Official Monthly Bulletin of AACO. Issue 91 - Oct 2014

Transcription

1 Issue 91 - Oct 2014 Official Monthly Bulletin of AACO

2 Arab world marks an increase of 10.8% in August 2014 in international passenger numbers - p. 7 AVIATION WITHIN THE ARAB WORLD GROWTH p: 10 GLOBAL ARAB AVIATION SPREADING OUT p: 26 PARTNER AIRLINES p: Collaborative aviation climate action takes flight - p. 36 ARAB AIRLINES ECONOMICS p: 11 EXPANSION p: 13 COLLABORATION p: 34 ENVIRONMENT p: 36 INDUSTRY PARTNERS p: AACO & RTC CALENDARS p: LAURELS p: 14 REGULATORY TONE p: 38 AACO MEMBERS & PARTNERS p: US EX-IM Bank charter extended- p. 38 TECHNOLOGY & E-COMMERCE p: 16 TRAINING p: 18 ARAB AIRPORTS p: 20 AN AVIATION MARKET IN FOCUS: UK p: 42 WORLD NEWS p: 44 Daily news on Issue 91 - Oct 2014

3 Foreword Despite security uncertainty in some areas in the Arab world, airlines of the region continue to find opportunities amidst challenges. In August, Gulf Air was able to achieve a major turnaround month for the airline realizing an almost break-even situation. flynas was able to nearly sell a quarter of a million seats in first two days of Year End Sale which ran during September. Emirates has recently announced plans to grow its African operations by over 40% in the coming decade. Qatar Airways received its first out of 10 A380s on order; while Royal Jordanian received its second Boeing 787 Dreamliner and is anticipating to receive 3 more 787s before year end as part of it fleet renewal program. Last month, Etihad Airways announced that all of its Boeing 777 fleet is now offering inflight connectivity. Emirates SkyCargo launched a new cargo service that includes a temperature controlled container for sensitive cargo. Such initiatives and services are being recognized worldwide for brining top services to the consumers. For example, the past month saw Etihad Airways being awarded for first class service in China and for its inflight experience at the Future Travel Experience Global event. Moreover, Gulf Air was recently honored at the APEX Passenger Choice Awards Ceremony in California and Qatar Airways was awarded by SimpliFlying for the Best Use of Emerging Platform in the social media field. Traffic figures of airports across the Arab world have reflected a busy summer season in the region. In August, passenger numbers at Bahrain International Airport rose by 25% while Queen Alia International Airport broke a record by welcoming more than 785,000 passengers, Dubai International also broke a record number by welcoming 6.6 million passengers, and a huge increase was witnessed in the number of passengers at Abu Dhabi International Airport with an increase of 24.8% in passenger numbers. In Morocco, the air traffic movement between Moroccan airports and African countries witnessed an increase of 21.02% during August Hamad International Airport (HIA) announced an increase in its monthly passenger statistics compared to those at the old Doha International Airport (DIA), whereby HIA saw an 11.36% passenger increase through its doors in July 2014 compared to July Finally, a major move in the UAE aviation sector was announced as HH Sheikh Mohammed bin Rashid Al Maktoum approved a USD 32 billion DWC airport expansion plan. Several expansion plans were announced by AACO members during the past month. Emirates A380 service was recently introduced on Dallas/Fort Worth route and will be shortly launched to Mauritius and Milan. flydubai has launched its flights to Almaty, Shymkent, and Moscow in September and is planning to launch new services to Dar es Salam, Kilimanjaro, and Zanzibar in October. Qatar Airways will replace its direct daily service to Phuket via Kuala Lumpur with a non-stop service and will launch a 5-weekly service to Cape Town. Etihad Airways announced its plan to increase Karachi flights from a daily to double daily service, and further to the huge increase in demand in Kuwait, Gulf Air will be launching a 2-weekly service between Kuwait and Larnaca. Arab airlines concluded several commercial agreements in the past month to further boost their operations. A free sale codeshare agreement was signed between MEA and Royal Jordanian while Emirates and the Republic of Angola announced a strategic airline Daily news on Issue 91 - Oct

4 partnership in respect of TAAG Airlines. Etihad Airways and Korean Air expanded their codeshare, and so did Emirates with Jetstar. At the UN latest Climate Summit, the aviation sector joined other business and government groups to announce a commitment on climate action between ICAO and the aviation industry represented by ATAG. The commitment outlines the areas on which the industry and ICAO partner to achieve the ultimate vision of a sustainable international aviation sector. In the US, the charter of the US EX-IM Bank was extended for further 9 months in late September. In Europe, the European Court of Justice ruled that flight delays will last until cabin door opens for passengers to disembark from the aircraft. aviation market links 402 cities worldwide, whereby the highest share of traffic of the UK is with Europe, although the London-New York city pair had the highest number of seats offered from the UK in August More details are available on Page 42. OVERALL TRAFFIC - ARAB WORLD We estimate international passenger numbers to, from, & within the Arab world to have grown by 10.8% in August 2014 compared to August 2013, which follows an increase of 2.9% in July 2014 compared to July % Monthly International Passenger Numbers' Change To, From and Within the Arab World Sep 13 to Aug14* compared to same month in previous year Globally, the issue of Ebola is taking the utmost attention of all relevant organizations with the UN declaring this outbreak as a threat to peace and security. Furthermore, ICAO received the preliminary report on MH17 accident investigation that include accredited representatives from Australia, Malaysia, the Russian Federation, Ukraine, the United Kingdom and the United States in the Netherlands-led MH17 Annex 13 accident investigation. 10% 5% 0% In September, AACO hosted 2 major forums in its drive to increase awareness and networking between its member airlines and with its partners. Royal Jordanian hosted AACO Business Technology Forum 2014 on September in Amman to discuss issues related to information technology, communications and the development of the work environment through the optimal use of technology. Moreover, AACO-IATA Aeropolitical Affaris Forum for MENA region was held also in Amman on 23 September. The forum discussed the latest aeropolitical issues that affect the whole industry in general, and the airlines of MENA region in particular. We focus on the UK aviation market in this issue. With a population of 64.1 million people, more than 185 million passengers used UK s airports in 2013, creating a ratio of 2.9:1 of passengers to population. The UK Daily news on Effect of Adha Cyclicality YoY Growth Source: AACO, IATA *Estimated In August 2014, AACO members increased the number of their offered seats to, from, and within the Arab world by 16.9%, while other airlines decreased their number of seats offered by (12%), leading to 8.5% year-on-year increase in the total number of seats offered. CLICK TO REGISTER FOR AACO AGM 12-Month Average Growth Effect of Ramadan Issue 91 - Oct

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 grown by 11.3% in August 2014 compared to August This follows an increase of 5.5% in July 2014 over July Passenger traffic within the Arab World Aug 14* over Aug 13 Within Arabian Peninsula 2.4% Within Near East 28.3% Within North Africa 31.4% Between Arabian Peninsula & Near East 14.8% Between the Near East and North Africa (1.8%) Between Arabian Peninsula & North Africa 14.9% Source: AACO, IATA 35% 30% 25% 20% 15% 10% 5% 0% Source: AACO, IATA International Passenger Numbers' Change Within the Arab World May14-Jul14 & Jun14-Aug14* compared to same period in previous year -5% within Arabian Pen May14-Jul14 Jun14-Aug14* within N East Passenger numbers within the Arab world reported a 7.6% increase between June 14 & August 14* compared to same period in the previous year. Daily news on within N Africa N East Arabian Pen N East N Africa N Africa Arabian Pen *Estimated *Estimated Passenger numbers within the Arab world reported a 7.7% growth between May 14 & July 14 compared to same period in the previous year. 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Source: AACO, IATA Monthly International Passenger Numbers' Change Within the Arab World Sep13 to Aug14* compared to same month in previous year Effect of Adha Cyclicality YoY Growth ARAB AIRLINES ECONOMICS 12-Month Average Growth Effect of Ramadan *Estimated Emirates Airline to grow African operations and network by 40% in coming decade: Emirates Airline is placing a strategic focus on Africa in the coming decade by increasing operations by over 40%, said Sir Tim Clark speaking at the Africa Global Business Forum Speaking at the conference around the theme of Connectivity and Trade - Supporting Dubai as the Hub to Africa, Sir Tim Clark, President of Emirates Airline said, Africa has been a great growth story for us. The Government of Dubai recognised the untapped potential of Africa early on and Emirates has been instrumental in supporting the region s growth. Today, Emirates fleet investment in Africa tops USD 7 billion with operating costs of over USD 2 billion. We will add around 10 destinations in the next decade and will continue our investment and commitment to introduce more frequencies to our existing points to provide critical links to emerging markets from Asia, the Middle East and Australia. Africa is still an underserved market and Emirates will continue to channel traffic through the Dubai hub, which has already become a key gateway for the African continent, continued Sir Clark. Dubai s geographical location makes it possible for African travellers to experience shorter travel times, which have been historically routed through European hubs like London, Paris and Frankfurt. Emirates currently operates 22 passenger and 6 dedicated freighter destinations to Africa. Source: Emirates News Agency (WAM) Issue 91 - Oct

7 Aviation in the Arab World Etihad Airways launches Arrivals Lounge at Abu Dhabi airport: Etihad Airways has opened a new Arrivals Lounge to enhance its premium services at Abu Dhabi International Airport. The Arrivals Lounge service is to be made available to First and Business Class flyers across all Etihad destinations and is strategically located for convenient and immediate access to customs. The Arrivals Lounge also provides facility for flyers to freshen-up after their flight, before leaving the airport. Suits and dresses will be steamed by housekeeping while guests shower, and will be returned within 10 minutes. Etihad said it will also provide a new serve at their Arrivals Lounge called SHAVE by Etihad, where guests will be offered a complimentary wet shave by fully-qualified barbers. Guests looking for a quiet and productive space to prepare for meetings can choose to operate on the onsite business facility, which features a large-screen Apple computer, printer, and complimentary broadband and wireless internet connections. flynas nearly sells a quarter of a million seats in first two days of Year End Sale : Within two days of launching its Year End Sale on 15 September, flynas has reported that it has sold nearly a quarter of a million seats on its domestic and international flights, as well as receiving a record number of hits on its website flynas.com. The Year End Sale which ran until 25 September makes deep cuts in ticket prices for flights on all flynas domestic and international routes starting on 12 October through to 31 December 2014, with discounted fares start from USD 2.94 for domestic flights and USD 29.6 for seats on international flights. Gulf Air s strong summer demand delivers positive results: Gulf Air recently released its August 2014 results which, following record summer travel demand, reflect a major turnaround month for the airline realizing an almost break-even situation with operating losses of only BHD 42,000 (USD 111,407) and a bottom line of only BHD 200,000 (USD 530,511) net loss. Alongside the dramatically enhanced financial results for the month of August, Gulf Air recorded a higher seat factor while also delivering 25% higher revenue than the year before. The results follow recent positive developments implemented by the airline which saw its network enhanced in June 2014 with the resumption of operations to Athens and permanent schedule increases on flights between Bahrain and Cairo (from 10 to 12 flights per week), since 23 July, and between Bahrain and Kuwait (from 40 to 42 flights per week), since 28 July 2014 all catering to high passenger demand. The airline welcomed the arrival of its first revamped A330 product in July featuring fully-flat bed seats in the airline s Falcon Gold Class, upgraded seats in Economy Class and a new in-flight-entertainment system throughout. EXPANSION ROUTES Airline From To Date Weekly Freq. Aircraft Type GF Kuwait Istanbul 2 Oct. 14 2x A320 Gulf Air launches Kuwait-Istanbul flights: Gulf Air started running twice weekly services between Kuwait City and the Turkish city of Istanbul in response to increased demand from the State of Kuwait. Gulf Air flights between Kuwait International Airport and Istanbul Atatürk Airport are operated by an A320 aircraft in a two-class configuration featuring 16 Falcon Gold seats and 120 Economy Class seats. Gulf Air is already operating direct flights between Bahrain and Kuwait and Bahrain and Istanbul. Gulf Air s existing Kuwait operations consist of 6 daily flights while it serves Istanbul with 5 weekly flights. CAPACITY AND DEMAND Passenger Air Services Within the Arab World - August SRS Analyzer AACO members increased the number of seats offered within the Arab world by 17% compared to August 2013 whereas other airlines decreased that number by (49.4%), leading to a 7.5% 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 25.2% and 9.9% respectively of the total available seats to, from, and within the Arab world in August Capacity* of Top 10 Carriers within the Arab World (Int l Operations) Airline ASKs (Million) Departures Seats EK 1, , ,067 MS 1, , ,343 SV 1, , ,360 QR , ,773 FZ , ,922 EY , ,242 G , ,472 RJ , ,840 XY , ,802 GF , ,552 Grand Total 9, ,483 7,186,869 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Daily news on Issue 91 - Oct

8 Aviation in the Arab World FLEET Qatar Airways takes delivery of its first A380: Qatar Airways took delivery of its first A380. With 10 Airbus A s on order, Qatar Airways is preparing to take delivery of four of them before the end of The airline will first introduce A380 services on one of its frequencies on the Doha London route from October, followed by Paris Charles De Gaulle shortly thereafter. The 517-seat aircraft is spread across twin decks in a tri-class configuration of 8 seats in First Class; 48 seats in Business Class and 461 in Economy Class. In the last quarter of 2014, it is expected that the airline will start receiving its first A350 XWB aircraft as the world s launch customer. Royal Jordanian receives its second Boeing 787 Dreamliner aircraft: Royal Jordanian Airlines received its second Boeing 787 Dreamliner, which will be named after H.R.H. Princess Iman bint Abdullah II. The new aircraft flew over Amman at low altitude enabling people to enjoy seeing its enormous size and long wings, before it landed at Queen Alia International Airport. The first 787 joined the Royal Jordanian fleet in late August 2014 and started operating regular services between Amman and London, in addition to serving other routes. Royal Jordanian will introduce three more Dreamliners before the end of 2014, bringing the number of this model to five by the end of The rest of the ordered 787s will join the Royal Jordanian fleet over the next few years. LAURELS Etihad Airways awarded for first class service in China: Etihad Airways has been named Airline of the Year - First Class at the 13th Annual China Travel & Meeting Industry Awards The prestigious honor was announced during a gala ceremony in Beijing, in recognition of the services provided to Etihad Airways First Class passengers. The airline currently serves the cities of Beijing, Chengdu and Shanghai in China, and will extend its local footprint with the launch of a new Hong Kong service in June The award has completed a global hat trick of accolades for Etihad Airways during the week, with the airline also named Aviation and Transport Company of the Year at the Gulf Business Industry Awards in Dubai, and Travel Trade Gazette s Airline of The Year in the UK. The China Travel & Meeting Industry Awards are jointly organized by Travel- Weekly Magazine and Events China. The prestigious awards are part of the Future Travel Experience Global event and celebrate outstanding efforts to improve the passenger experience, with this year s winners announced at a gala reception in Las Vegas, attended by senior travel executives from across the world. Etihad Airways won the Best Up In The Air Experience award, with a panel of independent experts praising the airline s remarkable hospitality, comfortable seats, extensive inflight entertainment and connectivity, and customer-centric dining services, including its Café Service in Economy Class, Dine on Demand in Business Class, and Inflight Chefs in First Class. Judges were also impressed by Etihad Airways Flying Nanny inflight child care assistance program, and hailed the innovative products that will debut onboard the airline s Airbus A380 and Boeing Dreamliner aircraft in December Gulf Air wins at 2014 Passenger Choice Awards: Gulf Air was recently honored at the Airline Passenger Experience Association (APEX) Passenger Choice Awards Ceremony in California, USA, winning the John White Publication Award for best inflight publication. The annual Passenger Choice Awards have rapidly distinguished themselves as the industry s foremost honor, as they represent the opinions of passengers. Comprising 13 individual categories, The Passenger Choice Awards were created by the Airline Passenger Experience Association (APEX) to give the flying public a voice to recognize airline excellence and innovation in the passenger experience. Qatar Airways receives award for excellence in social media the same week it surpasses five million fans on facebook: In the same week that Qatar Airways exceeded the 5,000,000 Facebook fan milestone, reaffirming its position as the second most liked global carrier, the five-star airline won an award for the Best Use of Emerging Platform for 2014 by leading aviation marketing consultancy, SimpliFlying. Qatar Airways leapt into second most liked airline on Facebook earlier in September, has surpassed more than 300,000 followers on Twitter and gained third place among airlines on Instagram, demonstrating an ever-increasing and successful online engagement with its fan base. In appreciation of these initiatives, Qatar Airways was nominated and then won Best Use of Emerging Platforms at the 5th Annual SimpliFlying Awards held recently in New York. To win the award, Qatar Airways needed to demonstrate how a particular social media platform Instagram and Pinterest were used to drive marketing goals for the airline. This is the second year in a row that the airline has been recognized by Simpli- Flying, having taken home Best Emerging Airline on Social Media in Etihad Airways honoured for inflight experience: Etihad Airways has been honoured at the Future Travel Experience Awards 2014 for providing a marketleading inflight experience. Daily news on Issue 91 - Oct

