Dubai to get Mid East`s first aviation safety training academy

Dubai World Central Aviation City, which will be home to the world’s largest maintenance, repair and overhaul (MRO) centre in Jebel Ali, United Arab Emirates, has signed a land lease agreement with a Dubai company to set up the Middle East’s first independent aviation safety training academy.

Spatial Aviation Safety Training Academy (SASTA), a specialist provider of aircrew training solutions, will build the US$ 37 million (AED 136 million), 14,000 square metre facility to cater to commercial airlines, private and corporate jet operators, helicopter and light fixed wing crew.

The academy will also provide customised training for airport ground staff and management.

“This regional ‘first’ will significantly add to DWC’s proposition as a totally comprehensive aviation hub and provide a vital service to the industry within the Middle East who will be able to access world-class training without the costs of sending staff overseas,” said Abdulla Al Qurashi, CEO, DWC Aviation City.

“Aviation City will be a hub for global aviation training institutions who meet all international regulatory standards in order to bridge the gap between demand and supply to the full gambit of aviation providers regionally.”

SASTA’s safety training programme is compliant with ICAO (International Civil Aviation Organisation), JAR-OPS (Joint Aviation Regulations) and UAE’s GCAA (General Civil Aviation Authority) standards.

“Our vision is to establish SASTA as an exemplar provider of world class safety training programmes for the aviation industry, at Dubai World Central. We are excited and fully committed to play our part in the success of this truly historical project,” said Joseph McKeever, CEO, Spatial Training Solutions.

“The academy’s 40-strong staff managed by aviation industry experts will operate from a fully-equipped facility complete with an Airbus A300/310 and B777 full cabin simulator, real fire fighting trainer, ditching and water survival pool, a G500/550 Gulfstream, Hawker, Fokker and Airbus A318/A319/A320/ ,A321 and B737 door trainers. We anticipate its appeal will extend beyond the Middle East, to also service the rapidly-developing aviation sector within the Indian Sub-continent.”

The academy’s syllabus includes crew resources management, leadership courses, ‘Train The Trainer’ and aircrew safety and emergency procedures compliant with Civil Aviation Regulations.

The academy is to be operational by January 2009 when first flights will serve DWC’s Al Maktoum International Airport – set to be the world’s largest.

The US$1.4 billion (AED 5 billion) DWC Aviation City is a strategic aviation project launched within Dubai World Central (DWC) - the 140 square kilometre urban aviation, multi-phased development in Jebel Ali and will feature the MRO centre, repair and test as well as aircraft system and components installation facilities.

Emirates partners with Oemservices for A380 fleet

Emirates Airline and OEMServices have signed a 15-year co-operation agreement, securing the total support services of Diehl Aerospace, Liebherr-Aerospace, Thales and Zodiac for aircraft components fitted to Emirates’ fleet of Airbus A380 aircraft.

Under this agreement, OEMServices will be Emirates’ single point of contact for the supply of components and maintenance services for about 650 different rotable, repairable and expendable aircraft components.

Emirates will grant OEMServices exclusive access to its A380 component repair business, while OEMServices will guarantee just in time availability from its pool of A380 components to Emirates at its main base and its outstations - which reduces the need for Emirates to keep a large A380 inventory of its own.

The supply of components and maintenance services will be provided by OEMServices' founding partners: Diehl Aerospace, Liebherr-Aerospace, Thales and Zodiac (acting through IN-Services).HH Sheikh Ahmed bin Saeed Al-Maktoum, Emirates’ Chairman and Chief Executive, and Jean-Noel Barrere, President of OEMServices, formalized the multi-million dollar contract at the 10th Dubai Airshow.

Sheikh Ahmed said: “Emirates will have the largest A380 fleet in the industry, with 58 firm orders for this aircraft. The contract we are signing with OEMServices is an optimal arrangement that ensures the supply of components and maintenance services for Emirates’ A380 fleet in Dubai and around the world. We are confident that OEMServices has the expertise and commitment to deliver the results for Emirates, and we look forward to a long and fruitful partnership.”

Jean-Noel Barrere, President of OEMServices: “OEMServices and its founding partners are very proud of being selected by Emirates to provide a tailor-made full support solution for its A380 fleet.”

“By harmonizing the relevant processes and logistics and building on the strength, resources and assets provided by our partners Diehl Aerospace, Liebherr-Aerospace, Thales and Zodiac, OEMServices provides a superior customized solution which meets Emirates’ A380 support expectation. Our next challenge will be to expand our partnership with other OEMs so we may enhance our A380 product and services.”

EU Sees Boeing-Airbus Row Running Into 2009

A major transatlantic row over subsidies paid to Boeing of the United States and rival European planemaker Airbus could drag into 2009, the European Commission said on Tuesday.

"Only a few weeks ago, Boeing publicly rejected Airbus's latest olive branch," the European Union executive said in a statement to the European Parliament, drawn up by European Trade Commissioner Peter Mandelson.

"We are therefore skeptical whether this dispute can be resolved at the negotiating table any time soon," it said, adding a settlement remained the EU's favored option.

In the biggest trade dispute ever filed at the World Trade Organization, the United States and the EU three years ago swapped complaints over tens of billions of euros and dollars in government support for each other's aircraft industries.

In Washington, a spokeswoman for the US Trade Representative's office said the United States also preferred a negotiated settlement but was prepared to fight on.

"We continue to believe that a negotiated settlement that brings an end to WTO-inconsistent subsidies would be best. Meanwhile, we remain confident in a favorable outcome through litigation," USTR spokeswoman Gretchen Hamel said.

Tim Neale, a spokesman for Boeing, took issue with the commission's statement that Boeing had rejected an Airbus proposal for resolving the dispute.

"We are not aware of any EC or Airbus offers to resolve this dispute that would address the most market-distorting subsidies, namely launch aid," Neale said in a statement.

"Continuing launch aid is the biggest impediment to a 'fair and balanced' resolution of the dispute."

The commission said the WTO was likely to decide on the cases in 2008 but appeals could stretch the process into 2009.

"We would think that once the WTO will have decided in the two cases, it would make sense to sit together with the US to manage the resulting implications. Whether this might expand into proper negotiations, we are not sure," the statement said.

Although Boeing was waging a "damaging" campaign, including an attempt to block funds for improving US airports to accommodate Airbus's new superjumbo A380, the commission said that so far the row had not damaged EU-US trade relations.

"We intend to keep it that way. And we trust that the US will do the same, for example by ensuring that the Airbus-Boeing disputes are not allowed to affect either company's ability to compete fairly in public procurement competitions," it said.

"Notably, there should be no anti-competitive actions in legislation or executive policy that would improperly restrict the ability of EU companies to compete in the current US aerial tanker recapitalization program."

Boeing is competing against Northrop Grumman and its partner EADS, the parent company of Airbus, to build a new fleet of mid-air refueling planes in a USD$40 billion Air Force competition.

"Boeing has welcomed the competition Airbus and Northrop have brought to the tanker program. Competition makes everyone stronger," Neale said.

EU Body Adopts Strict Rules For Airline Emissions

Airlines flying in and out of the European Union should join the bloc's emissions trading system in 2011 and submit to strict caps on their output of greenhouse gases, the European Parliament has voted on Tuesday.

The EU assembly, in its first reading on a bill that has drawn ire from the United States and other nations, voted to set a tighter limit on aviation's carbon dioxide (CO2) emissions than first proposed by the European Commission.

It also set one date, 2011, for inclusion of internal EU and intercontinental flights and increased the number of carbon permits -- certificates that essentially assign rights to pollute -- that airlines would have to buy up front from EU governments instead of getting them for free.

The trading scheme is the 27 nation EU's key instrument to fight global warming. It sets limits on the amount of CO2 that industry may emit. Companies buy or sell permits based on whether they overshoot or undershoot their targets.

Airlines are not currently included and the EU wants to add them, to show world leadership on climate change and help meet an internal goal to reduce greenhouse gas emissions by at least 20 percent by 2020 compared to 1990 levels.

"We are ten years late," in tackling emissions from international aviation, said Peter Liese, the German conservative deputy who steered the bill through the assembly. "I don't think it's over ambitious. It's high time to do something."

