JUNE-JULY 2016
REYKJAVIK OSLO
DUBLIN LAS VEGAS
ROME
ATLANTA ADDIS ABABA
AV I AT I O N
I N
I R E L A N D
S U P P L E M E N T
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Aviation in Ireland Supplement
CONTENTS 04-05 Forewords IATA and Datalex give their views on Ireland’s place in aviation today.
06 Something for everyone Dublin is a popular destination and has a wealth of history for the traveler to experience.
08 Outgrowing the world Ireland has a vibrant aviation industry and has led the way with low cost airlines.
09 A digital Liffey IT plays a fundamental role in aviation and Ireland has become a base for information technology companies supporting the sector.
12 Delivering the fleet The leasing industry has made Dublin a home, making the city an important player for airlines.
13-145 From long haul to low Transatlantic travel began with many historic landings on Ireland’s West coast.
IATA Corporate Communications Director Anthony Concil Creative direction Richard McCausland www.iata.org
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Production Production manager Jane Easterman +44 (0)20 7880 6248 jane.easterman@redactive.co.uk
Printed by Stephens & George, Wales Publishing director Aaron Nicholls Headline sponsor
Editorial Editor Graham Newton Managing Editor Robert Coppinger Senior designer David Twardawa Senior picture researcher Claire Echavarry
Advertising Business development manager Nigel Collard +44 (0)20 324 2763 nigel.collard@redactive.co.uk JUNE-JULY 2016
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A SUPPORTIVE ENVIRONMENT FOR AVIATION Tony Tyler Director General and CEO, IATA
reland is a great aviation nation. It has played a significant role in the industry’s history and, if the current health of the air transport sector in the country is anything to go by, there’s little doubt it will be a star of the future too. Looking back, Ireland was a fueling stopover that made transatlantic flights possible. Facilitating crucial connectivity between Europe and the United States has remained a raison d’être ever since and can clearly be seen today in the country’s pre-clearance capabilities. This kind of foresight and commitment to connectivity is why aviation always has, and always will, thrive in Ireland. From a competitive leasing framework to technological innovation, the air transport industry enjoys a business environment in Ireland that can only be dreamed of in other parts of the world. Government support has proved crucial. This is perhaps best illustrated by the repeal of the €3 air travel tax in early 2014. It doesn’t sound like a lot of money but it was certainly short changing the Irish
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government. Scrapping the tax is estimated to have added about €100 million to Irish gross domestic product (GDP) and to have created an additional 1,000 jobs. The challenge now is to take these achievements to the wider world. All involved in the industry’s value chain need to communicate the benefits of aviation that is on full view in Ireland. Including aviation related tourism, air transport contributes more than $22 billion to Irish GDP and supports 167,000 jobs. Worldwide, those figures are $2.7 trillion and 62.7 million jobs. But, worldwide there are few places like Ireland, and so much potential good goes unrealized. This must change. Because Ireland is such a supportive place for aviation companies to do business, it is a pleasure to bring the IATA AGM to Dublin. Of course, it is also simply a pleasure to visit this vibrant city. And I suppose that’s the secret. Leisure and business mix effortlessly here and that winning combination is the result of connectivity that only aviation can efficiently provide. •
Air transport contributes more than $22 billion to Irish GDP. Worldwide, that GDP figure is $2.7 trillion.
