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AN ITP MEDIA GROUP PUBLICATION

THE MAGAZINE FOR AVIATION EXECUTIVES


XECUTIVES IN
IN THE
THE MIDDLE
TH MID
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DLE ST | VO
LE EAST
EA
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VOLUME
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8 IIS
ISSUE
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UE 0
077 JULY 2019

TOULOUSE IATA
OPENS ITS AGM 2019
DOORS AVB heads to Seoul
After a two-year to attend the annual
break, Airbus holds meeting of 290+ airlines
its Innovation Days

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HIGHLIGHTS FROM THE
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GOING ALL IN
Martin Gauss, CEO of airBaltic, talks growth and a hybrid
business model centred on the Airbus A220-300

NEWS UPDATE | FACTS & FIGURES | IN-DEPTH ANALYSIS | TRADE COLUMNS


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AN ITP MEDIA GROUP PUBLICATION

THE MAGAZINE FOR AVIATION EXECUTIVES


XECUTIVES IN
N THE
THE MIDDLE
MIDD
DDL
DDLE
DLE
LE EAST
EAS
EEA
AS
AST
A S
STT | VOLUME
VO
VOLLUM
LU
U
UME
M 18
ME 8 IS
ISS
ISSUE
SSSU
SUE
UEE 07
U 07 JULY 2019

TOULOUSE IATA
OPENS ITS AGM 2019
DOORS AVB heads to Seoul
After a two-year to attend the annual
break, Airbus holds meeting of 290+ airlines
its Innovation Days

Download the
free Aviation

PARIS AIR Business app

July 2019
and be the first
to read the
SHOW 2019 latest issue on
your mobile
devices.
HIGHLIGHTS FROM THE
BIANNUAL AVIATION EVENT
p24

GOING ALL IN
Volume 18 Issue 07 CONTENTS
Martin Gauss, CEO of airBaltic, talks growth and a hybrid
business model centred on the Airbus A220-300

NEWS UPDATE | FACTS & FIGURES | IN-DEPTH ANALYSIS | TRADE COLUMNS

THE FRONT
Airbus pulls back the curtain and reveals A321XLR at Paris Air Show 8
Etihad Airways takes sole ownership of secure logistics firm 9
Jazeera Airways launches in-flight shop with Trolley 9
Amazon responds to FedEx with major air cargo fleet expansion 10
SITA hits 70th milestone; $1.7bn in revenues for 2018 11
UAE regulator urges airlines to review flight paths amid tensions 12
Jazeera: 2 million have flown from Kuwait International’s T5 in first year 13

14
AWARDS COVERAGE
16
18
AVB AWARDS 2019 PREVIEW
This month’s coverage of the awards
looks at the venue for the event

16
EVENT
ON THE WINGS OF TOMORROW
AVB heads to Toulouse to visit the
headquarters of the renowed aerospace
manufacturer Airbus

24
COVER STORY
BANKING ON A HYBRID APPROACH
Martin Gauss, CEO of airBaltic, sheds light on
EVENT
the Latvian airline’s hybrid model and why it has
A WEEK IN PARIS dedicded to go all in on the Airbus A220-300
The biannual air show drew over 316,000
visitors from across the world

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 3


CONTENTS

AVIATION
PARTNERS
MRO MTU Aero Engines secures orders worth $1.3bn at Paris Air Show 37
GROUND SERVICES Saudia Cargo transports 175 Tons of WWE equipment 38
TECHNOLOGY Melbourne Airport opts to extend digital technologies contract with SITA 41

32 34

AVIATION PARTNERS AVIATION PARTNERS


FLYDUBAI CELEBRATES 10 YEARS OF OPERATION ETIHAD AND SWAE PARTNER ON ENGAGEMENT PLATFORM
The airline has transported over 70 million passengers since it The platform enables employees to share and propose so-
began operations with a flight to Beirut on June 1, 2009 lutions to Etihad’s ongoing business challenges

28
EVENT
VISITING THE LAND OF THE MORNING CALM
AVB TRAVELLED TO SEOUL TO ATTEND LAST MONTH’S IATA
ANNUAL GENERAL MEETING, DISCOVERING THE LATEST DEVEL-
OPMENTS WITH THE GLOBAL AIR TRANSPORT MARKET, AS WELL
AS THE CHALLENGES THE INDUSTRY IS FACING IN 2019

4 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


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SalamAir takes ownership of second A320neo
A320neo features 20% fuel burn reduction and 14% lower cash operating costs per seat
RADAR

Airbus pulls back the curtain and


reveals A321XLR at Paris Air Show
Complementing the widely popular A321neo Family, the new aircraft features 30% lower
fuel burn per seat as compared to last-generation competitor aircraft
AIRCRAFT

Available to market from 2023, the aircraft’s range of 4,700nm is roughly 15% more than the A321LR.

On the sidelines of the Paris Air Show At the close of the biannual air show Other features of the A321XLR in-
2019, Airbus has announced the launch held at Paris–Le Bourget Airport, Air- clude a new permanent Rear Centre
of the A321XLR, an evolution on the bus recorded orders and commitments Tank (RCT) for more fuel volume, as
A321neo that boasts an impressive for over 240 A321XLR aircraft. A total well as modified landing gear for an
range of 4,700nm. of 10 customers were secured for the increased maximum take-off weight
Equally impressive as its improved new variant. (MTOW) of 101 metric tonnes.
range, the aircraft will also report- Amongst the high-profi le customers Additionally, the aircraft boasts an
edly achieve 30% lower fuel burn per was IAG that penned a deal with the optimised wing trailing-edge flap con-
seat than last-generation competitor French aerospace manufacturer for 14 figuration that maintains similar take-off
aircraft types. fi rm orders and 14 options for the new performance and engine thrust require-
Available to market from 2023, the air- aircraft. The fi rst to commit was Lessor ments as delivered by the A321neo.
craft’s range of 4,700nm is roughly 15% Air Lease (ALC, which signed a deal for The aerospace manufacturer also
more than the A321LR and features an 27 aircraft on the fi rst day of the show. noted that the optimised RCT holds
equal level of fuel efficiency. As a result, The A321XLR has been designed to more fuel than several optional Addi-
carriers will be able to operate lower-cost maximize overall commonality with the tional Centre Tanks (ACTs) while tak-
single-aisle aircraft on longer and less A321LR and the rest of the A320neo Fam- ing up less room in the cargo hold. This
heavily travelled routes, which today are ily while introducing minimal changes in turns frees up an underfloor volume
typically served by larger and less efficient needed to give the aircraft an Xtra Long that allows for increased cargo and bag-
wide-body aircraft. Range with increased revenue payload. gage on long-range routes.

8 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


Turkish Airlines adds Strasbourg to network
As its seventh destination to France, the carrier will service the route with four weekly flights
RADAR

Etihad Airways takes sole ownership


of secure logistics firm
Etihad Airways says it has acquired the shares held by Armaguard Linfox Group
(Australia) in Armaguard Valuables Management
ACQUISITION
Etihad Airways has announced that it
acquired the shares held by Armaguard
Linfox Group (Australia) in Abu Dhabi-
based joint venture Armaguard Valu-
ables Management (AVM).
The deal makes Etihad the sole share-
holder of the company which has been re-
named Etihad Secure Logistics Services.
In the six years since it began op-
erations, AVM said it has successfully
grown from a start-up to become a ma-
jor player in the UAE secure logistics
and valuables management market.
“The Armaguard Group is concen- c As sole shareholder of the company, Etihad has renamed the firm Etihad Secure Logistics Services.
trating on continuing to strengthen the
existing businesses in Australia and New servicing the global valuables market. We aging director Cargo and Logistics Ser-
Zealand while enhancing our services will continue to work together to ensure a vices at Etihad Aviation Group.
across South East Asia, and as such will seamless transition for our customers.” “This comes with increased invest-
withdraw from the UAE,” said Gary Al- “We are now in a position, with Eti- ment in the valuables transportation
len, CEO, Linfox Armaguard Group. had Secure Logistics operating as a and logistics segments, as well as the
“Etihad and Armaguard have shared a wholly Etihad-owned business, to bet- banking and fi nancial services sectors
long history of working together to provide ter support the home market in its next in Abu Dhabi and the UAE, compli-
the best solutions for our customers. We phase of growth and development,” menting the wider cargo and logistics
will continue as a strong network alliance, added Abdulla Mohamed Shadid, man- offering at Etihad.”

Jazeera Airways launches in-flight shop with Trolley


Low-cost carrier Jazeera Airways has announced a partnership with Kuwait-based conven-
ience chain to provide onboard retail experience
INFLIGHT our flights,” said Jazeera Airways CEO,
Low-cost carrier Jazeera Airways has an- Rohit Ramachandran.
nounced a partnership with Kuwait-based The onboard convenience store will
convenience chain, Trolley, to provide an be available for Business and Economy
onboard retail experience for passengers. Class passengers, in addition to the on-
With over 100 unique items, the on- board duty-free shop.
board convenience store will include per- “We are glad to be the first in the Mid-
sonal and children care, food and bever- dle East to introduce a unique concept of a
ages, games, skin care, and electronics, a joyable. We have the pleasure today to convenience store in the sky. Trolley will be
statement said. be partnering with Trolley which has serving its versatile range on-board Jazeera
“We continue at Jazeera Airways become a leading service provider in Airways to enable passengers to buy what
to bring convenience to our customers, Kuwait, to introduce their wide range of they need while travelling,” added Moham-
making their travel experience more en- travel-related retail products on-board all med Boodai, Trolley co-founder and CEO.

