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BUSINESS THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | JANUARY 2010 TRAVEL TRENDS TRAVEL TRENDS | READER’S LETTERS READER’S LETTERS | MOVERS & SHAKERS MOVERS & SHAKERS | REGIONAL NEWS REGIONAL NEWS The price is right How to keep abreast of changes to the value of your assets WHAT DOES THE FUTURE HOLD FOR MIDDLE EAST AIRLINES? Looking ahead ExecuJet’s MD looks forward to a positive start to the year MARKET MARKET

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Page 1: Aviation Business - Jan 2010

BUSINESSTHE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | JANUARY 2010

TRAVEL TRENDSTRAVEL TRENDS | READER’S LET TERS READER’S LET TERS | MOVERS & SHAKERS MOVERS & SHAKERS | REGIONAL NEWS REGIONAL NEWS

The price is rightHow to keep abreast of changes to the value of your assets

WHAT DOES THE FUTURE HOLDFOR MIDDLE EAST AIRLINES?

Looking aheadExecuJet’s MD looks forward to a positive start to the year

MARKETMARKET

Page 2: Aviation Business - Jan 2010

May we help you develop your plan? Visit www.aviationbiz.cessna.com or call +1.316.517.6367.

TIMIDITY DIDN’T GET YOU THIS FAR. WHY PUT IT IN YOUR BUSINESS PLAN NOW?In today’s corporate world, pity the poor executive who blinks. The good news is, in trying times like these, fortune tends to favor those who make bold, decisive moves. It’s simply about adjusting, not retreating, starting with a good, hard look at your flight department. Are you flying the right aircraft for your missions? Can you adjust capacity to meet demand? One thing is certain: true visionaries will continue to fly. Because, in tempestuous times, leaders recognize it’s not about ego. Or artifice. It’s simply about availing yourself of the full range of tools to do your job.

RISE.

Page 3: Aviation Business - Jan 2010

www.arabiansupplychain.com

JANUARY 2010VOLUME 09ISSUE 01 CONTENTS

What does the future hold for Middle East airlines? Oryx Aviation managing director Sebastian König explains that now is the time for airline CEOs to put their expert skills to good use, and it is the outcome of these skills that is determining which airlines will survive and which ones will fail in 2010. In addition, we profi le the plans of the region’s major airlines and ask their CEOs what they believe lies ahead for an industry hard hit by the global fi nancial collapse.

20 MARKET OUTLOOK

Etihad Airways appoints a new country manager. ADAT hires a chief operating offi cer. ExecuJet names its new Abu Dhabi rep and the GCAA bolsters its senior safety team.

MOVERS & SHAKERS

ExecuJet managing director Mike Berry explains how the company has held its own during the economic downturn.

27 FACE TO FACE

In the world of business aviation, Vistajet is keeping an optimistic outlook for the year ahead. In terms of freight, fi gures are on the rise and companies are responding by signing new deals and building on existing services. Industry suppliers are also experiencing a good start to the year, with a couple of newsworthy acquisitions at Dnata and a key contract win for Travelport.

SECTOR NEWS

IBA Group head of valuations and modelling Dr Stuart Hatcher asks ‘how can airlines keep abreast of changes to the value of their assets?’ One solution is the fi rm’s Jet Values 2 system, which allows for specifi cation distinctions to be made based on an asset’s worth both now and in the future, because as Dr Hatcher points out, no two aircraft are the same.

ASK THE EXPERT

20

14

26

The fi rst Bahrain International Airshow takes place this month, and we are being told to expect a totally diff erent type of event. Meanwhile, the Dubai Airshow has posted its fi nal visitor numbers; Air Arabia CEO Adel Ali tells an audience of senior executives that the recession is simply history repeating itself; and, Oman Air is spending millions of dollars on a key multimedia advertising campaign.

06 REGIONAL NEWS

January 2010

30

01

27

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04

January 2010

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Will recoveryhappen this year?If expert opinion is to be believed,

then the answer is, yes. Industry analysts are predicting

that the Middle East aviation sector in particular, is likely to recover this year as the passenger traffi c and cargo revenues recorded signifi cant growth in the second half of 2009.

These growth fi gures have resulted in losses of Middle East airlines shrinking to US$300 million this year from a massive $1.2 billion in 2009, according to the latest reports from the International Air Transport Association.

Sarah Cowell, [email protected]

Despite the growth in passenger traffi c however, these signifi cant losses are due to the drop in yield against the backdrop of the fall in fares.

But, by next year the market forces will start operating more aggressively, say analysts, and the industry will be able to adjust to a higher level of yield.

Dubai starts recruiting for mega airportOne of the best green shoots is the announcement of DWC-AMI operation at the Dubai Airshow. It will galvanise the leadership of all airlines now in Dubai as the hub – a quantum leap in managing commercial cargo and executive passengers.Philbert Suresh, Chennai

Supersonic business jet fi rm seeks partnerA supersonic business jet is the right product for a global economy. Maximum effi ciency and compliance with all regulations is the correct formula. Aerion will succeed for sure.Ricardo, Mexico

Dubai World Central ‘almost complete’Does it sound like the King who wears no clothes? We have a guy working out there and he laughed at this comment as well.Dave, undisclosed location

GCC to centralise air traffi c control?It’s the greatest idea to solve current and near future problems. Regarding the growth of air traffi c, we need to establish such an airspace for direct routes, reduced workloads, improved safety and attracting more overfl ights. I hope this happens very soon.Ali, Tehran

Aviation Business AwardsI would like to congratulate Peter Baumgartner [Etihad Airways] for winning the award for sales and marketing manager of the year. He really deserves it for being such a devoted and talented man and for leading Etihad to become aviation’s world leading brand.Pearl, undisclosed location

Congratulations Royal JetCongratulations to Shane and Amna for winning Aviation Business awards. You deserve it.Cristina, Abu Dhabi

Got an opinion? Have your say at...

Page 7: Aviation Business - Jan 2010

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Page 8: Aviation Business - Jan 2010

06

January 2010 www.arabiansupplychain.com

Visit www.arabiansupplychain.com for the latest Middle East aviation newsbi l h i f h l ddl

BUSINESS

The fi rst Bahrain International Airshow will open its doors on January 21, 2010, bringing a totally different trade show concept to the region, said its organiser.

The three-day event will be held under Royal patronage at the Sakhir Airbase, and is brought to the Middle East by Bahrain’s Civil Aviation Affairs and Farnborough International, organiser of the well-estab-lished Farnborough Airshow in the UK.

It is solely a business to business event, catering for the civil, defence and busi-ness aviation markets, but the set-up of the show is quite different from what the industry has come to expect from interna-tional air shows.

With no exhibition halls it comprises just 40 chalets where participating com-panies will take up residence in luxury surroundings for the full three days.

Countdown to the inaugural Bahrain Airshow beginsVisitors can expect a totally new trade show concept to the region, says event organiser

Farnborough International exhibition and events director Amanda Stainer ex-plained the concept that has shaped the brand new event.

“It is a business to business event held under luxurious fi ve star surroundings, focused entirely towards the client.

“Forty companies from ap-proximately 40 countries are participating, providing an even mix of civil, commercial and defence organisations, and we have formulated a specifi c delegation programme for each sector.”

One sector in particular remains a strong growth market – private avia-tion – and a number of strong players will be participating.

The event comes hot on the heels of the Dubai Airshow, which was held in Novem-

ber, but Stainer said that the fi gures would not be affected by a saturated market.

“It is a totally different concept com-pared to that of previous international air-shows. All clients will be hosted in chalets with the static display and fl ight display

happening right in front of them. “It is a niche and small show,

and a very different trade event from Dubai.”

Hosting the airshow is a key move by the Bahrain government, which is keen

to establish the country as an attractive business and tour-

ism hub.Bahrain International Airport is un-

dergoing a multi-million dinar expansion programme, which will give the airport the capability to handle more than 20 mil-lion passengers a year by 2015.

40companies from

40 countries are takingpart in the Bahrain

Airshow

Page 9: Aviation Business - Jan 2010

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Page 10: Aviation Business - Jan 2010

08 REGIONAL NEWS

January 2010 www.arabiansupplychain.com

BUSINESS

People will continue to travel and the aviation industry will bounce back, Air Arabia CEO Adel Ali, said confi dently at the Arabian Business confer-ence in Dubai in December.

“Every time we have seen a recession, we have seen it coming back quickly,” he said, looking back at previous downturns in history.

“In 2010, we will see [the avi-ation sector] turning around; it won’t be a boom year, but we will see the trend in the right direction,” he forecast.

Ali pointed out that the global aviation industry was expected to lose US$11 bil-lion in 2009 and yields and passenger traffi c were expected to de-cline by 12%.

However, he was confi dent in the fu-ture as passen-ger numbers increased 7% in September, while Octo-

Air Arabia CEO sees green shoots of recovery

STRATEGY

Oman Air is spending US$10 million on a new international advertising campaign to pro-mote its new aircraft and on-board products.

The campaign will run across broadcast, print, on-line and outdoor media. The broadcast element will be run in key European and Asian markets, and online.

The print, online and out-door elements will include trade and consumer publica-tions in the UK, France and

Oman Air launches US$10m ad campaign

ber saw fi gures enter double-digit growth at 11%.

During the 2001 crisis, the aviation sector went through a decline; however, Ali pointed out that six months later it was back in growth, which lasted until the second part of 2008.

“It is as simple as history repeating itself,” Ali said of

the cyclical nature of the economy and sectors.

In No-vember, Air Arabia, the largest listed

Arab airline by market val-

ue, saw

third quarter profi t fall 9%. But, overall, Ali said 2009 had been a good year for the airline.

“Profi ts are up 6% on last year [2008]. We run a busi-ness model, that when people are cutting back, they will turn to.”

Ali added that the airline is expecting to make a profi t in 2010, “but it is conservative in value”.

“We don’t operate in a different way to low-cost carriers in Europe, but the European market has been much worse impacted than here. It has come down to a numbers game.”

Germany. Launching the campaign in London, Oman Air chief commercial offi cer Barry Brown said travellers were in for a surprise.

“Oman is a stunning des-tination, a taste of the ‘real Arabia’ that will thrill, delight and surprise visitors. How-ever, in many ways, Oman is Arabia’s best kept secret and, as Oman’s national airline, we want more people to have the opportunity to visit the country and to experience its hospitality and its culture.”

Chief commercial offi cer Barry Brown

says Oman is Arabia’s best kept secret

The campaign is a culmi-nation of the airline’s recent new route launches to Paris, Munich, Frankfurt, Male in the Maldives and Colombo in Sri Lanka; the introduction of two new Airbus A330 aircraft and a new Boeing 737; new economy, business and fi rst class cabins; and, new menus.

