Official Monthly Bulletin of AACO. Issue 82 - Jan. 2014

Transcription

1 Issue 82 - Jan Official Monthly Bulletin of AACO

2 Arab world marks an increase of 2.8% in November 2013 in international passenger numbers - p. 7 AVIATION WITHIN THE ARAB WORLD GROWTH p: 10 GLOBAL ARAB AVIATION SPREADING OUT p: 26 PARTNER AIRLINES p: Oman, US pact on open skies - p. 42 ARAB AIRLINES ECONOMICS p: 11 TOURISM p: 34 EXPANSION p: 14 COLLABORATION p: 36 INDUSTRY PARTNERS p: AACO & RTC CALENDARS p: LAURELS p: 17 ENVIRONMENT p: 36 AACO MEMBERS & PARTNERS p: AMR Corporation and US Airways complete merger to create the new American Airlines - p. 46 TECHNOLOGY & E-COMMERCE p: 18 TRAINING p: 19 MRO p: 19 ARAB AIRPORTS p: 20 REGULATORY TONE p: 38 AN AVIATION MARKET IN FOCUS: ALGERIA p: 44 WORLD NEWS p: 46 ATM p. 23 Issue 82 - Jan. 2014

3 Foreword It has been a very active year for members of the Arab Air Carriers Organization which have reached out to even more passengers in almost all parts of the globe. To cite few examples, Emirates announced that its fleet has circled the globe 18,000 times in 2013 conducting 164,635 flights which carried 43 million passengers in 2013 and 2.1 million tons of cargo in the financial year, while Etihad Airways achieved its highest ever passenger and cargo volumes where nearly 12 million passengers flew with the airline translating into an increase of 16% over 2012 figures in addition to a 32% increase in cargo volumes reaching 486,753 tons of freight and mail. During the last month of the year, AACO airlines maintained their thrust towards growth. Within the region, some airlines enhanced their networks of operations; however, mainly within the GCC area, probably due to the instability in some other parts of the Arab world; Air Arabia added a new daily flight between Sharjah and Doha, Gulf Air launched its first flight to Al-Maktoum International, while flynas inaugurated a new hub in Medina and expanded its Riyadh- Kuwait sector with 4 weekly flights. In November 2013, Emirates offered the highest ASKs on international routes within the Arab world followed by EgyptAir and Qatar Airways respectively. On routes going in and out of the Arab region, mainly expansions on such routes were also by Gulf carriers in addition to EgyptAir. As well non-arab carriers have launched new services to cities in the region such as Jet Airways (Kochi and Chennai to Dammam) and Aegean Airlines (Athens to Abu Dhabi). Collaborating with global partners, last month, Etihad Airways partnered with Air Baltic under a new codeshare agreement between Abu Dhabi and Riga, while Oman Air and Turkish signed a codeshare agreement covering services between Oman and Istanbul. It s worth adding here that the Sultanate of Oman recently signed an open skies agreement with the US allowing for full flexibility for air services operated by carriers of both countries. As for AACO members fleet updates, Emirates welcomed its 43 rd and 44 th A380s last month and firmed up an order for 50 additional aircraft of the same type; while Air Algerie announced commitment for 8 Next-Generation B s and 3 ATR s, Iraqi Airways firmed a purchase order to acquire 5 CS300 mainline jetliners from Bombardier including options on 11 CS300 aircraft, Kuwait Airways signed an MoU with Airbus to buy 10 A and 15 A320neo Family aircraft, and Qatar Airways converted its order for 6 A319neo twinjets into larger A320neo variant. AACO airlines innovation and excellence of service has been recognized globally; Etihad Airways has been crowned World s Leading Airline at the 2013 World Travel Awards, in addition to World s Leading First Class, and World s Leading Airline Cabin Crew. Air Arabia was named Low-Cost Carrier of the Year at Aviation Business Awards Gulf Air picked up award for Best Online Application for Business and Commerce at MEET ICT Conference and BITEX, while Oman Air s Annual Report was adjudged the Gold winner in the category for Non-Traditional Annual report-airline amongst hundreds of entries from over 60 countries. Deploying new technologies to support their operations, AACO airlines have been at the forefront in this area. Last month, Air Arabia enhanced its online offering by launching a new refurbished website, Gulf Air became one of the first airlines to successfully complete the Oracle E-Business suite to R12, Etihad Cargo implemented IATA s new technology standard for air cargo Issue 82 - Jan

4 OVERALL TRAFFIC - ARAB WORLD communications the Cargo-XML, and flynas reached a five-year agreement with Jeppesen that includes electronic flight bag, digital tailored navigation data and flight planning services. Algeria is our country of focus for this issue of the Nashra. With land area of 2.3 million km2, a population of almost 38 million and number of passengers totaling only 6.2 million in 2012, the aviation sector of this country is one of great potential for growth. More details are available on page 44. Enjoy your reading. We also welcome your feedback and rating of this issue at the end of the publication. We estimate international passenger numbers to, from, & within the Arab world to have increased by 2.8% in November 2013 compared to November 2012, which follows an increase of 7.9% in October 2013 compared to October % 15% 10% 5% Monthly International Passenger Numbers' Change to, from and within the Arab World Dec 12 to Nov 13* compared to same month in previous year 0% -5% Source: AACO, IATA YoY Growth 12-Month Average Growth Effect of Ramadan *Estimated In November 2013, AACO members increased the number of their offered seats to, from, and within the Arab world by 6.9%, while other airlines increased their number of seats offered by 8.4%, leading to 7.4% year-on-year increase in the total number of seats offered. Issue 82 - Jan

5 AVIATION WITHIN THE ARAB WORLD

6 Aviation in the Arab World GROWTH PASSENGER TRAFFIC International passenger numbers within the Arab world are estimated to have increased by 7.4% in November 2013 compared to November 2012 following an increase of 9.4% in October 2013 over October Passenger traffic within the Arab World Nov 13* over Nov 12 Within Arabian Peninsula 15.8% Within Near East (14.6%) Within North Africa 60.1% Between Arabian Peninsula & Near East (5.0%) Between the Near East and North Africa 9.3% Between Arabian Peninsula & North Africa 8.2% Source: AACO, IATA *Estimated 20% 15% 10% 5% 0% -5% Monthly International Passenger Numbers' Change within the Arab World Dec 12 to Nov 13* compared to same month in previous year 60% 50% 40% 30% 20% 10% 0% -10% Aug13-Oct13 Sep13-Nov13* Source: AACO, IATA International Passenger Numbers' Change Within the Arab World Aug13-Oct13 & Sep13-Nov13* compared to same period in previous year within Arabian Pen within N East within N Africa N East Arabian Pen N East N Africa N Africa Arabian Pen *Estimated Passenger numbers within the Arab world reported a 10% growth between August 13 & October 13 compared to same period in the previous year. Passenger numbers within the Arab world reported a 7.3% increase between September 13 & November 13* compared to same period in the previous year. Source: AACO, IATA YoY Growth 12-Month Average Growth Effect of Ramadan ARAB AIRLINES ECONOMICS *Estimated Emirates carries over 43 million passengers in 2013: Emirates aircraft flew around the world more than 18,000 times in 2013, underlining its position as a global connector of people and places. Figures show the airline s fleet travelled more than 751 million kilometres throughout the year. Taking the earth s circumference at the equator as 40,075 kilometres, this translates into the equivalent of 18,753 circumnavigations. A total of 164,635 flights were conducted, carrying over 43 million passengers, who enjoyed the finest dining in the skies and the very best in-flight entertainment. Throughout the year, the airline has received 24 new aircraft a combination of Airbus A380s, Boeing 777s and 777 freighters. Nine new passenger routes have been launched; Warsaw, Algiers, Tokyo Haneda, Stockholm, Clark, Milan- New York, Conakry, Sialkot and Kabul. Hanoi, Chicago, Kano in Nigeria and Quito in Ecuador have been launched as cargo only destinations. Emirates has won a host of awards during 2013 most notably the Skytrax World s Best Airline award. Close to 18,000 cabin crew from 137 nationalities help to deliver the world renowned on board service. Emirates Skywards membership has now reached 10 million and new partnerships for the year include American Express, Virgin America and JetBlue. The most headline grabbing news of 2013 was the dramatic announcement at November s Dubai Airshow. Held for the first time at the emerging aviation Issue 82 - Jan

7 Aviation in the Arab World city of Dubai World Central, Emirates ordered 200 aircraft Boeing 777Xs and 50 A380s. At USD 99 billion, it was the largest order in civil aviation history, and Emirates, once again, rewrote the history books. Emirates SkyCargo expands network and enhances fleet it 2013: Emirates SkyCargo has achieved another successful year and major milestones over the past twelve months. In 2013, Emirates SkyCargo expanded its network and range of destination options for its customers by launching four new cargo-only destinations which began with Hanoi in Vietnam on 6 February, Chicago in the US on 3 March, Kano in Nigeria on 4 October, and Quito in Ecuador on 3 December. It also began services to Warsaw, Algiers, Haneda, Stockholm Clark, Conakry, Sialkot and Kabul with the launch of passenger services offering belly-hold capacity to these eight destinations. To support its network growth, Emirates SkyCargo expanded its fleet during 2013 by adding three new Boeing 777 Freighter aircraft. It now operates 12 freighters, 10 B777 Fs and two B ERFs which currently serve 43 destinations around the world. The airline carried 2.1 million tons of cargo across its network in the financial year and was ranked number one amongst the top airlines for scheduled Freight Ton Kilometers flown internationally according to the latest World Airline Transport Statistics published by IATA. This year SkyCargo has won numerous of prestigious industry awards, including Cargo Airline of the Year 2013 (Air Cargo Week), Cargo Airline of the Year 2013, Best Middle East Cargo Airline (both Air Cargo News), Best Air Cargo Carrier Middle East (AFSCA), Cargo Operator of the Year (SCATA) and Air Cargo Excellence Award (Air Cargo World), to name but few. Looking forward into 2014, Emirates SkyCargo operations will move to Dubai World Central Al Maktoum International Airport which is set to become the home of its freighter operations from April Etihad Airways records double-digit passenger and cargo growth in 2013: Etihad Airways is celebrating a year of record-breaking success after achieving its highest ever passenger and cargo volumes in Nearly 12 million people flew with Etihad Airways last year, marking a significant increase of nearly 16% in comparison to 2012 s figure of 10.3 million. Etihad Airways carried 73% of the more than 16.4 million passengers who travelled through Abu Dhabi airport in With the addition of the airline s equity alliance partners that operate flights into Abu Dhabi, the combined total rises to 79% of passenger traffic at Abu Dhabi airport. Six destinations were introduced to Etihad Airways network in 2013, with new services launched to Washington DC in March, Amsterdam in May, Sao Paulo and Belgrade in June, Sana a in September, and Ho Chi Minh City in October. Frequencies were also increased on 18 existing routes last year and new codeshare agreements were signed with Kenya Airways, Air Serbia, South African Airways, Belavia, Korean Airlines, Air Canada and airbaltic. During 2013, building on its organic growth, Etihad Airways also expanded its codeshare and equity partnerships, which delivered more than 1.8 million passengers onto Etihad Airways flights, 38% higher than the 1.3 million in In addition to its four existing equity partners airberlin, Air Seychelles, Virgin Australia and Aer Lingus - Etihad Airways announced investments in three additional carriers in In August, the airline formalised a five-year contract to manage Serbia s national carrier, Air Serbia (formerly Jat Airways), with a 49% equity stake. This was followed in November, when the airline obtained regulatory approval from the Indian government to finalise a 24% investment in Jet Airways, and announced its intention to acquire 33.3% of the Swiss regional carrier Darwin Airline, which will become the first airline to operate under the new brand of Etihad Regional. Impressive cargo growth was also reported, with 486,753 tonnes of freight and mail flown by Etihad Airways last year, a staggering increase of 32% compared to 2012 volumes. The airline accounted for 89% of cargo imports, exports and transfers at Abu Dhabi airport last year. Etihad Airways to increase stake in Virgin Australia: Etihad Airways will increase its equity stake in Virgin Australia to 21.2% after just 25.3% of new shares floated by the Australian carrier were taken up by eligible retail shareholders. Virgin Australia Holdings announced on the completion of the retail component of its Retail Entitlement Offer in the airline s AUD million capital-raising exercise. Existing shareholders were able to purchase 5 new shares for every 14 ordinary shares they already owned in Virgin Australia. Source: Gulf News RAK Airways suspends operations until further notice: RAK Airways announced on 1 January 2014 the suspension of all operations starting 1 January and until further notice. In a written statement, the airline said, The decision for suspending operations was taken following increased pressures on the carrier s performance due to continuous market conditions, increased operating costs and the impact of the regional political instability on the overall aviation industry. The board of directors took the decision today to suspend the operations until further notice. We believe this decision is in the best interest of the airline and its shareholders. We will take this time to re-evaluate the best options available for RAK Airways future as well as those that fit the industry requirements of the emirate of Ras Al Khaimah. RAK Airways network included flights from RAK International Airport to Doha, Peshawar, Islamabad, Lahore, Jeddah, Riyadh, Calicut and Kathmandu. Issue 82 - Jan

8 Aviation in the Arab World EXPANSION ROUTES Airline From To Date Weekly Frequency Aircraft Type G9 Sharjah Doha 6 Jan x to 21x A320 GF Bahrain Dubai (DWC) 8 Dec. 13 7x A320 Jeddah 14x Dammam 7x Medina 12 Dec. 13 XY Riyadh 14x A320 Jizan 3x Riyadh Kuwait 13 Jan. 14 4x Air Arabia adds daily frequency to Doha: Air Arabia has increased its existing twice daily services between Sharjah and Doha to three times daily, becoming one of the frequent fliers between the two countries. Air Arabia entered Qatar with a regular service to Doha on January 6, Over the past decade, the airline continued to enjoy good performance on the Sharjah-Doha route which resulted in the airline expanding its services from a few weekly flights to three times daily. With the additional frequency, the number of weekly flights to Doha will go up to 21 non-stop services, which depart Sharjah International Airport. Gulf Air launches first flight to Al Maktoum International: Gulf Air launched its first flight to the new Al Maktoum International Airport at Dubai World Central (DWC) on 8 December, becoming the first full service carrier to commence operations to the new airport. The new service is an addition to the airline s current operation of 51 flights per week into Dubai International. Gulf Air will be operating its new A320 aircraft on all of it its flights between Bahrain International Airport and Al Maktoum International. Qatar Airways delays Saudi operation Al Maha Airways until 2014: Qatar Airways has named its forthcoming Saudi Arabian carrier Al Maha Airways but says it will not start operations until the first half of 2014 at the earliest. Qatar, along with a Gulf Air-linked group, was awarded in December 2012 a licence to operate domestic flights in Saudi Arabia as part of overdue reform in the aviation and tourism sector. flynas inaugurates new hub in Madinah: flynas has launched its new hub at Prince Mohammed Bin Abdulaziz International Airport in Medina starting from 12 December The launch of the new hub resulted in flynas increasing the frequency of domestic flights from Medina with two flights a day to Jeddah, one flight daily to Dammam, two flights daily to Riyadh and three flights a week to Jizan. In addition, flynas is adding high frequency flights from Medina to two new international destinations, Jordan and Turkey with three flights a week to Amman, Istanbul, and Antakya and two flights a week to Kuwait. flynas expands Riyadh-Kuwait sector with 4 weekly flights: flynas continues its program of expansion by adding Riyadh-Kuwait to its fast growing list of key sectors. The flynas Riyadh-Kuwait flight schedule will start on 13 January 2014 with four flights a week. CAPACITY AND DEMAND Passenger Air Services Within the Arab World - Nov SRS Analyzer AACO members increased the number of seats offered within the Arab world by 3.7% compared to November 2012 whereas other airlines increased that number by 8.5%, leading to a 4.4% year-on-year increase in the total number of seats offered within the Arab world. Available Seats within the Arab world for international and domestic routes constituted 24.4% and 10.1% respectively of the total Available Seats to, from, and within the Arab world in November Capacity* of Top 10 Carriers within the Arab World (Int l Operations) Airline ASKs (Million) Departures Seats EK 1, , ,540 MS , ,678 QR , ,063 FZ , ,701 SV , ,766 EY , ,894 G , ,366 GF , ,881 RJ , ,688 WY , ,778 Grand Total 6, ,958 5,742,990 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Issue 82 - Jan

