5102 6

http://www.khaleejtimes.com

Middle East air freight demand grows by 14.1%

Group, Tony Fernandes, says his AirAsiaThe founder and CEO of the

Kuala Lumpur (MH, Malaysia Airlinesfirm is in early discussions with

) over possible cooperation between the two airlines. According to Int'l

Fernandes, the most likely sector in which the two may find synergies is

the aircraft MRO sector. It makes complete logical sense. If together, the two of us can make a regional powerhouse in MRO, thats great, he told Malaysia's Star newspaper after the companys AGM. We have put our planes somewhere for maintenance. Why not keep it in Malaysia and do it with

MAS, and both of us get lower costs, and more importantly, through both

our volumes we can offer to third party airlines around the world. And Malaysia becomes a much bigger MRO centre and more jobs are

created. Fernandes added that the recent arrival of Christoph Mueller as CEO of

Malaysia Airline System Bhd (MAS) has heralded the beginning of a new

era between the two carriers. In the past, the two have had a tense

relationship given their bitter rivalry. Many things we have talked about for many years due to emotion, never happened. I think, now Mueller comes with a fresh piece of paper,

no baggage, no emotion. He says what is good for MAS lets see whether collaborating with AirAsia makes sense. Earlier this week, Mueller outlined his three-phase turnaround strategy

for the Malaysian national carrier, which he said was 'technically

bankrupt'. Under his plan, which seeks to return the carrier to profitability

by 2017, MAS's successor firm, Malaysia Airlines Berhad, will be grouped

into three divisions Operations, Support functions, and Learning & Development - with a total of twelve subsidiaries. The operations division will include Malaysia Airlines and its MASKargo

). The Penang(FY, Firefly) and Kota Kinabalu(MY, MASwingsunit,

Support Functions division will oversee MRO unit MAS Engineering,

Malaysian Airlines Ground Handling, MAS Holiday and the airline's

Frequent Flyer Programme, Enrich. Malaysia Airlines Academy, MAS

Engineering Training, flight training and operations training will fall under

the Learning & Development division. s had 800-380AIn terms of its network and operations, Mueller said two

been deemed surplus-to-requirement and were slated to be either sold

or leased out..

http://www.travelweekly.co.uk

Etihad and Tourism Malaysia sign partnership agreement

Etihad Airways and Tourism Malaysia have signed a global

partnership agreement to boost tourism to the country. Under the agreement the two organisations will put into effect a

range of joint marketing activities targeting Malaysias leading inbound visitor markets the UK, US, Europe and the Middle East. Research by Tourism Malaysia revealed in 2014 there were more

than 1.2 million visits from these key markets, a 10% increase on

2013. Andrew Ward, vice president for marketing at Etihad Airways, which

is currently at Expo Milano 2015 with Tourism Malaysia, said: This partnership underlines the long-standing links between Etihad

Airways and Malaysia, and will help to create even greater

opportunities to increase the growing number of tourists and

business travellers flying to the country with us. Malaysia is one of our top destinations, and Etihad Airways has carried more than one million passengers to and from the country

since 2007. The campaign will focus on multimedia marketing and familiarisation

trips for the travel trade, while Etihad will have an enhanced

presence on Tourism Malaysias traditional and digital platforms. Chong Yoke Har, deputy director general for planning of Tourism

Malaysia, said that Etihad Airways had demonstrated a strong and

growing commitment to the Malaysian market. This agreement is an important step towards Malaysia achieving its strategic goal of earning RM168 billion from the targeted 36 million

tourist arrivals by 2020, she said.

http://www.khaleejtimes.com

Middle East air freight demand grows by 14.1% Iata released data for global air freight markets showing a 3.3 per cent increase in cargo volumes (freight tonne kilometers or FTKs) in April 2015 compared to April in the previous year. Dubai - Middle Eastern freight carriers saw demand grow by 14.1 per

cent, on the back of increased trade within the region, along with network

and capacity expansion, according to data released by the International

Air Transport Association, or Iata, on Thursday. The capacity has also recorded a growth of 18.5 per cent. Iata released data for global air freight markets showing a 3.3 per cent

increase in cargo volumes (freight tonne kilometers or FTKs) in April

2015 compared to April in the previous year. While there is growth

compared to the same month in 2014, there has been no actual growth in

aggregated global cargo volumes since late last year. At a regional level, only the Asia-Pacific and Middle Eastern airlines

reported growth in April.North American carriers reported essentially flat

demand, while Europe, Latin America and Africa all reported declines

when compared to 2014. April data also revealed a slowdown from the growth for the first quarter of