Oman Air’s next move will see the launch of the carrier’s new three-class service on the daily, direct non-stop route between London Heathrow and Muscat.

FAST FACTSOct 2003: Air Arabia launches

Home-base: Sharjah, UAE

Total fl eet: 20 Airbus A320s

Aircraft orders: 44 Airbus A320s

May 2009: Launch of Air Arabia Maroc

September 2009: Announces launch of Air Arabia Egypt

Adel Ali says the

recession is simply

history repeating itself

DATA

The Dubai Airshow set a new record in visitor numbers, with more than 52,000 attendees passing through the doors of Airport Expo, an increase of 18% from the 2007 event.

The fi ve-day show ran from November 15 to 19 and at-tracted a total of 52,978 indus-try professionals from some 138 countries.

While the UAE accounted for the largest country share, it represented less than a third of the overall tally at just over 17,000 visitors.

In addition, the show at-tracted its biggest-ever exhibi-tor numbers – 890 companies, with 150 fi rst-time partici-pants – plus an additional 7000 square metres in fl oor space.

The order book closed in excess of US$14 billion.

Dubai Airshow visitor numbers rise 18 per cent

6%rise in Air Arabia’s

profi ts in 2009

Page 11: Aviation Business - Jan 2010

REGIONAL NEWS 09

January 2010www.arabiansupplychain.com

787 takes its fi rst fl ight

FLEET

fl ydubai has taken deliv-ery of its sixth aircraft in as many months.

The newest Boeing 737-800NG was deployed on the low-cost carrier’s fi rst fl ight to Bahrain on December 13, 2009. It will also operate the Kathmandu route, which be-gan on December 15.

The Dubai-based carrier will take delivery of its next aircraft in March 2010.

TECHNOLOGY

Boeing’s 787 Dreamliner com-pleted its fi rst fl ight on Decem-ber 15, 2009 in front of a crowd of 12,000 people.

The 3-hour, 6-minute fl ight was the fi rst of a rigorous test programme through 2010, cul-minating in fi rst delivery in the fourth quarter.

Taking off from Paine Field in Everett, Washington, USA, it landed at Seattle’s Boeing Field.

During the fl ight, 787 chief pilot Mike Carriker and Cap-tain Randy Neville tested some of the airplane’s systems and structures, as onboard equip-

fl ydubai’s sixth aircraft arrives

FLEET

Emirates Airline has received two new Airbus A380s.

The two additional aircraft take the airline’s fl eet of super jumbo’s to seven, serving des-tinations including Sydney, Auckland, Bangkok, Toronto, Heathrow and Seoul.

From December 29, Emir-ates also began an A380 serv-ice to Paris.

In time for the handover of its new A380 aircraft in De-cember, Emirates Air-line had arranged fi nance agreements worth more than US$1.13 billion.

The fi nancing for these six aircraft was arranged and funded under two separate fi -nance agreements. The fi rst agreement, covering three A380 aircraft, has

More A380s for Emiratesbeen undertaken with Citi-bank, backed by a guarantee from the European Export Credit Agencies (ECAs). A sec-ond fi nancing agreement has

been arranged through Doric Asset Fi-nance and covers the

remaining three A380 aircraft. Emirates Airline president Tim Clark said the move confi rmed that the airline was in a secure fi nancial position, despite the global fi nancial crisis.

“We have never encoun-tered diffi culties in obtaining fi nance for our aircraft acqui-sition programme, with both international and regional banks comfortable with our fi nancial stability.

“As one of the world’s most profi table airlines, Emirates

has always honoured its fi nancial commitments and we continue to progress with our rig-orous fl eet and network expansion plans.”

The arrival of the seventh A380 forms part

of the 53 A380 aircraft that Emirates currently has on

fi rm order.

Tim Clark says Emirates is

fi nancially secure

The Boeing 787 Dreamliner shortly after take-off from Paine Field, Washington

ment recorded and transmitted real time data to a fl ight test team at Boeing Field.

“Today is truly a proud and historic day for the global team who has worked tirelessly to design and build the 787 Dreamliner – the fi rst all-new jet airplane of the 21st century,” said vice president and general manager of the 787 programme Scott Fancher.

“We look forward to the up-coming fl ight test programme and soon bringing ground-breaking levels of effi ciency, technology and comfort to air-lines and the fl ying public.”

53total number of A380

aircraft on order by Emirates

Page 12: Aviation Business - Jan 2010

REGIONAL NEWS

January 2010 www.arabiansupplychain.com

10

DATA

Losses of Middle East air-lines are predicted to shrink to US$300 million in 2010 from $1.2 billion this year amid a growth in passenger demand, according to a new report by the International Air Trans-port Association (IATA).

Global airline losses in 2010 will total $5.6 billion, about half the $11 billion defi cit that IATA predicted for last year, the report added.

It said passenger demand, after a decline of 4.1% in 2009, may grow by 4.5% in 2010 as the industry rebounds from the recession, IATA director gener-al and CEO Giovanni Bisigna-ni said in comments published by newswire Bloomberg.

“The worst is likely behind us,” Bisignani said. “For 2010, some key statistics are moving in the right direction.”

IATA, which represents 230 airlines carrying 93% of inter-national traffi c, estimated that jet fuel will represent 26% of operating costs in 2010.

In addition, European air-lines will generate the larg-est losses of any region at $2.5 billion, while North American carriers may cut losses to $2 bil-lion from $2.9 billion.

Asia-Pacifi c carriers are forecast to lose $700 million, improving from $3.4 billion in 2009.

African carriers will lose about $100 million, unchanged from 2009.

The only region whose car-riers will earn money is Latin America, which may see prof-its in 2010, as in 2009, of about $100 million, IATA said.

Mideast airline losses to drop DATA

Airlines, airports, air navi-gation service providers and manufacturers are calling for a net reduction in carbon emis-sions of 50% by 2050 compared to 2005.

In addition, the Interna-tional Air Transport Associa-tion (IATA) has pledged that the aviation industry will improve fuel effi ciency by an average of 1.5% per year to 2020.

Speaking at the United Nations Framework Conven-tion on Climate Change (UN-FCCC) in Copenhagen, IATA director general and CEO Giovanni Bisignani, said: “We are the only global industry coming to Copenhagen with a strong track record and a com-mitment to cut our emissions in half by 2050. These goals clearly show that the aviation industry is even ahead of its

Halve emissions by 2050

regulators in its approach to climate change.”

But Bisignani was clear that the aviation industry could not achieve its goals alone.

STRATEGY

Gulf Air has introduced a se-ries of initiatives, which will result in an annual reduction of around 33,000 tonnes of carbon dioxide (CO2) emissions from its aircraft.

The measures will be rolled out by the Gulf Air Fuel Con-servation Com-mittee, which is charged with look-ing at ways for the airline to reduce its carbon foot print.

Some of the measures in-clude fl ying a more direct route to certain destinations result-ing in the reduction of around 22,600 tonnes of CO2 emissions per year.

In another initiative, the airline has combined the two in-fl ight magazines, Gulf Life and the in-fl ight entertainment guide, On Air into one maga-zine. The new look, Gulf Life

magazine, is being produced using a lower grade (gsm) pa-per to reduce the overall weight carried on board. In addition, the airline will reduce the number of spare in-fl ight mag-

azines carried on board and instead make

provision for storage and replenishment on the ground at its Bahrain hub and out-

stations. The combined benefi t

of these measures will result in the reduction of approximately 600 tonnes of carbon dioxide emissions per year.

In another envi-ronment-friendly measure, Gulf Air has also reduced the amount of potable water it carries on board its

Gulf Air set to cut its carbon footprintfl ights by 25%, which will save around 1800 tonnes of carbon emissions each year.

Gulf Air CEO Samer Majali said: “What better occasion can there be than announcing our comprehensive carbon-emis-sion reduction measures, when countries of the world have

converged in Copen-hagen to discuss climate change?

“As a respon-sible corporate citizen we are fully com-mitted to this

global cause.”

“The only way that we can meet our targets is by working in cooperation with govern-ments through ICAO. I call on governments in Copenhagen to give ICAO a clear mandate to report back to COP-16 with a Global Sectoral Approach

that will enable the avia-tion industry to deliv-

er real results against concrete targets.”

IATA’s CEO proposed that re-sults should be

measured against targets using a number

of methods including, full ac-counting for aviation’s emis-sions as a global industrial sector, not by state; global co-ordinations of economic meas-ures to ensure that aviation will not pay more than once for its emissions; and access to global carbon markets.

Bisignani says the aviation industry

will need help to achieve lofty goals

Samer Majali hopes his

airline will downsize its

global footprint

33,000TONNESannual reduction of

CO2 emissions

2050target year for carbon

emissions to be reduced by 50%

Page 13: Aviation Business - Jan 2010

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Page 14: Aviation Business - Jan 2010

www.arabiansupplychain.comJanuary 2010

Visit www.arabiansupplychain.com for all the latest airport news

12

DATA

Dubai Duty Free is on track to do US$1.1 billion in revenue in 2009, an increase of around 3% year on year. Net profi t is set to grow faster, at around 11%, thanks to a number of cost con-tainment initiatives implement-ed by the airport retailer.

“2009 started a little bit shakily, like the rest of the duty free industry, and after a few months of the year we

Dubai Duty Free set to report revenue growthPromotions and special off ers help push revenue up 3% in 2009

Cavotec lands US$45m deal with Bahrain airportTECHNOLOGY

Cavotec Middle East will sup-ply a range of environmentally friendly ground service equip-ment to Bahrain Internation-al Airport, in a deal worth US$45 million.

The Dubai-based subsidi-ary of global engineering

group Cavotec MSL, will provide and install 18 pre-conditioned air systems – the cen-trepiece of the project – plus, pop-up units,

transformer sub-sta-tions, and 400Hz

power sup-ply systems. The deal was agreed

were down on last year in rev-enue,” said Dubai Duty Free (DDF) managing director Colm McLoughlin.

“But, we reckoned we should do something about it; we’re happy to say now [December] that we’re plus almost 3% on last year’s turnover.”

Amongst the measures taken were greater use of pro-motions, discounts and one-off special offers to entice reluctant

by Cavotec Middle East man-aging director Juergen Strom-mer and Bahrain Airport Com-pany CEO Dr Osama Al Ali.

