< PreviousFebruary 2020 · AVIATION BUSINESS 20 www.aviationbusinessme.com SHOW PREVIEW TP Aerospace is one of the in- dustry’s leading aftermarket sup- pliers of wheels an d b r ake s , carrying an ex- pansive ready- to-go inventory. Recognised as one of the most prominent wheels and brakes suppliers, it aims to cater for every individual requirement. With its exchange and cost-per-landing programmes supported by its extensive in-house MRO capabilities, the company strives to off er quality, simplicity and value for all commer- cial, charter and cargo aircraft operators worldwide. With its global presence of warehouses, MRO shops and support teams, TP Aerospace provides 24-7-365 support on a sale, ex- change, loan or lease basis. And by combining pool access and asset lease with in-house MRO capabilities, TP Aerospace can provide airlines and leasing companies with solid solutions through integrated, all-inclusive exchange programmes and cost-per-landing programmes. MTU Maintenance is a market leader in customised service solutions for aero engines. As an engine expert, it off ers a wide range of individually-tailored solutions encompassing innovative MRO services, integrated leasing and asset man- agement. The fi rm understands that operators increasingly require services tailored to their specifi c needs in order to control and optimise cost. It knows that residual value is key to lessors and asset managers, who rely on smooth transitions and intelligent exit strategies to maximise utilisation and value of their assets. MTU Maintenance’s 4,500 employees are part of its strategy to marry world-class engineering with intelligent creativity. With 30 engines in its portfolio, MTU Maintenance has performed more than 20,000 shop visits over 40 years. MTU Maintenance’s services include MRO, which makes up the core of the business. It understands that whatever engines operators fl y, they want to do this in the most cost-eff ective way, so it provides smart strategies for mature engines. Towards the end of aircraft life, asset owners are looking to get the most value from their engines. MTU off ers end-of-life asset management to ensure the best exit strategy for the asset. It also mitigates risk and generates more revenue for lessors through portable MRO services. ANYWHERE, ANYTIME TP Aerospace MARRYING ENGINEERING AND CREATIVITY MTU Maintenance Flightparts is a multi-disciplined aircraft compo- nent MRO service provider with fa- cilities located in Xiame and Xi’an in China and Porto Alegre in Brazil. It special- ises in landing gear, turboprop engines, aircraft and engine accessories and avionics. The landing gear facil- ity in Xiamen off ers full comprehensive MRO services for the landing gears installed on the Airbus, ATR, and Boeing aircraft, as well as many others. Flightparts Aerostructures in Xi’an supports a wide range of regional, wide body and narrow body aircraft providing both shop overhaul and on- wing repair services for composite and metallic structures and possess various capabilities including but not limited to; autoclave assist and out-of-autoclave repair capability. With a confi dence in both the future growth of the regional aviation maintenance market and the competitive advantages of the former TAP facility in Porto Alegre, Flightparts acquired the full capabilities previously held by VARIG, VEM and latest TAP ME in the Brazilian city. Over the past several months, Flightparts has been working diligently to refi ne and upgrade the shops and equipment as well as update the capabilities to refl ect the current fl eets operating in the region. Flightparts has taken a unique approach to integrating the new facility into its larger maintenance portfolio by maintaining the strong technical history of the company while establishing a leadership team with a strong entrepreneurial culture, while also leveraging effi ciencies from Flightparts’ established corporate structure. UNIQUE APPROACH Flightparts GroupTrim Size 205x275mm WxH Bleed Size 215x285mm WxH MRO PARTNER:OFFICIAL AIRLINE:SPACE PARTNER: SUMMIT SPONSOR:DESTINATION & CULTURAL PARTNER: FOCUS PROGRAMME SPONSORS: HOSTED BY: www.aerospacesummit.com Organised by:February 2020 · AVIATION BUSINESS 22 www.aviationbusinessme.com SHOW PREVIEW EXPLORING THE INTERIOR With airlines in the Middle East investing heavily in aircraft interiors to gain a competitive advantage, AIME is the ideal platform to discover new innovations and trends shaping the market. bespoke seats for its 25 Boeing 787-9 and 25 Airbus 350-900 aircraft. While Oman Air upgraded the light- ing on-board and Lebanon’s carrier, Middle East Airlines, replaced their cabin seating. The 2019 edition of AIME attracted airline buying representa- tives of 71 airlines from the Middle East and Europe, and AIME 2020 is predicted to have even more. The event provides a platform for exhibitors to interact with airline buy- ers and decision makers in a dedicated environment. Caryn McConnachie, aerospace direc- tor of show organiser Tarsus F&E LLC Middle East, says that AIME is the Middle East’s only dedicated aircraft interiors event: “As such, it provides the ideal platform for airline interiors buyers and suppliers to really connect and do business. Year