< PreviousJuly 2020 · AVIATION BUSINESS 20 www.aviationbusinessme.com SIR TIM CLARK Rescued airlines ‘are not out of the woods’ Emirates president Sir Tim Clark said that airlines which have been bailed out by governments are “no- where near out of the woods” and must start fl ying meaningfully and profi tably soon or face failure further down the line. Some of the world’s largest airline groups, including the likes of Lufthansa and Air France-KLM, have secured state- funded bailout deals, allowing them to stay afl oat during the coronavirus crisis, which has decimated travel demand and ripped out revenues. But Clark warned that most rescue pack- ages so far are based on the assumption that airlines will begin generating posi- tive cash fl ow in the next few months. He said while governments are beginning to realise that airlines will not survive unless they are bailed out, nobody knows when the funding will run out. “All the money that has gone into those companies is absorbing the cash obligations they have at the time. But it presupposes that you will be start- ing to fl y meaningfully and profi tably, generating positive cash fl ow in the next few months. Unfortunately, I don’t see it to the scale that these companies need to meet their cash obligations; so we’re nowhere near out of the woods.” With fl eets grounded, airlines are fac- ing a severe liquidity crisis with billions of dollars being burnt in Q2 alone. Even though carriers are beginning to ramp up scheduled fl ights, demand for air travel remains relatively low compared to the same time last year and so profi tability is very diffi cult. “It is important that governments understand – I am sure they are aware of other priorities in their economies – but this [aviation] business is at a critical and very fragile state at the moment and it needs all the help it can get,” Clark said. He said that without lifelines for airlines, he is “not optimistic that some of the [airlines] that are here today, and have already been signifi cantly bailed out, will get through the next few months”. Tim Clark expects return to normality between 2022 and 2024 Sir Tim Clark does not expect demand to reach pre-Covid levels until at least FIVE THINGS FIVE THINGS WE LEARNT FROM WE LEARNT FROM SIR TIM CLARKSIR TIM CLARK John Strickland from JLS Consulting interviewed Emirates president Sir Tim Clark on Arabian Travel Market Virtual in June. This is what we learnt about the airline and Clark’s views on the aviation industry’s recovery.21 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com SIR TIM CLARK 2022, but possibly as a late as 2024. He believes that a global inoculation process combined with certain social distancing measures will be the key to getting de- mand back to the way it was, predicting that by summer of 2021, passenger levels will start to rise rapidly on short-haul and long-haul fl ights. “You’ve got to make a stand and say ‘this is what we’re going to work to- wards’, otherwise you’re looking into a big black hole. You’ve got to come up with some kind of solution about your cash fl ows and hope for the best and plan towards that,” he said. “Eventually we’ll get over this, it’s probably just the next six-to-nine months where it’s going to be tough. I believe once we’ve got everybody through the inoculation process, like we did with polio, with smallpox and everything else, we will start to see things coming back to normal. And that way, by the summer of next year, we will start to see an uptick, quite a large uptick, in demand for travel, both on the short-haul and for airlines like ourselves.” Clark said that Emirates can mobilise its fl eet within 48 hours and is con- stantly monitoring the global situation. “I think probably by the year 22/23, 23/24 we will see things coming back to some degree of normality and Emirates will be operating its network as it was and hopefully as successfully as it was,” he said. However, he believes that the industry will bounce back in time. He added: “I’m not saying people have got short memories but they are anxious to get on with their lives, they’re anxious to enjoy their lives and they all have aspirations. They may be conditioned by diffi culties of furloughs and not having enough money from salaries etc. That’s going to dampen demand in the short- term, but after that, once we’re well into 2021, then I think things will change.” Emirates’ cargo ops have ‘kept the wolf from the cash door’ Emirates president Sir Tim Clark ceded that ramping up the airline’s cargo opera- tions in the early stages of the coronavi- rus crisis helped to cushion the impact of the industry-wide revenue crunch and protect liquidity. Emirates quickly Emirates aims to bring the A380 back onto more of its routes as its network expands, despite speculation over whether the aircraft would fl y again after the pandemic destroyed international air travel demand.July 2020 · AVIATION BUSINESS 22 www.aviationbusinessme.com SIR TIM CLARK