AN ITP MEDIA GROUP PUBLIC ATION What will the passenger journey look like in a post-pandemic aviation industry and how can operators get a head start? Download the free Aviation Business app and be the fi rst to read the latest issue on your mobile devices. SIR TIM CLARK FIVE THINGS WE LEARNT AT IATM VIRTUAL NEWS UPDATE | FACTS & FIGURES | IN-DEPTH ANALYSIS | TRADE COLUMNS ELECTRIC DREAMS Is the drive for green aviation being jeopardised? hll hlk l kd THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | VOLUME 19 ISSUE 07 JULY 2020 AVIATION PSYCHOLOGY The impact of job insecurity on the mental health of pilots and crew +971 4 887 1514 • Full Motion Cabin Simulators with integrated cockpit and cabin visuals - Commercial (A318, A319, A320, A321, A300, A310, A330, A340, B737, B777) • Full Motion Cabin Simulators with integrated cockpit and cabin visuals - Corporate (Gulfstream, Falcon, Global, Challenger, Legacy, Hawker) • Door Simulators with VR (A350, B787) • Water survival Pool with Environmental • Survival Simulators with Environmental (Jungle, Polar) • Real fi re fi ghting Simulator • Hypoxia Simulator • VIP Service training Stock Store DYNAMIC ADVANCED TRAINING Mohammed bin Rashid Aerospace Hub, Dubai South, U.A.E. info@dynamic-advanced.com dynamic-advanced.com Unique - Independent - One-Stop-Shop Advanced T r aining a member of KHANSAHEB INVESTMENT We Entertain While We train Aviation SEP and Service Training Academy3 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com CONTENTS July 2020 Volume 19 Issue 07 AN ITP MEDIA GROUP PUBLIC ATION What will the passenger journey look like in a post-pandemic aviation industry and how can operators get a head start? Download the free Aviation Business app and be the fi rst to read the latest issue on your mobile devices. SIR TTTTTTTT MMMMMMMMMMMMMMMMMMMMMMMAARRKKKKKKKKKKKTIM CLARK FIVE THINGS WE LLLLLTTTTLEARNT AT VVVIIVVVVVVVVVVVATM VIRUAL NEWS UPDATENEWS UPDATE || FACTS & FIGURESFACTS & FIGURES || IN-DEPTH ANALYSISIN-DEPTH ANALYSIS || TRADE COLUMNSTRADE COLUMNS ELECTRIC DREAMS Is the drive for green aviation being jeopardised? hll hlk l kd THE MAGAZINE FOR AVIATION EXECUTIVES IN THE MIDDLE EAST | VOLUME 19 ISSUE 07 JULY 2020 AVIATION PSYCHOLOGY The impact of job insecurity on the mental health of pilots and crew Etihad Airways overhauls cabins on nearly 100 of its passenger aircraft Qatar Airways to defer new aircraft orders by up to a decade IATA reveals Middle East’s top performing aviation training centre ICAO urges Middle East states to follow industry recovery guidelines Airbus’ biggest A320 customer going ahead with jet orders Long-haul airlines and super-connectors at risk of connection chaos Lufthansa’s entire A380 fl eet mothballed for two years 08 08 09 09 10 10 11 IN VIEW WORKFORCE REDUCTION Emirates lays off thousands of cabin crew and hundreds of pilots 14 SUPPLY AIRCRAFT PARTS The importance of sourcing from local suppliers during times of crisis 18 COVER THE NEW NORMAL A look at how air- ports and airlines are adjusting the passenger experi- ence according to new regulations and traveller demands THE FRONT 24 12 DIGITALISATION MOMENT The importance of getting on-board with digitalisationJuly 2020 · AVIATION BUSINESS CONTENTS 4 www.aviationbusinessme.com SUSTAINABILITY BIOSECURITY AIRPORT F&B Why new fuels could become a key component of future airline models Operators must adapt to passenger demands for contactless tech How the face of retail is changing in airports around the world 37 39 41 AVIATION PARTNERS EXPERT VIEW SIR TIM CLARK Five key things we learnt from Emirates’ president Sir Tim Clark during a recent interview at ATM Virtual EDUCATION AVIATION PSYCHOLOGY Leading aviation psychologists explain the impact of the Covid-19 job crisis on pilots and cabin crew 33 MARKET OUTLOOK ELECTRIFICATION How Covid-19 could be jeopardising the aviation industry’s push for a greener future 28 20 SUBMIT YOUR NOMINATIONS TODAY For sponsorship enquiries: Benjamin McGladdery | Sales Manager Tel: +971 4 444 3227 Email: benjamin.mcgladdery@itp.com Anthony Chandran | Table Sales Executive Tel: +971 4 444 3685 Email: anthony.chandran@itp.com #AVBAwards GOLD SPONSOR CATEGORY SPONSOR Daniel Fewtrell | Director of Awards & Marketing Tel: +971 4 444 3684 Email: daniel.fewtrell@itp.com For nomination enquiries: Joe Peskett | Editor Tel: +971 4 444 3305 Email: joseph.peskett@itp.com Advanced T r aining a member of KHANSAHEB INVESTMENT NEW CATEGORIES RELEASED Celebrating 14 years of acknowledging excellence within the aviation sector in the Middle East, Aviation Business is pleased to bring you the Aviation Business Awards 2020. The Awards this year will also recognise businesses and individuals that have shone through adversity during the Covid-19 crisis with the introduction of four new categories. For more information, visit www.aviationbusinessme.com/awards or contact one of our team today. For event enquiries: July 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 W hile all airlines have been hit hard by Covid-19, I was especially saddened to read last month that Royal Jordanian’s Q1 results had been badly impacted by the drop in travel demand. I inter- viewed the carrier’s