9 Aviation in the Arab World FLEET Air Algerie announces commitment for eight Next-Generation s and 3 new ATR s: Air Algerie and Boeing announced a commitment for eight Next-Generation airplanes. When finalized, the order will be worth USD 724 million at list prices and will be posted to the Boeing Orders & Deliveries website. The continues to be the backbone of Air Algerie s fleet. So far, we are pleased with these aircraft, and anticipate receiving all eight of these new units before the end of 2016, said Mr. Mohamed Salah Boultif, Chief Executive Officer of Air Algerie. Moreover, Air Algerie signed a purchase agreement for 3 new ATR s. The contract value is USD 74.1 million at current list price. The entry into service is expected from end 2014 through Sources: Boeing and ATR Double delivery takes Emirates A380 fleet to 44: Emirates has received its 43 rd and 44 th A380 aircraft with a double delivery from Airbus Finkenwerder facility in Hamburg, Germany. The 43 rd and 44 th Emirates A380s offer 14 seats in First Class, 76 seats in Business Class and 427 seats in Economy Class, and will be put into service starting 21 December, initially operating on flights to Mauritius and Munich. Emirates Airline firms up order for 50 additional A380s: Emirates Airline and Airbus have completed discussions and signed the firm contract for 50 additional A380s originally announced at the Dubai Airshow on 17 November The contract documents were finalised by Mr. Tim Clark, Emirates Airline President, during a visit to Airbus Headquarters in Toulouse, France. Iraqi Airways signs firm purchase agreement with options for up to 16 Bombardier CS300 aircraft: Bombardier Aerospace announced that Iraqi Airways has signed a firm purchase agreement to acquire five CS300 mainline jetliners. The agreement, which also includes options on 11 CS300 aircraft, follows a letter of intent (LOI) to purchase the aircraft that was announced by Bombardier on November 19 during the Dubai Airshow. As previously announced, based on the list price for the CS300 aircraft, the firm order is valued at approximately USD 387 million US and could increase to USD 1.26 billion US if the 11 options are converted to firm orders. Kuwait Airways signs MoU with Airbus to buy 10 A and 15 A320neo Family aircraft: Kuwait Airways has signed a Memorandum of Understanding (MoU) to buy ten A and fifteen A320neo Family aircraft. The order is part of Kuwait Airways fleet renewal strategy. Qatar Airways converts all A319neos to larger aircraft: Qatar Airways has converted its order for six Airbus A319neo twinjets into the larger A320neo variant. The conversion has been confirmed by the airframer s latest order and delivery data, covering November Qatar Airways had signed for six A319neos in November 2011 as part of a deal for 50 of the re-engined A320 family. This order had also included 30 A320neo and 14 A321neo jets, to be fitted with Pratt & Whitney PW1100G engines. But Qatar has revised its order, converting its entire A319neo commitment to the A320neo. Source: Flightglobal LAURELS Etihad Airways crowned World s Leading Airline: Etihad Airways enjoyed stunning success at this year s World Travel Awards, taking top honours for the fifth year in a row. At a ceremony in Doha, Qatar, Etihad Airways took home the prestigious titles of World s Leading Airline, World s Leading First Class, and World s Leading Airline Cabin Crew. Etihad Airways Corporate Affairs Team wins MEPRA Award: The Etihad Airways Corporate Affairs department won the coveted in-house team of the year at the Middle East Public Relations Association (MEPRA) awards ceremony. The award win was announced at a gala dinner in Dubai which brought the region s leading public relations and communications figures together for an evening to recognise best industry practice. Over the last 15 months, the department has rebuilt its corporate communications strategy and processes, focusing on core areas including social media, internal communications and corporate social responsibility. It has also grown its global agency network into key new markets. Air Arabia named Low-Cost Carrier of the Year at Aviation Business Awards: Air Arabia has been awarded Low-Cost Carrier of the Year at the Aviation Business Awards 2013, which took place recently in Dubai. The award recognised the airline s commitment to providing the best quality, low cost travel solutions for airline passengers in the Arab world and beyond. At the Aviation Business awards ceremony, Air Arabia was also honoured for its meaningful contributions towards the development of sustainable livelihoods, under its Charity Cloud Programme, winning the Highly Commended Award in the CSR Category. Gulf Air picks up award for Best Online Application for Business and Commerce at MEET ICT Conference: Gulf Air has scooped a MEET ICT Excellence award for the Best Online Application for Business and Commerce. The awards, part of the MEET ICT Conference and BITEX (Bahrain Information Technology Exhibition) held recently in Bahrain, recognized companies for having the best ICT products and services in the Kingdom. Issue 82 - Jan

10 Aviation in the Arab World Oman Air Annual Report wins Gold in New York: Oman Air continues to soar to greater heights. At the 27 th Annual International ARC Awards, the Oman Air Annual Report was adjudged the Gold winner in the category for Non- Traditional Annual Report - Airlines, amongst hundreds of entries from over 60 countries. The ARC Awards is the only annual report competition in the world not tied to a magazine or trade association. Its Awards are given for overall performance -- in other words, how well the annual report tells the company s story this year. Each entry is evaluated 3 times during the preliminary rounds before the final selection is made. TECHNOLOGY & E-COMMERCE Etihad Cargo implements XML Technology Standard: Etihad Cargo has become the first cargo airline in the Gulf region to implement Cargo-XML, the International Air Transport Association s (IATA) new technology standard for air cargo communications. Developed collaboratively with industry stakeholders, Cargo-XML removes the requirement for cargo paper documentation, otherwise known as an Air Waybill. The technology is now used by a growing number of airlines and other air cargo supply chain stakeholders, including shippers, freight forwarders, ground-handling agents, regulators as well as customs and security agencies. Etihad Cargo is also one of the early signatories of a new IATA multilateral agreement on electronic communication technology standards, known as Resolution 672.Stakeholder support for the new systems is on the rise, and IATA s vision is to achieve 100% electronic cargo communications by the end of Gulf Air and Oracle Corporation finalize technology upgrade: Gulf Air became one of the first airlines to successfully complete the Oracle E-Business suite upgrade to R12 using the national carrier s in-house IT capabilities. The Oracle E-Business suite upgrade to R12, which enables better security and access controls for the airline s financial functions, was completed in only a few months following extensive planning, testing and implementing on the part of Gulf Air s in-house IT team and was successfully finalized in December. flynas and Jeppesen reach five-year service agreement: flynas and Jeppesen have reached a new five-year service agreement to include electronic flight bag (EFB), digital tailored navigation data and flight planning services. Jeppesen solutions will provide increased operational efficiency on the ground and in flight and will improve situational awareness for flynas pilots. Jeppesen FliteDeck Pro EFB services will be integrated by flynas on ipad, to help eliminate paper-based flight information for airline operations and increase situational awareness in flight by providing essential data-driven, real time flight data onscreen that is displayed per the preferences of flynas pilots. flynas will access the industry-leading Jeppesen JetPlan flight planning engine, which delivers optimized flight plans to increase operational efficiency. Jeppesen flight planning solutions also provide operations management planning services and advanced support options and tools for seamless airline integration. Air Arabia enhances online offering, launches all new website: Air Arabia unveiled its new website, equipped with a number of features. The new website provides quick and easy guide allowing passengers to plan and book at the convenience of their fingertips. Moreover, the new website uses latest cutting edge technology features that not only makes the website faster to browse, but also supports visitors with smart and rich help tools that makes the information personal and geographically relevant as well as provides location-specific offers. Currently offered in 8 languages, English, Arabic, French, Russian, Spanish, German, Italian and Turkish, the new website will see addition of more languages in the months to come. TRAINING Etihad Airways and HCT sign MOU to establish the HCT - Etihad Airways Centre for Education and Professional Development: Etihad Airways has signed a Memorandum of Understanding (MOU) with the Higher Colleges of Technology (HCT) for the establishment of the HCT - Etihad Airways Centre for Education and Professional Development. This Memorandum of Understanding is part of Etihad Airways mandate to introduce new opportunities in the UAE aviation sector for UAE nationals, and empower them to play an even greater role in the airline s world-class business. The centre will be established with the aim of developing UAE nationals and preparing them for a rewarding career in the aviation industry. Both Etihad Airways and HCT will collaborate further to develop and offer a series of professional and executive development programs. These programs will include English language training, employability skills development, academic educational programs in aviation science and management, and a variety of other vocational and work related training programs that will prepare UAE nationals to take up key roles in Etihad Airways expanding global network. MAINTENANCE, REPAIR & OVERHAUL Royal Air Maroc and ATR sign a Global Maintenance Agreement: Royal Air Maroc and ATR announced the signature of a Global Maintenance Agreement (GMA) for the airline s new fleet of ATR -600 aircraft. Signed for an initial period of four years, the contract covers the four ATR s already owned by the airline. Having received its first ATR in August 2011, Royal Air Maroc was the first operator in the world to operate the aircraft. Issue 82 - Jan

11 Aviation in the Arab World As set out in this GMA contract, ATR will manage all aspects of maintenance and repair for some equipment for the airline s ATR -600 fleet. This equipment includes LRUs and propeller blades. By signing this contract, ATR guarantees Royal Air Maroc the permanent availability of these spare parts from its logistics center in Paris. The airline will also use ATR exclusively for all of its maintenance procedures. This will have a positive impact on maintenance costs per flight hour. Oman Air signs exclusive repair contract with Bombardier Aerospace: Oman Air has announced that it has signed a repair agreement with Bombardier Aerospace, based in Belfast, UK. The eight-year contract will see Bombardier perform all repair work on Rolls-Royce Trent 700 inlet cowls for Oman Air s fleet of Airbus A330 aircraft. Oman Air currently operates seven A330s, each fitted with Rolls-Royce Trent 700 engines, and has three further A330s on order for delivery from In July of this year, the carrier announced that Trent 700s had also been ordered for the new aircraft. In addition to its seven Airbus A330s, Oman Air s current fleet includes 17 Boeing B737s, four Embraer E175s and two ATR 42s. Joining the three further A330s currently on order are 11 more B737s and six Boeing B787 Dreamliners, which will allow the airline to further expand its network across the Middle East, Europe, Asia and Africa, and to increase frequencies on existing routes. ARAB AIRPORTS Top 20 Airports by International Seats Offered on Operations To, From, and Within the Arab World - November 2013 Top 20 Airports by Int l Seats Offered on Operations To, From, and Within the Arab world Airport Number of Seats Airport Number of Seats DXB 7,756,200 SHJ 786,179 DOH 2,844,235 LHR 739,622 AUH 1,849,801 AMM 736,848 CAI 1,504,217 IST 709,648 JED 1,387,297 BEY 694,142 KWI 1,135,078 TUN 604,514 RUH 1,050,340 CDG 530,412 BAH 958,986 ALG 496,363 MCT 901,617 BOM 487,523 CMN 800,560 DMM 450,818 Source: AACO, SRS Analyzer Abu Dhabi International Airport passenger traffic up 9.8% in November 2013: Abu Dhabi International Airport registered a 9.8% increase in passenger traffic for November 2013, compared to the same period in 2012, at 1,330,378 passengers. According to a statement from Abu Dhabi airports, aircraft movements increased by 10.7% at 11,856. Cargo traffic figures were also on the rise, with over 66,516 tons of freight handled throughout the month, recording a 33.3% increase compared to the same month in The top five destinations in November 2013 were India, Germany, the UK, Thailand and Pakistan. Aircraft movement reached 11,891 in October 2013, representing a 10.2% increase compared to October 2012, while cargo traffic also grew, marking a 17.9% increase with more than 62,223 tons of cargo moved. Abu Dhabi International Airport now more accessible for persons with reduced mobility: As part of Abu Dhabi Airports commitment to delivering world-class services for all passengers, Abu Dhabi Airports is further enhancing Abu Dhabi International Airport s accessibility by offering golf carts to passengers with wheelchairs. The golf carts are based in Terminals 1 and 3 and will assist in transporting passengers with reduced mobility between the departure and arrival halls, and the aircraft gates. Source: ADAC Dubai International set to surpass annual forecast of 65.4 million passengers: Dubai International is set to surpass the traffic forecast for the year 2013, as the airport recorded another month of high growth in November 2013, according to the monthly traffic report issued by Dubai Airports. With traffic in November reaching 5,337,544, up 9.5% compared to 4,875,003 in the corresponding period in 2012, the airport has registered 12 consecutive months with monthly traffic exceeding 5 million passengers. The year to date (November 2013) totalled 60,384,407 passengers compared with 52,363,589 recorded during the same period in 2012, an increase of 15.3%. Aircraft movements in November increased by 6% to 31,525 from 29,749 recorded during the same month in The year to date movements totalled 337,121, up 7.6% compared to 313,300 movements between January and November Dubai International handled 223,195 tonnes of cargo in November, an increase of 11.6% compared to 200,060 tonnes recorded during the same month in The year to date freight volumes reached 2,217,429 tonnes compared to 2,077,676 tonnes handled during the corresponding period last year, an increase of 6.7%. Source: Dubai Airports SITA supplies self-service kiosks to Kuwait International: Kuwait International Airport s seven million annual passengers will enjoy new self-service check-in kiosks in a deal with air transport IT specialist, SITA. Issue 82 - Jan

12 Aviation in the Arab World The new kiosks, which are in the final stages of testing, are part of an eightyear contract renewal for SITA s AirportConnect Open passenger processing platform. SITA s Airport Connect Open enables airports, airlines and their handling agents to access their respective IT applications in real time on shared equipment. It also allows any airline to use any agent desk, gate or self-service kiosk for passenger check-in and boarding. Kuwait s Airport Connect Open renewal with SITA covers some 200 positions at check-in desks, transfer and reclaim and 12 common-use self-service check-in kiosks. Queen Alia International Airport achieves positive traffic growth in October and November 2013: Airport International Group (AIG) - the Jordanian company responsible for the rehabilitation, expansion and operation of Queen Alia International Airport (QAIA) - reported robust traffic trends in both October and November Registering a 14.1% increase in passenger traffic (PAX), October 2013 brought the total number of passengers handled at QAIA to 600,855 PAX compared to 526,584 PAX during the same month in Year-to-date (YTD) passenger numbers also rose by 4.05% to reach 5,570,634 PAX in comparison to 5,353,776 PAX in October Likewise, aircraft movements (ACM) jumped by 6.26% to 6,078 ACM as opposed to the 5,720 ACM recorded during the same month last year. YTD ACM went up by a marginal 0.83%, counting 57,252 ACM in comparison to 56,783 ACM over the same period in In turn, QAIA experienced a slight 0.3% lull in PAX this November, which settled at 453,444 PAX compared to 454,984 PAX during On a positive note, YTD PAX rose by 3.7% to 6,024,078 PAX compared to 5,808,760 PAX last year. The month also counted 5,252 ACM, an increase of 0.2% compared to 5,242 ACM of the same month in YTD ACM marked a 0.8% increase from 62,025 ACM in 2012 to 62,504 ACM in Source: Airport international Group Saudi Arabia poised to expand five airports: Saudi Arabia is planning to expand five of its domestic airports, with tenders worth millions expected to be filled by early 2014, state media have reported. The kingdom s aviation industry is booming due to increases in population, wealth and business. To help cope with the rapid increase in demand, the kingdom s General Authority of Civil Aviation (GACA) has approved Qatar Airways to begin operating domestic flights, under the name Al Maha Airways, from the first half of It also has approved a fourth Saudi operator, Saudi Gulf Airlines, which will be based in the east-coast city of Dammam and initially offer domestic services before expanding internationally. Airports will be upgraded in Jazan, Abha, both in the west of the kingdom, Qassim, located in the centre, Arar and Jouf, both in the north. GACA Chairman Mr. Khaled Al Khaibari said contractors had been short-listed. Work on the first airport, Jazan, would include more than quadrupling the operational area and should begin early next year, followed by Arar and Jouf airports, he said. The number of passengers at Jouf airport is expected to soar from 175,000 presently to 1 million after the expansion. Arar airport will increase from 1,810sqm to 7,560sqm, while capacity will grow from 100,000 to 518,000 passengers. Prince Naif Airport in Qassim capacity will double from the existing 750,000 to 1.5 million passengers. Abha Regional Airport, which will grow eight-fold, will be implemented in two phases, with the first increasing capacity to 3.5 million passengers, then to 5 million. AIR TRAFFIC MANAGEMENT Thales modernizes Iraq s Air Traffic Management: Thales signed a contract with the Iraqi Civil Aviation Authority (ICAA) for the modernization of Iraqi airspace. Thales will deliver a TopSky-ATC centre in Baghdad, this in addition to the ATC centre equipped in Basrah in This contract makes Thales s TopSky-ATC the referenced air traffic control system in Iraq. Thales will also supply 3 latest generation RSM970S secondary radars to the ICAA, which will complement Iraqi air space coverage. Source: CANSO Libya, Italy sign contract to improve Libyan Aviation: The Italian civil aviation authority ENAV and its Techno Sky air traffic control company have signed an agreement with Libyan civil aviation authority LCAA to support improvements in Libyan air navigation. The agreement calls for providing technical consultancy and training services with the aim of improving Libya s civil aviation services. The contracts were signed by ENAV and Techno Sky chiefs, Massimo Garbini and Mauro Cipollini, with LCAA general director Naseriddin Shaib Alain. The Italian ambassador to Libya Giuseppe Buccino Grimaldi attended the signing ceremony. The project aims to draw up a strategy to modernize air navigation services in Libya through planning, organizational analysis, design, and skills development for the specific needs of Libyan aviation, said ENAV. (ANSAmed). Source: The Tripoli Post Issue 82 - Jan

13 GLOBAL ARAB AVIATION

14 Global Arab Aviation SPREADING OUT PASSENGER TRAFFIC Passenger numbers on routes to and from the Arab world are expected to have increased by 1.3% in November 2013 compared to November 2012, after a growth of 7.4% in October 2013 over October Traffic to and from the Arab world November 13* over November 12 With the Americas (6.9%) With Europe (0.1%) With Mid Asia 4.7% With Far East and Australasia 1.3% With Sub Saharan Africa (2.7%) Source: AACO, IATA *Estimated 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Monthly Passenger Numbers' Change to and from the Arab World Dec12 to Nov 13* compared to same month in previous year Passenger Numbers' Change To and From the Arab World Aug13-Oct13 & Sep13-Nov13* compared to same period in previous year 16% 14% 12% 10% 8% 6% 4% 2% 0% Aug13-Oct13 Sep13-Nov13* Source: AACO, IATA With the Americas With Europe With Mid Asia With AustralAsia With Sub- Saharan Africa *Estimated Passenger numbers within the Arab world market reported an 9.7% growth August 13 & October 13 compared to the same period in previous year. Passenger numbers within the Arab world market reported an 4.2% increase between September 13 & November 13* compared to the same period in previous year. Source: AACO, IATA *Estimated ROUTES Airline From To Date Weekly Freq. Aircraft type Mauritius 16 Dec. 13 unchanged (14x) B to A380 (7x) EK Dubai Taipei 10 Feb. 14 7x B ER Gatwick 30 Mar. 14 unchanged (21x) B ER to A380 (7x) EY GF Abu Dhabi Bahrain MS Cairo QR Doha YoY Growth 12-Month Average Growth Effect of Ramadan Mumbai 7x 9 Dec. 13 New Delhi 7x to 14x Mix of A340 & A330 Kochi Jun. 14 7x to 14x A321 Perth Rome 15 Jul. 14 7x A Banglore Jul. 14 N/A Chennai 7x to 14x A321 Hyderabad Oct. 14 N/A Dallas 3 Dec. 14 3x B LR Thiruvananthapuram 15 Dec. 13 5x A321 Sialkot 17 Jan. 14 2x A320 Jakarta via Bangkok 22 Dec. 13 4x B ER Hangzho 20 Dec. 13 4x A330 Larnaca 29 Apr. 14 4x A320 9W Kochi Dammam 15 Jan. 14 7x B Chennai Dammam via Abu Dhabi A3 Athens Abu Dhabi 30 Mar. 14 4x A320 Issue 82 - Jan