AIRLINES INTERNATIONAL
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Foreword
WELCOME TO DUBLIN, IRELAND Aidan Brogan CEO, Datalex
s a small island in Europe, air transport is vitally important to Ireland, connecting us to the rest of Europe and the world. It is central to our economic and social development and links us to our ever-growing diaspora. Our airlines, airports and aviation industry have often been the leaders in driving change and the creators of new trends. They continue to be at the forefront of the marketplace today. Adaptability,
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innovation and speed were the skills which first saw man take to the air. These remain the most important words in our industry. Those who can adapt to embrace the ever-changing technological and consumer elements of our business will be those who thrive. Likewise, those who can innovate and keep pace with an evolving business, finding the right solutions quickly, will be the ones who earn a competitive edge. At Datalex, headquartered in Dublin, we are happy to play our part as a world leader in digital travel commerce. Through our dynamic pricing, offer and order management platform we are proud to help innovative airlines like you to adapt and evolve to own each or every part of the consumer journey. Datalex specifically supports the NDC and One Order initiatives under the Simplifying the Business program and we congratulate IATA on leading the industry through this exciting period. We welcome you, the aviation innovators and leaders, to Dublin, and we look forward to continuing to help you drive the future of digital commerce technology in air transport. Enjoy the AGM. •
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Dublin city with its Liffey river and bridges stretch out into the distance
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What to do in Dublin
SOMETHING FOR EVERYONE If you have the time, Ireland’s capital offers plenty of history and culture and even a famous brewery or two. 6
itting at the mouth of the river Liffey, Dublin is known as the fair city and this capital of the Republic of Ireland is a popular weekend away destination for Europeans. There is plenty to see, from the 13th-century Dublin Castle to the 12th-century St. Patrick’s Cathedral or the more recent Irish Museum of Modern Art. Victorian era sites include the Natural History Museum. At the University of Dublin’s Trinity College the 1,200 year old, 9th century, Book of Kells latin manuscript with 680 pages containing the four Christian gospels can be seen. Other sites with historical writings include James Joyce Tower and Museum, the Irish parliament at Leinster House, the President of Ireland residence Aras an Uachtarain, and the Dublin Writers Museum. While more typical places to visit are Dublin Zoo, the National Gallery of Ireland, the National Museum of Ireland, National Concert Hall, and Croke Park. But, the most popular attraction in Dublin is still the Guinness Storehouse. For another of Ireland’s famous exports there is the Old Jameson Distillery or the National Leprauchan Museum. For the riverside nightlife, a cultural quarter
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of the city is Temple Bar, an area located between Dublin Castle and Trinity College Dublin. It has many restaurants, bars, pubs and some shops. It is a place where tourists celebrating imminent weddings with a long weekend can be seen in a variety of fancy dress. For shopping, the city’s principal shopping area, also famed for its street musicians is Grafton Street, which is largely inaccessible for cars and buses. A long street that starts on the South East corner of Trinity College Dublin and stretches down to St Stephen’s Green park, many international brands can also be found there among the Irish retailers. In the first week of June there are also various free cultural and historic events in Dublin. They include the Dublin port river festival and exhibitions of art by the artists Vera Klute and Alan Phelan, and the future of farming at Dublin’s Science Gallery. The historic free events relate to the 1916 uprising centenary commemoration being held this year. That uprising saw the beginning of a struggle against 800-years of British rule that led to Irish independence in 1922. Today, airlines bring all nationalities together in Dublin for peaceful celebrations, tourism, family gatherings, and for business, from across Europe and the rest of the world. •
AIRLINES INTERNATIONAL
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Roundup
OUTGROWING THE WORLD rish aviation’s accomplishments are reflected in the recent progress at Dublin Airport, its newly approved North Runway which is a part of its ongoing investment program. Terminal 2 opened in November 2010 after the Terminal 1 extension in May 2009 and before that the new Pier D became operational in 2007. Now, the new runway is planned to be operational by 2020. It could support a further 31,000 new jobs over the next two decades, contributing €2.2 billion to Ireland’s gross domestic product. Such expansion will no doubt be part of Irish industry’s sales pitch at one of the world’s largest air shows, the Farnborough International Airshow in England, this year. At the show, Ireland is to showcase the strong capabilities it has. At the air show Enterprise Ireland will host a stand. Last year, the industry supporting agency had a stand at the Paris Air Show. It was success at that show that led to the stand being booked for Farnborough. What the world is already aware of is Ireland’s place as a world centre for aircraft leasing. The 1970s saw the beginning of it and now most of the world’s largest leasing firms, by dollar commitments, are operating from Ireland either with a regional office or their actual headquarters. Dublin continues to attract leasing companies from around the world, according to Irish leasing company Avolon’s head of strategy and
