Via Dubai Magazine | October 2014

Monthly Newsletter issued by Dubai Civil Aviation Authority

www.viadubaionline.com

Issue 17 October 2014

AReady ‘Jewel’ In The Making for Take Off

Inside DCAA GDRFA opens 3 customer service centre at Dubai airport

UAE in Focus UAE shines in economic competitiveness

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Dubai trade surges to 12 AED654 billion in H1 2014

Emirates launches daily flights to Oslo

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Middle East ME hubs improve their 14 growth patterns

4 DCAA raising the performance bar

The Future of Air Travel

International Average procurement 17 budget of airports rise

Airlines Malaysia Airlines cut 6000 jobs

Hani Abu El Soud

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Opinion

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Asset management for Gulf airports

ATM Boeing working 28 to improve global ATM system

22

21

Tariq Chauhan

In Focus 22

Recipe to improve Caribbean aviation

Public investment in air transport development

21

Ilham Aliyev

20

Cargo & Logistics 24

David Evans

ANSPs operate as monopolists

20

David McMillan

Technology 26

Message from the President In 2007, the functions of the Department of Civil Aviation were restructured. Accordingly, the Dubai Civil Aviation Authority (DCAA) was established as a regulatory body, by a decree of H.H. Sheikh Mohammed Bin Rashid AlMaktoum, Ruler of Dubai, on proclamation of law No. 21 of 2007, as amended by law No. 19 of 2010, to undertake development of Air Transport Industry in the Emirate of Dubai and to oversee all aviation-related activities.

Via Dubai is the official bilingual monthly newsletter of DCAA, designed to highlight the initiatives and developments in the aviation industry and act as a knowledge-sharing platform for all the stakeholders and aviation professionals.

General Supervision Mohammed Abdulla Ahli Coordinator Hanan Al Mazimi Executive Editor Mohammed Abdul Mannan Creative Manager Mohammed Al Jarouf E-mail: viadubai@naddalshiba.com Legal Disclaimer The views expressed in the articles are of the writers and not necessarily belong to DCAA. We take all reasonable steps to keep the information current and accurate, but errors can occur. The information is therefore provided as is, with no guarantee of accuracy, completeness or timeliness. The DCAA or Via Dubai does not warrant or assume any legal liability or responsibility for the quality, accuracy, completeness, legality, reliability or usefulness of any information. Via Dubai does not endorse or recommend any article, product, service or information mentioned in the newsletter. Any perceived slight of any person or organisation is completely unintentional.

Advertise with us Editorial, Production, PR & Marketing Nadd AlShiba PR and Event Management

Tel +971 4 25 66 707 Fax +971 4 25 66 704 info@naddalshiba.com www.naddalshiba.com

Giant project

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new chapter in the history of civil aviation industry in Dubai is being written with endorsement of massive expansion plans for the Al Maktoum International Airport (AMIA) in Dubai World Central (DWC) by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai.

The giant project will see Al Maktoum International Airport which started its cargo operations in 2010 and passenger operations in 2013, being expanded in two phases, the first costing AED120 billion and to be completed over the next six to eight years.

This expansion of the airport, occupying an area of 56 kilometres, will make AMIA the biggest airport in the world with a capacity to handle 200 million passengers annually.

The giant project, endorsed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, will come up on an area of ​​56 square kilometers and will Besides bringing immense socioeconomic benefits to the UAE in general and Dubai in particular, it will help make Dubai an undisputed leader in the global aviation industry as the centre of the global travel map of the 21st century.

The expanded airport will allow Dubai the opportunity to comfortably accommodate the anticipated huge increase in the volume of passengers

Ahmed bin Saeed Al Maktoum which is projected to reach the 100 million mark in the coming years.

The uniqueness of the project lies in the deployment of the latest technology in every aspect of its designing, planning and operations like solar energy use, waste management, biometrics, passenger tracking systems and baggage automation, to accelerate the movement of travel and offer seamless experience.

The project will be focus on the use of technologies and solutions of the highest international standards in the field of preservation of environment and sustainability.

It will not only provide the best experience for the travelers, but takeoff and landing of the aircraft will also be a best experience through five parallel runways, each with a length of 4.5 kilometers and linked to a network of airport facilities, which are capable of receiving new generations of aircraft simultaneously.

Through its several successful projects, especially in the aviation domain, Dubai has proved in the past that its eyes are focused on the future and its ability to think ahead of times is what sets it apart from others as a distinguished destination.

Printed by Printwell Dubai

Our Vision Dubai Civil Aviation Authority is driven by the vision of Dubai to become the global Aviation Capital contributing to prosperity and enabling growth for Dubai.

Our Mission Dubai Civil Aviation Authority is committed to support the aviation sector in:

E-mail: dcaa@dcaa.gov.ae Website: www.dcaa.gov.ae Tel: (971) 4 216 2009 Fax: (971) 4 224 4502 P.O.BOX 49888 Dubai, United Arab Emirates

u Capturing the full value potential as a global passenger, tourism, trade, cargo and logistic hub u Providing the capacity, connectivity and leveraging existing assets to meet the aviation sector and economic growth plans of Dubai u Ensuring sustainable and responsible growth committed to safety, health, environment and security u Providing and creating customer-focused services to gain competitive advantage from innovation, knowledge and efficiency u Building and retaining capabilities, for the aviation sector, while offering career opportunities for Nationals u Ensuring a transparent, effective and commercially balanced regulatory framework that reflects the interests of the aviation industry, Dubai and the UAE u Providing efficient and cost-effective services to the aviation sector

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Message

from the Director General

DCAA workshop reviews future strategies Mohammed Abdulla Ahli

For a better future

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n a globalized economy, airports have become crucial economic growth engines.

The successful transformation of Dubai International Airport over the past decades, during which it handled over 400 million passengers and has come closer to becoming the world’s busiest airport for international passengers, is a testimony to the socioeconomic benefits of the aviation.

The propensity to travel due to ever-expanding air connectivity and opening up of the world for business and leisure activities is resulting in a continuous increase in the volume of air travelers around the world.

The number of air travelers globally, according to industry projections, is expected to reach seven billion by 2020 and nine billion by 2050. Cargo traffic is also expected to grow by the end of the third decade of 21st century.

In 2014, Dubai International is projected to handle about 70 million passengers. Between 2003 and 2013, the airport has recorded an average of an annual growth of 15 per cent, which is far above the global averages.

Huge air traffic growth has been projected for Dubai, which is currently the 50th city in the world to host two international airports, taking into account the unrivalled fleet expansion programme of Emirates and flydubai, among other factors.

The emerging scenario demonstrates the importance of our expanding the aviation infrastructure for the future. In Dubai, we continue to lead by thinking ahead of the time and making investments in our infrastructure, both in the air and on the ground.

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he Dubai Civil Aviation Authority (DCAA) had organized a workshop for its senior and middle-level management members to review its Strategy Plan 2013-2015 in view of the rapid developments in the civil aviation sector in the emirate and keep up with the tremendous growth in the run up to the Expo 2020 that will be hosted by Dubai.

Mohammed Abdulla Ahli, Director General of DCAA, opened the workshop which was attended by the directors, assistant directors and heads of departments and members of the Office of Strategy and Organizational Excellence.

Mohammed Ahli, said: “The Authority is committed to providing unlimited support to the industry stakeholders and participate in the growth of the aviation sector in Dubai while maintaining highest standards of security, safety and environment sustainability.”

Capturing a bigger slice of the air travel market and offering Dubai as an ideal global aviation hub is a high priority for us.

He referred to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, about achieving comprehensive and sustainable development in various strategic sectors in order to ensure the prosperity and sustainable growth of the country’s economy.”

The announcement by His Highness Sheikh Mohammed bin Rashid Al Maktoum about the expansion of Al Maktoum International Airport (AMIA) with an outlay of AED120 billion, will be a big leap forward towards our goal of having the world’s biggest airport with a capacity of 200 million passengers.

The review of strategy plan comes against the backdrop of Sheikh Mohammed’s endorsement of Al Maktoum International Airport’s AED120 billion expansion to make it the world’s biggest airport with a capacity to handle 200 million passengers on completion.

They say if you build, they will come. They will come only if you build it the right way and at the right time. Dubai has the game-changing recipe working for a better future, not just for itself but for the whole world.

The workshop participants debated about the Strategy Plan 2013-2015 and gave their inputs about the challenges and opportunities that the aviation industry expansion will bring in the coming years. 

October 2014

Inside DCAA

GDRFA customer service centre opens at Dubai airport

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ohammed Abdulla Ahli, Director General of Dubai Civil Aviation Authority (DCAA), and Major General Mohammed Ahmed Al Marri, Director General of the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFADubai), have formally opened a GDRFA customer service center in Terminal 3 at the Dubai International Airport. The centre provides all the services to customers 24/7.

Mohammed Ahli said the customer centre comes in line with the vision of His Highness

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai and directives of His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA and Chairman of Dubai Airports, for taking the customer service levels a few notches up and apply global best practices for customer satisfaction.

Major General Mohammed Al Marri said the center offers all the services provided by the GDRFA-Dubai, which includes renewal of passports of UAE citizens, entry permits,

residency visas of all kinds, cancellation, renewal and extension of the residence permits and issuance and renewal of Smart gate cards.

Present at the ceremony were Major General Ahmed Mohammed bin Thani, Assistant Director General for the Airport Security at Dubai Police, Major General Obaid Mohair bin Suroor, Deputy Director General of GDRFA-Dubai, and other senior officials of DCAA, GDRFA-Dubai and Emirates Airlines. 

DCAA participates in GITEX-2014

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or the seventh consecutive year, the Dubai Civil Aviation Authority (DCAA) will participate in the 2014 edition of Gulf Information Technology Exhibition (GITEX) in Dubai from October 12 to 16.

The world’s third biggest ICT show will take place in Dubai International Convention and Exhibition Centre (DICEC). DCAA’s participation will be under the umbrella of Dubai Smart government.

The Authority will utilize the exhibition to showcase its smart

services launched for customers for the ease of business.

The participation will also help the authority’s key functionaries to keep themselves abreast with the latest technologies The Authority is continuously working to provide excellent services to satisfy the needs of its customers and in realizing the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, about the smart government initiative.  October 2014

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Cover Story

AED120 billion AMIA expansion

A ‘Jewel’ In The Making 4

October 2014

Cover Story

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is Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has endorsed the AED120 billion expansion of the Al Maktoum International Airport in Dubai World Central (DWC) to make it the world’s biggest airport with a capacity to handle 200 million passengers and 12 million tonnes of cargo per year.

October 2014

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Cover Story

Dubai’s second international airport started passenger operations in October 2013, three years after the launch of cargo operations.

With the completion of the first of the two phased project, the airport will be able to host 100 Airbus A380 aircraft at any one time.

The first phase of expansion is expected to be completed within six to eight years. The entire development will cover 56 square kilo-

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October 2014

meters in Jebel Ali with the Expo 2020 site in the vicinity.

On September 6, His Highness Sheikh Mohammed viewed the architectural designs and endorsed the airport expansion in two phases.

He was accompanied by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, His Highness Sheikh Maktoum bin Mohammed

bin Rashid Al Maktoum, Deputy Ruler of Dubai, and His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority (DCAA), Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group.

