< PreviousNOVEMBER 2024 10 NEWS UPDATE Boeing announced plans in October to slash 17,000 jobs, nearly 10% of its global workforce, as it grapples with the fi nancial fallout from the prolonged strike involving thousands of its US workers. In a message to employees, CEO Kelly Ortberg said that the layoffs would impact executives, managers and employees, adding that they were necessary to align the company with its “fi nancial reality.” The strike, involving nearly 33,000 workers from Boeing’s West Coast facilities, has been ongoing since September 13, over demands for a 40% pay increase, improved employment benefi ts, and the reinstatement of a defi ned benefi t pension, signifi cantly impacting the company’s bottom line. The walkout, led by Boeing’s largest worker union, The International Association of Machinists and Aerospace Workers (IAM), has halted production of the company’s 737 MAX, 777 and 767 aircraft, contributing to a record $5 billion BOEING SLASHES 17,000 JOBS, DELAYS 777X PRODUCTION loss in the third quarter. In addition to the layoffs, Boeing revealed plans to push the initial deliveries of its already delayed 777X aircraft to 2026. “On the 777X programme, the challenges we have faced in development, as well as from the fl ight test pause and ongoing work stoppage, will delay our timeline,” Ortberg said. The company also announced it will build and deliver the contracted 767 Freighters and conclude the aircraft’s commercial programme in 2027. Meanwhile, the KC-46A Pegasus programme, a military tanker based on the 767, would not be impacted by these changes. The latest decisions are critical in Boeing’s recalibration strategy as the company grapples with fi nancial challenges, operational issues and heightened regulatory scrutiny, particularly following the mid-air emergency involving an Alaska Airlines’ 737 MAX aircraft in January. Previous negotiations between the company and the IAM have failed to break the deadlock, with talks ending without resolution. Boeing f iled an unfair-labour- practice charge with the National Labor Relations Board, accusing the IAM of not bargaining in good faith, a claim the IAM described as groundless. IAM leaders criticised Boeing’s attempt to bargain in the press, noting that it was detrimental to the bargaining process. They also warned that the company’s unwillingness to negotiate would only prolong the strike. The walkout has signifi cantly added to Boeing’s ongoing challenges, with rating agency S&P estimating the strike is costing the company $1 billion a month, and warning that it might risk losing its investment-grade credit rating. According to analysts, Boeing may need to raise between $10 billion and $15 billion to maintain its investment-grade credit rating, which is currently hovering just one notch above junk status. The workforce downsizing follows an extended strike involving 33,000 of the company's US West Coast workers AVB_Nov2024_10-15_News_13423723.indd 1025/10/2024 17:1611 NOVEMBER 2024 NEWS UPDATE Dubai’s fl agship carrier, Emirates Airline, has reinstated its daily passenger services to Lagos, Nigeria, ending a two-year suspension, over blocked airline funds. Emirates halted all fl ight operations to Nigeria in September 2022, after having over $85 million of its revenues blocked by the country. In June 2022, the International Air Transport Association (IATA) confi rmed that Nigeria has blocked $464 million in revenue from international airlines, warning that the decision will “damage the country down the road.” The resumption of fl ights will restore connectivity to one of Africa’s key economic hubs, facilitating global trade and strengthening trade ties between the UAE and Nigeria. “This has been a long-awaited moment, and we are excited to resume operations to Lagos, helping reconnect travellers seamlessly to and through Dubai, coupled with a consistent, world-class experience onboard,” said EMIRATES RESUMES SERVICES TO LAGOS AFTER TWO-YEAR HIATUS Adnan Kazim, Emirates’ Deputy President and CCO, reaff irming the airline’s commitment to supporting the Nigerian aviation industry’s growth and offering travellers and businesses more choices and connectivity to key destinations across its network. The reinstated Dubai-Lagos service will be operated by Emirates’ Boeing 777 aircraft fl eet, featuring eight First Class suites, 42 Business class seats and 304 economy class seats. Flight EK783 will depart Dubai at 09:45 AM, arriving in Lagos at 03:20 PM. Meanwhile, the return fl ight, EK784, will take off from Lagos at 05:30 PM and land in Dubai at 05:10 AM the following day. The daily service schedule has been optimised to offer seamless connections to key destinations across Europe, the US, the Far East and the wider Middle East and GCC regions, enhancing travel options to and from Nigeria. To support travel to Dubai or onwards, Emirates will facilitate 48-hour and 96- hour Dubai visa applications for travellers from Nigeria, an offer which is exclusive to the airline. Furthermore, the airline’s loyalty programme, Emirates Skywards, had reinstated previous tier status levels for members to ensure the continuation