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 9


American Airlines launches flights from Munich
The carrier will reportedly service the route with a Boeing 787-9 Dreamliner
RADAR

Amazon responds to FedEx with


major air cargo fleet expansion
Amazon says it’s leasing an additional 15 Boeing 737-800 cargo aircraft from partner
GE Capital Aviation Services (GECAS)
AIRCRAFT

The aircraft at present only operate within the United States, on 20 air freight gateways in the Amazon Air network.

Following FedEx’s annoucement last work with the new planes, and will open However, increasing competi-
month that it was ending its air cargo more air facilities in 2019, including at tion with partner-rivals like FedEx
contracts with Amazon, the online retail Fort Worth Alliance Airport, Wilm- has created tension, which has led to
giant has responded with an announce- ington Air Park and Chicago Rockford further expansion.
ment that it will expand its in-house air International Airport. Meanwhile, the At the end of last year, Amazon an-
cargo fleet to 70 aircraft by 2021. main Air Hub at the Cincinnati/North- nounced more aircraft additions for
Amazon, which recently purchased ern Kentucky International Airport will Amazon Air, increasing the fleet from 40
SOUQ in the UAE and re-branded it open in 2021. planes to 50. Now, it says it’s on track to
as Amazon.ae, says it’s leasing an ad- “We’re delighted to support Amazon reach 70 planes by 2021, thanks to this
ditional 15 Boeing 737-800 cargo air- Air’s dedicated air network,” said Rich- new expansion.
craft from partner GE Capital Aviation ard Greener, GECAS Cargo’s senior vice “These new aircraft create additional
Services (GECAS). These will join the president. “The capability of the 737-800 capacity for Amazon Air, building on
five Boeing 737-800’s already leased freighter will further Amazon’s ability the investment in our Prime Free One-
from GECAS. to provide reliable and regional delivery Day program,” said Dave Clark, senior
The aircraft at present only oper- to its customers for years to come.” vice president of Worldwide Operations
ate within the United States, on 20 The Amazon Air network was first at Amazon, in an announcement. “By
air freight gateways in the Amazon launched in 2016 as Prime Air, with the goal 2021, Amazon Air will have a portfolio
Air network. of speeding up Amazon’s e-commerce deliv- of 70 aircraft flying in our dedicated
Amazon plans to expand this net- eries, particularly for its Prime members. air network.”

10 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


Sudan flights suspended
Emirates, Etihad, flydubai have ceased
flights to the country RADAR

SITA hits 70th milestone;


$1.7bn in revenues for 2018
The company also revealed that in 2018, its application-led
business overtook its connectivity business

c“Our application business now represents more than 50% of our revenues,” commented Dalibard.

PERFORMANCE has been the forefront of many indus-


At SITA’s annual general assembly that
was held on 19 June 2019, the air trans-
try advances in technology, such as the
deployment of the first common-use in-
Connecting
port IT provider celebrated its 70th an- frastructure at airports, the first airline future airports!
niversary and announced record revenues e-commerce booking engine and the first
of $1.7bn for the 2018 year. Last year also e-visa system for border management.
saw a turning point for the firm’s applica- “It is wonderful that as SITA cel- 22nd
tion-led business, which overtook its con- ebrates this anniversary we continue to International Exhibition
for Airport Equipment,
nectivity business. transform to meet our customers’ needs.
“We had a very successful 2018 with From when SITA took its first steps to
record revenues of $1.7bn and for the first create the world’s largest data network Technology,
time in our 70-year history, our applica- in 1949 to today’s software-defined net- Design & Services
tion business now represents more than works (SDN) and tech-savvy passengers,
50% of our revenues. This is an important we are transforming to deliver a more ef-
milestone because while connectivity re-
mains a vital part of our business, appli-
ficient industry and better passenger ex-
perience with easy travel every step of the
8 – 11 OCTOBER
cation growth is a fundamental element
of our long-term strategy,” said Barbara
way,” added Dalibard.
Over the course of the two-day annual
2019
Dalibard, SITA CEO. general assembly, SITA also hosted its an- Munich Trade Fair Centre
According to the air transport IT pro- nual Innovation Forum, a platform that Germany
vider, 95% of all international destina- examines how digital technologies can be
tions and over 13,500 industry sites are better utilised within the realm of avia-
www.interairporteurope.com
connected to SITA’s network. tion. These include artificial intelligence,
Since its inception back in 1949, SITA biometrics and blockchain technology.
Organisers: Mack Brooks Exhibitions

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 11


Saudia lands new route to Marrakech
The national carrier of Saudi Arabia’s new service will operate three times a week from Jeddah
RADAR

UAE regulator urges airlines to


review fl ight paths amid tensions
General Civil Aviation Authority says carriers need to avoid operating in areas ‘that could
jeopardise civil aviation safety and operations’
AIRSPACE

The General Civil Aviation Authority


(GCAA) has called on air operators in the
UAE to evaluate flight paths affected by
recent airspace restrictions in the region.
In a statement carried by state news
agency WAM, the GCAA said that given
current regional developments and as a
precautionary measure, UAE-registered
air operators need to avoid operating in
areas “that could jeopardise civil avia-
tion safety and operations”.
The GCAA’s comments followed just
days after Emirates Airline and Etihad
Airways rerouted flights, a decision that
was made in the wake of Iran shooting
down a US reconnaissance drone over the
Strait of Hormuz.
Some of the world’s leading carriers, in-
cluding British Airways, Qantas and Sin-
gapore Airlines, suspended flights over the
strategic waterway amid escalating ten-
sions between Washington and Tehran.
“In light of the current situation,
Emirates has taken precautionary meas-
ures including rerouting all fl ights away
from areas of possible confl ict,” a spokes-
person for the Dubai-based airline said.
“We are carefully monitoring the
ongoing developments and are in close
contact with the relevant government
authorities with regards to our fl ight op- Emirates Airline, Etihad Airways, and flydubai have adjusted their flight paths to compensate.
erations, and will make further opera-
tional changes if the need arises.” paths we operate to and from the Ara- statement said, as Tehran and Wash-
The suspensions came after the Fed- bian Gulf.” ington engaged in a war of words over
eral Aviation Administration in the Meanwhile, Dubai’s low-cost carrier Thursday’s missile strike on the drone.
United States issued a Notice to Airmen flydubai said it “adjusted some of the ex- Iran’s downing of the drone — which
(NOTAM) “prohibiting US-registered isting fl ight paths in the region as a pre- Washington insists was above interna-
aircraft from operating over the Gulf cautionary measure”. tional waters but Iran says was within
and Gulf of Oman”. The NOTAM was in response to its airspace — has seen tensions between
Abu Dhabi-based Etihad Airways “heightened military activities and in- the two countries spike further after a
said following the NOTAM it had creased political tensions that might series of attacks on tankers blamed by
“agreed to change a number of the fl ight place commercial fl ights at risk”, an FAA the US on Tehran.

12 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


SpiceJet flight lands without issue after burst tyre
Despite the tyre bursting upon taking off from Dubai, the flight landed safely in Jaipur
RADAR

Jazeera: 2 million have flown from


Kuwait International’s T5 in first year
The milestone was celebrated at an event attended by officials from Kuwait’s Directorate of
Civil Aviation, Ministry of Interior, Kuwait Customs, KAFCO, and National Aviation Services
PERFORMANCE
in kiosks, as well as dedicated passport and operations and customer experience. T5 ena-
security control checkpoints. Additionally bled us to serve our growing number of pas-
on site is an array of duty-free shops and sengers, which saw record growth of 46.4%
restaurants, as well as the carrier’s signa- in 2018 as our airline continued to expand its
ture Pearl Lounge. operations in the Middle East, Europe and
The milestone was celebrated at a recent Indian subcontinent,” commented Marwan
event attended by officials from Kuwait’s Boodai, Jazeera Airways chairman.
Directorate of Civil Aviation, Ministry of “As we move forward, we are investing
Jazeera Airways, a low-cost carrier based in Interior, Kuwait Customs, KAFCO, and in expansion plans to continue better serve
Kuwait, recently celebrated a key milestone National Aviation Services. Members of our customers. We are planning a new route
that saw roughly 2 million passengers pass- Kuwait Airways’ own leadership and other to London Gatwick, in addition to new
ing through its dedicated terminal over the local service providers and partners were routes in India, Pakistan, Bangladesh and
first year of its operation. also in attendance. the Gulf. The expansion will be supported
Launched back in May 2018, Terminal 5 “In May last year, the inauguration of T5 with the delivery of three new A320neo air-
features 11 check-in counters, six self-check- emerged as significant game-changer for our craft this year.”

