< PreviousTHE HELICOPTER COMPANY January 2020 · AVIATION BUSINESS 20 www.aviationbusinessme.com Yahya Al Ghoraibi, CEO, The Helicopter Company. VIPs, government offi cials and business- men and women who need to move around quickly and effi ciently. But Al Ghoraibi explains that THC will eventu- ally start targeting tourists and pilgrims with convenient, luxury transport and scenic trips. The company will even look to pursue business with medical emer- gency services requiring rapid transport. Serving such a broad spectrum of cus- The fi rm’s branding was splashed across the Dubai Airshow as part of its launch strategy. to place itself as the centre of the frenzy. Al Ghoraibi says that the new system has helped signifi cantly in THC’s initial launch, which could not have happened at a better time. “Coming into the country nowadays is not how it used to be. You can get a visa in just minutes. And we are there ready, available to take passengers to and from cities and on tours in scenic areas. We are very excited. What is also exciting is the team that we have. We have selected a very good team which will take the company to the next level.” In its mission to make the most of the burgeoning tourism market, THC’s executives are naturally looking for col- laborations within the aviation sector and from supporting industries. Al Ghoraibi hopes to tap into the existing companies in Saudi to build on the services it offers. Partnerships will of course include MRO and FBO contracts and deals with other aviation services providers. Al Ghoraibi confi dently states that THC’s fl eet “is going to grow quickly” and knows that it will need services available to support its expansion and the aircraft. THC’s emer- gence then, is being welcomed by local MRO and FBO providers in Saudi and the wider region. It is perhaps surprising that a company liked THC has not fl ourished in Saudi Arabia before. Perhaps the strength of operators like fl ynas and fl yadeal dominating domestic routes has made it diffi cult for new companies to muscle in. But THC’s obvious USP comes in its fl eet of helicopters. Even turboprop and light aircraft would struggle to compete with the operator in terms of the specifi c market it is targeting. Al Ghoraibi cedes The market is promising, the market in Saudi is booming, but the issue is that we have to go as fast the market is expanding, which is a challenge. But that is the fun part of it. This has never been done before and we are doing it with quality and safety” tomers with varying needs is “part of the challenge”, says Al Ghoraibi. Inevitably, such a strategy will eventually involve THC having to diversify its fl eet. In regards to fl eet expansion, Al Ghoraibi says: “The aircraft are going to need to be different because the demand is different. You have a VIP demand and you have a tourism demand; they are both completely different to each other. You need different aircraft to cater for these different demands. And the mar- ket is open for all the types of aircraft that are available.” The tourism market is particularly lucrative to Saudi Arabian businesses since the new visa was introduced in 2018. Thousands upon thousands of foreign tourists snapped up the new vi- sas in the days and weeks following the launch and THC, along with other avia- tion operators in the region, has aimed THE HELICOPTER COMPANY 21January 2020 · AVIATION BUSINESS www.aviationbusinessme.com that turboprop aircraft are an effective vehicle and have a place in the domestic market, but believes helicopters hold a distinct advantage. He comments: “[Planes] require a lot of time, you have to buy a ticket, go to the airport, check- in, wait for departure, it’s a lengthy process. With a helicopter, you just come down and take the aircraft to wherever you want in a very short time. It gives you more valuable time to use.” Helicopters are unsurprisingly, there- fore, a highly attractive option for time- poor individuals travelling for business or VIPs on tight schedules. The potential for THC in the Saudi market, Al Ghoraibi believes, is “huge”. And while sceptics may question whether Saudi Arabia has the infrastructure to support THC’s growth, the CEO insists that it does and tors. They are of course applying the rules to us 100%, but they are being very supportive because we are a new type of transport company in the country and they want this experience in the country. We do appreciate that support from the regulators, it’s very important.” On the whole, Al Ghoraibi and his peers believe that the Saudi market is attracting large investors, contributing to a shift of the local aviation landscape. Operators are angling their strategies to capitalise on the emerging oppor- tunities and markets, which will likely bring some exciting changes in the year ahead. Al Ghoraibi sees THC’s role in the developing market as helping visi- tors to Saudi to enjoy the country and to “make their journey more beautiful”. Although perhaps a little romantic, Al Ghoraibi’s comments appear to be genuine and he seemingly relishes the chance to play a part in and help ac- celerate the Kingdom’s new chapter of aviation growth. As long as THC can keep up with