Briefing the delegation, Sheikh Ahmed said the project will be carried out in two phases, covering an area of 65 square kilometres in Jebel Ali and 40 kilometres away from the centre of Dubai. The first stage could cost up to AED120 billion.

Sheikh Mohammed had a detailed look at the project’s “the light box-the jewel design” and expressed his admiration about the idea and its simplicity and ordered its implementation. He said the giant project will be economically beneficial and will contribute significantly to the promotion of several industries like the air transport and shipping besides attracting investments.

The project, he added, reflects the county’s interest in strengthening its status in general and that of Dubai in particular.

Sheikh Ahmed said the latest technical innovations have been adopted in the airport designing with the possibility of future updates, with a focus on sustainability and a commitment to the application of environmental standards such as solar energy generation and solid waste and waste water treatment. Other areas of focus will be the adoption of modern

Cover Story

The project reflects the country’s interest in strengthening its status in general and that of Dubai in particular

technologies, biometrics and smart tracking system for travelers.

He explained the salient features of the airport building and five parallel runways.

Each runway will be 4.5 kilometres long and spaced apart to allow the use of four runways for landing and takeoff of aircraft at the same time.

He also said there will be a triple network tract classified “F” along the sides of the two runways along the passenger stations buildings, located in the centre of the airport, in addition to the triple network intersecting with the previous network across the buildings area to secure movement of aircraft within a short time.

He added that there will be two main buildings, one for arrivals and the other for departures, in addition to the four Concourse buildings, each 2.8 kilometres long with three central points.

All stations will be seven times the size of a football field. Each station will have 100 parking spaces for wide-bodied airplanes and will hold 65 million passengers. Thus the total capacity of the airport will hold 220 million passengers with 400 aircraft parking spaces.

Sheikh Mohammed was given a visual presentation about the development of air, land and maritime transport in Dubai and the updating of these facilities in the city which

has, after more than fifty years of development, modernization and construction, become one the top cities in the world.

Eng. Khalifa Al Zafeen, Executive Chairman of Dubai Aviation City Corporation, which is overseeing the DWC development, briefed the royal entourage about the key characteristics and advantages of each of the proposed designs prepared by Dubai Aviation Engineering Projects (DAEP).

WAM, the official news agency of UAE, quoted Sheikh Mohammed as saying: “We look forward to providing the-state-of-art infrastructure and build stronger and diversified national economy to sustain welfare of Emirati people.”

Currently over half of passengers flying to Dubai are connecting to other destinations and the new airport will build a system of automated trains and people movers to ferry people between gates. The two terminals will be served by three runways while the airport’s master plan has space to add two more.

Dubai Airports, operator of both Dubai International and Al Maktoum International airports, welcomed the endorsement of the AED120 billion expansion plans by Sheikh Mohammed. The development is anticipated to be the biggest airport project in the world.

Dubai Airports says with passenger traffic expected to reach almost 100 million at Dubai International by the end of 2020, the further development of DWC will be a vital step towards providing the necessary facilities to accommodate passenger and cargo growth in the decades ahead. This will also pave the way for Emirates Airlines to relo-

cate their intercontinental hub operations to DWC by the mid-2020s.

Paul Griffiths, CEO of Dubai Airports, thanked Sheikh Mohammed for his visionary support of the project, and described the new airport as a vital investment in the future of Dubai.

He confirmed that the aviation sector was projected to remain a cornerstone of Dubai’s economy. A 2011 study conducted by Oxford Economics revealed that aviation supports 250,000 jobs, 19 per cent of Dubai’s employment and 28 per cent of Dubai’s GDP. By 2020, that will increase to 32 per cent of Dubai’s GDP ($45.4 billion), 22 per cent of employment or 372,900 jobs.

He remarked: “Our future lies at DWC. With limited options for further growth at Dubai International, we are taking the next step to securing our future by building a brand new airport that will not only create the capacity we will need in the coming decades but also provide state of the art facilities that revolutionize the airport experience on an unprecedented scale.” Presently, Qatar Airways, Wizz Air, Al Jazeera Airways and Gulf Air operate flights to and from AMIA. Since the opening, passenger volumes at DWC continued to gain momentum, with 102,137 passengers passing through the airport in the first three months of the year.

This was the first full quarter of operations since the new terminal was opened. Between April and June, it recorded 475,992 passengers, a sharp rise from 102,137 passengers in the first quarter this year. Last year, Dubai International handled over 66 million passengers, maintaining its position as the world’s second busiest airport for international passengers. This year, the traffic is expected to be around 70 million passengers. Experts forecasts that air traffic in Dubai could reach 190 million passengers a year by 2030, rising to 250 million by 2040 and 300 million by the middle of this century. 

October 2014

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Exclusive

Raising the performance bar

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slew of initiatives have been launched by DCAA to realize its strategic objectives and meet the demands of a fast-expanding aviation industry

The Dubai Civil Aviation Authority (DCAA) has achieved major progress in realizing its strategic objectives through a slew of initiatives designed to strengthen its operational performance, competency and capacity.

The Authority has acquired new ISO14001, and ISO 18001 certifications, enlarging its Smart services portfolio and revisiting future strategies to meet the demands of the everevolving, rapidly-expanding aviation industry that contributes over 28 per cent to Dubai’s GDP. In an exclusive interview with Via Dubai, Hani Abu El Soud, Head of Strategy and Organizational Excellence at DCAA, a number of initiatives have been taken to enhance customer services, expand the use of social media to reach out customers and further build its corporate social responsibility (CSR) strengths.

DCAA has been focused on enhancing quality standards. What is the latest progress?

DCAA acquired the ISO 9001: 2008 certification three years ago. It has been renewed for another three year term this year.

The Quality Management System (QMS) certification enables an organization to demonstrate its commitment to quality and customer satisfaction.

The goal is for all organizations to seek continuous performance improvement.

The Authority also implemented the requirements of ISO 14001 and ISO18001 and just recently obtained these certifications. This achievement has come after years of working successfully on building the processes and systems required for these global standards.

ISO 14001 EMS (Environment Management System) is an internationally accepted standard that outlines how to put an effective environmental management system in place. It is designed to help organizations remain successful

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October 2014

The goal is for all organizations to seek continuous performance improvement in achieving their goals without overlooking environmental responsibilities.

The system provides the framework to allow you to meet increasingly high customer expectations of corporate responsibility as well as legal or regulatory requirements. More importantly, it enables us prepare for the changing business landscape confidently.

The ISO 18001 OHSAS sets out the minimum requirements for occupational health and safety management best practice. Occupational health and safety are at the forefront of today’s social concerns.

This certification provides an all-round response to regulatory, social and economic challenges, enabling organizations to minimize workplace injuries, improve the organization’s productivity and cut costs by gaining full control of staff safety-related risks.

Is DCAA working on ISO 27001 for the IT Security Management policy?

Yes. ISO 27001:2013 is an information security standard introduced in September 2013. The new standard puts more emphasis on measuring and evaluating how well an organization is performing in this domain. Also we decided to implement ISO20001 for IT services management.

We have started implementing the processes and systems towards achieving those certifications in line with the objectives of Smart-government strategy announced by the Dubai government. We have designed and implemented the systems and processes for those certifica-

tions and waiting for its assessment by a third party to complete the procedure for getting certified by January 2015.

This is important as the DCAA is working on expanding its Smart services portfolio and introducing more e-Services in the coming months. We are focused on customer service, which is one of our five strategic pillars, and every effort is being made to enhance the quality and variety of services we offer to customers.

Is the e-Services portfolio also being expanded?

A team has been formed to look into the expansion of e-Services and improve its excellence standards. The first e-Services was launched in 2013 which dealt with issuing safety and security related No Objection Certificate (NoC).

The teem this year started improving the Noc services for aircraft landing permits. This involved manual payment of fees developing an e-payment system that will eliminate the need for customers to visit our office for completing the procedures..

We have conducted a trial for this service with selected customers and keen on ensuring it fulfills the needs of the changing time. The Authority presently offers 17 e-Services covering a wide range of activities, and services.

Aircraft landing permits are a major activity for us given the high volume of schedule and non-scheduled flights that comes to Dubai International Airport and Al Maktoum International Airport in Dubai World Central (DWC). It will be a big relief for the customers.

When is DCAA releasing its annual performance report?

The list of our achievements is growing each passing year due to the expansion of the aviation industry in general and air traffic movements at the two international airports in particular.

Exclusive

To highlight our achievements and share our vision and future plans, we publish annual report for the industry stakeholders and civil aviationrelated international and regional organizations.

This report offer insights into our performance and the highlights the way the industry, which currently contributes more than 28 per cent to Dubai’s GDP, is progressing and what lies ahead of us.

The 2012-2013 annual report is released after the approval from 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.

Plans have been announced to develop Dubai World Central (DWC) to handle 200 million passengers by 2020. Is DCAA revising its Strategy Plan 2013-2015?

The Authority has been working diligently on achieving the goals set out in the five pillars of the strategy plan we had released last year (2013-2015).

The plan spells out the ways and means of building capabilities and capacities that match the changing business scenario of the aviation industry in the emirate. The Strategy Plan was produced much before the UAE successfully bid for hosting the World Expo in Dubai in 2020. Therefore a new strategy for DCAA has to be launched and we did. It is “Shaping Tomorrow’s Aviation (2015-2020)”. We have recently conducted a workshop for the key officials to revisit the plan to give a change to our strategies and timelines. More importantly, we focus on building our capacity and capability in various domains.

We took into consideration Dubai Airports’ SP 2020 and future fleet expansion of Emirates and flydubai among factors in devising the strategy plan.

The entire scenario has changed with Expo 2020 coming to Dubai and the government announcing plans to develop Al Maktoum International Airport in DWC to handle 200 million passengers. In addition this, the government is revising the aviation plans for the emirate that goes much beyond – almost 2050.

The Strategy Plan was produced much before the UAE successfully bid for hosting the World Expo in Dubai in 2020 med bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council. The centre will go a long way building effective and extensive relationship with all the industry stakeholders.

We are also enhancing our social media presence and will be using more of Twitter and Facebook to reach out to our customers and build strong relationship with them. The while exercise is to become an inspiring Smart government entity.

We were told DCAA is developing its own smart applications. Is it true?

The DCAA is developing its own iOS and Android applications as part of the smart services initiative and we will launch them in due course.

This will help us expand our e-services extensively and in meeting the expectations of our growing base of customers.

We have adopted a smart government strategy and working achieving the goals by the year 2015.

What is being done to enhance social responsibility?

DCAA is designing and implementing processes for achieving social responsibility standard. This is directed towards achieving the ISO 26001 certification by January 2015.

Organizations do not operate in a vacuum.

Their relationship to the society and environment in which they operate is a critical factor in their ability to continue to operate effectively.

This standard is increasingly being used as a measure of their overall performance. The ISO 26001 provides guidance on how businesses and organizations can operate in a socially responsible way.

This means acting in an ethical and transparent way that contributes to the health and welfare of society. It provides guidance rather than requirements, so it cannot be certified to unlike some other ISO standards.

Instead, it helps clarify what social responsibility is, helps organizations translate principles into effective actions and shares best practices relating to social responsibility, globally. The standard was launched in 2010 following five years of negotiations between different stakeholders across the world.

How is DCAA improving its capabilities and capacity as spelled out in the Strategy Plan?

We are revisiting our growth pillar taking into account the growing air traffic and collaborating with the stakeholders to achieve the goals.

