NEWS UPDATENEWS UPDATE || FACTS & FIGURESFACTS & FIGURES || IN-DEPTH ANALYSISIN-DEPTH ANALYSIS || TRADE COLUMNSTRADE COLUMNS MRO ME & AIME 2019 A roundup of key deals signed at the co-located events SECURING AEROSPACE Thales Group’s Chairman and CEO talks cybersecurity in aviation Download the free Aviation Business app and be the fi rst to read the latest issue on your mobile devices. 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FLYING HIGH THE LATEST BUSINESS AIRCRAFT TRENDS p30 Dubai International’s transformation into a destination experience, sustainability initiatives and plans for southern runway closure AN ITP MEDIA GROUP PUBLICATION THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | VOLUME 18 ISSUE 03 MARCH 2019 DXB Db i I ttil’ tfti DXB DESTINATION CUTIVES IN THE MIDNTN THE MTTHNTHHEEMIMIDDMNTHE MIDDTHE MIDDDDDDDNTHE MIDDIN THE MIDDHE MIDDHEE MMMTHE MIDDS I THHEE MMMIDDDDDLLLEEE EASEAAASSTTTLLLEEEEASEAAASSSTTTTLLE ELEEE EAASSTT ||||MMEE1E 18 ISSUEISS8ISSSUESUSU18 ISSU18 ISSUEEME 1MMEE 8 S UUMMEE 88 SSUVVVOOOOLLLUUUMMMVOLVVOLUOLUMOLOLLUUUMMMV UMM03 Etihad Airways and Royal Jordanian ink codeshare partnership Middle East air cargo growth fl atlines in December Etihad fl ies His Holiness Pope Francis home following historic UAE visit Flights at DWC to increase by 700% during DXB’s runway refurbishment Air Arabia reports $83.5m in accumulated loss due to Abraaj exposure Oman to see 40 million airport passengers by 2030 Dubai Airports unveils new DXB brand and vision 8 9 10 11 12 12 14 DATA PAGE CRITICAL INVESTMENTS Boeing: Middle East region will require $745bn in aviation services through 2037 ONE-ON-ONE END OF AN ERA Analyst Saj Ahmad shares his thoughts on Airbus’ decision to cease A380 production 18 COMMENT SECURING AEROSPACE Patrice Caine, chairman and CEO of Thales Group, on cybersecurity in aerospace 20 COVER STORY REIMAGINING THE DXB EXPERIENCE Paul Griffi ths, CEO of Dubai Airports, breaks down Dubai International’s rebrand, sus- tainability initiatives, and the plan behind DXB’s upcoming southern runway closure THE FRONT 24 DATDATAPAPAGEAGE 16March 2019 · AVIATION BUSINESS CONTENTS 4 www.aviationbusinessme.com INTRO MRO GROUND SERVICES British Airways Showcases Boeing 747 With Throwback BOAC Livery Joramco secures Part-145 approval for B737 Max and A320neo Etihad Cargo chosen to fl y 68 horses to Longines Masters of Hong Kong 42 44 47 AVIATION PARTNERS AVIATION PARTNERS ETIHAD AIRWAYS PARTNERS WITH MICROSOFT The ICT company and the UAE’s national carrier will work together to launch an in-house AI academy FEATURE KEEPING THE GEARS TURNING AVB’s roundup of key deals signed during this year’s edi- tions of MRO Middle East & Aircraft Interiors Middle East 36 INTERVIEW TAKING TO THE SKY IN STYLE TOUCHING BASE WITH DASSAULT AVIATION AND SAUDIA PRIVATE AVIATION, AVB EXPLORES THE LATEST IN BUSINESS JETS TRENDS AND THE SEGMENT’S PROGRESS IN THE MIDDLE EAST 30 48With the lowest per-seat fuel use in its class, the 737 MAX family is the most effi cient—and profi table—single-aisle family in the skies. It also boasts a record-setting reliability rate. And with Boeing Sky Interior creating an unrivaled passenger experience, it’s easy to see why 737 MAX is the single-aisle family of the future. THE SUPERIOR SINGLE-AISLE FAMILY boeing.com/737MAXMarch 2019 · AVIATION BUSINESS www.aviationbusinessme.com 6 EDITOR’S LETTER Alexander Sophoclis Pieri Editor, Aviation Business Alexander.Pieri@itp.com Twitter: @AVB_ME Facebook: facebook.com/AviationBusinessMiddleEast LinkedIn: linkedin.com/company/aviation-business-me While there is a treasure drove stories that came out over the course of February, which I could delve into, the one that I’ll talk about for a bit is this IFE camera story that recently went viral. After a tweet post from a passenger fl ying on Singapore Airlines, who took a picture of a camera that was part of the aircraft’s seatback in-fl ight entertainment (IFE) screen, both Singapore Airlines and American Airlines (who also uses such systems) received criticism over privacy concerns. The Airline Passenger Experience Association (APEX) later released a press releases clarifying that while in-fl ight cam- eras are not currently in use by airlines today, there is a strong possibility that the technology will be used to off er passenger services in the future. It’s easy to see where this will be going. Such systems could pro- vide a new way of communicating with other passegners or fl ight while onboard the aircraft. Also, once airlines have the capability to provide robust and stable onboard connectivity, passengers will be able access VoIP-related services