“Responsible environmen-tal stewardship is a key aspect of the [Bahrain International Airport] expansion programme. These technologically advanced systems allow us to improve ef-fi ciency and environmentally friendly practice throughout air-craft operations,” said Al Ali.

“We are proud to support the Bahrain International Airport in their commitment to high-effi ciency green technologies,” Strommer added.

The order is a key element of Bahrain airport’s US$4.7 billion expansion programme, which will see the creation of 110 aircraft stands, including 87 with contact gates. Currently, the airport hosts 42 airlines.

customers to spend. Consump-tion of packaging, water and electricity was reviewed and kept under tight control.

Paid overtime has been kept down to a minimum and re-cruitment was put on hold for six months, but McLoughlin says there have been no en-forced layoffs at DDF.

Although revenue is up 3%, the airport’s passenger numbers have grown around 8% this

year. While that means each in-dividual passenger is spending less than before, McLoughlin says this is hardly surprising.

“People are being care-ful; there has been less money available,” he said.

2009 has been the fi rst full year of operation for Du-bai airport’s Terminal 3, and McLoughlin confi rmed that some aspects of the terminal’s layout were under review.

Emirates opens luxury lounge in Johannesburg

STRATEGY

Emirates Airline has opened a new luxury lounge in Johannes-burg, its fi rst in Africa and sixth worldwide in 2009.

Leather armchairs, compli-mentary gourmet chef prepared food, drinks, reading material and shower facilities are avail-able to premium passengers at Johannesburg’s OR Tambo In-ternational Airport.

The lounge can seat up to 135 guests and offers fl at screen TVs and free internet access.

Throughout 2009, lounges opened in Hamburg, Manches-ter, Dusseldorf, Mumbai and Beijing. In the months ahead Birmingham will come on stream, representing investment of more than US$72 million. In 2010, the Dubai-based carrier will launch fl ights to Tokyo.

Cavotec ME MD, Juergen Strommer

Emirates’ new lounge at Johannesburg’s OR Tambo International Airport

Page 15: Aviation Business - Jan 2010
Page 16: Aviation Business - Jan 2010

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c/o Airbus Middle East, Dubai Airport Free Zone · P.O. Box 54982 · West Ring Road, Plot 20 & 22 · Dubai · United Arab Emirates · Supplier Code: SGL04Phone: +971 4 7030 418 · Fax: +971 4 2995 853 · e-mail: [email protected]

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Piaggio appoints Air SynapsisFLEET

Dubai-based company Air Synapsis has been appointed by Piaggio Aero as its aircraft sales representative for the P180 Avanti II in both Jordan and Lebanon. Air Synapsis managing di-rector Karim Hijazi, said the Italian designed and built aircraft was well-suited to the GCC region’s needs. “The increasing demand of the Middle East market for cost effective regional travel solutions opens a large op-portunity to develop new business aviation services for which the P180 Avanti II is defi nitely the best fi t. “Unlike the light and very light business jets heav-ily affected by the region’s high temperatures the P180 Avanti II delivers outstand-ing performances in the most demanding conditions.

The Avanti’s large stand-up cabin and dramatically low operating costs places it far ahead of its competitors as the most cost-effective solu-tion available in the market,” added Hijazi.

Vistajet optimisticfor Middle East growthSTRATEGY

VistaJet has reported strong demand for its services in the Middle East over the past 12 months and expects business to continue expanding.

The company, currently has, on average, between three and fi ve of its fl eet of Bombardier jets fl ying in the region on any given day and anticipates that

this fi gure will rise in 2010. The company saw its revenue grow by around 22% in the fi rst half of 2009 and by the end of last year it had taken delivery of seven new aircraft, taking its total to 25.

Vistajet has plans to add a similar number this year – a por-tion of which will be allocated to the Middle East market.

Vistajet founder and chair-man Thomas Flohr, said: “Currently, it [the Middle East]

makes up around 10% of our business. However, we expect that fi gure to increase, and by

2012, I would see the region repre-

senting around a third of our total revenue intake.”

Karim Hijazi says the P180 is suitable

to withstand demanding conditions

25planes in Vistajet’s

fl eet, including seven new aircraft received

in 2009

Page 17: Aviation Business - Jan 2010

January 2010www.arabiansupplychain.com

Get up-to-date supplier news at www.arabiansupplychain.com

15

Ge

TECHNOLOGY

Jazeera Airways has signed an agreement with Travelport to provide Galileo and Worldspan-connected travel agents access to the airline’s published fares and inventory. It will be the fi rst time that the airline has dis-tributed its content through the GDS channel.

Operating from Kuwait, the airline is the Middle East’s

fastest-growing regional carrier (according to fi gures by Dnata) with plans for a secondary hub and ambitions to fl y 82 routes in the Middle East within the next fi ve years.

“With an impres-sive travel agency network and an ex-tensive global foot-print, Travelport will

provide us with an important distribution channel that will help make Jazeera fares more

accessible to our guests. Travelport is a valued

distribution partner and will become even more so as our route network ex-pands,” said Jazeera

Airways CEO Ste-fan Pichler.

TECHNOLOGY

Etihad Airways is using work-force management software pro-vider, Kronos to improve man-agement processes for its 3900 cabin and fl ight crew members.

The crew planning soft-ware system will help the Abu Dhabi-based airline increase the quality of its crew plan-ning and improve the stabil-ity of crew rosters.

Etihad Airways chief op-erations offi cer Richard Hill, said the airline’s growth plans had made the procurement de-cision necessary.

“In the next 10 years, the number of Etihad Airways fl ights will triple and it is vi-tal that we have modern crew planning systems in place to optimise crew utilisation. The adoption of the Kronos AD

Kronos gets Etihad’s crew in order

Airline to participate in the GDS channel for the fi rst time

Jazeera Airways gets connectedwith Travelport

Dnata acquires airport handling operations in UK

BUSINESS

Dubai-based fi rm Dnata will acquire two of the UK’s leading ground handling operations.

The international airport services provider will acquire Plane Handling Ltd., which is currently part of the Go-Ahead Group plc, providing cargo and ramp handling services at London Heathrow Airport and

Travelport director for air-line supplier services, MEA Khalid Alkhalidi, added: “We are committed to bringing the best content to our travel agents through the most effi cient chan-nel. We are pleased to add such an innovative airline to our list of customers and look forward to supporting Jazeera Airways’ distribution needs during this exciting phase of its growth.”

Dnata’s president, Gary Chapman

cargo handling services at Man-chester Airport.

In addition, Dnata is also taking over passenger and ramp handling operations at Termi-nal 3 and 4 at London Heath-row Airport from Aviance Ltd, which is also part of the Go-Ahead Group plc.

These acquisitions, which are valued at US$25 million, mark Dnata’s entry into the airport handling business in the UK. The transaction will be completed on January 30, 2010.

It takes Dnata’s operations portfolio to 19 airports in some eight countries.

Dnata president Gary Chap-man, said: “We are very pleased to add Heathrow and Manches-ter to our growing international network. These businesses will be a perfect fi t with our busi-nesses across the globe.”

82routes to be launched by Jazeera Airways during

the next fi ve years

OPT solutions will enable us to increase operational effi -ciency and improve our stra-tegic resource planning proc-esses to sustain our long-term business strategies.”

Etihad’s chief operations

offi cer, Richard Hill

Page 18: Aviation Business - Jan 2010

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Page 19: Aviation Business - Jan 2010

SUPPLIER NEWS 17

January 2010www.arabiansupplychain.com

MRO

Abu Dhabi-based airline, Etihad Airways could soon be carrying out aircraft line maintenance work on behalf of other major European air-lines, following a successful recent audit of its mainte-nance, repair and overhaul (MRO) capabilities.

Etihad passes EU audit

STRATEGY

Air Arabia Maroc is plan-ning further expansion into European countries with the help of general sales agent (GSA), AVIAREPS.

The Morocco-based arm of low-cost carrier, Air Ara-bia is eying expansion in markets such as Belgium and Luxembourg, the airline has confi rmed.

Air Arabia has entered into the markets of Germany, the Netherlands and Switzer-land already, but from De-cember 13, all sales, market-ing and ticketing activities in the newly contracted coun-tries are being carried out from AVIAREPS’ subsidiary in Brussels.

Air Arabia Maroc eyes new cities

The airline has been award-ed EASA Part 145 certifi ca-tion by the European Avia-tion Safety Agency (EASA), following an audit by the Swiss Federal Offi ce of Civil Aviation (FOCA).

The approval effectively means that Etihad Airways’ technical division is now ful-

ly accredited to provide line maintenance services on Air-bus A319, A320, A330, A340 and Boeing 777 aircraft types for all European carriers.

Etihad Airways execu-tive vice president, technical Werner Rothenbaecher, said: “This is an important step forward in the airline’s MRO capabilities and represents the culmination of a lot of hard work by the airline’s technical and quality assurance teams.”

Rothenbaecher added that Etihad would look to provide MRO services to European carriers both at its Abu Dhabi hub, as well as its other satel-lite bases overseas.

To obtain the certifi cation, Etihad had to submit a Main-tenance Organisation Exposi-tion (MOE), supported by a fully documented set of proc-esses and procedures.

The EASA is an agency of the European Union (EU) with responsibility for spe-cifi c regulatory and executive tasks in the fi eld of civilian aviation safety.

Air Arabia Maroc howev-er, is reducing fl ight frequen-cies between Brussels and its base in Casablanca, from four weekly fl ights to three weekly fl ights from March 28, 2010.

Despite launching just eight months ago, the airline

TECHNOLOGY

GE Aviation supplied the com-mon core system (CCS) and the landing gear system on the 787 Dreamliner’s fi rst fl ight.

GE’s common core system serves as the aircraft’s central nervous system and provides the primary computing envi-ronment for the Dreamliner.

“We are delighted to share this historic milestone with Boeing and provide the latest integrated systems technolo-gies for the 787,” said GE Avi-ation Systems president and CEO Lorraine Bolsinger.

GE’s common core system is the backbone of the Boe-ing 787’s computers, networks and interfacing electronics. The remote data concentrators (RDC) are designed to consoli-date inputs from the aircraft’s systems and sensors and dis-tribute it via the Rockwell Collins avionics full duplex switched Ethernet network.

The CCS was developed on the Wind River VxWorks 653 partitioned operating en-vironment and was designed, manufactured and tested at GE’s US locations in Wash-ington and Michigan and at its Cheltenham UK facility.

In addition, the test-fl ight Dreamliner aircraft, which fl ew from Washington to Boe-ing’s airfi eld in Seattle, was powered by GE Aviation’s GEnx-1B engine.

