Via dubai english may 2018

Monthly Newsletter issued by Dubai Civil Aviation Authority

Inside DCAA RAK Civil Aviation 6 Department officials visit DCAA headquarters

Academy of Technical Training delegation visits DCAA Strategic partners honoured

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DCAA INTERVIEW

www.viadubaionline.com

Issue 60 May 2018

Airport Show:

Showcasing strength and efficiency Emirates successfully operates facility to maintain A380s

Muna Hadid

Journey towards achieving the goals of Government Excellence System

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Opinion Airports must develop non-aeronautical activities Angela Gittens

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Financially, airlines are doing better Alexandre de Juniac

ATM 26

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NASA to test unmanned ATM technologies Aircargo undergoing capacity and geographic expansion Airlines 27

Cargo & Logistics 30

Future of flight data management lies in Blockchain Technology 31

Our duty is to lay the foundation of progress for this country - and this is what we constantly try - because work is our nature and praise to Allah we have the means available.

Sheikh Zayed bin Sultan Al Nahyan

Message

from the President

Giving wings to growth

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etworking and promotion are two of the most important pillars of any business. Opportunities to get face-to-face with customers and potential future clients at the industry exhibitions and trade shows remain an incredibly valuable tool for developing businesses. Despite the digital revolution, trade shows remain an integral part of the marketing bouquet.

The UAE in general and Dubai in particular has an eventful calendar all year round.The country got the rights to hold the world’s third biggest gathering after Olympics and FIFA cup in Dubai in the shape of Expo 2020. Last year, Dubai World Trade Centre (DWTC) attracted 3.3 million visitors delivering stellar nine per cent growth. The region’s largest trade venue hosted 353 Meetings, Incentives, Conferences and Exhibitions (MICE) and business events.

Participants came from as many as 185 countries.

In the aviation domain, the emirate is home to Dubai Airshow and Airport Show, among others. The aerospace and airport show remains hit each passing editions. The Airport Show will be held this month for the straight 18th year with over 350 exhibitors from 90 countries, keeping up its position as the world’s largest airport industry event. The debut edition just had 90 exhibitors from 17 countries.

Ahmed bin Saeed Al Maktoum

businesses to communities. In the airport industry, getting updated with the latest innovation and technology is highly indispensable given the sweeping changes occurring each passing day.

Almost everywhere in the world, especially in the Middle East, North Africa and South Asia, airport developments are in a fast track mode. It has been estimated by CAPA that there are over 2,300 airport construction projects currently worldwide.

Airports have become a central component in urban and regional economic development. Having a vibrant and efficient airport is essential when trying to attract new

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

CONTENTS

Inside DCAA 06

RAK Civil Aviation Department officials visit DCAA headquarters

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7

Strategic partners honoured

Academy of Technical Training delegation visits DCAA

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

General Supervision Mohammed Abdulla Ahli Coordinator Hanan Al Mazimi Creative Manager Mohammed Al Jarouf E-mail: viadubai@naddalshiba.com Legal Disclaimer

The views expressed in the articles are of the writers and not necessarily belong to DCAA. We take all reasonable steps to keep the information current and accurate, but errors can occur. The information is therefore provided as is, with no guarantee of accuracy, completeness or timeliness.

The DCAA or Via Dubai does not warrant or assume any legal liability or responsibility for the quality, accuracy, completeness, legality, reliability or usefulness of any information. Via Dubai does not endorse or recommend any article, product, service or information mentioned in the newsletter. Any perceived slight of any person or organisation is completely unintentional.

DCAA Interview Muna Hadid

Journey towards achieving the goals of Government Excellence System

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

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Our Vision

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

Our Mission

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

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

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

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Message

from the Director General

For A Competitive Edge

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irports around the world are increasingly focused on having efficient operations, enlarged security and enhanced constituent services to meet the everincreasing volume of passengers and cargo.

No matter how sleek and contemporary its architecture and design, an airport is always going to be judged by its service standards and the capability to handle peak periods and irregular operations. The airport operators are working towards increasing productivity and profitability of their facilities.

Dubai’s two international airports are gearing up to serve up to 146 million passengers by 2025. It has been rightly said that we do not want an airport for Dubai, but we want Dubai to be an airport for the world. Looking to the future is embedded in the corporate culture of our government.

Our vision and strategic planning are aligned with the Dubai 2021 plan, which clearly outlines the road towards a smart and sustainable Dubai that holds a leading position in the world’s economy. Our strategic plan aspires to establish Dubai as an international aviation hub, and to ensure its airports are the safest, most advanced and innovative on a global level.

DCAA aims to increase its investment in the field of technology and research in order to develop services and procedures that ensure customer happiness and satisfaction.

Mohammed Abdulla Ahli

At this year’s show, we will be unveiling to the public several services. Our participation in the Airport Show is in line with our objectives of benefiting from the latest knowledge and expertise along with the best practices in managing air traffic growth.

Our active role in the success of the Airport Show also reflects our ambition to make Dubai the global aviation hub.

A time-tested platform to reach out to the world and the civil aviation industry is the Airport Show which is held annually in Dubai which is being supported by DCAA. The Authority has utilised the exhibition to showcase its various initiatives in the civil aviation domain, especially the smart applications and customer services. This exhibition, along with Dubai Airshow, among the two major exhibitions that we utilize to showcase our services, including e-Services to the world.

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Inside DCAA

RAK Civil Aviation Department officials visit DCAA headquarters A delegation from the Department of Civil Aviation of Ras Al Khaimah visited the headquarters of the Dubai Civil Aviation Authority (DCAA) to exchange knowledge and expertise on civil aviation activities in Dubai.

The visit was within the framework of mutual visits between government agencies to enhance relations and facilitate business procedures.

The meeting reviewed the tasks of airport and aviation safety management in relation to unmanned aircraft systems and the licensing procedures of helicopters.

The duties of the air transport department regarding the Dubai Group of Travel Agencies and the laws and regulations of consumer protection were also reviewed and

a number of topics related to civil aviation were discussed. Such visits aim to exchange experiences and learn best practices to provide services at the highest quality standards.

At the end of the visit, Saud Abdulaziz Kankzar, Executive Director of Air Transport and International Affairs, presented a commemorative plaque to the delegation.

Academy of Technical Training delegation visits DCAA

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he Dubai Civil Aviation Authority (DAAC) has received a delegation from the Academy of Technical Training , which provides training programmes in aviation security and safety, air traffic control and management of aircraft accidents.

Khaled Abdullah, Inspector of Aircraft Control, DCAA, made presentation on the nature of the work in the sector.

Earlier, he accompanied the delegation on a field tour at Dubai International Airport. The aim was to exchange experiences and learn best practices in the field of aviation safety and

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accident investigation and operational procedures. The visit comes as part of the ongoing cooperation between the

DCAA as a supporter of the Academy of Technical Training and national institutions in the field of civil aviation.

Inside DCAA

A champion of humanitarian initiatives

Strategic partners honoured

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is Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, honoured the shareholders and strategic partners at a ceremony held at Dubai Airport Building 3 in recognition of their contributions to Dubai Airport’s recent achievements.

Through a special award given by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

On behalf of HE Mohammed Abdullah Ahali, Director General of the Authority, Mohammed Abdullah Lengawi, Executive Director of the Aviation Security and Accident Investigation Sector, received the Certificate of Honour on this occasion.

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his month, the UAE will be observing the death anniversary of the UAE’s Founding Father, Sheikh Zayed bin Sultan Al Nahyan. It was on the 19th day of the holy month of Ramadan in 2004, the great Arab leader breathed his last and was buried in the precincts of a landmark mosque he had built on the edge of Abu Dhabi city.

This day is marked as the Zayed Humanitarian Day annually to commemorate the late leader’s values and vision and for his compassion and commitment to charity work and humanitarian efforts. It is rightly said that Sheikh Zayed embodied the meaning of humanity and he inspired one and all to spread good across the world.

The UAE’s humanitarian efforts remain central to the country’s policy and the country continues to be a beacon of giving under the leadership of his son, His Highness Sheikh Khalifa bin Zayed Al Nahyan, who succeeded him as the UAE President.

Sheikh Zayed’s championing of humanitarian initiatives helped alleviate the suffering of people in conflicts and disasters and is a model for compassion at home and abroad.