and call home, providing Mom & Dad regualr updates on the fl ight. So much for I’ll call you when I land. It definitely will be a useful service, especially for those busy bees that can’t grasp the concept of “I’m flying now. I’ll look at it once I am back on land”, but imagine if the service was compromised. Either by somebody else onboard or by a hacker enjoying his morning all the way on Pitcairn Island. I’ve not got much of a mug to look at while I’m awake, but I can only imagine the horror of my slobbering face while passed out on a 17-hour transatlantic flight. The Internet is safer without it. There is also that small worry that the video feed will be used by marketers to better analyse your preferences and target you with specifi c products. Nah! My data is secure. I’m sure that will never happene... Safe Travels! I can See you PO Box 500024, Dubai, UAE Tel: + 971 4 444 3000 Web: www.itp.com Offices in Dubai, Abu Dhabi, London & Mumbai ITP MEDIA GROUP CEO Ali Akawi Managing Director Alex Reeve Group Editorial Director Greg Wilson EDITORIAL Editor Alexander Sophoclis Pieri Tel: +971 4 444 3305 email: alexander.pieri@itp.com ADVERTISING Group Sales Director Mark Palmer Tel: +971 4 444 3398 email: mark.palmer@itp.com ITP LIVE General Manager Ahmad Bashour Tel: +971 4 444 3549, email: ahmad.bashour@itp.com PHOTOGRAPHY Senior Photographers Rajesh Raghav, Efraim Evidor, Richard Hall, Staff Photographers Lester Apuntar, Aasiya Jagadeesh,, Grace Guino, Fritz Asuro, Ajith Narendra PRODUCTION & DISTRIBUTION Group Production & Distribution Director Kyle Smith Production Manager Basel Al Kassem Production Coordinator Imad Aad Outsource Manager Aamar Shawwa Senior Image Editor Emmalyn Robles CIRCULATION Head of Circulation Vanessa D’Souza CIRCULATION EXECUTIVE Loreta Regencia MARKETING Director of Awards & Marketing Daniel Fewtrell Events Manager Teri Dunstan ITP GROUP Chairman Andrew Neil CEO Ali Akawi CFO Toby Jay Spencer-Davies Subscribe online at www.itp.com/subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. Published by and © 2018 ITP MEDIA GROUP FZ-LLC MEDIAwww.amacaerospace.com AMAC Aerospace is a world leader in Maintenance and Completion services for both narrow and wide-body VIP aviation. Our bespoke handling of VIP maintenance projects is world-renowned and our “Return to Service” are world class for completions. AMAC’s hangars are fully equipped with the latest technologically advanced equipment and manned by certified personnel. We offer a full spectrum of maintenance services and welcome the oppor- tunity to serve you in any capacity. EXCELLENCE IN AVIATIONRADAR March 2019 · AVIATION BUSINESS 8 www.aviationbusinessme.com UAE’s national airline, Etihad Air- ways, has signed a codeshare partner- ship with Royal Jordanian, the fl ag car- rier of Jordan. With sales starting back on the 7 February and the fi rst travel date kicked off on 15 February, the two airlines will work closely together to service select points in Europe, North Africa and Canada. The landmark agreements marks the fi rst instance that the two carriers have signed such a partnership. As per the agreement, Etihad Airways will place its ‘EY’ code on all Royal Jordanian’s fl ights operating from Abu Dhabi via Amman’s Queen Alia International Airport that are headed to Larnaca and Berlin. Destinations such as Algiers, Tu- nis, Vienna and Montreal are expected to be added to the agreement in the near future. Similarly, Royal Jordanian will add its ‘RJ’ code on Etihad Airways fl ights from Amman to Abu Dhabi and vice versa, along with services from UAE’s capital to Brisbane and Seoul. Following government approval, the carrier will then market Etihad fl ights from Abu Dhabi heading to Ahmedabad, Banga- lore, Calicut, Cochin, Delhi, Chennai, Mumbai, Hyderabad, Trivandrum, Ma- nila, Beijing and Shanghai. “We are delighted to have Etihad Airways besides our codeshare partners who help us grow in different markets. This move is bound to expand our pres- ence in Asia and Australia, which are key destinations for many RJ custom- ers,” said Stefan Pichler, Royal Jorda- nian’s president and CEO. “This commercial partnership offers convenient transiting in Amman and Etihad Airways and Royal Jordanian ink codeshare partnership BUSINESS The two airlines will work closely together to service select destinations in Europe, North Africa and Canada Abu Dhabi to their fi nal points while ex- periencing a streamlined level of services to the destinations covered by the agree- ment onboard two modern fl eets of air- craft,” he added. One of the longest standing carriers active within the Middle East region, Royal Jordanian