Via Dubai Magazine | February 2017 by Nadd Al Shiba PR & Event Management

Monthly Newsletter issued by Dubai Civil Aviation Authority

Inside DCAA IBPC honours DG with Golden Friends of India Award

Raffle draws on Car Free Day

www.viadubaionline.com

Issue 45 February 2017

Ahmed Bin Saeed: UAE aviation sector’s importance growing in global map

DCAA lines up initiatives 7 during ‘Year of Giving’ Sports activities oganised 8 on National Sports Day Sand Storm Al Marmoom 9

UAE in Focus Dubai Airports 14 discusses 2017-2025 plan with its strategic partners Flydubai revenue rises to $1.37 billion

Emirates to deploy A380 to Sao Paulo

12 ATM’s vital role Jeff Poole,

Violeta Bulc

JetBlue curbs growth projection

Gulfstream sees significant pick-up 20

Opinions 30

Committed to enhancing customer happiness

A new chapter for aviation

Airlines 32

Maryam Bin Ali

Middle East freight volumes and demand rise

Cargo & Logistics 34

Technology 38

Our Smart Services DCAA Smart App will allow the customers the below services: • • • • • • • • • • • • •

Issuance of Landing permissions Issuance of No Objection Certificate for Carriage of Restricted Articles Issuance of No Objection Certificate for Aerial Work Issuance of No Objection Certificate for Aircraft Warning Light Issuance of No Objection Certificate for Heliport Issuance of No Objection Certificate for Pyrotechnic Display Issuance of No Objection Certificate for Building Height (Below 300m) Issuance of No Objection Certificate for Building Height (Above 300m) Issuance of Approval for Heliports Certification Issuance of Approval for Crane Operation Issuance of Approval for GSM or other communication tower Issuance of Approval for Balloon Operations Issuance of No Objection Certificate for Sky Trackers / Space Cannon

Registration Requirements: • • • • • • •

Company Name Company Address Telephone Number Fax Number PO Box City Choose one secret questions

• • • • • • •

Username Password Email Address Name Mobile Number Emirates ID Number Category (Individual - Airline - Agency - Expert - Provider)

You can download the application

by searching in App Store and Play Store by typing DCAA or scan the QR code

For more information, please call technical support on: +971 56 6810685 February 2017 2 email: it.support@dcaa.gov.ae

www.dcaa.gov.ae

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

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

Inside DCAA 06 Raffle draws on Car Free Day

General Supervision Mohammed Abdulla Ahli Coordinator Hanan Al Mazimi Creative Manager Mohammed Al Jarouf Editor Shveta Pathak

E-mail: viadubai@naddalshiba.com

Sports activities oganised on National Sports Day

Sand Storm Al Marmoom

Legal Disclaimer The views expressed in the articles are of the writers and not necessarily belong to DCAA. We take all reasonable steps to keep the information current and accurate, but errors can occur. The information is therefore provided as is, with no guarantee of accuracy, completeness or timeliness. The DCAA or Via Dubai does not warrant or assume any legal liability or responsibility for the quality, accuracy, completeness, legality, reliability or usefulness of any information. Via Dubai does not endorse or recommend any article, product, service or information mentioned in the newsletter. Any perceived slight of any person or organisation is completely unintentional.

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DCAA Interview

Editorial, Production, PR & Marketing Nadd AlShiba PR and Event Management

Committed to enhancing customer happiness Maryam Bin Ali

Printed by Printwell Dubai

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

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

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

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

http://www.facebook.com/DCAADubai

2017 twitter.com/DcaaDubai February youtube.com/user/dcaadubai

CONTENTS

Dubai Airports discusses 20172025 plan with its strategic partners 14

Cross-border e-commerce to grow to $900 billion through 2020

The ultimate cure for jet lag

A new chapter for aviation 30

Jeff Poole,

Gulfstream sees significant pick-up

February 2017

Violeta Bulc

ATMâ&#x20AC;&#x2122;s vital role

Message

from the President

Continuing success

he New Year continues to bring in good news on all fronts in Dubai. The economy is expected to grow by 3.1 per cent this year against 2.7 per cent last year. Our growth projections are based on the fact that sustainability and flexibility are the most notable characteristics of Dubai’s ongoing economic and social transformation envisioned by our leader His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. The growth vision and strategies adopted by our leadership have all focused on accelerated and sustainable growth which led us to faster integration of our economy into the global economy. One sector that has gained such sustainability is aviation, taking Dubai to the forefront of global aviation leaders. Our achievements are legion. Dubai Airport overtook London’s Heathrow as the world’s busiest international airport in 2014 and has since set our sights on overtaking Atlanta and Beijing as the world’s busiest by 2020. It’s only a matter of time when Dubai will be in the league of top aviation hubs in the world.

Ahmed bin Saeed Al Maktoum

But we should not be complacent with our achievements. Every effort has to be made to make the airport top class, appealing to one and all, to attract more airlines, services to be beefed up to customers’ liking, technology be applied to make it world class and ease of using. The future belongs to us, in whatever changes elsewhere in the world. Dubai has already adorned an undeniable top league. Let’s all work together to realise the vision of our leader, for Dubai to be on the top, and retain the title always. 

February 2017

Message

from the Director General

Sense of satisfaction

he good news is Dubai airports are poised to see further increase in passenger numbers this year and beyond, taking the total to 118 million by 2023. We have already achieved the status as the worldâ&#x20AC;&#x2122;s busiest airport for international passengers when 83.6 million passengers passed through Dubai and this year we will continue to remain at the top as we expect to receive 89 million passengers this year and we expect new airlines to use our airports, bringing in more people and cargo. We have a sense of satisfaction that we are progressing towards the goal of being among the top in the world as envisioned by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and achieved with the guidance of His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Dubai Airports, and Chief Executive and Chairman of Emirates Airline & Group, who has always remained a beacon of inspiration to us. The impressive increase in passenger traffic and other achievements raise our responsibility to take our services to the next level of excellence to pro-

February 2017

Mohammed Abdulla Ahli

vide a memorable experience to our passengers and efficient service to airlines and other stakeholders. As in the past, we are committed to adopt the latest technology aimed at offering a pleasant experience to our passengers. As we are moving into a new phase of growth, we are increasingly adopting new processes and technology to increase passenger movement and to add capacity. Going forward, itâ&#x20AC;&#x2122;s our commitment and promise. Further, I take this opportunity to thank the staff of DCAA, Dubai Airports and all strategic partners and stakeholders for their whole-hearted endeavour to earn these honours. I earnestly solicit your continued support and hard work to mark Dubai another memorable milestone in the aviation industry in 2017. ď&#x201A;&#x192;

Inside DCAA

IBPC honours DG with Golden Friends of India Award

is Excellency Mohammed Abdullah Ahli, Director General of DCAA, attended a ceremony held in celebration of India’s 68th Republic Day by the Indian Business and Professional Council (IBPC). During the ceremony, HE Mohammed Abdullah Ahli was awarded the ‘Golden Friends of India Award’ in recognition of his efforts to support and enhance economic and investment relations. His Excellency thanked the IBPC in Dubai, and commented: “We value the mutual efforts of the UAE and India aiming to achieve breakthroughs on the cultural, political, trade, and economic fronts, based on such longstanding strong relations between the two nations.”

Attended by representative of both the UAE and Indian governments, as well as a number of businessmen and other

personalities in the UAE, the ceremony saw the recognition of several UAE officials. 

February 2017

Inside DCAA

Raffle draws on Car Free Day

February 2017

Inside DCAA

DCAA lines up initiatives during ‘Year of Giving’

he Dubai Civil Aviation Authority (DCAA) has wholeheartedly welcomed the guidelines and the directives of the President, His Highness Shaikh Khalifa Bin Zayed Al Nahyan, to declare 2017 as ‘The Year of Giving’ and to follow up on UAE Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s directive to make the initiative successful.

ubai Civil Aviation Authority (DCAA) participated in the Car Free Day event organised by the Dubai Municipality, which was attended by Abdul Rahim Al Mulla, Executive Director of Corporate Support and Communications, and Ahmed Al Zarouni, Director of Public Relations. DCAA organised raffle draws for the employees participating in the Car Free Day, which is annually organized by Dubai Municipality, and the raffle draw included purchase of coupons from Dubai Duty Free. The raffle draws were attended by Abdul Rahim Al Mulla, Executive Director of Corporate Support and Communications, and Abdul Razzaq al-Hashimi, Director of Finance and Management Administration, as well as marketing and corporate communications departments and employees participating in the initiative. 