9 Aviation in the Arab World TECHNOLOGY & E-COMMERCE Royal Jordanian hosts AACO Business Technology Forum 2014 in Amman: Royal Jordanian Chairman of the Board/ President & CEO H.E. Eng. Nasser Lozi inaugurated the Arab Air Carriers Organization (AACO) Business Technology Forum 2014, held in Amman between 15 and 16 September 2014, and gathering 13 Arab airlines including Royal Jordanian Airlines. During his opening speech, H.E. Eng. Lozi expressed Royal Jordanian s satisfaction with hosting this forum in Jordan, stressing the importance of this meeting that assembles a selection of experts and professionals working for different Arab airlines to discuss issues related to information technology, communications and the development of the work environment in a manner that helps improve the Arab air transport industry and strengthen its competitive position globally through the optimal use of technology. He said that information technology and communications became a mainstay for the development of airlines performance through the application of modern systems to streamline the commercial and operational techniques and to simplify travel procedures, in addition to controlling cost, an issue of interest to all Arab and international airlines, mainly because of the sharp rise in fuel prices. H.E. Eng. Lozi praised AACO s constant efforts, ever since its establishment, to strengthen partnerships and cooperation among Arab carriers in various fields, and to provide an opportunity for their employees to get acquainted with the successful experiences of the civil aviation sector at Arab and global levels. At the opening session, AACO Secretary General Mr. Abdul Wahab Teffaha delivered a speech in which he stressed the organization s keenness to hold such meetings in light of the growing importance of the information technology sector in supporting the efforts of Arab airlines to find appropriate technical solutions that enable them to provide the best services for passengers, thus increasing the revenues of these carriers and reducing the traditional operational costs. Mr. Teffaha expressed appreciation for the historic role played by Royal Jordanian in the field. The company has been supporting AACO s efforts, by providing the necessary facilities to hold its meetings in Jordan, and through positive interaction with the organization s various committees. The two-day event tackled the information technology aspect, discussed by experts from the aviation sector representing the participating airlines. It also included international air transport professionals negotiating means of enhancing passengers satisfaction and simplifying travel procedures using the latest technologies. The forum also discussed measures to increase revenues and control cost, and applying optimal hi-tech solutions in regards to seat booking, ticket selling, airport services, air freight, and others. Participants working for different international IT and communications providers also participated in this forum, including Amadeus, SITA, Travelport, FARE- LOGIX, globalcollect and others. Emirates SkyCargo launches new temperature controlled container: Emirates SkyCargo has launched an internally developed and cost effective LD3 container that keeps temperature sensitive cargo cool when transported on the ground and in the air. Called the White Container, it s the latest addition to Emirates SkyCargo s Cool Chain portfolio, and has been designed specifically as an intermediate temperature control solution that is ideal for generic healthcare products and food perishables. The inside of the White Container is coated with thermal insulators, which prevents the transfer of outside heat into the container, and uses coolant trays allowing handlers to add or replenish dry ice or coolants without disturbing the packaging. It can be used for shipments requiring temperatures between 2 C - 8 C and 5 C - 25 C and is a reliable solution for time and temperature sensitive cargo that do not fall into the very high sensitive category. Etihad Airways deploys Amadeus EMD and Airline Ancillary Services to enhance offering to travelers: Amadeus announced that Etihad Airways has become the first in the region to deploy Amadeus Airline Ancillary Services (AAAS), enabling travel agencies using the Amadeus system to book the airline s Extra Legroom Seats for their customers. The agreement allows travel agents to offer the products already available directly from Etihad Airways, leading to enhanced customer service in an increasingly competitive environment. Etihad Airways has also signed an agreement with Amadeus to deploy Amadeus Electronic Miscellaneous Document (EMD), enabling travel agents to issue documents for all travel related services, including unbundled airline services. The solution provides travel agencies with a one-stop view of the customer s travel choices in a single PNR. Integrated into the travel agent s workflow, EMD is fully compliant with the latest industry mandates and has been endorsed by IATA. Both solutions have been launched in the UAE under a pilot program and will be deployed in other markets globally. Source: Amadeus All Etihad Airways Boeing 777 aircraft now offer inflight connectivity: Etihad Airways reached a major milestone with the deployment of mobile and internet connectivity across its entire fleet of 24 Boeing 777 passenger aircraft. This milestone comes only months before the airline s entire fleet of 89 passenger aircraft is connected, which will offer mobile and internet connectivity services on every aircraft. The passenger fleet includes 28 Airbus A320, 26 A330, 11 A340 and 24 Boeing 777 family aircraft. The full suite of inflight connectivity services on the fleet includes Wi-Fi, mobile services and Live TV. The services combine the Etihad Wi-Fly solution, powered by the Panasonic Avionics Global Communications Suite, and OnAir s inflight connectivity solution. Daily news on Issue 91 - Oct

10 Aviation in the Arab World Guests will be able to enjoy high-speed broadband services on Wi-Fi enabled devices including smartphones, tablets and laptops, allowing them to surf the internet, update social media, purchase gifts, upgrade seats, change travel plans and much more, all from the comfort of their seat. The mobile connectivity service can be accessed by guests using their mobile phones and smartphones to make and receive phone-calls, send and receive text messages and s, and use mobile data services. The Live TV onboard service allows guests to watch live news and major sporting events on seven popular television channels including BBC World News, CNBC, CNN, euronews, Japan s NHK World Premium, Sky News Arabia, and Sport 24. Cabin crew and flight deck operations can also utilize Wi-Fi connections to handle medical emergencies. The crew is empowered to manage inflight guest issues by phone or in real-time with the airline s ground teams based in Abu Dhabi. Connectivity is also paving the way for the airline to enhance the guest experience through increased onboard retail opportunities, with the added benefit of real-time credit card transactions. TRAINING Etihad Airways offers globally recognized finance and accounting development program for UAE nationals: Etihad Airways has welcomed the first class of Emirati trainees to its Graduate Finance Development Program, the latest scheme to be launched as part of the airline s growing UAE national development efforts. The program, launched in partnership with Phoenix Financial Training aim at developing and preparing UAE nationals for a rewarding career in financial accounting in the aviation industry. Spanning a period of two years, the program will consist of classroom and onthe-job training leading to a professional qualification from the Association of Chartered Certified Accountants (ACCA), the global body for professional accountants. The ACCA boasts around 162,000 members and 428,000 students in 173 countries and ACCA qualifications are recognized by key regulatory and education authorities around the world. The qualification will consist of exams, practical experience and a number of ethics modules. Gulf Air signs MOU with Tamkeen: Gulf Air and Tamkeen signed a Memorandum of Understanding to provide 40 Bahraini nationals with the opportunity to partake in on-the-job training within Gulf Air s Technical Division to gain aviation skills and experience. The Memorandum of Understanding sees Gulf Air and Tamkeen join forces to provide a tailored comprehensive programme of intensive on-the-job training for Bahraini nationals who wish to pursue careers in aviation as Aircraft Technicians or Engineers. Aircraft Technicians will undergo comprehensive on-the-job training for one year to qualify in the field while Engineers will participate in on-the-job training for two years. Under this agreement 22 candidates will join Gulf Air as Trainee Engineers and 18 as Trainee Aircraft Technicians. Oman Air emergency exercise hailed a success: Oman Air held an ultra-realistic and highly successful full-scale emergency exercise in Muscat on Sunday 17 August, involving all the airline s emergency facilities and teams, and observers have hailed it a major success. The exercise was coordinated from Oman Air s emergency response centre, tested every area of the airline s operations and required participants to function in the capacities that would be expected of them in a real aircraft accident. It also aimed to promote preparedness by rehearsing and testing Oman Air s Emergency Response Plan, conduct operational tests of facilities, equipment, IT hardware and software, and evaluate the internal and external mechanisms for delivering support to victims and their family members. A coaster stood in for the affected aircraft and dozens of volunteers were recruited to play the role of passengers. After the simulated accident they were taken to various designated assistance centres, including a Family Assistance Center, where family members were also provided with appropriate information and humanitarian assistance. Oman Air has invested significantly in emergency preparedness and this exercise was the latest in a series that have been carried out across the airline s network. As the carrier prepares to expand its current fleet of 30 aircraft with the delivery later this year of the first of 20 new planes, its ability to deal effectively with a crisis, however unlikely, was seen by Chief Executive Officer Mr. Paul Gregorowitsch as a priority. Mr Gregorowitsch, together with all the senior managers at Oman Air, took part in the exercise, visiting all the emergency centres and guiding team members in efficiently carrying out their roles. Further full-scale emergency exercises will be carried out in the future to ensure that the high standards achieved to date are maintained and strengthened further. GCAS named ICAO s Regional Training Centre of Excellence for the Middle East: The Gulf Centre for Aviation Studies (GCAS) continues to win accolades from leading industry bodies, as it announced that it has been selected as the Regional Training Centre of Excellence (RTCE) by the International Civil Aviation Organization (ICAO) for the Middle East region. As such, GCAS will represent ICAO in the Middle East in four separate categories: Aerodromes, Air Transport, Flight Safety and Safety Management. The ICAO Regional Training Centre of Excellence (RTCE) certificate was formally presented to GCAS at a ceremony hosted at ICAO headquarters in Montreal on 10 September. Source: ADAC Daily news on Issue 91 - Oct

11 Aviation in the Arab World ARAB AIRPORTS Top 20 Airports by International Seats Offered on Operations To, From, and Within the Arab World - August 2014 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 7,823,023 MCT 915,245 DOH 3,112,943 CMN 910,282 AUH 2,147,717 IST 863,441 CAI 1,831,705 SHJ 845,321 JED 1,794,856 LHR 765,421 KWI 1,427,149 CDG 719,517 RUH 1,255,329 TUN 690,268 BAH 1,072,176 ALG 616,568 AMM 941,106 ORY 565,802 BEY 927,263 DMM 560,215 Source: AACO, SRS Analyzer Bahrain International Airport witnesses a 25% rise in passenger movement In August 2014: The Ministry of Transportation (MoT) Civil Aviation Affairs Director of Air Transport Mrs. Ebtesam Al Shamlan said that the increase in August 2014 resulted in a total of 825,903 passengers travelling through the airport in August. Mrs. Al Shamlan stated that predictions indicate that the Airport will witness higher growth in passenger movements till the end of 2014, as a result of the Ministry s modernization programs that will be implemented in the Airport in the near future. Source: Ministry of Transport Bahrain Queen Alia International Airport records more than 700,000 passengers during August 2014: Airport International Group (AIG) announced that it has welcomed over 700,000 passengers during August This milestone, which is a first in QAIA history, is a continuation of the steady growth in passenger traffic (PAX) and aircraft movements (ACM) for the eighth consecutive month in During August 2014, PAX increased by 13.2% to reach 785,685 PAX while ACM rose by 12% to come in at 7,242 ACM, as opposed to the same month last year. Since the beginning of 2014 and up until August, year-to-date (YTD) PAX and ACM statistics surged by 12.1% and 9.1% respectively compared to August 2013, registering at 4,939,973 PAX and 49,626 ACM. Source: AIG Air traffic movement between Moroccan airports and African countries increases by 21.02% during August 2014: The air traffic movement between Moroccan airports and African countries witnessed an increase of 21.02% during August A report published by Morocco s Ministry of Equipment and Transport highlights that the number of African passengers using Moroccan airports increased from 96,511 passengers in August 2013 to 116,797 passengers in August Despite this increase, the air traffic share between Moroccan and other African airports does not overpass 6.2% from the total domestic and international traffic of Morocco, which reached 1,882,542 passengers during August Moreover, the year-to-date number of passengers between Moroccan airports and the rest of African airports witnessed a growth of more than 23% to reach 671,353 passengers in 2014 compared to 547,500 in This has contributed to the increase in the total number of passengers to, from, and within Morocco by 7.63% between January and August 2014 to reach 11,588,756 passengers. Number of passengers at Qatar s Hamad International Airport increases by more than 11% during July 2014: Hamad International Airport (HIA) announced an increase in its monthly passenger statistics compared to those at the old Doha International Airport (DIA). HIA saw an 11.36% passenger increase through its doors in July 2014 compared to July A total of 2,160,843 travellers departed, transferred and arrived into Qatar during July Cargo numbers have also increased at HIA with an additional 12.76% traffic in July. All cargo operations are now operating out of the new airport where the facility is fully automated, creating a seamless experience for both the cargo agents and customers. Abu Dhabi International Airport reports 24.8% increase in traffic for August 2014: Abu Dhabi Airports announced that passenger traffic at Abu Dhabi International Airport increased by 24.8% in the month of August. A total of 1,920,934 passengers passed through Abu Dhabi Airport in August 2014, compared with 1,538,632 in the same month of Aircraft movement in August 2014 was also on the rise reaching 13,395 movements, representing a 15.4% increase over the 11,608 movements that took place in August Cargo activity in August 2014 increased to 66,215 tons, a 9.9% increase when compared to August In August 2014, the top five routes from Abu Dhabi International Airport were Bangkok, London Heathrow, Doha, Manila, and Bahrain. The top five routes accounted for 15% of all traffic. Source: Abu Dhabi Airports Ajman Crown Prince approves USD 571 million airport plans: H.H. Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, approved the final plans and designs for the USD 571 million new Ajman International Airport project. Daily news on Issue 91 - Oct

12 Aviation in the Arab World The Crown Prince reviewed the plans of the airport which is being constructed in the Al Manama area of the emirate, reported news agency WAM. The plan includes arrival and departure lounges, hangars and cargo handling. Source: Arabian Business Dubai Airports welcomes HH Sheikh Mohammed s approval of USD 32 billion DWC airport expansion plan: Dubai Airports welcomed the announcement by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai endorsing the AED 120bn (USD 32 billion) expansion of Al Maktoum International at Dubai World Central (DWC) which will ultimately accommodate more than 200 million passengers a year. The development is anticipated to be the biggest airport project in the world and will be built in two phases. The first phase includes two satellite buildings with a collectively capacity of 120 million passengers annually, accommodate 100 A380 aircraft at any one time and will take between six and eight years to complete. The entire development will cover an area of 56 square kilometres. More than its size, the new airport s uniqueness lies in a radically new approach to ensure that the latest technology and efficient processes will cut the time spent completing travel formalities and reduce walking distances, enabling passengers to make fast and efficient connections between hundreds of destinations worldwide. The decision follows months of planning by the key stakeholders in the aviation sector, including Dubai Airports, Dubai Airports Engineering Projects, Emirates airline and dnata, to ensure that a design was selected that facilitates the future growth of Dubai s aviation industry. With passenger traffic expected to reach almost 100 million at Dubai International by the end of 2020, the further development of DWC will be a vital step towards providing the necessary facilities to accommodate passenger and cargo growth in the decades ahead and pave the way for Emirates to relocate their intercontinental hub operations to DWC by the mid-2020s. Source: Dubai Airports in During the first eight months of the year aircraft movements totaled 227,110, down (6.4%) from 242,571 movements recorded between January and August 2013, reflecting the impact of the runway closure period. Average passengers per movement during August increased to 219.7, up 5.2% from recorded during the same month in 2013, reflecting a move by airlines to larger aircraft. Monthly cargo volume also rebounded by 4.3%, reaching 192,902 tonnes in August compared to 184,877 tonnes during the same month in Year to date cargo reached 1,560,869 tonnes during the first eight months of the year, down (2.2%) from 1,596,772 tonnes recorded during the same period in Source: Dubai Airports Dubai International registers record 6.6 million passengers in August 2014: Passenger traffic at Dubai International bounced back from a three-month slump resulting from a major runway upgrade project which concluded on 20 July, to register a record 6.6 million passengers in August The monthly passenger traffic at Dubai International reached 6,648,058 in August 2014, up 10.8% compared to 5,999,375 recorded in the corresponding month in The hub returned to full operational capacity in August following a runway upgrade project that reduced the airport to a single runway for 80 days and cut capacity by 26%. The year to date passenger traffic as at the end of August totaled 46,479,919, an increase of 5.7% compared to the 43,971,839 passengers recorded during the first eight months of Aircraft movements during August totaled 31,214 movements, a marginal increase of 0.1% from the 31,198 recorded during the corresponding month Daily news on Issue 91 - Oct

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 grown by 10.7% in August 2014 compared to August 2013, after a growth of 2.1% in July 2014 over July Traffic to and from the Arab world Aug 14* over Aug 13 With the Americas 23.6% With Europe 13% With Mid Asia 4.2% With Far East and Australasia 14.5% With Sub Saharan Africa 4.5% Source: AACO, IATA *Estimated 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% May14-Jul14 Jun14-Aug14* Source: AACO, IATA Passenger Numbers' Change To and From the Arab World May14-Jul14& Jun14-Aug14* compared to same period in previous year With the Americas With Europe Passenger numbers to and from the Arab world market reported a 5.7% increase between June 14 & August 14* compared to the same period in previous year. Daily news on With Mid Asia With AustralAsia With Sub- Saharan Africa *Estimated Passenger numbers to and from the Arab world market reported a 4.9% growth between May 14 & July 14 compared to the same period in previous year. 14% 12% 10% 8% 6% 4% 2% 0% Monthly Passenger Numbers' Change To and From the Arab World Sep13 to Aug14* compared to same month in previous year Effect of Adha Cyclicality YoY Growth 12-Month Average Growth Effect of Ramadan Source: AACO, IATA *Estimated ROUTES Airline From To Date Weekly Freq. Aircraft type Abuja unchanged A to B777-1 Oct ER Dallas / Fort Worth unchanged B to A380 EK Dubai Mauritius unchanged B777 to A380 (7x) 26 Oct. 14 Dar es Salam 7x to 12x A Milan 1 Dec. 14 unchanged B to A380 (7x) EY Abu Dhabi Karachi 18 Nov. 14 7x to 14x A320 Almaty 16 Sep. 14 4x Shymkent 19 Sep. 14 2x FZ Dubai Moscow 23 Sep. 14 Dar es Salam 16 Oct. 14 7x B Zanzibar 19 Oct. 14 Kilimanjaro 17 Oct. 14 2x GF Kuwait Larnaca 26 Oct. 14 2x A320-ER QR Doha Phuket 26 Oct. 14 7x A330 Cape Town Brussels 3 Nov. 14 5x B787 QR Cargo Doha Shanghai 2 Oct. 14 3x B777F (2x via Entebbe & 2x via Nairobi) 1 Oct. 14 4x A330F Kochi Dubai Mumbai Doha 9W Kohzikode Doha 5 Nov. 14 7x B Thiruvananthapuram Doha 5J Manila Riyadh 1 Oct. 14 3x N/A Issue 91 - Oct

