NEWS UPDATENEWS UPDATE || FACTS & FIGURESFACTS & FIGURES || IN-DEPTH ANALYSISIN-DEPTH ANALYSIS || TRADE COLUMNSTRADE COLUMNS RETAIL REVOLUTION Tools to modernise airlines’ distribution AN ITP MEDIA GROUP PUBLIC ATION THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | VOLUME 19 ISSUE 02 FEBRUARY 2020 Download the free Aviation Business app and be the fi rst to read the latest issue on your mobile devices. MRO MIDDLE EAST GET YOUR MAINTENANCE FIX PURSUIT OF HAPPINESS Why content passengers mean more F&B sales Dubai’s gatekeeper for Expo, Tahnoon Saif, CEO of MBR Aerospace Hub, relishes the responsibility of welcoming the worldTHERE IS NO COMPARISON. NO EQUAL. THERE IS ONLY ONE. THE COMMERCIAL JET ENGINE IN A LEAGUE OF ITS OWN. Powered by an industry-first geared architecture — and more than 40 other groundbreaking innovations — the Pratt & Whitney GTF™ is unlike any engine that’s come before it. EXPLORE THE FUTURE OF FLIGHT AT PW.UTC.COM PW_CE_GTF_AviationBusinessMidEast.indd 11/22/20 10:05 AM3 February 2020 · AVIATION BUSINESS www.aviationbusinessme.com CONTENTS February 2020 Volume 19 Issue 02 NEWS UPDATENEWS UPDATE || FACTS & FIGURESFACTS & FIGURES || IN-DEPTH ANALYSISIN-DEPTH ANALYSIS || TRADE COLUMNSTRADE COLUMNS RETAIL REVOLUTION Tools to modernise airlines’ distribution AN ITP MEDIA GROUP PUBLIC ATION THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | VOLUME 19 ISSUE 02 FEBRUARY 2020 Download the free Aviation Business app and be the fi rst to read the latest issue on your mobile devices. MRO MIDDLE EAST GET YOUR MAINTENANCE FIX PURSUIT OF HAPPINESS Why content passengers mean more F&B sales Dubai’s gatekeeper for Expo, Tahnoon Saif, CEO of MBR Aerospace Hub, relishes the responsibility of welcoming the world DAFZA ‘responsible for 12% of Dubai’s foreign trade’ Emirates president Sir Tim Clark to step down Top 10 most punctual airlines in the Middle East revealed Etihad unveils EasyJet as fi rst of several NDC partners IAG boss Willie Walsh to be replaced by Iberia’s chief executive UAE approves Air Arabia Abu Dhabi as national carrier To be or not to be? Why the Flybe crisis has angered competitors 7 8 8 10 12 12 13 TECHNOLOGY AIRBUS AND LUFTHANSA How tech is being used to minimise dis- ruption and mitigate revenue risk TRAINING TOP DOGS Etihad Aviation Training and Alpha Aviation Training Academy UAE mark fi rsts 15 MANUFACTURER DE HAVILLAND Canadian fi rm targets regional opera- tors with versatile turboprop 16 COVER STORY MBR AEROSPACE HUB Aviation capital gets ready for Expo influx when it will welcome private jets from around the world THE FRONT 23 16 14February 2020 · AVIATION BUSINESS CONTENTS 4 www.aviationbusinessme.com DISTRIBUTION RESEARCH IRAN CRASH IATA’s Yanik Hoyles shines a light on an industry shift towards retail Why airports are investing more in making passengers happier How the tragic events of fl ight PS752 unfolded 28 39 41 AVIATION PARTNERS SHOW PREVIEW MRO MIDDLE EAST & AIME 2020 A snapshot of the two shows set to pull in swathes of aviation professionals this month MARKET OUTLOOK ALEXANDRE DE JUNIAC IATA boss gives his predictions for the year ahead and de- tails what direction the industry needs to travel in 35 REPORT BUSINESS AVIATION How private jet operators and manufacturers are marketing their aircraft to businesses 31 19Close to you. Far from ordinary. Lufthansa Technik is never far away from your operational needs. Our regional facility in Dubai provides spares, repairs and maintenance for the entire Middle East. With a team of dedicated experts in our network, we offer maintenance operations on all Airbus and Boeing short- and medium-haul aircraft. In addition, our Airline Support Team is ready to help you with on-site repairs to avoid costly AOG situations. And our local ARC® shop gives aircraft operators even closer access to our renowned experience with composite and bonded structures. Lufthansa Technik AG | marketing@lht.dlh.de | lufthansa-technik.com | Call us: +49-40-5070-5553 Visit our booth #1020 at MRO Middle EastFebruary 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 The new decade began bleakly for global civil aviation. Just a week into the New Year, a spat between Iran and the US forced jetliners to reroute around airspace in the Arabian Peninsula, burn more fuel and delay passengers. Increasing tensions in the region culminated in the deaths of 176 people when a Ukrainian International Airlines flight was shot down by Iran’s military, which mis- took the plane for an American cruise missile. It is worth noting here that Middle Eastern airlines