“Keeping in line with this initiative of their Highness’, the Corporate Marketing and Communication Office of DCAA will organise charitable initiatives during the year to embed the virtue of volunteerism, encourage volunteer opportunities, urge partnerships with different sectors to encourage anyone who wishes to make a positive impact on our country, coordinate and cooperate with charity organisations to execute joint initiatives;” said HE Mohammed Abdulla Ahli, Director General of DCAA. “It will be our earnest endeavour to ensure the success of the great gesture. We will contribute our might to strengthen social responsibility in the private sector, promote spirit of volunteerism and specialised voluntary programmes in all segments of society, and strengthen the concept of serving the nation in the new generations,” he added. The following are the initiatives lined up throughout the year: • Introduce gifts for the limited income people on special occasions (Ramadan/Eid); • Coordinate with the recycling companies to sell the unused equipments and materials and donate the amount in the charity initiatives; • Conduct lectures for DCAA staff and stakeholders, to spread the culture of benevolence; • Launch charity exhibitions at DCAA and donate the collected amount in charity initiatives; • Participate in charity progamme shows on the TV channels; and • Open the door of volunteerism and suggestions for DCAA staff to implement giving initiatives throughout the year via khair@dcaa.gov.ae. 

February 2017

Inside DCAA

Sports activities oganised on National Sports Day

ubai Civil Aviation Authority organised a variety of sports activities on the National Sports Day held at Al Nasser Club with the attendance of His Excellency Mohammed Abudlla Ahli, Director General, DCAA, as well as executive directors and employees of the authority.

February 2017

The activities included a football competition between DCAAâ&#x20AC;&#x2122;s departments and a basketball competition between the female employees. The Aviation Security and Incident Investigation Department won the

football competition and the Colored Team won against the Pink Team in the basketball competition. HE Mohammed Abudlla Ahli honoured the winning teams and raffles were held to reward the participants. ď&#x201A;&#x192;

Inside DCAA

Sand Storm Al Marmoom A

team from the Dubai Civil Aviation Authority (DCAA) participated in ‘Sand Storm Al Marmoom’, an obstacle race organised by Dubai Holding Group. The race was held in a field set across four terrains -- rock, sand, water and mud -- with obstacles that blend perfectly into a backdrop of sand dunes, lakes, greenery and wildlife right in the heart of Dubai’s desert landscape. 

February 2017

DCAA Interview

Maryam Bin Ali, Acting Manager, Customer Service, Finance Affairs and Administration Department, Dubai Civil Aviation Authority (DCAA)

Committed to enhancing customer happiness

n line with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the Dubai Civil Aviation Authority (DCAA) has been taking active initiatives toward ensuring satisfaction and happiness of its customers. In 2016, the Authority scored approximately 95 per cent on the Happiness Meter and continues to work toward increasing this level, Maryam Bin Ali, Acting Manager, Customer Service, told Via Dubai in an interview.

The Customer Service Centre was launched in May 2015 and I joined DCAA in June 2015.

The Authority has also launched special service for its customers above 60 years of age and for those with disabilities toward easy and smooth processing of transactions.

Being associated with building the centre from early on, I have been very closely involved in the growth of customer service centre, from creating and improving the procedures to using new technology for better customer service.

In addition, there is a plan for customer service staff to attended sign language training, in order to make DCAA a disabled-friendly organisation, said Maryam, as she shared her role in the DCAA and the initiatives toward enhancing customer happiness.

We have worked with different departments in the DCAA, whether it is IT, Strategy or Administration, in order to understand their requirements well and come out with methods and procedures which ensure that all their requirements related to customer service are taken care of.

Excerpts from the interview:

The Dubai Civil Aviation Authority (DCAA) is driven by the vision of Dubai becoming the global Aviation Capital, contributing to prosperity, and enabling growth for Dubai. Ensuring customer satisfaction and

Can you share with us your role and the contribution of the Customer Service Centre to the vision of the Dubai Civil

Aviation Authority?

February 2017

happiness is amongst the highest priorities with the Authority. We do this through various channels which include handling official emails, chat on website to answer customer queries, customer calls, attending to visitors and responding to those who contact us through the website. Our goal is to deal with the queries in the shortest possible time and most effective way. How do you ensure high rate of customer satisfaction and happiness? In line with the vision of our great leader His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the DCAA has introduced Happiness Meter and several other initiatives toward ensuring satisfaction and happiness of all the customers. In 2016, we scored near to 95 per cent on the Happiness Meter. Our goal is to increase this happiness level to 100 per cent. In order to achieve that,

DCAA Interview

we focus on areas where a customer has shown dissatisfaction. We try to understand their issue, take their feedback and take the necessary action so that the customer is satisfied. In addition, any suggestions and complaints we receive through any of our channels that customers communicate with us, we distribute them to the concerned departments for a proper action and also follow up. We do not ignore any category of our customers. Toward this, we have launched a special facility for our senior customers, above the age of 60 years, and those having disabilities. When they come to our office, they just need to call us and we will help them to complete their transactions while they sit and wait in the office or they can even wait in their car and the transaction will be completed by us. Are there any new initiatives launched to enhance customer experience? Customer service is a continuous process and there are many new

efforts we have taken to enhance customer experience. Recently, we observed that at times our customers had to queue up and wait for their transactions to be completed. To address that, we came up with an electronic queuing system wherein the customer is issued a token number through an SMS and he can wait in the customer service area which is fully equipped and they can have coffee, tea and water and read magazines. We have also launched a system where we integrate the Emirates ID of a customer with our Customer Relationship Management (CRM) system, which speed up the procedures. How does DCAA ensure that its customer service employees are updated on the latest procedures? The employees are trained well. The training is not only to ensure that the employees engaged in customer service understand the systems and the technology well, but also in all the areas where new initiatives are taken which could impact service to our customers. For instance, we are undergoing training in sign language, with which we will be able to cater to our customers with disabilities.

DCAA launched special facilities for customers above 60 years of age and sign language trainging for employees As an employee in Customer Service, how do you find the work culture in the DCAA? At the DCAA I got the opportunity to work in customer service very closely. The work culture is highly inspiring, new suggestions especially those related to technology area always welcomed. I feel very honoured to be part of the DCAA and to be in customer service, especially in Dubai where our great leader His Highness Sheikh Mohammed inspires us to give our best and ensure happiness of all. I am committed to give my best. ď&#x201A;&#x192;

February 2017

Cover Story

UAE aviation sector’s importance growing in global map: HH Sheikh Ahmed MRO business poised for further growth; Growth in the Middle East to reach 5.7% against 4.5% global average; more than 500 aircraft ordered by Emirates, Etihad Airways, Qatar Airways and other regional airlines; Orders in the Middle East to reach 3,300 aircraft worth $770 billion by 2035.

H Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Dubai Airports, and Chief Executive and Chairman of Emirates Airline & Group, opens MRO Exhibition. The importance of the UAE aviation sector is growing in the global map marked by tremendous growth in the past decade thanks to the geographic location and the enormous investments made by governments and the airlines in the region, said His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Dubai Airports, and Chief Executive

February 2017

and Chairman of Emirates Airline & Group, who opened the MRO Middle East and Aircraft Interiors Middle East (AIME) at the Dubai World Trade Centre (DWTC). Highlighting the impressive growth in the regional aviation sector in an exclusive comment in the exhibition bulletin, His Highness said there are more than 500 aircraft ordered by Emirates, Etihad Airways, Qatar Airways and other regional airlines, and 80 per cent of the orders are for wide-body aircraft. Boeing is expecting the number of orders in the Middle East to reach 3,300 aircraft by 2035, worth AED2.83 trillion ($770 billion).

