NEWS UPDATENEWS UPDATE || FACTS & FIGURESFACTS & FIGURES || IN-DEPTH ANALYSISIN-DEPTH ANALYSIS || TRADE COLUMNSTRADE COLUMNS ETIHAD GREENLINER Meet the 787 taking effi ciency to a whole new level AN ITP MEDIA GROUP PUBLIC ATION THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | VOLUME 19 ISSUE 01 JANUARY 2020 Download the free Aviation Business app and be the fi rst to read the latest issue on your mobile devices. SPECIAL REPORT TURNING THE TIDE ON THE MIDDLE EAST’S AIR CARGO MARKET TIHAD GREENLINER eeett the 7888877 takinggg ffi ciiency toooo a whoollleeeeeeeeeeee ewww level HE MAGAZINE FOR AVIATION EXECUTUTUTUTUTUTTTTUTUUTUUUUUTUUTUUTTUTUUUUUUTTTUUUUUUUUUUTTTTTUUUUUUUUUUUUU IVIVIVIVIVVVVIVVVVVVVVVVVIVIVVVIVVVVVVVVIVIVIVIVVVVVVVVVVIIVVVVVIVVVIVIVVVVVIVIVVVIIVVVVIVVVVIIIVIVVVVVIVIVVVIIIIVVVVVIVIVIVIIIIVIVVVVVVVVVVIIIVIVVVVVVVIVIIIVIVVIVVIVVVVVVVIIIVVVVVVVVVVIIIIVVVVVVVVVVVVIVIVVVVVVVVVVVVVVVIIVIVVIVVVVVVVVVIIIVVVVVVVVVIVVVVVIIIVVVVVVVEEEESESESESESESSSSSSSSSESSSSSSSSSESESESSESESSSSSSESSSSSSSSESEEESSESESESESSSSSSSSSSSEEEEESSSSSSSSSSSSESEEEEEESSSSSSSSSSSSEEEEESSSSSSSSSSESSSESESEEESSSSSESSSSSEEEEESEEEESSESSESEEEEEEEEEESEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEESEEESEEESEEEEEEESEEEESEEESESSEEEEEESSSSSSSSS IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINNN NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN NNNNN NNN N NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN TTTTTTTTTTTTHHHHHHHHHHHHHHHHHHHTTTTTTTTHHHHHHHHHHTTTTTTHHHHHHHHHHHTTTTTHHHTHTHHTTTTTTHHHHHHHTTTTTTTHHHHHTTTTTTTTTHHTHHHHHHHTTTTTTTTHHTHHHTTTTTTTTTHHHHTHTHTHHHTTTTTTTTTTTTHHHTHTHTHTTTTTTTTTTTTTHHHHTHHHHHHTTTTTTTTTTTTHTHTHHHHTTTTTTTTTTTTTTTHTHHTTTTTTTTTTTTHTHHTHHHHTTTTTTTTTTTTTTTTTTTTTTTTTTTTHTHHHHTTTTTTTTTTTHHHTTTTTTTTTTTTHHHTTTTTTTTTTTHHHTTTTTTTTTTTTTTTTTTTTHHHHTTTTTTTTTTTHHHTTTTTTTTHTTTTTTTHHHTTTTTHEEEEEEEE E EEEE E EEEEEE EEEEEE EEE EEEEEEEEEEEEEEEEEEE MMMMMMMMMIMIMMIMMMMMMMMIMIMMMIMMMIMIMMMIMIMMMMMMMIMIM DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDLELELELELELLELELELLLLELELELELELELELELLELELEEELEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEASASASASASAASASASASAASSSSSSSAASASASASASASSSSSSAASSSSSSSSASASSSSSSSASSSSSSASASSSSASSSSSSAASSSSSSASSASAASASASSSSASSAAASSSSASA TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT TTTTTTTTTT TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT |||||||||||||||||||||||||||| UUUUUUUMMMMMMMMMMMMMMMMMMMMMEMEMEMEMEEMEMEMEMMMMMMMMMMMMEMEMEMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMEMMMMMMMMMMMMMMMMMMMEMEMEMEMEEMM111111111111999999999999999999 ISISISISISSISISISISISISSISSSSIISIISSSSSUSUSUSUSUUUUUUUUUUUUUUUSSSSSUUUUUUSSSUSUUUUUSUUUUUSSUSSUUUUUUSUSUUSUUUUSSUSUUUUUUUEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEVVVVVVVVVVVVVVVVVOOOOOVOVOOVOVOOOOOOOOOOOVOOOVVVVOVVVVVOVOOOVOVOVOOVOOOOVOOOVVVVVOVOVOVOOOOOOVOOOOVVVOOOOOOVOVVVVOOOOOOVVVVVOOOOOVVVVVOVVVVVVVVOVVVOVVVVVVVVVVVVVVVVVVVVVVOVVVVVVVVVVOVVVVVOOVOVVVVVVVVVVVOVVVVVOVVVVVVOVVVOVOVVVVVOVVVVVVVVVVVVVVOVVVOOOVOOOOOVVOVVVVVVVOOOOVOOOOOVOVVVOVVVVVVVVOOOVOOOVVVVVOVOOOOOOVVVVVVOVOOOOOOOOOOOOOOOOLLULULULLULLLULUUULULUUUULLLLLULULULLULULULUUULLULULULLULULULULULULUUULLLLLULLULULULULUUULLLLULULULULULUULLLLULLLULULULUULLLLULULUUUULULLULULUUUUUULULLLUULLLULLLUULLLUUULULLLUUUULLLUUUUULLUUUUUUULUUUUUUUULUUUUUUUUUUUUUUUUULLUUUUULUUUUULUUUUUUUUUUUUULUUUUUULUUUUUULLLLUUUUUULLUUUUUMMMMMMMMMMMM0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000001111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 JANUARY 2020 Download th free Aviatio Business ap and be the fi to read the latest issue o your mobile devices. SPECIALSPECIAL