His words and actions had proved that dealing with others should be based on equality, justice, solidarity and co-operation, all of which contributed to a more tolerant society rejecting all forms of violence, extremism, discrimination and racism. His humanitarian legacy and contributions toward peace, stability and development across the world is deeprooted in Emirati society and continues to inspire.

2018 is the 100th year since the birth of the man who united the seven emirates into a united country and took the nation to new heights of success and development.

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DCAA Interview

Muna Hadid, Senior Executive, Stakeholder Relations, Dubai Civil Aviation Authority:

Journey towards achieving the goals of Government Excellence System

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The Government Excellence System adds value to the government entities System focused on innovation, services and Smart transition Developing the Performance Management philosophy to achieve the community’s welfare and happiness and competitive advantage A new assessment mechanism has been adopted

In September 1997, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, ordered the establishment of Dubai Government Excellence Program (DGEP), the first integrated program for governmental excellence in the world, to be the driving force behind the development of the public sector in the emirate and enable it to provide distinctive services for all the customers and benefiters.

It succeeded in achieving a quantum leap in developing the performance, concepts, practices and techniques applied in the public sector, due to the cooperation of the government entities in applying the organizational and professional excellence standards, as well as benefiting from them in the continuous optimization processes of their performance and services. An independent entity, the program ensures on developing its system and regularly reviewing the categories, standards, methodologies and techniques to keep pace with the modern updates in the administration and quality domain, and efficiently meet the changing requirements of the government sector in Dubai.

The main purpose behind the launch of Government Excellence System is to enable government entities to achieve

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welfare and happiness for citizens. It also aspires to meet the community’s needs and expectations to reach the seven-star level and the highest degree of efficiency and effectiveness in the provision of government services. Furthermore, it aims to support government trends related to innovation for Dubai and the UAE to acquire a competitive advantage and a leading position.

The Government Excellence System constitutes a roadmap for governments seeking to reach new heights beyond excellence, to achieve performance leadership and to transform into a leading, innovative and smart government. This would serve as an example of the best government practices through developing a set of principles that include effectiveness, efficiency, learning and development, as well as the use of modern concepts, such as those related to innovation, future foresight, and integration as part of the government work.

The Government Excellence System is characterized by a number of features that make it unique and bring an added value to government entities applying the system. In order to achieve leadership sustainability, the system focuses on the importance of the continuous development of capacities based on learning from constantly

evaluated performance results, and also learning from the best local and international practices through the use of innovative methods and the active participation of customers, the community and stakeholders. A new assessment mechanism has been adopted, which includes the formation of a team of international assessors specialized in the work field of each government entity, in addition to subject matter experts specialized in specific administrative areas so as to assess every entity according to its relevant scope of expertise.

The Dubai Civil Aviation Authority (DCAA) has chosen Muna Hadid, one of it5s Senior Executive handling Stakeholder Relations, to be its representative in the training program as she has the required qualifications to pass the program, which includes, among other things, preparation of reports and presentations required from the participants prior to the training program, and applying the practical stage after it.

In an interview with Via Dubai, she talked about her role in representing the DCAA in this pioneering program.

What is the aim of this training program?

The aim of this training program is to promote and consolidate the culture of

DCAA Interview

excellence, pioneership and innovation, and unify its various concepts among the Dubai government employees by conducting field visits to the leading institutions in the emirate to get first-hand knowledge of best practices in use such as Dubai Police, Roads and Transport Authority (RTA)and Dubai Electricity and Water Authority (DEWA), as well as the successful local offers submitted by other institutions such as Dubai Courts.

In fact, this program is the first of its kind in the fourth generation of the government excellence system at the state level. It consists of 11 training units, and lasts for 15 days of training of three days a week for five weeks in a row.

How has been DCAA’s participation in DGEP?

The DCAA participated, for the first time, in the Dubai Government Excellence Program (DGEP) in 2009 and gradually increased its results to reach 450 points for the 2016 edition.

There has been rapid improvements in the performance of DCAA right from the beginning, the application of development standards and excellence, and achievement of results of positive impact, all of which constitutes a real sustainability of institutional excellence.

What are the training program’s benefits?

The benefit and skills gained from the training program are many, but a few stands out: Learning and getting practical training on key principles of the institutional evaluation process, which was assessed by fourthgeneration standards and Identifying the common mistakes done in the various institutions during the preparation of the evaluation forms, and how to overcome them, and the most common observations based on the evaluation reports.

How DCAA is working on the Government Excellence System?

A Government Excellence System has been developed to serve the ambitious vision of the UAE to be among the best countries in the world by 2021 and keep pace with leading programs and projects implemented in the field of service improvement within the UAE government. In February 2010, he launched the UAE Vision 2021, which aims at making the UAE one of the best countries in the world by 2021 based on four key components. He directed all government departments in the emirate to implement the 4th Generation of the Government Excellence System as the roadmap towards achieving the UAE Vision 2021 and Dubai Plan 2021.

The System is geared towards improving the government performance to keep pace with the trend in the UAE to deliver 7-star government services that optimize customers’ happiness.

The Government Excellence System has been divided into three main pillars representing the basic foundations for leadership. These pillars ensure that any government entity will effectively perform its main activities in order to achieve its objectives in line with

the general government objectives through the optimal use of resources, and by ongoing pursuit of learning and development.

We are working on five major projects that promote the objectives of the Government Excellence System in Dubai and improve the performance of DCAA to maturity level in 2018: 1. Future Foresight Project : To draw and define mechanisms of work in aviation sector to meet future challenges and ensure the work of DCAA in efficient and sustainable manner taking into consideration the tremendous growth in aviation sector in general and the Emirate of Dubai in particular by using independent foresight tools.

2. Innovation Management Project 3. Open data management project and the importance of learning from this data 4. Focusing on developing and improving services provided to clients 5. Performance management system (Results Management) to become both more efficient and effective

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Cover Story

Airport Show:

Showcasing strength and efficiency The 18th edition of The Airport Show will take place on 15,000 square feet of space across three spacious halls at the iconic Dubai International Convention and Exhibition Centre (DICEC), with over 350 exhibitors from 90 countries

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he evolution of airports has been dramatic and fast despite commercial aviation being just over 100 years old. Airports have developed from being simply necessary aviation infrastructure into outward-facing, business-oriented service providers.

Airports are keen on becoming megahubs to compete to become gateways to entire continents, remarked Angela Gittens, Director General of Airports Council International (ACI World). Before taking over this responsibility in 2008, she served as the Chief Executive for two of the largest US airport systems, Miami International and Hartsfield-Jackson Atlanta International. ACI, the trade association of the world’s airports, serves 641 members operating 1,953 airports in 176 countries.

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The airline industry is forecast to carry 10 billion passengers in 2030.

Over the past 70 years, despite cyclical fluctuations, air transportation has remained resilient and continues to grow. Over 60 per cent of the world’s airports handle fewer than one million passengers, but Dubai stands out. For the past four years, it remains the world’s top airport for international travellers.

Among the 50th city in the world to have two international airports in

its urban conurbations, the emirate is the world’s largest operator of A380s and Boeing 777 fleet besides being the location of world’s first and largest A380 terminal.

In five years’ time, it will be home to the world’s largest airport and aerotropolis at Al Maktoum International with five runways. Also, Dubai holds the distinction of having the world’s top aerospace show on its soil along with being the world’s leading aircraft leasing company.

Cover Story

It is no surprise that it has been staging successfully a dedicated airport show uninterrupted since the past 17 years. From its humble beginnings in 2001 as a convenient platform for the decision-makers to experience and explore aviation products and services, it gained strength each passing year.

The debut edition saw 90 exhibitors from 17 countries and the show visitors numbered 1,359 from 35 countries. Ten years later, it had 4,700 attendees from 63 countries.

For the 18th edition, from May 7 to 9, up to 7500 attendees and over 350 exhibiting companies from 90 countries are expected when the doors open at the Dubai International Exhibition and Convention Centre (DICEC).

The show will take place over an exhibition space of 15,000 square metres in three spacious halls of the Dubai’s landmark MICE facility. The growth of Airport Show over the past decade reflects the dramatic evolution and expansion of the aviation industry in general and airports in particular. The show is held under the patronage and presence of His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group.