Airlines attacked the vote as damaging to economic growth while environmentalists said it did not go far enough to fight climate change.

The Association of European Airlines, which represents carriers such as British Airways and Lufthansa, said it was "a massive blow to the viability and competitiveness of the European airline industry (and) a barely measurable step for the environment."

But environmental group WWF said the parliament "missed the opportunity to really curb the emissions of the fastest growing sector in Europe in terms of greenhouse gases."

The plan must now go to EU governments for potential changes. It must be approved by parliament and EU ministers before it can become law.

The parliament tightened the Commission's proposals across the board, though EU governments are unlikely to support many of the new requirements.

Lawmakers voted to increase the amount of permits that airlines must buy upfront at auction to 25 percent from 2011 and said the sector's cap should be set at 90 percent of average emissions from the period 2004-2006, tighter than the 100 percent proposed by Brussels.

The parliament set limits on the amount of permits airlines could buy from other sectors in the trading scheme and under the Kyoto Protocol while adding a "multiplier" that would take into account the effects of gases other than CO2.

It also voted to include government flights in the scheme while excluding all military flights.

Lawmakers rejected the Commission's proposal that intra-EU flights join the scheme in 2011 and all intercontinental flights from 2012, saying that adopting one date would ensure no airlines were at a competitive disadvantage.

Environment Commissioner Stavros Dimas had said the Commission believed a two-step approach would help convince other nations that the EU scheme was workable.

Qantas to buy up to 188 aircraft

QANTAS will buy up to 188 narrow body aircraft for short haul flights, growing its brands in Australia and Asia. The airline said the funding of the purchases won't affect its investment grade credit rating.

The new aircraft will be used to defend Qantas' minimum 65 per cent share of the Australian domestic market and to expand low cost services to South East Asia.

The plan also involves Jetstar opening new regional aviation bases in both Darwin and Perth over the next two years to serve fast growing Asian markets.

Most of the new aircraft will be Boeing 737-800s and Airbus A320s.

The order also includes larger A321 aircraft, which will have up to 213 seats, compared with 177 on an A320 in a Jetstar single-class configuration.

The first aircraft to arrive in February will be an A321.

"We expect to take at least 17 of those aircraft to expand Jetstar's opportunities in its fastest growing markets,'' chief executive Geoff Dixon said.

Qantas will acquire 68 A320/A321 aircraft and has 40 options and purchase rights.

It will also buy 31 B737-800 aircraft, and has 49 options and purchase rights.

"The firm aircraft will be delivered over a six year period, while options secured additional delivery slots through to 2017,'' Qantas said.

Mr Dixon said: "This decision, together with existing A380 and B787 fleet commitments, secures an order stream for next generation aircraft that will allow the group to meet long term demand growth and replace older aircraft over the next decade.

"The plan provides maximum flexibility to respond to changes in the market and competitive situation.

"In an environment where our customers have more options than ever before, this investment will ensure that Qantas and Jetstar continue to provide customers with superior network reach, choice and product.''

He said some of the Airbus aircraft would also be used to supply capacity to the group's Asian associates.

Qantas is preparing to receive its first superjumbo A380 aircraft in August 2008.

Jetstar will later launch the B787 Dreamliner to underpin the expansion of its low cost international services.

"We are confident that the orders we have placed provide the right aircraft, with the right product and right economics to ensure the continued success of Qantas and Jetstar both domestically and internationally,'' Mr Dixon said.

Saudi Prince buys A380 as private jet

Dubai: Luxury got a new dimension and a new name - A380 'Flying Palace' - as Saudi billionaire Prince Al Waleed Bin Talal on Monday signed a deal to buy the world's first end-to-end double-decker corporate jet, a deal valued at $319 million at list prices.

When delivered in 2010 with the latest amenities to ensure maximum comfort and luxury - Al Waleed will probably rewrite the best-known fairy tales that could depict the latest version of luxury - perhaps the best that money can buy.

Al Waleed, billed as the world's fifth richest Arab, on Monday stopped by Dubai International Airport for half an hour to sign the deal with Airbus chief executive Tom Enders, flanked by a battery of crew - all dressed in golden coloured outfits.

Al Waleed descended from his Boeing 747 corporate jet just before 1pm on Monday, flanked by his entourage and crew members.

"This is the first corporate jet for the Airbus A380 to be sold and we are all proud of the first of its kind deal," John Leahy, Airbus chief operating officer, told Gulf News minutes after the signing ceremony.

"The value of the deal is about $319 million including the engines, however, excluding the interiors, which have not been decided yet."

Al Waleed toured the aircraft and came out smiling, accompanied by the officials of his Kingdom Holdings, before boarding his Boeing 747 corporate jet around 1:30pm.

The A380 will be powered by Rolls-Royce Trent 900 engines. It will undergo a cabin outfitting at a yet to be chosen completion centre.

"Prince Al Waleed's order means that Airbus' sales success in the corporate jet market now extends from its smallest aircraft, the A318 Elite - all the way up to its largest, the A380 Flying Palace," Leahy said.

He expects to sell about 20 A380 Flying Palaces in the coming years, including a sizeable number from the Gulf.

AIRPORT NEWS

Thousands attend Changi Terminal 3’s open house

The first public opening of Singapore Changhi Airport’s Terminal 3 (right) yesterday attracted more than 2,000 visitors.

The airport operator has arranged an open house at the terminal, which is due to open for commercial flights on 9 January next year.

The airport is expecting some half a million people to attend its open house over the next four weeks.

Changi’s winter season launches with record flights

Right: An extra 100 flights per week have been added to Changhi's winter season

Singapore Changi Airport launched its northern winter season on 28 October with a record 4,300 weekly scheduled flights. This represents an increase of more than 100 weekly flights compared with the northern summer season between 25 March and 27 October 2007.

Lim Kim Choon, director general and chief operating officer of the Civil Aviation Authority of Singapore (CAAS), says, “Leading this growth is increases in flights to south Asia and north Asia, in particular the Indian sub-continent. This is not surprising, given that India and China are Singapore’s fastest growing markets for business and tourism.”

Brunei commissions airport master plan

The Government of Brunei has commissioned a master plan for Brunei International Airport that could herald a major programme of improvement work.

The Department of Civil Aviation says the master plan, which is expected to be ready by July next year, will look at infrastructural development strategies and terminal needs, emphasising priority improvement needs.

Brunei’s director of civil aviation, Pengiran Abdul Rahman Ismail, says it has not yet been decided whether to expand the existing airport terminal or build a new one. “We need to wait for the consultancy study to be completed to consider the number of options that will be short-listed to be implemented for the development of the airport.”

Touch-screen check-in to dominate at T5

Right: Increasing numbers of Heathrow passengers are opting to use self-service check-in facilities in preference to queuing

British Airways predicts that around 80% of its passengers travelling via Heathrow’s Terminal 5 will check-in online or using touch-screen check-in machines.

The high predicted level of self-service take-up at the new terminal, which opens next March, reflects a growing trend at the airport, says operator BAA.

A spokesman for BAA says British Airways, Virgin and United already operate touch-screen check-in machines at the airport and other major airlines with a large presence at Heathrow are now following suit.

“The feedback we’re getting from these airlines is that significant numbers of people are using the machines,” he adds.

Heathrow to offer state-of-the-art parking

Right: New car park promises to reduce congestion and pollution at Heathrow


Heathrow is about to unveil a high technology car park at Terminal 5, which is due to open next March. The automated system will take a photo of each car’s license plate as it enters, and direct the driver to a vacant space using illuminated arrows and an infrared camera tracking system. The car park ticket retains details of the parking space, so when the user returns to the pay kiosk, a digital display directs him or her to the car. Heathrow officials claim the system will reduce traffic and cut carbon emissions by 397 tonnes per year.

"Third Screen" Revolutionising Travel Marketing in Asia

LONDON, UNITED KINGDOM- Mobile phones are becoming one of the most important communication tools between the travel industry and Asian consumers according to the World Travel Market Global Trends Report 2007 released today in partnership with market intelligence firm Euromonitor International.

The report identified mobile phones as a highly influential marketing tool, calling it the "third" screen following television and the internet. Penetration rates are particularly high in Hong Kong, Singapore and Taiwan which reached 124%, 103% and 102% respectively and are expected to continue to grow by 3-4 percentage points each year until 2009.