REPORT TURNING THE TIDE ONRNING THE TIDE O THE MIDDLE EAST’SHE MIDDLE EAST AIR CARGO MARKETAIR CARGO MARKET A NEW DECADE Exploring the trends shaping world aviation SAUDI IS OPEN A new domestic concept could change the face of the booming Saudi market, explains THC’s CEO Yahya Al GhoraibiEngineered by Bose. Refined by pilots. AVIATION AVIATION Connect with us @BoseAviation © 2019 Bose Corporation. All rights reserved. PROFLIGHT SERIES 2 AVIATION HEADSET NEW INTRODUCING PROFLIGHT SERIES 2 With all the features pilots appreciated in the original, the new ProFlight Series 2 now offers significant improvements and updates based on pilot feedback. A new lighter, thinner and more flexible cable and improved tap control for talk-through communication make ProFlight Series 2 Bose’s lightest and most advanced aviation headset yet. Like the original, ProFlight Series 2 is FAA TSO and EASA E/TSO-C139a certified. Experience the changes for yourself – learn more at Bose-Aviation.eu HOLIDAY SEASON PROMOTION 2 December 2019 to 5 January 2020 Buy a ProFlight Series 2 or A20 headset, get a FREE Bose QuietComfort® 20 Acoustic Noise Cancelling headphones (retail value AED999.00). Plus: Save 10% off second and subsequent ProFlight Series 2 or A20 headsets.* Redeem your promotional item before 16 February 2020 on www.bose-aviation.eu/promotion © 2019 Bose Corporation. Offer valid with the purchase of a Bose ProFlight Series 2 Aviation Headset or Bose A20 Aviation Headset from participating Bose authorised retail resellers in Europe, India and the Middle East. The promotion is valid from 2 December 2019 to 5 January 2020 and not to be combined with any other offers, promotions and programmes, or applied to previous purchases. Offer is subject to change without notice. FAA TSO and EASA E/TSO-C139a certified. * To qualify for 10% off, additional headsets must be part of the initial purchase on the same invoice. BOSE-14602_PF_Series_2_promo_ad_205x275mm_RZ.indd 1BOSE-14602_PF_Series_2_promo_ad_205x275mm_RZ.indd 126.11.19 11:4926.11.19 11:493 January 2020 · AVIATION BUSINESS www.aviationbusinessme.com CONTENTS January 2020 Volume 19 Issue 01 NEWS UPDATENEWS UPDATE || FACTS & FIGURESFACTS & FIGURES || IN-DEPTH ANALYSISIN-DEPTH ANALYSIS || TRADE COLUMNSTRADE COLUMNS ETIHAD GREENLINER Meet the 787 taking effi ciency to a whole new level AN ITP MEDIA GROUP PUBLIC ATION THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | VOLUME 19 ISSUE 01 JANUARY 2020 Download the free Aviation Business app and be the fi rst to read the latest issue on your mobile devices. SPECIAL REPORT TURNING THE TIDE ON THE MIDDLE EAST’S AIR CARGO MARKET TIHAD GREENLINER eeett the 7888877 takinggg ffi ciiency toooo a whoollleeeeeeeeeeeeeeeeeeeeeee ewww level HE MAGAZINE FOR AVIATION EXECUTUTUTUTUTUTTUTUTTUTUUUTUTUUTTTUTUTUUUUTUUTUUTTTTUUUUUUUUUUUUTTTTUUUUUUUU IVVIVIVIVIVIVIVVIVVIVVVIVVVVVVVVVVVVIIVVVVIVVVIVIVIVVIVVVVVVVVVIVIVVIVVVVVVVVVVIVIVVVVVIVIVIVVVVIVIVIVIVVVVVVVVIIIIVVVVVIIVIVVVVVVVIVVIIIIVIVVVIVIVIVVIVIVIIVIVIVVVVVVVIVIVVIIIIIVIVVIVIVVVVVVIIIVVVVVVVVVVVVVVVVVVVVVIIVVVVVVVVVVVVIVVVVVVIVVVVVVVVVVVVEESESESESESSSESESSSSSESSSSESSSESSESESSSESSSSSSESSSSSSSESESEESESESESSSSSSESSSSSESESEEESSESESESESSSSSSSSESESEEESEESESESSSSSSSSESEEEEEESSSSSSSSSEEEEESSSSESSSSESEEEEEEESESSSEESEEEESEEEEEEEEEEEEEEEEEEEEEEEEEEESEEEEEESSEEEEEESESSEEEEEESSSEEEEEEEESSSSSSSSSS IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIINNNNNNNNNNNN NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN NNNNNNN NNNNNNNN NNNNNNNNNNNNNNNNNNN NNNN NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN NN NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN TTTTTTTTTTTHHHHHHHHHHHHHHHHHHHHTTTTTTTHHTHHHHHHHTTTTTTTHHTHHHHHTTTTTTTHTHHHTHTTHTTTTTTTHHHHHTTTTTTTTTTHHHHTTTTTTTTHHHTHHHHTTTTTTTTTTTTTHTTTTTTTTTTTHTHHTHHTTTTTTTTTTTHHTHHTTTTTTTTTTTTHTHTHHHTTTTTTTTTTTTHTTTTTTTTTTHTTTTTTTTTTHHTTTTTTTTTTHTTTTTTTTTTHTTTTTTTTTTTTHHHTTTTTTTTTTHHTTTTTTTTTTHTTTTTTTTHTTTTTTTTHHHTTTTTTTTTTTTTTTTTTTTTTTHHEEEEEE EE E EEEEEEEEEEEEEEEEEEEE EEEEEEEEEEEEEEEE MMMMMMMIMIMMIMIMMMMMIMIMIMIMIMIMMMMMMIIMMIMIIMIMIMMMMMIMMM DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDLELELELELELELELELEELELLELEELELELELEEELELELELELLEEELELELELELEEEEEEEE EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEASASASASASAAASASASASASASSSSSSSASASASASASASASASSSSSSSSASASSSSSSSSSASSSSSSSAASASASSSSSAASASSSSSASSSSSSSAASSSSASASASSSAASAASASAASASSASAASASSAASSTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT |||||||||||||||||||||||| UUUUUMMMMMMMMMMMMMMMMMMEMMEMEMEMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMEMMMMMMMMMMEMMMMMMMMMMMMMMMMMMMMMMMMMMEMMMMMEMEMEMEMEEME 1111111111119999999999999999 ISISISISISIISISISSISISISISISI SSSSSSUSUUUUUUUUUUUSSUUUUUUUSSUUSSUSUUUUUSUSUUUSUSUSSSSSUUSSSUSUUUSUUUEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEVVVVVVVVVVOVOVVVVOVOOOVOVOOVOVOVOVOVOOOVOVOVOOVOVOVOOVVVVVVOVOVOVOVOOVOVOVOOVVVVOVOVOOVOVOVOOVOVOOOOVOOVVVVVOVOOVOVOOOOVVVVOOVOOVOVOVOVOOOVOVVVVVVVVVOVVOVVVVVVVVVVVVVOVOVVVVVVVVOVOVVVVOVVVVVVOVVVVVVVVVOVVVOVVVOOVVOVVVVVVVVVOOOOOOOOVOVOVVVOVVOVVVOVOVOOOOVOOOVVOVVVVOOOOOOOVVVVVVOVVOOOVOOOOOVVVVVVOVOVOOOOOOOOOOOOOOOOLULULLLULLLUUUUUUUUUULULLLLLLULULUUULULUUULULLLLLLLULULUUUUULULULLULLLLLULULULUULLLLULLULULUUULULULULUUULLLLUUUUUULULULULUUUULUULLULULULLLLLUULLUULULLUUUULULUUUULUUUUUUUULLUUUUUULLUUUUUUUUUUUUUULLUUUUULLUUUUUUUUUUUUUUUULLLUUUMMMMMMMMMM000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 JANUARY 2020 Download th free Aviatio Business ap and be the fi to read the latest issue o your mobile devices. SPECIALSPECIAL REPORT TURNING THE TIDE ONRNING THE TIDE O THE MIDDLE EAST’SHE MIDDLE EAST AIR CARGO MARKETAIR CARGO MARKET A NEW DECADE Exploring the trends shaping world aviation SAUDI IS OPEN A new domestic concept could change the face of the booming Saudi market, explains THC’s CEO Yahya Al Ghoraibi Emirates drives deeper into Mexico with Interjet Airlines deal Dubai Airports chucks single-use plastics in major F&B move Middle East airlines enjoy sharpest passenger growth dnata snaps up remaining shares of Alpha LSG Air BP enters Angolan market amid African expansion SAVE THE DATE: Aviation Business Achievement Awards 2020 Wizz Air becomes latest budget airline to join the fray in the UAE 7 8 8 9 9 11 16 FORECAST 2020 MARKET OUTLOOK IATA predicts that Middle East region will make $1 billion of losses this year SUSTAINABILITY ETIHAD GREENLINER Boeing and Etihad Airways launch new 787 ‘Greenliner’ to drive effi ciencies 12 INNOVATION BOSE CORPORATION How one man’s question led to the re- lentless persuit of better audio tech 14 COVER STORY SAUDI ARABIA An in-depth look at the booming Saudi market and those shaping the arena THE FRONT 17 16 5January 2020 · AVIATION BUSINESS CONTENTS 4 www.aviationbusinessme.com Q&A DATA ANALYSIS fl yadeal’s Sudeep Ghai on what makes the airline tick The key numbers behind the Middle East air cargo sector Viewpoints from the experts on challenges in the cargo market 22 27 37 AVIATION PARTNERS MARKET OUTLOOK A YEAR IN AVIATION Industry experts give their views on the aviation trends they expect to impact on the market in 2020 PANEL DELIVERING EXPO 2020 Bosses from UPS and Emirates