NEWS UPDATENEWS UPDATE || FACTS & FIGURESFACTS & FIGURES || IN-DEPTH ANALYSISIN-DEPTH ANALYSIS || TRADE COLUMNSTRADE COLUMNS TOULOUSE OPENS ITS DOORS After a two-year break, Airbus holds its Innovation Days IATA AGM 2019 AVB heads to Seoul to attend the annual meeting of 290+ airlines AN ITP MEDIA GROUP PUBLICATION THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | VOLUME 18 ISSUE 07 JULY 2019 GOING ALL IN Martin Gauss, CEO of airBaltic, talks growth and a hybrid business model centred on the Airbus A220-300 Download the free Aviation Business app and be the fi rst to read the latest issue on your mobile devices. 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We offer a full spectrum of maintenance services and welcome the opportunity to serve you in any capacity. www.amacaerospace.com3 July 2019 · AVIATION BUSINESS www.aviationbusinessme.com CONTENTS July 2019 Volume 18 Issue 07 NEWS UPDATE | FACTS & FIGURES | IN-DEPTH ANALYSIS | TRADE COLUMNS TOULOUSE OPENS ITS DOORS After a two-year break, Airbus holds its Innovation Days IATA AGM 2019 AVB heads to Seoul to attend the annual meeting of 290+ airlines AN ITP MEDIA GROUP PUBLICATION THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | VOLUME 18 ISSUE 07 JULY 2019 GOING ALL IN Martin Gauss, CEO of airBaltic, talks growth and a hybrid business model centred on the Airbus A220-300 Download the free Aviation Business app and be the first to read the latest issue on your mobile devices. PARIS AIR SHOW 2019 HIGHLIGHTS FROM THE BIANNUAL AVIATION EVENT p24 XECUTIVES INNNNTTTHHEEE MEMMMIINNN TTTHHHEEE MMMMIIN THE MMM DDLDDDDLDDDLDDLEEEAEEEASTASASSTTDDLE EEASTSTDDDLLELE EASAAAS ||||MEME 18ME 18ME 18ME 181888 ISSSSUSUUEUEUEMEME 18UME 188 ISSSUEUMEME 18MISSSUUEEME 18 ISSSSUUUEEVVVOOVOOLLLULULUMVVVOOOLLUULUMVVOOLUVVOOOOLLUUU00077070777JULY Airbus pulls back the curtain and reveals A321XLR at Paris Air Show Etihad Airways takes sole ownership of secure logistics fi rm Jazeera Airways launches in-fl ight shop with Trolley Amazon responds to FedEx with major air cargo fl eet expansion SITA hits 70th milestone; $1.7bn in revenues for 2018 UAE regulator urges airlines to review fl ight paths amid tensions Jazeera: 2 million have fl own from Kuwait International’s T5 in fi rst year 8 9 9 10 11 12 13 AWARDS COVERAGE AVB AWARDS 2019 PREVIEW This month’s coverage of the awards looks at the venue for the event EVENT ON THE WINGS OF TOMORROW AVB heads to Toulouse to visit the headquarters of the renowed aerospace manufacturer Airbus 16 EVENT A WEEK IN PARIS The biannual air show drew over 316,000 visitors from across the world 24 COVER STORY 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 THE FRONT 18 16 14July 2019 · AVIATION BUSINESS CONTENTS 4 www.aviationbusinessme.com MRO GROUND SERVICES TECHNOLOGY MTU Aero Engines secures orders worth $1.3bn at Paris Air Show Saudia Cargo transports 175 Tons of WWE equipment Melbourne Airport opts to extend digital technologies contract with SITA 37 38 41 AVIATION PARTNERS AVIATION PARTNERS FLYDUBAI CELEBRATES 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 AVIATION PARTNERS ETIHAD AND SWAE PARTNER ON ENGAGEMENT PLATFORM The platform enables employees to share and propose so- lutions to Etihad’s ongoing business challenges 34 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 28 32July 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 As the technology behind drones continues to advance, the age of a new generation of plane-sized autonomous deliv- ery vehicles capable of completing last-mile deliveries will soon be upon us. And they are coming in from all over. Boeing and Airbus have their competing models, but a number of US-based startups have entered the fray too, such as Sabrewing, who is designing a prototype capable of achieving speeds of up to 180 knots. Of course, producing and marketing these drones is only the fi rst step. The challenge of managing what will undoubtedly become a cluttered urban airspace, especially in cities with an existing airport in its epicentre will be the bigger challenge. While it is guaranteed that you will need some sort of independ- ent ATC dedicated solely to air