< PreviousRADAR November 2019 · AVIATION BUSINESS 10 www.aviationbusinessme.com Hackers target airbus suppliers in quest for secrets Four major attacks on Airbus in the last 12 months The Helicopter Company (THC), which is fully owned by the Saudi Public Invest- ment Fund (PIF), announced it has start- ed to employ AgustaWestland AW-139 in its operations. Upon receiving the new aircraft, THC declared it will continue the process of building its fl eet, which started in March 2019. One of the most reliable and effi cient helicopters on a global scale, AW-139 is a multi-purpose rotorcraft that can ac- commodate up to 15 passengers. Its wide cabin, with a distinctive interior design, offers passengers comfort and luxury, al- lowing them to enter and exit the helicop- ter easily and providing ample space for storing luggage. Commenting on the occa- sion, Yahya Al-Ghuraibi, CEO of THC, said: “Today, we have received our fi rst Agusta Westland AW-139 aircraft, which is one step in the ambitious operational plan that THC has been implementing since we obtained a commercial opera- tor license from the General Authority of Fledgling Saudi helicopter operator gathers momentum with fl eet addition DELIVERIES The Helicopter Company takes delivery of AgustaWestland AW-139 as it expands operations Civil Aviation (GACA) last July. “We are committed to providing ex- ceptional air transport services that meet the aspirations and needs of our clients, including senior executives and business- men. We always strive to translate our vision and our commitment to deliver high quality services by ensuring that The AgustaWestland AW-139 will help THC to connect Saudi Arabia’s interior. The Helicopter Company (THC) has an- nounced its fi rst ever participation in the 2019 Dubai Airshow as a platinum spon- sor of the event. With a special chalet dedicated to THC, this event will present a unique opportunity for the company to showcase its services and highlight its lat- est expansion plans. The Airshow, which brings together the aerospace industry, is set to take place at Al Maktoum International Airport – Dubai World Central (DWC) over fi ve days, from 17 to 21 November, amidst a THC heads for international stage at Dubai Airshow AIRSHOW Helicopter operator marks show debut with a splash as a platinum sponsor of the event massive crowd of senior offi cials, execu- tives, and investors from the aviation and tourism sectors. our company has the best fl eet of modern aircraft of the latest technology and the highest international standards.” PIF established THC as part of its strategy to activate new sectors in the Kingdom in line with Saudi Vision 2030. As the Kingdom’s fi rst local commercial helicopter operator. CEO Yahya Al Ghoraibi noted the im- portance of this participation as an added value to the company by establishing its position and consolidating the Kingdom’s presence amid pioneers in the aviation sector and air transport services world- wide. Additionally, such a participation aims to expand and develop business op- portunities in this vital sector in order to improve the quality of services, promote investments and create job opportunities. Dubai Airshow is considered one of the largest aviation events in the world.RADAR 11 November 2019 · AVIATION BUSINESS www.aviationbusinessme.com IATA launches campaign to advance gender diversity Women represent just 5% of the global pilot population and 3% of CEOs Beijing’s new Daxing International Airport offi cially opened for business in September, just in time for celebra- tions marking the 70th anniversary of the People’s Republic of China.Chinese president Xi Jinping opened the ter- minal just before noon. The airport’s maiden fl ight was a China Southern Airbus A380 that took off from one of the airport’s four runways. China Southern is Daxing’s main tenant. The futuristic airport was designed by the late Zaha Hadid. Its form is in a starfi sh shape with fi ve concourses and four runways, with plans for up to three more in the future to handle 620,000 fl ights a year. It cost the Chinese gov- ernment around $17 billion, according to the airport, and was completed in less than fi ve years. Located 46km south of Tiananmen Square, Beijing Daxing International Airport will operate at full capacity in 2040, with eight runways and the po- tential to receive 100 million passengers per year. This would likely see it sur- pass Hartsfi eld-Jackson Atlanta Inter- national Airport in the United States to become the world’s largest airport in terms of passenger throughput. Car- riers such as China Eastern Airlines China’s $17bn Beijing Daxing International Airport awakes AIRPORTS China’s oldest airport closes on the same day as Beijing’s lavish aviation jewel opens and China Southern Airlines will start fl ying from the new facility later this year. The transition should be com- pleted by the winter of 2021, according to