< PreviousRADAR July 2020 · AVIATION BUSINESS 10 www.aviationbusinessme.com Volga Dnepr lands two Ilyushin II-76s Carrier transports mobile ICU units to the Caribbean Airbus’ largest A320 customer, Indigo, is to proceed with its aircraft orders and fl eet plans despite the severe economic impact that the coronavirus crisis has had on the Indian airline and its peers. Chief execu- tive Ronojoy Dutta said on an investors call that IndiGo still plans to replace its entire fl eet of 120 jets for newer, more effi cient A320neo’s. “Almost all or close to all” of those air- craft will be replaced by new jets, Dutta said, after IndiGo reported its fourth-quar- ter earnings. He added: “We are in active discussions with Airbus -- we will take a large number… It will all depend on the revenue picture and the pricing we get and Airbus’ biggest A320 customer, IndiGo, going ahead with jet orders ORDERS IndiGo is one of a handful or airlines going ahead with growth plans after the industry was struck down by Covid-19 so forth, but we will take a large number.” In October, IndiGo placed one of the largest-ever Airbus orders for a single air- line operator. It signed a fi rm order for 300 A320neos, comprised of a mix of A320s, A321s and A321XLR aircraft. The deal took IndiGo’s total number of A320neo Use-it-or-lose-it airports slot rules threaten to break connection services and dampen the recovery of long-haul operators and airlines that rely heav- ily on connections. That is the warning from the International Air Transport Association (IATA), which is urging air- ports to extend the suspension of 80:20 slot rules into November when the win- ter schedule starts. In response to the Covid-19 crisis air- ports around the world have suspended rules dictating that airlines must use at least 80% of their scheduled take-off and landing slots in order to keep them. Airlines face a long recovery period and despite domestic fl ights beginning to resume, international services are still very limited, which threatens to cost Long-haul airlines and super-connectors at risk of connection chaos AIRPORT SLOTS New booking habits make it diffi cult for airlines to plan schedules which threat- ens operators reliant on connections long-haul operators their unused slots. Operators will continue to face weak travel demand, low visibility on bookings and losses well into the winter season, said Mr Pearce. 41% of passengers are currently booking tickets an average of just three days before fl ights, compared to 18% in 2019, making it very dif- fi cult for airlines to plan schedules and sell connections. Brian Pearce, IATA’s chief econo- mist, said that the loss of slots could break long-haul connections and poses a risk to the recovery of airlines which rely on connections. “Long haul travel will be the last to recover,” he said. “We need to see further aircraft orders to 730. IndiGo is one of just a handful of airlines to be ploughing ahead with pre-Covid-19 growth plans. The CEO of European low-cost carrier Wizz Air re- vealed last month that the airline is in fact expanding its original plans to launch in the Middle East market. progress on containing the coronavirus for countries far apart to have the con- fi dence to have inbound travellers from distant countries with the confi dence that they’re not importing Covid-19.” IATA does not expect global long- haul travel to return to pre-crisis levels until 2023.RADAR 11 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com Emirates’ CEO, HH Sheikh Ahmed bin Saeed Al Maktoum, has hailed Dubai’s newset of air travel protocols unveiled last month, which he believes will help the UAE’s national carriers to reinforce their position in the global airline market. Under the directives revealed by the Su- preme Committee of Crisis and Disaster Management, residents and citizens have been able to return to Dubai and visitors and tourists able to travel freely to the emirate. Airlines in the UAE, including Emir- ates and fl ydubai, suspended fl ights at the end of March as part of government efforts to curb the spread of Covid-19. Sheikh Ahmed bin Saeed said the new protocols will strengthen the economy by boosting Dubai’s tourism and travel sector. “The [new protocols] come at a time Emirates CEO: UAE carriers to boost market position now Dubai is open OPERATORS Dubai is now open to tourists as part of a new set of air travel protocols designed to boost the emirate’s travel sector when the world is preparing to resume economic activities across sectors. Travel and tourism are among the key indus- tries at the forefront of spurring global economic recovery. Our airports and na- tional carriers are resuming larger scale operations by stringently implementing globally benchmarked precautionary and preventive measures that protect the health and safety of travellers.” He added: “Our country has closely Europe’s largest carrier, Lufthansa, is set to mothball its remaining fl eet of Airbus A380 aircraft for at least two years after it