Aviation Business - Sept 2010 by ITP Business Publishing

THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | SEPTEMBER 2010

BUSINESS Licensed by Dubai Media City

Emirati Excellence

Celebrating the UAE’s transformation as a global aerospace powerhouse

Preview: Aviation Business Awards 2010

An exclusive look at the industry’s leading celebration of excellence Paul Kinscherﬀ, vice president, Boeing International & president, Boeing Middle East

Dream maker Boeing plans to revolutionise Middle East aviation with its 787 Dreamliner

MOVERS & SHAKERS | NEWS UPDATE | READER’S LET TERS | FACTS & FIGURES

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CONTENTS

SEPTEMBER 2010 VOLUME 09 ISSUE 09

3 EDITOR’S LETTER

The power of ﬂight attendants in securing the loyalty of passengers.

9 NEWS UPDATE

Flights suspended by Saudi Arabian low cost carrier Sama. Emirates faces Iran lawsuit over ﬁlm screenings. British Airways CEO considers potential return to Iraq. UAE airline executives in expat power list. Etihad to introduce ‘economy only’ Airbus A320s for short-haul routes. MEBAA signs Gulf training alliance. Airport staﬀ at risk over Gulf Air plan. Bad landing blamed for Lufthansa crash.

20 COVER STORY BOEING

Paul Kinscherﬀ, president of Boeing Middle East, explains how the aircraft manufacturer will revolutionise the aviation industry with its 787 Dreamliner.

42 TOP 10 AIRFREIGHT HUBS

A countdown of the Middle East’s leading airports for cargo operations, including Dubai, Abu Dhabi and Bahrain.

24 PROFILE UAE AVIATION

Heralded as the aviation capital of the Middle East, the United Arab Emirates has invested billions of dollars to emerge as a global industry powerhouse. But has it been successful? We ask some of the country’s biggest players.

32 REPORT FLIGHT SUPPORT

Do ﬂight support service providers still have an important role to play in the modern aviation industry?

36 AVIATION BUSINESS AWARDS An exclusive look at the forthcoming Aviation Business Awards, which are scheduled to take place at Emirates Palace Hotel in Abu Dhabi this year to celebrate excellence in the regional industry. www.arabiansupplychain.com

48 ASK THE EXPERT

How to improve the airport experience with a silent approach, explains Majed Al Joker from Dubai Airports.

50 AIRLINE REPORTCARD

A monthly summary of the latest airline accidents and other aircraft-related incidents in the Middle East region.

52 INDUSTRY STATISTICS

Updated statistics from trusted sources, including Airports Council International (ACI), Emirates SkyCargo and FlightStats.

56 DEPARTURE LOUNGE

Avtrade celebrates its 25th anniversary of operations as a global component service provider, with oﬃces in Dubai. September 2010

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3 BUSINESS Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: + 971 4 210 8000, Fax: + 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP Business Publishing CEO Walid Akawi Managing Director Neil Davies Managing Director Karam Awad Deputy Managing Director Matthew Southwell Editorial Director David Ingham Publishing Director Diarmuid OMalley Editorial Senior Group Editor Robeel Haq Tel: +971 4 210 597 email:robeel.haq@itp.com Contributors Nadia Khan, Ed Attwood, Shane Mcginley Advertising Sales Manager Nick Lowe Tel: +971 4 210 8306 email: nick.lowe@itp.com Publishing Director Diarmuid OMalley Tel: +971 4 210 8568 email: diarmuid.omalley@itp.com Europe Sales Rep Stephane De Remusat Tel: +33 680 844 378 email: sremusat@aol.com Studio Group Art Editor Dan Prescott Designer Angela Ravi Photography Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographers G-nie Arambulo, Efraim Evidor, Thanos Lazopoulos Staff Photographers Isidora Bojovic, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav, George Dipin Production & Distribution Group Production & Distribution Director Kyle Smith Deputy Production Manager Matthew Grant Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami Circulation Head of Circulation & Database Gaurav Gulati Marketing Head of Marketing Daniel Fewtrell Marketing Manager Annie Chinoy ITP Digital Director Peter Conmy ITP Group Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 286 8559

EDITOR’S COMMENT Can flight attendants win customer loyalty?

ts amazing the impact a video clip can have on the mass public. Last month, a Lufthansa passenger was travelling to Frankfurt in Germany, when a pillow fight was started between the flight attendant and fellow travellers. Although the lighthearted incident was over in less than a minute, it was filmed on a mobile phone and uploaded on the popular YouTube website. Within days, millions have watched the clip around the world and the flight attendant was hailed for bringing the fun back into passenger flights. With security measures becoming stricter at airports and passengers often the victim of cost-cutting measures by airlines, it seems a little fun was needed to get the public back on side. And while the Lufthansa hostess was able to bring a smile on the face of passengers, 39-year-old Steven Slater managed to achieve the opposite result last month. An employee of JetBlue, he was arrested in the United States after shocking passengers on his flight by making an explicit resignation on the public address system, followed by a dramatic exit on the emergency slide. Once again, the media was fast to jump

on the story and it was soon revealed that Slater had a heated exchange with a passenger, who apparently knocked him on the head while removing his luggage from an overhead locker. “I’ve been in this business 28 years. And that’s it, I’m done,” said the flight attendant, before grabbing a beer from the galley, activating the emergency slide, and leaving the aircraft in style. Amazingly, over 100,000 people joined a Facebook page supporting his actions and Slater has even been offered his own reality show on television. Passengers on the flight, however, were not so encouraging and had to question his professionalism. Both incidents are a stark reminder that flight attendants can make the ultimate difference between a satisfied customer and a dissatisfied customer. While billion dollar investments in aircrafts and decreasing travel costs are all important, a friendly smile can also make a world of difference. If you have any comments on this month’s issue, please email Robeel Haq, senior group editor of Aviation Business magazine (robeel.haq@itp.com)

Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Masar Printing Press Controlled distribution by Blue Truck Subscribe online at www.itp.com/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

BPA Worldwide Audited Average Qualified Circulation 4,569 (Jan -June 2010)

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September 2010

TRADE TALK

The impending death of codesharing

Despite marketing eﬀorts, the reality is that most passengers don’t like the idea By Adel Ali, chief executive officer of Air Arabia

In 1989, Qantas Airways and American Airlines came up with the term ‘codeshares’ when they combined their services to offer passengers a greater choice of routes in the US and Australia. This was during a time when airlines were entirely government owned and, as a result, the skies were closed, with governments deciding which airlines were allowed into their airspace. Codesharing was therefore the perfect solution to allow customers to travel to different markets, while purchasing tickets from their preferred airline. The actual term refers to the airline codes that were now shared. The same flight, for example, would bear different codes, representing both airlines. The idea was soon adopted by other airlines, and in the 1990s, the industry saw countless airlines ‘codesharing’ as they all competed to offer the most destinations and frequencies. The benefits lie mainly with the airlines. The marketing airline diverts traffic to the operating airline, usually to a destination that the marketing airline doesn’t serve, and gets a percentage of the sale. It’s a win-win situation. Additionally, aside from direct monetary gains, through codeshares, the marketing carrier can also gain exposure in the market by displaying its flight numbers. And the benefit for the operating airline? More passengers on otherwise quiet routes. In this region, flagship airlines continue to codeshare, a practice that is as much about building relationships with other countries as it is about expanding reach. Codesharing has allowed airlines in this region to instantly increase the number of destinations they served, gain recognition

September 2010

in countries they didn’t actually fly to, and, of course, receive more passengers. Not to mention nurture the relationships their governments had with other governments. Codesharing was also initially the ideal way to promote a new airline during a time when investment in foreign carriers was not an option. Although airlines try to market the benefits of codesharing to make them more appealing to their customers, the reality is that most passengers don’t like the idea. No one wants to book a ticket with their favourite airline only to be turned away from the check-in desk and sent to another airline; one they have no idea what to expect from in terms of safety, quality, food, entertainment or even attitude. More often than not, passengers are not even aware that they have essentially purchased a ticket with a different airline. This lack of transparency has meant that customers never really warmed to the idea. This fact is often further intensified by travel agents who fail to tell passengers who they will really be flying with. Occasionally, they may mention that the flight is a ‘codeshare’ flight in passing, completely aware that the ordinary consumer has no idea what that really means. Although it can be confusing for customers, there are some benefits for them. Codesharing effectively merges passengers’ frequent flyer miles and programmes, letting them use their builtup mileage from one carrier on several others. It also means that connecting flights are far simpler than if they have booked flights separately, as it provides clearer routing for the customer. Despite the benefits for customers and airlines alike, today, codesharing, although still apparent, is not nearly as prominent as it was in the 1990s. The introduction

of airline alliances has further reduced the need for codesharing. The aviation industry now has a range of alliances, such as ‘One World’ and ‘Sky Team’, which offer similar benefits as codesharing to airlines and passengers, such as combined frequent flyer programmes and a network of destinations, but with more transparency for its passengers. One World, for example, has now reached over 819 destinations in 142 countries. It operates over 8700 daily flights, carries 307 million passengers and is the only alliance that has members in every continent. With such an extensive global reach, it makes far more sense for airlines to join alliances rather than develop codeshares. With the introduction of One World in 2000, and the launch of similar airline alliances in recent times, together with more and more airlines being privately owned, the concept of codesharing is slowly becoming less prominent and more costly from a logistical perspective for airlines. Setting up codeshare agreements are far more expensive than obtaining memberships at airline alliances, and as a result, the practice is becoming less preferred and more about relationships between different governments than anything else. In fact, many newer airlines have abandoned the tradition altogether. Due to the low cost carrier (LCC) model of flying point to point, of course, no LCCs have codeshare agreements. Although several flagship airlines still have codeshare agreements, many new airlines do not. The codeshare age is definitely phasing out. Although it’s difficult to put say when the practice will officially become extinct, it’s really only a matter of time.

Despite the beneﬁts for customers and airlines alike, codesharing is not nearly as prominent as it was in the 1990s

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TRADE TALK

The future of air transport in the Gulf

Will passengers have the option of economy travel or business aviation in 20 years? By Ali Al Naqbi, founding chairman of Middle East Business Aviation Association (MEBAA)

How long until passengers in the Middle East expect the low cost option on long-haul flights?

Given the rapid pace of change in the aviation industry, making any sort of prediction for the future is always a little hit-or-miss. However, I’ve been intrigued by a number of global experts that have forecast a two-level approach for both short-haul and long-haul air transport in 20 years time. According to their theory, passengers will either travel with low cost / economy carriers or business aviation providers, with other options eventually fading into oblivion. Such a bold assessment will obviously draw a mixed response from the industry. However, upon further investigation, there have been a couple of factors that support the theory in recent months. Firstly, as founding chairman of the Middle East Business Aviation Association (MEBAA), I can vouch for the fact that business aviation is becoming a more affordable option around the world, including the Middle East. Indeed, I predict that a growing number of companies will enter the market over the coming years, boosting the fleet of private jets in the region and creating a better range of options for customers. As a result, costs will tumble down and the potential market will expand to include clients that had previously deemed business aviation too expensive. This will cause a migration of sorts from full-service airlines, who will increasingly compete with low cost carriers for a share of the market. Secondly, for those that believe full service airlines will never allow this to happen, take a look at the news pages in

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this issue of Aviation Business magazine. There is a report that Etihad Airways will invest in ‘economy only’ Airbus A320s. Two of the aircraft will be introduced into the carrier’s fleet next month, with 162 economy seats and no sections for business or first class. These will initially serve short-haul routes that connect Abu Dhabi to countries such as Qatar, Syria, Egypt and India, although there are plans to expand the all economy fleet to 10 in the future, opening the doors to a host of other destinations. This is a breakthrough move by a full-service carrier in the Middle East and will allow Etihad to compete with the likes of Air Arabia and FlyDubai for a greater share of the market. For long-haul routes, it could take a little longer to convince airlines to follow this model. When the CEO of British Airways was asked about his opinion on Etihad’s move, he stated the carrier would not be introducing economy-only flights between the United Kingdom

and Middle East. On the contrary, it would continue to invest in premium class cabins on these routes. While this is understandable, passengers have already supported the low cost model on short-haul flights in the Middle East – again, look at the success of Air Arabia and FlyDubai for evidence – so, how long until they expect this option on long-haul flights? And if the passenger is making such a demand, the aviation industry will have respond. So, while a number of people will question the theory of these experts, their argument is based on recent happenings in the global aviation industry, including the Middle East segment. Of course, while the fundamentals of air transport will continue to change in future years, nothing can be forecast with 100% certainty. It will be interesting to keep tabs on this situation and see whether the assessment will become a reality. Perhaps I will write a follow-up column in 2030 to reflect on the latest state of affairs.