started utilising its Boeing 777 passenger aircraft for cargo operations to supple- ment its SkyCargo freighter fl eet when passenger services were suspended in late March because of coronavirus. Clark said that while the increased cargo-only fl ights did not make up for the loss in passenger income, they kept “the wolf from the cash door”. “Being the opportunists that we are, we could see by late March that with the shrinking of global belly-hold capacity and the shortage of freighters, that there was an opportunity,” Clark said during an interview on Arabian Travel Market’s virtual conference. “Because we had the 777-300 ER, which is a hugely capable aircraft for both me- dium and long-haul operations, and because we had opted for the large cargo door at the rear of the aircraft, we were able to put 14 pallets into the hold and we’d also taken seats out etc.” Clark said that out of its fl eet of 153 Boeing 777s, Emirates is currently op- erating 85 of its 777-300 ER passenger jets on top of its 11 freighter Boeing 777s. Emirates is trying to off set some of the costs associated with having its entire A380 fl eet grounded. “That’s not going to deal with the loss of passenger income but it certainly keeps the wolf from the cash door, which is the real bugbear of the airline industry at the moment,” he said. “It’s not been easy but we’ve done the best we can to optimise whatever opportunities we get on the freight side. There doesn’t seem to be any signs of it going away at the moment so long may it last.” Between mid-January and mid-March, Emirates SkyCargo alone transported more than 225,000 tonnes of cargo in total out of which 55,000 tonnes were food items including fruits, vegetables, meat and seafood, and more than 13,000 tonnes were pharmaceutical cargo. ‘All bets are off ’ on A350, B787 and B777X When it comes to shiny new aircraft, “all bets are off ”, said Emirates president Sir Tim Clark, who feels that the industry is far too weak to be able to commit to large orders. He said: “We are nowhere near confi dent enough that the econom- ics, the cash fl ows, the bottom line will put us in a good position to be able to guess if we’ll buy a hundred of this or a hundred of that.” Emirates already rejigged its plans for its new fl eet structure in November, deciding to swap 30 Boeing 777Xs for 787 Dreamliners. The airline currently has around 200 jets on order, including 777s, 787s, A350s and a handful of A380 superjumbos. Emirates is seeking to cancel some of its remaining A380s on order and there is a question mark hang- ing over its fl eet plans. While the carrier will inevitably restructure its fl eet in the coming years to adapt to market trends, could we see it change its plans once again and even cut its orders? Clark said that aerospace manufactur- ers are aware of the fact that airlines are shying away from orders, seeking both deferrals and cancellations. He said that all airlines are facing “critical cash fl ow issues” and that businesses are having to focus on “surviving the present” instead of mapping the future. Clark added that airlines are going to have to consider their fl eet mix in rela- Sir Tim Clark, Emirates president.23 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com SIR TIM CLARK tion to the aff ordability of both new and existing aeroplanes. “We’ve never been here before… so you’re having to rethink exactly what you priorities are”, he said. Social distancing on aircraft ‘does not make sense’ Employing social distancing on aircraft does not make sense from an economic or an environmental sense, according to Emirates airline president Sir Tim Clark. With a tentative return to the skies, air- lines are adopting new policies that pro- tect passengers and crew from possible Covid-19 transmission, aimed at increas- ing consumer confi dence in the aviation industry. However, Clark does not believe that social distancing is an option. “If we start leaving seats in the econ- omy inventory open or unsold because of social distancing, one has to accept that you have to be consistent about this. There’s no point in leaving the seat next to you empty because the seat behind you, if somebody sneezes of coughs, ir- respective of the seat back, meant to be defl ecting it, this will not happen. These will travel 20 feet down the cabin and into the air. What it basically means is that you will have to take 50%, in the case of economy, of your inventory out. It doesn’t stack up for anybody to do that.” He added: “Equally, on the environ- mental side, it makes absolutely no sense to fl y empty aircraft or half-empty air- craft, because we’re all very conscious of this.” Emirates has initiated a number of health and safety measures on board its aircraft, including presenting passengers with their own kit, which includes face masks, gloves and sanitisers, allowing them the option to further clean their seat themselves before sitting down. Social distancing is being implemented by all airlines