Its organisers, Reed Exhibitions Middle East, has expanded the show’s global appeal by adding exclusive addons forums and seminars like Global Airport Leaders’ Forum (GALF), Airline Travel Catering Expo (TCE), Air Traffic Control (ATC) Forum, Airport Security Middle East, Women in Aviation (WIA) and Airport Passenger Experience (APE). GALF continues as a co-located event this

year. The world’s largest B2B airport industry event mirrors the strong interest of the industry in airport development and their keenness to source their requirements at their doorsteps, remarked Daniyal Qureshi, Group Exhibition Director at Reed Exhibitions Middle East.

The aircraft movements in the UAE airspace will increase to 1.62 million in 2030. Forecasts suggest that the airlines in the Middle East plans to invest US$450 billion to acquire 2525 new aircraft by 2030, which will increase the size of their fleets by 160 per cent in 2030. An investment of US$90 billion is projected to go into the aviation industry in the Middle East by 2020. The Middle East region is expected to handle 400 million air passengers by 2020, including 98 million by Dubai, while air traffic is expected to grow by 5.2 per cent annually until 2030. The airports in the Middle East, North Africa and South Asia are in a fast track mode in acquiring technology and be trendy. The Middle East region’s passengers is projected to reach 517 million by 2036.

One of the two new attractions for this year’s show is Airport Security which is seen several new technologies and automation due to a combination of Artificial Intelligence (AI) and biometrics. International arrivals is expected to reach nearly two billion by 2030, up from 25 million in the 1950s. This massive growth calls for a world in which travel will be safer as intelligence and security organizations will be empowered with better tools, intelligence and data to perform their vital work more efficiently and effectively.

Another new addition is Air Traffic Control (ATC) Forum. In ensuring

The aircraft movements in the UAE airspace will increase to 1.62 million in 2030 and promoting safe, orderly and expeditious flow of air traffic, Air Traffic Control (ATC) plays a key role in the airports management.

The spiralling air traffic volumes all over the world has enlarged the role and responsibilities of ATCs, requiring the need for technology upgrade. Air Navigation Service Providers (ANSPs) are facing increasing pressure to modernise air traffic control infrastructure and services to increase efficiency, reduce costs and improve performance and safety.

Advancements in ATC technologies promises to enhance the safety and efficiently accommodate the demand.

The ICAO had projected that the UAE airports will have to handle 1.62 million aircraft movements by 2030 by which time the region will witness a 5.2 per cent annual growth in air traffic. By 2025, airlines are expected to operate approximately 1.4 million flights per annum to/from the UAE. Also to be held this year is 3rd Women in Aviation General Assembly with Boeing and LFV, the air navigation services of Sweden, among its sponsors. The UAE stands out in MENA for the highest number of women in aviation. There are over 5,000 women pilots worldwide and about 558,000 commercial pilots are needed globally by 2034. Estimates from the International Society of Women Airline Pilots (ISA) show that women pilot worldwide account for only three per cent of the total 130,000 pilots in the world.

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UAE in Focus

Etihad eliminates 195,000 tonnes of carbon emissions

Emirates successfully operates facility to maintain A380s

tihad Airways has successfully eliminated around 195,000 tonnes of carbon dioxide emissions last year, thanks to a wide range of fuel-saving initiatives across its network.

ver the past three decades, Emirates has become a global aviation powerhouse. The airline now operates the world’s largest fleet of Airbus A380s and Boeing 777s.

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Following a number of improvements aimed at enhancing operational efficiencies, Etihad was able to reduce the amount of fuel consumed by its aircraft by over 62,000 tonnes of fuel.

The result represents a 3.3 per cent improvement from the year before, and is the equivalent of 850 flights between Abu Dhabi and London.

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The tally includes 102 Airbus A380s, five times as many as the next largest operator of the superjumbo. And Emirates has committed to as many as 77 more of the planes.

It also operates more than 160 Boeing 777 airliners, meaning roughly 12 per cent of all Boeing 777s produced over the past 25 years currently fly wearing Emirates livery.

The people tasked with keeping these planes operating safely and effectively are Emirates Engineering, the airline’s maintenance arm. It handles things like routine line or

engine maintenance, comprehensive checks that require the disassembly of the airplane, cabin modifications, and aircraft-upgrade projects.

Emirates even has a paint shop where it can do custom liveries and decals.

The successful organization is built on a team-focused culture of “when in doubt, ask for help,” and an understanding of the importance of preventative maintenance. Emirates Engineering is in a complex of hangars, engineering shops, and an office building at the northern edge of Dubai’s airport.

The US$350 million facility opened for business in 2006, according to Business Insider. Emirates Engineering is based in a 136-acre complex of administrative buildings and hangars on the northern edge of Dubai International airport.

Emirates-Qantas deal extended for five more years

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mirates and Qantas have welcomed the Australian Competition and Consumer Commission’s (ACCC) reauthorisation of their partnership until 2023.

The partnership will allow these airlines to leverage the latest aircraft technology and maximise new routes. For customers, the continuation of the joint business, announced in August 2017, will deliver expanded services, greater schedule choice, increased frequent flyer benefits and an ongoing commitment to the development of world-class products and travel experiences.

Getting clearance for another 5 years paves the way for Emirates and Qantas to expand and proliferate their route offerings beyond Dubai and Sydney for routes to Europe and beyond. Qantas’ shifting of flights out of Dubai to Singapore allows for additional organic expansion for Emirates as it deepens its integration with flydubai while allowing Qantas to harness demand out of Asia from Singapore to Europe.

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UAE in Focus

Emirates’ refurbished aircraft commence service

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mirates Airlines is spending millions of dollars to refurbish a number of its fleet and passengers from Dubai now enjoy wider and refreshed seats.

The Dubai-based carrier has invested more than US$150 million to upgrade its ten existing 777-200LR passenger planes.

The first of the planes that have been included in the overhaul went into service in March to Fort Lauderdale in the US, while the rest flew to other destinations, including Santiago, Chile.

With the multi-million-dollar overhaul, the aircraft’s interior will look and feel more spacious and

airier, especially in the business class, as the overhead bins in the centre will be removed. The seats in the premium cabin will be two inches wider, offering customers a more comfortable journey. The economy class accommodation, on the other hand, will feature the latest colour palette of soft greys and blues.

The premium cabin will also feature a social area, which is unique to the Boeing 777200LR fleet, and where flyers can enjoy food and beverage, complementing the regionally inspired cuisine prepared by gourmet chefs, exclusive drinks and spirits from around the world.

UAE throws open FDI gates for investors

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fter weathering turbulence from the global economic crash of 2008 and the region’s geopolitical events in subsequent years, the UAE has made an impressive recovery in receiving foreign direct investment (FDI).

Preliminary results from the International Institute of Finance say FDI inflows to the UAE rose to US$11 billion in 2017 and won a 22 per cent share of investments made in the Middle East and North Africa. Within a smaller geography, the UAE has the lion’s share of inward FDI in the AGCC region, attracting a 47 per cent share valued at US$80.8 billion between 2013 and 2016.

Dubai is one of the world’s top FDI destinations in real estate, according to new research from consultancy JLL. In its report, it said Dubai sits alongside a new group of hybrid cities, which compete in specialised markets but benefit from access to larger markets.

UAE, UK, Australia sign aviation security deal

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Organisation (ICAO), will bring operational benefits and faster transfer times for travellers.

The UK’s Foreign and Commonwealth Office said the agreement, one of the first based on new principles developed by the International Civil Aviation

Philip Parham, UK Ambassador to the UAE, said: “This agreement will strengthen the efforts of all three countries to counter international terrorism and to keep passengers safe. The more we collaborate, the safer we will be.”

he governments of the UAE, the UK and Australia have signed an agreement to increase cooperation and collaboration regarding airline security.

Realty-related activities accounted for about 24 per cent of the UAE’s incoming FDI in 2016, largely driven by the highquality infrastructure platforms of Dubai and Abu Dhabi.

From 2009 to 2016, Abu Dhabi attracted AED95 billion in foreign investments — with an average annual growth of 8 per cent — and the newly established Abu Dhabi Investment Office (ADIO) wants to take this beyond 10 per cent.

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Special Report

Air India:

A Disinvestment Route

The 85-year-old, debt-burdened Air India is being split into four entities before its sale following major changes to India’s disinvestment policy

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ynonymous with air travel in India, Air India is the oldest and largest airline service operator, having commenced the operations in 1932. It started as Tata Airlines and later became state-owned. Founded by J R D Tata, it took off flying mail between Karachi in then-undivided, British-ruled India and Bombay.