15 Global Arab Aviation Emirates flies to Taipei: Emirates will begin a daily, non-stop service between Taipei and Dubai from 10 th February 2014, establishing the first non-stop connection between Taipei and the Middle East. Emirates has been expanding its global route network to provide customers with even more travel options. Emirates will fly a Boeing ER on the Taipei route, equipped with eight luxurious private suites in First Class, 42 lie-flat seats in Business Class, and generous space for 304 passengers in Economy Class. Emirates A380 arrives to Gatwick: Emirates will become the first airline to operate a regularly scheduled A380 service to London Gatwick airport. From 30 March 2014, the airline s 489-seat A380 will replace the Boeing ER on EK flight 09/10, bringing a 36% increase in capacity on one of its three daily flights. The two decks of the Emirates A380 will offer 399 seats in Economy Class, 76 lie-flat seats in Business Class and 14 luxury First Class Private Suites. Emirates launches a daily A380 service to Mauritius: Emirates launched its 24 th A380 route, working with its partners in Mauritius to say Hello A380 in style. At the airport ceremony to welcome the first daily A380 service, Emirates signed a new and enhanced 10 year commercial cooperation agreement with Air Mauritius, and a renewed Memorandum of Understanding with the Mauritius Tourism Promotion Authority. The A380 allows Emirates to bring an extra 153 passengers each day to the beautiful island set in middle of the Indian Ocean. It is the first airline in the world to operate an A380 service to a destination in the Indian Ocean. Etihad Airways to commence daily flights to Jaipur: Etihad Airways will expand its destination network in India with the launch of a daily service from Abu Dhabi to Jaipur. The new flights, which will commence on 1 April 2014, bring the total number of Indian cities served by Etihad Airways to 10, with existing routes including Ahmedabad, Bangalore, Chennai, Hyderabad, Kochi, Kozhikode, Mumbai, New Delhi and Trivandrum. Etihad Airways will operate the daily service to Jaipur with Airbus A320 aircraft in a two-class configuration, featuring 16 Pearl Business Class seats and 120 Coral Economy Class seats. Etihad Airways to commence flights to Australia s Perth: Etihad Airways will commence daily flights to Perth, Western Australia on July 15, The non-stop services between the airline s hub and its fourth Australian gateway bring to 35 the number of weekly flights which Etihad Airways and Virgin Australia operate between Australia and Abu Dhabi. An Airbus A aircraft with 262 seats 22 seats in Pearl Business Class and 240 in Coral Economy Class will fly the route. Etihad Airways adds Rome as second Italian gateway: Etihad Airways will launch daily non-stop flights from Abu Dhabi to the Italian capital Rome on 15 July Subject to regulatory approvals, Rome Fiumicino airport will become Etihad Airways second Italian gateway after Milan Malpensa. The route will be operated by an Airbus A aircraft in a two-class configuration, featuring 22 fully-flat beds in Pearl Business Class and 240 seats in Coral Economy Class. Rome is one of the world s most visited cities, attracts business and leisure travellers year-round, and with the historic Vatican City within its environs, is a major pilgrimage site. The city is also a hub for Etihad Airways codeshare partner, Alitalia. Etihad Airways already places its EY flight code on Alitalia s existing Abu Dhabi- Rome services and beyond to cities such as Milan, Bucharest, Sofia, Vienna, Venice, Madrid, Malaga, Budapest, Malta and Barcelona. Etihad Airways announces major plans for India following approval of Jet Airways partnership: Etihad Airways commences major expansion of its Indian operations following the approval of historic 24% investment in Jet Airways. Central to the Etihad Airways plan is the use of Abu Dhabi as a global hub connecting international passengers and freight with flights to and from India. Pending the opening of a new facility, United States-bound passengers will be able to clear US immigration and customs at Abu Dhabi Airport. The first stage of the Etihad Airways strategy includes additional flights or the introduction of larger aircraft on existing routes to India. The initial flight increases by Etihad Airways are: Mumbai and New Delhi: 7 to 14 flights per week (immediate) Kochi: 7 to 14 flights per week (June 2014) Bangalore and Chennai: 7 to 14 flights per week (July 2014) Hyderabad: 7 to 14 flights per week (October 2014) As well as more flights, Etihad Airways is introducing larger aircraft in some markets. Etihad Airways will also codeshare on new flights by Jet Airways between India and the U.S., via the Abu Dhabi hub, subject to regulatory approval. Dallas to join Etihad Airways flight network in 2014: Etihad Airways will launch direct flights to Dallas Fort Worth, Texas, in 2014, Etihad Airways fifth destination in the United States. The addition of the new ultra-long haul three flights a week service, which will start on December 3, 2014, follows Etihad Airways pledge to continue to expand its US flight network to cater for growing demand from business and leisure travelers. Etihad Airways will deploy a three cabin ultra-long range Boeing LR on the Dallas operation. The aircraft will be configured to carry 237 guests, with 8 Diamond First Class suites, 40 Pearl Business Class flatbed seats, and 189 Coral Economy Class seats. Issue 82 - Jan

16 Global Arab Aviation Gulf Air launches first flight to Trivandrum International Airport: Gulf Air launched its first flight to Trivandrum International Airport, commencing its operations of five weekly flights between Bahrain and Thiruvananthapuram in India. Gulf Air recently introduced brand new Airbus A321 aircraft into India which are equipped with the latest in-flight entertainment technology and fully-flat beds in Falcon Gold class. With the new addition of Trivandrum, Gulf Air now flies to five Indian destinations. Gulf Air announces the launch of flights to Sialkot in Pakistan: Gulf Air announced that it will start services to its fifth destination in Pakistan - Sialkot - on 17 January 2014, with two flights per week. Gulf Air will operate flights to Sialkot with an Airbus A320 aircraft that offers 16 Falcon Gold class seats and 120 in economy. EgyptAir starts new service to Jakarta from 22 nd December: Processing on the network expansion plan, EgyptAir started serving Jakarta on 22 nd of December. The carrier will operate 4 weekly flights via Bangkok on its Boeing ER. Qatar Airways lands in Hangzho: Qatar Airways launched its last route of the year, touching down in down in Hangzhou on 20 December. Hangzhou is the airline s seventh route in China, and is preceded by Chengdu, which was introduced to the airline s route network in September. An Airbus A330 will be operated on the route in a two-class configuration featuring 24 seats in Business Class and 236 seats in Economy. Upon arrival an official airport ceremony was held, attended by dignitaries from the Chinese government and Hangzhou International Airport. A total of 45 weekly services are offered non-stop between Doha and each of these cities. Qatar Airways to serve Cyprus - new flights to Larnaca from spring 2014: Qatar Airways is continuing its steady expansion plan for the coming year with the announcement of flights to Larnaca International Airport in Cyprus commencing 29 April The new route, which will fly four times a week to Larnaca, will be operated by an Airbus A320, configured in a two-class configuration with 12 seats in Business Class and 132 in Economy Class. Jet Airways to launch daily Kochi and Chennai to Dammam: Effective 15 January 2014, Jet Airways will launch daily flights from Kochi and Chennai to Dammam from next month to strengthen its global network. While the Chennai flight to Dammam in Saudi Arabia will be operated via Abu Dhabi, the Kochi-Dammam service will be a direct one. The airline will deploy Boeing aircraft for the two new services. Aegean Airlines to operate to Abu Dhabi: Etihad Airways has signed a codeshare agreement with Aegean Airlines. The agreement will see Aegean Airlines commence a four times a week service between Athens and Abu Dhabi on 30 March 2014 and, subject to regulatory approvals, Etihad Airways will place its EY flight code on the new flight. Aegean Airlines will operate its new Athens-Abu Dhabi service with a 168-seat Airbus A320 aircraft. In return, Aegean will offer new codeshare routes between Athens and seven destinations across the Gulf region, Australia and South Africa. CAPACITY AND DEMAND Passenger Air Services to & from the Arab World - Nov SRS Analyzer AACO members increased the number of seats offered to and from the Arab world by 9.3%, while other airlines increased the number by 8.4% which resulted in a growth of 9.0% in the total number of offered seats to and from the Arab world. Percentage of the Total Available Seats To and From the Arab World With Europe 29.5% With Mid Asia 18.6% With Australasia 10.4% With the Americas 2.5% With Sub Saharan Africa 4.5% Source: AACO, SRS Analyzer Capacity* of Top 10 Carriers (Arab World & Europe) Airline ASKs (Million) Departures Seats EK 6, ,412 1,388,874 QR 2, , ,096 EY 1, , ,577 BA ,191 TK , ,006 LH ,813 AT , ,553 AF , ,932 MS , ,466 U , ,848 Grand Total 22, ,479 6,950,061 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Issue 82 - Jan

17 Global Arab Aviation Capacity* of Top 10 Carriers (Arab World & Australasia) Airline ASKs (Million) Departures Seats EK 7, ,504 1,010,092 QR 2, , ,114 EY 2, , ,253 SV ,831 QF ,000 CX ,980 MS ,759 JT ,760 PR ,992 SQ ,790 Grand Total 16, ,332 2,445,445 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Capacity* of Top 10 Carriers (Arab World & Sub Saharan Africa) Airline ASKs (Million) Departures Seats EK 2, , ,746 QR ,388 AT ,858 MS ,659 EY ,465 ET ,624 KQ ,741 AH ,612 SV ,816 TU ,080 Grand Total 4, ,118 1,066,710 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Capacity* of Top 10 Carriers (Arab World & Mid Asia) Airline ASKs (Million) Departures Seats EK 2, , ,999 QR 1, , ,742 SV ,219 G , ,286 AI , ,078 9W , ,596 IX , ,620 EY , ,684 FZ , ,869 WY , ,250 Grand Total 11, ,656 4,367,024 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Capacity* of Top 10 Carriers (Arab World & the Americas) Airline ASKs (Million) Departures Seats EK 2, ,180 QR 1, ,634 EY ,748 SV ,624 UA ,840 MS ,604 DL ,140 RJ ,620 AT ,000 KU ,566 Grand Total 6, , ,732 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Issue 82 - Jan

18 Global Arab Aviation TOURISM UNWTO - International tourism an engine for the economic recovery: In the first nine months of 2013, international tourism grew by 5% according to the latest UNWTO World Tourism Barometer. The number of international tourist arrivals reported by destinations around the world increased by some 41 million between January and September, growing above UNWTO s initial forecast and creating an important stimulus to the receiving economies. International tourist arrivals grew by 5% in the first nine months of the year, to reach a record 845 million worldwide, an estimated 41 million more than in the same period of Growth was driven by Europe and Asia and the Pacific, both seeing tourist numbers increase by 6%. In Europe, the world s most visited region, international tourist arrivals grew by 6% led by above-average results in Central and Eastern Europe (+7%) and Southern and Mediterranean Europe (+6%). This growth exceeds the initial forecast for 2013 and is double the average growth rate of international tourism in Europe since 2000 (+2.7% a year between 2000 and 2012). Asia and the Pacific (+6%) continued to show robust results, bolstered by South-East Asia (+12%). The Americas (+3%) reported comparatively weaker results, with better performance in North America (+4%) and Central America and (+3%). In Africa (+5%) growth was fuelled by the recovery in North Africa (+6%), while the Middle East saw only a marginal increase (+0.3%). Growth in tourism receipts confirms positive trend: The positive trend registered in international tourist arrivals is reflected in international tourism receipts reported by destinations worldwide for the first six to ten months of the year. Among the 25 largest international tourism earners, receipts saw doubledigit growth in ten destinations - the United States (+11%), Macao (China) (+10%), the United Kingdom (+18%), Thailand (+28%), Hong Kong (China) (+21%), Turkey (+13%), India (+13%), Japan (+23%), Greece (+15%) and Taiwan (Pr. of China) (+12%). Exponential growth in outbound expenditure by China and Russia: Among the top ten source markets, the Russian Federation led growth, with expenditure on trips abroad up by 29% in the first nine months of the year. This follows the strong growth in recent years, as a result of which Russia has moved up from the 12th largest outbound market in 2000 to the 5 th largest in 2012 (USD 43 billion). China, which became the number one source market in the world last year (USD 102 billion), also continued to see rapid growth, posting a 22% increase in expenditure on outbound tourism through September Outbound expenditure from other BRIC economies was also strong in Brazil (+15%). The performance of advanced economy source markets was comparatively weaker: Canada (+3%), the United States (+2%), the United Kingdom (+2%) and France (+2%) grew moderately, while Germany reported zero growth and Japan, Australia and Italy saw declines in expenditure. Source: UNWTO Key Figures for MENA and Other Regions Extracted From the Barometer: International Tourist Arrivals (World, North Africa & Middle East regions) Full Year Share Percentage Change * 2012* 10/09 11/10 12*/ * (million) (%) YTD World , North Africa (9.1) Middle East (6.4) (5.6) 0.3 Source: World Tourism Organization (UNWTO) *estimated Outlook of International Tourists * real full year, change projection World (3.9%) 6.5% 4.9% 4% 3% and 4% Africa %3.4 %9.3 (0.7%) 6.2% 4% and 6% Middle East (5.2%) 11.6% (6.4%) (7.0%) 0% and 5% Europe (5.0%) 3.1% 6.4% 3.6% 2% and 3% Asia and the Pacific (1.6%) 13.2% 6.6% 6.9% 5% and 6% Americas (4.7%) 6.6% 3.6% 4.5% 3% and 4% Source: World Tourism Organization (UNWTO) *estimated International Tourist Arrivals by (sub)region - selected countries & territories * 11/10 12*/11 Full Year Change (1,000) (%) North Africa 13,911 18,756 17,055 18,463 (9.1) 8.3 Algeria 1,443 2,070 2,395 2, Morocco 5,843 9,288 9,342 9, Sudan Tunisia 6,378 6,902 4,782 5,950 (30.7) 24.4 Middle East 36,339 58,181 54,449 51,425 (6.4) (5.6) Egypt 8,244 14,051 9,497 11,196 (32.4) 17.9 Jordan 2,987 4,207 3,960 4,162 (5.9) 5.1 Kuwait Lebanon 1,140 2,168 1,655 1,365 (23.7) (17.5) Palestine (14.1) 9.3 Qatar 913 1,519 2,527 1,170 n/a n/a Saudi Arabia 8,037 10,850 17,498 14, (18.4) Syria 3,571 8,546 5,070 - (40.7) - UAE* 5,833 7,432 8,129 8, Yemen 336 1, ,174 (19.1) 41.6 * Dubai Only Source: World Tourism Organization (UNWTO) Issue 82 - Jan

19 Global Arab Aviation Etihad Airways and VisitBritain sign 2 million deal to increase tourism: Etihad Airways signed a three year deal with VisitBritain to increase visitor num- the MBM issue. The terms of reference and tasks for the EAG will be drawn up the Council and have a broader representation than previous groups looking at bers from the lucrative Asia Pacific and Middle East (APME) region, whilst encouraging more people to fly with Etihad Airways. The partnership agreement, The approval of the EAG marks a powerful shift away from the developed and presented at the next Council meeting. valued at 2 million, will facilitate joint marketing activities in key markets states such as Europe and the United States towards the developing world around the APME region, including India, Australia, and the GCC. and will significantly define the work of ICAO over the next three years in the development of a global MBM. The aim of the proposal is to ensure the complete participation of all ICAO Member States, the majority of which are from Record figures for Abu Dhabi tourism: More than 2.2 million hotel guests have checked into Abu Dhabi s 148 hotels and hotel apartments in the first ten the developing world, in the process. months of 2013 a 16% growth on the previous year s record performance The UNFCCC principle of common but differentiated responsibilities (CBDR), with October delivering a record monthly guest intake, guest nights tally, occupancy rate and revenues. Figures released by Abu Dhabi Tourism & Culture world, would be integrated into any global scheme, according to the BRIC in which the burden for mitigating carbon emissions falls on the developed Authority put the total number of arrivals this year at 2,270,000 with guest proposal. CBDR wording was adopted into the Assembly climate change resolution (A38-18) following BRIC pressure, resulting in formal objections from nights rising 26 % year-on-year to over seven million. Source: Breaking Travel News Europe, the US and other developed states. In the executive summary, the EAG proposers note that since 2006 there had been little other than polarised COLLABORATION disagreement within the Council and the Assembly on MBMs. The new group, they suggest, should consist of Council members, taking into Etihad partners with airbaltic on new Riga service: Etihad Airways and Latvian account equal geographic representation. Other Council members and noncarrier airbaltic launched four weekly flights between Abu Dhabi and Riga under a new codeshare partnership. invited from industry, NGOs and other bodies. The proposers recommend a Council representatives could also participate in the group, with observers Under the agreement Etihad puts its EY flight code on the airbaltic service mechanism for direct consultation with ICAO States in order that the interests between the two capital cities and on 15 other cities served by airbaltic including: Barcelona, Copenhagen, Helsinki, and Prague. cess of the 39 th Assembly. of all States were represented, since their involvement is crucial to the suc- airbaltic will fly a 116-seat two-class Airbus A319 on the route with 14 seats in Under the proposal, ICAO s environmental protection committee, CAEP, which Business and 102 in Economy. is expected to work on technical issues associated with developing a global Subject to regulatory approvals, airbaltic will place its BT flight code on Etihad Airways flights from Abu Dhabi to Cairo, Jakarta, Singapore, Bangkok, Am- Council. MBM, would report to the EAG and not, as would be the usual case, to the man and Muscat. The BRIC proposal lays out a number of tasks to be undertaken by the EAG: Create a set of selection criteria for possible global MBM options and their Oman Air and Turkish Airlines sign codeshare agreement: Oman Air and Turkish Airlines have signed a codeshare agreement covering services between global introduction and forecasted period of existence; possible environmental and economic impacts, as well as practicability of Oman and Istanbul. Study the feasibility and practicability of the options including technical The agreement was signed at Turkish Airlines Headquarters by Mr. Wayne aspects, environmental and financial impacts to both developed and developing countries; Pearce, CEO of Oman Air, and Dr. Temel Kotil, President and CEO of Turkish Airlines. Study other options such as taxes or fuel or carbon charges that might also attain the same objectives; ENVIRONMENT Integrate the concept of CBDR and Special Circumstances and Respective Capabilities (SCRC) into the global MBM scheme that would enable assistance to developing States; Proposal by BRIC states to set up a new group on a global MBM for aviation approved by ICAO Council: Following their success at the ICAO Assembly in Report to the Council on the selection result in order to initiate a consultation process with Member States to identify the major issues and problems mobilising wide support from developing countries over market-based measures (MBMs), a joint proposal by the BRIC states Brazil, Russia, India and and suggest appropriate means to address them; China that ICAO sets up a group to take charge of the development of a global MBM has been approved in principle by the governing ICAO Council. This prepare a final report for the Council, which would contain an assessment Review the replies from Member States and, in case of a positive result, to new body, the Environment Advisory Group (EAG), would report directly to of possible MBMs, their global introduction and basic provisions. Source: GreenAir Online Issue 82 - Jan