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founding executive, Dick Forsberg. “A lot of mid-size businesses, Japanese and Chinese, have been setting up over last couple of years,” he says. Leasing and low cost airlines are at the top of most people’s lists of Ireland’s positions of strength in aviation. Now, the low cost model is coming to transatlantic services. Norwegian wants to fly from Cork to Boston. Shannon Airport, the world’s first transatlantic gateway, also envisages low cost services to North America. Norwegian’s efforts to start low cost services across the Atlantic Ocean have faced resistance from labor unions and others, but the United States government’s Department of Transportation has let the airline take one more step towards full permission to offer the service. Norwegian’s Dublin based Irish subsidiary, Norwegian Air International, would operate that route. When commercial aviation began 100 years ago Ireland may have seemed like an unlikely place for such a vigorous industry. But, with its larger neighbor, United Kingdom, paralyzed over whether or not to add a runway at its largest gateway, Heathrow Airport, and potentially about to vote itself out of the world’s largest trading bloc, Ireland’s position can only strengthen further. Norwegian’s choice of having an Irish subsidiary makes that transatlantic low cost leap one more historic milestone for Ireland. •
DAA
Terminal 2 has some art of its own
AIRLINES INTERNATIONAL
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Technology in Irish Aviation
A DIGITAL
LIFFEY or aviation, information technology is more mission critical than most industries whether it is flight deck avionics, electronic flight bags or ticketing systems. This pervasive technology flows through the industry like a river in a landscape. It has the capability to transform airlines, airports, and service providers’ operations. From the passenger experience to the mundane baggage processing activities, IT can deliver cost efficiencies, new commercial opportunities and improved security. Ireland has seen some significant investment in aviation related IT in the 21st century. The Irish Aviation Authority describes its CAIRDE 2000 air traffic management system, installed in 2005, as, “one of the most advanced computerized radar and flight planning management systems in Europe.” During this century digital technologies have increasingly become the primary system for customer engagement and merchandising of products and services. The data from those products and services can be as important as the offerings themselves in giving insights into customer preferences. Data becomes insightful industry knowledge. As a knowledge economy, Ireland recognizes that the drivers of this, talent and innovation, are what has made the country a hub, particularly for aviation excellence. Technology infrastructure is a leading area of investment for Irish enterprise. In Ireland there are a variety of IT companies serving the aviation sector. The Boeing subsidiary, AerData, has an office in Dublin. Its software developers work with aviation experts to deliver software and product support to the industry. AerData delivers those reliable and
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AIR TRAFFIC MANAGEMENT SYSTEMS secure services needed for the precious data. Another company, located in Dublin, is Datalex. Its Chief Executive Officer, Aidan Brogan, said: “By leveraging the synergies between a business model that drives airline revenues, an existing pool of expert talent, and partnerships such as those with higher education institutions, Datalex has made significant contributions to the development of global airline commerce.” Irish IT providers have demonstrated their independence and agility in serving aviation. It is these attributes that bring additional benefits to a sector like aviation, where dynamism and a competitive edge are key. • JUNE-JULY 2016
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TRAVEL PER MONTH
FREQUENT FLYER WORK: HOLIDAY:
MILES: 2,800 AVERAGE: 2,000 P/M
PREFERENCES: TAXIS HOTELS WITHIN 3 MILES OF CITY CENTRE HOTELS WITH GYM BREAKFAST INCL. ASIAN FOOD
REGULARLY USES: FREE WIFI PRIORITY BOARDING EXECUTIVE LOUNGE
USES MILES FOR: FLIGHT DISCOUNTS AIRPORT MEALS
TRAVEL DRIVERS PRICE
SHARED
RISK
FLEXIBILITY
PACKAGED
ROUGHING IT
CHOOSES: BUSINESS CLASS WINDOW SEAT EXTRA LEG ROOM BLACK COFFEE SCOTCH WHISKY BLOCKBUSTER MOVIES
Adaptability. Innovation. Speed. 7KHVH DUH WKH VNLOOV ZKLFK ȩ UVW VDZ PDQ take to the air. They are now the skills ZKLFK PDNH Datalex a world leader in WUDYHO FRPPHUFH
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At Datalex, we give our clients the flexibility to own each or every part of the consumer journey from flight search to the return home. At every touchpoint, on every device, across every channel, we provide individually tailored pricing, shopping and order management solutions as well as offering unique customer insights.
which has the capability to dynamically configure and deploy promotions on a massive scale.
Adaptability: Our agile Commerce Platform allows our clients to handpick the components they need for their individual business model.
There are almost a million people in the air right now, many of them using the Datalex Commerce Platform. This is just a fraction of the one billion shoppers who annually interact with our travel marketplace.
Innovation: Promotions, pricing, rewards and products can easily be managed by our intelligent API, allowing our clients to think innovatively and add new dimensions to their business. Speed: From quick integration with existing systems to a robust architecture which allows for rapid growth, speed is an essential part of our product.
This functionality enables the efficient creation of a variety of promotion types which can drive demand and increase conversion rates. A functionality which resulted in those record-breaking figures.