“This means that the regional aviation sector will have higher growth than the global average. While the global aviation industry is expected to grow 4.5 per cent yearly in the next 20 years, the growth in the Middle East will reach 5.7 per cent, according to Airbus Index.” The UAE is emerging as the most important market for business aviation and private jets with the market outlook is positive as the high networth individuals and corporates are increasingly using private jets. The business aviation market in the Middle East is poised to grow further,

Cover Story

fuelled by strong demand in the UAE, which is the second-largest buyer of mid- to-large private jets. Along with the business aviation market, MRO (Maintenance, Repairs and Overhaul) business is poised for further growth. The two-day AIME attracted a record 300 exhibitors and 4,500 trade visitors. The exhibition has been growing on a global level, with good participation by more companies and trade visitors, indicating the growth of the MRO sector in the UAE and the wider region. Shaikh Ahmed visited the stalls and pavilions to see the latest technology solutions related to maintenance and repairs of aircraft and interior designs. He advised the exhibitors to seize the opportunity and build strategic alliances for sustainable growth. Fastest growing market The MENA region’s airline market is the fastest growing in the world and future aircraft orders are exceeding growth projections, in addition to significant spend on airport infrastructure in the region said Adel Ali, CEO of Air Arabia, in his keynote address at the

MRO Middle East Conference held concurrently with the AIME. He added that global business travel spending hit a record $1.5 trillion in 2016, and economic fundamentals for consumer spending are solid going into 2017. Addressing the Ten Year Market Forecast and Key Trends Leader Insight Panel, David Stewart, Partner at Oliver Wyman, said that the global airline industry is achieving record passenger volumes, record cargo volumes, and record net profits. The fleet will increase by nearly 9,900 aircraft by 2026, representing an average annual growth rate of 3.4 per cent, even amid weakening economic conditions and oil price uncertainty. “By the end of the forecast period, next generation aircraft will account for nearly all new deliveries and comprise over half of the global fleet. The increase in new technology will be the prevailing tailwind behind the changes in the global fleet and the airline industry over the next decade, he said.”

The co-located events brought together the region’s key players in aircraft interiors and maintenance, repair and overhaul in addition to representatives from over 100 airlines. The attendees were able to network and conduct business with the right people in the market from the region and beyond. “Attendee numbers for the show have surpassed our expectations,” said Michele van Akelijen, Managing Director of show organisers F&E Aerospace. “The feedback that we have had from exhibitors is that they are seeing an increase in the amount of contacts that they are making too, and doing a larger amount of business.” FedEx Express, a subsidiary of FedEx Corp., and the world’s largest express transportation company, led a discussion on best practices in shipping oversized cargo at MRO Middle East. FedEx sponsored a panel entitled ‘Engines, Wings or Fuel Tanks… Best Practices in Moving Large, Oversized Shipments’, hosted by Chris Swearingen, Manager of Marketing for SenseAware of FedEx Services, and addressed the challenges of delivering oversized shipments. 

February 2017

UAE in Focus

Dubai Airports expects 143 million passengers in 2020

Dubai Airports discusses 2017-2025 plan with its strategic partners

ubai Airports is expecting to carry 143 million passengers through Dubai International and Al Maktoum International Airport in 2020, the company has confirmed.

The company’s 2017-2025 strategic plan is targeting an AED195 billion ($53 billion) share of the aviation sector, equivalent to 37.5 per cent of Dubai’s GDP by 2020.

vice and satisfying customers in compliance with the UAE government’s directives, said Majed Al Joker, Senior Vice President of Dubai Airports for Corporate Assurance and Governance.

Around 745,000 jobs are expected to be provided by the sector by 2020.

Brig. Talal Al Shanqiti, Assistant to the Director General for Air and Land Ports Affairs, Directorate General of Residency and Foreigners Affairs, said Dubai received 55 million passengers last year, not including transit passengers – a 7 per cent increase on 2015.

Strategic partners are on top of Dubai Airports priorities regarding its strategic plan 2017-2025 to achieve their aspirations of making Dubai International Airport an international model in ser-

February 2017

Dubai International alone carried a total of 83.6 million passengers in 2016, up 7.2 per cent on the year before. Al Joker praised the role of the Airport Security Department, General Directorate of Residency and Foreigners Affairs in Dubai and Dubai Customs, noting that the co-ordination and co-operation among them are the secrets behind the success of Dubai Airports, especially with an expected passenger increase from 89 million

UAE in Focus

Majed Al Joker

Talal Al Shanqiti

during the current year to 143 million passengers at Dubai International Airport and Al Maktoum International Airport in 2020.

ing the efficiency of procedures at ports and checkpoints to ensure passenger comfort.

The remarks were made during the regular meeting with representatives of strategic partners to discuss the strategic plan 2017-2025 to improve the joint co-operation and promote the security procedures by adopting more advanced techniques, smart security and increas-

According to forecasts for the Dubai Airports’ strategic plan 2017-2025, targeted share of the aviation sector will increase Dh195 billion, equivalent to 37.5 percent of Dubai’s GDP, which will provide around 745,000 jobs by 2020. The UAE is among the leading countries in the world in implementing the aviation security standards. It was given a 99.5 percent assessment rating by the International Civil Aviation Organisation (ICAO). The aviation industry, in the UAE in general and Dubai specifically, had two great achievements in 2016 in light of the unprecedented classification from an international organisation, as well as professional dealing of Emirates Airlines accidents. Brig. Talal Al Shanqiti praised the level of professional co-ordination among government agencies that operate in Dubai. Over the past year, Dubai Airports received more than 55 million passengers, not including transit passen-

Khalid Ahmed Yousef

The airports operator targets 53$bn share of the aviation sector in Dubai’s GDP in 2020 gers- the growth of more than 7 per cent compared to 2015, he said. One of its best achievements was to implement the use of an Emirates ID card that ended manual entry and exit procedures at the airport. The number of ID card users exceeded 600,000, he added. Khalid Ahmed Yousef, Director of Passenger Operations Department at Dubai International Airport Terminal 1, said: “Teamwork is the feature of the Dubai International Airport.Everyone is having one goal to realise the vision of our government to put our nation on the world stage and provide better services to our customers, and make them happy”.

February 2017

UAE in Focus

Flydubai revenue rises to $1.37 billion

hese results see flydubai report its fifth consecutive full-year of profitability: His Highness Sheikh Ahmed Bin Saeed Al Maktoum, chairman of flydubai.

Flydubai announced its full-year results for 2016 reporting a profit of AED31.6 million ($8.6 million). It has reported total revenue of AED5 billion ($1.37 billion), an increase of 2.4 per cent compared to the same period last year. The stronger second half, driven by increased passenger numbers, was impacted by downward pressure on yield leading to lower overall revenue growth reflecting a continuation of the same adverse factors reported in the first half. His Highness Sheikh Ahmed Bin Saeed Al Maktoum, chairman of flydubai, said: “These results see flydubai report its fifth consecutive full-year of profitability. In 2012, our third year of operation, we carried 5.1 million passengers. This year, we have carried 10.4 million passengers demonstrating that flydubai continues to help change the way both business and leisure passengers travel around the region. An established tourism destination and global center for business together with the UAE’s geographic location has supported the need for increased connectivity.” Ghaith Al Ghaith, chief executive officer (CEO) of flydubai, reviewing the annual results for 2016, commented: “Over the last two years we have seen passenger traffic grow cumulatively by 52 per cent in terms of RPKM. We continue to demonstrate that we gain loyal customers across our network who recognize the benefits of direct air links and enjoy our

February 2017

onboard offering. The continuation of mainly lower fuel prices and ongoing cost management efforts are reflected in the 16 per cent improvement in terms of ASKM over the last two years. We have however seen a difficult pricing and operating environment.” EBITDAR was healthy at 21.1 per cent of revenue; an improvement from the previous year’s figure of 20.5 per cent. The closing cash and cash equivalents position, including pre-delivery payments for future aircraft deliveries, remained strong at AED 2.3 billion. Fuel costs were 25 per cent of operating costs compared to 30.6 per cent in the previous year, against a backdrop of lower fuel prices for the year, with legacy fuel hedges impacting only 21 per cent of the volume for full year 2016.

Ancillary revenue comprising baggage, cargo and inflight sales contributed 13.8 per cent of revenue; dropping from 15.1 per cent from the previous year.

Operational performance

Aircraft deliveries: 8 Next-Generation Boeing 737-800 aircraft joined the fleet in 2016 in support of network expansion. The average age of the fleet was 3 years 8.5 months. Business Class: The growth in the number of flydubai’s business class passengers continued and saw the airline carry 2.4 times the number of passengers as in 2014. The Subcontinent saw the strongest demand for business class carrying more than double the number of passengers. This was followed by the Caucasus which grew by 88 per cent, as a result of a liberalization of the visa rules, creating an increased demand from both inbound and outbound traffic flows. 

UAE in Focus

Passenger traffic at Al Maktoum airport up 84.5%

assenger traffic at Dubai’s Al Maktoum International Airport surged 84.5 per cent in 2016, the state news agency of the UAE has reported.

The airport welcomed 850,633 passengers last year, up from 461,063 passengers in 2015, WAM reported, quoting the airport’s operator, Dubai Airports. Al Maktoum International Airport is Dubai’s second international hub. “After having emerged as one of the top 20 international cargo hubs, DWC is now growing steadily in stature as a passenger hub, and we are pleased with the growth in passenger traffic in 2016,” said Dubai Airports CEO Paul Griffiths.