Several regional travel and tourism players have already responded to the importance of SMS as a communication tool. Philippine Airlines and Cebu Air provide SMS ticketing and Singapore Airlines sends SMS ticket confirmation services to local travellers. Australian based online travel operator, zuji.com has divisions in Singapore, Hong Kong, Taiwan, South Korea and Australia and sends out tailored SMS promotions to subscribers.

Clement Wong, Euromonitor's International's Global Travel and Tourism account manager comments: "Asians love their phones and as the world's leading region of users, we expect they will become the new way of doing business for the travel industry in that part of the world.

"The mobile phone revolution in Asia presents a dynamic and convenient channel, especially with SMS messaging, mobile TV and internet and recently, mobile blogging. With information sharing in the palm of their hands we expect marketing opportunities for tourism to grow nearly 200 per cent over the next five years."

Halal Tourism: Untapped potential for Middle East

REPORT - LONDON - WTM 2007: Despite vastly differing requirements, Middle East tourism is missing out by targeting Muslims and non-Muslims in exactly the same way, according to the World Travel Market Global Trend Reports 2007 released Monday 12 November 2007, published in partnership with market intelligence company Euromonitor International.

“This represents an important, untapped potential and a business opportunity for Halal tourism which is a form of religious tourism defined as activities permissible under Islamic law”, said Fiona Jeffery, Chairman of World Travel Market.

The report, released on the opening day of the leading industry business-to-business event in London, forecasts the number of inbound tourists to the Middle East will grow by 66%, reaching 55 million visitors by 2011.

“A large proportion of these will be intra-regional, boosted by increased transport connectivity between cities and better infrastructure”, said Jeffery.

Ms Parita Chitakasem, Asia Pacific and Australasia Travel and Tourism Manager said: “As witnessed by the continued number of religious tourists visiting the Iraq, Halal Tourism has the potential to develop into one of the most resilient forms of tourism.”

“The Vatican set up its own budget airline to transport pilgrims to holy sites in 2007 and there is potential for the development of a Halal to start up its own airline. Such an airline could provide Halal food, calls for prayer, Korans in seat pockets, religious programmes on the inflight entertainment system and separate sections for male and female passengers.”

“Another potential option is to explore women only hotels to overcome Muslim women being unable to book hotel rooms without a male guarantor, which is the case in Saudi Arabia.”

Tourism revenue in the Middle East is expected to grow by 108% to almost $51 billion and domestic tourism by 82% to reach $24 billion in 2011.

Most of this expansion stems from inbound travellers, underlining the need for tailored Halal tourism products and services that are developed within the region to cater to this dynamic market.

India plans to create a splash in the cruise market

India is gearing up to relaunch itself as a major cruise destination. Ports selected for upgraded cruise facilities include Mumbai, Mormugao (the port city of Goa); Cochin in Kerala, New Mangalore on the southwest coast and Chennai on the east coast.

Speaking at World Travel Market, Leena Nandan, Joint Secretary to the Government of India, Ministry of Tourism, said: “Cruise operators are more than ever searching for new destinations and itineraries and India’s reputation as an enchanting, exotic and historical destination lends itself ideally to becoming a major port of call.”

Ms Nandan said India was well-located to create and expand regional cruise itineraries. The country’s rapidly-expanding tourism figures (both overseas and domestic traffic) meant that India could support a burgeoning cruise market.

Outlining the Government of India’s proposed cruise shipping policy, Ms Nandan said: “Our aim will be to try and tempt cruise passengers into returning to India for a longer stay.

“We aim to ensure that India’s cruise industry is competitive with other international destinations – and that as well as developing existing ports, we also explore other possible anchoring sites around the Indian coast.”

Ms Nandan said the government had set a target of attracting 100,000 cruise passenger landings a year by the end of 2010.

There are also plans for more aggressive marketing of river cruises which are currently available on the Mandovi and Zuari rivers in Goa, the Brahmaputra in Assam, the Hooghly River in West Bengal and the backwaters of Kerala.

India's newest tourist region is on the doorstep of Delhi

The north Indian state of Haryana has set its sights on becoming one of the country’s most popular tourist regions. Stretching from the outskirts of Delhi to the borders of four other states including Punjab and Rajasthan, the Haryana border is just six kilometres from the Indira Ghandi International Airport, India’s busiest gateway.

Only a separate state since 1966 when the Punjab was divided in two, Haryana is a historic and prosperous region of green fields and small resorts; ideal for a relaxing day trip from Delhi – or a longer break.

Golf, farmhouse holidays and cultural tourism are among the niche markets Haryana is hoping to cultivate.

Speaking at World Travel Market, Haryana’s tourism minister Mrs Kiran Choudhry said the state’s tourism infrastructure was developing very quickly - helped enormously by the Indian Government’s decision two years ago to massively reduce bureaucracy. This had simplified many rules and regulations which had enabled greater foreign investment and actively encouraged privatization.

“Haryana has also been pioneering the concept of Highway Tourism which has seen beautiful tourist complexes being constructed close to some of the major roads passing through the state,” she said. “Each resort includes hotels, motels, bars, fast food centres, health clubs and conference halls.”

Mrs Choudhry highlighted a two-day tour known as the North India Circuit which starts in Delhi and includes the heritage city of Kurukshetra, regarded as the birthplace of the Vedic civilization – the earliest civilization in Indian history - where there are no fewer than 860 places of pilgrimage. Mrs Choudhry said Kurukshetra was now being promoted as an international tourist destination.

The plans will be outlined at a World Travel Market press conference on Tuesday November 13, 2007 at 15.00. The press conference is being held in Rooms 14 & 15, North Gallery at the ExCeL exhibition centre.

Kuoni continues to grow

The Kuoni Group’s total turnover for the first nine months of 2007 was a 14.8% improvement on the same period last year as the company announced. Organic growth accounted for 4.9 percentage points of this turnover increase. EBIT for the period showed even greater growth of 17.2%. Free cash flow stood at a record CHF 218.1 million.

Strategic Business Units Asia & Destination Management and Scandinavia posted excellent results for the period, while Strategic Business Unit Europe delivered an encouraging performance. Kuoni Switzerland saw the launch of a restructuring programme to raise its currently-weak margin performance. At Kuoni UK, the new management is now in place and is currently devising the actions required to bring the unit back onto a successful track.

The Kuoni Group further expanded its strong position in the specialist segment through the acquisitions of CV Travel (UK), Les Ateliers du Voyage (France) and UTE Megapolus (Russia), while the acquisition of Denmark - based tour operator Falk Lauritsen Rejser A/S strengthened Kuoni’s position in the Danish travel market.

The structural adjustments announced under the present corporate transformation are proceeding according to plan.

From its current perspective, the Kuoni Group expects to post turnover of more than CHF 4.5 billion and an EBIT of more than CHF 130 million for 2007 as a whole.

January to September 2007

In a market environment characterised by further industry consolidation and substantial pressure on margins, the Kuoni Group raised its total turnover by a sizeable 14.8% in the first nine months of 2007, from the CHF 3 062 million of the prior-year period to CHF 3 515 million. Organic growth accounted for 4.9 percentage points of the turnover improvement, the net impact of acquisitions and divestments accounted for 7.2 percentage points and currency movements had a net positive impact of 2.7 percentage points.

Gross profit for the period stood at CHF 756.6 million, a 16.5% improvement on the CHF 649.6 million of January-to-September 2006. Gross profit margin rose from 21.2% to 21.5%. Earnings before interest and taxes (EBIT) were increased 17.2%, from the CHF 88.3 million of the prior-year period to CHF 103.5 million. The EBIT result includes investment of CHF 4.9 million in expanding the activities of online distributor Shoestring, CHF 4.6 million of expenditure to date on the ongoing corporate transformation and around CHF 9 million (prior year: CHF 2 million) of acquisition-related amortisations of intangible assets in accordance with IFRS 3.

The balance sheet on September 30, 2007 showed equity of CHF 600.8 million (unchanged from December 31, 2006). The balance sheet equity ratio declined from the 33.5% of the end of 2006 to 28.4%, as a result of seasonal variations in the balance sheet total. Cash flow from operating activities amounted to CHF 242.5 million (which compares with CHF 205.1 million for January-September 2006), while free cash flow stood at a record CHF 218.1 million (compared to CHF 177.4 million for the prior-year period).

