 per cent and 7.4 per cent respectively. Rafael Echevarne, ACI World’s Economics Director, said: “The airport that really makes its mark in 2013 is Dubai. Aviation’s nucleus appears to be moving eastward. With double-digit growth rates in passenger traffic for 2013, Dubai is likely to move up several spots again in the 2014 rankings, solidifying its status as the major hub connecting the east and west.”
Myanmar sees stellar aviation growth
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Aircraft cabin interior market worth $17 billion by 2019
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ccording to a new market research report, published by Markets and Markets, the total Commercial Aircraft Cabin Interior Market is estimated at $12,853 million in 2014 expected to reach $17,195 million in 2019. The Middle East is among the fastest growing regions for the
Commercial Aircraft Cabin Interior Market, mainly, due to the increasing number of aircrafts orders and increasing air travel in this region. The major challenges for this particular industry will be to control emissions from aircraft, poor quality of equipment, and increase in fuel prices.
ince the opening up of its economy, Myanmar has seen a sharp increase in the number of business and leisure arrivals. According to Department of Civil Aviation (DCA of Myanmar), the total number of air passengers in 2030 is likely to rise to 30 million. In addition, Myanmar’s fourth international airport, Harthawaddy International Airport, is expected to start its operations in 2018. Myanmar is re-launching a tender to build a second international airport near its main city after the winning South Korean bid hit problems funding the $1.5 billion project. Myanmar says it needs to ease the pressure on Yangon’s current airport, which has seen a surge in foreign arrivals in step with the country’s opening-up. Yangon International Airport currently has a capacity of only 2.7 million passengers annually, but it handled 3.7 million people in 2013. According to figures from the Ministry of Tourism, more than two million tourists visited Myanmar in 2013 – a two-fold increase on 2012.
Aviation safety performance improves in 2013
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he International Air Transport Association (IATA) has reported that the year 2013 witnessed 210 fatalities from commercial aviation accidents, reduced from 414 in 2012 and the five year average of 517. There was one accident for every 2.4 million flights as per the comparisons made for Western-built jet accident rate. The report said more than three billion people flew safely on 36.4 million flights (29.5 million by jet, 6.9 million by turboprop).
There were 81 accidents (all aircraft types, Eastern and Western built), up from 75 in 2012, but below the five-year average of 86 per year. There were 16 fatal accidents (all aircraft types) versus 15 in 2012 and the fiveyear average of 19. IATA Operational Safety Audit Registry (IOSA) has 391 airlines. For IATA’s 240 airlines, IOSA is a requirement for membership in the association. About 151 non-member airlines are also on the registry. May 2014
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Opinion
A clear shift of growth towards Asia
Siim Kallas Vice President European Commission
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viation could be defined as ‘connectivity on a global scale’. Improving connectivity leads to more productivity, which in turn attracts more investment into a national or regional economy. Connectivity is an effective engine for increasing both competitiveness and economic growth.