September 2010

READER’S LETTERS

READER’S LETTERS Got an opinion? Have your say at... Middle East airports must increase their focus on security The ‘shock discovery of human remains’ on a Nas Air flight last month has placed the spotlight on airport security in the Middle East. While the chances of this incident happening at the airports in Dubai or Abu Dhabi are limited, there are plenty of lessdeveloped facilities in the region where security lapses are more prevalent. It’s time to introduce a region-wise standard that all airports must follow. Ashraf Rana

(Lebanon, Kuwait, UAE, Jordan and Qatar). There are huge imbalances in the MENA region and we need an integrated civil aviation strategy that will help each of the 22 MENA states to make the proper institutional, policy and operational adjustments. As a result, we will cease the economic benefits of a liberalised air transport system in the Arab world, so that strong economies will get stronger and developing ones will have the opportunity to grow positively. Nadine Itani

Air France-KLM chief executive warns Emirates over expansion

Further support for Adel Ali’s viewpoint on open sky policies

I’ve read your coverage on Emirates being warned by the chief executive of Air France-KLM about facing “more and more reluctance” from governments in the granting of traffic rights. At the end of the day, Emirates is only doing what the European carriers have done for many long years to countries like India. So when EK beats them at their own game, they are crying foul and asking for protection from their governments. How disgraceful is that? Bhuvana

I fully agree with the points raised in Adel Ali’s column last month. The International Civil Aviation Organisation (ICAO) should make open sky policies mandatory in the 21st century. How long shall we continue with 20th century policies of bilateral agreements? One small point about the article though, Kuwait’s name was not mentioned, but I believe Kuwait also has open skies policies. Mumeen Chowdhury

Time to embrace the concept of open skies in the Middle East I’ve enjoyed reading Adel Ali’s columns in Aviation Business. Regarding his article on the low cost model, its true that despite the huge passenger growth in the Middle East and the availability of success air transport models, whether full service or low cost, and a strategic location connecting the world, Middle East governments are not aware of the huge benefits that liberalisation and open skies could bring to our aviation market. Authorities should wake up and benefit from the success stories of open skies and timid liberalisation attempts of some Middle East countries

September 2010

Celebrating a veteran of the Middle East aviation industry Thanks for publishing the interview with Maurice Flanagan from Emirates. He has not changed since his Dnata days at Nasr Square and it’s nice to see him on all cylinders firing. Good luck Maurice and keep going, as you are a true asset to Emirates and over time, old assets become very, very precious. Ashok Dogra

Celebrating a veteran of the Middle East aviation industry Maurice Flanagan is a top, top man! Still with it at 82 and hopefully for many years to come. He learned many

lessons from his BOAC and British Airways days and put everything into practice in the heady days of the 80s in Dubai. He also always retained a hands on relationship with staff of all grades within the company; something not so apparent these days. Long may he continue to be involved in the affairs of the Emirates Group. Leo Fewtrell

A song and dance about Etihad’s latest commercial So, Bollywood actress Katrina Kaif has been signed as a brand ambassador for Etihad and filmed a commercial for them? But watching the commercial, what is the need for Katrina’s badly choreographed dance here? It has no relevance to the airline or its facilities. It just promotes Katrina to UAE travellers. This is very poor branding on Etihad’s part. Why not show some nice families using the airline, which would have a much better impact on the branding. Shanti Subra

Have lessons been learned from the past by RAK Airways? It’s interesting to hear that RAK Airways is planning to resume its operations later this year. Let’s hope that the airline has learned a number of lessons from past experience, especially when they recruited staff. As most in the industry would know, they previously hired inexperienced staff to run the show, which marked the beginning of their end the first time around. Thair Rajlouni

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NEWS UPDATE

Flights suspended by Saudi Arabian low cost carrier Sama AIRLINE OPERATIONS

Sama Airlines has been forced to discontinue its flight operations, after recording a US$266 million loss during the winter season. The low cost carrier, which is based in Saudi Arabia, suffered from limited demand for regional travel between October 2009 and March 2010, especially with competition from national carrier Saudi Arabian Airlines and low cost rival Nas Air. Although revenues had started to recover in the peak summer season, it was not enough to offset the heavy losses from winter. According to reports, the airline had received a loan of $53 million from the government to cover its fuel costs, in addition to $133 from shareholders. However, it needed an extra $80 million to keep its operations on track. “The decision to stop flying was not taken lightly, but we have spent many months seeking alternatives, and now this is the only option remaining to us,” explained Sama CEO Bruce Ashby. “We had been awaiting a significant aviation relief package with respect to fuel subsidies, subsidies for PSO routes, a gradual lifting of domestic fare caps, and additional funds to support the past losses and growth of our business. In addition, we sought for, and found, more than one potential new equity investor willing to inject cash into the business. Unfortunately, none of these alternatives came together in the required timeframe.” Sama, which commenced operations in 2007 and served 10 destinations with a fleet of six Boeing 737www.arabiansupplychain.com

HRH Prince Bandar bin Khalid al Faisal, chairman of Sama Airlines, speaking at a press conference in Riyadh last year

300s, suspended operations from 24th August 2010. A couple of days later, the airline’s 600 employees were told that redundancies would be immediate, although discussions were set to continue for additional funding with various government agencies. “We deeply regret any inconvenience caused to our customers, but we must do what is necessary to preserve the integrity of our operations,” Ashby concluded. “Since our launch, we have run a safe, reliable airline that fl ies on time and we have received broad-based support for our plan of measured growth. We remain hopeful that a fi nancial solution will be found that will allow us to restart operations.” The development is the latest in a troubled series of events for the low cost sector, according to Abu Dhabi-based aviation expert Oussama Salah, with Bahrain Air exiting

the budget market last June and RAK Airways being relaunched as a full service airline earlier this year. “These airlines have suffered from the effects of a crowded and very competitive low cost market in the Middle East, dominated by Air Arabia, FlyDubai and Jazeera Airways,” he

stated. “It remains to be seen how the market develops. I very much doubt that we will see more airlines than the existing ones, which could mean the next growth market will be North Africa, giving credibility to Air Arabia’s strategy of starting LCCs in Morocco, Egypt and Jordan.”

SAMA FACT FILE • Sama served 10 destinations within Saudi Arabia and nearby countries, with 164 weekly flights. • Sama was founded in 2005 by Investment Enterprises, chaired by HRH Prince Bandar bin Khalid al Faisal. • The airline’s first commercial flight took place on 18th March 2007. • Initial investment was received from 30 major Saudi private and institutional investors including Olayan Financial Company, Xenel Industries, Saudi Industrial Services, Sara Development Company and Modern Investment Company for Trade and Industries. • Sama had six Boeing 737-300 aircraft which were maintained by Lufthansa Technik, together with its own trained staff and other providers. • Sama was a short-haul carrier serving destinations within the Kingdom and nearby countries, including Egypt, Jordan, Syria, Sudan and the UAE. September 2010

NEWS UPDATE

Emirates faces movie lawsuit in Iran IN-FLIGHT ENTERTAINMENT

Emirates has broken its silence over allegations that Iranian films were being illegally screened on its in-flight entertainment system. The Dubai-based airline is facing legal action from filmmakers Manuchehr Mohammadi and Gholamreza Masavi, who last month claimed their movies were being aired to passengers without official approval. “I have been informed about the screening of ‘M For Mother’ by Emirates, while neither the airline nor any other related company has a contact with us. The movie is

Emirates has denied that ‘M For Mother’ and ‘Red’ were being shown illegally

being shown illegally and we have the legal right to pursue this issue,” stated Mohammadi,

who was planning to request a formal explanation from the airline. Meanwhile, a similar

claim was made by Masavi for the movie ‘Red’, with threats that a lawsuit would be filed with Iran’s Supreme Council of Producers. However, speaking to Aviation Business magazine, a spokesperson for Emirates denied the accusations. “Emirates legally sources all content for its in-flight entertainment through the established international distributors. We take matters of this nature very seriously and we have been reassured that all Iranian content has been procured through the correct channels representing the rights holders.”

British Airways CEO considering UAE airline executives in potential return to Iraq market expat power list for 2010 AIRLINE OPERATIONS

British Airways is deliberating plans to resume Iraq flights on the back of increased demand for the service, the airline’s CEO Willie Walsh has confirmed. Several carriers have launched routes to the country in recent months, including Etihad Airways, which offers non-stop flights to Erbil, and low cost carrier FlyDubai, which also commenced flights to Erbil this year. In addition, Lufthansa has confirmed plans to restart a regular service to Baghdad, the first of the western European and US carriers to resume

flights to the Iraqi capital. The German airline will serve Baghdad from Munich beginning 30th September, following a 20-year break. “Iraq is clearly a market we are watching with great interest. A number of carriers are starting to fly there and its an area we have served in the past and would look to serve again in the future. But there are no plans at this stage,” stated Walsh. “We believe there is a potential from both a passenger and cargo point of view. It is one of the destinations we are keeping under review at the moment,” he added.

Willie Walsh believes there is potential for passenger and cargo flights to Iraq

September 2010

AIRLINE OPERATIONS

Emirates president Tim Clark and Etihad CEO James Hogan have been listed in this year’s Expat Power 50 by Arabian Business magazine. Both airline executives made the top 10, with James Hogan ranked at number 8 and Tim Clark at number 10. Dubai Airports CEO Paul Griffith was also included at number 16, while the top spot went to Anthony Armstrong, Head of Mergers and Acquisitions at Qatar Holding. The annual list is a compilation of the most influential expatriates living and working in the Gulf today – or, as stated by Arabian Business, the people that are “making the biggest difference to the region they now call home - business leaders who have come to the Gulf and are playing a huge role in helping shape its future”. The ranking is confined to people living and working within the six GCC countries,

Top 10 entry for Emirates’ Tim Clark

and who do not qualify for the annual Arab Power List. “Looking at the rankings, nobody will be surprised to see fewer Westerners on this year’s list than 2009. Nor can it be a shock that Dubai has less power players than it did 12 months ago – Dubai World’s $26bn debt default has set the emirate on the back foot and that is reflected in the diminished influence of some of its business leaders,” stated the magazine. www.arabiansupplychain.com

NEWS UPDATE

Etihad to introduce ‘economy only’ Airbus A320s for short-haul routes

AIRLINE OPERATIONS

Etihad Airways has outlined plans to introduce ‘economy only’ flights on short-haul routes to capitalise on growing demand for lower cost travel. The airline will introduce two Airbus A320s into its fleet next month without any first or business class sections. Instead, the aircraft will be configured to carry 162 economy class passengers, an increase of 42 from current capacity. These will initially serve Alexandria, Calicut, Colombo, Damascus, Doha and Thiruvananthapuram, with plans to expand the all economy fleet to ten A320 aircraft in the future. “Etihad has grown at a remarkable pace during the past six and a half years. We have built a strong brand and a robust business, and it is the right time to challenge the way we serve our various markets and segments,” said James Hogan, chief executive officer of Etihad Airways. “Our all economy aircraft will allow us to offer a more competitive product for key point-to-point markets in Asia, the Middle East, North Africa and Indian subcontinent, while maintaining our high standards of service.” www.arabiansupplychain.com

Dubai-based low cost carrier FlyDubai was quick to welcome the decision, with CEO Ghaith Al Ghaith stating that the emirate’s market has enough potential traffic to support the increasing levels of competition. “There is a tremendous opportunity in this region to grow the low cost market and I believe there is enough potential traffic here for all well run airlines to be successful,” he commented. “Increasing competition is good for everyone, especially the consumer. Etihad is a very good airline and is very important to the growth of aviation in this region. We wish them good luck with their new venture and are sure they will be successful.” However, British Airways CEO Willie Walsh has confirmed the national carrier will not follow in Etihad’s footsteps with the introduction of economy only flights in the Middle East. On the contrary, the national carrier will continue to invest in premium class cabins for Gulf routes. “We are not considering all economy flights to the Middle East. We are very clear that the combination of premium and economy travel is absolutely

right for the region,” stated the executive. “Demand for premium travel is still quite strong and we expect that to continue, so we will continue to invest in premium products.

For example, our new Boeing 777-300 has a brand new first class cabin and that’s why it is targeted to operate in the Middle East, as we see strong premium demand.”

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NEWS UPDATE

MEBAA signs Gulf training alliance TRAINING AND EDUCATION

The Middle East Business AviationAssociation(MEBAA) has signed a memorandum of understanding with the Gulf Centre for Aviation Studies (GCAS). Under the partnership, both parties will form a training committee to identify and evaluate the needs of MEBAA’s members and the training offered to them. In addition, GCAS will have access to MEBAA’s events, trade shows, conferences, exhibitions and seminars to use as a platform to have its voice heard, while MEBAA members will have a privileged rate to GCAS courses. “Our aim has always been to be a bridge, a communication channel, for all involved to

better the business aviation industry,” stated Ali Al Naqbi, chairman of MEBAA. “We strongly believe in the role that GCAS has been playing in the region and trust that this partnership will bring us all closer to our goals, and will be beneficial to all those who work in this industry.” GCAS is the exclusive training provider for JAATO in the Gulf and Middle East region, and is the tenth certified training centre to provide ACI courses. “This partnership with MEBAA is another milestone for GCAS, as it will serve our goal in furthering the collective expertise and knowledge base in our industry,” commented Mohammed Bulooki, general

Ali Al Naqbi and Mohammed Bulooki sign the memorandum of understanding

manager of GCAS. “With this membership we will have access to a new base of governmental and aviation companies to

further develop and expand our training programmes. We can extend our services beyond the region.”

Saudi Arabian Airlines in campaign Tobacco ban ‘serious’ to encourage passengers online for Dubai Duty Free AIRLINE OPERATIONS

Saudi Arabia Airlines has announced a marketing campaign to increase the number of passengers that book their tickets online. Only three percent of sales are currently done through the website, according to Mohammed Yousuf Jan, general manager of the airline’s call centre. The campaign will focus on boosting this figure and encouraging passengers to also select their seats and

receive their boarding passes through the internet. “We expect that 25% of sales would take place through the website by the year 2013,” said Jan. “Our website is developed now and you can do your booking, get your ticket and your boarding pass within five minutes, especially for domestic flights,” he added. By the end of May 2010, 1.89 million reservations were made through the Saudi Arabian Airlines website.

Saudi Arbian Airlines wants a quarter of bookings to be made online by 2013

September 2010

AIRPORT RETAIL

Plans by the World Health Organisation (WHO) to ban the sale of tobacco and cigarettes in airports would have a “serious effect on the duty free business” if they were implemented, the head of Dubai Duty Free (DDF) told the media last month. “The WHO has been for many years trying to get the sale of tobacco and cigarettes in airports banned,” said Colm McLoughlin, managing director of DDF. “You know that might happen sometime in the future and it would be a serious effect on business.” However, while the ban would have impact, McLoughlin is not overly concerned that it will be introduced any time soon. “I don’t wish to be glib on it, but when you’re as old as I am and you look back and realise you’ve been hearing those things for the last 40 years.