showed remarkable resilience and their usual steadfastness in the face of such challenges, with hardly any disrupting schedules. In Europe, the continent’s largest regional carrier, Flybe, plunged into crisis after running out of money. The British airline only narrowly avoided falling into administration after it was saved by the UK Government and an emergency cash injection from its parent group. And across the Atlantic, Boeing remained entangled in its Max troubles. New CEO Dave Calhoun pledged to instil new trust in the company, only to have to report that the 737 Max would not be cleared to fly again until at least the summer. We may ask ourselves then, what is there to be optimistic about? Well, looking closer to home in the Middle East, there is certainly plenty to be excited about for the months ahead. I would ask you to try and absorb some of the enthusiasm emanating from the local aerospace industry in the com- ing months. Our February cover, Saif Tahnoon, CEO of MBR Aerospace, embodies the hunger and ambition of the UAE’s aviation industry as we approach Expo. The eyes of the world will soon be on the home aviation market, and this is a chal- lenge for us all to embrace. Despite the industry’s rocky entry into 2020, the operators in this region appear to show nothing but focus and opti- mism for what could be a year that catapults the Middle East aerospace industry into the fore. The world is watching 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 Benjamin McGladdery Tel: +971 4 444 3125 email: benjamin.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 Head of Circulation Vanessa D’Souza 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. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. Published by and © 2019 ITP MEDIA GROUP FZ-LLCRADAR 7 February 2020 · AVIATION BUSINESS www.aviationbusinessme.com Turkish expands into China with fourth destination Xi’an fl ights will operate three times a week on Airbus A330 aircraft Dubai Airport Freezone Authority (DAFZA) said that it contributed 12 per- cent of Dubai’s AED1.02 trillion ($272 billion) foreign trade in the fi rst nine months of 2019. DAFZA said it achieved a growth of 11.2 percent in the total val- ue of foreign trade to reach AED120 bil- lion ($32.6 billion), in addition to an 11.8 percent growth in re-exports, valued at AED68 billion and accounted for 21.7 percent from the total re-exports in the emirate of Dubai. DAFZA added that its operations during the fi rst nine months of 2019 helped achieve a large trade sur- DAFZA ‘responsible for 12% of Dubai’s foreign trade’, it claims FINANCIAL Dubai Airport Freezone Authority says it contributed over a tenth of Dubai’s total foreign trade in the fi rst nine months of 2019, amounting to $272 billion plus of AED16.2 billion. Dr Mohammed Al Zarooni, director general of DAFZA, said: “DAFZA is a key contributor to Dubai’s economy, at- tracting foreign direct investments from all over the world. Despite economic conditions and global uncertainties, the results achieved across a range of KPIs refl ect the increasing global trade vol- umes coming through the free zone to- wards international markets. DAFZA has become a strategic partner to for- eign investors who benefi t from our world-class services.” DAFZA grew foreign trade by 11.2% in 2019 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_175x110_Aviation_Business_20200201_01.indd 123.01.20 11:24RADAR February 2020 · AVIATION BUSINESS 8 www.aviationbusinessme.com BelugaXL enters service amid Airbus‘ plans to ramp up production Transporter has 30% extra capacity and will help Airbus make more planes Two Emiratis are the favourites to re- place Emirates airline president Sir Tim Clark when he steps down in June after 35 years at the carrier, according to reports. Sheikh Ahmed bin Saeed Al Maktoum, chairman and CEO of Emirates airline, sent an internal memo to staff announc- ing that Clark would retire in June 2020 after nearly four decades at the company. According to sources cited in media reports, Emirates chief operating offi cer Adel Al Redha and chief commercial of- fi cer Adnan Kazim are the two favour- ites to succeed Clark. Ghaith Al Ghaith, fl ydubai CEO, is also believed to be among potential successors although the budget carrier has not confi rmed this to be the case. Clark turned 70-years-old in Decem- ber and in the internal memo, Emirates’ Emirates president Sir Tim Clark to step down PEOPLE Two UAE nationals are believed to be frontrunners in the race to succeed industry veteran Sir Tim Clark when he retires in June of