It has a 42.8 percent market share of international routes from India, providing a gateway to 43 cities globally from the world’s second most populous country. International routes and extensive connectivity make it attractive in the highly-competitive market.

The airline has close to 2,800 international prime time slots per week in 39 destinations and more than 4,000 domestic slots in 54 destinations. Of its 11,214 permanent employees, nearly 37.6 percent will retire in the next five years. In addition, the national carrier has 8,278 employees either on contract, deputation or are casual workers. The company has been known over the years for its affable mascot, Maharajah. Now, the Maharaja is getting ready to take a bow – to become profitable. The AI sale has been code-named Project Royal, although the plain truth is that the national airline isn’t the king of Indian aviation – anymore.

In a major policy decision, the Indian government has decided to split Air India into four entities before its sale. The debt-burdened flag carrier change of hands move comes as part of a disinvestment proposal by the government. The core airline business comprising Air India and Air India Express — the low-cost overseas arm — will be offered as one company, and the

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process will be completed by this year end. Its regional arm, ground handling, and engineering operations will also be sold separately in the same process.

With US$7.9 billion in debt, five subsidiaries and a joint venture, and a combined workforce of 27,000, Air India is surviving on a taxpayer-funded bailout. It has strained government finances for decades, but a change of heart prompted the government to alter the foreign investment rules, allowing foreign airlines to own as much as 49 per cent of AI. The government will add most of the non-core debt owed by the carrier to its own balance sheet, while borrowings linked to core operations will be retained by the unit on offer. A socalled special purpose vehicle will hold the unsustainable debt of the airline and

the government is making “every effort” to protect employees.

Air India has been unprofitable since its 2007 merger with state-owned domestic operator Indian Airlines. The company made an operating profit of about Rs1 billion (US$15.7 million) in the year through March 2016, primarily due to a slump in oil prices. It still posted a net loss of Rs38.4 billion, according to the government. The government will sell 76 percent of AI, according to a document uploaded on the civil aviation ministry’s website. The airline’s overseas budget carrier will be completely sold in the offer, while the state will sell a 50 percent stake in the ground handling unit separately. The administration may also ask the buyer to conduct an initial public offering.

Special Report

Selling a majority stake in the lossmaking, 85-year-old company isn’t going to be a cakewalk. At least one attempt almost two decades ago failed amid fierce political opposition. The latest offer will include US$5.1 billion of debt that the buyer will have to take over with the balance going to the government. India intends to sell the remaining stake in AI, which may include selling shares during an initial share sale.

The government will not sell shares in a block, according to the document.

A large part of the carrier’s debt is guaranteed by the government. In addition, it guaranteed aircraft lease rentals for 21 Boeing 787-8 aircraft. A potential buyer of Air India will have to pay at least Rs9469 crores for buying 76 percent stake in the carrier that the government plans to sell in what could be India’s biggest asset sale of a state-run company, according to SBICAP Securities. The broking arm of India’s

largest lender, State Bank of India, factored in debt, operating profit and unabsorbed depreciation while pegging the total valuation of the state-run airline at Rs12459 crores.

ISBICAP Securities expects the stateowned airline to earn operating profit of at least Re1 per available seat kilometre in the ongoing financial year that began on April 1. That would translate into an operational profit of close to Rs7630 crores.

The buyer will have to take on debt worth Rs33392 crores. That may not be a concern as nearly 50 percent of the debt is backed by assets—86 owned and leased aircrafts. Air India also has an unabsorbed depreciation of Rs31806 crores on its books that will help the buyer reduce the tax liability when the airline becomes profitable in future.

India is expected to become the third largest aviation market by 2020 and the largest by 2030. The world’s largest democracy is currently considered the third largest domestic civil aviation market in the world which it is expected

to climb to first position in the next 10 to 15 years. The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as low-cost carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines, advanced Information Technology (IT) interventions and growing emphasis on regional connectivity, according to the civil aviation regulator, Directorate General of Civil Aviation (DGCA).

India is estimated to see an investment of US$25 billion in the next decade in the airports sector, and traffic growth of 13 per cent, according to Morgan Stanley consulting firm. According to them, the share of air travel in air and rail travel combined in India will grow to 15.2 per cent by 2027 from 7.9 per cent now. India’s aviation industry is largely untapped with huge growth opportunities, considering that air transport is still expensive for majority of the country’s population, of which nearly 40 per cent is the upwardly mobile middle class. In the coming 20 years, Indian companies will buy 2,100 new planes worth US$290 billion.

May 2018

15

Interview

Aircargo undergoing capacity and geographic expansion In an interview, Raed Hiassat, General Manager, Al Naboodah Cargo Centre, tells Via Dubai that the outlook for air freight is very optimistic

The air freight demand, measured in freight tonne kilometres (FTKs), was up nine per cent in 2017. The volume of freight tonnes jumped about 11 percent from 52.2 million in 2015 to 58.2 million in 2017. Air cargo had its strongest performance since the rebound from the global financial crisis in 2010. What’s your take on the air cargo industry this year and in near future?

Air freight demand has, indeed, been on a steady rise for the past 50 years except for a couple of minor blips in 2001 and in 2012.

The outlook for air cargo from the freight forwarders’ viewpoint must also factor in data from major players such as FedEx, TNT, UPS and DHL, which are a rising force in the industry. But overall, the outlook is good. Since air travel is rapidly expanding to cover the world’s outlier

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May 2018

areas, this translates to both a capacity and a geographic expansion for air cargo. We believe that the industry in the near term future will continue to remain positive.

A report says global air cargo market is to grow 4.9 percent to US$130 billion by 2025. The global market is expected to well up at a CAGR of 4.9 percent between 2017 and 2025. Is this a fair assessment of the future market trends?

If one looks at growth from a linear perspective, then the past trend is an accurate measure of future growth.

But future market trends have not factored in disruptions that are more likely to occur in the future as compared to the past five decades, no matter how unpredictable.

The possibility of trade wars is one, nationalism which could slow the pace of globalization, is another. However,

Al Naboodah Cargo has built up a strong team of highly competent experts to handle unpredictable and challenging situations capably.

This has been demonstrated by our track record as the official logistics provider and site handling agent for the Dubai World Trade Centre (DWTC).

Working on some of the most prominent exhibitions, such as GITEX Technology Week, Gulfood and the Dubai International Motor Show, Al Naboodah Cargo has managed the shipping, clearance and offloading for thousands of exhibitors, including highly valuable and, in some cases, irreplaceable shipments such as cutting-edge technology and one-off prototypes for major international brands. Some of these involved placing shipments in complex locations such as the upper level

Interview

of exhibition stands, which involved a high level of sophistication and expertise. There are many examples of how our experience and expertise sets us apart from the competition and makes us resilient to market conditions.

Five years ago, IATA predicted that the UAE will have the world’s third largest air cargo market by 2018.

It forecast that the UAE will see freight totalling nearly five million tonnes in 2018, behind only the US and China. What’s the scenario now that we are at the start of 2018?

The UAE has every reason to be optimistic of sustained growth in this sector. Our air cargo infrastructure is among the best in the world, and the continuous growth in capacity and in connections has placed the UAE in a favourable position to expand its trading hub and to re-draw the silk route network. To capitalise on this Al Naboodah Cargo is focused on growth through strategic partnerships and diversification.

There is the possibility to align with a global multinational freight forwarder, a move which will significantly enhance our presence and capabilities across the Middle East and further. In addition, Al Naboodah Cargo is also focused on establishing the UAE’s first special chemical and hazardous cargo/material warehouse, to address the specific requirements of handling hazardous materials in a safe and sustainable manner.

Al Naboodah Cargo Centre is into specialist services including aerospace logistics, exhibitions and dense cargo. Is it good to be in the logistics and freight forwarding industry now?

Al Naboodah Cargo is now one of the UAE’s leading and most versatile logistics providers. By expanding and

diversifying the company’s expertise into niche markets, Al Naboodah Cargo has a strong competitive edge over other general providers.

Our operations have expanded on a global scale, securing lucrative tie-ups with major global agents across the world. Quite early in its history, Al Naboodah Cargo foresaw the need to develop vertical market products when other local forwarders were still grappling with mainstream offerings.

