2018 – 01
airlines.iata.org
AIRLINES.
Airlines.
SECURITY: TYING THE STRANDS TOGETHER
2018 – 01
CEO Interviews Austrian Airlines, Saudia | Airports NEXTT steps IATA Opinion Expect the unexpected | Training Looking to technology Human Trafficking Working with airlines to defeat this crime
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THE A330neo.
airbus.com
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02/02/2018 09:44
FLY The A330neo shares many of the same innovations as the groundbreaking A350 XWB, delivering a 25% saving in fuel consumption compared to others in the category. Both aircraft also benefit from a common type rating, which means pilot training costs are significantly lower too. And on top of that, they can be fitted with our beautifully designed Airspace cabins, setting a new benchmark in passenger comfort and wellbeing. Innovation. We make it fly.
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02/02/2018 09:44
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22/03/2018 15:49
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FOCUS. Match up data from your fleet with Pratt & Whitneyâ&#x20AC;&#x2122;s expertise, and what do you get? An expanded field of view and a clarity to see solutions we achieve together. Engine Intelligence. Human Expertise. enginewise.com
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Airlines.
Contents 2018-01
Comment
Dossier
9 Alexandre de Juniac, Director General
27 Securing the skies
Changing times: no time to stand still in the business of freedom
The aviation industry must work with governments to tackle evolving and increasingly varied threats in security
18 IATA Opinon: Brian Pearce, Chief Economist
Features
Looking into the crystal ball
38 The cargo facility of the future
Digest
Air cargo facilities must change if they are to efficiently handle new types of products and ever-increasing volumes
12 IATA and industry update
Action—key to SAATM success; Safety still improving in commercial aviation; New Zealand tourism tax 'ill-conceived'
41 NEXTT steps in travel vision
Coping with the increased demand for air travel means the rapid development of new processes and new technologies
27
16 Data: In numbers
Air cargo statistics
7
44 Keeping your eyes open
CEO Interviews
48
COVER PHOTOGRAPHY: ALAMY
20 Welcoming new guests
His Excellency Eng. Saleh bin Nasser Al-Jasser, Director General of Saudi Arabian Airlines, on its rapid expansion
48 Training the next generation
Innovative techniques are needed to appeal to future aviation personnel
32 Ensuring European competitiveness
Kay Kratky, Austrian Airlines CEO, discusses the carrier’s attempts to grow despite a looming congestion crisis
IATA Corporate Communications Vice President Anthony Concil Creative Direction Richard McCausland Assistant Director Chris Goater www.iata.org Editorial Editor Graham Newton Head of content production DeeDee Doke Assistant editor Peter Lennox Senior designer Gary Hill Picture editor Claire Echavarry Production Production manager Jane Easterman +44 (0)20 7880 6248 jane.easterman@redactive.co.uk Publishing director Aaron Nicholls
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A major challenge for every government, IATA is campaigning to help airlines play a role in ending human trafficking
32
Advertising Business development manager Nigel Collard +44 (0)20 7324 2763 nigel.collard@redactive.co.uk
Follow IATA on Twitter @IATA and join our LinkedIn group For Airlines International subscription requests, or change of address notifications, email Airlinesint@iata.org We welcome feedback and content ideas
60 Seconds with... 50 Andrew Madar, CEO of Cobalt
Printed by Henry Stone Printers Airlines International ISSN 1360-6387
To access Airlines International content online visit www.airlines.iata.org
The opinions expressed in this publication are those of the individual authors or advertisers and do not necessarily reflect those of Redactive, IATA or its members. The mention of specific companies or products in articles or advertisements contained herein does not imply that they are endorsed or recommended by IATA or Redactive. The paper in this magazine is elemental chlorine free (ECF), manufactured within ISO 4001 environmental management standards and is sourced from sustainable managed forests. All of this publication’s content is subject to copyright, design rights and trademarks of Airlines International and third parties.
Subscribe to the Airlines International fortnightly email - register your details at www.iata.org/optin Published by Redactive Media Group, Level 5, 78 Chamber Street, London, E1 8BL +44 (0)20 7880 6200 www.redactive.co.uk
2018 – 01 Airlines.
27/03/2018 12:10
Where are your next pilots coming from? Right here. Every year, we train over 120,000 pilots in our bWUDLQLQJ FHQWHUV ZRUOGZLGH $GG WKH bH[SHULHQFHG SLORWV DFFHVVHG WKURXJK our crew resourcing centers, plus the 1,000 new pilots graduating from our training academies yearly, and answering the question KDV QHYHU EHHQ VR HDV\ Follow us @CAE_Inc
Your worldwide training partner of choice
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02/02/2018 09:47
Comment: Director General and CEO, IATA
Changing times This year, the airline industry is expected to record its ninth consecutive year of profitability and its fourth consecutive year of covering its cost of capital
ILLUSTRATION: SAM KERR
S
uch a period of extended profitability is without precedent in the postwar era. The change in industry fortunes is the result of some massive changes. And there is no time to stand still. More change is assured. Consider air cargo. While revenues have yet to return to the peak year of 2011, demand certainly has come back. For the first time since 2010, cargo demand is growing faster than the demand for travel. But to take advantage of that growth and make it sustainable, cargo must continue to evolve. A digital transformation to remove archaic paper-based processes is critical. Distribution is changing as well. The New Distribution Capability, so controversial a few years ago, is now mainstream. And a major modernization of IATA’s payment and settlement activities is being implemented. In March, Norway became the first country to implement the New Generation of IATA Settlement Systems or NewGen ISS. The same transformation will repeated across 140 other markets involving hundreds of airlines and tens-of-thousands of travel agents. How we approach safety is also changing. Last year was an excellent year, perhaps the best, in terms of the fewest number of passenger fatalities and fatal accidents. But we also know there is room for improvement. Traditionally, accident investigations have guided safety improvements. As the number of accidents declines, however, the key to getting to zero accidents rests in better understanding what happens in the more than 100,000 flights operating safely every day. That’s what we’re doing with our Global Aviation Data Management initiative. Some changes introduce new challenges as is the case with
airlines.iata.org
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security. To protect our passengers and crew, we are dedicated to keeping pace with evolving threats to aviation. But we cannot keep heaping processes and procedures—and restrictions—on our customers. And we have to find ways of working together to address emerging threats that are built on trust and dialogue. The alternative is more events like last year’s PEDs ban, imposed without prior warning or consultation. Change can also challenge us to live up to our values as a responsible industry—the business of freedom. Human trafficking is the fastest growing and second largest criminal industry in the world. Traffickers can abuse the good that aviation does by using it as a vector for their nefarious activities. The response is being led by governments and law enforcement agencies. And we are working with our membership to help airlines make an important contribution to fighting this criminal activity. This issue of IATA’s flagship magazine also marks change. You will have noticed the new look and name for this publication, now called Airlines. Why the change from Airlines International? Even if airlines operate purely in a domestic market, they are part of the great global network that connects and enriches our world. And that’s our focus: airlines and the enormous value they bring.
9
Alexandre de Juniac: Director General and CEO, IATA 2018 – 01 Airlines.
23/03/2018 10:28
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The 2018 Winter Olympics is a great opportunity to connect people and cultures. Held in Pyeongchang, South Korea, the event relies on scheduled commercial travel to bring in vast numbers of staďŹ&#x20AC;, media, and supporters. The local economy booms, friendships are made, and the experience resonates around the globe.
The Big Picture
Airlines. 2018 â&#x20AC;&#x201C; 01
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23/03/2018 10:29
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Digest Action – key to SAATM success
12
IATA has hailed the “momentous” launch of the Single African Air Transport Market (SAATM) by the African Union (AU) to open up the continent’s skies—but says successful implementation is vital. The SAATM is a deregulated airspace, allowing aircraft to fly freely between the 23 AU states that have agreed to the initiative. Raphael Kuuchi, IATA’s Vice President for Africa, said the agreement represented a decisive move towards greater intra-African connectivity, but warned the continent will only
Airlines. 2018 – 01
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realize the full benefits aviation provides if implementation is efficient and more countries commit to SAATM. “Every open air service agreement has boosted traffic, lifted economies and created jobs,” Kuuchi added. “And we expect no less from Africa on the back of the SAATM agreement. “But the benefits of a connected continent will only be realized through effective implementation of SAATM—firstly by the countries already committed and also by the remaining 32 AU member nations still to come on board.”
COUNTRIES WHO HAVE SIGNED UP TO SAATM (shaded in black) Benin Botswana Burkina Faso Cape Verde Republic of the Congo Cote d'Ivoire Egypt
Ethiopia Gabon Ghana Guinea Kenya Liberia Mali Mozambique
Niger Nigeria Rwanda Sierra Leone South Africa Swaziland Togo Zimbabwe
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23/03/2018 10:30
Digest
Every open air service agreement has boosted traffic, lifted economies and created jobs. And we expect no less from Africa on the back of the SAATM agreement.” Raphael Kuuchi (see story on p12, left)
Safety still improving in commercial aviation The commercial airline industry continued to see strong improvements in safety in 2017, according to data from IATA. The data shows an all-accident rate, measured in accidents per 1 million flights, of 1.08, down from 1.68 in 2016 and 2.01 in the previous five-year period between 2012 and 2016. The 2017 rate for major jet accidents, measured in jet hull losses per 1 million flights was 0.11, equivalent of one major accident for every 8.7 million flights, and improved from 0.39 in 2016 and from 0.33 in the previous five-year period. According to the data, there were six fatal accidents with 19 deaths among passengers and crew. This is against an average of 10.8 fatal accidents and roughly 315 deaths per year in the previous five-year period. There were
nine fatal accidents and 202 deaths in 2016. Not one of the fatal accidents involved a passenger jet, with five involving turboprop aircraft and one a cargo jet. The cargo jet crash also resulted in the deaths of 35 people on the ground as well as the jet’s crew. IATA member airlines did not experience any fatal accidents or hull losses with jet or turboprop equipment. Commenting, IATA Director General and CEO Alexandre de Juniac said lessons would be learned from 2017’s incidents and accidents as well as from the millions of safe flights with resulting information contributing to the development of predictive analytics with an ultimate goal of identifying and removing the conditions that can lead to accidents in future.