Dubai Duty Free’s Colm McLoughlin

They come and go and you deal with them as they come,” he said. Last year was a tough year for many airport retailers, with DDF’s competitors seeing a drop in sales of more than 15%. However, DDF managed to retain its position as the biggest single airport retailer in the world. “If you look at good airports around the world they sell generally to 16% or 18% of departing passengers. In the case of Dubai Duty Free we sell to more than 32% of departing passengers,” stated McLoughlin. www.arabiansupplychain.com

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Airport staﬀ at risk over Gulf Air plan AIRPORT OPERATIONS

Bahrain national carrier Gulf Air is considering a proposal to move its ground services in-house, although Bahrain Airport Services (BAS) has issued a warning that the decision could place more than 250 jobs in jeopardy. “Over the years, BAS has been providing high-quality services to Gulf Air. The steps taken by the airline to improve its competitiveness should not be at the expense of Bahraini labour or national economy,” said Yousef Al Khaja, a trade union chairman at Bahrain Airport Services (BAS). “We fear that the services we offer

Bahrain Airport Services has expressed concern about a proposal to bring Gulf Air’s ground handling services in-house

will no longer be required from our biggest client and we will not need so many Bahraini employees.” Under the proposal, Gulf Air is looking to centralise

its passenger handling, clearing and catering. “It is not uncommon for supporting industries to lose clients at one end and find new opportunities at the other,” stated a Gulf

Air spokesperson. “Successful enterprises must continue to adapt themselves to the competitive environment and both Gulf Air and BAS are no exceptions to this.”

Middle East to receive 200 private Bad landing to blame for jets by 2015, predicts trade report Lufthansa Cargo crash BUSINESS AVIATION

Over 200 business jets are due to be delivered to Middle East consumers over the next five years, with the region seeing solid growth in the midst of a global slowdown. The estimate, by global consultancy firm Frost & Sullivan, also revealed that the Middle East garners around 6% of the global business jets market. In addition, another 400 units are expected to be ordered in the next eight years. “The region’s charter industry has seen significant growth in the recent years to its present value of US$500 million, as demand for luxury

private charter jets and services continue to rise as a result of business strategy revamps, mergers and acquisition among global companies,” stated Biju Jayaraaj, chief executive officer of Artaaj, who was speaking in advance of the forthcoming Big Boys Toys exhibition, which is taking place in Abu Dhabi next year. While the global market has slowed, penetration in the Gulf region remains high in comparison. Business advisory firm AlixPartners predicted last month that 746 were likely to be delivered worldwide in 2010, with around 816 in 2011 and 989 in 2012.

The Middle East is outperforming the world in terms of business jet deliveries

September 2010

AIRFREIGHT OPERATIONS

The Lufthansa Cargo plane crash in Riyadh was caused by a bad landing, the first results of a Saudi Arabian investigation have shown. “When landing at King Khaled International Airport, the aircraft struck the runway, which destroyed the undercarriage and caused it to slide off the track. The impact caused a fire in the aircraft,” said Abel Rahman Bukhari, director general of safety at Saudi Arabia’s General Authority for Civil Aviation. A probe is being carried out by aviation officials from Saudi Arabia, Germany and the US into the incident, which occured at 11.38am on 27th July 2010. The investigation team is still collecting evidence at the site and have recovered the MD-11 aircraft’s black boxes, Bukhari added. The plane, which was delivered in 1993 and taken over by Lufthansa Cargo in 2004, had been carrying

Investigation continues into KSA crash

around 80 tonnes of freight from Frankfurt in Germany to Riyadh, then Sharjah in the UAE. The two-man crew, consisting of a 39 year-old captain and 29 year-old first officer, were able to escape with slight injuries. “Lufthansa Cargo is cooperating closely with the authorities in Riyadh and will do its utmost to help clarify the reasons for the accident,” stated an official from the European cargo operator. www.arabiansupplychain.com

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NEWS UPDATE

REVEALED:

Middle East Guide to Eid flight prices New research shows that prices on the Gulf’s most popular routes vary by over 360% in some cases.

MARKET REPORT

Return flights on the Middle East’s most popular routes over the busy Eid holiday period vary from carrier to carrier by more than 360% in some cases, with long-haul routes reporting the biggest variation, a recent study by Aviation Business has found. The investigation surveyed a total of 30 airlines flying on the Middle East’s top five busiest routes over Eid alFitr. The biggest variation September 2010

was observed on the DubaiBangkok route, where the difference in prices between the cheapest and most expensive carriers was $1742, or 362%. The other routes surveyed were Dubai-London, DubaiNew York, Dubai-Singapore and Dubai-Johannesburg. The flight prices were for return flights on September 9th and 12th, looking for the cheapest flights available on the airline’s own websites on

August 19th and included all taxes and charges. The Middle East’s busiest route, according to a UBS study earlier this year, is Dubai-London, which last year represented 17% of the combined capacity of all the top 20 international routes from the region and accounted for a total average of 1141 flights per week. The cheapest available fare to London over Eid was with British Airways (BA) at

$613.94, followed by Virgin Atlantic ($627.56) and Qatar Airways ($696.62). The most expensive was Lufthansa, which was $1401.24, around 128% more expensive than the British Airways flight. There were similar differences on the other routes, with the long-haul flights proving even bigger varieties in rates. American Airlines’ $885.10 price tag for a return Dubai-New York flight was 308% cheaper www.arabiansupplychain.com

NEWS UPDATE

than Jet Airways, which cost $3856.57. To Singapore, Royal Brunei was deemed best value with $679.29, while Thai Airways was 290% more expensive on $2653.18. Heading to Johannesburg, prices varied from $695.62 by booking with Ethiopian Airlines to $2462.60 on Swiss,

a difference of 254%. The difference in fares is down to basic supply and demand and how different airlines prioritise yield or capacity, explained Mark Reed, general manager of Arabian Pacific Travel and Tourism LLC. “Some airlines have seat sales and deals, while others

COMPLETE GUIDE TO SEPT EID AIR FARES An Aviation Business study surveyed 30 airlines flying on the Middle East’s top five busiest routes over the Eid holiday period. See the full guide to the costs here. DUBAILONDON British Airways - $613.94 Virgin Atlantic - $627.56 Qatar Airways - $695.62 Gulf Air - $714.68 Austrian Airlines - $774.58 Royal Brunei - $801.80 Emirates Airlines - $826.31 Etihad Airways - $1022.34 Air France - $1163.91 KLM - $1180.25 Royal Jordanian - $1319.10 Lufthansa - $1401.24 DUBAINEW YORK American Airlines - $885.10 Virgin Atlantic - $962.44 British Airways - $1030.50 Qatar Airways - $1163.91 Continental Airlines $1413.40 Lufthansa - $1560.40 Emirates Airlines - $1585.92 Delta Airlines - $1610.42 Etihad Airways - $1634.92 Air France - $1689.37 KLM - $1724.77 Royal Jordanian - $1855.45 Austrian Airlines - $2032.42 Turkish Airlines - $2727.78 Jet Airways - $3856.57 DUBAISINGAPORE Royal Brunei - $679.29 Jet Airways - $703.79 Emirates Airlines - $758.24 Singapore Airlines - $807.25 Qatar Airways - $858.98 Cathay Pacific - $954.27

British Airways - $1604.97 Turkish Airlines - $1865.97 Thai Airways - $2653.18 DUBAIJOHANNESBURG Ethiopian Airlines - $695.62 Kenya Airways - $740.00 KLM - $752.80 Qatar Airways - $807.25 South African Airways $954.27 Emirates Airlines - $1003.28 Jet Airways - $1112.18 Etihad Airways - $1240.14 Delta Airlines - $1493.35 British Airways - $1653.98 EgyptAir - $2144.05 Turkish Airlines - $2350.70 Swiss - $2462.60 DUBAIBANGKOK Qatar Airways - $480.54 Jet Airways - $646.61 Etihad Airways - $706.51 Emirates Airlines - $722.85 Oman Air - $760.96 Gulf Air - $789.55 Cathay Pacific - $997.83 Singapore Airlines - $1049.56 British Airways - $1643.09 Turkish Airlines - $2161.19 Thai Airways - $2223.01

NB: Prices are return fares available from September 9th and 12th on Wednesday August 19th, according to the airline’s websites and include all taxes and charges.

decide to keep the yield higher and possibly risking flying with less capacity, but with higher fare paying passengers,” he said. “Some airlines release specials later to the market, for example to try and capture some higher yield and then lower it to tempt people to buy only if required. The airlines try to balance these things to meet their revenue targets.” Sunil D’souza, regional travel manager for the UAE and Oman at Kanoo Travel,

the largest travel management company in the Middle East, said the difference in longhaul routes was down to the fact that low cost airlines rarely enter this market. “With the budget carriers in the skies, the prices have definitely come down, again budget carriers are only short to medium haul, for longer routes that you have pointed out, legacy carriers will charge a premium as they see not much of a threat from low cost/budget carriers.”

Some airlines have seat sales, while others decide to keep the yield higher and possibly risking ﬂying with less capacity, but with higher fare paying passengers Mark Reed, Arabian Pacific Travel and Tourism

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September 2010

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Etihad Airways Turkish Airlines Emirates

Etihad CEO slams ‘racist’ plane crash email Etihad CEO James Hogan has hit back at a viral email which purports to show one of his airline’s planes smashed against a wall during testing in France, calling it “racist” and “unfounded.” The anonymous email, which has circulated widely on the internet since an incident in 2007 when a plane bearing the Etihad livery crashed at speed during an engine test, makes repeated reference to the shortcomings of the Arab testing crew. “The images of the Airbus A340-600 involved in the accident in Toulouse have repeatedly been distributed via email and blogs, often with a range of comments disparaging Etihad and – in some cases – making unfounded and racist remarks about the skills of Middle Eastern pilots,” stated Hogan, who has previously declined to comment on the issue. “In fact, no Etihad staff had anything to do with this accident. It happened before we had taken delivery of the aircraft, during testing by the manufacturer.” It is understood the accident occurred during the final stages of aircraft testing by manufacturer Airbus - ahead of delivery to Etihad - when the engines were engaged without the ‘chocks’ (wooden or rubber stoppers designed to prevent the wheels moving) in place. “It is very frustrating to see the same emails circulating over and over again, with the same wrong claims when the truth is that Etihad has an impeccable safety record, and the standards of Middle Eastern carriers and aviation professionals are as good as anywhere in the world,” Hogan added.

Qatar Airways Air India MOST POPULAR HEADLINES

1 Turkish Airlines grounds ‘fat’ flight attendants

2 Muslim women video

causes airport controversy

3 Qatar Airways pilot

‘breaks India airport rule’

4 BA takes legal action

against Dubai employee

5 Saudi airline pilot refuses

to fly plane at Indian airport

EDITOR’S CHOICES INDUSTRY REPORT

PHOTO SPECIAL

Top 10 International Airports on Twitter Airports from the United States and Europe have accumulated the greatest following on the popular website, but where are their Middle East counterparts?

Emirates lands first A380 at Beijing airport Executives from the Dubaibased airline hosted a series of celebrations in China last month to mark the country’s first scheduled Airbus A380 service.

AVIATION BUSINESS SPOT POLL

What is the future of first class travel for airline passengers in the Middle East?

48.5% September 2010

Demand has declined and first class will soon become history

42.8

There will always be market for first % aclass travel

8.7%

Airlines should prepare for growing demand for first class travel www.arabiansupplychain.com

BOEING COVER STORY

DREAM MAKER Boeing plans to revolutionise Middle East aviation viation with its much awaited 787 Dreamliner aircraft. aft. hen the famed US president Franklin Roosevelt cordially presented King Abdulaziz Al-Saud of Saudi Arabia with a DC-3 Dakota back in 1945, it began a long and prosperous love affair between the Middle East and global aircraft manufacturer Boeing. Since that date, the company has steadily developed its footprint on Arabian shores, capitalising on exciting growth within the region’s flourishing aviation industry. In modern times, this industry has soared to reach unprecedented levels of development and Boeing has kept pace with a customer list that reads like a who’s who in the aviation world, including the likes of Emirates, Etihad Airways, Saudi Arabian Airlines, Qatar Airways, Oman Air and Gulf Air, as well as a next-generation bevy of successful low cost carriers such as FlyDubai. And despite this solid track record, Paul Kinscherff, president of Middle East operations, believes this market can only get better. “Fullservice carriers have taken advantage of the good vision and strong leadership in the region,” asserts Kinscherff, who is also vice president of Boeing International. “Both the aviation industry and regional leaders have recognised the Middle East’s natural advantage, and that it is a market not yet fully served. There is definitely going to be continued strong growth, probably compared to the rest of the world, for the foreseeable future.” Speaking from the regional headquarters, based in the aviation metropolis of Dubai, Kinscherff is well-placed to have experienced both the highs and lows of the Gulf’s aviation industry in the throes of global recession. September 2010