The closure of runways of Dubai International Airport this summer for refurbishment was a big challenge for the industry stakeholders.

The project went on successfully due to effective understanding and cooperation between all the stakeholders. This project is going to benefit the industry in a big way in the long run.

Sustainability is one of the key elements of our strategy for the years 2015-2020. This goes a long way in monitoring the safety, security, and environment performance of the aviation industry in the emirate, which has emerged as a major global aviation hub given its ideal location at the crossroads of the east and west. This position is going to gain further strength in the coming years and we have to prepare well for this in advance. 

How is DCAA improving customer services?

Customer service is a key element in our work and forms a crucial part of our future strategies. In line with the vision and directions of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, we are planning to open a customer centre.

The customer service facility will come up at the DCAA’s new headquarters that will become operational in Terminal 1 of Dubai International Airport in 2015.

The seven-star customer service centre will be based on the Dubai Model as spelled out

by His Highness Sheikh Hamdan bin MohamOctober 2014

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UAE in Focus

UAE shines in economic competitiveness

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he UAE economy is the highest rated in the Arab world after it leapt seven places to 12th in a global competitiveness index of 144 countries.

The jump is by far the largest movement in the top 30 positions of the World Economic Forum’s (WEF) annual Global Competitiveness Index, and leaves the UAE sandwiched between Denmark and Norway and breathing down the necks of Sweden and the UK.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, said the UAE’s surge up the league table was a tribute to federal and local teams working as one for the country’s progress.

Switzerland tops the ranking for the sixth consecutive year, with Singapore in second place for the fourth time running and the US creeping back up to the third slot.

The other top 10 positions go to Finland, Germany, Japan, Hong Kong, the Netherlands, the UK and Sweden. Since last year, Qatar has fallen three places to 16th and Saudi Arabia four places to 24; Kuwait is down four to 40th, Bahrain slips one spot to 44th and Oman is down 13 places to 46th. The next nearest Arab state is Jordan, in 64th, followed by Morocco (72), Algeria (79), Tunisia (87), Egypt (119), Libya (126) and Yemen (142). 

Dubai hotels enjoy busiest H1 in history

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ubai hotels welcomed more than 5.8 million tourists in the first half of 2014, the highest number of visitors ever achieved in the first six months of the year.

Helal Saeed Almarri, Director General, Department of Tourism and Commerce Marketing (DTCM), remarked: “Dubai is constantly diversifying our tourism offering and increasing our hotel portfolio to attract, and cater to, a broader market of visitors. The figures for the first half of 2014 are encouraging and we continue to build on this growth to ensure a successful second half of the year.”

The figures show an increase in visitors from many of our key source

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October 2014

markets - for example we are seeing strong growth from China, Brazil, Australia and many countries in Europe. In the first half of 2014, guest numbers across all hotel establishments (hotels and hotel apartments) reached 5,828,449, an increase on figures for the same period in 2013.

Saudi Arabia, India, the UK, the US, Russia, China, Iran, Oman, Kuwait and Germany made up the top 10 for January to June 2014. China (ranked sixth) and India (ranked second), continued to show growth.

China in particular saw a substantial increase of 26 per cent.

Hotels and hotel apartments saw steady growth in guest nights during the first half of the year with figures

up by 6.7 per cent for hotels and 4.1 per cent for hotel apartments. The average length of stay increased across the board, with an average of 3.9 days. Revenues for hoteliers and hotel apartment operators saw sig-

nificant growth- AED12.74 billion, up by 10.9 per cent. Hotels and hotel apartments reported increases in room revenue (15.3 per cent) as well as F&B and other revenue, which rose by 3.8 per cent. 

UAE in Focus

Dubai among world’s most influential cities

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ubai has been ranked the seventh most influential city in the world, above global cities such as Los Angeles, Beijing and Sydney, according to a new list published by Forbes magazine.

The list ranks the cities based on eight factors including the amount of foreign direct investment, concentration of corporate headquarters, air connectivity, financial services, technology and media power and racial diversity.

Dubai, which also topped the global ranking for air connectivity, was acknowledged for

its growing infrastructure and diversity. As a crossroads of humanity, Dubai is unparalleled among global cities for its diversity: 86 per cent of its residents are foreign born, it said.

Dubai was also the only city from the developing world to feature within the highest rank-

Dubai Metro turns five, lifts half a billion riders

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ubai Metro has turned five has carried 500 million riders since the service had been launched.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, had opened the Red Line of the Dubai Metro which stretches 52 km and covers 29 stations on September 9 2009. Two years later, the Dubai Metro Green Line spanning 23 km and linking 18 stations was opened.

The number of Dubai Metro Red Line users since the start of operation until last August, soared to 333,661,032 riders. In 2013, it continued its upward trajectory to

touch 88,886,539 riders, and in the first eight months of this year, the number of Red Line users climbed to 67,054,535 riders. The total number of Green Line users until the end of last August, went up to 134,251,247 riders.

The RTA is edging closer to the set target of raising the share of public transport in the mobility of people to as much as 30 per cent of the total number of trips by 2030, as it reached 13 per cent in 2013.

Investment on public transport will also result in conserving the environment, slashing the financial impact of traffic congestions, and shifting the demand for mobility services from private vehicles to public transit means. 

ing cities. The top 10 included: London, New York, Paris, Singapore, Tokyo, Hong Kong, Dubai, Los Angeles, Beijing and Sydney.

The report also stated that UAE capital Abu Dhabi, which ranked joint 20th, could move up in the future. 

UAE-based carriers top buyers of Boeing aircraft

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S plane maker Boeing is expected to deliver more commercial aircraft in the Middle East in 2014 compared to last year and its major regional customers belong to the UAE, Boeing Middle East president Jeffery Johnson told Khaleej Times.

Johnson declined to provide total number of aircraft to be delivered in 2014 to its Middle East customers.

The UAE-based carriers are top buyers of Boeing aircraft.

The company delivered 69 aircraft between January 2013 to July 2014 in the Middle East and out of that the UAEbased companies received 38 aircraft deliveries, according to the latest data available.

The company got 294 aircraft orders in the same period of 19 months from the region and all orders belong to UAEbased carriers except two 777-300 by Qatar Airways.

Carriers in the Middle East have ordered a total of 1,120 aircrafts by the end of July 2014 and there is a backlog of total 544 aircraft to the region. The region’s top buyers include Emirates, which has ordered 289 aircraft and its backlog is 205 after 84 deliveries.

Last year, Boeing won orders for 1,355 aircraft and delivered 648 jets globally. In the Middle East, Boeing customers have ordered a total of 156 Dreamliners. 

October 2014

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UAE in Focus

Dubai trade surges to AED654 billion in H1 2014

UAE corporate earnings touch $9 billion

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ubai has cemented its position as a global trading hub and reinforced the diversity of its foreign trade in the first half of 2014, statistics released by Dubai Customs revealed. Dubai’s foreign trade in the first half of 2014 totaled AED654 billion, with imports having the biggest share at AED408 billion, exports at AED59 billion and re-exports AED187 billion.

The official figures reflect a key change in the commodity composition of trade to cope with the UAE’s fast shift to a knowledge economy, which is based on smart technologies.

The diversity of Dubai’s foreign trade is being accompanied by noticeable expansion in the tourist sector. Over the first six months of 2014, the number of tourists who visited Dubai went up to 5.8 million.

Emirates broadens A380 network

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mirates Airlines has added Frankfurt to its growing list of A380 destinations. With the addition of Frankfurt, Emirates now serves 30 global destinations with the A380.

With 51 A380s in its fleet, Emirates is the largest operator of the Airbus superjumbo, carrying over 28 million passengers across the globe on this iconic aircraft since 2008.

Emirates is also the largest A380 customer with 89 more aircraft pending delivery. Emirates has introduced A380 services to Barcelona, London Gatwick, Zurich, Kuwait, Mumbai and Frankfurt. It will launch A380 services to Dallas Fort Worth on 1 October, San Francisco on 1 December and Houston on 3 December.

Emirates operates 63 weekly passenger flights out of Germany. Hamburg and Dusseldorf are double daily, Frankfurt is triple daily including one A380 service and Munich has a double-daily A380 service. 

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October 2014

Phones and PCs scored a 17 per cent share of the total value of Dubai’s foreign trade in the first half of 2014. Trading in phones recorded an 11 per cent growth compared to the first half of 2013, amounting to AED85 billion compared to AED76 billion. Computers recorded a nine per cent growth at AED27 billion compared to AED24.6 billion.

The emirate’s jewellery trade increased 12 per cent in the first half of 2014 to AED29.5 billion compared to AED26.4 billion in the same period last year.

Automotive foreign trade also climbed 31 per cent from AED24.3 billion to AED32 billion. Petroleum trade grew by 31 per cent to AED20.5 billion against AED15.6 billion. 

he UAE’s corporate earnings grew 31.2 per cent year-on-year to $9 billion (AED33 billion) during the first half of this year compared to $6.86 billion in the same period last year, registering the best growth among the GCC corporates.

Kuwait-based Global Investment House says the robust earnings were driven by Dubai (up 50.7 per cent), which outperformed Abu Dhabi’s corporate earnings growth of 22 per cent YoY. Dubai’s corporate earnings expanded 50.7 per cent YoY to $3.3 billion in H1 2014, led by banks (43.2 per cent), real estate and construction (71.8 per cent), and investment and financial services (160.9 per cent).

Corporate earnings in the GCC region rose 14.5 per cent YoY to $34.9 billion in H1 2014. Bahrain, Qatar and Kuwait corporate earnings in the first half declined while other regional countries registered rise. 

UAE nationals, expats invests big in Dubai realty

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nvestment by Gulf Cooperation Council (GCC) nationals in Dubai’s real estate market exceeded AED19 billion during first half of 2014, the Dubai Land Department (DLD) said.

UAE nationals accounted for transactions worth AED12.5 billion in the property sector from January 1 to July 1. The amount represents almost double the AED6.5 billion figure invested by all other GCC nationals combined.

Citizens of Saudi Arabia were ranked second on the list of GCC real estate investment with AED3.371 billion followed by Qataris came with transactions worth AED1.463 billion. Kuwaitis notched up fourth place with AED839 million transactions and Omanis fifth with AED482 million transactions. Bahrain citizens occupied the sixth position. In 2013, the total value of real estate transactions in Dubai rose from AED154

billion in 2012 to AED236 billion in 2013. After Emiratis, the biggest investors in the Dubai realty sector include Indians, Britons and Pakistanis, according to the DLD. Indians continued to be the top foreign investors with investments worth AED5.8 billion.

Britons came next with a total of AED3 billion while Pakistani investors spent around AED2 billion. Indian investors spent AED8 billion in the first half of 2013 and AED9 billion in the whole of 2012. 

UAE in Focus

Dubai to host AACO meeting in November

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rab Air Carriers Organization (AACO) will hold its 47th Annual General Meeting (AGM) Intercontinental Dubai Festival City in Dubai from November 18 to 20.

The AGM is the major event on the calendar of the regional association of airlines which brings together the CEOs of 32 member-airlines in addition to a large number of aviation stakeholders, AACO industry partners and partner airlines for networking, brainstorming on industry issues, and high-level discussions.

The event will be held under the patronage of HH 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.