retired 14 of its superjumbos amid the coronavirus pandemic. Lufthansa’s remaining A380 fl eet has been relocated to Munich where they will wait to fl y again until 2022, providing demand picks up on popular routes, such as New York and Chicago. But the chances of Lufthansa operating the A380 from its Frankfurt base again are “close to zero”, according to Klaus Froese, CEO of the airline’s largest hub. “In Munich we will have to see. Lufthansa’s entire A380 fl eet mothballed for two years FLEET Lufthansa has already ditched 10 A340s and fi ve Boeing 747-400s as its fl eet shrinks to just 100 aircraft followed the directives of the Internation- al Air Transport Association (IATA) and the International Civil Aviation Organi- sation (ICAO), setting a global example in safeguarding the health and wellbeing of passengers and ensuring that fl ights operate smoothly.” HH Sheikh Ahmed said that both of Dubai’s airlines have developed a set of protocols to protect passengers and both ground staff and aircrew. Planning is very diffi cult in these times,” Mr Froese said in an interview last month. Airbus’ A380 has been dropped from fl eets around the globe since the Covid-19 pandemic ruined travel demand. The already expensive-to-run superjumbo was already being phased out but its demise has been accelerated with the likes of Air France retiring its A380s early. Emirates, the world’s largest A380 operator with around 115 of the jets, is said to be reviewing its remaining orders for the aircraft and planning to retire a large portion of its current double-decker fl eet. Mr Froese said that while Lufthansa plans to use A380s again in the future, the aircraft will only return to operations if they have a role to play. “This is no longer a question of prestige, that’s a thing of the past,” he said. Lufthansa is due to take delivery of its fi rst Boeing 777X’s from Q3 next year. The carrier has already permanently withdrawn 10 A340s and fi ve Boeing 747- 400s as part of its cost cutting measures, which include reduce its entire fl eet down to around 100 planes in total. Autonomous powerchair employed kerbside Japanese airport becomes fi rst airport to use WHILL in anti-virus measures July 2020 · AVIATION BUSINESS 12 www.aviationbusinessme.com MOMENT Tanguy Morel, co-founder of aerospace tech supplier Moment, writes how a new approach to digitalisation can answer passengers’ needs of communication and security on-board commercial aircraft. with connected travellers looking for a personalised travel experience before, during and after the journey, providing onboard communication is now required. The availability of entertainment and communications solutions has, for some, become an important element in the decision-making process when book- ing a fl ight. Besides, the deployment of digital platform supports airlines’ customer relationship strategy by help- ing to monitor and analyse passengers’ needs, a signifi cant element in the search for profi tability. Yet, entertainment and communica- tions solutions do not have to be costly, alternative solutions exist. Off ering access to numerous entertainment services built like modules with high- quality content, these solutions help airlines to both create a rich and digital Commercial aviation has long been considered a fast, safe and modern means of travel. However, unchanged passenger routes, a reduced onboard service, combined with a lack of onboard innovation have pushed passengers to look at alternative means of transport. In a world of connected devices and all-digital, passengers are now ultra-connected and wish to live the same experience in terms of communication and services, whether it is at home or in a aircraft, as they become essentials for passenger comfort. A trend that should not be underestimated considering the increasing importance of the travel experience when choosing an airline, and even more in the Covid-19 context. The digital transformation has led airlines to develop a new digital envi- ronment allowing them to respond to the issues of productivity and competi- tiveness, in particular by off ering new innovative services during the fl ight. The airline industry has had to adapt in order to attract always more connected passengers by working on providing communications services that respond to passengers’ needs while on-board, and accessible from their own devices, improving the overall on-board passen- ger experience and making it unique. While some airlines looked at connec- tivity technology, there are still many brakes to the implementation of these solutions. Coverage restraints, reliability, costly equipment and lengthy installa- tion are a deterrent for many airlines searching for fl exible solutions. However, ON-BOARD WITH DIGITALISATION13 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com DIGITALISATION their passengers during the fl ight and ensure an enhanced onboard experience. Covid-19 has changed focus with safety and hygiene becoming crucial elements of a new