vehicles active within city limits, the problem of drones operating near airports remains an obstacle. And while you could set up a drone launchpad well outside of the airport zone, that would do away with the possibility of setting up direct from airport deliveries. You’d end up establishing ground transport, which costs time and money. Plus there is the issue of infrastructure. Most airports were devel- oped within city limits and thus restricted in terms of room for ex- pansion. So how do you deliver an airport to front door solution? Well, if you can’t build above ground, you could always go underground. You could build a facility under an existing airport that collates and sorts air cargo coming off of aircraft, which are then loaded onto cargo drones. At that point, the drones are piloted back up to the surface via a ‘launch’ tunnel that emerges well past the con- fi nes of an airport zone. I can see the launch trailer already; a lone drone fl ies down a dark subway, dimly-lit by tunnel lights spaced 20 metres apart. In the background, the original theme song of Knight Rider plays out in all its 80s glory. I’d pay good money for that. Safe Travels! All set for launch 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 Sales Manager Siobhan Gillespie Tel: +971 4 444 3635 email: siobhan.gillespie@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, Adel Rashid Staff Photographers Aasiya Jagadeesh, Yuliya Petrovich, Fritz Asuro, Ajith Narendra, Jessica Samson PRODUCTION & DISTRIBUTION Group Production & Distribution Director Kyle Smith Production Manager Basel Al Kassem Production Coordinator Imad Aad 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. 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For more information contact one of our team today FOR NOMINATION ENQUIRIES, PLEASE CONTACT: Martin Menachery Editor, Refining & Petrochemicals Middle East Tel: +971 4 444 3192 Email: martin.menachery@itp.com FOR NOMINATION ENQUIRIES, PLEASE CONTACT : Carla Sertin Editor, Oil & Gas Middle East Tel: +971 4 444 3265 Email: carla.sertin@itp.com FOR SPONSORSHIP ENQUIRIES, PLEASE CONTACT: Mark Grennell Group Sales Manager, Refining & Petrochemicals Middle East Tel: +971 4 444 3202 Email: mark.grennell@itp.com FOR BOOKING ENQUIRIES, PLEASE CONTACT: Lacie Curtis Table Sales Executive Tel: +971 4 444 3223 Email: lacie.curtis@itp.com FOR EVENT ENQUIRIES, PLEASE CONTACT: Teri Dunstan Event Manager Tel: +971 4 444 3227 Email: teri.dunstan@itp.com FOR NOMINATION ENQUIRIES, PLEASE CONTACT: Baset Asaba Editor, Utilities Middle East Tel: +971 4 444 3159 Email: baset.asaba@itp.com FOR SPONSORSHIP ENQUIRIES, PLEASE CONTACT: Vinod Thangoor Commercial Manager, Oil & Gas Middle East Tel: +971 4 444 3467 Email: vinod.thangoor@itp.com 2019 www.oilandgasmiddleeast.com/energyawards #EnergyAwards JOIN US FOR AN EXCLUSIVE GATHERING OF ENERGY EXECUTIVES AT THE MIDDLE EAST ENERGY AWARDSRADAR July 2019 · AVIATION BUSINESS 8 www.aviationbusinessme.com On the sidelines of the Paris Air Show 2019, Airbus has announced the launch of the A321XLR, an evolution on the A321neo that boasts an impressive range of 4,700nm. Equally impressive as its improved range, the aircraft will also report- edly achieve 30% lower fuel burn per seat than last-generation competitor aircraft types. Available to market from 2023, the air- craft’s range of 4,700nm is roughly 15% more than the A321LR and features an equal level of fuel effi ciency. As a result, carriers will be able to operate lower-cost single-aisle aircraft on longer and less heavily travelled routes, which today are typically served by larger and less effi cient wide-body aircraft. Airbus pulls back the curtain and reveals A321XLR at Paris Air Show AIRCRAFT Complementing the widely popular A321neo Family, the new aircraft features 30% lower fuel burn per seat as compared to last-generation competitor aircraft At the close of the biannual air show held at Paris–Le Bourget Airport, Air- bus recorded orders and commitments for over 240 A321XLR aircraft. A total of 10 customers were secured for the new variant. Amongst the high-profi le customers was IAG that penned a deal with the