Sir Tim Clark, President of Emirates Airline will chair the 47th AGM. The previous AGMs were held in Doha, Algiers, Abu Dhabi, Cairo, Jeddah, Tunis, Damascus and Kuwait.

Launched in 1965, the AACO has 32 member-airlines with a combined fleet of 967 aircraft and 139000 employees. The member-airlines handled 142 million passengers last year, serving 389 airports in 107 countries. Their combined sales totaled $45 billion. 

Dubai Customs conducts 1037 seizures H1 2014

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ubai Customs’ Passenger Operations Department conducted 1037 confiscations over the first half of 2014, a growth of 23 per cent compared with the same period last year. The seized items included narcotic drugs, prohibited and restricted substances, fake documents, arms and accessories.

Dubai Customs has remained committed to upgrade facilitations to streamline the tourism and travel flow in Dubai through top-notch passenger services.

Dubai Customs acquired a set of latest world-class inspection equipment as part of the efforts to secure ports and prevent the entry of goods that affect the safety of the country or the health of its people, without influencing the flow of individuals and goods.

Ahmed bin Lahej, Director of Passenger Operations at Dubai Customs, said Dubai Airports are deploying 53 inspection devices, 50 of which are designated for luggage X-ray, and three intestinal scanning devices. 

Emirates launches daily flights to Oslo

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mirates Airlines has launched its service to Oslo, marking the beginning of daily direct flights between Dubai and the Norwegian capital. Oslo is the 38th European destination by the biggest Arab airline company.

It is also the destination number 144 by Emirates, said Thierry Antinori, executive Vice President and Chief Commercial officer at Emirates, upon the landing of Boeing 777-300 ER in Oslo.

“If you take all the passengers on the Dubai-Oslo route, we think that 70 per cent will be Norwegian and 30 per cent non-Norwegian. Approximately, one-third will stay in Dubai and two-third will go beyond Dubai,” Antinori told Gulf News.

According to official figures, the trade between the UAE and Norway reached €245 million last year.

Emirates is the first airline that flies to and from Oslo offering a first class cabin service. Already, Emirates has direct daily flights to Copenhagen in Denmark and Stockholm in Sweden.

After Oslo, Emirates started direct daily service to Brussels on September 5. 

October 2014

13

Middle East in Focus

ME hubs improve their growth patterns

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irports in the Middle East region recorded the strongest growth in passenger traffic last year (7.6 per cent) after Eastern Europe and Russia (13.5 per cent) with Asia (8.1 per cent) and Latin America and the West Indies (6.3 per cent) in the third and fourth positions globally.

According to Arthur D. Little (ADL) World Airport Report 2014, double-digit growth in the Middle East in the previous year has been dragged down below the 10 per cent mark, but flat in terms of growth.

Double-digit growth continues in the Arabian Gulf states.

The reported noted: “Growth in the Middle East was almost halved in 2013, declining from double-digit growth of 14.4 per cent in 2012 to just 7.6 per cent a year later. This was largely due to a virtually flat Iranian airport traffic market, as well as a significant decline in Bahrain.”

The “relentless growth” of Dubai continued unabated in 2013, with competing regional hubs—Abu Dhabi and Doha—largely failing to close the gap.

With 66.4 million passengers, Dubai now ranks higher than Paris Charles de Gaulle and is fast catching up with London Heathrow.

Doha, meanwhile, totaled 23.4 million passengers in 2013, an increase of 10 per cent, and Abu Dhabi grew 12 per cent to reach 16.5 million passengers. But Dubai outstripped all other regional airports with a growth rate of 15 per cent.

Overall, the main Arabian Peninsula airports performed well, but Bahrain saw passenger numbers plummet 13 per cent to 7.4 million, reflecting the financial difficulties of flag carrier Gulf Air, while Tehran reported a seven per cent drop in passenger numbers to 12.7 million due to the toughening of sanctions in mid-2013.

The report highlights the intense competition developing between the mega hubs of Turkey, Arabian Gulf and Northeast Africa—a region that Arthur D. Little describes as “World Central.”

What is clear, however, is that the so-called World Central mega hubs have been having a damaging

impact on European hubs since the mid-2000s, especially as their comparative growth patterns improve, the report stated.

Countries where airport traffic growth was twice times GDP included the United Arab Emirates, the reported noted.

The ADL survey covers total airport traffic of approximately 6.1 billion passengers, less than 50 per cent of which are handled by primary and secondary hub airports, with regional platforms accounting for 53.4 per cent.

Regional platforms have also contributed to more than 60 per cent of total airport traffic growth between 2012 and 2013, with hubs accounting for just 38 per cent.

In 2013, just 45 airports generated 50 per cent of global traffic growth and 55 airports accounted for 50 per cent of total worldwide passenger traffic volume. Only six airports -Amsterdam, Dubai, Frankfurt, London Heathrow and Paris Charles de Gaulle—offer more than 80 long-haul destinations, and 26 offer between 40 and 80 long-haul destinations. 

Morocco opens revamped Beni Mellal airport

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ing Mohammed VI has inaugurated the new Beni Mellal airport following its reconstruction and revamp at a cost of 195.5 million dirhams (MAD). The project is part of plans undertaken by the sovereign for opening up and enhancing access to the TadlaAzilal region, while ensuring a global, balanced and sustainable development.

Located eight kilometers north-western the city, the new facility will provide TadlaAzilal an airport that would enable developing international air traffic with European countries to attract more tourists and expatriates from this Moroccan central region.

According to recent statistics, five million Moroccans

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October 2014

live abroad in 100 countries.

With a clear concentration in Europe, 80 per cent of them live in France, Spain, Italy, Belgium, Holland and Germany. About 47 per cent of Moroccans living abroad today are women.The project involved building a passenger terminal and a control tower, upgrading the runway and its surroundings, fence extension and constructing a road access and car parking slots.

With an annual capacity of 150,000 passengers, the new terminal, measuring 1,500 square meters, has high-tech equipment meeting international standards in terms of security, a public hall, a departure area with a VIP lounge and an arrival zone. 

Egypt hikes aircraft self-service fees Egypt has hiked the aircraft selfservice fees with the proceeds to be used to fund and support the development of civil aviation industry.

The Ministry of Aviation’s charges include $45 for aircraft weighing less than 100 metric tonnes, $60 for aircraft weighing over 100 tonnes, and $78 for aircraft weighing over 200 tonnes. The fees will be imposed on airline companies which undertake their own servicing and maintenance, rather than EgyptAir Ground Services.

Officials say the new fees are being imposed to finance construction

work at various airports, especially in Hurghada and Cairo. The expected annual revenue from the fees would amount to EGP20 million or $2.5 million. The African Development Bank refused to grant Egypt a loan due to volatile political conditions in the country and Egypt’s suspension from the African Union.

Egypt is currently negotiating with the World Bank for a loan worth $318 million to raise the capacity of the Sharm El Sheikh airport to 18 million passengers. The airport’s current passenger capacity is 10 million. 

Middle East in Focus

Royal Jordanian acquires first Boeing 787

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oyal Jordanian has taken delivery of its first Boeing 787 Dreamliner. The airplane will play a central role in the Amman-based carrier’s strategic plan for fleet modernization.

Royal Jordanian acquired the airplane through leasing company AerCap. The 787 is the world’s mosttechnologically advanced airplane with composite materials making up 50 percent of the primary structure by weight, includ-

Gulf Air to start Moscow service

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ulf Air will operate direct services to the Russian capital from October 28.

The national carrier of the Kingdom will operate four flights per week to Moscow’s Domodedovo International Airport. This is Gulf Air’s first Russia entry as part of the strategy of strengthening network with key global destinations that provide strategic business and tourism links.

The four weekly flights will be operated by an A320-ER aircraft in a two-class configuration of 14 Falcon Gold seats and 96 seats in Economy. One of the first commercial airlines established in the Middle East, it serves 38 cities in 23 countries spanning three continents with a combination wide and narrow body fleet totaling 26 modern aircraft. 

Kuwait Airways plans to order ten B777s

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uwait Airways is planning to acquire ten B777 Family aircraft from Boeing as part of its fleet renewal and expansion programme.

According to Kuwait Times, the airline’s board of directors has already issued a directive for the purchase and is now in early talks

with the US aircraft manufacturer.

Interestingly, Boeing website listed a new order from an unidentified customer for ten B777-300 (ER).

Last year, Boeing dispatched a sales team when it emerged Kuwaitis were about to sign a $3 billion deal with Airbus. 

Oman Air gets new CEO

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man Air has appointed Paul Gregorowitsch as its new Chief Executive Officer.

Paul, a Dutch national and industry veteran, joins the national carrier of the Sultanate of Oman from Air Berlin, where, he sat on its Management Board with responsibility for the carrier’s commercial activities.

He will oversee the carrier’s second major phase of expansion, which will start later this year with the arrival of the first of 20 aircraft the carrier currently has on order-

ing the fuselage and wing. In addition to bringing big-jet ranges to midsize airplanes, the 787 will provide Royal Jordanian with unrivaled fuel efficiency, using 20 percent less fuel than today’s similarly sized airplanes.

With this delivery, Royal Jordanian becomes only the second airline in the Middle East to operate the 787. The airline will configure its Dreamliner to carry 24 passengers in business class and 246 in economy class. 

Saudi Arabia to earn $8.5 billion from Hajj

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he Kingdom of Saudi Arabia could earn $8.5 billion from this year’s Hajj pilgrimage taken by millions of Muslims from across the world, a study said. The Mecca Chamber of Commerce said revenues from the world’s largest annual gathering of Muslims would increase by three percent from last year. The study was based on estimates that 1.98 million pilgrims will travel to the holy Muslim city of Mecca, including 1.38 million, or 70 percent, from abroad.

According to the report, a pilgrim who has travelled from another country will spend an average of 17,381 riyals ($4,633) during Hajj, which runs for five days. A domestic worshipper pays around 4,948 riyals ($1,319), the study found. Expenses include housing, food and drink, gifts and phone bills. Saudi Arabia also

hosts millions of Muslims annually for the lesser Umrah pilgrimage, which may be undertaken at any time throughout the year.

Around six million Muslims took Umrah during Ramadan in July this year, according to authorities. More than 1.3 million foreign pilgrims are expected to perform Haj this year, according to the Haj Ministry.

South Asian countries will send the largest contingent of 410,000 Hajis followed by Arab countries with 250,000.

About 228,000 pilgrims will come from Southeast Asian countries including Indonesia and Malaysia, while Turkey and European countries will send 190,000, non-Arab African countries 170,000 and Iran 63,000, Arab News reported. Revenue from pilgrims makes three per cent of Saudi GDP. 

three Airbus A330s, six Boeing B787 Dreamliners and 11 Boeing B737s-which will enable Oman Air to expand its network and increase frequencies on existing routes.

Six Boeing 787 Dreamliners are on order for delivery from 2015, three Airbus A330s are expected from December 2014 and six Boeing 737-800s will be added to the fleet, also from 2014. In addition, Oman Air has six Boeing 737-900ERs on order, and will be the first Gulf carrier to take the aircraft.  October 2014

15

International

Average procurement budget of airports rise

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survey has revealed that the average size of the annual procurement budget for global airport industry buyer respondents is projected at $73 million, against $126 million in 2012 and $68 million in 2011.

China, Brazil and the Middle East are the important emerging markets to offer growth. Market uncertainty, cost containment and responding to pricing pressure remain the leading business concerns for the global airports industry.