15 Global Arab Aviation Emirates upgrades aircraft on the newly launched Abuja service: Only two months after launching its operations to Abuja, Emirates has upgraded the route s operating aircraft to a Boeing ER from 1 October Emirates launched a daily service to Abuja - its second Nigerian gateway and 22nd passenger destination in Africa - on 1 August utilizing the Airbus A The new aircraft will continue to operate daily to Nigeria s capital and offer 274 seats in the three cabins; 12 lie-flat seats in First Class, 42 reclining seats in Business Class, and 220 seats in Economy Class. Emirates lands A380 in Dallas/Fort Worth: Emirates has commenced its A380 service from Dubai to Dallas/Fort Worth International Airport (D/FW). Since it launched a non-stop connection between Dubai and Dallas/Fort Worth in February 2012, Emirates has transported more than 460,000 passengers between the two cities. The inaugural A380 flight departed from Terminal 3, Dubai International Airport on 1 October and was welcomed in Dallas by a VIP delegation from both cities and the airport. Dallas/Fort Worth is Emirates 31st global A380 destination and its third in the USA, joining New York and Los Angeles. Emirates A380 network in the US will further expand in December when San Francisco and Houston become the 32nd and 33rd points on the airline s network on 1 and 3 December respectively. Emirates second daily A380 service to Mauritius gets an earlier start: Emirates will launch its second daily A380 service to Mauritius on 26 October 2014, instead of 1st December as initially planned. This second A380 service, which will operate as flight EK703/704, replaces the existing Boeing 777 operation and will have a capacity of 489 passengers including 14 First Class Private Suites, 76 lie-flat beds in Business Class and 399 seats in Economy Class. Emirates to launch second service to Dar es Salaam: Emirates will start a second service to Dar es Salam from 26 October The new five times weekly service will complement Emirates existing daily operation. The new flight will be operated with an Emirates A , in a three class configuration with 12 seats in First Class, 42 in Business Class and 183 in Economy Class, adding a total of 2,370 seats and up to 170 tons of cargo capacity a week on the route. Emirates to grow services to Milan with introduction of A380: Emirates will grow its services to and from Milan with the upgrade of one of its daily Boeing services to an A380 from 1 December. This will be the first ever permanently scheduled A380 service to Milan Malpensa Airport. Bringing the A380 onto one of Emirates three daily Milan services will mean an increase in capacity of almost 38%. The triple-daily service connecting Dubai to Milan is currently operated with a mix of Boeing and ER aircraft. One of these services continues onward to New York. Etihad Airways to double frequency to Karachi: Etihad Airways will add a new daily flight between Abu Dhabi and Karachi to offer a double daily service from 18 November The additional service will be operated by a two-class Airbus A320 aircraft configured to carry 136 passengers, with 16 seats in Business Class and 120 seats in Economy Class. flydubai expands its network in Central Asia with flights to Almaty and Shymkent: flydubai s inaugural flight to Almaty landed on 16 September at Almaty International Airport and was met by a traditional water cannon salute. This marked the start of the airline s operations to Kazakhstan, which will serve Almaty with 4 weekly flights. Moreover, flydubai started operating two weekly flights between Dubai and Shymkent on 19 September Moscow welcomes first flydubai flight: flydubai s inaugural flight to Moscow landed on 23 September at Vnukovo International Airport. With the launch of direct daily flights to Moscow, flydubai now serves nine destinations in Russia. In addition the airline offers Business Class and cargo services on each of its Russian routes. flydubai announces three routes in Tanzania: flydubai announced the launch of flights to Dar es Salaam, Zanzibar and Kilimanjaro in Tanzania. Flights to the East African country will commence in October, expanding the airline s network in Africa to 12 destinations. flydubai recently announced the launch of flights to Bujumbura in Burundi, Entebbe in Uganda and Kigali in Rwanda and flights to these destinations commenced at the end of September. flydubai will operate daily flights between Dar es Salaam and Dubai starting from 16 October flydubai will operate two flights a week between Kilimanjaro and Dubai via Dar Es Salaam starting from 17 October flydubai will operate two flights a week between Zanzibar and Dubai via Dar Es Salaam starting from 19 October Gulf Air announces upcoming Kuwait-Larnaca flights: Following its recent commencement of direct services between Kuwait City and Istanbul, Gulf Air has announced the upcoming launch of twice weekly services between Kuwait City and the Cypriot city of Larnaca in response to increased demand from the State of Kuwait. The airline will offer direct, twice weekly connections between Kuwait and Cyprus starting from 26 October. Bahrain-based passengers will have the choice of thrice weekly Bahrain-Larnaca operations and convenient six daily flights between Kuwait and Bahrain Daily news on Issue 91 - Oct

16 Global Arab Aviation providing connections to the airline s newest Kuwait-Larnaca service. Gulf Air flights between Kuwait International Airport and Larnaca International Airport will be operated by an A320-ER aircraft in a two-class configuration of 14 Falcon Gold seats and 96 seats in Economy. Qatar Airways to start non-stop services from Doha to Phuket: Qatar Airways will boost services to Thailand with the introduction of non-stop flights to Phuket, effective 26 October The airline currently serves the Doha Phuket route daily via a linked service through Kuala Lumpur. The direct flights to Phuket will be operated with an Airbus A330 in a two class-configuration of 24 seats in Business Class and 236 in Economy. The carrier now serves Bangkok three-times-daily and will increase that to four-times-daily from 16 December Qatar Airways to launch non-stop flights to Cape Town: Qatar Airways has announced that commencing 3 November 2014, the airline will operate a new non-stop five-times-weekly service between Doha and Cape Town, South Africa. Cape Town is currently served three-times-a-week via Johannesburg. The route will be operated by Qatar Airways Boeing 787 Dreamliner aircraft that features 22 seats in Business Class and 232 seats in Economy Class. Qatar Airways Cargo to launch two new freighter routes to Shanghai and Brussels: Qatar Airways Cargo launched two new freighter destinations, Brussels in Belgium and Shanghai in China. On 1 October Brussels started being served four times weekly by the Airbus A330F freighter. The freighter will fly via Entebbe to Brussels twice a week and via Nairobi to Brussels also twice a week. A three-times weekly non-stop Boeing 777 freighter service started operating on the Doha-Shanghai-Doha route as of 2 October. Moreover, an additional B777F frequency was added on the Doha Hong Kong route on 1 October, bringing up the weekly frequencies to 14. Jet Airways announces enhanced connectivity to the Gulf with the launch of four international flights from Kochi, Kozhikode & Thiruvananthapuram: Jet Airways will introduce a new direct flight from Kochi to Dubai effective 5 November This new service from Kochi to Dubai will complement the currently operated daily direct flights from Kochi to Abu Dhabi, Dammam, Doha, Kuwait (via Abu Dhabi), Muscat and Sharjah. Jet Airways will also launch a second frequency between Mumbai and Doha effective 5 November 2014 as well as a new daily direct flight from Kohzikode and Thiruvananthapuram to Doha effective 1 December Dubai is currently linked with four flights from Mumbai and two services from Delhi. Jet Airways will also commence an additional daily service between Mumbai and Dubai (5th daily service) by 14 October The airline will deploy its next - generation Boeing aircraft, offering twin class configuration of Premiere and Economy class. Source: Jet Airways Cebu Pacific starts Riyadh service: Cebu Pacific launched thrice weekly nonstop flights to Riyadh in the Kingdom of Saudi Arabia, from 1 October It will be the only low-cost carrier flying between the Philippines and the Kingdom of Saudi Arabia. Source: Cebu Pacific CAPACITY AND DEMAND Passenger Air Services to & from the Arab World - Aug SRS Analyzer AACO members increased the number of seats offered to and from the Arab world by 16.8%, while other airlines decreased the number by (4.2%) which resulted in a growth of 9% 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 30.9% With Mid Asia 17.1% With Australasia 9.6% With the Americas 2.9% With Sub Saharan Africa 4.5% Source: AACO, SRS Analyzer Capacity* of Top 10 Carriers (Arab World & Europe) Airline ASKs (Million) Departures Seats EK 7, ,666 1,533,790 QR 2, , ,313 EY 1, , ,644 TK 1, , ,673 AT , ,562 BA ,252 LH , ,895 MS , ,600 SV ,280 AF , ,344 Grand Total 26, ,868 8,784,460 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Daily news on Issue 91 - Oct

17 Global Arab Aviation Capacity* of Top 10 Carriers (Arab World & Australasia) Airline ASKs (Million) Departures Seats EK 7, ,665 1,117,718 QR 3, , ,772 EY 2, , ,250 SV ,310 QF ,800 CX ,530 MS ,113 JT ,752 PR ,012 2P ,102 Grand Total 19, ,060 2,737,099 * 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, , ,730 AT ,521 QR ,904 MS ,736 EY ,189 ET ,619 KQ ,771 SV ,150 AH ,248 TU ,524 Grand Total 5, ,965 1,266,954 * 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, ,985 1,007,846 QR 1, , ,136 SV ,525 9W , ,972 G , ,078 AI , ,470 EY , ,025 FZ , ,298 IX , ,340 WY , ,674 Grand Total 12, ,249 4,853,271 * 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 3, ,950 QR 1, ,350 EY 1, ,886 SV ,826 RJ ,068 AT ,224 MS ,216 UA ,656 9W ,924 DL ,678 Grand Total 9, , ,288 * Includes scheduled capacity and not actual flown capacity Source: AACO, SRS Analyzer Daily news on Issue 91 - Oct

18 Global Arab Aviation COLLABORATION Emirates and Jetstar expand codeshare on more routes: Emirates and Jetstar have announced the expansion of their codeshare and frequent flyer relationship, to 30 routes across the Asia Pacific region providing more choice to Emirates customers. From 26 October 2014*, Emirates will grow its codeshare on Jetstar to include Jetstar Airways services between Melbourne and Ayers Rock (Uluru), Christchurch to Wellington in New Zealand and three new destinations in south-east Asia from Jetstar Asia s hub in Singapore. The new codeshare services from Singapore will connect Emirates passengers to Penang in Malaysia, Yangon in Myanmar and Medan in Indonesia. The additional destinations complement the current 25 routes announced in February Effective immediately, Skywards members can now also earn Skywards Miles when they book economy Starter Plus, economy Starter Max or Business Max fares on international routes with Jetstar Airways, Jetstar Asia, Jetstar Japan and Valuair, as well as domestic routes within Australia and New Zealand if they connect to an international flight. All Emirates passengers on Jetstar flights will receive boarding passes on check-in at their first international departure point for connecting international service. Members must enter their Emirates Skywards membership number during the booking process and Skywards Miles will be awarded within two weeks of completing the journey. *Subject to government approval Emirates and the Republic of Angola announce strategic airline partnership in respect of TAAG Linhas Aéreas De Angola: Emirates and the Republic of Angola, in its capacity as the majority shareholder of TAAG Linhas Aéreas De Angola, announced the signing of a Management Concession Agreement* which will see Emirates take a role in the management of TAAG. The agreement lays the foundation for both airlines to jointly leverage commercial opportunities in Africa and beyond. The ten year Management Concession Agreement* was signed by H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group and H.E. Augusto da Silva Tomás, the Minister of Transport for Government of Angola. This initiative is to further the Republic of Angola s vision to create a world class Angolan carrier with the support of Emirates. As part of the agreement*, Emirates will work closely with the Angolan government and TAAG Linhas Aéreas De Angola to formulate and implement a business plan, provide management support and devise fleet and route network strategies, whilst bringing synergy through the complementary networks. Emirates will not contribute equity under this agreement* but appoint four senior managers to work for TAAG Linhas Aéreas De Angola. Both airlines will also cooperate across a wide range of areas including bilateral code-sharing on cargo and passenger services, participation of customers in both airlines frequent flyer programmes and passenger and cargo handling. Emirates has also committed to allocate its resources to staff and crew training on best-in-class business and operational processes and systems. TAAG Linhas Aéreas De Angola will additionally explore business opportunities with dnata, in particular its passenger and cargo handling, flight catering and travel services. Emirates operates over 160 flights across the continent each week, serving 22 passenger destinations today: Abidjan, Accra, Addis Ababa, Cairo, Cape Town, Casablanca, Dakar, Dar el Salaam, Durban, Entebbe, Johannesburg, Khartoum, Lagos, Luanda, Nairobi, Tripoli, Tunis, Harare, Lusaka, Conakry, Algiers and Abuja Emirates currently flies daily to Luanda, Angola s capital. * The agreement will only take effect after a number of conditions have been satisfied, including the receipt of various government and regulatory approvals. Etihad Airways and Korean Air expand codeshare: Etihad Airways and Korean Air expanded their codeshare coverage in September. EY code is now being placed on additional Korean Air s flights between each of Seoul Incheon and Fukuoka, Kagoshima, Nagoya, Osaka Kansai, and Sapporo. in Japan. In return, KE code is being placed on Etihad Airways services to Athens and Riyadh. Qatar Airways and Vueling sign interline agreement to boost flight options at Rome and Barcelona airports: Qatar Airways and Vueling have signed an interline agreement that will enable Qatar s airline to increase the number of passengers to Europe, while strengthening Vueling s hubs in Rome and Barcelona. The agreement, which came into effect on 1 September 2014, will also improve trans-european traffic by providing passengers with an even greater range of options for long-haul connections. Barcelona s El Prat Airport is Vueling s main hub, where the company holds %38 market share, and from which the airline offers direct flights to 121 destinations and up to 11,000 connections across Europe, Africa and the Middle East. Additionally, Vueling currently offers 40 direct routes from Fiumicino Airport in Rome, the company s second operational hub, as well as 850 possible connections to destinations across Europe, Africa and the Middle East. This agreement follows the codeshare set up with British Airways, a fellow member of oneworld along with Qatar Airways, in June. Qatar Airways which has been operating in Spain since 2005, offers 10 flights per week to Barcelona, and seven flights per week to Madrid. The airline also flies to three destinations in Italy, with a double-daily service to both Rome and Milan, and daily flights to Venice. Daily news on Issue 91 - Oct

19 Aviation in the Arab World Royal Jordanian and Middle East Airlines enter a new free sale codeshare agreement: Royal Jordanian and Middle East Airlines- Air Liban concluded a new bilateral free sale codeshare agreement that started being implemented as of mid-september. Under the terms of the agreement, Royal Jordanian will place its marketing carrier code on Middle East Airlines-operated flights between Beirut and Amman as the marketing carrier. Also, Middle East Airlines will place its marketing carrier code on Royal Jordanian-operated flights between Amman and Beirut as the marketing carrier. Starting 22 September, the Royal Jordanian passengers became able to choose among three more daily flights between Amman and Beirut operated by Middle East Airlines, in addition to the Royal Jordanian existing daily flights to Beirut. MEA passengers can also add to their choice the two code share Royal Jordanian flights. H.E. Eng. Nasser Lozi, Chairman of the Board / President & CEO of Royal Jordanian, said that as of 25 October 2014, Royal Jordanian will cancel two daily flights out of four between Amman and Beirut, as part of the airline s plan to restructure its route network. ENVIRONMENT CDM pipeline update: CDM pipeline update 1 Oct Status # of Projects At Validation 1122 Request for Registration 9 Request for Review 1 Correction Requested 0 Under Review 0 Total in Registration Process 10 Source: UNEP RisØ Status # of Projects Withdrawn 63 Rejected by EB 270 Validation Negative by DOE 267 Validation Terminated by DOE 1,888 Registered, no issuance of CERs 4,905 Registered, CER issued 2,657 Total Registered 7,562 Settlement Price of ECX EUA and CER Futures on 6 October 2014 Dec-14 Dec-15 Dec-16 Dec-17 EUAs CERs Source: IntercontinentalExchange Collaborative aviation climate action takes flight: The aviation sector joined other business and government groups at the United Nations Climate Summit to announce a commitment on climate action between the International Civil Aviation Organization (ICAO), a United Nations specialized agency, and the aviation industry represented by the Air Transport Action Group (ATAG). This partnership expands on work already being undertaken across the air transport sector to reduce emissions from this important global industry. The commitment says: Air transport connects the world. It is a vital engine of global economic growth supporting over 58 million jobs and USD 2.4 trillion in gross domestic product. In order that all parts of the world are able to benefit from the rapid connectivity advantages of air transport, the sector has committed itself to a pathway of sustainable growth encompassing all areas of the commercial industry and governments working in partnership. The agreement was co-signed by Airports Council International, Civil Air Navigation Services Organization, International Air Transport Association, International Coordinating Council of Aerospace Industries Associations and International Business Aviation Council representing the various components of the international air transport industry. The statement outlines the areas on which the industry and ICAO partner to achieve the ultimate vision of a sustainable international aviation sector: supporting the development of sustainable alternative fuels for aviation; continuing the deployment of new technology aircraft and operational improvements; accelerating the transformation of global air traffic management performance; working with partners to develop a global CO2 standard for new aircraft; working with partners to design and implement a global market-based measure for international aviation; and working together to further efforts for capacity building in Member States across the world. The action statement and associated documents can be found on this special web page. Source: ATAG Carbon management standard for airports takes off in North America: A ceremony took place at the 2014 Annual Conference & Exhibition of ACI-North America (ACI-NA) in Atlanta, in the presence of more than 1,600 aviation experts, to mark the launch of Airport Carbon Accreditation in North America, in cooperation with ACI-NA. The institutionally endorsed programme independently assesses and recognises airports efforts to manage and reduce their CO2 emissions. It certifies airports at 4 different levels of accreditation (Mapping, Reduction, Optimisation and Neutrality). In the past twelve months, Airport Carbon Accredited status has been earned by a total of 107 airports in Europe, Africa and Asia-Pacific. The launch ceremony also saw Seattle-Tacoma International Airport become the very first airport in North America to achieve certification within the programme. Airport Carbon Accreditation is now live in 5 continents and the 108 airports certified by the programme welcome 24.2% of global passenger traffic annually. Source: ACI Europe Daily news on Issue 91 - Oct

