Monthly Newsletter issued by Dubai Civil Aviation Authority
www.viadubaionline.com
Issue 28 September 2015
Inside DCAA Sichuan Airlines delegation visits DCAA
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DANS and MITRE signs 8 cooperation deal
DCAA, Beit Al Khair charity initiative
10
UAE in Focus Gama Aviation’s $15 million Sharjah investment plan
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13
flydubai to add new 14 operations from DWC
HH Sheikh Mohammed inspects Dubai International Airport
Opinions Innovation key driver to future growth
Climate action has taken flight
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Tony Tyler
Technology 46
39
Mohamed Al Mazrouei:
Midfield Terminal Complex to become operational in 2017
Anthony Cheung
Cargo & Logistics 42
22
Airlines 40
ATM 36
Our Smart Services DCAA Smart App will allow the customers the below services: • • • • • • • • • • • • •
Issuance of Landing permissions Issuance of No Objection Certificate for Carriage of Restricted Articles Issuance of No Objection Certificate for Aerial Work Issuance of No Objection Certificate for Aircraft Warning Light Issuance of No Objection Certificate for Heliport Issuance of No Objection Certificate for Pyrotechnic Display Issuance of No Objection Certificate for Building Height (Below 300m) Issuance of No Objection Certificate for Building Height (Above 300m) Issuance of Approval for Heliports Certification Issuance of Approval for Crane Operation Issuance of Approval for GSM or other communication tower Issuance of Approval for Balloon Operations Issuance of No Objection Certificate for Sky Trackers / Space Cannon
Registration Requirements: • • • • • • •
Company Name Company Address Telephone Number Fax Number PO Box City Choose one secret questions
• • • • • • •
Username Password Email Address Name Mobile Number Emirates ID Number Category (Individual - Airline - Agency - Expert - Provider)
You can download the application
by searching in App Store and Play Store by typing DCAA or scan the QR code
For more information, please call technical support on: +971 56 6810685 September 2015 2 email: it.support@dcaa.gov.ae
www.dcaa.gov.ae
CONTENTS
DCAA wishes to
extend its heartfelt condolences to the United Arab Emirates on the demise of the soldiers who martyred in Yemen September 2015
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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
Inside DCAA DANS and MITRE signs cooperation deal for the project
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Coordinator Hanan Al Mazimi Executive Editor Mohammed Abdul Mannan
Sichuan Airlines delegation visits DCAA
Creative Manager Mohammed Al Jarouf E-mail: viadubai@naddalshiba.com Legal Disclaimer The views expressed in the articles are of the writers and not necessarily belong to DCAA. We take all reasonable steps to keep the information current and accurate, but errors can occur. The information is therefore provided as is, with no guarantee of accuracy, completeness or timeliness. The DCAA or Via Dubai does not warrant or assume any legal liability or responsibility for the quality, accuracy, completeness, legality, reliability or usefulness of any information. Via Dubai does not endorse or recommend any article, product, service or information mentioned in the newsletter. Any perceived slight of any person or organisation is completely unintentional.
7 DCAA celebrates UAE Women’s Day
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Tel +971 4 25 66 707 Fax +971 4 25 66 704 info@naddalshiba.com www.naddalshiba.com Printed by Printwell Dubai
Our Vision Dubai Civil Aviation Authority is driven by the vision of Dubai to become the global Aviation Capital contributing to prosperity and enabling growth for Dubai.
Our Mission Dubai Civil Aviation Authority is committed to support the aviation sector in: 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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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 September 2015 Dubai, United Arab Emirates
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CONTENTS
Cover Story
HH Sheikh Mohammed inspects Dubai International Airport 16 Middle East News
International News
30 Saudi airports witness
34 $248 million for Chicago’s
31 King Fahd airport plans
34 Iceland to see rapid aviation
31 Vertis Aviation adds Bombardier
35 LAX to handle 100 million
32 New terminal opens at
35 Frigate EcoJet to complete
32 Kuwait Airways receives its
35 FAA approves 1,000
significant traffic growth private-aviation terminal Challenger 604 to fleet Madinah airport firstA330-200
Midway Airport expansion growth
travelers by 2040 first flight in 2018
commercial drone permits
September 2015
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September 2015
Message from the President
Galloping Growth W
hen Dubai International overtook London’s Heathrow as the number one airport in the world for international passengers last year, it marked a new beginning in the aviation industry in Dubai. Dubai clocked 69.9 million passengers, far more than Heathrow’s 68.1 million, to get the crown sit on its head. Over the past five decades, Dubai recorded double-digit average growth in air passengers, a no mean achievement, considering the challenging times that the global aviation industry faced, including global recession. I am happy that Dubai International continued its upward growth curve in the first half of this year. Between January and June, the airport handled 38,299,291 passengers, an increase of 10.4 per cent year on year.
The first half of 2015 witnessed launch of new services by Emirates and flydubai. Dubai carriers started new services to several places including Slovakia, Bosnia, Bulgaria, Czech Republic, Croatia, Hungary, Moldova and Kazakhstan. Dubai Air Navigation Services (DANS) has also seen its responsibilities getting enlarged in terms of air traffic management. Aircraft movements for the first half of the year totaled 199,624, a 16.9 per cent increase from the 170815 movements recorded during the first half of 2014. The year started well for us and we are hopeful about making 2015 a record year in terms of overall performance with every stakeholder, especially Emirates and flydubai, with their route network expansion, contributing to our amazing and inspir-
Ahmed bin Saeed Al Maktoum
ing success story. We anticipate the pace of growth to continue throughout the remainder of the year. It is not just the quantity we are eyeing, but quality as well. We have taken measures to enhance our strong position which reflected in ICAO declaring the UAE top in the world for quality of air transport infrastructure. Dubai International Airport is boosting its annual capacity to 90 million passengers this year with the opening of Concourse D. We are hopeful about achieving the 79 million passengers’ target this year with the support of all our industry stakeholders working together as a unified team.
September 2015
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Message
from the Director General
Aviation Excellence T
he aviation industry’s importance to our social and economic future underlines the need to prepare and maintain excellence in every aspect of its operations. We need to ensure that, we are able to manage the growth and other industry transformations that the future will inevitably bring. Effectively managing growth involves maintaining the standards for safety, wise use of technology and commitment to excellence and innovation. This is absolutely fundamental to the aviation industry’s future. Thus, it led to the Dubai government to initiate steps to set up a Centre of Excellence for the aviation industry in the UAE. The government and the aviation industry stakeholders are committed to enhancing our aviation infrastructure and services. Better aviation planning and infrastructure investment is the result of strong, dedicated, co-operative partnerships between the government and industry. DANS signed an international cooperation agreement with MITRE Corporation to create The Centre of Excellence. This facility is expected to transform Dubai into the world’s leading innovation hub by providing comprehensive benefits to the economy and the aviation sector. The Centre will encourage and enhance regional cooperation and will have positive impact on the economy. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has wisely said that innovation is the key for the UAE to achieve its strategic goals and it is a vital pillar in driving further economic development and growth.
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September 2015
Mohammed Abdulla Ahli
The Centre will work towards improving the aviation infrastructure in the UAE by enhancing safety, security, efficiency, and capacity of aircraft operations. It will seek to engage talent from the local technology institutes and universities to develop young innovative minds by providing them the opportunity of working in the Centre’s activities. Dubai can serve as a model of efficiency and excellence for the global aviation industry. We have taken the right decision at the right time by going ahead with The Centre of Excellence.
Inside DCAA
Homage to UAE martyrs by DCAA
O
n behalf of Dubai Civil Aviation Authority (DCAA) management and staff members, His Excellency Mohammed Abdulla Ahli, Director General of DCAA, has expressed sincere condolences to the families of
the UAE armed forces personnel who were martyred in Yemen. He also extended condolences to the UAE leadership, government and people of the UAE for the great loss.
He said the people of the UAE were proud about the heroic sacrifice of these Emiratis in defense of the values and principles of humanity to support our brothers in Yemen.
Sichuan Airlines delegation visits DCAA
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Sichuan Airlines delegation headed by its Vice Chairman, Si Xian Min, visited the Dubai Civil Aviation Authority (DCAA) ahead of the start of its first-ever flight to the Middle East to Dubai from September 4. The visiting team was received by Saud Abdul Aziz Kinkzar, Director of Air Transport and International Affairs at DCAA, in the presence of other directors and management team. During the meeting, the visitors briefed the Dubai officials about the launch of twice weekly flights to Dubai from Chengdu, capital of southwest China’s Sichuan province. They also discussed ways to enhance cooperation in the aviation domain and logistical support in the future. At the end of the tour, the two sides exchanged memen-
tos. The meeting comes in line with the vision and goals of the DCAA to enhance cooperation among the key industry players. Sichuan Airlines, owned by Sichuan government and China Southern Airlines, operates scheduled domestic flights out of Chengdu Airport and Chongqing Jiangbei International Airport. It launched its first long-
haul route in June 2012 with flights to Vancouver, Canada, followed by Melbourne, Australia. It operates domestic flights between major Chinese cities, including Beijing, Shanghai and Hong Kong. The airline also offers short-haul flights to South Korea, Taiwan, Indonesia and Vietnam. Sichuan Airlines will be the third airline linking Chengdu with the Middle East.
DCAA, Beit Al Khair charity initiative
T
he Dubai Civil Aviation Authority (DCAA), in collaboration with Beit Al Khair, organized a charity initiative during the Holy Month of Ramadan, titled, Will Give You Your Ediyah. This year’s initiative focused on workers and their happiness.
They were offered money and certificates as a token of appreciation for their work. It is part of DCAA’s initiative to support the society and humanitarian initiatives. DCAA thanked Beit Al Khair for the successful conduct of the initiative.
September 2015
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Inside DCAA
DANS and MITRE signs cooperation deal for the project
Dubai to have a Centre of Aviation Excellence D
ubai Air Navigation Services (DANS), the air navigation services provider (ANSP) for both the Dubai and Northern Emirates airspace, and the MITRE Corporation, a USbased not-for-profit organization have signed an international cooperation agreement that aims to create a Dubai-based aviation innovation centre.