Level of service, price, financial strength and stability, and existing relationship with supplier are con-

Study: Hike airline ticket prices to fight global warming

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sidered the most important factors for supplier selection in the global airports industry.

Proximity of supplier operations, environmental records and CSR, and the knowledge of buyer’s market are considered the least important, the market research report by ICD said.

While 16 per cent of buyer respondents from the global airports industry are willing to implement e-procurement, 43 per cent are already in the different stages of implementation (partially implemented, completely implemented and evaluation or pilot use). 

esearchers with the United Kingdom’s University of Southampton are worried that the airline industry will become a major source of carbon dioxide emissions. Their solution: raise ticket prices so much that fewer people can afford to fly.

“If all mitigation-measures are successfully implemented, it is still likely that traffic growth-rates will continue to out-pace emissions reduction-rates,” reads the study by environmental engineers at Southampton. “Therefore, to achieve an overall reduction in CO2 emissions, behavior change will be necessary to reduce demand for air-travel,” the study adds.

Globally, the airline industry consumes more than five million barrels of oil per day and emits large amounts of carbon dioxide emissions — which scientists say contribute to global warming.

UK engineers believe that even as airlines reduce their carbon footprint, the growing ability of people around the world to fly will cause emissions to increase above airline cuts. 

AC grounds plan for new airport in London

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plan to build a major new airport to the east of London was rejected by a government-appointed commission.

The Airports Commission said having dropped the idea of building a costly new airport in the Thames Estuary, it would now decide by next year whether to expand Heathrow airport to the west of London or

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October 2014

Gatwick to the south.With London’s airports near the limit of their capacity, business groups say more runways are needed to handle traffic from fast-growing emerging economies and fear inaction could deter international investors and curb growth.

The Airports Commission said the Thames Estuary idea had not made the shortlist as it was too expensive and complicated at up to £112 billion ($186 billion), it would cost around five times as much as the other three short-listed options.

“We think it’s too risky. The logistical challenges of shifting an airport 70 miles across London are immense,” Howard Davies, chair of the commission, told the BBC. “We simply think that there’s a strong chance you would never get it built.”

Heathrow, which is Britain’s busiest airport by passenger traffic and Europe’s busiest, is already running at 98 per cent full. The airport says this means it is falling behind rival European hubs. 

Air India plans overhaul to target global market

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ir India, a new entrant to the 27-member global airline grouping Star Alliance, is overhauling its systems to take the country’s flag carrier to the next level of global aviation market and meet the challenges arising from the new alliance.

A PTI report quoted Pankaj Srivastava, Director - Commercial and Board Member of Air India, as saying that the carrier will pull all plugs to utilize the opportunities and face the challenges that arise from the deal with the Star Alliance.

Star Alliance network counts 27 member airlines, offering more than 18,500 daily flights serving 1,316 destinations in 192 countries. The young fleet of Dreamliner and the world-class Delhi airport as a hub can change the fortunes of Air India and the Indian aviation sector, Srivastava said.

Air India Dreamliner is now flying to destinations in Far East, US, Europe and Australia and the alliance with Star will provide its passengers access to lounges of member carriers across the world and single-ticket travel across airlines. 

International

Aviation can help Africa soar

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iberalized air transport regulations on the continent would lead to lower prices, more jobs and stronger economic growth, a study has found.

Red tape around African skies has seen the continent losing out economically and the potential loss runs into millions of passengers, a recent study has found.

Africa currently accounts for roughly two per cent of global scheduled passenger and cargo airline traffic, but it should be far more.

This is according to the recently published econometric study conducted by the Oxfordbased aviation consulting company InterVistas – Transforming intra-African Air Connectivity: The Economic Benefits of Implementing the Yamoussoukro Decision.

The report studied the economic benefits of a liberalized regulatory framework to promote greater competition and market access for African airlines in Africa. It found that if the 1999 Yamoussoukro decision were to be implemented in just 12 African states, the economic benefits would include five million extra passengers a year; 155000 extra jobs and $1.3-billion in additional gross domestic product (GDP).

Fifteen years ago, 44 African nations signed the Yamoussoukro decision, which pledged to

deregulate air services and promote regional air markets opening to transnational competition.

But the implementation of this has been slow and limited and has caused the continent to miss out on substantial economic benefits, remarked the report, commissioned by IATA South Africa’s passenger traffic, the study said, could gain 54 per cent if the Yammoussoukro decision were implemented. Consumer benefits are estimated at $183-million and an economic con-

Jamaica opens first Aviation University in Caribbean

TIA traffic volume clocks double-digit growth

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amaica broke new ground in aviation training with the opening of the first university in the Caribbean to specialize in aviation.

The Aviation University of the Americas, focusing on the technology, security, agricultural science and finance of aviation, will offer both undergraduate and postgraduate programs when classes begin in October.

The university will be open to students across the world while Caribbean nationals have access

to a concessionary tuition fee. Undergraduate programs will be of three years duration, while diploma and master programs will last two years.

The University will offer undergraduate and graduate programmes in aviation technology, aviation finance, aviation management, security, interior design and aviation agricultural science with supporting courses in customer service, entrepreneurship, information technology and languages. 

tribution of $283.9-million.Speaking at the conference, Raphael Kuuchi, IATA’s vice-president for Africa, said African airlines are expected to return a profit of just $100-million in 2014, on a net profit margin of 0.8 per cent, the lowest of all aviation regions.

Aviation in Africa supports nearly seven-million jobs and $80-billion in GDP, but it faces challenges in terms of liberalization of markets, safety, costs, infrastructure and regulation. 

athmandu’s Tribhuvan International Airport (TIA) recorded double-digit growth in passenger traffic in the first three months of 2014 with outbound Nepali migrant workers turning into a flood.

According to TIA, the number of incoming and outgoing travellers jumped 16.14 percent to 832,944 during the period January-March. The 25 international

airlines connecting Nepal including the national flag carrier Nepal Airlines flew 115,762 more travellers in the first quarter year on year.

The statistics show that 1.16 million people including 332,853 domestic air travellers passed through TIA in the first quarter.

Domestic passenger counts dipped 7.76 percent mostly as a result of seasonal schedule changes. 

October 2014

17

International

Lap infants at increased risk of death on flights

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n-flight deaths of babies are rare but researchers say they’ve found that lap infants may be at greater risk of death on commercial flights than other babies.

The study analyzed pediatric medical emergencies on flights worldwide between January 2010 and June 2013 and found 90 percent of deaths occurred in children under the age of 2.

“The pattern we identified in our analysis is intriguing and could indicate lap infants are at greater risk of death related to in-flight environmental factors such as sleeping arrangements,” says Alexandre Rotta, Chief, Division of Pediatric Critical Care Medicine at Case Western Reserve Univer-

sity School of Medicine.

The pattern would have gone unnoticed through single case analysis of these relatively rare events, Rotta said. Rotta was the lead investigator on the study, which was conducted at University Hospitals Rainbow Babies & Children’s Hospital in Cleveland.

The study was conducted in partnership with MedAire to characterize the rare event of an inflight pediatric fatality onboard commercial airline flights worldwide.

Through a detailed analysis of more than 7,000 reported medical emergencies involving children (newborn to age 18) over a three-year period, researchers found death most commonly oc-

curred in previously healthy children under the age of 2, and in children with a preexisting medical condition.

Of the 7,573 reported emergencies, 10 resulted in death, and six had no previous medical history.

Four passengers had preflight medical conditions, including two children traveling for the purpose of accessing advanced medical care.

UK should not have one hub dominating market

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irports across the UK outside of London play a vital role increasing competition, improving consumer choice and driving airfares down, according to London Gatwick. The claims are made in a submission to the Airports Commission, in which Gatwick says if Heathrow expands, airports across the UK will lose their ability to compete and grow.It also says competition between airports has been one of the great successes of recent UK aviation policy and has helped ‘drive airfares down and improve consumer choice’.

The latest submission, adds Manchester, Edinburgh, Newcastle and Birmingham are also

increasingly able to offer passengers affordable direct flights to international destinations across the world.

Gatwick says the trend is likely to continue as the next generation of fuel efficient aircraft - make direct flights to destinations further afield increasingly viable from non-London airports.

CEO Stewart Wingate, explains: “Competition between the UK’s airports has been one of the great successes of recent industrial policy and has delivered more choice, better standards and lower airfares for consumers. 

Swaziland has a new airport

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waziland, a country of 1.2 million people in sub-Saharan Africa, unveiled a new airport. However news agency AFP said the $280 million airport is “years away from being operational and has been dubbed a ‘white elephant’ by critics”.

During construction, which began 11 years ago, the airport was known as Sikhuphe Airport. At the opening on Friday 7 March its new name was revealed as King Mswati III International Airport. King Mswati has ruled Swaziland since 1986.

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October 2014

AFP reported the $280-million cost is “equivalent to almost 10 percent of the impoverished mountain kingdom’s 2012 Gross Domestic Product”.

Authorities in the sub-Saharan Africa’s last absolute monarchy hope the airport will help attract tourism and foreign investment.

It has yet to be granted an operating licence by the International Air Transport Association (IATA) and no airlines are expected to make use of the airport for years to come, prompting concerns about the viability of the project. 

The majority of pediatric inflight emergencies are related to infections, neurological conditions, and respiratory issues such as asthma, seldom require alteration of flight route and do not pose significant risk to life. Because an in-flight pediatric death is such a rare event, large datasets were necessary to capture a meaningful number of observations. 

Incheon-led consortium wins Myanmar deal

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he government of Myanmar has awarded the construction of a new airport to serve its commercial capital Yangon to a group of South Korean companies.

Myanmar Ministry of Transport announced that the Incheon Airport Consortium was the successful tenderer in a competitive bidding process to build a new airport handling 12 million passengers a year.

A consortium led by local firm Pioneer Aerodrome Services won the concession to operate the Yangon International airport and Japan’s Mitsubishi-Jalux Inc. consortium won a concession to run the Mandalay International Airport.

As part of a series of tenders put up last year in hopes of bringing investment into country’s aviation sector, the government invited bids for the Hanthawaddy International Airport, to be built about 80 kilometers away from Yangon in Bago region.

Yangon is now Myanmar’s financial hub. However, the country hopes to create a second commercial hub around Hanthawaddy airport, and possibly build a train network connecting the two cities. 

Airlines

Malaysia Airlines cuts 6000 jobs

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alaysia Airlines has cut 6,000 jobs as part of a wide-ranging overhaul that follows the loss of two aircraft earlier this year.

State investor Khazanah, which owns nearly 70 per cent of the carrier, revealed the 30 per cent workforce reduction and an-

nounced the creation of a new corporation that will absorb the majority of the carrier’s assets.

Khazanah plans to buy out minority shareholders and de-list the current Malaysia Airlines. Assets will then be shifted to the new company, which the fund said could be ready to go public in three to five years.

Azman Mokhtar, managing director of Khazanah, said that the changes were necessary to help the airline compete in the rough-and-tumble airline industry, reports CNN Money. The airline reported that it lost $97.4 million in the second quarter, as it reeled from its second aircraft disaster of 2014. 

Air Astana starts Dubai service

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ir Astana has re-launched its direct daily flights from Almaty to Dubai from September.

The existing four days a week service from Astana to Abu Dhabi will also continue to operate, with both services to UAE being performed by an Airbus A320 family aircraft.