has maintained fl ights to Abu Dhabi since 1970. In the present day, the airline today fl ies nine weekly fl ights with twice daily frequency during the summer months. Operating the Abu Dhabi to Amman route since December 2003, Etihad Air- ways currently runs two daily fl ights between the two capitals through a mix of Boeing 787-9 Dreamliner and Airbus A320 aircraft. Royal Jordanian has maintained flights to Abu Dhabi since 1970. “This partnership reinforces the deep cultural, tourism and trade connections between the UAE and Jordan, and opens up a new world of opportunities for our customers,” said Tony Douglas, group CEO, Etihad Aviation Group. “Royal Jordanian, as one of the old- est and most experienced airlines in the region, and Etihad as one of the young- est and most acclaimed. Both share the common values of genuine Ara- bian hospitality and service, combined with the next-generation fl eets, envi- able reputations for effi ciency and reli- ability, and a combined network span- ning the globe. This is the fi rst phase of what we hope is a long-lasting and expanding partnership.” India’s SpiceJet set to launch fl ights to Jeddah The destination is the third off ered by Indian carrier in the Middle EastRADAR 9 March 2019 · AVIATION BUSINESS www.aviationbusinessme.com Gulf Air heads to Malaga Costa del Sol The seasonal destination will be operated by the airline from 14 June to 15 September 2019 Middle East carriers’ freight volumes in- creased by just 0.1% year-on-year in De- cember while capacity increased 4.5%, the International Air Transport Associa- tion (IATA) said on Wednesday. The December growth contributed to an annual increase in demand of 3.9% in 2018 – the third fastest growth rate of all the regions. Annual capacity increased by 6.2%, IATA said, adding that the region continues to be affected by geopolitical issues. Globally, IATA said that demand grew by 3.5% compared to 2017. This was signifi cantly lower than the 9.7% growth recorded in 2017. Freight capacity rose by 5.4% in 2018, outpacing annual growth in demand. This exerted downward pressure on the load factor but yields proved resilient. Air cargo’s performance in 2018 was Middle East air cargo growth fl atlines in December PERFORMANCE International Air Transport Association says region sees 3.9% demand growth during 2018 despite December slowdown sealed by a softening in demand in De- cember. Year-on-year, December de- mand decreased by 0.5%, the worst per- formance since March 2016. International e-commerce grew in 2018 which was a positive factor for the year but global economic activity weakened as did the export order books of all major exporting nations, with the Annual capacity increased by 6.2%, IATA said, adding that the region continues to be aff ected by geopolitical issues. The airlines reduced its A380 orders from 163 to 123. European aerospace manufacturer Air- bus has revealed it will cease production of its premier superjumbo commercial jet, the A380. According to the company, the deci- sion was made following Emirates Air- lines’ announcement that it would reduce its A380 orders from 162 to 123 aircraft. Following the announcement from the Middle East carrier, as well as the small backlog of orders for the aircraft, Airbus is scheduled to end deliveries for the A380 by 2021. The development is expected to have wider implications for the company’s em- Airbus to end A380 production following Emirate’s orders slash ployee base in the UK, where parts of the aircraft are made. In a statement detailing the decision, Tom Enders, CEO of Airbus, shared: “The A380 is not only an outstanding ORDERS Deliveries for the Airbus’ superjumbo are now scheduled to cease by 2021 engineering and industrial achievement. Passengers all over the world love to fl y on this great aircraft. Hence today’s an- nouncement is painful for us and the A380 communities worldwide. “But keep in mind that A380s will still roam the skies for many years to come and Airbus will, of course, continue to fully support the A380 operators.” According to the aerospace manufac- turer, Emirates Airlines has yet to receive delivery of 14 A380s. Despite the setback with the A380 line, Airbus has revealed that the Middle East carrier has moved to acquire 40 A330-900 and 30 A350-900 aircraft. exception of the US, in the second half of 2018. “Air cargo demand lost momentum to- wards the end of 2018 in the face of weak- ening global trade, sagging consumer confi - dence and geopolitical headwinds. We are cautiously optimistic that demand will grow in the region of 3.7% in 2019,” said Alexandre de Juniac, IATA’s director general and CEO.Next >