The Centre of Excellence aims to transform the Emirate of Dubai into the world’s leading innovation hub by providing comprehensive benefits to the economy and the aviation sector in the UAE and the Middle East region. Mohammed Abdulla Ahli, Director General of Dubai Civil Aviation Authority (DCAA) and CEO of DANS, said. “The establishment of the Centre of Excellence for the aviation sector in the UAE will encourage further regional cooperation between the neighboring countries and will have positive impact on the economy as it will reduce research and development
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September 2015
costs for the organizations. We are collaborating with MITRE, our technical partner for this project, as we believe that DANS will benefit immensely from its knowledge.” In line with the guidelines, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA and Chairman of DANS, authorized Mohammed Ahli to sign this agreement in order to enhance collaborations and drive innovation in the aviation sector.
Innovation is the key for the UAE to achieve its strategic goals and it is a vital pillar in driving further economic development and growth. Under the guidelines set by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the year 2015 has been declared as the Year of Innovation and the Executive Council established the National Innovation Strategy and appointed the National Innovation Committee as the governing body to supervise the implementation and enhancement of innovation across seven key sectors in the UAE: Space, Water, Technology,
Inside DCAA
Dubai has taken the first steps towards establishing an aviation innovation facility in the emirate Education, Health, Renewable Energy, and Transport. The Centre of Excellence will aim to improve the aviation infrastructure in the UAE by enhancing safety, security, efficiency, and capacity of aircraft operations. In addition, DANS seeks to engage local talent from technology institutes and universities to develop young innovative minds by providing them the opportunity of working in activities in the centre.
ti-billion dollar development of Dubai World Central (DWC) will make it the world’s biggest airport with a capacity to handle up to 220 million passengers by next decade. The UAE is home to three of the world’s fastest growing airlines – Emirates, flydubai and Etihad. Dubai is among the 50 cities that have two international airports within their urban conurbations. Early this year, the UAE has been adjudged top in the world by the ICAO for the quality of air transport infrastructure and safety. Dubai houses the world’s largest 3D tower simulator which is helping build the next generation of air traffic controllers in the emirate and beyond. Dubai International Airport is projected to see 45 aircraft arrivals an hour by 2016. Dubai is likely to see 665000 aircraft movements by 2020. DANS, since becoming an independent body last year, is playing an increasingly important role in the development of aviation sector, especially
the Air Traffic Management (ATM) and air navigation services. DANS entered into a partnership with MITRE Corporation during the World ATM Congress in Madrid in March last year. DANS and MITRE signed a five-year framework agreement to continue developing innovative and enduring solutions for the complex aviation infrastructure and air traffic management challenges facing Dubai. “Dubai is strategically positioned to serve as an aviation hub in the Middle East, and can serve as a model of safety, efficiency, and service to the region, which is facing complex aviation challenges and rising demand,” said Lillian Ryals, Senior Vice President and General Manager of MITRE’s Center for Advanced Aviation System Development. The collaborative activities these organizations initially agreed to undertake include air traffic management research and development as well as knowledge and technology sharing initiatives.
Economic growth from the aviation sector is projected to contribute $53 billion to the UAE economy by 2020 and create up to 750,000 jobs, industry experts remarked during the Future Air Transportation Systems Summit in Dubai earlier this year. Aviation’s contribution to the Dubai economy will increase three fold to $88 billion by 2030. By then, more than one in three of the workforce will be in an aviation-related job. Dubai International is now the world’s number one airport for international passengers, while the ongoing mul-
September 2015
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Inside DCAA
DCAA celebrates UAE Women’s Day
T
he Dubai Civil Aviation Authority (DCAA) celebrated the UAE Women’s Day on August 28 with the key highlight being a ceremonial cake cutting by the Director General, His Excellency Mohammed Abdulla Ahli, and an honouring ceremony at the DCAA headquarters in Dubai International Airport. Senior management team members attended the ceremony. The UAE government had declared August 28 of each year to be commemorated as Emirati Women’s Day in recognition of the role Emirati women have played in the sustainable development of the country.
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The date marks the anniversary of the establishment of the UAE’s General Women’s Union in 1975 with Her Highness Sheikha Fatima bint Mubarak as its chairperson. She is also the Supreme Chairwoman of the Supreme Family Development Foundation (FDF) and President of the Supreme Council for Motherhood and Childhood. Speaking on the occasion, His Excellency Mohammed Ahli praised the achievements made by the Emirati role and the role they have been playing in the socio-economic development of the country. He said women have made rapid strides in the aviation which has remained a crucial economic sector.
The UAE government and community offer all the required support to Emirati women to enable them make more achievements in different domains and thereby contribute to nation-building. On the occasion, the Director General felicitated three long-serving Emirati female employees of the Authority, along with Jameela Al Zaabi from Dubai Ambulance Services and Suaad Al Shamsi, the first Emirati Aviation Engineer. The three Emirati female employees of DCAA were Shayma Al Qasimi, Head of International Affairs Section, Hanan Al Mazimi, Head of Corporate Communication Section and Maitha Lootah, Administration Affairs Executive.
Inside DCAA
September 2015
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UAE in Focus
Longest non-stop flight in the world to Panama City by Emirates from next year
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mirates Airline has chosen Panama as its fourth destination in Latin America and plans to launch a daily service to Panama City as of February 1 next year. This will be the longest non-stop flight in the world with a 17 hour 35 minutes westbound leg. Australian airline Qantas currently flies the world’s longest route at 16 hours and 55 minutes between Sydney and Dallas/Fort Worth in Texas, US. Flights will be operated by a Boeing 777-200LR in a 3-class layout, with seating for 266 passengers. The cargo capacity of 15 tonnes will allow the award-winning airline to transport key import products such as pharmaceuticals, machinery products, iron/steel products and electronics.
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His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, said: “Panama City will be our first destination gateway in Central America, providing a convenient option for our passengers traveling from or through our global hub in Dubai. We’re also pleased to be the only commercial airline to offer a daily, First Class service to travelers on what will be the world’s longest nonstop flight.” “It is gratifying to see how diplomatic efforts focused on generating development and prosperity for Panama materialized,” said Isabel Saint Malo de Alvarado, Vice President of the Republic of Panama. “New doors to the country will open with a direct connection to the Mid-
dle East – a strong and thriving region with great synergies to both Panama and Latin America.”According to IATA, Latin America accounts for five per cent of all global air traffic. Panama is among the top 35 countries in the world for the quality of their air transport infrastructure, and Tocumen International Airport appropriately dubbed the ‘Hub of the Americas’, is currently offering scheduled service to over 80 destinations. The strategic location of Panama between North and South America and between the Atlantic and Pacific Oceans, provide Emirates a privileged location that will enable its travelers to bypass traditional connection points such as Miami, New York, London or Amsterdam, with access to the vast global network of over 140 destinations served by the airline.
UAE in Focus
Gama Aviation’s $15 million Sharjah investment plan
G
ama Aviation Middle East is moving forward with its $15 million investment plans at Sharjah International Airport where it had opened a private terminal a year ago as part of its investment plans. Gama Aviation is looking at a number of options on where exactly at the airport the new hangar will be located, Middle East managing director Martin Ringrose told Gulf News. One consideration is an $8 million maintenance hangar, which will be located next to its current hangars.
It is also in talks with the airport authority about moving all of its hangars to another site at the airport. A decision on the new hangar will be made this year. The $15 million investment at Sharjah International Airport is part of Gama Aviation’s bid to edge out competitors and convince business jet owners to let them manage their aircraft in a highly competitive, slow-growing market.This year, the company, whose local shareholders
include Sharjah’s Crescent Enterprises and Growthgate Capital, has added one aircraft to its fleet of eight chartered and managed aircraft. Increasing take-off, landing and parking constraints at Dubai International, the world’s busiest airport for international passengers, are also making Gama Aviation and Sharjah International more attractive to business jet flyers. This year, Gama Aviation is targeting to increase business by one and half times.
Dubai to host ATC Global in October Airports and Dubai Air Navigation Services (DANS) and Chairman and Chief Executive of Emirates Airline and Group. Sheikh Ahmed said: “Aviation has been an instrumental engine in driving unprecedented growth in the economy of Dubai.
T
he ATC Global 2015 will take place at the Dubai World Trade Centre (DWTC) from October 5 to 7 under the patronage of HH Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA, Chairman of Dubai
It has benefited from a clear vision and investment in innovative minds, technology, and research and development. We look forward to welcoming aviation professionals from the UAE, the region and the world over at ATC Global to participate in shaping the future of the air traffic management sec-
tor.”Founded in 1990, ATC Global is being organized by UBM EMEA. Supported by the General Civil Aviation Authority (GCAA), Dubai Air Navigation Services (DANS), Dubai Airports and Emirates Airline, the three-day ATC Global will encompass a comprehensive exhibition featuring organizations leading the transformation of ATM and a varied educational programme incorporating free-to-attend workshops and a conference on the theme of Connecting the Continents and hosted buyer scheme.
September 2015
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UAE in Focus
flydubai to add new operations from DWC
Emirates ranks second globally as best connected airline hub
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n the Middle East, Qatar Airways has overtaken Emirates in terms of destinations served non-stop from their hubs.
D
ubai’s budget carrier flydubai will commence new passenger services from Al Maktoum International Airport in Dubai World Central (DWC) with effect from October 25, the commencement of its winter schedule, as it continues its operations from Dubai International. Flights to Amman, Beirut, Chittagong, Doha, Kathmandu, Kuwait and Muscat will become available from DWC.
Flights to these destinations will continue to be available from Dubai International. The development of DWC will allow the UAE’s highly successful aviation sector to continue to grow strongly over the next decades. Following the recent decision to expand capacity at the existing terminal at DWC to 26 million by 2018 flydubai has taken the opportunity to offer its passengers the choice of flying from Dubai’s two airports.
Emirates ranks second globally (just behind Turkish Airlines) for the airline hub with the most seat capacity at a single hub. flydubai, which launched only just over six years ago, now serves 90 destinations non-stop, three more than Etihad Airways. Saudi Arabian Airlines does a Lufthansa by appearing twice in the regional top 12, while Air Arabia’s Sharjah base joins flydubai as the second LCC to make the rankings. There are now a total of 23 airports at which a specific carrier operates flights to 125 destinations non-stop. Of these one is in the Middle East.