That is particularly true in Europe, where we rely on aviation to provide the international transport links that make us a global hub of social and economic connectivity, and to compete on the world stage. International aviation is going through a period of unprecedented change. It is unbelievably dramatic and rapid. And it shows no signs of slowing down. There is a clear shift of growth towards Asia, and particularly to the new Middle East hubs like Abu Dhabi, Doha and Dubai. Due to their below-average growth rates, EU carriers operating internationally will be losing market share to non-EU airlines in most regions. They face low profitability and growth in a market with increasingly fierce competition – based on low profit margins squeezed from high fixed costs. In 2003, EU carriers had a market share of 29 per cent of all inter-
continental capacity in the world. By 2025, this share is expected to fall to 20 per cent. European airlines must have the chance to get access to new markets and business opportunities. Europe needs to maintain a strong and competitive aviation industry, with EU-based carriers right at the centre of the global network that connects the EU with the rest of the world. We also need EU airports to remain at the heart of world traffic flows, and avoid becoming restricted destinations with only limited onward connections. Air traffic in Europe will nearly double by 2030 and on current trends, 19 major European airports will by then be at saturation point. And the Single Sky project needs to succeed and be implemented as soon as possible. Our air traffic management systems should be as cutting-edge and optimised as pos-
sible, which is what we are working towards. Our aim is to conclude EU air transport agreements with major and increasingly important partners such as China, the Gulf States, Japan and India. The total economic benefits of all these agreements are estimated at €12 billion per year. In the future, I would hope that we might conclude the world’s first comprehensive region-to-region aviation agreement between EU and ASEAN. Its potential economic benefits are estimated at up to €900 million a year. We are now working to complete a larger integrated aviation area with our neighbours by 2015: an area that will ultimately cover 50 countries with a combined population of one billion people. Excerpts from speech at the European Policy Centre in Brussels
Timely investment in aviation infrastructure
Warren Truss Deputy Prime Minister Australia
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t is no secret that we want to be known as a transport infrastructure government. We are determined to encourage the expansion of private sector investment and engagement in transport infrastructure. We have committed $35.5 billion in transport infrastructure investments over six years. The better we plan our transport and infrastructure investments, the more certain we can be of good investment outcomes. The government understands that aviation is crucial to Aus-
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tralia’s national interests—and that is why we are determined to remove the particular pressures created by the outdated restrictions on Qantas under the Qantas Sale Act. Earlier, we introduced legislation into Parliament to remove the foreign ownership restrictions and conditions on Qantas’ business operations under the Act. Qantas will therefore continue to access the capacity and traffic rights negotiate by the Government for designated Australian carriers. Our actions are a sensible response to changing circumstances—they in fact reflect our commitment to a strong Australian-based aviation industry. It is also important to consider how broader trends will shape the futures of aviation and tourism. Domestic demand for aviation and tourism has also grown substantially—in 2013, the total passengers carried within Australia grew by 1.8 per cent to 57.38 million. These figures underline how closely twinned the tourism and aviation industries are—and the absolute im-
portance of ensuring that Australia’s aviation environment can sustain the future growth of both industries. This growth depends on good commercial decisions, and on the quality and capacity of Australia’s airports, and the other highly visible infrastructure we associate with aviation. It also depends on less visible but equally vital successes such as negotiating international aviation agreements that facilitate growth in markets. The government remains committed to an Australian-based aviation industry which is safe, competitive and productive in both domestic and international markets. The government is committed to further liberalising global aviation markets. We are working to expand the access of Australian airlines into foreign markets—especially through bilateral air services agreement negotiations. This will help expand developing markets and ensure our aviation capacity meets future demand.
All major airports around Australia face the challenge of maintaining timely investment in infrastructure to meet this demand. Brisbane Airport is undergoing significant demand pressures. The Australian government is committed to selecting a site for Sydney’s second airport. The site selection decision will ensure that Australia’s main gateway and foremost international tourist destination—can meet future demand. A second Sydney Airport will complement—not replace— Kingsford-Smith Airport—which will continue to be a critical part of Australia’s transport infrastructure. The transport and tourism industries have achieved a great deal and have helped shape modern Australia—and they have great potential to achieve much more. Excerpts from keynote address at Tourism and Transport Forum Leadership Summit, Canberra
Opinion
Connectivity - A key strategic policy goal
Arnaud Feist President ACI Europe
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ince last Spring, we have seen traffic figures improving slowly but surely, and we are looking at 2014 with some optimism. The European economy has stabilized and is also – finally improving. Along with a more dynamic recovery in the US and still dynamic growth in China as well as other newly emerged markets, this should help support
demand for air transport in the coming months. Having said that, we still see significant downside risks – with a lot of volatility and unpredictability. Many European airlines are fighting for survival – and the risk of more bankruptcies this year is real. At the same time, others are very successful - growing fast with often disruptive impacts. As the CEO of Brussels Airport Company, I am experiencing that myself at Brussels Airport, where Ryanair is opening a new base – a move that was completely unexpected and unsolicited and that is at odds with our own strategy to build a hub for Star Alliance. With more than 200 flights a week added on routes already operated by our other airline partners, I can assure you that the disruptive impact will be very significant.