Third-quarter results

Kuoni Travel Holding Ltd. generated total turnover of CHF 1 488 million for the third quarter of 2007, an increase of 13.7% on the prior-year period. Of the overall increase, 4.6 percentage points were attributable to organic growth, 6.3 percentage points to the net impact of acquisitions and divestments and 2.8 percentage points to the net positive impact of currency movements. Gross profit totalled CHF 330.0 million, an 18.7% increase on the CHF 278.0 million of the prior-year period. Third-quarter gross profit margin rose accordingly from 21.2% to 22.2%.

The EBIT margin of 6.6% was a slight decline on the 6.7% of the third quarter of 2006. EBIT itself was increased 11.4%, from the CHF 87.8 million of the prior-year period to CHF 97.8 million. The net result for the period amounted to CHF 95.7 million, a substantial 21.8% improvement on the third quarter of last year. The results were buoyed in particular by highly encouraging developments at Strategic Business Units Asia & Destination Management and Scandinavia. As was expected, the favourable overall Group results were depressed to some extent by performances in the Swiss and UK markets.

In Switzerland, where the market is currently proving very difficult, the problems have already been identified and reported on. A restructuring programme has now been launched to improve the unit’s currently-weak margin performance. Strategic Business Unit Switzerland posted turnover of CHF 323 million for the third quarter of 2007, broadly unchanged from its prior-year level, but raised its EBIT result for the quarter by 6.5%, from CHF 19.9 million to CHF 21.2 million. Kuoni Switzerland again earned several “best Swiss tour operator” awards and distinctions during the third-quarter period.

Strategic Business Unit United Kingdom is also still short of its objectives, as was outlined in connection with the Kuoni Group’s first-half results. Third-quarter turnover was increased 23.8% from the CHF 172 million of 2006 to CHF 213 million; but EBIT declined 43.8%, from CHF 14.6 million to CHF 8.2 million. The new management installed in summer is currently devising the actions required to bring the unit back onto a successful track.

Strategic Business Unit Scandinavia posted exceptionally good third-quarter results. The CHF 338 million turnover for the period was a 17.8% improvement on the CHF 287 million of July-to-September 2006, while EBIT for the quarter was raised by an outstanding 50.8%. Strategic Business Unit Asia & Destination Management also showed highly favourable third-quarter developments, raising its turnover 21.3% from CHF 314 million to CHF 381 million and achieving a 36.4% improvement in its EBIT result. Strategic Business Unit Europe increased its third-quarter turnover 12%, from CHF 234 million to CHF 262 million.

Outlook for the year

Booking levels as of November 11, 2007 for the Kuoni Group’s tour operating business were 14% above their 2006 equivalents. Bookings are especially encouraging for the Christmas period, with travel arrangements to the Maldives, Thailand and Egypt proving particularly popular.

The implementation of the present corporate transformation is proceeding according to plan. The new structure will put brand management – which is so crucial to Kuoni’s success – clearly centrestage in all future Group development.

Kuoni expects to record total turnover of more than CHF 4.5 billion and an EBIT of more than CHF 130 million for 2007 as a whole.

Qatar Airways Orders 60 Boeing 787-8 Dreamliners And 32 Boeing 777s

His Excellency Sheikh Hamad bin Jassim Bin Jabor Al Thani, Prime Minister and Foreign Minister of the State of Qatar, is pictured second left after the official signing ceremony of the Boeing and GE engine order at the Dubai Air Show. With him from left are: General Aviation President and CEO Scott Donnelly, Qatar Airways Chief Executive Officer Akbar Al Baker and Boeing President and CEO Scott Carson

Dubai, UNITED ARAB EMIRATES - Qatar Airways today announced an order for 30 firm and 30 option Boeing 787-8 Dreamliners, together with confirmed orders for 27 Boeing 777s and an additional five options.

Guest of honour, His Excellency Sheikh Hamad bin Jassim Bin Jabor Al Thani, Prime Minister and Foreign Minister of the State of Qatar, presided over the official signing ceremony and announcement at the Dubai Air Show.

Details of the order were unveiled during a press conference attended by senior executives of both companies together with GE Aviation, which will supply engines for the aircraft.

Addressing media in Dubai this afternoon, Qatar Airways Chief Executive Officer Akbar Al Baker said: "We are proud to join the growing list of Boeing 787 customers. With deliveries from mid-2010 through to 2014, the 787 will form the core of Qatar Airways regional and medium-haul fleet from the next decade and its optimum size and outstanding fuel efficiency and economics will underpin the airline's profitability and competitiveness as it builds its hub at Doha's new international airport."

Pictured at the official signing ceremony of the Boeing order at the Dubai Air Show today are from left; General Aviation President and CEO Scott Donnelly, Qatar Airways Chief Executive Officer Akbar Al Baker and Boeing President and CEO Scott Carson

Al Baker said the decision to opt for the Boeing 787 was taken following a detailed analysis of the airline's future aircraft needs over a period of three years, including significant inputs to the 787's original definition and specification. The Boeing 787 order is for the 787-8 version with options to convert to the 787-9 variant.

"Later this month, Qatar Airways takes delivery of the first of its 27 firm Boeing 777s, which signals our first move to induct Boeing aircraft into our fleet," he said.

Qatar Airways has confirmed orders for 14 777-300ERs, 6 777-200LRs and 7 777-200Fs, with deliveries beginning later this month and running until mid-2010. The two passenger 777 variants will facilitate a major expansion in the airline's long haul passenger network. The 777-200 freighters, which will be delivered from 2009, provide outstanding economics enabling Qatar Airways to build up an efficient cargo hub linking Europe and Asia, supplemented by its regional widebody freighters and belly capacity.

Qatar Airways CEO Akbar Al Baker is pictured, left with Boeing President and CEO Scott Carson exchanging gifts after the aircraft order announcement.

Added Al Baker: "I am pleased to say that the Boeing 787s and 777s will strengthen our partnership with Boeing for years to come. Our passenger fleet is among the youngest and eco-friendly in the world with a projected average age of just over three years by next year."

The aggregate value of the 30 Boeing 787s and 27 Boeing 777 firm aircraft is estimated at US$13.5 billion at catalogue prices.

All of the aircraft acquired by Qatar Airways from Boeing will be equipped with General Electric engines. Al Baker added: "The choice of the GEnx and GE90 powerplants to power the airline's new Boeings will further cement the excellent working relationship already established with General Electric on its CF6 programme."

Air Arabia Sees Mideast Traffic Growing

Air Arabia, the Middle East's only publicly listed carrier, said it expects regional passenger traffic to grow by an average 7.1 percent per year during the next eight years, faster than the global average.

Sharjah, United Arab Emirates-based Air Arabia, the region's largest low-cost carrier, said on Tuesday it would benefit from "strong air traffic growth projected in our target regions" and "highly favorable home and regional market dynamics."

The airline, which this year raised USD$700 million in an initial public offering, on Monday ordered 34 aircraft from Airbus, with options for 15 more, in a contract worth up to USD$3.5 billion. These will replace the 11 aircraft it leases now.

Middle East cargo traffic should grow 5.3 percent per year during the decade to 2015, compared with 6 percent globally, the carrier said in a presentation that it will give to investors in New York during the next three days.

The presentation was posted on the web site of the Dubai Financial Market, which is organizing the meeting with 13 Dubai-listed companies.

Air Arabia carried 1.76 million passengers last year, and 1.96 million in the nine months to September 30, with the Indian subcontinent its biggest market, followed by other Gulf Arab states, according to the presentation.

Shares of Air Arabia have almost doubled in value since they listed in July. The company started in 2003.

Singapore Airlines And China Eastern Airlines Launch Interline E-Ticketing

Customers travelling on Singapore Airlines and China Eastern Airlines can now enjoy the benefits and convenience of requiring just one electronic ticket (e-ticket) for the entire journey.

With e-tickets, travel itinerary and customer information are maintained electronically in the airlines’ reservations systems. As a result, any amendments to bookings can be made easily and customers do not have to worry about misplaced paper tickets.