Over 34,000 banned items confiscated at Dubai airport
D
ubai Airport Security officials have seized 34,032 items that are prohibited on airplanes during the first half of 2015. Brigadier Ali Atiq Bin Lahej, Director of General Department of Airport Security at Dubai Police, said items seized included sharp objects such as knives, scissors, martial arts weapons, sports gear and screwdrivers, as well as liquids and compressed liquids. All these items are not allowed on the plane and hence not allowed to be in the passenger’s luggage. They also found electronic cigarettes and elec-
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tronic incense burner, which contains gas, in a passenger’s luggage. These are not allowed on the plane.Dubai Airports have placed signs at its entrances indicating what is allowed on
the plane and what isn’t, and people should consult that and remove any prohibited items and place it in a box in the airport dedicated for that purpose.
September 2015
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Cover Story
HH Sheikh Mohammed inspects Dubai International Airport H
is Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, inspected a number of facilities at the Dubai International Airport to have a first-hand assessment about the smooth movement of passengers through this vital and international gateway. He, accompanied by His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, toured Terminal 3 which is exclusively dedicated to Emirates Airline flights. He also inspected Emirates Airline counters, about 50 of them, including the Passport Control Section and the First and Business Class counters at the Terminal which is the largest airport terminal in the world.
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Sheikh Mohammed and the accompanying delegation accompanying took the monorail from Terminal 3 to Concourse D, the world’s first dedicated A380 facility used exclusively by Emirates, at the Dubai International. He was briefed about the quality of world-class services and facilities as well as comfort and good treatment provided by the airport authorities to inbound and outbound travellers using the Dubai International, the number one airport in the world for international passengers.
Cover Story
Sheikh Mohammed commenced his tour at the departures lounge in Terminal 3 where he inspected the baggage delivery service system at the Emirates check-in counters, the weighing mechanism and passport verification, all of which are carried in less than ten minutes. Sheikh Mohammed also inspected counters of General Directorate of Residency and Foreigners Affairs, and was reassured of the speed and ease of procedures. He then took the internal monorail connecting Terminal 3 to concourse A where passengers board the new Airbus A 380. Sheikh Mohammed also toured the corridors of the concourse and its facilities to make sure passengers are comfortable when travelling. His Highness Sheikh Ahmed briefed him about the rising number of travellers through the Dubai International Airport which is expected to reach 80 million by the end of this year. Dubai, he said, has become the world’s favourite destination given its -state-of-art-airport facilities, unparalleled customer services and user-friendly facilities.HH Sheikh Mohammed expressed his satisfaction about procedures at the airport and continuous upgrading of services and facilities for the travellers, a move that has brought for the country a good international reputation.
Thanking His Highness Sheikh Mohammed bin Rashid Al Maktoum for visiting the Dubai International Airport to review facilities, His Excellency Mohammed Abdulla Ahli, Director General of Dubai Civil Aviation Authority (DCAA) and CEO of Dubai Air Navigation Services (DANS), said such periodic tours will motive and inspire every stakeholder to contribute towards putting the airport on top on the global list. His constant guidance and follow-up on aviation-related projects and initiatives resulted in Dubai becoming the world’s number one airport for international passengers last year. The Dubai Civil Aviation Authority (DCAA), in cooperation with Dubai Airports, DANS and other stakeholders, has been doing its best to expand and upgrade fa-
Among those who accompanied HH Sheikh Mohammed and HH Sheikh Ahmed during the tour included Khalifa Saeed Suleiman, Director General of Protocols and Hospitality Department, Eng. Khalifa Al Zafeen, Vice
cilities, especially in the safety and air traffic management domains, to catch up with the growth in passengers and flight movements. Dubai leads the region in terms of air traffic movement and is set to see 665,000 yearly aircraft movements by the year 2020. The growth rate of aircraft movement clearly suggests that Dubai International and Al Maktoum International airports are on an exponential growth curve. In H1 2015, Dubai International recorded 10.4 per cent growth in passenger numbers which stood at 38.2 million and 16.9 per cent growth in aircraft movements which numbered 199,624. This year, Dubai International is projected to handle over 79 million passengers, up from over 71 million recorded last year.
Chairman of Dubai Aviation City Corporation, Major General Obaid Mohair bin Suroor, Deputy Director General of the General Directorate of Residency and Foreign Affairs in Dubai (GDRFA-Dubai).
Commending the services enjoyed by travellers on board Emirates flights, he noted: “Our planes carry along with them the messages of love and peace from our people to people from other parts of the world to bring cultures closer.”
September 2015
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In Focus
Transit to another world
Dubai International is among the best airport in the world offering hotel facilities to passengers
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t a swank Singapore resort, guests enjoy tropical garden views, a landscaped pool area, glamorous bar scene, high-end eateries, and plentiful meeting space. Surprisingly, this award-winning hotel is not on the island-nation’s scenic coastline; it’s at the Crowne Plaza Changi Airport. The luxury property was adjudged Best Airport Hotel in this year’s World Airport Awards by SkyTrax. It was the third straight year the Crowne Plaza Changi Airport made the top 10, in a domain that’s become increasingly competitive. There are a number of reasons why the 320-room Crowne Plaza Changi Airport retains its top spot in the Skytrax ranking. All of the hotel’s seven meeting rooms have garden, not runway, views. The open-kitchen concept of the on-site 150-seat Azur restaurant makes for a lively scene. And when it comes to location, the hotel is directly connected to the airport’s Terminal 3 by way of an air-conditioned
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bridge. Terminal 2 is accessible via a mezzanine bridge, and Terminal 1 can be accessed by Skytrain, also just a five-minute stroll from the hotel. Around the globe, a heightened focus on airport security often translates to long lines and frayed nerves at security checkpoints; complex schedules have travelers scrambling to make connecting flights or facing lots of downtime to fill before the next leg of their journey. In response to their customers’ reality, today’s on-site airport hotels are bent on demonstrating that they are not just convenient transit meeting hubs, but
unique destinations in their own right, with trendy bars, cool restaurants, 24hour gyms and full-service spas. “The convenience of not having to go outside, not having to arrange transportation and shuttles for attendees, is a huge selling point for us,” says Nancy Dudak, General Manager of the fiveyear-old, 336-room Hyatt Regency Pittsburgh International Airport. “You just jump on the moving walkway, and you are right in our lobby.” The 605-room Sofitel London Heathrow, linked to London Heathrow Airport’s Terminal 5 by walkway, is the French
In Focus
Dubai International Hotel
Dubai International Hotel is located inside Dubai International Airport, the world’s number one airport for international passengers which is expected to handle 79 million passengers this year. Hotels are located in all three Concourses - A, B and C. One must be in transit to access the hotel. connection, or be in London’s Victoria Station in less than 25 minutes. When incoming guests of the 445-room Hyatt Regency Orlando International Airport land at said airport, they are met at baggage claim by a bellman who takes the bags straight to their hotel room, minutes away. On-site, attendees can check their return-flight status from the hotel lobby, meeting rooms and even their guest room.
The airport hotels have undergone a dramatic transformation in look, feel and function. brand’s only airport hotel and was built to anchor the new terminal when it opened in 2011. Sofitel guests can zip over to other terminals via a courtesy rail
The 1,171-room Regal Airport Hong Kong connects to Regal Airport Hong Kong by an enclosed link bridge, provides free shuttle service to the nearby AsiaWorld-Expo center and has 30 meeting rooms -- along with all the trappings of a luxury resort, including six restaurants and bars, an outdoor pool, a full-service spa and landscaped outdoor terraces. The airport hotel has come a long way since Conrad Hilton pioneered the concept back in 1959 with the Hilton San Francisco Airport. Hilton Worldwide today has 367 airport hotels, 291 of them in the US. Rob Palleschi, Global Head, Full Service Brands, Hilton Worldwide, commented: “That concept has since transformed from what were once low-rise properties predominantly focused on one-night stays, to destinations with a
A strategic business unit of Dubai Airports, the five-star hotel comprises of 397 well- appointed rooms, two Health Clubs with swimming pools, three fully-equipped Business Centers and 15 Restaurant and Bars which range from the Mc Gettigan’s Irish Pub in Terminal 1 to Obergine, French restaurant in Concourse B. Connected to over 200 destinations across six continents through more than 120 airlines, Dubai International as well as the Al Maktoum International in Dubai World Central (DWC), is owned and managed by Dubai Airports.