normal. Technological partners have to support airlines and help them set up best practices for the future. As all transports, airlines will most likely have to bring a new dimension to passenger experience that will include security and safety in addition to entertainment and communication services. The deploy- ment of a digital platform responding to passenger expectations while helping the crew manage safety onboard will be a game-changer. The fl exibility and agility of digital platforms enable contactless services, respecting social distancing measures. From their seat and from their own devices, passengers have the ability to choose personalised services, order or communicate. Digital media content made available to passengers on their devices, onboard and in the lounge, avoid the sharing of hard copy newspapers and magazines, limiting the spread of virus. Besides, the digitalisation of passenger announcements and the availability of safety procedures on customer devices, enables to give the right message to the right passenger, at the right moment. Finally, the management of passengers fl ow enables to signifi cantly cut queue- ing times with contactless payment via an integrated payment system for shopping. Going forward, IoT technol- ogy is also an opportunity to accelerate business, proposing new perspectives with advanced functionalities available from the touchpoint, allowing passen- gers to control elements such as light, and temperature. The role of innovative partners is more than ever important to provide airlines a new global approach to passenger ex- perience that includes entertainment, e-commerce, health and safety. This enables airlines to position infl ight ex- perience at the heart of the customer relation and to transform it into a per- formance and customer loyalty factor for air transport, to deliver new criti- cal functions and value-added services while providing optimal support in this new normal. experience and diversify their on-board means of communication. An important detail for airlines who want to attract new generations of passengers by en- suring a truly memorable experience in the cabin. Proposed as a white label, these digital solutions enable airline to increase brand awareness, as well as create additional revenues while realising operational effi ciencies. Based on a Wireless In-Flight Entertainment system that enables pas- Tanguy Morel, co-founder of aerospace tech supplier Moment sengers to connect to a local cloud from their personal devices (smartphones, tablets, laptop) via a digital platform, digital solutions provide multiple ways to ensure communication between passen- gers and crew relying on a broad range of personalised services, including chat with staff , snacking orders, hospitality reservations, shopping functionalities with digital catalogue and products of interest based on previous searches. Shopping features can be also developed and personalised by combining them with loyalty programs and vouchers to strengthen interaction. This technology has the advantage of combining on one same portal all the information related to the passengers’ travel and inform them instantly about their destinations and airlines updates. It proposes also to collect passenger opin- ions about their fl ight, allowing the crew to take note and to react accordingly. The deployment of a digital portal enhances passenger communication with airlines and their crew, enabling them to upgrade their onboard services, improve customer relations and engage passengers. In a connected world whose standards have become immediacy and availability, understanding passengers’ needs and responding to them quickly is key for airlines’ development and digital solu- tions enable them to better understand July 2020 · AVIATION BUSINESS 14 www.aviationbusinessme.com IN VIEW15 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com IN VIEW The world’s largest long-haul airline, Emirates, began to lay off staff in June, leaving thousands of cabin crew and hundreds of pilots out of work and having to wave goodbye to Dubai. This image, taken in 2018, shows members of Emirates’ cabin crew in a desert outside the city.July 2020 · AVIATION BUSINESS 16 www.aviationbusinessme.com FIA CONNECT FARNBOROUGH AIRSHOW GOES DIGITAL FOR 2020 One of the industry’s largest air shows will take place digitally this month as the market adapts to new ways of doing business. The aviation industry is known for its ability to evolve and adapt quickly and one of the biggest events in the calendar is playing its part too. Farnborough International Airshow, which was due to run in the UK this month, will instead take place digitally because of the ongoing coronavirus pandemic. The show’s organisers have launched FIA Connect, which is a platform to connect the global aerospace industry between 20 and 24 July. Over fi ve days, there will be a series of free-to-attend digital aerospace events, including a full virtual conference programme focussed on topics