20 Global Arab Aviation REGULATORY TONE European Parliament s TRAN Committee introduces more burdens in its amendments to EC proposal to amend Passenger Rights Regulation: The Transport Committee (TRAN) voted on 17 December on the amendments tabled against the EC proposal to revise the air passenger rights regulation. Clear definition of extraordinary circumstances - The extraordinary circumstances in which compensation may be denied should be limited to events (listed in the annexes) beyond the actual control of the air carrier and which could not be avoided even if reasonable measures had been correctly taken by the airline. Any airline wishing to deny passengers compensation for flight disruption, should have to prove the existence of such circumstances, in writing, to the passenger, MEPs said. Compensation due after three hours delay on short flights - In the absence of such extraordinary circumstances, airlines should offer passengers compensation, reimbursement and/or re-routing in the event of denial of boarding or delays upon arrival exceeding: three hours for flights of up to 2,500 km ( 300 compensation), five hours for flights of up to 6,000 km ( 400), or seven hours for flights of over 6,000 km ( 600). The Commission s proposal of hour thresholds was rejected. Passengers should be given the right to disembark after three hours maximum delay on the tarmac (down from five according to the EC proposal). Competent staff to inform and help stranded passengers in airports - Whereas the EC proposal would require airlines only to inform delayed passengers on-the-spot, no later than 30 minutes after the scheduled departure time, MEPs say air carriers should have to set up contact points at airports where staff can inform passengers faced with flight disruptions or luggage delays, damage or loss, of their rights and choices, including complaint procedures and forms, and help them by taking immediate action. If an airline fails to respond in full to complaints within two months, it must be deemed to accept the passenger s claim, according to the amended new rules. Further strict measures introduced by the amendments are listed below: Detailed information on hand-luggage allowances (including possible extra charges) and complaint procedures with regard to air passenger rights and luggage handling should be provided at reservation and contact addresses for complaints clearly indicated on the ticket, MEPs say. Coats, handbags and at least one bag of airport shopping should be accepted on all flights, in addition to the prescribed maximum cabin baggage allowance, MEPs added. Passengers who have not used their outward flight must not be denied boarding or face any extra cost on the return flight. Free-of-charge assistance (food, drinks, accommodation when necessary) must be provided already after two hours delay, even in extraordinary circumstances. The legislative resolution was approved by 37 against 3 votes, no abstentions. The plenary vote is scheduled for 4 February, to allow time to negotiate a firstreading agreement with Council before the May 2014 European elections. European Commission s simplified merger control notification procedures to be effective In 2014: The European Commission has adopted a merger simplification package in pursuit of its stated goal of creating a more streamlined and flexible system for its procedures for reviewing concentrations under the EU Merger Regulation No. 139/2004, particularly towards alleviating administrative burdens on companies. The package comprises amended versions of the (i) Notice on Simplified Procedure and (ii) Commission Implementing Regulation and its accompanying Annex 1 (Form CO), Annex 2 (Short Form CO), and Annex 3 (Form RS). These became applicable as of 1 January The adoption of these new texts followed a public consultation on simplifying merger control procedures in the EU. The European Commission updates the European safety list of banned airlines: The European Commission has updated for the 22 nd time the European list of airlines subject to an operating ban or operational restrictions within the European Union, better known as the EU air safety list. On the basis of safety information from various sources and a hearing both with the Nepalese aviation authorities as well as with a number of Nepalese carriers, the Commission decided to put all airlines from Nepal on the EU air safety list. The new list replaces and updates the previous one, adopted in July 2013, and can be consulted on the Commission s website. As a consequence of the ban on Nepalese carriers, they are prevented from flying into or within the Union. Also, European operators and travel agents will need to inform European travellers, who will have a right to reimbursement if they had booked a seat on a Nepalese carrier as part of a journey to Nepal, and decide not to use it. Consultations were also held with the civil aviation authorities of Libya. The EU Air Safety Committee noted that progress continues to be made, but agreed with the Libyan civil aviation authorities that it remains necessary to maintain the voluntary restrictions not to fly to the EU, which are applied since the Libyan revolution to all airlines licensed in Libya. The implementation of these restrictions will remain under close monitoring by the Commission and the EU Air Safety Committee. Further technical updates to the EU air safety list were made, due to the removal of some airlines that ceased to exist and the addition of new ones recently created in a number of banned countries: Kyrgyzstan, Kazakhstan, Indonesia and Mozambique. The Commission decision is based on the unanimous opinion of the EU Air Safety Committee, which met from 19 until 21 November The EU Air Safety Committee consists of aviation safety experts from the Commission, from each of the 28 Member States of the Union, as well as from Norway, Iceland, Switzerland, and the EASA. The Commission decision also received a positive opinion from the EP and the Council of Ministers. Source: European Commission Issue 82 - Jan

21 Global Arab Aviation The EU Council removes customs duties on jet fuel imports: The EU Council adopted a regulation removing duties on jet fuel imports as from 1 January The suspension of duties for jet fuel will avoid an increase of price that would otherwise have occurred because of the application of the new scheme of generalised tariff preferences, which starts running as from 1 January From that date, a number of exporting countries of jet fuel will cease to benefit from preferential access to the Union market. The imposition of customs duties on jet fuel from those suppliers would likely cause an increase in the price of jet fuel in the EU as it is not economically viable for refineries in the EU to increase their production of aviation fuel to any significant degree. Currently, a big percentage of jet fuel imports to the Union originate in countries that already benefit from preferential access to the Union market, and thus in practice the imports are duty-free. The suspension of the duties for jet fuel, currently at 4.7%, will be reviewed within five years. The new regulation amends regulation 2658/87 on the common customs tariff. Source: Council of EU EU extends the use of electronic devices on aircraft: The EU s Aviation Safety Agency (EASA) has updated its guidance on the use of portable electronic devices on board (PED), including smartphones, tablets and e-readers. It confirms that these devices may be kept switched on in Flight Mode (non-transmitting mode) throughout the journey (including taxiing, take-off and landing) without a risk to safety. EU Transport Commissioner, Vice President Siim Kallas has asked EASA to accelerate its safety review of the use of electronic devices on board in transmitting mode, with new guidance expected to be published early in The updated safety guidance published refers to portable electronic devices (PED) used in non-transmitting mode, better known as flight mode. It allows, for the first time, the use of personal electronic devices in flight mode in all phases of the journey, from gate to gate. Prior to this all personal electronic devices had to be completely turned off during taxiing, take-off and landing. Source: European Commission DOT fines American Airlines for violating Price Advertising Rule: The U.S. Department of Transportation (DOT) fined American Airlines USD 60,000 for violating the Department s full-fare advertising rule after the airline s agents told consumers that surcharges levied by the airlines were government-imposed taxes. DOT ordered the carrier to cease and desist from further violations. Source: US DOT Tata Sons-Singapore Airlines JV reaches second stage, applies to civil aviation ministry for NOC: The airline joint venture between the Tata Group and Singapore Airlines (SIA) has reached its second stage with the company applying for a No-Objection Certificate (NOC) to the civil aviation ministry on 26 December. Tata Sons will be the majority partner in the airline venture with 51% stake, while SIA will hold 49%. The two companies plan to set up the airline with an initial investment of USD 100 million. With the application for NOC, Tata-SIA proposal has reached second stage. Once received, the process will reach its final stage and the company will have to apply to the Directorate General of Civil Aviation (DGCA) for Air Operator s Permit. The civil aviation ministry, in the recent past, has been quick with clearances and the proposals will now be overlooked by the new aviation secretary Ashok Lavasa, who joins on January 1, The Tata-SIA proposal got the clearance of the Foreign Investment Promotion Board in October making it eligible to apply for the NOC. According to the MoU inked between Tata Sons and SIA, the joint venture company will be incorporated in New Delhi and its principal place of business shall be India at all times. In the proposal, the joint venture company had assured the government that control of the company would always remain in Indian hands. It has also said in the proposal that the Indian subsidiary of SIA will get access to SIA s international network. Currently, the government rules do not allow domestic airlines less than five years in operations and with a fleet of less than 20 aircraft to commence international operations. The ministry of civil aviation is drafting a Cabinet note to amend the policy. Source: Financial Express IATA-FIATA joint statement on the need for states to ratify MC99: The International Air Transport Association (IATA) and the International Federation of Freight Forwarders Associations (FIATA) have released a joint position paper calling for states to ratify the Montreal Convention 1999 (MC99) treaty to promote trade facilitation. At the WTO talks in Bali, 3-6 December, states have been urged to take steps to stimulate greater world trade, in order to promote growth in the global economy. For those states who have not yet done so, the ratification of MC99 would be an important step in helping improve the speed, security and efficiency of Air Cargo. MC99 provides the legal framework for the use of electronic data as a record of carriage in place of paper documents, thus paving the way for Freight Forwarders and airlines to use the electronic Air Waybill and other e-freight documents such as the electronic Cargo Security Declaration. Over 33% of global trade lanes have fully electronic customs procedures. However, wider adoption of e-freight cannot take place while some 88 states, mainly in South East Asia and Africa, have yet to ratify MC99. The importance of this issue to governments was emphasized at the 38 th ICAO Assembly in September-October, where states passed a resolution urging all remaining states to ratify MC99. The position paper can be accessed at: php?id=571 Or at this link: Source: IATA-FIATA Issue 82 - Jan

22 Global Arab Aviation Oman, US pact on open skies: The Sultanate of Oman signed an Open Skies Agreement with the US, permitting unrestricted air service by the airlines of both the countries between and beyond the other s territory to any other city in the world. The agreement, signed by H.E. Salim al Aufi, Chief Executive Officer, Public Authority for Civil Aviation and H.E. Greta C Holtz, US Ambassador to Oman, eliminates government restrictions on how often carriers fly, the type of aircraft used, and prices they charge. Speaking to the Observer, H.E. Al Aufi said, The Sultanate has in place Air Transport Agreements with 77 countries and 26 of them are Open Skies Agreements. Oman will soon have a similar agreement with Canada. Al Aufi said the government is interested in pursuing as many open skies agreements as possible, in order to elevate Muscat as a global logistics and passenger hub. He added that the number of passengers between the Sultanate and US stands at more than 49,000 annually. This is a very good time to prepare for direct flights between the two countries especially with the expansion of Muscat International Airport and other airports in the Sultanate, H.E. Al Oufi said. H.E Greta said, The US-Oman agreement will allow for the strengthening and expansion of trade and cultural links and promote increased tourism, benefiting US and Omani businesses and travellers by expanding opportunities for air services and encouraging vigorous price competition by airlines, while preserving our commitments to aviation safety and security. By allowing air carriers unlimited market access to our partners markets and the right to fly to all intermediate and beyond points, Open Skies agreements provide maximum operational flexibility and commercial opportunity for airline alliances and demonstrate our shared commitment to an open, competitive, market-based international economic system, according to a statement released by the US Embassy. The open skies agreement is a pro-consumer, pro-competition, and progrowth accord. It represents a market-oriented approach to aviation relations: airlines, not governments, will be able to decide which cities to serve, the frequency of flights, the equipment used, and the prices charged. The agreement shows Omani government s marked commitment to open up the Sultanate s aviation sector to ensure more connections, greater investment, enhanced competition, and better service for travellers. Open skies agreement allow for full flexibility for air services operated by carriers of both countries. Source: Oman Daily Observer THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE Issue 82 - Jan

23 Global Arab Aviation AN AVIATION MARKET IN FOCUS: Algeria The People s Democratic Republic of Algeria Population: 37.9 million Land area: 2.38 million km 2 Number of passengers in 2012: 6.24 million passengers Number of commercial airports: 16 commercial airports Algerian-based airlines: Air Algérie and Tassili Airlines Aviation Policy: - La Direction de l Aviation Civile et de la Météorologie (DACM) is the governmental body responsible for civil aviation in in 2012 Algeria. 2% 1% 1% - Algeria s relations with 0% other countries is mostly Europe 22% governed by bilateral Arab World Air Services Agreements allowing 3 rd and 4 th freedom traffic Americas rights. Algeria s aviation market links 55 cities worldwide* Source: AACO, Innovata s FlightMaps Analytics November 2013 * For a detailed view, please click on the image Traffic Share between Algeria and Other Regions 74% Australasia Sub Saharan Africa Mid Asia Source: AACO, IATA Distribution of seat capacity within Algeria - November 2013 Top 10 routes by seat capacity within Algeria - November 2013 Route Seat Capacity* Algiers - Annaba 27,840 Algiers - Oran 27,543 Algiers - Tamenghest 10,934 Algiers - Constantine 8,547 Algiers - Bejaia 8,856 Algiers - Setif 7,052 Algiers - Batna 5,210 Algiers - Djanet 3,734 Algiers - Biskra 3,826 Algiers - Tlemcen 3,028 Source: AACO, Innovata s FlightMaps Analytics * This includes seat capacity in both directions Top 10 routes by seat capacity to and from Algeria in November ,000 seats were offered on the 10 routes on the right to and from Algeria in November Airline Seat Capacity Air Algerie 558,027 Aigle Azur 168,264 Air France 48,944 Tassili Airlines 39,358 Alitalia 22,830 Qatar Airways 18,048 Turkish Airlines 17,019 Emirates 14,760 Iberia 12,654 Royal Air Maroc 10,704 Source: AACO, Innovata s FlightMaps Analytics Source: AACO, Innovata s FlightMaps Analytics Route Seat Capacity* Algiers - Paris 136,436 Algiers - Marseille 46,096 Algiers - Istanbul 29,451 Algiers - Rome 25,072 Oran - Paris 23,928 Algiers - Dubai 22,880 Algiers - Barcelona 21,796 Algiers - Lyon 19,140 Algiers - Doha 18,048 Algiers - Tunis 17,130 Source: AACO, Innovata s FlightMaps Analytics * This includes seat capacity in both directions Top 10 airlines operating by seat capacity to, from and within Algeria in November 2013 The top 10 airlines on the left offer almost 0.91 million seats (94.26% of the scheduled seat capacity) to, from and within Algeria in November Issue 82 - Jan

24 Global Arab Aviation WORLD NEWS AMR Corporation and US Airways Group complete merger to create the new American Airlines: AMR Corporation and US Airways Group, Inc. announced on 9 December the completion of their merger to form American Airlines Group Inc. and begin building the new American Airlines, the world s largest airline. The new American will operate nearly 6,700 daily flights to more than 330 destinations in more than 50 countries and more than 100,000 employees worldwide. The merger was completed after passing a major hurdle in November 2013 when the Department of Justice (DOJ) dropped its case that was raised due to competition concerns on the repercussions of this merger. Furthermore, the merger culminates a process that began in November 2011 when AMR filed for Chapter 11 bankruptcy. US Airways will exit Star Alliance on March 30, 2014 and will immediately enter oneworld on March 31, American said it will take roughly 18 to 24 months to complete the process to achieve a Single Operating Certificate and said the customers should continue to do business with the airline from which their travel tickets were bought in the interim. The airlines two website aa.com and usairways.com will continue to operate separately until the integration process is complete. It is noteworthy that American currently has more than 600 firm orders for new aircraft. SkyTeam announces Garuda Indonesia s date of joining: SkyTeam will welcome Garuda Indonesia as its 20 th member on March 5, The national airline of Indonesia, Garuda will become SkyTeam s second member from Southeast Asia. Garuda s membership of SkyTeam will facilitate travel to Indonesia - Southeast Asia s largest economy - for customers around the world. Garuda operates nonstop flights from Jakarta, the nation s capital and financial center, to seven SkyTeam hubs: Seoul, Guangzhou, Beijing, Shanghai, Taipei and Amsterdam. Source: SkyTeam Star Alliance and Air India recommence integration process: At their board meeting held in Vienna on 13 December, the Chief Executives of the Star Alliance member airlines decided unanimously to recommence the integration process with Air India. The Indian national carrier was originally accepted as a future member of Star Alliance in December 2007, but the integration process was halted in July The suspension was a joint decision which allowed Air India to focus on completing its merger with Indian Airlines, without the distraction of the work required for full integration into the Star Alliance network. Source: Star Alliance Record 73 states and territories benefit from 2013 ICAO Air Services Negotiation Conference: The sixth ICAO Air Services Negotiation Conference (ICAN2013) wound up on a record note in Durban, South Africa, with 73 States/territories using the unique ICAN one-stop negotiation facility to conclude over 500 new air services and open skies agreements. More than 400 negotiators took advantage of some 500 meetings during the five-day ICAN marathon, which also saw participation from regional bodies such as the European Union (EU) and the Common Market for Eastern and Southern Africa (COMESA). To highlight their ongoing collaborative efforts and the critical links between air transport and tourism aimed at fostering greater global connectivity, the World Tourism Organization (UNWTO) was invited by ICAO to participate in a special ICAN seminar this year in Durban. ICAO additionally provided on-site legal services. Mr. Herry Bakti, Director General of Civil Aviation for 2014 ICAN host State Indonesia (Bali, November), accepted the handover of ICAN responsibilities from 2013 host South Africa, taking the opportunity to commend ICAO for establishing the ICAN instrument and extending a warm invitation to participants to join Indonesia and ICAO in Bali next year. Source: ICAO ICAO/IATA formalize Global Training Alliance, launch new I-TRAIN programme: The International Civil Aviation Organization (ICAO) and International Air Transport Association (IATA) announced the establishment of a new Global Training Alliance, seeking to intensify and refine air transport training and learning resources in the face of expected global shortages of skilled air transport personnel. Current forecasts show the aviation system doubling in capacity by 2030, with hundreds of thousands of new pilots, air traffic controllers and maintenance personnel being needed to support the coming expansion. An immediate outcome of the new alliance will be the launch of the I-TRAIN programme, a joint ICAO/IATA diploma offering which focuses on multiple industry segments. I-TRAIN incorporates unique, blended solutions derived from ICAO/IATA areas of expertise and which can be tailored for existing industry personnel as well as the next generation of aviation professionals (NGAP). In addition to its partnership with ICAO on the I-TRAIN initiative, the new alliance will also see IATA benefitting from increased access to the ICAO TRAINAIR PLUS network of internationally recognized aviation training centres. Related benefits includes direct contact with all ICAO TRAINAIR PLUS Members, participation in TRAINAIR PLUS strategic planning activities and future TRAINAIR PLUS events, and the use of various ICAO training publications. Hoummady also noted that ICAO s TRAINAIR PLUS programme would be welcoming the U.S. Federal Aviation Administration (FAA) and Bombardier Aerospace, its very first OEM, as new Corporate Members. Source: ICAO Issue 82 - Jan