SkyCargo reveal their role in Expo and detail how it could boost local air cargo sector 33 SPECIAL REPORT HANDLING CARGO Getting to grips with the Middle East air cargo market 25 385 January 2020 · AVIATION BUSINESS www.aviationbusinessme.com MARKET FORECAST 2020 REGIONAL FORECAST Region warned of $1 billion of losses, marking third consecutive year of defi - cit in the Middle East as international trade wars and airline restructuring continue to take their toll. The airline industry in the Middle East is expected to make losses of $1 billion this year as international trade wars continue to blight the global aviation market. The International Air Transport Association’s (IATA) forecast for the region expects “some rebound” in 2020 and the Middle East industry’s losses are forecast to reduce by half-a- billion dollars compared to 2019. But experts believe the expected better performance in the Middle East resulting from restructuring and stronger growth will take time to have an impact. IATA’s forecast, published in December, stated that Middle East carriers are continuing a restructuring process and announced schedules point to a substantial slowdown in capacity growth for 2020. It said: “After very weak economic growth in 2019, which limited local traffi c, some rebound is expected [in the Middle East] in 2020.” IATA downgraded its global forecast for 2019 from $28 billion of net profi ts down to $25.9 billion. It forecast $29.3 billion of net profi ts in 2020. IATA blamed inter- national trade wars, social unrest and slowing economic growth for a “tougher- than-anticipated” business environment for airlines in 2019. Brian Pearce, IATA’s chief economist, says: “The overall picture is one of slow- down, indeed for cargo it’s one of shrink- age by volume in 2019. It’s been a pretty miserable year for [the cargo industry] and freight tonne kilometres are on average 3.3% lower this year than in IATA chief Alexandre de Juniac says Gulf carriers are experiencing ‘normalisation’ 2018 and that is the worst performance since the global fi nancial crisis. It’s pretty clear that that has been driven mostly by tariff wars and trade wars. That has started to damage air travel as well through weakening business confi dence and more broadly weaken- ing GDP. So we’ve had to downgrade our expectations for passenger growth [from 5% growth to 4.2%].” Pearce added that the Middle East’s economy is looking “in much better shape for 2020” and that there will be “quite a rebound” in the region’s airline sector. “In the Middle East, airlines look particularly closely at their business models, partly because the business environment has deteriorated. What previously had been very rapid expan- sion in capacity has been transformed so there’s been a much more careful approach to new developments, with a diff erent fl eet structure, and broader business models have been re-assessed. So we do see a much more cautious approach to business in the Gulf.” GULF CARRIERS ARE ‘NORMALISING’ Painful restructuring among airlines in the Gulf is a result of the region’s ‘normalisation’ following a period of massive growth in the industry in recent years. That is according to Alexandre de Juniac, director general of the International Air Transport Association (IATA), who made the comments after the organisation published its forecast for the Middle East market last month. IATA’s forecast warned that international trade wars and a continuing restructuring process among fi rms in the Middle East would contribute to a slowdown in capacity growth. Mr de Juniac