and airports where possible.July 2020 · AVIATION BUSINESS 24 www.aviationbusinessme.com COVER STORY The International Air Transport Association (IATA) recently released criteria for the use of Covid-19 testing. IATA dictates that testing must deliver results fast, be able to be conducted at scale, and operate to very high rates of accuracy. Additionally, testing must be cost-eff ective and not create an economic or logistical barrier to travel. In the International Civil Aviation Organization’s (ICAO) latest industry restart guidance, Takeoff , the body outlines layers of measures, including testing, to mitigate the risk of Covid-19 transmission during air travel. Technology for rapid point-of-care Polymerized Chain Reaction (PCR) test- ing could be a useful layer of protection for travellers from countries considered as higher risk, suggests IATA. Both IATA and ICAO see testing as an attractive alternative to quarantine measures, which will put passengers off air travel. “Airlines are committed to reducing the risks of Covid-19 transmission via THE NEW NORMALTHE NEW NORMAL TESTING, TESTING Aviation Business looks at how various airports and airlines are adjusting their operations to boost confi dence among passengers and ensure a safe and smooth journey for their customers in a market grappling with the aftermath of a pandemic. air travel and Covid-19 testing could play an important role,” says Alexandre de Juniac, IATA’s CEO. “But it must be implemented in line with ICAO’s global re-start guidance with the aim of facili- tating travel. Speed, scale and accuracy are the most critical performance criteria for testing to be eff ectively incorporated into the travel process.” Ideally, testing would be required in advance of arrival at the airport and within 24 hours of travel, says IATA. Passengers arriving “ready-to-fl y” re- duces the risk of contagion in the airport and enables early re-accommodation for any traveller who tests positive. If testing is required as part of the travel process, it is recommended at departure. Governments would need to mutually recognise test results and data transmis- sion should take place directly between passengers and governments in a similar manner as e-visa clearances are cur- rently handled. Cost is also an important considera- tion. Testing should facilitate travel and not provide an economic barrier. With testing at some European destinations costing in excess of $200, this is a real concern for IATA. Currently, the World Health Organization (WHO) requires governments to bear the costs of man- datory health testing. Where a test is off ered on a voluntary basis, it should be charged at cost price. Emirates became one of the fi rst airlines to introduce pre-fl ight Covid-19 tests.25 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com COVER STORY targeting of virus strains on surfaces with controlled bursts of germicidal UV rays; screening of individual through thermal infrared monitoring; and disinfection of areas using liquid cleaning agents. “Introducing CoDi BOT UGV at Abu Dhabi International Airport refl ects our Abu Dhabi International Airport has led the way when it comes to investing in new technologies to ensure passengers and employees are protected from the virus. Few other airport operators have adapted their processes and even their infrastructure to meet the new set of passenger demands. Abu Dhabi Airports has pulled in partners from all over the world to come up with innovative new solutions including AI motion sensors, touch-free elevator controls and robots that sanitise aircraft cabins. General precautionary measures at Abu Dhabi International include thermal screening at passenger and staff entrances, free PCR testing for passengers and em- ployees, workforce cluster management and regular risk assessments, enforcement of social distancing guidelines and roster realignment to ensure ample staffi ng at all times, in addition to the frequent sterilisation of workspaces and common areas throughout airport facilities. On top of all that however, the air- port has made some key investments. Notably, the operator installed touchless technology across 53 elevators to prevent cross-infection from elevator buttons. The touchless keypad technology, or Tchk, was designed and manufactured by Meta Touch, a UAE-based health and safety technology start-up. Tchk is a touchless control panel that allows users to command an elevator without physi- cally pressing any buttons, by simply ABU DHABI INTL: ARRIVING AT THE AIRPORT waving their hands in front of the panel to indicate the desired fl oor or direction. Abu Dhabi Airports has also intro- duced a new robot designed to disin- fect areas and sterilise aircraft cabins. The airport operator partnered with Tawazun Strategic Development Fund (TSDF) to launch the new CoDi BOT UGV (Unmanned Ground Vehicle), which is manufactured by UAE-based Marakeb Technologies. CoDi BOT UGV was fi rst piloted in staff areas