ONE ID PROGRAM TAKES A BIOMETRIC STEP FORWARD
Biometric recognition: end-to-end experience for passengers with One ID
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Significant steps will be taken in implementing One ID technology this year. Using biometric recognition technology, One ID will offer an end-to-end passenger experience that is secure, seamless and efficient, giving passengers a frictionless identity journey through the airport. A key focus in 2018 will be to establish a framework that gains the trust of the multitude of stakeholders involved in the travel process. This includes customs,
airports, airlines and suppliers. “The One ID concept will be refined, initial guidance materials will be produced, and a template trust framework will be developed,” says Nick Careen, Senior Vice President, Airport, Passenger, Cargo and Security, IATA. IATA’s latest Global Passenger Survey revealed 64% of passengers would like to use a single biometric travel token for all travel transactions. “One ID will make this a reality,” added Careen.
Events March to May
12th World Cargo Symposium March 13-15 Dallas, United States Wings of Change April 4-5 Santiago, Chile Fuel Microbiological Symposium April 17-18 Miami, Florida
13
Safety and Flight Ops Conference April 17-19 Montreal, Canada IGHC Conference April 22-25 Doha, Qatar CNS Partnership Conference May 6-8 Palm Spring, USA Cabin Safety Conference May 8-10 Bangkok, Thailand Aviation Virtual & Augmented Reality Summit (AVARS) May 15-16 Geneva, Switzerland Aviation Fuel Forum May 29-31 London, UK
2018 – 01 Airlines.
23/03/2018 10:30
Digest
New Zealand tourism: proposed tax would slow passenger demand
New Zealand tourism tax ‘ill-conceived’
14
A proposed tourism tax in New Zealand would be an “ineffective and ill-conceived policy choice”. IATA has emphasized to the New Zealand authorities that introducing the tax on international air travelers would undoubtedly slow passenger demand, and negatively impact the New Zealand economy. According to estimates, the tax could result in a reduction of 78,000 international passengers per year to New Zealand, and lower GDP by US$70 million. It is understood the tax will not be imposed on New Zealand citizens, as processing these exemptions would present a significant administrative burden, and cost expense, which should not be borne by airlines. If introduced, the New Zealand authorities should take responsibility for collecting the tax upon arrival or departure.
Spotlight on the IATA turbulence database A turbulence information-sharing platform is under development, which aims to launch in 2019. Working with airlines and industry stakeholders, IATA will develop a global database of real-time, aircraft-sensed turbulence reports. Turbulence is the leading cause of injuries to passengers and crew globally. 96% of respondents to a study stated they required real-time, objective data about the location and severity of turbulence.
This data will enable pilots, flight dispatchers and meteorologists to ultimately limit injuries from turbulence and reduce fuel burn.” Turbulance: an information-sharing platform will lead to limiting injuries and reduce costs
Airlines. 2018 – 01
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Gilberto Lopez Meyer, IATA Senior Vice President, Safety and Flight Operations Respondents included airlines, air navigation service providers, and militaries.
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23/03/2018 10:30
DRONE MANUFACTURER BECOMES IATA STRATEGIC PARTNER
A proposed tourism tax in New Zealand would lower GDP by $70 million with a reduction of 78,000 in tourist arrivals
$70million
Digest
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Manufacturer Dronamics has become IATA’s first strategic partner in the unmanned aircraft systems (UAS) sector. Dronamics co-founder and CEO Svilen Rangelov said the company and IATA “share a common vision” regarding the future of air cargo. “Our partnership with IATA means we can contribute the knowledge and expertise we have accumulated while at the same time leverage IATA's network and resources to further accelerate the adoption of unmanned cargo aircraft worldwide,” he added. “Together, we can achieve so much more.”
CARTAGENA AIRPORT ON THE RIGHT TRACK Since Cartagena reduced its international passenger fee from $92 to $38 in 2015, international passenger numbers have risen by 26%, with tourist arrivals to Cartagena increasing by 38%. The more competitive cost structure has also allowed airlines to establish new routes—flights to Atlanta, Fort Lauderdale, Amsterdam, and Madrid have been introduced at the airport. IATA has called on all governments to recognize the benefits competitive fees provide. “Unfortunately Latin America and the Caribbean, particularly the Caribbean, is rife with examples where onerous taxes and charges are imposed on aviation,” says Peter Cerda, IATA Regional Vice President, the Americas. “The economic value that robust and sustainable connectivity creates far outweighs the short-term benefits that can be obtained through taxation.”
15
THE CARTAGENA WAY Passenger numbers risen by International passenger fee $92 to $38
Tourist arrivals increasing by
26% 38%
$38 Drones: more unmanned cargo aircraft thanks to partnership
RELEASING BLOCKED FUNDS KEY TO AVIATION SUCCESS IN ANGOLA IATA has urged the Angolan authorities to prioritize the release of blocked funds so the country can realize the full economic and social benefits aviation provides. Blocked funds and denied access to foreign exchange in Africa is an increasing problem.
In nine African countries— including Angola—international carriers are unable to repatriate their foreign currency earnings, while locally-based airlines have difficulties making on-time foreign currency payments to suppliers and partners.
“Together with the industry, IATA will continue to work closely with Angolan authorities to seek possible measures to make the funds available,” IATA’s Director General and CEO Alexandre de Juniac said at an Aviation Day in Luanda, Angola.
2018 – 01 Airlines.
23/03/2018 10:30
Data
In numbers $3.5 trillion – the global e-commerce revenue forecast for 2019. 7.6% – the share of online retail compared to global retail sales. 66% – growth of e-commerce from Asia Pacific to Europe between 2013 and 2015.
Air China 6,089
Singapore Airlines 6,345
Cargolux 6,878
Lufthansa* 7,384
Korean Air 7,666
Qatar Airways 9,221
Cathay Pacific Airways 9,947
United Parcel Service 11,264
Emirates 12,270
Federal Express 15,712
A I R C A R G O V I T A L S TAT I S T I C S
Those figures show the huge potential of e-commerce.
Top 10 Cargo airlines (FTK, millions) (2016 figures)
Cargo revenues forecast to reach $59.2 billion
16
(up 8.6% from 2017 revenues of $54.5 billion)
59,200,00 Top freight country pairs (WATS, 2017) Country pair (O-D)
The world’s top cargo airports (2017, ACI)
8
Tokyo, Japan NRT
China’s famous “Singles day” saw online shoppers buy goods worth $17.8 billion in 2016, representing 657 million packages
9
Paris, France CDG
('Cargo must pick up the pace', www.IATA.org)
10
Frankfurt, Germany FRA
Freight tonnes carried (2016)
% increase 1
Hong Kong, China HKG
Japan – US
456,588
0.8
2
Memphis, United States MEM
China – Japan
401,340
11.6
3
Shanghai, China PVG
China – US
371,199
14.2
4
Incheon, Korea ICN
India – UAE
327,759
2.3
5
Dubai, United Arab Emirates DXB
UK – US
327,747
6.4
Unless stated otherwise, all figures are from Economic Performance of the Airline Industry, 2017 End-year report
Airlines. 2018 – 01
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6
Anchorage, United States ANC
7
Louisville, United States SDF
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23/03/2018 10:31
Data
Value of goods carried by air
Each day in air cargo ('The Value of Air Cargo')
7 6
$18.6bn
5 4 3
value in cargo shipped
Value (US$ trillion) 2 1 0
A rise in cargo carried to 62.5 million tonnes
20m 1.1m
(+4.5% on the 59.9 million tonnes in 2017)
smartphones are transported
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
parcels are sent
In 2008...
Volumes are expected to grow by 4.5%
62,500t of humanitarian
(slower growth than the 9.3% growth of 2017)
17
aid delivered by air per year
0,000
Freight traffic by region (by region of registration basis) in 2017: Share of industry-wide FTKs flown Overall industry % growth year-on-year = 9.0%. The strongest year for air freight demand since 2010 (IATA Annual Review 2017)
Africa
Asia Pacific
Europe
Latin America
Middle East
1.9%
37.0%
24.2%
2.7%
13.7%
20.5%
Year-on-year: 24.8%
Year-on-year: 7.8%
Year-on-year: 11.8%
Year-on-year: 5.7%
Year-on-year: 8.1%
Year-on-year: 7.9%
airlines.iata.org
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North America
2018 – 01 Airlines.
23/03/2018 10:31
IATA Opinion: Brian Pearce
Looking into the crystal ball It seems a benign 12 months awaits the industry, but expect the unexpected says Brian Pearce, IATA’s Chief Economist
ILLUSTRATION: SAM KERR
18
e are all interested in looking ahead. Investments need to be made. Staff need to be hired, or fired. Operations need to be planned. But the reality is that we run our businesses in a world characterized by radical uncertainty. Geopolitics, asset price bubbles, pandemics, confidence, are all more or less unpredictable. Knowing the future is difficult! Big Data and predictive analytics increasingly allow us to better understand consumer behavior. We can better predict consumer responses to changes in product characteristics, like price or service levels. That does not mean we can better predict the future. Weather forecasts have a similar challenge and, despite vast computing power, are still unable to accurately predict the weather more than a few days ahead. Weather systems are chaotic. So are air transport markets. The best response is to ensure our business models and balance sheets allow us to be flexible in responding to changes. But part of developing that flexibility means understanding trends and thinking about potentially disruptive factors. So, what trends have we seen develop in the recent past and can we identify potential disruptions?