large number of guest rooms and facilities for meetings, special events and product launches.” Over the years, other global hotel brands, including Sofitel, Westin, Hyatt and Sheraton, also have entered this niche business travel hotel market space. Many hotel chains have opened stylish airport properties that can go toe-to-toe with nearly any luxury resort. Angela Gittens, Director General, Airports Council International (ACI) - an industry body with 573 members operating 1751 airports in 174 countries and territories, said: “We live in an age of convenience, and having hotels on the airport site is a great way of improving the travel experience for passengers. Airports are now attracting four- and
September 2015
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In Focus
five-star hotels, as they evolve into being much more than simply places where planes land and take off. These posh resort properties are making the most of their strategic locations.”The 389-room Hilton Munich Airport (formerly a Kempinski) sits between Terminal 1 and Terminal 2, in a unique spot to capture significant meetings business. In anticipation, the hotel began a 160-room expansion this year, and its Wi-Fi capability is being upgraded. Starwood Hotels & Resorts Worldwide also has a strong presence in the airport hotel sector. The chain’s 349-room Le Méridien Cairo Airport, which opened in 2013 as the Egyptian capital city’s first nonsmoking hotel, connects to Terminal 3 by pedestrian bridge. Starwood has several other airport projects in the pipeline, including the 519room Westin Denver International Airport, to open in December. Designed to look like a bird in flight, the property has 37,000 square feet of meeting space, including two ballrooms. The hotel is part of the new $544 million Hotel and Transit Center, which will serve the new electric East Rail Line that will connect the airport with downtown Denver in 2016. Also under construction is the 433room New Hilton Amsterdam Airport Schiphol, directly connected to its Netherlands facility’s terminals by a covered walkway. When it opens this fall, it will take the bragging rights away from the 406-room Sheraton Amsterdam Airport Hotel and Conference Center, which currently bills itself as the only property linked to Schiphol International Airport. The 517-room Hilton Rome Airport Hotel is now being renovated. Wrapping up phase one of a multimillion-dollar renovation this fall is the 573-room Houston Airport Marriott,
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which sits between Terminals B and C at George Bush Intercontinental. The hotel is investing heavily in technology upgrades, increasing the capacity of its broadband network and installing charging stations, boarding-pass printers and flight-status boards in the lobby. According to a study by FCm Travel Solutions, the past decade has seen the rise of a new style of airport hotel. “A luxurious, resort- style haven that takes the weary traveller from airport scramble to an unexpected sanctuary in a
The past decade has seen the rise of a new style of airport hotel matter of steps. These uber-convenient hotels are in growing demand as timepoor business travellers find they can be both productive and relaxed, without leaving the airport,” remarked the report titled, Transit To Another World, Rise Of The Airport Hotel. With the heightened focus on airport security over the past 10 years, ‘transit’ has taken on a new meaning. Corporate travellers, at the mercy of airline schedules, can find themselves having to fill anything from two to 10 hours between connecting flights. Spurred by this trend, the airport hotel has undergone a dramatic transformation in look, feel and function. No longer located near airports – these modern and unique
properties are inside the terminal. The report noted: “Today, we’re seeing a new style of accommodation, created specifically for the corporate traveller who wants to use their time efficiently. For some travellers this means work productivity, while for others, it means leaving the bustling airport environment for a place of relaxation.” Key characteristics Many of the world’s major airports have hotel properties located next to them or in close proximity. However, the new airport hotel sits within the physical boundary of the airport. Connected or located adjacent to an airport terminal, it allows travellers to step directly from their arrivals gate, in some cases via Immigration, into a different world. The majority of these hotels are fivestar properties that blend luxury with convenience. In contrast to the sterile airport hotels of old, these newer properties exude the local culture, beauty and style throughout their design. They acknowledge that they are providing the traveller’s first experience of a country. Airport hotels offer excellent facilities for the travellers who need to work, including in-room Wi-Fi, meeting rooms, business and conference facilities, and ambient lobbies. Leisure facilities also abound in these properties, allowing travellers to dine
In Focus
modern airport hotels around the world vary depending on the airport to which they are linked. In Europe, the Hilton Frankfurt Airport is situated directly above the InterCity Express (ICE) railway station with direct pedestrian access via skywalk to Terminal 1. The hotel features 10 meeting rooms and a grand ballroom, a 24-hour business centre, 24-hour fitness centre, sauna, lounge and bar, and a restaurant. All guest rooms and suites feature soundproof windows, LCD TV and dedicated work space.In Canada, the Fairmont Vancouver Airport was designed to redefine airport accommodation when it opened in 1999. Situated exactly 99 steps from the US departures terminal this highly awarded hotel is a haven for harried travellers. Features include total soundproofing of guest rooms, a noisefree zone and ‘quiet rooms’ where there are no bellmen, housekeeping or room services to keep guests awake.
ation facilities, a hair salon, and an on-site car park with ‘Park & Fly’ packages. In Bangkok, Novotel Suvarnabhumi Airport has packages such as ‘24 hours occupancy from the time you arrive’, recognizing that guests can arrive at any hour of the day or night. in relaxed settings, work out at the gym, enjoy a massage or soak up a rehydrating skin treatment. Accor’s Sofitel London Heathrow is a destination in its own right. The hotel provides direct access to Terminal 5 via a covered walkway and to Terminals 1, 2, 3 and 4 via the courtesy Heathrow Express/ Connect rail. It offers the largest meeting capacity in the Heathrow area, as well as spa and relax-
The Novotel is a virtual resort right next to the airport because it is so often used by people to re-set their body clocks after an extended stay in Europe. It offers 24 hour breakfast, a resort-style pool, large spa centre and extensive restaurant facilities. Tom Rosepick, General Manager of Marriott Houston Airport Hotel, believes one of the biggest changes in airport hotels over the past decade has been technology. The services and facilities offered by
Offering amazing views over the runways and the majestic Rocky Mountains, the hotel also offers unique activities including Learn-to-Fly packages in a motion simulator. A world of benefits With all the amenities of a five-star hotel sitting on the doorstep of their arrival and departure gates, more business travellers are realizing that there’s no need to fill hours sitting in an airline lounge. For an overnight stay, there’s also no need to stress about the hassle of travelling to and from the city. The traveller has all the meeting, dining, leisure and accommodation facilities they seek, just steps away from the terminal. They can use the airport hotel almost like it is an airport lounge, by checking in online then simply walking to their gate an hour before departure.
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Exclusive Interview
Mohamed Mubarak Al Mazrouei:
Midfield Terminal Complex to become operational in 2017
E Mohamed Mubarak Al Mazrouei In an interview with Via Dubai, he shared details about the challenges the company and the aviation industry faces and the future projects. As the new CEO, how do you see your role and responsibilities in the development of Abu Dhabi airports? First let me say how honored I am to have been entrusted with such an important role. This is not just in the context of Abu Dhabi Airports’ own goal of becoming the world’s leading airports group, but more broadly in helping to deliver Abu Dhabi’s ambition of becoming a major global transportation hub, as part of Economic Vision 2030. I am very much looking forward to taking charge of the incredible work that has taken place at Abu Dhabi Airports. Our Capacity Enhancement Programme (CEP) has ensured that we are keeping pace with the growing numbers of passengers who choose to visit or pass through Abu Dhabi, with sustained investment in terminal and runway infrastructure.
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ng. Mohamed Mubarak Al Mazrouei is the new CEO of Abu Dhabi Airports. Also an Abu Dhabi Airports’ board member, he has wider insights into aviation industry developments.
Abu Dhabi airport capacity to reach over 50 million That work is continuing and it is vital that it is performed to the highest standards. Most obviously, of course, is the ongoing development of the Midfield Terminal Building (MTB). Tremendous progress has already been made with the MTB, which is now clearly visible as the iconic structure we knew it would be. It will transform Abu Dhabi International Airport. My role will be to oversee the delivery of all of these plans. I will naturally be relying on the skills and expertise of my team, whom I can-
not praise highly enough for what they have achieved so far. None of us are in any illusion as to the scale of the challenge, but it is one which we relish and look forward to managing it. Abu Dhabi International Airport is being expanded. How much investment has been made so far? Abu Dhabi Airports has embarked on a multi-billion dirham expansion programme, one of the world’s most ambitious airport redevelopment projects ever undertaken, supporting its vision to be the world’s leading airports group. The expansion of the airport is the result of massive growth in passenger numbers, a trend that began nearly ten years ago and is forecast to continue, placing further demand on the UAE capital’s transport infrastructure. The largest single component of the expansion programme is the construction of AED10.8 billion Midfield Terminal Building (MTB), which is designed to serve as the primary gateway for the national carrier, Etihad Airways, and its partners operating to Abu Dhabi.
Exclusive Interview
It will be located between the airport’s two runways to allow for the shortest possible journey from runway to parking stand. The building includes passenger and cargo facilities, transit hotel, duty free shops and restaurants.
enhancing passenger security. The airport has also seen the opening of the VIP terminal. This was swiftly followed by the opening of a new transfer baggage facility and a new transfer security check area.
Last year, the Abu Dhabi government approved expansion projects of AED1.645 billion, including the addition of nine new hard stands suitable for wide-body aircraft that are registering increase at the airport, refurbishment of the South Runway, development of Automated Passenger Mobility (APM) and South Runway Tunnel to connect passengers between the MTB and the existing and future terminals.
The end of 2014 also saw the re-opening of the upgraded Southern Runway; a significant step in allowing even the largest of commercial aircraft, such as the Airbus A380, to use Abu Dhabi International Airport and considerably increasing the capacity of the airport.
Abu Dhabi International Airport is also focusing on delivering the CEP. The CEP has witnessed the completion of several key infrastructure projects. In March, several new facilities opened at Terminal 1 which significantly improved the speed, efficiency and enjoyment with which passengers move through the airport, as well as enabling more aircraft to depart on schedule and
When will Midfield Terminal be ready? The terminal is already 50 per cent complete and is expected to be 65 per cent complete by the end 2015. It is due to become operational in 2017. It is an enormous undertaking that will go a long way in allowing Abu Dhabi to handle massive growth in passenger numbers in the coming years. It will be playing an important role in raising the profile of the Emirate as a world class travel hub and enabling the diversification of the Emirate’s econo-
By 2020, over 40 million passengers expected to use Abu Dhabi airport annually my by fostering growth in other industries through increased connectivity. Abu Dhabi has already become one of the most desirable destinations for holiday makers and for foreign business, which is a key pillar of Economic Vision 2030. What will be the capacity of Abu Dhabi airport by 2020 and beyond? When the Midfield Terminal opens in 2017, it will create capacity for an additional 30 million passengers, on top of the existing capacity at Terminals 1, 2 and 3, which is currently capable of managing an annual throughput of more than 20 million passengers per year. With further investment in additional capacity as part of Abu Dhabi Airports’ long term expansion plans, the capacity of Abu Dhabi International Airport will be in excess of 50 million. What are your expectations about aircraft/passenger movements at Abu Dhabi and Al Ain in 2015 and until 2020? During 2014, Abu Dhabi airport welcomed around 20 million inbound, outbound and transfer passengers, representing an annual growth of 20 per cent compared with the previous year
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Exclusive Interview
- the highest ever in Abu Dhabi International Airport’s history. Maintaining the same level of performance and momentum, we forecast passenger traffic growth of around 20 per cent again this year. The monthly traffic figures continue to match the long-term forecasts of growth in passenger numbers, with airlines connecting a growing number of new destinations with Abu Dhabi International Airport. By 2020, more than 40 million passengers each year are expected to use Abu Dhabi International Airport as their origin, destination or transit point for international and domestic journey, the vast majority passing through the new facility, with a double digit growth trend continuing year on year. What about cargo? Is it also growing? Are cargo facilities being expanded? Cargo traffic at Abu Dhabi International Airport has been steadily growing, with almost 800,000 tonnes handled in 2014, an annual increase of 12.8 per cent. All cargo at Abu Dhabi airport is handled by Etihad Cargo Services, which operates an efficient cargo terminal, equipped with all necessary facilities, including a bonded warehouse, transit zone, aircraft maintenance and mechanical handling, heated and refrigerated storage, food inspection and quarantine. In addition, Abu Dhabi Airports is developing Abu Dhabi Business City, an Aerotropolis comprising economic free zones for foreign businesses looking to take advantage of the benefits of being based within the boundary of Abu Dhabi International Airport. The facilities include world–class amenities and premium services, including warehousing facilities. Several major international companies have already signed leases for space, including FedEx and Aramex.