25 Global Arab Aviation Heathrow north-west third runway option short-listed by Airports Commission: Heathrow welcomed the interim report from the Airports Commission, which short-lists a Heathrow north-west third runway as one of the options for solving the UK s aviation capacity crisis. As the UK s only hub airport, and the only airport with a proven ability to deliver direct and frequent flights to long-haul markets, Heathrow is the quickest, cheapest and surest way to connect the UK to growth. Heathrow s shortlisted option for a full-length runway located to the north-west is better than the 2003 Air Transport White Paper proposal for a short third runway. There will be fewer households within Heathrow s noise footprint with a third runway than there are due to quieter aircraft, steeper landing approaches, and the runway s location further to the west. Unlike the previous proposal, the north-west option will deliver periods of community respite from noise with no aircraft overhead. Heathrow Airport will work with local authorities, local communities and other stakeholders to develop its runway option further. The airport plans on consulting as it develops its proposals in more detail. Heathrow is reiterating the commitments it made when it published this option in July Source: Heathrow Airport 2013 ICAO air transport results confirm robust passenger demand, sluggish cargo market: Preliminary figures released by the International Civil Aviation Organization (ICAO) confirmed that some 3.1 billion passengers made use of the global air transport network for their business and tourism needs in The annual passenger total is up approximately 5% compared to 2012 and is expected to reach over 6.4 billion by 2030, based on current projections. The number of aircraft departures reached 33 million globally during 2013, establishing a new record and surpassing the 2012 departure figure by more than one million flights. ICAO also confirmed that scheduled passenger traffic grew at a rate of 5.2 % in 2013 (expressed in terms of revenue passengerkilometres or RPKs), slightly above the UN body s July 2013 projections. ICAO attributed the recent upswing to positive economic results globally and improved business and consumer confidence during 2013 in several major economies. Emerging economies grew more slowly than expected. Regional performance: The Asia/Pacific region remains the world s largest air transport market based on the 2013 figures, with a 31% share of total traffic representing an increase of 7.2% over Despite a better economic climate in Europe and North America, the traffic of the European and North American airlines increased less than the world average, growing at 3.8% and 2.2%, respectively. The Middle East remains the fastest growing air transport market in the world, with its traffic expanding over 2013 at a rate of 11.2% compared to 2012, accounting for 9% of global RPKs. International passenger traffic: International traffic grew by 5.2 % in 2013, with the highest levels of growth registered by the airlines of the Middle East (10.9%) followed by the Latin America and Caribbean region (8.6%). African carriers recorded the third highest regional growth rate at 7.4%. Globally, the international air transport market was still dominated by European airlines, who accounted for 38% of international traffic. Asia/Pacific airlines ranked second in this category at 27%. Domestic passenger traffic: Domestic traffic increased by 5.1 % compared to 2012, with airlines from North America and Asia/Pacific accounting for a combined 83 % of worldwide domestic traffic (47 % for North America, 37 % Asia/ Pacific). Asia/Pacific domestic results were 10 % higher than in 2012, driven mainly by Chinese airlines who account for approximately 60 % of the region s total market. Capacity: Air transport capacity, expressed in available seat-kilometres (ASKs), increased globally by 4.6 % in Average passenger load factor increased slightly in 2013, by about one-half a percentage point compared to 2012, or 79.1%. Regional passenger traffic and capacity growth, market shares and load factors in 2013* ASKs: Available Seat-kilometres -- LFs: Passenger Load Factors * These figures are preliminary and cover scheduled commercial services only. The statistics are applicable to the traffic by region of airline domicile. Air cargo: On the air cargo side, traffic expressed in freight tonne-kilometres (FTKs) saw an increase of about 1%, or approximately 51 million tonnes of freight carried. Asia/Pacific airlines had the largest share of global FTKs, but saw a contraction in overall freight volume similar to what was experienced by North American carriers. The Middle East remained the region with the fastest air cargo traffic growth in 2013 compared to 2012, accounting for 12% of global FTKs. Industry trends: The world s major aircraft manufacturers are expected to have delivered more than 1,500 new commercial aircraft by the end of 2013 and have recorded orders for an impressive 2,800 new aircraft. Together with more efficient processes now being implemented by airline and airport operators, as well as improved flow management and performance-based air navigation, these environmentally-friendly aircraft will contribute positively to continued and sustainable air transport development. Source: ICAO Issue 82 - Jan

26 Global Arab Aviation NTSB issues five new general aviation safety alerts: The National Transportation Safety Board issued five new Safety Alerts in late December that provide general aviation (GA) pilots with mitigating strategies for preventing accidents. These Safety Alerts follow five that were issued in March at a Board Meeting that focused on the most frequent types of general aviation accidents. A Safety Alert is a brief information sheet that pinpoints a particular safety hazard and offers practical remedies to address the issue. The five Safety Alerts issued are: Check Your Restraints Engine Power Loss Due to Carburetor Icing Armed for Safety: Emergency Locator Transmitters All Secure, All Clear (securing items in the aircraft cabin) Proper Use of Fiber or Nylon Self-Locking Nuts The NTSB is charged with investigating about 1,500 aviation accidents annually. Each year, about 475 pilots and passengers are killed and hundreds more are seriously injured in GA accidents in the United States. ( gov/28df) The five GA Safety Alerts released, as well as the 25 others issued since 2004 (including five video Safety Alerts), are available at Source: NTSB THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE Issue 82 - Jan

27 OUR PARTNER AIRLINES

28 Partner Airlines LATEST NEWS Traffic statistics December Group traffic and capacity statistics: In December 2013, Group traffic measured in Revenue Passenger Kilometres increased by 10.6% versus December 2012 (up 3.6% on a pro-forma basis); Group capacity measured in Available Seat Kilometres rose by 9.1% (up 1.9% on a pro-forma basis). The group s premium traffic for the month of December increased by 7.3% compared to the previous year, with a greater increase in load factor than that experienced in the non-premium cabin. Underlying market conditions remain unchanged from those described at the publication of Capital Markets Day and Quarter Three results. Strategic developments: On 2 December, Iberia announced that it has completed the reorganisation of its management team as part of its restructuring plan. The total number of management positions has been reduced by 48% from 399 to 208. In addition, Iberia announced the reduction of the minimum connecting time between its flights at Terminal 4 in Madrid- Barajas airport enabling an additional 1,200 flight connections to be made each week. On 10 December, British Airways announced that it is extending the number of routes operated by its new A380 and 787 fleets. The A380 will start services to Washington DC from September 2014, having already announced it will operate to Johannesburg in February The aircraft is already flying to Los Angeles and Hong Kong. The 787s will be operated on flights to Hyderabad from March, Chengdu from May, Philadelphia from June and Calgary from July British Airways cancelled around 200 flights on 7 December, due to a technical failure at UK NATS (National Air Traffic Services). SPAIN TRAFFIC The Spanish air transport market expanded by 2.0% in October 2013 over October 2012 in terms of number of passengers traveling to, from and within Spain, and is expected to have expanded in November 2013 by 20.3% compared to November % 20% 10% 0% -10% -20% -30% Source: AACO, IATA *Estimated Looking at the Spanish market traffic flows, the international European market represented in October % of the total market, and is expected to have shrunk to 67.7% in November Traffic between the Arab world and Spain represented 1.8% of the total Spanish market in October 2013, and is expected to have shrunk to 1.6% in November % 20% 15% 10% 5% 0% -5% -10% -15% -20% Monthly Passenger Numbers' Change in the Spanish Air Transport Market Dec 12 to Nov13* compared to same month in previous year Passenger Numbers' Change in the Spanish Air Transport Market Aug13-Oct13 & Sep13-Nov13* compared to same period in previous year Domestic With Arab World International With Australasia With Europe Domestic With the Americas With Mid Asia with Sub Sahran Africa Aug13-Oct13 Sep13-Nov13* Source: AACO, IATA *Estimated Issue 82 - Jan

29 Partner Airlines In October 2013, Ryanair was the biggest carrier operating to, from and within Spain by number of passengers, boarding 2.92 million pax, which represented a decrease of (0.3%) over October 2012 operations. Top 15 Airlines Operating in the Spanish Market Airline Oct-13 Growth Airline Oct-13 Growth FR 2,924,146 (0.3%) DY 261, % IB 1,399,615 (16.1%) LS 257, % U2 1,085,073 (9.8%) NT 219, % VY 937, % BA 193, % AB 930,903 (0.1%) DE 191,766 (3.3%) UX 555, % AF 184,473 (3.7%) ZB 353, % LX 169, % LH 335, % Grand Total 12,147, % Source: AACO, IATA UK TRAFFIC The UK air transport market expanded by 5.4% in October 2013 over October 2012 in terms of number of passengers traveling to, from and within the UK, and is expected to have expanded in November 2013 by 17.3% compared to November Monthly Passenger Numbers' Change in the UK Air Transport Market Dec12 to Nov13* compared to same month in previous year Looking at the UK market traffic flows, the international European market represented in October % of the total market, and is expected to have shrunk to 65.6% in November 2013.Traffic between the Arab world and the UK represented 3.6% of the total UK market in October 2013, and is expected to have shrunk to 3.2% of total traffic in November % 16% 14% 12% 10% 8% 6% 4% 2% 0% Aug13-Oct13 Sep13-Nov13* Source: AACO, IATA Passenger Numbers' Change in the UK Air Transport Market Aug13-Oct13 & Sep13-Nov13* compared to same period in previous year Domestic With Arab World With Australasia With Europe With the Americas With Mid Asia with Sub Sahran Africa *Estimated In October 2013, easyjet was the biggest carrier operating to, from and within the UK by number of passengers, boarding 3.7 million pax, which represented a growth of 1.7% over October 2012 operations. 20% 15% 10% 5% 0% -5% International Domestic Top 15 Airlines Operating in the UK Market Airline Oct-13 Growth Airline Oct-13 Growth U2 3,080, % EI 388,618 (6.0%) FR 2,907, % KL 371,774 (5.6%) BA 2,548, % EK 327, % BE 682, % W6 254, % ZB 641, % AF 230, % LS 459, % DY 219, % VS 442, % UA 197, % LH 392, % Grand Total 16,078, % Source: AACO, IATA Source: AACO, IATA *Estimated Issue 82 - Jan

30 Partner Airlines LATEST NEWS Jet Airways launches its mobile application for ios: Jet Airways announced the launch of its mobile application on Apple s ios platform compatible with iphone, ipad and ipod touch. The mobile application will allow the airline s guests to conveniently book tickets, check flight status, manage their JetPrivilege account and enjoy special promotional offers, among a host of other features. The native mobile application (app) is available for free download from the App Store and is compatible with ios 6 version and above. The app has been specially optimized for iphone 5. The Jet Airways mobile app leverages the ios platform s improved touch friendly design, making it an extremely efficient tool for travellers to access their travel information on the go. Moreover, the application offers a convenient booking and secure payment process allowing credit card transactions accompanied by the ability to save and access booked itineraries using the Passbook app. Other salient features include real time flight status check with the option to search using flight number, airport or route, registration for receiving real time flight status notification, and the opportunity to avail special offers and news updates. Jet Airways wins top honours at Global Traveller Wines on the Wing awards: Jet Airways has won the top honours in the prestigious Wines on the Wing awards, instituted by the US-based Global Traveller magazine. While two of the airline s wines Puligny Montrachet Louis Jadot and Domaine Lous Moreau Chablis occupied the first and second spots in the firstclass white wines category, Billecart-Salmon Brut came in fifth in the businessclass champagne category. In the first class category, the airline secured the third position in overall standings. At the contest held in Los Angeles, 22 of the world s best airlines served their best white, red and sparkling wines to 31 expert judges in a blind-tasting session. The judges individual scores for each wine were added and averaged, and scores of an airline s submissions were aggregated. At the end of the session, Jet Airways was conferred with the Wines on the Wing awards. Jet Airways partners with Greek Wellness brand Korres for inflight ammenity kits: Jet Airways has entered into a partnership with Greek natural and wellness brand KORRES, for a new amenity kit to enhance in flight experience of First Class and Première guests - onboard its international flights. INDIA TRAFFIC The Indian air transport market grew by 8.6% in October 2013 over October 2012 in terms of number of passengers traveling to, from and within India, and is expected to have shrunk in November 2013 by (3.9%) compared to November % 10% 5% 0% -5% -10% -15% Source: AACO, IATA *Estimated Looking at the Indian market traffic flows, the domestic market represented in October % of the total market, and is expected to have shrunk to 55.0% in November Traffic between the Arab world and India represented 16.7% of the total Indian market in October 2013, and is expected to have grown by 16.9% in November % 12% 10% 8% 6% 4% 2% 0% -2% -4% Source: AACO, IATA Monthly Passenger Numbers' Change in the Indian Air Transport Market Dec 12 to Nov 13* comapred to same month in previous year International Domestic Passenger Numbers' Change in the Indian Air Transport Market Aug13-Oct13 & Sep13-Nov13* compared to same period in previous year 16% Aug13-Oct13 Sep13-Nov13* Domestic With Arab World With Australasia With Europe With the Americas Within Mid Asia Int'l with Sub Sahran Africa *Estimated Issue 82 - Jan

31 Partner Airlines In October 2013, Indigo Airlines was the biggest carrier operating to, from and within India by number of passengers, boarding 1.53 million pax, which represented an increase 15.8% over October 2012 operations. Top 15 Airlines Operating in the India Market Airline Oct-13 Growth Airline Oct-13 Growth 6E 1,527, % QR 134, % AI 1,249, % G9 128, % 9W 1,184, % SQ 127, % SG 1,037, % WY 99, % G8 394, % UL 91,391 (6.2%) EK 381,618 (1.5%) LH 87,760 (0.3%) S2 244,753 (13.1%) SV 85, % IX 213, % Grand Total 8,102, % Source: AACO, IATA THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE Issue 82 - Jan

32 Partner Airlines LATEST NEWS Turkish Airlines expands its network to Chad: Turkish Airlines continues to Widen Your World with the addition of Kano (Nigeria) as its 242 nd destination and N djamena (Chad) as the 243 rd. Turkish Airlines again strengthens its presence in Africa and now has a presence at 36 destinations in 25 African countries. The second largest city of Nigeria, Kano is its 2 nd destination in Nigeria - with existing service to Lagos - and has added N djamena, the capital and largest city of Chad as its first destination in that country. From 12 December Kano/N djamena flights are being operated 4 times per week. Turkish Airlines openes its new Lounge at Borussia Dortmund s Signal Iduna Park: Borussia Dortmund and Turkish Airlines celebrated the opening of the Turkish Airlines Lounge in the club s stadium. The Turkish Airlines Lounge is located in the North-West section of the stadium and represents an innovation in Dortmund s Signal Iduna Park. With a capacity of 200 guests, the new facilities were jointly designed by Turkish Airlines and Borussia Dortmund. TURKEY TRAFFIC The Turkish air transport market in Oct grew by 19.3% over Oct in terms of number of passengers traveling to, from and within Turkey, and is expected to have expanded in Nov by 1.0% compared to Nov % 60% 40% 20% 0% -20% Source: AACO, IATA Monthly Passenger Numbers' Change in the Turkish Air Transport Market Dec 12 to Nov 13* compared to same month in previous year International Domestic *Estimated Looking at the Turkish market traffic flows, the European market (international traffic between Turkey & Europe) was the biggest market. It accounted for 44.9% of Oct traffic, and is expected to have expanded to 48.1% in Nov The domestic market was the second biggest market, accounting for 38% of Oct traffic, and is expected to have shrunk to 30.7% in Nov On the other hand, traffic between the Arab world and Turkey represented 7% of the total Turkish market in Oct. 2013, and is expected to have grown to 8.3% of total traffic in Nov Passenger Numbers' Change in the Turkish Air Transport Market Aug13-Oct13 & Sep13-Nov13* compared to same period in previous year 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% Aug13-Oct13* Sep13-Nov13* Source: AACO, IATA Domestic With Arab World With Australasia With Europe Int'l With the Americas With Mid Asia with Sub Sahran Africa *Estimated In October 2013, Turkish Airlines was the biggest carrier operating to, from and within Turkey by number of passengers, boarding 2.81 million pax, growing by 18.3% over October Top 15 Airlines Operating in the Turkey Market Airline Oct-13 Growth Airline Oct-13 Growth TK 2,815, % LH 92,962 (17.0%) PC 1,091, % ZB 71, % XQ 322, % U2 68, % 8Q 209, % SU 57, % KK 171, % XG 45,522 (43.9%) AB 150, % HV 42, % DE 111, % EK 35, % X3 95,664 (1.4%) Grand Total 6,165, % Source: AACO, IATA Issue 82 - Jan