says: “The gulf carriers are entering into normal waters after an incredible period of accelerated growth. They are moving to something which is more classical. It means you have to deal with restructure, reshuffl e your programme, your fl eet – what the others are facing for years because the market is more mature. It’s more of a normalisation.”January 2020 · AVIATION BUSINESS www.aviationbusinessme.com 6 EDITOR’S LETTER Joe Peskett Editor, Aviation Business joe.peskett@itp.com Twitter: @AVB_ME Facebook: facebook.com/AviationBusinessMiddleEast LinkedIn: linkedin.com/company/aviation-business-me As a new decade dawns, we must recognise that it is mission critical for the industry to secure its own future. And by that, I mean become a sustainable en- tity. Because currently, we all know, it is not. 2020 simply must become the decade that the global avia- tion industry makes significant and real gains in the pursuit of decarbonisation. Carbon emissions per passenger have declined by more than 50% since 1990 and the improvement in annual fuel efficiency is evidence of incredible achieve- ments among aviation companies. But we must ask ourselves whether cutting emissions by 2050 to half of 2005 levels is going far enough. Meeting the targets will be a challenge, but I think we should all aim to do what the aviation industry does best and go beyond what is presumed possible. Aviation contributes significantly to climate change. Even though it accounts for just 2% of global emissions, aircraft de- posit carbon at 40,000 feet, right where it hurts. This indus- try has always been the most cutting-edge and the one that others aspire to follow. This is cause for us to lead the way in decarbonisation and show the other sectors how it is done. We have the planet’s best innovators, vast resources and unparalleled technologies. While aviation accounts for 2% of emissions, we should strive to account for a huge portion of the global solution and we have the means to do it. Admittedly, it will be hard for the MENA region and India to curb carbon while growing at the level they want to. But we can grow responsibly and still be world leaders in sustainabil- ity. The Middle East now boasts some of the most advanced aerospace manufacturers in the world and can be exemplary in driving further efficiencies. We all know that carbon is the enemy rather than aviation. So, in 2020, let’s take the fight to carbon and secure a future not just for the aviation industry, but the planet which hosts it and the people within it. Decade of decarbonisation 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 EDITORIAL Editor Joe Peskett Tel: +971 4 444 3305 email: joe.peskett@itp.com ADVERTISING Sales Manager Ben McGladdery Tel: +971 4 444 3635 email: Ben.McGladdery@itp.com ITP LIVE General Manager Ahmad Bashour Tel: +971 4 444 3549, email: ahmad.bashour@itp.com PHOTOGRAPHY Senior Photographers 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 Senior Image Editor Emmalyn Robles CIRCULATION CIRCULATION EXECUTIVE LORETA REGENCIA MARKETING Director of Awards & Marketing Daniel Fewtrell Events Manager Teri Dunstan ITP GROUP 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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Published by and © 2020 ITP MEDIA GROUP FZ-LLC MEDIARADAR 7 January 2020 · AVIATION BUSINESS www.aviationbusinessme.com Etihad to expand cabin crew ‘eco-residence’ Etihad becomes fi rst airline to raise funds tied to UN’s sustainable development goals The overall number of commercial air- craft booked by Airbus has reached more than 20,000 following the Dubai Airshow, which saw the business strike several large deals. 