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 13


AVIATION BUSINESS AWARDS 2019

SELECTING THE Aviation Business


Middle East Awards

PERFECT VENUE 2019 Categories


THIS YEAR’S AVIATION BUSINESS
AWARDS WILL FEATURE 14 CATEGORIES,
TWO OF WHICH ARE NEW ADDITIONS
TO THE LINE-UP

This month’s coverage of the complexes of equal height featuring 48


• TECHNOLOGY INNOVATION OF
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Aviation Business Middle THE YEAR
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• BUSINESS AIRCRAFT OPERATOR OF
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14 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


AVIATION BUSINESS AWARDS 2019

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 15


AIRBUS INNOVATION DAYS

ON THE WINGS
OF TOMORROW
AVB takes a trip to Toulouse to visit the headquarters of
the renowed French aerospace manufacturer Airbus

F
ollowing a two-year hiatus, French Pratt & Whitney’s Pw1500G geared tur-
aerospace manufacturer Airbus bofan engine. Combined, these factors
took the decision to once again have led the aircraft to achieve at least
host its Airbus Innovation Days 20% lower fuel burn per seat compared
event. Running from the 21 – 22 May to older aircraft.
2019, a group made up of over 130 jour- Boasting an order book of over 530
nalists and media from across the world aeroplanes to date, Airbus has positioned
were invited to meet with Airbus’ execu- the A220 to serve as a strong contender
tive team, who delved into the latest devel- for the 100- to 150-seat market, which pro-
opments and announcements within the jected to represent 7,000 aircraft over the
company’s various business divisions. next two decades.
“Since its entry-into-service close
The new and improved A220 to three years ago, the A220 aircraft
As part of this year’s Airbus Innovation has already proven that it is meet-
Days, the French aerospace manufac- ing or beating its initial performance
turer announced new improvements targets, bringing more flexibility and
to its single-aisle A220 family aircraft. revenue potential to customers,” said
Effective from the second half of 2020, Rob Dewar, head of Engineering &
A220 aircraft will see an increase in their Customer Support for the A220. Grazia Vittadini, chief technology offic-
maximum take-off weight (MTOW) by “Today, Airbus is reinforcing its confi- er, Airbus, and Goran Jansson, deputy
2.3 metric tonnes. This, in turn, will have dence in the A220 platform and further president of EVP Strategy & Ventures,
a substantial impact on the maximum enhancing its capabilities to meet upcom- Scandinavian Airlines, will go into ef-
range to all aircraft in the family, an in- ing market requirements.” fect from June 2019. The collaboration
crease of 3,350nm for the A220-300 and is expected to then continue until the
3,400nm for the A220-100, roughly 450nm Going electric close of 2020.
more than current offerings. Another key area of discussion As per the MoU, the two parties will
“This new MTOW will allow operators that came up at this year’s Airbus work closely together on a joint research
to reach markets which today cannot be Innovation Days was the topic of sus- project that will explore the operational
served by other small single-aisle aircraft tainability. On that front, the French and infrastructure opportunities, as well
types,” shared Christian Scherer, chief aerospace manufacturer revealed that as the challenges associated with the
commercial officer, Airbus. it had inked a MoU with Scandinavian large-scale introduction of hybrid and
Built from the ground up with ef- Airlines (SAS) for research into hybrid full electric aircraft, for airlines and their
ficiency in mind, the A220 features a and electric aircraft systems and infra- respective operations.
novel aerodynamic design, advanced structure requirements. “It’s not enough to build a zero-emission
and lightweight materials, as well as The agreement, which was signed by aircraft. We need to be able to operate it in

Since its entry-into-service close to three years ago, the A220


aircraft has already proven that it is meeting or beating its initial
performance targets, bringing more flexibility and revenue
potential to customers.” Rob Dewar
16 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com
AIRBUS INNOVATION DAYS

c After a two-year break, Airbus invited a group of over 130 journalists to visit the company’s headquarters in Toulouse, France.

a given environment. And so this MoU will themselves to achieve carbon-neutral Also present in the Innovation Zone
be about analysing the impact of ground growth for the aviation industry as a was an advanced robotic under the
infrastructure and logistical charging and whole from 2020 onwards. The goal is to SmartDrill project. At the core of the
refuelling impact on the range, resources, drastically reduce aviation net emissions design is a solution that enables equip-
on-time, and availability at airports,” by 50% by 2050 (as compared to 2005). ment, such as handle machines and
Vittadini told journalists at the event. robots, to utilise spatial recognition
“We are proud to be in this joint under- Transforming the aviation workforce within an aircraft environment.
taking, also with Scandinavian universi- In addition to the main presenta- Currently being developed by Airbus
ties and renewable energy suppliers in tions on stage, the event featured Bizlab, by combing computer vision
the equation as well,” she added. an Innovation Zone, which included with artificial intelligence, SmartDrill
Part of the plan includes the involve- everything from mock-up teasers of supports assembly line operations by
ment of a renewable energy supplier, who connected cabins, to the latest in manu- making the machines they utilise more
will be instrumental in ensuring zero CO2 facturing robotics. intelligent by connecting them to an
emissions operations are accessed. One nifty technology that was on existing IT as found in smart factories.
Despite the fact that aircraft have display was an Airbus’ industrial exoskel- Virtual reality was also featured
become 80% more fuel efficient per pas- eton, which was designed to assist work- quite extensively in Airbus’ innova-
senger kilometre over the past 50 years, ers active across production sites and tion zone, both as an entertainment
the rising demand of air travel continues Final Assembly Line (FAL). Comprising novelty but also as a training tool. In
to grow and will likely double within the of a rigid, bone-like structure that can be the case of the former, Airbus Bizlab
next 20 years. fitted over the clothing, the exoskeleton showcased its Inflight VR platform,
To tackle this issue, the Global supports the user’s bones and muscles, which is compatible with VR-ready
Aviation Industry (ATAG), which in- helping to reduce fatigue and strain in aircraft, such as the A320 family,
cludes Airbus and SAS, have committed uncomfortable working conditions. A330, and A350.

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 17


A/S AIR BALTIC CORPORATION

BANKING ON
A HYBRID
APPROACH
Martin Gauss, CEO of airBaltic, sheds light
on the Latvian airline’s hybrid model and
why it has dedicded to go all in on
the Airbus A220-300
By Alexander Sophoclis Pieri

18 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


A/S AIR BALTIC CORPORATION

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 19


A/S AIR BALTIC CORPORATION

The current airBaltic fleet consists of 39 aircraft – 19 Airbus A220-300s, 8 Boeing 737s and 12 Bombardier Q400Next Gen aircraft.

M
eeting of the side At the same time, airBaltic’s net in-
lines of last month’s In addition, as we come also increased by more than 40%
International Air
Transport Association
are in the Baltics, compared to 2017, reaching $6.1m
(EUR 5.4 million).
(IATA) Annual General Meeting in we have the Other key figures for the year in-
Seoul, South Korea, AVB got the
chance to sit down and connect
neighbouring clude a 12% increase in flights from
50,093 to 56,261, along with a 17%
with Martin Gauss, CEO of Latvian country Estonia, increase in the number of passengers
airline airBaltic.
The flag carrier of Latvia and a rising
where we are also carried from 3.5 million to 4.1 million.
A study from Roland Berger, a busi-
star within the European market, air- the number one ness strategy consultant, found that air-
Baltic has experienced a strong period
of growth over the past couple of years,
carrier now with a Baltic contributed 2.5% to Latvia’s GDP
in 2018 and supported to 30,000 jobs.
a remarkable achievement considering market share of While there are a number of factors
the financial woes it faced back in
the early-2010s.
20%, and we are the that contributed to the company’s turn-
around in recent years, which included
In fact, the airline has just emerged number three in a cost-cutting programme that focused
from a record-setting year, in which it
recorded for the first time in its histor y
terms of market on returning the airline to profitability
back in 2014, one compelling reason
over $455m (EUR 400m) in revenues. share in Luthuania.” lies with airBaltic’s decision to adopt

20 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


A/S AIR BALTIC CORPORATION

the Airbus A220-300 as its preferred


aircraft of choice.
To date, airBaltic operates a fleet
that includes eight Boeing 737s and
12 Bombardier Q400Next Gen air-
craft but is currently in the process
of transitioning to an all-Airbus A220
fleet. Receiving its 19th A220 jet back
in May, it was the fi fth aircraft of that
type that it has received for 2019.
While another three A220s are
scheduled to be added by the close of
the year, airBaltic is set to cease its
Boeing 737 fleet operations by
this Autumn, a full year ahead of the
original schedule.
“The key to our business plan,
which is called Destination 2025 was
to place an order for a significant
amount of a single aircraft type. We
placed an order for up to 80 A220-300s
… we operate today 19 of these. We
were the launch operator of that air-
craft and we hold 71% of all European
orders for that aircraft today,”
explained Gauss.
“The business model that we fly is
that we have a full-ser vice business
class in the front of the cabin with hot
meal ser vice, beverages, dedicated
cabin crew, and the middle seat is
kept free. But it’s the same seat as in
economy. Behind the curtain, we fly
an ultra-low-cost cabin. AirBaltic has added a new pre-order meal service, which allows passengers to select their meals before flying.
“That’s the hybrid model that we
fly. It is a unique model that we oper-
ate, and we are doing well on it. We is the enhanced inflight experience
have grown over the last two year — HYBRID MODEL from the passenger side. For start-
around 20% … We are targeting five Founded in 1995, Latvian airline A/S Air ers, the narrow-body aircraft boasts
million passengers this year. By 2025, Baltic Corporation (airBaltic) is majority ample room in its aisles, washrooms,
we want to reach 15 million passen- held by the Latvian state, which holds and overhead bins, similar to what one
gers and 1.5bn in revenues.” 80.05% of its stock, while Lars Thuesen might expect from a widebody aircraft.
The CEO went on to add that the holds around 20% through his fully A moodlight system has also been
A220 has performed beyond the owned Aircraft Leasing 1 SIA. Adopting deployed across all aircraft, which is a
airline’s expectations, delivering an a hybrid approach, the carrier has feature that is typically found on long-
improved overall experience, along embraced the best practices from both haul carriers.
with better fuel efficiency. As one of the traditional network airlines and the Additionally, the middle seat in each
‘greenest’ commercial aircraft currently model utilised by low-cost carriers. row is designed to be the widest, pro-
in operation, the A220 is also helping Back in 2008, airBaltic transformed its viding passengers with more space to
the airline meets its sustainability tar- operating model from a point-to-point stretch out and utilise.
gets by reducing CO2 and NOX emis- carrier to a network airline. This resulted AirBaltic’s aircraft now also features
sions by 20% and 50%, respectively. in Riga becoming a connecting hub a new seat design that is able to offer
Another big draw of the aircraft between the East and the West. 30-inch pitch, a small change that the

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 21


A/S AIR BALTIC CORPORATION

have markets spanning all over Europe.