33 OUR INDUSTRY PARTNERS NEWS

34 Our Partners News A350 MSN2 rolls out of paint hangar with special Carbon livery: On 2 January 2014 Airbus rolled-out its third A350 XWB flight-test aircraft, MSN2, from the paint shop in Toulouse, marking yet another successful milestone on the path to entry-into-service in Q As well as featuring a distinctive Carbon signature livery to reflect its primary construction from advanced materials, this aircraft is also the first of two A350 flight test aircraft to be equipped with a full passenger cabin interior. MSN2 will join the A350 XWB flight test fleet and will be the first A350 to transport passengers when it undertakes the Early Long Flights (ELF) later in the year. Emirates Airline firms up order for 50 additional A380s: Emirates Airline and Airbus have completed discussions and signed the firm contract for 50 additional A380s originally announced at the Dubai Airshow on 17 th November The contract documents were finalised by Mr. Tim Clark, Emirates Airline President, during a visit to Airbus Headquarters in Toulouse, France. Kuwait Airways to buy ten A and fifteen A320neo Family aircraft: Kuwait Airways has signed a Memorandum of Understanding (MoU) to buy ten A and fifteen A320neo Family aircraft. The order is part of Kuwait Airways fleet renewal strategy. First Sharklet production retrofit completed for Turkish Airlines: Turkish Airlines will become the first European airline to operate A320 Family aircraft with production-retrofitted Sharklet wingtip devices. This will follow the installation, which has just been completed, by Turkish Technic MRO of Sharklets onto the first of nine A321s to be retrofitted for Turkish Airlines. All nine aircraft will be upgraded for the airline. AirAsia X orders 25 more A s: AirAsia X has placed a firm order with Airbus for 25 more A s. The contract is the largest A330 order received by Airbus in a single purchase agreement and increases the carrier s total firm orders for the type to 51. These will be supplemented by another six A s leased from International Lease Finance Corporation (ILFC). Zhejiang Loong Airlines firms up order for 20 A320 Family aircraft: Zhejiang Loong Airlines, based in Hangzhou, has signed its first purchase agreement with Airbus, for 20 A320 Family aircraft, including 11 A320ceo and nine A320neo, becoming the lastest Airbus customer. Airbus signs MoU with Honeywell and Safran to develop electric taxiing solution for the A320 Family: As part of on-going research and development into future technology options, Airbus has signed a memorandum of understanding (MoU) with EGTS International, a joint venture company between Safran and Honeywell Aerospace, to further develop and evaluate an autonomous electric pushback and taxiing solution for the A320 Family. The agreement marks the selection of EGTS International s Electric Green Taxiing System to be evaluated as a new option on the A320 Family referred to by Airbus as etaxi. This option would allow the aircraft to push-back from the gate without a tug, taxi-out to the runway, and return to the gate after landing without operating the main engines. etaxi will use the aircraft s Auxiliary Power Unit (APU) to power electric motors fitted to the main landing gear wheels. The architecture will include the ability for pilots to keep full control from the cockpit over their aircraft s speed and direction during taxi operations. The etaxi option will offer several operational and environmental benefits for the A320 Family: Per trip, the projected fuel savings and CO2 reductions would be approximately 4%; It would contribute to significantly more efficient taxiing operations and save around two minutes of time on pushback; Taxiing-related carbon and nitrous oxide emissions would be cut by more than half. Airbus - AACO Partner since 1997 Thomas Cook extends partnership with Amadeus in Egypt: Amadeus has announced the renewal of its partnership with Thomas Cook in Egypt. Under the agreement, Amadeus will be the primary global distribution system (GDS) and technology partner for Thomas Cook, allowing the travel leader to rely on powerful and accountable solutions at every step of the journey planning, booking and post-booking. Amadeus solutions have been critical in ensuring that Thomas Cook delivers award winning service to its business and leisure customers and strengthen its leadership position in the Egyptian travel industry. Using Amadeus customised solutions, Thomas Cook has been able to enhance operational efficiency while minizing costs and maintaining revenue growth and diversification. Mr. Khaled Gad Elmawla, General Manager, Amadeus Egypt, said: The Egyptian travel and tourism sector is at a significant crossroads and it is imperative for the various players in the industry to work together to ensure the region regains its former glory. Towards this direction, Amadeus has consistently prioritized working with the right partners to bring in new and innovative technology solutions that will take the regional travel industry to new heights. The renewal of our agreement with such a powerful leader in the market is testimony to this fact and we are confident that our partnership contribute towards meeting this objective. Mr. Antoine Medawar, Vice President, Middle East and North Africa, Amadeus, said: Thomas Cook has established itself as a leading travel agency in Egypt with its investment in new solutions that better meet customer needs. The extension of the agreement indicates the effectiveness of our collaboration, the commitment we have towards our most valued customers as well as our full support to Thomas Cook development plans. The partnership has also allowed Amadeus to touch and empower a wider network of end travellers. Partnering with Thomas Cook since 2009, Amadeus has enabled the company to invest in technologies that are increasingly gaining importance in the region as well as globally, including mobile and online. In fact, Thomas Cook is among the pioneering travel agencies in Egypt to have launched Amadeus Mobile Traveller to provide customers with the highest level of support through their journies. Mr. Mounir Kamal, Managing Director, Thomas Cook Egypt, said: The Thomas Cook-Amadeus collaboration has been instrumental in maintaining our competitive market positioning by enabling efficient, high quality rollout of services to our customers. In line with our long term goals, Amadeus end-to-end solutions have contributed significantly towards optimizing our business efficiency. The renewal of our agreement comes on the back of our shared vision to boost the Egyptian travel industry and I am confident that Amadeus support will help us further invest in new innovations that meet the diverse needs of the region. Amadeus is a leading provider of advanced technology solutions for the global travel industry. Customer groups include travel providers (e.g. airlines, hotels, rail and ferry operators, etc.), travel sellers (travel agencies and websites), and travel buyers (corporations and travel management companies). The Amadeus group employs around 10,000 people worldwide, across central sites in Madrid (corporate headquarters), Nice (development) and Erding (operations), as well as 73 local Amadeus Commercial Organisations globally. The group operates a transaction-based business model. For the year ended December 31, 2012 the company reported revenues of 2,910.3million and EBITDA of 1,107.7 million. Amadeus is listed on the Spanish Stock Exchange under the symbol AMS.MC and is a component of the IBEX 35 index. To find out more about Amadeus please visit Amadeus - AACO Partner since 2000 Issue 82 - Jan

35 Our Partners News ADNOC Distribution wins Oracle Database Administrator Excellence Award Worldwide 2013 for EMEA Region: ADNOC Distribution s IT Division has won the Oracle Database Administrator Excellence Award - Worldwide for Europe, Middle East and Africa Region The EMEA recognition articulates the division s vital contribution to the company s operations. To date, the company s IT Division has won several distinctive accolades from the Oracle Corporation, including: Oracle Engineered System of the Year - Middle East & Africa at GITEX 2013, Oracle Excellence Award, Oil & Gas Downstream World Wide 2012, Oracle Exadata Excellence Implementation Award, Middle East & Africa 2012, Oracle Database 11g Release 2, and the First Oil & Gas Upgrade Award SCHS honors ADNOC Distribution: H.H. Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, honored ADNOC Distribution for sponsoring the 24 th Al Amal Camp for the special needs. The Camp is a social initiative organized by the Sharjah City for Humanitarian Services to provide children with physical challenges an opportunity to forge new friendships, broaden horizons and develop greater confidence levels. ADNOC Distribution organizes annual seminar on Health, Safety, Security and Environment: ADNOC Distribution hosted its annual seminar on Health, Safety, Security and Environment. The human resource initiative that was attended by the employees of the company highlighted the link between professional productivity and the work environment. The initiative particularly raised awareness about best practices at the workplace through highlighting potential risks and providing remedial solutions for overcoming work-related health issues. ADNOC - AACO Partner since 2002 Air France Consulting, a wholly owned subsidiary of Air France is specialized in air transport consulting, training, management and reengineering services. Air France Consulting calls on about 200 highly specialized international experts coming mostly from Air France and the SkyTeam Alliance who have built a field proven experience and whose competencies are recognized by the industry. Acting independently with flexibility, Air France Consulting proposes a comprehensive approach on key domains of the air transport such as operations, finance and commercial, maintenance, etc... whether to make you a diagnostic or audit, to set up new or improved processes driven by proven change management techniques or define a coaching and training program. Air France Consulting proposes a comprehensive approach on how to optimize your processes and solve your concerns such as: Safety and security of operations (EASA 145, M, 21, 147, IOSA, JAR Ops and FCL, SMS, ETOPS, IOSA Assistance, TRTO, Airline operations organization ) Drivers to reduce costs and increase revenues (Business Plan, Cost control, Network and Fleet, Revenue Management Pricing, Customer Relationship Management, E-business solutions, Fuel conservation Program, ETS, Procurement process ) Fleet Asset Management (specification, acquisition, lease, sales) and Repair Overhaul activities Management (MCC, line maintenance & operational regulatory support, maintenance IT support) Human resources and risks prevention optimization (Human factors, Crew management, Staff posting, Emergency response plan ) Air France Consulting shares the ambitions of its customers through customized solutions, thanks to a flexible structure ensuring responsiveness and close proximity. For more information, please contact us at: Telephone: , mail.afc@airfrance.fr Air France Consulting - AACO Partner since 2008 Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industryleading global resources and technical expertise. Aon has been named repeatedly as the world s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Aon s aviation team creates effective risk management strategies for clients across the aviation industry, blending global expertise with knowledge of how the industry operates locally. No two businesses are the same and we treat our clients as individuals. Rather than offering off-the-peg insurance and risk management programs, our specialists work across Aon s divisions to ensure that our clients have the best available coverage for all of their needs. If you are an airport with ground vehicle exposure or an airline with IT risks, our aviation team works with other Aon experts to ensure that you get insurance and risk management support that is precisely tailored to your requirements. We are at the forefront of development of insurance, utilizing our vast experience and international insurance market knowledge to draft, negotiate and implement the most comprehensive and appropriate insurance programmes and risk management solutions that best suit our clients needs. Aon is the principal sponsor of Manchester United. Aon - AACO Partner since 2007 Apollo Aviation Group continues acquisitions for SASOF II: Apollo Aviation Group ( Apollo Aviation ), a multi-strategy aviation investment manager, announced that it has contracted to purchase 38 aircraft and eleven engines amounting to USD 570 million since inception for its second aviation fund, Sciens Aviation Special Opportunities Investment Fund II (SASOF II). The purchases approved by SASOF II Investment Committee this year include, but are not limited to, 12 Airbus A320ceo family aircraft and 13 Boeing 737 Next Generation models. Specifically during the third quarter, Apollo Aviation committed to purchase thirteen aircraft for approximately USD 200million. Apollo Aviation is a mid-life aircraft specialist. All but two of the aircraft that we have acquired for SASOF II are in-production models, explained Mr. William Hoffman, Apollo Aviation s Chairman. We continue to see a robust market for mid-life flight equipment. We have a solid pipeline of deals, many involving in-production aircraft on lease to major airlines in North America, Europe, and Asia. SASOF II, which began trading in the first quarter of 2012, will continue investing through January The USD 595 million fund targets mid-life in production aircraft for lease or immediate disassembly. Apollo Aviation Management appoints veteran aviation finance specialist to its board of directors: Apollo Aviation Management Limited (AAML), the Irish subsidiary for international full service aviation asset manager Apollo Aviation Group (AAG), announced that Mr. Pat O Brien has been elected as a new independent director to its Board. Mr. O Brien is a former KPMG Partner who specialized in aviation finance and advising international aircraft leasing companies. Apollo- AACO Partner since 2013 Issue 82 - Jan

36 Our Partners News Rockwell Collins completes acquisition of ARINC Incorporated: Rockwell Collins, Inc. (NYSE: COL) announced on 23 December 2013 that it has successfully completed the acquisition of ARINC Incorporated from The Carlyle Group for USD 1.4 billion. With this move we take a major leap forward to realizing our vision of providing a richer set of seamless information management solutions that encompass the aircraft and ground-based systems, said Mr. Kelly Ortberg, CEO and president of Rockwell Collins. The acquisition represents an exciting new growth platform for Rockwell Collins and shifts the balance of the company toward the expanding commercial aviation sector. He added: Combining ARINC s high-performance, high-quality and high-assurance networks and services with our information systems onboard the aircraft strengthens our ability to deliver improved efficiency and safety, and enhanced connectivity, added Ortberg. In addition, the acquisition opens up adjacent market opportunities by leveraging ARINC s strong presence in airport information systems and the broader transportation and security segments. Integration process: The company expects the impact of the acquisition to be EPS accretive once certain transaction and integration costs have been incurred. The majority of integration activities are expected to be completed in 6-9 months. For the near term, customers can expect business as usual, and should continue to work with their current sales representatives, customer service centers and web-based resources. Related divestures: To serve the best interests of the industry, and avoid any perceived conflicts of interest, Rockwell Collins has completed the sale of ARINC s Industry Standards Organization to SAE International simultaneously with the completion of the ARINC acquisition. In addition, due to a lack of fit with its long-term strategy, Rockwell Collins has initiated preparatory efforts to divest ARINC s Aerospace Systems Engineering and Support business, which provides military aircraft integration and modifications, maintenance, and logistics and support. In total these businesses accounted for approximately 15% of ARINC s FY 13 revenues. ARINC- AACO Partner since 2002 Air Algerie fuels growth with 3 new ATR s: Air Algerie signed a purchase agreement for 3 new ATR s. The contract value is USD 74.1 million at current list price. The entry into service is expected from end 2014 through When delivered, the 68 seat new-comers will join an existing ATR fleet at the airline that currently includes 12 ATR s flying primarily on domestic and short regional routes. The new order will take Air Algerie s ATR fleet to 15 ATR 72s consolidating its position of the largest ATR operator on the African continent. The contract was firmed up at a special ceremony in Algiers by Mohamed Salah Boultif, Chief Executive Officer of Air Algerie, and witnessed by Dr. Amar Ghoul, Algeria s Minister of Transport and other prominent government officials. The arrival of the new aircraft is part of the airline s recent successful fleet renewal initiatives providing the extra capacity to its existing regional and international air network on the way to a major expansion. Leasing firm Avation PLC firms order for 5 additional ATR s: The commercial passenger aircraft leasing company Avation PLC (LSE: AVAP) and the European regional turboprop aircraft manufacturer ATR are pleased to announce the agreement for the purchase of five additional ATR s. The aircraft purchase, which involves the exercise of five options, is valued at some USD 120 million, based on catalogue prices. Deliveries of these five firm aircraft will take place in It is intended that these five aircraft will be delivered to new and existing leasing customers of Singapore-based Avation PLC. The company is seeing strong continued demand for this aircraft type, which was important in its decision to exercise the purchase options. Including this new order for aircraft, Avation PLC today has fourteen firm ATR aircraft to be delivered before the end As of today, thirteen ATR 72 aircraft have already been delivered on lease. In addition, Avation now has a total of 27 further options remaining to purchase additional aircraft under the agreement. ATR - AACO Partner since 1998 AWAS is dedicated to airlines serving the African continent and is active in the AACO AGM, AFRAA AGM, AASA AGM as well as the Middle East & Africa Airfinance conferences. We look forward to meeting all industry representatives and discussing how we can best serve their unique markets and business models. AWAS acquires one ER from Guggenheim Aviation Partners: AWAS announced on 30 December that it has acquired one ER aircraft from Guggenheim Aviation Partners. The aircraft is on longterm lease with an established global airline. AWAS agrees to lease new to Aeroflot: AWAS announced on 23 December that it has agreed to place one new passenger aircraft with Aeroflot in Russia. Aeroflot will use this aircraft to aid in the launch of its Dobrolet low cost carrier division. The aircraft comes from AWAS existing new order pipeline. This new aircraft will be delivered to the airline in the second half of AWAS delivers the first of two new A320 passenger aircraft to Airblue: AWAS announced on 17 December that it has delivered on lease to Airblue, the fastest growing airline based in Pakistan, the first of two new A320 aircraft to assist with their planned expansion and modernisation programme. These aircraft are from AWAS new order pipeline, and include factory-fitted end-of-wing Sharklets to maximise fuel burn efficiency. AWAS delivers one new A320 passenger aircraft to new customer Air Corsica: AWAS announced on 17 December that it has delivered one new A320 passenger aircraft to Air Corsica, an established regional airline in Europe. This aircraft is from AWAS new order pipeline. AWAS agrees to lease two additional new A320s to ANA Holdings Inc. (ANAHD): AWAS announced on 5 December that it has agreed with ANA Holdings Inc. (ANAHD) to the lease of an additional two new A320 aircraft from its order pipeline. AWAS - AACO Partner since 2013 Bloomberg, the global business and financial information and news leader, gives decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company s strength delivering data, news and analytics through innovative technology, quickly and accurately is at the core of the Bloomberg Professional service, which provides real time financial information to more than 315,000 subscribers globally. Bloomberg Industries (BI) provides subscribers interactive, continuously updated industry research and data. BI s team of more than 100 research professionals covers over 100 industries globally, offering in-depth data and analysis for each industry s drivers, metrics, competitors, themes and earnings. The BI portal also aggregates information from more than 200 third-party providers. Regional Main Contact Name: Mr. George T. Ferguson, IV, CFA Position: Senior Analyst Aerospace/Defense & Airlines Telephone: gferguson5@bloomberg.net Website: Bloomberg - AACO Partner since 2013 Issue 82 - Jan