20 Global Arab Aviation REGULATORY TONE AACO and IATA conclude their Aeropolitical Affairs Forum: AACO and IATA held their annual Aeropolitical Affairs Forum Partnering to Sustain the Value of Air Transport in the Middle East & North Africa on 23 September in Amman, under the kind sponsorship of Royal Jordanian, Airbus, AIG, and citibank. The forum gathered airlines commercial directors, aeropolitical executives, and relevant airline representatives in addition to air transport managers and other aviation experts from Arab Civil Aviation Authorities. A number of interested industry partners, aviation legal firms and industry organizations also attended this forum. The forum discussed the outlook of Arab air transport with an overview on the value of air transport in the MENA region and threats and opportunities in the international economic environment. An aeropolitical briefing was also presented during the forum and the participants had the opportunity to participate in working session with the aim of identifying the MENA industry priorities for Two panel discussions were held; the first panel discussed the relations between MENA region and the EU; whereas the second panel discussed ICAO work on global issues and its preparations for the upcoming Assembly. Royal Jordanian obtains RA3 and ACC3 EU Certification for air cargo and mail: Royal Jordanian Airlines has secured 5-year RA3 and ACC3 EU certifications for its cargo operations from Amman to any EU country, starting May The security manual defines the standards and security measures implemented to meet regulatory requirements. The basic principle of these certifications is to ensure that all cargo or mail flying into the EU is screened or comes from a secure supply chain. Ex-Im Bank charter extended: Late September 2014, the Congress has decided to extend the EX-IM bank charter for 9 months to last till June 2015; although major US companies, such as Boeing, were calling for a long-term reauthorization of the bank. The Congress now has until June 2015 to decide whether to renew the bank s charter or let it expire. The bank might also be reauthorized with a precondition on conducting some reforms, as being lobbied by certain US entities. Commission adopts a package of decisions regarding public support to airports and airlines in Belgium, Germany, Italy and Sweden: The European Commission has adopted seven decisions following in-depth investigations concerning public support granted to airports and airlines in Belgium, Germany, Italy and Sweden. In particular, the Commission has concluded that the airports of Zweibrücken (Germany) and Charleroi (Belgium) received state aid which was incompatible with EU rules and must now be recovered. In addition, the Commission has opened an in-depth investigation concerning state financial support granted to certain airlines flying from Bruxelles-National airport (Zaventem). The decisions are based on the Commission s new guidelines on state aid to airports and airlines adopted in February 2014 as part of its State Aid Modernisation (SAM) strategy. The Commission has adopted decisions on two types of measures: financial support granted to airports; and financial conditions offered by airport managers to certain airlines for their operations at the airports in question. Source: European Commission ECJ rules airlines can charge for checked baggage: The European Court of Justice has ruled that airlines are within their rights to charge passengers for checked luggage. The decision overturns a Spanish ban that runs contrary to European Union law. The European Court of Justice (ECJ) ruled that checkedin baggage cannot be considered to be compulsory or necessary for carrying passengers. In doing so, the ECJ upheld a challenge from Vueling Airlines against a Spanish law that made it illegal for carriers to charge additional fees. The original case was brought by Spanish passenger Arias Villegas, who paid euros for four return tickets between La Coruna and Amsterdam in 2010, but was charged a further 40 euros when she checked in two bags online. A Spanish consumer protection authority fined Vueling Airlines 3,000 euros. However, a Spanish court referred the case to the ECJ to determine whether the case was in line with EU laws on pricing freedom. The court did note, however, that airlines may not charge for hand luggage that falls within the proper size limits because they were a necessary item. Any additional fees must be communicated in a clear, transparent and unambiguous way at the start of any booking process, the court added. The case will now return to the Spanish court, which must reach a judgment based on the ECJ s ruling. Source: Deutsche Welle ECJ rules that flight delays last until cabin doors open: The European Court of Justice ruled on 4 September that a flight has not officially arrived at its destination when it lands, but when the passengers begin to disembark. The ruling will affect compensation claims paid out by airlines. The case was brought by a passenger who took a flight from Salzburg to Cologne with the airline Germanwings. The plane took off three hours and 10 minutes after its scheduled time, but the aircraft landed on the runway at Cologne/Bonn airport with a delay of two hours and 58 minutes. However, it took another five minutes for the plane to taxi to a gate and for the doors to be opened. The court ruled that the time spent between landing and disembarking represents an inconvenience to passengers. Passengers remain confined in an enclosed space, under the instructions and control of the air carrier, in which, for technical and safety reasons, their possibilities of communicating with the outside world are considerably restricted, the court said. Daily news on Issue 91 - Oct

21 Aviation in the Arab World In such circumstances, passengers are unable to carry on, without interruption, their personal, domestic, social or business activities, the court said. It is only when the passengers are permitted to leave the aircraft and the order is given to that effect to open the doors of the aircraft that the passengers cease to be subject to those constraints and may in principle resume their normal activities. The Austrian court will now deliver a final ruling. Source: European Voice EASA allows electronic devices to remain on and connected throughout the flight: EASA announced that it allows European airlines to permit use of mobile phones following the aircraft landing. Airlines can also allow the use of portable electronic devices (PEDs) throughout the flight, after a safety assessment process. As a result, passengers will be able to use their PEDs just like in any other mode of transport: throughout the trip. The new guidance allows airlines to permit PEDs to stay switched on, without the need to be in Airplane Mode. This is the latest regulatory step towards enabling the ability to offer gate-to-gate telecommunication or WiFi services. PEDs include any kind of electronic device brought on board the aircraft by a passenger such as smartphone, tablet, laptop, e-reader, MP3 player, etc. It is up to each airline to decide to allow the use of PEDs. In order to do this, the airline will have to go through an assessment process, ensuring aircraft systems are not affected in any way by the transmission signals from the PEDs. For this reason, there may be differences among airlines whether and when PEDs can be used. Passengers must at all times follow the airline crew instructions. Safety always comes first onboard of an aircraft. This measure follows the initial action from EASA in December 2013, toward permitting the use of PEDs through almost all stages of flight, when the Airplane Mode not transmitting was allowed. Source: EASA After the vote, the U.S. Travel Association said that while the measure was an improvement, user fees should only go toward TSA projects that directly benefit passengers instead of anything unrelated to the agency. Source: The Hill FAA proposes USD 60,000 civil penalty Against American Eagle Airlines: The US DOT Federal Aviation Administration (FAA) proposed a USD 60,000 civil penalty against American Eagle Airlines, Inc. for failing to follow approved aircraft de-icing procedures for certain flights out of Sioux Falls, S.D. American Eagle is scheduled to meet with the FAA in October to discuss the case. Source: FAA FAA proposes USD 195,000 civil penalty against British Airways, PLC: The US DOT FAA proposed a USD 195,000 civil penalty against British Airways, PLC, for allegedly violating Hazardous Materials Regulations. British Airways has requested to meet with the FAA to discuss the case. Source: FAA US House passes bill to limit TSA airline security fees: The House passed legislation to limit airline passenger security fees imposed by the Transportation Security Administration. Passed 423-0, the measure would only allow the TSA to charge USD 5.60 per one-way trip and USD per round trip. Rep. Richard Hudson (R-N.C.), the bill s sponsor, said it was necessary because the TSA had misinterpreted the increase on airline security fees outlined by the 2013 budget agreement by charging more than twice the amount for round trips as for one-way trips. H.R looks to correct this overreach and save American taxpayers from having to shell out millions of dollars in extra fees, Hudson said. Reducing the burden on airline passengers benefits everyone from helping families save money when taking a vacation to cutting costs for our small businesses whose employees travel for work. Daily news on Issue 91 - Oct

22 Global Arab Aviation AN AVIATION MARKET IN FOCUS: UK United Kingdom Population: 64.1 million Land area: 243,610 km 2 Number of passengers in 2013: more than 185 million passengers were handled by UK airports Number of commercial airports: more than 70 commercial airports British-based airlines: More than 40 airlines including British Airways, Virgin Atlantic, BMI Regional, Flybe, EasyJet and Ryanair Aviation Policy: - The UK Civil Aviation Authority ( is the statutory authority that oversees and regulates civil aviation in the United Kingdom. - Other than agreements between the EU and 3rd countries which apply to the UK, bilateral agreements still govern the relations between the UK and the rest of states. 5.3% 2.6% Traffic Share between the UK and Other Regions 10.5% in % Arab World 3.5% Europe (includes domestic traffic) Mid Asia 75.9% For international passengers and based on O&D Source: AACO, IATA UK aviation market links 402 cities worldwide (click on image for detailed view) Source: AACO, FlightMaps Analytics August 2014 Daily news on Australasia Americas Sub Sahrain Africa 9% Alliances Share of Seat Capacity Serving 5% UK's Market 23% 63% Unaligned Star Alliance oneworld Sky Team Source: AACO, FlightMaps Analytics UK s domestic aviation in August 2014 Source: AACO, FlightMaps Analytics The top 10 city pairs on the right accounted for 60.25% of the total seat capacity scheduled within the UK in August Airline Seat Capacity British Airways 4,743,392 easyjet 4,137,953 Ryanair 3,650,136 FlyBE 1,025,523 Monarch Airlines 1,017,063 Jet2 980,957 Virgin Atlantic 736,312 Aer Lingus 585,354 Lufthansa 490,178 KLM 459,435 Source: AACO, FlightMaps Analytics Top 10 routes by seat capacity to and from the UK in August 2014 Around 3.14 million seats were offered on the top 10 city pairs to and from the UK in August 2014, representing a 12.95% of the total capacity offered to and from the UK. Route Seat Capacity* Edinburgh - London 324,070 Belfast - London 213,280 Glasgow - London 207,046 Aberdeen - London 137,098 London - Manchester 105,132 London - New Castle 65,130 Belfast - Manchester 53,944 Belfast - Glasgow 47,422 Belfast - Birmingham 47,148 Belfast - Liverpool 44,988 Source: AACO, FlightMaps Analytics * This includes seat capacity in both directions Top 10 airlines operating by seat capacity to, from and within the UK in August 2014 The top 10 airlines on the left offered almost million seats (79.86% of the scheduled seat capacity) to and from the UK in August Route Seat Capacity* London - New York 503,486 Dublin - London 436,773 Amsterdam - London 376,968 Dubai - London 358,794 Barcelona - London 285,650 London - Madrid 257,668 London - Milan 235,833 Frankfurt - London 233,772 London - Malaga 229,797 London - Rome 226,172 Source: AACO, FlightMaps Analytics * This includes seat capacity in both directions Issue 91 - Oct

23 Global Arab Aviation WORLD NEWS UN announces mission to combat Ebola, declares outbreak threat to peace and security : The Security Council, in its first emergency meeting on a public health crisis, declared the Ebola outbreak in West Africa a threat to peace and security, as Secretary-General Ban Ki-moon announced that the United Nations will deploy a new emergency health mission to combat one of most horrific diseases on the planet that has shattered the lives of millions. Expressing concern about the detrimental effect of the isolation of Ebola-hit Liberia, Guinea and Sierra Leone as a result of trade and travel restrictions imposed on the affected countries, the Council called on Member States, including of the region, to such restrictions imposed as a result of the outbreak, and to facilitate the delivery of assistance, including qualified, specialized and trained personnel and supplies to the affected countries. Both the UN Secretary-General and the President of the Security Council for the month of September, US Ambassador Samantha Power, said only twice before has the Security Council met to discuss the security implications of a public health issue both times on the AIDS epidemic. The meeting was the first emergency meeting on a public health issue, according to the Security Council President. The Secretary-General, as well as the Security Council in its resolution, expressed concern about the travel restrictions imposed by major airlines and shipping companies to the affected countries. Source: UN ICAO receives preliminary report on MH17 accident investigation: The Dutch Safety Board submitted its MH17 accident investigation Preliminary Report to the International Civil Aviation Organization (ICAO), in accordance with the provisions contained in Annex 13 Aircraft Accident and Incident Investigation, to the Convention on International Civil Aviation. Australia, Malaysia, the Russian Federation, Ukraine, the United Kingdom and the United States are participating in the Netherlands-led MH17 Annex 13 accident investigation, through Accredited Representatives. Shortly after the MH17 accident, ICAO convened a special Task Force on Risks to Civil Aviation arising from Conflict Zones (TF RCZ), which has met twice todate. The TF RCZ will be meeting again in December for its next round of talks, meanwhile next month the ICAO Council will be considering the group s preliminary findings. Source: ICAO Singapore Airlines and Air New Zealand alliance to launch on 6 January: Singapore Airlines and Air New Zealand have confirmed 6 January 2015 as the launch date for their alliance, with codeshare flights going on sale on both airlines services between Singapore and New Zealand on 25 September. The alliance will see the Star Alliance carriers operating one return service each per day on the Singapore-Auckland route and Singapore Airlines Daily news on operating a daily return service between Singapore and Christchurch. Under the alliance Singapore Airlines and Air New Zealand s goal is to increase their existing capacity between New Zealand and Singapore by up to 30% yearround over time, while delivering enhanced benefits to their customers. Customers will enjoy increased capacity and additional frequencies between the two countries as well as codeshare connectivity to a further 40 destinations in the Air New Zealand network. In turn, Air New Zealand will codeshare to a further 50 destinations on the Singapore Airlines and SilkAir network. Source: Singapore Airlines Airports are a trillion-dollar powerhouse for U.S. economy: Airports Council International-North America (ACI-NA) announced the findings of its most recent economic impact study, The Economic Impact of Commercial Airports in Prepared for ACI-NA by the firm CDM Smith, this study analyzes the contribution U.S. airports made to the nation s economy during the past year, including employment numbers, payroll figures, and output generated. The Economic Impact of Commercial Airports in 2013 examines data from more than 90 state and local economic impact analyses encompassing 485 commercial airports in the U.S. In addition to their collective national output of USD 1.1 trillion, U.S. airports support a total of 9.5 million jobs and create a total payroll of USD 356 billion. Source: ACI-NA IATA Figures -- Demand for air travel picks-up in August 2014: The International Air Transport Association (IATA) announced global passenger traffic results for August showing a slight pick-up in demand over the previous month. Total revenue passenger kilometers (RPKs) increased 5.9% compared to August 2013, which was above the 5.4% year-over-year increase recorded in July. August capacity climbed 5.5%. The load factor stood at 83.9% which is a 0.3 percentage point rise over August Aug 2014 vs. Aug 2013 RPK Growth ASK Growth PLF International 6.7% 6.7% 84.2 Domestic 4.5% 3.4% 83.4 Total Market 5.9% 5.5% 83.9 YTD 2014 vs. YTD 2013 RPK Growth ASK Growth PLF International 6.3% 6.4% 79.8 Domestic 5.1% 4.2% 81.1 Total Market 5.8% 5.6% 80.3 International passenger markets International passenger traffic rose 6.7% in August, with all regions showing growth over the previous year. Capacity also rose 6.7% and load factor was stable at 84.2%. Issue 91 - Oct

24 Global Arab Aviation European carriers international traffic climbed 6.8% in August compared to the year-ago period. Carriers based in the region are experiencing strong demand despite the economic difficulties in the Eurozone. Sanctions related to the Russia-Ukraine crisis are among the factors having a dampening effect on key European economies including Germany. Capacity was up 6.0% pushing load factor to 86.9% which is 0.6 percentage points above previous-august levels. Asia-Pacific airlines saw their traffic rise 5.8% in August compared to the previous year. After a slow start, the Chinese economy has been stabilizing, supported by government fiscal stimulus, and regional trade activity which encourages business travel, has rebounded fully. Capacity rose 7.0% and load factor declined 0.9 percentage points to 81%. North American airlines demand rose 3.2% in August compared to a year ago. According to JP Morgan/Markit, overall business conditions in the US are the strongest they have been since May With capacity up 5.0%, load factor fell 1.5 percentage points to 86.6%. Middle East carriers had the strongest year-on-year traffic growth in August at 11.7% as airlines continue to benefit from the strength of regional economies and solid growth in business-related premium travel. Capacity rose 10.3% and load factor rose 1.0 percentage point to 83.0%. Latin American airlines experienced an 8.2% rise in traffic, second highest among the regions. Capacity rose 6.4% and load factor rose 1.4 percentage points to 82.2%. While economies such as Colombia, Peru and Chile continue to expand robustly, growth in the Brazilian economy remains fundamentally weak and regional trade volumes have made no progress this year compared to the highs reached at the end of African airlines demand rose 7.5%, while capacity climbed 5.9% and the load factor improved 1.1 percentage points to 75.0%. Because significant volatility in volumes for this region can occur, the strong traffic growth cannot be immediately interpreted as a trend change. Source: IATA THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE Daily news on Issue 91 - Oct