We come all the way over from Lisbon,
but then we are also taking them [pas-
sengers] to Abu Dhabi … so destina-
tions that are longer flights, but we also
have within the vicinity flights that only
take 40 minutes,” he explained.
“In addition, as we are in the Baltics,
we have the neighbouring countr y
Estonia, where we are also the number
one carrier now with a market share of
20%, and we are number three in terms
of market share in Lithuania, where we
are expanding and also tr ying to be-
come number one.”
In terms of new destinations added
to its network in the past year, air-
Baltic recently launched three new
flights from Tallinn headed to Malaga,
Copenhagen and Brussels. The fourth
flight from Tallinn to Salzburg in
Austria is expected to be announced
in the fourth quarter of 2019, which
would be the total number of direct
ser vices out of the capital of Estonia
to 13.
Other new additions include a num-
ber of newly launched summer desti-
nations from Riga, such as flights to
Dublin, Stuttgart and Liv, along with
Kos and Menorca.
According to the CEO, airBatlic to-

CURRENT PROGRESS
Over the course of the first three
months of 2019, airBaltic transported
818,129 passengers, a 12% increase
compared to the same period in
2018. Transporting passengers
Gauss: We define the list of destinations by the range of the aircraft, which is seven hours. That is it. to destinations all over Europe,
Scandinavia, Russia, CIS and the
Gauss points out is, “unusual for a low- The selection is wide enough to ac- Middle East, the airline operated
cost environment”. It is typically the commodate meals for a variety of di- 12,740 flights in the first quarter of
case to have 29 or 28-inch pitch. etar y and religious requirements. 2019, a 10% increase over 2018 figures
One other change to the ser vice is When asked about the airline’s tar- at that point. The Baltic carrier
the addition of a new meal pre-order get growth markets and its progress, also noted that its 15-minute flight
menu. With an extensive selection of Gauss shared that just this past May, punctuality indicator for the period
70 meals to choose from, passengers airBaltic managed to secure 60% mar- reached a level of 89.9%. What this
travelling from Riga on the Baltic car- ket share in Riga, which is operated in equated to was that every 89 out of
rier will be able to order meals up to 24 what he described as “a hub in a four- 100 airBaltic flights departed as its
hours before departure. Eight popular wave structure”. assigned departure schedule
meal options are also available during “Half of the passengers that we ser ve or endured a delay of no more
online check-in up to an hour before in Riga are transfer passengers. Going than 15 minutes.
departure from Riga. from one destination to another and we

22 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


A/S AIR BALTIC CORPORATION

Another big
thing in Europe is
air traffic control.
Unfortunately, the
Europeans can›t
agree on how to
structure an
airspace properly,
therefore we have
all these delays
and that again
contributes to the
Co2 emissions.”
Recent additions to the flag carrier’s network include flights to Dublin, Stuttgart, Liv, Kos and Menorca.

day operates 80 routes and along with tic’s CEO shares that the chief issue Another key issue that airlines in
its codeshare partners, which includes amongst airlines at the moment lies Europe have to contend with is the cur-
the likes of KLM, SAS, Air France, with sustainability and tackling carbon rent state of air traffic control in
Iberia, Aeroflot, Air Italia, Austrian emissions. Addressing this issue was the region.
Airlines, and Etihad, to name a few, the one of the factors the airline consid- “A big thing in Europe is air traffic
Latvian carrier offers around 300 desti- ered when it selected Airbus’ A220 to control. Unfortunately, the Europeans
nations in its portfolio. ser ve as its primar y aircraft type. can’t agree on how to structure air-
“We define the list of destinations by In addition to the aircraft choice space properly, therefore we have all
the range of the aircraft, which is seven though, airBaltic has also invested in these delays and that again contributes
hours. That is it. Whatever airport we reducing its carbon footprint on the to the Co2 emissions. We had 19.1 mil-
can reach within seven hours, is a po- ground, such as maintaining an en- lion minutes delay last year, because of
tential new route,” added Gauss. vironmentally friendly headquarters an insufficient air traffic control struc-
Switching gears to discuss the on the home front, as well converting ture, so that’s another challenge we
current market challenges, airBal- ground support vehicles to electric. have,” he concluded.

AirBaltic recently added three new flights from Tallinn to Malaga, Copenhagen and Brussels. A fourth flight to Salzburg is expected to be added in Q42019.

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 23


PARIS AIR SHOW 2019

A WEEK IN PARIS
The biannual air show reportedly drew over 316,000 visitors, 2,400
exhibitors from across the world, featured a total of 140 aircraft, and saw
the successful signing of $140bn in orders

O
nce again gracing the summer
skies over Paris–Le Bourget
Airport, the biannual Paris Air
Show returned to full form
this year drawing 316,470 visitors under
its banner. Comprising of both 176,630
members of the general public, as well as
139,840 professionals representing 185
countries, the event also played host to
276 official delegations from 98 countries
and seven international organisations.
A total of 2,453 exhibitors were
present at the Paris Air Show, which
included 1,185 French exhibitors from
12 regions across France, along with
1,268 exhibitors from 48 countries. Of
that number, 150 startups from 21 coun-
tries were present. Twenty-six national
pavilions were erected for the event
with the biggest representation hailing
from Germany, Italy, United Kingdom,
Belgium and the USA.
The site of the show featured
125,00sqm of exhibition space, which
included 52,00sqm of stands, along with
38,000sqm of exhibitor’s outdoor space.
A separate 35,000sqm of built area was
c A 140 aircraft were showcased during the air show and over $140bn in deals and orders were penned.
allocated for 335 Chalets.

We are truly honoured and humbled by the Finally, a group of 2,700 accredited
journalists from across 87 countries
leadership at International Airlines Group for were present and covering the
placing their trust and confidence in the 737 biannual event.

MAX and, ultimately, in the people of Boeing Airbus takes the cake
Walking away as the ‘Big Winner’ as the
and our deep commitment to quality and show was Airbus. Over the course of the
safety above all else.” Paris Air Show, the French Aerospace

24 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


PARIS AIR SHOW 2019

c Airbus’ newest A321XLR won orders for 48 aircraft, commitments for a further 79 aircraft and 99 conversions from A321 to XLR.

manufacturer secured new business for Boeing recovers lost ground Lingus, British Airways, Iberia, Vueling
363 commercial aircraft, which included While Boeing didn’t secure as many new and LEVEL, IAG signed a letter of intent
149 firm orders and 214 commitments. orders as its chief competitor, the US with the Boeing Corporation in a deal
In addition to these totals, airlines aerospace manufacturer did secure over that is estimated to value more than
and lessors used the opportunity of the 290 in commercial orders, commitments $24bn per list prices.
air show to covert 352 existing aircraft and letters of intent. Highlights of its Viewed by many as a show of confi-
orders. This mostly consisted of con- order list include a sizeable commitment dence in the Boeing 737 MAX aircraft,
versions of the company’s A320 single- from Korean Air to purchase new 787-10s IAG’s letter of intent is the first follow-
aisle aircraft up to the larger A321neo, and 10 additional 787-9 aeroplanes valued ing the 737 MAXs groundings back in
as well as the newly revealed A321XLR. at $6.3bn at current list prices. March 2019.
Building upon the success story of The national carrier of the Republic “We are truly honoured and hum-
the A321LR, the XLR is now the longest- of Korea also revealed that it will bled by the leadership at International
range single-aisle aircraft available on lease 10 787-10s from the Air Lease Airlines Group for placing their trust and
the market boasting a range of 4,700nm. Corporation, bringing the total of new confidence in the 737 MAX and, ultimate-
Featuring a rear centre tank (RCT) for 787 Dreamliner aircraft to its fleet to 30. ly, in the people of Boeing and our deep
more fuel volume, along with modified Both ASL Aviation Holdings and GECAS commitment to quality and safety above
landing gear for increased maximum moved to add a sizeable number of con- all else,” said Kevin McAllister, Boeing
take-off weight (MTOW) of 101 met- verted Boeing 737-800 freighters to their Commercial Airplanes President & CEO.
ric tonnes, the aircraft will reportedly respective portfolios, though the total val- “We are delighted that the IAG team
achieve 30% lower fuel burn per seat ues of those deals were not disclosed. recognized the superior qualities of
than last-generation competitor aircraft. Boeing’s most successful deal of the 737 MAX and has indicated an
Airbus’ newest model won orders for the show came from the International intention to return to the Boeing 737
48 aircraft, commitments for a further Airlines Group (IAG), who announced family. We look for ward to building
79 aircraft and 99 conversions from its intention to purchase 200 737 MAX on our long-standing partnership with
A321 to XLR. jetliners. The parent company of Aer IAG for many years to come.”

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 25


PARIS AIR SHOW 2019

26 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


PARIS AIR SHOW 2019

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 27


75TH IATA ANNUAL GENERAL MEETING

VISITING THE
LAND OF THE
MORNING CALM
Aviation Business travelled to Seoul to attend last month’s IATA Annual General
Meeting, discovering the latest developments with the global air transport
market, as well as the challenges the industry is facing in 2019

L
ast month, the International played host to the AGM and the first on a number of topics, which included
Air Transport Association time the event has been held in the increasing demand for connectivity, air-
(IATA) hosted its 75th IATA Republic of Korea. Over 300 hundred line digital transformation, infrastruc-
Annual General Meeting (AGM) of the world’s press attended, along ture capacity, sustainability, as well as
and World Air Transport Summit with representatives from among the future workforce.
(WATS) in Seoul. IATA’s 290 member airlines. The event concluded with both the
Running from the 1 – 3 June, this Under the theme of The Vision for announcement of Lufthansa Group
marked the first time that Korean Air the Future, the 75th IATA AGM touched CEO Carsten Spohr’s appointment

28 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


75TH IATA ANNUAL GENERAL MEETING

as Chairman of the IATA Board of


Governors (BoG) and that the 76th
IATA AGM will be hosted by KLM
Royal Dutch Airlines in Amsterdam,
The Netherlands.