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How much is Abu Dhabi Airports is investing in technology and security enhancements? The safety and security is our top priority and it is vital that we should apply the very best and most innovative technology available to achieve this. Moreover, as passenger numbers continue to rise at the airport, deployment of the latest technology is vital to ensuring smooth management of passenger flow and we pride ourselves on staying ahead of the innovation curve.
For Gulf airport operators, opportunities far outweighs the challenges We have upgraded a number of security systems at the terminals to ensure they meet the best standards. We are building the Midfield Terminal to exceed global standards for connectivity and high-tech integration. We have partnered with SITA to provide Midfield Terminal with state-of-the-art IT infrastructure throughout the project. From baggage tracking and handling to flight display systems, passengers will benefit from a highly sophisticated IT support system. Earlier this year, we signed an AED458 million contract with Smiths Detection to equip the Midfield Terminal with a range of systems aimed at detecting chemical, biological, radiological, nuclear and ex-
plosives (CBRE) threats. What is being done for seamless travel experience through the Abu Dhabi airport? Passenger experience is a top priority for Abu Dhabi Airports and one that is at the core of everything we do at all our airports. We work closely with third parties to ensure that we maintain a high level of service and constantly refine and improve the airport’s facilities. In March, several new facilities opened at Terminal 1 which significantly improved the speed, efficiency and enjoyment with which passengers move through the airport, as well as enabling more aircraft to depart on schedule and enhancing passenger security. These include installation of 350 metres of new walkways directly linking the passenger arrival gates to the immigration halls and transfer screening facilities, opening of nine new Code E aircraft stands and introduction of 16 new state-of- the-art X-Ray screening
Exclusive Interview
machines capable of processing 2000 passengers an hour. How is Emiratisation progressing at Abu Dhabi Airports? Emiratisation is a key feature of our sustainable growth and development plan. Recruitment and retention of UAE National talent is integral to the company’s success. In 2011, the proportion of Emiratis working for Abu Dhabi Airports in the total workforce was 24 per cent. Last year, it had risen to 43.5 per cent, exceeding targets set for the year. The executive management segment alone recorded 65 per cent Emiratisation. We are offering 100 scholarships within UAE universities and colleges alongside 50 jobs in our Fire-fighting and Administration departments, and a further 50 entries within the National Development Program. The scholarships are available to competitive applicants with study opportunities within selected UAE universities and colleges and guaranteed jobs upon graduation to ful-
fil the manpower requirements for the Midfield Terminal. Recently, we conducted the graduation ceremony for the first 18 candidates who completed Abu Dhabi Airports’ train-to-hire National Development Programme. This is the first airport apprentice training programme of its type in the region and the only one so far implemented in an airport environment. The year-and-ahalf duration programme saw a talented group of 18 young Emiratis taking part in critical practical experience alongside traditional classroom based training, with an aim to nurture their skills and enhance knowledge to help contribute to the local aviation industry growth with competence and confidence. What are the key challenges for Abu Dhabi Airports? The most immediate and specific challenge is to deliver the MTB, which will immediately boost Abu Dhabi International Airport’s annual capacity by 30 million. The other main challenge is to develop our people, to ensure that both
now and in the future, they are able to apply the highest standards of service, safety and security in everything they do. Our training programs play a vital role in nurturing the aviation professionals of the future. Our ability to be the world’s leading airports group will be shaped by the quality of people who will lead the company in the future. Is the aviation industry progressing on the right tracks? Yes, I believe so, especially in the Arabian Gulf region. The opportunities for all airport operators here far outweigh the challenges. Growth in air travel demand is forecast to continue for the foreseeable future, fuelled by the availability of larger and more advanced airliners. The challenge will be keeping pace with this demand and ensuring that standards of safety, security and comfort meet the requirements of the modern traveller. Airports have a duty to deliver the best possible travel experience as the passengers’ expectations increase. I am pleased to say that we are meeting this challenge.
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Special Report
Risks Of The Future I
nnovation, climate change and managing future growth are among the risks likely to challenge the aviation industry in coming decades.
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September September 2015 2015
Special Report
The aviation industry is crucial to the global economy with over 58 million jobs across the world and $2.4 trillion in economic activity. It is estimated over a third of the value of goods traded internationally are delivered by air.
Henning Haagen
Prospects for the aviation industry look good, with growth in passenger numbers expected to reach 16 billion by 2050, a 384 per cent increase on today’s numbers. Air freight is expected to increase to 400 million tons from just 50 million today, according to the International Air Transport Association (IATA). Growth in air travel will have ramifications for the industry’s risk profile, according to a study by Allianz Global Corporate & Specialty (AGCS). For example, there will be a shift in flying and large hubs towards Asia and the Middle East, where populations are growing and where there have been large increases in infrastructure in recent years.
The aviation sector now relies on computers for almost every aspect of its business
Mergers and acquisition among ground support companies and aerospace firms has picked up in recent years as companies look to expand overseas. Regional consolidation of airlines is on-going, but while there has not been a large cross-continental merger – between a European and US or Asian airline, such a move is only a matter of time.
“Macro trends reaffirm the need for large global aviation insurers, and for underwriters that understand the changing nature of aviation risk,” adds Henning Haagen, Global Head of Aviation, AGCS.In the aviation, terrorism is the number one risk, with companies much more concerned about this threat than last year.
Longer term, the aviation industry may have to explore more revolutionary forms of technology. If they are to achieve the expected growth potential, airlines will need to address the high financial and environmental cost of traditional fossil fuels.
Outside of a terrorist threat, business interruption and supply chain risks are among the greatest concerns for the aviation industry, according to the Allianz Risk Barometer 2015, an annual study of risk consultants, senior managers and claims experts.
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Special Report
“A problem with a component, engine or airframe can now lead to the grounding of an entire fleet,” says Haagen. For example, technology problems on-board the new Boeing 787 Dreamliner saw the entire fleet grounded for three months while a solution was found.
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Many countries either prohibit or severely restrict the use of UAVs
In addition to the increasing risk of business interruption, there are a number of emerging risk challenges for the aviation industry, including those posed by new technologies – like composite materials – and human factors, such as how best to counter the potential downsides of increasing automation and information in the cockpit.
cidents, suggesting that continuous training should help prepare pilots to fly and recover aircraft when automation fails, as well as addressing passivity in the cockpit from a reliance on automation.
With growing demand for air travel, pilot training will become an even bigger issue than it is today. Boeing estimates that some 498,000 new commercial airline pilots will be required over the next two decades, raising concerns over the industry’s ability to fill quotas.
Two other technology-related emerging risk areas for aviation likely to feature increasingly in coming years will be the threat a cyber-attack could pose to the aviation sector as well as the increasing use of Unmanned Aerial Vehicles (UAVs), more commonly known as drones.
Pilot lapses and automation have been implicated in a number of recent in-
The aviation sector now relies on computers for almost every aspect of
September 2015
its business. And with this growing reliance, the industry faces an increasing threat from cyber risk, including cyber terrorism, extortion, data breaches and network outages. “In the next five to 10 years, cyber will become the biggest focus of the aviation industry,” predicts Haagen. Cyber risks are not currently excluded in aviation insurance policies, however, the aviation industry and its insurers will need to develop their understanding of the risk to prevent losses and risk accumulation, he adds. The advent of UAVs is causing excitement in the aviation world, and concern among airline pilots. The majority of UAV systems are operated by the military but as the technology matures, increasing numbers of units will find commercial uses, like conducting surveys of pipelines, border patrols, and filming sports events and movies. The US Federal Aviation Administration (FAA) has predicted the num-
Special Report
ber of UAVs in the US will rise to approximately 15,000 units by 2020 and 30,000 units by 2030. Currently, most UAVs are small and light (under 20kg) but capable of reaching around 2,000 feet and posing a risk to passenger aircraft. BALPA believes that large remote aircraft – the size as a Boeing 737 – could operate commercially within 10 years. Many countries either prohibit or severely restrict the use of UAVs, although the European Union and the US are both looking at ways to safely integrate drones into airspace, including appropriate level of liability and insurance. In the case of the US, the Federal Aviation Administration (FAA) has proposed a framework of regulations that would allow routine use of certain small unmanned aircraft systems (under 55 pounds [25kg] in weight) in today’s aviation system. Such moves
Longer term, the aviation industry may have to explore more revolutionary forms of technology mean that many now believe drone technology is here to stay. And despite concerns for safety, there are also many benefits if drones can be safely integrated and accommodated. Technological innovation appears in the top five long-term risks facing businesses, ranking 4th, the only time
this appears in a top five of all risks analyzed. New technologies such as 3D printing and nanotechnology are just two examples of disruptive technologies. The fourth edition of the annual Allianz Risk Barometer survey was conducted among the global businesses and risk consultants, underwriters, senior managers and claims experts, both within AGCS and local Allianz entities, with a focus on the corporate insurance sector for both large industrial and mid-sized companies. There were a record 516 respondents from a total of 47 countries. Allianz provides global business insurance for more than half of the Fortune Global 500 companies and for most aviation enterprises. It is a leading global insurance program provider, with nearly 10,000 corporate client policies under management.
September 2015
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Middle East News
Saudi airports witness significant traffic growth
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omestic airports in the Kingdom of Saudi Arabia have recorded significant growth in the number of passengers in the first half of 2015.
The airports handled a total of 6,671,878 passengers up to June, an 11.8 per cent increase compared with 5,969,428 passengers in the same period last year. The international flights recorded 1,348,764 passengers with 28.8 per cent increase compared with 1,063,837 passengers for the same period last year. Domestic flights carried 5,085,864 passengers with 7.8 per cent increase. Private flights carried 237,273 passengers, showing 31.8 per cent increase compared to 180,028 passengers of the same period last year. The number of flights in in the first half reached 60,417 flights with 9.1 per cent increase compared to the same period last year. Sulaiman Bin Abdullah Al-Hamdan, President of the General Authority of Civil Aviation (GACA) said the GACA has granted Nile Air permission to operate from Jouf Regional Airport to Cairo International Airport in Egypt and also granted Air Arabia permission to operate from Prince Sultan Bin Abdulaziz Airport in Tabuk to Sharjah Airport in the UAE.” Nile Air began its operations on August 7 with two flights a week between Jouf and Cairo, while Air
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Arabia will begin operations on August 20 with four flights a week between Tabuk and Sharjah. The number of international airlines operating in Jouf Airport will increase to four carriers: Air Arabia, flydubai, Nesma Airlines and Nile Air, while Tabuk’s Prince Sultan Bin Abdulaziz Airport will have six carriers: Air Arabia, AlMasria Universal Airlines, flydubai, Nesma Airlines, Nile Air and Royal Jordanian Airlines. He added that licensing the two carriers is part of GACA’s strategic plan to attract new airlines to operate in
Domestic flights carried 5,085,864 passengers in H2015 1 the various regional airports in Saudi Arabia, transforming them into international airports with new international destinations from different parts of the kingdom, according to a report in The Saudi Gazette.