37 Our Partners News BOC Aviation makes first delivery to KLM subsidiary, KLM Cityhopper: BOC Aviation has delivered the first of six Embraer E190 aircraft to KLM subsidiary, KLM Cityhopper, under an operating lease agreement. We are pleased to have KLM as a new customer as BOC Aviation delivers the first aircraft to its subsidiary KLM Cityhopper in a programme to replace its existing fleet for regional flights, said Mr. Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation. The E190 is ideal for this strategy. The remaining five E190 aircraft from BOC Aviation will be delivered between December 2013 and April BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 232 modern aircraft operated by 54 airlines worldwide. The Company has one of the youngest fleets in the industry with an average owned aircraft age of less than four years. BOC Aviation is 100% owned by Bank of China, and celebrated its 20 th anniversary on 25 November BOC Aviation - AACO Partner since 2003 Boeing to release fourth-quarter results on January 29: The Boeing Company will release its financial results for the fourth quarter of 2013 on Wednesday, January 29. Boeing delivers first with performance-improved engines: Boeing delivered the first with performance-improved GEnx-2B engines as part of the airplane s Performance Improvement Package (PIP.) A Cathay Pacific Airways Freighter was the first 747 to deliver with the PIP engines. The engine is the first of the package s three improvements to enter service. The two other components, Flight Management Computer (FMC) software upgrades and reactivation of the horizontal tank fuel system on the Intercontinental, are expected to enter service later this month and in early 2014, respectively. The PIP engine improves the airplane s efficiency by 1.8%. Boeing board authorizes USD 10 Billion share repurchase, raises dividend 50%: Boeing Chairman, President and Chief Executive Mr. Jim McNerney announced that the Boeing board of directors authorized an additional USD 10 billion for the company s share repurchase plan and declared that the company s regular quarterly dividend will increase by approximately 50% to 73 US cents per share. Boeing realigns research & technology unit for growth and productivity: Boeing announced it will establish technology research centers in Alabama, California, Missouri, South Carolina and Washington as it continues to lay the foundation for increased competitiveness and future growth. The company will restructure its Boeing Research & Technology organization, the company s central research-and-development unit, through the establishment of research centers in Huntsville, Ala.; Southern California; St. Louis; North Charleston, S.C.; and Seattle. The new centers will operate independently but cooperatively with one another and with Boeing technology centers in Australia, Brazil, China, India, Spain and Russia. The international centers conduct research to benefit the environment, aviation safety, air traffic management and other areas. Boeing- AACO Partner since 1998 Going for growth as Mr. Markus Flacke joins as the new Managing Director of CHAMP Cargosystems GmbH: CHAMP Cargosystems has nominated Mr. Markus Flacke Managing Director CHAMP Cargosystems GmbH, Frankfurt/Main. He takes over from Felix Keck effective January 1st, Mr. Markus Flacke brings more than twelve years of experience in the air cargo industry to his new job joining from Lufthansa Cargo where he has held a variety of management positions. He studied at the Universities of Kiel and Marburg (Germany) and gained a B.A. (Honors) degree in Arabic with Middle Eastern and Islamic Studies at Durham University (UK). Markus is married and has two sons. I am delighted to be joining the CHAMP Cargosystems Group in its 10 th anniversary year and I am looking forward to the challenges of this new position. My main focus will be on strategic business development. Joining such an innovative company, that has continued to grow and embrace change throughout its 10 year history is an honor and I m very much looking forward to playing my part in the future success of this great company, says Mr. Markus. Markus knows CHAMP Cargosystems. He brings operational experience, a wealth of knowledge about the air cargo industry and IT requirements as well as multi-cultural experience to his job. I expect him to drive the CHAMP Cargosystems business forward, supporting our extensive customer network and welcoming new customers in existing and new markets. We are focused on strong sustainable growth through great service and continual innovation. I m delighted that Markus has joined the CHAMP family and welcome the energy and purpose he will bring to his duties. I would also like to take this opportunity to thank Felix Keck for his excellent work and loyal support during the past years. We wish him all the best for his future career, says Mr. John Johnston, CEO CHAMP Cargosystems Group. CFM: The Power of Flight CHAMP - AACO Partner since 2010 CFM International is a 50/50 joint company of Snecma (Safran group, France), and GE (USA). CFM produces the highly popular CFM56 engine family and its product line includes nine engine models for more than 30 commercial and military applications. CFM International was formed as a joint venture in 1974 and the two parent companies have extended the partnership agreement to the year CFM is developing a new engine family, under the brand name LEAP, which will enter service in This new engine, which was formally launched in 2008, is the next-generation engine family for singleaisle aircraft. LEAP is designed to meet customer expectations, with reduced fuel consumption and maintenance costs, combined with higher reliability and greater environmental-friendliness. LEAP engines have already been selected for three major applications: LEAP-1A for the Airbus A320neo, LEAP-1B for the Boeing 737 MAX, LEAP-1C the sole Western powerplant on the COMAC C919. More than 23,000 CFM56 engines have been delivered to date to more than 530 operators worldwide. CFM - AACO Partner since 1998 Issue 82 - Jan

38 Our Partners News Engine Lease Finance Corporation (ELFC) extended its position as the world s largest independent aero-engine lessor in 2012 with another record year of spare engine portfolio growth. We maintained keen focus on spare engine support for our numerous customers in the MENA region with further growth in short and long term engine lease support to airline members of AACO. We are very proud to play a support role in 2013 in the success of MENA airlines, large and small and will continue to offer our products during the coming year: Shop Visit Cover leasing of our spare engines into airlines to cover short term scheduled and unscheduled engine removals; Long term Engine provision leasing our engines over several years to provide our airline customers with cost efficient operation of spare engines, removing the capital intensive demand of spare engine acquisition; Purchase-leaseback of engines owned by airlines. With the backing of our parent company Bank of Tokyo-Mitsubishi UFJ. Ltd. we have the financial resources required to provide clear financial and operational benefits for our customers. GECAS delivers new leased A330 to China Airlines: GE Capital Aviation Services Limited (GECAS), the commercial aircraft leasing and financing arm of GE, announced delivery of a new leased Airbus A330 aircraft to China Airlines to help modernize its fleet. This is the first of two A330s that will be leased to China Airlines. The second is scheduled for delivery in The aircraft come from GECAS existing orderbook with Airbus. In addition to these new deliveries, in December 2012 GECAS announced it will lease four ERs to China Airlines with deliveries scheduled to begin in GECAS currently leases eight E190s to Mandarin Airlines, a subsidiary of China Airlines. GECAS to lease two Boeing to Jeju Air: GECAS announced it signed a lease agreement with South Korean low-cost carrier Jeju Air for two Boeing aircraft. The aircraft are scheduled for delivery in 2014 to expand the carrier s fleet. Jejuair currently operates 13 Boeing s, its first delivered in It maintains three domestic routes and 15 international routes. Jeju Air has seen 30% annual passenger growth the last three years. GECAS - AACO Partner since 2003 We have a wealth of experience to share without obligation. For more information, please contact Senior Vice President Mr. Julian Jordan at julian.jordan@elfc.com ELFC- AACO Partner since 2003 Farelogix Inc. is a recognized industry leader whose technology is modernizing the airline merchandising and distribution landscape. Headquartered in Miami, Florida, the company serves a global customer base that includes many of the world s largest airlines. Farelogix solutions align directly with airline merchandising and IT objectives to personalize, monetize, and enhance airline product offerings with unparalleled cost advantage and speed to market. The company s flagship Airline Commerce Gateway is a series of fully integrated and optimized technology components for airline-controlled distribution and merchandising, in compliance with IATA NDC and with full support for EMD and ARC/BSP. Using the Gateway, airlines are able to focus on greater customer satisfaction while realizing high-margin revenue from ancillaries, flight merchandising, fare families, personalized offers, and targeted cross-selling, and more all delivered seamlessly across multiple sales channels and customer touch points. For additional information: Farelogix - AACO Partner since 2013 GlobalCollect is the most knowledgeable global Payment Service Provider in the world, processing more than USD 14 billion in international e-commerce payments per year for more than 500 of the world s most recognized e-commerce brands in the digital goods and services, travel, retail and video gaming industries, among many others. With nearly two decades of payments experience, we enable our clients to efficiently and securely accept payments from more than 170 countries in more than 170 currencies, using in excess of 150 local payment methods including all major credit and debit cards, direct debits, bank transfers, real-time bank transfers, ewallets, cash at outlets, prepaid methods, checks, and invoices. This gives our customers unparalleled coverage, especially in high-growth regions like Latin America, where GlobalCollect acquired regional PSP Sub1 in Our robust and redundant systems guarantee our customers high availability and reliability. GlobalCollect s business intelligence tools and more than 400 payments experts help our clients elevate their payment strategies to become a strategic asset to their companies. Headquartered in Amsterdam, GlobalCollect has six locations around the world, and is a Welsh, Carson, Anderson & Stowe company. Let GlobalCollect help you convert lookers into bookers and contact us today: Tel: +31 (0) or info@globalcollect.com GlobalCollect - AACO Partner since 2007 Issue 82 - Jan

39 Our Partners News Hahn Air s new Cessna CJ4 arrives at Düsseldorf Airport: Hahn Air has announced that the first of the two Cessna CJ4s ordered in 2013 arrived at its homebase in Düsseldorf. The new aircraft will operate flights between Düsseldorf International Airport (DUS) and Findel Luxembourg Airport (LUX). The cooperation between Hahn Air and Cessna dates back to 2005 when the first Cessna aircraft a Cessna Citation Jet 2 was purchased. Nowadays the German scheduled and charter airline operates an all-cessna fleet which will be expanded with an additional CJ4 in Hahn Air - AACO Partner since 2014 IAS activities consist in designing and implementing tailor-made training solutions in the aeronautic and space domain on international level, through training engineering know-how. Created in 1980, Institut Aéronautique & Spatial, non-profit association, is the French Aerospace Industry Association (GIFAS) international further education agency. IAS members are the major aeronautical & space companies such as EADS (Airbus, Eurocopter, MBDA, Astrium and ATR), SAFRAN (Snecma, Turbomeca, Labinal), THALES, Dassault Aviation, Aeronautical and Space SME s. IAS mission is to develop a network of foreign partners, major actors in the aeronautical and space domain in their countries. IAS activities are focused on training engineering and educational solutions implementation. IAS site is located in Toulouse, city gathering: Airbus-company headquarters and main assembly lines; ATR company headquarters and main assembly lines; EADS Astrium Assembly plant; Thales Alenia Space Assembly plant and Head Quarters; Thales Avionic Manufacturing plant; and CNES plant Toulouse, 2 nd university city in France, welcomes as well the main French Technical Institutes and universities for aeronautical and space domain with whom IAS is working closely: ISAE (Institut Supérieur de l Aéronautique et de l Espace); ENAC (Ecole Nationale de l Aviation Civile); ENSEEIHT (Ecole Nationale Supérieure de l Electronique, Electrotechnique, Informatique, Hydraulique, Télécommunications); University Paul Sabatier; Toulouse Business School; etc IAS main activities are synthesized as follows: Master Program (for engineers, managers and future teachers); Modules Program (short training courses for technicians, engineers, managers, etc); Specific Training Projects for all type of partner. All IAS actions are mandated by IAS directorate and GIFAS : i.e. EADS, Safran, Thales, Dassault Aviation and GIFAS SME s. IAS - AACO Partner since 2008 GX Aviation firmly on track following successful launch of Inmarsat s first Global Xpress satellite: Inmarsat announced the successful launch of first Inmarsat-5 Global Xpress satellite. It was launched from Baikonur Cosmodrome in Kazakhstan on 8 December on a Proton Breeze M rocket. The launch is a major milestone in the development of GX Aviation, which will provide the world s airlines and aircraft operators with the first global high speed mobile broadband service. Inmarsat is the owner and commercial operator of the Global Xpress constellation. By the close of 2014, the fleet will comprise three high throughput satellites and GX Aviation will offer a unique combination of seamless global Ka-band coverage from a single operator, consistent performance of up to 50Mbps, and the network reliability for which Inmarsat is renowned. In addition to passenger communications, it will support real-time TV and live feeds from the internet, for example, and will offer airlines future-proofed connectivity with ample broadband capacity for growth. The I-5 satellites are built by Boeing Satellite Systems International Inc., based on the proven 702HP design. Inmarsat-5 F1 is part of a USD 1.6 billion investment by Inmarsat into the next generation of global mobile broadband communications. The satellite was correctly acquired by the Inmarsat Paumalu station at 17:48 GMT on December 8. The Inmarsat controllers commanded the satellite to perform seven chemical burns to raise it to its geosynchronous elliptical orbit. By the end of December, the satellite had completed deployment of its solar arrays and reflectors. This was followed by the electrical orbit-raising phase, taking the spacecraft to its final geostationary orbit. This is scheduled to be completed by the end of January, ready for the start of payload testing at the beginning of February. The satellite weighed over six metric tons at lift-off and has 89 Ka-band beams. It is designed to generate approximately 15 kilowatts of power at the start of service. Video footage is available here Inmarsat - AACO Partner since 2013 Jeppesen and flynas of Saudi Arabia agree to new five-year multiple service contract: Jeppesen and flynas have reached a new five-year service agreement to include electronic flight bag (EFB), digital tailored navigation data and flight planning services. Jeppesen solutions will provide increased operational efficiency on the ground and in flight and will improve situational awareness for flynas pilots. Jeppesen FliteDeck Pro EFB services will be integrated by flynas on ipad, to help eliminate paper-based flight information for airline operations and increase situational awareness in flight by providing essential data-driven, real time flight data onscreen that is displayed per the preferences of flynas pilots. flynas will access Jeppesen JetPlan flight planning engine, which delivers optimized flight plans to increase operational efficiency. Jeppesen flight planning solutions also provide operations management planning services and advanced support options and tools for seamless airline integration. Digital Jeppesen services to help Hi Fly airlines operate global wet lease flights more efficiently: Jeppesen will provide international operator Hi Fly airlines with digital navigation and electronic flight bag (EFB) services through a new five-year service agreement. Hi Fly, based in Portugal, provides international wet lease flights to supplement large airline operations on a global scale. Norwegian Airline Wideroe to integrate Jeppesen FliteDeck Pro EFB solution into operation: Jeppesen and Widerøe recently signed a new five-year electronic flight bag (EFB) service agreement. Widerøe, a long-standing Jeppesen customer, will transition from traditional paper-based flight and operations materials, to integrate digital Jeppesen FliteDeck Pro solutions delivered through ipad and Aviobook EFB software. Jeppesen - AACO Partner since 2008 Issue 82 - Jan

40 Our Partners News Kennedys Dubai office relocation: Kennedys two Dubai offices have consolidated in to a single location. Following the merger with Gates & Partners in 2013, the firm inherited the Jumeirah Lakes Towers office, and this office has now been relocated to Sheikh Zayed Road. From the Sheikh Zayed Road office, the Dubai team will continue to provide specialist legal services in construction and engineering, insurance, resolving disputes, putting deals together, and advice during construction. Kennedys expands in Dubai with addition of aviation services: Kennedys welcomes Anthony Frances, formerly of Gates & Partners, to our Dubai office, adding Aviation to our services provided in Dubai and the Middle East. The arrival of Anthony continues the expansion of Kennedys Dubai, following the relocation of Peter Ellingham (Insurance Partner and current Resident Managing Partner) and Andrew MacCuish (Construction Partner) at the beginning of The office is seeking larger premises but for the immediate future will continue to be based at Al Attar Business Tower, next to the DIFC, from which it provides specialist services in construction, energy, insurance, aviation and marine, commercial contracts and general dispute resolution. Kennedys and Simpson & Marwick no longer intend to merge: Further to our announcement on 30 August 2013, Kennedys and Simpson & Marwick advise that the two firms no longer intend to merge. Both firms and their partners hold each other in the highest regard and are very disappointed that for complex reasons the merger could not be finalised. Clients and their interests are our priority. There are a number of cross border clients that Kennedys and Simpson & Marwick plan to continue working closely with in order to provide a UK wide service. Kennedys - AACO Partner since 2011 Kazakhstan s New Silk Way business forum trusts in intermodal solutions: The second International Transport and Logistics Business Forum Kazakhstan New Silk Way 2013 took place in Astana from the 6-7 November as a platform for intermodal solutions for Kazakhstan. The government plans to implement international best practices in logistics by using the synergy of all modes of transport (air, sea, rail and road). Kazakhstan now has a greater focus on aviation development and in cooperation with Lufthansa Consulting the country has started to build up international standards, particularly in terms of safety and security requirements. Lufthansa Consulting s Associate Partner Mr. Thomas J. Niehaus shared his expertise in the event s panel session and chaired the discussion on intermodal solutions in transport logistics in Kazakhstan with a line-up of international industry specialists. Panelists like Mr. Peter Foster (President of Air Astana), Mr. Kairat Zhauhanov (President of Astana Airport), Mr. Daulet Mamekov (Vice President of Almaty Airport), Mr. Simon Weimer (Vice President of International Business Development SWISSPORT) and Mr. Bolat Naurzaliyev (Executive Director of JSC «KTZ Express») contributed their knowledge. In close contact to former employees: On the occasion of Lufthansa Consulting s 25th anniversary this year the company s first alumni event took place on 14 November 2013 at their Frankfurt office premises. About fifty former employees accepted the invitation of Lufthansa Consulting (LCG) and joined the evening event. The guests enjoyed sharing their memories and experiences in projects and other occasions from their time as LCG employees. Most of them are still working in the aviation business. This offers a great opportunity for LCG and the alumni for exchange and network. Lufthansa Consulting - AACO Partner since 2010 Prepare your aircraft - Best medical kits for your needs : Did you know that MedAire, the company that delivers MedLink, also provides medical kits and equipment for airlines? It s true. MedAire delivers medical kits and refurbishment services to more than 40 airlines worldwide. Using their experience assisting airlines with more than 200,000 in-flight medical events, MedAire knows what crew members need to provide timely, accurate assistance during routine and emergency medical events. This first-hand knowledge, in addition to regulatory expertise, delivers a better medical kit for the crew and the airline. MedAire s line of aircraft medical kits and equipment includes: ͳͳ First Aid Kit (FAK). The MedAire First Aid Kit includes non-prescription medications and first aid supplies. Users can quickly find what they re looking for via the accompanying color-coded content card. The first aid kit meets EASA-OPS regulation. ͳͳ Automated External Defibrillators (AEDs). AEDs provide the best chance of survival from sudden cardiac arrest. The MedAire AED includes a pediatric key, an extra battery, an extra set of pads, and an AED prep kit with gloves, a razor, trauma scissors, and CPR pocket mask. ͳͳ Universal Precautions/Biohazard Kit contains supplies to protect people from bodily fluids as well as safely contain/dispose of suspected hazardous materials. ͳͳ Passenger Transfer Equipment. MedAire s Personal Transfer Kit and Movable Disc Board help facilitate safe passenger transfers to/from wheelchairs, onboard aisle chairs and passenger seats in tight or awkward transfer scenarios. Passenger transfer equipment oftentimes decreases the chances of injury to assisting personnel. MedAire s medical kit packaging and distribution facilities are strategically located to efficiently support airlines around the world. Contact MedAire to see what we can do for you. Tel: info-asiapacific@medaire.com MedAire - AACO Partner since 2008 Get passengers and cargo to their destinations safely and on time. That s the promise of every airline. Rising complexity puts the burden on technology to keep it. mercator provides business technology solutions and services to the global airline industry. Our value proposition is a compelling one: reduced costs, improved processes and increased performance. Our mission is to bring our airline clients and passengers closer to the technology solutions they need for smooth, efficient travel. mercator s solutions cover five key areas of service excellence: Safety, Passenger, Cargo, Loyalty and Finance. For example, our new safety and compliance management system, msid, focuses on ensuring that standards of safety are continually improved, protects the welfare and safety of customers, colleagues and equipment; and predictably improves operational performance. mercator s newly-developed baggage tracking and management technology, mbelt gives ground handlers and airports an end-to-end tool to help them manage the entire lifecycle of their passengers bags, adding high visibility and transparency to baggage movement. Our clients span the globe and include award-winning carriers, hybrid, low-cost and regional airlines. While aviation has always driven our technology, the variety of operations we serve has taken our industry expertise to another level. Our IT infrastructure helps any airline reduce costs, streamline processes and increase productivity-enabling you to deliver your essential promise. Regional Main Contact Name: Mrs. Bashira A Nashawati, Sales Support: mercator - Emirates Group Telephone: bashira.nashawati@emirates.com Website: mercator - AACO Partner since 2003 Issue 82 - Jan