lead- ing industry and featur- ing high profi le speakers, as well as range of business growth opportunities. “The cancellation of the Airshow in response to the Covid-19 pan- demic was a major shock, however the team is determined to create something that brings as many aspects of the show to the global aerospace industry as possible,” says Gareth Rogers, chief executive of Farnborough International. FIA attracts the world’s largest aviation manufacutrers, suppliers and operators. FIA Connect will encourage online engagement. Firms will still be able to showcase products. “Through our biennial Airshow, we have been privileged to serve as a plat- form for connecting industry, facil- itating business growth, and show- casing the very latest in innovation and technology. The Farnborough International team is working hard to deliver a week of world-class con- tent and thought leadership in order to provide some support to industry at a time when we cannot meet.” The FIA Connect schedule of events includes: The FINN Sessions A comprehensive webinar programme of insight and analysis featuring leading fi gures and focussed on the topics that matter: MRO, defence, airlines, space, urban aviation and future workforce. Meet the Buyer is to run free-of- charge on Tuesday 21 July. This is a strategic opportunity, connecting suppliers with buying decision makers at pre-arranged, private and secure virtual meetings. Farnborough Friday A day developed to help address the skills gap, this vir- tual hub will include careers advice, inspirational speaker videos, down- loads and workshops. ADS Partnership FIA Connect is part- nering with ADS Group, the UK trade association for Aerospace, Defence and Security, to provide support, guidance and topical sessions of analysis, giving the best of insight and resource to help business keep up to date, informed and connected. 20-24 JULY FIA CONNECTaircraft we have seen an increase in demand by cargo operators followed by a slight increase from the MROs. We seem to be heading the right way and things are beginning to look promising. What is Safari’s key message to customers currently weathering the industry crisis? This global pandemic might have cre- ated a shift in the way we do business and has presented us with many chal- lenges whether it be fi nancial, logistical or humanitarian; but what it should not change is our determination to strive for being the best at what we do. We have had a bumpy ride in the past few months and will probably have some more to come, but hopefully the worst is over and I am sure that together we will get through this. Henry Ford once What has business been like for Safari Aviation since fl eets were grounded? Have you seen an uptake in maintenance business? Just like all others in the industry, we had our share of problems to deal with. With fl ights almost coming to a com- plete halt, topped with the movement restrictions and other measures put in place to stop the spread of Covid-19, we experienced a period when we literally had no sales. No fl ights, no maintenance, no spares provisioning, nothing at all. I think everyone was just in shock and trying to digest what was happening. All payments froze and no one was willing to part with their cash as no one knew what was going to happen and where this was heading. Gradually things started to ease and a few ad- hoc fl ights operated. Cargo operations started to increase and operators began evaluating plans for using their ground time to perform scheduled maintenance. But then it was time to deal with the logistical nightmare. Vessels kept chang- ing or even cancelling sailing sched- ules, couriers became so unreliable and fi nding space on freighters was next to impossible. Covid-19 had become the perfect excuse for everyone to cover their ineffi ciencies rather than looking at things objectively and taking the initiative to resolve the issues. We had shipments stuck all over the world and were all hands-on-deck trying to get them moving. We are beginning to see improvements and whilst we are still way down on spares provisioning for the passenger LOCAL HERO With airlines largely grounded through much of April, May and June, it was important that carriers were ready to fl y as soon as restrictions were lifted. Ali Safari, managing director of UAE-based Safari Aviation Services, explains how the parts provider has ensured carriers are prepared to start operating again from the off. SAFARI AVIATION 17 July 2020 · AVIATION BUSINESS www.aviationbusinessme.comsaid: “When everything seems to be going against you, remember that the aeroplane takes off against the wind, not with it.” How is Safari supporting its customers? Customer support has always been one of our strengths, even before the pan- demic. Our procedures focus on two main factors. Firstly insuring that parts which we supply meet the stringent quality standards mandated in the avia- tion industry while providing the most cost-eff ective solution. And secondly providing a