the Civil Aviation Administration of China. Beijing’s Daxing Airport offers a two-storey terminal design that con- centrates all control processes while reducing walking distances for passen- gers. The terminal’s innovative design aims to facilitate the absorption of the Daxing International Airport replaces Nanyuan future increase in traffi c while improv- ing the passenger experience. Daxing is the Chinese capital’s sec- ond international airport and meant to ease pressure on Beijing Capital Inter- national Airport, which handled more than 100 million passengers in last year. China is expected to overtake the US as the world’s largest aviation market, ac- cording to the International Air Trans- port Association by the mid-2020s, and to handle some 1.6 billion air travellers a year by 2037. On the same day as the fanfares sounded for Daxing, another nearby airport quietly closed its doors. Nany- uan Airport, China’s oldest airport, ceased to operate as Daxing awoke. The last fl ight from Nanyuan departed on the evening of 25 September before all fell quiet. The airport was almost 110 years old by the time it closed and it will now become an aviation museum, according to reports. RADAR November 2019 · AVIATION BUSINESS 12 www.aviationbusinessme.com Joramco marks fi rst in certifi cation for MENA region DAE engineering arm is one of just a few MROs to receive EN 9110 The prioritisation of aviation as a key strategic asset could generate an extra $80 billion in GDP for the UAE econo- my by 2037, said the International Air Transport Association (IATA) in its lat- est report. The aviation sector is also pre- dicted to add an extra 620,000 jobs to the UAE economy by 2037, IATA said. Air transport’s contribution to the UAE economy is already signifi cant. The industry at present supports nearly 800,000 jobs and contributes $47.4 bil- lion to the economy, accounting for 13.3% of the UAE’s GDP. If the government continues to pursue a positive agenda for aviation, the UAE’s aviation market will grow 170% by 2037, support 1.4 million jobs and contribute $128 billion in GDP to the nation’s econ- omy, IATA said. The airline body sug- gested that the UAE should increase its airspace capacity to ease congestion and meet future demand. “Airspace capacity in the region has not kept pace with the growth in de- mand, which is leading to signifi cant delays particularly in the GCC. Govern- ments in the region must replace political fragmentation with collaborative cross- border decision-making to ensure that the global competitiveness of the region’s hubs is not affected,” the report stated. IATA also recommended that the UEA should align infrastructure invest- ments with expected growth and contin- ue to leverage new technology to enhance effi ciency. “Future infrastructure investments must provide enough capacity to meet market demand and ensure airline tech- nical and service level needs are aligned and remain affordable,” stated the re- Aviation to add extra $80bn to UAE economy by 2037, says IATA ECONOMY The aviation sector is predicted to add an extra 620,000 jobs to the UAE economy by 2037, IATA’s new report estimates. By Alicia Buller. port. Fast adoption of new technology and initiatives to integrate aviation with future modes of transportation will en- hance the competitiveness of the UAE as an aviation hub,” it said. “Over the past 25 years, the UAE has experienced an economic transforma- tion; aviation has been at the heart of this evolution. Today the UAE is ranked number one globally for air trade facili- tation, tops the Middle East region for visa openness, is an aviation powerhouse and its airlines carry the country’s fl ag to all corners of the globe,” said Muham- mad Ali Albakri, IATA’s regional vice president for the Middle East. Airlines, airport operators, airport on-site enterprises (restaurants and re- tail), aircraft manufacturers, and air navigation service providers employ 180,000 people in UAE. In addition, by buying goods and services from local Aviation ‘at the heart’ of UAE’s economic transformation of past two decades suppliers, the sector supported another 120,000 jobs, according to IATA data. The aviation sector is also estimated to support a further 68,000 jobs through the wages it pays its employees, some or all of which are subsequently spent on consumer goods and services. Foreign tourists arriving by air to UAE, who spend their money in the local economy, are estimated to support an additional 409,000 jobs. In total 777,000 jobs are supported by air transport and tourists arriving by air, said the IATA report. The top international tourist arrivals (by all modes of transport), by region of residence hailed from East Asia and the Pacifi c. Almost 13 million passengers ar- rived to the UAE from Asia-Pacifi c in 2018 (44.8% of total), 6.2 million passen- gers arrived from Europe (21.5%) and 6 million passengers arrived from