222 orders for com- mercial aircraft in November raised the total number of aircraft orders won by Airbus since its creation to 20,058. No- vember’s orders covered the A320neo family, A330neo and A350 XWB mem- bers of Airbus’ product line. And during the month, a total of 77 single-aisle and widebody aircraft were delivered to cus- tomers. The Dubai Airshow played a signifi - cant role in bumping up Airbus’ order book and included Air Arabia’s fi rm order for 120 A320 family aircraft, com- prising 73 A320neos, 27 A321neos and 20 A321XLRs. Emirates Airline signed for Dubai Airshow bonanza pushes all- time Airbus orders above 20,000 ORDERS Major orders from the likes of Air Arabia, Emirates and fl ynas unveiled at the Dubai Airshow last year give an end-of-year boost to Airbus’ order book 50 A350-900s at the show along with a fi rm order from fl ynas, Saudi Arabia’s fi rst low-cost airline, for 10 A321XLRs. Other widebody order bookings during November included 16 A330-900 ver- sions of the A330neo for Cebu Pacifi c, 10 A330-900s for CIT Leasing, and four A330neo aircraft in the A330-800 con- fi guration for an unidentifi ed customer. Fiji Airways’s A350 drew interest and orders from other airlines. The Mexico service has already proved popular. Emirates and North American carrier Interjet Airlines have signed an enhanced interline agreement opening new routes and destinations for passengers travel- ling between Mexico and the Middle East. Emirates passengers can now con- nect via Mexico City onto Interjet fl ights to Leon/Guanajuato, Culiacan, Cancun, Chihuahua, Guadalajara, Merida, Mon- terrey, Puerto Vallarta, Tampico, Tuxtla Gutierrez, Tijuana and Villahermosa. Interjet’s customers will be able to travel to Emirates’ destinations within the Mid- Emirates drives deeper into Mexico with Interjet Airlines deal as new service via Barcelona takes off NETWORK Interline agreement to see new routes opened up to passengers travelling between Mexico and the Middle East dle East, Spain, South East Asia, the Far East and North Africa. Adnan Kazim, Emirates’ CCO, said: “This partnership further demonstrates our commitment to Mexico for the long run, as we continue to look at ways to Completing the month’s new busi- ness was easyJet’s order for 12 additional A320neo aircraft. Among the month’s notable deliveries were the fi rst A350- 900s received by Fiji Airways and Scan- dinavian carrier SAS; along with the fi rst A320neo to Air Corsica and an A321neo to Air Asia. Airbus’ backlog as of 30 No- vember stood at 7,570. build our operations in the market to best serve our customers. While the interline agreement is only the start of our collabo- ration, we’re looking forward to explore more mutual opportunities and a wider scope of partnership in the near future.” Emirates’ partnership with Interjet started in April 2019 with a one-way in- terline agreement, allowing passengers from Emirates’ 12 US gateways to travel to Mexico City on Interjet fl ights. With the partnership agreement, Emirates’ passengers can now tap into Interjet’s do- mestic presence in Mexico and access 12 destinations beyond Mexico City. RADAR January 2020 · AVIATION BUSINESS 8 www.aviationbusinessme.com Upgraded aircraft expected on Gulf Air’s Indian routes Gulf Air expects more Indian travellers with the addition of new international destinations Dubai Airports will remove all plastic cutlery, drinking straws, take-away food packaging and polythene bags from its cafés, restaurants