this year chairman credited him with growing and steering the airline “through wars, economic recessions, disasters natural or man-made, and various industry up- heavals”. Adel Ahmad Al Redha has been with Emirates for 31 years and was appointed Etihad is positioned 17th globally for OTP. Sir Tim has been with Emirates for over 30 years. Etihad Airways is the most on-time air- line in the Middle East and the 17th most punctual in the world, according to a new report. OAG’s punctuality league table for 2020 ranks airlines based on their average performance throughout 2019. It calculated on-time performance (OTP) as a percentage of fl ights that depart or arrive within 15 minutes of schedule. Major airlines in the Middle East re- gion performed well but surging ahead in was South Africa’s Safair, with an average OTP of 94.4% throughout 2019. Etihad Airways, Qatar Airways, Middle East Airlines and Emirates took the sec- ond, third, fourth and fi fth spots. Top 10 most punctual airlines in the Middle East revealed in new league table showing OTP rankings AIRLINES OAG’s 2020 report for the most on-time airlines features two Emirati carriers with Etihad Airways clinching the top spot Etihad joins OAG’s punctuality league for the fi rst time, due to improved coverage. Oman Air has made a signifi cant im- provement, achieving an OTP of 78%, up seven percentage points from 71% last year. The best airline in the world for on- chief operating offi cer in September 2019. Looking after all the operational depart- ments, this includes fl ight operations, ser- vice delivery, airport services, Emirates Engineering, crew manpower, aircraft procurement and the Emirates Flight Training Academy. He also looks after worldwide network operations, including crisis response. Adnan Kazim was appointed chief commercial offi cer (CCO) three months ago. He is responsible for worldwide commercial operations, including e-com- merce, the Emirates Skywards loyalty programme and Emirates SkyCargo. He joined Emirates in 1992 as a management trainee and has successfully led the air- line’s commercial operations in markets such as the UAE, Switzerland, Pakistan and East Africa. time performance in 2019 is Garuda In- donesia with an average OTP for the year of just over 95%; meaning 19 of every 20 fl ights operated to within 15 minutes of the schedule. Copa Airlines ranks second despite having succeeded in improving OTP to 92%, an indication of how strong the best airlines were for punctuality. Asia Pacifi c airlines appear nine times among the Top 20 airlines, while only two North Ameri- can airlines made it into the list. Among European airlines, only fi ve made it into the Top 20 of the Punctuality League in 2019 of which Aerofl ot, a new entrant this year, is ranked highest in sixth position.COMING THIS MARCH DUBAI, UAE ACHIEVEMENT AWARDS 2020 For nomination enquiries: Joe Peskett | Editor, Aviation Business Tel: +971 4 444 3305 Email: joseph.peskett@itp.com For table sales and event enquiries: Teri Dunstan | Events Manager Tel: +971 4 444 3227 Email: teri.dunstan@itp.com For sponsorship enquiries: Benjamin McGladdery | Sales Manager Tel: +971 4 444 3227 Email: benjamin.mcgladdery@itp.com To celebrate 14 years of recognising excellence within the ever growing aviation sector in the Middle East, Aviation Business is pleased to bring you the Aviation Business Achievement Awards 2020. Winners will be announced in categories celebrating the best of the best within regional and international airlines, airports and aviation support organisations. For more information, visit www.aviationbusinessme.com/awards or contact one of our team today. ToTo c celelebebraratete 1 14 4 yeyearars s ofof r rececogogninisisingng e excxcelellelencnce e wiwiththinin t thehe e evever r grgrowowining g avaviaiatt inin t thehe M Mididdldle e EaEastst, , AvAviaiatitionon B Bususininesesss i is s plpleaeasesed d toto b briringng y youou t thehe AvAviaiatitionon B Buu AcAchihievevememenent t AwAwarardsds 2202020.0. WiWinnnnerers s wiwillll b be e anannonoununceced d inin c catategegororieies s cecelelebrbratatining g ththe e bebestst o of f ththe e bebestst w witit reregigiononalal a andnd i intnterernanatitiononalal a airirlilinenes,s, a airirpoportrts s anand d avaviaiatitionon s supuppoportrt o orgrgananisisatatiivviaiatt FoFor r momorere i infnforormamatitionon, , vivisisit t wwwww.w.avaviaiatitiononbubuomom/a/awawardrds s ononbubusisinenessssmeme.c.comom/a/a oror cconontatactct oonene oo oouu tteaea totodadayyofof o ourur t teaeam m totodaday.y. BOOK YOUR TABLES TODAY!Next >