These early efforts are paying dividends now with our success in events logistics and the aero-parts business, not to mention dense cargo, where we are a leader among a small group of active players. Our expertise in events logistics in particular is a core strength, as demonstrated by our track record as the official logistics provider and site handling agent for the DWTC. Working on some of the most prominent exhibitions, such as GITEX Technology Week, Al Naboodah Cargo managed the shipping, clearance and off-loading of an US$85,000 exoskeleton from Spain to Dubai, and the transporting of the Makr Shaker, a portable Bionic bar made in a 20ft container weighing 12 tonnes. As the official handling agent for the world’s largest annual food and beverage show Gulfood, Al Naboodah Cargo handled logistics for 5,000 exhibitors from 120 countries, covering 120,000m2 of space. We have supported the Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX), working closely with the Ministry of Interior and Abu Dhabi Police.

This involved handling special permits and licenses for sporting equipment, firearms and arts and crafts.

Moreover, Al Naboodah Cargo set up

Raed Hiassat

a police-bonded area on-site for the processing of the equipment into the exhibition site.

With most of the corporate players on the world’s manufacturing stage turning to outsourcing and concentrating instead on their core competencies, the importance of the logistics industry in the ensuing supply chain has taken on added significance.

You started off with cargo business in the 1980s when air cargo was not a promising business in Dubai.

Why? Air Cargo has been gaining popularity since the seventies when Dubai created a modern airport including a sophisticated ILS system, with runways and taxiways that could handle a Boeing 747 and Concorde.

Several extensions and upgrades were done throughout the seventies, with major airlines calling at the port.

Al Naboodah Group Enterprises saw the potential of this market, and as the region began to grow and expand as a centre of trade and business, we realised the importance of having a logistics and cargo hub division.

By the mid-nineties, our name was synonymous with being a leader in this market.

May 2018

17

In Focus

ADP Ingénierie

40 years of presence for more proximity and innovation A

DP Ingénierie is a 360 airport expert. Customer driven and worldwide recognized, this innovative and agile company intervenes all along the airport life-cycle by bringing the right solution at every step of the airport value chain.

Present in the United Arab Emirates since 1978, proud to be awarded for the conception of Abu Dhabi Airport by late HH Sheikh Zayed bin Sultan Al Nayan, ADP Ingénierie gained the aura of a solid airport partner acknowledged by most of the regional platforms.

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May 2018

Since then, ADP Ingénierie has built a strong experience and expertise in the region through important projects and iconic references such as: Dubai International Airport Terminal 2 and 3,

Florent MERMINOD Managing Director Central Asia – Middle East – East-Africa

Al Maktoum International master plan, Network Infrastructure, Passenger Terminal and Air Traffic Control Complex, Muscat International Airport, Oman – Project Management Consultant Services,

In Focus

Bahrain International Airport – Design & Construction management.

Driven by successes, and the ambition to remain the leader in the region, it has become an evidence for ADP Ingénierie to develop its regional base with the objective to better associate its clients and partners to pave the way of the airport of tomorrow.

Today, in order to respond to the regional and global need of airport transformation, ADP Ingénierie team of experts is at your service to listen, understand your challenges, propose and validate solutions which are based on a non-dependent and constantly evolving technologies for conception, construction to asset management; ADP Ingénierie loops the life cycle of

buildings, infrastructures and systems.

With its dedicated team located in Paris, Dubai and Hong Kong, ADP Ingénierie innovates on strategies in a transversal mode.

This situation offered by its regional Business Units is the right approach to gain from its worldwide presence in conjunction with the benefits of a unique environment, competencies, cultural proximity and reactivity to deliver.

A solution for every situation

As a unique 360° airport expert, from airport infrastructure to IT Security, Baggage Handling Systems, passenger experience, airport planning, air traffic management, ADP

Ingénierie adapts its engineering methodologies to deliver tailor made solutions to the issues of any airport whatever its capacity and constraints.

This capacity translates into a unique range of services for which partnering with ADP Ingénierie is the guarantee to gain more from development, management and operations.

Constantly adapting to new challenges

ADP Ingénierie constantly adapts to new challenges by searching the right approach to each issue and provide unique cost effective solutions.

The offer of the company based on Virtual Reality dedicated to project management brings a brand new perspective to stakeholders and deliver the clients with the capability to anticipate and present every solution in its future dynamic environment.

Present at the Dubai Airport Show, ADP Ingénierie will showcase the technology to the visitors for the second year in a row. Because the world is changing fast, innovation has become an essential part of ADP Ingénierie development. It is its focus to remain efficient and reliable at all time.

Loyalty and dedication have been its promise to Clients and Partners since 40 years of presence in UAE.

May 2018

19

Middle East News

Oman Air remains in an expansion mode

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man Air, which has appointed Paul Starrs as its Chief Commercial Officer from April, is continuing its expansion plans.

Jazeera Airways to open dedicated Kuwait terminal

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uwait-based Jazeera Airways will receive first passengers at its own dedicated terminal at Kuwait International Airport by mid-May, after its completion in a record 11 months.

It says the state-of-the-art terminal and parking structure marks a significant milestone in the development of the Middle East aviation system. More new routes, new aircraft additions to the fleet and new customer-focused services will be unveiled this year.

Marwan Boodai, Chairman of Kuwait’s publicly listed low-cost carrier, said: “This is the first terminal owned by a non-government-owned airline, and it is a testament to the Government of Kuwait’s belief in empowering the private sector to have an active role in Kuwait’s development plan Vision 2035.”

Net profit for 2017 dropped to US$27.3 million from the previous year. The company also reported a 12.1 per cent decline in operating profit.

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May 2018

The national carrier is expected to receive a total of five 737 MAX by September. The MAX aircraft joins a fleet of seven Boeing 787 Dreamliners, six Airbus 330-300s, four Airbus 330-200s, five Boeing 737-900s, 21 Boeing 737-800, two Boeing 737 MAXs and four Embraer 175s.

The 25-year-old airline flies to 55 destinations all over the world. Its fleet and network expansion programme will see the airline operate up to 62 aircraft to 60 destinations by 2022.

Etihad and Swiss sign codeshare deal

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tihad Airways and Swiss International Air Lines (SWISS) have launched a new codeshare partnership with bookings effective immediately.

Under the agreement, Etihad Airways will have its EY flight code on SWISS services between Geneva and Zurich, two key gateway cities served in Switzerland from Abu Dhabi.

SWISS will market its LX code on Etihad Airways’ services between Zurich and Abu Dhabi, offering its passengers codeshare flights to and

from the UAE’s capital city. Peter Baumgartner, Etihad Airways Chief Executive Officer, said the new agreement is part of the codeshare cooperation which began in 2016 between the Lufthansa Group, of which Swiss is part, and Etihad Aviation Group.

Etihad Airways operates the technologically advanced Boeing 7879 Dreamliner on its daily flights from Abu Dhabi to Zurich. Etihad Airways flies to 103 international passenger and cargo destinations with its fleet of 115 Airbus and Boeing aircraft.

Middle East News

SalamAir adds two new destinations to network

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man’s SalamAir is adding two new exciting destinations to its growing network.

Oman and the Middle East closer to Eastern Europe. There is great potential for these destinations.”

Starting June, Sultanate’s first budget airline will operate three weekly direct flights to Tbilisi, Georgia and two weekly flights to Baku in Azerbaijan.

SalamAir network consists of 14 destinations including Muscat, Salalah, Suhar, Dubai, Doha, Jeddah, Taif, Madina, Karachi, Multan, Sialkot, Shiraz, as well as Tbilisi and Baku.

Captain Mohamed Ahmed, CEO of SalamAir, said: “We want to bring

Awarded its air service operator licence by the Public Authority for Civil Aviation (PACA) in early 2016, SalamAir’s journey started in January 2017 when it flew from Salalah to Muscat.

European budget carriers eyeing ME

Airports traffic growth continues in KSA

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t least two of Europe’s leading discount airlines have started targeting new business opportunities in the Middle East.

Ireland-based budget carrier Ryanair announced it was expanding in the Middle East with its first flights to Jordan. The airline flew its inaugural routes between Cyprus and Amman, initially offering prices at around US$25 a ticket. The airline says it will add additional routes between Amman and several European markets later this year, as well as starting flights to Aqaba, Jordan’s Red Sea resort town.

Gulf Air’s first Dreamliner takes to the skies

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ulf Air, Kingdom of Bahrain’s national carrier, has taken possession of its first Boeing 787-9 Dreamliner.