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BOEING COVER STORY

Although not wholly impervious to the of the most comprehensive and respected is coming back into the market. These are effects of the crisis, the region’s aviation analyses of today’s commercial aviation all the real signs of the recovery that we industry fared considerably better than market, the manufacturer’s Current expected this year and should lead to an its continental counterparts in terms of Market Outlook (CMO) report is viewed as up-cycle in the next couple of years.” passenger traffic. As the rest of the world a strong indicator of the market’s progress. So what proportion of the huge number struggled with traffic growth figures But with the aviation industry still reeling for new commercial plane orders will sinking to -3.5% last year, the Middle East from the after-effects of the global recession, come from the Middle East in particular? defied convention and continued to grow is this figure overly optimistic? “Of course Kinscherff puts the figure down to an at a steady 11.2%. This year promises even there was clearly a downturn,” Kinscherff impressive $390 billion over the next 20 more. “The region was doing quite well, but acknowledges matter-of-factly. “If you just years, with demand for 2340 new planes. now that we are seeing signs of recovery for look at the orders for 2008-9, it slowed This means that whilst the Middle East is a the industry overall, it will do even better,” down. However, if you look at orders strong market for Boeing, it is by no means agrees Kinscherff. “For the first quarter of patterns for 2005-2007, Boeing alone had the leading segment. Instead, Asia-Pacific this year, the growth is probably 25% for over a thousand orders in each one of those and North America remain the top most years. So, financial crisis or not, it was robust regions for Boeing’s order sheet. In passenger traffic and 34% for cargo.” In particular, the Middle East holds inevitable that at some point there had to particular, the CMO predicts that by 2029, two strong aces up its sleeve. Firstly, with be a slowdown, because everyone was now almost 43% of all traffic will be to, from or networks spanning to Europe, Asia and taking the planes that they had ordered.” within the Asia-Pacific region, and it will According to the report, the driving force be the largest buyer of twin-aisle airplanes, North America, its geographical location is almost second to none. Secondly, the behind the figures is both robust growth and covering about 40% of the total demand. demographic dynamics of the region – in emerging markets as the global economy The Middle East does, however, particular, the globe-trotting youthful begins its recovery, coupled with the strong remain of one of the key markets for the workforce and the ever-present migrant demand for new and replacement aircraft, manufacturer, and Kinscherff is excited worker population - present huge including an increasing resilience in the about its future growth potential. Afterall, single-aisle market. Inspite of warnings with this growth comes the need for airlines opportunities for aviation growth. “The Middle East has become such on continued challenges for the aviation to have the most capable and fuel-efficient an important global transport hub, industry, such as the volatility of fuel aircraft, particularly those with very prices, Kinscherff remains optimistic long-haul capabilities. Furthermore, the connecting Asia through Dubai, that stablisation of the industry development of the underserved segment Qatar into Africa and will begin to take place this year of the market, namely the budget travel now South America,” and return to some growth market, which targets both the youth and enthuses Kinscherff. in 2011 and 2012. “We have migrant populations, holds much promise “It has strong Paul Kins cherff ’s e a decent breadth of orders, for medium-haul travel. The extraordinary economic growth s tima for Midea which means that the capital growth of the low cost carrier sector over and demographics st passen te favourable to traffic grow th in ger quarter o the first aviation generally. f 2010 The success of the key carriers in the region in the last ten years has actually been phenomenal.” For the manufacturer, of course, such aviation growth can only be good news. Boeing itself hit the headlines recently with its striking forecast of a US$3.6 trillion global market for 30,900 new commercial airplanes over the next 20 years. Often touted as one The Boeing 787 Dreamliner aircraft made a splash at this year’s Farnborough International Airshow

25%

BOEING REGIONAL PARTNERSHIP Boeing has been developing a number of relationships from its Abu Dhabi based oﬃce, including a strategic framework agreement with Mubadala Development Company last year. The agreement identiﬁes a number of areas for prospective collaboration, such as composite manufacturing, engineering, research and

www.arabiansupplychain.com

development, commercial maintenance, repair and overhaul, military maintenance and sustainment, pilot training and people development. The alliance is part of a longterm commitment to support Abu Dhabi’s plans to become a leading global aerospace hub of the future. “Mubadala Aerospace is emblematic of the aspirations of the region

to diversify economically and improve the opportunities for the population,” says Kinscherﬀ. “This relationship is about expanding at a strategic level for a very long time and helping both the UAE and Mubadala achieve its aspirations, as well as helping us to improve so it’s a good winwin long-term relationship.”

September 2010

BOEING COVER STORY

the past few years has reflected this, with six new carriers being set up regionally since 2003. “You have to look at where low cost carriers were 10 years ago, compared to five years ago and now,” explains Kinscherff. “They continue to grow market share globally, with the more mature markets in Europe and the United States showing very significant growth.” He points to FlyDubai, one of Boeing’s own customers, as a model of this success in the region. “FlyDubai has taken six airplanes so far, with another 44 on order, and they are really well-positioned in the region for long-term success,” he adds. The real focus for airlines in the future will be on ‘improving efficiencies’ – something of a buzzword in the airline world today. In such a competitive industry, with the dark cloud of fuel prices hanging overhead, airline success will be dictated by giving its customers what they want – lower fares, direct destinations and more choice. This in turn will have some effect on Boeing’s own order sheet. “The demand is going to evolve as our knowledge of the market evolves and our customer’s plans evolve with the market growth,” says Kinscherff. “The point is that we listened to our customers and we focused on efficiency and reducing costs in our manufacturing process, we focused on improving the passenger experience and applying the technology to make our airline customers successful.” The manufacturer is expecting to see a smaller market for large airplanes such as

LONGTERM FORECAST FOR THE MIDDLE EAST 20102029 • Forecast fleet requirements for 2010-2029: 2340 • Value of projected 2010-2029 fleet requirements: US$390 billion • Projected market for twin-aisle airplanes: 1000 (approximately 43% of total projected demand) • Projected market for single-aisle airplanes: 1100 (approximately 47% of total projected demand) • Projected market for large capacity jets: 170 (approximately 7% of total projected demand) • Projected market for regional jets: 70 (approximately 3% of total projected demand)

September 2010

under examination – with a number of options for its future improvement in terms of maintenance, engines, materials and technologies. “No decisions have been made yet, but this has consistently been coming into question,” Kinscherff says. “But we have to realise certain ed for efficiencies before its worth c a l p been fore the both our investment and e s have the airlines investment to order eing 787 b flight o t B s r e fi th make the commitment.” ’s t f airc r a the 747 class, with demand at 720 By tapping so closely into airplanes. However, this market still its customers needs, Boeing has remains an important revenue stream, ridden the economic recession wave largely made up by the replacement of and come through to the other side. The existing airplanes rather than additional company’s second quarter results, released growth. Fundamentally, Kinscherff believes just last month, show a ‘solid performance that the two most popular aircraft will be the across the company’s core businesses’. 737 class single aisle and its derivatives and Bringing in a revenue of $15.6 billion the 777 twin aisle long-haul due to airlines mainly split between its commercial and strategies to interconnect the continents military divisions, the company believes it of the world for long distances. “We are remains well position for growth in 2011 seeing increasing strength of the single and beyond in both markets. “Historically aisle (the 737 class) as well, particularly there’s been a longer relationship and with the growth in low cost carriers in the demand for commercial airplanes, but we region,” he adds. Boeing is also very proud are seeing increasing opportunities here in of the 777 aircraft as a technology leader the Middle East on the defence side and in its class for the foreseeable future. “Our are optimistic for increased market share strengths are our innovation, If you look over time,” says Kinscherff at the strengths of our fleet, and the 777 in One of the emerging military markets particular, we listen to our customers and for Boeing is from the region of Qatar, and put in the technology that enables them to the manufacturer has plans to expand its execute their strategies to connect point to Middle East presence with a new office in point,” says Kinscherff. the capital of Doha. Qatar Airways is an The newest plane on the block, the important customer of the manufacturer, 787 aircraft, is getting ready to fly for the and the region itself has recently taken first time with customers, and already deliveries of C17s for its defence services. holds much promise for the future. “This “We are going to continue to expand our is a high innovation, really revolutionary presence as we see the region’s market game-changing aircraft, with incredible evolution and growth,” says Kinscherff. efficiencies, that has proven popular here With so much promise for the at the region as well as globally,” enthuses manufacturer on the expanding Middle Kinscherff. “We have well over 800 orders East horizon, how would Kinscherff before the aircraft’s first flight - it is by far describe the vision of the manufacturer the most successful launch in history.” for the region? He laughs – clearly the list Aside from this, Boeing’s current focus, of aspirations for this ambitious company for now at least, is much more on the is rather long. “We would like to be the development of its existing aircraft, rather preferred aerospace partner to our Middle than bringing out new models. “It could East customers, both on the commercial easily be the next decade before we get and defence side,” he muses. “My vision is into new airplanes,” concurs Kinscherff. that we have vastly successful customers, In the interim, the manufacturer is talking tight partnerships, great collaboration, very closely to its regional customers continued growth as the market grows, and to find out what is important to them. a preferred relationship for both products Kinscherff confides that there has been and services across the region.” some evaluation of trade offs between new With such as positive outlook, Boeing single aisle aircraft versus re-engineering is already on track to make this bold vision the present aircraft. The 777 likewise is a reality.

800+

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UAE AVIATION COUNTRY REPORT

UAE AVIATION COUNTRY REPORT Heralded as the aviation capital of the Middle East, the United Arab Emirates has invested billions of dollars to emerge as a global industry powerhouse.

September 2010

www.arabiansupplychain.com

UAE AVIATION COUNTRY REPORT

he continued success of the United Arab Emirates aviation industry has placed a global spotlight on the country in the recent years, with brands such as Emirates, Etihad, Air Arabia and Dubai International Airport now considered household names. However, while these achievements have become more apparent in the past decade, the decision to invest and develop the aviation industry to fuel economic growth in the country was taken many, many years earlier. “The current success of aerospace activities within the United Arab Emirates is a result of undeniable foresight from the country’s leaders, who indentified the importance of air transport in their plans to create a modernised global country,” explains Abdul Wahab Teffaha, secretary general of the Arab Air Carriers Organisation (AACO). “It was due to this foresight that we have witnessed a mass investment into airlines and airports in each emirate, together with the type of generous open sky policies that were destined to bolster the speed of development and enhance the UAE’s accessibility from anywhere in the world.” The recent opening of Al Maktoum International Airport in the Dubai World Central complex is evidence

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enough that even a global recession has not stopped the country from pursuing its mass investment in aerospace infrastructure. While others around the world have tightened their purse strings, the UAE has pushed ahead at full speed, and the results have shown that the strategy is paying rich dividends. Whether it’s the record profit levels announced by Emirates this year, the fact that Etihad is expected to break even for the first time in 2011, or double-digit increases in passenger and cargo volumes at Dubai and Abu Dhabi Airport, there seems to be no stopping the UAE. According to Teffaha, a number of factors have contributed to the UAE’s status as a global aviation hub, starting with the famous adage of ‘location, location, location’, with the country sitting in the middle of a priceless crossroad between the east and west, north and south. Recent investments in infrastructure have also been pivotal, together with the introduction of super long-haul aircraft into airline fleets with the ability to connect any two points in the world with a maximum of one stop, supported by the aforementioned open sky agreements. Other factors include the ‘customer centric’ business models used by locally-based airlines, together with the world-class incentives to establish a business and operate in the country, and finally the

country’s (and particularly Dubai’s) emergence as a global financial centre, competing with Hong Kong, Singapore, London and New York. While these factors have helped to shield the UAE from the impact of the global recession to a large extent, especially in comparison to developed markets in Europe and the United States, the situation did cause a blow to the speed of development. In 2009, the UAE aviation market grew by 1.9% over 2008 in terms of RPKs, mainly attributed to the exceptional performance of AACO members (EK, EY and G9) in the UAE, which collectively grew by 17.1%. However, even with increased traffic, revenues suffered from the lower consumer confidence and purchasing power, decreasing in the UAE market by 15.3%. “The impact of the financial crisis on the UAE as a whole was one of the most severe in the Arab world, as foreign capital exited and the tourism sector plunged down,” continues Teffaha. “The challenge at this stage is making sure there is a healthy and stable economic platform to boost domestic demand, which will lead to a fast-paced recovery from the global downturn and support further growth in aviation. Of course, the country has always provided its aviation industry with all the support needed for continuous growth and there’s no reason to doubt this will continue for many, many years to come.”

Q1 2010 PASSENGER VOLUMES AT UAE AIRPORTS (BY MARKET SHARE)

Source: Airports Council International (ACI)

16.61% Abu Dhabi

0.16% Al Ain

73.25% Dubai

0.05% Fujairah

0.09% Ras Al Khaimah

9.84% Sharjah

September 2010

UAE AVIATION COUNTRY REPORT

UAE point-of-view What do some of the industry’s biggest names think about the UAE’s prospects?

AIRBUS MIDDLE EAST FLYDUBAI Habib Fekih, president

Ghaith Al Ghaith, CEO What are the key attributes that make the UAE a worldclass aviation hub? Our geographical location, excellent infrastructure and high quality airlines make the UAE a world-class aviation hub. Perhaps even more important is the commitment of a government with the vision and foresight to take advantage of these factors.

What are the key attributes that make the UAE a worldclass aviation hub? A number of attributes can be considered, starting with the country’s strategic vision, which has placed aviation as the driving force of future development. In addition, the geographical location is perfect and the infrastructure that has been developed is worldclass, such as airports, hotels, road systems and the metro. Finally, of course, is the UAE’s impressive airlines. How do you think the UAE can continue to develop its aviation industry? I would say the biggest need is finding the right talent, with a mixture of both locals and expatriates. For that to happen, a world-class education system is needed for undergraduates and postgraduates. There are training centres, but a

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lack of specialist institutes and universities that train technicians, engineers, pilots and managers. What is the UAE’s biggest aviation challenge? The biggest challenge is fueling the rapid growth in traffic, by bigger fleets and infrastructure, which comes back to finding the right calibre of people. Another challenge could come from protectionist action by other countries. How will UAE aviation look in 10 years time? I believe that the United Arab Emirates could become the world’s main hub for air transport in the next decade. However, this depends on some strategic decisions remaining to be taken in the fields of education, training, investment and cooperation with international companies.

What is the UAE’s biggest aviation challenge? The biggest barriers to the growth of air travel in the region as a whole are the lack of open skies agreements and visa restrictions. The UAE has one of the most liberal policies in the region and this is one of the reasons aviation here has been so successful. Easing these restrictions would result in higher traffic, with all carriers and all countries benefiting from the increased trade and tourism. Are aviation activities too centred on Dubai? Although Dubai has enjoyed a successful aviation industry for much longer than the other emirates, Abu Dhabi and to a lesser extent Sharjah and Ras Al Khaimah are pursuing expansion plans of their own airlines and airports. This is good for the future of aviation in this region. The opening

of Al Maktoum International Airport will further develop Dubai’s ability to provide first class aviation facilities and this will ensure the UAE can remain at the forefront of providing quality international aviation services. How will UAE aviation look in 10 years time? There is tremendous untapped potential, with almost one third of the world’s population living within a five hour flight radius of Dubai. This is a population which is only just beginning to experience the benefits of air travel and there is no doubt that more people will be travelling more often in years to come.