W
Traffic growth
One important trend going into 2018 is strong traffic growth. The key question is how long can this last? Past traffic cycles have typically lasted around eight years before a downturn, and we are now in the ninth year after the 2009 low point. Barring Airlines. 2018 – 01
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unpredictable shocks, strong traffic growth looks set to continue on the back of a solid economic expansion. In our December forecast, we have predicted passenger growth of 6% in 2018. Strong traffic growth often, but not always, means strong financial performance by airlines. It depends what is happening to profit margins, and last year these were being squeezed by a sharp acceleration in unit costs—fuel and labor. The key issue for margins is whether unit revenues will keep pace with costs. The trend in load factors is promising. New records were set at the end of last year, and announced schedule increases for the summer season look modest. Yields also looked more positive at the end of last year. Certainly, if the economy stays strong there is a good chance margins will too, which is why we have forecast the collective airline industry profit will hit a record $38.4 billion this year. So, what could disrupt this relatively benign picture? As mentioned, markets are typically chaotic and so shocks are common and, by definition, unpredictable. But we can point to possible source of shocks with which to stress test your business. Economic shocks are always possible. Trade wars have been threatened but so far have not happened. Asset prices have been inflated by the trillions of dollars of central bank quantitative easing operations, the unwinding of which is underway. Accidents could happen. Fuel prices could also surge, though the emergence of responsive US tight oil supply may limit this risk. Perhaps the key opportunity in 2018 will be to use still healthy cash flows to prepare for future shocks, strengthening balance sheets and building flexibility into business models. airlines.iata.org
23/03/2018 10:31
VIENNA WHERE BUSINESS TAKES OFF
Where business meets culture: Vienna Airport welcomes more than 24 million passengers per year with more than every third passenger travelling for business reasons. 300 multinational companies and 30 international organisations like UN, OPEC and OSCE make Vienna a bustling hub for big deals. Millions of business travellers are waiting in the wings for you. Start a new business â&#x20AC;&#x201C; take off in Vienna.
viennaairport.com/business
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02/02/2018 09:56
CEO interview
Welcoming new guests His Excellency Eng. Saleh bin Nasser Al-Jasser, Director General of Saudi Arabian Airlines, details a new phase in the company’s history as it undergoes rapid expansion WORDS: GRAHAM NEWTON
20
audia was an aviation success story in 2017. Passenger numbers soared, more destinations were added and new aircraft acquired. And with a "game-changing" hub airport set to open in Jeddah later this year, even further growth is anticipated. His Excellency Eng. Saleh bin Nasser Al-Jasser explains the key factors behind the airline’s resurgence.
S
Are you happy with the airline’s performance in 2017 and what about your targets for 2018?
2017 was a remarkable year for Saudia. We were Airlines. 2018 – 01
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pleased to receive the Skytrax award for the World’s Most Improved Airline of 2017. The airline achieved in a single year many milestones never accomplished before. In addition to the Skytrax award, we also received accolades for inflight entertainment and connectivity, amenity kits, our children’s program, ancillaries, and catering. This could not have been done without the commitment from our team members. We achieved results that were unprecedented in the airline’s 73-year history. Saudia embarked on a Transformation Plan in the middle of 2015, and so the turnaround efforts and deliverables began to surface within a relatively short span of time, and will continue on until 2020. The focus has been on increasing guest numbers; a revitalization of the overall product and guest experience; increasing the number of destinations and frequencies, which are all part of the initiatives under the plan. As Saudi Arabia’s national carrier, we are committed to supporting the pillars of the Vision 2030, which includes increasing the number of visitors to the country from all corners of the globe. The visitor demographic is largely religious and business traffic, which will soon also expand to include leisure and tourism. What improvements have made the anticipated return to profit in 2019 possible?
In general, our focus has been on operating costs, as this is where the majority of the expenses are derived. We conducted reviews of all our operations and services to identify areas airlines.iata.org
23/03/2018 10:32
CEO interview
“The airline achieved in a single year many milestones never accomplished before”
airlines.iata.org
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2018 – 01 Airlines.
23/03/2018 10:32
CEO interview
to minimize wastage and redundancy. A number of cost efficiencies have been implemented, which are mainly operational in nature. This has been a substantial exercise that, in turn, allowed us to introduce new products onboard, which is an area that Saudia is investing in. The guest experience is of great importance to us, and we are very committed to ensuring that all of our guests feel the unique Saudia hospitality and have memorable journeys with us. The airline is expanding rapidly, with new aircraft and new destinations. What’s supporting this growth?
22
Rapid expansion is a very accurate reflection of Saudia’s strategy. We received 32 new aircraft in 2017, and 28 the year prior to that, taking us to 60 new carriers in the fleet within a two-year period. This means that we received a new aircraft, on average, every 11 days. The new aircraft are the Airbus A330-300 Regional, Boeing 787 Dreamliner, and the B777-300 fitted with our new ‘First Suite’ – Saudia’s latest First Class product. In addition to fleet expansion, our international passenger numbers have risen to double-digits; 14% growth in a single year, which is unprecedented in the airline’s history. When put into context of Saudia’s position in the Middle East, the pace at which we have been growing has been planned for, and is aligned with our strategy. It is also aligned with the Kingdom of Saudi Arabia’s new visitor targets. In addition, we have the new Jeddah Airport opening later this year, which will enable us to significantly redesign our network and hub, and gives us the latitude to increase our fleet as well. The opening of the new airport will be a game-changer for Saudia. It will be a new chapter in the airline’s history as our hub will allow us to welcome additional passengers that are transiting onwards to other points across our network. Presently, our network expansion has largely been impeded by space availability at Jeddah’s Airlines. 2018 – 01
20-24_IATA Feb-March18_CEO Saudia_Airlines-v2.indd 22
89 143
destinations are served by Saudia across four continents
is the number of aircraft in Saudia's fleet
Saudia became the SkyTeam alliance's
16th 20 global member on May 2012
plus destinations are served by the airline’s cargo division – Saudi Airlines Cargo – with a dedicated cargo fleet
existing King Abdulaziz International Airport where we have already surpassed the annual passenger capacity threshold. Currently, Saudia covers 89 destinations across four continents, and the opening of the new airport in Jeddah presents an opportunity for more guests to travel with the airline. Passenger load factors and cargo payloads have consistently been increasing in the Middle East region. There is an appetite for travel and, in particular, an opportunity to expand our cargo sector and also operate new routes to high growth and leisure markets. What is the thinking behind setting up flyadeal?
The newly launched flyadeal is a sister-company of Saudia and is fully owned by Saudi Arabian Airlines corporation, the aviation conglomerate consisting of 11 companies. flyadeal is a standalone entity and is a low-fare carrier, with its own dedicated fleet that targets the growing market of travelers who wish to find a low-cost solution to meet their travel needs, without paying for additional services. Low-cost carriers provide greater choice for local travel within the domestic market. Ultimately, lower fares will enable more people to travel, encouraging trade and tourism. Since its launch, which was on Saudi Arabia’s national day, September 23 2017, flyadeal has been operating to domestic stations only, but there are plans to open international routes in the near future. The strategy from the beginning has been to keep the two brands separate. There is a steady increase in demand in the domestic market, for point-to-point traffic around Saudi Arabia. Few are aware, but there are 27 airports in the Kingdom, with limited domestic air travel capacity to keep pace with demand. While Saudia does fly to all points within the Kingdom, flyadeal will complement the national carrier by allowing for a shift in focus to expand long-haul services, freeing up aircraft and crew on the domestic routes to grow the airlines.iata.org
23/03/2018 10:33
SEIZE THE OUTSIZE OPPORTUNITY.
747-8 FREIGHTER. A BETTER WAY TO FLY. The 747-8F is the world’s most capable high-volume freighter. The only freighter to offer both front and side loading, the 747-8F carries outsize cargo others can’t—and carries it more profitably. Moreover, the 747-8F can operate in challenging environments like high/hot airports, creating additional opportunities and flexibility. As the freight market strengthens, the 747-8F enables operators to maximize its potential now. Right now. That’s a better way to fly.
boeing.com/freighters
IATA.Feb18.025.indd 25
02/02/2018 09:55
CEO interview
brand, while ensuring the domestic market is well served.
began discussing with the concerned governments’ agencies our rigorous security procedures, and started a dialogue of cooperation. Our objective was to ensure cooperation and implementation of any procedures and with time, the ban was lifted.
The passenger traffic during the Hajj period is significant; and we are proud to have increased our number of Hajj guests 40% compared with the previous Hajj season. The airline carries Hajj passengers on regular scheduled services, and also on dedicated chartered services. We work with external partners on chartered services to deploy high-density aircraft on routes with high demand. In line with Vision 2030 and the Kingdom’s preparations to welcome additional visitors for the purposes of religious and cultural tourism, Saudia has focused on markets where increased traffic is expected, particularly in the East.
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PHOTOGRAPHY: GETTY
Is SkyTeam benefitting you and do alliances still have a role to play?
Saudia joined SkyTeam in 2012 and membership in the alliance has provided many advantages for our guests. They enjoy the benefits that come with being a member of a global alliance. Lounge access, seamless ticketing and baggage transfer with one booking, and frequent flyer miles and loyalty points are just a few of the advantages. As our passenger numbers increase— especially to long-haul destinations—having access to an alliance becomes more critical, especially for connections to secondary or niche cities, and seasonal leisure destinations. Lastly, with the opening of the new Jeddah International Airport, there will be even more opportunities to reap value from the SkyTeam alliance, as the new infrastructure will enable greater transit traffic. In light of the now-lifted PED ban, how important is it to harmonize security measures and for governments to cooperate?
In response to the PED bans, we immediately Airlines. 2018 – 01
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1945
How important is the Hajj seasonal traffic to the airline?
Saudia was founded as Saudi Arabian Airlines in 1945. The airline started with a single twin-engine DC-3 (Dakota) HZ-AAX given to King Abdul Aziz as a gift by the U.S. President Franklin D. Roosevelt
Saudia has achieved New Distribution Capability Level 3 certification. Why does NDC excite you?
There is a sizable proportion of our guests who purchase their air tickets through a travel firm or agency. Therefore, we singled out the third-party travel agent platform. When travel retailers were selling our product, they did not have access to content such as Wi-Fi packages, photographs of the cabin or seat layout, or any of the additional services we offer—such as travel insurance or car rentals. The NDC Level 3 certification allows us to showcase a modern look and feel to the travel agent platform, levelling out what is available today on the saudia.com website and making the NDC display comparable, so agents and retailers can clearly view and display our products to the end consumer. If you could change one thing about aviation tomorrow, what would it be and why?