and cargo facilities as well as on aircraft. Specifi cally ensuring aircraft cabins are kept clean and sterile, the CoDi BOT UGV is designed to be able to manoeuvre through airplane cabins while being controlled remotely. The BOT has three central functions including commitment to adopting innovative technology, which can bolster the protec- tion of our passengers and frontline staff against viruses,” says Shareef Hashim Al Hashmi, CEO of Abu Dhabi Airports. “The acute impact of the pandemic would have heightened our overall sense of awareness toward hygiene, and as vital piece of public infrastructure, we have a clear responsibility to ensure our spaces remain clear of any virus threat.” Passengers will encounter more contactless interactions, such as this elevator in AUH.July 2020 · AVIATION BUSINESS 26 www.aviationbusinessme.com COVER STORY Working closely alongside Abu Dhabi Airports, national carrier Etihad Airways has adjusted numerous parts of the passenger journey in an eff ort to boost customer confi dence and encourage people to return to air travel. The airline says it has “completely transformed the travel experience” which includes changes both on-board aircraft and when passengers arrive at Abu Dhabi International. Passengers can expect social-distanc- ing signage, thermal cameras, surface swab technology, self-cleaning escala- tor hand rails and touch-free elevator ETIHAD AIRWAYS: A NEW PASSENGER JOURNEY Greeting passengers at the airport will be Etihad’s ‘wellness ambassadors’, who are employed to provide support through- out the passenger’s journey. The ambas- sadors are able to advise on each stage of the customer journey including culinary hygiene, aircraft cabin deep-cleaning, check-in, health screening, boarding, in-fl ight experience, crew interaction, arrival, and ground transportation. Meanwhile, in the airport, Etihad has become the fi rst airline to trial Covid-19 ‘self-checking’ devices at key touchpoints such as check-in and security. The sys- tem, developed by Australian tech fi rm Elenium Automation, automatically sus- pends the self-service check-in or bag signed or intended to diagnose medical conditions,” says Jorg Oppermann, VP Hub and Midfi eld Operations at Etihad Airways. “It is an early warning indicator which will help to identify people with general symptoms, so that they can be further assessed by medical experts, potentially preventing the spread of some conditions to others preparing to board fl ights to multiple destinations. “It has long been the case that air- craft, with their highly sophisticated air-recycling systems and standards of hygiene are not the transmission vehicle for illnesses. We are testing this technol- ogy because we believe it will not only help in the current Covid-19 outbreak, but also into the future, with assessing a passenger’s suitability to travel and thus minimising disruptions.” drop process if a passenger’s vital signs indicate potential symptoms of illness. It then alerts staff on-site, who can make further assessments. Elenium has also developed hands-free technologies that enable touchless use of self- service devices through voice recognition, further minimis- ing the potential of any viral or bacterial transmission. While the technology has been brought in in response to the Covid-19 pandemic, such a device could help curb the spread of other diseases in the future and contribute to a safer aviation industry, Etihad says. “This technology is not de- buttons at the airport. Face masks are compulsory and new PPE vending ma- chines have been installed at Abu Dhabi International so passengers can access masks before fl ights. Passengers will undergo a self-service check-in and health screening system called Fit to Fly, which reads a traveller’s respiratory system, heart rate and tem- perature. The boarding process has also been adapted so that passengers board row-by row so there no queues. Etihad is also partnering with Austrian-based healthcare technology company Medicus AI to launch a Covid-19 risk-assessment app that allows passengers to check their probability of having contracted coronavi- rus by responding to a set of 22 questions. Etihad’s self-service health screening device is being trialled at Abu Dhabi International.27 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com COVER STORY Emirates says it has taken multi-faceted measures for employee and customer care throughout the travel journey. The airline has introduced complimentary hygiene kits to be given to every passenger upon check- in at Dubai International Airport. These kits comprise of masks, gloves, antibacterial wipes and hand sanitiser. Gloves and masks are mandatory for all customers and employees at the airport in Dubai, while only masks are mandated on Emirates fl ights. On arrival at the airport, thermal scanners at vari- ous areas monitor the temperatures of all passengers and employees. Physical EMIRATES: BOOSTING PASSENGER CONFIDENCE distancing