the Mid- dle East (20.7%).www.falconaviation.aeNovember 2019 · AVIATION BUSINESS 14 www.aviationbusinessme.com FORECAST EMIRATES ‘TO LEAD ON SUSTAINABILITY’ Ambitious new routes, expanding airports and sustainability are all part of Sir Tim Clark’s plan to help navigate Emirates through long-term challenges and short-term hurdles, including fallout from Thomas Cook’s collapse. He wants to “lead the way” when it comes to making the industry more environmentally friendly. On top of things like reducing plastic wastage on-board fl ights, Emirates will aim to increase the electrifi cation of ground equipment, such as catering, fuelling and baggage trucks.Clark comments: “As far as Emirates is concerned, and Dnata, which is the primary handling agent, we really have to get to grips with this far more rapidly, in a meaningful manner. We need to walk the walk. In the environmental world today there is too much talking, not enough walking.” In the long-term, greater sustainabil- ity will mean more effi ciency and better balancing of costs. However, Emirates, along with all carriers, faces immedi- ate challenges to its pocket. The US and EU’s ongoing trade spat will likely lead to a price hike on Emirates’ fares, Clark forecasts. The festering trade bat- tle has seen import duties slapped on Emirates president Sir Tim Clark revealed last month ambitious plans to grow the Dubai carrier’s fl eet by 30% before the end of 2025. The airline has grown at an average rate of between 14% and 20% over the last 20 years, but is currently going through a period of consolidation, Clark said in an interview with Emirates World Interviews podcast series. “We’ve got to the situation where we have reached that kind of plateau of consolidation, where we have the fl eet operating extensively to the network that we’re working and it’s working very well.” However, Clark says the “demise” of the A380 aircraft, which saw the Dubai carrier adjust its fi nal order for the su- perjumbo earlier this year, has forced the airline to look at alternatives. As a result Emirates is set to take delivery of a range of new aircraft, including A330 NEOs, A350s and 787s. Although the airline does not expect any 777Xs in 2020. Clark plans for Emirates’ net- work to “grow and fl ourish” to places in Africa, the Middle East, Asia, the US and South America, as its fl eet expands. The recent consolidation has been part of the airline’s transition to a more fuel effi cient and profi table fl eet. To cope with its expansion, Emirates will need Dubai’s infrastructure to hold up. Clark is confi dent this will be the case: “If you take the two airports to- gether (Dubai International Airport and Dubai World Central), Dubai (DXB) will grow to a capacity of about 115 million to 120 million when we really push it. If you bolt that onto DWC you have the pos- sibility of 140 to 150 million passengers per annum transiting through Dubai.” Emirates’ growth must also be achieved sustainably, Clark notes. The aerospace industry is at an excit- ing point as new technologies open op- portunities for industrial changes that can be translated into tangible cost sav- ings and growth.” Emirates is looking at alternatives to the A380 after Airbus decided to axe the superjumbo’s production15 November 2019 · AVIATION BUSINESS www.aviationbusinessme.com FORECAST “We’ve found that particularly in our European markets, mainly in the UK, that there was a degree of exposure which we’re still trying to get some kind of estimation on. That’s not helped. The assessment of the exposure is still going on but it’s not a small amount. We’ll have to take it in in the fi rst half of the year, we’ll see.” While Clark says Emirates is now facing a “fl attening of growth”, the company is doing plenty to enhance annual performance. Airlines on the whole are facing challenges to growth. A steady and sustainable approach to expansion is the most popular strategy among carriers currently and not least for Emirates. commercial jets and will lead to more expensive aircraft for all operators in the market. The additional costs incurred by airlines will likely have to be passed onto passengers, Clark says. “Whether sense will prevail, I have no idea. One would assume that if [Boeing and Airbus] both get their knuckles rapped then the only downside is that the airlines…and the price we pay will be aff ected. In the end, the prices we get charged as a result of tariff imposition will be passed through, as they have to, to consumers, so prices are likely to rise.” Troubles in Europe are not limited to trade wars. When UK holiday operator Thomas Cook went into liquidation in September, Emirates was bruised. Clark reveals that the airline has been impacted ‘in no small amount’ by the demise of the British business. Emirates’ ground handling arm, Dnata, was ex- posed to Thomas Cook’s collapse and felt it weigh heavily on the business, Clark