UAE AVIATION COUNTRY REPORT

MAXIMUS AIR CARGO ROYAL JET

Shane O’Hare, president and CEO

Fathi Buhazza, president and CEO What are the key attributes that make the UAE a worldclass aviation hub? There are a number of key attributes, but foremost is vision. The UAE is led by a focused and innovative leadership who are driven to excel. In addition, global shifts in economic circumstances have created opportunities, and many of these, both shortand long-term, promise to be in the Middle East. Another key attribute is, of course, location. The country is perfectly positioned between east and west, north and south to serve developed and emerging markets. How can the UAE continue to develop its aviation industry? We have the capital and vision, what we need now is a solid business model. The United Arab Emirates needs to work in unison to create a synergy and common goal. Any unnecessary

competition will undermine the common goal. I also believe there is a need to set benchmarks for UAE aviation and that operators have to comply with strict standards. In addition, we need to invest in Emiratis and develop a highly skilled workforce to meet the needs of the growing industry. How will UAE aviation look in 10 years time? We have the potential to become the strongest aviation environment in the world. If we look at Dubai World Central Al Maktoum Airport, for example, the project is phenomenal. With synergy, training and focus, I can say with assurance that the future looks bright for the UAE.

What are the key attributes that make the UAE a worldclass aviation hub? The UAE’s global recognition is the result of careful planning, hard work and large-scale investment in infrastructure. A focus from government authorities to develop the aviation sector has led to a well-organised, efficient and open regulatory environment. Combined with mutually beneficial bilateral agreements with several countries, these serve as catalyst for companies to operate in the country. As such, the UAE’s enviable location of being just a few flight hours away from key growth markets has resulted in strong growth for the aviation sector, including a fast-paced expansion of its local airlines.

as the creation of an attractive environment for aviation professionals need to be addressed. And indeed, efforts towards these segments are already ongoing. How will UAE aviation look in 10 years time? The UAE aviation sector will witness further development as both Abu Dhabi and Dubai would have further consolidated their position as major global aviation hubs. In addition, various support sectors, such as training, MRO and even manufacturing would become major business segments within the country’s aviation sector.

How can the UAE continue to develop its aviation industry? In order to sustain and even enhance this growth, developments in key segments like private aviation and maintenance, repair and overhaul, as well

RAS AL KHAIMAH INTERNATIONAL AIRPORT Roland Blaney, CEO What are the key attributes that make the UAE a worldclass aviation hub? The location of the country, together with the long-term vision of its leaders, has provided a tremendous boost. The growth of Emirates, and a bold entrance by Etihad Airways, as well as other low cost airlines has produced a selection of world-class products and services that match the mental pockets of both leisure and business travellers. September 2010

How can the UAE continue to develop its aviation industry? With air traffic expected to grow further, the country must continue to invest and participate in research and development for the latest technologies, while ensuring the brightest talents see the UAE as a destination where their expertise will be fully utilised. Simple regulations should of course be encouraged to ensure that the technology and project management companies feel

very enabled to deliver on time and on budget. How will UAE aviation look in 10 years time? I expect to see much ‘greener’ airports, with the right balance of being secure, operationally efficient but above all, a pleasant customer experience. For example, at RAK Airport, we are very focused on making sure that any developments incorporate the latest solar power technology. www.arabiansupplychain.com

UAE AVIATION COUNTRY REPORT

MIDDLE EAST BUSINESS AVIATION ASSOCIATION Ali Al Naqbi, founding chairman What are the key attributes that make the UAE a worldclass aviation hub? Most would agreement that one of the primary factors in the growth of the United Arab Emirates aviation industry is the country’s location, which is a natural asset over other markets around the world. In addition, we are blessed with excellent leadership and long-term vision, with continued investment and the creation of a healthy business environment to fuel the industry’s growth. How can the UAE continue to develop its aviation industry? The country has remained at the forefront of developments

in global aviation and must continue to lead the way in terms of innovation and development for all sectors of the industry, including business aviation. Are aviation activities too centred on Dubai? If you look at the business aviation sector in the Middle East as a whole, the bulk of activities have traditionally been in Saudi Arabia, which is the region’s biggest market. However the United Arab Emirates is the fastest-growing market and has managed to narrow the gap with Saudi Arabia’s market. Dubai has been pivitol in this growth, but Abu Dhabi has been too, especially with the launch of Al Bateen Executive Airport.

How will UAE aviation look in 10 years time? In terms of business aviation, there will be a continued increase in the number of companies that are operating in the sector, which will be supported by growing demand. So the future is very bright. Looking even further ahead, there is a debate in the industry that there will be two models for flying in 20 years. The first is low cost or economy model, and the second is business aviation. This is because the the cost of business aviation will decrease to a level that is acceptable to a larger number of customers.

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September 2010

UAE AVIATION COUNTRY REPORT

SITA Roger Nakouzi, sales territory director What are the key attributes that make the UAE a worldclass aviation hub? The geographical location of the UAE has allowed it to become a central aviation hub, where east meets west. Throughout the past 20 years, the UAE has strived to capitalise on its geographical potential and, through major investments in infrastructure and technology, as well as the implementation of world-class standards, laws and regulations, the country now enjoys a prestigious position in the global aviation industry. How can the UAE continue to develop its aviation industry? Investments in the UAE aviation sector are projected to reach US$68.1 billion by the end of 2010, according to the General Civil Aviation Authority (GCAA). This includes the development of airports and aircraft

old civil aviation code. This initiative comes in line with the numerous agreements signed on a local, regional and international level.

purchases, together with technological advancements in the fields of surveillance, navigation, communication, and take-off and landing. In a country that considers its civil aviation industry a main indicator of economic progress and superiority, the GCAA is also striving to update some of its relatively old aviation laws, including its 20-year

Are aviation activities too centred on Dubai? Trade statistics are clearly indicative of the fact that Dubai remains the leader in the number of aviation activities. However, every emirate is growing in their own right and taking different steps to differentiate themselves on a local and regional level. As an example, while Dubai is specialising in cargo, Abu Dhabi is aiming to specialise in private aviation through Al Bateen Airport, while Al Ain airport is taking a different nature â&#x20AC;&#x201C; one which will support investments in the manufacturing industry. How will UAE aviation look in 10 years time? The country will become a prime international aviation

hub, a serious replacement to the existing European hubs such as Heathrow, Frankfurt and Paris. It will also become the fastest hub between east and west, having Emirates Airlines and Etihad Airways as two major airlines with a total of 400 aircrafts. There will be three major airports, Abu Dhabi, Dubai International and Al Maktoum, interconnected with a fast railway, having a total capacity of more than 200 million pax, equipped with technology that focuses at facilitation while securing the borders of the country. I predict one air traffic control for all the airports in the country, while two major load share control centres will operate and maintain the special airport systems. Eventually, with no doubt, the UAE aviation industry will certainly aim at providing the highest level of customer satisfaction, a great travellerâ&#x20AC;&#x2122;s experience.

RUS AVIATION Saleh Al Aroud, managing director What are the key attributes that make the UAE a worldclass aviation hub? I believe that a world-class aviation hub must have an excellent and strategicallylocated position, together with world-class infrastructure and highly-skilled personnel. The success of the UAE is down to the fact that the country has all three of these factors.

from combining the strengths of the various emirates to create one powerful entity.

What is the biggest aviation challenge for the UAE? The biggest challenge is the aviation activities that are taking place in surrounding regions. Countries that have traditionally relied How can the UAE continue on the UAE are now to develop its aviation developing their own industry? facilities and successful To further strengthen its airline networks. already outstanding position, the country would benefit Do you think that aviation September 2010

activities are too centred on Dubai? The aviation industry has grown as whole with the support of the General Civil Aviation Authority. However, due to the short distances involved and economical sense, it would be beneficial if these activities would be combined. How will UAE aviation look in 10 years time? In ten years, we will see Dubai World Central as the biggest airport in the world. In addition, I believe there is potential for some of the UAE carriers to merge their operations.

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FLIGHT SUPPORT SERVICES

he breadth and diversity of services on offer under the umbrella of flight support services is impressive. It starts with your standard route planning, flight permission and landing permits to on-the-minute weather forecasts. Add to the equation MRO services, ground co-ordination and refuelling and you end up with a list of pretty much any support an airline could ever wish for. Whilst the giants of the airline industry have tended to shun flight support services, having enough internal personnel to deal with all these aviation add-ons, for many private and charter airlines outsourcing to a professional and reliable flight support provider can prove a godsend. Despite the global recession giving a considerable shake to the business aviation industry, many countries in the Middle East, including Saudi Arabia and the UAE, have continued to show an increase in the number of jets in operation. Experts have even predicted a speculative growth of the business aviation market to a very impressive US$800 million by 2012. This is all very exciting for the region’s flight support services, keen to flick off any debris from the global recession and emerge as the support mechanism of choice for the usual customers - private

owner operators, corporate aviation and a handful of small airlines. “Airlines do need such specialised services for flight support, especially considering the technological advances in data capture, dissemination and general communication capabilities,” says Ali Al

an of the Naqbi, founding chairman Middle East Business Aviation As these Association (MEBAA). “As ous data services require continuous update, there is a need for such ss aviation specialisation for business customers who havee limited

Support System Do flight support service providers really have a role to play in today’s aviation market?

September 2010

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FLIGHT SUPPORT SERVICES

It makes economical sense to completely outsource the flight support service Mohammad Saideh

manpower support for activities othe other than flying.” com Although these services can come with the baggage of legal responsibilit responsibility wit and liability issues or even conflicts with believe internal operating staff, Al Naqbi believes that outsourcing can provide real valu value for money overall. “If an agency ca can th develop and demonstrate that it has the best and state-of-art methods to addres address all these concerns, and is also prepare prepared thei to assume the risk and liability for their activities, then it is a welcome initiative, initiative,” he says. an As executive vice president and th chief commercial officer at the

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stop shop’ with a high level of customised service provision for all flight and ground handling needs. “More than ever this is the time where airlines, charter operators and business jet operators need such a service,” Saideh argues. “It makes economical sense to completely outsource the flight support service, and reduce the operations division head count as much as possible.” Palm Aviation claims to have been thriving alongside the growth in the region’s aviation industry. Other flight support providers, in Saideh’s opinion, have not been so fortunate. He maintains that the smaller, newer flight support companies have struggled to compete in the market. “It seems the life span and success of such small players is very limited, as major players focus on working with solid flight support companies,” he says. Others would disagree. Like Palm Aviation, Fly Aviation Services supports its clients to meet their aviation needs across the world. Unlike Saideh, however, Iles believes that smaller operators do have a lot to offer clients. Fly Aviation Dubai-based flight support solutions has found a strong demand of its services provider Palm Aviation, Mohammad in the Middle East and Africa over the Saideh fully appreciates the importance past 12 months, making up at least 25% of quickly laying any such client concerns of its business. “We have government to rest. “Most of our relationships are flight agencies requesting flights on few based on us delivering a continuously hours notice to difficult locations, cargo operators flying to CIS countries; and consistently superior product,” charter carriers rotating personnel he says. “Business ethics in Afghanistan and even and integrity are the most other flight support services essential fundamentals any companies coming to us for reputable flight support The amount of Fly assistance with permits,” says provider can offer.” Andrew Iles, commercial The aim of Palm Aviation’s global business manager at Fly Aviation Aviation, as indeed of that comes from Middle Services. “As well as speed other flight support services, East and Africa and reach, in which we score is to provide clients a ‘one

25%

September 2010

FLIGHT SUPPORT SERVICES

excellently, we set out to be different by being open with our clients,” he There is a need for such specialisation for continues. “This emphasises the forming business aviation customers who have of long-term relationships over the short term monetary gain.” limited manpower support In Iles’ experience, a substantial number of operators have actually been Ali Al Naqbi uncomfortable with the high charges of big companies, but reluctant to move due to the insecurity of changing provider. “We have repeatedly proved that we personnel with experience of all the provider based on these qualities. “Elite can provide big-name service without regulatory requirements are the key to Jets decided to use a flight support service the exorbitant costs,” he states. “Unless good flight support services as attention provider because it helps us to reduce an airline operation is of a certain scale, to detail comes with experience,” says Vito staff overheads and cost,” says Balkar. it does not make commercial sense to Gomes, founder and managing director “These services allow us to operate more dedicate resources for a function that can at ASM. The company offers a range of cost and time efficiently as the company be outsourced at much lower rates on a flight-related services from obtaining has a much larger network, buy in bulk purely variable cost basis.” Nevertheless, necessary approvals to ground liaison and has preferential rates with other third despite their difference in opinion, both and airline representation services. party providers.” In Gomes’ opinion, all airlines whether Saideh and Iles have to concur that the Over the last five years, Balkar large or small, require the use of has seen the growth in flight support real key to the success of a flight flight support, particularly services in line with the increase in the service operator in today’s to deal with unexpected or number of airlines, charter operators aviation market lies not in its last minute events such and aircraft owners. “However, the last size, but in the professionalism as airport diversions. two years have been challenging for all of the service it provides. The percentage of Elite Jets’ Furthermore, the use of parties as the demand has declined and A regular client of flight work task that is outsourced a reputed provider can slowed down in line with the economical support services, private to a flight support actually result in real cost situation worldwide,” he adds. “But there jet charter operator, Empire services provider savings for the airline. “The have been positive signs in the regional Aviation Group (EAG) firmly airline may be quoted higher aviation market, with an increase in agrees. With the highest of prices for services if they approach new airlines and operators which will, aviation standards expected from the private aviation industry, it is certainly an airport directly, due to having a lower assumingly, use such services.” understandable that the survival of frequency there,” says Gomes. “As we may Whilst companies such as ASM, Palm a flight service company depends on have more flights into that airport, our Aviation and Fly Aviation Services have consistently providing the highest level pricing for fuel and handling will be quite successfully ridden the economic recession of service possible. “With one of the comparative compared to the airlines.” wave to the other side, others have not As well as these cost-savings, been so fortunate. “We are strongly largest managed fleet of executive jets in the region, and a significant private independent flight support services can positioned for growth, although this may charter operation, we do use the services also come in very handy in the context not necessarily be mirrored by the market of flight support companies and we of credit handling, by paying for all the as a whole,” says Iles. “We witnessed the work with more than one,” says Paras necessary services on the ground upfront entry of a number of players, ourselves Dhamecha, executive director of private and invoicing the client afterwards. included, and the withdrawal of others.” jet charter operator at EAG. Dhamecha “A client has to factor in making credit As with any emerging market, a himself would never approach a flight arrangements with handling agencies good reputation for consistent, reliable support provider without international and civil aviation authorities worldwide,” and professional services has dictated certification. “We rely on these service explains Iles. “This can be quite the either the success or failure of new setcompanies to support our operations financial burden, with many ground ups. “Clients are doing their research worldwide, and quality and reliability agencies understandably requesting a and trials before committing to a service are absolutely essential for us to meet deposit or prior payment from unknown provider,” says Iles. “This is perfectly the demands of private aviation clients,” operators for their own security.” understandable and we welcome such For Ammar Balkar, CEO of another trial enquiries because we are positive he says. “We demand a high level of customised services for our clients’ premier executive aircraft management of our operational capabilities, as well as flights and ground handling needs, and and charter company, Elite Jets, all these our level of transparency.” this requires an experienced team at the factors, from reliability, professionalism Certainly for now, the future for and transparency, particularly in regards flight support services in the region operations control centre.” As one of EAG’s chosen providers, to third party billing are key to the success looks very promising indeed - at least for Aviation Service Management (ASM) has of a flight support services provider. His those providers who appreciate the high been steadily building up its reputation company itself outsources about 95% of its standards of service demanded by the based on this philosophy. “Well qualified work task to a sole flight support services discriminating private aviation world.