Ultimately, what we as airports are experiencing is both constant downward pressure on our charges and slower growth prospects. This means that we are facing a deteriorating climate for our aeronautical revenues and that commercial activities are becoming ever more important. This also means more focus on the short-term and less ability to keep investing for the long-term, to meet future demand for air transport, both in terms of capacity and quality. Indeed, for the period 2012 to 2017, Europe’s airports have already reduced their investment plans by an impressive €7 billion – a trend which saw EUROCONTROL sound an alarm last year. It estimates that by 2035, the lack of airport capacity and unprecedented congestion on the ground will result in more than 230 million passengers unable to fly.
This should be a top concern for Europe – especially at a time when our economies are increasingly dependent on their trading capabilities and competiveness with the rest of the world. The current shift in the global economy means that connectivity needs to become a key strategic policy goal for Europe – not just intra-European connectivity, but also external connectivity. It goes without saying that airports and aviation should be at the core of this policy. At ACI Europe, we will work in the coming months on an agenda for Europe’s connectivity – and this will be a cornerstone of our constructive engagement with the new European Parliament and the new European Commission. Excerpts from speech at the ACI Europe Cocktail at European Parliament in Brussels
Profound transformation of Air Cargo industry
Frederick W Smith Chairman & CEO FedEx Corporation
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he air cargo industry is in the midst of a profound transformation that requires new ways of thinking about our future. However, that future is unlikely to be analogous to the industry’s “Golden Age” of the 1990s and early 21st century. Trans-Pacific and Asia-toEurope air shipments of electronics and auto parts were integral to the
development of sprawling supply chains throughout the world. High value-added products—particularly electronics—saw air cargo grow on average at two and a half times the rate of world GDP for two decades. Unfortunately, a number of factors that produced this success story have reversed since the Great Recession of 2008. One big reason trade is no longer growing rapidly is the rise of protectionism, not just in China but around the world. Over the last few years almost every trading nation has instituted policies that permit greater regulatory intervention in the trade processes—often justified by overzealous security considerations. In many other cases, the protectionism is overt and politically driven. History shows that protectionism—whatever the justification—stifles competitiveness, innovation, and consumer choice. Another unique factor in the air cargo sector is the
miniaturization of electronics which represents about half the tonnage transported by air. Not only is there less weight being transported, but price reductions driven by technology have reduced the value-per-pound. New product introductions that require large main-deck freighters have slowed considerably as the market for electronic devices has been satiated. The rapid growth of international air passenger traffic and modern efficient long-range twins such as the B777, A330, B787, A350 and the recently launched 777-8/9 have created an increasing amount of low-cost underbelly lift and more origin and destination pairs, particularly over the rapidly growing hub networks in the Middle East. The global air express business continues to grow as does global sea trade, with both sectors gnawing at the traditional airport-to-airport air cargo market. Moreover, yields on
this type of commodity traffic have been declining in real terms over 20 years making traditional freighter services’ profitability very challenging. The macroeconomic picture for world trade is not good in the near term. Last year, the top 20 world economies passed 23 per cent more protectionist measures than in 2009. Over the last several years, trade growth has decelerated from two and a half times world GDP in the first part of this century to much lower levels. All of us may wish for a return of the halcyon days of double-digit air cargo growth, but we are creatures of much larger forces and the winds are not favorable. A transformed air cargo industry can deliver the innovative services and efficient logistics support the global market requires. Excerpts from speech at IATA’s 8th World Cargo Symposium, Los Angeles, California
May 2014
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In Focus
A bigger bag of achievement The rate of mishandled bags in 2013 was 6.96 bags per thousand passengers, which is half the rate reported 10 years ago. A staggering 21.8 million mishandled bags were reported in 2013. Airlines lose roughly 4$ billion annually on lost luggage, according to SITA.