GE Aviation powers 787 Dreamliner fl ight

A team of Etihad Airways’ engineers work on the nose wheel of an aircraft

currently operates connecting fl ights to a number of Europe-an destinations via its Moroc-co hub, including Marseilles, Paris, Lyon, Milan, Bologna, Barcelona, Istanbul and Am-sterdam, using three new Air-bus A320 aircraft.

From its Casablanca hub, Air Arabia Maroc fl ies to cities such as Paris and Milan

Page 20: Aviation Business - Jan 2010

18 CARGO NEWS

January 2010 www.arabiansupplychain.com

BUSINESS

fl ydubai, Dubai’s fi rst low-cost carrier, has secured a logistics contract from Danzas.

The company, which is a joint venture between Al Tayer Group and DHL, will coordinate the logistics re-quirements from transporting fl ydubai’s ‘Above and Below Wing’ consumables.

“We want our customers to experience good fl ights, good service and good prices. In or-der to fulfi ll that ambition, we have to be confi dent our logis-tics partners can deliver what we need, when we need it,” said fl ydubai CEO Ghaith Al Ghaith. “Danzas belongs to the world’s largest logistics com-pany and has extensive experi-ence of working in the Middle East, which makes them the ideal choice to handle fl ydubai’s logistics requirements.”

Danzas – which has facili-ties in Dubai Cargo Village,

fl ydubai wins Danzas deal

TECHNOLOGY

Emirates Group-owned busi-ness technology provider Mer-cator has gone live with its cargo product, SkyChain in Latin America.

The IT solution has been chosen by TACA Cargo, which

offers specialised cargo and courier services across North, Central and South America.

SkyChain, aimed at airline cargo companies, is designed to ‘maximise customers’ per-formance, help them raise their service quality and opti-mise their resources’.

TACA Cargo director Dan-te O Klüver, said: “TACA was looking to reassess its IT core systems functionality to enable a successful implementation of its long term strategy.

“We are very pleased that Mercator was able to work with us so successfully on this solution. We are confi dent about the positive impact Sky-Chain will have on our ability to deliver the level of service our customers have grown to expect from us.

“Information will be better shared, more accurate and im-prove productivity.”

SkyChain links with Latin America

Dubai Airport Free Zone, Jebel Ali Free Zone, Dubai Invest-ment Park and Sharjah – pro-vides transport by ocean, road and air as well as warehousing and distribution services.

DHL Global Forwarding EMA region CEO and presi-dent Enver Moretti said his company already had a strong association with the Middle East aviation industry and

Ghaith Al Ghaith (l) and Enver Moretti sign the deal at the 2009 Dubai Airshow

both parties were looking for-ward to the benefi ts of a long term arrangement.

“Partnering with fl ydubai is going to be extremely reward-ing for us both. This is very much a ‘strengthen and sup-port’ exercise, where we can take care of the non-core as-pects of the fl ydubai business and help the airline maintain its growth,” he said.

Mercator vice president, sales and market development Duncan Alexander, added: “We were delighted to be asked to provide SkyChain’s many benefi ts to TACA.

“In turn they brought with them knowledge and experi-ence of their own local air freight market, enabling us to create a tailor made solution for them.

“One of SkyChain’s many benefi ts is its ability to host multiple airlines within the same group – making it per-fect for TACA.

“These airlines can then share critical information, bringing substantial benefi ts in terms of organisational syn-ergies and cost advantages.”

Other airlines using the SkyChain system include, Swiss World Cargo, Sri Lankan Airways and Emir-ates SkyCargo.

NETWORK

Qatar Airways Cargo has boosted its dedicated freight-er services to Senai Inter-national Airport in Johor Bahru, Malaysia.

The new twice-weekly schedule has been introduced to improve access to Johor Bahru, a central spot in the south of the Malaysian penin-sula, which offers an alterna-tive entry point for shipments into South East Asia.

It has also been combined with Qatar Airways Cargo road haulage operations to Kuala Lumpur and Singapore for customers looking to ship beyond Johor Bahru.

“With increased capacity into the region, the revamped operation allows customers from Europe, Africa and the Middle East an alternative route on a freighter operator with proven reliability,” the operator explained in a state-ment issued in December.

The announcement came as the airline forged ahead with expansion plans for the Far East and Australasia.

A route launch to Mel-bourne, Australia took place on December 6, 2009 and daily non-stop fl ights from Doha to the cosmopolitan city of Sydney are planned for early 2010, highlighting the airline’s increasing presence in the region.

Qatar Airways Cargo builds on Malaysian services

Duncan Alexander says SkyChain helps airlines to share information

Page 21: Aviation Business - Jan 2010

January 2010www.arabiansupplychain.com

ARABIAN SUPPLY CHAIN.COM 19

EDITOR’S CHOICES

The online home of:

Still hungry for more news?

for regular updates on the Middle East aviation industry

SPECIAL REPORT

Aviation Business AwardsWe reveal the winners ofthis year’s Aviation Business Awards 2009

www.arabiansupplychain.com/special-reports

Most popular headlines

1 Boeing 787 takes its fi rst fl ight

2 Photo Special: Boeing 787 fi rst fl ight

3 Countdown to the inaugural Bahrain Airshow begins

4 Gulf Air set to cut its carbon footprint

5 Aabar plans 2 hour fl ight from Abu Dhabi to LA

Most talked about suppliers

1 Etihad AirwaysMRO provider

2 MercatorLogistics technology

3 DanzasLogistics company

WEBSITE STATISTICS

Q atar Airways will launch international fl ights to three new cities this year.

Tokyo, Bengaluru and the Turkish capital, Ankaru will all be added to

the airline’s schedule over an eight-week period from the beginning of February, 2010.

India’s largest technology hub of Bengaluru, formerly known as Bangalore, will be the fi rst of the three launches, with daily fl ights.

During April, Ankara will be added to the route network, as will the Japanese capital

Tokyo, which will be served daily via Osaka. Seoul, which is currently served via Osaka will become a non-stop direct service from the end of March.

Qatar Airways CEO Akbar Al Baker, said: “At a time when airlines globally are retrenching, cutting capacity, trimming staff, parking planes, or cancelling aircraft orders altogether, Qatar Airways is doing exactly the opposite, remaining well on track to offer the travelling public with greater choice of fl ights and destinations.”

ONLINE ANALYSIS

Up, up & awayDid the airshow mark a revival in the aerospace industry’s fortunes?

www.arabiansupplychain.com/analysis

Qatar Airways announcesnew routes for 2010

Akbar Al Baker says his airline isbucking the trend followed by other carriers

Page 22: Aviation Business - Jan 2010

January 2010 www.arabiansupplychain.com

WHAT DOES THE FUTURE HOLDFOR MIDDLE EAST AIRLINES?

MARKETMARKET

owards the end of 2008, it be-came evident that the Mid-dle East was unlikely to be

spared from the devastating affect of the global recession. Aviation ex-perts argued that, in this region at least, we would see an impact on the bottom end of the aviation mar-ket, while the legacy carriers would be afforded the foresight of cutting

costs pre-emotively. But, quite the opposite has occurred.

While the legacy carriers continued to tough out the economic downturn, it was the low-cost carriers that saw a healthy growth in their fi gures during 2009.

Take Air Arabia for example. During the fi rst nine months of 2009, the company reg-istered a turnover of US$400 million. That is just 2% lower than the fi gure recorded dur-ing the same period last year. Not a bad result considering the critics’ argument that the re-

gion’s low-cost carriers would be the fi rst to fl ounder as the fi nancial crisis took hold.

The sharp economic downturn has dev-astated airlines in other parts of the world however, and due to the recession, the future is uncertain, even in the oil rich countries of the Middle East.

“In times where the entire industry is con-solidating, most of today’s airlines are fac-ing the challenge of survival,” explains Oryx Aviation managing director Sebastian König, “and navigating through the rough waters of stiff competition requires a mixed skill-set.

“A signifi cant drop in demand paired with a constant growth of low-frills carriers and a higher volatility in oil prices have all resulted in a situation where the industry’s fundamen-tal problems are being disclosed,” he adds.

But a handful of airlines have managed to handle their cost base expertly, and despite the hard times, have increased their shareholder value. So why have some carriers survived,

20 MARKET OUTLOOK 2010

Page 23: Aviation Business - Jan 2010

MARKET OUTLOOK 2010 21

January 2010www.arabiansupplychain.com

MARKETwhile others have failed? “A common fea-ture of those successful airlines is that all of them persistently lowered their cost base without jeopardising the core of their busi-ness, meaning that the art of cost cutting lies in the ability to reduce expenditures along the service value-chain where it doesn’t show to the customer,” König explains.

“Having talked to several senior execu-tives in the Middle East, as well as in other regions across the world,” he adds, “the majority emphasised that the exercise of relentless cost cutting has to dissolve into each and every departmental function, eventually resulting in a substantial para-digm shift of an airline’s employees.”

A case in point, it seems, is Gulf Air. The airline’s CEO, Samer Majali is mak-ing it his priority to adapt the troubled air-line according to changeable market con-ditions. The decision to fl y to fi ve cities in Iraq has been hailed by experts as an “ex-cellent one”, and Majali remains adamant that there needs to be a change of culture within the airline in order to establish it-self in a profi table position. “Altering the mindset of the staff could take a long time – maybe even a generation – so we have to ask them to give more than 100%,” he told Aviation Business in October.

König argues that quite often, where airlines fail however, is in conveying the sense of urgency needed to cut costs.

“Very often, cost cutting schemes sim-ply lack the profound structure required to tackle this issue in a holistic and sus-tainable manner, meaning that they are either not aligned with a company’s over-all business strategy, or, rather, they focus on quick-fi x solutions in order to present short-term success to the shareholders.”

But the biggest contributor to an airline’s downfall, König says, is a lack of support from the board of management. “In other words, just a few months down the line, many executives tend to question the viability of their cost cutting programme and eventually, may refrain from executing it.”

But how should an airline go about establish-ing a comprehensive and yet detailed cost reduction scheme? “Like all other stra-tegic decision-making processes, the ini-tial step is to set the scene”, says König, which

implies to accurately evaluate the com-pany’s status quo.

“Widely used theories that support these efforts are the SWOT (Strengths – Weak-nesses – Opportunities – Threats) model, Porter’s Five Forces and the so-called Gap Analysis. Properly deployed, they all serve the purpose of obtaining a profound ‘heli-copter view’ on the company’s starting position, with a view to benchmarking it against the competition.