The airport opened for cargo traffic in June 2010 and for passenger traffic in October 2013. Passenger traffic growth at DWC is mainly driven by the carrier flydubai, which operates on average 41 weekly flights to five destinations from DWC, in addition to its operations at Dubai International’s Terminal 2. Air freight volumes at the airport slightly increased in 2016 to 897,998 tonnes, up 0.8 percent compared with 890,912 tonnes in 2015.

Dubai Airports said that DXB recorded has an annual traffic of 83.6 million passengers in 2016, up 7.2 per cent year-on-year, solidifying its position as the world’s busiest civil aviation hub. The Dubai government is allocating a total of $35 billion for the expansion of Al Maktoum International Airport. Once completed, Al Maktoum aims to become the world’s biggest civil aviation hub, with a capacity of handling 143 million passengers annually by 2025. 

February 2017

UAE in Focus

Emirates to deploy A380 to Sao Paulo

mirates, voted the World’s Best Airline in the 2016 Skytrax World Airline Awards, will operate the first ever scheduled commercial Airbus A380 flight to South America when it upgrades its Dubai (DXB) - Sao Paulo (GRU) service on March 26, 2017.

Replacing the existing Boeing 777300ER used on this route, the A380 service will mark the airline’s 10th year of operations in Brazil, which it began with daily flights between Dubai and Sao Paulo in October 2007. Emirates had already made history becoming the first airline to connect the Middle East and South America with a non-stop direct flight service. In 2012, Emirates expanded its presence in Brazil with the start of a daily service between Dubai and Rio de Janeiro. “The Emirates A380 is an iconic aircraft that continues to excite our customers and set the benchmark for travel comfort in commercial flying. We look forward to offering the award-winning Emirates A380 experience to our customers and to continue contributing to the economic success of Brazil,” said Hubert Frach, Emirates Divisional Senior Vice President, Commercial Operations, West. “We made significant investments to upgrade the facilities at GRU Airport - São Paulo International Airport in order to make it A380-compatible. We are very excited about Emirates’ decision to deploy the first A380 in South America to our airport”, said Gustavo Figueiredo, GRU Airport CEO.

February 2017

Sao Paulo will join more than 40 destinations on Emirates’ global network served by its highly popular A380 aircraft, including Tokyo Narita, Bangkok, Hong Kong, Beijing, Taipei, Seoul, Shanghai, and Guangzhou. Emirates SkyCargo, the freight division of Emirates, facilitates trade between Brazil and its global trade partners. In addition to the cargo capacity offered on the A380 to Sao Paulo, Emirates SkyCargo also operates a freighter twice a week from Viracopos carrying Brazilian exports to other global destinations. From March 26, EK261 will become an A380 flight, leaving Dubai (DXB) every day at 08:35 and arriving in Sao Paulo (GRU) at 16:30.

The return flight, EK262, departs Sao Paulo (GRU) at 01:25 and lands in Dubai (DXB) at 22:55. Recently in October 2016, Emirates announced a codeshare and frequent flyer programme partnership with GOL Linhas Aéreas Inteligentes S.A (“GOL”) allowing customers to purchase connecting flights on both airlines using one reservation, and a seamless ticketing, checkin, boarding and baggage check experience during the entire journey. Emirates is the world’s largest operator of A380s, with 92 currently in its fleet and a further 50 on order. Since 2008, the airline has carried over 65 million passengers on its flagship aircraft. 

UAE in Focus

Etihad, Lufthansa in commercial partnership

tihad Aviation Group and Lufthansa German Airlines, part of Europe’s largest aviation group, have entered into a new commercial partnership.

The two airline groups have concluded a $100 million global catering agreement and a Memorandum of Understanding (MoU) to cooperate in aircraft maintenance, repair and overhaul.

a much wider strategic collaboration between our two organisations. It demonstrates the commitment of the Etihad Aviation Group Board and Abu Dhabi to our European growth strategy.”

catering services to Etihad Airways in 16 cities in Europe, Asia and the Americas. This makes LSG the largest provider of catering services to the UAE’s national airline, outside its Abu Dhabi home base.

James Hogan, Etihad Aviation Group President and Chief Executive Officer, said: “Partnerships are at the heart of our strategy and remain fundamental for us to compete effectively and efficiently in a complex and competitive global market.

Carsten Spohr, Lufthansa Group Chairman and Chief Executive Officer, said: “We welcome the opportunity to strengthen our cooperation with the Etihad Aviation Group.

Etihad Aviation Group and Lufthansa Technik (LHT) also signed an MoU to explore cooperation in maintenance, repair and overhaul services across Etihad Airways and its airline equity partners, and opportunities for synergies with Etihad Airways Engineering.

“Our collaboration with one of the aviation industry’s most established and recognised brands is undoubtedly the most significant nonequity partnership with an airline we have ever announced. “This partnership is the platform for

Together we can create added value for our customers and shareholders. Partnering with the Etihad Aviation Group fits perfectly with the Lufthansa Group›s global strategy for our passenger airlines and service companies.» The four-year catering contract will see Lufthansa’s LSG Sky Chefs provide

Etihad Airways and Lufthansa are also exploring further cooperation in a number of areas, including freight operations, procurement and passenger services to improve their competitive offering globally and in the European market. The previously announced codeshare between the two airline groups went on sale from February 1, for flights between Abu Dhabi and Germany. Lufthansa will place its ‘LH’ code on Etihad Airways’ twice daily flights between its Abu Dhabi hub and both Frankfurt and Munich. Etihad will put its ‘EY’ code on Lufthansa’s long-haul, non-stop intercontinental services between its home base of Frankfurt, the business and commercial capital of Germany, and Rio de Janeiro in Brazil and the Colombian capital, Bogota as soon as government approval is obtained. 

February 2017

Special Report

Gulfstream sees significant pick-up

ulfstream Aerospace Corp., which showcased its flagship Gulfstream G650ER, the high-performing G550 and the class-leading G280, has a strong presence in the Mena region with more than 120 aircraft. The UAE and Saudi Arabia account for the largest Gulfstream fleet in the Middle East.

February 2017

Special Report

The market demand for business jets is likely to pick up significantly from 2018 onwards with strong, sustained growth projections for global business travel spending over near to medium term. The long term demand drivers market fundamentals for business jets remain intact, robust and firmly in place indicating a sustained, steady demand growth for business jets over medium to long term. The global business jet market is expected to reach $33.8 billion by the end of 2020, to grow at a CAGR of 6.86 per cent. The G650ER, the company’s newest flagship, is the world’s longest-range business jet and provides outstanding mission flexibility. Gulfstream has sold 25 G650s to Middle East customers including Qatar Executive, which has three in service with orders for three more as it gears up to become the region’s predominant charter operator with an almost all-Gulfstream fleet. “This has been a great market for the G650ER,” said Trevor Esling, Regional Senior Vice President, International Sales for Europe, the Middle East and Africa.

Steve Cass, Vice President, Technical Marketing and Communications, Gulfstream, said that about 215 G650 ER were sold worldwide since its launch in 2012 and there are already 25 owners of G650 ERs in the region, including Qatar Airways with three and three more on order. Talking about the performance of the aircraft, he said G650 ER flies at nine tenths of the speed of sound and holds the world record for the Dubai to New York trip of 13 hours and seven minutes. Despite a recent slowdown as a result of the falling oil price, Gulfstream’s fleet in the region has grown 16 per cent in the past five years. The Gulfstream G650 and G650ER are powered by two Rolls-Royce BR725 engines and offer the longest range, fastest speed, largest cabin and the most advanced flight deck in the Gulfstream fleet. The G650 and G650ER both use an advanced aerodynamic design, have a maximum operating speed of Mach 0.925 and can climb to a maximum altitude of 51,000 feet/15,545 meters, allowing them to avoid airline-traffic congestion and adverse weather.

Supersonic business jets The business jet market is poised for a major technology led transformation with the era of supersonic business jets likely to become a reality towards early to mid-2020s with a number of industry OEMs, led by Gulfstream and Aerion-Airbus, actively pursuing R&D programs aimed at development of a range of supersonic flight technologies capable of enabling feasible supersonic flights while meeting regulatory requirements simultaneously. The four-living-area G650ER headlined Gulfstream’s presence, “showcasing the company’s commitment to exceeding customers’ expectations for customisation, comfort and craftsmanship,” according to Mark Burns, President, Gulfstream, who added that: “we have more than 120 aircraft based in the Middle East and North Africa. With this growth, we continue to invest in product support capabilities throughout the region, including expanding our parts and materials inventory at Dubai World Central.” 