Increasing slot availability in high-volume airports. Certain airports have slot limitations, or lack availability of new slots altogether. Aircraft landing slots are a critical part of building a route network, and having access to slot timings that match your network algorithm is a delicate balance. Slot availability and especially, the desired timing is not always available, which can compromise network growth. Progressive work in the area of digital implementation and technology-based procedures may facilitate and expedite the boarding, taxi and departure processes. Perhaps these steps may lead to more airlines having access to landing slots in the future. airlines.iata.org
23/03/2018 10:33
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02/02/2018 09:48
UNIFORMS OF THE
FUTURE GLOBAL LEADER IN
DESIGN - PRODUCTION - LOGISTICS IATA GROUND HANDLING CONFERENCE 22-25 APRIL, 2018 | DOHA, QATAR
IATA CABIN OPERATIONS SAFETY CONFERENCE 8-10 MAY, 2018 | BANGKOK, THAILAND
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22/03/2018 15:57
Dossier: Security
Dossier
Securing the skies 27
The aviation industry is supporting governments in tackling evolving and varied threats, while ensuring the passenger experience remains as seamless as possible. DeeDee Doke uncovers why collaboration with governments is crucial WORDS: DEEDEE DOKE
A multiplicity of policy, technical and operational issues are being deployed to meet the ever-increasing variety of security threats faced by airlines. Risks include terrorist attacks, cybersecurity threats, criminal activity, and geopolitical conflicts. The latest addition to the list is missile launches by rogue states. “The many strands that comprise the response to the security challenge must be tied together by industry and airlines.iata.org
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governments,” says IATA Director General and CEO Alexandre de Juniac. “Only through cooperation and information sharing can we effectively tackle future security threats.” Kaarlo Karvonen, Chair of the IATA Security Group and Head of Security, Finnair adds: “There’s always a new threat coming around the corner. All our resources go to crises.” A thwarted plot to detonate a bomb on an airliner flying from Sydney in July 2017
demonstrated the benefits of meaningful information-sharing. By sharing information, international and national government and policing partners were able to save lives and property. As affirmed in UN Security Council Resolution 2309, “states have the responsibility to protect the security of citizens and nationals of all nations against terrorist attacks on air services operating within their territory.” But industry has an important role to play in working with 2018 – 01 Airlines.
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Dossier: Security
governments to keep passengers and crew secure, particularly in terms of contributing operational know-how. Information-sharing
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Despite this natural partnership that exists among governments and with the industry, one key element remains a challenge. While information-sharing among governments helped to thwart the Sydney bomb plot, it is still not consistently occurring at the level it needs to be, nor is government sharing information with industry. An effective platform for such exchanges has not even been developed. “Information-sharing is not in the DNA of most government security organizations; we understand that,” says de Juniac. “But this reluctance must be overcome.” The tragic shoot down of MH 17 exposed this gap as it pertained to overflying conflict zones. Early hopes for the success of a web-based Conflict Zone Repository set up by ICAO were a step in the right direction, but it did not deliver the results needed and was discontinued. Nearly four years later, little progress has been made towards creating an effective platform for the exchange of threat/risk information. This is critical “during times of crisis when there are urgent threats and in the regular exercise of contingency planning,” said de Juniac. No platform
At the moment, the lack of such a platform handicaps the industry’s ability to be aware of threats and take steps to mitigate them. In contrast, many of those targeting the aviation industry have proven themselves to be highly adept at sharing information among themselves through social media channels and encrypted messaging. “Governments are never going to be the complete answer to the informationAirlines. 2018 – 01
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Andrew Nicholson, CEO, Osprey Flight Solutions:
“Security is everyone’s responsibility”
Per Haugaard, Director, Policy Coordination, Directorate-General for Mobility and Transport
“Aviation continues to be one of the key targets for terrorism”
Andrew Herdman, Director General, Association of Asia Pacific Airlines
“We operate in a fog of waiting for the next incident”
Matthew Vaughan, Director, Aviation Security Airport Passenger Cargo & Security, IATA
“It’s about identifying high-risk passengers”
sharing issue,” says Andrew Nicholson, CEO, Osprey Flight Solutions. “They will always have diplomatic pressures, always have classification constraints that will limit their ability to share information. So there have to be industry-led solutions to information-sharing, and we have to leverage technology to do this.” The breadth of information-sharing necessary for airlines is “part of the challenge,” acknowledges Randy Harrison, a member of IATA’s Security Group and Vice President Corporate Security, Delta Air Lines. “We have to adapt informationsharing to keep up with the threat environment… There remains no platform. We can’t share on a broad scale, in real time,” Harrison continues. “If we don’t close the gap, it will continue to grow. And we will be in a brawl with our hands tied behind our backs.” Possible models
Delta’s Harrison suggests that possible models for an information-sharing platform for aviation security use are STEADES, IATA’s aviation safety incident data management and analysis program, and one deployed by the maritime industry’s Maritime and Port Security Information Sharing and Analysis Organization (MPS-ISAO). The latter’s features include a secure public-private collaborative infrastructure, and its threat information reports and advisories are available to “vetted” Maritime and Port critical infrastructure stakeholders. A Traffic Light Protocol, a set of designations of four colors (white, green, amber and red), ensures that sensitive information is shared only with the appropriate audience. Each color represents an expected sharing boundary to be applied by the recipient, with information labeled white airlines.iata.org
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Dossier
available to the broadest audience of the four and red the most tightly restricted. In tandem with constructing a platform on which to share information, building relationships is essential. A few countries are already starting to see success in this area. In the Netherlands, a government-led group of informationsharing experts, including representatives from KLM, meets every three months. “At first, everyone was a little reluctant,” says Ronald H. Augustin, Security Director and Deputy Vice President, KLM Security Services. “Now it’s working perfectly.”
PHOTOGRAPHY: ALAMY, GETTY
Culture of security
Also critical is creating security-focused cultures within aviation organizations including their extended communities that provide services to airlines, their passengers and staff. For instance, at airports, taxi drivers can be significant sources of information, based on their understanding and observations of what is normal and what may be abnormal activity in landside areas. “The more ears and eyes you have on the ground” is beneficial, recommends Hans Merten, Security Director, Budapest Airport. Speaking also to information-sharing, Merten outlines processes at Budapest in which proposed landside development measures must be submitted to the airport’s CEO and its security advisors and air police for review. This is to ensure that additions such as parking garages and road amendments will not create potential security gaps, which can pose dangers to not only landside facilities but also aircraft on the ground or in the air, cargo facilities, and passengers. Finnair’s Karvonen says, looking ahead to future action, “In aviation, we tend to be pragmatic, and in the IATA safety group, I will be urging we need to get things done.” airlines.iata.org
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Borders… Pre-clearance set to expand US Customs and Border Protection (CBP) pre-clearance currently has 15 air operations at airports in six countries outside the United States: Aruba, the Bahamas, Bermuda, Canada, Ireland, and the United Arab Emirates (Abu Dhabi). At these sites, international air travelers going to the US undergo the same inspection they would as if they were entering the US. Pre-clearance reduces congestion at CBP facilities at ports of entry on US soil. When the aircraft arrives in the US, it is treated as a domestic arrival, which greatly simplifies pre-cleared passengers’ onward connections. Setting up a pre-clearance facility requires coordination among the governments involved. First, government-togovernment pre-clearance agreement must be negotiated and entered into force. Once that is done, the focus is on coordinating to insert CBP procedures into the preclearance airport. Etihad Airways CEO Peter Baumgartner said at AVSEC World that the airline was proud to have a pre-clearance facility available at Abu Dhabi International Airport. “This is the kind of cooperation we need to continue to build in more airports around the world, to collectively be responsible for passenger safety across the globe,” Baumgartner said
in opening remarks. IATA Regional Vice President Africa & Middle East Muhammad Ali Albakri said, “Feedback on US pre-clearance facilities suggests passengers have smoother journeys into the US, particularly for those connecting to another flight at a US airport.” There are, however, some challenges. Often times, significant investments are needed to implement pre-clearance facilitation. And once implemented, the strict conditions under which pre-clearance needs to operate can reduce operational flexibility for airports and airlines. It is also important that the airline community is effectively consulted and that the investment and operational costs are equitably shared.
“This is a government-togovernment level decision. And too often effective consultation with airlines is not a part of the process,” said Albakri. The American Congress established the requirements for beginning pre-clearance operations at an airport outside the US in the Pre-clearance Authorization Act of 2015. The Act allows the US Secretary of Homeland Security to establish pre-clearance operations to prevent terrorists, “instruments of terrorism,” and other security threats from entering the US; prevent so-called “inadmissible persons” from entering the US; ensure merchandise destined for the US complies with applicable laws; and ensure the prompt processing of people who are eligible to travel to the US.
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10 minutes is the maximum acceptable queuing time at immigration for 74% of respondents IATA 2017 GPS
2018 – 01 Airlines.