“Singapore Airlines is pleased to announce the launch of interline e-ticketing with China Eastern Airlines which allows all our customers to enjoy the benefits of paperless travel,” said Mr Huang Cheng Eng, Singapore Airlines’ Executive Vice President Marketing and the Regions.

“With interline e-ticketing, travel processes are streamlined and check-in procedures are made simpler and more convenient. We are especially delighted to initiate e-ticket cooperation with China Eastern so quickly and this is one sign of the partnership being built between both airlines.”

This interline e-ticketing arrangement is Singapore Airlines’ 100th e-ticketing cutover. Singapore Airlines first offered e-tickets to passengers in 1997 and now e-tickets are available to customers travelling to any of its 65 destinations.

The Airline has also established interline e-ticketing arrangements with all of its Star Alliance partners and plans to conclude interline e-ticketing arrangements with all 156 interline partners in the coming months. With this arrangement customers can benefit from the e-ticketing facility when they travel on any itinerary involving a connection onto another airline.

Emirates to invest huge amounts in inflight products and services

On the second day of the Dubai Airshow 2007, Emirates entered into long-term agreements with B/E Aerospace, Panasonic Avionics Corporation, and JAMCO Corporation, in a move indicative of its commitment to continuous product enhancements through innovation and cutting-edge technologies.

The contracts for top-of-the-range, custom-built cabin interior products and next generation inflight entertainment and communication systems were signed by HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline & Group, and are applicable to the airline’s new aircraft purchases as well as retrofits to its existing fleet.

Sheikh Ahmed said: “Yesterday (11 November 2007) we placed orders for the latest and most modern passenger jets and today (12 November 2007) we have signed three back-to-back onboard product agreements, clearly signalling our resolve to provide passengers with a world-class product. In the fiercely-contested premium air travel segment, seat comfort and inflight entertainment are the key differentiators, and we intend to stay ahead of the game with our ground-breaking entertainment system, ice, and the corporate jet quality of our premium classes.”

B/E Aerospace

In a deal worth US$ 120 million, Emirates has selected B/E Aerospace, the leading manufacturer of aircraft cabin interior products to retrofit its existing B777-300ER and A340-500 fleet, and equip its new B777 aircraft with the airline’s signature First Class private suites and lie-flat Business Class seats. In addition, the contract includes

First Class private suites installation for the airline’s new A380 aircraft purchases. It does not cover optional aircraft.

Panasonic Avionics Corporation (PAC)

Emirates has also inked a massive US$ 500 million deal with PAC for the eX2 inflight digital entertainment system, which includes interactive audio, video, games, communication and connectivity support, for the airline’s existing fleet and new aircraft purchases.

Panasonic’s eX2 system powers Emirates’ signature ice (information, communication, entertainment) system which offers programming choice together with seatback sms and email services, and live text news updates throughout the flight.

At present almost 60 percent of Emirates’ fleet is ice equipped, and by December 2008 the airline would have increased the system’s presence to cover about 70 percent of its fleet.

An enhanced version of ice, called the ice Digital Widescreen featuring the wide-screen TVs measuring 23” in First Class, 17” in Business and 10.6” in Economy, even more programming choices, as well as innovative features such as My USB and My Playlist is already being introduced as part of a continual upgrade programme.

JAMCO Corporation

Emirates has selected Jamco America, a subsidiary of JAMCO Corporation, the industry’s pre-eminent aircraft interior monument supplier and leader in lavatories and galleys throughout the world, to design and modify the cabin interiors of 33 of its B777-300ER and B777-200 aircraft.

The Jamco Group will manufacture structural components, electrical harnesses, closets, class dividers, and lavatory units for this extensive programme.

Engineering design is to start immediately with the first aircraft to be certified in September 2008.

Airbus set for deals in euros due to weak dollar

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, at the Airport Expo on the opening day of the Dubai Airshow.

Dubai: The weak dollar is posing a big challenge for Airbus and the company is open to aircraft deals in euros or in a basket of currencies to offset the impact of the declining greenback on the European aircraft manufacturer's profits, a company official said on Sunday.

"The weak dollar is a huge challenge for us as the aviation industry trades in dollars and a lot of the world's manufacturers are based in the US," Airbus spokesman David Velupillai told Dow Jones Newswires at the Dubai air show.

A weak US dollar does not make the planes more expensive, but it does lower the company's profits since half of Airbus' costs are in euros, he said.

"We're open to selling our aircraft in euros or in a basket of currencies," Velupillai said. "We're also trying to cut down costs by placing our work force in dollar zones."

Embraer Signs USD$811 Mln Virgin Nigeria Deal

Brazil's Embraer has agreed to sell 10 aircraft to Virgin Nigeria in a deal that could be worth USD$811 million, the planemaker said on Sunday.

Virgin Nigeria agreed to buy seven Embraer 170 aircraft and three 190s, it said in a statement at the Dubai Airshow.

The deal gives the airline the option to buy six more 190s and purchase rights for eight 190 and 195 aircraft, it said.

Embraer also announced that it had signed deals for 19 business jets from Globalia of Spain and Falcon Aviation.

The aircraft include Embraer's Lineage 1000, Legacy and Phenom models, a spokesman said.

The deals were announced on the first day of the Dubai Air Show, which runs until Thursday.

Emirates Picks Airbus A350 In USD$35 Bln Deal

Dubai-based airline Emirates picked the Airbus A350 airliner over Boeing's 787 in orders potentially worth up to USD$35 billion on the first day of the Dubai Air Show.

Deals this week could make 2007 the biggest year in history for planemakers as soaring crude oil prices drive orders for new, more fuel efficient airliners such as the A380 superjumbo and Boeing's mid-sized 787 Dreamliner.

The Gulf's biggest airline ordered 70 A350s and took options on 50 more while extending its lead as the biggest buyer of the Airbus A380 superjumbo by adding another 11.

Emirates' orders included 12 long-range 777-300ERs from Boeing worth USD$3.2 billion.

The industry is in the third year of a record level of demand spurred by new aircraft as well as the spread of budget airlines.

Boeing's biggest deal came from Qatar Airways, which ordered 30 787s and options to buy 30 more. It also bought 27 777s and took five options.

Boeing entered the air show leading Airbus in their annual race for orders but the gap narrowed on Sunday.

While the 787 is already the fastest-selling new Boeing in history, the Emirates order for the A350 XWB (Xtra Wide Body) is a major boost for the new Airbus plane, which has been the subject of fitful design changes over the last two years.

The battle between the 787 and A350 for sales to industry heavyweight Emirates was being closely watched by industry analysts.

"The 787-9 is a smaller aircraft with fewer seats," said Tim Clark, Emirates airline president, explaining the decision to go with the Airbus.

"The 10 is just not being offered," he said, referring to a stretched version of the 787 which some airlines have urged Boeing to launch.

Separately Rolls-Royce said it would supply engines for the A350s in a deal that could be worth USD$8.4 billion if Emirates firms all options.

Industry sources said Dubai Aerospace Enterprise (DAE), Saudi Arabian Airlines and Air Arabia are among those expected to announce orders this week. The air show runs until Thursday.

Gulf airlines face challenges

A massive infrastructure boom at airports in Dubai, Abu Dhabi and Doha will create capacity for more than 300 million passengers a year in 2017.

By Ivan Gale,

Dubai: There are 16.7 million reasons why Emirates continues to rise among the ranks of international air carriers.

One of them is Marcos Herrmann. A vice-president of a Brazilian paint and timber company, Herrmann used to fly to Vietnam, where he has clients, via Frankfurt on Lufthansa. But with Emirates now flying to Sao Paulo, he can cut his travel time by several hours by going through Dubai.

Providing better connections on newer aircraft and offering high standards of service, Gulf airlines have been the most prominent success story in the post-9/11 airline industry. Experts are, however, quick to point out the challenges. Among them: a lack of slots at major air hubs worldwide, the slow pace of liberalisation in some countries, and new long-range aircraft that can bypass the Gulf hubs.

Richard Aboulafia, an aviation analyst at the Teal Group, attributes Gulf airlines' success to the trailblazing of Singapore Airlines, which years earlier began with a small local population but developed itself as a transit hub between long-haul routes. "Emirates is basically following Singapore. Etihad is following Emirates, and Qatar is following those guys," says Aboulafia.