95%

September 2010

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PREVIEW AVIATION BUSINESS AWARDS 2010

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AVIATION BUSINESS

AWARDS

2010

The ultimate celebration of excellence in Middle East aviation is coming to Abu Dhabi in November

eading players from across the Middle East aerospace industry are set to compete for trade honours at this year’s Aviation Business Awards (ABA) in Abu Dhabi. The prestigious ceremony, which is organised by ITP Business, publisher of Aviation Business magazine and ArabianSupplyChain. com, will be hosted at the world-famous Emirates Palace Hotel on Tuesday 30th November 2010. “The Middle East is leading the way with billion dollar investments to improve airport facilities in various different countries. In addition, the region is currently producing some of the most impressive airlines on the planet, with success stories including Emirates, Etihad and Qatar Airways,” comments Walid Akawi, chief executive officer of ITP Publishing Group. “The Aviation Business Awards will make a welcome return in 2010 to recognise those companies that stand out from this exalted crowd. The nominees will once

September 2010

again include a combination of regional daily basis,” explains Fathi H. Buhazza, and international players that have gone president and CEO of Maximus Air Cargo above and beyond in terms of their recent and founder of Care by Air, who makes his industry contribution,” he continues. debut on the judging panel in 2010. The fourth annual Aviation Business Other participants in the judging Awards 2010 is sponsored by Abu process this year include Salem Dhabi-based Waha Capital and Rashid Al Noaimi (chief will include 15 categories in total, executive officer of Waha covering the airline, airport Capital) and Ali Al Naqbi and cargo sectors, along with (founding chairman of it o subm t a variety of supporting niches. the Middle East Business r e b m y Reme ations b Previous winners have included Aviation Association in m o n r yo u 010! 2 r e the likes of Dubai Airports, Air MEBAA). Further b o t 31st Oc Arabia, Emirates and Dnata. additions to the panel will be Nominations are now being invited announced shortly. online and will be assessed by a prestigious “Award ceremonies are important panel of experts, selected from within the in defining the benchmark for excellence Middle East aviation industry. and separating the outstanding achiever “Since its inception in 2007, the Aviation from the rest of the group,” adds Buhazza. Business Awards have emerged as a “They also provide recognition to the best leading event for the Middle East aviation performers in the field, while inspiring industry. Given the market challenges that others to emulate their success. This is our industry is facing on a global level at exactly what we’re hoping to achieve with the moment, this is a perfect opportunity to the Aviation Business Awards.” remember those companies and individuals For further information, please visit that continue to achieve excellence on a www.arabiansupplychain.com/avbawards

ATION NOMIN LINE DEAD

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PREVIEW AVIATION BUSINESS AWARDS 2010

JUDGING PANEL: AVIATION BUSINESS AWARDS 2010 SALEM RASHID AL NOAIMI

Chief executive officer, Waha Capital

Salem Rashid Al Noaimi is chief executive officer of Waha Capital, the Abu Dhabibased holding company with four subsidiaries - Waha Leasing, Waha Land, Waha Maritime and Waha Financial Services – which operate in big-ticket leasing, financial services, real estate and maritime. As CEO of the holding company, Al Noaimi is responsible for driving Waha Capital’s economic diversification strategy, including the launch of new companies, joint ventures and acquisitions. He previously served as deputy CEO of the company and chief executive officer of Waha Leading. Al Noaimi is a national of the United Arab Emirates and has a bachelor’s degree in finance and international business from the Northeastern University in Boston, USA.

ALI AL NAQBI

Founding chairman of the Middle East Business Aviation Association (MEBAA) After taking a keen interest in the aviation industry from a young age, Ali Ahmed Al Naqbi has turned his passion into a highly-successful career, with an initial focus on VIP air transportation and later onto business aviation within the Middle East. In his 20 years working with Abu Dhabi-based Presidential Flight as vice president of finance and administration, Naqbi gained experience in fields such as aircraft procurement, aircraft completion, airport facility development, aircraft sale and aircraft leasing. His contribution to Royal Jet as founder and managing director is another examples of his pioneering spirit and high professionalism. Naqbi is also founding chairman of the Middle East Business Aviation Association (MEBAA).

FATHI HILAL BUHAZZA

President and chief executive officer of Maximus Air Cargo and founder of Care by Air Fathi Hilal Buhazza is president and CEO of Maximus Air Cargo, the Middle East’s largest all air cargo company, and part of Abu Dhabi Aviation Group. He has steered the company’s growth since its inception and the airline now has a growing fleet that serves a variety of customers, including Etihad Crystal Cargo. Buhazza’s aviation career began in 1981 when he joined the UAE Air Force as a navigator on the C130 aircraft. Since then, he has played an active role in the development of the UAE aviation and logistics fields, including a stint as director of operations at Abu Dhabi Amiri Flight. Recently selected for the SCATA Hall of Fame Award, the UAE national has been hailed for founding ‘Care by Air’, which offers cargo services to relief organisations at cost price.

WATCH THIS SPACE! FURTHER ADDITIONS TO THE AVIATION BUSINESS AWARDS JUDGING PANEL WILL BE ANNOUNCED SHORTLY

AVIATION BUSINESS AWARDS 2010: WELCOME SPEECH BY AIR ARABIA CEO ADEL ALI Adel Ali, CEO of Air Arabia and one of the most powerful executives in Middle East aviation, has confirmed his support for this year’s Aviation Business Awards and will make a welcome speech at the ceremony at Emirates Palace hotel. “In just three years, the Aviation Business Awards has become a leading industry event that recognises and rewards local and regional players for their innovation and success. Air Arabia is extremely pleased to be involved in such a dynamic event, and we look forward to the ceremony this November,” states Ali. The relationship between the Aviation Business Awards and Adel Ali has been developed over the years, with the executive collecting a number of trophies for his own

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achievements, plus those of Air Arabia as the Middle East’s leading low cost carrier. He has brought over 26 years of strategic aviation, tourism and marketing experience to the airline since it commenced operations in October 2003. With a distinctive leadership style, vision and skilful management, combined with undeniable charisma, Adel has emerged as one of the industry’s best-known figureheads. He previously served as vice president (commercial and customer service) for Gulf Air, where he played a central role in the airline’s recovery. Before that, he spent over 20 years with British Airways, where he also held senior management positions, including general manager (Middle East and Africa).

September 2010

PREVIEW AVIATION BUSINESS AWARDS 2010

CATEGORIES: AVIATION BUSINESS AWARDS 2010 AIRLINE OF THE YEAR The growth of passenger volumes in Middle Eastern countries has created an unprecedented level of opportunity for Arabian airlines, together with international carriers that serve the region. This award is designed to honour the airline that has experienced a breakthrough period of success over the past 12 months, with evidence of new route launches, aircraft investments and upgrades on these routes, on-time take offs, customer loyalty programmes, industry alliances and market innovation.

LOW COST AIRLINE OF THE YEAR

BUSINESS AVIATION OPERATOR OF THE YEAR Awarded to the company that has consistently delivered world-class services within the Middle East business aviation sector during the past 12 months. Companies are asked to provide evidence of exceptional performance in the region, including examples of business innovation, aircraft fleet, interior design, range of services, financial performance, geographical coverage and future expansion plans.

CARGO OPERATOR OF THE YEAR COMMERCIAL AIRLINE Symbolising the Middle East’s growing status as a logistics hub, this award is dedicated to the cargo division of a commercial airline that has delivered a consistent, industry-leading service in the region over the past 12 months. Companies are asked to provide evidence of exceptional performance, with examples of network coverage, cost or time savings for end customers, technical innovations and responsible working practices.

CARGO OPERATOR OF THE YEAR CARGO / CHARTER AIRLINE Symbolising the Middle East’s growing status as a logistics hub, this award is dedicated to the independent cargo / charter operator that has delivered a consistent, industryleading service in the region over the past 12 months. Companies are asked to provide evidence of exceptional performance in the region, with examples of network coverage, cost or time savings for end customers, technical innovations, freight volumes and responsible working practices.

September 2010

With increasing demand for budget travel in the Middle East, the region’s growing community of low cost carriers has taken the market by storm in recent years. This award will honour an airline that has pioneered the low cost model over the past year, with evidence of route launches, aircraft investments and upgrades, on-time take offs, customer loyalty programmes, industry alliances and market innovation.

MIDDLE EAST AIRPORT OF THE YEAR This award will acknowledge the Middle Eastern airport that has experienced a breakthrough period of success over the past 12 months, with evidence of strong performance for passenger and cargo operations, relationship building with airlines and other partners, facility enhancements and market innovation.

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PREVIEW AVIATION BUSINESS AWARDS 2010

AIRCRAFT MANUFACTURER OF THE YEAR

TRAINING AND EDUCATION PROVIDER OF THE YEAR

Fleet expansions within the Middle East have outpaced the rest of the world in recent years, with billions of dollars being spent on new passenger aircraft, business aviation jets and freighters. This award will honour a manufacturer that has continued to support the growth of Middle East aviation, with evidence of solid performance in the number of aircraft being operated in this region, especially in comparison to similar models in the market, together with new sales.

With increasing demand for qualified professionals in Middle East aviation, this award recognises the achievements of a training provider or education institute that offers a flagship course or series of courses for the industry. Factors that will be taken into account include course structure, subject range and market response.

MRO SERVICE PROVIDER OF THE YEAR With Middle Eastern airlines operating a growing number of aircraft, the region has created a lucrative playing field for maintenance, repair and overhaul (MRO) suppliers, with a predicted spend of US$4.8 billion by 2019. This award will be handed to the service provider that has truly made a difference in a number of different areas, including a world-class service portfolio, facility investments and market innovations.

UNSUNG AVIATION HERO OF THE YEAR With a countless number of employees working ‘behind the stage’ to support the growth of Middle East aviation, this award will honour the unsung heroes of the industry. Employees are welcome to submit a nomination for employees that have continued to exceed expectations and deserve official acknowledgment.

TECHNOLOGY IMPLEMENTATION OF THE YEAR A number of technology innovations have been introduced in the aviation industry over the past 12 months to improve the efficiency of passenger processing, airport operations, aviation security and baggage management, amongst other areas. This award recognises a specific technology implement within the Middle East over the past year, with evidence that the implementation was smooth and resulted in limited service interruptions, that the project was successful in meeting end objectives, and the solution was unique for the region.

GROUND HANDLING PROVIDER OF THE YEAR This award will honour a leading player in the Middle East ground handling market, with providers asked to submit evidence of exceptional performance in areas such as cabin service (for example, cleaning the passenger cabin and replenishment of on-board consumables), catering (unloading of unused food and drink from the aircraft, and the loading of fresh food and drink for passengers and crew), ramp services and field operation services.

CORPORATE SOCIAL RESPONSIBILITY AWARD With growing pressure to operate within a socially responsible manner, this award is dedicated to the organisation that has taken responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. Nominees are invited from airlines, aircraft manufacturers, airports, MRO specialists and others within the Middle East aviation industry.

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PERSONAL ACHIEVEMENT OF THE YEAR The Personal Achievement of the Year award will honour the achievements of a figurehead from the Middle East aviation industry, specifically for their work over the past 12 months. The winner is someone who has experienced a breakthrough year with their contribution to industry growth, while raising the benchmark for regional and global excellence.

HALL OF FAME AWARD The prestigious Hall of Fame category has been introduced to the Aviation Business Awards in 2010 to honour a leading and respected figurehead from the Middle East aviation industry. The winner is someone who has continued to make a strong and valued contribution to the industry’s growth over the years, while raising the benchmark for regional and global excellence.

September 2010

PREVIEW AVIATION BUSINESS AWARDS 2010

ONLINE NOMINATION: AVIATION BUSINESS AWARDS 2010 We have simplified the nomination process for this year’s Aviation Business Awards (ABA). All entries must be submitted online and can be made by the nominee itself, or a customer/ supplier/partner. The final deadline is Sunday 31st October 2010, after which all nominations will be collated and sent to the judging panel for their final votes.