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Dossier: Security
Secure approaches
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No discussion of protecting the business of freedom is complete without references to both ‘safety’ and ‘security.’ However, the line between the two disciplines is becoming increasingly blurred in the aviation world as the result of geopolitical conflicts, cyber security and other emerging threats. “We’re in a world where safety and security become one,” said George Rhodes, Assistant Director Safety and Flight Operations, IATA, at the recent AVSEC World conference. For instance, added Matthew Vaughan, Director of Aviation Security, IATA, “is cyber security safety or security?” Defining where it sits is one of the biggest challenges for the industry at the moment, with a circumstance “almost impossible to define before an incident happens,” he said. At the moment, the industry agrees, the lack of clarity is “an extremely complex and serious issue to deal with,” said Vaughan. Today the line between ‘safety’ and ‘security,’ Rhodes said, is “a perceived boundary that sometimes hampers a proactive approach, but in reality there is no set boundary between safety and security as actions, responses, planning, and coordinating will affect all aspects of aviation. “To formally define a set boundary,” he said, “could hamper the flow of information exchange.” “Conventionally, ‘security’ approaches require controls and a response to a deliberate harmful act,” explained Vaughan. “Therefore, the degree to Airlines. 2018 – 01
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Discussion on… The biometric experience Biometrics will play a key role in meeting IATA’s vision of an end-to-end passenger experience that is secure, seamless, and efficient. Travelers are keen to see biometric identification incorporated into the travel experience if it will result in a smoother and simpler travel experience. In IATA’s 2017 Global Passenger Survey, 64% of respondents saw it as a preferred means of identification. Airlines and governments also see biometrics as an efficient form of identifying travellers. This is reflected in IATA’s One ID initiative. One ID seeks to introduce a streamlined, friction-free, and passenger-centric process that allows an individual to assert their identity, online or in person, to the required level at every process step from booking throughout departure, transfer and arrivals, while maintaining the privacy of personal data. The use of a trusted, digital identity and biometric recognition (facial, fingerprint, iris, etc.) will allow for a more personalized customer experience to be delivered, cost-efficiency to be improved, and security benefits
to be gained. It can break the traditional paradigm where security and passenger facilitation come at the expense of one another, allowing both to be enhanced simultaneously. Over the last year, biometric trials have been undertaken at Brisbane Airport with Air New Zealand, KLM and Amsterdam’s Schiphol Airport, and JetBlue with Boston’s Logan International Airport. Most recently in January, British Airways (BA) worked with the US Customs and
64% of respondents chose biometric identification as their preferred traveling ‘token’ IATA 2017 Global Passenger Survey
which an operator is able to effectively measure probably remains elusive. The events of 9/11 and the associated international response of aviation security measures in the time since have underscored the need for a balanced and combined approach of intelligence, technology, and behavioral detection.” For a combined safety/security approach to commercial aviation that can work effectively, the two disciplines of safety and security “need to have a set of
Border Protection (CBP) and the US government to begin a trial of self-service biometric boarding gates at Los Angeles International Airport for two nightly flights to London. Passengers will no longer need to present their passport or boarding pass at the gate, only at check-in and security. Instead, travelers look into a camera before they board, wait for their biometric data to be verified, and then walk on to the aircraft. Also in January, Aruba’s Queen Beatrix International Airport became the first airport outside the US to pilot the CBP’s biometric entry program. The facial recognition system will be used to verify the identities of travelers re-entering the US from Aruba on a daily Delta Air Lines flight to New York’s John F. Kennedy International Airport. “This pilot will be instrumental in taking our airport to the next levels of security and passenger service,” says Aruba Airport Authority CEO James Fazio. “Our past experiences with biometrics have been very successful… and we fully expect they [CBP] will be successful on a full implementation of this technology.”
processes in place that provide an honest, trusted and valuable information exchange between the two,” urged Rhodes. “Such an exchange would allow for a more proactive approach to be taken when managing any unprecedented safety or security event or change.” Vaughan added, “Moreover, aviation security as a stand-alone discipline is evolving, and is naturally linked with the national counter terrorism programs of ICAO States – thus, arguably, several airlines.iata.org
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Peter Baumgartner, CEO, Etihad Airways
“Our industry must find ways to recognize suspicious activities, and keep up with evolving concealment techniques” airlines.iata.org
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Dossier
more stakeholders are involved in the delivery of shared protective security outcomes in civil aviation.” An example of a working informationsharing approach is a published Air Traffic Management (ATM) process of communication exchange used in the Middle East region. Called the Contingency Coordination Team (CCT), it responds to active ATM events within that region. Depending on the event, the CCT will include additional stakeholders including airlines, airport operators, international organizations, and security teams at both state and local levels. This approach requires a 24-hour per day commitment to a “communication chain of value,” Rhodes said. While the CCT approach would have to be “matured” to apply it to security as well, he added, using the same information chain would avoid over complication. Vaughan points out that at the strategic level, IATA’s IOSA [IATA Operational Safety Audit] integrates a safety and security risk-based framework for an ‘all-hazards’ approach to airline operations. Both Safety Management System (SMS) and Security Management System (SeMS) approaches complement each other’s focus on risk identification
“Airlines have operational know-how. Governments have the financial and intelligence resources. We must simply work together”
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Alexandre de Juniac, Director General and CEO, IATA
and effective oversight on controls. However, he says, “the root cause of the disconnect that IOSA aims to close the gap on is that SMS is an international standard, while SeMS remains a recommended practice only.” Raising SeMS as an international standard would be the first step in achieving what Rhodes described as IATA’s ultimate goal of “a harmonized approach and trust building that would open an honest information exchange with all stakeholders.” Following that first step, Vaughan said that continuing to lobby for a risk-based approach by regulators to security would ensure safety/security disciplines are “integrated to the best advantages of industry.” Between now and the next IATA AVSEC conference, IATA will focus on the ICAO Global Aviation Security Plan (GASeP), which has identified five key priority areas for ICAO, States and
industry to deliver on: enhancing risk awareness and response, developing security culture and human capability, improving technological resources and innovation, improving oversight and quality assurance, and increasing cooperation and support. The central intent of GASeP is the adoption of an information sharing, collaborative approach to identifying and controlling risks to civil aviation. “In this connection,” Vaughan said, “our focus in 2018 is to support the industry’s role in initiating and delivering as many tasks and activities as possible” associated with one or more of GASeP’s five priorities. Vaughan went on to say that both of the next IATA Safety and Security annual conferences will, for the first time, include dedicated cross-discipline briefs with their event programs “to continue the fundamentals of an integrated approach to addressing all-hazards risk management” in civil aviation. 2018 – 01 Airlines.
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CEO interview
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CEO interview
Ensuring European competitiveness Kay Kratky, Austrian Airlines CEO, discusses the carrier’s attempts to grow despite a looming congestion crisis WORDS: GRAHAM NEWTON
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A
ustrian Airlines went from strength to strength last year. The airline carried 13 million passengers—and it expects even more to fly in 2018. Kay Kratky, Austrian Airlines CEO, says economic and political stability in Eastern Europe and Russia can drive traffic growth in this region, with Austrian primed to capitalize. However, if European aviation is to reach its full potential, Kratky believes infrastructure improvements are crucial—both on the ground and in the air. In an interview with Airlines editor Graham Newton, Kratky also discusses the airline’s recruitment drive, and explains why aviation is still a “sexy industry” to work in.
What was the strategy behind your successful 2017 results?
We did a good job on restructuring. This was started a few years ago but it was finalized and fine-tuned in 2017. Our capacity increased because we completed the switchover from Fokkers to our new Embraers, but we were able to sell the extra seats and the yields were good. airlines.iata.org
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In brief… Kay Kratky Early career A former pilot, Kratky started his career in aviation in 1981. He worked for Deutsche Lufthansa and later Lufthansa Cargo—where he was captain of a Boeing 747-200.
Management roles He held various management duties at Lufthansa Cargo between 2000 and 2008, before becoming CEO at Jade Cargo International in Shenzhen in southern China.
Move to Austrian He returned to Lufthansa in 2011, and was made Lufthansa German Airlines COO, before being appointed Austrian Airlines CEO in August 2015.
A number of other factors helped us. The fuel price was supportive, the industry is generally running well, and the economies in most of our markets were performing strongly. So, there was a good framework for success. Will the new Embraers, Boeing 777s and long-haul destinations help you to improve again in 2018?
The Boeing 777s arrive in May 2018 and will make a real difference to our long-haul network. There are two new destinations too, Tokyo and Cape Town. There is still the potential to increase our load factor, which was close to 77% last year. This is something that is high on our agenda. We are not doing badly but we can always do better. The airline flew 13 million passengers safely in 2017 and we expect to do better in 2018. We also expect the stable, supportive market conditions to continue. Why choose to install premium economy on your long-haul fleet now and what difference do you think it will make to your revenue?
The decision to implement premium economy was taken soon after I became CEO in late 2015. To be honest, I was surprised we didn’t have it. I 2018 – 01 Airlines.
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knew from my experience at Lufthansa that this is a very promising segment. It will definitely boost revenue. If you look at revenue per square metre on the aircraft, then premium economy is the best performing cabin class across the Lufthansa Group. I’m sure that will be the case for Austrian too. It is taken some time to prepare but we are spending €15 million on refurbishing the fleet and the expectation is for a good return on the investment. How important are the Lufthansa Group and Star Alliance in influencing your day-to-day decisions as well as your overall strategy?
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Austrian certainly benefits from both the Lufthansa Group and the Star Alliance. It is about what the customer offer and ensuring the right products are available. On a day-to-day basis, within the Lufthansa Group we discuss our networks and who is best positioned to serve certain destinations. And we always look at the processes in place and how they can be improved. The collaboration between Group members is now well established. And, of course, one of the cornerstones of the Group’s strategy is the Star Alliance. That brings opportunities even beyond the extensive reach of the Group. Do you think alliances still have a role to play or do you see airline groups – with ownership or at least equity involved – as the best way forward?
The alliance model has been a strong foundation for the industry for a number of years now. It is still relevant because it continues to deliver benefits for passengers. There are new models of cooperation coming into the industry and these models do not necessarily correspond with alliance groupings. But they do not have to conflict with alliance membership. Often, they are complementary ways of broadening the scope of an airline and making it more profitable. Airlines. 2018 – 01
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€12bn
CEO interview
Air traffic control (ATC) in Europe has cost €12 billion in lost GDP since 2010. Let’s see what the SES2+ package brings but at the very least it must call for faster action and more stringent targets
What are the opportunities and challenges in Eastern Europe?
Eastern Europe and Russia and the CIS are big markets. About 15 or so years ago, these markets were 30%-40% of Austrian’s business. It was a real focus for the airline. But the markets suffered economically and there was political instability too. The Austrian network had to change to lessen our exposure. We are starting to see some stability return to the region and there are some positive signs. And although we minimized our operations, we kept our foot in the door. We do want to strengthen our presence there again and the situation is being watched closely. Over the next two or three years there may be some new routes. It is a slow process but there is room for growth in the region and Austrian is well placed to take advantage. What is your view of EU Aviation Policy? Where should regulation be strengthened or reduced?