Kazakhstan has recently announced a visa waiver programme for tourists from 10 countries, including nationals of UAE, who can now enter Kazakhstan without any prior notification.

The Central Asian republic’s carrier also offers an online visa application facility for Kazakhstan tourists visiting the UAE.

Peter Foster, president, Air Astana, said the new service represents another important step in the airline’s international network expansion, which will contribute to development of economic, cultural and tourism ties. 

Qantas to split domestic, international airlines

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antas is laying the groundwork to split its domestic and international arms. It is part of a package to help the Flying Kangaroo leap out of a $2.83 billion black hole.

The move involves setting up a new holding company for Qantas International. Recent changes to the Qantas Sale Act now allow a single foreign airline or investor to hold as much as 49 per cent of Qantas, up from a previous 25 per cent cap for any single overseas investor or 35 per cent for all foreign airlines combined.

Qantas already runs its domestic and international arms as two distinct

business units, each with its own CEO heading up operational and commercial functions, following a restructure in May 2012.

Ironically, the split will see Qantas adopt an identical structure to challenger Virgin Australia – a structure which Qantas has previously criticized as part of its “level playing field” crusade. The most likely stakeholder is Qantas partner Emirates, although Emirates President Tim Clark has previously poured cold water on hopes of an equity investment, reports Australian Business Traveller. 

Cinnamon Air forays into UAE, Qatar

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ri Lanka’s domestic airline is seeking to firmly establish and strengthen its brand and sales outreach across the UAE and Qatar. Aviareps will be responsible for the airline’s sales promotions and marketing in the region.

The airline aims is to expand its clientele base further in the Middle East and attract more travellers to visit Sri Lanka.

Cinnamon Air provides domestic air taxi services that operate daily scheduled flights from Bandaranaike International Airport to key destinations including Kandy, Sigiriya, Trincomalee, Batticaloa, Dickwella and Koggala.

The airline also offers short scenic and charter flights to any part of the island for groups, cruise passengers and corporate travellers. The fleet consists of two eight-seater Cessna 208 Amphibian Caravans and a Cessna 208B Grand Caravan wheeled aircraft, both amphibian aircraft have the capability of landing on land and water. 

PIA flying three outdated jumbos

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akistan International Airlines (PIA) has not been able to ground its three ‘outdated’ jumbo planes despite receiving recommendations by its engineering department as it faces an acute of shortage of aircraft.

The airline’s acting chairman Mohammed Ali Gardezi told a parliamentary panel that out of the three jumbo jets, two are 25 years old while the third was partially damaged during a terrorist attack on Karachi airport.

The damaged aircraft was repaired and it is now airworthy. He said PIA would ultimately sell all these three aircraft and is interested in acquiring five ATRs for indigenous routes. Ideally, PIA should have a minimum fleet of 34 aircraft, but currently there are only 19 airworthy planes.  October 2014

19

Opinion

ANSPs operate as monopolists

By David McMillan Former Director General EUROCONTROL

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he European Air Traffic Management (ATM) scene, certainly as regards its institutional change, can sometimes make geology look like Formula One. I strongly believe that Air Navigation Service Providers (ANSPs) should not form part of a country’s aviation regulator or be too closely linked to government. In the UK,

separating NATS from the Civil Aviation Authority (CAA) allowed both entities to focus on their core businesses.

Separating the operator from the regulator is now largely the model in Europe and indeed it is coming elsewhere in the world. Getting NATS into the private sector, with a set of appropriate safeguards to protect the public interest, was the right thing to do.

I appreciate that other countries may find different ways of freeing management and of giving ANSPs focus.

But the added benefit of private sector investors looking for the efficient deployment of resources and for successful business partnerships with customers can be particularly helpful in focusing attention on performance.

And another benefit of setting ANSPs up as share capital based

companies is that, you not only create the opportunity to bring in new sources of finance and expertise, but also facilitate long-term partnerships. That really would be one means of defragmenting the system.

ANSPs, as markets currently operate, are monopolists- although some do compete in their domestic airport markets. The EU Single European Sky initiative with its legislative underpinnings has already set out the path for the defragmentation of the European system.

If a more genuine market in ATM services could somehow be established within the broader European airspace, the market freedoms – and disciplines – that would follow would prove that regulation is always a poor second to the market.

Regulatory attempts to defragment European airspace, such as

the Functional Airspace Blocs (FABs) have proved to be something of a disappointment thus far.

I suggest that all ANSPs should be set up as share based companies with equity that can be traded.

Governments could protect their legitimate national interests through regulation or by continuing to own shares, but the opportunities for cross-ownership could get the market ball rolling.

I recently joined the Board of Gatwick Airport, which is the UK’s second biggest airport and, with 38 million passengers, still the world busiest single runway airport.

Much of our attention at present is on seeking permission to build the next runway.  Excerpts from the speech at World ATM Congress in Madrid, Spain

Recipe to improve Caribbean aviation

By David Evans CEO LIAT Caribbean Airline

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he history and the current reality of Caribbean aviation can be characterized by a consistent failure over the last 50 years to provide an efficient air transportation system that meets the needs of the 40 million plus inhabitants of the region.The reasons for this failure are many and varied - chronic undercapitalization, economic adversity, sparse populations, poor hub structures, lack of investment in

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infrastructure and skills training and technology, political interference, trade union activism, national selfinterest, and a reluctance to work together towards a common goal.

Set against this rather bleak picture is the long-held dream of a single Caribbean airline providing efficient and affordable air transportation, connecting the peoples of the region, connecting the region to the rest of the world, and acting as an engine for economic growth.

The distinct lack of progress towards the realization of this dream suggests that it is probably unachievable without the political and economic cohesion that would allow such a concept to develop. I will be so bold as to propose six steps.

Caricom consists of 19 full and associated member states. It has created a Transportation Commission, an aviation and safety oversight system, and an advance passenger information system (APIS).

Yet only a handful of governments and airlines participate in these bod-

ies. All the governments and airlines of Caricom states should commit to full participation in these bodies and devote effort to delivering air transport benefits to their populations.

With regional governments being if anything, even more cash strapped than the airlines they own, there must be a case for encouraging private investment with governments maintaining a golden share.

This in turn would require these airlines to deliver an adequate return on capital invested, but without raising fares beyond the ability of their customers to pay. This is a balancing act but can be achieved by driving out the large costs and inefficiencies that exist in all Caribbean airlines without having to resort to price increases.

For every $3 spent on air travel in the region, $1 goes straight into government treasuries. A reduction in taxation on aviation would increase demand and actually increase the tax take back to the governments.

Transferring from one flight to another in the region is a tortuous

process due to differing security procedures. The endless completion of lengthy immigration forms to be presented after lengthy immigration queues is equally mind-numbing.

There are political, legislative, and technological solutions for all of these issues.

The Caribbean airline members of the Association of Latin American and Caribbean Airlines (ALTA) should commission a fleet and network planning expert to take all of the aircraft assets in the group, and as a planning exercise construct an optimum fleet and network plan free of individual ownership considerations.

All airlines rely on a host reservation system through which they sell and distribute their products. Historically, these systems have been expensive to acquire and operate.

The traditional GDS have not gained a strong foothold in the region.  Excerpts from the Op-Ed in Caribbean Journal

Opinion

Public investment in air transport development

By Ilham Aliyev President of Azerbaijan

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he opening of a new grand terminal building at the Heydar Aliyev International Airport is further evidence of the development of our country. If you look at the building from above, the building resembles a large bird with spread out wings.

Similarly, Azerbaijan is developing with its wings spread out wide and moving forward.

The development of air transport is one of the priority issues in Azerbaijan. Major investment has been made in the development of air transport. The growth of our state budget allows us the opportunity to allocate additional funds. I can say that all of the money channeled into the air transport infrastructure in recent years was made possible through public investment.

The airport will serve six million passengers a year. The old airport building constructed 15 years ago and overhauled recently can take a further three million passengers. Thus, nine million passengers can use the Baku airport every year. New airports have been built in other cities. Seven airports have been built over the past 10 years.

Five of them have international status.

Airports have been built and commissioned in Baku, Ganja, Nakhchivan, Lankaran, Gabala, Zagatala and Yevlakh. The number of international and domestic flights is increasing.

When we started the construction of regional airports, people suggested that it was not necessary, wondered who would be using them and thought that the airports would not organize a sufficient number of flights. But look how many passengers are using our regional airports today.

The government continues its policy towards purchasing new aircraft. Our national carrier AZAL does not have a single old plane. AZAL’s fleet today consists of Airbus, Boeing and Embraer aircraft. Today we have about 25 aircraft, and the process to acquire more is under way. In the near future we plan to purchase new large aircraft.

This airport can accommodate and provide the necessary ground handling services for the world’s largest aircraft Airbus A380.

The Azerbaijani government will continue to support the development of air transport. In general, the successful development of AZAL has a positive impact on the overall development of our country.

AZAL is taking advantage of the government support and is now one of the major companies not only in the region but also globally. Today, flights are organized to more than 30 airports around the world. The volume of cargo traffic in Azerbaijan is also increasing. We use our geographical location very rationally.  Excerpts from the speech at the opening Heydar Aliyev International Airport Terminal in Baku

Asset management for Gulf airports

By Tariq Chauhan Group CEO EFS Facilities Services Group

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he $32 billion investment plan to ramp up the Al Maktoum International Airport’s capacity to strongly indicates the significant push towards the aviation industry expansion.

In May, Qatar opened its new $15.5 billion airport to be able to handle a larger volume of passengers. IATA says $40 billion are

being invested in Gulf airports.

Inter-regional competition is intensifying. There is pressure to ensure that airport assets are well maintained and perform optimally. Airports have to find ways to cut costs and increase profitability whilst continuing to retain and attract customers.

Leading airports, including those in Malaysia and Schiphol, have already adopted asset management principles and seen dramatic improvements in asset performance and cost optimization.

Like any other public utility, airports have to optimize life cycle costs, maximize productivity and performance of infrastructure and facilities through strategic asset management measures.

As more and more investments take place in the aviation sector, facilities services are required to deliver and enhance the airport services in the most cost-effective way with a customer-focused ap-

proach.

Airports represent a real challenge in the field of Facilities Management (FM) because of their diverse nature and broad scope. It is important that FM companies take into account the technical competence.

With majority of the airports seeing fresh development, there is also a significant investment in new technologies. It is imperative that FM companies employ the right people with the right skill sets to manage the new technologies.

The sensitive nature of the airport environment requires that facilities services providers pay greater attention to safety requirements across the airport. Airports are open 24x7 365 days for its customers and seldom close parts of the infrastructure for maintenance.

Given the high usage of the equipment in airports, the lifecycle management of the assets

across the airport plays a vital role in order to ensure their longevity.

This includes scheduling and carrying of preventive maintenance in line with the equipment usage. It is critical that the presentation and comfort at the airport is given top priority at all times.

Today, all stakeholders need to plan and implement a comprehensive maintenance programme for the passenger terminals as well as the overall facilities.

This is to ensure that the facilities within the passenger terminals are serviceable 24/7, carry out improvement projects which enhances the value of the terminal buildings, extend the ROI while providing quality experience to facilities user and optimizing asset life while minimizing asset costs.

Government organizations in many economic sectors have already started realizing the role of asset management to their operations and performance. 