seamless experience to our customers. Extended credit terms is the most signifi cant change that we have made to enhance our customer support even further. Why does it pay for airlines to use local parts suppliers? There are many benefits to using a lo- cal reliable supplier – and by reliable I mean suppliers that meet the industry’s quality requirements – not the shady brokers who have set up shop in their living rooms. When using a reliable local supplier, your quality team can visit and au- dit your local supplier to ensure that they meet the quality requirements which they are supposed to adhere to. Also, when you use a local supplier with readily available stock, you can in most cases get your part the same day and don’t have to worry about where your shipment is going to miss its connection flight or when it is go- ing to be off-loaded. You don’t have to wait many hours for a response from your supplier to be able to submit your report to the decision-makers in your organisation. And if somehow you have ordered the wrong part or if you have to send something back for war- ranty, you don’t have to worry about huge freight costs to return the item to your supplier. Freight cost is a major factor in provi- sioning of spares and is always a topic of conversation when we meet existing or potential customers. A buyer might be happy that he or she has found the item slightly cheaper than what the local sup- plier has off ered it for, but unfortunately what they often don’t realise is that by the time they have shipped the item and paid for the freight, it would end up costing the airline even more. Imagine you need to buy fi ve tyres, each weighing 130kg. What would be your landed cost after you have added your freight cost to it? Your other alternative would be to SAFARI AVIATION July 2020 · AVIATION BUSINESS 18 www.aviationbusinessme.cominvest 10 times more than you need to and buy 50 of them to justify shipping them by sea and save on freight cost and even then, you will have to wait another four to six weeks to receive them. How is Safari adapting its business in the face of the Covid-19 crisis? Have you had to make any operational changes? On the human factor front, I could con- fi dently say that we were amongst the fi rst to take precautionary measures to deal with the Covid-19 crisis. Luckily our director of quality takes such is- sues very seriously and issued a QAL (Quality Advisory Letter) to our team on 16 February wherein he had laid out detailed procedures on how to deal with the crisis. All staff were provided with the necessary PPE(s) and hand sanitiser dispensers were placed at every desk, entrance and exit. All meetings were cancelled and admission to our premises was restricted to delivery and collection of shipments only. We then implemented a work-from-home scheme for everyone who could perform their duties from home and split our receiving and des- patch team members into two teams who alternated on weekly basis. Staff transportation was also limited to three people per vehicle. I am delighted to say that we have not had any cases reported in any of our team members. On the planning front, we have re- shaped all our operational planning around our most valuable asset, which is our team. Every change and every decision we have made to get through this crisis, has the safety and well-being of our team members at heart. We have not laid off any team members, nor have we implemented any pay-cuts and we are taking every measure in order not to do so. Instead, we have taken other initiatives to reduce our overheads. We have terminated the lease on our second warehouse, which was used to cope with the overfl ow of stock and have adjusted our orders and tyre production plans with the factories by reducing the numbers on the passenger aircraft tyres and increasing quantities on cargo aircraft and business jets to maintain ad- equate stock for the increased utilisation of these aircraft. It is a delicate balance that we have had to achieve as we must also maintain adequate quantities of passenger aircraft tyres in order to cope with the surge in requirements when it eventually does return. How do you envisage the parts provi- sion sector to evolve post-Covid? There is no doubt that it is going to take a while for things to get back to near normal parameters. My best guess is that we should start seeing some improve- ment by mid-July, but it will probably be second to third quarter of 2021 before we start seeing any signifi cant growth in the volumes. Cargo sector is expected to continue to do better than usual for at least another year until the passenger operation is back to normality. I also expect to see an increase in the busi- ness jet and private charter operations, which is what our expansion is going to be focused on. We will also continue to assess new partnerships and new markets as we have always done, but now more closely than before. SAFARI AVIATION 19 July 2020 · AVIATION BUSINESS www.aviationbusinessme.comNext >