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ost luggage is one of the banes of modern air travel, right up there with flight delays, long security lines and overbooked flights. This nightmare affects millions of airline passengers a year. The rate of mishandled bags in 2013 was 6.96 bags per thousand passengers, which is half the rate reported 10 years ago. Although eliminating mishandled bags altogether is a near-impossibility, some airlines and airports have successfully cut down on missing bags. Airline baggage delivery hit a record high in 2013, with the mishandling rate dropping by 21.2 per cent year-on-year, according to The Baggage Report 2013 by SITA. The report, 10th in a series, offered insights into the global problem and the successes in mitigating the everyday nightmare. From 2012 to 2013, the total annual cost of mishandled bags fell 19.9 per cent, which means the cost of mishandled bags is now 50 per cent less than in 2007, when the number of mishandled bags peaked at 18.88 per thousand passengers. The latest year-on-year improvement was recorded as passenger numbers increased by more than five per cent globally. In total, 21.8 million mishandled bags were reported in 2013. Transfer bags comprise the majority of delayed bags, although as last year, the industry continues to make inroads on reducing the problem. Francesco Violante, CEO, SITA, said: “The industry has joined together to tackle the problem of mishandled bags, and we have seen great results. There is still more work to do, but 2013 was the best year ever, showing the benefits of this collaboration.” SITA continues to invest in innovative technologies to drive the mishandling rate still lower. This includes self-service solutions for
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passengers such as self-service bag-drops and its BagJourney application programming interface, which provides end-to-end baggage tracking for integration into airline and airport systems, such as smartphone and tablet apps. The 2013 figure of 6.96 mishandled bags per thousand passengers is a new low since SITA have been tracking the data and represents a significant fall on the figure of 13.15 per thousand passengers in 2003. During that time the number of people using air transport has grown in excess of 65 per cent. The annual bag mishandling costs for the airline industry de-
creased to $2.09 billion, a healthy reduction of almost 20 per cent on the previous year. Behind the progress has been a cross-industry effort driving technology innovations, such as advances in bag scanning, handling, and tracking, as well as initiatives such as IATA’s Baggage Improvement Program, now the InBag program. A large part of the improvement in handling transfer baggage is down to greater messaging reliability and better segregation of bags with short connection times, as well as the introduction of early bag stores and smart mobile devices for key operational staff.
SITA is continuing to invest in intelligent technology to improve the bag handling process. One such solution is BagJourney, an application programming interface (API) that enables end-to-end baggage tracking to be integrated into existing smartphone and tablet apps. For passengers, this will mean more real-time tracking information about their bags. In 2008, IATA launched its Baggage Improvement Program, an industry-wide action plan, which ran until 2012. The global initiative was designed to help airports and airlines identify areas where they could reduce bag mishandling. The aim was to achieve a 50 per cent reduction in the mishandled bag rate. The second half of the decade has consequently experienced healthy decreases in total mishandled bags.
The Airport Perspective
The world’s top 100 airports have made significant improvements in bag handling performance in 2013, with a global decrease in mishandled bags of 12.96 per cent. There continues to be a correlation between the size of the airport and the level of bag mishandling (although it should also be noted that greater numbers of passengers increase the pressure on airport baggage operations). Nevertheless, among the very largest, Tier 1 airports, with traffic in excess of 25 million passengers per annum, the rate of mishandling is dropping faster than among their Tier 2 counterparts with traffic 10-25 million passengers. Overall rates of bag mishandling among Tier 1 airports reduced by 14.56 per cent, compared to a reduction of 7.72 per cent among Tier 2 airports. The transformation in transfer bag performance has been helped by greater messaging reliability, enabling bags with short connec-
In Focus
tion times to be identified before they arrive at the airport. At the other end of the transfer timescale, handling of bags with three hours or more before the connecting flight has been improved by the introduction of early bag stores. Another trend that has helped to ensure better transfer bag efficiencies has been the introduction of smart mobile devices such as tablets for key operational staff.