The EU Aviation Strategy is an important step because it’s the first time that aviation was recognized as a backbone of European economies. Of course, there are areas of policy that can be improved. Look at CO2 emissions. There is still an emissions trading scheme within Europe. And now there is also the Carbon Offset Reduction Scheme for International Aviation (CORSIA). We don’t know yet how these systems will work together. It would not be fair to have to pay twice for the same emissions, so we hope there is a clearer picture in the months ahead. Passenger rights, the Airport Charges Directive and the Single European Sky (SES) are ongoing challenges. SESAR Deployment Manager is making some progress on SES but, as with the other issues, there is a long way to go. The important thing is to ensure we have a European perspective on global issues and see European aviation in the context of a global market. European carriers need to have a level playing airlines.iata.org
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CEO interview
77%
SES2+ package brings but at the very least it must call for faster action and more stringent targets. The continual ATC strikes are also a problem. As long as air navigation service providers are owned by governments then local issues will take precedence over regional needs. There is no structured approach, too many single units and too few synergies. There are some promising initiatives but, in general, progress is too slow and not comprehensive enough.
There is still the potential to increase our load factor, which was close to 77% last year
€15 million
is being spent on refurbishing the fleet and the expectation is for a good ROI 36
field. They need to be competitive if they are to continue boosting European GDP and jobs. What can be done to tackle congestion in Europe as air traffic grows?
There is always resistance from local communities and other campaigners with regards to big infrastructure projects. I don’t think this will go away and it may even become stronger even though the benefits of aviation are clear. Added to this is the length of time it takes to go from the first proposal to completion. Runways and terminals now being considered are years, even decades, away. Therefore, I don’t see many opportunities for big infrastructure projects on the ground and if there is an opportunity it takes too long to seize it. A bottleneck is coming, and it should be a priority discussion if Europe is to remain competitive in aviation and prosperous as a region. And we should not forget the infrastructure in the sky. Already the congestion in Central European skies hurts Austrian quite badly. Air traffic control (ATC) in Europe has cost €12 billion in lost GDP since 2010. Let’s see what the Airlines. 2018 – 01
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20% At Austrian, 20% of our maintenance apprentices are female. There’s a long way to go but that’s a huge improvement over just a few years ago
You are doing extensive hiring of new employees. Is aviation seen as a good career and an airline as a secure job?
It is difficult to give a general answer as I think people look mostly at specific companies. But I think aviation is still a sexy industry. The glamour has gone a little bit, but people are still fascinated by it. Nevertheless, recruitment is guided by local factors and the company’s standing compared with other local companies. Austrian is lucky as we have a good brand and very positive feedback. There are always hundreds or thousands of applicants for our vacancies. In particular, what can be done to attract more women into the industry?
At Austrian, 20% of our maintenance apprentices are female. There’s a long way to go but that’s a huge improvement over just a few years ago. But this is not just about the industry. This is also a societal issue. Women need to be convinced these types of jobs are good careers for them. More needs to be done to help females pursue a technical career. We do also need to encourage women to take up senior management roles. Many senior managers in aviation do have technical backgrounds so that is part of the reason for the lack of women. But, again, more can be done. As with general recruitment, each airline needs to be seen as a leader in the local context as well as in the industry. I believe Austrian is that and that we represent an attractive proposition for any job seeker, male or female. airlines.iata.org
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AeroNexus Delivering Efficiency Through Connectivity • 9.5 hours to 90% of the modern world • Maximize payload (fly more cargo in lieu of more fuel) • Unique, flexible air cargo transfer rights • 40+ airlines serving 40+ destinations worldwide • World’s 6th busiest cargo airport • Fast, efficient hydrant fueling • Full service any aircraft, anytime • Open 24/7, no curfews or closures
www.AnchorageAirport.com IATA.Feb18.040.indd 40
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Cargo
The cargo facility of the future 38
Air cargo facilities must change if they are to efficiently handle new types of products and ever-increasing volumes WORDS: GRAHAM NEWTON
he air cargo business is undergoing seismic shifts. International trade is set to double in the next 20 years. Letters are becoming rarer, parcels more numerous. E-cargo efforts, including the e-air waybill, are part of the qualitative modifications required to meet the new dynamics. But the handling, storage and distribution of goods transported by air must be redefined too. Business models, architectural and process designs, technologies, and workforce skillsets must all change. airlines.iata.org
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Cargo
Cargo facilities will contribute to aviation’s overall environmental impact reduction targets, such as carbon-neutral growth by 2020 and halving net emissions by 2050 based on 2005 levels
2020
9% On average, cargo generates 9% of airline revenues in combined operations
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Typically, the throughput of an air cargo facility is 10 tonnes per square meter, which, as FTKs rose in the 1990s, led to larger and larger facilities. But height and space limitations in airport environments means the pros and cons of facility expansion, the distance from the belly space aircraft gates and premium property locations have to be balanced. The goal is to move to a cargo facility of the future, where man and machine work in harmony to offer both greater productivity and superior customer service. Fully automated high-rack warehouses, automated and green vehicles navigating autonomously through the facility, and employees equipped with artificial intelligence (AI) and augmented reality (AR) tools will empower air cargo to deal with the new dynamics. “It is both important and urgent for the industry to transition to the modern age of supply chain technologies and systems if it wants to remain relevant in a world driven by data, information and microsecond decisions being made via artificial intelligence,” says Tim Strauss, Vice President, Cargo, Air Canada. “This is the clear path to the next generation of efficiencies and differentiation between providers of air cargo services. It is very likely that the shippers will eliminate airlines and handlers who are unable to work in this new era
of distribution/information and most certainly will be side-lined in the e-commerce, pharmaceutical and perishables market place.”
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Fit for purpose
“The cargo facility of the future must be safe and secure, green, automated, connected, and smart,” says Brendan Sullivan, IATA’s Head, Cargo Operations. “This will ensure it is fit for purpose in size, location and for the people who use it.” Safety and security need to start upstream. That way, onsite screening can be designed to be integrated into the supply process so that no additional steps or touchpoints are required. Molecular screening is likely to dominate. Not only can it screen all commodities, including lithium batteries, live animals, and pharmaceuticals, but also it will allow product identification and safety checks in a fast and lean process. Prohibited materials such as illegal ivory can quickly be recognized, for example. Environmental responsibility will be equally important. Designed correctly, cargo facilities will contribute to aviation’s overall environmental impact reduction targets, such as carbon-neutral growth by 2020 and halving net emissions by 2050 based on 2005 levels. “Emissions can be reduced by the use of zero or low-emission technologies, such as solar panels,” says Sullivan. “New facilities can also 2018 – 01 Airlines.
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Cargo
introduce other efficiencies, such as optimized water and land use. Where possible, potable (drinking) water use will be replaced with water from other sources, including rain water from roofs and tarmac, treated waste water and recycled cooling water. Land use will benefit from a reduced horizontal footprint as facilities will maximize the use of space.” Moreover, says Sullivan, green facilities will protect their owners from energy price increases as well as carbon-emission taxes, resulting in overall cost reductions. Robotic systems
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A key part of the environmental improvements will be automation. Generally speaking, more machines means less process waste. But automation will have the greatest impact on productivity. Autonomous materialhandling equipment will weigh and move the cargo to the next location, machines will sort it automatically and manage inventory while the build-up and break-down of cargo will be performed by robotic systems. “Robots will be especially important in improving safety, such as dealing with toxic spillage and handling over-sized or extremely fragile cargo,” says Sullivan. “And automated storage and retrieval devices mean racks can be closer together and free up time for personnel to continue those tasks that still need to be performed by humans.” Robots have the added advantage of being able to monitor and communicate instantly and comprehensively. Sensors will be able to capture handling information as well as display the required electronic documentation. In short, Sullivan exclaims, “cargo will be interactive!” This is especially crucial given that 80% of operations are outsourced to third-party ground handlers. The constant flow of accurate information is essential to improved efficiency. “It creates real time visibility,” says Sullivan. There is operational visibility on how the facility and personnel are performing, which can be used to drive improvement. And there is Airlines. 2018 – 01
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Calls to action IATA is calling for the air cargo industry to: Embrace industry standards and handling best practices Accelerate the implementation of digital technologies Collaborate with partners to re-design the flows of goods and data Listen to customers and understand their needs Re-think business models to absorb growth coming from e-commerce, pharmaceutical and perishable markets Prepare the workforce for the future Be flexible!
70% The world’s freighter fleet will grow 70% in the next 20 years, from 1,770 aircraft to more than 3,000
customer visibility to understand and predict what the customer needs.” Such added benefits as better predictability of maintenance needs and the improvement of employees’ health and safety will result in overall cost reductions. Cognitive learning could also be used to train a combined AI and AR system to recognize more complex scenarios or operations. An understanding of special loads, for example, could suggest the best approach for staff, with instructions, tests, and approved tolerances immediately pinpointed on an image of the cargo. This translates into business flexibility. The cargo facility of the future will continue to be at the mercy of the cargo industry and process whatever is being transported by air at those times. The facility therefore needs to be adaptable to the shifts in, for example, package size, technology, and customer interfaces without the need for a complete overhaul. “Ultimately, this is all about the customer,” Sullivan informs. “The cargo facility of the future will mean customers will be more engaged, receive greater transparency on the services offered, benefit from complete traceability and can interact in real-time when necessary. Through the cargo facility of the future, air cargo will be able to increase customers’ overall satisfaction.” “For many customers and shippers, the information about goods in the transportation cycle is equally as critical as the physical goods themselves,” agrees Air Canada’s Strauss. “They are making next-level plant and supply chain decisions based on this data. Operating a modern information-driven facility will allow the shipper to plan with confidence and eliminate or lower many of the downstream expenses caused by poor or incomplete data, extended truck dwell times, and massive amounts of communication efforts spent in the recovery mode. Satisfaction with the airlines that move in this direction will take a rocket-like trajectory.” airlines.iata.org
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Airports
NEXTT steps in travel vision Coping with the increased demand for air travel necessitates the rapid development of new processes and new technologies WORDS: GRAHAM NEWTON
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assenger numbers are predicted to exceed 7 billion by 2035. In the same period, the cargo freighter fleet will grow 70% to more than 3,000 aircraft. “We not only need to serve increasing volumes, but these passengers and cargo customers are, rightly, becoming increasingly impatient and have more demanding expectations of the level of service they should receive,” explains Hemant Mistry, IATA’s Director, Global Airport Development and Fuel. Meeting these twin requirements will be incredibly difficult to achieve. IATA estimates that most of the 100 biggest airports by passenger volume need major infrastructure development in the next decade to keep pace with projected growth. Given the timelines for these projects and the relative scarcity of funding, it is unlikely that airports will expand as required within the timeframe. The solution, Mistry suggests, is to look to new technologies and processes and consider the airport in the context of an end-to-end journey. This is a complete reversal of the traditional method of shoehorning systems and processes into buildings, inevitably leading to the inefficient use of the airport and the technology.