demand and overcome the challenge of scaling its services quickly, it could soon become a serious player in the local market. And who knows? We may eventually see its helicopters thudding their way to other parts of the Middle East. QUICK-LOOK: SAUDI VISION 2030 Saudi Vision 2030 includes a number of goals and reform strategies for the Kingdom’s long-term economic success, including reductions in subsidies, the creation of a sovereign wealth fund, opening Saudi Aramco to private investment through a partial IPO, and reforms to several industries including tourism. The vision is built around three primary themes: a vibrant society, a thriving economy and an ambitious nation. In order to achieve a thriving economy, the Kingdom will diversify its economy and create dynamic job opportunities for its citizens. This will happen through commitments to education, entrepreneurship and innovation, including: diversifying the nation’s economy through the ongoing privatisation of state-owned assets, including establishing a sovereign wealth fund that will be fi nanced through the partial IPO of Saudi Aramco; unlocking underdeveloped industries such as manufacturing, renewable energy and tourism; modernising the curriculum and standards of Saudi educational institutions from childhood to higher learning. Saudi Arabia will refocus on small and medium-sized enterprises (SMEs) by encouraging fi nancial assistance, increasing the contribution of SMEs to GDP from 20% to 35% by 2030. that THC will continue to invest in more of its own helipads and other facilities. Additionally, the fact THC has a single owner in the PIF, means the young busi- ness can be fl exible and dynamic. Al Ghoraibi explains: “The PIF is very open and it gives us the freedom to identify our requirements and then action them. We have a green light and if we have any problems we can solve them quickly. On the other hand, we are getting a lot of support from the regula- Trade punters expressed interest in THC’s off ering at the airshow. THC had a prime location at the Dubai Airshow.January 2020 · AVIATION BUSINESS 22 www.aviationbusinessme.com SAUDI: THE DOOR IS OPEN HOW OPERATORS ARE BEING IMPACTED As arguably the leading domestic budget airline in Saudi Arabia, fl yadeal has quickly made a name for itself in the region after only launching in 2017. Sudeep Ghai, chief customer and commercial offi cer at the airline, explains how the business is being impacted by the changes going on in the Kingdom and how it is adapting to them. ject centred on promoting tourism and entertainment and the several domestic tourism seasons that were launched last year. Most people agree that the Saudi market is booming. But how long will it last? I would say the boom has only just be- gun and any softening of the global economy is unlikely to aff ect this over the next 10 years. Think of this as the state-led development of Dubai over the last 30 years compressed into 10 years in Saudi Arabia. Why? The inbound tourism market has never really existed and the beauty of the country – Red Sea diving, wonderful historic sites, a rela- tively untouched landscape – is only just being unveiled. There are huge projects underway that will drive inward busi- ness traffi c, for example the NEOM zone is a mega-project focused on advanced industries and technology, with robots being used for services and power be- ing generated solely from wind and solar energy. The Vision 2030 ambition is to grow Umrah traffi c to 30 million pilgrims by 2030, some three times the levels of today, which is more than most airports have in the region today. And How has the new tourist visa system shifted the Saudi Arabian aviation market and its fortunes? In the fi rst 33 days since they were launched, some 77,000 tourist visas were issued and that represents enor- mous potential. It is diffi cult for us at fl yadeal to see any direct link between the visas and fl ights because our fl ying is 100% domestic and we would only see this as travel within the Kingdom. That being said, this has to be seen in the much larger context of the Vision 2030 project and a wave of changes that are pro-travel. Consider a few examples: plans to dramatically increase year- round Umrah pilgrim traffi c, the fact that women can now travel without their guardians, a nation-building pro- fl yadeal has not yet had to launch internationally. SAUDIA FLIES FLAG FOR NEW TOURISM INITIATIVES National flag carrier Saudia is one of the best-placed operators to cash in on the new tourist visa system, as tourists from around the world plan their trips to Saudi Arabia. Saudia currently flies to more than 95 destinations across four continents, providing direct routes to and from cities across North America, Europe, Asia and the Middle East and Africa. The airline is therefore targeting leisure travellers seeking to visit the several UNESCO sites in Saudi Arabia and other tourist attractions. The new tourist visa system within the Kingdom is expected to aid Saudia’s growth. The company says that in general, the growth in business and economic activity, as well as leisure traffic has increased overall demand for travel services. A spokesperson