STEP 4: Click on ‘Select Categories’ and pick the award you would like to nominate under

STEP 1: Log onto the Aviation Business Awards website: http://www.arabiansupplychain.com/avbawards STEP 2: Click on ‘Submit Nomination’

STEP 5: Enter nomination details, such as the name of the company or person that you are nominating STEP 6: Describe in 200 words or less why this nomination deserves to win. A sample entry is provided on the website for your reference STEP 7: Attach any supporting files or email larger files to avbawards@itp.com STEP 3: Enter your log-in and password details or register as a new user

September 2010

STEP 8: Click on ‘Submit’ to complete the process

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TOP 10 MIDDLE EAST AIRFREIGHT HUBS

Although the global recession had a negative impact on the Middle East airfreight sector, recent statistics from Airports Council International (ACI) have supported claims that a recovery is underway. To celebrate, Aviation Business takes a look at the top 10 airfreight hubs in the region.

September 2010

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TOP 10 MIDDLE EAST AIRFREIGHT HUBS

As the most successful airport in the Middle Eastâ&#x20AC;&#x2122;s growing portfolio of airfreight hubs, Dubai International (DXB) has been able to weather the global downturn a lot better than the majority of its counterparts around the world. According to the latest statistics from Airports Council International, DXB handled 2,123,299 tonnes of cargo in the 12-months ending May 2010. The impressive figures mark an increase of 16.5% compared to the corresponding period last year. Hosting regional and international passenger and cargo services for over 40 airlines, the airport is a central hub for airlines including Emirates, FlyDubai, Palm Aviation and Dubai Royal Air Wing.

There has traditionally been a battle for second position in the airfreight rankings between Sharjah International Airport and its counterpart in Abu Dhabi. However, statistics from Airports Council International (ACI) have confirmed that Sharjah is currently leading the race, albeit by a small amount. The airport handled 444,808 tonnes of cargo in the 12-months ending May 2010, which is around 16% more than the previous yearâ&#x20AC;&#x2122;s figures.

Operated by Abu Dhabi Airports Company (ADAC), the international airport in Abu Dhabi is considered the second largest in the United Arab Emirates, and one of the fastest growing in the Middle East. The facility is served by over 30 international and regional airlines, with its position as the home base for Etihad Airways playing a significant role in the recent growth of cargo volumes. In total, 413,510 tonnes of airfreight were handled between June 2009-May 2010, an increase of 15.7% compared to June 2008-May 2009.

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September 2010

TOP 10 MIDDLE EAST AIRFREIGHT HUBS

King Khalid International Airport in Riyadh in the highest entry from Saudi Arabia this year, after handling a total of 94,266 cargo tonnes between January and May 2010. The five-month figure is around 18.1% more than the corresponding period in 2009, which should be reason enough for the airport’s operator Fraport Saudi Arabia to celebrate, as it means a return to growth patterns after a knock from the global recession. Over 30 airlines have operations at King Khaled International, including Saudi Arabian Airlines, Nas Air and the now defunct Sama. Located on a small island north of the capital Manama, Bahrain International Airport is operated by the Civil Aviation Affairs (CAA) department. At present, around 30 regional and international carriers have operations at the facility, including the Kingdom’s own Gulf Air and Bahrain Air. The airport was nudged out of the top three in this year’s Middle East airfreight hub ranking, after experiencing a 3.1% decrease in cargo volumes during the 12-months ending May 2010. According to Airports Council International (ACI), around 341,979 tonnes of freight were handled over this period, falling short of record volumes that were celebrated by the CAA in years before the global recession.

While cargo volumes at King Abdulaziz International Airport have not increased at quite the same pace as King Khaled International Airport this year, the Jeddah facility has still achieved a healthy growth of 11.3% between January and May 2010 compared to the same period in 2009. Airport Council International (ACI) reports that 90,806 tonnes of freight was handled during this period, with a solid contribution from national carrier Saudi Arabian Airlines, amongst others.

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Located in the district of Farwaniya, Kuwait International Airport hosts a range of regional and international services for over 25 airlines, including the country’s own Jazeera Airways and Wataniya Airways. The facility will also serve as a central base for Kuwait’s forthcoming cargo airline LoadAir. In total, 211,386 tonnes of cargo was handled at Kuwait International Airport during the 12-months ending May 2010, marking an increase of 18% compared to the previous year.

September 2010

TOP 10 MIDDLE EAST AIRFREIGHT HUBS

With the growth of Jordan as a Middle Eastern logistics hub, it makes sense that the country’s biggest airport, Queen Alia International, would benefit from growing cargo volumes. The facility, which is a central hub for the likes of Jazeera Airways, Gulf Air and Jordan Aviation, handled 84,631 tonnes of cargo between June 2009-May 2010, according to statistics from Airports Council International. This represents an increase of 1.8% over the same period a year earlier.

Muscat International Airport, which was previously known as Seeb Airport, hosts a range of regional and international services for more than 15 airlines, including the country’s national carrier Oman Air. Millions of dollars have been invested to develop the facility in recent years, including the expansion of cargo and passenger terminals, which could help Muscat International Airport climb up the rankings and challenge the likes of Queen Alia and Kuwait International. Over the 12-months ending May 2010, it handled 80,398 tonnes of cargo, a considerable increase of 39.9% compared to the previous year. September 2010

The final entry in this year’s top 10, Beirut Rafic Hariri International Airport (known formerly as Beirut International Airport) serves the capital and largest city of Lebanon. The airport is a major aviation hub in the region, hosting over 50 passenger and cargo airlines from across Europe, the Middle East, Africa and the CIS, including Middle East Airlines (MEA). It handled a total of 74,971 tonnes of cargo during the 12-months ending May 2010, according to Airports Council International, which is a humble increase of 3.9% compared to the previous year’s figures.

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ASK THE EXPERT

SILENT TREATMENT

Question: How can airports in the Middle East adopt

the silent approach to improve their passenger experience? Expert: Majed Al Joker, Dubai Airports vice president, terminal operations A HISTORICAL VIEW ON THE USE OF PUBLIC ANNOUNCEMENTS AT AIRPORTS When it comes to public announcements at international airports, the prime objective is simply to remind passengers about the status of their flight and the various procedures. In addition, there are announcements that aim to create more public awareness about the airport and its various facilities or for sharing general information. In short, airport announcements are reminders and a way to create general awareness. They play an important role in ensuring that operations at the airport remain smooth at all times.

THE OVERALL IMPACT OF AIRPORT ANNOUNCEMENTS ON PASSENGERS According to industry research, a higher number of announcements and repetition tends to create a noisy atmosphere in airports and affects the comfort of passengers. Most importantly, a higher frequency will translate into less attentive passengers. Repetition of announcements also tends to make passengers switch off from the actual announcement they are waiting to hear. INTRODUCING A NEW APPROACH AT DUBAI INTERNATIO INTERNATIONAL AIRPORT Earlier this year, a new initiative was introduced at Dubai International Airport to significantly im improve the ambiance, both inside and outside outs of the facility. The ‘silent airport’ proj project was designed to dramatically curtail curtai the number of public announcements and while we previously announc had 2000 announcements per day, there has been a 70% reduction since the initiative was st started, with 600 daily announcements n now in place. REASONS FOR FO A POLICY CHANGE Despite the comfort com and ease that modern airport airports and airlines have on offer, travelli travelling can be tiring and not all that comfortable co depending on so many man different factors. Airports and airlines are therefore oon the lookout for any adjustm adjustments that can add to cust customers’ comfort. By red reducing the number of aannouncements we are ccreating a pleasant airport environment which eases the pressure and keeps each of our customers happy.

September 2010

THE IMPORTANCE OF MAINTAINING EFFICIENCY LEVELS AT THE AIRPORT While we have reduced the number of announcements, we realise that our passengers need to be updated in time on the status of their flights and facilities available at the airport, as well as proving them with guidance on procedures and new regulations. The idea is to reduce noise pollution without sacrificing on timely update of information. Striking that balance requires a number of different factors, such as improved flight information display systems, deployment of customer service staff across the airport, and equipping information counters with proper information to deal with any kind of passenger enquiry. Following the success of our first phase in this strategy, we are now studying to move into the next phase, which will involve even more reductions in announcements. SUPPORT FROM OUR PARTNERS Dubai Airports has worked closely with the airlines before implementing our silent airport initiative. We have conducted numerous surveys and trials, and took the feedback provided by airlines extremely seriously as a means to improve our programme. The passenger response has also been very encouraging, and our communication with a cross section of our customer profile has been excellent. FOLLOWING THE DUBAI EXAMPLE Each airport has its own strategy, but we believe the silent airport initiative is positive and should be followed elsewhere around the world. It is in the interest of airports to think of new ways to increase the comfort of passengers; the best possible customer service and excellent customer experience is what makes airports successful in the long run. www.arabiansupplychain.com

AIRLINE INCIDENT REPORT

Gulf Air pilots handle technical problems on Abu Dhabi ﬂight DATE: 3rd August 2010

Gulf Air has conﬁrmed a technical malfunction onboard one of its Embraer ERJ-170s during a ﬂight from Abu Dhabi to Bahrain. The incident occurred during the approach into Bahrain International Airport on 1st August 2010. “The captain took the precautionary measure of shutting down one engine and requesting a priority landing. The aircraft landed safely, taxied to its stand and the passengers disembarked normally,” stated a Gulf Air spokesperson. ‘Miracle’ survivors after Boeing 737 crash lands DATE: 16th August 2010 The survival of 124 passengers and six crew members on a Boeing 737-700 has been described as “a miracle”, after the aircraft crash landed in Colombia and broke into three pieces. The plane, operated by Aires, was travelling from Bogota to San Andres Island when it arrived in the middle of an electrical storm. Pilots landed the B737 around 80 metres short of the runway, resulting in the aircraft breaking apart and killing one passenger.

Bomb hoax reported on Jet Airways ﬂight to Kuwait DATE: 20th August 2010 A bomb hoax forced Jet Airways to make an emergency landing in Muscat. The Boeing 737-800 was en route to Kuwait with 152 passengers when a passenger told crew that there was a bomb on board. “As soon as the crew members got the message, they had to land at the nearest airport, which was Muscat,” commented Riyaz Kuttery, country manager of Jet Airways. “The airport security and special security took control of the aircraft, immediately after landing. All passengers were disembarked, while the plane and baggages were thoroughly checked. But no bomb was found on board.” The passenger who made the hoax claim was taken into custody and the plane was able to depart from Muscat again.

Emirates plane in rejected take-off at Dubai airport DATE: 8th August 2010 Emirates has blamed a ‘technical issue’ for the rejected take-off of a Houston-bound flight at Dubai International Airport. The incident involved one of the airline’s Boeing 777-200s, which slowed safely after a rejected take-off at high-speed, resulting in several of the plane’s main gear tyres being deflated. A replacement Boeing 777-200 departed from Dubai around 8.5 hours later. “Emirates regrets any inconvenience to its valued customers, but the safety of its passengers and crew is of paramount importance and will not be compromised,” the airline stated to Aviation Business.

Qatar Airways pilot ‘breaks airport rule’ in Trivandrum DATE: 10th July 2010 Indian immigration officials were forced to track a Qatar Airways pilot in Kerala last month, after he was accused of breaking immigration rules. The pilot – a Bangladeshi national – landed his flight at Trivandrum International and left the airport on route to a hotel. However, according to a media report, pilots from countries such as Pakistan, Bangladesh, Iran and Sri Lanka are not allowed to venture out of Indian airports, but must stay inside retiring rooms under strict security cover. Police officials confirmed the pilot was escorted back to the airport and sent back on another flight.

Saudi airline pilot refuses to fly plane from Amausi airport DATE: 22nd August 2010 Saudi Arabian Airlines was forced to delay a Jeddah-bound flight by eight hours, after a pilot refused to fly the aircraft due to health concerns. Flight SV881 was scheduled to depart from Amausi Airport, near the Indian city of Lucknow, with 284 passengers on board. However, the pilot reported uneasiness and refused to fly. He was later driven to a local hospital. Passengers were taken to the terminal waiting room, while a second pilot was drafted – the same pilot that had flown the plane from Jeddah to Lucknow and needed an eight-hour rest, according to media reports.

Work with the aviation safety experts UAE: +971 (50) 661 7487 UK: +44 (0) 870 4607 406 www.avisa-gulf.com info@avisa-gulf.com

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September 2010

AVIATION DATA

AVIATION FACTS & FIGURES A SUMMARY OF LATEST INDUSTRY STATISTICS FROM AROUND THE WORLD

Every month, Aviation Business provides its readers with the latest information from a variety of trusted sources, including Airports Council International (ACI), Emirates SkyCargo and FlightStats.

nternational passenger numbers grew by just over 10% at airports worldwide in May 2010 compared to May 2009. In the Middle East, it was business as usual with Muscat (Oman) leading growth at 26% followed by Beirut (21%), Dubai

CITY/COUNTRY

(14%) and Abu Dhabi (12%). As expected, the significant decline of air traffic in April caused by the Iceland volcano eruption did not have a lasting effect, and air traffic has resumed the growth path it had been following since August 2009.