All three have leveraged their unique geographical location. But they can only succeed if they continue to receive slots at major air hubs and governments continue to grant traffic rights.

James Hogan, CEO of Etihad Airways, says this year his airline has seen "exceptional growth" on long-haul routes to Australia, the UK and Canada. But it cannot add more frequencies without obtaining approval first from foreign governments. "It's a bilateral issue," he adds.

A massive infrastructure boom at airports in Dubai, Abu Dhabi and Doha will create capacity for more than 300 million passengers a year in 2017, according to the International Air Transport Association (IATA). But these gleaming new terminals could remain empty if Gulf airlines aren't allowed to fly to all of their planned routes.

Foreign governments sometimes protect their home carriers by limiting access by foreign carriers. In the last year, both Australia and Germany reportedly considered blocking more flights from Emirates.

"The UAE is very liberalised, but we will need to see further liberalisation in other markets," says Brian Pearce, chief economist at IATA. Etihad, for example, says it wants more air rights to India, Saudi Arabia and Egypt.

Accommodation

Then there is the issue of receiving slots at major airports. Many hubs in Europe are full and cannot accommodate new airlines. "At Paris, the issue is slots," says Etihad's Hogan.

"These challenges we face in Europe will affect the ambitions of Middle East airlines to serve the Europe-to-Asia market," says IATA spokesman Lorne Riley.

But perhaps the greatest wildcard is the effect of new aircraft technologies, and how Asian and European rivals will use them.

Ali Al Rais, general commercial manager at Qatar Airways, called the new generation aircraft from Airbus and Boeing a "double-edged sword." Flying up to 19 hours and 17,500 kilometres, the Boeing 777-200 LR represents how Gulf airlines now have unprecedented access to faraway destinations. But the same goes for their competitors. With new energy-sipping planes, airlines are now considering point-to-point routes that fly over the Gulf that were until now unprofitable. Gulf carriers currently offer the shortest routes between many European and Australasian cities. As aircraft becomes more sophisticated, the advantage of a Dubai stopover may lose its lustre. "The ground is shifting from Europe to the Middle East and Asia, and this is no surprise to industry followers," Al Rais said. "But new long range aircraft can now bypass Middle East hubs, if we are not ready with our infrastructure."

Thanks to an open skies agreement between the US and EU, airlines are looking to set up point-to-point services from secondary or other cities that haven't been flown in the past, says Pearce of the IATA. "That is due to new liberalised environments but also new technology in the aircraft," he said.

One day, travellers like Marcos Hermann may be able to fly from Sao Paulo to Ho Chi Minh City directly. No one is projecting a major slowdown for Gulf carriers. But in the $450 billion airline industry, they can be sure no one will make it easy for them.

Boeing Helps Condor Streamline Its Maintenance Operations

MILAN, Italy, - Condor has adopted Boeing's Web-based maintenance solution, Maintenance Performance Toolbox (Toolbox), to help improve the maintenance of its fleet of 22 757 and 767s.

Condor will use Toolbox modules Library and Authoring. These modules will help the airline streamline an array of maintenance activities including managing technical publications and training and customizing online maintenance manuals.

"Boeing's Toolbox is ideal for us. With the introduction of this latest maintenance technology we are going to be able now to distribute the necessary maintenance information to all technicians involved worldwide, just with a mouse click," said Klaus Reymer, technical director at Condor. "This will enhance our already lean processes one additional step forward."

The innovative suite of aircraft maintenance software solutions is the industry's first set of productivity tools designed to unify an airline's maintenance and engineering operations from start to finish.

"Maintenance Performance Toolbox is one of the key Boeing solutions to help airlines manage critical maintenance tasks," said Dan da Silva, vice president of Sales and Marketing for Boeing Commercial Aviation Services. "We're happy that Condor has endorsed Boeing as a partner to help it manage complex maintenance practices in a competitive environment that demands efficiency and first-rate service."

Accessible via an Internet browser as a secured, hosted service, Toolbox is a key component within Boeing's evolving portfolio of performance-enhancing solutions for aircraft maintenance. Boeing will provide reliable access to the Toolbox tools for Condor through its secure Internet portal, MyBoeingFleet. Only an Internet connection, password and computer - a laptop, desktop or pen tablet - are necessary to access the system.

Boeing, Thomsonfly.com Establish Partnership to Reduce Cost and Delivery Time for Spare Parts

MILAN, Italy, - Boeing and Thomsonfly.com, the UK-based carrier of TUI Travel PLC, today said they have signed an agreement in which the airline will become part of Boeing's Component Services Program (CSP). The program is a parts-provisioning effort that significantly reduces an airline's up-front investment in spare parts and offers a quick and reliable supply of critical parts from a pool shared by 30 participating operators.

"The Component Services Programs are one of the key Boeing solutions to help airlines manage critical spares operations," said Dan da Silva, vice president of Sales and Marketing for Boeing Commercial Aviation Services. "Thomsonfly.com has endorsed Boeing as a partner to help it manage complex spares operations in a competitive environment that demands efficiency and first-rate service."

The agreement applies to Thomsonfly.com's Next-Generation 737 fleet. The Component Services Program will allow Thomsonfly.com to outsource the cost and logistical trouble of keeping important parts on hand. By doing so, CSP helps reduce inventory and component repair and administration costs. Under the CSP, Boeing commits to providing parts covered under the agreement within 24 hours of a request.

"We are looking forward to Boeing being our reliable partner to ensure on-time performance." said Ian Ludlow, technical director of Thomsonfly.com.

Thomsonfly.com has signed up for a long-term commitment on the CSP, paying a rate that covers a potential exchange of more than 475 LRUs, or line replaceable units. LRUs are typically high-value items such as avionics boxes and precision mechanical assemblies, which are time-consuming and costly for an airline to repair and keep in inventory. Thomsonfly.com becomes the 30th airline in the CSP program.

Indian cabinet considers second airport for Delhi

India’s cabinet is considering a plan from the Uttar Pradesh state government to build a second international airport for Delhi at Greater Noida.

The plan has attracted opposition from GMR, which operates Delhi International Airport, because the proposed site for the Uttar Pradesh facility is only 72km away. “The GMR group has been protesting against this move, but all global cities have more than one airport and there’s no reason why Delhi shouldn’t,” says a senior official within the Indian aviation ministry.

Delhi International Airport claims its development plan is sufficient to meet Delhi’s needs for the next 20 years.

Geneva introduces baggage trolley charges

Geneva International is introducing a deposit scheme for its 1,700 baggage trolleys to dissuade passengers from removing them from the airport.

From next Tuesday, passengers will have to pay two Swiss Francs or two Euros (roughly US$1.70) to release the trolleys, say airport officials. The deposit is reclaimed when the trolleys are returned to collection points.

“We find them abandoned all over the place, even if we ultimately lose only a dozen per year,” says airport spokesman Philippe Roy.

Dubai Airshow to break records

Dubai: The 10th biannual Dubai Airshow, kicking off on Sunday, will break all previous sales records, Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of Dubai City of Aviation Establishment and Chairman and Chief Executive of Emirates airline and group, said yesterday.

The 2005 edition of the third largest airshow in the world saw roughly $21.3 billion in new aircraft purchases from Gulf airlines.

"We're expecting more [orders] this time, for sure," Shaikh Ahmad said, who may have been hinting of his airline's plans.

Emirates has said for months it may announce a blockbuster order of next-generation mid-ranged aircraft at the airshow, running from November 11 to 15. Other announcements are expected from Air Arabia, Yemenia, Qatar Airways and others.

The 10th edition of the Dubai Airshow, featuring commercial, military and private aircraft, is completely sold out, thanks to the arrival of several major homegrown exhibitors. Dubai Aerospace Enterprise is the host sponsor this year. Mubadala, the Abu Dhabi government's investment arm, will also exhibit and several announcements are planned on the company's budding aviation interests.

In addition, this year will see a detailed unveiling of Dubai World Central, the $33 billion, 14-square kilometre aviation hub currently under construction.

"The scale of growth in the show over the past two years - which amounts to some 40 per cent in booked floor space, reflects the growth the Middle East's aviation industry is experiencing across all segments," Shaikh Ahmad said.