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Evolving program
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The New Experience Travel Technologies (NEXTT) program—a collaboration between IATA and Airports Council International—is an evolution of IATA’s Airport of the Future concept. NEXTT is developing a common vision to enhance the travel experience for passengers and shippers that will guide industry investments and help governments evolve a relevant, smarter regulatory framework. NEXTT is provisionally planned as a threeyear program, during which time siloed and fragmented programs of work will be integrated. “This process will also identify the gaps and missing links between current initiatives,” says Anne Carnall, IATA’s Program Manager, Future Airports. “NEXTT shall validate other technologies and concepts, including a common approach for operational data platforms, to fill the gaps and interlinks.” Success, therefore, will be defined by the provision of a forward-looking aligned approach for investment in on-ground infrastructure that promotes operational improvements and capacity growth. “Ultimately, we want to ensure those who wish and need to fly can do so and aren’t prevented by inappropriate or insufficient infrastructure at airports and on the ground,” says Carnall. A number of key airports are already supporting NEXTT, including Dubai, London Heathrow, Bangalore, Amsterdam Schiphol, and Shenzhen. At Shenzhen, for example, robots are supplying passenger information, even in English. There is an airline element to all the concepts. British Airways, KLM and Emirates are among those partnering with the airports. At Heathrow, British Airways is working with the airport on driverless tugs. Technology providers, innovators, and consultants are also expected to join the cause, as are governments. The latter will benefit from IATA’s development of the necessary standards and regulatory approvals as trials progress. “What we are doing is not just looking at the transformation of airports, we are looking at the Airlines. 2018 – 01
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Data is the key A common data platform is vital to the success of NEXTT. Predictive modeling, artificial intelligence, and open application program interfaces are the cornerstones of handling passenger growth efficiently. Pulling everything together in a data backbone that can be accessed by authorized parties provides situational awareness and allows real-time decisions that ensure service quality and greater capacity. With various initiatives underway, the need to demonstrate industry-level solutions and determine standardization needs is already here.
IATA estimates that most of the 100 biggest airports by passenger volume need major infrastructure development in the next decade
transformation of the complete ground journey for all the elements that currently move through the airport—the passenger, the baggage cargo and the aircraft,” says Mistry. “Not everything will be appropriate to every airport. Decisions will need to be made by airports based on their local circumstances and complexity.” This complete journey from home to final destination and back home again, or from cargo dispatcher to end recipient, has three focus areas: Off-airport activities Advanced processing Interactive decision-making A key element in enabling ground facilities to cope with huge increases in passenger numbers is moving as many processes as possible off-airport. There are virtual and physical components to this strategy. Digital processes will dominate as long as governments and authorities embrace the need to move travel authorizations and customs controls to a digital environment, from the time of booking through to arrivals. Airlines and airports also have a role to play in improving data exchanges and minimizing the need for physical document checks. “An optional pre-clearance approach will be reassuring for customers and enables a risk-based assessment of the physical checks required,” Mistry notes. “It’s great to see several governments, including the US, UK and Australian, actively exploring how to facilitate these changes.” On the physical infrastructure side, all ground transport modes need to conveniently connect airports to the cities they serve. Though this is already happening to a degree, ubiquity would allow numerous, secure drop-off locations for cargo and baggage. Passengers could even commence their journey from these secure entry gates within the city, bypassing the need for processes within the terminal building. Linking the airport, in other words, is the first step toward distributing the airport. “Off-airport processes—moving check-in airlines.iata.org
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upstream, for example—is a practical solution,” says Michael Ibbitson, CIO, Dubai Airports. “If you create a virtual airport it means that an airport can cover the entire city. Capacity is added without the need for a physically bigger airport. Passengers can be kept sterile as soon as they enter the system, but it does need an efficient transport infrastructure to be available.” The airport won’t change dramatically even if such a vision comes to pass. An airfield will always be necessary for the aircraft. “The airport retail model will change,” suggests Ibbitson. “Perhaps that change is already underway. People now buy from Amazon. And all goods are available wherever you are in the world. Why carry something when you can get it delivered?” Ibbitson believes food and beverage options will continue to grow, however, with special “grab and go” services starting to emerge. A passenger’s favorite meal might be prepared by her favorite restaurant and picked up at the airport. Identity management
While new technology can optimize legacy processes, advanced processing requires rethinking what actions are needed or desired. Repeated identity verification is a case in point. Establishing identity at the first touchpoint should be efficient and friction-free. IATA’s One ID project is at the heart of this, capturing identity data and then using robust identity management systems to authenticate the data at subsequent touchpoints. Ibbitson points out that the wheel does not need to be reinvented or invented simultaneously in two places. He has spent time with Apple to understand where its devices are heading. “Why invest in lots of biometrics when many passengers already have their biometrics on their Apple Watch, for example?” he asks. Integrating these new technologies into the airport environment might inspire some truly radical solutions. But Ibbitson insists it must be an integrated vision: “There is no point in speeding up immigration just to make the passenger’s wait for baggage that much longer.” airlines.iata.org
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Ibbitson questions whether passengers need to wait for their bag at all. Or even drop them off for that matter. “Dubai Airports handles 47,000 bags in five hours during peak operations,” he reveals. “We could spread that out and not have the stress of a peak period, which is when mistakes happen. People often pack the night before, so the bag could be picked up early. And on arrival, passengers could go home or to their hotel and have the bag brought to them.” Interactive decision-making, meanwhile, is taking huge strides forward thanks to predictive modeling and artificial intelligence that crunch real-time data far swifter than any human. Being aware of changes to a passenger’s journey or their baggage or the status of a cargo shipment will enable airport, airline, ground handler and all other stakeholders to optimize the decision-making process across the whole network. Consistent definitions and a workable interface for information-sharing are vital. As it stands, a passenger could turn to several touchpoints—staff, website, app, customer information desk—for a flight update and get several different answers. All touchpoints need to have the same information. Deploying more sophisticated real-time decision-making tools will facilitate greater choice and flexibility for customers, drive increased process efficiency and trigger compliance, security or other checks on the basis of need rather than a default. “We do not think the current concept of airport design and build will be able to best serve the future expectations of our passenger and cargo customers,” IATA’s Mistry concludes. “And we are concerned that the pace of build will only lead to more slot-constrained airports. We will be at risk of not being able to cater for the projected growth in passengers and cargo. “As we see the progress and success of airport trials, understand the business decisions they make, and as other technologies become available, we shall adjust our vision,” he adds. “These ideas and the customer experience will continue to evolve.”
, 47 000
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“Dubai Airports handles 47,000 bags in five hours during peak operations. We could spread that out and not have peak period stress —which is when mistakes happen” 2018 – 01 Airlines.
23/03/2018 10:37
Human Trafficking
Keeping your eyes open IATA is campaigning to help airlines play a role in ending human trafficking WORDS: GRAHAM NEWTON
44 uman trafficking is a major challenge for every government. Only 15% of countries have more than 50 convictions for the offence per year. And yet a conservative estimate by the International Labor Organization suggests at least 25 million people are trafficked annually, the equivalent of the population of Australia. That means every minute 50 people, mainly women and children, become victims of human trafficking. This multibillion-dollar criminal enterprise is one of the fastest growing in the world, according to the US State Department.
H
Joining the fight
25m
The issue took to the stage at the 73rd IATA Annual General Meeting in 2017. Two senior executives—from the United Nations Office on Drugs and Crime (UNODC) and broadcaster CNN—gave keynote addresses on human trafficking, noting their respective Blue Heart and Freedom Project initiatives. They urged more airlines to join in the fight against this crime. IATA is in the process of determining a response at the industry level. “We are working
a conservative estimate by the International Labor Organization suggests at least 25 million people are trafficked annually, the equivalent of the population of Australia.
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with the support of our members to launch an initiative that will enable the airline industry to help governments and law enforcement in tackling this problem,” says Tim Colehan, Assistant Director, External Affairs. There are three main strands to IATA’s work. Most importantly, it will be launching a general awareness #Eyesopen campaign aimed at airlines, their staff, and the traveling public. There will also be guidance materials and best practice documentation so airlines can develop their own policy and initiatives on trafficking. And finally, IATA will produce “recognize the signs” training materials that airlines can include within existing customer-facing staff training. IATA will share best practice and will look to partner with the Airports Council International (ACI), the Air Transport Action Group (ATAG), UNODC, and other stakeholders on many of these initiatives.
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Natural interest
The principal remains that governments and law enforcement agencies have the responsibility to identify, apprehend, and prosecute those involved in trafficking. But airlines are keen to help stop a crime that can happen in plain sight. “Airline staff are in a unique position to support in identifying potential human trafficking situations,” says Robert Land, JetBlue’s Senior Vice President, Government Affairs and Associate General Counsel. “As an industry, we see it as the right thing to do to go above and beyond in these humanitarian efforts. The intelligence that airline employees, properly trained, can provide governmental and law enforcement agencies that investigate these matters can make a real difference in identifying individuals responsible for human trafficking crimes. We hope the industry’s efforts can help save many women, men, and children that fall prey to traffickers around the globe.” Beyond the moral imperative, airlines have a natural interest in helping governments to tackle human trafficking, according to Colehan. “Firstly, there is increasing awareness that 2018 – 01 Airlines.