comments: “For example, the opening of the new airport terminal in Jeddah as well as the new visa system has seen added demand in hospitality and travel services. Cultural, entertainment and sporting events have also been a draw for international tourists. For example, in November, the Formula E electric car race championship was held for the second time in Diriyah and Saudia was the official airline partner of the ABB FIA Formula E Championship.” Aiming to make the most of the growth in the country, Saudia is running a range of initiatives. These include opening new routes, increasing capacity on existing routes and upgrading the fleet with the latest aircraft. Saudia currently has one of the youngest fleets in the region, at less than five years of age on average. Saudia also regularly participates in travel trade and aerospace exhibitions, as well as conferences around the world to showcase its products.23 January 2020 · AVIATION BUSINESS www.aviationbusinessme.com SAUDI: THE DOOR IS OPEN The performance of the airline has been ahead of expectations. We have grown faster than most start-up airlines and we have fl own over six million passengers since we launched. It has been a measure of our success that our board has been prepared to back a new aircraft order less than 24 months after we started fl ying. I would also add that we had planned to commence international fl ying in the second quarter of 2018. The fact that we have not gone down that path demonstrates how strong the demand for the product has been within the Kingdom. In saying all this, we recognise the commitment of all our dedicated fl yadeal team, especially our frontline teams in the cabin crew, pilots and airport staff , who are the face of fl yadeal every day. They have done a fantastic job in bringing to life a working example of a low-cost carrier in Saudi Arabia. How will the new A320 neo’s trans- form fl yadeal’s capabilities and the way it operates? The neo aircraft will deliver a more fuel effi cient performance and give us the range to open up new destinations. We also have the opportunity to look at other Airbus family aircraft and the A321XLR is a very interesting aircraft. What are fl yadeals plans for its next two years of business? It is simple really: deepen our domestic network and cherry pick the interna- tional routes where we want to take the ‘everyday low fares’ promise to new customers. Air Arabia Abu Dhabi launched recently as the region’s newest low- cost carrier. What do you feel the potential is for the low-cost carrier market in the Middle East? Some observers say it is becoming satu- rated considering the region’s rela- tively small population compared to Europe, for example. I think that depends on your defi nition of the Middle East. The GCC is of modest scale but once you include the Levant and North Africa in the Greater Middle East the market is signifi cant, some 400 million people, many of whom are price conscious customers that have not had access to low fare travel. If we are comparing to Europe, we’d have to take a look at the experience of the region to ask whether the Middle East has seen genuine examples of ‘pure’ low-cost airlines, not hybrid variants or those uniquely designed to tap sixth freedom traffi c fl ows. From our vantage point in Saudi Arabia with a sizeable local market and looking at the oppor- tunities in the region, our view is that the potential is a long way from being tapped, provided governments in the broader region support the growth in low fare travel for customers who would not otherwise fl y. if the Saudi population of just over 30 million people averaged six trips per capita as in other developed markets worldwide we would have an outbound market of 180 million. It is hard to see anything but upside in Saudi Arabia for the near term. More Saudis are now booking their domestic fl ights on smartphones. How important has it proved for fl y- adeal to invest in this trend? We do our best to be mobile and digital fi rst. We have to be. We have 95% of our customers coming through online chan- nels and 60% of the total come through mobile devices. We are designed for our customer – largely 26-40 years of age, tech savvy and price conscious – in a market where 80% of the population is less than 40 and has at least two phones. This is a country that is ripe for tech- nological innovation and ecommerce. What is behind fl yadeal’s recent re- cruitment drive? How diffi cult – or easy – has it been to get hold of the necessary pilots and cabin crew? While proudly Saudi and the majority of our team being Saudi nationals, we also boast more than 50 nationalities within fl yadeal, a testament to both the airline’s and the Kingdom’s appeal. Flyadeal only launched just over two years ago. Are its projections being met or even exceeded? Sudeep Ghai, CCO at fl yadeal. JEDDAH’S KAIA OPENS ONE OF WORLD’S LARGEST TERMINALS With Vision 2030 driving growth among travel operators, a key focus for Saudi Arabia has been developing its infrastructure so that its transport hubs can both keep up with and fuel projected demand. King Abdul Aziz International Airport (KAIA) in Jeddah only recently inaugurated its