February 2017

Special Report

Interchangeable modular plane interiors

he new concept called ‘Transpose’ announced by Airbus uses swappable plane interiors to offer travellers everything from restaurants to spas to co-working spaces while aloft.

When it comes to innovation, the world’s airlines rarely demand massive change from aircraft manufacturers. Many don’t even want aircraft that can fly farther. Airlines’ needs usually are basic, practical, and driven by finances. They want planes that will carry as many people and as much cargo as possible, while burning less fuel than previous-generation aircraft. Plane maker Airbus has responded to this demand and revealed plans for a new type of airplane cabin that could radically change the travel experience.

February 2017

Called ‘Transpose’, the concept breaks an aircraft’s long, cylindrical body into identical and repeatable sections that can be customized to any loadout needs. Through the program, an airline could reconfigure cabins for every flight. One particular section, for example, could be loaded with economy seats for two dozen passengers. Next to it, a bar, first-class section, sleeping quarters or even a cargo hold could be arranged. Those spaces, along with things like spas and coffee bars, would be built in modular sections. A plane running the red eye New York to Paris would be mostly sleeping compartments. And if the jet con-

tinues to Istanbul, airport workers could switch the bed modules for a coffee shop and some desks, and the airline gets to meet the demands of a new set of customers. A carrier might add sleeping pods and an in-flight coffee bar for a long and potentially lucrative Airbus A330 flight from Los Angeles to Munich. But then the airline could replace the pods and bar with extra coach seats for the aircraft’s next flight to Mumbai, which is shorter and might have fewer high-value customers. By using technology now common on all-cargo aircraft, Airbus is betting an airline could transform cab-

Special Report

ins in minutes or hours. Today, an airline that installs a bar is stuck with it on every flight until it retrofits an aircraft, a time-consuming process that can take weeks or even months. Airbus has not fully worked out the technology, and it will be two to four years before the company plans to show it off on a flying plane. When Airbus developed the A380 a decade ago, it promised airlines they could install casinos, gyms, beauty salons and showers. But except for two airlines that installed showers, none of that stuff ever came to market. Most carriers just prefer more seats. “It’s a matter of, what can you do, versus what does it make sense to do?” said Scott Hamilton, an aviation industry consultant and blogger, who follows Airbus and Boeing closely. “The early 747s had piano bars in them. And with the A380, they talked about casinos and showers. You had the flexibility to do that. But it all depends on whether you want to give up the seats.”

Simple technology

The technology Airbus proposes is simple, and similar to what cargo airlines already use. Airlines would have modular cabins they could install, and uninstall through a massive cargo door on the cabin’s main deck. Carriers could move modules between flights as cargo operators shift freight pallets. Some flights might get a bar and a gym, while others could have hundreds of coach seats. Airbus is working out the details through its one-year-old innova-

tion arm, called A3, based in Silicon Valley. The innovation centre is located far from Airbus’ France headquarters so it can “disrupt Airbus Group and its competitors before someone else does,” according to the company. As basic as the concept is, there is one major issue that could spook airlines: Existing passenger aircraft cannot use this technology, in part because they do not have the cargo door required to accept cabin modules.

Airbus is seeking to introduce a new platform that could make it more practical for airlines to temporarily install coffee shops, gyms, yoga studios, children’s play areas, sleeping pods or bars.

But Airbus has a fix. It makes cargo versions of its A330, and these aircraft are designed to cargo pallets. What Airbus wants to do is meld its existing freighter and passenger jet designs to create a new variant of aircraft capable of handling modular cabins. It’ll use existing freighters as it base.

tend not be as efficient because they’re designed to haul bulky freight. That could result in an airline being forced to fly a heavier, and less fuel efficient, passenger aircraft than it wants.

“We are using a modified freighter variant of a commercial aircraft as our reference point, because that’s an alternative to spending decades and billions of dollars on designing an entirely new aircraft,” said Martin Sieben, the project’s chief architect.

“Usually, you have to take the airplane into your hangar or your maintenance, repair and overhaul vendor and do a complete reconfiguration of the aircraft,” Hamilton said. “That can take the aircraft out of service for some period of time.

That means an airline that wants modular cabins will need to buy an aircraft that’s different than the rest of its fleet. But Sieben said carriers should be willing to do so.

If these can be put into modules and you don’t have a premium cost to doing that, so much the better. But if you are required to order a freighter-type airplane to have that flexibility, you could be paying for freighter capability that you don’t necessarily want.”

“Most airlines operate fleets that are composed of a variety of different types of aircraft, so taking on Transpose-enabled aircraft wouldn’t change that,” Sieben said. Hamilton, the aviation industry consultant, noted that using a freighter platform for a passenger aircraft could be tricky. Freighter aircraft

Airbus isn’t yet saying exactly how similar the new aircraft will be to a freighter. That’s partly because it’s early. Sieben said the group is working through various problems, including how to manage the weight and balance of the aircraft. 

February 2017

Middle East News

Middle East carriers record strongest traffic growth

iddle East airlines consolidated the region’s position as the third largest market for international passengers with a capacity growth of 13.7% that continued to outstrip demand. meet that demand with infrastructure that can accommodate the growth, regulation that facilitates growth and taxes that don’t choke growth. If we can achieve that, there is plenty of potential for a safe, secure and sustainable aviation industry to create more jobs and increase prosperity.”

Middle East carriers recorded the strongest annual traffic growth in the world for the fifth year in a row as global air passenger traffic grew 6.3 per cent in 2016 from a year earlier, according to International Air Transport Association (IATA). The strongest overall growth in international travel was recorded by carriers in the Middle East, with a 11.8 per cent surge in revenue passenger kilometres (RPKs), followed by the Asia-Pacific region at 8.3 per cent, and Latin America and Africa at 7.4 per cent. Middle East carriers consolidated the region’s position as the third largest market for international passengers with a capacity growth of 13.7 per cent that continued to outstrip demand.

February 2017

European airlines saw their international traffic expand 4.8 per cent, while North American airlines saw demand rise just 2.6 per cent in 2016. Alexandre de Juniac, Director General and CEO of IATA, warned against “protectionist agendas” that threaten reining in rising air travel. He said the addition of more than 700 new airline routes last year, and the average fall in the price for return tickets of $44 “helped to make air travel even more accessible.” This allowed global passenger numbers to reach a record 3.7 billion. Last year’s hike was well above the 10-year average annual growth rate of 5.5 per cent. He said demand for air travel is still expanding. “The challenge for governments is to work with the industry to

Global airline capacity rose 6.2 per cent, with the average load factor, or percentage of seats occupied, climbing 0.1 per cent to a record annual high of 80.5 per cent. The IATA chief welcomed the growing global demand, stressing that “our freedom to connect through air travel drives prosperity and enriches societies.” “That freedom can only be given its fullest expression when governments facilitate the movement of people and goods,” he said, insisting that “aviation is the business of freedom [and] we must defend its social and economic benefits from barriers to travel and protectionist agendas.” De Juniac said that facilitating global travel was beneficial, and urged governments to work with the industry to ensure “infrastructure that can accommodate the growth, regulation that facilitates growth and taxes that don’t choke growth”. “If we can achieve that, there is plenty of potential for a safe, secure and sustainable aviation industry to create more jobs and increase prosperity,” he said. 

Middle East News

Kuwait Airways set to secure government funding

uwait Airways has been given the approval to access KWD600 million dinars ($1.96 billion) in capital funding from the Kuwaiti General Reserve Fund (KGRF).

The disbursement was approved by Kuwait’s Financial and Economic Affairs Committee (FEAC).

ments for a fleet of 37 new Airbus and Boeing aircraft ordered as part of the airline’s renewal and growth strategy.

Kuwait’s National Assembly had earlier rejected an initial application to withdraw the amount from KGRF.

Kuwait Airways also announced the arrival of its fourth aircraft of a family of long-range twin-engine jets, the Boeing 777-300ER (Kubbar), which is part of a 10-plane deal expected to be completed by the third quarter of 2017.

A local MP had said that the airline had not provided parliament with an administrative work and financial plan to justify the request hence its rejection. The funding will be used to cover pay-

Kuwait Airways Chairperson and

Chief Executive Officer Rasha AlRoumi said in a press statement that the new plane represented a clear success story which supported plans for development adopted by the government of Kuwait to become an attractive financial and commercial centre for investment. One of the oldest airlines in the Gulf region, the Kuwaiti government acquired full ownership of Kuwait Airways in 1962. 

February 2017

Middle East News

Oman Air expands fleet with Boeing B737-800s, Dreamliner

man’s national carrier Oman Air announced that a new Boeing B737-800 aircraft has joined its fleet.