and shops. With 90 mil- lion passengers passing through Dubai’s two airports – DXB and DWC – every year, consuming tens of thousands of plas- tic items from straws to water bottles to coffee lids on a daily basis – the plastic- free initiative presents a huge logistical challenge to the management team and to every business in their supply chain. The ban will take a phased approach with the aim for completion scheduled by the end of the 2020. Pressure is growing for corporations and individuals to act more responsibly and adopt more sustain- able practices to fi ght against plastic pol- lution and preserve marine life. Already 95% of Dubai Airports’ commercial part- ners have signed the pledge to stop using disposable plastic in their outlets. Dubai Airports chucks single-use plastics in major F&B move AIRPORTS Airport operator works with major outlets like Costa, McDonalds and Pret a Manger to ban single-use plastics Notable among them is Costa Cof- fee which has committed to replacing its plastic-lined cups with a 100% renew- able, plant-based “smart” cup. The coffee giant sells over 2.6 million cups of coffee in Dubai’s airports a year – that alone has a great impact on change. This will be followed later next year by the introduction of a coffee cup lid made Over-capacity is often an issue in the Middle East. Foodservice operators will work in partnership. Middle Eastern airlines led the way in passenger traffi c growth in October with a 6% increase compared to the same time last year, a signifi cant rise from the 1.8% growth in September. Data from the International Air Trans- port Association (IATA) showed that average global demand climbed 3.4% compared to October 2018. This was a modest slowdown from 3.9% growth recorded in September, owing to soft- er traffi c performance in domestic markets Middle East airlines enjoy sharpest passenger growth DATA Airlines in Middle East lead the way in traffi c growth after seeing 6% increase year-on-year But the Middle Eastern market led the rest for the fi rst time since June entirely from wood and paper fi bre in- stead of single-use plastic. Pret a Manger, McDonalds and Gi- raffe are also on board, alongside around 290 other retail and F&B outlets, and have started the process of eliminating consumer-facing plastic items from their concessions and replacing them with more sustainable alternatives in just 6 months. New research commissioned by Dubai Airports highlights widespread public support for recycling initiatives. In the UAE, over half (52%) of air travellers say they carry a reusable water bottle, and almost 1 in 2 (49%) say they will choose to eat in a restaurant to avoid plastic packaging and almost a third (32%) say they don’t buy items at the air- port containing non-recyclable materials. But it is clear that passengers feel airports could be doing more on the is- sue with 92% saying that they need to be more vocal about what they are doing to recycle waste. 2018. Capacity increased 0.3% in the region and load factor surged 3.9 per- centage points to 73.5%. Commenting on the global trend, Alexandre de Juniac, IATA’s CEO, said: “Traffi c growth continues to be depressed compared to historical long- term growth levels, refl ecting continued moderating economic activity in some key markets and sagging business con- fi dence. However, the fact that traffi c is growing is a positive, and the industry continues to do an excellent job of max- imising asset effi ciency, as shown in the record load factor.”RADAR 9 January 2020 · AVIATION BUSINESS www.aviationbusinessme.com