25 OUR PARTNER AIRLINES

26 Partner Airlines LATEST NEWS Traffic statistics September Group traffic and capacity statistics: In September 2014, Group traffic measured in Revenue Passenger Kilometres increased by 8.5% versus September 2013; Group capacity measured in Available Seat Kilometres rose by 8.4%. Group premium traffic for the month of September increased by 7.6% compared to the previous year. To download a PDF version of the results, please click here. Strategic developments: On 22 September, IAG announced its decision to convert eight A options into firm orders for Iberia. These aircraft will be delivered between 2015 and In addition, IAG has taken out options for a further ten A330s to provide fleet flexibility for the Group. On 18 September, British Airways announced that it is to resume direct flights from Heathrow to Kuala Lumpur in summer The airline has also added another three new routes to its Gatwick schedule. Funchal in Madeira, Seville and Las Palmas in Gran Canaria in Spain, will be operated from March In September, Vueling and Qatar Airways reached an interline agreement. This partnership will contribute to increase Vueling s traffic by feeding Qatar Airways long haul flights from Barcelona and Rome-Fiumicino. SPAIN TRAFFIC The Spanish air transport market expanded by 8.3% in July 2014 over July 2013 in terms of number of passengers traveling to, from & within Spain, and is estimated to have shrunk in August 2014 by (2.6%) compared to August % 10% 5% 0% -5% -10% -15% -20% -25% Monthly Passenger Numbers' Change in the Spanish Air Transport Market Sep13 to Aug14* compared to same month in previous year Looking at the Spanish market traffic flows, the international European market represented in July % of the total market, and is expected to have shrunk to 71.4% in August Traffic between the Arab world and Spain represented 1.3% of the total Spanish market in July 2014, and is estimated to have expanded to 2.1% in August % 25% 20% 15% 10% 5% 0% -5% -10% May14-Jul14 Jun14-Aug14* Source: AACO, IATA Passenger Numbers' Change in the Spanish Air Transport Market May14-Jul14 & Jun14-Aug14* 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 July 2014, Ryanair was the biggest carrier operating to, from and within Spain by number of passengers, boarding 3.3 million pax, which represented an increase of 1.1% over July 2013 operations. Top 15 Airlines Operating in the Spanish Market Airline Jul-14 Change Airline Jul-14 Change FR 3,319, % ZB 440, % IB 1,797, % LH 312,164 (14.6%) U2 1,421, % DE 245, % VY 1,364, % 4U 243,336 56% AB 1,040,112 (3.6%) BA 236,913 (0.03%) UX 705, % NT 229,365 (2.5%) DY 507, % AF 215, % LS 449, % Grand Total 15,824, % Source: AACO, IATA International Domestic Source: AACO, IATA Daily news on *Estimated Issue 91 - Oct

27 Partner Airlines UK TRAFFIC The UK air transport market expanded by 7.5% in July 2014 over July 2013 in terms of number of passengers traveling to, from and within the UK, and is expected to have shrunk by (18.4%) in August 2014 compared to August Monthly Passenger Numbers' Change in the UK Air Transport Market Sep13 to Aug14* compared to same month in previous year 15% 10% Passenger Numbers' Change in the UK Air Transport Market May14-Jul14 & Jun14-Aug14* compared to same period in previous year 15% 10% 5% 0% -5% -10% -15% -20% -25% Source: AACO, IATA International Domestic *Estimated Looking at the UK market traffic flows, the international European market represented in July % of the total market, and is expected to have shrunk to 59.9% in August Traffic between the Arab world and the UK represented 3% of the total UK market in July 2014, and is expected to have increased to 4.8% of the total traffic in August % 0% -5% -10% May14-Jul14 Jun14-Aug14* Source: AACO, IATA Domestic With Arab World With Australasia With Europe With the Americas With Mid Asia with Sub Sahran Africa *Estimated In July 2014, easyjet was the biggest carrier operating to, from and within the UK by number of passengers, boarding 3.82 million pax, which represented an increase of 5.9% over July 2013 operations. Top 15 Airlines Operating in the UK Market Airline Jul-14 Change Airline Jul-14 Change U2 3,825, % LH 409,665 (7.1%) FR 3,310, % KL 380, % BA 2,761, % W6 373, % ZB 815, % EK 365, % LS 789,866 14% DY 319, % BE 673, % AF 248,123 (3.9%) EI 481, % UA 235,111 (6%) VS 477, % Grand Total 19,243, % Source: AACO, IATA Daily news on Issue 91 - Oct

28 Partner Airlines Dhabi and beyond effective 14 November LATEST NEWS Jet Airways receives government approval for appointment of Mr. Cramer Ball as CEO: Jet Airways has received approval from the Ministry of Civil Aviation (MoCA) for its appointment of Mr. Cramer Ball as the Company s Chief Executive Officer. Jet Airways to evolve into uniform full service single brand: In line with its recent announcement of a uniform single brand, Jet Airways will commence streamlining and aligning its domestic operations into a single full service product to provide an enhanced and consistent product experience. As the first, of many upcoming initiatives, all guests who booked flights on or after September 15th 2014 for travel on or after December 1st 2014, will enjoy the full service experience onboard all Jet Airways and JetKonnect operated flights across the domestic network. The enhancement into a uniform, full service single brand will include a complementary meal service onboard all flights for travel effective December 1st 2014, and Sky Café the airline buy on board service - will be discontinued. JetPrivilege members will also earn JPMiles in line with the accrual structure for full service flights. Jet Airways introduces fifth daily service between Mumbai and Dubai effective 14 October: Jet Airways has enhanced its connectivity with the United Arab Emirates, through the introduction of a fifth daily service between Mumbai and Dubai effective 14 October This is the fifth daily frequency being introduced between the two cities. The airline will deploy its next - generation Boeing aircraft, offering twin class configuration of Premiere and Economy class. Jet Airways announces enhanced connectivity to the Gulf with the launch of four international flights from Kochi, Kozhikode & Thiruvananthapuram: Jet Airways will introduce a new direct flight from Kochi to Dubai effective 5 November. This is Jet Airways first direct daily flight from Kochi to Dubai. This new service from Kochi to Dubai will complement the currently operated daily direct flights from Kochi to Abu Dhabi, Dammam, Doha, Kuwait (via Abu Dhabi), Muscat and Sharjah. Jet Airways will also launch a second frequency between Mumbai and Doha effective 5 November as well as a new daily direct flight from Kohzikode and Thiruvananthapuram to Doha effective 1 December Jet Airways to introduce a daily service between Delhi and Ho Chi Minh city (Vietnam), via Bangkok effective 5 November: Jet Airways plans to increase connectivity to cities in ASEAN region and beyond through its primary hubs in Delhi and Mumbai during its winter schedule. The new daily flight from Delhi to Ho Chi Minh City in Vietnam, via Bangkok will be the 22nd international destination on Jet Airways international network. The airline also plans to introduce a third daily direct service from its international gateway in Mumbai to Bangkok during its winter schedule. Jet Airways signs long-term training centre operations services with CAE: Jet Airways and CAE announced that they have signed a training centre operations services contract and that Jet Airways pilots have already started to train at CAE s integrated training centre in Bengaluru. Under the terms of the agreement, CAE has relocated Jet Airways CAE-built simulators from the airline s training centre in Mumbai to CAE s training centre in Bengaluru. Jet Airways simulators, which include two B737 full-flight simulators (FFS) and one B777 FFS, are now fully operational and certified by India s Directorate General of Civil Aviation (DGCA). INDIA TRAFFIC The Indian air transport market grew by 11.2% in July 2014 over July 2013 in terms of number of passengers traveling to, from and within India, and is estimated to maintain its position in August 2014 compared to August % 15% 10% 5% 0% -5% Monthly Passenger Numbers' Change in the Indian Air Transport Market Sep13 to Aug14* comapred to same month in previous year Jet Airways enhances global connectivity, links four additional Indian cities to the world: Jet Airways will significantly enhance global connectivity with the introduction of four new daily direct international flights linking Ahmedabad, Goa, Lucknow and Pune (subject to government approval) with Abu Source: AACO, IATA International Domestic *Estimated Daily news on Issue 91 - Oct

29 Partner Airlines Looking at the Indian market traffic flows, the domestic market represented in July % of the total market, and is estimated to have shrunk to 55% in August Traffic between the Arab world and India represented 17.4% of the total Indian market in July 2014, and is estimated to have expanded to 18.8% in August % 14% 12% 10% 8% 6% 4% 2% 0% -2% May14-Jul14 Jun14-Aug14* Passenger Numbers' Change in the Indian Air Transport Market May14-Jul14 & Jun14-Aug14* compared to same period in previous year Domestic With Arab World With Australasia With Europe With the Americas Within Mid Asia Int'l with Sub Sahran Africa Source: AACO, IATA *Estimated In July 2014, Indigo Airlines was the biggest carrier operating to, from and within India by number of passengers, boarding 1.94 million pax, which represented an increase of 35.6% over July 2013 operations. Top 15 Airlines Operating in the Indian Market Airline Jul-14 Change Airline Jul-14 Change 6E 1,941, % QR 144, % AI 1,128, % G9 131,299 (5.8%) 9W 1,030,747 (14.8%) EY 125, % SG 982, % SQ 122,777 (1.5%) G8 468, % WY 100,705 (2.2%) EK 406, % LH 97, % S2 284, % UL 95, % IX 189,825 (16.1%) Grand Total 8,501, % Source: AACO, IATA THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE Daily news on Issue 91 - Oct

30 Partner Airlines LATEST NEWS Turkish Airlines launches flights to Kherson from 15 October: Turkish Airlines will launch a new service between Istanbul and Kherson on 15 October. Roundtrip flights between Istanbul and Kherson will be operated 4 times per week Turkish Airlines launches its direct flights to Tallinn and Vilnius: On 26 October, Turkish Airlines will launch direct flights to the capitals of Estonia and Lithuania; Tallinn and Vilnius. Roundtrip flights between Istanbul and Tallinn will be operated 4 times per week. Turkish Technic Inc. and Honeywell expand aftermarket partnership: Turkish Technic Inc. and Honeywell Aerospace have extended their long term aftermarket partnership. Based at Istanbul s Atatürk and Sabiha Gokcen Airports, Turkish Technic Inc. will now offer depot-level MRO services for all Honeywell 131-9B APUs on Boeing 737 aircraft worldwide. The new contract builds on the existing agreement between the two companies to deliver industry-standard and round-the-clock MRO services to the airlines based in Turkey, and expands the authorization to worldwide coverage to provide airlines around the world with fast and authorised servicing capabilities. TURKEY TRAFFIC The Turkish air transport market in July 2014 grew by 10.4% over July 2013 in terms of number of passengers traveling to, from and within Turkey, and is estiamted to have grown in August 2014 by 12.4% compared to August % 60% 40% 20% 0% Monthly Passenger Numbers' Change in the Turkish Air Transport Market Sep13 to Aug14* compared to same month in previous year International Domestic Looking at the Turkish market traffic flows, the European market (international traffic between Turkey and Europe) was the biggest market. It accounted for 46.7% of July 2014 traffic, and is expected to have shrunk to 38.7% in August The domestic market was the second biggest market, accounting for 36.8% of July 2014 traffic, and is expected to have expanded to 42.1% in August On the other hand, traffic between the Arab world and Turkey represented 5.9% of the total Turkish market in July 2014, and is expected to have expanded to 9.1% in August % 25% 20% 15% 10% 5% 0% May14-Jul14 Jun14-Aug14* Source: AACO, IATA Domestic Passenger Numbers' Change in the Turkish Air Transport Market May14-Jul14 & Jun14-Aug14* compared to same period in previous year With Arab World With Australasia With Europe Int'l With the Americas With Mid Asia with Sub Sahran Africa *Estimated In July 2014, Turkish Airlines was the biggest carrier operating to, from and within Turkey by number of passengers, boarding 2.9 million pax, which represented an increase of 7.2% over July 2013 operations. Top 15 Airlines Operating in the Turkish Market Airline Jul-14 Change Airline JuL-14 Change TK 2,881, % LH 87,555 (18%) PC 1,193, % X3 79,703 (9.3%) XQ 385, % SU 77,933 55% 8Q 238, % U2 73,177 (6.4%) KK 219, % XG 56, % DE 119, % J2 56, % AB 94,803 (30.6%) UN 47, % ZB 94, % Grand Total 6,666, % Source: AACO, IATA Source: AACO, IATA Daily news on *Estimated Issue 91 - Oct

31 OUR INDUSTRY PARTNERS NEWS

32 Our Partners News A380 first aircraft in Etihad Airways fleet to display new livery: For the first time, Etihad Airways unveiled its all-new livery design on its first Airbus A380 at a special ceremony at the Airbus site in Hamburg, Germany. The airline s first flagship aircraft will now go through its final phase of cabin furnishing, followed by ground and flight tests, before being delivered to the Abu Dhabi based airline towards the end of the year. Etihad Airways has firm orders for ten A380s and will become the 13th operator of the aircraft. First A320neo successfully completes first flight: The first A320neo to fly has landed back at Toulouse- Blagnac Airport France after successfully completing its first flight which lasted around two and a half hours. The aircraft carrying the registration F-WNEO was flown by Airbus Experimental Test Pilots Philippe Pellerin and Etienne Miche de Malleray. Accompanying them in the cockpit was Test-Flight Engineer Jean-Paul Lambert. Monitoring the progress of the flight profile were the Flight-Test Engineers Manfred Birnfeld and Sandra Bour-Schaeffer. For its first flight, the A320neo, powered by Pratt & Whitney PW1100G-JM engines, lifted off from Blagnac at around 60 tonnes. During the flight, which took the aircraft around southern France, the crew explored the aircraft s flight envelope and systems operation, while the progress was monitored by experts on the ground in real-time via a direct telemetry link. This maiden flight marks the beginning of a rigorous flight test campaign involving eight aircraft encompassing all models and both new engine options the Pratt & Whitney PW1100G-JM and the CFM International LEAP-1A turbofans. Overall, the NEO development fleet will perform a combined total of around 3,000 hours of flight testing. The A320neo with Pratt & Whitney engines will be the first variant in the Neo Family to receive type certification followed by its entry into airline service in the 4th quarter of 2015 with first operator Qatar Airways. Airbus A receives EASA Type Certification: The A , has received Type Certification from the European Aviation Safety Agency (EASA) on 30 September The certified aircraft is powered by Rolls-Royce Trent XWB engines. Federal Aviation Administration (FAA) certification will follow shortly. The EASA A Type Certificate was signed by EASA s Executive Director, Patrick Ky. The document was handed over to Airbus Executive Vice President Engineering, Charles Champion and Airbus A350 XWB Chief Engineer, Gordon McConnell. The A Type Certification comes after successfully finishing a stringent programme of certification trials which has taken its airframe and systems well beyond their design limits to ensure all airworthiness criteria are fully met. First A350 XWB for Vietnam Airlines enters final assembly: Final assembly of the first A350 XWB for Vietnam Airlines has begun at the Roger Béteille Final Assembly Line (FAL) in Toulouse, France. Scheduled for delivery in mid-2015, the aircraft will see Vietnam Airlines become the first Asian airline to fly the A350 XWB and the second operator in the world of the all-new, fuel-efficient widebody. Vietnam Airlines has a total of 10 A350 XWB on order. The aircraft will be operated on the carrier s premium long range services. Airbus - AACO Partner since 1997 Daily news on Amadeus Gulf signs strategic partnership agreement with ATS: Amadeus Gulf, a leading technology partner for the global travel industry, has signed a partnership agreement with ATS, a leading travel management company with a presence in Dubai and the Northern Emirates. The partnership, effective from 1 September 2014, mandates Amadeus Gulf to provide rich air and non-air content to ATS through state-of-the-art products and services such as the corporate booking tool AeTM, Amadeus TRAACS - Back Office System, Amadeus Ticket Changer, as well as Print My Trip and the popular Master Pricer technologies. ATS will also gain a competitive edge through leveraging Amadeus s superior global distribution service (GDS). The strategic partnership marks a key milestone for Amadeus in offering best-in-class services to one of the UAE s most prominent travel management companies. Mr. Graham Nichols, Managing Director Amadeus Gulf, said: At Amadeus, our people, technology and innovation are dedicated to helping our customers and partners shape future travel trends in the region. We are delighted to join hands with such a progressive agency as ATS who have clearly seen the business improvements they can achieve by adopting our innovative products and solutions. This partnership reaffirms our position as a global market leader of technological innovations. On a macro level, the synergy will support the burgeoning aviation travel sector in the region and expand our presence in the local market. Mr. Shafeekh Azeez, Director Sales Dubai, Northern Emirates & Bahrain Amadeus Gulf, said: Amadeus is delighted to be associated with ATS, one of the region s leading travel management companies, and we take pride in partnering with such customers as we grow our reputation as innovators. We look forward to working on extending new-age travel solutions to our loyal customers in collaboration with our new partner. Mr. Saleem Sharif General Manager ATS, said: We strive to provide our customers with the best in technology, service and savings. Our strategic partnership with Amadeus has helped us move a step ahead in this direction. Our partnership with Amadeus guarantees us an array of technologies and services to help increase our portfolio of offerings to customers and build our reputation in the travel management space. Over the past 35 years, ATS has gained a reputation for offering comprehensive travel solutions in an environment that mitigates time delays as well as monetary challenges and travel-related hassles. In 2012, the company underwent a major re-branding exercise from Arabian Air Travel to ATS. Headquartered in Dubai, ATS enjoys a significant presence in the UAE, China and India. Amadeus - AACO Partner since 2000 Issue 91 - Oct