This new aircraft will be used on short and medium haul routes and has a capacity of 162 seats, with 12 business class seats with a seat pitch of 46 inches and 150 economy class seats with a seat pitch of 30 inches. Each seat is equipped with an LCD screen measuring 10.6 inches. A new B737-800 aircraft will be joining Oman Air’s fleet followed by a Dreamliner B787-9. The delivery of the new aircraft is part of Oman Air’s ambitious programme

February 2017

of fleet and network expansion. Oman Air has operated B737s for many years and the aircraft provides the backbone of the airline’s long and medium haul fleet, with 23 currently in operation. The new aircraft will be deployed soon on its arrival for commercial flights. Abdulaziz Alraisi, Executive Vice President Products and Brand Development, said: “In keeping up with the expansion programme, Oman Air is adding new aircraft to its fast growing fleet.

Known for its energy efficient systems, combined with Oman Air’s superb maintenance staff and facilities, this is an ideal acquisition as we spread our wings to further afield.” With the addition of the new Boeing 737-800, Oman Air’s fleet stands at 48. Currently, Oman Air’s fleet consists of four Boeing 787 Dreamliners, six Airbus 330-300s, four Airbus 330-200s, five Boeing 737-900s, 23 Boeing 737-800, one Boeing 737-700 and four Embraer 175s. 

International News

Airlines may avoid Heathrow over fears of a rise in landing charges

ajor airlines could drop Heathrow for Amsterdam over a hike in landing charges to pay for the airport’s third runway .

Several airlines could ditch flights from Heathrow over fears of a rise in landing charges to fund a third runway, an industry source has warned. Major airlines could opt to fly from rival airports such as Amsterdam’s Schiphol instead, over concerns that they could be forced to fork out towards Heathrow’s expansion. Rafael Schvartzman, European Vice-President of the International Air Transport Association, said that airlines would only back the third runway if fees remained at current levels, The Times reported. His comments came as it was revealed Heathrow was already putting plans in place to pass its expansion costs on to airlines. A third runway at Heathrow Airport was given the go-ahead by the government in October after proposals to expand its existing runway, or build a second runway at Gatwick, were rejected. The airport has already been given the go-ahead by the Civil Aviation Authority to incorporate £10 million of early planning costs into its dayto-day running expenses. This means that airlines could be forced to foot the bill if they want

to use the airport, meaning prices could rise and passengers may end up paying more for their flights. It was not immediately clear which airlines had suggested they may stop running flights into Heathrow. Amid fresh fears that more households will be blighted by noise from aircraft, Transport Secretary Chris Grayling argued that the airport’s expansion is essential to post-Brexit Britain as the country attempts to boost trade links around the world. He said: “Aviation expansion is important for the UK both in boosting our economy and jobs and promoting us on the world stage. Leaving the EU is a new chapter for Britain and provides us with a great op-

portunity to forge a new role in the world. “We are determined to seize that opportunity and having the right infrastructure. By backing the Northwest runway at Heathrow airport and publishing our proposals, we are sending out a clear signal that when we leave the EU, we are open for business.” Opponents of the third runway, including local councils, MPs and environmental campaigners, have vowed to continue their resistance. Opponents of Heathrow expansion have also raised concerns that the government is not revealing where the new flightpaths around the airport will be. 

February 2017

International News

Low-cost carriers in Africa turning non-flyers into passengers

band of low-cost carriers is proving that continent Africa holds plenty of potential if proper marketing strategy is applied.

Running an airline in Africa is not for the faint-hearted, and there’s no shortage of carriers that have tried and failed to turn a profit. However, a band of nimble low-cost carriers is proving that the continent holds plenty of potential if you’re paying attention to the market. When South African low-cost carrier Mango – a subsidiary of stateowned South African Airways – launched in 2006, part of its mandate was to tap into the “unflown market,” namely people who had never taken a flight. The arrival of Mango’s additional capacity, particularly on the trunk routes connecting Johannesburg to the coastal cities of Cape Town and Durban, led to lower fares, but Mango also managed to secure a sizable new customer base by pioneering entirely new distribution channels. Soon after launch, Mango became the first airline in Africa to offer ticket sales at counters in a national mid-range supermarket chain. In 2016, it widened that reach by adding a second supermarket brand to the distribution network. “A large part of the unflown market in South Africa may not have access to credit cards or the Internet,” explains Hein Kaiser, spokesperson for Mango. “The more accessible you make your product the easier

February 2017

it is for people to do business with you.” “African low cost carriers have had to be innovative when it comes to distribution because of the costs involved in using the global distribution systems,” says Chris Zweigenthal, CEO of the Airlines Association of Southern Africa. “Plus it’s a dollar-based cost which, with volatile exchange rates in Africa, puts enormous pressure on the bottom line.” Online booking has equally allowed low cost carriers to sidestep traditional distribution systems. Through incentivizing customers by offering the lowest fares online, over 60 percent of bookings for Kenyan carrier Jambojet are now made via the Internet. More familiar to Kenyan travellers is the use of mobile payment solution M-Pesa, which Jambojet has embraced.

Mango similarly widened payment options for the budget market by accepting store cards affiliated to major clothing retail chains. Along with making flying more affordable, carriers have been adept at offering products suited to specialized niche markets. While tapping into the unflown market gave Mango its initial boost, it’s also joined the growing number of low-cost carriers looking for a share of cost-conscious corporate bookings. Its MangoPlus product offers ticket flexibility and rebooking without penalty, access to airport lounge facilities, onboard catering vouchers and discounted executive parking at Africa’s largest airport, Oliver Tambo International Airport in Johannesburg. 

International News

European Commission to tackle aviation emissions

he European Commission has said it was amending the European Union (EU) Emissions Trading System to tackle carbon dioxide (CO2) emissions from aviation.

The Commission said in a press release that the system would require airlines to monitor and report their annual CO2 emissions on international routes and offset those exceeding 2020 levels. Between 2013 and 2016, commercial airlines covered by the system contributed to more than 65 million tonnes of CO2 emission reductions and these reductions have taken place either within the sector or in other

sectors of the economy, said the release. This step came after the International Civil Aviation Organization (ICAO) adopted a resolution to establish a global, market-based measure to offset CO2 emissions from international aviation and contribute to the carbon neutral growth of the sector from 2020 onwards in the tri-annual assembly in 2016.

Global aviation industry CO2 emissions were expected to increase quickly and were set to rise by almost 300 percent over the next decades, unless adequate action was taken, according to a Commission document. The Commissionâ&#x20AC;&#x2122;s proposal to revise the Emission Trading System is to be discussed by European Parliament and the European Council, which are expected to finalize the process by the end of the year. ď&#x201A;&#x192;

February 2017

Opinion

A new chapter for aviation

Violeta Bulc EU Commissioner for Transport

The agreement reached by the Assembly of the International Civil Aviation Organisation (ICAO) on emission opens a new chapter in the history of aviation; one where sustainability finally becomes part of the way we fly. As of 2021, 66 states – including all Europeans – will be covered by a Global MarketBased Measure (GMBM), whereby airlines flying between these countries will offset the growth of their CO2 emissions. It is the first-ever globally binding agreement to address CO2 emissions in a specific sector of the economy. I hope that other sectors, such as international shipping, will follow. Approximately 80 per cent of the growth of emissions above 2020 levels will be offset by the GMBM scheme between 2021 and 2035. It is obviously a very positive development that the aviation industry is moving towards carbon neutral growth. I note with great satisfaction that the airport industry, especially in Europe, is living up to the challenge, in particular via the Airport Carbon Accreditation Programme. Out of the 170 accredited airports worldwide, 113 are located in Europe and of these 24 have reached carbon

3030

February February 2017 2017

neutrality. This is an impressive result. Over the next two years, ICAO will lay out the technical rules of the GMBM scheme and the EU will ensure that they meet expectations. In parallel, the Commission is currently analysing the impact of the GMBM in the context of the EU Emissions Trading System (EU ETS) for aviation. Non-European flights were temporarily excluded from the scope of the EU ETS in 2013 (“stop the clock”) and we will shortly need to decide if this exclusion should be prolonged beyond 2016. However, a market-based measure alone will not be enough to significantly reduce aviation emissions. Complementary measures such as aircraft technologies, operational improvements and sustainable alternative fuels are equally important if we are to effectively kerb CO2 emissions from aviation. I sincerely hope that there will be some breakthrough on these files in 2017. All in all, we may have achieved a lot in Montreal but it is still far from mission accomplished. 

Edited excerpts from a presentation at International Airport Review 2017 Leaders’ Searies.