of earned benefi ts and recognition. In addition to passenger services, Emirates SkyCargo offers more than 300 tonnes of belly-hold cargo capacity in and out of Lagos every week, facilitating trade with key international markets in the UAE, Bahrain, Malaysia, and Hong Kong. Moreover, the airline will facilitate the import of essential goods, including pharmaceuticals, electronics, and general cargo from various markets. The resumption of services aligns with Emirates’ broader strategy to expand its footprint in Africa. In September, the airline expanded its services to South Africa with the launch of a fourth daily flight to Johannesburg, offering travellers more options and enhanced connectivity on the popular route. The airline had previously suspended all fl ights to the country over $85 million of blocked revenues AVB_Nov2024_10-15_News_13423723.indd 1125/10/2024 17:17NOVEMBER 2024 12 NEWS UPDATE The UAE’s national carrier, Etihad Airways (Etihad), is set to reintroduce the seventh Airbus A380 into its operational fleet by June 2025, to provide the needed capacity on high-demand routes. Etihad Airways’ Chief Revenue and Commercial Offi cer, Arik De, revealed the airline’s plans to deploy the A380 on a new route, which was never served by the aircraft type, during the Routes World conference, held in Bahrain. The decision comes in response to delays in new aircraft deliveries, which challenged the carrier’s capacity to capitalise on the growing demand for air travel. Initially, Etihad planned to reintegrate fi ve A380s into service, which were originally grounded in 2020 due to the global pandemic. Earlier this year, CEO Antonoaldo Neves stated that the airline was considering the reintroduction of additional A 380s based on market conditions. ETIHAD AIRWAYS' A380 TO RETURN TO THE SKIES IN 2025 Currently, Etihad operates its A380s on routes to London Heathrow (LHR) and New York (JFK), with plans to extend A380 services to Paris from 1 November, and Singapore from 1 February 2025. “We decided to bring four back in fl ights to London Heathrow and JFK, then the fl ights did much better than anyone expected and that triggered getting number fi ve in,” De remarked, adding that the A380 services to Paris saw strong demand with early bookings. Etihad’s A380 features 68 Economy Extra legroom seats, 337 Economy Smart Seats, and 70 private suites in Business Class, designed in partnership with Armani/Casa, with a dedicated lounge area. Furthermore, the aircraft features The Residence, Etihad’s signature three-room suite, along with nine First Apartments, offering designer tablew are, premium s e atin g , an ottoman that converts into a bed, and an exclusive shower room. In September, Etihad reported a 36% upsurge in passenger traffi c during the fi rst eight months of 2024, compared to the same period in the previous year. The airline welcomed 12 million passengers between January and August, bringing its total 12-month passenger count to over 17 million, 70% higher than the full year 2022. In August, the airline carried 1.7 million passengers, maintaining an average load factor of 89%. During the reported period, Etihad’s fleet expanded to 95 aircraft, up from 79 in the same period last year. “In the month of August, we brought the last two of the six A321neos expected in 2024 into operation. In addition, we are now fl ying to 10 more passenger destinations than at the same [period] last year,” Neves revealed. The airline also unveiled its summer schedule for 2025, featuring double- daily services on several key European routes including Paris, Milan, Rome, Manchester, Frankfurt, Munich, Zurich, Barcelona, and Madrid. The decision comes as the carrier seeks to capitalise on the growing demand for air travel AVB_Nov2024_10-15_News_13423723.indd 1229/10/2024 14:5013 NOVEMBER 2024 NEWS UPDATE Qatar Airways is set to acquire a minority 25% stake in Virgin Australia from Bain Capital, bolstering its footprint in the Australian market and strengthening its existing partnership with the Australian airline. The deal, subject to the country’s Foreign Investment Review Board (FIRB) approval, builds upon the codeshare partnership between the two carriers, launched in 2022. If approved, the investment is expected to intensify competition in the Australian market, providing travellers with more travel options and lower fares. Furthermore, it will offer passengers access to a wider range of destinations across both airlines’ global networks. The expanded collaboration, pending clearance from the Australian Competition and Consumer Commission (ACCC), would allow Virgin Australia to launch fl ights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting seamlessly with Qatar Airways’ global network, and offering Australian travellers over 100 new connecting options across Europe, QATAR AIRWAYS TO ACQUIRE 25% STAKE IN VIRGIN AUSTRALIA the Middle East, and Africa. Additionally, the agreement would see Virgin Australia reintroduce wide-body aircraft to its fl eet through a wet lease arrangement starting in mid-2025. The move would mark the reinstatement of wide-body operations since the airline