Organisers say when the airshow moves into its new grounds at Dubai World Central in 2009, it could grow into the world's largest airshow ahead of Le Bourget in Paris and the Farnborough Airshow in the UK.

He also noted that the aviation service sector was attracting a considerable influx in foreign direct investment and that the training and development of the workforce that will drive the region forward was "moving forward at rapid pace."

This year, the Dubai Airshow has grown by 17 per cent from 2005 in terms of exhibitors, due in part to the 130 newcomers from 24 countries that are showing.

New delegations will be seen from the Cayman Islands, the Philippines, Ethiopia, Afghanistan and Luxembourg. There are 11 national pavilions, 91 chalets and 15 outdoor pavilions - up from five in 2005.

National pavilions

National pavilions at the show will represent Austria, Canada, France, Germany, India, Jordan, the Netherlands, Sweden, Ukraine, the UK and US.

Some of the 140 aircraft on static display will include several new-to-market models, according to organisers. They range from strike fighters to trainers, from VIP business jets to heavy cargo carriers and the latest in the very light jet (VLJ) range.

Other well-known models run the full spectrum of airplane size and agility, from the Airbus A380 superjumbo to the Russian MiG 29 multi-role fighter aircraft.

AIRPORT NEWS

Muscat plans for growth as Oman Air takes off

Right: Gulf Air's domination of Oman’s Seeb International Airport is set to diminish with the development of Oman Air

Oman’s Seeb International Airport (MCT) in Muscat is facing dramatic changes to its flight schedules as the country severs its historical financial ties with Gulf Air in favour of national carrier Oman Air.

George Bellew, CEO of Oman Airports Management Company (OAMC), says that while international Gulf Air flights from the airport will inevitably diminish, there is likely to be a corresponding increase in international Oman Air flights.

The airport is nearing its five million passengers a year capacity, with 4.7 million people passing through the terminal last year, up 26% on the year before.

“You have to put it in a regional context,” says Bellew. “Aviation in the Gulf region has been growing fast and there are spin-off benefits from the strong emergence of new hubs such as Dubai.”

Bellew is planning a second terminal and a second (parallel) runway for the airport, which will increase capacity to 12 million passengers a year by 2010. Further expansions planned in three subsequent phases could boost capacity to 48 million passengers by 2050.

Korea’s Muan opens with few flights

Right: Muan International Airport has opened with only nine scheduled international flights per week

Korea’s Muan International Airport this week opened following eight years of construction, but it will not be able to operate a full schedule of international flights for about six months until restaurants and shops are installed and highway access is improved.

The airport terminal is designed to accommodate up to 5.19 million passengers annually, and the Ministry of Construction and Transportation predicts the airport will be used by around 1.8 million passengers in 2008.

At present, the airport is handling only nine international flights per week by two Chinese carriers and seven domestic flights. The two national flag carriers, Korean Air and Asiana Airlines, have decided to continue to operate four weekly flights to China from Gwangju Airport until next June.

The Korea Airports Corporation says 10 out of the nation’s 14 airports operate at a loss, with Yangyang Airport in Gangwon Province having US$13 million in losses. There are fears that Muan will follow suit. Only Jeju, Gimpo, Gimhae and Gwangju airports trade profitably.

The number of domestic airline passengers in the country has dropped significantly since the opening of the KTX bullet train in 2004.

Jiangxi Ganzhou completes runway

Above: A new 5,000m² terminal is planned for Jiangxi Ganzhou Airport

This Wednesday saw completion of the 2,600m long runway at Jiangxi Ganzhou Airport, one of the key projects in the construction of the US$56 million (Yuan 420 million) airport, which began in September 2005.

The airport is located 16km from downtown Ganzhou city, in the southern part of Jiangxi province. The project includes construction of a new 5,000m² terminal, a 2,600m long and 45m wide runway and 1,500m² ATC tower.

Once complete, Ganzhou will be the second largest airport in Jiangxi province after Nanchang International Airport in the provincial capital. It is designed to handle 200,000 passengers and 1,200 tonnes of cargo annually by 2015, and will be able to serve aircraft the size of the Boeing 737.

Hangzhou hits milestone ahead of US$933 million upgrade

Above: Work has now begun on the US$933 million second phase of expansion at Hangzhou Xiaoshan International

Yesterday (Thursday 8 November) marked an important milestone in the operation of Hangzhou Xiaoshan International airport in China’s Yangtse River delta, with the arrival of its 10 millionth passenger since the airport was opened six years ago.

The airport, China’s eighth largest, has experienced average annual growth in passenger numbers of 27% each year since it opened in 2000.

The 10 millionth passenger, Pan Jingjing, flew into Hangzhou from Chongqing at noon.

Sheng Jifang, chairman of Hangzhou Xiaoshan International airport, says the second phase of expansion work at the facility has now begun. The US$933 million (Yuan 7 billion) second phase will include a new 96,000m² international terminal designed by engineering consultants Atkins, due for completion by 2010, a second runway and a second domestic terminal by 2011.

By 2015, the airport will be able to handle 25.6 million passengers and 500,000 tonnes of cargo per year.

Commissioners call for costly mitigation at Fort Lauderdale

Right: Fort Lauderdale-Hollywood International Airport

Broward County Commissioners in Fort Lauderdale, Florida have proposed a series of mitigation actions relating to the proposed construction of a 2.43km elevated runway at Fort Lauderdale-Hollywood International Airport.

Aviation experts suggest that if the Federal Aviation Administration (FAA) accepts the actions, they could add US$500 million to the cost of the project.

The commissioners say that residents near the runway at Fort Lauderdale-Hollywood International Airport should get the choice to have their homes soundproofed or bought at market value.

The FAA is in the final stages of reviewing the plans and is expected to decide whether to approve construction early next year.

County commissioners made the following proposals:

• Buying out mobile home parks in the areas with the greatest noise.
• Offering to soundproof homes and pay owners for the loss of quiet outside.
• Buying homes from those who don't want to take the soundproofing option.
• Acquiring vacant land that is zoned for residential use.
• Offering assistance to entire neighborhoods rather than only those homes in high-noise zones.

Aviation consultants estimate currently proposed mitigation measures would cost US$200 million, based on current federal standards and if two-thirds of homeowners chose to have the county soundproof their homes rather than buy them out.

Estimates put the cost as high as US$700 million if the FAA decided to accept all the county’s proposals.

Training Grounds offers youth employment at Oakland Airport

A new youth-run gourmet coffee shop, Training Grounds, has opened at Oakland International Airport’s Terminal 2, to help participating Oakland students and young adults develop job and vocational skills.

The US$298,000 shop is a joint initiative between HMSHost and the Port of Oakland, which owns and operates the airport and the Youth Employment Partnership (YEP).

“Kids have a greater chance of success, and believing they are successful, when they are given responsibility,” says Michele Clark, executive director of YEP. “By putting Training Grounds in the hands of local youths, we are empowering them to learn more, do more, and expect more from themselves.”

HMSHost designed, funded and built Training Grounds and local HMSHost managers will provide mentoring and support to the high school and young adult workers, including procurement services, scheduling guidance and management training.

A second Training Grounds will open in the airport’s Terminal 1 in 2008.

Retail specialist prepares London City for the Olympics

Retail consultancy Milligan is advising London City Airport on how to prepare for growth ahead of the 2012 London Olympic Games


Airport has appointed retail specialist Milligan to produce a strategic growth plan as it prepares for the Olympic Games in 2012.

The company will perform a six-month strategic review to help the airport determine how best to meet future increases in passenger demand.

“The building is now 20 years old and needs modification to cope with the increased demand that has resulted from the success of London as a world financial centre and, in particular, from the growth of Canary Wharf,” says a Milligan spokesman.

Milligan has previously advised Manchester International Airport in north west England.

DTCM signs MoU with UHK of Germany to market tourist attractions

The Dubai Department of Tourism and Commerce Marketing (DTCM) and Landkreis Unstrut-Hainich (UHK), a district in the north of Thuringia, Germany, have signed a Memorandum of Understanding (MoU) to support each other in marketing promoting tourist attractions, products and services of both the destinations and stimulate tourism and business between both the regions.

The MoU was signed by the DTCM Director General, Mr. Khalid A bin Sulayem, and Mr. Harald Zanker, UHK District Governor, at a ceremony held at the DTCM Head Office.