2015, which averaged 5.3 per cent, in line with a recent weakening in

world trade growth. Despite a cyclical pick-up in the global economy,

acceleration in trade and air freight demand is unlikely in the near term as

business confidence and export orders are flat or declining. After a volatile start to 2015, the market is settling down, and it is clear that

momentum in air freight growth is being lost. First there is the structural

challenge of world trade no longer expanding at a faster rate than

domestic production. Layered on top of that trend we now see a

weakening of economic indicators in the crucial air cargo markets of Asia-

Pacific and Europe, said Tony Tyler, Iatas director general and chief executive officer. These factors point toward a need to kick-start trade by reversing protectionist trade measures. Implementing the Bali Trade Facilitation

Agreement would be a good start, as well as commitments to help

facilitate trade in emerging markets, .

http://economictimes.indiatimes.com Competition Commission closes case against IATA

NEW DELHI: Fair trade regulator CCI has closed a case against the

International Air Transport Association (IATA) after finding no

evidence of it violating competition norms. The complaint was filed by the Air Cargo Agents Association of India

against IATA and the International Air Transport Association (India)

Pvt Ltd, the opposite parties. It was alleged that IATA was determining the rate of cargo agents'

commission in an unfair manner and that rules of Cargo Accounts

Settlement System (CASS) are anti-competitive. Competition Commission of India (CCI) has decided to close the

case after carrying out a detailed probe into the complaint. Closing the case, the regulator said the opposite parties have not

contravened any of provisions of the Competition Act.

According to the regulator, IATA was not in favour of fixed

commission system and the Commission finds force in the

contention of the opposite parties that the system of 5 per

cent commission was due to lobby of the members of the air

cargo agents association before the government. "Thus, based on the above evidences and circumstances, the

Commission is of the opinion that the allegation of fixing of

the rate of commission for cargo agents by the opposite

parties... does not hold valid .. .

http://news.airwise.com Gulf Subsidies Row In Focus At IATA Meeting

The row between US and Gulf carriers over alleged subsidies will be

in the spotlight along with aviation safety in the wake of the

Germanwings crash when the airline industry gathers for its annual

meeting in Miami next week. The International Air Transport Association (IATA) meeting will kick off

on Sunday amid an increasingly bitter row as three US airlines allege

Gulf carriers have received more than USD$40 billion in unfair

subsidies. They have called on the US government to review the

Open Skies policy that approves commercial flights between the

United States and Qatar and the United Arab Emirates. The allegations by Delta, United and American, rejected by Etihad,

Emirates and Qatar Airways, have also found backing among some

European carriers, notably Lufthansa and Air France-KLM. The Dutch government said last month it would temporarily stop

granting new slots at Amsterdam's Schiphol airport to Gulf airlines,

promising a tougher line against possible "unfair competition" from

the Middle East. However, Boeing, FedEx and airlines such as JetBlue and British

Airways owner IAG have backed the US Open Skies policies. "This is a debate that goes beyond subsidies. It's to do with how

airlines are run and how markets around the world are changing,"

independent aviation consultant John Strickland said. IATA represents the interests of around 260 airlines from across the

globe, accounting for 83 percent of global traffic, and this year's

meeting is set to be the biggest yet. IATA is unlikely to step directly into the row between some of its most

high-profile members, but delegates say some airlines could use the

formal part of the agenda to try to win support from global members

for a declaration backing their case. "

http://news.airwise.com (Continue)