October 2014

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In Focus

The Future of Air Travel Customers want a more personalized and satisfying experience while airline executives look for more sustainable profit margins. Fortunately, these goals can be attained together

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whitepaper by Sabre Airline Solutions, based on interviews with airline executives and air travel customers across 18 countries, offers greater insight into changes and innovations that could usher in a new era for travelers.

Published by US-headquartered Sabre Airline Solutions and written by The Economist Intelligence Unit (EIU), the study said airlines in the coming decade will have the opportunity to transform themselves from commoditized providers of transportation to fulltrip coordinators that interact in an integral, more profitable way with travellers during every step of their journeys.

By adapting best practices developed by or refined in other industries and making the best use of existing technologies and the wealth of data travellers provide, airlines will be able to improve their return on investment (ROI), reduce costs and give customers more of what they expect of the total experience.

More than 100 airline executives and 800 passengers were conducted as part of the study, as well as in-depth interviews with 16 industry leaders. Half of the executives hold C-level positions, with the rest being SVPs, VPs or directors. The regions of North America, Asia-Pacific and Europe are equally represented with 30 per cent each, while Latin America, the Middle East and Africa make up the remaining 10 per cent of responses.

About one-third of the companies represented in the survey report $1 billion or less in annual global revenue, while 29 per cent boasts revenue of $5 billion or more. Participants in the consumer survey were screened to include only individuals over 20 years of age who had travelled by air in the previous 12 months; the gender

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October October 2014 2014

Today, customer options at the booking stage are confined to a handful of fairly crude categories: first class, business class or coach; vegetarian, halal food; non-stop or layover balance was near-equal (53 per cent male and 47 per cent female), with respondents spread across 18 different countries.

Research has confirmed that customers want a more personalized and satisfying experience and those airline executives want more sustainable profit margins. Fortunately, these goals can be attained together.

Existing technologies such as in-flight Wi-Fi, mobile devices and social media can help the industry improve the customer experience at a manageable cost.

Moreover, by adapting customer information management strategies from other industries, airlines can empower passengers by personalizing air travel, making it pleasurable once again.

By exchanging information with their customers in a more consistent and intuitive manner, airlines will be able to understand and actively respond to their customers’ needs and desires.

As airlines master these approaches, they will also be positioning themselves to vie for the role of full-trip coordinator — taking passengers from the booking process to and through the airport experience, on to the flight itself and beyond. Online travel agencies (OTAs) and the hospitality industry, as well as Big Data companies, such as Google, are already displaying an interest in this potentially lucrative role.

Airlines currently operate under fierce cost pressures. Deregulation removed a variety of supports and

protections for the traditional network carriers, and several waves of nimble, clean-slate, low-cost airlines — unburdened by retiree pension obligations, older equipment or outdated systems — have changed the industry’s operating standards.

Additionally, airlines are hit regularly, but unpredictably, by a variety of disruptions — in the weather, in energy markets, in political or security situations — thus making planning difficult or impossible.

Unable to control many variables, airlines have focused on not merely holding down costs, but on paring back as many costs as possible. Cost-cutting — which used to be a discrete, periodic process of reviewing and optimizing systems — has become a continuous process that, in the short term, has proven effective: costs have come down.

Travellers have issues with every segment of the experience: booking flights, getting to and from airports and traversing the

In Focus

“You cannot hide from the social media space” says Thierry Antinori, Emirates’ executive vice president and chief commercial officer. “You’re either completely out, and you have a lot of missed opportunities.

Or you are in, and you have to be good. So we chose to be in.” airports, as well as the actual experience of flying.

When customers are asked what improvements in their overall air travel experience they would most like to see, spending less time in the airport (78 per cent) topped the list, followed by having a more enjoyable experience in the airport and improving on-time performance (both at 74 per cent) For airline executives surveyed, the customer experience comes in third on their priority list (40 per cent), behind building customer loyalty (49 per cent), while cost reduction remains on top (57 per cent) by a wide margin.

Surprisingly, the goal of increasing revenues comes in fourth place at 34 per cent, indicating that airlines have reduced their focus on this priority by adopting the lowcost carriers’ pay-for-what-youuse approach to maximize passenger revenue per seat mile.

Existing technologies

Carriers are understandably reluctant to invest money and resources in unproven technologies. Adopting (and possibly adapting) a new technology and testing it can be

arduous, complicated, costly and time-consuming. Airlines can sidestep these problems by turning to technologies that have already been tested, refined and accepted.

As airlines welcome Wi-Fi, notebooks, tablet computers and other mobile devices on-board, air travellers are no longer in-flight Internet exiles.

Moreover, keeping current with how customers communicate — Web, text, Facebook, Twitter, etc.

— allows carriers to stay connected to them from booking through their arrival home.

The biggest game changer is WiFi — a crucial gateway. People assume they will always have Web access to modify and personalize their environments; thus, making in-flight access the norm instead of the exception opens up tremendous possibilities for both productivity and entertainment. After the initial investment, Wi-Fi can be provided at a relatively low ongoing cost.

Putting communications, entertainment and productivity devices literally back in the customer’s hands is one of the most powerful and efficient ways to personalize a trip.

Making in-flight Web access a standard feature instead of a frill often provides demonstrable operational savings. Such access can also open up new onboard revenue-generation opportunities — from premiums for special content to profit sharing across ecommerce partnerships.

Leveraging social media

Airlines can make additional gains by making better use of another proven technology — social media — before, during and after flights. Social media can improve customer service by serving as a fast workaround for overwhelmed phone lines or gate agents. They can also provide a richer exchange of information with customers in both directions, giving carriers an opportunity to listen, learn and respond.

Airlines may find it difficult to allocate resources to these constantly changing media channels, but that attention is now mandatory.

Create powerful synergies

Cost savings married to personalized service can lead to greater customer loyalty and higher profits. Logistics companies do something similar.

Many have expanded the package delivery options they offer in response to customer demand; they then track systems efficiency from package pick-up to package delivery, assessing and adjusting their services in response to customer behavior.

What a stay-at-home parent earning an income by selling goods on eBay needs differs from what a family business that mostly ships between the US and the Indian subcontinent needs, for example. Logistics companies track these trends and tailor their services, defining them with greater precision and specificity: time to destination; time, place and circumstances of delivery; level of security; packaging used, etc.

Wealth of travellers’ data

Airlines already collect much of the data that would allow them to make best use of the approaches of the hospitality, logistics and gam-

ing industries. Airlines were an early entrant in the modern data collection business when they pioneered computerized reservations systems.

But the industry now lags other sectors in how it uses its data. Airlines need to leverage the data they already collect to make trips as smooth and efficient as possible, to make flyers feel not only welcome but at home on-board and to understand the combination of factors that will engender repeat business and brand loyalty.

To the degree that customers book package deals offered on airline websites, airlines also have information about car rentals, hotel choices and even destination activities.

Airlines also have the technical means to make the most of such information. Airlines and airports are intensive users of operational data and communications technologies.

They also use data to improve the efficiency of sub-systems such as catering, cleaning, maintenance and fuelling. Data also facilitate better coordination between different systems. 

Top priorities over the next 10 years

Boarding without manual intervention using electronic Traveller identification using facial recognition or biometrics Real-time flight progress information using virtual reality displays Turbulence prediction systems for smooth flight In-flight videoconference capabilities Permanent baggage tags offering real-time tracking Seamless real-time trip information streamed to mobile devices from every provider on the journey Ability to order meals from airport restaurants or duty-free purchases for delivery aboard aircraft Augmented reality devices (such as Google Glass) to guide travellers through airports

October October 2014 2014

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Cargo & Logistics

EK Skycargo launches Cool Chain services

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mirates SkyCargo carried thousands of tons of temperature-sensitive commodities to all corners of the globe through Dubai during summer.

In 2013, the freight division of Emirates transported more than 313,000 tonnes of time and temperature sensitive goods on its freighters and in the belly hold of its passenger aircraft across its network via Dubai.

Perishable products such as fruit, vegetables, flowers and fresh meat from Africa and chilled meat from Australia, as well as pharmaceuticals from India, and many other commodities from various countries around the world, are shipped

everyday on Emirates SkyCargo, through its Cool Chain products and services.

Emirates SkyCargo’s range of advanced protective techniques and solutions in transporting perishable products include: Cool Chain Premium, Cool Chain Advanced and Cool Chain Basic, each of which is designed to meet specific requirements of customers.

Emirates SkyCargo’s perishable handling capacity has expanded with the opening of the freighter terminal at the Al Maktoum International Airport in Dubai World Central (DWC) where it has an advanced storage system and

Etihad Cargo starts service to Moscow

Brussels to become first IATAcertified pharma freight hub

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tihad Cargo has started twice weekly freighter services between Abu Dhabi and Moscow amid tightening sanctions against Russia by the West. Etihad operates an Airbus A330-200F freighter, with a capacity of 64 tonnes for this route.

Cargo plays an important part of Etihad’s business, contributing significantly to its total revenue. Etihad said it was on track to grow its

cargo operations into a $1 billion business this year. Etihad carried 268,713 tonnes of freight and mail during the first half of the year, up 25 per cent over the same period in 2013 Russia is accused of violating the sovereignty of Ukraine by backing armed militias in the east of the country that have been linked to the shooting down last month of a Malaysia Airlines flight. 

Lufthansa launches freighter flights to Lagos

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eginning September 15, German Cargo carrier Lufthansa Cargo has started twiceweekly MD-11 freighter flights on the Frankfurt-Lagos route. Lagos is an important destination for the oil and gas industry.

This route will provide a total of 170 tonnes of capacity each week. Another two weekly flights from Frankfurt to Johannesburg

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October 2014

will also stop in Nairobi on the southbound flight.

Lufthansa Cargo offers freight services on board its passenger airlines flights to three destinations in Nigeria. It also operates an Airbus A330 to Port Harcourt and Abuja. Other destinations in West Africa include Accra, Ghana, Malabo, Equatorial Guinea and Luanda, Angola. 

a perishable area designed to handle about 140,000 tonnes of cargo per annum.

It features three large areas each with different temperature ranges between 0-25 degrees Celsius. Since commencement of operations at DWC, Emirates SkyCargo has transported more than 55,246 tonnes of temperature sensitive goods.

In addition to belly hold cargo services to more than 130 destinations around the world using cargo hold capacity in Emirates’ fleet of 224 aircraft; Emirates SkyCargo has a fleet of 13 freighters, comprising 11 Boeing 777 Fs and two Boeing 747-400 ERFs. 

he International Air Transport Association (IATA) has welcomed the decision of Brussels Airport to become the first European hub for pharmaceutical freight using its global certification program for shipping cold-chain pharmaceuticals.

The IATA Center of Excellence for Independent Validators (CEIV Pharma) is a standardized global certification program that trains and conducts onsite assessments to provide the expertise needed adequately to transport cold-chain pharmaceutical products across the world.

Brussels Airport is inviting a group of ten local stakeholders to undergo the CEIV Pharma training, bringing the cargo com-

munity together for the common goal of becoming certified. In February, SATS Coolport (Singapore) - which handled more than 15,200 tonnes of pharmaceuticals in 2013 - received its CEIV Pharma certification.

The pharmaceutical industry has relied heavily on the airline industry for its speed and efficiency in transporting thighvalue, time- and temperaturesensitive cargo.

Until this year, there were no global certification standards that could be internationally recognized and implemented.