Mr. bin Sulayem said Germany continues to be a major source market for Dubai’s booming tourism industry and business between the two destinations have been growing at a fast pace. This agreement, he said, would go a long way in benefiting both the DTCM and UHK in the long term.

The MoU will facilitate marketing of products and services of companies located in Unstrut-Hainich district and also those from the emirate. Both parties will nominate their representatives to define the scope of the cooperation.

The UHK and DTCM will identify projects that are suitable to promote as tourism projects and will consider joint promotions. Both parties agree to meet on a regular basis in Dubai and Muehlhausen to define next steps for their joint activities and assess the work that took place.

The DTCM will also assist UHK in the promotion of UHK and its National Park Hainich – which became the 13th national park of Germany in 1997 - after studying the appropriate aspects of the project that will be amenable to the Dubai market. The UHK undertakes to assist in the promotion of the various appropriate Dubai projects at their destination by disseminating all relevant DTCM promotional materials. Both parties agree to sign a definitive agreement detailing the scope of their joint promotional activities within six month of signing this MOU.

US lodging industry continues its strong pace

The U.S. lodging industry recorded its best year ever in 2006, posting pretax profits of $26.6 billion, up from $22.6 billion in 2005, based on the American Hotel & Lodging Association (AH&LA) Lodging Industry Profile (LIP), a statistical analysis of the lodging industry for year-end 2006.

The lodging industry’s overall profitability grossed $133.4 billion in total sales—compared to $122.7 billion in 2005. This increase is attributed to a variety of sources, including the industry’s ability to raise room rates due to an increase in demand from both leisure and business travelers. The LIP’s other indicators — promotional spending, average occupancy rate, and revenue per available room — also point to strong lodging industry performance in the future.

Other facts found in the LIP:

• There are 47,135 properties consisting of nearly 4.4 million guestrooms.
• The lodging industry directly supports more than 7.5 million jobs.
• The tourism industry is currently the third largest retail industry, behind automotive and food stores. In 30 states, tourism ranks as the first, second, or third largest employer.
• Tourism generated $700 billion in domestic sales.

The LIP provides a quick list of significant facts about the lodging, travel, and tourism industries, including employment impact; international travel statistics; and property and room breakdowns by location, rate, and size.

US online leisure travel market growth outstrips overall travel market expansion

The U.S. online leisure/unmanaged business travel market continues to grow at a pace that far exceeds the overall travel market's rate of growth, according to the new report, PhoCusWright's U.S. Online Travel Overview Seventh Edition.

PhoCusWright finds that the online leisure/unmanaged business travel market will surpass US$94 billion in 2007, to comprise more than one-third of the total travel market. The total travel market encompasses offline leisure/unmanaged business and on- and offline corporate travel.

"It's interesting to note that while online travel's growth continues to exceed that of the market as a whole, that growth has slowed compared to recent years," notes Lorraine Sileo, vice president, research at PhoCusWright. "This is especially true for online travel agencies, which have seen their packaging sales slow considerably."

Among the findings about the trends and competitive efforts that are driving change in the industry are:

• While suppliers are gaining share in most segments (air, car, hotel), online travel agencies are competing via packaging and add-ons, corporate tools, distressed inventory, international expansion in Europe and Asia, independent hotel properties, U.S. chains, and cross-product and -provider customer service initiatives.
• Search and metasearch continue to work in favor of suppliers as they drive traffic to their Web sites to book after their comparative shopping experience.
• All travel companies must embrace the consumer desire to shift among online and offline channels. As each channel varies in distribution costs, suppliers must execute unique strategies for each channel based on their yield/value.

The report also analyzes distribution shifts in each travel supplier segment (airline, hotel, car rental, vacation packages, rail and cruise), online travel agency developments and the outlook for this channel, evolving technologies and consumer behaviors, and more. It includes historical and projected segment gross bookings and growth trends, as well as channel sales analysis.

Passenger service standards high on the agenda for airports

Kuala Lumpur International Airport was the first to be presented an Airport Service Quality (ASQ) Assured certificate following a successful audit of its airport passenger service quality management system. In presenting the certification, Airports Council International Director General Robert J Aaronson said, “We are confident that customer service remains a high priority for airports and are encouraged that over 100 airports – including some of the world’s busiest – are already part of the ASQ programme

“This new extension of ASQ will provide real incentive for those airports committed to best practice service quality management techniques. We are proud to be able to present Kuala Lumpur with the first ASQ Assured certificate in the world and believe that this will be an opportunity taken up by a great number of airports.”

Airports Council International has established customer service as a priority area to focus on and believes that the quality of service an airport provides to its passengers is integral to the enjoyment of travelling. In order for airports to effectively understand passenger needs and manage and raise customer service levels, for the last two years ACI has provided the ASQ programme to its members. ASQ is the premier benchmarking tool for airports wishing to measure and commit to improving customer service.

Now, in a further development of the already existing ASQ Survey programme, which assesses passenger perceptions of the service they get at an airport, ACI has announced the establishment of ASQ Assured. This new programme is a certification scheme, specifically designed and operated for airports by ACI, which measures and endorses the service quality management systems in place at an airport.

“As airports grow more competitive and the industry tries to bring back some of the enjoyment of travelling, these tools can really help in raising service levels. It is part of ACI’s encouragement to the industry to develop an improved experience at airports.”

ASQ Assured certifies the commitment of the airport to continual improvement in the quality of services to passengers. It benchmarks an airport’s passenger service quality management system and processes to airport industry best practice. The ASQ Assured scheme uses a self assessment approach followed by an ACI on-site audit. “With time, the ACI Service Quality Assured logo will be recognised as a hallmark of airport service quality excellence.”

Port Authority of NY/NJ takes control of Stewart International Airport

In a ceremony on 1 November officials from the Port Authority and Hudson Valley communities commemorated the first day of Port Authority control of Stewart International Airport in Newburgh, N.Y. Officials vowed to develop the underutilised facility into a strong regional airport serving the travel and business needs of the Hudson Valley while also helping alleviate congestion and ease delays at the New York-New Jersey metropolitan- area airports.

New York Governor Eliot Spitzer said, "The Port Authority has the resources and expertise to help Stewart Airport realise its potential as a major transportation hub for this vastly expanding region. As I stated in my inaugural address, the expansion of Stewart Airport will help to stimulate economic development in the Hudson Valley and beyond. Additional air capacity at Stewart will also help ease congestion currently afflicting our increasingly stressed metropolitan airports as we near their capacity and plan for future population and passenger growth."

Port Authority Chairman Anthony R. Coscia said, "As airport stewards since the first half of the last century, the Port Authority's record is unrivalled. We have enjoyed great success and growth at our airports, which has driven robust economic development. Today we take another bold step, helping to grow the economy while providing relief for travellers at JFK, Newark and LaGuardia."

Skybus CEO Bill Diffenderffer, whose airline today announced new service at the airport, said, "Stewart International Airport is a growing factor in the New York metropolitan area transportation picture. Today's takeover of the airport by the Port Authority will only accelerate Stewart's importance as a regional airport. We think our service from Columbus and from North Carolina's Piedmont Triad International Airport beginning in early 2008 will contribute to that growth and give Skybus customers an exciting new destination."

In addition to Skybus, the Port Authority has been in active discussions with air carriers seeking to provide new services at Stewart, which currently offers scheduled flights to several cities in Florida, as well as Atlanta, Detroit and Philadelphia. The agency also is creating a community advisory board comprising a broad spectrum of Hudson Valley residents, and business and civic leaders. The board is expected to convene by the end of the year.

The airport is owned by the State of New York. The Port Authority Board of Commissioners in January authorized the purchase of the operating lease from a private firm for $78.5 million, and in September approved more than $17 million for parking and roadway improvements. The lease runs through 2099.

Stewart Airport covers 2,400 acres and features two parallel runways that can handle major jet service outside of the crowded airspace over Kennedy International, Newark Liberty International, LaGuardia and Teterboro airports. In 2006, Stewart Airport handled 300,000 passengers, and is expected to handle more than 800,000 this year. By comparison, LaGuardia handled about 26 million passengers last year and sits on only 680 acres on land.