new Terminal 1, representing one of the largest infrastructure projects undertaken in the Kingdom. KAIA Terminal 1 boast 810,000 square meters of space and a capacity for handling 30 million passengers a year, making it a huge hub for the region. The terminal will be able to accommodate up to 70 aircraft simultaneously, including the Airbus A380. It is estimated that KAIA Terminal 1 is one of the largest terminals in the world and its long-term goal is to handle more than 80 million passengers a year by 2035 to keep pace with the growing demand for air travel and tourists. The number of people using KAIA hit a new record in 2018 by passing the 41.2 million mark.www.aviationbusinessme.com January 2020 · AVIATION BUSINESS 24 SAUDI: THE DOOR IS OPEN Ones to Watch Etihad Airways became the fi rst non-Saudi air- line to operate fl ights to Jeddah’s new Terminal 1. The inaugural fl ight was operated on Etihad’s 787 Dreamliner with livery inspired by Saudi Arabia. Etihad Airways fl ights to Jeddah have relocated from the old terminal of King Abdulaziz International Airport to the new terminal, Terminal 1. The Abu Dhabi-based airline has been serving Saudi Arabia since 2004. Etihad operates 84 weekly passenger frequencies from Abu Dhabi to Riyadh, Jeddah, Madinah, and Dammam using A320, A330, B777, and B787. Robin Kamark, CCO, Etihad Aviation Group, said: “The introduction of the new terminal in Jeddah and the warm welcome we’ve received is a demon- stration of our commitment to the Saudi market and it’s a refl ection towards the deep relationship between the UAE and the Kingdom of Saudi Arabia. Flynas agreed to purchase 10 A321XLRs at the Dubai Airshow in November. Flynas’ order, signed by the Saudi budget carrier’s CEO, Bandar Almohanna, came on the heels of $30bn worth of Airbus deals struck by Emirates and Air Arabia earlier in the show. The car- rier ordered 80 A320neos in 2016 and currently operates a fl eet of 27 A320ceos and four A320neos. ETIHAD IS FIRST FOREIGN AIRLINE TO FLY TO JEDDAH’S KAIA T1 Etihad Airways and IndiGo recently an- nounced plans for new fl ights to Saudi as they look to cash in on new demand for the Kingdom fuelled by the tourism visa system. Saudi Arabia opened up to tourists earlier this year with tens of thousands of people applying for a tourist visa in the fi rst week of launching. Now, several carriers in the Middle East and Asia have begun making plans to capitalise on the new demand for Saudi destina- tions. Etihad Airways has added a fourth daily fl ight on its Abu Dhabi to Riyadh route while IndiGo has pledged to add services to Saudi from multi- ple locations in India. Etihad, which already has a codeshare agreement with fl ag carrier Saudia, will operate A320s on its new fl ights. Robin Kamark, chief commercial offi cer for Etihad Aviation Group, said: “The introduction of the new fourth daily service to Riyadh is demonstrative of our commitment to the Saudi market, and of the increase in demand on this core route.” AIRLINES LAUNCH NEW SAUDI FLIGHTS FOLLOWING NEW TOURIST VISA FLYNAS ORDERS 10 NEW A321S Saudia has reached a new distri- bution agreement with tech fi rm Travelport to help it capitalise on the new growth the country’s tourism market is gearing up for. Under the agreement, Travelport will continue to support Saudia by providing more than 68,000 Travelport-connected agencies servicing travellers with real-time access to search, sell, and book its content and inventory. Travelport will let Saudia display NDC-based airline content on its platform. SAUDIA STRIKES DEAL WITH TECH FIRM TRAVELPORTHANDLING CARGO SPECIAL REPORT: Why Etihad Aviation’s innovations and investments in logistics serve as a golden example to regional operators in their collective battle to turn the tide for the Middle East’s air cargo market26 www.aviationbusinessme.com January 2020 · AVIATION BUSINESS ‘DUMP THE SLUMP’ Recent headlines surrounding the regional cargo market make for disheartening reading. But the industry’s leading lights are showing why players need to now, more than ever, invest and innovate, writes AVB’s editor Joe Peskett. Welcome to Aviation Business Middle East’s fi rst special report of the year. An extended, in-depth look at the air cargo sector, over the coming pages, experts in air cargo and the latest industry data will shed light on the current market and importantly, discuss ways in which it can improve. There is no hiding or denying the fact that the Middle East’s air cargo industry is going through a rough patch. While the region is geographically blessed and at the centre of some of the world’s most lucrative trade corridors, its air cargo industry largely depends on countries in the East and West freely exchanging goods. The ongoing trade war between the US and China has taken its toll on the local air cargo industry and the ping pong spat shows few signs of dissipating anytime soon. Our region in particular saw some of the sharpest volume drops in the world in recent months and it was particularly disappointing that tradi- tionally busier seasons failed to boost volumes. Data from the International Air Transport Association (IATA) shows that air freight volumes in the