French aerospace manufacturer for 14 fi rm orders and 14 options for the new aircraft. The fi rst to commit was Lessor Air Lease (ALC, which signed a deal for 27 aircraft on the fi rst day of the show. The A321XLR has been designed to maximize overall commonality with the A321LR and the rest of the A320neo Fam- ily while introducing minimal changes needed to give the aircraft an Xtra Long Range with increased revenue payload. Available to market from 2023, the aircraft’s range of 4,700nm is roughly 15% more than the A321LR. Other features of the A321XLR in- clude a new permanent Rear Centre Tank (RCT) for more fuel volume, as well as modifi ed landing gear for an increased maximum take-off weight (MTOW) of 101 metric tonnes. Additionally, the aircraft boasts an optimised wing trailing-edge fl ap con- fi guration that maintains similar take-off performance and engine thrust require- ments as delivered by the A321neo. The aerospace manufacturer also noted that the optimised RCT holds more fuel than several optional Addi- tional Centre Tanks (ACTs) while tak- ing up less room in the cargo hold. This in turns frees up an underfl oor volume that allows for increased cargo and bag- gage on long-range routes. SalamAir takes ownership of second A320neo A320neo features 20% fuel burn reduction and 14% lower cash operating costs per seatRADAR 9 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 fl ights 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- trating on continuing to strengthen the existing businesses in Australia and New Zealand while enhancing our services across South East Asia, and as such will withdraw from the UAE,” said Gary Al- len, CEO, Linfox Armaguard Group. “Etihad and Armaguard have shared a long history of working together to provide the best solutions for our customers. We will continue as a strong network alliance, Etihad Airways takes sole ownership of secure logistics fi rm ACQUISITION Etihad Airways says it has acquired the shares held by Armaguard Linfox Group (Australia) in Armaguard Valuables Management servicing the global valuables market. We will continue to work together to ensure a seamless transition for our customers.” “We are now in a position, with Eti- had Secure Logistics operating as a wholly Etihad-owned business, to bet- ter support the home market in its next phase of growth and development,” added Abdulla Mohamed Shadid, man- As sole shareholder of the company, Etihad has renamed the fi rm Etihad Secure Logistics Services. Low-cost carrier Jazeera Airways has an- nounced a partnership with Kuwait-based convenience chain, Trolley, to provide an onboard retail experience for passengers. With over 100 unique items, the on- board convenience store will include per- sonal and children care, food and bever- ages, games, skin care, and electronics, a statement said. “We continue at Jazeera Airways to bring convenience to our customers, making their travel experience more en- Jazeera Airways launches in-fl ight shop with Trolley joyable. We have the pleasure today to be partnering with Trolley which has become a leading service provider in Kuwait, to introduce their wide range of travel-related retail products on-board all INFLIGHT Low-cost carrier Jazeera Airways has announced a partnership with Kuwait-based conven- ience chain to provide onboard retail experience our fl ights,” said Jazeera Airways CEO, Rohit Ramachandran. The onboard convenience store will be available for Business and Economy Class passengers, in addition to the on- board duty-free shop. “We are glad to be the fi rst in the Mid- dle East to introduce a unique concept of a convenience store in the sky. Trolley will be serving its versatile range on-board Jazeera Airways to enable passengers to buy what they need while travelling,” added Moham- med Boodai, Trolley co-founder and CEO. aging director Cargo and Logistics Ser- vices at Etihad Aviation Group. “This comes with increased invest- ment in the valuables transportation and logistics segments, as well as the banking and fi nancial services sectors in Abu Dhabi and the UAE, compli- menting the wider cargo and logistics offering at Etihad.”Next >