All of this is why we were voted the ‘World’s Leading Travel Merchandising Solution Provider’ at the World Travel Awards 2015. Harness the latest digital commerce technologies to drive your business forward. Adapt, evolve and grow with technology that does the same.
A prime example of how this all came together for a leading client is when Air China achieved their daily sales record with an online promotion powered by the Datalex Promotions component. Datalex provides Air China with a highly flexible promotions framework,
www.datalex.com | info@datalex.com | Twitter: @datalex
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Airline Leasing
DELIVERING THE FLEET Avolon leases aircraft to Avianca
easing companies in the Republic of Ireland are estimated to manage almost half of the leased airliners worldwide, amounting to about 6,500 aircraft, a number which could more than double in the next twenty years as the global fleet reaches 40,000 hulls. The story began forty years ago and today 12-13 of the world’s top 15 leasing companies have a presence in Ireland. Offices and headquarters for these firms can be found in Ireland’s capital, Dublin, but also Shannon, a town on the West coast famous for having the airport where transatlantic services first reached Europe. Irish, American, Japanese, and increasing numbers of Chinese lessors can be found to be operating in the emerald isle. Like so much of aviation, there is a healthy dose of acronyms, SMBC, BBAM, or more exotic sounding names like Goshawk or Avolon. While there is now much activity to be found in the offices, and restaurants, of Dublin, the leasing base originally was Shannon. In the 1970s the Irish government created the Shannon Free Zone, an area where businesses could start up with some very beneficial financial arrangements. This approach to encouraging new business was eventually extended to the rest of Ireland. But, before that happened, a former Aer Lingus manager, Tony
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Ryan created Guinness Peat Aviation (GPA). Its investors included, Aer Lingus, Air Canada and the Guinness Mahon Bank. Ryan would start Ryanair in the 1980s and GPA would not last into the 1990s, but the seeds were sown for an industry. Through the thirty years since GPA and the world’s economic recessions, the Ireland based leasing industry has developed its own way of working with little red tape from government. The Irish government’s Department of Finance has, with lobbying from lessors, maintained a set of accounting rules and agreed bilateral tax treaties that have benefited the industry. “Ireland has well educated and professional people and it’s an English speaking environment with good schools and universities and you can maintain educated staff for the future,” says Irish leasing company Avolon’s head of strategy and a founding executive, Dick Forsberg. Reflecting the new presence of the Chinese, Avolon is a wholly owned subsidiary of Bohai Leasing. China’s HNA Group is another shareholder. Today, Ireland’s leasing industry employs up to 1,500 people and indirectly the services of tax advisers, accountants, and technical support. With the prospect of more than 10,000 hulls being leased in two decades from now, it is an industry that will be looking for many more people for many years to come. •
AIRLINES INTERNATIONAL
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Aviation History
FROM LONG HAUL TO LOW COST Ireland began as the first European transatlantic destination and became the birthplace of low cost airlines. reland is known for its bogs, the peat they contain is an export business for the country and so perhaps it is appropriate that the first non-stop transatlantic flight ended in one. Tipped up on its nose, the modified Vicker Vimy IV biplane landed in Derrygimlagh bog near Clifden town in county Galway in Western Ireland on 15 June 1919. Pilot and navigator, Captain John Alcock and Lieutenant Arthur Whitten Brown, British military aviators, had made the journey from Lester’s Field, near St. Johns in Newfoundland in sixteen hours and twenty-seven minutes. In 1919, Ireland was still part of the United Kingdom and the Vimy has been displayed in the Science Museum in London since. Transatlantic travel began in Ireland with many
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historic landings on its Western coast. But, nine years were to pass after Alcock and Whitten Brown before a joint-German, Irish effort made the first non-stop journey East to West from Ireland’s Western coast to North America’s Eastern seaboard. The first commercial transatlantic passenger flights began in early 1939 after experimental flights in July 1937 by seaplanes. Britain’s Imperial Airways’ Shorts S.23 four-engine seaplane named Caledonia and in the United States Pan American’s Sikorsky S.42B Clipper III started their successful transatlantic journeys from Foynes, Ireland and Botwood, Newfoundland, respectively. World War Two held up transatlantic commercial passenger flights, but 1945 saw the beginning of transatlantic services.