Boeing to freeze Max production from January Planemaker will focus instead of delivering planes to customers Air services provider dnata will purchase the remaining 50% of its UK infl ight ca- tering joint-venture, Alpha LSG, from the LSG Group. The acquisition will make dnata the sole shareholder of the biggest in-fl ight catering, on-board retail and lo- gistics company in the UK. The transac- tion is now subject to regulatory approval. Alpha LSG was formed in 2012 by the dnata-owned Alpha Flight Group and LSG Sky Chefs; each holding a 50% share of the business. Alpha LSG opera- tions will continue as usual. Alpha LSG has revenues of over £290 million and em- ploys 3,500 people across 15 airport cater- ing facilities and two central production facilities in the UK. Each year it produces over 30 million meals, serving more than 160,000 aircraft belonging to its 80 cus- tomers around the world. dnata snaps up remaining shares of Alpha LSG from LSG Group ACQUISITIONS Acquisition will make dnata the sole shareholder of the biggest infl ight catering, on- board retail and logistics company in the UK Robin Padgett, divisional senior VP at dnata, said: “Alongside the LSG Group, we have built a high-performing business in the UK and have helped our airline customers deliver innovative, world-class solutions for their customers. We appre- ciate the strong partner we have had in LSG over the past seven years and are dnata will signifi cantly expandits UK operations with acquisition of Alpha LSG Air BP, the international aviation fuel products and services supplier, has signed a technical services agreement with So- nangol, the state-owned oil company in Angola. The move marks Air BP’s entry into the country and expands its footprint in Africa. Air BP will support Sonangol Air BP enters Angolan market via Sonangol amid African expansion TECHNICAL SERVICES Deal marks Air BP’s entry into the country and expands its footprint in Africa Angola added: “I’m delighted we have reached this agreement with Sonangol; our Air BP business is looking forward to contributing and supporting Sonangol and Angola in this important activity. This is another step in the growth of BP’s strategic relationships with Sonangol and Angola, and we look forward to building on this for the future in support of the gov- ernment’s desire to strengthen and diver- sify the economy.” Air BP fi rst started operations in Afri- ca 75 years ago in Mozambique and Zan- zibar and now provides fuel at around 40 locations across the continent. Technical services agreements are provided to cus- tomers in 15 African countries. excited to build on our success and bring Alpha LSG’s employees into the dnata family.” The planned purchase follows dnata’s increased investment in its catering port- folio this year, having opened new facili- ties in Houston, Boston, Los Angeles, San Francisco and Vancouver. in assuring its operations to international standards, providing advice on product quality, operations, HSSE and engineer- ing. Training programmes will be deliv- ered in Portuguese to build knowledge and competence locally. Justin Walker, technical services direc- tor, Air BP, said: “We are excited to part- ner with Sonangol to help them achieve their growth aspirations in Angola safely, effectively and reliably. The strong rela- tionship BP Angola has developed with Sonangol and the Angolan government over the past decades, coupled with Air BP’s 90 plus years of aircraft refuelling experience, is a winning combination.” Stephen Willis, BP regional president, Next >