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Human Trafficking
How to spot a potential victim Crews’ observation skills and professional experience support any specific trafficking training in the decision whether to report a suspected case. There are some tell-tale signs of which to be aware.
Potential victims of human trafficking may:
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be afraid of uniformed security not have control of their travel documents be unsure of their destination appear frightened or nervous follow clearly scripted stories have inappropriate clothing look young but claim to be an adult defer any questions addressed to them to the trafficker.
“Flight Attendants have to be vigilant in the aircraft cabin and we have a heightened sense of situational awareness.”
human trafficking is used by terrorist groups to fund their activities, which are often focused on international civil aviation,” he says. “Secondly, airlines are having to comply with laws relating to anti-trafficking legislation. In the UK, there is the Modern Slavery Act 2015 that requires organizations to publish an annual statement detailing the steps they are taking to ensuring their operations and those of their supply chain are trafficking free. Anti-trafficking initiatives assist in the compliance.” Thirdly, says Colehan, consumers and investors are increasingly buying from and investing in companies that can demonstrate good corporate citizenship. “Airlines need to collaborate and work closely with the relevant government ministries, as well as non-governmental organizations, to conduct trainings and joint investigations, as well as share intelligence,” says Malaysia Airlines in a statement. “As an airline with an expansive network, Malaysia Airlines has taken an active stance against human trafficking. Some of our initiatives have included awareness training for our frontline staff to be on the lookout and to detect any suspicious activities. Malaysia Airlines recently held a three-day exhibition at Kuala Lumpur International Airport aimed at educating the public on human and wildlife trafficking issues. We are also the first airline in Malaysia to work closely with the AntiTrafficking in Persons and Anti-Smuggling of Migrants Council, under the Ministry of Home Affairs, in combating human trafficking.” Crew training
Cabin crew training will be vital to airlines’ anti-trafficking endeavors. In the US, the Customs and Border Protection, Department of Transportation, and Department of Homeland Security run a campaign known as Blue Lightning. This involves training airline crew to identify the signs of trafficking and report the offenders. “This training simply give us the tools to recognize a different type
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of threat to the safety of flight and enable us to enhance the work we already perform,” says Debora Sutor, Vice President of the Association of Flight Attendants-CWA. “Flight Attendants have to be vigilant in the aircraft cabin—we have a heightened sense of situational awareness.” JetBlue helped launch the Blue Lightning initiative and has mandatory human trafficking training for its pilots and inflight crew members, as well as its airport operations staff. “When one of our crew members observes behaviors that might be symptomatic of human trafficking they follow a protocol that JetBlue has instituted to report the information,” Land explains. “Any suspected human trafficking situation is documented internally and reported to appropriate law enforcement authorities for follow up. Over the past few years there have been a number of suspected incidents reported and we are aware of one law enforcement referral that resulted in an ongoing investigation.” Elsewhere, many airlines have also seized the initiative and are providing training as part of sustainability or corporate social responsibility programs. IATA’s role is to ensure standardization so that all member airlines, irrespective of size, are aware of the issue and have the tools and resources they need. Anonymity when reporting the crime may be particularly pertinent as the trans-national gangs involved can be extremely dangerous. There is value in flagging up the problem after disembarkation too. Authorities can still catch at the offender at the airport or investigate and possibly uncover the trafficking chain. “No country is immune to this crime,” Colehan concludes. “Human trafficking is a trans-national crime that needs a trans-national response. IATA is best placed to coordinate that from the airline point of view. The buy-in of airline CEOs would highlight this serious problem and allow them to get ahead of the curve. There could be lots of regulation coming, so airlines need to get ahead and self-regulate.” airlines.iata.org
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See the future from here. Keeping passengers connected and comfortable A great flight experience starts when people are connected and comfortable. That’s why we’re helping airlines keep passengers connected throughout their journeys, simply and seamlessly, via global broadband connectivity and future-focused IFE systems. And our world-class interior solutions – including cabin seating, lighting, oxygen systems, galleys, inserts and lavatories – blend comfort and award-winning innovation to enhance every passenger’s experience. At Rockwell Collins, we are transforming the future passenger experience – every day.
Visit us at AIX: hall B5, stand 5B30 and hall B4, stand 4C30. rockwellcollins.com/see-the-future © 2018 Rockwell Collins. All rights reserved.
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Training
Training the next generation The Director, IATA Training and Consulting, explains the need for innovative training techniques that appeal to the next generation of students WORDS: GUY BRAZEAU
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viation has had a positive few years and the outlook is good. In 2018, profits are forecast to top $38 billion off the back of $824 billion in revenues. By 2035, more than 7 billion travelers are expected to use airline services. Amid the optimism, there is concern about who is going to man the vacancies being created, and how these personnel are going to be trained. Training providers in the aviation industry must cater to a demand whereby both the number of skilled personnel and the breadth of the skills they require continue to increase. This is no small challenge. Increasing the difficulty is the fact that the next generation of aviation professionals are millennials and Generation Z: those born after the turn of the century. This generation wants new ways of learning over and above the traditional classroom in which their teachers were trained. This desire must be met while ensuring that the knowledge transfer is not diluted, because of either the way students train or the medium used.
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Simulation
Training departments are looking for richer, more relevant experiences that leverage technology advances. Simulation exercises are
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PHOTOGRAPHY: ALAMY
Training
one way forward. These are already being included as part of IATA’s curriculum for specific courses to allow participants to experience the practical adaptation of their theoretical learning in a simulated real-life environment. Future managers in a variety of disciplines stand to benefit. To train airport strategic managers, IATA teamed up with Lockheed Martin to create traffic forecast scenarios, capacity scenarios, aviation and non-aviation revenues estimations, and cost scenarios. Cargo managers are being taught to make executive-level decisions using real cargo industry data (Cargo IS). And revenue management courses are being adapted so that participants gain hand-on experience in a competitive environment. IATA’s most recent introduction of simulation is in its duo of Revenue Management courses that are being rolled out. These courses include hands-on practice to validate the learning in the classroom with the new sophisticated IATA Revenue Management (RM) simulator tool. The unique RM simulator allows the participants to experience day-to-day management of their own airline in a competitive environment, using the full range of tactics and features of a complex revenue management system. Simulation is being taken one step further with virtual reality training. IATA’s RampVR is a virtual reality training tool for ground operations that has been incorporated into two courses—introducing a safe learning environment in an innovative format.
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Even bolder steps are being taken through gamification programs that bridge the generational gap. IATA has just launched the Airline Manager 2 app for all budding aviation professionals to hone their skills. Virtual classrooms
For those students who choose to learn online, technology-based blended learning is most often the option of choice. Virtual training is evolving with asynchronous activities that include self-study video lectures and e-learning quizzes, collaborative forums, and shared documentary resources. There are still real-time touchpoints, meaning best practice also includes live plenary sessions and scheduled team and individual contact points with the instructor. Overall, diversification and capitalizing on the most appropriate learning medium for the subject matter allow training providers to accommodate a range of adult learning styles. As aviation strives to sustainably connect and enrich the world, the complete replacement of face-to-face classroom training is improbable. There are benefits associated with interpersonal, face-to-face dialogue and networking that are difficult to replace with an entirely remote learning scenario. But ensuring training is relevant and appropriate is one of the most important things we can do for future generations. That is the best way to provide this generation of aviation professionals—as well as the next one—with quality, relevant and accessible training.
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Guy Brazeau, Director, IATA Training and Consulting:
“This generation wants new ways of learning over and above the traditional classroom in which their teachers were trained”
2018 – 01 Airlines.
23/03/2018 10:38
60 seconds with...
Andrew Madar CEO, Cobalt
“The best thing about working in aviation is the daily challenges” What are your hopes for the airline in 2018?
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An ever-increasing flow of passengers, a target we are achieving through an effective commercial and marketing program. In 2018, we also expect to increase the number of destinations and capture the necessary market share to drive profit. What is your airline’s unique selling point?
There is no unique point but a unique combination of factors, ranging from the experience of our pilots to the warm smile of our cabin attendants. Our business model also proves that an airline can offer products and services equivalent to legacy carriers while maintaining a lower cost of operations through efficient cost control by our highly qualified personnel. What are the biggest challenges facing the global industry?
The fuel price uncertainty is one of our major concerns. The volatility of the price—driven by geopolitical and other problems—makes operation planning very difficult. Revenues keep getting lower but efficient cost control can increase the profit margins. Stiff competition from ultra-low-cost carriers is also putting pressure on the airlines to materialize their revenue targets. Finally, although global GDP is rising, breakeven load factors continue to be pushed up as a result increasing industry costs. Does an airline CEO need aviation experience?
An airline CEO must have vast aviation experience as well as business managerial skills. In particular, he or she must have specialist knowledge of flight operations, training, and engineering practices. The level of involvement in these areas varies of course, but since in most cases the CEO is also the Airlines. 2018 – 01
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In brief… Cobalt Cobalt is a next-generation carrier, combining a low-cost set-up with the flexibility to deliver a full-service business class Operating out of Cyprus, it flies to 20 destinations across 12 countries It aims to bring the world to Cyprus, developing the country as a hub to connect Asia, Middle East, Africa and Europe
20 12
destinations across
countries
accountable manager, their qualifications must include at least a degree in an aviation subject. Airline economics and commercial practices are other areas in which the CEO must possess good understanding since he or she is the one driving the overall strategy of the company. What’s the best and worst thing about working in aviation?
The best thing is the daily challenges and non-stop troubleshooting. Being part of one of the top industries, with issues from strict regulatory requirements to multimillion dollar fleet planning decisions, may seem overwhelming but the excitement is hard to beat. The worst part is the long hours! But the end results and the sense of accomplishment in this demanding job far outweigh the disadvantages. Window or aisle seat?
It doesn’t matter. Window or aisle, the great feeling of being airborne and cruising at high altitude in a state-of-the-art aircraft is always the same. airlines.iata.org
23/03/2018 10:38
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