Opinion

ATMâ&#x20AC;&#x2122;s vital role

ir traffic management (ATM) has a vital role to play in reducing carbon emissions through operational efficiencies such as: getting rid of fixed routes so aircraft can fly the most efficient and shortest flight path; allowing aircraft to fly at the optimum altitude and speed over oceanic airspace rather than mandating a fixed speed and altitude; smoother arrival and departure flight profiles at airports rather than traditional stepped profiles; and reducing delays through collaborative decision making between ATM, airports and airlines. Air navigation service providers are doing their bit to reduce emissions but states have a vital role to play in three areas. The first is investing in ATM infrastructure. Air traffic is growing over five per cent annually. Rising demand without increases in capacity adversely impacts safety and efficiency. We need states to invest in modern, efficient, ATM infrastructure to cater for growth. Huge investments are made by airports and airlines. Quite simply, the benefits of huge investments in airports and airlines are threatened by inefficient and fragmented ATM infrastructure. Airports, airlines and ATM infrastructure must go hand-in-hand: there is no point in having a modern, efficient airport and a modern efficient airline without also modernising ATM to improve capacity and overall performance.

Jeff Poole, Director General, Civil Air Navigation Services Organisation

The third area is the harmonisation of airspace, so that a plane can fly using the most efficient operational route, thus saving emissions. Aviation transcends national boundaries, so airspace needs to be organised, and air navigation services delivered, in line with the operational requirement of airspace users rather than according to national borders. Our goal is to enable planes to navigate seamlessly across national borders, selecting the most efficient routes. ď&#x201A;&#x192;

Edited excerpts from a speech at the Global Sustainable Aviation Forum, Montreal

Second, states should modernise air navigation services by implementing the Aviation System Block Upgrades. ASBUs give a clear road map to achieve the necessary infrastructure improvements. They will improve aviation safety, enhance efficiency for airlines, and increase connectivity to boost GDP.

February 2017

Airlines

JetBlue curbs growth projection J

etBlue is joining other U.S. carriers in the effort to keep the number of seats and flights in check to gain more control over pricing.

known as unit revenue, typically declines when capacity grows faster than demand and carriers are forced to cut fares to fill seats.

range of 5.5 percent to 7.5 percent above last year. Plans for this quarter remained unchanged, the carrier said in a statement.

JetBlue, the New York-based carrier, is trying to catch up with larger U.S. airlines, which have been slowing growth to stanch bleeding in the closely watched measure of revenue from each seat flown a mile. The industry benchmark, also

The carrier estimated last month that unit revenue would fall as much as 9 per cent and said it would review expansion plans.

“The net impact, along with incremental revenue initiatives not discussed on the call, should positively impact earnings, particularly in second half 2017,” Savanthi Syth, a Raymond James Financial Inc. analyst, said in a report.

The airline cut its target for capacity growth by 1 percentage point to a

“We believe investors will view favourably the quick response by JetBlue,” she said. The cuts are focused on April and May, which aren’t months of peak demand, and overnight transcontinental flights, Syth said. As a result of the capacity change, costs for each seat flown a mile excluding fuel will rise 1.5 percent to 3.5 percent this year from 2016, one-half percentage point more than originally expected, JetBlue said. 

Nepal Airlines rebuilding fleet N epal Airlines, formerly Royal Nepal Airlines, is acquiring two new aircraft from Europe and two short-haul planes from China.

The two A320-200 planes purchased from Airbus in Germany are the first wide-body aircraft to be operated by a Nepali airline, and were specifically selected for their suitability for flights into mountainous areas, with advanced navigation technology and superior fuel economy – essential

February 2017

in a nation entirely dependent on its neighbours for fuel supplies.

They also offer the potential to serve more routes, further afield, including Europe, where all Nepali airlines have been banned from flying since 2013. The two aircraft arrived from Hamburg in 2015, and have already been put to work on routes to Asia and the Middle East, replacing the

airline’s ageing Boeing 757s, which have been in service since 1987 and will be phased out completely by 2018. Before the move, the Nepal Airlines fleet was notorious for mechanical issues, and faith in the airline was further dented in 2007 when two goats were sacrificed on the tarmac at Kathmandu airport to appease Akash Bhairab, the Hindu god of the sky, as part of repairs on a faulty aircraft. 

Airlines

Southwest has no plan to copy rivals with basic economy fare

n an age where legacy carriers are racing to strip down and simplify economy fares, Southwest Airlines made a proconsumer move by taking a stand. Southwest Airlines CEO Gary Kelly said his airline has no plan to introduce a basic economy fare and blasted his competitors for treating some passengers like “second-class” customers. At American Airlines and United Airlines, passengers who buy some cheap fares later this year will not be permitted to stow large carry-on bags. Kelly, who has worked at Southwest for three decades, argued it’s not prudent to risk the airline’s brand’s equity to squeeze more revenue from costconscious consumers. “We have a very powerful brand,” he said on Southwest’s fourth quarter earnings call. “There is huge value in offering our customers — 100 per cent of them — a great product. … We strive to keep the customer experience and the product offering as simple as possible. Any time we contemplate offering a choice, we debate that heavily. Complication creates confusion and it dilutes the brand.” American, United and Delta Air Lines view it differently. They argue they must compete on price with the three domestic ultra low cost carriers — Frontier, Spirit and Allegiant. The discounters charge extra for nearly

everything, including onboard food and drink, advanced seat assignments and access to overhead bins. But their base fares are cheap, and many U.S. consumers are flying them instead of legacy airlines. In introducing their own no-frills fares, American, Delta and United say they are merely reacting to consumer preference. They want to give passengers a choice. They can either fly on cheap fares with Spirit or Frontier, or they can buy similarly priced fares on American, Delta and United. But if they buy those cheap fares on the Big 3, they’ll forgo some extras, such as free advanced seat assignments and ability to change their tickets. There’s also the matter of bin space. Delta continues to let passengers on its basic economy fares bring large carry-ons for overhead bins. But United and American, both of which will begin selling their fares soon, will only permit travelers to bring small personal items into the cabin. Some publications have

reported American and United will charge for bin space, but that’s not true. Customers will not even have that option — they will need to pay to check all larger bags. Southwest is not a legacy airline, but over time, it has lost some of its cost advantage over American, Delta and United. Today, it has nowhere near the cost base of airlines like Frontier and Spirit, so when Southwest competes on price with discounters but offers a far better value, its margins suffer. But Kelly said it’s still not a good idea for Southwest to sell a no-frills fare. “If we were to undertake a ‘basic’ product, the only thing we could do is takeaway from [our regular experience,] Kelly said. “We wouldn’t let you make a change. You would board last. You couldn’t bring a carry on. That complicates the message. We have spent 45 years educating our customers about what to expect when they come to Southwest. 

February 2017

Cargo & Logistics

Middle East freight volumes and demand rise

ir cargo ends 2016 on a positive note as Middle Eastern carriers’ freight volumes increased 11.2% year-on-year in December and capacity increased 5.9%.

Middle Eastern carriers’ freight volumes increased 11.2 per cent yearon-year in December and capacity increased 5.9 per cent. This contributed to an annual increase in demand of 6.9 per cent in 2016, the

February 2017

second fastest growth rate of all the regions. However this was the region’s slowest pace of growth since 2009 and well below the 12 per cent average annual rate seen over the past decade. The slowdown in growth is mainly due to weak freight volumes between the

Middle East and Asia, and the Middle East and Europe, according to the International Air Transport Association (IATA). IATA data for global air freight markets showing that demand, measured in

Cargo & Logistics

freight tonne kilometers (FTKs) grew by 3.8 per cent in 2016 compared to 2015. This was nearly double the industry’s average growth rate of 2.0 per cent over the last five years. Freight capacity, measured in available freight tonne kilometers (AFTKs), increased by 5.3 per cent in 2016.

an increase in the shipment of silicon materials and a turnaround in new export orders contributed to the later uptick in demand.

All regions, with the exception of Latin America, experienced positive freight growth in 2016. Carriers in Europe accounted for almost half of the total annual increase in demand.

“In terms of demand, 2016 was a good year for air cargo. That was boosted by solid year-end performance. Looking ahead, strong export orders are good news. But there are headwinds. The most significant is stagnant world trade which also faces the risk of protectionist measures. Governments must not forget that trade is a powerful tool for growth and prosperity,” said Alexandre de Juniac, IATA’s Director General and CEO.

After a weak start to 2016, global freight volumes recovered in the second half of the year. A strong peak season,

The early timing of the Lunar New Year (in January 2017) may also have helped push demand higher in December.