The Boeing 787-9 Dreamliner is an all-new, super-efficient family of commercial airplanes that brings big-jet ranges and speed to the middle of the market with 20 to 25 percent less fuel and 20 to 25 percent fewer emissions than the airplanes they replace.

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he Kingdom of Saudi Arabia’s 27 airports handled close to 92 million passengers last year, a 7.7 per cent increase compared with the previous year.

The number of passengers handled by the kingdom’s five international airports grew at an even higher rate, registering an 8.3 per cent increase compared with the 2016 figure.

According to the General Authority of Civil Aviation (GACA), 78 million passengers, or 85 per cent of the total, flew through the international airports in Jeddah, Riyadh, Dammam, Medina and Taif.

Aircraft movement at all airports increased by 4.6 per cent to reach 741,000 in 2017, the aviation regulator reported. Saudi Arabia is undertaking a comprehensive airport expansion programme in

response to rapid passenger traffic growth and the kingdom’s economic diversification strategy. The new passenger terminal at Jeddah’s King Abdulaziz International airport will start soft operations in May, while a $2.1bn renovation project is under way at Riyadh’s King Khalid International.

A new terminal is being developed in Taif as a public-private partnership (PPP). A tender document for the expansion of 10 airports and the development of two new airports was released last year.

May 2018

21

International News

Livingston Airport development contract awarded

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ngineering, planning and consulting services company, Michael Baker International, has won a contract from the Livingston Parish Airport District to design and develop the new Livingston Executive Airport in Livingston, Louisiana, US.

Under the terms of the five-year contract, Michael Baker will deliver aviation engineering services that include a 5,000 feet runway, a flight service station, aeroplane hangars and a fuel station at the new general aviation airport.

The development of the Greenfield airport will take place on 242 acres of land.

New Islamabad Airport set to open

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akistan’s biggest New Islamabad International Airport (NIIA), built on the designs of Mughal and Spanish architecture and equipped with latest technology, is set to be inaugurated on April 20.

Tech hub to be constructed at Munich Airport

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t has been compared to Silicon Valley and could create 5,000 jobs within less than three years the LabCampus on the grounds of Munich Airport is being billed as a “blueprint for a city of the future.�

The publicly-owned Munich Airport has a vision of the future where startup entrepreneurs and business executives alike never need to stray into the escalator-less world beyond the confines of an airport again.

They can live at airport hotels, eat at airport Irish pubs and work in futuristic business hubs situated on the airport grounds.

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May 2018

The Civil Aviation Authority (CAA) has directed the departments currently operating at Benazir Bhutto International Airport to shift their offices to the new airport

by March 31. Being the biggest airport of Pakistan containing latest facilities and technology, the NIIA can provide travel facilities to 28 airplanes at the same time. The airport is designed as an aviation

hub of the region while a five star hotel, a three star hotel and a sports complex will also be built inside the airport. To facilitate and entertain the passengers, the airport also comprises three shopping malls, a golf course, cinema house, hospital, convention centre and duty-free shops and restaurants.

A cargo village has also been built on the airport while ground handling agencies have also started operating, the director added. The runway of the NIIA is more than 3.5 kilometres long making it the longest runway of Pakistan.

International News

Thailand to be ASEAN’s premiere aviation hub

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recently approved US$45 billion investment in Thailand’s Eastern Economic Corridor (EEC) is set to solidify the country’s position as ASEAN’s regional aerospace hub.

The Eastern Economic Corridor bill will earmark these funds for the general development of the region, including, most notably, U-Tapao’s future Aeropolis – an entire city infrastructure built around said airport – and will likely help Thailand surpass the US$9.3 billion of foreign investment the country drew in 2017 for the EEC.

Lockheed Martin to build supersonic X-plane

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ockheed Martin Skunk Works has won an US$247.5 million contract to build an X-plane for NASA that will be capable of flying at supersonic speeds without generating such a loud sonic boom.

The full-scale plane, known as the low-boom flight demonstrator, is to be built at the Skunk Works facility in Palmdale. The plane’s first flight is set for 2021.

Lockheed Martin had won a previous contract to work on the plane’s preliminary design in 2016. The X-plane is intended to create a “gentle thump” during flight, a sound that would be no louder than closing a car door, while cruising at about 940 mph at 55,000 feet, according to NASA.

Malaysian aerospace gaining altitude

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alaysia’s aerospace industry has been designated by the government as a strategic sector with high growth potential in the country’s industrialisation and technological development programmes.

Malaysia is at the forefront of several markets, including composites design and

manufacturing; aircraft components design and manufacturing, avionics and systems design and manufacturing. Currently, there are eight companies involved in aircraft assembly, 28 companies in the manufacture of aircraft parts and components including ground support equipment, while more than 50 companies are involved in MRIO activities.

Report reveals enormous gulf in airline fuel efficiency

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hina’s share of global aviation carbon emissions is expected to rise by 18 per cent by 2050, making it the industry’s biggest emitter ahead of the United States. But rapid growth has also created an opportunity for China to lead the world on airline fuel efficiency.

New analysis by the International Council on Clean Transportation (ICCT), a US-based thinktank, reveals a large gap in fuel efficiency between airlines around the world.

In the study, ICCT compared the fuel efficiency of 20 major airlines operating nonstop flights between the United States and Asia and Oceania in 2016.

The gap between the most- and least-efficient airlines was 64 per cent (measured by passengerkilometres per litre of fuel).

The International Civil Aviation Organization (ICAO) forecast that Asia Pacific will account for 31 per cent of carbon emissions in aviation in 2020.

May 2018

23

Opinion

Airports must develop non-aeronautical activities T he Airports Council International (ACI) has launched of two authoritative and globally-significant reference publications - ACI Airport Economics Report and the Airport Key Performance Indicators.

The publications revealed that the continued recovery in manufacturing and global trade, alongside a rise in business confidence, has fostered confidence, investment and growth in airports across the world. The financial analysis is based on a comprehensive sample of 919 airports, representing 78 per cent of worldwide passenger traffic. All regions and airport sizes are accounted for, providing a truly representative picture of the industry.

Airport traffic at a world level has grown consistently over the last three years - passenger traffic posted growth of 6.6 per cent in 2017. Furthermore, passenger traffic continues to post consistent annual growth rates above historical averages. To continue to accommodate this demand and serve their communities, airports must have a long-term perspective on their business and ensure capacity improvements. This is a challenge because, in this dynamic competitive environment, airports are forced in the short term to set competitive charges, offer incentives and rebates, and invest in quality enhancements.

Increased competition continues to shape the industry and its capacity to generate revenues. The report

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May 2018

has found aeronautical revenue generated from airport charges per passenger in real terms has remained stable – in the region of US$10 per passenger. Using aeronautical revenues as a proxy for airport charges, charges are increasing globally only at the same pace as global demand. This is clear demonstration that the calls for tighter and rigid economic regulation for airport charges are unfounded.

The report also found that that future growth in air transport demand will come from emerging and developing economies, predominantly from the Asia-Pacific region. In 2016, airports located in emerging and developing economies carried 45 per cent of global passenger traffic across the world’s airports. By 2040, this share is expected to increase to 62 per cent.

By that time, passenger throughput at airports in emerging and developing economies will have 1.6 times the passenger traffic of airports in advanced economies. The airport cost structure continues to be characterized by predominantly high fixed costs necessary for maintaining and operating infrastructure.

Airports are asset-intensive businesses that require many years to recover the significant capital investments in runways and terminals. The scale of current and forecast demand at airports clearly indicates a need for increasing levels of investment to maintain and

Angela Gittens Director General, ACI World

enhance capacity at an appropriate level of service quality. Airport charges and non-aeronautical revenues are major sources of funds for investment.

Airports should be permitted to retain and invest these revenues to finance future investments or to pay to shareholders based on the finances of the airport. Our report reveals that the structure of airport revenues has remained stable over the last six years.

Airports are strongly encouraged to develop non-aeronautical activities and maximize non-aeronautical revenues where they can. Airports are essential to the economic development of cities, countries, and regions. ACI remains committed to help the airport industry keep pace with traffic growth.

Opinion

Financially, airlines are doing better W

e are witnessing a period of the airline industry being in a well mode.

Financially, airlines are doing better than at any time in their history.