MAY 2010/2009 PASSENGERS

CARGO

% CHG

YEAR-TO-DATE MAY 2010/2009 MOVEMENTS

% CHG

PASSENGERS

% CHG

CARGO

% CHG

(tonnes)

MOVEMENTS % CHG

% CHG

MIDDLE EAST ABU DHABI UAE

829,928

12.2

39,221

19.4

9678

12.4

4,275,324

12.7

174,729

21.6

45,806

13.0

BAHRAIN BAHRAIN

694,787

3.1

27,749

-0.5

8873

7.3

3,617,744

4.3

139,674

-0.5

44,092

6.2

BEIRUT LEBANON

420,212

20.6

6832

8.5

5241

-2.4

1,931,758

18.7

31,338

8.2

24,840

6.7

3,654,717

13.6

195,221

31.7

25,790

11.2

18,870,253

17.8

918,329

27.1

125,248

9.5

KUWAIT KUWAIT

640,600

2.4

17,609

13.3

7935

-0.3

3,295,922

7.2

87,354

17.6

39,705

3.1

MUSCAT OMAN

461,677

26.1

8742

77.8

5976

29.2

2,235,051

29.8

39,586

67.7

27,509

31.7

SHARJAH UAE

522,700

10.9

27,370

-23.2

5804

8.0

2,554,590

9.6

172,175

15.7

28,093

9.1

ACCRA GHANA

127,959

13.9

4712

16.6

2268

45.5

600,229

15.2

18,731

-7.6

10,783

27.4

1,207,634

13.6

25,145

1.5

12,282

7.1

6,057,808

13.0

132,637

9.3

61,071

9.3

596,701

6.4

n/a

7685

5.5

3,325,711

4.3

n/a

38,958

-0.2

CASABLANCA MOROCCO

560,532

11.9

4671

-6.2

6559

10.9

2,686,516

13.7

21,703

-15.4

30,836

12.7

DAR ES SALAAM TANZANIA

109,291

9.6

1374

-4.4

4074

4.2

568,184

9.8

6345

-14.4

22,292

4.6

JOHANNESBURG S. AFRICA

1,432,596

4.4

30,150

57.8

17,570

3.2

7,163 045

3.0

124,321

23.8

83,585

1.0

DUBAI UAE

AFRICA CAIRO EGYPT CAPETOWN SOUTH AFRICA

MARRAKECH MOROCCO

322,700

16.7

-42.6

3194

11.3

1,408,387

10.1

441

n/a

14,114

12.1

SHARM EL SHEIKH EGYPT

713,224

21.5

n/a

5353

20.3

3,645,252

24.0

n/a

26,802

19.5

BANGKOK  THAILAND

2,622,218

-10.1

110,338

31.5

21,093

-1.7

18,106,039

12.4

524,455

39.1

112,832

7.2

BEIJING CHINA

6,165,290

17.4

129,587

9.6

44,142

6.6

28,951,795

11.7

608,674

11.7

209,167

5.7

MANILA PHILIPPINES

2,595,253

9.7

35,386

32.4

21,536

3.8

11,602,155

11.0

170,855

51.4

102,152

5.9 4.2

ASIA PACIFIC

MUMBAI INDIA

2,642,446

19.5

57,356

23.5

21,897

5.6

11,412,400

15.6

269,571

23.4

103,857

NEW DELHI INDIA

2,526,320

19.9

53,772

36.6

22,874

10.2

11,603,137

17.2

238,962

32.2

106,854

8.3

SINGAPORE SINGAPORE

3,389,972

21.6

155,350

14.5

22,610

12.3

16,614,377

16.7

739,321

16.9

108,138

9.7

SYDNEY AUSTRALIA

2,732,988

8.5

n/a

25,840

9.4

14,519,728

8.5

n/a

124,888

6.0

TOKYO JAPAN

5,340,645

8.3

59,284

0.5

28,574

0.3

25,341,083

3.2

297,673

-1.0

138,626

-0.1

FRANKFURT GERMANY

4,760,662

7.1

207,521

38.0

41,694

2.5

19,641,359

0.1

912,290

30.9

182,598

-2.8

LONDON HEATHROW UK

5,268,508

-3.0

142,568

35.2

38,431

-4.3

24,411,325

-4.3

618,749

21.7

180,057

-6.7

MADRID SPAIN

4,285,296

5.1

33,776

35.6

37,696

0.7

19,181,068

3.0

161,065

30.8

176,452

-0.7

MUNICH GERMANY

3,074,830

8.0

25,672

31.2

34,549

-1.9

12,604,111

0.6

107,591

20.6

150,364

-7.4

PARIS FRANCE

5,199,610

3.5

189,000

31.3

44,087

-4.2

21,892,826

-2.9

832,770

16.0

198,191

-8.9

ATLANTA

7,773,522

3.2

56,831

30.3

81,524

-0.2

35,321,214

0.9

262,303

21.8

388,934

-1.0

CHICAGO

5,794,650

3.6

125,262

51.9

75,615

7.7

25,937,954

2.4

552,817

39.9

352,286

3.9

DALLAS/FORT WORTH

4,839,667

2.5

54,612

23.6

54,971

3.0

22,453,548

1.1

268,908

19.7

266,307

2.8

LOS ANGELES

4,891,477

5.3

152,531

26.8

48,802

10.3

22,880,634

4.4

704,643

26.0

234,948

5.4

EUROPE

NORTH AMERICA

Passengers = total passengers enplaned and deplaned (transit passengers counted once). Cargo = loaded and unloaded freight & mail. Source = Airports Council International *Growth rate > 200% or < -50% due to extraordinary circumstances, i.e. war, social and political unrest, major sports events, new routes.

September 2010

www.arabiansupplychain.com

AVIATION DATA

EMIRATES SKYCARGO FUEL PRICE INDEX

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS

450

250000

06 August

413

25 June

410

200000

401

30 July

150000

391

09 July

370

379

100000

330

Index

100 = 53.5 US cents per US gallon

50000

FUEL PRICE INDEX

THE FUEL INDEX IS BASED ON THE AVERAGE PRICE OF AVIATION FUEL IN FIVE KEY SPOT MARKETS (ROTTERDAM, SINGAPORE, NEW YORK, US GULF AND US WEST COAST)

May 10

April 10

Mar 10

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sept 09

Aug 09

July 09

June 09

290

CARGO STATISTICS

THIS GRAPH REPRESENTS THE CARGO VOLUMES HANDLED AT DUBAI INTERNATIONAL AIRPORT OVER TWELVE MONTHS. CARGO IS MEASURED AS LOADED AND UNLOADED FREIGHT AND MAIL IN TONNES (SOURCE: AIRPORTS COUNCIL INTERNATIONAL)

13 Aug 10

06 Aug 10

30 Jul 10

23 Jul 10

16 Jul 10

09 Jul 10

02 Jul 10

25 Jun 10

18 Jun 10

11 Jun 10

250

AIRLINE ON-TIME DEPATURES PERFORMANCE AIRLINE

CODE

SCHEDULED

TRACKED

DEPARTED

DELAYS

CANCELLED

15-30MINS

30-45 MINS

ON TIME

45 MINS +

MIDDLE EAST AIRLINES EMIRATES

360

233

74%

ETIHAD AIRWAYS

181

60%

GULF AIR

135

133

87%

QATAR AIRWAYS

247

161

85%

ROYAL JORDANIAN

108

92%

SAUDI ARABIAN AIRLINES

442

44%

AFRICAN AIRLINES EGYPTAIR

256

200

199

71%

SOUTH AFRICAN AIRWAYS

152

84%

CATHAY PACIFIC

287

235

63%

QANTAS AIRWAYS

439

423

83%

SINGAPORE AIRLINES

243

202

87%

THAI AIRWAYS

233

182

84%

AIR FRANCE

1142

1006

1003

164

124

64%

AUSTRIAN

202

159

153

64%

BRITISH AIRWAYS

695

664

663

108

102

60%

LUFTHANSA

1052

995

990

143

78%

ASIA PACIFIC AIRLINES

EUROPEAN AIRLINES

NORTH AMERICAN AIRLINES CONTINENTAL AIRLINES

930

896

89%

DELTA AIR LINES

2443

2414

2397

231

128

346

71%

UNITED AIRLINES

1174

1171

1161

86%

*The information above is compiled by FlightStats and indicates depature ﬂight activity on 14th August 2010. In some cases, the information may diﬀer from numbers reported by the carrier. www.arabiansupplychain.com

September 2010

RECRUITMENT

TO ADVERTISE HERE CONTACT: Nick Lowe Tel: +971 4 210 8306 Email: nick.lowe@itp.com

MOVERS & SHAKERS Emirates E appoints Barry Brown as n vice president Australasia new E Emirates has appointed Barry Brown as vice p president for Australasia. The executive, who ooriginates from Sydney, has more than 23 years eexperience in the airline industry and will be responsible for Em Emirates’ commercial operations in both Australia and New Zealand. Prior to this appointment, Brown was chief commercial officer with Oman Air. He also held similar positions with SriLankan Airlines and Hazelton Airlines in Australia. “I am really excited to work with the team in this region as we continue to build on the success of Emirates and our commitment to both Australia and New Zealand,” stated Brown. “We have a lot happening over the next few months including the upgrade to the state-of-the-art Boeing 777-300ERs on key routes and the Emirates Melbourne Cup, a race which this year celebrates its 150th running.”

Q Qatar Airways hires former Amadeus e executive as India country manager Q Qatar Airways has announced the appointment oof Henry Moses as its new country manager for IIndia. The executive brings with him a wealth oof experience and knowledge that he acquired in travel management companies, global distribution systems and airline businesses in a span of nearly two decades. Prior to Qatar Airways, Moses was leading healthy market share growth for Amadeus in the India subcontinent, while he also spent six years with Malaysia Airlines.

N appointments revealed to coincide New w with launch of ARINC International Division A ARINC has launched a new international division to lead the company’s operations in Asia Pacific, E Europe, the Middle East and Africa, based in th the United Kingdom. Randy Pizzi (pictured), pr formerly vice president and managing director of ARINC’s Asia Pacific division, has been named vice president of the new international division. Meanwhile, Dave Poltorak, formerly vice president and managing director of ARINC’s EMEA operations for three years, and a 20-year veteran of the company, has been named vice president of international operations.

H Hareb Al Muhairi recruited as vice p president of UAE sales for Etihad Airways E Etihad Airways has recruited Hareb Al Muhairi in the new position of vice president for UAE sales. A graduate in political science and management, th the UAE national will be responsible for the development and implementation of the national airline’s sales strategy in the country. “The establishment of this senior position reflects the importance of our home market to future growth and success,” commented James Hogan, chief executive officer of Etihad Airways. “With a return to strong passenger growth, we are intensifying our focus on sales performance, building stronger partnerships in the trade and corporate segments. Hareb has made a significant contribution to Etihad since joining us in 2004. His knowledge of the business and his deep understanding of the United Arab Emirates market, which is our most important market, will be invaluable.”

A Amadeus MENA appoints new head ffor airline business group in Dubai T Technology specialist Amadeus has appointed M Mario Segovia Sman as regional head for its aairline business group across the Middle East and N North Africa (MENA). In his previous role as Amadeus account manager, Sman was responsible for overseeing and maintaining successful relationship with Emirates, Etihad, Qatar Airways and Kuwait Airways. “Under Mario’s guidance, we are confident of continuing our position as the preferred technology partner to the Middle East’s aviation sector,” said Antoine Medawar, Amadeus MENA vice president.

A ARINC promotes Andy Hubbard to lead its EMEA operations from London it A Andy Hubbard has been appointed as managing d director of ARINC in Europe, Middle East aand Africa (EMEA). Based in London, he will m maintain a focus on airline customers, while respo expanding his responsibility to cover other business lines, including airport systems and security initiatives. “We look forward with confidence to the leadership he will bring to us in his new position,” commented Dave Poltorak, vice president of international operations for ARINC’s newly-formed international division.

Please email your ‘movers and shakers’ information to robeel.haq@itp.com P September 20 2010 010

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DEPATURE LOUNGE

TRADE

GROWTH

Celebrating its 25th anniversary of operations in the global aviation industry, Avtrade has found a loyal customer base in the Middle East and Africa, explains regional sales director Jamie Brooks.

What is the history of Avtrade in the global aviation industry? The company was established in 1985 as a global component service provider for the aviation industry. We have a range of specialist divisions in the fields of component support, engineering support and technical services, global logistics solutions and AOG support. Based on our core principal of providing high-quality customer service, Avtrade has built a global portfolio of more than 500 customers. How has the company been developed over the past 25 years? There has been a significant amount of growth in our size, as well as the range of services offered by Avtrade. For example, we moved into a new facility and formed our sister company Avtrade Leasing in 1995, which opened the doors for investment and support into new fleet types, such as the Boeing B747 and B757 aircraft. In the millennium, we ventured into component support for the Airbus A320 family and A330, together with investment in B767 material. Then in 2006, we increased our leasing options for the A340 and ventured into the new generation B737NG aircraft. Has the geographical reach of Avtrade also expanded over the past two-and-ahalf decades? Yes, our global expansion commenced in 2005, with the opening of overseas offices in Singapore, Russia, Canada and France. The objective was to meet growing demand around the world and develop Avtrade into a global brand. In the same year, we also moved into our purpose-built headquarters and logistics centre, which is near London Gatwick Airport. September 2010

What role has the Middle East played in this global expansion? The Middle East is a prominent player in global aviation and we want to establish ourselves quickly to take advantage of this fast moving market. Looking ahead, this region could represent more than 40% of our total revenue. Although the UAE is our main focus, the surrounding Gulf nations are also target areas, especially Bahrain, Saudi Arabia and Kuwait. What have been the companyâ&#x20AC;&#x2122;s major developments in this part of the world? There are several examples that highlight our commitment to the region, including alliances with JorAMCo in Jordan and Arabian Jets in Saudi Arabia. We also opened a regional Avtrade office in Dubai Airport Free Zone last year to support Boeing and Airbus operators, with a focus on legacy national carriers, right across to single VIP aircraft, especially in terms of charter operators that provide ACMI leasing in the Middle East and Africa.

What led Avtrade to open this facility in Dubai Airport Free Zone? Although we originally had a North African office, the increased demands of the Middle East region made it a straightforward decision to approve the opening of Avtradeâ&#x20AC;&#x2122;s Dubai facility. Having this regional facility gives us the presence and face we need to establish our brand and react to client requirements. Customers are regularly visited to develop the relationship and bolster confidence for both parties to trust each other. Do you face much competition from other companies in the local market? Competition is strong, but Avtrade has a number of strengths and unique qualities compared to our competitors. For example, we work very closely with clients on all personnel levels, from CEOs to logistics managers, which allows us to make decisions quickly, as we know our clients and their specific needs and requirements. What other challenges do you face on a business level in the Middle East? Avtrade is well established in Europe, the USA, Africa and the Far East due to facilities in these areas, which have been servicing the global market for the past 25 years. However, we are relatively new to this region and so we have undertaken a number of marketing activities to boost the Avtrade name and brand awareness. We also found that the process of opening a new facility has its challenges. However, all the inevitable teething problems have been ironed out and the facility is now up and running to the required levels to meet our clientâ&#x20AC;&#x2122;s high standards of service that they expect from Avtrade. www.arabiansupplychain.com

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