says. Sir Tim Clark is confi dent in DXB’s infrastructure’s ability to cope with Emirates’ plans We are your engine experts Our people make the diff erence. We are passionate. We are dedicated. We marry engineering with intelligent creativity. And we never give up unless an optimal solution has been found. As the global market leader in customized solutions for aero engines, MTU Maintenance supports you with the right product across the lifecycle of your engine. From innovative maintenance, repair and overhaul (MRO) services, to integrated leasing and asset management. Contact us and find your solution today. www.mtu.de/en Visit us at MRO Middle East February 25 –26, 2020 Dubai World Trade Centre, UAE Booth # 730 Maint_E_177x114_Aviation_Business_01.indd 108.10.19 08:26November 2019 · AVIATION BUSINESS 16 www.aviationbusinessme.com MRO MILESTONES IN MRO: ETIHAD ENGINEERING A million parts, 100 days and 80 technicians and engineers: Abdul Khaliq Saeed, CEO of Etihad Engineering, describes the MRO provider’s top achievement this year. aircraft platforms, A380 inclusive. Our modern facilities are architectural landmarks and are equipped with new technology and innovative solutions. We work as one team with one mission to provide industry leading aircraft maintenance and engineering solutions at par with world-class quality and safety standards to meet and exceed our customers’ expectations. Do you predict more of these to come in the near future? As the world’s fi rst MRO to have successfully carried out a 12-year check on an A380 we understand the processes and tasks involved in this highly complex maintenance programme, and have fi rst-hand experience of the challenges we may face and how to overcome them. I feel confi dent in saying that Etihad Engineering is a reliable choice for any airline approaching a 12-year check on an A380. We already support a number of airlines, including Etihad Airways, with their A380 fl eet and we hope to continue to be recognised as a centre of excellence in this area for many years to come. Although the A380 has ceased production, many airlines want to prolong the life of their superjumbos. What role might Etihad Engineering have to play in this growing trend? We off er a comprehensive portfolio of MRO services through the lifecycle of W hat does Etihad Engineering’s 12-year A380 check say about the company, its approach and its capabilities? This year, one of our most notable achievements has been completing the world’s fi rst 12-year check on an A380, for one of the world’s leading airlines. This demonstrates the confi dence of both the airline operator and the OEM, in our technical expertise, workmanship, as well as our ability to deliver such a complex project on the largest commercial aircraft type. It took around 100 days, involved a million parts and a team of 80 technicians and engineers with a meticulous level of planning to accomplish the job. This is also a refl ection of our recognition as an international centre of excellence for maintenance, repair and overhaul (MRO) solutions on all next generation Abdul Khaliq Saeed has helped to increase productivity while maintaining the same resources.17 November 2019 · AVIATION BUSINESS www.aviationbusinessme.com MRO diff erentiating customer experience with competitive economics. More than 75 per cent of our business today comes from third-party airline customers, which is testament to our reputation as one of the world’s leading MRO providers. We continually expand our capabilities to ensure we consistently meet the demands of our client base, this year adding the A350 and Boeing 787-10 to our portfolio. It is also important to note that we have a highly experienced design and innovation division that has enabled us to develop, test and certify solutions in a timely and cost-effi cient manner. Are there any particular regions Etihad Engineering is concentrating on in 2020 and how will you do this? Our focus for 2020 will continue to remain the same. We aim to continue to increase our global recognition and attract customers from all geographical locations and operational sectors. We also want to ensure that we play our part in making Abu Dhabi a global hub for aviation and I believe our provision of maintenance services is a key cornerstone in that vision. Etihad Engineering added A350 and B787-10 capability this year. What has this meant for the business? As a world-class MRO, we are consistently upgrading our capabilities and expanding our comprehensive range of services. Our recent A350 and Boeing 787-10 capabilities are an indication of this commitment to meet the diverse and dynamic needs of our customers. What kind of opportunities can you see for the company in 2020? We are surging ahead with a very strong portfolio of services and capabilities on all major aircraft types, which are recognised and certifi ed by EASA and the UAE’s GCAA. Among other