The IATA is forecasting a profit of US$38.4 billion this year. 2018 will be the fourth consecutive year in which earnings will exceed the cost of capital—in other words a normal profit for any other business.

But the situation cannot be described simply as strong demand, improved efficiency and profits.

To begin with, profitability is not evenly spread—about half is being generated by airlines in North America.

An airline that cannot adapt to changing market conditions, that cannot generate a sustainable profit for shareholders, will be unable to offer its employees long-term job security. It was a huge struggle for all involved to transform the industry post-9.11… and again after the Global Financial Crisis. It is important that we continue to work together to keep aviation in the black.

There is no question that 2017 was an extremely safe year for our industry, perhaps the safest.

There were no fatal jet accidents involving passenger flights for the second time in three years. Yet we also know there is room for improvement. We experienced six fatal accidents involving turboprops and cargo flights in 2017, and we’ve had

three fatal accidents so far this year. In addition, we had some well-publicized events in which margins were compromised and the outcomes could have been far worse than they were. I envision a time when we have zero accidents and no fatalities, but we are not there yet.

Like all industries, aviation is being challenged by the digital revolution.

Nobody knows what opportunities it will bring. But it is clear that constant innovation is crucial to survival. It is tempting to think that our industry has transformed itself sufficiently through the restructurings that already have occurred. I must warn against such an attitude of complacency. We must be open to change.

Alexandre de Juniac Director General and CEO IATA

Aviation liberates us from the constraints of geography, distance and time. In this way, it enables us to lead better lives, and makes the world a better place. Aviation empowers us to explore the world, to do business globally, and to enrich our lives. Aviation connectivity gets goods to markets, and vital aid to those in need.

Excerpts from the speech at the 73rd IFALPA Conference

MayMay 2018 2018

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ATM

NASA to test unmanned ATM technologies

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ASA and the Nevada Institute for Autonomous Systems have tested unmanned aircraft systems and airspace management technologies as part of efforts to integrate UAS into the US national airspace system.

The week-long demonstration occurred at a UAS test site at the Reno-Stead Airport in Nevada and involved UAS ground control systems, communication, navigation, surveillance, human factors, data exchange and network platforms.

The test is part of the NASA-led UAS Traffic Management project that involves the Federal Aviation Administration (FAA), UAS test sites and industry.

The programme seeks to develop and demonstrate a UTM prototype with technologies that will be integrated into an operational drone traffic management system.

During the test, NASA provided a flight information management system, which will serve as a platform prototype to support the coordination of the FAA with UAS operators across the US.

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May 2018

Boeing to develop radars for unmanned aircraft

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oeing is to invest in Fortem Technologies, a US company developing advanced radar systems for unmanned and manned aircraft.

Fortem Technologies offers airspace awareness solutions using low size, weight and power radar to ensure safe operations of unmanned aerial vehicles. Fortem’s TrueView radar technology helps UAVs detect and avoid other aircraft and airborne objects beyond visual line of sight — a key capability for future autonomous air vehicles.

DFS Group takes over ATC in Edinburgh

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he Germany-based DFS is to start providing air navigation services at Edinburgh Airport in Scotland. Handover of the control tower at the Scottish capital’s airport took place in April. DFS is providing the service at Edinburgh through its UK subsidiary, Air Navigation Solutions (ANS).

Following a public tender in July 2016, DFS Group was awarded the contract to provide tower and approach control as well as the maintenance of air traffic control systems at the airport. ATC services at Edinburgh are currently provided by UK air navigation supplier NATS. ANS will provide air navigation services at the airport for 10 years; Edinburgh will be DFS Group’s second airport contract in the UK, along with London Gatwick, the world’s busiest single-runway airport.

DGCA wants to improve air traffic standards

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ndia’s Directorate General of Civil Aviation (DGCA) has issued a circular advising the changes so that air traffic can be better managed.

The objective of the circular is to achieve standard performance levels of air traffic controllers (ATCOs), irrespective of the location they are operating from.

The aviation regulator has asked all aircraft operators in the country to be ready to standardise the air traffic managing process so that higher volumes than current levels of traffic with narrower lateral and longitudinal spacing can be managed using Data Link communication, resulting in better fuel economy and improved on-time performance of aircraft.

Airlines

Cathay Pacific letting women wear trousers

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fter more than 70 years of requiring its female flight attendants to wear skirts, Cathay Pacific has said it will let them don trousers instead.

AA to launch US-Latin America routes

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merican Airlines (AA) will boost its services to the Mexico, Caribbean and Latin America region to nearly 270 daily flights with the launch of six new routes from the US in December.

The carrier will begin Boeing 7879 flights between Los Angeles and Buenos Aires, becoming the first to offer non-stop service between the two cities. Also, nonstop flights between Dallas/Fort Worth (DFW) and Oaxaca, Mexico will commence, with American flying Embraer E175s on the route.

Two new flights from Miami International Airport (MIA) will also be launched to Georgetown, Guyana, and Pereira Colombia.

Airlines in the UK charge too high for inflight F&B

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irlines in the UK have been accused of marking up the price of food and drink by as much as 8,900 per cent in a bid to squeeze more money out of passengers. A report has shed light on the inflated prices being charged for snacks on flights from £2.23 for a packet of crisps to £2.70 for a cup of tea and £2.68 for a bottle of water.

The Hong Kong-based carrier said: “Choice for our people is as important as for our passengers.

It is imperative that our customerfacing colleagues not only feel pride in wearing the Cathay Pacific and [regional airline] Cathay Dragon colours but that they also feel comfortable and empowered to carry out their duties to the best of their abilities.” Flight attendant unions had earlier called on the

airline to drop its skirts-only policy.

Cathay’s uniform for female flight attendants includes a red skirt with two slits at the back, black stockings and black heels.

The option of trousers would be introduced at the next uniform refresh, which could take between three and five years. Cathay Pacific and Cathay Dragon will join the few airlines in Asia offering their female staff such an option.

Vistara introduces male cabin crew

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istara, a joint venture between India’s Tata Sons and Singapore Airlines, has announced it has introduced its first male cabin crew as part of plans to be an “equal opportunity employer”.

The crew took to the skies following the completion of a rigorous three-month safety and service training programme to the exacting standards of Tata and Singapore Airlines.

It said: “Our total crew strength at present is around 500, and as we continue to scale up, we expect to have about 25-30 per cent male crew of the total strength over a period of time.”

The airline also unveiled an elegant uniform for its male cabin crew, designed by celebrated designer label Lecoanet Hemant. Like the airline’s female cabin crew, the male

cabin crew will deliver Vistara’s brand promise of providing seamless excellence to our customers, he said.

The second and third set of male crew are in training, and will soon join the first set in the air.

Vistara has flown over 8.5 million customers till date and serves 22 destinations with over 730 flights a week, operated by a fleet of 19 Airbus A320 aircraft. Apart from Vistara, Air India, Jet Airways and SpiceJet have mixed cabin crew.

May 2018

27

Airlines

Malaysia Airlines now allows bookings via its Facebook

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alaysia Airlines now allows travellers to make bookings on its Facebook page following its journey to digitization.

The national carrier said it is the first airline in Asia to allow users to book flights and process payments through Facebook Messenger – which is one of the three new digital initiatives.

Malaysia Airlines unveiled the new digital initiatives MHguardian, MHfeedback and MHchat and to enhance its passengers travel experience.

Its latest app, MHguardian is a mobile application which enables parents or guardians to track unaccompanied minors throughout their travel with Malaysia Airlines.

This mobile app was the winning idea of Malaysia Airlines’ 2017 Hackathon and is targeted to launch by quarter three of 2018. MHguardian will also be extended to support unaccompanied elderly passengers and passengers who require special assistance.

Already available for download is MHfeedback. This mobile app allows customers to immediately share their feedback anonymously on their experience with Malaysia Airlines. Passengers can type in their feedback, rate the airline’s service or upload photos of areas that require improvement.

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May 2018

Aegean chose Airbus for US$5 billion fleet renewal

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ollowing almost two years of deliberation, Aegean Airlines has chosen Airbus to help renew its fleet.

Greece’s largest carrier has signed a memorandum of understanding (MoU) with Airbus to purchase 30 A320neo family aircraft with options for 12 more. The airline made history when it made its announcement as this is the most airplanes any Greek airline has ordered at once.

Valued at about US$5 billion, this deal is also one of the largest investments made by a private Greek company since the nation’s financial crisis last decade.