Hub airports
The world’s busiest airports are the hubs for connecting traffic. Handling substantial numbers of passengers creates its own pressures on airport systems, including bag handling and, in particular, on processing transfer bags. IATA’s vision for Fast Travel to deliver a stress-free and seamless journey includes the goal to enable flight details to be uploaded to an electronic tag via a smartphone or at the airport. IATA’s Permanent Tag Working Group is tasked with establishing the standards behind the development so all airlines can read and share the data critical to the interline baggage processes. Another vision for future improvements to the passen-
ger experience is for airlines and airports to take the stress out of getting luggage to and from the airport by offering city-center bag-drops and destination delivery. The majority of airlines globally use SITA WorldTracer to report delayed luggage. SITA has also developed a WorldTracer tablet app, to be launched in 2014. A Pro-Rates Group in IATA is currently working on a simplified set of prorates rules that could be used by all airlines for compensation to passengers. For the passenger, the level of compensation for a mishandled bag will depend on whether the flight was domestic or international and is governed by either the Montreal Convention or the Warsaw Convention, depending on the countries in which their journey started and ended. IATA estimates that the cost to process a bag is $10 per journey. It means the industry is spending $31 billion on moving bags when global ancillary revenue from baggage is around $10 billion – estimated at a quarter of the $42.5 billion total airline ancillary revenues.
Dubai angle
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nata - the ground handler at Dubai International and Al Maktoum International - has set itself significant bag mishandling reduction goals for the next ten years, between 1.5 and three per thousand bags, depending on the terminal and its infrastructure, The Baggage Report said. Bernd Struck, Vice President of Baggage Services at dnata, explained thus: “Emirates operates a fleet of 212 wide body aircraft, which depart from Dubai International every day, so all aircraft are containerized, and it has 70 per cent of the online transfer volumes. The challenge for dnata teams is to bring these bags from the aircraft, put them through bag sort and x-ray in the bag handling area and return them to their connecting flights in a turn-around time of 75 minutes.” dnata has made a lot of investment in process and infrastructure. “We need sufficient input capacity so bags can be put into the system, dealt with for sortation etc., and discharged again. It is important we use as much automation as possible, based on IATA standards like bag source messages and bag service messages. We have developed a lot of internal IT infrastructure in order to optimize the processes. With
our Baggage Excellence & Location Tool (BELT) front-end system we can monitor the whereabouts of a bag in the Emirates’ network system across the world in real-time.” Terminal 2 is the home of flydubai, for which dnata has also been providing ground and baggage handling services since it started about four years ago as a low cost carrier, but has meanwhile established its status as a transfer carrier. It has about 36 airplanes operating and in the next few years it has plans to expand to about 50 and it has another 150 on order. It flies to destinations within four-five hours ratio of Dubai and connects passengers to other flydubai destinations. We built a new facility last year where the baggage-handling is a dedicated system for the airline. The connection time between flights and the baggage handling system is 60 minutes and baggage, which is noncontainerized, has to be sorted and a five-level [security] screening performed, he said. He said: “The biggest challenge is how to handle non-standard sized baggage (or out of gauge bags). These kinds of bags don’t like sharp curves in the baggage handling system or steep declines in the belt.
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Cargo & Logistics
Canada’s new air cargo logistics facility to open in 2015
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ohn C. Munro Hamilton International Airport’s $12 million Air Cargo Logistics Facility is getting ready to take off in 2015. The joint partnership project will cater to niche product markets such as pharmaceutical and biomedical industries, automobile manufacturing and perishable goods. A focus on developing customized solutions for the efficient movement of such goods in and out of the southern Ontario region of Canada will further support the development of clean industries in and around the Hamilton area. The facility will add to Hamilton’s strength as a multi-modal gateway for goods movement.
John C. Munro Hamilton International Airport is a growing passenger airport and thriving cargo hub. In 2012, over 350,000 passengers used
UAE shines in WB global logistics ranking
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he UAE, along with other GCC states, has improved its global logistics ranking in 2013. The Arab world’s second biggest economy is among the 160 countries which featured on the Logistics Performance Index (LPI) for 2014 issued by the World Bank Group. The report, Connecting to Compete 2014: Trade Logistics in the Global Economy, ranks 160 countries on a number of dimensions of trade -- including customs performance, infrastructure quality, and timeliness of shipments -- that have increasingly been recognized as important to development. The index measures how countries have performed in different areas relating to the flow of goods, such as freight forwarding, transport infrastructure quality, timely deliveries, freight costs and others.