The global pharmaceutical industry will spend $8.36 billion on cold chain logistics in 2014 and is expected to expand to more than $10 billion by 2018. 

Cargo & Logistics

UAE freight market shows strong growth

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he UAE is expected to continue to see strong growth in 2014, across all of its freight modes.

The country is rapidly developing one of the world’s top logistics markets through investments in ports, airports, rail and free trade zones.

These are utilized by the country’s air freight and logistics companies, which are becoming a

familiar presence throughout the world, serving the globe from their UAE hubs.

According to a report prepared

by Business Monitor International, the air freight through Dubai International Airport is forecast to grow by 5.5 per cent and to average 5.0 per cent to 2018 in tonnage.

The Khalifa Port is forecast to enjoy gross tonnage handling growth of 25.5 per cent 2014.

Growth over the medium term will average 13.2 per cent. The UAE’s total trade real growth in 2014

forecast to be 7.2 per cent and to average 5.3 per cent over the medium term to 2018. 

CAPA: Asian air cargo in a rut

Deutsche Bahn sues airlines over cargo price fixing

he freighter fleet at Asia’s major airlines is largely has remained unchanged at 135 aircraft, down from 2012’s inventory of 148 aircraft and that of 133 in 2006.

Korean Air, China Eastern and Cathay Pacific have made the largest net additions while EVA Air and Singapore Airlines are alone in making net decreases.

Older and inefficient aircraft like the MD-11 and 747-400 BCF have been replaced by newer models such as the 747-8F and 777-200F. In a report, Centre for Asia Pacific Aviation (CAPA) says the sheer aircraft numbers mask lowered productivity, generally weakened load factors and yields, competition from outside the region and growing bellyhold

eutsche Bahn AG’s logistics unit Schenker AG has sued Air France-KLM and several other air carriers claiming that they fixed cargo shipping prices with surcharges.

Schenker alleged that the companies engaged in a “secret and unlawful global conspiracy” to inflate US air freight shipping costs from 1999 to 2006.

Shipping customers sued the airlines in 2006 alleging that they fixed prices through surcharges related to fuel costs and security following the Sept 11, 2001, terrorist attacks in the US. The airlines had reached settlements with other customers. Schenker did not settle.

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capacity. Of eight airlines studied, four had lower freight capacity in 2013 than 2012.

Between the freight aircraft peak in 2012 and 2013, five airlines reduced their number of freighters while three kept their fleet flat. China Eastern made the largest change by withdrawing a net total of five aircraft. From 2006 to 2013, five airlines made net additions to their freight fleet while two made decreases and one kept its fleet flat.

To respond to the weaker freight environment, some airlines have reduced their freighter fleet while others are pinning hopes on efficiency improvements to lift them out of the rut by using newer and more efficient aircraft, thereby reducing operating expenses. 

EC moves to tighten customs security

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new strategy to plug gaps in the EU’s customs security safeguards has been adopted by the European Commission (EC).

Effective measures are needed to protect legitimate businesses from smuggling, but they must not prevent the smooth flow of trade.

Customs risk management can also fight the spread of contagious diseases such as Ebola, stop illicit food such as bush meat entering the supply chain, and prevent the illegal trafficking of weapons.

The action plan looks at the movement of goods into and within the EU.

Schenker said that it purchased “millions of dollars of US air freight shipping services” from each of the companies during the relevant period in its complaint, filed against Societe Air France, Koninklijke Luchtvaart Maatschappij, Martinair Holland, Cargolux Airlines International, Qantas Airways, SAS Cargo Group and All Nippon Airways.

The company is seeking tripled damages under US antitrust law.The airlines’ price fixing was first exposed seven years ago and triggered fines of €800 million in the European Union in 2010 and a fine of $1.5 billion in the US. Victims of the cartel can sue separately for compensation. 

It builds on a 2005 proposal to improve the security and safety of goods crossing EU borders.

The new strategy was developed after failures in the current framework were identified.

In June 2013, the Council of Ministers called for measures to address those failings.

The 2005 initiative introduced the electronic exchange of information between customs offices on movements of goods, required traders to provide customs authorities with information on goods through electronic summary declarations; and introduced an EU-wide computerized system for risk management.  October 2014

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Technology

Hawaiian Airlines testing pre-printed bag tags

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he Internet and smartphones have made it easier to skip lines at airports by checking in and bringing a boarding pass in advance. But checking luggage for a long trip often still means waiting in line to get bags tagged and sent into the bowels of the airport.

Hawaiian Airlines is tackling that challenge, testing two pilot programs at Seattle-Tacoma International Airport designed to make it easy for customers to

tag their bags without the wait.

The first program, called Tag@Home, allows travelers to print out their baggage tag at home and bring it with them to the airport, where they will receive a plastic tag to hold their printout. Once they’ve attached the tag to their bag, they can drop the bag off at a designated drop-off point and head through security.

Tag@Home will run for a 60day trial period at Sea-Tac and Oakland International Airport in California. After that, the company will look over its data and consider rolling the service out to the rest of its network.

For people who don’t want to tag their bag at home, Hawaiian is also testing out a new selftagging service that allows users to weigh and tag their own luggage at a self-service kiosk at the airport. In addition to Seattle, the airline is also testing the service at eight other airports including JFK in New York and San Francisco International Airport. 

Aircraft head-up display on wearable glasses

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ero Glass is developing an augmented reality environment that will allow pilots to “see” terrain, navigation, ADS-B traffic, weather and airspace constraints on wearable devices such as Google Glass, Epson Moverio and other headmounted type displays.

The company is seeking beta testers to help refine the software’s features. Cost for the device and software will be less than $1,000.

Scheduled for release in the third quarter of 2014, Aero Glass offers much more than a replication of typical aviation data on an eye-level display.

Unlike a fixed-mount head-up display (HUD), which is oriented toward the front of the aircraft, Aero Glass is more like a military helmet-mounted display that works no matter where the pilot is looking.

Aero Glass also can display any kind of data, including elements that are dependent on where the pilot is looking. For example, inside the cockpit the pilot can complete checklists while looking through Aero Glass.

The Aero Glass display can paint a colored circle around switches or instruments that need to be checked or selected. It also can replicate a synthetic-vision display, but this display could show the outside world as viewed at any angle, say, down through the bottom of the aircraft.

Traffic display is more realistic and shows other aircraft in a more natural framework rather than as target diamonds on a panel display or tablet computer screen. Portable AHRS manufacturer Levil Technology is a technology partner on the Aero Glass program. 

New technology reads passengers’ moods

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n airport kiosk avatar that can tell how stressed passengers are at check-in and talk them through the process is being developed in Auckland.

An Oscar winning animation expert and an airport logistics company hope to roll out within a year a “personal avatar assistant” whose technology can read facial expressions and tailor its response to suit.

Self check-in kiosks are being installed rapidly at airports around the world as they are quicker at processing passengers and take up far less space than traditional counters.

BCS Group is teaming up with Limbic, a commercial spinoff from research being undertaken at University of Auckland’s Laboratory for Animate Technologies.

The planned avatar - which would be in both check-in, built by another company,

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SITA, and bag drop kiosks - would be able to assess emotions using 3D depth cameras and directional microphones that would feed it information.

If a passenger is tense the avatar would be more formal. If it detects you’re stressed it will probably be more businesslike, if it detects you’re on holiday it could be a bit more chatty, talking about your destination. An airline would be able to customize the uniform

and look or have a more generic look if it was on a kiosk shared by a number of carriers.International Air Transport Association (IATA) aims to have 80 per cent of check-ins done by passengers themselves by 2020.

The avatar work would be helped by $2.4 million of funding from Callaghan Innovation. BCS has installed its bag drop kiosks in Brisbane, Melbourne, Singapore and is about to roll it out in Beijing. 

Technology

TASAR offers optimized routes for aircraft

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ou get on a plane assuming that the flight plan has been filed in advance and that the flight will follow a set route. The first assumption is quite right. Not so for the second.

Traffic Aware Strategic Aircrew Requests (TASAR) is a programme being developed by US firm Engility Corp. for the NASA to make aviation more efficient.

The company is at the vanguard of an attempt by NASA to change all that after the space agency’s Virginia centre contracted Marinvent to conduct the flight-test program for TASAR. Marinvent, a research firm, pioneered the electronic flight bag, a digitized version supplanting the overstuffed satchels that airline pilots used to have to carry around with maps of the world’s airports and landing approaches, improving efficiency and safety.

That electronic version contained in a handheld tablet went on the market in 1996 and is now used by practically all the world’s pilots.

Marinvent’s US subsidiary, Advanced Aerospace Solutions, helped NASA with TASAR’s inflight testing. TASAR offers the pilot optimized routes (once airborne) and altitudes to avoid, for instance.

Behind the scene, TASAR is doing all these calculations, including traffic that might in-

Technology helps pilot land in fog

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ockpit-equipment makers are developing technologies to combat a major source of frustration for airline passengers: flights that are canceled or diverted due to poor visibility at their scheduled destinations.

Using computer-generated color images, and sometimes infrared-enhanced views of runways and their surroundings, Rockwell, Honeywell International Corp. and other suppliers are seeking to reduce such schedule disruptions and lost revenue for carriers.

The new onboard landing systems have been gaining momentum and seem poised for further regulatory approvals on both sides of the Atlantic. 

terfere with what is being asked to air traffic controllers.

TASAR is designed to piggyback on to ADS-B, a satellite surveillance system for the world’s aircraft currently being developed and that has been mandated for US airplanes by 2020.

Automatic Dependent Surveillance – Broadcast (ADS-B) is a key component of an epic global changeover in the world of aviation, from a spotty, incomplete patchwork of radarbased surveillance systems that can lose track of an airplane to a satellite-based air navigation that covers the planet.

Air traffic controllers routinely deny requests by aircraft crews to change flight patterns, including altitude and direction; for fear

that they may edge too close to other traffic in the area.

TASAR is designed to counter that by beaming better information faster about position and proximity to other planes. The GPS system “broadcasts information continually, once per second, far better than radar, which is once every 12 seconds - and less accurate than the Global Positioning System (GPS).

TASAR is not specifically designed as a safety feature, but more as a tool for airlines to improve their efficiency - shorter routes, less “separation” (distance) between aircraft on congested air corridors, optimal air corridors to reduce the effects of bad weather, as well as boosting ground performance, according to a report in Montreal Gazette. 

EMAS Technology to stop a runaway plane

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s part of an initiative to improve Runway Safety Areas (RSAs) at commercial service airports by 2015, the US Federal Aviation Administration (FAA) is working to adopt the Engineered Material Arresting System (EMAS) across the country.

Working in conjunction with the New Jersey-based Engineered Arresting Systems Corporation (ESCO), EMAS technology emerged to safely arrest overrunning aircraft on runways that don’t meet the 1,000-foot RSA standard due to lack of available land or other obstructions (bodies of water, highways and railroads, among others).

EMAS uses crushable concrete placed at the end of the runway to

decelerate the aircraft as the tires sink in to the lightweight material, should the plane overrun the runway.

A standard EMAS installation extends 600 feet from the end of the runway and an EMAS arrestor bed can be installed to help

slow or stop an aircraft, even if less than a standard RSA length is available.

In 2005, the Office of Airports prepared an RSA improvement plan for the runways at approximately 575 commercial airports.  October 2014

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