CEO, Stefan Pichler, back in November, where he discussed with great excitement that his turna- round plan was on-track to deliver desired profitability. Of course, all that came crashing down when the pandemic hit and I imagine Mr Pichler is one of the more frustrated execu- tives in aviation right now. Similarly, Jazeera Airways’ chairman, Marwan Boodai, re- vealed that the airline, which has become one of the most successful in the region, has frozen growth plans despite achieving its best ever profits in 2019. It is a great shame that those companies that have worked hard to create profitable businesses in a sector known for its loss-making entities, have had their growth plans spoiled. Even the best business leaders in aviation are now hav- ing to go cap in hand to their governments and there is still a severe lack of certainty around the level of financial sup- port airlines can expect in the coming months. As Emirates president Sir Tim Clark alluded to in a recent interview, those companies which have already been bailed out are far from out of the woods. Travel demand, although improving, has a long way to go before it is back to a level that can sustain the current number of players in the market. It once again falls to governments to offer direct and indi- rect financial support where needed and to implement the International Civil Aviation Organization’s guidelines for the industry’s recovery. This unfortunately means more lobbying and adapting to a ‘new normal’. There is no doubting that the next six months will be tough, but businesses in aviation that have already come this far have already shown they have it in them to survive. Airlines have so far done all that is required of them; the ball is now back with the governments. The ball is back with the governments of the world 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 SENIOR IMAGE EDITOR EMMALYN ROBLES PRODUCTION & DISTRIBUTION Group Production & Distribution Director Kyle Smith Production Manager Basel Al Kassem Production Coordinator Manoj Mahadevan CIRCULATION DISTRIBUTION & WAREHOUSE MANAGER Praveen Nair 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-LLCFOR SPONSORSHIP OPPORTUNITIES: Benjamin McGladdery, Sales Manager Tel: +971 4 444 3227 Email: benjamin.mcgladdery@itp.com TUNE IN TO THE NEXT SAM CHUI AVIATION BUSINESS PODCAST RADAR July 2020 · AVIATION BUSINESS 8 www.aviationbusinessme.com Strata’s new facility to support B777X programme Local manufacturer completes 8,500 square metre facility in Al Ain Etihad Aviation’s engineering depart- ment is conducting a massive cabin refurb project to refresh 96 of the airline’s pas- senger jets while many remain grounded because of ongoing international travel restrictions. Etihad Engineering, the MRO arm of Etihad Aviation Group, is carrying out cabin renovations, interior detailing, seat repairs and a full sweep of the infl ight entertainment system. “The cabin refurbishment project is our most extensive collaboration with Etihad Airways to date,” said Frederic Dupont, VP technical sales and customer service, Etihad Engineering. Etihad Engineering has expanded its operations during the Covid-19 pandemic Etihad Airways overhauls cabins on nearly 100 of its passenger aircraft MRO Etihad Engineering is ramping up its MRO work as airlines bring forward maintenance checks on grounded planes as third-party customers have brought forward their maintenance checks while their aircraft sat idle on the tarmac. The current projects involve the delivery of cabin uplift, passenger to freighter con- version, longeron modifi cation, heavy maintenance, major structural modifi ca- tion, parking solutions, painting and deep cleaning of aircraft for both Etihad Air- ways and third-party airline customers. Qatar Airways will defer Airbus and Boeing deliveries by up to 10 years while air traffi c remains low because of the Covid-19 pandemic, the company’s CEO said last month. While the airline could bring the deliveries forward when de- mand increases, CEO Akbar Al Baker said that Qatar Airways would review its business relationship with Airbus and Boeing if the manufacturers don’t agree to the carrier’s plans. “Quite a lot of [orders] will be deferred, we’ve already notifi ed Boeing and Airbus that we will not be taking any aeroplanes this year or next year and all the other aircraft that we have on order that was supposed to be delivered to us within the next two or three years will now be pushed back to as long as eight to 10 years,” Mr Al Qatar Airways to defer new aircraft orders by up to a decade DELIVERIES Qatar Airways is pushing Airbus and Boeing deliveries due for the next two years back by between eight and 10 years Baker told the UK’s Sky News. Entering the coronavirus crisis, Qatar Airways had 200 aircraft on order, includ- ing 50 A321 neos and 60 777Xs. It is un- clear how many of each will be deferred. Qatar Airways also plans to swap 30 Boe- ing 737 Max 8’s it had on order for a differ- ent aircraft model, in what is another blow to the US planemaker’s troubled plane. The 737 Max’s were being bought with the intention of being operated by Air Italy. “While the Covid-19 pandemic has taken a toll on the