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May 2014
The UAE ranked 27th, Qatar 29th, Saudi Arabia 49th, Bahrain 52nd, Kuwait 56th and Oman 59th. The UAE logistics market is expected to be valued at $9.3 billion in 2014, according to a report compiled by Dubai FDI, the foreign investment agency in the Department of Economic Development (DED). In the Agility Emerging Markets Logistics Index 2014, Gulf countries - Qatar, UAE, Oman, Saudi Arabia and Kuwait, along with Jordan, dominate the Market Compatibility portion, which looks at whether conditions are favorable for business and trade. The Agility Index ranks 45 major emerging markets and identifies factors that make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution companies.
Hamilton International and over 76,000 tonnes of cargo was moved through the airport, making it one of the largest cargo Airports in Canada.
Cargojet, Canada’s cargo airline, will occupy approximately half of the 77,000 square foot facility for both office and dedicated warehouse space.
UPS eyes Middle East growth
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PS, one of the largest shipment/logistics companies in the world, is bullish on the potential growth of its business in the Middle East and is making significant investments. The company, which has been established in the UAE since 1995, has recently expanded its contract logistics facility in Jebel Ali Free Zone to 14,771 square meters. In addition to the expanded facility, UPS has placed senior staff at a regional headquarters in Dubai that will oversee market opportunities in the Middle East and India. The new facility is designed to handle “high-turnover and highvalue” products, including a 21,000-square-foot temperature-controlled facility to handle medical devices and pharmaceuticals. Dubai is a major transit point for these products coming from the US and Europe and bound for Africa.
Another promising growth sector is the oil and gas industry. Products moved by air include small machinery parts, mechanical equipment and a lot of documents. Movement of luxury automobiles is another strong business. UPS hopes to expand in perishables out of Africa to Dubai with the idea of duplicating its thriving Latin America-to-Miami airlift. UPS flies a total of 16 B747 and MD11 flights into Dubai. These planes have 39 positions for palletized or containerized freight. The company also occasionally uses a B767. As demand warrants, UPS also contracts with carriers in the region such as Emirates, Etihad Airways and Qatar Airways. Founded in 1907 as a messenger company in the US, United Parcel Services (UPS) has grown into a multi-billion-dollar corporation by clearly focusing on the goal of enabling commerce around the globe.
Cargo & Logistics
DB Schenker expanding contract logistics capacity
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B Schenker has started construction work on its upcoming facility in Dubai Logistics City in Dubai World Central, planned to offer general cargo warehousing, distribution and value-added services. The state-of-the art logistics center will have a warehouse space of 8,500 square meters and a total storage capacity of 8,500 pallet positions with two mezzanine levels dedicated for value added services and spare parts operations. The main goods to be processed in the warehouse are automotive, industrial spare parts as well as fashion items.
Operations will have a focus on value-added services. The world’s second largest transportation and logistics services provider intends to capitalize on DWC ‘s multimodal capabilities. The transportation and logistics arm of the German railway company Deutsche Bahn AG said the facility will be used to bundle, temporarily store and process onward carriage cargo shipments for industrial and trade customers. Its state-of-the art warehouse will be 25 per cent temperature-controlled and the rest of the environment will be ambient in nature.
Dubai aims to be a prime international logistical gateway D ubai Maritime City Authority (DMCA) has announced its firm commitment to supporting the Dubai Maritime Vision 2030 plan of creating a vibrant and safe maritime environment in the next two decades and establishing Dubai as a leading global maritime hub. Sultan Ahmed bin Sulayem, Chairman of Dubai Ports, Customs, and Free Zones Corporation and DMCA, said: "Dubai Maritime Vision 2030 is of strategic significance as it underpins efforts
to improve the local maritime sector. It also emphasizes how the competitive potentials of Dubai place it among the leading logistics and maritime centres in the Middle East and North Africa region and in the whole world." The Dubai Maritime Vision 2030’s key goals include: consolidate Dubai's position as the foremost International Maritime Centre based on its competitive potentials, especially in terms of modern infrastructures, strategic location, customs facilities, and
high-level services and elevate Dubai's status as a prime international logistical gateway and a transhipment hub backed by rapidly increasing passenger and freight transport volumes and a multifaceted trade corridor. It also aims to create a smart maritime sector with seamless integrated operations in line with Dubai's rapid transformation into a smart city. He said: “Dubai is all set to create an integrated and vibrant maritime sector after its historic win as Expo 2020 host. This welcome
development will add impetus to support for the ambitious vision of the UAE's leadership to nurture one of the world's best countries. We look forward to realize the Dubai Maritime Vision 2030 which will open up new opportunities for further developing infrastructures according to the highest quality and excellence standards. This will pave the way for more achievements that will further reinforce the UAE's leadership in the regional and international arena,".