It's not for IATA to act as a ringmaster, but it could help to take some of the heat

out of the discussion and bring a more factual look at the debate," Strickland said. IATA Director General Tony Tyler said it was up to governments to decide and that

it was more an argument over what constituted fair competition. "The last time this happened it was with the Europeans and the Middle East and

since then you've seen the integration through alliances or commercial

agreements or in the case of Etihad, investments," Tyler told Reuters news

agency. Air traffic rights or airline services do not fall under WTO rules, meaning there is no

global basis for dealing with subsidy claims and presenting challenges for the US

government as it reviews the matter. The chief executives of Lufthansa and Turkish Airlines have suggested WTO-style

tools could be used in the dispute. Others says airlines should focus on improving their own business. "It strikes me that the kind of mindset that focuses on complaining about

competition is probably the wrong mindset. Airlines should focus on putting their

own house in order," Jonathan Wober, an analyst at CAPA Centre for Aviation,

said. PROFITS AND SAFETY The industry is also under pressure to respond to the Germanwings crash in

March. Evidence indicates first officer Andreas Lubitz locked the captain out of the

cockpit and deliberately steered the plane into a French mountainside, killing all

150 onboard. Airlines across the world swiftly moved to implement a rule to ensure two crew

members are in the cockpit at all times. Authorities in the United States and

Europe are examining cockpit door technology and pilot screening measures after

it was revealed Lubitz had suffered depression in the past and had hidden details

of an illness from his employers. Lufthansa, which owns Germanwings, has suggested random psychological

checks for pilots could be an option. IATA's Tyler will also on Monday give updated forecasts for airline profitability this

year. IATA currently expects net profits of USD$25 billion in 2015 for a profit

margin of 3.2 percent, the strongest in more than five years. Lower oil prices are helping airlines, meaning many have reported improved

results in the traditionally weak first quarter of the year. However, industry observers say some airlines could use cheap oil to offer more

seats to gain market share, thus driving prices down further, which would hurt

profits. .

https://www.zawya.com Gulf subsidies row in focus at annual airline CEO meeting

A row between U.S. and Gulf carriers over alleged subsidies will be in

the spotlight along with aviation safety in the wake of the Germanwings

crash when the airline industry gathers for its annual meeting next week. ) meeting will kick off IATAThe International Air Transport Association (

on Sunday in Miami amid an increasingly bitter row as three U.S.

airlines allege Gulf carriers have received more than $40 billion in unfair

subsidies. They have called on the U.S. government to review the Open

Skies policy that authorised commercial flights between the United

States and Qatar and the United Arab Emirates over a decade ago. The allegations by Delta Air Lines Inc , United and American Airlines ,

rejected by Etihad, Emirates and Qatar Airways, have also found

backing among some European carriers, notably Lufthansa and Air

France-KLM . The Dutch government said last month it would temporarily stop

granting new slots at Amsterdam's Schiphol airport to Gulf airlines,

promising a tougher line against possible "unfair competition" from the

Middle East. However, planemaker Boeing , FedEx and airlines such as JetBlue and

British Airways owner IAG have backed the U.S. Open Skies policies. "This is a debate that goes beyond subsidies. It's to do with how airlines

are run and how markets around the world are changing," independent

aviation consultant John Strickland said. airlines from across the 260 represents the interests of around IATA

globe, accounting for 83 percent of global traffic, and this year's meeting

is set to be the biggest yet. is unlikely to step directly into the row between some of its most IATA

high-profile members, but delegates say some airlines could use the

formal part of the agenda to try to win support from global members for a

declaration backing their case. "

https://www.zawya.com Gulf subsidies row in focus at annual airline CEO meeting

to act as a ringmaster, but it could help to take some IATA"It's not for

of the heat out of the discussion and bring a more factual look at the

debate," Strickland said.

Director General Tony Tyler said it was up to governments to IATA

decide and that it was more an argument over what constituted fair

competition. "The last time this happened it was with the Europeans and the

Middle East and since then you've seen the integration through

alliances or commercial agreements or in the case of Etihad,

investments," Tyler told Reuters on Thursday. Air traffic rights or airline services do not fall under World Trade

Organization rules, meaning there is no global basis for dealing with

subsidy claims and presenting challenges for the U.S. government as

it reviews the matter. The chief executives of Lufthansa and Turkish Airlines have

suggested WTO-style tools could be used in the dispute. Others says airlines should focus on improving their own business.