“The air cargo industry must also improve its competitiveness. We know that the way forward is defined by digital processes which will drive efficiency and improve customer satisfaction. We must use the momentum of renewed demand growth to drive the important innovations of the e-cargo vision,” said de Juniac.

Regional Performance

Freight volumes grew by 3.8 per cent in 2016 compared to 2015, outperforming forecasts. All regions, with the exception of Latin America, reported an increase in demand in 2016. Asia-Pacific carriers saw demand in freight volumes grow 9.8 per cent in December 2016 compared to the same period in 2015 and capacity grew by 5.7 per cent. This contributed to a growth in freight demand of 2.1 per cent in 2016 compared to 2015. This was slightly below the 2.3 per cent increase seen the previous year. However, seasonally-adjusted volumes are now back to the levels reached in 2010 during the post-global financial crisis

bounce-back. The increase in demand is captured in the positive outlook from business surveys in the region. Capacity in the region increased 3.6 per cent in 2016. North American airlines saw freight demand increase by 3.7 per cent in December 2016 year-on-year and capacity decrease 1.4 per cent. This contributed to modest annual growth in 2016 of 2.0 per cent, up from 1.3 per cent the previous year. Capacity grew by 3.4 per cent in the 2016 calendar year. The strength of the US dollar continued to boost its inbound market but kept the export market under pressure. European airlines posted a 16.4 per cent year-on-year increase in freight demand in December and a capacity rise of 5.9 per cent. The healthy results helped boost cargo volumes for the 2016 calendar year by 7.6 per cent - the largest increase of all regions, and accounting for almost half of the total global annual increase in freight demand. The seasonally-adjusted growth trend is strong and corresponds with the sustained increase in export orders in Germany and the ongoing weakness in the Euro. Capacity in the region increased by 6.7 per cent in the 2016 calendar year. African carriers’ had the second fastest growth in year-on-year freight volumes, up 13.6 per cent in December 2016 and a capacity increase of 5.3 per cent. This contributed to an annual growth in freight demand of 3.1 per cent in 2016, down from 4.5 per cent in 2015. However, capacity surged by 25.5 per cent in the 2016 calendar year on the back of long-haul expansion, particularly by Ethiopian Airlines, causing a fall in the freight load factor. 

February 2017

Cargo & Logistics

Cross-border e-commerce to grow to $900 billion through 2020

ross-border e-commerce will increase at an annual average rate of 25 per cent till 2020, from $300 billion to $900 billion, according to research published by DHL Express.

That rate is twice the pace of domestic e-commerce retailers and manufacturers in the six countries featured in the study, and underscores the importance of trade in an era when protectionism seems to be on the rise. Faster shipping options, such as express

shipping and customized last-mile options correlated to 60 percent higher growth rates than e-retailers who didn’t offer such options.

the positive impact that selling to international markets can have on our customers’ business growth,” said Ken Allen, CEO, DHL Express.

“Shipping cross-border is much, much easier than many retailers believe, and we see every day

“We also see that virtually every product category has the potential to upgrade to premium, both by developing higher quality luxury editions and by offering superior levels of service quality to meet the demands of less-price-sensitive customers. The opportunity to ‘go global’ and ‘go premium’ is there for many retailers in all markets.” DHL’s study found that supply and demand were increasingly excluding the “middleman” in favour of direct B2C e-commerce. Manufacturers that take advantage of e-commerce to move to “direct retail models that offer their products online to the end customer can expect to grow 30 percent faster in cross-border e-commerce than other retailer groups. 

February 2017

Technology

The ultimate cure for jet lag P assengers of long flights really dread jet lag. The medical community has taken the next step toward finding a cure.

The longest flights in the world are just getting longer. Emirates’ latest route from Dubai to Auckland clocks in at a startling 16.5 hours — it’s the lengthiest flight on the market — and Qantas plans to launch a new 17-hour route between Perth and London in 2018. But painful as long-haul flights can be, it’s their aftermath — jet lag — that you should really be dreading. That might soon change, though. The medical community has taken the next step toward finding a jetlag cure, thanks to a Salk Institute study published last year in Cell. According to Dr. Ronald Evans, the lead author of the study, a protein called Rev-ErbA (pronounced ree-verb-AY) may be the key to unlocking a regular, healthy circadian rhythm no matter where (or when) in the world you are.

Biological clock

Turns out, the circadian rhythm, a physiological cycle that roughly matches up with the length of a day, doesn’t just regulate when we feel sleepy — it also regulates when we get hungry and when we feel most active.

“Under normal circumstances,” Evans said, “we sleep when it’s dark and wake up and eat when the sun rises.”

metabolism. In other words, you can fight jet lag by consuming (and burning) calories at the right times as well as trying to sleep at proper times.

Eating is a key point: Circadian rhythm is about both sleep and

Jet lag pills

February 2017

Your

circadian

rhythm

doesn’t

regulate itself: Rev-ErbA does. According to Evans’s study, the protein acts as a sort of master switch that coordinates the “turning on and off” of genes that regulate our circadian rhythms, including those involved in metabolism.

Technology

Pinpointing that master switch and understanding how it works is the first step to controlling it artificially. By regulating both the amount of Rev-ErbA in the body as well as how much it fluctuates over the course of a day, we might eventually find a cure for jet lag. And it doesn’t end there: The same science may eventually offer relief to people with chronic sleeping issues and other chronic conditions that can develop as a result of a disrupted circadian cycle.

Body’s master switch

A pill that prevents jet lag is still years down the road, but plenty of simple but specific strategies let you take matters into your own hands. Yes, different strokes work for different folks — frequent road warriors tout everything from popping a pill before takeoff, to doing yoga on arrival, to apps — but the more we understand the mechanisms that create jet lag, the better equipped we are to pick and choose our tactics. Evans’s biggest takeaway is to place equal importance on all three of those pillars of circadian rhythm when resetting your schedule in a new time zone. The sooner you’re moving around, sleeping, and eating at the right times, the sooner you’ll adjust. The heightened role of diet in fighting jet lag led us to call in nutritionist Kimberly Snyder for extra advice; her clients include such A-listers as Kerry Washington, Channing Tatum, and Ben Stiller, and she’s recently cowritten a book with Deepak Chopra that discusses circadian rhythms at length. Her pro tip: Skip the hotel breakfast. And don’t even think about room service.

Tips for weary travellers You are what you eat. “Be sure not to eat a protein- or fat-rich dinner the night before travel,” said Snyder. “Not only will that make you feel heavy [on the plane], but it also directs energy into digestion through the night.” This makes it harder to fall asleep in flight — as if it weren’t challenging already. Skipping the plane food doesn’t hurt, either. You’re also what you drink. “Drink plenty of water and bring natural vitamin C or antioxidant packets to mix into your water on the plane and after your flight,” advised Snyder. She said travelers should also avoid caffeine prior to, during, and after travel, since it is dehydrating and can have deleterious effects the nervous system. If you do drink, go with the frequent travelers’ rule of thumb: two glasses of water for every cup of coffee. Get ahead of the game. Some shift their sleep schedules before

Instead, said Evans, you should wake up at a normal hour and head off-site for a morning meal: It’ll reset both your activity and feeding cycles while getting you some fresh air and forcing you to wake up at a reasonable time. Counterintuitive as that sounds, it’s far better than easing into your morning under the hotel duvet with a cup of coffee. “We can use food and light exposure to adjust more rapidly by timing when we eat, sleep, wake up, and are exposed to natural light,” she advised.

a trip; thanks to Evans’s study on Rev-ErbA, we now know that you can shift your meal schedule, too. Snyder said “we should fast while on the plane, and then eat soon after landing, in order to reset our rhythm.” And if you land with a ravenous appetite at midnight, try to avoid an absurdly late dinner. Instead, “time your first meal to match the nearest meal time of your new time zone,” she said. Supplements help. You know to take melatonin if you can’t fall asleep in your new time zone. But what about magnesium oxide? It can keep your digestive health in check (we’re talking about the end process of nutrition here), which contributes a “regular” circadian rhythm. Be realistic. If you don’t recover from jet lag in the first day or two, don’t beat yourself up. Some travelers are faster adapters than others, and circadian clocks can be adjusted only bit by bit.

Sunlight, she said, “helps signal and reset our circadian rhythms,” allowing our bodies to adapt more quickly. Snyder added that what you order for breakfast can also make a difference. To combat the stresses of travel, avoid those fatty, sugary foods we all crave when we’re sleepy and instead eat foods rich in amino acids and antioxidants, such as asparagus, broccoli, avocado, spinach, and garlic. Avocado toast and veggie omelets never looked better. 

February 2017