“An implementation team must be formed, quarterly or bi-annual review meetings have to be scheduled, and opera-tional results must be measured,” König says. “It is then up to senior management to set a strategic direction, taking into con-sideration the company’s long-term plans, cost cutting goals, future trends and, of course, constraints. Finally, the delivery of the action plan has to be ensured.”

Unfortunately, cost reduction is only one part of the business, however. In times of increasingly fi erce competition, yields also

have to be maintained in order to se-cure positive operational results at the

end of an airline’s fi nancial year, and as transparent and easy as all of this may sound, most companies fail to execute their cost cutting plans, simply because of poor in-

ternal communications, or a lack of trust in the board of management,

König adds.

Read on to fi nd out what 2010 holds for some key Middle East airlines.

I n terms of the recession, HH Sheikh Ahmed bin Saeed Al Maktoum, chair-man and chief executive of Emirates Airline & Group, says that the global

meltdown has really tested the carrier’s mettle during 2009.

However, recent fi gures show Emir-ates net profi t jumped 165%, at US$205

million, during its current fi nan-cial year ending September

30, 2009, compared to $77 million for the same period in 2008.

But it is not all good news. Revenue for the same period

totals $5.4 billion, 13.5% lower compared with $6.2 billion re-

corded last year, largely refl ecting lower passenger and cargo yields.

Despite the tricky market conditions, between March and September, the airline carried more than 13 million passengers and more thsn 700,000 tonnes of cargo. In addition, it added eight new aircraft to its fl eet, launched two new destinations and upped its route frequencies.

Looking ahead, Sheikh Ahmed, who is widely regarded as one of the most astute airline bosses in the business, is gearing up to celebrate Emirates Airline’s 25th year of operation this year.

He recalls the instructions he received leading up to the launch date of the air-line, back in 1985.

“His Highness Sheikh Mohammed said, ‘we have nine months to prepare’. It was a big job. People think you buy a plane and fl y it where you like. It’s not that simple.”

EMIRATES AIRLINE

A growth of low-frills carriers ... [has] resulted in a situation where the industry’s

fundamental problems are being disclosedSebastian König, managing director, Oryx Aviation

165%Emirates Airline’s net profi t increase to September 2009

compared to 2008

Page 24: Aviation Business - Jan 2010

22 MARKET OUTLOOK 2010

January 2010 www.arabiansupplychain.com

Air Arabia group CEO Adel Ali predicts 2010 to be a year of consolidation.

“The global wave of mergers and acquisitions began to take shape even before the economic downturn started, and will probably gather further pace in 2010,” Ali tells Aviation Business.

He believes this ‘healthy trend’ in mergers and acquisitions will stabilise the market and indi-cate its increasing maturity.

But, a lack of stability is not something the Middle East’s fi rst low-cost carrier need worry about. It has re-cently announced a net profi t for the fi rst nine months of 2009 of US$92 million, an increase of 6% compared to the same period in 2008.

Not only that, during the fi rst nine months of 2009, the company registered a turnover of $400 million, just 2% lower than the fi gure recorded during the same period last year.

The airline served more than 2.96 mil-lion passengers during the abovemen-

tioned period, an increase of 14% com-pared to 2.6 million passengers during the same period last year.

But it is Air Arabia’s average seat load factor that remains impressive, which from March to September, 2009 – stood at a strong 79%, and, for the industry as a whole, there remain signifi cant grounds

for optimism, he adds.“The recovery will come

early to the region – and the collective future for the industry is secure. In its place regional carriers will have to turn their atten-

tion to environmental is-sues, including reduced

emissions and improved fuel effi ciency.”

Despite the challenges that lie ahead, Air Arabia’s future is bright. From March, its third hub in Egypt will serve Eu-rope, the Middle East and Africa and its 300-room ho-tel in Sharjah will be com-plete by April 2010.

AIR ARABIA

I n 2009, Kuwaiti airline, Jazeera Airways, became the fastest growing airline in the Middle East, according to the lat-

est passenger fi gures released by Dnata.As the 10th largest carrier operating

from Dubai International Airport, the airline carried 582,490 passengers in the third quarter of 2009, an increase of 65% on the 352,572 passengers fl own during the same period last year.

The increase was refl ected in the airline’s profi ts for the quarter, when it booked US$56 million in revenues and re-corded a profi t of $2.7 million.

Since taking over as CEO in June, Stefan Pichler has been working to develop the brand into becoming the leading network carrier in the Middle East. In October, he

told Aviation Business that the air-line’s strategy would be to chase

the highest revenues available, the business sector.

“Our airline currently has the highest on-time perform-ance with 93% in the Middle

East, which is very signifi cant to the business traveller.”

In 2010, the strategy will fo-cus on frequency increases that will

benefi t the network as a whole, he says, making the airline more sustainable dur-ing the downturn.

“We will continue to strengthen our network and gain market share in 2010, but will focus on sustainable profi tability.”

With 30 aircraft on order, the next one will join Jazeera’s fl eet this month.

JAZEERA AIRWAYS

H aving received its fi rst Airbus A320 towards the end of last year, Saudi Arabian Airlines (Saudia) is well underway with

its fl eet modernisation plan.Saudia director general Khalid Almol-

hem says the new aircraft will be deployed on routes to Europe and to the Indian sub-continent from the airline’s hubs in Riyadh and Jeddah.

Saudia has a promising future due to the country’s three main international air-ports being turned into ‘airport cities’.

Up to 30 private aviation fi rms will develop Jeddah, Riyadh, and Dammam and the land around them into interna-

tional gateway airports with plans for huge commercial of-fi ces, malls, ho-tels, conference halls, and serv-ice agencies to be established.

SAUDI ARABIANAIRLINES

79%Air Arabia’s average seat

load factor from March to September 2009

93%Jazeera Airways’ current

on-time performance ratein the Middle East

Page 25: Aviation Business - Jan 2010

MARKET OUTLOOK 2010 23

January 2010www.arabiansupplychain.com

G ulf Air will kick off its realign-ment programme in 2010, with the aim of becoming a commer-cially viable business by 2012.

The airline’s CEO made 2009 the year to begin turning the troubled company into a fi nancial success.

In his fi rst three months as Gulf Air’s chief executive (he joined the airline in Au-gust, 2009), Samer Majali executed a ‘struc-tural review’, which has seen the airline re-entering the Iraq market and streamlin-ing its operational costs.

However, the Bahrain-based business remains reli-ant on government support in order to stay afl oat and in a major step toward becom-ing self-suffi cient, Majali has released details of his three year strategy plan, beginning this year.

“For the fi rst time, Gulf Air will focus specifi cally on Bahrain, serving the King-dom with higher frequency, non-stop services to more destinations across three continents,” Majali explains. “We will also

provide better services to some of the world’s leading fi nancial markets, helping to

support Bahrain’s signifi cant fi nancial services sector.”Its international network is also

being re-worked with the business ex-panding its operations to more than 20 new destinations in the Middle East, Afri-ca, Asia and Europe. Majali adds however, that up to 15 other routes and a number of

GULF AIRoverseas stations that are currently drain-ing the carrier’s coff ers will be suspended or closed, including the airline’s cur-rent operations to Shanghai, Hyderabad and Bangalore.

In terms of aircraft investment, Ma-jali said the airline will focus primarily on narrow-body aircraft and regional jets, in-cluding a number of long-range, narrow-body aircraft which will connect Bahrain to key fi nancial centres in Europe and Asia. The carrier is considering selling fi ve of its Airbus A340 aircraft, along with other un-stipulated types.

Majali adds that throughout the re-alignment process, a number of redun-dancies will be inevitable.

“This programme will require some tough decisions as we look to address what remains a challenging and volatile marketplace. We will be reviewing all cost elements that do not provide equivalent or greater value and within that context we will be looking to signifi cantly re-size our workforce over this three-year pe-riod, therefore some redundancies will be inevitable.”

Q atar Airways’ CEO could be taking the tough line on air-craft deliveries in 2010.

In November, Akbar Al Baker said he would cancel orders with Boeing if the delivery dates of its troubled 787 Dreamliner aircraft slipped further. The airline chief has been less than im-pressed with the way Boeing has han-dled customers that are waiting for the 787 to join their fl eets, saying, “if this is the way they treat customers as they have tried to treat us then … yes, they will not only lose me but they will lose others.”

On a positive note, 2009 was a good year for the airline in terms of new routes, and the network development is set to continue into 2010. Two points in Europe are planned and a second Australian route is ex-pected to begin this year.

QATAR AIRWAYS

T he fi nal quarter of 2009, was a busy time for Oman Air’s CEO, Peter Hill. The airline chief led the carrier into fi ve new markets

in Europe and the Indian Ocean, ordered fi ve Embraer 175 aircraft – one of which will be operated by the Royal Omani Po-lice – signed multi million dollar MRO and technology contracts, and launched a US$10 million advertising campaign.

Prior to these events, the airline had al-ready launched its new business and fi rst class products that it claims are superior to those in its competitive set, showing that 2010 could be a signifi cant year for the Muscat-based carrier.

OMAN AIR

FIVEAirbus A340 aircraft

belonging to Gulf Air could be sold this year

TWOfurther European routes

will be launched by Qatar Airways in 2010

Page 26: Aviation Business - Jan 2010

24 MARKET OUTLOOK 2010

January 2010 www.arabiansupplychain.com

R oyal Jordanian’s new CEO, Hus-sein Dabbas has picked up where Samer Majali left off , and recorded a net profi t of US$36

million in the fi rst nine months of this year, helped, in part, to a 20% reduction in operational costs.

Looking ahead, Dabbas says the airline has exhausted the region in terms of new route launches, so it is a case of improving schedules and increasing frequencies. But the growth plans do not end there.

The airline is on the hunt for a merger deal, and further codeshare agreements could see it entering new markets.

Dabbas has not ruled out the possibil-ity of RJ merging with a European airline as carriers such as Lufthansa German Airlines threaten to topple Middle Eastern carriers.

“We would like to fi nd an airline that fi ts our ambitions. In order to grow we need to share operational costs, such as fuel sharing and cater-ing costs, etc. Consolidation is the fu-ture and we will use alliances as a means of facilitating travel,” he says.

ROYAL JORDANIAN

ETIHAD AIRWAYS

It seems the UAE’s national carrier, Etihad Airways is set to maintain its steady growth in 2010. Currently, the Abu Dhabi-based airline has more

than 50 aircraft and a fl ight network of 58 destinations, which, in the fi rst quarter of this year, will expand to include the Japa-nese cities of Nagoya and Narita.

Product enhancements in all three cabins and new code share agreements complete Etihad’s strategy for 2010.