Downgrade in the works


During the opening of the an-
nual general meeting, Alexandre de
Juniac, IATA’s director general and
CEO, painted a cautious state of the
global air transport market, sharing
that the organisation had downgrad-
ed its 2019 outlook.
The association has projected $28bn
profit for the global air transport in-
dustry for 2019, down from $35.5bn
forecasted back in December 2018.
Additionally, IATA noted that is a de-
cline on 2018 net post-tax profits, which
the association estimates at $30bn.
Factors that are negatively affect-
ing the business environment in-
cludes the increase in fuel prices, as Pieter Elbers’ KLM Royal Airlines will play host to the 76th IATA AGM in 2020.
well as a decrease in global trade. In
the case of the former, the high price
of fuel from 2018, which was record-
ed as $71.6/barrel Brent, is expected
This year will be the tenth consecutive year
to continue well into 2019 with an in the black for the airline industry. But mar-
average cost of $70.00/barrel Brent gins are being squeezed by rising costs right
expected. This is 27.5% higher than
the $54.9/barrel Brent recorded back
across the board.” Alexandre de Juniac
in 2017.
The airline association expected among airlines keeps yields from ris- dustry, there remains a substantial gap
that fuel costs will account for 25% of ing,” said de Juniac. between the performance of carriers in
total operating costs, a one and half “Weakening of global trade is likely North America, Europe and Asia-Pacific
percentage point increase over the to continue as the US-China trade and those that are based in Africa,
2018 figure. war intensifies. This primarily im- Latin America and the Middle East.
Over the course of 2019, overall pacts the cargo business, but passen- “The good news is that airlines have
costs are projected to increase by ger traffic could also be impacted as broken the boom-and-bust cycle. A
7.4%, surpassing a 6.5% increase in tensions rise. Airlines will still turn downturn in the trading environment
revenues. This, in turn, will likely a profit this year, but there is no easy no longer plunges the industry into a
squeeze net margins down from money to be made.” deep crisis. But under current circum-
the 3.7% recorded to 2018, to 3.2% for Other projections from IATA point stances, the great achievement of the
the current year. Additionally, IATA to a decline in return on invested industry—creating value for investors
expects a profit per passenger will capital earned. According to the asso- with normal levels of profitability is
decline from $6.85 recorded in 2018 to ciation, the return on invested capital at risk. Airlines will still create value
$6.12 for 2019. earned will drop by 0.5 percentage for investors in 2019 with above cost-
“This year will be the tenth con- points from last year’s figure of 7.9%. of-capital returns, but only just,”
secutive year in the black for the air- While exceeding the average cost of said de Juniac.
line industry. But margins are being capital that is estimated at 7.3%, IATA
squeezed by rising costs right across notes that the buffer is quite narrow. Challenges for the Middle East
the board—including labour, fuel, Despite efforts to instil “financial Over in the Middle East, IATA noted
and infrastructure. Stiff competition resilience” throughout the global in- that Middle East-based carriers are

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 29


75TH IATA ANNUAL GENERAL MEETING

The association has projected $28bn profit for the global air transport industry for 2019, down from $35.5bn forecasted back in December 2018.

expected to deliver a combined net ple in the region is increasing in terms prices that should have benefitted air-
loss of $1.1bn, which is further down of travel,” said Albakri. lines, oil producing nations moved to
from the $1.0bn loss recorded in 2018. “Africa and the Middle East is one of recoup lost revenue through additional
Equating to a $.01 loss per passengers the most promising regions of all the taxes and charges. This, in turn, impact-
and a negative net margin of -1.9%, regions worldwide.” ed the Middle East’s aviation market.
the Middle East has faced challenges Despite the forward progress, how- The ongoing political instability
in both the business environment ever, the regional VP is quick to point of the region has also affected the
and to business models. The former is that there are still challenges that need Middle East’s performance, particular-
expected to prolong losses for airlines to be overcome. One such issue shared ly when it comes to the management
in the region over 2019. between Africa and the Middle East is of the airspace. The fact that most of
In a media briefing that included the constriction of profit margins. the airspace is managed by the mili-
journalists from both Africa and the Where the global average profit per tary has led to severely constricted
Middle East, Muhammad Ali Albakri, passengers was recorded reaching zones of operation within a small geo-
regional VP, Africa and the Middle East, $6.12 in 2019, airlines in the Middle graphic area. This has resulted in an
shared an update on the progress of the East saw a decline to -$4.46 per pas- increase in the number of ATC issues
region that supports 8.2 million jobs senger, while carriers in Africa lost across, as well as a significant increase
and generates $185.8bn in GDP. Of those $1.09 per passengers. in the average delay of fl ights.
figures, the Middle East supports 2.4 Delving more specifically into the is- Pointing a previous study done on
million jobs in the region and gener- sues faced in the Middle East, Albakri the region, Albarki explained that the
ates $130bn in GDP. noted that despite a reduction in oil average delay per flight attributed
Recent findings from IATA also point
out that the Middle East’s compound
annual growth rate for 2018 – 2037 will
be 4.4% and will record an extra 278 We are working very hard with the regulato-
million passengers to reach a total of
501 million by 2037.
ry and governments to really address the issue
“We have three different scenarios; of taxes and charges, to bring them down.
we have an optimistic scenario, an as- Improving air traffic management that’s a huge
is scenario, and a pessimistic scenario.
If you looked at all three scenarios, you
priority for us in the Middle East. Skies are over
see that the demand for travel by peo- congested” Ali Albakri

30 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


75TH IATA ANNUAL GENERAL MEETING

Albakri: Africa and the Middle East is one of the most promising regions of all the regions worldwide.

Scheme for International Aviation tion, airlines are encouraged to switch to


(CORSIA), as established through the bar-coded bag tags with RFID inlays and
UN’s International Civil Aviation to utilise RFID data alerts that engage
Organization (ICAO). processes with airports and their respec-
to ATC issues reached as high as 29 As the first global carbon pric- tive ground handlers. This, in turn, will
minutes. Unless addressed soon, this ing scheme for any industry sector, minimise instances of the mishandling
figure could double by 2025, resulting CORSIA is set to cap net CO2 emissions of luggage.
in over $7bn in lost productivity time to of the global aviation sector at 2020 A concept that IATA has pushed for
passengers, while also adding $9bn to levels. Building upon the foundation the past couple of years and imple-
airline operating costs. formed by the initiative, this year’s mented to a limited degree at select
The final challenge is around capac- IATA AGM looked to the future and locations, the organisation has now re-
ity-building, securing the necessary established the goal to reduce net solved to push the global implementa-
talent within the region to cope with emissions to half 2005 levels by 2050. tion of the One ID initiative. Utilising
future air demand. To achieve this, airlines are encour- a single biometric identifier, the idea
“We are working very hard with the aged to introduce all aviation industry is that a passenger can be processed
regulatory and governments to really standard fuel efficiency practices, through an airport and throughout
address the issue of taxes and charges, as well as participate in a long-term the entire journey, without the need
to bring them down. Improving air switchover to sustainable fuels. for paper travel documentation. The
traffic management that’s a huge prior- The second area explored was the newly enacted resolution calls for
ity for us in the Middle East. Skies are concept of a global airport slot sys- cross-collaboration between airlines,
over congested,” shared Albakri. tem, towards which AGM called upon airports, and government authorities
“And capacity building in terms of governments to address capacity to implement a paperless passenger
knowledge and skilled resources that shortages. As part of the resolution, process utilising biometric technology.
will be able to provide the support the organisation reaffirmed that the The final resolution passed is focused
needed for the expected growth in the Worldwide Slot Guidelines (WSG) is on improving the air travel experience
region,” he concluded. the global standard for the policies and for the estimated one billion people liv-
procedures of airport slot allocation ing with disabilities worldwide. IATA’s
Five key areas of focus and management. members are committed to ensuring
As part of its annual general meeting, IATA members voted for the resolu- that passengers with disabilities have ac-
IATA discussed and passed five resolu- tion aimed at developing the global de- cess to safe, reliable and dignified travel.
tions that the association will now ployed of Radio Frequency Identification As part of the resolution, airlines will
focus its efforts towards. (RFID) for baggage tracking. Part of this work with their respective governments
The first resolution to be passed includes the introduction of modern and other elements of the travel sector
with a unanimous vote called on baggage messaging standards that will, to harmonise regulations and deliver a
governments to implement the in turn, better track passenger baggage global standard that will improve travel
Carbon Offsetting and Reduction in real-time. To comply with the resolu- for people of determination.

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 31


AVIATION PARTNERS
Flydubai celebrates key milestone
after 10 years of operation
The airline has transported over 70 million passengers since it began operations with
a fl ight to Beirut on June 1, 2009
BRAND
added. “I am happy to see Flydubai deliver “Flydubai has enabled its customers
Dubai-based carrier Flydubai has carried on that commitment.” to reach places that weren’t accessible
over 70 million passengers since it began In the last decade, Flydubai has grown before,” said Saj Ahmad, the chief analyst
operations ten years ago today, the airline operations from six aircraft at Dubai of UK-based StrategicAero Research.
announced on Sunday. International Airport’s Terminal 2 in 2009 “Its expansion into Eastern Europe,
The airline’s first flight – from Dubai to to over 1,700 flights per week, with flights to Russia and across Africa has proven a
Beirut – took place on June 1, 2009. select destinations operating out of Terminal huge success and it stands to reason
To celebrate the milestone, a special flight 3 and Dubai World Central. that the airline’s maturity has evolved
arriving in Beirut at 12:20 local time on “Flydubai’s commitment to making to showcase its prowess as the hybrid
Sunday was met with a celebratory water travel more convenient and more afford- airline of choice.”
cannon salute upon arrival from Dubai. able has only grown stronger over the past He added that “the next 10 years for
“For many years, the government of 10 years,” said Flydubai CEO Ghaith Al Flydubai will be just as important as
Dubai recognised the need for another Ghaith. “We realised early on that travel the previous.”
carrier to serve our country. In 2009, we is about bridging the distance between “Once the [Boeing] 737 Max is back in
were able to achieve this,” airline chairman people and we will continue to change service later this year, Flydubai’s expan-
Sheikh Ahmed bin Saeed Al Maktoum the way people travel around the region.” sion strategy will really boom,” he said.
said in a statement. The airline now has a network of over 90 “With the city of Dubai remaining the
“Flydubai was launched with a mandate destinations in 47 countries. More than 70 true global nexus for travel, the airline is
to open new markets and make travel million passengers have used the airline exceptionally well placed to expand like
more accessible to people,” Sheikh Ahmed since its inception. never before.”

c The airline now has a network of over 90 destinations in 47 countries. More than 70 million passengers have used the airline since its inception.