indicators have been placed on the ground and at waiting areas to help travellers maintain the necessary distance at check-in, immigration, board- ing and transfer areas. The airport team has also installed protective barriers at each check-in desk and immigration counter to provide additional safety reassurance to passengers and employ- ees during interaction over the counter. Emirates’ boarding sequence has been staggered and passengers board by row, from the last row to the fi rst, in small numbers. The waiting area has also been modifi ed to ensure all customers observe social distancing. Emirates boarding agents, dressed in personal protective equipment (PPE), will facilitate the board- ing sequence. The boarding gates are deep cleaned and disinfected after the boarding of every fl ight. All cabin crew on-board are fully kit- ted out in PPE. Emirates has also added a cabin service assistant (CSA) to the crew complement on fl ights over 1.5 hours. The CSAs will ensure lavatories are cleaned at frequent intervals of every 45 mins. Each lavatory has been equipped with sanitising soap and hand washing in- structions. To minimise the risk of infection by touch, magazines and print reading ma- terial has been removed. Comfort items such as mattresses, pillows, blankets, headphones and toys are being hygieni- cally sealed. Cabin baggage has to be checked-in and customers can only bring essential items such as a laptop, handbag, briefcase or baby items on board. Each of Emirates’ aircraft is going through an enhanced cleaning and disin- fection process after every journey. And to safeguard its employees, Emirates’ fl ight and cabin crew are provided with cars for pick up and drop off at their home at the beginning and end of their duty. “Emirates is implementing a compre- hensive set of measures at every step of the traveller’s journey, to enhance the sanitisation of all touchpoints, and ensure the health and safety of our cus- tomers and employees,” said Adel Al Redha, Emirates’ chief operating offi cer. “The risk of catching an infection on an aircraft is already very low, but we have spared no eff ort in reviewing and redesigning every step, from check-in to disembarkation. Every measure im- plemented is an additional reduction in risk, and taken altogether, our aim is really to make fl ying as safe as possible. “We are working with all the stake- holders in Dubai - including the airport, immigration, health and aviation author- ities to implement such measures, and we will continue to review and consult expert advice for any development and changes. We are all aware that we have to adapt to diff erent practices during this pandemic in our day to day activities.”July 2020 · AVIATION BUSINESS 28 www.aviationbusinessme.com ELECTRIFICATION RACE TO THE FUTURE Experts in electric propulsion argue why they think that the coronavirus crisis will fail to derail the race towards a greener future in aviation.29 July 2020 · AVIATION BUSINESS www.aviationbusinessme.com ELECTRIFICATION Some of the fi rst casualties of the coronavirus crisis in the aviation industry were decarbonisation projects. While some airlines, like Air France-KLM, need to reduce carbon emissions even further as part of their bailout conditions, the worry is that important aerospace projects that could have paved the way for a more sustainable industry have been scrapped by manufacturers. One of the most high profi le projects was axed in April, when Airbus and Rolls- Royce pulled their joint venture, E-Fan X, which was a partially electric- powered narrow-body aircraft due to take to the skies in 2021. Other costly programmes have been placed on the backburner as companies scramble desperately to save cash. Understandably, aerospace businesses are doing all they can to survive the present, which means sacrifi cing future planning. But at what cost? Jeff Zaltman, CEO and founder of Air Race E (ARE), a Formula One-style compe- tition for purely electric aircraft, is well placed to observe the unfolding trends in the electrifi cation of the aviation sector. Before the coronavirus pandemic struck, the level of interest in electrifi ca- tion within the market was growing, he says. The enthusiasm for ARE and the impact it could have on the wider aviation industry was escalating on a weekly basis pre-Covid-19 and even continued in the initial stages of the virus outbreak. “Prior to launching ARE, I had always imagined an electric aeroplane car- rying 150 passengers 40 years in the future,” notes Zaltman. “You think it’s so far down the line it’s not relevant. But talking to manufacturers I realised that actually that 30 year horizon starts today. It’s relevant today. Market feed- back dictated that we needed to start developing those technologies today and we need a real world test bed. Something where you can push, test, succeed and fail, and we need something a race environment to do that. The appetite in the industry [for electrifi cation] is Next >