Middle East News
King Fahd airport plans private-aviation terminal
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ing Fahd International Airport (KFIA) in Dammam in the Kingdom of Saudi Arabia has signed a contract with XP Jet America to establish and run a private-aviation terminal, Arab News reported. The project, scheduled for completion in two years, reflects the growing number of private aircraft in the region and the need for a dedicated terminal, it was reported. The terminal will be located north of the airport’s royal pavilion and will include a special aviation building on a private courtyard built to accommodate dozens of aircraft of different sizes. KFIA last year recorded a 16 per cent growth in air traffic compared with 2013, the highest rate since the airport opened. Passenger growth is set to touch new highs this year, with nine million people expected to pass through the airport, according to its management.
Doha airport served 28 million passengers in inaugural year
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amad International Airport (HIA), Qatar’s gateway to the world, has completed a year of operations and has served a total of 28 million passengers from June last year to May this year. HIA seamlessly transitioned from its previous hub, Doha International Airport (DIA), to its current stateof-the-art facilities and full commercial operations of the airport began on May 27 last year. The past year saw a total of 28,047,750 passengers arriving, departing and transferring through the airport, representing a 23.6 per cent year-on-year increase, having served 22.6 millon passengers in its previous hub at Doha International Airport (DIA). The airport has also handled more than one million metric tonnes of cargo in total in its first year, demonstrating a 12 per cent increase compared to the previous hub.
Vertis Aviation adds Bombardier Challenger 604 to fleet
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witzerland-based Vertis Aviation is expanding its activity in the Middle East with the addition of a Bombardier Challenger 604 under management. The aircraft, with a newly refurbished luxury interior and 11 VIP seats, will be operated under the AOC of a leading Middle East operator out of Doha International Airport in Qatar. “We are pleased with how our business is developing in the Middle East. Since
opening in Dubai early last year we have continued to expand our client base in this region, the second locally based aircraft is part of our long term strategy,” commented Vertis Aviation Partner Jeffrey Emmenis. Vertis Aviation specializes in long range business aircraft with a 14-strong fleet operating out of Europe, the Middle East, South Africa and Nassau.
September 2015
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Middle East News
New terminal opens at Madinah airport
Kuwait Airways receives its first A330-200
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uwait Airways has taken delivery of its first A330-200, becoming a new operator for the type. In February last year, Kuwait Airways announced the lease of 12 Airbus aircraft including 7 A320ceo and 5 A330-200s in addition to the purchase of 25 aircraft including 10 A350-900 and 15 A320neo Family aircraft marking the start of a major fleet renewal plan.
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he new terminal of Prince Mohammed Bin Abdul Aziz International Airport (PMIA) in Madinah Al-Munawarah has opened. The Public Private Partnership (PPP) and fast track Engineering, Procurement and Construction (EPC) project was completed in 30 months and is the first
USGBC LEED GOLD Certified airport terminal outside of the US and is also the first in the MENA region.
Kuwait Airways’ first A330-200 accommodates a three-class configuration of 17 full-sleeper first class modules, 30 very high-comfort business and 165 latest standard economy seats.
The GACA, as Grantor, has contracted with Tibah, as Investor, through a Build Operate and Transfer Agreement which is the first airport privatization in Saudi Arabia.
“The delivery of our first A330-200 marks a key milestone towards enhancing our fleet,” said Al Rasha Al Roumi, Kuwait Airways chairperson.
Consultancy tender for Musandam airport floated
A
tender for consultancy services for selecting a site for a regional airport in Musandam and airstrips in Madha and Diba has been floated by the Sultanate of Oman’s Ministry of Transport and Communications. The consultant will be required to conduct the study in two different stages. An official said that the first stage is related to conducting an initial study on four sites and the fifth site is to be selected by the consultant. The consultant will also be required to consider the construction of two runways in the wilayats of Diba and
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Madha, and consider the possibility of eliminating all hindrances at the existing Khasab airport, including de-
molishing the mountains, to ensure a smooth take-off from both sides of the runway.
Interpreting local traditions, embracing tomorrow’s needs
© ADPI in association with CSWADI and CACC
Engineers and architects creating outstanding and profitable airport facilities
Chengdu Shangliu International Aiport Chengdu, China
www.adp-i.com A member company of Aéroports de Paris Group
September 2015
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International News
$248 million for Chicago’s Midway Airport expansion
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Iceland to see rapid aviation growth
he Midway International Airport in Chicago will soon get a major facelift through a $248 million modernisation project. The expansion will increase the concession space by 50 per cent to 20,000 square feet, and expand the terminal parking area. The expansion of the terminal parking garage, currently in the design phase, will add four levels and 1,400 premium parking spaces, making it easy for the travellers to go in and come out. The city expects to double the concessions revenue by 2019. Chicago mayor Rahm Emanuel said the city will issue a request for proposal (RFP) for a single-entity concessions operator in September. As per the tentative schedule, the project will receive bids through mid-December, evaluate the bids in the first quarter of 2016 and forward the proposal in the City Council in the second quarter. The project is likely to create around 1,700 construction and concession jobs.
T
he increase in the number of international flights to and from Iceland has been massive in recent years and it is now forecast that 10 million passengers will use Keflavík International Airport in 2030. Since 2011, flight traffic at Keflavík has increased by 133 percent, RÚV reported. When the current air terminal opened in 1987 it dealt with 750,000 passengers a year. Ten years later that had topped one million, and went up to two million by 2005. This year there
September 2015
The growth is among the fastest anywhere in Europe and, according to airport operator Isavia’s latest prediction, the number could be ten million by 2030 and 14 million in 2040. National carrier Icelandair has enlarged its fleet from 12 planes in 2009 to 24 this year—as well as having 16 new Boeing 737 planes on order - some of those will be used to replace older aircraft in the fleet.
EASA issues foreign airline safety ‘passports’
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he European Aviation Safety Agency (EASA) has issued the first single air safety authorizations to 22 third country operators which will be valid throughout the European Union. The objective of this new scheme is cutting red-tape with a single document and maintaining high level of aviation safety in Europe. EU Transport Commissioner Violeta Bulc
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are likely to be 4.8 million passenger movements.
said: “The new safety authorization scheme has a clear European added value. It will take the safety of Europeans one step further by ensuring that third country operators flying to Europe match the highest safety standards, comparable to those the EU requires from European carriers. The ‘one-stop-shop’ approach means cutting red-tape and reducing administrative costs for airlines.”
International News
LAX to handle 100 million travelers by 2040
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he Los Angeles International Airport, already straining under a record number of passengers, could have over 100 million travelers annually by 2040, far more than the ceiling set by a 2006 court settlement that will soon expire. It is estimated that between 78.9 million and 100.7 million passengers a year will eventually pass
Frigate EcoJet to complete first flight in 2018
through the second-busiest commercial airport in the US. The international gateway had 70.7 million passengers last year. The 100-million-travelers forecast is important for LAX, which has surpassed its previous record of 67.3 million passengers set in 2000, according to a report in The Los Angeles Times.
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aunching a three-aisle wide-body airliner with a geometrically unique, ovular fuselage cross section always seemed an uphill struggle for a start-up Russian manufacturer, but the challenge in the end proved overwhelming. For Frigate Ecojet, a subsidiary of the Rosavia consortium, the problem was not technical but geographic. The Frigate Ecojet’s unique oval fuselage could give airlines the opportunity to replace two closely spaced narrow-body operations with a single flight. That allows the Frigate Ecojet to carry as many passengers as an A330-300, but weigh 17t less with the fuselage length of an A310-300.
FAA approves 1,000 commercial drone permits
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he US Federal Aviation Administration (FAA) had approved more than 1,000 applications from companies seeking to operate commercial drones, and currently approving applications at a rate of roughly 50 per week. Roughly a dozen companies were approved to operate drones commercially at the beginning of 2015. Since then, the unmanned aircraft systems (UAS) industry and the FAA have worked to streamline the approv-
al process. The agency has also loosened certain aspects of its commercial drone regulations to allow approved companies greater flexibility in how they use commercial drones. An economic impact report published by AUVSI indicated that in the first decade following the integration of commercial drones the US would see roughly $82 billion in economic impacts, stemming from both the manufacture and operation of drones as well as from the efficiencies they create.
September 2015
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ATM
US air controller study shows chronic fatigue
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study by the US Federal Aviation Administration (FAA) says that air traffic controllers’ work schedules often lead to chronic fatigue, making them less alert and endangering the safety of the national air traffic system.The study found that nearly two in 10 controllers had committed significant errors in the previous year - such as bringing planes too close together - and over half attributed the
errors to fatigue. A third of controllers said they perceived fatigue to be a ‘high’ or ‘extreme’ safety risk. More than six in 10 controllers indicated that in the previous year they had fallen asleep or experienced a lapse of attention while driving to or from midnight shifts, which typically begin about 10 pm and end around 6 am.
Pioneering system aims for safer drone air traffic
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esearchers at the University of Nevada are working on a new, low-altitude traffic management system to keep fast-moving flyers safer as they cruise through increasingly crowded skies. The University is participating in the first phase of the NASA UAS Traffic Management project to enable safer use of low-altitude airspace, of 500 feet and below, where autonomous aerial vehicles, helicopters, gliders and other general aircraft are operating.The University is working with Flirtey,
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the world’s first drone delivery service, and Drone America, one of the world’s top providers of unmanned autonomous vehicles. Flirtey and Drone America will be flying their delivery drone platforms at NASA’s Unmanned Traffic Management system test in Nevada and California. Together, NASA and the collaboration are working to pioneer safe drone delivery and humanitarian applications of drones across the country.