The airline’s CEO remains cautious of the year ahead, however. “We are al-ready starting to see signs of an upturn in 2010, but the next twelve months will still be tough for airlines as they strive to recover from one of the toughest periods the industry has ever encountered. While we can expect to see people’s appetite for fl ying return – and therefore healthy seat factors - pressure is likely to remain on yields.

“Competition for customers remains intense but Etihad is in a much stronger position than many other carriers. Its re-cent investment and product innovation will ensure its survival,” he adds.

25years of operation will be celebrated by Emirates Airline

15routes will be suspendedor closed by Gulf Air

30private aviation fi rms willbegin developing Saudi Arabia’s three main airports

2European routes will belaunched by Qatar Airways

300rooms will open at Air Arabia’s three-star Centro Hotel in April

KEY STATS FOR

2010

58destinations operated

by Etihad at the endof 2009

20%reduction in Royal

Jordanian’s operationalcosts in 2009

Page 27: Aviation Business - Jan 2010

25

January 2010www.arabiansupplychain.com

TRAVEL TRENDS

MOBILE TECHNOLOGYThe capabilities to plan itinerar-ies, track fl ights, receive travel alerts and serve as a boarding pass is making mobile devices indispensa-ble to travellers. “SITA research shows that 80% of airlines are planning to off er mobile check-in capability by 2012,” explains SITA regional director Jihad Boueri. “Not one airport has deployed all these technolo-gies yet, but we’re getting there.”

TRAVELCENTRIC BUYINGThe demand for managed travel pro-grammes that revolve around the entire li-fecycle of reservation, rather than just the purchase of travel is set to soar. Labeled as travel-centric buying, travel em-ployees can be kept informed about a guest’s plans pre-trip, including their profi le, prefer-ences, historical behaviour and situational circumstances.

WHOLE BODY IMAGE SCANNERSChecking through security is set to be a re-vealing experience in 2010, with the rollout of whole body image scanners that can see beneath clothing. The technology will replace traditional x-ray machines, and it is currently being tested at certain airports around the world. The whole body image scan is expected to become standard at some airports, although it has faced harsh criticism for being an invasion of privacy.

VIDEO CONFERENCINGThe business travel sector could face an-other tough year as 2010 is billed as the year for video conferencing. You may think you have heard it all before, but de-velopers, such as Telepresence, have built on technology that can reproduce a high-quality interaction. In addition, the latest ‘halo rooms’ that enable meetings around a virtual conference room are already proving popular.

AIRBORNE COMMUNICATION SYSTEMSWifi connectivity and broadband will be-come standard in aircraft from as soon as this year, says US consultancy fi rm, CWT. Suppliers, such as Aircell and Satcom 1 pro-vide complete packages to both the business and commercial aviation sectors, which do not necessarily involve purchasing new and ex-pensive equipment.

BUDGET TRAVELThe rise of no-frills airlines is set to continue in 2010, and this time

they are planning to make a major impact in the hospitality industry.

Air Arabia will open its hotel in Sharjah, while Air Asia boss Tony Fernandes is hot on the trend with a new Malaysian ho-tel that off ers hotel rooms for 20 cents a night. Fernandes plans to open 150 hotels like this around the world by 2012.

HOLIDAY PACKAGESA number of airlines, including Air Arabia and Jet Airways, are off ering holiday pack-age services either via an online portal or through a travel agent. Travellers could

save substantial dollars by booking fl ights, hotels, and excursions at

the same time through the air-line they choose to travel with, says Jet Airways acting CEO

Nikos Kardassis.

ENVIRONMENTFrom 2010, airlines with operations to, from and within the European Un-ion (EU) are required to monitor data in preparation for the EU’s emissions trading scheme in 2012. Consultant Sebastian Gallehr says, “Our advice here is to take a step back and use the time available to approach this from the business perspective.”

COST CUTTINGMergers, alliances and operational cost cuts are set to continue in 2010. The commercial aviation industry recorded billion dollar losses in 2009, and al-though the financial upswing is expect-ed to begin this year it will only be made possible by the forging of new partnerships, say air-line chiefs.

COMPETITIONThe new fuel-effi cient Airbus A380 will im-pact competition on international routes by shaving approximately 15% off costs per seat. On domestic routes, budget carri-

ers will continue to apply downward pressure on fares and drive growth. As a result, airline competition will inevitably increase in the short-term and decrease in the medium-term, say industry insiders.

hen

pressAs ainevtermterm

Page 28: Aviation Business - Jan 2010

January 2010 www.arabiansupplychain.com

When used with the ‘My Fleet’ func-tion, the system will also generate full portfolio valuations, both current and for the future.

In addition, JV2 enables companies to construct and manage their own fl eet of aircraft from scratch, however big or small. Their fl eet can contain any number of individual aircraft selected from the fl eet of current Western build

commercial models, as well as custom aircraft that can be tailored to specifi c needs. As many different fl eets as re-quired can be created and sub-divided into portfolios, for quick and easy ‘at a glance’ management.

The system contains detailed specifi -cations on all the aircraft listed within the system. This includes many details that have a direct bearing on the valu-ation, such as delivery date, Maximum Take-Off Weight (MTOW), engine type, current hours and cycles, as well as range and fuel capacity. The aircraft serial number, current registration, owner and operator are also provided. Every value opinion produced also gives informa-tion on the specifi c value effect. This is included in the report document, in ad-dition to the specifi c values requested – giving a detailed one page analysis every time. IBA tries to keep reports to a single page ‘snapshot’ value opinion, which can easily be inserted into existing models/re-ports or distributed among colleagues.

IBA is working to develop the next ‘add-ons’ to provide more functionality to the user. Two of these developments include full-life adjustments and the PDF store. With these two enhancements, us-ers can determine their end of lease com-pensation exposure and download the latest market reports as generated by the valuation team. Users have said these reports have proven invaluable in front of countless credit committees time and time again – so now IBA plans to make them more easily available.

As values hit rock-bottom, the indus-try is identifying that 2010 is the opti-mum time to make money in the long term, and IBA’s jet valuation system forms an important part of this strategy for all organisations operating in the avi-ation sector.

T hrough the thousands of air-craft appraisals the Internation-al Bureau of Aviation (IBA) has conducted over the years, the

valuation team has learnt that no two aircraft are the same – so why would they be valued in the same way and un-der the same parameters?

The Jet Values 2 (JV2) system, from IBA, uses advanced technology designed with this knowledge in mind.

It can allow for specifi cation distinc-tions to be made, taking account for modifi cations, or the various options manufacturers make available when sell-ing new aircraft. It will also factor in the retrofi t options that keep older aircraft fl ying for longer.

The main benefi t of the JV2 system is the ability to access valuation expertise on an asset’s worth, both now and in the future.

Over the past two decades, IBA’s team has seen all manner of business sce-narios, from cyclical trends with typical peaks and troughs, to unpredictable and hard to read depressions and upturns.

To gain a value opinion for most com-mercial aircraft in service, you can set the forecast length and infl ation percentage, request a lease rate, market value and soft value projection, whilst also choos-ing the output format. Couple this with a specifi cation adjustment tool, and you get an opinion that truly refl ects the value of the asset under analysis - not just a ‘text book’ example.

Question: How can airlines keep abreast of changes to the value of their assets?Expert: IBA Group head of valuations and modelling Dr Stuart Hatcher

ASK THE EXPERT26 ASK THE EXPERT26

The price is right

IBA’s team has seen all manner of business scenarios, from cyclical trends with typical

peaks and troughs, to unpredictable depressionsDr Stuart Hatcher, head of valuations and modelling, IBA Group

Dr Stuart Hatcher says diff erent aircraft should be

valued under diff erent parameters

Page 29: Aviation Business - Jan 2010

January 2010www.arabiansupplychain.com

FACE TO FACE 27

WEATHERINGTHE DOWNTURNTHE DOWNTURN

Did ExecuJet manage to grow as a business throughout 2009, despite the downturn?During the downturn it was reported that on a global basis most business activity was down by about 30%. At ExecuJet Middle East we experienced a drop in de-mand which was expected. It was always going to be diffi cult to meet the business plan for 2009, yet alone grow the busi-ness. That said, ExecuJet certainly held its own until the advent of summer and Ramadan, before reporting moderate im-provements through the fourth quarter of last year.

What signifi cant projects does the business have scheduled for 2010?For 2010, ExecuJet Middle East will be continuing with the development of the business plan, which is in line with the opening of the new Al Maktoum Inter-national Airport in Dubai World Central. The project plans to cater for the expect-ed growth of both the aviation industry as well as ExecuJet service solu-tions across the region. The new facility will allow us to offer a wider range of options for our clients and provide us with the opportunity to signifi -cantly expand on the amount of managed aircraft under the Middle East fl eet.

Would you consider adopting other revenue streams in order to boost rev-enue during the downturn?ExecuJet believes in the current business model, offering a comprehensive service proposition encompassing aircraft sales, management, charter, maintenance and FBO passenger processing. We believe

that part of the success in weathering the downturn has been as a result of the di-versifi ed revenue streams ExecuJet oper-ates already.

Do you plan to add to the company’s fl eet of aircraft in 2010?ExecuJet remains vigilant to grow the charter fl eet as the business activity picks up, ensuring that we have a balanced so-lution for our customers. In addition we will be fully accredited/compliant with ISBAO and thus provide the management platform for all privately managed aircraft within the region requiring a solution under such amendments.

Do you think the industry was harder hit by the fi nancial crisis than originally thought?A number of reports released early in 2009 refl ected senti-ment that this region would

not be as badly affected, how-ever I believe there is now gener-

al consensus that the aviation sector throughout the region has felt the im-pact to various degrees, with overall results showing business levels lower than most were expect-ing. As a company we prepared ourselves for a hard year which has now left us in a strong position.

So you see 2010 being a better year for the private jet business in the Middle East?We believe that whilst the general aviation sector enters the historically busy period through to the end of the fi rst quarter of 2010, the recovery which is expect-ed to refl ect mar-ginal growth over 2009 is going to be a diffi cult process. But with positive signs of re-covery already, we are all hoping for a good start to 2010.