aviation sector at large, we have been doing our best to fi nd the opportunity amidst the crisis,” said Dupont. “We have taken advantage of the grounding period and used it to carry out maintenance services to ensure the entire fl eet is operating at its optimal and will be uninterrupted by maintenance re- quirements as services return.” Etihad Engineering has experienced an increase in parking requests from third-party customers, with the majority of parking slots currently occupied at its facilities. A number of airline operators have decided to park their aircraft in Abu Dhabi while they remain grounded from passenger operations. Mr Al Baker said the airline no longer re- quired the Max’s after Air Italy, of which Qatar Airways owned a 49% stake, went into liquidation in February. Mr Al Baker said he did not know known when passen- ger levels would return to pre-crisis levels but said it could be “anywhere close in the next 24 months”. Like most airlines, Qatar Airways is cutting jobs and salaries. The airline is set to lay off around 9,200 of its 46,000 employees, including pilots.RADAR 9 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com Airlines in for harsh winter, says IATA Airlines in the Northern Hemisphere are most vulnerable to risk in the winter season Aviation training provider Blue Ocean Academy has received the title of ‘2020 Re- gional Top Performing ATC (Accredited Training Centre)’ from the International Air Transport Association (IATA). The award was bestowed for Blue Ocean’s performance in delivering IATA training programmes in Africa and the Middle East in 2019. In the last three examinations con- ducted by IATA, four students of Blue Ocean Academy topped the results in the UAE. Thirteen students of Blue Ocean also passed the examinations with distinction. The academy was also shortlisted for 2019 Aviation Business Awards as the ‘Training Provider of the Year’. Apart from the recognition for its avia- tion training, Blue Ocean Academy has re- ceived a number of awards, including the Top 10 Six Sigma Training Institutes in the Middle East and Asia, Excellence in Train- ing and Development, Outstanding Contri- IATA reveals Middle East’s top perform- ing aviation training centre for 2020 TRAINING Blue Ocean Academy receives ‘2020 Regional Top Performing Accredited Training Centre’ title from IATA bution to Global Learning, Global Train- ing and Development Leadership and the Best Training Provider in Logistics & Sup- ply Chain. The IATA-Blue Ocean alliance has contributed a large number of trained professionals to the aviation industry. Dr Sathya Menon, executive director at Blue Ocean Academy, said: “Being an accredited training centre of IATA in the Middle East, Blue Ocean has been able to raise the bar in aviation training with matchless quality and commitment. Our IATA certifi ed trainers have succeeded in enabling the students to come out of the Aviation bodies representing various markets and parts of the industry have jointly urged governments in the Middle East to implement a common set of guidelines designed to assist the recovery of the airline industry in the region. The International Air Transport Association (IATA) and Airports Council International (ACI) Asia-Pacifi c have joined the International Civil Aviation Organization Middle East (ICAO MID) in urging the governments implement guidelines set out by ICAO. ICAO’s framework proposes a phased approach to restarting aviation and recommends a set ICAO urges all Middle East states to follow latest set of aviation industry recovery guidelines INDUSTRY Sticking to a common set of guidelines will aid a smoother recovery and ensure greater passenger confi dence, say industry bodies examinations with fl ying colours. This es- teemed title is a great recognition of our ef- forts and a motivation.” Abdul Azeez, managing director at Blue Ocean Academy, added: “This recognition is a great honour and stands testimony to our dedication in contributing to the sus- tainability of the aviation sector. The pro- fessionals trained from Blue Ocean Acad- emy are equipped with knowledge of the best practices, international standards and safety measures thereby upholding the mis- sion of IATA ‘to represent, lead and serve the airline industry.” of measures designed to mitigate the risk of transmitting the virus. “This is a ‘living guidance’ which will be continuously updated based on the latest medical and operational advice and risk assessments as the world starts to reconnect,” said ICAO’s acting regional director for the Middle East, Mohamed Smaoui. IATA’s Middle East regional vice president, Muhammad Albakri, said that the guidance recognises that social distancing is not possible on an aircraft and so supports face coverings instead. “And it recommends contact tracing which should give governments the confi dence to open borders without quarantine measures. Local deviations and exceptions will damage public confi dence and make it harder to operate effectively slowing down the industry restart.” Demand for air travel in the Middle East is forecast to fall 56% in 2020 year- on-year and airlines in the region are expected to post a net loss of $4.8 billion.Next >