33 Our Partners News ADNOC Distribution is an integrated oil energy company. Founded in 1973, ADNOC Distribution market and distributes petroleum products and services within the United Arab Emirates. As one of the largest government-owned petroleum companies in the Arab Gulf, ADNOC Distribution has grown to become a national institution and a major economic driver for the UAE economy. The company is renowned for its innovative and dynamic approach offering a wide variety of petroleum and natural gas products and services. ADNOC Distribution is committed to providing its customers and strategic partners with reliable products of exceptional quality and services. Regional Main Contact Name: Mr. Naser Hasan Saleh, International Aviation Sales Department.Sales Manager-AVSD - Aviation Sales Division Telephone: Fax: naser.saleh@adnoc-dist.ae Website: Air France Consulting, a wholly owned subsidiary of Air France is specialized in air transport consulting, training, management and reengineering services, located at Roissy CDG airport. 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 diagnosis or audit, to set up new or improved processes driven by proven change management techniques or define a coaching and training program. Performance and conformity of flight and ground operations: EU-Ops, IR-Ops and FCL, CRM, SMS, ETOPS, IOSA & ISAGO 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: aircraft specifications, acquisition, lease, sales Maintenance Repair Overhaul & Supply Chain: EASA 145/ 147 / 21 / 66 / 147, MCC, line maintenance and operational regulatory support, maintenance IT support, supply chain optimization Emergency and Crisis Response plan with a strong emphasis on customer oriented solutions 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 Daily news on ADNOC - AACO Partner since 2002 Air France Consulting - AACO Partner since 2008 Creating Value * Sector Expertise * Rigor & Discipline Founded in 2002, Apollo Aviation Group ( Apollo Aviation ) is a multi-strategy alternative investment manager specializing in commercial aviation including buying, selling and leasing aircraft and engines. With more than USD 1.30 billion of assets under management as of June 30, 2013, we are one of the world s leading mid-life and mature commercial aircraft and engine operating lessors and investment managers. In the first quarter of 2013, Apollo Aviation formed, AAG Capital Markets LLC, to manage investments in aviation securities. Led by its founders, William Hoffman and Robert Korn, Apollo Aviation is currently investing a near USD 595 million real asset fund, the Sciens Aviation Special Opportunities Investment Fund II ( SASOF II ), and harvesting a USD 213 million real asset fund, Sciens Aviation Special Opportunities Investment Fund ( SASOF ) as well as several private accounts. We have built a strong team with deep industry knowledge and extensive relationships throughout the world s aviation industry. We seek innovative and creative solutions to create value. Regional Main Contact Name: Mr. Pascal Picano, Head of Global Marketing Telephone: Fax: pascalp@apollo.aero Website: Apollo- AACO Partner since 2013 In a unanimously approved AGM resolution [on New Distribution Capability], IATA members agreed that, consumers will benefit from being able to make choices based on enriched content and the ability to compare and transact airline offers in a transparent fashion. NASHRA May NDC promises to improve both product visibility and product differentiation, but airlines still need to efficiently organize all of that information. As Middle Eastern carriers consider offering value-add options to premium customers, or à la carte premium services to economy customers, effective technology and a sound fare management strategy are needed to manage those offerings. Plan your merchandising strategies with the knowledge that the industry-trusted provider of fare management solutions is here to support you. ATPCO s Optional Services and Branded Fares solutions ensure your information is consistent and accurate in all of your sales channels, allowing efficient management of your unique product offerings. While many airlines are committing resources to facilitate New Distribution Capabilities, know that you have a trusted technology partner committed to helping you meet all your distribution needs. Next month we will examine some of the changes currently happening in our industry. We are available to provide counsel and answer questions. Please contact us: Europe, Middle East and Africa Frank Socha, Regional Director fsocha@atpco.net Lampton Road Hounslow, Middlesex TW3 1HY United Kingdom ATPCO - AACO Partner since 2014 Issue 91 - Oct

34 Our Partners News TransNusa s first ATR to provide versatility for charter operations in Indonesia: TransNusa Aviation Mandiri took delivery of its first new generation ATR The carrier has options for three more ATR s. TransNusa is introducing the new ATR for the first time in Indonesia and the aircraft will be a turning point for the airline s new development efforts towards the fly-in, fly-out (FIFO) charter segment. The 5-year contract award TransNusa won this year from one of the Indonesia s large oil consortium reflects the market need and that the ATR turboprop is the ideal aircraft type for these services. The ATR has versatile capabilities on short, unpaved and narrow runways and is well suited for these demanding operations. Its smooth, high flying speed and new Armonia design interior will give the FIFO passengers a new comfortable flying experience. It is anticipated that the first ATR would enter into service this November. The chartered ATR 42 will open up its first FIFO service departing from Jakarta s Halim Airport to Matak Airport in Natuna Island, conducting six return flights per week. To ensure the smooth and safe running of the ATR throughout the FIFO service, TransNusa has chosen to cover its aircraft with the Global Maintenance Agreement (GMA) signed recently with ATR. The contract will ensure the management of maintenance activities and the supply of spare parts for the ATR for 5 years. ATR wins Cannes Corporate Media and TV Award: ATR is delighted to have won a Cannes Corporate Media and TV Award 2014, winning a silver award for TV Documentaries and Reports category for the film Let s fly Brazil - The New flying rivers. This international competition is one of the world s most important festivals in the corporate audiovisual industry and ATR was among of the 725 nominees at representing 34 countries. ATR - AACO Partner since 1998 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 Daily news on BOC Aviation places first order for Boeing 737 Max aircraft: BOC Aviation is pleased to announce an order for a total of 80 Boeing 737 series aircraft for delivery from 2016 to 2021, as the company builds on its pipeline for the next seven years. The order comprises MAX 8 and 30 Next Generation aircraft. The company also ordered two ER aircraft, which have already been placed with an existing customer. As of 30 June, BOC Aviation s fleet of 251 delivered aircraft included 118 Boeing aircraft operated by 27 airlines, of which 95 aircraft were 737 NGs. BOC Aviation delivers first of 20 Airbus A320 aircraft to Vistara: BOC Aviation is pleased to announce the delivery of the first of 20 Airbus A320 Family aircraft to TATA-SIA Airlines Limited, the newest Indian airline branded as Vistara. The order includes seven NEO variants. BOC Aviation delivers first of six Airbus A320 aircraft to Beijing Capital Airlines: BOC Aviation is pleased to announce the delivery of the first of six A320 aircraft to its newest customer, Beijing Capital Airlines Co. Ltd. ( Beijing Capital Airlines ). The remaining five aircraft will be delivered from third quarter of 2014 to second quarter of BOC Aviation announces official opening of new London office: BOC Aviation is pleased to announce the official opening of the new London office, headed by Mr. Steven Townend, Deputy Managing Director and Chief Commercial Officer for Europe, Americas & Africa. BOC Aviation - AACO Partner since 2003 Boeing, Etihad Airways unveil livery of airline s first Dreamliner: Boeing rolled out of its paint hangar the first Dreamliner that will be delivered to Etihad Airways. The airplane is painted in the airline s new Facets of Abu Dhabi livery with colors reminiscent of the desert landscape, inspired by the culture, Islamic design and architecture motifs of the UAE.Etihad Airways will take delivery of its first later in Etihad Airways has a total of 71 Dreamliners on order, including s and s. Boeing statement on Export-Import Bank extension: Boeing issued the following statement today following House passage of a continuing resolution that temporarily reauthorizes the Export-Import (Ex-Im) Bank: Congress has left thousands of small, medium and large U.S. exporters and their workers in limbo until the middle of next year and this will likely negatively impact U.S. sales to foreign customers. We will continue to press Congress for a multi-year reauthorization of Ex-Im. Boeing launches 737 MAX 200 with Ryanair: Boeing launched the newest member of the 737 MAX family with a commitment from Ryanair for 100 airplanes. Ryanair will be the first airline to operate the 737 MAX 200, a variant based on the 737 MAX 8 that can accommodate up to 200 seats. Boeing, Air China celebrate airline s first Intercontinental: Boeing and Air China celebrated the delivery of the airline s first Intercontinental. Air China is the first carrier in Asia to operate the passenger version of the The new airplane is the first of seven Intercontinentals Air China has on order. Boeing, China Eastern Airlines celebrate delivery of airline s first ER: Boeing and China Eastern Airlines celebrated the delivery of the airline s first ER. The new airplane is the first of ERs China Eastern has on order. China Eastern will operate ERs on routes between China and North America. Boeing- AACO Partner since 1998 Issue 91 - Oct

35 Our Partners News CHAMP Cargosystems at TIACA ACF 2014: Champ Cargosystems will be participating in workshop 2 of TIACA ACF 2014: Shredding the paper burden. There will be opportunities to discuss recent product developments at the CHAMP Cargosystem Stand No.C274. CHAMP Cargosystems provides the most comprehensive range of integrated IT solutions and distribution services for the air cargo transport chain. The portfolio spans core management systems, messaging services, and ecargo solutions. These include applications to meet customs and security requirements, quality optimization as well as e-freight and mobility needs. The products and services are well known under the Cargospot and Traxon brands. The company serves over 200 airlines and GSAs, and links these with some 3,000 forwarders and GHAs worldwide. CHAMP s solutions help its customers and their clients adapt to critical and continuous changes in air transport logistics to meet global trade demands. For further information see: JAL Cargo goes live with first phase of technology transformation program with CHAMP Cargosystems: At 06:30 JST on 28 September 2014, flight JAL 371 departed from Tokyo s Haneda airport bound for Kitakyushu with the first shipments to be processed through CHAMP s Cargospot service. This successful cutover is an important milestone in the transformation of JAL Cargo s technology in support of its business operations and of providing an enhanced service to its customers. JAL and CHAMP have worked hard together to ensure a seamless transition. CHAMP Cargosystems signs Cathay Pacific Airways for Cargospot: CHAMP Cargosystems is pleased to announce that Cathay Pacific has selected CHAMP to provide their new cargo IT platform following a successful six-month design phase. CSS, as it is known, is a further step in Cathay Pacific s ambitions to remain at the forefront of harnessing technology to support world-class process and people as an integral part of its drive for improved competitive advantage. CHAMP - AACO Partner since 2010 easyjet orders additional CFM56-5B engines: easyjet announced an additional order with CFM International for 54 CFM56-5B engines to power the 27 Airbus A320 ceo (current engine option) aircraft scheduled to begin delivery between 2015 and The aircraft order was previously announced; the airline is exercising 27 existing purchase rights. CFM values the firm engine order at more than USD 560 million at list price. easyjet has been a CFM customer since 1995 and its entire fleet is powered by CFM56 engines, with the airline operating 226 CFM56-5B-powered A320-family aircraft. Earlier this year, the airline selected the advanced LEAP-1A for its new fleet for A320neo aircraft. All of easyjet s new engines will be the CFM56-5B Performance Improvement Package (PIP) configuration. The PIP became the new production configuration for the CFM56-5B in The improvements, which is providing a 0.5% improvement in fuel burn, include hardware changes to the core, including new high-pressure turbine blade, as well as manufacturing changes the fan and compressor blades and vanes to improve performance retention. The engine maintains the same noise signature as the current production engine and meets current International Civil Aviation Organisation (ICAO) Committee of Aviation Environmental Protection standards (CAEP /6) requirements. Ryanair to Purchase 200 CFM LEAP-1B Engines at a value of more than USD 2.6B: Ryanair announced its commitment to purchase 200 LEAP-1B engines to power 100 Boeing 737 MAX 200. Boeing formally launched the airplane, a variant of the MAX 8 that can accommodate up to 200 passengers, with this order. Once finalized, the firm engine order is valued at more than USD 2.6 billion at list price. Ryanair also has options to purchase an additional 100 LEAP-1B-powered 737 MAX 200 airplanes. The first full LEAP-1B engine began ground testing in June 2014, three days ahead of schedule, as part of the most extensive ground and flight test certification program in CFM s history. CFM - AACO Partner since 1998 Daily news on 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. 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 The DNA of Airline Merchandising is Evolving Rapidly: Traditionally, the airline business model has been to sell tickets based on schedules and the cost of airfares. However, the way airlines compete with one another is now changing drastically. Progressive companies are reaping the benefits of more revenue and happy customers. Ideaworks and IATA research shows that 2013 ancillary revenues topped $32 billion (USD) worldwide. Much of this revenue growth can be attributed to the rapid pace of change in airline merchandising. Today, airlines are giving customers more choice and control over services that were once bundled together under the total cost of the fare. More choice means happier customers and more revenue for an airline. Now, customers can choose a la carte options including lounge services, new seating products, premium meals, Wi-Fi connectivity, upgrades and even chauffeur services, to name but a few. Recognizing the potential that exists to generate new revenue streams and at the same time delight customers, increasingly more airlines know that the most effective ways to grow their product and brand differentiation is to embrace airline-controlled technologies that support efficient, ubiquitous multichannel engagement. With the right solution in place, airlines can take control over the core technologies they use to define, create, and distribute their differentiated products and services. Farelogix is leading the way in this market by bringing together airline-controlled shopping, a centralized merchandising engine, and established XML API standards to deliver rich content across all channels. Get on board with more revenue and happy customers by connecting with Farelogix in Dubai at World Low Cost Airlines MENA 2014 in October, or at the AACO 47th Annual General Meeting from November 18 20, Contact UAE-based Rui Sequeira, Vice President Sales and Business Development at Farelogix (rsequeira@farelogix.com) today to schedule a meeting. Issue 91 - Oct

36 Our Partners News GE Capital Aviation Services delivers an Embraer 190 to new customer BoraJet: GE Capital Aviation Services Limited (GECAS), the commercial aircraft leasing arm of GE, announced the delivery of an Embraer 190 to BoraJet Arlines to help the carrier s fleet expansion. This is GECAS first transaction with BoraJet. BoraJet, based in Istanbul, operates a fleet of six Embraer 190s to destinations throughout Turkey. GECAS - AACO Partner since 2003 GlobalCollect is the most knowledgeable global Payment Service Provider in the world, processing international ecommerce payments for more than 600 of the world s most recognized ecommerce brands in the digital goods and services, travel, retail and video gaming industries, among many others. With two decades of payments experience, we enable our clients to efficiently and securely accept payments from more than 170 countries in more than 150 currencies. We offer in excess of 150 local payment methods, including all major credit cards, debit cards and alternative payment methods, giving unparalleled coverage throughout all global regions. Our robust and redundant systems guarantee our customers high availability and reliability. GlobalCollect s business intelligence tools, Managed Fraud Services 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 regional offices in North America, Asia Pacific, South America and the EU focused on bringing local presence with global reach and services to our clients. For more information, please visit: and follow us on: linkedin.com/company/globalcollect and Regional Main Contact: Name: Mr. John Snoek, VP Global Marketing Telephone: john.snoek@globalcollect.com Website: Daily news on GlobalCollect - AACO Partner since 2007 Hahn Air - AACO Partner since 2014 Hogan Lovells is a global legal practice that helps corporations, financial institutions, and governmental entities across the spectrum of their critical business and legal issues globally and locally. We have over 2,500 lawyers operating out of more than 40 offices in Africa, Asia, Europe, Latin America, the Middle East, and the United States. Hogan Lovells is one of a small number of leading global law firms with in-depth knowledge in aviation-related matters worldwide. Our aviation team regularly receives first-tier rankings from Chambers USA., which notes in its 2014 edition An excellent law firm, staffed by outstanding attorneys, that achieves results; impressive by any measure. We are also known for strong cross-border and asset finance work in global markets, earning praise from The Legal 500 for clarity of thought, a solutions-driven approach and exceptionally talented partners. Clients benefit from our aviation lawyers experience in public service, which include positions as Chief Counsel of the U.S. Federal Aviation Administration (FAA), Special Assistant to the Secretary of Transportation, Special Counsel to the Administrator of the FAA, Special Assistant to a member of the National Transportation Safety Board and Executive Assistant to the Chair and Vice Chair of the Civil Aeronautics Board. In addition, our aviation lawyers team with lawyers from the firm s network of more than 40 offices worldwide to address a broad range of legal issues, including antitrust, corporate, finance, environmental, tax, litigation, lobbying, and regulatory matters. We represent all segments of the aviation industry, such as air carriers, airports, corporate aircraft owners and operators, municipalities, aerospace manufacturers, repair facilities, aviation trade associations, foreign governments, business aviation operators, fractional ownership providers, unmanned aircraft systems providers and operators, and aircraft leasing and financing organizations. The insights we derive from our diverse practice enable us to achieve our clients goals more efficiently and effectively. Hogan Lovells - AACO Partner since 2014 Issue 91 - Oct