retired its fl eet during the COVID-19 pandemic, a strategic step that would allow the carrier to evaluate the aircraft viability and revive competition on long-haul routes. Virgin Australia previously operated Airbus A330 and Boeing 777 wide-body aircraft on ultra-long-haul routes to the US. However, it currently operates an all-Boeing 737 fl eet. The equity investment marks a signifi cant step towards Virgin Australia’s anticipated public listing and is expected to create job opportunities and stimulate economic growth in Australia’s aviation and tourism sectors. “This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confi dence in Australian aviation,” Virgin Australia Group CEO, Jayne Hrdlicka said, stressing that the partnership will further strengthen the airline’s ability to compete over the long term, which will inevitably translate into more choices and better value airfares for consumers. On his part, Qatar Airways Group CEO, Badr Mohammed Al-Meer highlighted the investment’s strategic importance, stating, “We are really pleased to announce our proposed strategic investment in Virgin Australia. The alignment of our two airlines is signifi cant, the relationships are deep, and we could not be more proud to bring even greater value and choice to all Australians. The investment further demonstrates our strategic alignment with Virgin Australia and our collective ambition to deliver the best possible service and value to Australian passengers.” The deal comes nearly a year after the Australian government rejected Qatar Airways’ request for additional fl ights into the country. The investment will intensify competition in Australia’s aviation market, providing travellers with more travel options at lower rates AVB_Nov2024_10-15_News_13423723.indd 1325/10/2024 17:18NOVEMBER 2024 14 NEWS UPDATE Dubai Airports announced a major partnership in October with Etihad Clean Energy Development Company (ESCO), a subsidiary of the Dubai Electricity and Water Authority (DEWA), to launch the world’s largest rooftop solar panel installation project at an airport. The agreement, inked on the sidelines of the World Green Economy Summit held on 2-3 October, marks a signifi cant step toward reducing the carbon footprint of the UAE’s aviation sector. The phased project, set to be fully operational by 2026, will see the installation of 62,904 solar panels across Dubai International Airport (DXB) and Al Maktoum International Airport (DWC). Once complete, the panels will have a total capacity of 39 megawatts peak (MWp), generating 60,346 megawatt- hours (MWh) of clean energy per year. Furthermore, the solar panels, which will be installed on passenger terminals and concourses, will offset 23,000 tonnes of CO2 annually, equivalent to taking DUBAI AIRPORTS, ESCO INK MAJOR AGREEMENT TO BOOST SUSTAINABILITY approximately 5,000 cars off the road or powering 3,000 homes for one year. The generated energy will cover up to 6.5% of DXB’s power needs and 20% of DWC’s energy requirements, supporting Dubai Airports’ strategy to drive greener, smarter, and more sustainable operations. “Airports are signif icant energy consumers, but with that comes tremendous oppor tunity and responsibility to drive real change. For us, this is not just about installing solar panels; it’s about embedding sustainability into the core of everything we do,” Dubai Airports CEO, Paul Griffi ths said, stressing that the clean energy generated from renewable sources will play a key role in reducing the airport’s carbon footprint and future-proofi ng its operations. “This is about setting the standard and leading the way for what a truly sustainable airport can achieve,” he added. Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of Energy, and Managing Director and CEO of DEWA, highlighted the project’s alignment with the UAE’s broader sustainability goals. Al Tayer noted that Dubai is on track to meet its ambitious clean energy targets, with plans to source 25% of its energy from renewable sources by 2030 and achieve 100% clean energy by 2050. This initiative is part of Dubai Airports’ broader environmental strategy, which includes strategic partnerships across the aviation sector and collaborative efforts within the oneDXB community. In addition to expanding solar energy use, Dubai Airports has introduced a range of measures to reduce its carbon footprint, such as retrofi tting LED lights, optimising cooling systems, transitioning to biodiesel-powered vehicles, and reducing food waste to landfi lls. The project builds on existing solar installations at DXB’s Terminal 2 and Concourse D, where solar energy has already contributed to lowering emissions and energy consumption. The project involves installing 62,904 solar panels across Dubai International Airport (DXB) and Al Maktoum International Airport (DWC) AVB_Nov2024_10-15_News_13423723.indd 1425/10/2024 17:1815 NOVEMBER 2024 NEWS UPDATE Parkin Company (Parkin), the provider of paid public parking facilities and services in Dubai, signed a Memorandum of Understanding (MoU) in October with Skyports, the exclusive developer and operator of vertiport infrastructure for advanced