India plans to corporatize ANS
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ndia has planned a major institutional change in structure, with the possible corporatization of the Air Navigation Services (ANS) division of the Airports Authority of India (AAI) before the end of FY 2016. AAI has a dual role, as both the air navigation services provider (ANSP) and as the operator of 125 airports across India. The Ministry of Civil Aviation (MoCA) had indicated that it will accept the recommendation of a consultant to corporatize the ANS division of the AAI. This would involve hiving-off the division as an independent autonomous body with separate financials. The new ANS entity would be subject to stringent performance parameters and monitoring mechanisms. India is the ninth largest aviation market in the world by annual seat capacity and CAPA projects it will be the third largest aviation market in the world, after the US and China, by 2025. Today, approximately 80 Indian airports handle scheduled services, operated by nine domestic airlines, with a combined fleet of some 400 aircraft.
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Opinion
Climate action has taken flight most challenging – for the 2020 goal a global marketbased measure for aviation.
Tony Tyler Director General & CEO International Air Transport Association (IATA)
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e cannot have sustainable economic development without strong social progress and people cannot continue to live in a world with significant climate change risks. The aviation sector currently supports 58 million jobs and $2.4 trillion in GDP. Over half of all international tourists and a third of world trade travels by air. And the growth in air travel is benefiting the trade and tourism of developing and emerging economies the most. I am extremely proud to say that aviation took early action and, back in 2009, put together a comprehensive and ambitious plan. We have spent the last six years making that plan a reality. Our climate action framework includes three key goals. A short-term fuel efficiency goal, which I am pleased to say we are currently surpassing; a mid-term goal to stabilize net carbon dioxide emissions from aviation at 2020 levels. Coincidentally, 2020 is also the date at which the Paris Agreement we are all hoping for is due to come into force. The long-term goal is to halve CO2 emissions from the sector by 2050. These goals are being pursued through a package of measures encompassing new technology, operational improvements, more efficient infrastructure and – perhaps
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For aviation, business as usual is improving energy efficiency. It has always been that way. Even before we set our industry-wide goals, the sector has been improving our fuel burn. And since 2009, airlines have spent nearly a trillion dollars putting new energy-efficient aircraft into their fleets. Another pillar of our climate action plan is the development of a global market-based measure for air transport. This is unusual – to have an industry enthusiastically pushing for such regulation on an international scale is not common – but it is a pragmatic response to the likely alternative: a patchwork of unilateral, unrelated and complex taxes and charges. A global industry such as ours requires a global solution and the world’s governments have agreed to develop the Market Based Measures (MBM) at the ICAO. A simple, global, offsetting mechanism that ensures fair treatment of all airlines and simplicity of design will help deliver the greatest environmental integrity in the most cost-effective way. Progress is extremely encouraging and we are putting all of our efforts into achieving a final agreement in September next year. This is not a process without challenges of course, but it is also the first time such a global mechanism for an individual sector has ever been attempted. Once again, aviation is showing leadership. For one sector at least, climate action really has taken flight.
Edited excerpts from a speech at the Aviation and Climate Change Special Event at the Paris Air Show 2015
Opinion
Innovation key driver to future growth Hong Kong’s strategic location at the doorstep of south China, supported by world-class infrastructure and a well-established global trading network, makes it the preferred logistics hub in Asia for goods moved by sea, air or land. Of the total freight throughput handled by Hong Kong, some 70 per cent is related to south China. Hong Kong stands ready to play a prominent role in such regional growth as a ‘super-connector’ between China and the world. Today, about 20 per cent of China’s international trade is handled by Hong Kong. Hong Kong offers a wide choice of multimodal transportation links that are much treasured for their flexibility and versatility. To strengthen Hong Kong’s role as the preferred logistics hub in Asia, the government is undertaking major infrastructure projects to enhance the city’s physical connectivity with Mainland China and the rest of the world. Hong Kong International Airport has consistently ranked among the world’s busiest passenger and cargo airports. Indeed, we are, for a number of years, the world’s busiest cargo airport and we are the third busiest international passenger airport after Dubai International and London Heathrow. Every day, we have more than 1,100 flights operated by over 100 airlines, connecting our airport to about 180 destinations worldwide, including 45 destinations on the Mainland China. From Hong Kong, one can reach all major Asian economies within four hours’ flight and half of the world’s population within five hours’ flight. To enhance the airport’s handling capacity, the Hong Kong Airport Authority is taking forward the implementation of the three-runway system, with a target
Prof. Anthony Cheung Bing-leung Transport and Housing Secretary Hong Kong Special Administrative Region
commissioning date of 2023. The future three-runway system will increase the practical maximum capacity of the airport by 60 per cent, to handle about 100 million passengers and close to nine million tonnes of cargo per year by 2030. Sponsorship programmes are launched to encourage the adoption of e-freight which can enhance companies’ cargo-handling reliability and efficiency. A Secure Air Freight Enclosure (SAFE) project is supported to develop a device for real-time monitoring of air cargo while carried on trucks to prevent unauthorized tampering. Looking ahead, innovation will be a key driver to future growth. And innovation relies on human talent. To this end, the Hong Kong Government has set up a HK$100 million Maritime and Aviation Training Fund last year to nurture new talent and facilitate professional upgrading. Hong Kong is getting prepared to participate in and contribute to the phenomenal regional growth expected in the next decades.
Edited excerpts from speech at the Global Port Research Alliance Conference on Logistics Connectivity
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Airlines
Cut the fat, not the muscle
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he airline industry is hampered by slim profit margins, forcing carriers to focus on both cost reduction and revenue growth through better customer interactions, according to a study by Strategy&, part of the PwC network.
The global airline industry continues to grow rapidly, but consistent and robust profitability is elusive. Measured by revenue, the industry has doubled over the past decade, from $369 billion in 2004 to a projected $746 billion in 2014. Much of that growth has been driven by low-cost carriers (LCCs), which now control some 25 percent of the worldwide market and which have been expanding rapidly in emerging markets. Yet profit margins are razor thin, less than three percent overall.
In the commercial aviation sector, just about every player in the value chain turns a tidy profit. Yet it’s one of the enduring ironies of the industry that the airlines that actually move passengers from one place to another, the most crucial link in the chain, struggle to break even. That is largely due to the complex nature of the business, manifested in part by the significant degree of regulation (which minimizes consolidation), and the vulnerability of airlines
Consumer disaffection is challenging for carriers to address to exogenous events that happen with great regularity, such as security concerns. The airline industry is one of the few sectors that have seen prices fall for decades. Since the 1950s, airline yields have consistently dropped. The report stated that airlines must continue to focus on top-line growth because their limited profitability depends almost solely on revenue gains, while increasing productivity in order to shore up and perhaps even increase margins. The way individual commercial airlines react to and navigate several trends playing out across the globe will determine carrier performance in the coming years.
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Airlines
People have grown accustomed to seeing significant improvements in their experiences with things they buy. Large and small products are more reliable and more user-friendly than ever before. Consider how cars have progressed even in the past decade, with upgraded safety and entertainment features, and far better handling and fuel consumption. Yet air travel has not followed this pattern. It remains for many a disappointing, grumble-worthy experience. Air travel remains for many a disappointing, grumble-worthy experience. Consumer disaffection is challenging for carriers to address. Enhancing the “soft product” — through a welcoming and seamless customer experience across all aspects of air travel, from reservation to touchdown — is cheaper, but often more difficult to implement. Typically, such enhancements entail a wholesale behavioral and cultural shift within the organization, particularly for frontline, customer-facing employee. Airlines need to make large and ongoing improvements to operate more efficiently. With few exceptions, the most successful airlines are those with the strictest cost controls. The biggest (albeit cash-intensive) lever to reduce costs lies in fuel efficiency, as jet fuel typically accounts for 40 to 55 percent of operating expenses. Carriers with sufficient funds have been gradually modernizing their fleet to incorporate more fuel-efficient aircraft. Yet, because planes are so expensive, this approach has real value only if it is thoughtfully implemented in line with the carrier’s long-term plans for the configuration of its network, such as the programmatic expansion of certain routes over a period of years.
In the commercial aviation sector, just about every player in the value chain turns a tidy profit Cost reduction can also be achieved through enhancements in organizational structure, operating model, and work practices. In particular, legacy airlines have often built up complex processes over decades that cost far more than the streamlined processes of the LCCs. For example, the systems that the legacy carriers have in place to handle transfer passengers were designed when their networks were far smaller. Today, those systems have layers and layers of complexity built in, making them cumbersome and costly in many cases. The rapid growth of air travel in developing markets is shifting the industry’s center of gravity. Middle East carriers such as Emirates, Etihad Airways, and Qatar Airways are taking a large slice of the formerly profitable Europe–Asia traffic from those continents’ legacy airlines.
The Middle East carriers are highly dependent on connecting traffic, because their home markets are limited by the smaller population of their region. Yet their unique geographic positioning — most of the world’s population is within eight hours’ flying time — means they are able to capture a disproportionate share of long-haul market growth. Similarly, LCCs continue to experience above-average growth rates for the industry, particularly in emerging economies with many first-time fliers. LCCs also increasingly face rising customer expectations, especially in mature markets. These carriers will need to find the right balance between making investments to improve the experience they offer and maintaining their cost advantage.
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Cargo & Logistics
Bright future for logistics industry in UAE
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n an exclusive interview with Via Dubai, Italy’s Francesco Parisi, President of International Federation of Freight Forwarders Associations (FIATA) for a threeyear tenure ending October, shared insights into the challenges facing the global logistics industry and how the UAE has become a global logistics hub due to its vision and ceaseless infrastructure investments. FIATA has been dramatically transformed since its establishment in 1926. Isn’t it? FIATA is a non-governmental organization representing 40,000 forwarding and logistics companies, employing up to 10 million people in 160 countries. FIATA has consultative status with the UN bodies and global trade organizations. We have created several documents and forms to establish a uniform standard for use by freight forwarders worldwide. These have greatly contributed in the facilitation of international exchanges and will continue in the future to be valuable instruments in the service of world trade. FIATA is structured into Institutes, Advisory Bodies and Working Groups. FIATA has three -Airfreight Institute (AFI), Customs Affairs Institute (CAI) and Multimodal Transport Institute (MTI). We have five Advisory Bodies for International Affairs, Information Technology, Legal Matters, Safety and Security and Vocational Train-
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ing. FIATA Foundation Vocational Training assists associations in less-privileged countries to build up and enhance professional skills. We have four regions for memberships and operations - Africa/Middle East, Americas, Asia/Pacific and Europe.
problems. RAME is one of the fastest developing areas in the world in terms of trade growth and logistics. Consequently, our industry in this area is faced with challenges connected with growth. FIATA has to hear what our members need directly from the local practitioners.