37 Our Partners News HP acquires Eucalyptus to accelerate hybrid cloud adoption in the enterprise: HP announced a definitive agreement to acquire Eucalyptus, a provider of open source software for building private and hybrid enterprise clouds. Since introducing HP Helion in May, HP has grown share in private cloud and was ranked as the leader in the Forrester Wave report for Private Cloud Solutions.(1) In addition, HP recently announced an agreement to build and operate community clouds for enterprise customers in China, one of the fastest growing cloud markets in the world, and also announced HP Helion OpenStack Professional Services to help enterprises implement OpenStack technology based clouds. HP is the leading code contributor to the next release of OpenStack code, scheduled for October. HP expects the acquisition to close in the fourth quarter of its fiscal year Terms of the deal were not disclosed. City of Auckland, New Zealand selects HP to drive groundbreaking future cities initiative: HP today announced that the city of Auckland, New Zealand has selected HP Software to deliver a visionary Big Data project designed to provide a safer community and more efficient roadways for its citizens. Auckland Transport, Auckland s government agency responsible for all of its transportation infrastructure and services, will deploy video analytics powered by HP IDOL on servers and storage from HP Enterprise Group, and with support from HP Software Professional Services. HP redefines active defense to combat cyberthreats at HP Protect 2014: At HP Protect, the company s annual enterprise security user conference, HP addressed nearly 1,500 security professionals, introducing new offerings designed to arm organizations with the actionable security intelligence needed to engage a more proactive defense against the adversary. Daily news on HP - AACO Partner since 2014 rokki brings WiFi to the skies: rokki and Inmarsat have together launched the first low-cost inflight connectivity service in the Asia Pacific region. Powering rokki s connectivity service is Inmarsat s L-band satellite service, SwiftBroadband. Inmarsat provides consistent coverage on routes across the world supported by a powerful ground network. rokki s connectivity service is currently being deployed on AirAsia aircraft. As part of a continuous effort to provide innovative communication solutions on board, rokki will expand its connectivity service to provide access to s and social media that s set to roll out in phases in Hawaiian Airlines pioneers SwiftBroadband for safety services: Hawaiian Airlines and Inmarsat announced that Hawaiian Airlines will become the first commercial airline to install SwiftBroadband for flight deck applications, including Safety Services on its Boeing s. Hawaiian Airlines will use Inmarsat s SwiftBroadband Safety for ACARS data messages, live Electronic Flight Bag updates and Airline Operational Communication (AOC) voice and data. Inmarsat and the FAA will collect data on the performance of the FANS1/A service at Hawaiian Airlines which will contribute to the achievement of approvals for FANS1/A services over SwiftBroadband which are expected by early Inmarsat and Thales conclude GX Aviation Reseller agreement: Inmarsat confirmed Thales as a Value Added Reseller for GX Aviation. Inmarsat and Thales expect that launch customers for GX Aviation, Inmarsat s game-changing high-speed broadband connectivity, will be able to offer Internet speeds of up to 50Mbps to passengers on a global basis in This represents the only Ka-band solution built to deliver a seamless global network. Inmarsat - AACO Partner since 2013 Innovata, a global leader in travel and hospitality content management and distribution solutions is recognized as a major industry source for worldwide airline schedule and related data. As a partner of IATA in marketing the Schedule Reference Service (SRS) to the aviation and consulting industries, Innovata maintains one of the world s largest flight databases (passenger and cargo) representing more than 99% of the air segment miles flown worldwide, containing over 900 airlines, 95% of which are updated and refreshed every week. Innovata delivers comprehensive, accurate and reliable up to date information to meet a wide range of data service needs for aviation related industries and is the market leader in the provision of timetables and route mapping services, via all distribution channels, to airlines and airports worldwide. Take a look on the AACO website at the dynamic and interactive route network mapping service produced by Innovata, showing direct routes, online and interline connections, and a comprehensive timetable display for all 27 member airlines, dynamically plotted and displayed for users searching and querying: Headquartered in Atlanta, USA, with regional offices in UK and Singapore, Innovata serves over 200 customers, in 52 countries. Regional Main Contact: Name: Mr. John McAleavy, Regional Account Manager Europe, Africa & Middle East Telephone: +44 (0) Fax: +44 (0) jmcaleavy@innovata-llc.com Website: Innovata - AACO Partner since 2003 Established in January 1980 and based in Toulouse, IAS is the French Aerospace Industry Association (GIFAS) agency for international professional training. IAS mission is to design and implement professional training solutions dedicated to foreign professionals operating in the aeronautic and space sector, as partners and/or customers of the French industry. Whether based upon the schools academic training or tailor-made by IAS, these solutions leverage the know-how of IAS educational partners and the expertise of its industrial lecturers coming from leading players such as Airbus Group, Thales Group, Dassault Aviation, and Safran Group. Backed by GIFAS, IAS can build upon its location in Toulouse (close proximity to ISAE, ENAC, CNES and the future Toulouse Montaudran Aerospace Technoparc), and its strong international network. IAS fast facts: more than 3500 professionals from more than 100 countries trained to date, customer portfolio of over 150 leading players in the aeronautic and space industry, more than 10 training sessions per year, 2013 turnover: 3.6 million Euros, permanent staff: 12 (as of end 2013) working in 3 teams: Management, Business Development, and Operations. Regional Main Contact: Name: Mrs. Monia Zaki, International Project Manager Telephone: Fax: zaki@inst-aero-spatial.org IAS - AACO Partner since 2008 Issue 91 - Oct

38 Our Partners News Widerøe gains paperless EFB authorization using Jeppesen FliteDeck Pro: Widerøe recently gained authorization to operate in a paperless environment, using Jeppesen FliteDeck Pro electronic flight bag (EFB) solutions delivered through ipad and Aviobook EFB software. Jeppesen helped Widerøe gain the fully digital Civil Aviation Authority of Norway operational approval that was effective as of 1 Oct Widerøe has been transitioning its flight operations over the last year, using Jeppesen FliteDeck Pro. This transformation has focused on eliminating paper-based flight materials while operating with digital solutions to increase efficiency, reduce operating costs and increase situational awareness in flight. Elimination of paper-based materials from airline operations allows Widerøe to increase operational efficiency through reduced fuel burn from weight savings and improves pilot situational awareness related to access of critical flight data on screen. Widerøe pilots also no longer need to spend time filing paper chart revisions, which allows for more time to complete other essential preparation and operational tasks. Jeppesen to power HP s airline flight operations solutions: Jeppesen announced HP will integrate the optimized Jeppesen JetPlan flight planning engine into the HP Flight Operations suite. Under this agreement, Jeppesen s JetPlan flight planning engine will power HP s flight planning interface, enabling airlines to increase the efficiency of their operations, reduce costs and enhance the passenger experience. HP s Flight Operations is a suite of solutions that effectively manages day-to-day airline operations through business process modeling and integration of disparate systems into a single interface, enabling quick and effective decisions to resolve operational issues. JetPlan features first-time flyable, fully optimized routes that help reduce fuel costs and overflight charges while improving on-time performance and minimizing the risk of disruption. Jeppesen - AACO Partner since 2008 High Performance Business Learning from the Aviation Industry: The transport and logistics sector is facing constantly changing global challenges. These can be solved by innovative solutions and best practices employed in successful change projects in the aviation industry. At Lufthansa Consulting we have more than 25 years of experience in this field. Against this backdrop, we are staging the Executive Circle series as a new forum for executives and industry experts to explore strategically relevant topics. These small-scale events will be shaped largely by the participants and will provide an opportunity for them to discuss innovative methods as well as initial solutions. Experts from Lufthansa Consulting will contribute their expertise from both aviation and non-aviation projects. The Executive Circle will thus enable you to meet face-to-face and exchange ideas with selected managers from the transport and logistics industry and learn more about innovative methods from high-caliber speakers. Lufthansa Consulting expands its range of activities with new Partner Matthias Riveiro: Matthias Riveiro has assumed his new role as an active partner of Lufthansa Consulting GmbH, effective 1 September An experienced manager with a strong international focus, he will be responsible for the company s Inter-Branch business, providing services not only to airlines but also to customers outside the aviation sector. Besides marketing the existing expertise of Lufthansa Consulting, his main task will be to develop new, innovative consulting services in four areas: CRM & Customer Management, Procurement & Sourcing, Digitalization and Lean & Agile. Lufthansa Consulting - AACO Partner since 2010 Assisting passengers with special needs and annual CRO training Kennedys continues rise up Legal Week UK Top 50 rankings: Kennedys has further consolidated recent years growth, moving up the Legal Week UK Top 50 rankings to 24th place, by revenue. We have moved up two places on last year s 26th place. This year, our revenue growth is up 9.9%, outstripping that of all key competitors, to 128.5m. Kennedys continues to rise up the Legal Week UK Top 50 rankings. Over the last five years, we have moved up 18 places from 42nd, where we entered the table for the first time in 2008/09. Legal Week is a leading legal sector publication, and the annual UK Top 50 list is based on a comprehensive annual survey and research process. Kennedys - AACO Partner since 2011 Annual Complaints Resolution Official (CRO) training is required for carriers to be in compliance with 14 CFR Part 382, Nondiscrimination on the Basis of Disability in Air Travel, in support of the Air Carrier Access Act. If you haven t scheduled your 2014 CRO training and need a class to ensure compliance, MedAire continues to offer Air Carrier Access Act Training courses worldwide to assist carriers with compliance to Part 382. To date, more than 100,000 crewmembers have participated in MedAire s CRO Training. The course is offered in 7 languages. You may also be interested in learning more about CRO Assistance, a 24/7 resource to assist carriers with appropriate and compliant responses to situations involving passengers with disabilities. Whether or not an airline is required to comply with a fairness-in-access regulation, every customer interaction with crew members, gate agents, reservation agents, customer service personnel, and baggage handlers affects the overall travel experience and the image & reputation of an airline and airport. Please contact MedAire to learn more about the services available to support your compliance initiatives, or to schedule a call with a MedAire ACAA CRO expert. Additional information about the courses offered is available on our website here. Tel: info-asiapacific@medaire.com MedAire - AACO Partner since 2008 Daily news on Issue 91 - Oct

39 Our Partners News Kishore Pallamreddy joins Mercator as Chief Products and Technology Officer: Mercator Solutions FZE ( Mercator ), announced that airline industry veteran Kishore Pallamreddy has joined its management team as Chief Products and Technology Officer (CPTO), taking responsibility for the development of its industry-leading products. Headquartered in Dubai, Mercator is a leading provider of software and technology-enabled outsourcing solutions to the global aviation industry helping airlines to get passengers and cargo to their destinations safely and on time. Recently acquired by leading global equity firm Warburg Pincus, the company s range of products and business process management solutions support the operations of leading carriers across the globe. Kishore brings an accomplished track record developing innovative IT products specifically designed for the airline industry. His 18 year career at Sabre Holdings includes stints in both the US and India, culminating in the role of SVP of Travelocity IT and leader of the 850 person Sabre Global Development team. David Tibble, Mercator s Executive Chairman, commented, I am delighted that Mercator has attracted a CPTO of Kishore s caliber to build upon our leadership position in the global aviation industry. Under his direction, we will enhance and develop our product offerings and take the business to the next level. Kishore Pallamreddy added, There is untapped opportunity to harness the power of technology to transform the global aviation industry and reduce its operational complexity. I look forward to building upon Mercator s product vision and quality to deliver tangible results to our industry s leaders. Daily news on MTU Maintenance Global player in commercial engine MRO: MTU Maintenance, a business division of MTU Aero Engines, is one of the world s leading provider of commercial engine maintenance services. A primary part of its business is repairing engines for programs in which it is a risk and revenue sharing partner. Nevertheless, MTU Maintenance offers alternative solutions for a wide range of engine types with its portfolio covering all engine thrust classes, from small turboprop engines to the largest jet engine ever developed, the General Electric GE90-110B/-115B. In this respect, MTU focuses on developing innovative high-tech repairs that are globally unique, mostly patented and known under the trademark MTUPlus repairs. In addition to core engine maintenance and high-tech repairs, MTU Maintenance provides service solutions such as spare engine supply, on-site and on-wing services, spare parts provisioning as well as technical and logistic support including accessory and LRU management. This broad range of comprehensive services can be combined under MTU s all-encompassing full service package Total Engine Care (TEC), guaranteeing customers carefree operations of their engines at all times. Just recently MTU expanded its engine leasing business with the set-up of two joint ventures which will provide engine solutions that span the entire lifecycle of an aircraft engine. MTU Maintenance operates facilities in Hannover and Berlin-Brandenburg (Germany), Zhuhai (China), Vancouver (Canada), Dallas (U.S.), Amsterdam (Netherlands), Rzeszów (Poland), Kuala Lumpur (Malaysia) and Ayutthaya (Thailand). mercator - AACO Partner since 2003 MTU - AACO Partner since 2013 nahco aviance, Customs collaborate on 24 hours cargo Service: Nigeria s leading aviation ground handling service provider, nahco aviance, has commenced a full 24 hour cargo services operation. The service which commenced recently has been commended by all major stakeholders Managing Director/CEO of nahco aviance, Mr. Kayode Oluwasegun-Ojo, who led other management staff of the company to the formal handing over of the facilities to Customs thanked the Service for the excellent relationship that has existed between the two organisations over the years. He further praised the Customs authority for giving approval to NAHCO to start the new 24 - hour service, the first in the country. With the commencement of the 24 hours cargo operation by nahco aviance, there would be prompt capturing of cargoes on the system. This would reduce the stockpiling of cargo at the tarmac and bulk breaking areas due to enhanced operational capacity. This will also lead to proper maximization of cargo potentials thus expediting on timely delivery to customers, smoother flow of operations and enhancing daytime capability. In 2012, the company commissioned a new warehouse with modern facilities such as cold room, freezer, strong room, vault and dangerous goods area. The commissioning of the warehouse further increased its interior space capacity by about 21,000 square metres and increased the processing capacity to 230,000 and 60,000 tonnes of import and export cargo respectively per annual. With this development, the company now operates 24 hours in all its areas of operations as other areas such as ramp and passenger services as well as maintenance department operate 24 hours. nachco aviance - AACO Partner since 2014 OnAir s connectivity a key factor in awards? You decide: Inflight connectivity is clearly making the difference for airlines looking to be recognised as the best in the world. This was aptly demonstrated by the prominence of awards for OnAir s customers at the 2014 World Airline Awards: Emirates was named as the airline with the best IFE, Qatar Airways as the best airline in the Middle East, Aeroflot as the best airline in Eastern Europe and All Nippon Airways as the best transpacific airline. OnAir enables these airlines to offer the complete passenger experience by providing inflight connectivity. All four airlines have connectivity on their most important routes, giving passengers the choice to stay in touch with the rest of the world during the flight. In a poll by Harris Interactive, passengers placed inflight Wi-Fi amongst the top four amenities they most want to see offered by an airline. The response from younger travellers of the digital native generation was even more emphatic, placing inflight Wi-Fi second on the list. The prominence of Middle Eastern airlines among the winners is no surprise. These are the airlines that have led the way in offering inflight connectivity on a global basis. Airlines in the Middle East were quick to adopt inflight connectivity and have subsequently used their experience to build it into their strategies. OnAir - AACO Partner since 2009 Issue 91 - Oct