after year the feedback that we receive tells us that the market sees AIME as an unmissable event.” Airlines in the Middle East region are actively looking for innovative interiors designs and technology, as passenger expectations continue to drive the industry. When Aircraft Interiors Middle East (AIME) takes place at Dubai World Trade Centre this month, the region’s leading airlines will be using the event to research available technologies for their growing fl eets. In a recent market report, consultancy fi rm Oliver Wyman anticipates 11,600 new aircraft will be delivered over the next decade – mostly narrow-bodied. The same report shows the Middle East, with 4.7% growth, as the third fastest grow- ing market for new aircraft deliv- eries, confi rmed by Boeing’s prediction that nearly 2,900 new aircraft will need to be delivered to the Middle East in the next 20 years to accom- modate growth. In the last couple of years, many Middle East-based carriers have been making retrofi tted interior investments. Etihad and Emirates have retrofi tted their cabins, collectively cost- ing close to half-a-billion dollars. Early last year, Turkish Airlines commissioned $40.2 BILLION AIRCRAFT INTERIORS INDUSTRY VALUE BY 2025THE GATEWAY TO EXPO The UAE’s ambitions to become the world’s aviation capital rely in part on the investment and innovation at the MBR Aerospace Hub. CEO Tahnoon Saif details the ecosystem he is helping to build to support the private jet market and serve as the golden gateway to the Middle East when Expo launches later this year. MBR AEROSPACE HUB 23 www.aviationbusinessme.com February 2020 · AVIATION BUSINESSMBR AEROSPACE HUB February 2020 · AVIATION BUSINESS 24 www.aviationbusinessme.com The road leading to and from the VIP Terminal will be lined with luxury outlets to cater for high-net-worth individuals and business men and women. Dubai International and Abu Dhabi International rightly demand the limelight when it comes to aviation in the Middle East. As the prime portals be- tween Europe and Asia, the airports are known around the world for their forward-thinking approach and bold as- pirations. But there is much more to the UAE’s aspirations to become the global capital for aviation than its major com- mercial international airports. Nestled alongside Dubai’s Al Maktoum International is seven square kilometres of space bristling with facili- ties supporting private – and to a degree, commercial – aviation. The Mohammed bin Rashid (MBR) Aerospace Hub is the Where revenues are concerned, it is more about the entire ecosystem benefitting rather than a simple increase in direct sales for the Hub. We are expecting growth to be double digit during Expo” beating heart in Dubai South, which, when completed, will become an eco- nomic zone supporting aviation and logistics. The International Air Transport Association (IATA) estimates that if investment in aviation continues to be prioritised in the UAE, the sector could generate an extra $80 billion in GDP for the national economy by 2037. It is unsurprising then, that MBR Aerospace Hub is a sharp focus for Dubai and the wider UAE economy. The Hub’s mission, says CEO Tahnoon Saif, is to cater for private jets and aircraft maintenance, although its facilities stretch much further and cover everything from training and catering to retail and corporate offi ces. MBR AEROSPACE HUB 25February 2020 · AVIATION BUSINESS www.aviationbusinessme.com “Private jets usually come as a second priority at any busy airport. This is de- spite the time of the private jet owner being the most critical of anyone’s. The reason they buy a private aircraft is to save time. To me, this means we need to put private jets and their owners at the very top of our priority list. Even when it comes to serving them in terms of fuel, catering, aircraft parking, pilots and hangars, we are focused on the private jet sector.” Essentially, the Hub is designed to be a one-stop-shop for private jets. A critical part of this concept is maintenance sup- port, which the Hub is able to offer to both private and commercial aircraft. On- site, MBR Aerospace Hub has various hangars and MRO providers, including the likes of Lufthansa Technik, alongside a new paint shop under construction. Such are the facilities available that the Hub is also attracting interest from airlines looking to relocate their main- tenance activities. There are also three maintenance centres for private jets planned for the next two years which will cater for various aircraft types. Other supportive services include a sustainable fuel farm and line maintenance units. The size of the Hub’s airside projects demands a substantial landside infra- structure. The crown jewel of which is the VIP Terminal for private jets and their passengers. Education also forms an important part of the MBR Aerospace Hub machine. Its aim is to provide air- side companies with skilled individuals, including cabin crew and engineers. Add to that hotels and retail outlets and you have an entire ecosystem supporting the aviation industry. Saif notes that the Hub is almost 35% complete, so there is a long way to go before it is fully operational. But initial signs are promising. Saif comments: “We are expecting by 