DHL increase ME connectivity through capacity sharing
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HL, the world’s leading express and logistics provider, and Etihad Cargo have agreed to share capacity on DHL’s new five times a week freighter service operating through Abu Dhabi. The new DHL operations to the capital will operate using DHL’s Airbus A300-600 freighter fleet, and will route to and from Bahrain, Lahore, and Karachi. The DHL Abu Dhabi service started in January
2014 and has already resulted in improved transit times for DHL cargo coming to the UAE from cities in Europe, the Middle East, Asia and North America. DHL is the global market leader in the logistics industry. Part of Deutsche Post DHL, the global network composed of more than 220 countries and territories and about 285,000 employees worldwide. May 2014
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Technology
Smartworld sees huge potential in ME aviation
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martworld, a leading master systems integrator and next generation ICT service provider, has expressed confidence in leveraging its Special Airport Systems (SAS) offerings across the Middle East region. The SAS offerings bring on board a vast amount of knowledge and experience in airport systems integration and its eventual infrastructure services management. Smartworld has successfully implemented projects for
airports like Al Maktoum International Airport in DWC and Dubai International Airport’s Terminal 2. “These are exciting times for the Middle East region’s aviation industry. This growth is accompanied with the increased demand for more advanced, cutting-edge ICT technology to help facilitate improved airport operations,” said Wesam Jammoul, Projects and Consultancy Services Director, Smartworld.
New Chinese airport gets NCR technology
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hina’s Shenzhen Baoan International Airport has selected NCR Corporation to provide a self-service airport check-in solution for its new T3 terminal. Fully compatible with the Common Use SelfService (CUSS) platform and applications used by the airport, the kiosks allow passengers to process check-in, check flight information, apply loyalty membership and scan boarding passes. Shenzhen Baoan is the first modern international airport combining transportation by sea, land and air in China.
irbus ProSky, the air traffic management (ATM) subsidiary of Airbus, has established a new regional headquarters in the UAE, serving as the focal point for the Middle East and North Africa. From this new base, a dedicated team of ATM experts will evaluate the current airspace across the region and work with the governments in partnership to identify and address their needs. Since its inception in 2011, Airbus ProSky has solidified its global presence by developing regional offices around the world, including the most recent AsiaPacific office in Singapore.
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May 2014
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oneywell Aerospace’s SmartPath Ground-Based Augmentation System (GBAS), which reduces weather-related delays, lowers air traffic noise and improves flight efficiency, has been selected for St Helena’s airport, due to open in 2016. SmartPath is the world’s only FAA-certified GBAS, a technology that augments Global Positioning System (GPS) signals to make them suitable for precision approach and landing. It overcomes many of the limitations of Instrument Landing Systems (ILS) traditionally used by airports. The island of St Helena, an overseas territory of the UK in the South Atlantic Ocean, currently has no airport and is accessible only by ship. Honeywell has demonstrated the benefits of the system at more than 15 airports around the world.