40 Our Partners News Optiontown is an innovator in the realm of travel options. With our patented MIT Technology airlines can generate up to 5-7 % more revenue without cash investment or IT development. Our Post Sale Ancillary Revenue algorithms sell dynamic travel options to customers after ticket purchase. It generates incremental revenues for airlines and enhances customers travel experience - a win-win for all. Our robust Plug-nplay model allows to launch a trial in 4 weeks with NO Cash Investment, NO IT development and minimal resource requirement for the airline. As there is NO cost involved to the airline, the revenue flows straight to their bottom line. Our ground breaking ancillary revenue solutions have already generated more than 1% of revenues of our partner airlines. For one of our airline partners, we generated USD 2 in incremental profit per passenger boarded. Optiontown offers brand-new, customized travel options; addresses constantly changing travel needs and rewards advantageous travel purchase behaviors. Our Upgrade Travel Option (UTo), Empty Seat option (ESo), Flexibility Reward option (FRo), Multiple Booking Option (MBo) and Preferred Flight Option (PFo) are very popular products in the suite of travel products being capitalized by airlines. Optiontown s latest innovation is the revolutionary Flight Pass Option that helps to convert customers into Subscribers, generating Perpetual Revenue Streams and Perpetual Customer Loyalty. The Flight Pass Option brings a paradigm shift in selling a dynamic booklet of flight coupons for multiple trips, yet still highly customizable to suit the needs of different customer segments (leisure, SME, corporate etc.). We believe, this will bring a revolution in aviation sales by enabling airlines to gain market share and competitive advantage. With these innovative ancillary travel products offered by Optiontown, travel industry can improve their business performance by generating incremental revenues, enhancing customer satisfaction, increasing load factor and decreasing operational costs. Optiontown is an innovator in the realm of travel options. Our technology has been developed following extensive research at the Center of Transportation Studies, MIT Boston. Optiontown - AACO Partner since 2011 Established in 2006, Quali-audit is an Audit Organization (AO) officially accredited by IATA to conduct IOSA audit (IATA Operational Safety Audit), ISAGO audits (IATA Safety Audit for Ground Operations) and Endorsed Training Organization (ETO) to train IOSA auditors. Quali-audit is an independent, wholly-owned subsidiary of Air France group, with principal offices at Paris Charles de Gaulle airport (France) and additional offices in Atlanta, Georgia (USA) and Buenos Aires (Argentina). We offer a complete range of services including safety and operational audits, training and operational assistance in the fields of air operations. We are committed to assist airlines in achieving a higher level of safety, security and quality. The Quali-audit team includes 56 highly experienced professionals with multi-cultural background and experience. Our teams of auditors / instructors have an average experience of 30 years in aviation. Many of our auditors were founding members of the IOSA Task Forces that created the IOSA standards and several continue to be actively engaged in the continued evolution of IOSA. Our services include: IOSA Audit, Gap analysis, Preparation, Follow-up; ISAGO Audit, Gap analysis, Preparation, Follow-up; Operational Safety Audit and Evaluation; US-Department of Defense (DoD) Audit; Line Operations Safety Audit expanded (LOSAe); Other audits including against EASA, FAA, ICAO scope; IOSA Auditor Training (IAT); IOSA Familiarization Training; Quality Auditor Training; SAFA Training; Airline Operational Management Training; Safety Management System (SMS) (Training, Audit, Implementation); Human Factor and CRM Training; Dangerous Goods Training; and Security (SEMS) Training. We are pleased to offer our services to AACO members and we thank the airline members who already have chosen to work with Quali-audit. Presently we have already offered our services to the following AACO members: Saudia, Yemen Airways, Royal Air Maroc, Middle East Airlines, Air Algérie, Tunisair, Jordan Aviation, Oman Air, Afriqiyah Airways, Libyan Airlines and Nouvelair with excellent feedback. Quali-audit - AACO Partner since 2008 Aeropuertos Dominicanos Siglo XXI renews Rockwell Collins ARINC vmuse platform at two Dominican Republic airports: Rockwell Collins announced that Aeropuertos Dominicanos Siglo XXI (Aerodom) has signed a multi-year contract renewal for the company s ARINC vmuse Common Use Terminal Equipment (CUTE) system at Las Américas (SDQ) and Gregorio Luperón (POP) airports. The contract with Aerodom which is the private concessioner authorized by the Dominican government to manage six of the Dominican Republic s nine airports also includes the renewal of ARINC LocalCheckSM, the airports local departure control system (LDCS); and Rockwell Collins ARINC Counter Allocation Display System (CADS). Aerodom also contracted with Rockwell Collins for its ARINC Managed Services to provide on-site IT airport systems maintenance and support at both locations. ARINC vmuse enables airports to support multiple airline applications running concurrently on the same workstation, allowing airlines to process passengers faster and more efficiently while reducing costs. The airports charter airlines will use ARINC LocalCheck to enhance border security by automating the transmission of Advanced Passenger Information System (APIS) data to customs officials. Jomo Kenyatta International Airport expands use of Rockwell Collins common use passenger processing and self service solutions: Rockwell Collins announced today that it has completed the expansion of the company s ARINC Common Use Passenger Processing Systems (CUPPS) and Common Use Self Service (CUSS) solutions at the major East African hub airport of Jomo Kenyatta International Airport in Nairobi, Kenya. This is Rockwell Collins first major CUPPS installation in sub-saharan Africa. The installation of the CUSS self-service kiosks represents a new service for travellers passing through the airport. In addition to the ARINC vmuse and self-service kiosk installations, ARINC Managed Services (AMS) will provide 24/7 on-site support. Rockwell Collins - AACO Partner since 2002 THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE Daily news on Issue 91 - Oct

41 Our Partners News Sabre inks deal with Peruvian Airlines for full content distribution: Sabre Corporation announced today that Peruvian Airlines has become the newest Latin American carrier to join the Sabre travel marketplace, a leading travel e-commerce platform that will help the airline span its reach to global travelers. The multi-year distribution agreement, which means providing buyers with access to all Peruvian s fares, seat maps, schedules and services, will enable the airline to partner with more than 400,000 travel agents in Peru, Latin America and other global markets, a key user base managing millions of flight requests and bookings. The new full-content distribution agreement will also allow the airline to embrace Sabre s technology and GDS-enabled solutions portfolio, including Low Fare Search capabilities, to support efficient merchandising of fares and inventory through travel agents subscribed to Sabre worldwide. Sabre and Peruvian Airlines have already started to work on the technology implementation pipeline, after which the content will be available on desktop, web and tablets for shopping and booking. Alfonso Núñez Ghersi, general manager for Peruvian Airlines, said: Our agreement with Sabre meets perfectly how we see our airline s next step in commerce and distribution, defined by partnering with agencies and technology vendors that provide travelers with affordable options shown by transparent shopping capabilities. Peruvian Airlines will now leverage innovative technology adopted by hundreds of airlines globally. The expanded distribution with Sabre coupled with their expertise in the travel industry, will help us merchandise efficiently through Sabre s leading marketplace and better serve travelers. Sabre appoints Ms. Rachel Gonzalez Executive Vice President and General Counsel: Sabre Corporation (NASDAQ: SABR), a global technology provider to the travel and tourism industry, has appointed Ms. Rachel A. Gonzalez as Executive Vice President and General Counsel, effective 22 September. Rachel brings tremendous business acumen and global experience to Sabre, and she will be a valuable addition to our leadership team as Sabre continues to accelerate our position as a leading technology solutions provider to the global travel industry, said Mr. Tom Klein, Sabre President and CEO. At Sabre, Ms. Gonzalez will lead a global team responsible for legal strategy, regulatory affairs, corporate compliance and government affairs. Prior to joining Sabre, Ms. Gonzalez served as Executive Vice President, General Counsel and Corporate Secretary with Dean Foods in Dallas, Texas. Previously, Ms. Gonzalez was Senior Vice President and Group Counsel with Affiliated Computer Services. Earlier in her career, Ms. Gonzalez was a partner with the law firm of Morgan, Lewis & Bockius, where she focused on corporate finance, mergers & acquisitions, SEC compliance and corporate governance. Ms. Gonzalez earned a bachelors degree in Comparative Literature with high honors from the University of California, Berkeley. She also earned a law degree from the Boalt Hall School of Law at the University of California, Berkeley. Sabre - AACO Partner since 2002 Jay Jones, senior vice president of Sabre in The Americas, said: We are excited to be the distribution provider of choice for Peruvian Airlines, as we fully support their understanding of regional air travel, and particularly the need to bring a broad range of convenient flight options to consumers no matter the reason of their trip or budget. Our technology team will now collaborate with Peruvian s IT staff, so we can contribute to their business growth by providing them the broadest reach to travelers in Peru and across Latin America. Peruvian Airlines is among the fastest growing airline businesses in Latin America and The Caribbean. Since it began operations in October 2009, the carrier has expanded their fleet to meet the hiking air travel demand, driven by a mix of affordable fares and mid-class passengers getting onboard. The airline currently serves multiple destinations for tourism and corporate travel, as Lima, Cusco, Tacna, Arequipa, Iquitos, Piura, and others. The airline plans to expand services to Bolivia, Ecuador, Chile, Venezuela, Cuba and the United States. Daily news on Issue 91 - Oct

42 Our Partners News Seabury Group expands cargo advisory team to support global aviation and transportation clients: The Seabury Group, a leading global advisory and professional services firm, today announced the expansion of its Amsterdam-based Cargo Advisory team in response to increased market demand for analytical products and advisory solutions for the aviation and transportation industry and to provide enhanced support for its growing worldwide client base. Dirk de Rooij has joined the company as Commercial Director Cargo, and Daniel dos Reis Miranda has been appointed Head of Business Intelligence & Data Analytics. Dirk de Rooij will lead efforts to further expand the Cargo Advisory database network, which incorporates more than 65 clients worldwide, including many of the industry s leading commercial airlines, integrators, forwarders, shipping lines, and airports. In his previous positions as Head of Community Integration & ecargo at CHAMP Cargosystems and Executive Vice President at OAG Cargo, Dirk was responsible for deployment of data communication products within the air cargo community. Daniel dos Reis Miranda will oversee the broad range of data products. He has 13 years of experience in the aviation industry, most recently serving as Head of Traffic Analysis & Forecasts at Amsterdam Airport Schiphol. In this position, he was closely involved in airport strategy, pricing, airport capacity and capex planning and the positioning of regional airports in the group. Daniel served as a representative of Schiphol in the Socrates consortium team, preparing bids for Brazilian airport concessions. Prior to Amsterdam Airport Schiphol, he held several research positions. Shell Aviation is a global supplier of Aviation Fuels and Lubricants, with a strong heritage of innovation of more than 100 years. We are active across all aviation segments, including commercial, business and general aviation; and our customers range from private pilots to the largest global airlines. Every day, at over 800 airports across some 40 countries worldwide, Shell Aviation fuels around 7,000 aircraft, refueling a plane every 12 seconds. The industry values us for our worldclass safety and operations standards, strong supply chains to deliver supply security, as well as our close collaborations with our customers and other stakeholders. Support for the aviation business in the Middle East: Shell Aviation has been active in the Middle East region since the 1960s, and aims to provide long-term support to its fast growing aviation industry by providing fuel and comprehensive services at our various airport locations in the Middle East, South Asia and Africa. Our extensive global network also enables us to support the region s airlines at many of their destinations around the world. We have been an industry partner of AACO since 2002, and have a team of professional and knowledgeable account managers based in the region who are dedicated to providing the best possible customer service to the regions airlines. Always at the forefront of innovation, Shell Aviation contributed to a global aviation milestone in 2009 when the world s first commercial passenger flight (operated by QR) from London Gatwick to Doha was powered by fuel made from natural gas by Shell. Track Record of Excellence: In recognition of its contribution to the region s aviation and airport industry, Shell Aviation was named Best Regional Fuels Provider at the Emerging Markets Aviation Awards (EMAA) for three consecutive years ( ). Shell Aviation was also recently voted by airlines as the Best International Fuel Supplier in the 2013/2014 Armbrust Awards. In addition, it has won Armbrust s Best Technical and Operational Performance award fourteen times in the awards 18-year history. Daily news on Seabury - AACO Partner since 2008 Shell Aviation- AACO Partner since 2002 SITA optimizes ground handling at Bahrain International Airport: Bahrain Airport Services Co. (BAS) has selected SITA to automate staff rostering and allocation at Bahrain International Airport in a new five-year deal. SITA s resource management system will help the ground handler achieve its objective by increasing the efficiency and productivity of its airport staff. SITA is providing BAS with a complete end-to-end solution that connects employees on the move and their mobile devices with back office systems. This ensures the ground handler can make decisions as needs change for more effective use of resources. For example if there are many aircraft arriving simultaneously, they can allocate more employees to certain tasks to improve efficiency. Sharjah International Airport confirms SITA s Common-Use success with five-year renewal: Sharjah International Airport, home to Air Arabia, has selected SITA to provide its AirportConnect Open passenger processing technology for another five years. SITA s AirportConnect Open is the only platform capable of providing an integrated approach to Common Use Terminal Equipment (CUTE), Common Use Passenger Processing Systems (CUPPS) and Common Use Self-Service (CUSS) kiosks, hosted on one platform. Passengers, airlines and retailers to benefit as Miami International and SITA cover the airport with beacons: Miami International Airport is the first airport in the world to have a complete and open deployment of beacons. SITA announced that there are now beacons registered and available to users via the SITA Common-Use Beacon Registry which cover entrances, check-in, gate, baggage claim and valet parking zones throughout Miami International Airport. Each beacon broadcasts its identifier in the zone and this can be used by airlines, retailers and other partners apps to trigger useful content to passengers or staff. SITA - AACO Partner since 2008 Travelport and Alitalia sign full content agreement: Travelport announced the renewal of its multi-year full content agreement with Alitalia. The renewal of the full content agreement takes immediate effect, and enables the 67,000 Travelport-connected agents worldwide access to all of Alitalia s fares and inventory, including web fares, and ancillary offerings. The agreement also sees Alitalia signing up for Travelport s Rich Content and Branding technology, which is a key component of the Travelport Merchandising Platform. Rich Content and Branding will equip Alitalia with the ability to manage how its flights, fare families and ancillaries are visually presented and viewed on travel agency screens. Travelport adds e-travel technologies to roster of global duty of care solutions: Travelport announced a new agreement with e-travel Technologies Inc.. The e-travel Technologies product portfolio addresses liability concerns of travel professionals and travelers, and satisfies corporations duty of care responsibilities. It includes: travel alerts, travel advisories, and travel tracker databases and is available globally to Travelport-connected travel agents. Travelport and BCD Travel Sign New Multi-Year Global Agreement: Travelport announced it has entered into a long-term global agreement with travel management company BCD Travel, which operates in more than 100 countries globally and services about 30 percent of the top 100 largest companies in the world ranked by total annual airline volume. The new agreement expands Travelport s and BCD Travel s long-term partnership and eventually will provide BCD Travel s travel agents with Travelport Smartpoint, a dynamic and interactive desktop technology for improving agent productivity and customer service. The deal also will give BCD Travel access to Travelport s industry-leading Rich Content and Branding merchandising solution. Travelport - AACO Partner since 2000 Issue 91 - Oct

43 Our Partners News NUL Group extends IT support services contract with Unisys: Unisys Corporation announced that it has been awarded an extension by NUL Group to continue providing IT third level support services for Unisys products, including high-end servers, to NUL for their customers in Japan. The two-year extension is valued at approximately USD 30 million. Under the latest extension Unisys Corporation will continue to provide engineering support for Unisys ClearPath and ES7000 servers and other products to the NUL Group. Unisys announces date of third-quarter 2014 financial results and conference call: Unisys Corporation (NYSE: UIS) said today that it will release its third-quarter 2014 financial results on Tuesday, October 21, 2014 after the close of trading on the New York Stock Exchange. Following the release, Unisys will host a conference call with the financial community from 5:30-6:30 p.m. Eastern Time to discuss the results. The company will offer a live, listen-only Webcast of the conference call on the Unisys Investor Web site at A replay of the Webcast will be available on the Unisys Investor Web site shortly following the conference call. Unisys Stealth wins two 2014 American Business Awards in new security software product category: Unisys Stealth has been named the recipient of the 2014 American Business Award (ABA) People s Choice competition as well as the Silver Award in the new security software category. The ABAs, also known as the Stevie Awards, were created in 2002 to recognize achievement in every facet of the workplace and to recognize the positive contributions of organizations and working professionals worldwide. Unisys Stealth beat out nine other finalists in public voting to win the ABA People s Choice Award in its category. Unisys - AACO Partner since 2014 THIS PAGE HAS BEEN LEFT BLANK ON PURPOSE Daily news on Issue 91 - Oct

44 AACO & RTC CALENDARS

45 AACO & RTC Calendars AACO CALENDAR October 2014 Sun Mon Tue Wed Thu Fri Sat AACO RTC CALENDAR October 2014 Sun Mon Tue Wed Thu Fri Sat AACO Aeropolitical Watch Group Meeting / Amman AACO Jet Fuel Tender Preparatory Meeting & Fuel Technical Group Meeting / Istanbul EU / EASA Operational Regulations Training Course / Amman Managing an Airline Station Course / Amman Principles of Air Transport Economics Course / Cairo Managing People Performance Course / Cairo Job Descriptions & Job Evaluation / Amman Business Etiquette Course / Amman Fraud Prevention Course / Cairo Aircraft Accident Investigation Course / Cairo November 2014 Sun Mon Tue Wed Thu Fri Sat MRO Steering Board Meeting / Cairo November 2014 Sun Mon Tue Wed Thu Fri Sat Aircraft Maintenance & Planning / Cairo Dangerous Goods Regulations Refresher Course / Amman Effective Communication Skills / Cairo IATA - Safety Risk Management / Cairo AACO 47th AGM / Dubai For additional information, kindly contact Mr. Mohamed Osman / Senior Manager RTC at rtc@aacortc.com Daily news on Issue 91 - Oct IATA - Airport Commercial Management / Amman IATA - Air Mercury Next Generation / Amman Performance of Training workshop / Cairo Ground Handling Agreements Course / Amman Commercial Agreements Course / Cairo Airline Marketing for Profit / Cairo

46 OUR MEMBER AIRLINES & INDUSTRY PARTNERS

47 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. Kuwait Airways (1954) 11. Royal Air Maroc (1957) 12. Yemen Airways (1962) 13. Royal Jordanian (1963) 14. Libyan Airlines (1964) 15. Emirates (1985) 16. Nouvelair (1989) 17. Oman Air (1993) 18. Qatar Airways (1995) 19. Palestinian Airways (1995) 20. Tassili Airlines (1997) 21. Jordan Aviation (2000) 22. Afriqiyah Airways (2001) 23. Etihad Airways (2003) 24. Air Arabia (2003) 25. Air Cairo (2003) 26. Petra Airlines (2005) 27. flynas (2006) 28. Nile Air (2006) 29. Rotana Jet Aviation (2010) 30. flydubai (2008) 31. Air Go Egypt (2010) AACO INDUSTRY PARTNERS Daily news on Issue 91 - Oct