32 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


SriLankan Airline named ‘Most Punctual’
In May 2019, the airline reported that 90.75% of its flight was ‘on-time’
AVIATION PARTNERS

Emirates Airlines moves to


remove single-use plastics
Dubai airline Emirates has made a network-wide commitment to reduce
single-use plastics on board its aircraft
CONTENTS
ETIHAD AND SWAE
SUSTAINABILITY
suggestions on other environmentally PARTNER ON ENGAGE-
Emirates has made a network-wide com- friendly ideas. MENT PLATFORM
mitment to reduce single-use plastics on As part of its long-term vision, the airline The platform enables
board its aircraft. has been segregating large plastic bottles employees to share and
Eco-friendly paper straws have been on board to be recycled in Dubai and the propose solutions
introduced and all Emirates fl ights will rest of the world. This diverts an estimated P34
soon be plastic straw-free, the airline said 3 tonnes or about 150,000 plastic bottles
in a statement. from landfill in Dubai each month.
Emirates said it has been working on A full review of the plastics on board
various long-term sustainability initiatives. has been conducted and over the next few
In addition to plastic straws, plastic swizzle months, the airline will gradually imple-
sticks and stirrers will also be replaced ment other initiatives to tackle plastic waste.
with eco-friendly alternatives by the end
of the year.
From August, plastic bags used for in-
fl ight retail purchases will also be replaced
with paper bags.
These initiatives will remove an esti-
mated 81.7 million single-use plastic items BIG NUMBERS
from landfill each year, Emirates added. MTU Aero Engines secures
Trials have been conducted on Emirates orders worth $1.3bn
fl ights to explore various recycling ini- P37
tiatives on board and Emirates staff and
cabin crew constantly give feedback and READY TO RUMBLE
Saudia Cargo brings 175 tons
of WWE equipment to KSA
Oman Air unveils new uniforms for P38
cabin crew at London Heathrow
The uniforms will be rolled out across Oman Air’s network in phases
SMART AIRPORT
CABIN CREW
the guest experience and form is a testimony that style Melbourne Airport extends
Oman A ir cabin crew the beauty of the country as can be derived from our own its ICT contract with SITA
stepped out in their new a destination. Developed by inspiring landscapes and sur- P41
uniforms on Thursday, Oman Air’s in-house prod- roundings,” said Abdulaziz
with an official launch at uct development and brand Al Raisi, Oman Air’s CEO.
London Heathrow. Oman’s team, the design of the outfit “ T he t re me ndous
national carrier said in a and accessories are inspired amount of effort and time
statement that the new style by Oman’s rich colours, cul- dedicated by our team
uniform will be introduced ture, history and heritage. working through multiple
across its network in phas- The most prominent de- design iterations, and modi-
es. Oman Air also launched sign element is the retention fications before the precise
its new video called State of of the turquoise colour. styling and overall look was
Wonder which aims to show- “Inspired by the rich ele- achieved in each garment, is
case the brand evolution of ments of Oman, our new uni- indeed praiseworthy.”

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 33


Turkish Airlines named ‘Most Valuable Brand’
The national carrier was singled out in the results of a 2019 evaluation conducted by Brand Finance
AVIATION PARTNERS

Emirates brings First Etihad and SWAE partner


Class to Durban
The airline has also increased
seasonal frequency by four
on engagement platform
additional fl ights a week The platform enables employees to share and propose solu-
tions to Etihad’s ongoing business challenges
OPERATIONS

Etihad Airways, the national carrier of Douglas, group CEO, Etihad Aviation
the UAE, and SWAE, a Vancouver-based Group. “If we are operating more inno-
startup, have partnered with iFikra, an AI- vatively internally, our guests will have a
powered solution to launch a crowdsourc- far more superior experience when they
ing and engagement platform designed choose Etihad.”
for the carrier’s employees. Utilising the engagement platform,
The platform will allow Etihad’s em- employees will be able to vote, comment
Emirates recently revealed that in ad-
ployees to share and propose solutions and provide feedback on shared ideas,
dition to increasing the seasonal fre-
quency of its service to Durban with
to the carrier’s ongoing business chal- thus contributing to the decision-making
four additional flights a week, the lenges, while also highlighting potential process. Following this initial process,
airline is set to add its First Class cabin new ventures for the airline to explore. ideas that are driven forward successfully
to the route. Powered by artificial intelligence, the will receive seed funding and support
Covering the period of 14 June to 4 solution will support and augment written Etihad’s Innovation Lab.
August, travellers to and from Durban business proposals generated by staff, “We’re excited to partner with Etihad
will be able to take advantage of while at the same time enabling open on this integration of Swae. We believe
Emirates’ First Class cabins on the air- feedback and collaboration learning loop. Swae’s platform can help Etihad improve
line’s Boeing 777-300ER. “We recognise that there is an abun- the inclusivity and quality of bottom-up
The aircraft will operate the ad-
dance of great ideas right here in our ideas, and allow employee generated in-
ditional flights in a three-class cabin
organisation and no one knows our busi- novations to significantly influence the
configuration, offering eight seats in
First Class, 42 in Business Class and
ness better than our employees, so we broader strategic direction of the organi-
310 spacious seats in Economy Class. developed this tool to give them the plat- sation, leading to great successes,” said
“As we approach 10 years of op- form they need to innovate,” said Tony Soushiant Zangenehpour, CEO of SWAE.
erations to Durban, introducing our
award-winning First Class experience
is a milestone in our history of opera-
tions to the city. Travellers will have
an opportunity to experience the
luxury product offering the Emirates
is so well-known for, whether they
are heading to Dubai or connecting to
popular destinations across our net-
work including India, UK and the Far
East,” said Fouad Caunhye, regional
manager of Emirates Southern Africa.
“Over the years we have seen
Durban grow into the thriving me-
tropolis it’s become, from its busy port
facilitating global trade to developing
a vibrant culture and distinctive land-
scape, the city has become a hub for
both trade and tourism. The seasonal
frequency increase is a result of the
growing demand for travel in and out
c Employees will be able to vote, comment and provide feedback on shared ideas exercise .
of Durban.”

34 July 2018 · AVIATION BUSINESS www.aviationbusinessme.com


Etihad funds construction of water wells
Thirty water wells in three African nations to address critical shortage of water
AVIATION PARTNERS

Relief organisation Airlink introduces


Governors Council
Council members have committed to advancing Airlink’s mission and the live-saving role that
aviation plays in humanitarian relief

c The rapid-response disaster and humanitarian relief organisation is made up of many partner airlines including Emirates.

HUMANITARIAN AID
Airlink, a global rapid-response disas- Commenting on the newly formed tions and individual donors, Airlink has
ter and humanitarian relief organisa- council, Davies shared: “Navigating the reportedly transported more than 5,000
tion, recently welcomed senior avia- complexities of humanitarian logistics relief workers and three million pounds
tion executives to its newly formed requires a well-supported effort. We are of air cargo to 75 disasters and other
Governors Council. thrilled to have some of aviation’s top humanitarian missions, to date.
The purpose of Airlink is to mobilise leaders lend their expertise and influence “Supporting A irlink through the
the aviation industry to ensure assis- to further our ability to deliver relief to Governors Council is an honour and
tance reaches communities impacted by vulnerable communities.” gives me, and the whole Copa team,
disasters and other humanitarian rises. Since being founded back in 2010, a n oppor t unit y to br ing rel ief to
Council members have committed Airlink has supported more than 80 those needing it most,” said Pedro
to advancing Airlink’s mission and the aid organisation partners in transport- Heilbron, chief executive of f icer of
live-saving role that aviation plays in ing their respective relief workers and Copa Holdings.
humanitarian relief. humanitarian aid free-of-charge or at a “I also feel committed to the impor-
The council will be led by Peter discounted rate, to communities in need tant humanitarian role Airlink plays,
Davies, founder of Airline Management across the world. improving access for the responders, and
Group and chief restructuring offi cer for Supported by more than 40 airlines helping communities in their resilience
South African Airways. and numerous organisations, founda- process following crises.”

www.aviationbusinessme.com July 2018 · AVIATION BUSINESS 35


AVIATION PARTNERS
Embraer unveils data analytics platform
The compahy’s IKON platform is powered by Amazon Web Services
GROUND SERVICES