UAE has ‘amazing and remarkable’ infrastructure
The regional field meetings acts as important platforms for dialogue between all stakeholders in the logistics industry and help FIATA understand regional issues.
You participated in the FIATA Region Africa Middle East (RAME) meeting in Dubai. How important are these regional meetings in enhancing the industry’s growth? The primary target of the Regional Meetings is to bring forward the regional issues. The intention is to identify and assist regional members in solving their local industry
They offer us an opportunity to listen and understand and, as it happens, to promote the image of FIATA and its knowledge base within our constituents. RAME presently has 1259 members. FIATA established RAME along with two similar meetings for Asia Pacific and Europe in September 2000. Today, RAME represent 14 national association members from Africa and eight from the Middle East and about 1800 freight forwarding companies are individual members, of which 140 represents 12 countries
Cargo & Logistics
that do not have national associations. Efforts were being made to enhance membership in the remaining 40 African countries and nine Middle East countries to be national members of FIATA. How is logistics industry performing globally and in the Middle East in particular? Logistics industry is connected to the GDP growth of countries and also to the growth of global trade. We believe that logistics industry is flourishing in some countries, especially in countries and regions where trade is growing, and may have some problems where growth is slow. In general terms, as facilitators of trade, it is growing. It has been growing more globally than domestically. We appreciate countries that understand the value and contribution of logistics to their socio-economic wellbeing. Dubai has and continues to invest, both in hard and soft infrastructure in the logistics domain. Members selected Dubai for hosting RAME2015 as this will provide an opportunity how infrastructure contributes to logistics industry growth and
thereby create a momentum to promote infrastructure in other parts of the Middle East and Africa region. Generally speaking, this region is flourishing and we appreciate countries that understand the role logistics plays as a real instrument for the growth of their country.
Logistics industry is flourishing in countries with good infrastructure From the logistics industry perspective, how do you see the future of Dubai? It has been amazing and remarkable development all along these years. I see that people involved in the administration of this country in general and Dubai in particular understand that you should not stand behind others and have to
prepare themselves for growth. Dubai is at the centre of a vast region which has the prospects of stronger growth than others.There are countries around which are less developed and I see an absolutely bright future for the country. I think it has a brilliant future as the government and people have understood the strategic importance of logistics to the economy. Dubai hosted FIATA Congress twice, first in 1999 and again in 2007. Dubai has transformed itself into a significant global logistics hub. Middle East is ‘filling a gap’ for Africa, Central Asia, India and Pakistan. The Middle East, according to the Agility Emerging Markets Logistics Index 2014, offers “extremely lucrative” opportunities as a global logistics hub. The UAE topped all other countries in the Index as having the best domestic and international transport infrastructure and best connections. What are the major challenges facing the logistics industry globally? There are many challenges that the logistics industry faces globally. There are challenges thrown up by instability in some regions. Some developed countries have not invested in the infrastructure expansion. A good example is the congestion at ports in the west coast of the US which recently resulted in cargo ships getting stranded for days. FIATA is pursuing with all governments and international trade organizations to invest in infrastructure for logistics industry and we are making them aware about the benefits that this will bring to their economies and enhance global trade flows. Sustainable growth is possible through infrastructure investments.
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Cargo & Logistics
Beluga XLs to enter into service in 2019
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irbus has selected its major aerostructure suppliers for the Beluga XL, the new oversize air transporter. The selected suppliers will provide their know-how to Airbus for developing major parts of the unique Beluga XL. Further suppliers are being selected and will be announced in due course. The new Beluga was launched in November 2014 and named Beluga XL
for its increased dimensions on the current Belugas in operation. The additional one metre in width and six metres in length will allow the Beluga XL to carry two A350 XWB wings at a time, twice that of the current Beluga. The Beluga XL was launched to address the transport capacity requirement for the A350 XWB ramp-up and other aircraft production rate increases. Compared to the current Beluga, the
Beluga XL will provide Airbus with an additional 30 per cent air transport capacity. The new oversize air transporters are based on the A330, with a large re-use of existing components and equipment. The design concept is similar to the current Beluga, with the distinctive lowered cockpit, cargo bay structure, rear-end and tail being amongst the items which are newly developed. The first of five Beluga XLs will enter into service in 2019.
New B747 freighter joins QA Cargo
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atar Airways Cargo’s first Boeing B747 freighter has joined the carrier’s expanding fleet having completed its first flight from Doha to Hong Kong. Qatar Airways Cargo operates one of the most modern freighter fleets in the sky comprised of Boeing B777 and Airbus A330 freighters. The Boeing B747-400BCF heavy cargo aircraft and its 112.5 tonnes capacity will enable Qatar Airways Cargo to satisfy growing demand for
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outsized freight transportation from customers investing in significant infrastructure projects in the Middle East and throughout the world. The airline will welcome a Boeing B747-400F with a nose-loading door to its fleet in October, replacing the existing Boeing B747BCF. Qatar Airways Cargo confirmed an order for an additional four Boeing B777Fs at the Paris Air Show in June, increasing its outstanding fleet order to eight Boeing B777Fs and two Airbus A330Fs.The cargo
airline operates from Hamad International Airport in Doha, where its cargo terminal is one of the largest in the world. Operating an advanced air cargo handling system, the cargo complex has a capacity to process 1.4 million tonnes of cargo per year and can accommodate 11 widebody freighters with 42 airside loading docks to facilitate the swift and efficient transfer of cargo in to and out of Qatar.
Cargo & Logistics
Air cargo performance not encouraging in H1
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he International Air Transport Association (IATA) released data for global air freight markets showing a slowdown in growth for air cargo demand in the first half of this year, consistent with falling trade activity and weaker than expected global growth. The general trend of a weaker 2015 compared to 2014 can be seen in the half-year data. Air freight markets expanded by 5.8 per cent in 2014, while the year-
Indonesian domestic airfreight hits turbulence
to-date growth this year stands at 3.5 per cent. Tony Tyler, IATA’s Director General and CEO, said: “The half-year report for air cargo is not encouraging. Markets are basically stagnating. Some carriers are doing better than others at picking up the business that is out there. But overall it has been a disappointing first half of 2015, especially considering the strong finish to 2014.
Indonesia’s airfreight services industry will likely flat line this year amid the domestic economic slowdown, which has affected exports and imports, according to a report in The Jakarta Post. In line with global and regional airfreight performance, during the first half of this year, national-flag carrier Garuda Indonesia’s cargo volume decreased to 176,000 tonnes from 193,500 tonnes in the same period last year. Garuda’s 60 percent of the cargo revenues were derived from the domestic market, while the remaining 40 percent came from the international market, mainly in China, South Korea and Japan.
Battery packaging standards embraced by PRBA
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he major trade group representing lithium-battery manufacturers has agreed to the outlines of significantly tighter fire-retardant packaging standards for airborne shipments of such power cells world-
wide, a move likely to pave the way for short-term and longer-range enhancements.Lithium batteries, packed tightly together, can overheat or catch fire if they are damaged or experience short circuits. They have been implicated in intense, quickly spreading fires that brought down two jumbo freighters, and ravaged another big cargo jet on the ground, over the past nine years. Rechargeable Battery Association (PRBA) indicated it supports the framework for new rules recently
adopted by a UN-backed advisory panel, intended to prevent the spread of flames, explosive vapors and hazardous fragments in the cargo holds of commercial aircraft. The association’s statement represents the clearest sign yet that battery makers expect fundamental changes—potentially including how individual power cells are packaged and how much charge they are allowed to carry—when lithium batteries are prepared for airborne shipments in the future.
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Technology
ROPS capability now across Airbus fleet
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irbus has achieved the European Aviation Safety Agency (EASA) certification of its Runway Overrun Prevention System (ROPS) technology on A330 Family aircraft.
This onboard cockpit technology, which Airbus has pioneered, is now certified and available on all Airbus Families. ROPS is an alerting system which reduces exposure to runway overrun risk, and if necessary, provides active protection. Korean Air will become the first A330 operator to implement ROPS on its A330s in service in the coming months.
This EASA certification of ROPS on the A330 marks a key milestone in making ROPS available for line-fit and retrofit to all Airbus models. ROPS was first approved by the EASA on the A380 in October 2009 and to date is currently in service or ordered on most of the A380 fleet. ROPS is also part of the A350 XWB’s basic configuration, and in August 2013 was also certified for the A320 Family.
It is already in service on the A380, A350 and A320 families. Runway excursion – meaning either an aircraft veering off the side of the runway, or overrunning at the very end – remains the primary cause of civil airliner hull losses, have now largely been eliminated. The EASA, NTSB, Eurocontrol and FAA are fully behind the introduction of effective measures by commercial aviation stakeholders to eliminate the risk of runway excursions.
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Technology
Quebec airport staff first in the world to use Apple Watch
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ITA and Québec City Jean Lesage International Airport (YQB), which served more than 1.5 million passengers in 2014, have unveiled the world’s first use of the Apple Watch for an airport workforce. the airport, to push regular operational alerts to duty managers and ensure operations run smoothly. They may get an alert to say that two planes are arriving simultaneously, and have been assigned to the same gate or that there is a delay at a certain gate. Previously, they would have checked their tablets regularly for updates. With the watch, a vibration alerts them to an update so they receive vital information just by glancing at their wrist. They can then take immediate action. The SITA Lab team built the application for the airport and conducted all the systems integration work to link the Apple Watch to the SITA Airport Management solution.
This is another in a series of world “firsts” for SITA Lab, SITA’s research and development team, which continues to pioneer new technology for the air transport community. The airport will use the watches to connect to the SITA Airport Management solution, which is already in use at
The solution, which is in use at 150 airports in 48 countries, streamlines airport operations by enabling the airport to control all its operations from a single central control center and adapt to an ever-changing environment. This includes accessing all the information necessary to make decisions and manage resources in real time. It delivers a new level of business intelligence that allows airports to balance operational efficiency with business results.
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