2030 to have the whole area almost completed. There are miss- ing components, for example, we plan to have a heliport to satisfy demand among VIPs, something different to anywhere else. We are also looking at helicopter maintenance, shuttle services, local com- muting, all of these elements.” Tahnoon Saif, CEO, MBR Aerospace Hub. Hangars have been built to accomodate all types of aircraft and supporting activities. The VIP Terminal will be the fi rst thing many Expo visitors will see when arriving in Dubai.MBR AEROSPACE HUB February 2020 · AVIATION BUSINESS 26 www.aviationbusinessme.com EXPO 2020: EYES ON DUBAI When dignitaries and business lead- ers from around the world descend on Dubai later this year for Expo 2020, MBR Aerospace Hub will be the gateway for the majority of private jet passengers. The pressure to perform and showcase the best the UAE has to offer in terms of aerospace will be felt by the Hub’s management. But Saif is confi dent that Expo will deliver a signifi cant boost for the Hub and the companies which have made it their home. “There are two areas where we are expecting an impact. There is the direct one, which is from VIP travellers like offi cial delegations and private jet own- ers. We are expecting a sharp growth in traffi c in the VIP Terminal. We are LOCAL PRIVATE JET MONOPOLY As part of its continuing move to achieve growth in private jet movements in Dubai, the Mohammed bin Rashid Aerospace Hub (MBR Aerospace Hub) is rapidly picking up its pace as a growth centre for the Middle East’s high-value industries. MBR Aerospace Hub reported that business aviation movements during the fi rst-half of last year posted a 26% increase compared to the same period in 2018. Located in Dubai South, MBR Aerospace Hub creates value to the aerospace and business aviation industries through a wide range of soft and hard infrastructure, which enables private jets to take advantage of Dubai as a destination and strategic location to connect to key markets across the region and the world. The aerospace hub has built a community that services business travellers and private jet owners creating an experience designed to exceed international standards. Private jet operators are benefi tting from customised services including a dedicated fuel service with a 20-minute response time, high-quality catering services, aircraft parking and maintenance facilities. The business aviation facilities within MBR Aerospace Hub currently handle more than 70% of private jet movements in Dubai, which is forecasted to reach 100% within the next three years. In line with this, business aviation partners confi rmed to develop six aircraft hangars to be operational in 2021. Tahnoon Saif, CEO, MBR Aerospace Hub, says: “These are truly exciting times for Dubai’s business aviation community. The confi dent outlook has prompted us to develop a roadmap to meet demand. MBR Aerospace Hub continues its commitment to create value for the industry and meet the expectations of the business aviation community.” With a total investment of AED 2.5 billion in the infrastructure and facilities out of the AED 17 billion planned initiatives in the seven square kilometer area, MBR Aerospace Hub continuously develops other aspects of the aerospace sector including the maintenance, repair and overhaul (MRO) support facilities, an education and training cluster, and offi ce and retail spaces. The MRO facilities are designed to power up the aerospace sector’s activities through a range of services in Al Maktoum International Airport and the Free Zone, which ranges from serviced airside amd landside plots, taxiways and apron parking, large industrial units, small workshops and build-to-suit facilities. This year, the MRO unit is set to launch the line- maintenance units and a helicopter maintenance cluster. To meet the growing demand for aviation professionals and skilled labour, the aerospace hub has established a dedicated cluster for education and training institutions for pilots, professionals and maintenance technicians. Located next to the Emirates Flight Training Academy, the education and training facility is designed to attract simulator centres, academic universities, cabin crew training, and vocational training institutions for aviation and logistics. To build a conducive business environment for local and international aviation players, a business centre composed of offi ce and retail spaces has been designed for aircraft management, airlines services, fi nancial, legal, insurance and other activities to set up their headquarters or branches. Currently, few corporations in the region use private jets; it is mainly high-net-worth individuals.MBR AEROSPACE HUB 27February 2020 · AVIATION BUSINESS www.aviationbusinessme.com working with authorities to make sure there is a seamless experience for VIPs during the event and their expectations are met. When arriving here, we will use technology to make processing easy for VIPs. The secondary impact on us will be the opportunities created by any- one coming through the VIP Terminal seeing what the Hub offers. They are all potential investors.” The growth in revenues for MBR Aerospace Hub will be driven primarily by the increase in aircraft landing at the