CONTRACT UPDATE
Round up of MRO agreements and
signings, both in the region Virgin Atlantic signs
and beyond
on AFI KLM E&M
ASL Airlines France picks Caerdav; Lufthansa Technik The MRO provider will oversee com-
supports Meggitt in China; Boeing supplies parts to BA ponent work for the airline’s fleet of
12 A350-1000 aircraft
Caerdav has signed an agreement
CONTRACT
with ASL Airlines France, which
will see the MRO ser vice provider Virgin Atlantic has signed a support services agree-
provide operator support services, ment with AFI KLM E&M that will see the delivery
as well as establish a line mainte- of component support services for the airline’s new
nance stations to ser vice the car- fleet of 12 A350-1000 aircraft, which the first unit is
rier’s Boeing 737NG aircraft. The expected for delivering by summer 2019.
airline currently operates a fleet of As per the agreement, the flight-hour support
15 aircraft of that type. The work contract covers access to a pool of spare parts and
will be completed at the MRO’s the provision of a Main Base Kit in London.
latest facility, which is located at “We’re delighted to be strengthening our relation-
Cardiff Aiport. The site will pro- ship with AFI KLM E&M, whose expertise and
vide maintenance ser vices ASL flexible services have been an asset to us for the
Airlines France over the course of past 20 years,” said Phil Wardlaw, VP of Engineer
the second half of 2019. & Maintenance at Virgin Atlantic.
“Moreover, we know that AFI KLM E&M already
has proven experience in providing support services
Lufthansa Technik has been selected for this new product - an added plus that helped
by Meggitt to support its operations seal our decision.”
in China with repair work on the The deal is the latest in an ongoing partnership
OEM’s components from its repair between the two parties that stretches back almost
centre in Shenzhen. Announced as 20 years. AFI KLM E&M has long delivered com-
part of deal revealed at the Paris Air ponent support services for Virgin Atlantic’s fleet
Show, Lufthansa Technik will oversee of Boeing 787, 747 and Airbus A330/A340 aircraft.
the maintenance and repair of parts, “We’re very satisfied to observe that more and
such as heat exchangers, valves, more operators of Airbus A350 aircraft are solicit-
fire detectors and fire suppression ing our services. With this new partnership, we’re
units. The service will be delivered firstly consolidating our partnership with Virgin
from the 270,000 square foot facility, Atlantic, and also our positioning in a fast-growing
which primarily caters to Meggitt’s market segment,” added Fabrice Defrance, SVP of
Chinese clientele. Commercial at AFI KLM E&M.

Boeing has been tapped by


British Air ways to supply parts
for aircraft manufactured by rival
Airbus. Penned as a deal with the
International Airlines Group (IAG),
Boeing will maintain a global ex-
change inventory for parts related
to BA’s A320 and A320neo aircraft.
To date, the national carrier of the
United Kingdom operates a fleet of
67 A320-200s and 10 A320-200neos.
Part of the deal includes an agree-
ment for three landing gear ex-
changes for the airline’s 777-300ERS.

36 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


Bii appoints James Burley as commercial manager AVIATION PARTNERS
Burley will drive the strategic growth of Bii’s inventory of Boeing and Airbus aircraft spares
GROUND SERVICES

MTU Aero Engines secures orders worth $1.3bn at


last month’s Paris Air Show
The bulk of the orders recorded by the aviation engine specialist over the course of last
week’s air show were related to geared turbofan technology

ORDERS
At the close of last month’s Paris Air MTU Aero Engines also recorded Korean Air inked a deal for 30 aircraft
Show, MTU Aero Engines revealed that that 142 models of the same air- of this type.
it had recorded an order intake valued craft type were ordered by several Commenting on the orders picked up dur-
at more than $1.3bn. unrevealed customers. ing the Paris Air Show 2019, Reiner Winkler,
Roughly 95% of the orders secured by the Elsewhere, Viva Aerobus, a Mexican CEO of MTU Aero Engines, said “Modern
engine manufacturer were memorandums airline, has selected the GTF engine for and efficient engines determine MTU’s
of understanding (MoU) for the geared 41 A321neo aircraft, while SMBC Aviation future in the commercial engine business.
turbofan (GTF) engines of the PW1000G Capital and Aviation Capital Group each “This is demonstrated at the Paris Air
family, which are today utilised in a variety ordered 20 aircraft from the same family. Show by the continued success of the
of short- and medium-range aircraft. As part of its involvement with the GEnx geared turbofan family and the GEnx en-
With the bulk of orders related to programme, MTU Aero Engine also ben- gine. While we are mastering the ramp-up
Airbus aircraft, the single largest order efitted from orders related to the Boeing of these programs, we are also working on
was placed by JetSMART with engines 787 aircraft. the long-term technological prospects for
for 85 A320neo aircraft. During the course of the air show, sustainable aviation,” he added.

cWith the bulk of orders related to Airbus aircraft, the single largest order was placed by JetSMART with engines for 85 A320neo aircraft.

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 37


AVIATION PARTNERS Passenger dies upon landing at DXB
GROUND Brandi Hodges, 40, was travelling to Dubai for a holiday, when she fell ill on Emirates flight
SERVICES

Dubai Airports to AIR CARGO


ban plastics
The company pledges
to remove plastics from
public spaces from 2020
Dubai Airports, the operator of
airports in Dubai, which includes
Dubai International A ir por t
(DXB), has pledged that DXB
will soon ban single-use plastics
from all consumer spaces in the
terminals.
Effective from 1 January 2020,
the initiative is seen as the next
step in Dubai Airport’s efforts
towards sustainability, which cur-
rently consists of the recycling of
43,000 tonnes of paper, glass and
other waste, annually.
Additionally, the airport opera- Saudia Cargo transports 175
tor has reportedly collected 16
tonnes of single-use plastic bottles
Tons of WWE equipment
and bottle caps at DXB over the Saudia Cargo has successfully provided all its logistical capabilities to
past six months alone. bring the WWE wrestling ring equipment of the show
“At an airport that hosts some
90 million people per year, we Saudi Airlines Cargo Company transported 175 Tons of World Wrestling Entertainment
believe we can make a tangible (WWE) equipment all the way to Jeddah, from Maastricht in the Netherlands for the
difference by eliminating single- WWE event that took place at King Abdullah Sports City in June.
use plastics in consumer spaces,” Saudia Cargo has successfully provided all its logistical capabilities to bring the
commented Eugene Barry, EVP, W WE wrestling ring equipment of the show that was forwarded by Sound Moves
Commercial at Dubai Airports. via Saudia Cargo freighters. Boeing 747-8s & Boeing 777s carrying total tonnages
“Today we are making a com- of 175 tons delivered the cargoes in May.
mitment to work with all of our The company also provided special Ground Handling for the heavy loads at King
concession and hospitality part- Abdulaziz International Airport’s Cargo station.
ners to achieve that goal.” The CEO of Saudia Cargo Omar Hariri stressed the national role played by Saudia
Cargo in supporting national & global events, expressing the company’s pride in col-
laborating towards the success of this distinguished sporting event.
The WWE Super Showdown will be hosted in partnership with the Saudi General
Sports Authority, at King Abdullah Sports City Stadium in Jeddah, on June 7. The
event will feature WWE Superstars Roman Reigns, Undertaker, Kofi Kingston, Braun
Strowman, Seth Rollins, Goldberg, AJ Styles & Brock Lesnar, furthermore, the show
will stream live on WWE Network.
In addition, Saudia Cargo supports & transports this global sporting event for the third
time after the huge success in the past two times.
Saudia Cargo, the national Saudi air freight carrier, offers its services to 225 international
destinations & 26 routes within the Kingdom of Saudi Arabia, a member of SkyTeam
Cargo (www.skyteamcargo.com), the world’s leading cargo alliance established in 2000,
further expanding its global network with SkyTeam Cargo members reaching across 900
destinations in more than 175 countries, through a dedicated state-of-the-art freighter fleet.

38 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


Bahrain explores second airport possibility AVIATION PARTNERS
Government Minister reveals 2034 target for the new airport GROUND
SERVICES

Honeywell says new Forge platform can


cut building opex by 25%
Cloud-based enterprise performance management platform can be accessed ‘from your fa-
vourite coffee shop’, company VP says

cFuture variants of the product will be specifically geared for facilities in the industry, aviation, inspection and cybersecurity segments.

OPERATIONS

American Fortune 100 company Honeywell on their overall operation performance, through in-depth building data analyses.
has launched Forge, a cloud-based enter- and the ability to derive business intelli- He added: “Buildings house incredible
prise performance management software gence from their disparate data sources”. and powerful data on the performance
that it said would help the ways in which She added: “Their existing systems and usage of the building; however if that
companies collect, analyse, and use data are disjointed and have shortcomings that data is diffi cult to access, interpret or
from their operations – and cut building slow growth and cut into profitability.” use for meaningful insights, it doesn’t
operating expenses (opex) by 25%. The company said that upon full deploy- help drive a customer’s business.
I n a st atement , the f ir m sa id ment, Honeywell Forge for Buildings would “You can turn on a building in a day
Honeywell Forge had been designed to “help reduce the operating expense of a or less [with Forge] and review the op-
incorporate cybersecurity features, and building portfolio by up to 25% by provid- erations of a building from anywhere
would “convert massive data quantities ing visibility, monitoring, and control of – including your favourite coffee shop.”
from equipment, processes, and people” all building systems and processes”. Forge for Buildings is the fi rst of
into “actionable insights”. Honeywell Connected Enterprise’s the product lines that have been
Honeywell Connected Enterprise’s vice president and general manager for launched, with similar variants to be
president and chief executive officer, Que buildings, David Trice, said the “open, introduced in June and Q4 2019 for the
Dallara, said large enterprises around extensible, intelligent, and easy-to-use” industrial, aviation, inspection, and cy-
the world lacked “top-to-bottom visibility programme would drive business growth bersecurity sectors.