capabilities, we off er in-house 3D design, printing and certifi cation facilities as well as on-site fl ammability testing. We have joined hands with leading OEM’s like Moog to off er component services and we are working with Fábrica Argentina de Aviones to serve more customers conveniently in Latin America. Our strategic partnerships with OEMs and industry leaders coupled with our expanding capabilities continue to support and expand our client base. an aircraft, and have the necessary regulatory approvals for not just heavy maintenance checks but also complex structural modifi cations, cabin retrofi ts and refurbishment. As a member of the Airbus MRO Alliance, we look forward to playing a key role in supporting our customers from around the world in keeping their aircraft fl ying longer. The successful completion of the fi rst A380 12- year check has gone a long way in providing analytical data to both the OEM and operators to assist in the process of extending the life of the aircraft. How do you manage to keep on- time operational performance levels at such a high percentage? As part of an airline group, we clearly understand that on-time performance (OTP) is the second most important metric in our industry, after quality and safety. We as an MRO partner deliver aircraft on-time to all our customers, with a very high reliability status. As the CEO of Etihad Engineering, I keep a very close eye on our on-time performance levels and as a team, we identify and overcome all the challenges with a meticulous level of planning, great teamwork and being creative and fl exible in fi nding solutions to meet targeted timelines. We also constantly improve our supply chain processes across the organisation using the latest tools and techniques to ensure maximum effi ciency and productivity. Etihad Engineering delivered more than 260 aircraft inputs to its customers worldwide between August 2018 and August 2019. What gives Etihad Engineering such a global appeal? We have spent years building our reputation for quality, innovation and a solution orientation that has enabled us to attract the world’s best airlines and OEMs, who come to us for our value proposition: delivering reliable quality performance and a Etihad Engineering recently added 787-10 capability to its portfolio.AIRBUS November 2019 · AVIATION BUSINESS 18 www.aviationbusinessme.comAVB sits down with Airbus CEO Guillaume Faury in Paris to discuss how the company is adjusting to global and regional trends, while at the same time, trying to push industry-wide development. AIRBUS 19November 2019 · AVIATION BUSINESS www.aviationbusinessme.com THE ROAD AHEAD Airbus has been thrust into the headlines over the last 12 months as it has found itself being sucked into global debates surrounding trade tariffs and climate change. International commerce wars, increasing pressure from environ- mental groups and regulatory changes have made CEO Guillaume Faury’s fi rst months at the helm diffi cult ones to navi- gate. Nevertheless, since taking over in April, he has not lost focus on the path Airbus is trying to carve out for the future of aviation. Not least on Faury’s ‘to-do list’ is adapting to the shifting Middle East market, where airlines are showing signs of changing their habits. A number of large players in the Middle East region are revisiting their or- der structures because of decreasing oil prices, which impacts long-term demand. With some long-term customers potential- ly adjusting their forecasts, how is Airbus handling customer relationships? Faury shakes off any notions that the manufac- turer is having to change the way it works with its partners. Long-term forecasts are not necessarily having an impact on the short-term relationship between Airbus and its customers when it comes to con- tract execution, he states. “The fact that we have long-term re- lationships means that in this industry there is a behaviour between players, between partners, between suppliers and customers, which has to be reliable. There are a limited number of airlines and original equipment manufacturers, so it is a relationship that is based on trust and on trying to fi nd common solutions when there are issues. When we are in an environment, as it is the case now, which is moving forward very quickly, we spend a lot of time trying to fi nd a solution for the future. That is why some negotiations take a long time. There are a lot of things that need to be managed and when the environment is very dynamic we want to make sure that the contracts and the structure are robust to change.” While negotiations with regional air- lines can prove tricky in the current cli- mate, in the Middle East, Airbus is enjoy- ing a purple patch on its commercial side. Despite increased spending on defence in the region – estimated to reach $100 billion this year – commercial airlines still form the bedrock of Airbus’ business in Next >