41 Our Partners News MTU Maintenance, a business division of MTU Aero Engines, is the world s largest independent provider of commercial engine maintenance services. The company offers services ranging from the maintenance, repair and overhaul (MRO) of commercial aircraft engines to component repair and accessory maintenance. Its portfolio includes aircraft engines in all thrust classes from small turboprop engines to the largest engine ever developed, General Electric s GE90-110B/-115B. MTU Maintenance operates globally with facilities in Hannover and Berlin-Brandenburg (Germany), Rzeszów (Poland), Vancouver (Canada), Dallas (U.S.A.), Zhuhai (China) and close to Kuala Lumpur (Malaysia). Apart from core engine maintenance, MTU Maintenance stands out for its services, always providing flexible solutions that are individually tailored to suit its customers needs and ensure maximum benefit at affordable costs: A considerable engine lease pool known as e.pool, on-site support and on-wing repairs, accessories and LRU management, MTUPlus Engine Trend Monitoring, logistics support, 24/7/365 AOG service and fleet management up to Total Engine Care (TEC ) packages for all engine types in its portfolio. While many MRO providers, when faced with a defective part, may be quick to reach for replacement parts, MTU s maintenance experts rather repair. Owing to its innova-tive processes and decades of experience, MTU Maintenance succeeds in repairing heavily worn parts, components and accessories at an affordable price. Its high-tech repair approaches are globally unique and known under the trademark MTUPlus re-pairs. They have been developed in-house by MTU Maintenance and are approved and certified by EASA and FAA agencies. These techniques run the gamut from automated selective stripping of coatings to specialty high-temperature brazing, and high-precision welding and joining using automated laser machines. MTU - AACO Partner since 2013 OnAir supports FCC proposal: There is nothing to fear from the use of cell phones during flights : OnAir supports the FCC s proposal to revise outdated rules by allowing airlines to permit passenger use of cell phones services during flights. It paves the way for U.S. passengers to have the same inflight connectivity choices as passengers everywhere else in the world. Over four and a half million passengers use OnAir inflight connectivity each year and what is very striking is that there has not been one single complaint about disruption caused by phone calls, said Ian Dawkins, CEO of OnAir. Mobile OnAir is available on every continent apart from North America. People from all over the world, including Americans, use it every day. Passengers typically use Mobile OnAir, OnAir s inflight cell phone service, for data largely to update Facebook and Twitter, and for text messaging. Voice calls, which cost around $3-$4 per minute, account for slightly over 10% of total inflight usage and the average call length is under two minutes. Based on the factual evidence of six years of inflight cell phone usage around the world, I can be absolutely clear that there is nothing to fear from the use of cell phones during flights, said Dawkins. Mobile OnAir has flown with more than 25 airlines on hundreds of thousands of flights across the world since 2007, with the full backing of over 100 national authorities. OnAir s airline customers include world-leading global airlines such as Aeroflot, British Airways, Emirates, Philippine Airlines, Qatar Airways and Singapore Airlines. Mobile OnAir is currently on around 16,000 flights a month and 380,000 passengers connect to OnAir each month. Positive action by the FCC would clear the technical telecoms hurdles to give airlines the option of installing cellular inflight connectivity systems. Airlines would decide whether to offer voice services, along with , data, and text; they are in control of what services they offer their passengers. For the first time, U.S. airlines would be able to offer cellular services, as their international competitors have Optiontown is the pioneer in the world of Dynamic Travel Options. Our technology developed following extensive research at the Center of Transportation Studies at the MIT in Boston, Optiontown gives airlines a ground-breaking platform to use patented post-ticket-purchase algorithms based on the principles of Concurrent Optimization. Without cash investment for the carrier or complex and lengthy IT integration, airlines can generate between 3 and 7% incremental revenues from its core business the airline seat - while enhancing utility for their customers by creating a unique travel experience of increased comfort and convenience at affordable prices fulfilling the consumers unmet desires. The Optiontown product portfolio includes Upgrade Travel Option (UTo), Flexibility Reward Option (FRO), Empty Seat Option (ESO) etc. and is based on patented algorithms using the latest concepts of artificial intelligence. These options on ancillary services are available to the passengers after purchasing a ticket from the airline or a travel agent. World-class international airline clients use the Optiontown suite of algorithms to enable interaction with their passengers. Optiontown is head-quartered in Boston, Massachusetts and operates branches in Canada, India and Europe. For more information, please contact: Anuj Goel/ Vice President Sales & Marketing Tel : partners@optiontown.com Visit : Optiontown - Enjoy unique travel options Optiontown - AACO Partner since 2011 Quali-audit is an independent Audit Organization (AO) accredited by IATA to conduct IOSA annd ISAGO audits. As Endorsed Training Organization (ETO), Quali audit provides IOSA auditorr training for operators. Conducting IOSA audits since 2006, and also with a large range of operational assistance and training for operators, our experts have worked in the continuity of the IOSA program. Our team now counts more than 56 auditors. For thee first semester, Quali-audit realized thirty IOSA audits, near than ten trainings and safety evaluation for operators in different regions. The IOSA program is now moving to a next level that will result in an even more effective evaluatioon of operational safety and security practices, and add value to the IOSA experience for member airlines. In the transition, thee project is called Enhanced IOSA. Enhanced IOSA audit started this year with ten volunteer operators. Quali-audit will conduct two Enhanced IOSA audits near Air Moldova and Air India. Quali-audit was selected to perform the IOSA audit of Middle East Airlines and Yemenia Airways, members of the AACO. Our next training session in Paris CDG: ͳ Quality Auditor Training session was held from 24 th to 27 th of September and from 26 th to 29 th of November ͳ IOSA Auditor Training (IAAT) session was held from 30 th of September to 4 th of October 2013 and from 2 nd to 6 th of December ͳ Operational Management Training will be held from 18 th to 22th of November Upon request, trainings can be realized on the operators premises. For any queries concerning Quali-audit, please contact our Business Manager, Mr. Joris DUTHEIL, jodutheil@airfrance.fr, Tel: +33(0) , Mob: +33(0) Quali-audit - AACO Partner since 2008 been doing for six years. OnAir - AACO Partner since 2009 Issue 82 - Jan

42 Our Partners News Sabre technology helps to power Comair performance: Comair Limited, the listed aviation holding company based in South Africa, has revealed a significant growth in revenue only a year after implementing its new airline solutions infrastructure. For the 12-month period ending June 30, 2013, the carrier announced that its total revenue had increased by 29 percent to 340 million, up from 263 million the previous year. In September 2011, Comair signed an agreement with Sabre to deploy a broad portfolio of software solutions with the intent to improve its customer service and business operations. The carrier believes the new technology has played a central role in underpinning its recent performance. Mr. Stuart Cochrane, Comair s executive manager for business processes, said: We wanted to streamline our processes and systems, enhance our customer service, and grow our distribution footprint and revenue. The real-time revenue integrity technology has made our inventory management much more efficient, the crew management technology has allowed us to improve rostering, while in the customer service area we believe we are well on our way to delivering a consistently better experience to our customers. We have realized some initial benefits across both our operational and commercial areas, and whilst there is still much more to do in order to extract the maximum value out of these solutions we are comfortable that the decision we took to partner with Sabre Airline Solutions is starting to show a good return on our investment Mr. Maher Koubaa, Sabre Airline Solutions general manager for the Middle East and Africa, said: Working closely with the airlines to make sure we develop and deliver the technology they need to achieve their business objectives is fundamental to our approach. Comair understood technology would play a central role in the evolution of its business. There was close collaboration to make sure the right technology was driving the most efficient business processes and most effective customer service. As a complete business partner, Sabre Airline Solutions offers the world s broadest portfolio and the industry s largest Software as a Service platform, giving airlines the freedom to better market their schedules, sell their products, serve their customers and operate efficiently. With our expertise and consulting services, we help 380+ customers in the airline, airport and aviation organizations around the globe to help increase their revenues, decrease costs and deliver their unique customer experience. Additionally, our world-class delivery and customer care helps to create faster ROI and lower total cost of ownership for their business. Sabre Airline Solutions is a part of Sabre Holdings, the world leader in the travel marketplace, with 1,400 professionals dedicated to the airline business. For more information please visit: Sabre Travel Network operates the world s largest travel marketplace, connecting travel buyers and sellers through the Sabre global distribution system (GDS). Our innovative software connects more than 350,000 travel professionals to more than 400 airlines, 100,000 hotels, 25 car rental brands, 50 rail providers, 14 cruise lines and other global travel suppliers. More than $100 billion of travel is purchased through this marketplace annually. Sabre Travel Network is part of Sabre Holdings, a global travel technology company serving the world s largest industry- travel and tourism. For more information please visit: Sabre - AACO Partner since 2002 Issue 82 - Jan

43 Our Partners News Seabury provides management consulting and investment banking to the airline industry. We provide our clients a comprehensive approach to driving business solutions, no matter how complex or challenging. To achieve that end, Seabury s professionals are a unique combination of management consultants, top-tier bankers, and former airline industry executives. Services cover the needs of our clients from strategy, through implementation, to financing. Seabury is also a global leader in providing profitability analysis software tools and data products in aviation, aerospace, cargo and human capital. Regional Main Contact Name: Mr. Jonathan Sullivan, Managing Director, EMEA Telephone: Fax: jsullivan@seaburygroup.com Website: Seabury - AACO Partner since 2008 Shell Aviation has been supplying high quality products and services to the aviation industry worldwide for over 100 years. Every day, at over 800 airports across some 40 countries, Shell Aviation fuels around 7,000 aircraft, refueling a plane every 12 seconds. Our customers range from the private pilot to the largest global airlines. In the region, Shell Aviation is focused on providing the aviation industry with a comprehensive and reliable supply network and the best possible customer service. Shell is successfully supporting the fuel needs of the Middle East s leading airlines, including Emirates Airlines, Etihad Airways and Qatar Airways. In recognition of its contributions to the region s aviation and airport industry, Shell has been the recipient of the Best Aviation Fuel Provider at the Emerging Markets Aviation Awards (EMAA) for three consecutive years (2010, 2011,2012). Shell Aviation has received the Armbrust Award for Top Aviation Refueled Worldwide consistently over the past decade and operates as a reliable fuel supplier partner to the region with concessions at leading airports in the Middle East, including at Dubai s World Central-Al Maktoum airport. Always at the forefront of innovation, Shell contributed to a global aviation milestone with the first commercial aircraft, Qatar Airways October 2009 when a Qatar Airways aircraft travelling from London to Doha completed the world s first commercial passenger flight powered by a fuel from natural gas. Shell developed and produced the blend of synthetic Gas to Liquids (GTL) kerosene and conventional oil-based kerosene fuel and has been working with Airbus, Qatar Airways, Qatar Fuel Company (WOQOD), Qatar Petroleum, Qatar Science & Technology Park and Rolls-Royce to research the benefits of using GTL Jet Fuel for cleaner energy. Shell Aviation- AACO Partner since 2002 Silverpop is the only digital marketing technology provider that unifies marketing automation, , mobile, and social. Our customers achieve superior Return on Relationship, by uniquely engaging each individual based on their behaviours. By utilising Silverpop s complete digital marketing platform, easily achieve success-enabling you to automate personalised experiences for passengers, increase revenue, improve ROI, and deepen your brand loyalty. Trusted by more than 5,000 brands around the globe, we offer a world-class services team, 24/7 customer support, and a network of partners. With Silverpop, every client gets the right mix of solutions for their specific digital marketing needs. Silverpop has many Global Airline clients, successfully helping them to deliver personalised communications, enhancing the passenger experience. Why Silverpop? When searching for a provider, you want to find a vendor who has tools designed to help integrate multiple channels , mobile, social and local. But you also want a vendor that makes it easy to capture contact behaviour, and then translate this insight into revenue. Ultimately, showing which campaigns or pieces of content were most effective in motivating passengers to take action. With Silverpop, you can become more automated, strategic and social all whilst collecting and acting on comprehensive behavioural data, as well as traditional demographics to take your personalisation to the next level. Although our roots are in marketing, our vision has evolved. We have expanded our focus on tools and techniques that easily capture personalised customer behaviour, and leverage automation driving higher conversion rates and relevant customer communications. Silverpop continues to combine the best features of marketing and marketing automation. We provide our customers with industry thought leadership, a world-class partner network, 24/7 support and the services they need to take their campaigns to the next level. SILVERPOP - AACO Partner since 2013 SITA brings self-service to Kuwait International Airport: Kuwait International Airport s seven million annual passengers will enjoy new self-service check-in kiosks in a deal with air transport IT specialist, SITA. The new kiosks, which are in the final stages of testing, are part of an eight-year contract renewal for SITA s AirportConnect Open passenger processing platform. Turkish Airlines adds SITA kiosks as passenger numbers rise: Turkish Airlines will install 80 new self-service check-in kiosks from SITA in three of Turkey s busiest airports to enhance customer service for its 38 million annual passengers. With the new kiosks, SITA reaches a landmark 2,000 S3 AirportConnect kiosks delivered worldwide, bringing efficiency and flexibility to airlines, airports and passengers. Domodedovo Airport first in Russia with SITA s WorldTracer Kiosks: Moscow Domodedovo Airport has become the first in Russia and the CIS to install self-service WorldTracer Kiosks. Provided by air transport IT and telecoms specialist SITA, they enable passengers to report delayed bags without having to wait in line for an agent. What will 2014 bring for airlines, airports, and, most importantly, passengers? Economies across the world are beginning to pick up. And the air transport industry s slow growth, while welcome, leaves some uncertainty about the future. However, there are some things we do know. Both airlines and airports are increasing their IT spending, with a very strong focus on improving the passenger experience. Big Data is set to transform the way airlines and airports interact with passengers. Passengers want to use mobile technology more during every aspect of their journey, but the services are not yet mainstream. You can find comprehensive data and graphs at SITA s Air Transport IT Trends Hub and all the reports here. Bookmark these pages for instant access to up-to-date statistics throughout the year. SITA - AACO Partner since 2008 Issue 82 - Jan

44 Our Partners News Increased content and ancillary distribution underline 2014 focus for Travelport: Travelport has kicked off 2014 with an ambitious growth strategy and a strong focus on airline distribution was a year of many successes for Travelport including high profile content agreements with the likes of Gulf Air, Hong Kong Airlines, Tigerair and Pakistan International Airlines, to mention just a few. In April last year, Travelport also delivered a real industry first with the launch of the Travelport Merchandising Platform, which is already revolutionising the way airlines distribute their content through the travel agency channel, and remains a key focus in Travelport Merchandising Platform offers three distinct solutions Aggregated Shopping, Ancillary Services and Rich Content and Branding. Airlines who have to date signed up to the platform include KLM, British Airways, Delta, Air New Zealand, Tigerair, and Air Canada. Aggregated Shopping the way forward: The Aggregated Shopping component is expected to be especially significant for the Middle East in 2014, as regional airlines look to increase their revenues. In practice, Aggregated Shopping consolidates within the same screen, shopping results from traditional carriers who connect through ATPCO with those from low cost carriers and others who prefer to connect with Travelport via an API connection. The new technology negates the need to shop and compare across several screens and allows travel agents to book both types of carriers in the same booking flow. Success stories: Airlines who have already adopted the aggregated shopping technology include easyjet, who were impressed by the flexible approach Travelport was offering airlines and has confirmed that the Aggregated Shopping functionality has played a key role in boosting its bookings with business travelers. The airline is on track to grow its Travelport bookings by 120% by the end of the year. Jet2.com were quick to follow easyjet. Combined, overall segments for the first 3 airlines (easyjet, Jet2.com and Norwegian) have grown by 105% compared to this time last year. Travelport - AACO Partner since 2000 THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE Issue 82 - Jan Issue 82 - Jan

45 AACO & RTC CALENDARS

46 AACO & RTC Calendars AACO CALENDAR February 2014 Sun Mon Tue Wed Thu Fri Sat 1 AACO RTC CALENDAR January 2014 Sun Mon Tue Wed Thu Fri Sat th Executive Committee Meeting / KAEC - Saudi Arabia AACO Future Distribution Strategies Task Force Meeting / Dubai Strategic Management Course / Cairo March 2014 Sun Mon Tue Wed Thu Fri Sat th Environmental Policy Group Meeting / Amman February 2014 Sun Mon Tue Wed Thu Fri Sat Training Needs Assessment / Amman Managing an Airline Station Course / Amman Stress Management / Cairo Aircraft Maintenance & Planning / Amman Fuel Conservation Management Course / Cairo Cargo Accident Investigation and Partnership / Cairo For additional information, kindly contact Mr. Emad M. Abouzeid / Executive Director Training at rtc@aacortc.com Issue 82 - Jan

47 OUR MEMBER AIRLINES & INDUSTRY PARTNERS

48 Our Member Airlines, & Industry Partners AACO member airlines were established in the following sequence: AACO MEMBER AIRLINES 1. Egypt Air (1932) 2. Iraqi Airways (1945) 3. Middle East Airlines (1945) 4. Saudia (1945) 5. Syrian Arab Airlines (1946) 6. Sudan Airways (1946) 7. Tunis Air (1948) 8. Gulf Air (1950) 9. Air Algerie (1953) 10. TMA (1953) 11. Kuwait Airways (1954) 12. Royal Air Maroc (1957) 13. Yemen Airways (1962) 14. Royal Jordanian (1963) 15. Libyan Airlines (1964) 16. Emirates (1985) 17. Nouvelair (1989) 18. Oman Air (1993) 19. Qatar Airways (1995) 20. Palestinian Airways (1995) 21. Tassili Airlines (1997) 22. Jordan Aviation (2000) 23. Afriqiyah Airways (2001) 24. Etihad Airways (2003) 25. Air Arabia (2003) 26. Air Cairo (2003) 27. Maximus Air (2005) 28. Petra Airlines (2005) 29. Flynas (2006) 30. Rotana Jet Aviation (2010) AACO INDUSTRY PARTNERS Issue 82 - Jan