air mobility (AAM) solutions in the UAE. The collaboration aims to consolidate Parkin’s network and technological capabilities and Skyports’ expertise in the development and operation of integrated air taxi infrastructure. Under the agreement, the companies will jointly establish parking facilities at vertiport sites, as well as explore opportunities to develop new electric take-off and landing (eVTOL) aircraft infrastructure across Parkin’s network to support the service expansion. Additionally, the partnership will involve the implementation of Parkin’s advanced access control technologies, payment systems, and enforcement strategies at relevant vertiport locations to ensure a seamless customer experience. PARKIN, SKYPORTS PARTNER TO ENHANCE DUBAI'S AIR TAXI INFRASTRUCTURE “As the largest provider of paid public parking facilities and services in Dubai, Parkin has a systemic role in enabling mobility to support the expansion plans of the emirate,” Parkin CEO Mohamed Abdulla Al Ali said, noting that the implementation of Skyports’ vertiport infrastructure, utilising Parkin’s network, presents a signifi cant opportunity to expand the platform’s capabilities. Furthermore, Al Ali highlighted that the collaboration aligns with the companies' shared commitment to developing and implementing new, multimodal transport technologies to enhance connectivity for Dubai’s residents and visitors while supporting its green mobility targets. Skyports’ CEO, Duncan Walker, emphasised the partnership’s signifi cance in advancing Dubai’s vertiport infrastructure and accelerating the adoption of AAM solutions. “Access to Parkin’s comprehensive footprint will unlock opportunities to develop our vertiport infrastructure throughout the city, accelerating the adoption of integrated, multimodal transport solutions. Our joint commitment to developing new, sustainable technology solutions will facilitate an enhanced passenger experience and support the adoption of air taxi services,” he stated. Under a 49-year agreement with Dubai’s Roads and Transport Authority (RTA), Parkin was granted exclusive rights to operate and manage paid public parking services across the emirate, in line with the city’s strategy to develop a safe and effi cient mobility ecosystem. The UAE has made signif icant strides towards becoming a premier hub for AAM solutions, with Dubai and Abu Dhabi set to launch commercial air taxi services by 2026. In 2023, HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai approved the designs of Dubai’s vertiports, marking a key step in the emirate’s strategy to become the world’s fi rst city with a fully developed network of vertiports. The collaboration consolidates Parkin’s technological capabilities with Skyports’ expertise in developing integrated air taxi infrastructure AVB_Nov2024_10-15_News_13423723.indd 1525/10/2024 17:19COVER STORY | EVTOLS NOVEMBER 2024 16 AVB_Nov2024_16-21_Cover Story_13430418.indd 1625/10/2024 17:20EVTOLS | COVER STORY 17 NOVEMBER 2024 Picture this: you wake up, enjoy your morning coffee, and glance at your watch. No more frantic rushes through congested streets or battling fellow commuters. Instead, you make your way to the nearest vertiport, where a cutting-edge air taxi awaits to whisk you up and away from ground traffi c. In minutes, you're airborne. Before you've even fi nished scrolling through your morning emails, you're soaring above the gridlock and reaching your offi ce rooftop in a fraction of the time. This is no longer a far-fetched dream but an imminent reality, thanks to advancements in electric vertical take-off and landing (eVTOL) aircraft and advanced air mobility (A AM) technologies, set to revolutionise urban transport. As these eco-friendly, efficient aircraft edge closer to certifi cation and commercial operations in key cities across the Middle East, aircraft developers, regulators, and governments are closely collaborating to bring this vision to life. THE FUTURE IS NOW AS EVTOLS PREPARE FOR TAKE-OFF, URBAN COMMUTING IS SET FOR A REVOLUTIONARY TRANSFORMATION, ONE THAT PROMISES FASTER, GREENER ALTERNATIVES TO GROUND TRANSPORT EVTOLS AND THE NEW ERA OF URBAN MOBILITY Despite eVTOLs’ immense potential, the road to commercial A AM operations is not without obstacles. A new era in urban mobility According to the United Nations (UN), around 2.5 billion more people, nearly 68% of the world's population, are projected to live in cities by 2050. As urban populations grow, ground transportation systems will struggle to keep pace; this is where eVTOLs come into play to alleviate urban congestion and reduce travel times. Operating on short, intra-city routes, air taxis promise a quicker and more effi cient mode of transport for daily commuters, tourists, and even emergency services, at prices competitive with conventional transport options. The UAE and Saudi Arabia have already positioned themselves as early adopters in the Middle East, with US eVTOL developers Joby Aviation (Joby) and Archer Aviation (Archer) set to launch operations in Dubai and Abu Dhabi by as early as 2026. In April, Archer signed a framework agreement with the Abu Dhabi Investment