Middle East dropped at the tail-end of last year – by as much as 8% in September – cap- ping off 12 months of strife. Geopolitical and operational challenges, including airline restructuring, were all blamed for contributing to the decline, but a lot of the heartache stems from elements outside of the control of market players. And therein lies the frustration. It is hard to see a complete transformation of the Middle East’s air cargo market until in- ternational trade disputes begin to settle. Nevertheless, a lack of infl uence over the situation does not mean cargo carri- ers and businesses supporting the sector should simply stand still. Yes, everyone must weather the storm, but there is plenty that can be done to cushion the impact of the decline. After all, industry commentators believe the trough is just that – a dip in fortunes that will eventu- ally improve on its own accord. What businesses do in the coming months could dictate how they emerge out of the other side of the downturn and in what position they are to capitalise on the market when it does begin to revive. Etihad Aviation’s investment pro- gramme in its logistics division (pages 29-32) is a valid case study when look- ing at how the industry can strive to turn its fortunes around. Its renewed focus on digitalisation and modernising its cargo operation has in fact lessened the impact of the regional slump on its bottom line. And its recent partnership with aggregator cargo.one has opened it Could we witness a new dawn for air cargo in the Middle East this year? up to a new pool of untapped European SMEs. Similarly, Emirates’ innovations in e-commerce and UPS’ collaborative approach (pages 33-36) show how the very best players remain ambitious in adversity. The best in the business have spied clear opportunities in partnerships, e- commerce and technology. Online trans- actions grew by 44% in the MENA region between 2017 and 2018 and more carriers are tapping into this trend with digital platforms. And with Expo 2020 on the horizon, Middle Eastern air cargo opera- tors have the chance to show the world how effi cient and eff ective they can be. While it may be diffi cult to be opti- mistic in today’s climate, the biggest names in air cargo are showing us all that businesses can carve their own paths by seizing the elements in their control. I hope 2020 will see other car- riers follow suit. SPECIAL REPORT: HANDLING CARGOMARKET OUTLOOK Research compiled by organisers of the Cargo Connect conference crunches the numbers and provides an essential breakdown of the Middle East’s position within the international air cargo market. logistics infrastructure to capture the trade opportunity and grow- ing ecommerce market. The UAE, in particular, has been forging bilateral trade agreements with Asian part- ners whilst investing in logistics in- frastructure. Most cargo commentators, re- searchers and industry players cite not just changes in the global trade arena as aff ecting the industry, yet greater impacts coming from envi- ronmental management and com- mercial and technological disruption. The quest to reduce CO2 emissions and changing manner in which peo- ple purchase goods and have them delivered will have the greatest im- pact on the industry. New players The global trade arena is changing Recent global trade and po- litical infl uences have gen- erated some uncertainty in the global logistics and cargo sector. However, research sug- gests this is a short-term issue. In the medium term, Boeing’s predictions for the air cargo industry is that it will sustain a 4.2% growth rate to 2037, much of which will be underpinned by ecom- merce. Airbus has is- sued its own air freight forecasts and predicts a 4.2% CAGR from 2017 to 2027, yet then suggests a slower global growth rate for the fol- lowing decade at 3.1%. As a long-term prediction, Airbus sees a 3.6% CAGR globally and 3.4% in the Middle East. According to IATA, air freight ac- counts for 1% of the volume of freight moved internationally yet 35% of the value. Where container and sea freight are driven by bulk cargo, the air freight industry is heavily infl u- enced by time critical freight such as ecommerce and perishable goods; which are growing at 20% and 8% respectively. The centre of trade and manufacturing, like the aviation industry, is moving eastward to- wards the growing middle classes of Asia and India. Strategically, this leaves the Middle East in an advanta- geous location as a transit hub be- tween Europe and Asia. According to the OECD, Asia now accounts for 50% of the Middle East’s trade, up from 40% in 1999. The same report recom- mended signifi cant investments into 2019 was a bleak year for the Middle East cargo market. 