Great Lakes puts aircraft up for sale

MyWay Airlines plans intercontinental hub

reat Lakes Airlines has started laying off staff and is seeking to sell assets including Beechcraft and Embraer turboprops.

yWay Airlines, the Georgian start-up, plans to launch flights from Tbilisi. The tiny Caucasian country could become a hub for intercontinental transfer traffic if Chinese-owned MyWay Airlines fulfils its five-year business plan.

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The US regional carrier, based in Cheyenne, Wyoming, stopped flight operations abruptly and with no explanation following an evening flight in March. The company says it halted operations “indefinitely”, and now attributes its struggles largely to a controversial 2013 pilot qualification rule.

Not including its subsidiary, Olympic Air, Aegean Airlines currently flies an all-Airbus fleet.

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MyWay obtained its Air Operator’s Certificate (AOC) in January and expects to launch charter flights with a pair of Boeing 737-800s.

The airline will gradually building up a network that consists of regional points like Moscow, Kiev, Minsk, Tehran, Tel Aviv, Dubai or Sharjah, and an unspecified city in Turkey.

The delivery of two more 737-800s in July and December will see further expansion into the Middle East, the Commonwealth of Independent States (CIS) and the European Union (EU).

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May 2018

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Cargo & Logistics

UPS begins cargo flights out of San Bernardino airport United Parcel Service (UPS), a multinational package delivery company and a provider of supply chain management solutions, has started operating five cargo flights a week out of San Bernardino International Airport in the US. A Boeing 767 wide-body freighter out of San Bernardino can carry as many as 15,000 Next Day Air express packages to the UPS Worldport global air hub in Louisville.

The partnership is a logical transfer of additional cargo capacity from UPS’ West Coast hub for air and truck cargo at Ontario International Airport to San Bernardino.

Tianjin Air Cargo gets its first 737-300F

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hanghai-based Suparna Airlines has sold two 737-400Fs to its sister carrier, Tianjin Air Cargo in a transaction valued at US$14.5 million.

Once the aircraft transfer is complete, Tianjin Air Cargo will have the three aircraft it needs to commence commercial operations – the first step in what ambitious airline planners hope is a journey towards becoming a global express integrator.

Last November, the carrier received certification from the Civil Aviation Administration of China (CAAC). The start-up is a joint venture between three consortia (Tianjin Aviation Logistics Development, Sky Holdings and Yang Hang Investment) that are controlled by heavy-hitting players in the industry, such as the HNA Group, China Post, Beijing-based Capital Airport Group, and Tianjin Airlines. HNA Modern Logistics, the parent entity of Tianjin Air Cargo, HNA’s newest carrier seeks to rapidly scale-up its freighter fleet and enter the global express logistics business.

Cargo in Doncaster Sheffield Airport’s master plan

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oncaster Sheffield Airport (DSA), a gateway in the north of England serving the region around those two cities, has released its 20year Master Plan.

The DSA Vision envisages a ‘Connected National Economy’ that “realises the airport’s potential as a major catalyst for transforming the north of England.

The Vision is for an ‘aerotropolis’ with the capacity to handle 250,000 tonnes of cargo per year as well as an annual 25 million passengers.

First Japanese airline to sign up to wildlife declaration

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ll Nippon Airways (ANA) has become the first Japanese airline to sign up to the United for Wildlife (UFW) Buckingham Palace Declaration on the illegal trade in wildlife.

By signing up to the declaration the airline will aim to increase passenger, customer, client, and staff awareness about the nature, scale, and consequences of the illegal wildlife trade. Partner with airports, freight forwarders and other stakeholders to work proactively with enforcement agencies and conservation organizations to address the problem.

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Technology

Air Asia goes into its own cryptocurrency

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o expand its airline service and tap into more markets, AirAsia is setting foot into the digital realm.

Its CEO Tony Fernandes mentioned that being the region’s largest budget airline, it is launching forays into fintech services and cryptocurrencies using mountains of its operational data.

LAX contract for workers’ background checks

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elos Identity Management Solutions (Telos ID) has secured a contract from Los Angeles World Airports (LAWA) to provide Designated Aviation Channeling (DAC) services that will process worker background checks at Los Angeles International Airport (LAX) in the US. LAWA owns and operates Los Angeles International (LAX) and Van Nuys (VNY) general aviation airports.

With more than 54,000 badge holders, it has streamlined the worker background check process, while upholding the high-security standards.

Aviation channelling services will facilitate submissions of workers’ biographic and biometric data in order to carry out background checks of individuals working in secure areas of US commercial airports.

Future of flight data management lies in Blockchain

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lobal IT technology firm, SITA, has built a privatepermissioned blockchain system called FlightChain, which stores flight information and uses smart contracts to judge potentially conflicting information.

The blockchain could create a single ‘source of truth’ for flight data. Blockchain’s role as a shared, decentralised digital ledger could enable more accurate exchange of flight information between airlines and airports.

Leading digital currency Bitcoin is enduring a rocky start to 2018, with a sizeable drop in its exchange rate casting doubt on its sustainability. Nevertheless.

Biometrics to transform passenger processing

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iometric technology is emerging as the top solution for airlines and airports to automate identity checks amid rising passenger numbers. This is according to Biometrics for Better Travel: An ID Management Revolution, a report published by SITA. It outlines how using biometrics to check passenger’s identity will power faster and more secure self-service processes at airports as passenger numbers are set to almost double to 7.8 billion by 2036. Airlines and airports are already investing in various forms of biometric technology and SITA’s report explores innovative ID management programs that are transforming the travel experience today.

Miami Airport unveils facial recognition security technology

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iami International Airport has opened its new federal inspection security facility for international arrivals at Concourse E, which features facial recognition technology.

The airport revealed the first security facility in the country dedicated to providing expedited passport screening via facial recognition.

The facility managed to screen as many as 10 passengers per minute. In addition to speeding up the security process, it cuts down the walking distance for Concourse E and F passengers, which will reduce congestion at the busy arrivals area.

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Tourism

Netherlands tourism sees fastest growth in 10 years

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he number of guests staying in overnight accommodations in the Netherlands rose to 42 million in 2017, representing a year-on-year growth rate of nearly nine percent, the strongest growth since 2006.

Statistics Netherlands (CBS) says growth in 2017 was primarily driven by an increasing number of foreign visitors, by 13 percent relative to the previous year. The 17.8 million foreign guests combined spent 44 million nights in Dutch overnight accommodation, an increase of 11 percent relative to 2016.

a combined 67.8 million nights. This represents a growth rate of two percent on 2016. The above figures do not include tourists who stay in accommodation with fewer than five beds available; most private accommodation that is offered in online marketplaces falls within this category.

Domestic tourism grew by 6 percent to 24.4 million guests spending

Due to the growth in recent years, tourism has become a substantial sector of the

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Dutch economy. By the end of 2016, total tourist expenditure amounted to 75.7 billion euros or 3.9

percent of gross domestic product (GDP). Tourism is good for 641 thousand jobs in the Netherlands.

Tourism

Dubai Tourism launches multilingual audio tour guides

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ubai Tourism has collaborated with two digital tour apps for two new free Dubai tours that will help visitors discover and learn more about significant and historic sites and landmarks in the city.

The tours, titled ‘Metro Moments’ and ‘Al Fahidi Architecture Tour’, are available to download for free from the Apple Store and Google Play.

Supported by GPS technology, both tours use audio narrations to guide visitors through Dubai, automatically progressing from one point of interest to the next in real time, depending on the user’s location. The pre-recorded audio is available in English, Chinese and German and

each tour also comes in text form and is accompanied by a map to help with navigation.

‘Metro Moments’ is available on Voice Map, an app that uses audio guides and real-time location to direct users towards their next journey of exploration.

The tour provides users with information on the different points of interest and attractions that can be found along the Dubai Metro route between Dubai Airport

Terminal 3 and The Dubai Mall (moving in both directions). Al Fahidi Architecture Tour’ can be found on the Pocket Guide app, an electronic

version of a human tour guide, assisting tourists with their travels in cities around the world.

The tour focuses on introducing users to the rich history and heritage of Dubai’s popular Al Fahidi District, part of the wider Dubai Historic District.

The launch of the tours is also in line with the emirate’s ‘Smart City’ initiative, which aims to streamline and enhance visitor and resident experiences in the city through the provision of innovative digital services.

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