ExecuJet managing director Mike Berry explains the company’s plans for 2010

30%reported global

drop in business jet activity during 2009

Overall results show business levels to be lower than most were expecting. As a

company we prepared ourselves for a hard yearMike Berry, managing director, ExecuJet

Page 30: Aviation Business - Jan 2010

January 2010 www.arabiansupplychain.com

28 AVIATION DATA

A SUMMARY OF LATEST INDUSTRY STATISTICS FROM AROUND THE WORLDKnowledge of passenger numbers is crucial to improving the aviation business, particularly during the current economic slowdown. Every month we bring you up-to-date industry fi gures

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

AVIATION FACTS & FIGURESFACTS & FIGURES

SEPTEMBER 2009/2008 YEAR-TO-DATE SEPTEMBER 2009/2008CITY/COUNTRY PASSENGERS CARGO MOVEMENTS PASSENGERS CARGO MOVEMENTS

(tonnes) % CHG (tonnes) % CHG (tonnes) % CHG (tonnes) % CHG (tonnes) % CHG (tonnes) % CHG

MIDDLE EASTABU DHABI, UAE 756,945 6.8 34,470 3.2 8285 8.3 7,174,294 7.5 275,942 2.4 74,758 8.3

BAHRAIN 714,069 8.4 25,680 (10.3) 8400 4.3 6,681,927 2.0 254,097 (8.6) 76,179 1.2

BEIRUT, LEBANON 463,913 27.0 5884 (11.2) 5901 22.0 3,785,831 25.6 53,090 6.8 49,275 24.1

DUBAI, UAE 3,190,408 19.5 168,335 2.7 22,354 7.2 30,068,739 8.0 1,366,881 0.4 205,555 2.6

KUWAIT 641,683 25.9 17,883 16.0 7851 20.1 6,174,144 12.4 148,344 8.9 73,127 10.5

MUSCAT, OMAN 337,358 21.4 5650 11.6 4617 25.8 3,293,460 9.5 45,446 2.6 39,753 17.1

SHARJAH, UAE 439,644 7.9 35,710 (3.9) 5342 1.3 4,179,354 4.8 303,386 13.7 47,394 1.3

AFRICAACCRA, GHANA 120,205 2.4 3727 (19.4) 1638 11.5 1,031,854 0.2 34,931 (9.9) 14,909 9.5

CAIRO, EGYPT 1,310,105 6.9 20,721 (2.9) 12,508 5.8 10,661,169 (0.7) 210,267 0.5 105,036 3.1

CAPETOWN, SA 612,361 (1.9) ***** ***** 7340 (5.1) 5,603,524 (6.5) ***** ***** 69,075 (5.1)

CASABLANCA, MOROCCO 483,476 6.2 3808 (16.9) 6060 8.5 4,710,327 0.8 41,328 (6.7) 53,195 (2.0)

DAR ES SALAAM, TANZ 116,387 (5.2) 1587 (15.9) 4992 (9.4) 1,039,019 (11.2) 14,034 (21.2) 42,720 (7.2)

JOHANNESBURG, SA 1,478,446 (2.6) 19,637 (22.7) 16,917 (5.1) 12,977,126 (7.4) 177,792 (25.8) 150,272 (6.5)

MARRAKECH, MOROCCO 219,667 (0.0) 68 25.3 2268 2.3 2,191,013 (6.2) 1185 8.3 21,687 (9.3)

SHARM EL SHEIKH, EGYPT 596,972 8.0 ***** ***** 4454 7.6 5,277,712 (7.6) ***** ***** 40,051 (8.5)

ASIA PACIFICBANGKOK, THAILAND 3,172,301 22.4 94,374 (5.4) 20,947 9.7 29,018,442 (5.1) 736,642 (20.9) 189,887 (2.0)

BEIJING, CHINA 5,357,300 7.7 141,500 16.7 40,790 7.8 48,500,397 19.8 1,029,930 (0.2) 364,144 16.6

MANILA, PHILIPPINES 1,766,225 10.2 33,283 10.8 17,196 8.9 18,074,077 10.1 245,100 (9.6) 169,357 12.5

MUMBAI, INDIA 1,888,044 15.1 48,014 0.2 18,925 3.3 17,825,940 (4.5) 413,916 (3.5) 178,752 (2.8)

NEW DELHI, INDIA 1,947,090 21.2 41,049 0.7 19,661 3.8 18,147,525 3.1 343,971 (1.0) 180,007 0.6

SINGAPORE 3,063,650 6.0 142,934 (12.4) 20,474 6.5 26,685,513 (4.6) 1,196,965 (17.4) 180,087 3.2

SYDNEY, AUSTRALIA 2,827,798 5.3 ***** ***** 24,141 (3.0) 24,302,409 (1.9) ***** ***** 215,295 (4.4)

TOKYO, JAPAN 5,717,124 (2.3) 68,171 (4.8) 27,714 (1.0) 46,239,970 (7.3) 553,127 (10.8) 251,156 (1.3)

EUROPEFRANKFURT, GERMANY 4,606,673 (4.7) 164,463 (6.4) 40,150 (4.7) 38,557,207 (6.1) 1,332,823 (17.0) 348,119 (5.5)

LONDON, UK 5,790,275 (0.3) 115,670 (6.9) 38,465 (4.6) 49,971,597 (2.3) 963,889 (14.2) 352,358 (2.6)

MADRID, SPAIN 4,242,033 0.1 27,679 (6.2) 37,021 (4.1) 36,625,224 (7.5) 228,736 (14.3) 327,600 (9.2)

MUNICH, GERMANY 3,138,118 (3.6) 19,331 (12.6) 35,323 (9.3) 24,619,997 (7.3) 166,091 (16.4) 300,412 (8.9)

PARIS, FRANCE 5,040,644 (4.3) 151,350 (7.2) 44,340 (7.4) 44,128,063 (5.8) 1,321,450 (14.1) 399,896 (6.3)

NORTH AMERICAATLANTA 6,982,052 0.3 49,403 (5.2) 78,315 0.5 66,542,475 (2.2) 399,978 (19.9) 730,726 (0.7)

CHICAGO 5,132,725 (8.1) 105,173 (6.3) 69,430 (4.8) 48,691,216 (10.8) 802,650 (22.4) 620,983 (7.9)

DALLAS FORT WORTH 4,389,321 2.0 51,759 2.6 53,171 (0.7) 42,212,452 (2.7) 452,576 (9.9) 477,485 (3.8)

LOS ANGELES 4,510,651 1.0 132,138 2.1 43,939 (5.7) 42,510,492 (8.0) 1,068,158 (14.8) 407,679 (16.0)

T he improvement trend continued in October 2009, with airports reporting an increase of 1.8% in total global traf-fi c. Continuing growth in Asia Pacifi c and Middle East markets also contributed to the improving overall results,

with the latter recording a year-on-year increase in total passen-gers of 8.7%. Global traffi c has continued to climb since May 2009, with domestic traffi c leading the renewed demand curve, notably from Indian airports reporting particularly good results.

Page 31: Aviation Business - Jan 2010

January 2010www.arabiansupplychain.com

AVIATION DATA 29

SOURCE: Bureau of Transportation Statistics (www.transtats.bts.gov)

02 O

ct 0

9

09 O

ct 0

9

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23 O

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09

20 N

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04 D

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9

260

290

320

350

380

410

Planned capacity growth for top 10 carriers between North Africa and Planned capacity growth for top 10 carriers between North Africa and Western Europe (OAG Data January 2010 versus January 2009)*Western Europe (OAG Data January 2010 versus January 2009)*

AIRLINEAIRLINEWEEKLY CAPACITYWEEKLY CAPACITY WEEKLY FREQUENCYWEEKLY FREQUENCY WEEKLY SEATSWEEKLY SEATS

ASK MillionASK Million Change (%)Change (%) TotalTotal Change (%)Change (%) TotalTotal Change (%)Change (%)

AIGLE AZUR 46 0 204 2 35,836 2

AIR ALGERIE 50 11 283 12 41,901 15

AIR FRANCE 66 6 246 7 38,228 6

TUNIS AIR 68 5 368 7 52,562 5

BRITISH AIRWAYS 36 38 70 35 13,136 32

EGYPT AIR 139 13 265 10 51,728 16

KLM-ROYAL DUTCH AIRLINES 23 15 30 11 6894 14

LUFTHANSA GER-MAN AIRLINES 27 -34 70 -17 12,253 -21

TURKISH AIRLINES 37 54 106 47 18,764 54

AIR ARABIA MAROC 51 0 168 0 25,200 0

Planned capacity growth for top 10 carriers between North Africa andPlanned capacity growth for top 10 carriers between North Africa andMiddle East (OAG Data January 2010 versus January 2009)*Middle East (OAG Data January 2010 versus January 2009)*

AIRLINEAIRLINE

WEEKLY CAPACITYWEEKLY CAPACITY WEEKLY FREQUENCYWEEKLY FREQUENCY WEEKLY SEATSWEEKLY SEATS

ASK MillionASK Million Change (%)Change (%) TotalTotal Change (%)Change (%) TotalTotal Change (%)Change (%)

AIR ARABIA 26 86 62 63 10,044 76

EMIRATES 78 18 78 26 21,310 16

ETIHAD AIRWAYS 21 -9 38 -10 6400 -9

GULF AIR 11 -15 30 -6 5458 -14

JAZEERA AIRWAYS 16 45 62 51 10,230 51

MIDDLE EAST AIRLINES 2 100 28 100 4180 100

OMAN AIR 8 33 14 0 2968 36

QATAR AIRWAYS 59 9 94 7 18,894 7

ROYAL JORDANIAN 12 33 100 19 12,030 34

SAUDI ARABIAN AIRLINES

58 23 133 7 34,879 30

Planned capacity growth for top 10 carriers between Middle East and Asia/Pacifi c Planned capacity growth for top 10 carriers between Middle East and Asia/Pacifi c (OAG Data January 2010 versus January 2009)*(OAG Data January 2010 versus January 2009)*

AIRLINEAIRLINEWEEKLY CAPACITYWEEKLY CAPACITY WEEKLY FREQUENCYWEEKLY FREQUENCY WEEKLY SEATSWEEKLY SEATS

ASK MillionASK Million Change (%)Change (%) TotalTotal Change (%)Change (%) TotalTotal Change (%)Change (%)

AIR ARABIA 127 74 298 59 48,276 71

EMIRATES 1315 34 940 20 284,970 23

ETIHAD AIRWAYS 370 21 324 10 70,604 9

GULF AIR 217 -1 247 -4 51,928 -6

JAZEERA AIRWAYS 5 -50 10 -62 1650 -62

MAHAN AIR 37 37 30 88 9240 63

OMAN AIR 75 14 192 9 31,300 13

QATAR AIRWAYS 513 33 455 16 105,821 23

ROYAL JORDANIAN 34 -3 38 12 6394 -5

SAUDI ARABIAN AIRLINES

270 91 195 55 64,701 82

Planned capacity growth for top 10 carriers between Middle East andPlanned capacity growth for top 10 carriers between Middle East andWestern Europe (OAG Data January 2010 versus January 2009)*Western Europe (OAG Data January 2010 versus January 2009)*