site. With each additional plane comes more sales in terms of catering, fuel and other supporting services. Hence, Saif expects Expo to signifi cantly benefi t the Hub’s customers too, who will anticipate more sales. “Where revenues are concerned, it is more about the entire ecosystem benefi t- ting rather than a simple increase in di- rect sales for the Hub. [MBR Aerospace Hub] is expecting growth to be double digit during the Expo. We, as a country, will benefi t from [Expo]. We expect most people coming here for Expo to stay in the UAE and the Middle East for a while and to travel around using private jets. We have fi ve operators here. It’s very important for us to showcase this facility, it’s a very impressive facility, especially the VIP Terminal, and of course [our operators’] customers will be extremely satisfi ed landing here and entering the region through our door.” Even with the Hub only a third com- plete, Saif has no doubts about its ability to absorb the additional demand. He is confi dent in its infrastructure and opera- tional capabilities and believes the work done over the last three years at the site has set the Hub up to be able to meet expectations when Expo dawns. AVIATION CAPITAL OF THE WORLD MBR Aerospace Hub has an important role to play in helping the UAE to reach its ambition of becoming the aviation capital of the world. As a bubbling caul- dron of ideas, innovation and ingenuity, the space serves most elements of the industry, even if it is on an indirect basis. Speaking on the condition of the UAE’s aviation market, Saif says the introduction of two new airlines last year and the ongoing successes of Dxb International, Emirates and Etihad show that the country is punching above its weight on the world stage. The positive commercial outlook for the home aviation industry is a bonus for the Hub, which will pick up business from increased maintenance activities and demand for pilots and technicians. Saif cedes that the private aviation mar- ket in the region is not as fast as other areas in the world. In the Middle East, relatively few corporations use business jets compared to European and US mar- kets. But Saif says that as more interna- tional business takes place between Gulf countries and Asia and Europe, more corporations will begin to see the ben- efi ts of using private jets as part of their company strategy. “I think with companies going beyond their boundaries, even local companies targeting Middle Eastern countries, there will be a need to have people mov- ing very quickly. Up until now, it has been quite tough for the region’s [private jet market] because the commercial airlines are so strong in providing con- nections.” Despite the lethargic private aviation sector in the Middle East, Saif does not expect to begin engaging commercial airlines apart from on maintenance ac- tivities. Instead he plans to position the Hub and its infrastructure to capitalise on business aviation when it fi nally takes off in the Gulf. Nevertheless, the clients MBR Aerospace Hub has on-site appear to be thriving already. Lufthansa Technik and GE, for example, have already ex- tended their premises within one year of being at the Hub. Saif regards aviation as “absolutely key” to the UAE, and with entrepre- neurs and innovators exploring the industr y, he feels MBR Aerospace Hub has an important support role. As an authority that offers licensing and visa processing on top of all its other ser vices, the Hub has placed itself as ‘the ultimate one-stop-shop’ for private aviation. It is not surprising that this generalist yet focused approach has attracted some of the largest names in the market. The Hub cannot on its own turn the tide for the Middle East’s private aviation segment, but it is cer- tainly laying the foundations for a sec- tor which could eventually make itself a vital part of the region’s aerospace ecosystem. Business aviation in the Middle East will grow as international trade partnerships expand.February 2020 · AVIATION BUSINESS 28 www.aviationbusinessme.com DISTRIBUTION MODERNISING DISTRIBUTION Airlines must begin operating more like retail businesses and sell products on a value basis rather than a commodity basis. That is according to the International Air Transport Association’s (IATA) director of industry distribution programmes, Yanik Hoyles, who suggests at IATA’s Global Media Day what tools companies can use to improve the cus- tomer experience and ticket sales. Based on that they will have another screen that has all the diff erent fares. These things work well in a commod- itised environment. But what happens when the customer wants to know the seat pitch and so on? Too often they have got to go to another website or the information is not available all together. Look at the big picture, things are changing really fast. Look at technology, no one will deny that the speed at which technology is evolving is accelerating all the time. The environment is also driving changes in customer behaviour. There are lots of things happening very fast but at the end of the day, you have to be able to adapt to the way customers are chang- ing. The customer will say: ‘If you want What is the problem today? If you are a customer, when you