50% ASIA ACCOUNTS FOR HALF OF THE MIDDLE EAST’S TRADE SPECIAL REPORT: HANDLING CARGO 27 www.aviationbusinessme.com January 2020 · AVIATION BUSINESS Cargo capacity in the Middle East increased 0.4% in October. TOUGH-TO-SWALLOW END-OF-YEAR RESULTS August 2019: Middle Eastern airlines’ freight volumes decrease 6.7% in August 2019 compared to the year- ago period. This was the sharpest drop in freight demand of any region. Escalating trade tensions, the slowing in global trade and airline restructuring impacted the region’s performance. Economic uncertainty from oil price volatility among the region’s oil reliant markets added additional pressure. September 2019: Middle Eastern airlines’ freight volumes decrease 8% in September 2019 compared to the year-ago period. This was the sharpest drop in freight demand of any region. Escalating trade tensions and the slowing in global trade aff ected the region’s performance due to its strategic position as a global supply chain link. October 2019: Middle Eastern airlines’ freight volumes decrease 6% in October 2019 compared to 2018. This was the sharpest drop in freight demand of any region for the month. Against a backdrop of operational and geopolitical challenges facing some of the region’s key airlines, seasonally adjusted freight volumes in the region resumed a modest upwards trend. CARGO CONNECT TO RE- TURN IN NOVEMBER 2020 Cargo Connect will return for its fourth edition in Dubai in November 2020 and will bring together the supply chain sector to discuss the latest trends and transportation solutions. The conference and exhibition provides a platform for the international logistics and supply chain industry to meet in the Middle East, a strategic hub for global trade. towards Emerging Market Economies (EMEs) and Asia. The Middle East’s strategic transport location between these emerging trade and manufac- turing hubs and the European and African markets has seen a range of bilateral trade agreements emerge. The most recent was a $3.4 billion trade agreement between the UAE and China including a $2.4 billion investment into a 5.5 million square metre logistics facility in Dubai. China is currently the UAE’s second largest trade partner and these agree- ments are expected to propel it into fi rst position with $70 billion of trade next year. Yet China is not the only country creating trade and logistics agree- ments in the Middle East. Vietnam and the UAE have a bilateral trade agreement. As both a destination and a transiting point, Vietnamese exports to the UAE were valued at $6.3 billion in 2017. In the same year, Emirates SkyCargo increased refrig- erated air services between the two nations by fi ve times. In early 2019, Indonesia followed suit as President Joko Widodo undertook several visits to the Middle East to promote trade relations in the wake of a dissolv- ing trans-Pacifi c partnership. The Philippines is also strengthening ties with the UAE as the two countries’ bi- lateral trade amounts to $1.49 billion, most of which is agricultural and ad- vanced manufacturing. MIDDLE EAST’S POSITION IN GLOBAL AIR CARGO MARKET Source: IATA August 2019September 2019October 2019 AfricaAsia PacificEuropeLatin America Middle EastNorth America 35.4% 23.3% 2.7% 13.2% 23.8% 1.6% 35.4% 23.3% 2.7% 13.2% 23.8% 1.6% 35.4% 23.3% 2.7% 13.2% 23.8% 1.6% SPECIAL REPORT: HANDLING CARGO 28 www.aviationbusinessme.com January 2020 · AVIATION BUSINESSTHE POWER OF PIXELS Abdulla Mohamed Shadid, managing director cargo and logistics at Etihad Aviation, is adamant that challenges in the region’s air freight market must be met with continued investment, modernisation and innovation. of over-capacity that has been in the industry for a while. Consequently, Etihad has not been afraid of invest- ing in what it believes is an area of serious growth potential when the tide evemtually turns. Prior to its digital transformation, Etihad Cargo was busy implement- ing a new strategy that restructured its network, reprioritised trade lanes and rejigged its fl eet to focus on 777 freighters, which today, produce 30% of its revenue. Etihad then revamped its hub infrastructure to cater for spe- ciality products like pharmaceuticals, live animals and fresh goods. The results, Shadid, says have been “quite While most operators in the air cargo space rec- ognise that the indus- try needs to change to survive, perhaps surprisingly, only a handful have acted to tackle the issues faced by the Middle Eastern market. A great shift in any indus- try requires a trailblazer to grab the gauntlet and take operational and fi nancial risks. One such company is Etihad Aviation. Those following the local aviation market over the last year will have noticed that Etihad has launched a handful of initiatives born from a detailed investment plan designed to boost its cargo division. Etihad’s bosses believe that the digital transformation of its cargo arm will help the company to capi- talise on what it sees as a region of huge potential when it comes to international trade. The geographi- cal location of the Middle East along the Asia-Europe and US-Asia corridor means MENA operators are posi- tioned to capture almost 70% of the world’s trade fl ows, as long as they can develop eff ective models. For Abdulla Mohamed Shadid, managing director cargo and logistics at Etihad Aviation, the region may be going through a slowdown for various rea- sons and there is a constant standard Etihad Cargo sees more value in investing in digital infrastructure than in more aircraft in the current climate. SPECIAL REPORT: HANDLING CARGO 29 www.aviationbusinessme.com January 2020 · AVIATION BUSINESSNext >