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 39


AVIATION
PARTNERS Microsoft’s Flight Simulator series returns
The popular video game was announced during the annual Electronic Entertainment Expo (E3)
TECHNOLOGY

Midfield Terminal Michelin and Safran complete


to offer 5G network
The terminal will reportedly
be the first in region to offer
successful test of connected tyre
5G network connectivity Announced during the ongoing Paris Air Show, the tyre was
tested on a Dassault Falcon 2000S
PREDICTIVE MAINTENANCE

Michelin and Safran Landing Systems have the development and time to market of an
announced the successful fl ight test of the innovative digital solution that delivers
first connected aircraft tire, PresSense, on exceptional value to our customers.”
the sidelines of the ongoing Paris Air Show. The initial ground tests of the solu-
The test was successfully completed with a tion were successfully completed back in
Dassault Aviation Falcon 2000S on 13 June January 2019. Following the recent tests,
The Midfield Terminal Building (MTB), at the Istres air base in southern France. the next step will focus on analysing the
Abu Dhabi’s new international airport, Designed to enhance maintenance op- solution’s performance with fl ight tests on
will become the first airport terminal in erations for airlines, PresSense is a wireless different aircraft. The project is expected
the region with 5G connectivity when it solution that utilises an electronic sensor to carry on well into early-2020.
opens, delivered by Etisalat. to observe the pressure of aircraft tyres in “Tyres are a major factor in aircraft
The deployment is based on C-Band, real-time. As the data is transmitted wire- safety during takeoffs and landing. With
a 5G digital indoor technology delivering lessly, it saves time for technicians who no PresSense, we can guarantee the right
gigabit per second download speeds. longer have to conduct a manual check on pressure with shorter measurements times,
“We value our customers first and the tyre. The data is easily accessible via under any circumstances and at any airport
foremost, and access to fast cellular ser- a web interface. or in different theatres of operation, for civil
vice is a crucial factor that makes a big “This partnership brings together two or military applications,” said Frank Moreau,
difference for travellers from around world leaders from different markets, SVP, Aircraft Business Line at Michelin.
the world. Technology is at the heart of namely tyres and aircraft systems. Our two “The continuous improvement of safety
our digital transformation strategy and companies share the same values and the is a critical part of Michelin’s approach to
providing our customers with enhanced same passion for innovation,” said Jean-Paul sustainable mobility. The first fl ight of a
connectively services at the Midfield Alary, CEO of Safran Landing Systems. connected tyre is a milestone in our his-
Terminal Building is in line with our “With this programme, we wanted to tory, and we are proud to have shared this
vision of becoming the world’s leading air- pool our talents and skills to accelerate moment with our partner, Safran.”
ports group,” said Bryan Thompson, chief
executive officer of Abu Dhabi Airports.
The introduction of Etisalat’s 5G digi-
tal indoor active systems at the MTB will
bring new business opportunities for
B2C segments as they can use location-
based capabilities of the 5G indoor digital
system to share information and updates
on their products and services.
Etisalat is expanding its 5G footprint
in the country with the installation of
1000 mobile sites underway by end of
2019. This will avail brand new use cases
such as smart machine control, smart
security, 4K uninterrupted videos, holo-
grams, AR/VR and online interactive
cloud gaming.
c The next step will focus on analysing the solution’s performance with flight tests on different aircraft.

40 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


AVIATION
Dubai moves to open drone park PARTNERS
The proposed park will be located within the Dubai Cricket Stadium
TECHNOLOGY

Melbourne Airport opts to extend digital


technologies contract with SITA
The aviation technology firm will continue to deliver its passenger-friendly solutions to the
airport’s international terminal

cSITA’s technologies cover various services at the airport centred on passenger check-in to baggage drop-off.

SMART AIRPORT

Melbourne Airport has announced the passenger journey through the airports Based on SITA’s AirportConnect Open
extension of its ongoing contract with and make the processing experience platform, the technology is expected to
SITA, who delivers a wide range of tech- as unobtrusive as possible,” said Luke be rolled out at other terminals and will
nology solutions aimed at enhancing Halliday, CIO, Melbourne Airport. culminate in more than 400 passenger
the overall passenger experience at “We needed a partner that could join touchpoints. This will include mobile and
the airport. us in delivering against that vision and standard check-in desks, gate boarding,
A key component in the airport ’s provide the best solutions to meet our self-service check-in kiosks, hybrid and
efforts to streamline operations to changing needs as we expand. By extend- standard self-bag drops.
meet traffi c expectations of 70 million ing our partnership with SITA we got “Melbourne Airport’s expansion and
passengers annually by 2038, SITA’s exactly that. Our teams work well together development is focused on delivering a
technologies cover various services and SITA’s expertise and dedication make unique experience for travellers while
at the airport centred on passenger it the ideal transformation partner. maximizing the use of its infrastructure.
check-in to baggage drop -off in the “The flexible hybrid solution designed Our teams have an excellent synergy
International Terminal. and being delivered by SITA will boost which has enabled us to understand
“Technology plays an increasingly im- capacity while maintaining a customer- the airport’s challenges as it expands,”
portant role in the operation of an airport, centric approach and contributing to our said Sumesh Patel, SITA President,
particularly as we strive to streamline the overall success.” Asia Pacifi c.

www.aviationbusinessme.com July 2019 · AVIATION BUSINESS 41


DEPARTURE
LOUNGE

Smarter Luggage
Tracking Future
Dean Porter, head of EMEA Transport and Logistics
Solutions Marketing at Zebra Technologies, outlines the
value of smart luggage tracking

E
very year, 25 million bags are lost IATA mandated a four-tracking point every item of luggage checked into the
or mishandled worldwide with regulation where every checked piece of hold at every stage.
budget travel and a growth in trav- luggage have to be recorded There are Whilst arming staff with mobile
ellers putting pressure on airline four mandatory tracking points at which devices and continuing to digitise the
infrastructure. . In Europe, the risk of lost every checked piece of luggage has to be whole travel infrastructure is a great
luggage is even most prevalent as 7.3 bags recorded; this begins at check-in, when start, airlines and airports must be open
were lost per 1000 passengers, compared the passengers hand over their bags to to harnessing new technology in order
with 2.85 in North America and 1.8 in Asia. the airlines, marking the beginning of to continue to adapt and modernise.
As people look to travel more and visit des- their journey. Here, a unique 10-digit tag Meanwhile, open-source-style commu-
tinations further from homer, airports and number is applied. Following this, bags are nication between airlines and airports is
airlines alike must act swiftly to lessen the once again recorded at the loading stage, paramount to efficiency and safety.
risk of baggage loss, ultimately enhancing when the bag is delivered onto the aircraft; In order to continue to adapt and
their customers’ overall experience. transfer, when custody of the bags changes modernise them must next look at in-
Although travellers have taken ad- between carriers; and finally, at arrival, tegrating AI with the mobile scanners,
vantage of this new way to travel and when passengers receive their bags at ar- computers and central terminal or airline
are capitalising on the new destinations rivals. At smaller, more remote airports, database so that they can start to predict
it opens, lost baggage is a frustrating managing this process was problematic patterns and react quicker to environ-
prospect for travellers and bad business and far from automated digitally. mental and human factors. Not only that
for airlines and airports, especially the At bigger airports, such checks are but they must usher in an open-source-
smaller ones. For many smaller, remote easier to enforce (of course, not always style of communication so that they can
destinations the infrastructure in place perfectly) but, smaller airports, those in all work together to provide consum-
to manage such increasing demand in more remote areas with smaller infra- ers with the best possible experience,
travellers and luggage is basic. structures struggle woefully. All is not increasing visibility and therefore the
Such large quantities of lost luggage lost. More affordable and purpose-built security of luggage.
can only mean one thing - negative travel technology is coming to the rescue and It doesn’t stop there. If AI and open
experiences. To lessen the risk of bag- is becoming even easier to roll out. communication are combined with mobile-
gage loss and ultimately enhance travel- Fourteen Greek Islands for instance equipped employees and also case tagging
ler’s overall experiences, airlines and had difficulty in managing the increase in as well as autonomous delivery vehicles,
airports are looking for solutions to end tourist footfall whilst still complying with travellers would find their bags moved into
the lost luggage lunacy. the IATA regulation. To boost efficiency a carousel by a friendly airport employee,
There are several factors that impact and improve customer experience, Zebra transferred to an autonomous delivery
lost luggage including budget cuts, ever Technologies worked with its partner vehicle (which delivers when the flight is
increasing passenger footfall and pas- Phi Data to automate baggage tracking scheduled to, delay or not) and offloaded
sengers travelling with multiple bags on in 14 Greek airports. By arming workers along with a notification to a mobile phone
transfer flights. Forty-six percent of mis- with enterprise mobile devices connected to notify safe arrival.
placed bags were lost during flight con- to an overarching network, bags can be With mobile solutions already in place
nections last year. If that weren’t enough, scanned and identified much faster whilst improving baggage handling and exciting
suitcases falling from airport delivery also still being recorded accurately. This prospects for the future on the horizon,
vehicles and going unreported, baggage increases worker efficiency and ultimate- travellers should be open-minded about
remaining on the aircraft and unidentifi- ly leads to fewer mistakes. All scans link their next holiday and not worry about
able lost luggage compound the issue. to a central database, giving both workers whether their bags will arrive but wheth-
In an attempt to curb lost luggage, the and passengers increased visibility over er they’ve packed everything they need.

42 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com


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Keep Quality Moving
IPLEX NX – The right tool for the job

An aircraft carries far more than just passengers; it also carries the legacy and reputation of every supplier whose
products are involved in its construction. With so much at stake with every flight, it’s essential to know that every
part of an aircraft has been measured, tested, and analysed to help ensure optimal performance.

The new IPLEX NX from Olympus with 3D modelling, is designed to help increase probability of detection and
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· Ultra Wide Field 3D Measurement allowing a 4 x greater measurement area over conventional videoscopes
· Advanced imaging options as standard, giving full control over sharpness, saturation and other image parameters

Learn more at: www.olympus-ims.com

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