AIRLINEAIRLINEWEEKLY CAPACITYWEEKLY CAPACITY WEEKLY FREQUENCYWEEKLY FREQUENCY WEEKLY SEATSWEEKLY SEATS

ASK MillionASK Million Change (%)Change (%) TotalTotal Change (%)Change (%) TotalTotal Change (%)Change (%)

EMIRATES 814 6 504 5 165,850 6

ETIHAD AIRWAYS 206 20 192 32 40,976 26

QATAR AIRWAYS 298 12 276 10 63,612 12

IRAN AIR 47 -2 64 7 13,414 0

JAZEERA AIRWAYS 3 50 8 33 1320 33

MIDDLE EAST AIRLINES 52 11 112 19 20,950 14

ROYAL JORDANIAN 53 13 138 13 18,934 12

GULF AIR 93 -3 106 -5 21,094 -4

MAHAN AIR 17 42 24 41 5040 21

SAUDI ARABIAN AIRLINES

45 -10 41 -24 10,338 -17

*Data is for week of 4-10 January, 2010 against 5-11 January, 2009. Regions follow IATA defi nition. E-mail: [email protected]

Fuel Price IndexThe fuel index is based on the average price

of aviation fuel in fi ve key spot markets (Rotterdam, Singapore, New York, US Gulf and US West Coast)

EMIRATES SKYCARGO FUEL PRICE INDEXEMIRATES SKYCARGO FUEL PRICE INDEX

Index100 = 53.5 US cents per US gallon

AIRLINE ONTIME STATISTICS & DELAY CAUSES: OCTOBER 2009AIRLINE ONTIME STATISTICS & DELAY CAUSES: OCTOBER 2009

Air carrier delay 5.26%

Diverted 0.20%

Ontime 77.27 %

Cancelled 0.99%

Aircraft arriving late 7.20%

Weather delay 0.52%

National aviationsystem delay 8.52%

Security delay 0.03%

27 November373

9 October341

23 October387 4 December

380

Page 32: Aviation Business - Jan 2010

RECRUITMENT

January 2010 www.arabiansupplychain.com

TO ADVERTISE HERE CONTACT:Fareed DuberyTel: +971 4 435 6339Email: [email protected]

MOVERS & SHAKERSGCAA hires senior safety advisorIn keeping with the General Civil Aviation Authority’s (GCAA) re-structuring policy, it has taken on David John Chapman as senior safety advisor. Fol-lowing the crea-tion of two new departments

– the aviation safety department and the security and infrastructure department – Chapman will be required to oversee the application of better regulated, and cost effective safety systems. Prior to the move, Chapman held the position of group director of the safety regulation group at the UK Civil Aviation Authority. In addition, the GCAA has confi rmed the appoint-ment of the fi rst Emirati permanent representative of the UAE on the council of the International Civil Aviation Organisation (ICAO). Aysha Al Hamili will be the fi rst lady and the youngest representative in the ICAO council. A graduate pilot from the Royal Jordanian Air Acad-emy, Al Hamili will assist the UAE in playing an increased role in the international aviation arena.

Please email your ‘movers and shakers’ information to [email protected]

Etihad appoints new country managerEtihad Airways has appointed Ken Mar-shall as its country manager in Nepal. Based in Kathmandu, Marshall will take over from Kumar de Silva, to oversee the airline’s operations in Nepal. Marshall has been with the Abu Dhabi-based

airline for fi ve years, previously serving as sales manager for Pakistan. He has also held senior management positions at British Airways, Emirates and Swiss International Airlines.

ADAT announces new COOAbu Dhabi Aircraft Technologies (ADAT) has appointed Juergen Haacker as chief operating offi cer (COO). He joins ADAT from the International Air Transport Association (IATA), where he served as director of operations. The ADAT senior management team is also bolstered by Paul Horstink, who joins as vice president of airframe services, David Hope, vice president of technical services and Talal Yahiya Al Riyami as executive vice president of quality and safety management. ADAT is wholly owned by the Mubadala Development Company.

EcEasmBMftoMt

airline for five years, previously serving

100

P

AFI KLM takes on new senior VPFabrice Defrance will replace Bruno Delile as AF Industries KLM Engineering & Maintenance senior vice president of commercial and business development. Defrance has worked for Air France for a number of years in roles in the aircraft maintenance arm of the airline, as well as a stint in the Europe/North America sales department. His new position will see him assuming responsibility for the upkeep of some 1230 aircraft belonging to 150 airlines.

ExecuJet gets AbuDhabi representativeFollowing the news that Aircell has appointed ExecuJet as its fi rst authorised dealer in the Middle East, the airborne com-munications provider has hired Shoukry Shokralla as sales and service representative in Abu Dhabi. Shokralla will work closely with ExecuJet Middle East as it completes requisite dealer training and begins to work with Aircell customers.

GIAsDslotd

– the aviation safety departm

st as it completes requisite

Page 33: Aviation Business - Jan 2010

January 2010www.arabiansupplychain.com

RECRUITMENT TO ADVERTISE HERE CONTACT:Andrew EllisTel: +971 4 435 6337Email: [email protected] TO ADVERTISE HERE CONTACT:

Nick LoweTel: +971 4 435 6364Email: [email protected]

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Page 34: Aviation Business - Jan 2010

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22 23 24 2517 18 112 13 14 15

06 07 08 09 10033022011

January 2010 www.arabiansupplychain.com

EVENTS LISTING

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A listing of trade shows, conferences and seminars relating to the Middle East aviation industryEVENTSEVENTS CALENDAR

24 25 FEBRUARY 2010Indian Business Aviation ExpoMIU Events, in association with lo-cal partners, is launching the fi rst dedi-cated business aviation event for the Indian market. The event will provide participants with a detailed insight into how business aviation in India is likely to develop and how to fully understand the characteristics and needs of this vast market. It will be the role of the Indian Business Aviation Expo 2010 (IBAE) to set the agenda for the business avia-tion market and to provide and agree best practice. VENUE: New DelhiEMAIL: [email protected]: www.miuevents.com/ibae-10

17 19 JANUARY 2010IntersecFor the fi rst time in its 12-year history, the Intersec conference will focus entire-ly on disaster management and dealing with disasters – be they natural or man-made. A line-up of speakers has not yet been released, but topics will draw on themes from the exhibition to include health and safety, disaster management and fi re and rescue. Timely topics such as the effects of global warming and how to deal with medical pandemics will also be explored.VENUE: DubaiEMAIL: [email protected]: www.messefrankfurtme.com/intersec

28 FEBRUARY 1 MARCH 2010Aircraft Interiors Middle EastBrought to you by the organiser of the Dubai Airshow, F&E Aerospace is holding its second Aircraft Interiors Middle East (AIME) event in Dubai. Located at the city’s Airport Expo, the two-day conference and exhibition is of use to operators seeking the ultimate in aircraft refi nement, connectivity and effi ciency, and gives suppliers direct access to airline decision-makers. The event will be co-located with MRO Middle East - F&E’s maintenance, repair and overhaul event.VENUE: DubaiEMAIL: [email protected]: www.aime.aero

9 10 FEBRUARY 2010Business Travel & Meetings ShowOnline visitor registration has opened for this London-based event and it could save you the standard entry fee of GBP30 (US$60) if you are quick to sign up. The website and the show have been revamped and updated in line with the show’s rebrand-ing to incorporate more MICE content. It is billed as Europe’s leading travel and meet-ings event, and could be well worth a visit if you are involved in the corporate/business jet and premium travel sector.VENUE: LondonEMAIL: [email protected]: www.businesstravelshow.co.uk

28 FEBRUARY 1 MARCH 2010MRO Middle EastThe MRO Middle East conference and exhibition is designed to offer the new-est and most innovative concepts and best practices, while encouraging the advancement of the airline and aircraft maintenance repair and overhaul indus-tries in the Middle East. Speakers will address the current and future forecast for this market, cost and staffi ng issues, supply chain trends, and a wide variety of other concerns. Opening remarks will be delivered by HH Sheikh Ahmed bin Saeed Al Maktoum.VENUE: DubaiEMAIL: Via websiteWEBSITE: www.aviationweek.com

2 7 FEBRUARY 2010Singapore AirshowThe Singapore Airshow is Asia’s larg-est aerospace and defence event, as well as one of the top three air shows in the world. In previous years, the event has attracted such names as ST Engineer-ing, BAE Systems, Boeing, Lockheed Martin and Rolls Royce International. The 2008 Singapore Airshow sealed more than US$13.4 billion worth of trade deals and attracted 30,000 trade visitors, and, impressively, more than 90,000 public visitors.VENUE: SingaporeEMAIL: [email protected]: www.singaporeairshow.com

3 4 MARCH 2010Aerospace & Defence Training ShowMiddle East Aerospace and Defence event organisers F&E Aerospace have teamed with specialist simulation and training providers Halldale Media to produce the ADTS event, which takes place in March. ADTS will feature an exhibition of the latest training and simulation offerings for regional airlines and air forces and will incorporate two simultaneous conferences. The event is supported by some key industry players including, Emirates and the AACO.VENUE: DubaiEMAIL: [email protected]: www.adts.aero

23 25 MARCH 2010Passenger Terminal ExpoThe global event for 2010 will be held in Brussels, Belgium and will bring together more than 200 suppliers for airport and airline teams to meet. The conference agenda will include more than 200 speakers to discuss a number of subjects including terminal design; management and planning; baggage handling; security; border control and check-in, amongst others. As usual, networking events will include one-to-one meeting opportunities, dinners and cocktail evenings.VENUE: BrusselsEMAIL: [email protected]: www.passengerterminal-expo.com

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28FEBRUARY

AIME comes to Dubai

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in association with

Under Royal patronage, the Kingdom of Bahrain is proud to announce the launch of the BahrainInternational Airshow 21 – 23 January 20 10. The Civil Aviation Affairs of the Kingdom of Bahrain andFarnborough International Ltd will present a dynamic and unique high-level global aviation trade show,offering exclusive business-to-business networking opportunities in a five star environment. The 3 dayevent, with a focus on the VIP corporate hospitality experience, is open to invited participants from thedefence, civil and business aviation sectors, enabling buyers and suppliers tomeet with visiting delegations.A daily flying displaywill further enhance the Bahrain International Airshow, creating a truly distinctiveevent in an important growth market area.

www.bahraininternationalairshow.com

BahrainInternational Airshow 2010

presenting the