Office (ADIO) for the construction of ver tipor ts , the manufacturing of the company’s Midnight aircraft in-country, and air taxi operations and training across the region, as well as the establishment of its international headquarters and Centre of Excellence in Abu Dhabi. In late 2023, the Swedish vertiport developer, Kookiejar, signed a letter of intent with Embraer’s Eve Air Mobility to collaborate on Urban Air Traffi c Management (ATM) in Dubai, paving the way for the service roll-out in 2026. Meanwhile, in Saudi Arabia, the national carrier Saudia has signed an agreement with Germany’s eVTOL developer Lilium to acquire up to 100 aircraft, marking the largest order of its kind to date. Unpacking the technology Unlike helicopters, which rely on a single large rotor, eVTOLs use advanced propulsion systems of multiple electric rotors for lift and manoeuvrability. AVB_Nov2024_16-21_Cover Story_13430418.indd 1725/10/2024 17:20COVER STORY | EVTOLS NOVEMBER 2024 18 This not only makes them more energy-effi cient but also signifi cantly quieter compared to helicopters and ideal for urban environments. The real challenge, however, lies in developing batteries capable of supp or t ing longer, more frequent fl ights. Currently, most eV TOLs have a maximum range of up to 100-150 miles and can operate for 20 to 60 minutes on a single charge. While this allows for short intra-city trips between urban centres, it limits their ability to serve longer routes. Despite these limitations, the market is poised for significant grow th in the coming decades. Morgan Stanley estimates the industry could be worth $1.5 trillion by 2040, creating opportunities for further advancements in battery technology. Navigating regulatory challenges While technological hurdles are being addressed, the regulatory landscape is still catching up. With air taxis set to be integrated into existing airspaces alongside helicopters and small aircraft, current air traffi c management systems must evolve to handle the increased traffi c in lower urban airspace. Furthermore, eVTOLs will operate in Archer secured $400 million in funding from Stellantis to scale its Midnight eVTOL production to 650 aircraft per year Saudia placed an order for up to 100 eVTOLs from Germany's Lilium, marking the largest order of its kind to date AVB_Nov2024_16-21_Cover Story_13430418.indd 1825/10/2024 17:21EVTOLS | COVER STORY 19 NOVEMBER 2024 dense urban spaces in close proximity to buildings and other aircraft, increasing the risk of accidents. To mitigate these risks, the Federal Aviation Administration (FAA), the European Union Aviation Safety Agency (EASA), and the General Civil Aviation Authority (GCAA) are working on creating frameworks to certify these aircraft and ensure their safe operations in crowded urban airspace. In addition to the challenges associated with airspace control, these regulatory frameworks will need to address noise pollution and public safety concerns to ensure these aircraft can be seamlessly integrated into existing air transport ecosystems. The economics of air taxis While the high costs associated with eV TOL development, production, maintenance, and regulatory approval may indicate that eVTOLs will cater primarily to premium markets, air taxi services are expected to be competitively priced, with some reports suggesting fares as low as $100 (AED 350) for intra-city trips and $220 (AED 800) for fl ights between emirates, comparable to conventional ground ride-hailing services. With the long-term goal being to democratise urban air mobility, air taxis will require significant investments to achieve economies of scale in production and develop the necessary vertiport infrastructure to facilitate take-offs, landings, and battery charging. The emerging eVTOL technology has attracted signifi cant investments from major corporations and investors. The German air taxi developer, Volocopter, has already raised $538 million in start-up support from various stakeholders, including a $175 million Series E investment from Saudi NEOM. Similarly, Archer secured $1.1 billion in funding as of August 2023, from various Dubai is set to become the world’s fi rst city with a commercial, city-wide electric air taxi service by 2026 shareholders including Stellantis, Boeing, United Airlines, and ARK Investment Management (ARK Invest). In August 2024, the manufacturer inked an agreement with Stellantis for up to $400 million to scale Midnight production to 650 aircraft annually, along with a %230 million equity capital from strategic investors. In October, Toyota announced plans to invest an additional $500 million to support the certification and commercial production of Joby’s air taxi, bringing its total investment in the eVTOL developer to $894 million. Vertiports infrastructure The success of air taxis depends heavily on the development of supporting infrastructure and robust Air taxis offer a quicker and more effi cient mode of transport at prices competitive with conventional ground transport Dubai’s initial AAM network will consist of four vertiports AVB_Nov2024_16-21_Cover Story_13430418.indd 1925/10/2024 17:21Next >