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A seaplane at Foynes, Ireland
JUNE-JULY 2016
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Dublin Airport in the 1950s
Early aviation in Ireland had its mishaps
Aviation History
Locals got used to the new Boeing 747
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Shannon Airport celebrated the 70th anniversary of transatlantic services on 24 October 2015. On that day in 1945 an American Overseas Airlines flight landed at the airport on Ireland’s West coast, south of county Galway. The airport’s Chief Commercial Officer, Andrew Murphy, says: “In October 2015, 24th October, we marked the anniversary with American Airlines which are the ultimate spin off of American Overseas Airlines.” According to the book, A century of Irish aviation PIONEERS AND AVIATORS, published by aircraft leasing and management company Avolon, 1945 saw scheduled services from Trans World Airways and Pan American Airways land at Shannon. It was there that airlines would refuel to go on to other destinations in Europe. While Shannon grew, Foynes would not continue as a transatlantic stop despite it being the place in 1943 where the coffee and whisky mix was first named Irish Coffee. Next year, 2017, will be the 70th anniversary of the world’s first duty free shop at Shannon Airport. Murphy explains that the shop has recently been called The Loop, but it is being returned to its original name, Shannon Duty Free. Next year will also be the 70th anniversary of the resumption of flights to continental Europe from Dublin Airport. Dublin Airport, first known as Collinstown Airport, officially opened on 19 January 1940 with a single terminal building. An Aer Lingus Lockheed 14 Super Electra in the airline’s silver livery with a shamrock left for Liverpool. However, sheep grazed on the unpaved runway at the time and had to be herded away when a flight came in. During World War Two, Aer Lingus aircraft had a camouflage
livery to avoid attack from the Luftwaffe. Ireland was a neutral country during the war, but Nazi Germany attacked the country anyway. In the 1950s, Dublin Airport gained a paved ramp and its traffic grew leading to the opening of a second terminal building, the North Terminal, in 1959. The airport has continued to grow. In 2007, Pier D opened in the October, part of a 1.2 billion euro 10-year investment project. The Pier can handle 10 million passengers a year. In November 2010 the airport’s Terminal 2 opened. This will enable the airport to handle 30 million passengers annually. This year has seen the approval of a second runway. The 1970s saw the beginning of the leasing industry in Ireland, and it started in Shannon. In what the Irish government called the Shannon Free Zone. The 1980s saw the beginning of the low cost airlines in Europe. In July 1985, Ryanair started its first route with daily flights from Waterford Airport to Gatwick Airport, the first international service from Waterford. Today, Ryanair operates more than 1,800 daily flights from 81 bases, connecting 200 destinations in 31 countries on a fleet of more than 300 Boeing 737. In April last year, Turkish Airlines gained permission to fly cargo from Shannon International Airport to Chicago. The capacity and capability of Irish aviation continues to grow. The location of the country, the Atlantic North East corner of Europe has given it unexpected advantages. •
AIRLINES INTERNATIONAL
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With over 1,700 ights per week to 184 international destinations, we connect you to where you want to go. Dublin Airport Car Parks, Fast Track and Executive Lounges are available at the touch of a button for your convenience on dublinairport.com or the free Dublin Airport app. Dublin Airport. Travel made easier.
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DAVID (40-55
DAVID’S JOURNEY DECISION & BOOKING
RESEARCH
PRE-TRIP
YRS
)
BUSINESS EXECUTIVE MARRIED
X
1
TRIP
2 CHILDREN (4,8YRS)
X
1
X
2
RETURNING
POST-TRIP
FLIGHT OUT CHECK-IN FLIGHT SELECTION
PAYMENT FLIGHT BACK
FLIGHT SEARCH
Business meetings in Zürich in 2 days.
Checks for flights & hotel from PC.
Pays for flights & hotel dynamic bundle with miles & voucher.
Airport Email Notification: Books the lounge, priority boarding or seat upgrade.
On Board: Orders a drink using RFID contactless payment via smartphone.
On Board: Notification via tablet app with information on restaurants, hotel concierge and ground transfer.
Meeting runs late: Changes flight via tablet app.
Departure: Pays for airport meal with miles in digital wallet.
The journey that could earn your airline millions. Datalex gives you the flexibility to own each or every part of the customer journey from flight search to the return home. At every touchpoint, on every device, across every channel, Datalex provides individually tailored pricing, shopping and order management solutions which allow you to deliver an exceptional experience. The Datalex Commerce Platform, along with our unique consumer insights, allows you to maximise revenue throughout the customer journey.
www.datalex.com | info@datalex.com | Twitter: @datalex
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