Rising IT spending by airports
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Airbus ProSky opens regional headquarters in UAE
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Honeywell to provide GBAS to UK airport
Airbus ProSky CEO, PaulFranck Bijou, said: “The Middle East airspace is among the most important in the world due to its strategic location, being the gateway between East and West. With ever more new aircraft joining fleets in the region coupled with Middle East air traffic increasing by 8.2 per cent per annum, we are working towards enhancing the airspace to efficiently serve this increasing demand.” Last year, Airbus ProSky was retained by the General Civil Aviation Authority (GCAA) for the UAE Airspace Optimization Programme. The Middle East airspace is becoming
increasingly recognized as an important resource, especially for airlines transporting passengers and cargo to and between Africa, Europe and the Asia Pacific. Airbus ProSky has been involved in many projects in globally, being focused on enhancing Air Traffic capacity, increasing flight efficiency and improving access to airports. On a worldwide scale, it is expected that modernizing ATM systems will generate significant environmental benefits such as saving some 13 billion litres of fuel per year, reducing around 29 million tonnes of CO2 emissions per year as well as four million hours of delays.
report has revealed that the Information Technology spending in airports has grown by 12 per cent CAGR since 2010 with IT spend in airports in 2013 representing 5.43 per cent of their revenues, up from 4.9 per cent in 2012. About 90 per cent of Airport Chief Information Officers (CIOs) expect further increases in 2014 and beyond. Up to 80 per cent of airports now have check in kiosks to enable self -service for passengers, with 98 per cent expected by 2016. About 95 per cent of airports are investing in mobile apps for passenger interaction, including flight information, navigation and retail promotions. Eighty per cent of airports plan to invest in Business Intelligence for revenue optimisation and management by 2016, said a report quoting Dr. Brendan O’Brien, Cisco’s Director Global Product Marketing Connected Mobile Experiences.
Technology
Technology-enabled transformation of the aviation industry
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lobal technology giant Microsoft recognizes the pivotal role that the technology plays in the aviation industry, from changing the way flight crews manage their work, the way pilots access information, the way customers experience service onboard, right down to how the airlines generate insights from their customers and business.
Microsoft and its partners have highlighted innovations that have helped airlines use mobile devices, cloud computing and customized apps to address costs, increase productivity and customer loyalty. Susan Hauser, Corporate Vice President, Enterprise and Partner Group, Microsoft, said airlines around the world face tough competition, thin margins, increased
passenger expectations and, as a result, are seeking new ways to achieve efficiencies while delivering great customer experiences. Cloud technologies enable greater agility while reducing IT inefficiencies, giving businesses in the aviation industry an unprecedented opportunity to use technology to save costs, increase revenue growth and differentiate themselves from their
competitors. Susan said Microsoft understand what airlines need and are delivering technologies to help them be more successful. Its innovation is helping to solve business problems, including enhancing mobility via Windows-powered devices, facilitating digitization of charts, maps and operations manuals and enabling integration with back-end systems and cloud services. Windows is enabling Electronic Flight Bags for pilots, in-flight entertainment (IFE) systems for customers, and in-flight cabin service and point-of-sale solutions to create engaging experiences with customers, as well as increase productivity among employees – resulting in substantial cost savings for airlines.
Big Data helping airline profitability
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Bermuda to develop most-efficient airspace
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oeing and Bermuda’s Department of Airport Operations (DAO) are collaborating to study the modernisation of airspace and air traffic management in the region. Bermuda hopes to develop some of the most modern and efficient airspace in the world. It is the first step in Bermuda’s plan to potentially develop its own Flight Information Region (FIR), which will lead to increased operational efficiencies for airplanes within the airspace encompassing the island of Bermuda.
or the $743 billion global airline industry, big data analytics is increasingly the difference between successful airlines and those who struggle to prosper in an increasingly competitive field. With profits hovering around $6 per passenger and projected to drop this year, airlines are under the gun to do anything to improve the situation. Tim Simmons, Teradata’s Vice President of global industry marketing, identified three major ways that airlines are using big data analytics to their advantage - capturing sensor data to optimize maintenance, forecasting the weather to optimize fuel loads and identifying and capturing the demand signal. Airlines are widening and expanding their information gathering programs to cover all airlines passengers, whether or not they have ever flown with a given airline. Only about half of passengers on any given plane belong to the loyalty programme of the airline they’re flying, says a report published by Datamani. May 2014
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