"It strikes me that the kind of mindset that focuses on complaining

about competition is probably the wrong mindset. Airlines should

focus on putting their own house in order," Jonathan Wober, an

analyst at CAPA-Centre for Aviation, said. "

http://www.eturbonews.com

Star Alliance widens its distribution channels FRANKFURT, Germany Star Alliance, the airline alliance offering customers the largest number of destinations for round the world travel, has widened its

distribution channels for its fare products. Travel agents connected to the Sabre

Global Distribution System (GDS) can now book and automatically calculate the

corresponding Round the World (RTW) and Circle Fares. In the past pricing often

had to be calculated manually, due to the routings involved in RTW traffic. Star Alliance offers globetrotters a total of 14 RTW fares to choose from; three for

travel in First Class, four for travel in Business Class and seven for travel in

Economy Class. Horst Findeisen, VP Commercial and Business Development at Star Alliance, said:

We are pleased to be working with Sabre to open a further distribution channel through which our Round the World and Circle Fares can be easily booked and

automatically priced. Leveraging technology to simplify and accelerate complex

processes is a key benefit which an alliance can provide. In this case, we now

enable even more travel agents in even more markets to quickly and easily

respond to customer wishes for round the world travel, which often involves highly

individualised and complicated routings. Harald Eisenaecher, Senior Vice President EMEA, Sabre, said: We are pleased that together with Star Alliance we can now offer a simpler way of booking and

pricing RTW fares. We were keen to respond to industry demand to automate this

process, and we are proud to be the first GDS to introduce a new industry

framework earlier in the year. Since then, we have had a hugely positive response

to this new technology from our travel agent clients. This agreement further proves

the industrys need for the automation of these types of complex itineraries. We expect this to drive more bookings from agents of RTW fares. Over the last years, Star Alliance has continually worked towards simplifying the

booking and ticketing process for RTW travel. In 2009 it launched the Star Alliance Book and Fly tool, which allows online

booking and ticketing for RTW and Circle fares through the Alliances website. In parallel, the Alliance worked with the major booking and pricing systems used by

travel agents (GDSs) to ensure that travel agents would also be in a position to

automatically price such itineraries.

In addition to the RTW fares, the Star Alliance network also offers the Circle Pacific

Fare and five Regional Airpasses.

"

http://business.financialpost.com

How Icelands airlines have helped spur a tourism boom, lifting its battered economy back to health

The 2010 eruption of the notorious and unpronounceable Eyjafjallajkull volcano in Iceland was a disaster for global aviation, resulting in the

cancellation of some 100,000 flights and lost revenue of US$1.7 billion.

The Icelandic tourism industry couldnt have come up with a better advertisement if it tried. We had some luck in that, Icelandair Group CEO Bjrglfur Jhannsson said in an interview. Everybody blamed Iceland but it put

http://business.financialpost.com

How Icelands airlines have helped spur a tourism boom, lifting its battered economy back to health

Iceland on the map all over the world. The number of foreign visitors to Iceland more than doubled between

2010 and 2014, when nearly one million people visited not bad for a country with a population of 320,000. (If Canada had the same ratio of

tourists to population, it would have had 109 million foreign visitors last

year. The actual number was approximately one-tenth of that.) Tourism is now the biggest contributor to Icelands export revenue, surpassing even fishing, which has dominated the countrys economy since the Vikings first arrived on its shores in the ninth century. Foreign visitors have also been a key factor in helping Iceland get back

on its feet after the body blow it was dealt during the financial crisis. All

three of the countrys major banks defaulted and its economy contracted 10 per cent in two years. It is just now preparing to lift the capital controls that have been in place since 2008. Overall, macroeconomic conditions in Iceland are now at their best since the 2008/09 crisis, Peter Dohlman, the International Monetary Funds mission chief for Iceland, said in a recent interview with the IMFs internal magazine. A particular bright spot for Iceland has been the booming tourism industry, which has also contributed to a strong current account surplus. Icelands airlines have played an essential role in this tourism boom, taking advantage of the Nordic countrys strategic location between North America and Europe and using its stunning natural features including active volcanoes as a selling point. According to the International Air Transport Association, the aviation

industry accounted for 12.9 per cent of Icelands GDP in 2011, including its spinoff effects on tourism, and supported more than 20,000 jobs. (By

comparison, the banking systems total liabilities prior to its collapse were more than 10 times Icelands annual GDP.) "

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