shop for travel, it is clunky. Statistics say that you have to go through around 25 websites to get the right kind of information. That is because depending on where you shop for travel, the information available is very inconsistent. Look at it from the travel agents’ side too. They say that to serve our customers, too often, we do not have the right information to hand and from a productivity point- of-view it is very clunky. There is also a lot of information on products available on the airlines’ websites that is not available on travel agents’ websites. There is a challenge. On the airline side, everyone has the same problem. Airlines today, from a technical point-of-view, do not have the capability to demonstrate the value of what they have to off er, particularly when selling through travel agents. They are commoditised. They have not got that agility to push out through the travel agent channel. So this creates a gap between the two channels and the consequence of course is that everyone has a bad experience and the worst of course if for the end-user. When a travel agent has a request from a customer to go from Geneva to New York, it starts with an availability request. What booking prices are open? IATA’s Yanik Hoyles addresses industry media on the topic of NDCs.29 February 2020 · AVIATION BUSINESS www.aviationbusinessme.com DISTRIBUTION More and more you will fi nd that air- lines, when they think about value to the customer, they are going to think also about payment being part of the product. Because a smooth experience means people will advise well. Be where I am as a customer, if I shop in this way with my mobile, I open up WeChat, then you have got to be able to pay with WeChat. Do not tell me how to do business oth- erwise I will go away. Another example is a start-up called Airlines Technology and is embracing retail technology. It has built an aggre- gator that takes content from various airlines and compares all the rich con- tent. It is not just a fl ight with a price. You are given diff erent components, and based on that, you can make whatever decision you want based on what you value. Another example is Business Travel. TripActions and United Airlines, they said they wanted to enter the world of business travel looking through the lens of the customer and making it customer friendly. And they created the fi rst bundles for corporates and for business travel. All this, this is real. And this is driven by NDC (New Distribution Capability). NDC is all about helping solve the prob- lem of the gap. Airlines and their web- sites are much more agile in how they can make their products available to customers. But through the travel agent channel, it is not really designed to push anything more than just availability. This gap has grown quite signifi cantly, which leads to frustration. On a cus- tomer side, it is inconsistent and even in business they fi nd it very frustrating. So that is the problem, and the NDC standard is there to help close that gap. So the NDC standard is based on one technology for communication of data between airlines and travel agents. That is all this is about, using one technology. And by that way, the airlines can push out to travel agents similar features and to engage with me and sell something, you have to be transparent, demonstrate good value and be where I am’. What do I mean by ‘be where I am’? Most sales take place face-to-face on a desktop. But more and more it is about mobiles and chatbots. Google is fantastic at getting loads of information in a very short amount of time but when you shop for a trip on your mobile, what people want is only the relevant off ers. So it is really important that in this world, our industry has the ability and the agility to adapt to customer behaviours and expectations, particularly when it comes to distribution and making your products available to consumers. The good news is that things are starting to change already. [One example is] Click Travel, a UK travel agent. Looking for a fl ight from Geneva to Heathrow, for example, there is rich information provided. It off ers an upsell, you might want to pay more to get more. Or if you see no value and you want to pay for less then you have the choice. This is a concrete example of moving from commodity-based sell- ing to value-based selling, what we call retailing. Ultimately, it puts control in the hands of the customer. Another example is Caravelo, which delivers chatbots and has worked with Finnair to embrace retailing. In China, a very, very fast moving market, all the way from selecting the off er, confi rming the order, passenger information, and paying with WeChat Pay. Payment is more and more important in this world of retailing. How many of you, when you have been shopping on a website, when you get to the payment page, fi nd it complicated, do not have your log-in details or do not have the right kind of payment method? Be where I am as a customer, if I shop in this way with my mobile, I open up WeChat, then you have got to be able to pay with WeChat. Do not tell me how to do business otherwise I will go away” Caravelo has worked successfully with airlines such as Finnair. Chatbots are being used more widely by airlines.Next >